North America achieved sales growth of 18% in local currency in the second half of the year and above 20% growth in the fourth quarter, following a pandemic-related decline of 10% in the first half of 2020. This resulted in overall growth of 4% in local currency for the full year. In addition to strengthening regional management and the sales organization, a strong focus was placed on expanding the largest segment, wrist, which recorded dynamic growth in the second half of the year. In addition, growth was supported by new collaborations with selected distributors. The encouraging acceleration of growth in the second half of 2020 further emphasizes the significant potential of the US market for Medartis.

The APAC region delivered growth of 23% in local currencies in the second half of the year, following a first half that remained at the prior-year level. The 12% annual growth in local currencies reflects that this market region was the least affected by the coronavirus impact. The subsidiary in Australia, Medartis' strongest market in the region in terms of sales, reported excellent performance of 27% sales growth in local currency in the second half of the year. The new lower extremity subsidiary in Japan performed well, and the distributor markets in South Korea, Thailand and Japan for upper extremities also developed positively. In China, distribution activities were launched as planned in the fourth quarter of 2020.

LATAM recorded a decline in sales in the second half of the year (-9% in local currencies) and reported a loss in sales of 18% in local currencies for the full year. Overall, the subsidiaries in Brazil and Mexico remained below the previous year's sales levels, although they recorded significant growth in the fourth quarter compared to the prior-year period. In the Costa Rican distribution market, Medartis won a major hospital tender. In the distribution markets Argentina, Chile and Colombia, sales were strongly affected by the difficult economic environment combined with the pandemic.

Development by business segments 


                        Upper       Lower    CMF and Total 
                     Extremities Extremities Others 
Sales, CHFm 
2020                    89.2        18.8      16.6   124.7 
2019                    92.6        18.3      19.2   130.1 
Growth, % 
in CHF                   -4%         +3%      -13%     -4% 
in local currencies      +1%         +8%       -8%     +1%

Unplanned operations in trauma remained unrestricted in 2020, case numbers nonetheless declined due to mobility restrictions for large segments of the population - for example, fewer sports-related accidents were recorded. Although the postponement of elective procedures due to lockdown measures to contain the coronavirus pandemic negatively impacted sales, particularly in April and May, the negative effect was less pronounced than initially expected over the whole year, despite renewed lockdowns towards the end of the year.

The largest segment, Upper Extremities, which has the highest proportion of trauma cases, achieved 8% growth in the second half of 2020, compared to a 5% decline in sales in the first half in local currencies (full year 2020: +1% in local currencies). Growth momentum was achieved in the largest area, wrist. In elbow, double-digit growth for the full year was reported despite Covid-19, thanks to a training and sales initiative. As planned, Medartis introduced the wrist spanning plates, initially developed for the US market, in Europe and APAC in June. It launched a forearm fracture system, also in June, and a clavicle system in September. Thanks also to good preparation during the initial lockdown phase, the planned sales of these newly launched products were significantly exceeded. With these additions, Medartis has further complemented its plates and screws portfolio in the upper extremities.

Lower Extremities, the newest business segment with the strongest growth potential for Medartis and with a higher proportion of elective procedures, recorded growth of 21% in the second half of the year after a decline in growth of 4% in local currencies in the first half (full year 2020: +8% in local currencies). The addition to the cannulated compression screw portfolio, developed in a period of five months, was launched in June as planned and reached expected sales in the second half of the year. However, due to the lack of elective cases, it was decided to postpone the launch of the two systems for midfoot and hindfoot corrections and fractures of the lower tibia and fibula until the first half of 2021.

The CMF and Others segment, which comprises solutions for the craniomaxillofacial region as well as instruments and containers, was most affected by the impact of the coronavirus pandemic. Sales growth in the second half of the year was 3%, following an 19% decline in local currencies in the first half (full year: -8% in local currencies). The shift in elective procedures had the most significant impact on sales in CMF because of its high proportion thereof; for the full year, sales for elective procedures were down by around a quarter compared to the previous year. In April, the new MODUS 2 product generation was launched in DACH as planned. In addition, the CMX digital planning and 3D printing platform for mandibular correction and fixation was introduced, and the first cases with patient-specific cutting guides and plates were performed in Germany and Switzerland.

Substantial progress made in growth initiatives In 2020, Medartis made substantial progress in implementing the program initiated in early 2020 to accelerate growth with the priorities of sales focus on regional needs, building the US business and advancing the innovation pipeline.

In the US business, important cornerstones for the further acceleration of growth were implemented in 2020. An experienced management team has been established, led by Lisa Thompson, a member of Medartis' Executive Management Board and President of North America since April 2020. Also in the US market, the reallocation of regional sales territories to leverage more sales potential has been completed, and a new growth-oriented incentive system is being implemented.

Medartis demonstrated its innovative strength last year with the launch of five different innovative product systems. This further complemented the Medartis portfolio for plates and screws in the upper and lower extremities as well as in CMF. In order to exploit further market potential in the underserved market of small joint replacement in upper extremities, Medartis has acquired a minority share position in KeriMedical, a specialist for innovative implant solutions in the hand and wrist segment. KeriMedical has developed new standards in patient treatment, particularly in the treatment of osteoarthritis of the hand, which affects around 60 million people in Europe and the US. With KeriMedical's complementary offering, Medartis provides physicians with a comprehensive product portfolio in the hand and wrist segment, improving competitiveness and growth potential, particularly in the US.

Clear strategic direction Medartis further refined its strategic direction in 2020 to support surgeons as a provider of complete solutions in the areas of extremities and head and to further accelerate growth. With this goal, Medartis is pursuing a growth strategy based on three pillars: . Comprehensive product portfolio: The focus lies on the further completion of the plates and screws portfolio,

aligned to regional needs, as well as the selective entry into new technologies such as small joint replacement and

soft tissue management. The aim is to offer surgeons a comprehensive implant portfolio that covers all of their

indication needs. . Solutions provider: With the launch of our CMX platform, Medartis has entered the market for digital surgical

planning, and patient-specific implants and instruments. Complementing the implants portfolio, Medartis will drive

the expansion of the CMX platform and other individualized solutions and services to improve patient outcomes,

shorten surgery time and reduce inventory. . Geographical expansion: The top priority continues to be US market penetration and expansion. The focus also

remains on consistently gaining market share in our key markets in Europe and APAC, and we will selectively expand

our global footprint in distributors' markets. In the medium term, new direct markets such as Spain are also

expected to contribute to growth.

Outlook In the long term, Medartis sees no structural impact from the pandemic on market potential. In the first two months in 2021, Medartis experienced a positive sales momentum in line with expectations. For the full year 2021, Medartis targets a sales growth of at least 15% in local currencies and stable EBITDA margins - subject to any unforeseen events, specifically from Covid-19.

Change of Chairman of the Board of Directors Dr. h.c. Thomas Straumann, who founded Medartis in 1997, has decided to hand over the leadership of the Board of Directors after having served as its Chairman for 23 years. The Board of Directors of Medartis will therefore propose Marco Gadola, Member of the Board of Directors since 2020, for election as Chairman of the Board of Directors at the Annual General Meeting on 23 April 2021. Dr. h.c. Thomas Straumann will remain committed to Medartis and will stand for re-election as a member of the Board of Directors, where he will assume the role of Vice Chairman. Dr. h.c. Thomas Straumann, Chairman of the Board of Directors of Medartis: "I have always considered it a great privilege to lead Medartis on its growth path as Founder and Chairman, and I would like to thank you for the trust you have placed in me. Today - 23 years after its foundation and three years after our IPO in 2018 - Medartis has a very solid foundation that it can build on to realize further market opportunities. This is the right time for me to hand over the chairmanship. Marco Gadola has proven expertise in the international medical devices market, strong

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