Slide 1: Third-Quarter 2017 Earnings Performance
Third-Quarter 2017 Earnings Performance November 2, 2017
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation, other than purely historical information, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as ame
Slide 3: Agenda
Agenda Highlights Financial Results 2017 Guidance Summary 3
Slide 4: Highlights
Highlights
Slide 5: Third Quarter 2017 Highlights
Third Quarter 2017 Highlights Continuing progress throughout the quarter u Neuromodulation: – Received U.S. FDA approval for our latest VNS Therapy® System – Includes the SenTiva generator, a wireless wand and a new user TM interface/tablet – SenTiva is the smallest and lightest responsive therapy f
Slide 6: Recent Highlights: Advancing our Strategic Objectives
Recent Highlights: Advancing our Strategic Objectives u Cardiac Rhythm Management (CRM): – Announced decision to explore strategic options for our CRM business; preference is to find a buyer – Strong regional player with attractive assets, a robust pipeline and growth potential – Hired Barclays as t
Slide 7: Financial Results
Financial Results
Slide 8: 3Q17 At a Glance: Continued Growth in the Quarter
3Q17 At a Glance: Continued Growth in the Quarter Net Sales ($M) Adjusted Gross Adjusted Operating Adjusted EPS* Increased 3.1% on a constant-currency basis Margin* Margin* $309.7 $0.93 $295.3 65.6% 64.5% $0.78 19.5% 18.7% 3Q16 3Q17 3Q16 3Q17 3Q16 3Q17 3Q16 3Q17 * Adjusted gross margin, operating ma
Slide 9: 3Q17 Net Sales
3Q17 Net Sales 3Q17 drivers/impacts Net Sales ($M) Neuromodulation: $295* 3.1% $310* + Continued new patient implants of AspireSR® Percentage change on a constant- - Impact from recent hurricanes currency basis - Broad patient deferrals in anticipation of the launch of our newest VNS Therapy® System
Slide 10: 3Q17 Key Adjusted Financial Results
3Q17 Key Adjusted Financial Results* Y-O-Y % of 3Q17 Performance Net Sales Gross margin $203.1M 6.7% 65.6% SG&A $113.3M 8.9% 36.6% R&D $29.4M (5.8%) 9.5% Operating income $60.3M 9.2% 19.5% Net income $45.1M 17.8% 14.6% * All financial measures are adjusted non-GAAP measures. Non-GAAP measures are re
Slide 11: 3Q17 Adjusted EPS
3Q17 Adjusted EPS* Reconciliation of Adjusted EPS to GAAP EPS $0.93 ($0.04) ($0.01) $0.06 $0.57 ($0.23) ($0.02) ($0.02) ($0.02) ($0.07) Adj. Merger and Restructuring Depreciation Product Caisson Other Equity Certain tax GAAP Diluted integration expense & amortization remediation acquisition income/e
Slide 12: 2017 Guidance
2017 Guidance 12
Slide 13: Full-year 2017 Guidance
Full-year 2017 Guidance Revised Guidance Previous Guidance at November 2, 2017 at August 9, 2017 Worldwide net sales growth (1) 1% - 3% 1% - 3% Adjusted gross margin (2) Mid-60% Mid-60% Adjusted operating margin (2) High teens High teens Adjusted effective tax rate (2) (3) 22% - 23% 24% - 25% Adjust
Slide 14: Summary
Summary 14
Slide 15: Summary
Summary • Growth accelerated over previous quarters • Every business franchise showed growth in the third quarter • Cardiac Surgery had its strongest quarter since the Company's inception • Received U.S. FDA approval for our newest VNS Therapy System, SenTiva • CRM turned slightly positive for the f
Slide 16: Appendix
Appendix 16
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations U.S. dollars in millions, except per share amounts Income from Three Months Ended September 30, 2017 Sales Gross Profit Operations Net Income Diluted EPS GAAP Financial Measures $309.7 $199.8 $32.1 $27.8 $0.57 Specified Items Merger and integration expenses (A) 2.2 2
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations U.S. dollars in millions, except per share amounts Income from Net Income Three Months Ended September 30, 2016 Sales Gross Profit Operations (Loss) Diluted EPS GAAP Financial Measures $295.3 $188.1 $23.0 ($1.6) ($0.03) Specified Items Merger and integration expenses
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations The preceding tables reconcile the most comparable U.S. Generally Accepted Accounting Principles (GAAP) measures to the non-GAAP financial and operating measures presented in LivaNova’s third-quarter 2017 press release and during the conference call held in conjuncti
Slide 20: www.livanova.com
www.livanova.com www.livanova.com