Health Supports Business Braces Supports Key Competitors Zeuba

Health Supports Business Braces & Supports Key Competitors Zeuba Many Regional Competitors Throughout the World 1 3 M Confidential. 07 December © 2020. All Rights Reserved. 3 M

Competitor Profiles § From a high level division standpoint, we have developed profiles for the following competitors. These profiles can be found on GMA. ― Don Joy ― OPPO Medical ― Beiersdorf ― Bauerfiend ― Thuasne ― Hartman ― Mueller ― BSN § Please share any other local/regional competitor profiles that you feel would be relevant to our business. These can be sent to Amanda Fahey for addition to Global Marketing Assets. 2 3 M Confidential. 07 December © 2020. All Rights Reserved. 3 M

2013 Business Highlights DJO Global, Inc. is a leading global provider of high-quality, orthopedic devices, with a broad range of products used for rehabilitation, pain management and physical therapy. We also develop, manufacture and distribute a broad range of surgical reconstructive implant products. § Headquarters: San Diego, CA § http: //www. djoglobal. com § Employees: 5000 Key Contributors to Sales Growth: § Market dominate positions in orthopedic rehabilitation product lines (The depth and breadth of products and brands is unmatched) and preferred provider and managed care contracts have enabled DJO to secure significant market share § Billing System: DJO has a third party billing system which includes approximately 9, 000 different insurance companies and other payors, including over 1, 000 active payor contracts. The DJO proprietary third party billing system is designed to reduce our reimbursement cycles, improve relationships with managed care organizations and physicians and track patients to improve quality of care and create subsequent selling opportunities. Further, our Office. Care and Empi. Care businesses maintain consigned inventory at over 1, 300 healthcare facilities , primarily orthopedic practices, which further strengthens our relationships with these healthcare providers. • Sales Organization: 13, 000 dealers and distributors - a direct sales force of over 500 employed sales representatives and approximately 900 independent sales representatives call on physical therapy clinics, orthopedic surgeons and practices, orthotic and prosthetic centers, hospitals, surgery centers, athletic trainers, chiropractors, other healthcare professionals § Manufacturing: Low cost, high quality manufacturing capabilities. The principal manufacturing facility is located in Tijuana, Mexico and has been recognized for operational excellence. DJO’s low cost manufacturing is due to the Six Sigma and continuous improvement processes. DJO uses TSS equipment (Similar to 3 M CINCY) – The Tijuana plant is 2 X the size of CINCY § Geographical Comments: DJO has purchased several of its overseas distributors in key locations, including Australia, Canada, South Africa, and Tunisia. These strategic acquisitions gives DJO control over the sales and distribution of its products in the more than three dozen countries it serves Strategic Implications for 3 M • The Bell-Horn Retail Product Line: Not a strategic Brand to DJO – Low Risk to CHC • Better. Braces. com: A multichannel competitor to 3 M and our Retail Customers – May limit DJO’s ability to • • 3 3 M Confidential. sell to the Drug / Mass Channel The DJO direct and indirect sales force and financial / billing system is a competitive advantage : DJO has the feet on the street and understands the nuances of the medical channel for braces and supports. A major barrier to 3 M launching the ACE™ Brand or Futuro™ products in the medical channel The DONJOY and PROCARE Brands have similar technology to the ACE™ Brand Futuro™ product lines: Entrance into the medical channel with our current product line will need to based on price and by leveraging the 3 M Medical Resources – A departure from CHC’s lead with technology retail strategy DJO acquired ETI: 3 M Purchases $6 MM (Roughly 25% of the ETI NC plant production) from ETI and is reliant on ETI for the Futuro Hosiery Line – High risk for CHC Exos Product Line: is gaining doctor acceptance and is a strong threat to the 3 M Scotchcast™ Plus Casting Tape product line - High Risk for 3 M BOA Technology: Is a significant part of new product development for the immobilization brands of DJO possibility limiting 3 M technological opportunities in the medical channel DJO New REACTION WEB Brace is a responsive, webbed approach to knee pain that gives you a distinct alternative to the basic knee sleeve developed by World Renown Surgeon Dr. Nordt – CHC is behind the technology curve for knee braces which account for 30% of the category DJO is for sale: DJO would be complementary to the 3 M Medical and CHC businesses DJO Competition: Ossur (Royce Medical USA) – Similar to DJO in the medical channel in the USA Competitor to 3 M in the Retail Channel in Europe – Possible acquisition target for 3 M Financial Snapshot 2012 Sales $1. 1 B • GM $685 M • SGA $460 M • R & D $28 M • Amortization $104 M and Impairment Interest and other Net Loss ($119 M) Cash on Hand $31 M 5% Increase from 2011 61% 41% 2% 9. 3% $216 M 19% Down $7 MM from 2011 DJO Segment Sales 2011 Braces and Supports 36% up 24% Recovery Science 31% down 1. 3% International 26% up 14. 2% Surgical implant 6% up 3. 5% Relevant Brands Retail & Medical Channel Diabetic Footwear / Hosiery Retail Channel Braces / Supports Elastic Therapy, Inc. (ETI) Medical Channel Immobilization Medical Channel Braces / Supports Primarily Wrist / Thumb BOA Technology Primarily knee / back Medical Products DJO Reaction WEB Brace Electrical Stimulation Orthopedic Products 07 December © 2020. All Rights Reserved. Braces with Electric Stimulation 3 M

OPPO Medical § § 2013 Business Highlights Financial Snapshot Consumer Overview: § Sales: Sales are hard to gauge. The company is private. Lexis Nexis puts 2012 sales at $70, 000. OPPO LP does business in 50 countries. The Headquarters: Tukwila, Wa. USA majority of sales are in Asia. We estimate sales in 2012 to be $47 MM Manufacturing: Taipei, Taiwan USD. This would be a market share of 8% in sales and 6% in units. The http: //www. oppomedical. com www. lp-supports. com other $23 MM is in LA/CA ($10 MM), and US , MEA and Europe ($13 MM ). Employees: 4 US volume is mostly in the on line and MRE channels. . § Key Contributors to Sales Growth: The company was incorporated in 1987. The principals are Jackson Chiang Principal OPPO. Theresa Wong principal La Pointique LP Supports. The company manufactures a full line of health supports, compression clothing, foot care products, § Sales: est $70 MM USD compression hosiery and athletic tapes. The company uses the tag line § COGS 40% Support Your Healthy Lifestyle. § COI 15 to 20% § Medical Market: OPPO brand is used in the medical and pharmacy distribution channels. . The company uses health care professionals to help develop their products. They exhibit at major medical shows in Asia, Middle East and Latin America. Several of the products have won red dot design awards. They have extensive medical offerings (i, e hernia, lumbar, etc. ). § Sports Market: LP Supports is the brand used in the sports channels and modern trade. § Operating Profit: Estimated COGS in the 40 to 45% range. The Strategic Implications for 3 M company has an extensive practice of selling on consignment. They also § This is the most dangerous type of competitor for us. It is small and quick to re run lease departments in major retail outlets. § With vertical manufacturing they can have a distinct cost advantage. Brands § Manufacturing: Seems. Relevant to have knitting and manufacturing expertise § They have a much wider range of products then us in all categories (i. e brace § Geographical Comments: Estimated Sales breakdown: APAC 67%. compression hosiery, foot care and sports. This gives them a stronger one sto LA/CA 14%. MEA and Europe 14% USA 5% component to the retail partner. Limiting vendors and transaction cost. § In many markets they have first mover advantage. § They sell on consignment and provide lease department arrangements with k This is a very dynamic business model that reduces the retailers’ risk and cas § They relaunch our discontinued products into distribution to increase their valu § Their “disease state” portfolio gives them areas to own that we do not particip This fact gives them professional credibility. 3 M Confidential. 07 December © 2020. All Rights Reserved. 4 Privately Held 3 M

2013 Business Highlights. § Headquarters: Hamburg - Germany § http: //www. beiersdorf. com/ § Employees: 16, 354 Financial Snapshot • BDF continues to implement their Blue Agenda (“Focus on Skin Care, closer to markets”). • 2012 Consumer Business grew +4, 9% in LC. • Eucerin posted +6, 6%, Nivea +6, 4, Plasters brands +2, 8%. • Plasters increased in Germany and Latin America while West EU recorded decline in sale. • Q 1 2013 the Consumer Group grew +5, 7%, Nivea +5, 7%, OUTLOOK: Eucerin +9, 4%. • COGS = 36, 7% of sale. • SGA = 42% of sale. • A&M 24 % of sale. Strategic Implications for 3 M 5 3 M Confidential. # BDF declared strategic intent is to continue to focus resources and efforts on the skin care portion of the Consumer Group with less emphasis on wound care. We expect them to continue to focus primarily on Nivea brand geographically on emerging markets. Hansaplast brand has high market share in the retail channel where Nexcare do not compete. Hansaplast has dominant share in the pharmacy channel in Germany and Austria and represent a high barrier to enter the category for Nexcare. Pharmacy channel remains a strategic channel for BDF as both Eucerin and La Prairie skin care products are sold exclusively. The BDF Pharmacy channel access continues to represent a competitive treat if BDF was to focus on wound care categories. BDF has tried to re enter the support market in Spain, Belgium and Italy with a limited number of skus but failed. Relevant Brands • Eucerin is a dermocosmetic brand sold only in the pharmacy channel with a good price/value relationship. • La Praire is a high end skin care cosmetic brand. 07 December © 2020. All Rights Reserved. 3 M

2013 Business Highlights Financial Snapshot . Bauerfiend is a private company. Bauerfeind Ag produces medical and wellness products. Its products include compression stockings, supports, orthoses, orthopedic insoles, and prosthetic components. The company also provides venous and lymphatic therapy, leg ulcer § Headquarters: Zeulenroda and Remscheid (Germany) therapy, flat knitted, and therapy support products, as well as heel cushions. It offers its products in the areas of phlebology, orthopedics, foot orthopedics, and prosthetics § http: //www. bauerfeind. com for foot, spinal columns, hands, elbows, and shoulders, as well as for knees, hips, and § Employees: 1, 600 thighs. Bauerfeind Ag provides its products through distributors. The company was founded in 1929 and is headquartered in Zeulenroda-Triebes, Germany. It has subsidiaries in Europe, the Middle East, and the United States. Bauerfiend has recently invested in sophisticated 3 D, CAD Techonlogies to take exact measuraments to produce hosiery and Orthoses to custom fit including a wireless measurement system (Venoscant) that visualizes the vein function via light reflection rheography. Strategic Implications for 3 M Bauerfiend produces in Germany starting from the fabric. Relevant Brands • Bauerfiend is positioned on a higher price • • 6 3 M Confidential. point segment of the supports market versus Futuro™. In many markets they sell in the Medical Store channel while Futuro™ is primarily sold in the Pharmacy Channel. Bauerfeind could become a serious treat if they would introduce a lower quality/lower price range of products going down the pyramid. 07 December © 2020. All Rights Reserved. 3 M

2013 Business Highlights Financial Snapshot . 2011 : International development : take-over of the american firm Townsend Design (CA 19 mls $). § Headquarters: Saint-Etienne France 2009 : Red dot design award prize for Lomba. Pro Activ lumbar belt. § http: //www. thuasne. com Launch of Venoflex Incognito, the most transparent stocking. § Employees: 1, 400 2008 : International development : take-over of the German firm Thämert. 2007 : Lombax Nature awarded the Janus de la Santé 2007 award. Strategic Implications for 3 M 7 3 M Confidential. • 42% of Thuasne sale are made outside France. • France remains the most important market for Thuasne. • Thuasne leads the support market in France with 29% share and 12, 5% MS in the Hosiery Market. • Recently restructured organization in Italy to accelerate growth, however their positioning and distribution channel is with Medical stores (low emphasis on Pharmacies which is Futuro™ main channel. • The acquisition of Townsend (turnover 19 mls $, 90% in the US) shows the strategic interest of the Thuasne is a private company. Relevant Brands 8, 000 Products Sport 07 December © 2020. All Rights Reserved. 3 M

2013 Business Highlights Financial Snapshot . • Hartmann reached in 2012 1, 758 bl €, with an increase of 3. 5%. • Wound Management segment grew +3. 9% at 473 ml€ and earnings of 45. 5% (9. 6%). § Headquarters: • Products to End Users/retail segment grew +6% at 276. 8 ml€ § http: //www. hartmann. info/EN/index. php with earnings of 3. 4 ml€ (1. 2%). § Employees: 10. 000 • East Region grew +9. 1% at 248. 8 ml€. • Russia represents the 4 th market for the Group where they are investing in production and logistics (Moscow). Strategic Implications for 3 M • Hartmann has a wide range of wound care products, wraps, supports and hosiery. • Based on their market activities they focus most of their efforts in the Professional market. • In both Spain and CH they are market leader in the plaster segment diluting our capabilities to grow. • In the East markets they are more aggressive in the Pharmacy market specifically in Russia, Poland Czech Republic. 8 3 M Confidential. Relevant Brands • Dermaplast sold in Pharmacies. • Market leader in CH and Spain. • Cosmos Brand sold in Retail and East Markets. 07 December © 2020. All Rights Reserved. 3 M

(Private Co. ) § Business Summary: § Mueller is a family-owned sports medicine leader that distributes products in over 52 countries worldwide. It is a manufacturer and distributor of sports medicine products and sells products through a network of retail outlets and pharmacies. (One. Source Company Summary Report) § Manufacturers pharmaceutical preparations, elastic braces, orthopedic braces, medicated and non-medicated medical adhesive tapes. (Lexis. Nexis Company Snapshot) § Mueller’s product lines include Quench®gum, Sport. Care® retail products, Mueller Green supports and braces and H 1 N 1 -fighting Whizzer® cleaner and disinfectant. § Key Facts: § Founded in 1961; Prairie du Sac, WI § $48. 3 million in annual sales (One. Source)To $100 million (Strategic Insights) § Reported increases sales of 8% in 2008 § In 2008, Mueller opened its wholly-owned subsidiary, Mueller Japan § Launched Mueller Green braces and supports in Q 4 2009 § 150 total employees § 25 OUS distribution agencies (M. Lauenstein, Linked. In) § Key Strategies: § Broad range of products § Strong patent protection § Eco-friendly (Green braces) § Target non-athletes through elite athletes 9 3 M Confidential. §Frontline of Competition (US): Hospital First Aid tapes Braces, & bandages Bdgs, Cold -Hot X X Wound & Skin Care Drapes, Gloves, Equipment X § Key CHC Products: §Cold/Hot §Tapes & Wraps Therapy §Braces & Supports §Mueller Green Braces & Supports 07 December © 2020. All Rights Reserved. 3 M

(Private Co. ) § Business Summary: § BSN medical is a global medical device company - and one of the world’s leading suppliers in the product segments of casting, bandaging, wound care and compression stockings. § BSN-Jobst, Inc. , headquartered in Hamburg Germany, manufactures and sells compression hosiery in the US and Europe. It offers medical hosiery, medical compression stockings, arm sleeves, plastic and reconstructive surgery garments, and bandages; and support wear, socks, vascular garments, consumer support stockings, and antiembolism stockings. (One. Source) § Business conducted primarily in hospitals, orthopedic offices, surgical centers, and urgent care facilities. § Key Facts: § A series of acquisitions and joint ventures lead to the creation of BSN-Jobst. This transition began in 1990 when Beiersdorf AG acquired Jobst, followed by an acquisition of Varitex in 1996, and in 2001, was re-named BSN-Jobst, the result of a joint venture holding co owned by Smith & Nephwe and Beiersdorf § BSN-Jobst Gmb. H net worth of $8. 3 million (One. Source) § BSN-Jobst Gmb. H ~160 employees (One. Source) § BSN Medical net sales were roughly $682 million in 2004 and $867 million in 2009 - continues to grow in excess of 4% § BSN-Jobst Gmb. H total assets of $37. 3 million in 2009 (One. Source) § Key Strategies: § Growth through mergers and acquisitions § Growth through innovation 10 3 M Confidential. §Frontline of Competition (US): Hospital First Aid tapes Braces, & bandages Bdgs, Cold -Hot X X Drapes, Gloves, Equipment Wound & Skin Care X § Key CHC Products: §Jobst Support Wear §Jobst Ultra. Sheerr §Jobst Opaque §Jobst Relief §Sensi. Foot §Jobst Compression Bandages §Comprilan §Radiante §Elvarex §Bellavar 07 December © 2020. All Rights Reserved. 3 M

(Private Co. ) § Business Summary: § Mc. David is the largest supplier of sports medicine products, technical protective athletic wear and consumer merchandising, with a 60% share of the market. (2006 Mc. David website) § Mc. David is the most widely used and recommended brand of braces among sports medical professionals and the industry leader in sports medical products, technical performance athletic wear and consumer merchandising. (multiple resources) § Manufactures and markets over 400 different products including knee braces, protective padding and protective apparel for athletes and sports medicine professionals. (Mc. David website) § The company sells its products through trainer supply/medical distributors, sporting goods chains, team dealers, and retailers in the United States. (Business Week) § Key Facts: § Founded in 1980; Woodridge, IL § 230 employees § Sales estimated at $30 -$60 million a year (multiple resources) § Ex-Im Bank insurance helped grow total exports from $1. 8 million in 2004 to $7. 7 million in 2007. Mc. David anticipates exporting $9 million in 2008. (2008 Export-Import Bank Annual Report) § Hex. Pad™ Technology, Mc. David’s brand of protective apparel is introduced in 2004 to protect athletes and enhance performance. In 2010 they expanded the brand to include a snow sport line. (Mc. David website) § Key Strategies: § Broad range of products § Commitment to quality products § Growth through innovation and technology 11 3 M Confidential. §Frontline of Competition (US): Hospital First Aid tapes Braces, & bandages Bdgs, Cold -Hot X X Drapes, Gloves, Equipment Wound & Skin Care § Key CHC Products: §Cold/Hot Therapy §Tapes & Wraps §Thermal & Compression Attire §Braces & Supports 07 December © 2020. All Rights Reserved. 3 M