Industry Overview December 2017 Market overview Surgical Instruments $249M Sterilization $123M • More than 100M global procedures annually • More than 165,000 hospitals worldwide • Market growing 7% annually • Market growing 5% annually TAM: ~$4.5 billion TAM: ~$1.0 billion Single-Use Disposables $144M • Average hospitalization duration with surgical infections is ~8 days • Market growing 2 - 3% annually TAM: ~$1.2 billion Long-term growth drivers: Surgical Instruments Market size • Surgical instruments include scalpels, sutures, and staplers • Large and growing global addressable market totaling over $4.5 billion • 100 million procedures globally growing at mid-single digits Industry drivers • Increasing prevalence of chronic diseases • Aging US population: By 2030, all baby boomers will be older than age 65 • Federal funding for Medicare and Medicaid Long-term growth drivers: Sterilization Market size • Medical sterilizers include sterilization systems and disinfectant technologies (e.g. liquid, cold, surface) • More than 165,000 hospitals worldwide • Global addressable market totaling over $1.0 billion Industry drivers • Upgrade opportunity: ~6,500 US clinics today, majority use old technology • Market adoption of heat-based water disinfection technology • New opportunities in filtration and chemical sterilants Long-term growth drivers: Single-Use Disposables Market size • Single-use medical disposables include bandages and wraps, needles and syringes, and PP&E, among others • Average hospitalization duration with surgical infections is ~8 days • Global addressable market totaling over $1.2 billion Industry drivers • Infection prevention remains headline risk for dental practitioners globally • Growing urbanization increases demand for single-use medical disposables • Increased healthcare spending drives continued purchases of critical equipment Competitive landscape Segment Market share Surgical Instruments Delta Corp Issuer Kappa GmbH Omega Inc Sigma LLC Issuer Omega Inc Delta Corp Mu Co Rho Ltd Issuer Kappa GmbH Alpha Inc Delta Corp Omicron Intl Sterilization Single-Use Disposables New Davis Industries products in the pipeline Surgical Instruments • AI augmented surgical instruments Sterilization • Low temperature sterilization systems • Rapidly disinfecting healthcare devices Single-Use Disposables • Antimicrobial and antifungal bandages • Hospital gowns with increased comfort and privacy
