Forward-Looking and Non-GAAP Financial Measures

Goldman SachsLeveraged Finance Healthcare Conference 2013

March 6, 2013

Biomet, Inc.Daniel P. Florin

Senior Vice President & Chief Financial Officer

Forward-Looking and Non-GAAP Financial Measures 2

Non-GAAP Financial MeasuresThis presentation uses non-GAAP financial measures, such as net sales excluding the impact of foreign currency (constant currency), free cash flow, unlevered free cash flow, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) as adjusted, net debt, senior secured leverage ratio, total leverage ratio, and cash and cash equivalents (as defined by the Company’s credit agreement) as important financial measures to review and assess financial and operating performance of its principal lines of business. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included on the Biomet website at www.biomet.com

The term “adjusted” or “as adjusted,” a non-GAAP financial measure, refers to financial performance measures that exclude certain income statement line items, such as interest, taxes, depreciation or amortization, other income (expense), and/or exclude certain expenses as defined by our credit agreement, such as restructuring charges, non-cash impairment charges, integration and facilities opening costs or other business optimization expenses, new systems design and implementation costs, certain start-up costs and costs related to consolidation of facilities, certain non-cash charges, advisory fees paid to the private equity owners, certain severance charges, purchase accounting costs, stock-based compensation and payments, payments to distributors that are not in the ordinary course of business, litigation costs, and other related charges.

These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Biomet management believes that these non-GAAP measures provide useful information to investors; however, this additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for financial information prepared in accordance with GAAP.

Forward-Looking StatementsThis presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements are often indicated by the use of words such as “will,” “intend,” “anticipate,” “estimate,” “expect,” “plan” and similar expressions. Forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from those contemplated by the forward looking statements due to, among others, the following factors: the success of the Company’s principal product lines; the results of the ongoing investigation by the United States Department of Justice; the ability to successfully implement new technologies; the Company’s ability to sustain sales and earnings growth; the Company’s success in achieving timely approval or clearance of its products with domestic and foreign regulatory entities; the impact to the business as a result of compliance with federal, state and foreign governmental regulations and with the Deferred Prosecution Agreement; the impact to the business as a result of the economic downturn in both foreign and domestic markets; the impact of federal health care reform; the impact of anticipated changes in the musculoskeletal industry and the ability of the Company to react to and capitalize on those changes; the ability of the Company to successfully implement its desired organizational changes and cost-saving initiatives; the ability of the Company to successfully integrate the Trauma Acquisition; the impact to the business as a result of the Company’s significant international operations, including, among others, with respect to foreign currency fluctuations and the success of the Company’s transition of certain manufacturing operations to China; the impact of the Company’s managerial changes; the ability of the Company’s customers to receive adequate levels of reimbursement from third-party payors; the Company’s ability to maintain its existing intellectual property rights and obtain future intellectual property rights; the impact to the business as a result of cost containment efforts of group purchasing organizations; the Company’s ability to retain existing independent sales agents for its products; the impact of product liability litigation losses; and other factors set forth in the Company’s filings with the SEC, including the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. Although the Company believes that the assumptions on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or non-occurrence of future events. There can be no assurance as to the accuracy of forward-looking statements contained in this presentation. The inclusion of a forward-looking statement herein should not be regarded as a representation by the Company that the Company’s objectives will be achieved. The Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements which speak only as of the date on which they were made.

Biomet Profile*

Global Participant in the $40 Bn Device Market Addressing Osteoarthritis and Other Musculoskeletal Disorders– #4 Player in the ~$13 Bn Global Orthopedic Reconstructive Market

Legacy of Engineering Focus and Product Innovation Strong Service Relationships with Surgeons ~8,000 Team Members 3,000+ Sales Representatives Global Footprint with Operations in 50+ Locations Products Distributed in ~90 Countries

Note: International primarily includes Canada, South America, Mexico and Asia Pacific region

H1 Fiscal 2013 Revenues by Geography

H1 Fiscal 2013 Revenues by Product CategoryCompany Overview

Our Mission: One Surgeon Treating One Patient

3

*See Non GAAP Financial Measures Disclosure on Slide 2‐

Other Products (Microfixation/Biologics)

$105 M

$1.498 Billion

Large Joint Reconstructive

$837 M Spine & Bone

Healing$152 M

Sports, Extremities & Trauma (S.E.T.)

$280 M

Dental$124 M 7%

10%

19%

8%

56%

International$238 M

18% cc growth

$1.498 Billion

U.S.$923 M

10% growth

Europe$337 M

6% cc growth 16%22%

62%

10% y/y cc growth3% ex-Trauma Acquisition

Over a million times a year, it is our privilege to help one surgeon help one patient get back to an active lifestyle

Offer surgeons the best tools possible to deliver personalized patient care Provide extraordinary service and advocate for physicians and patients We fight for surgeons’ freedom to choose the best implants for their

patients, and for rational reimbursement that preserves patient access Treat every implant as if it were meant for a family member We have a highly experienced management team, with an average tenure in

orthopedics of more than 20 years

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

0

60

120

180

$240

$58.4 $58.8

$135.1

$206.1 $198.0

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

400

600

800

1,000

$1,200

$719.1

$829.1

$926.4 $1,000.0 $1,010.4 $1,031.1

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

1,500

1,800

2,100

2,400

2,700

$3,000

$2,107.0

$2,383.3 $2,504.1

$2,698.0 $2,732.2 $2,838.1

Strong Record of Consistent Financial Performance*

LeverageFree Cash Flow

Net Sales Adjusted EBITDA

CAGR: 7.5%CAGR: 6.1%

CAGR: 35.7%

4

5%

8% cc

4%

3% cc

13%

9% cc

1%

1% cc

8%

7% cc

LBO Close

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

5.0x

4.3x3.6x 3.1x 3.1x

2.7x

2.1x1.9x

1.8x1.6x 1.5x 1.5x

1.4x1.2x

1.1x1.0x 1.0x 1.0x

8.5x7.4x

6.5x5.7x 5.6x 5.2x

Secured Senior Sub

4%

2% cc


34.1%

34.8%

37.0%37.1% 37.0% 36.3%

WW Hip/Knee Constant Currency Growth Rates by Calendar Quarter Biomet’s WW Hip/Knee Market Share Growth

Biomet WW Hip/Knee Performance vs. Market*

Note: Biomet’s data reflects rates provided in our fiscal quarter press releases (ending one month prior to each calendar quarter end), which have not been restated for product line reclassifications; Market rates reflect our internal estimates and are based on calendar quarters

5Q1

'07Q2

'07Q3

'07Q4

'07Q1

'08Q2

'08Q3

'08Q4

'08Q1

'09Q2

'09Q3

'09Q4

'09Q1

'10Q2

'10Q3

'10Q4

'10Q1

'11Q2

'11Q3

'11Q4

'11Q1

'12Q2

'12Q3

'12Q4

'12-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

BIOMET MARKET


10.3%11.0% 10.7%

11.4%

14.2%

12.9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

WW Hips WW Knees WW Hips/Knees

QE 03/31/07 QE 12/31/12

+1.1% +3.2% +2.2%

Biomet Sports, Extremities and Trauma (S.E.T.) WW CC Growth Rates*

Sports Extremities Trauma-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

11%

15%

-19%

9%

16%

-6%

19%

14%

0%

22%

18%

0%

21% 22%

-3%

12%

15%

199%

15%

23%

272%

Q4 FY'11 Q1 FY'12 Q2 FY'12 Q3 FY'12 Q4 FY'12 Q1 FY'13 Q2 FY'13

FY’12 Biomet: 18%FY’12 Market: 6%

FY’12 Biomet: 18%FY’12 Market: 10%

FY’12 Biomet: (2%)FY’12 Market: 7%

6

Trauma(ex-Acquisition) Q1 FY’13 = 0%Q2 FY’13 = 1%


($ in millions) H1 FY’13 H1 FY’12 Growth Comments

Net Sales $ 1,497.5 $ 1,389.7 8% 10% cc

Ex-Trauma Acquisition: Net Sales: 1% as reported 3% constant currency

Adjusted EBITDA $ 526.0 $ 492.9 7% Strong Increase Despite Short- Term Costs Incurred in Connection with Trauma Acquisition

Adjusted EBITDA (% of sales)

35.1% 35.5% - Impacted >100 bps by Trauma Acquisition

Total (Net Debt) Leverage Ratio(1)

5.5x 5.5x - $280M Trauma AcquisitionRefinancing Activities: Annual Interest Savings of ~$80M

Free Cash Flow $ 21.7 $ 52.6 - Impacted by Trauma Integration, NPI Inventory & Instruments, and Refinancing Activities

(1)As defined by our credit agreement NOTE: Free Cash Flow Reflects Cash Flow Provided by Operations Minus Capex

H1 FY’13 Financial Summary*


7

Extended $3.0 billion of our term loans (90% of total outstanding) by 2.5 years to July 2017, while preserving covenant- lite structure

Fully refinanced our $2.5 billion of HY Notes, maturing in Oct 2017 carrying a weighted average coupon of 10.8% with 6.5% Notes maturing in 2020

Replaced our $750M revolving credit facilities, due to mature in 2013, with new facilities of $830M maturing in 2017 Refinancing activities drive an $80

million reduction in cash interest in FY13 versus FY12

8Fiscal 2013 Refinancing Summary

2013 2014 2015 2016 2017 2018 2019 2020$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

750

3323

2547

Debt Maturities Before Refinancing

2013 2014 2015 2016 2017 2018 2019 2020 $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

327

2996 2625

Debt Maturities After Refinancing

$830

TKA No TKA (reference

cohort)

THA No THA (reference

cohort)

0

0.2

0.4

0.6

0.8

1

1.2 Hazard ratio of death at 7 years1,2

Haza

rd ra

tio (r

efer

ence

= 1

)

Footnoted data outlined on next slide

2010 Estimated Savings of $7.4 Bn Compared to LOS Remaining at 1990 Average*

1990 20090

2

4

6

8

7.4

3.3

Average LOS, OA hospital discharges

Aver

age

Hosp

ital L

OS

0%

2%

4%

6%

8%

10%

12%

14%

16%

52%

54%

56%

58%

60%

62%

64%

66%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010% Medicare Rev rate

Value of OrthopaedicsGreater Proportion of Younger Patients, Yet Declining Revision Burden

Length of Hospital Stay for OA Treatment

Source: H-CUPnet database, 1998-2010, U.S. Dept. of Health and Human Services

Declining Revision Burden Resulted in Savings of >$2 Billion

% Medicare

Revision Burden

(# in days)

9

*Assuming LOS at 3.3 days in 2010. 1990 LOS data from “Health, United States 2011”; 2010 LOS data from HCUPnet database. Est. cost per hospital day of $1853 in 2010 from Kaiser Family Foundation; 974,000 OA discharges (primary diagnosis) in 2010 from HCUPnet database.

Rev

isio

n B

urde

n (%

of P

rimar

y C

ases

)

% M

edic

are

Patie

nts

TJR Improves General Health and Longevity

Knee source: Lovald, et al., J. Arthroplasty, November, 2012Hip source: Lovald, et al., publication pending. To be presented at 2013 AAOS Annual Meeting

47% reduction in risk of death following TKA48% reduction in risk of death following THA

Total Knee Replacement1 Total Hip Replacement2

Total Joint Replacement Improves General Health and Longevity 10

• 25,904 Medicare TKA patients and 39,183 Medicare non-TKA patients with seven years of follow-up

• General health comparable

Results at seven years post-operation:• 47% reduction in risk of death• 7% reduction in risk of heart failure• Incremental cost per patient of $2800 per

year for TKA patients over seven years• Including estimated savings from prescription

drugs, incremental costs drops to $2100 per patient per year over seven years.

Knee study: Lovald, et al., J. Arthroplasty, November, 2012Hip study: Lovald, et al., publication pending. To be presented at 2013 AAOS Annual Meeting

• 10,523 Medicare THA patients and 13,443 Medicare non-THA patients with seven years of follow-up

• General health comparable

Results:• Mortality, heart failure, depression, and

diabetes were all reduced in the THA group.• 48% reduction in risk of death at seven years• 8% reduction in risk of heart failure at seven

years• 10% reduction in risk of depression at seven

years• Incremental cost per patient of $909 per year

for patients receiving THA compared to untreated patients.

• Including estimated savings from prescription drugs, THA is cost-saving over seven years.

Keys to Winning in the Current Health Care Reform Environment 11

Product Differentiation to Drive Share and Mix

Increased Need for Clinical and Economic “Proof” Sources

Service Offerings to Create Value Beyond Product Technology

Focus on Pricing to Full Value

®

Products Launched/Key Growth Drivers– Arcos® Modular Femoral Revision Hip System

– Active Articulation™ E1® Dual Mobility Hip System

– Taperloc® Complete Hip Stem

– Signature™ System for Oxford® Partial Knee

– Vanguard® SSK 360 Revision Knee System

– JuggerKnot™ Soft Anchor

– Comprehensive® Primary and Reverse Shoulders

– DVR® and A.L.P.S. Plating Systems

– Lineum® OCT Spine System (translation screw)

– Cellentra™ VCBM (Viable Cell Bone Matrix)

– BellaTek™ Digital Dentistry Solutions

Key New Products During FY’13:– Taperloc® Complete Microplasty® Stem (Q1 FY13 intro)

– Signature™ Acetabular System (clinical eval: H1 FY13)

– G7™ Acetabular System (clinical eval: Q2 FY13)

– Vanguard® XP (clinical eval: Q2 FY13; pending 510k clearance)

– Comprehensive® Segmental Revision System (S.R.S.)

– DVR® Crosslock Distal Radius Plating System and DVR® Crosslock ePAK

Key Pipeline Product: Market Expanding/Game Changer– Autologous, Point-Of-Care; Potential Substitute for HA Injections

Continued Product Innovation 12

Biomet 3i*

Overview: Outlook Biomet has recorded eight consecutive quarters of U.S. dental sales growth Continued soft markets in Europe (primarily southern region) and Asia Pacific Continued investment necessary for growth in digital dentistry New leadership in place; Strong R&D pipeline In June 2012, Biomet announced it was evaluating potential separation of 3i dental business in tax-free spin-off

– Spin to facilitate investment in division currently not allocated sufficient capital or management attention– No assurance that evaluation of potential separation of dental business will result in separation

BellaTek™ Digital Dentistry Solutions– Designed to reduce the time, cost, and

complexity of implant dentistry – Partnered with top 3 IOS providers:

– Align, 3M, and Sirona

New Products Sales Growth

FY’11 FY’12 FY’12 FY’12 FY’12 FY’13 FY’13

Q4 Q1 Q2 Q3 Q4 Q1 Q2

Worldwide(constant currency) (2%) (1%) 1% (2%) (4%) 1% (7%)

United States 6% 7% 11% 12% 3% 4% 4%

* See Non GAAP Financial Measures Disclosure on Slide 2‐

13

I. Fulfill our mission of serving “One Surgeon, One Patient”II. Establish Biomet’s premium value in the orthopaedic sector by:

• Achieving sustainable above market sales growth • Achieving sustainable double digit cash net income growth• Generating strong cash flows for debt pay down and reinvestment• Sustaining our pristine reputation

Overriding Objectives

Biomet Strategies

• Above market growth in every product / geography

• High impact new product programs, with clinical/economic evidence

• Exploit attractive growth opportunities in and adjacent to current business

• Partner with surgeons and hospitals via Rapid Recovery, DTC and other programs

• Tailored approaches to both developed and emerging markets

Sales Growth Cash Net Income Growth,Cash Flow

• Improve plant and COG’s productivity

• Efficient & supportive central functions

• Improved working capital management

• Flexibility in distribution & service models

PristineReputation

• Best-in-class product performance & quality

• Strong, consistent & user-friendly healthcare compliance system

• Best-in-class regulatory practices with outstanding audit performance

• Lead industry in advocacy around orthopaedics

• Cultivate vibrant “Can Do Family” culture • Attract, retain and develop premier talent

14

15The Rapid Recovery® Advantage

Leader in Surgeon Education 16

Multiple Labs/Training Centers Orthopaedic Skills Academy Lorenz Skills Academy Miami Lab Parsippany Lab Irvine Lab

Courses National Regionally Focused

Events Cadaveric Didactic

Graduate Medical Education – GME Mobile Cadaveric Labs Surgeon Mentor Program Surgeon-to-Surgeon Visitation Program Tours

Surgeons Residents and Fellows C-Suite

Tradeshow Exhibitions Workshops at Third Party Events Biomet Mobile Learning Center (Sports Med Bus)

Value Creation InitiativesValue Creation Program Initiated Post LBO in Mid-2007 Has Delivered Significant Cash Savings (+$100M) and EBITDA Contribution (+$65M), While Maintaining the Highest Levels of Quality and Customer Service

Plant Network Optimization: Reduced Plant Facilities from 17 to 11 (including 2 new China plants) to Lower Cost of Production and Optimize Capacity Utilization

Lean Manufacturing Strategic Sourcing SIOP and Inventory Management Program Now Embedded in Day to Day Operations

Medical Device Tax (2.3% of U.S. Sales) Adds Another Headwind……Pursuing Additional Opportunities to Lower COGS & Improve our Supply Chain Emphasis on Plant-Level KPIs Continue to Evaluate Plant Network in Light of Evolving Health Care Environment Lower Global Distribution/Warehousing Costs and E&O One Patient Solutions Initiative

Improving Both Efficiency and Effectiveness in SG&A and R&D Global Orthopaedics Product Engine Structure Shared Service and Out-Sourcing Models Ensure Sales Force Structure and Service Levels Provide Appropriate ROI Corp Infrastructure

17

Goldman SachsLeveraged Finance Healthcare Conference 2013

March 6, 2013

Biomet, Inc.Daniel P. Florin

Senior Vice President & Chief Financial Officer

Documents

Forward-Looking and Non-GAAP Financial Measures