Guarantor and Non-Guarantor Financial Statements.

Each of Biomet’s existing wholly owned domestic subsidiaries fully, unconditionally, jointly, and severally guarantee the senior notes on a senior unsecured basis and the senior subordinated notes on a senior subordinated unsecured basis, in each case to the extent such subsidiaries guarantee Biomet’s senior secured cash flow facilities. LVB is neither an issuer nor guarantor of the notes described in Note 7.

The following financial information presents the composition of the combined guarantor subsidiaries:

CONDENSED CONSOLIDATING BALANCE SHEETS



	November 30, 2014
(in millions)	Biomet, Inc.		Guarantors		Non-Guarantors		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	—	$	88.1	$	188.4	$	—		$	276.5
Accounts receivable, net	—		290.3		275.0		—			565.3
Inventories, net	—		404.9		316.8		—			721.7
Deferred income taxes	—		118.2		28.8		—			147.0
Prepaid expenses and other	—		135.9		51.8		—			187.7
Total current assets	—		1,037.4		860.8		—			1,898.2
Property, plant and equipment, net	—		430.8		289.2		—			720.0
Investments	—		12.9		0.6		—			13.5
Investment in subsidiaries	7,799.2		—		—		(7,799.2		)	—
Intangible assets, net	—		2,610.8		607.8		—			3,218.6
Goodwill	—		3,143.5		433.6		—			3,577.1
Other assets	—		119.9		10.8		—			130.7
Total assets	$	7,799.2	$	7,355.3	$	2,202.8	$	(7,799.2	)	$	9,558.1
Liabilities & Shareholder’s Equity
Current liabilities:
Current portion of long-term debt	$	132.8	$	—	$	—	$	—		$	132.8
Accounts payable	—		60.5		41.6		—			102.1
Accrued interest	50.6		—		0.1		—			50.7
Accrued wages and commissions	—		67.3		56.1		—			123.4
Other accrued expenses	—		282.7		70.9		—			353.6
Total current liabilities	183.4		410.5		168.7		—			762.6
Long-term debt	5,581.9		—		—		—			5,581.9
Deferred income taxes	—		765.9		154.4		—			920.3
Other long-term liabilities	—		172.8		86.6		—			259.4
Total liabilities	5,765.3		1,349.2		409.7		—			7,524.2
Shareholder’s equity	2,033.9		6,006.1		1,793.1		(7,799.2		)	2,033.9
Total liabilities and shareholder’s equity	$	7,799.2	$	7,355.3	$	2,202.8	$	(7,799.2	)	$	9,558.1



	May 31, 2014
(in millions)	Biomet, Inc.		Guarantors		Non-Guarantors		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	—	$	101.8	$	145.8	$	—		$	247.6
Accounts receivable, net	—		284.6		292.7		—			577.3
Inventories	—		374.3		319.1		—			693.4
Deferred income taxes	—		117.9		32.0		—			149.9
Prepaid expenses and other	—		128.0		74.9		—			202.9
Total current assets	—		1,006.6		864.5		—			1,871.1
Property, plant and equipment, net	—		412.4		303.6		—			716.0
Investments	—		11.9		0.6		—			12.5
Investment in subsidiaries	7,882.9		—		—		(7,882.9		)	—
Intangible assets, net	—		2,740.1		699.5		—			3,439.6
Goodwill	—		3,146.7		487.7		—			3,634.4
Other assets	—		81.5		11.5		—			93.0
Total assets	$	7,882.9	$	7,399.2	$	2,367.4	$	(7,882.9	)	$	9,766.6
Liabilities & Shareholder’s Equity
Current liabilities:
Current portion of long-term debt	$	133.1	$	—	$	—	$	—		$	133.1
Accounts payable	—		86.9		48.4		—			135.3
Accrued interest	53.3		—		0.1		—			53.4
Accrued wages and commissions	—		90.0		78.7		—			168.7
Other accrued expenses	—		259.4		95.3		—			354.7
Total current liabilities	186.4		436.3		222.5		—			845.2
Long-term debt	5,587.3		—		—		—			5,587.3
Deferred income taxes	—		811.3		157.3		—			968.6
Other long-term liabilities	—		170.8		85.5		—			256.3
Total liabilities	5,773.7		1,418.4		465.3		—			7,657.4
Shareholder’s equity	2,109.2		5,980.8		1,902.1		(7,882.9		)	2,109.2
Total liabilities and shareholder’s equity	$	7,882.9	$	7,399.2	$	2,367.4	$	(7,882.9	)	$	9,766.6

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)



	Three Months Ended November 30, 2014
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations			Total
Net sales	$	—		$	532.5		$	311.1		$	—		$	843.6
Cost of sales	—			158.5			25.3			—			183.8
Gross profit	—			374.0			285.8			—			659.8
Selling, general and administrative expense	—			238.5			129.2			—			367.7
Research and development expense	—			32.0			10.9			—			42.9
Amortization	—			60.6			19.0			—			79.6
Operating income	—			42.9			126.7			—			169.6
Interest expense	78.5			—			—			—			78.5
Other (income) expense	—			5.9			(8.0		)	—			(2.1		)
Income (loss) before income taxes	(78.5		)	37.0			134.7			—			93.2
Tax expense (benefit)	(29.8		)	14.0			19.2			—			3.4
Equity in earnings of subsidiaries	138.5			—			—			(138.5		)	—
Net income (loss)	$	89.8		$	23.0		$	115.5		$	(138.5	)	$	89.8
Other comprehensive income (loss)	$	(136.1	)	$	—		$	(135.7	)	$	135.7		$	(136.1	)
Total comprehensive income (loss)	$	(46.3	)	$	23.0		$	(20.2	)	$	(2.8	)	$	(46.3	)


	Three Months Ended November 30, 2013
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations			Total
Net sales	$	—		$	510.6		$	315.1		$	—		$	825.7
Cost of sales	—			221.5			33.6			—			255.1
Gross profit	—			289.1			281.5			—			570.6
Selling, general and administrative expense	—			209.6			130.8			—			340.4
Research and development expense	—			30.3			11.1			—			41.4
Amortization	—			61.8			13.4			—			75.2
Operating income (loss)	—			(12.6		)	126.2			—			113.6
Interest expense	106.1			—			(0.4		)	—			105.7
Other (income) expense	4.8			(1.2		)	0.1			—			3.7
Income (loss) before income taxes	(110.9		)	(11.4		)	126.5			—			4.2
Tax expense (benefit)	(42.1		)	(4.3		)	45.7			—			(0.7		)
Equity in earnings of subsidiaries	73.7			—			—			(73.7		)	—
Net income (loss)	$	4.9		$	(7.1	)	$	80.8		$	(73.7	)	$	4.9
Other comprehensive income (loss)	$	8.8		$	—		$	28.3		$	—		$	37.1
Total comprehensive income (loss)	$	13.7		$	(7.1	)	$	109.1		$	(73.7	)	$	42.0



	Six Months Ended November 30, 2014
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations			Total
Net sales	$	—		$	1,041.3		$	577.1		$	—		$	1,618.4
Cost of sales	—			364.7			35.0			—			399.7
Gross profit	—			676.6			542.1			—			1,218.7
Selling, general and administrative expense	—			469.7			259.7			—			729.4
Research and development expense	—			63.4			22.3			—			85.7
Amortization	—			116.1			35.4			—			151.5
Operating income	—			27.4			224.7			—			252.1
Interest expense	158.6			—			—			—			158.6
Other (income) expense	—			11.1			(17.4		)	—			(6.3		)
Income (loss) before income taxes	(158.6		)	16.3			242.1			—			99.8
Tax expense (benefit)	(60.3		)	6.1			56.9			—			2.7
Equity in earnings of subsidiaries	195.4			—			—			(195.4		)	—
Net income (loss)	$	97.1		$	10.2		$	185.2		$	(195.4	)	$	97.1
Other comprehensive income (loss)	$	(180.3	)	$	0.1		$	(183.6	)	$	183.5		$	(180.3	)
Total comprehensive income (loss)	$	(83.2	)	$	10.3		$	1.6		$	(11.9	)	$	(83.2	)


	Six Months Ended November 30, 2013
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations			Total
Net sales	$	—		$	992.0		$	564.4		$	—		$	1,556.4
Cost of sales	—			402.2			60.9			—			463.1
Gross profit	—			589.8			503.5			—			1,093.3
Selling, general and administrative expense	—			403.5			250.2			—			653.7
Research and development expense	—			58.2			20.7			—			78.9
Amortization	—			123.1			27.6			—			150.7
Operating income (loss)	—			5.0			205.0			—			210.0
Interest expense	193.1			—			0.2			—			193.3
Other (income) expense	4.8			(3.5		)	4.6			—			5.9
Income (loss) before income taxes	(197.9		)	8.5			200.2			—			10.8
Tax expense (benefit)	(75.2		)	3.3			46.7			—			(25.2		)
Equity in earnings of subsidiaries	158.7			—			—			(158.7		)	—
Net income (loss)	$	36.0		$	5.2		$	153.5		$	(158.7	)	$	36.0
Other comprehensive income (loss)	$	22.3		$	—		$	33.0		$	—		$	55.3
Total comprehensive income (loss)	$	58.3		$	5.2		$	186.5		$	(158.7	)	$	91.3

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOW



	Six Months Ended November 30, 2014
(in millions)	Biomet, Inc.			Guarantor			Non-Guarantors			Eliminations		Total
Cash flows provided by (used in) operating activities	$	3.0		$	60.9		$	98.8		$	—	$	162.7
Proceeds from sales/maturities of investments	—			—			15.2			—		15.2
Purchases of investments	—			—			(16.3		)	—		(16.3		)
Capital expenditures	—			(74.3		)	(57.8		)	—		(132.1		)
Other	—			(0.6		)	—			—		(0.6		)
Cash flows provided by (used in) investing activities	—			(74.9		)	(58.9		)	—		(133.8		)
Proceeds under revolvers	205.0			—			—			—		205.0
Payments under revolver	(20.0		)	—			—			—		(20.0		)
Retirement of term loans	(180.0		)	—			—			—		(180.0		)
Other	(8.0		)	0.3			—			—		(7.7		)
Cash flows provided by (used in) financing activities	(3.0		)	0.3			—			—		(2.7		)
Effect of exchange rate changes on cash	—			—			2.7			—		2.7
Increase (decrease) in cash and cash equivalents	—			(13.7		)	42.6			—		28.9
Cash and cash equivalents, beginning of period	—			101.8			145.8			—		247.6
Cash and cash equivalents, end of period	$	—		$	88.1		$	188.4		$	—	$	276.5

	Six Months Ended November 30, 2013
(in millions)	Biomet, Inc.			Guarantor			Non-Guarantors			Eliminations		Total
Cash flows provided by (used in) operating activities	$	96.5		$	278.5		$	(204.1	)	$	—	$	170.9
Proceeds from sales/maturities of investments	—			19.0			—					19.0
Purchases of investments	—			(19.6		)	—					(19.6		)
Capital expenditures	—			(53.9		)	(44.6		)	—		(98.5		)
Acquisitions, net of cash acquired - 2013 Spine Acquisition	—			(148.8		)	—			—		(148.8		)
Other	—			(0.8		)	0.1			—		(0.7		)
Cash flows provided by (used in) investing activities	—			(204.1		)	(44.5		)	—		(248.6		)
Payments under senior secured credit facilities	(14.9		)	—			—			—		(14.9		)
Proceeds under revolvers	155.0			—			4.3			—		159.3
Proceeds from senior notes due 2020 and term loans	870.5			—			—			—		870.5
Retirement of term loans	(1,091.6		)	—			—			—		(1,091.6		)
Payment of fees related to refinancing activities	(15.5		)	—			—			—		(15.5		)
Other	—			0.3			(9.3		)	—		(9.0		)
Cash flows provided by (used in) financing activities	(96.5		)	0.3			(5.0		)	—		(101.2		)
Effect of exchange rate changes on cash	—			—			(0.5		)	—		(0.5		)
Decrease in cash and cash equivalents	—			74.7			(254.1		)	—		(179.4		)
Cash and cash equivalents, beginning of period	—			35.3			320.3			—		355.6
Cash and cash equivalents, end of period	$	—		$	110.0		$	66.2		$	—	$	176.2