Hanger : BofA Securities 2021 Virtual Health Care Conference Presentation

E M P O W E R I N G H U M A N P O T E N T I A L

Investor Presentation

BofA Securities

2021 Virtual Health Care Conference

Wednesday, May 12 2021

E M P O W E R I N G H U M A N P O T E N T I A L

Cautionary Note

Forward Looking Statements

This presentation contains statements that are forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include information concerning our liquidity and our possible or assumed future results of operations, including descriptions of our business strategies. These statements often include words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts" or similar words. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future

developments and other factors we believe are appropriate in these circumstances. We believe these assumptions are reasonable, but you should understand that these statements are not guarantees of performance or results, and our actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent releases or reports. These statements involve risks, estimates, assumptions, and uncertainties that could cause actual results to differ materially from those expressed in these statements and elsewhere in this presentation. These uncertainties include, but are not limited to, the financial and business impacts of COVID-19 on our operations and the operations of our customers, suppliers, governmental and private payers and others in the healthcare industry and beyond; federal laws governing the health care industry; governmental policies affecting O&P operations, including with respect to reimbursement; failure to successfully implement a new enterprise resource planning system or other disruptions to information technology systems; the inability to successfully execute our acquisition strategy, including integration of recently acquired O&P clinics into our existing business; changes in the demand for our O&P products and services, including additional competition in the O&P services market; disruptions to our supply chain; our ability to enter into and derive benefits from managed-care contracts; our ability to successfully attract and retain qualified O&P clinicians; and other risks and uncertainties generally affecting the health care industry. For additional information and risk factors that could affect the Company, see its Form 10-K for the year ended December 31, 2020 and Quarterly Report on Form 10-Q for the three months ended March 31, 2021, each as filed with the Securities and Exchange Commission. The information contained in this presentation is made only as of the date hereof, even if subsequently made available by the Company on its website or otherwise.

Note Regarding the Presentation of non-GAAPFinancial Measures: This presentation includes certain "non-GAAP financial measures" as defined in Regulation G under the federal Securities Exchange Act of 1934. Non-GAAP measures include Adjusted EBITDA, Adjusted EBITDA Margin, adjusted earnings per share, leverage ratios, free cash flow. As required under Regulation G, Reconciliations of GAAP and non-GAAP financial results are included in schedules at the Appendix. These schedules reconcile the non-GAAP financial measures included in this presentation to the most direct comparable financial measure under generally-accepted accounting principles in the United States. The non-GAAP measures contained herein are used by the Company's management to analyze the Company's business results and are provided for informational and analytical context.

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Hanger

At Glance

WHO WE ARE

• Industry leader in orthotics & prosthetics services
• $4.3 billion1 addressable O&P domestic U.S. market
• Pioneered prosthetic devices in 1861
• Focus on custom devices

BY THE NUMBERS

• Net Revenue2 $1.098 billion
• Two segments2:
• • Patient Care (82.5%)
  • Products & Services (17.5%)
• Adjusted EBITDA2,3 $124.2 million
• 4,900 FTEs (3.31.21)
• 825 clinic & satellite locations in 46 states and D.C. (3.31.21)

1Source: Hanger Inc. estimates.

2Calendar Year 2019. Hanger 2020 Net Revenue was $1.001 billion and Adjusted EBITDA of $105.1 million, reflecting the impact of COVID-19 The Company believes 2019 financial performance reflects an appropriate base to compare the Company's prospects on a forward-looking basis.

3Adjusted EBITDA is a non GAAP-measure. Please see the Appendix for a reconciliation of GAAP to non-GAAP metrics.

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Business Mix

Primary Focus on the Provision of Specialty Health Care

Net Revenue1	Adjusted EBITDA1,2
$1.098 BILLION	$124.2 MILLION - 11.3% EBITDA MARGIN
	Patient Care
	$164.6 million
	18.2% margin
Patient Care	Products &
$905.7 million	Services
82.5% revenue	$192.4 million
	17.5% revenue
	Corporate &
	Other
	($69.5) million
	Products &
	Services
	$29.2 million
	15.2% margin

1Calendar Year 2019. Hanger 2020 Net Revenue was $1.001 billion and Adjusted EBITDA of $105.1 million, reflecting the impact of COVID-19.

The Company believes 2019 financial performance reflects an appropriate base to compare the Company's prospects on a forward-looking basis.

2Adjusted EBITDA is a non-GAAP measure. Please see the Appendix for a reconciliation of GAAP to non-GAAP metrics.

E M P O W E R I N G H U M A N P O T E N T I A L

Investment Thesis

Industry Leader Building Sustainable Competitive Advantage

M A R KE T L E A D E R	S I Z E A B L E M A R KE T	D I F F E R E N T I AT OR S	G R O W T H L E V E R S
The leading provider	$4.3 billion market for	Competitive differentiation	Multi-tier strategy to grow
of orthotic and prosthetic	prescription prostheses,	through investments in clinical	organically, steadily expand
services in the United States	orthoses and prefabricated or	outcomes, centralized revenue	margins and pursue M&A to
	off-the-shelf orthoses	cycle management, patient	drive incremental growth
Provides approximately 21% of		engagement and supply chain to	opportunities
all O&P services	Broad demand drivers across	drive growth
in the United States	injuries and multiple, high
	prevalence disease etiologies

Premier scalable provider in a large market for specialized healthcare services

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