Schedule 1—Condensed Financial Information of Registrant Orthofix International N.V.

Condensed Balance Sheets (unaudited)

(U.S. Dollars in thousands)	December 31, 2014			December 31, 2013
Assets
Current assets:
Cash and cash equivalents	$	5,162		$	1,426
Prepaid expenses and other current assets		270			670
Total current assets		5,432			2,096
Investments in and amounts due from subsidiaries and affiliates		306,105			308,173
Total assets	$	311,537		$	310,269
Liabilities and shareholder’s equity
Current liabilities	$	3,799		$	6,295
Long-term liabilities	8,111			8,111
Shareholder’s equity:
Common stock		1,861			1,810
Additional paid in capital		232,788			216,653
Accumulated earnings		65,360			73,897
Accumulated other comprehensive (loss) income		(382	)		3,503
		299,627			295,863
Total liabilities and shareholder’s equity	$	311,537		$	310,269

See accompanying notes to condensed financial statements.

Condensed Statements of Operations (unaudited)

(U.S. Dollars in thousands)	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012
(Expenses) income:
General and administrative	$	(21,073	)	$	(16,641	)	$	(7,700	)
Equity in earnings of investments in subsidiaries and affiliates		12,540			(12,494	)		50,331
Other, net		(4	)		323			24
(Loss) income before income taxes		(8,537	)		(28,812	)		42,655
Income tax expense		—			—			197
Net (loss) income	$	(8,537	)	$	(28,812	)	$	42,852

See accompanying notes to condensed financial statements.

Condensed Statement of Cash Flows (unaudited)

(U.S. Dollars in thousands)	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012
Net (loss) income	$	(8,537	)	$	(28,812	)	$	42,852
Equity in (loss) earnings of investments in subsidiaries and affiliates		(12,540	)		12,494			(50,331	)
Cash (used in) provided by other operating activities		(5,167	)		468			(6,811	)
Net cash used in operating activities		(26,244	)		(15,850	)		(14,290	)
Cash flows from investing activities:
Distributions and amounts received from subsidiaries		20,723			53,389			12,564
Capital expenditures		—			—			—
Net cash provided by investing activities		20,723			53,389			12,564
Cash flows from financing activities:
Net proceeds from issuance of common stock		10,462			3,450			25,586
Repurchase of treasury shares		—			(39,494	)		—
Contributions to subsidiaries and affiliates		(1,411	)		(7,543	)		(36,921	)
Excess tax benefit on exercise of stock options		206			82			1,020
Net cash provided by (used in) financing activities		9,257			(43,505	)		(10,315	)
Net increase (decrease) in cash and cash equivalents		3,736			(5,966	)		(12,041	)
Cash and cash equivalents at the beginning of the year		1,426			7,392		19,433
Cash and cash equivalents at the end of the year	$	5,162		$	1,426		$	7,392

See accompanying notes to condensed financial statements.

Notes to Condensed Financial Statements (unaudited)

1.	Background and basis of presentation

These condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule 1 of Regulation S-X, as the restricted net assets of Orthofix Holdings, Inc. and its subsidiaries exceed 25% of the consolidated net assets of Orthofix International N.V. and its subsidiaries (the “Company”). This information should be read in conjunction with the Company’s consolidated financial statements included elsewhere in this filing.

2.	Restricted net assets of subsidiaries

Certain of the Company’s subsidiaries have restrictions on their ability to pay dividends or make intercompany loans and advances pursuant to their financing arrangements. The amount of restricted net assets the Company’s subsidiaries held at December 31, 2014 and 2013 was approximately $181.8 million and $168.5 million, respectively. Such restrictions are on net assets of Orthofix Holdings, Inc. and its subsidiaries.

3.	Commitments, contingencies and long-term obligations

For a discussion of the Company’s commitments, contingencies and long term obligations under its senior secured credit facility, see Note 5, Note 7 and Note 15 of the Company’s consolidated financial statements.

4.	Dividends from subsidiaries

Orthofix International N.V. did not receive cash dividends in 2014 or 2013.