Slide 1: Third Quarter 2019 Earnings Performance
Third Quarter 2019 Earnings Performance
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 (Pulse Duo®
Slide 4: Agenda
Agenda 3Q19 Highlights Financial Results Guidance Summary 4
Slide 5: 3Q19 Highlights
3Q19 Highlights
Slide 6: 3Q19 Highlights
3Q19 Highlights Meaningful innovation and execution to deliver results Neuromodulation: Epilepsy – In October, Neurology published a new study that suggests that chronic epilepsy may be associated with key measures of sudden cardiac death risk. The paper compares the cardiac impact of the disease am
Slide 7: Financial Results
Financial Results
Slide 8: 3Q19 Financial Summary
3Q19 Financial Summary 3Q18 3Q19 70.1% 68.2% $272.1 $268.6 17.3% 17.8% $0.84 37.1% 37.8% $0.78 13.9% 14.4% 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 ope
Slide 9: 3Q19 Net Sales
3Q19 Net Sales Vagus Nerve Stimulation Therapy $269M 77% Cardiopulmonary (CP) (VNS Therapy) 0.00% decrease* Heart-lung machines (HLM) Oxygenators Drug-Resistant Epilepsy (DRE) Autotransfusion systems (ATS) Treatment-Resistant Depression (TRD) Cannulae Heart Failure (HF) Hypoglossal Nerve Stimulation
Slide 10: 3Q19 Cardiovascular Sales
Heart Valves 3Q19 Cardiovascular Sales Cardiopulmonary Advanced Circulatory Support Net Sales ($M)* Drivers/Impacts (4.9%) $166.6 $155.4 + Mid-single digit oxygenator growth driven by Rest of 6.1 7.6% World and Europe, offset by $8M impact of exiting a 6.5 32.5 (9.1%) low-margin distribution agreeme
Slide 11: 3Q19 Neuromodulation Sales
3Q19 Neuromodulation Sales Net Sales ($M)* Drivers/Impacts 7.8% $112.5 + Growth in all regions led by double-digit growth in $104.9 Europe and Rest of World + U.S. performance returned to growth, primarily due to the stabilization of the sales force + Rest of World had greater than 65% growth driven
Slide 12: 3Q19 Adjusted EPS from Continuing Operations
3Q19 Adjusted EPS from Continuing Operations* Reconciliation of GAAP EPS to Adjusted EPS $0.13 $0.04 $0.18 ($0.01) $0.04 $0.84 $0.11 $0.01 ($0.09) $0.66 ($0.24) GAAP Merger Restructuring Depreciation Product Acquisition Non-recurring Stock-based Certain Certain Adjusted Financial and Expenses and Re
Slide 13: 2019 Guidance
2019 Guidance 13
Slide 14: 2019 Guidance from Continuing Operations
2019 Guidance from Continuing Operations Including impact of TRD investment and Canadian distribution agreement exit Guidance as of May 1, 2019 Guidance as of October 30, 2019 Worldwide net sales growth (1) 1% - 3% 1% - 3% Gross profit percent (1) 68.5% - 69.5% 68.5% - 69.5% R&D (1) 13.5% - 14.0% 13
Slide 15: Summary
Summary 15
Slide 16: 3Q19 Summary
3Q19 Summary • Neuromodulation grew in all regions, including another quarter of double- FINANCIAL digit growth in Rest of World and Europe GROWTH • 190 basis points gross margin improvement due to favorable mix, price and foreign exchange • Continued progression in our clinical and commercial capab
Slide 17: Appendix
Appendix 17
Slide 18: Net Sales - Comparison of Actual Results to Constant Currency
Net Sales - Comparison of Actual Results to Constant Currency - Unaudited $ in millions Three months ended Constant- September 30, % Change Currency Business / Product Line: 2019 2018 % Change Cardiopulmonary $120.0 $127.9 (6.2%) (4.5%) Heart Valves 28.9 32.5 (11.3%) (9.1%) Advanced Circulatory Supp
Slide 19: 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 Legal, Contingent Merger and Depreciation and Product Consideration Stock-based Integration Restructuring
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 Depreciation Non-recurring Merger and and Product Legal and Stock-based Integration Restructuring Amortization Remediati
Slide 21: 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 2019 press release and during the conference call held in conjuncti
Slide 22: www.livanova.com
LivaNova Health innovation that matters WSS BEARSQOXXXSQS . BAALAVSOVrse BRANNAN BRRNLALLYYEOSS BZ BBWBVI~7~oeeeree mBBBWRWWAVYYL OLE. @ BBWRNSWANVAOE™ ee @BWRWNWWANYL OOS eee SSW WN WOO ae ee . SAAN RR SAAN SSW RNR RRS al sSNA NN NS a wa / / J/ analytic www.livanova.com