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This presentation and our responses to your questions during the question and
answer period will contain our estimated or anticipated future results. These forward-
looking statements are typically identified by the words "anticipates," believes,"
"expects," "intends," "plans," "future," "strategy," or words of similar meaning. These
statements reflect our current analysis of existing trends and information, and
represent our judgment only as of today. Actual results could differ materially from
those anticipated. As a result, you are cautioned not to rely on these forward-looking
statements. You should refer to the "Risk Factors" and other information in the
reports that we file from time to time with the Securities & Exchange
Commission. References to the Company or Alphatec Spine including Alphatec
Holdings, Inc., Alphatec Spine, Inc. and all its global affiliates. In addition, any
references to the Companys prior statements of financial guidance do not constitute
any form of confirmation, guarantee, assurance or promise that the guidance will
actually be achieved. Rather, such statements simply set forth our best estimate on
the date that such statement was made, based on the Companys expectations at the
time of such statement, and there can be no assurance that this represents the
Companys current projections. All statements regarding guidance should be
considered forward-looking statements. The Company disclaims any intent or
obligation to update any forward-looking statements made here today.
CONFIDENTIAL - 7/20/2017 | 2
Overview
Improving lives by delivering advancements in spinal fusion technologies
CONFIDENTIAL - 7/20/2017 | 3
Evolution
Market Share
Inception/ Development Transformation Expansion
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Vision and Strategy
Future
Our Vision
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Recent Highlights and Developments
Q1 Financials
Revenues of $28.0 million; U.S. revenues of $23.4 million
U.S. commercial gross margin of 68%
Gross proceeds of $18.9 million from private placement
Cash balance of $25.5 million at March 31, 2017
CONFIDENTIAL - 7/20/2017 | 6
Agenda
Mike Plunkett
President and COO
Craig Hunsaker
EVP, People and Culture, General Counsel
Jon Allen
EVP, Commercial Operations
Jeff Black
CFO, EVP and Treasurer
Brian Snider
EVP, Strategic Marketing and Product Development
Jeff Rydin
Special Advisor to BOD
Dave Mowry
BOD
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New Leadership with Track Record of
Executing a Spine Market Share Expansion Strategy
Organizational Product Launch Expertise
Transformation
- Launch strategy development
- History of meeting and execution
expectations in
- Creation of successful sales
execution-focused
training, medical education
turnaround strategies
CORE programs
- High-performance
culture development Spine/ Ortho Expertise
and maintenance - Executive/ senior leadership of
- Balance sheet ortho and spine organizations
improvement - Deep understanding of spine
market and landscape
Sales and
- Corporate account navigation,
Distribution
group-purchasing organization/
integrated delivery network Transformation
knowledge - Long tenure of sales
- Reimbursement know-how leadership
- Transition to
exclusive non-
competitive sales
channel
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Agenda
Biologics
20%
Core Fusion 40%
Sources: * Biomed GPS (SmartTraks), iData, SpineMarket; ^Technavio Global Spinal Implants 2016-2020
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Agenda
- Solus ALIF
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Transforming Distribution Channel for Growth
ATEC is an Attractive Partner for Distributors GPO/IDN # of Hospitals
Relationships Represented
Portfolio breadth enables comprehensive
1740
treatment of most spine pathologies
New products driving interest and 169
excitement in the field
Established access to hospitals through 157
group-purchasing organization (GPO) and
integrated delivery network (IDN) contracts 131
is increasingly a competitive advantage
70
53
46
28
13
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Agenda
XYcor
Arsenal Deformity Battalion Lateral Expandable
Interbody
360
76
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Expanding Target Market with
3 Advanced Platforms
Arsenal
Arsenal
Deformity
Deformity
AIS
AIS
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Expanding Target Market with
3 Advanced Platforms
* Source: Uribe, Youssef, Khajavi, Baizer, Kanter, Kuelling, Peterson, SOLAS Degenerative Study Group. Can triggered electromyography monitoring throughout retraction predict postoperative
symptomatic neuropraxia after XLIF? Results from a prospective multicenter trial. Eur Spine. 2015 Apr 24.
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Expanding Target Market with
3 Advanced Platforms
Detachable Handles
Battalion
Lateral
System
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Expanding Target Market with
3 Advanced Platforms
XYcor
Expandable
Interbody
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Re-Entering Biologics to Drive Growth
Significant cross-selling
opportunity into existing and
new accounts
Biologics
Benchmarked peers have 3x
Portfolio Alphatecs current biologics
procedural penetration
Comprehensive bone graft
substitutes (BGS) to meet
surgeon preferences: tissue
and synthetic offerings; cervical
allograft offering
Published animal data
demonstrating Neocores
superior bone remodeling to
Vitoss (industry leader)
CONFIDENTIAL - 7/20/2017 | 28
Why Invest in ATEC?
Market Share-Driven Revenue Growth
Transformation of distribution
channel for growth
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Financing for Growth and Value Creation
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A Powerful Value Creation Opportunity
New leadership
Building on an attractive market landscape
And a strong product portfolio
With exciting new products,
Renovated financials,
Significant distribution upgrades,
And a market-share taking vision
July 2017