Invacare — Investor Presentation (September 2021)
32 slides from Invacare's investor presentation, Sep 9, 2021
Slide 1: Investor Presentation
I N VA C A R E C O R P O R AT I O N Investor Presentation (NYSE: IVC) September 9, 2021
Slide 2: Forward Looking Statements
I N VA C A R E C O R P O R AT I O N Forward Looking Statements This presentation contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that describe future outcomes or expec
Slide 3: Making Life's Experiences Possible
I N VA C A R E C O R P O R AT I O N Making Life’s Experiences Possible
Slide 4: About Us / What We Do
I N VA C A R E C O R P O R AT I O N ABOUT US WHAT WE DO Headquartered in Elyria, OH (outside of Cleveland), Invacare is a leading manufacturer and distributor in its Invacare is proudly celebrating over 40 years of providing markets for medical equipment used in non-acute care clinically complex med
Slide 5: Solutions Across The Continuum Of Care
Solutions Across The Continuum Of Care Providing essential clinical solutions for broad range of conditions I N VA C A R E C O R P O R AT I O N Solution Areas (24-Hours of Care) Move Rest Breathe Hygiene Custom power and manual Home care and long-term care Respiratory therapy products Safe patient h
Slide 6: Reported Net Sales: Broad Product Line with High Clinical Value
Reported Net Sales * Broad Product Line with High Clinical Value I N VA C A R E C O R P O R AT I O N $450 $403 $858 $400 Million* Lifestyle $350 $324 Globally focused on home healthcare and post-acute care, including aids for daily living, walking aids, lifts, wheelchairs, $300 beds and surfaces (in
Slide 7: Strong Global Presence
I N VA C A R E C O R P O R AT I O N Strong Global Presence $479M* $347M* $32M* Europe (56%)* North America (40%)* Asia Pacific (4%)* Primarily single payor reimbursement Primarily sell to durable medical Primarily target western-based systems which appreciate durable equipment providers, equipment f
Slide 8: Transformation Plan Highlights
I N VA C A R E C O R P O R AT I O N Transformation Plan Highlights Invacare Corporation Presentation – September 9, 2021
Slide 9: Transformation Accomplishments Since 2017
Transformation Accomplishments Since 2017 Area Accomplishment I N VA C A R E C O R P O R AT I O N Quality / Regulatory Developed a culture of quality in all regions Management Diversified and refreshed Board of Directors with 56% less than 5-year tenure Hired CIO to drive modernization of IT systems
Slide 10: Demonstrated Improvement in Financial Performance
I N VA C A R E C O R P O R AT I O N Demonstrated Improvement in Financial Performance % of Net Sales Operating (Loss) Income 29.5% 29.0% 28.8% 29.0% ($18.3) 2018 28.5% 28.2% 28.0% ($10.4) 2019 27.5% 28.0% 27.5% 27.8% 27.0% 2020 2020* $11.3 26.5% 2018 2019 2020 ($20.0) ($15.0) ($10.0) ($5.0) $0.0 $5.
Slide 11: Initiatives Accelerating Our Multi-Year Strategy to Return to Profitability
I N VA C A R E C O R P O R AT I O N Initiatives Accelerating Our Multi-Year Strategy to Return to Profitability Award winning clinical solutions and full product pipeline: ✓ Launched center-wheel, front-wheel and rear-wheel drive standing positioning system with clinical and social benefits of verti
Slide 12: Innovation Pipeline
Innovation Pipeline Rehab (Mobility and Seating) Supporting sales growth with frequent introduction of clinically innovative solutions Post Acute Care (Lifestyle) Respiratory I N VA C A R E C O R P O R AT I O N Jan Ampla bariatric manual chair May Mar Jul Aug SMOOV AVIVA® FX / Clematis Pro AVIVA One
Slide 13: Track Record of Optimization
Track Record of Optimization Aligning footprint with new commercial strategy and sales level I N VA C A R E C O R P O R AT I O N Jun 26 Apr 30 Suzhou, China Atlanta DC manufacturing facility Closure Jan 31 closure announced Kirkland, Ontario manufacturing facility closure; Jan 31 4Q18 Dec Headcount
Slide 14: Business Improvement Highlights
I N VA C A R E C O R P O R AT I O N Business Improvement Highlights We are striving to regain market leadership We have a clear roadmap to further enhance and simplify our operations Key Takeaways We have a strong pipeline of innovative products coming to market Our financial performance is improvin
Slide 15: Financial Performance
I N VA C A R E C O R P O R AT I O N Financial Performance Invacare Corporation Presentation – September 9, 2021
Slide 16: Performance by Segment – Europe
Reported Net Sales PERFORMANCE BY I N VA C A R E C O R P O R AT I O N (in millions) $160 SEGMENT – $140 $5 $4 Europe $5 $4 $5 $120 $5 $8 $4 $5 $5 $3 Segment Highlights $6 $4 $6 $100 $5 56% of total reported net sales on a TTM basis as of $68 $64 $6 $53 $52 06/30/21 $53 $80 $55 $44 Grow profitable sa
Slide 17: Performance by Segment – North America
Reported Net Sales PERFORMANCE BY I N VA C A R E C O R P O R AT I O N (in millions) $120 SEGMENT – North $100 America $0 $0 $0 $0 $0 $0 $0 $25 Segment Highlights $80 $12 $11 $15 $19 $20 $19 $0 40% of total reported net sales on a TTM basis as of $17 6/30/21 and segment returns to profitability $60 $
Slide 18: Performance by Segment – All Other (Asia Pacific)
Reported Net Sales PERFORMANCE BY I N VA C A R E C O R P O R AT I O N (in millions) $12 SEGMENT – All Other $10 $1 (Asia Pacific) $2 $1 $0 $0 $1 $8 Segment Highlights $1 $1 $1 $1 $0 $1 4% of total reported net sales on a TTM basis as of $7 $0 $1 $6 $5 $0 $0 6/30/21 $6 $3 $3 $3 Historically, this seg
Slide 19: Balance Sheet Supports Strategic Growth
Balance Sheet Supports Strategic Growth Cash Total Debt * I N VA C A R E C O R P O R AT I O N Total Debt of $322 million comprised of: Cash of $78 million: - $278 million in convertible debt - Decreased primarily as a result of cash used to fund working - $44 million of other debt including amounts
Slide 20: Financial and Operating Assumptions
Financial and Operating Assumptions Revenue I N VA C A R E C O R P O R AT I O N ❑ Europe expected to recover more slowly than the U.S. due to more stringent public healthcare restrictions related to the pandemic ❑ Mobility & seating impacted by limited access to healthcare facilities, expected to be
Slide 21: 2021 Financial Guidance
2021 Financial Guidance The company anticipates increased customer activity and demand for its products even as I N VA C A R E C O R P O R AT I O N Adjusted EBITDA the pandemic continues to present challenges related to labor, material and freight (in millions) availability. These challenges are mod
Slide 22: Our Products
I N VA C A R E C O R P O R AT I O N Our Products Invacare Corporation Presentation – September 9, 2021
Slide 23: Mobility & Seating – Custom Power and Manual
I N VA C A R E C O R P O R AT I O N Mobility & Seating – Custom Power and Manual MPS Maxx Modular Power AVIVA® FX (U.S.) and Kuschall® Standing System and Mini Maxx AVIVA RX (Europe) Custom Manual ▪ Innovative center-wheel drive ▪ Advanced seating and ▪ Unique hydroforming technology powerchair with
Slide 24: Mobility & Seating – Electromotive Power Add-On Technology
Mobility & Seating – Electromotive Power Add-On Technology Applying power add-on technology to new products, including recreational mobility devices and extension apps I N VA C A R E C O R P O R AT I O N E-Bike Drive Systems Power Handbike Power Assist Power Assist ▪ Dynamic market growth ▪ Electric
Slide 25: Mobility & Seating – Sports and Recreation
I N VA C A R E C O R P O R AT I O N Mobility & Seating – Sports and Recreation Daniel Romanchuk, in a Top End® Eliminator TM NRG Racing Wheelchair Winner (Push rim division): 2018, 2019 New York Marathon 2018, 2019 Chicago Marathon 2019 World Para Athletics world record (5000 meters) 2019 London Mar
Slide 26: Lifestyles – Beds and Safe Patient Handling
Lifestyles – Beds and Safe Patient Handling For home healthcare and long-term care settings I N VA C A R E C O R P O R AT I O N Invacare Corporation Presentation – September 9, 2021
Slide 27: Respiratory – Ambulatory Solutions
I N VA C A R E C O R P O R AT I O N Respiratory – Ambulatory Solutions* HomeFill® Refilling Systems Benefits for Patients ❑ Unlimited refillable oxygen supply ❑ Easy to use and reliable ❑ Quiet, no heat, no vibrating** TM Benefits for Providers Premium Platinum Mobile Features ❑ Longer durability; r
Slide 28: Appendix
I N VA C A R E C O R P O R AT I O N Appendix Invacare Corporation Presentation – September 9, 2021
Slide 29: Highly Engaged and Diversified Board of Directors
Highly Engaged and Diversified Board of Directors Governance, insight and strong industry experience to guide Invacare and represent shareholders’ interests I N VA C A R E C O R P O R AT I O N C. Martin Harris, Petra M.D. Susan H. Julie A. Danielsohn-Weil, Stephanie L. Fehr Diana S. Marc M. Matthew
Slide 30: Experienced Management Team
Experienced Management Team Motivated team with years of international and healthcare industry experience I N VA C A R E C O R P O R AT I O N Executive Management Executive Management Business Leaders Matt Monaghan Anthony LaPlaca Ralf Ledda Chairman, President and Chief SVP, General Counsel, Chief
Slide 31: Convertible Debt Summary
Convertible Debt Summary Terms 2022 2024 Series I 2024 Series II 2026 Total I N VA C A R E C O R P O R AT I O N Par Value (as of Jun 30, 2021) $2.7M $72.9M $73.9M $125.0M $274.4M Maturity date Jun 1, 2022 Nov 15, 2024 Nov 15, 2024 Mar 15, 2026 -- Interest rate 4.50% 5.00% 5.00% 4.25% 4.65% Conversio
Slide 32: Reconciliation of Non-GAAP Performance Metrics to GAAP Financial Measures
Reconciliation of Non-GAAP Performance Metrics to GAAP Financial Measures I N VA C A R E C O R P O R AT I O N (Dollars in millions) 2Q21 2Q20 Non-GAAP Financial Measures Net Loss ($10.7) ($16.6) Income Taxes 1.1 0.7 Loss before Income Taxes (9.6) (15.9) Some of the information in this presentation i