Corporate Responsibility

DJO Global Tom Capizzi

Executive VP Global Human Resources CHRO

October 24th, 2013

Corporate Responsibility at DJO Global

Introduction Company Information

Responsibilities

Culture Corporate Citizenship

Business Partners

From prevention to recovery, DJO Global enables people to live their lives to the fullest by providing intelligent medical

devices and services. We embrace an open dialogue with our customers to gather insights that guide our innovation and

continuous improvement.

DJO Mission

DJO Vision We enable people to regain and maintain the joy and comfort of

natural mobility.

Bracing and Vascular

39.1%

Recovery Sciences

29.6%

International24.8%

Surgical Implant

6.5%

DJO Profile Business Overview

$898 $949 $946 $966$1,075

$1,129

$182 $213 $250 $263 $264 $271

2007 2008 2009 2010 2011 2012

Revenue Adjusted EBITDA(2)

Net Sales and Adjusted EBITDA(1)

2012 Net Sales by Segment

($ in millions)

(1) Adjusted EBITDA for all periods presented excludes impact of non-recurring costs and other adjustments as permitted by Senior Secured Credit Agreement; excludes pre-acquisition EBITDA and future cost savings related to 2011 and 2012 acquisitions. (2) 2007 pro forma for DJO Merger and other 2007 acquisitions.

Headquartered near San Diego, CA

Approximately 5,400 employees in 27 countries

A leading orthopedic company with a totally unique footprint focusing on injury prevention, conservative treatment and rehabilitation

An innovator with a robust pipeline of products and solutions that are more cost effective and less invasive than most surgical or pharmaceutical alternatives

A market leader in orthopedic bracing, vascular health, rehabilitation, pain management, bone growth, muscle stimulation, and shoulder reconstruction

A partner with an excellent local service infrastructure, strong clinician and hospital relationships

Financial sponsor – The Blackstone Group

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Bracing and Vascular – 39.1% of 2012 Sales

Broad range of soft goods – key to GPO penetration

Rigid knee bracing and Cold therapy

Retail pharmacy offering with Bell Horn

Vascular systems (DVT prophylaxis)

Broad range of compression therapy garments

Diabetic footwear

Acquired Exos on 12/28/2012

#1 share in U.S. Bracing and Supports market of approximately $1.7 billion(1)

Bracing and Vascular Net Sales

Bracing Products Vascular Products

Bracing and Vascular Highlights ($ in millions)

$293.9 $296.0 $298.8 $311.6

$387.9$441.3

2007 2008 2009 2010 2011 2012(3)(2)

+8.2%(3) In 2012

(1) 2009 Frost & Sullivan. (2) Pro forma for 2007 DJO Merger. (3) Pro forma for 2011 acquisitions.

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• Promotes healing of Non-Union Bone Fractures and Spinal Repair Surgery

Recovery Sciences – 29.6% of 2012 Sales

Home Electrotherapy - TENS Pain Management & NMES Muscle Stimulation

Home Traction Devices

Iontophoresis

Clinical Electrotherapy

Continuous Passive Motion

Clinical Traction Devices

Treatment Tables

($ in millions)

$327.1

$338.6$342.0

$347.1$342.6

$334.6

2007 2008 2009 2010 2011 2012

-2.3% in 2012

(1) 2007 Pro forma for DJO Merger and other 2007 acquisitions.

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Recovery Sciences Net Sales

(1)

• Diverse portfolio of orthopedic reconstructive joint products for knees, hips and shoulders

• Primary focus on shoulder segment with a track record of innovation – over 50% of net sales

• Niche market position with less than 1% share in total, but higher in shoulders

• U.S. market over $5 billion(1)

Surgical Implant – 6.5% of 2012 Sales Knees Hips Shoulders

$57.5$61.6 $63.9 $62.7 $64.9

$73.0

2007 2008 2009 2010 2011 2012

($ in millions)

+12.4% in 2012

(1) 2006 Frost & Sullivan.

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Surgical Implant Net Sales

Germany29.1%

ROW25.2%

France19.7%

Canada8.8%

Spain, Benelux &

Italy

8.4%

Nordic3.5%

UK5.3%

$219.5$252.3 $241.5 $244.5

$279.3 $280.5

2007 2008 2009 2010 2011 2012

International – 24.8% of 2012 Sales

International Net Sales 2012 Sales Mix by Geography ($ in millions)

+5.7%(2) in 2012

(1)

(1) 2007 Pro Forma for DJO Merger. (2) Excludes impact from changes in foreign currency exchange rates (constant currency) and

pro forma for 2011 acquisitions.

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(3)

Strong New Product Pipeline

Reaction Knee

X-Act ROM Knee

X-Act ROM Elbow

IceMan CLEAR3

RSP Monoblock

Exos

OA Nano

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• Market leader in multiple market segments and product categories

• Established global presence with over 60 years of history in the physical therapy market and over 30 years of history in orthopedics market

• Brand recognition and comprehensive product range promotes loyalty from prescribing physicians and physical therapists

• Low regulatory and technology substitution risk

Leading Market Positions: Defensible, Comprehensive Product Offering

Strong brand names

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Attractive Open Market Spaces

CONSERVATIVE CARE TREATMENT OPTIONS FOR KNEE PAIN

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• Main manufacturing facility in Tijuana, Mexico (285,000 square feet) is renowned for operational excellence and low cost manufacturing

• Best practices in “lean manufacturing” in all facilities and culture of continuous improvement yield margin expansion

• Expanded plant in Tunisia for European products

• Vertically integrated manufacturing competencies

• Efficient, automated distribution capabilities

• Comprehensive mechanical and electronic R&D competencies

Competitive Advantages in Manufacturing, Distribution and R&D

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DJO Global Locations

Vista (HQ)

Tijuana Austin

Mississauga

Indianapolis

Shoreview

Clear Lake

Guildford

Malmo

Sfax

Mouguerre

Herentals

Freiburg

Milan

Sydney

Ecublens

Hong Kong

Cape Town

Asheboro

Mequon

Shanghai

New Delhi

Key Global Operation Sites

DJO World Headquarters

Vista, California 110,000 Square Feet

400 Employees

120 Manufacturing

Product Segments: Bracing and Supports, Recovery Science (BGS)

DJO Surgical

Austin, Texas 75,000 Square Feet

160 Employees

Product Segments: Surgical, Recovery Science

DJO Mexico 285,000 Square Feet

1850 Employees

Product Segments: All

Key Global Operation Sites Con’t

DJO Clear Lake, South Dakota

60,000 Square Feet

175 Employees

Product Segments: Bracing and Supports, Recovery Science

DJO Sfax, Tunisia

50,000 Square Feet

92 Employees

Product Segments: Bracing and Supports, Cefar/Compex

DJO Indianapolis

75 Employees

110,000 Square Feet

Products: All

Key Global Operation Sites Con’t

Mouguerre, France 130 employees

50,000 Sq. Ft.

Product Segments: All

DJO Shoreview. MN 400 Employees

Reimbursement Center

Global Corporate Responsibility

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Culture

What is Organizational Culture?

...is like the “operating system” of the organization. It guides what people value

and how they think, act, feel and create.

Culture

Culture Changes As Companies Grow

more impersonal

more stressful

more bureaucratic and inwardly focused in its perspective

more political

less focused on the entrepreneurial leader

less fulfilling

Leaders must adapt to

each wave of change

and transform the

organization again and

again if it is to flourish!

They naturally

become

()

DJO’s Journey Over the Last Several Years

Integration – Integration – Integration

DJO has integrated 14+ diverse businesses into 1 Global Organization

DJO Culture

How DJO drives the business to exceed customer expectations and continuously improve our products and processes across all of our

value streams.

Core Company Values – (Our Operating System)

Values System The connective tissue for the

organization

Core Values

Corporate Citizenship

Corporate Citizenship Strategy

To contribute actively and voluntarily in the improvement of the human, social, economic environment. placing our social image in a lead and competitive position of added value for the company and global environment

Our commitment with sustainability has taken us to minimize the environmental impacts generated by our processes.

We understand the needs of our community and assume a social commitment, working with social and non-profit organizations, changing the course of the lives we touch.

Community

Environment

Health We promote the adoption of a healthy life style, which includes proper nutrition and frequent practice of physical activity through the health program

DJO Mexico Corporate Citizenship Strategy

Community

•Lunch Day

•Together vs. Cancer

•Hands that transform

•DJ TON

The accounting department adopted lunch day, to prepare and give out lunch bags filled with a sandwich,

a juice box and a fruit, in several public health institutions in Tijuana, such as, red Cross, social security

clinics and the Tijuana General Hospital. The lunches were given to the patients relatives that are waiting

out side of the emergency rooms to hear from their sick.

They also helped a community kitchen that gives food to kids, called La Casa del Alimento AC, with a

food drive that lasted all year long (the collection of cans was made every 15 days)

Beneficiaries 34,152

Volunteering hours 893

Voluntaries 411

6,689 donated items

Lunch Day

Customer Care, partnered up with Castro Limon Foundation to help in a found raiser for kids

with cancer. All the money collected was destined to help 2 little kids with this health problem

It took all year long, with weekly contributions that went form 1 peso, t any amount that the

employee decided.

Volunteering hours 180

Volunteers 19,896

Together vs. Cancer

before

After

This program was adopted by the Materials department, and helped Carita de Dios AC (they

have kids w/ Down syndrome).

We helped with improvements to their facilities, from planting tress, to painting the class

rooms, and much more.

Benefit population 35

Voluntary hours 246

Voluntaies 41

Hand that Transform

Knowing that our employees, always help the community, the Q.A. Department decided to

give out special packages to our pregnant and senior employees, we gave out dippers,

blankets and winter clothing.

Voluntary hours 180

Voluntaries 16

2,244 Dippers

Benefit population 39

DJ TON

•Wellness program

•Health Fair

•Bicycle Tour

•Kids Olympics

DJO Mexico Corporate Citizenship Strategy

Health and Wellness

The Wellness program has served our employees to adopt and have a healthier way of life,

the H.R. department has include in it, cooking classes, nutritionist consults, spinning, walk a

round's, an iron chef, and more.

Voluntary hours 15,408

Voluntaries 3131

impacts 5,414

Wellness program

Voluntary Hours 1200

Voluntaries 40

Benefit population 5,414

Health Fair The Health Fair, is an event that is open, not only for the DJO employees, also to all the

community, in it we have free consults, from doctors, pediatricians, optometrists, clinical

analysis, CPR classes and much more.

The engineering department invites everyone to enjoy and benefit from this event

The bicycle tour is adopted by the IT department, and it is to help community kitchens

that give food to children and elderly people, this time it was for the kitchen call, Casa del

Alimento AC. That helps 800 kids per week.

Voluntary hours 2450

Voluntaries 600

Benefit population 800

Bicycle Tour

For this event, the production department, invited all employee kids to participate on the

activities designed for them, such as, cycling tours, zumba for kids, football soccer

tournament and more.

We invited several know characters form the community, such as TropoBot, from the Trompo

Museum, to interact with the kids, as well as our fire department with their truck

Voluntary hours 408

Voluntaries 45

Benefit population 678

Kids Olympics

•Environmental Education

•Planting a Tree

•Drawing Contest

• “I Recycle” Fashion pageant

DJO Mexico Corporate Citizenship Strategy

Environment

The Q.A. department dedicated this program to help the community and DJO employees to

understand and learn more about the environment, they did it with EcoTips, Tree adoption

and a mobile zoo, among other initiatives.

Benefit Population 7933

Voluntary hours 58

Voluntaries 16

Environmental Education

This event has become an activity that is done twice

a year, the production department invites all

employees and family members to go to a

Government garden center, to plats trees or seeds.

This plats are then taken to local parks, schools and

are plant allover the city.

Voluntary hours 285

Voluntaries 66

11,198 Árboles

sembrados

Planting a Tree

The drawing contest invitation was made by the machine shop department, to all of the DJO

employee kids, the drawing had to be about the local plants and animals.

We received 77 drawings that were displayed and put to a vote to pick the winner, that won a

mini laptop

Voluntary hours 36

Voluntaries 77

Ecology drawing contest

This pageant was done during the company picnics, production invited all personnel to

participate, the teams that participated, had to explain their design and how it was important

to recycle the materials they used. There were 3 winners in the first round, and one at the end

of the program.

Voluntary hours 1428

Voluntaries 57

Impacts 7,036

“I Recycle” Fashion pageant

Business Partnership

Core Functions of an HRBP

Operations Manager Measures and monitors existing policies and procedures

Emergency Responder Provides immediate fixes to acute emergencies

Employee Mediator Creates sustained solutions to individual employee challenges

Strategic Partner Crafts and implements strategies to chronic challenges

Policy Management

Acute Challenges

Chronic Challenges

People Management

Sustained Solutions

Immediate Fixes

Measure & Monitor

Craft & Implement

Centers of Excellence

Focus on Talent and Engagement

HR Strategic Focus

Talent Management

Talent management is the cyclical effect of ongoing talent assessment, talent development, and succession planning.

The term “succession planning” refers to a systematic process of developing individuals to fill an organization’s key roles.

When a successful plan exists, the organization will have a sufficient number of qualified candidates to fill key positions. Individuals are identified in terms of readiness to fill specified roles within a given time period.

How strong is our bench?

“Think Talent!” A Talent Management Program at DJO Global

Q1 – Plan Designed and implemented

CLT and direct reports - completed

Q2 – CLT and Direct reports – completed

Developments plans being completed

Launched “Think Talent” program with HR business partners and other functional leaders

Leader guides and templates developed

Q3 – roll out to next level in org

Talent Review

Talent & Succession

9 Box Grid

TALENT & ENGAGEMENT IS A GLOBAL COMPETITIVE BUSINESS STRATEGY

HIRE THE BEST TALENT

DEVELOP/ ENGAGE

RETAIN

Strategies: – Determine Strengths – Position Profiles – Assess Performance History – Hosting Candidates – Competitive Compensation – Ongoing Sourcing by Leaders – Positional Sourcing Strategy (ie Engineers, Managers) – Social Networking – Inclusion – Military – On-boarding Resources: – Gallup New Hire Assessment – Behavioral Interviewing – Formal Internship Program – Employee Referral Program – Developmental Assignments – Virtual Edge Applicant Tracking – Internal Talent Repository – Leadership Referral Outreach – New Manager Orientation

Strategies: – Talent Management – Succession – Engagement – Performance Management Resources: – Q12 Survey – Q12 Action Planning – Strengths Finder – IDPs – 9 BOX – Succession Planning – ELP – 4 Keys Coaching – Manager Ready – Performance Review – Situational Leadership II – Leadership Academy – Team Strengths Coaching – Catalyst Leader – Talent Audit – 360 Feedback Assessment – Leadership Assessments – Continuing Education – Educational Reimbursement/ – Cooperatives Executive Programs

Strategies: – Proactive Culture – Proactive Communications Resources: – Retention Risk Assessment – Awareness/Warning Signs

Strategies: – HR Partnership with growth decisions – Timely workforce planning – Change management – Annual HRLT Workforce review – Annual CLT workforce review Resources: – M&A process – Workforce planning tool – Change management process

EXPAND AND GROW THE BUSINESS

Performance Optimization

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Satisfaction: Traditional employee surveys are based on the premise that employees should be happy or content. This satisfaction is either the goal by itself or is simply assumed to create better business performance.

The Flaw: Employees are often “satisfied” for reasons contrary to the interests of the business.

Engagement: Engaged employees are 100% psychologically committed to their jobs. They are involved in and enthusiastic about their work. Those who are engaged are safer, more likely to stay, more productive, and more likely to succeed with customers.

The Advantage: Engagement aligns the interests of the employees with those of the business.

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Engagement vs. Satisfaction

29% 52% 19%

Engaged Not Engaged Actively Disengaged

These teammates are loyal and psychologically committed to the organization. They are more productive and more likely to stay with their company for at least a year.

These teammates may be productive, but they are not psychologically connected to their company. They are more likely to miss workdays and more likely to leave.

These teammates are physically present, but psychologically absent. They are unhappy with their work situation and insist on sharing this unhappiness with their colleagues.

Three Categories of Engagement: U.S. Working Population

*Source: Gallup Poll of US Working Population, December 2011.

It is strongly connected to performance. Across organizations and industries, Gallup consistently finds a very strong link

between Employee Engagement and key performance metrics, including customer engagement, sales, revenue growth, and profitability.

You can measure and improve it. Gallup’s Q12 metric provides a proven method for measuring Employee

Engagement, and companies that implement targeted intervention programs have significantly improved their results over time.

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Employee Engagement Is Critical for Two Reasons:

Why Employee Engagement Really Matters

I know what is expected of me at work.

I have the materials and equipment I need to do my work right.

At work, I have the opportunity to do what I do best every day.

In the last seven days, I have received recognition or praise for doing good work.

My supervisor, or someone at work, seems to care about me as a person.

There is someone at work who encourages my development.

At work, my opinions seem to count.

The mission/purpose of my company makes me feel my job is important.

My associates (fellow employees) are committed to doing quality work.

I have a best friend at work.

In the last six months, someone at work has talked to me about my progress.

This last year, I have had opportunities at work to learn and grow.

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The Questions That Matter

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The Big Picture

Employee Engagement Assessment – Q12

Sources of Engagement and Disengagement

Team Impact Plan

Increased Engagement

Improved Performance

It’s about driving performance…

And your role is extremely important.

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DJO MEXICO AWARDS AND RECOGNITIONS 2011

2nd Place as the Best Company to Work in Mexico (GPTW)

Special recognition as the company with best Fellowship in Mexico.

Safe Company Certification (5th year)

18 Place as the Best Company to Work in Latin America.

Clean Industry Certification (Re –certification)

The Journey Begins Now!

“Every journey starts with a first step”

Together in Leadership

Thank You