Slide 1: LivaNova - Health innovation that matters
LivaNova Health innovation that matters =n" Andre; VNS Thetapy® Patient
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: Intellectual Property
Intellectual Property This report may contain references to our proprietary intellectual property, including among others: ® ® Trademarks for our Neuromodulation systems the VNS Therapy System, the VITARIA System and our proprietary pulse generator ® ® ® ® ® products: Model 102 (Pulse ), Model 102R
Slide 4: Agenda
Agenda Strategic Update 3Q 2020 Financial Results Guidance Summary 4
Slide 5: Strategic Update
Strategic Update
Slide 6: Positioning LivaNova to Realize its Full Value
Positioning LivaNova to Realize its Full Value Consistently deliver growth, pipeline and profitability Core Growth Focus on portfolio optimization to support leadership positions in underserved markets • Expand the go-to market initiative for U.S. Epilepsy • Forecast at least 30% ACS growth in 2020
Slide 7: Financial Results
Financial Results
Slide 8: 3Q 2020 Financial Summary
3Q 2020 Financial Summary 3Q19 3Q20 70.1% $268.6 66.5% $240.1 14.4% 14.9% 37.8% 38.2% 17.8% 13.4% $0.84 $0.38 Net sales Adjusted gross Adjusted SG&A* Adjusted R&D* Adjusted operating Adjusted diluted profit percent* margin* EPS* * Adjusted gross profit percent, adjusted SG&A, adjusted R&D, adjusted
Slide 9: 3Q 2020 Net Sales
3Q 2020 Net Sales Vagus Nerve Stimulation Therapy $240.1M 76% Cardiopulmonary (CP) (VNS Therapy) 11.2% decrease* Heart-lung machines (HLM) Oxygenators Drug-Resistant Epilepsy (DRE) Autotransfusion systems (ATS) Difficult-to-Treat Depression (DTD) Cannulae Heart Failure (HF) Hypoglossal Nerve Stimula
Slide 10: 3Q 2020 Cardiovascular Sales
Heart Valves 3Q 2020 Cardiovascular Sales Cardiopulmonary Advanced Circulatory Support Net Sales ($M)* Drivers/Impacts (10.3%) + Full U.S. commercial release of LifeSPARC in the third $155.4 quarter resulting in 92% growth in the ACS business 6.5 91.9% $ 140.9 28.9 12.5 (26.9%) – HLMs remained chall
Slide 11: 3Q 2020 Neuromodulation Sales
3Q 2020 Neuromodulation Sales Net Sales ($M)* Drivers/Impacts (12.6%) $112.5 + On a global basis, sales improved sequentially over the second quarter $98.4 + U.S. Epilepsy: Both new patient and replacement implants improved sequentially over the second quarter + Sales in Europe returned to 96% of pr
Slide 12: 3Q 2020 Adjusted EPS from Continuing Operations
3Q 2020 Adjusted EPS from Continuing Operations* Reconciliation of GAAP EPS to Adjusted EPS $0.38 $0.15 $0.07 $0.38 $(0.05) $0.20 $0.02 $0.02 $(0.10) $(0.30) $(0.01) GAAP Merger Restructuring Depreciation and Product Financing Non-recurring Stock-based Certain Tax Certain Interest Adjusted Financial
Slide 13: 2020 Guidance
2020 Guidance 13
Slide 14: 2020 Guidance
2020 Guidance Guidance as of Guidance as of Guidance as of Guidance as of February 26, 2020 April 29, 2020 July 29, 2020 October 29, 2020 (1) Worldwide net sales growth 3% - 5% (17%) - (7%) (17%) - (7%) (17%) - (7%) (1) Gross profit percent 70% - 71% 66% - 68% 65% - 66% 65% - 66% (1) R&D 14% - 15% 1
Slide 15: Summary
Summary 15
Slide 16: 3Q 2020 Summary
3Q 2020 Summary • 11% sales decline related to COVID-19 - all segments improved over the second quarter, with the strongest sales in September FINANCIAL • Gross margin decline from mix of lower Neuromodulation sales and unfavorable manufacturing variances related to COVID-19 • Maintained cost contro
Slide 17: Assumptions for 2020
Assumptions for 2020 • COVID-19 to have a pronounced impact on sales for the full year 7%-17% REVENUE • U.S. Epilepsy surgeries expected to see the largest decline in 2Q, improving in 2H Decline • LifeSPARC commercialization expected to deliver at least 30% ACS growth in 2020 • Gross margin expected
Slide 18: Appendix
Appendix 18
Slide 19: Net Sales - Comparison of Actual Results to Constant Currency
Net Sales - Comparison of Actual Results to Constant Currency - Unaudited $ in millions Constant- Three Months Ended September 30, % Change Currency Business / Product Line: 2020 2019 % Change Cardiopulmonary $107.2 $120.0 (10.7%) (11.9%) Heart Valves 21.1 28.9 (26.8%) (26.9%) Advanced Circulatory S
Slide 20: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions, except per share amounts) Specified Items Non-recurring Merger and Depreciation and Product Legal and Stock-based Certain GAAP Integration Restructuring Amortizat
Slide 21: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions, except per share amounts) Specified Items Non-recurring Merger and Depreciation and Product Legal, Contingent Stock-based GAAP Integration Restructuring Amortizat
Slide 22: 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 2020 press release and during the conference call held in conjuncti
Slide 23: www.livanova.com
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