Inogen, Inc · NASDAQ:INGN
Inogen — Investor Presentation (January 2018)
23 slides from Inogen's investor presentation, Jan 8, 2018
Slide 1: Company Overview January 2018
Company Overview January 2018 Exhibit 99.1
Slide 2: Notice regarding forward-looking statements
Notice regarding forward-looking statements These slides and the accompanying oral presentation (the “Presentation”) include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on current expectations, estimates and projections based
Slide 3: Inogen POC offers freedom and mobility
Inogen POC offers freedom and mobility Stationary oxygen concentrator + Regular oxygen tank delivery Delivery Model Inogen Model 2.8 pounds (single battery) Run time up to 5 hours with a double battery A/C adaptable Conforms to all applicable FAA requirements Suitable for overnight use Portable oxyg
Slide 4: Traditional O2 therapy challenged by market dynamics
Traditional O2 therapy challenged by market dynamics Traditional O2 P Inogen Cost effective Maximizes mobility P P O O O Relevance today Large reimbursement cuts implemented July 2013, January 2016, and July 2016 Oxygen delivery has high fixed and variable costs Ambulatory O2 à 2x survival; 60% fewe
Slide 5: Large, growing addressable oxygen market opportunity in beginning stages of POC adoption
Large, growing addressable oxygen market opportunity in beginning stages of POC adoption Large market opportunity & high growth POCs small but fastest-growing segment of the market3 Note 1: Wintergreen Research Report, 2015 Note 2: U.S. Department of Health National Heart, Lung, and Blood Institute
Slide 6: Product performance drives leadership position
Product performance drives leadership position Ultra Light weight POC Light weight POC High capacity POC Inogen One G4® Inogen One G3® I Inogen One G2® Retail Price $2,495+ $2,495+ $2,495+ O2 capacity 630 ml/min 1,050 ml/min 1,260 ml/min Overnight ü ü ü Single Solution ü ü ü User Replaceable Batteri
Slide 7: Building the Inogen brand
Building the Inogen brand Targeted advertising Consumer preference Domestic direct-to-consumer sales ($M) Domestic business-to-business sales ($M) +35.2% POP +40.2% YOY +47.8% POP +64.4% YOY ($M) Founded in patient preference
Slide 8: B2B sales & distribution diversifies revenue
B2B sales & distribution diversifies revenue Sales in 46 countries Growing worldwide demand 2016 Revenue: $202.8M Q1-Q3 2017 Revenue: $185.7M Medicare 7.3% Europe 19.9% Medicare 12.4% Europe 22.1%
Slide 9: Track record of growth
Track record of growth Revenue ($M) CAGR: 44.8% *2017 estimated revenue of $246M based on the midpoint of guidance provided in the Company’s press release dated November 7, 2017 of $244M - $248M. 2018 estimated revenue of $300M based on the midpoint of guidance provided in the Company’s press releas
Slide 10: Growth with strong margins
Growth with strong margins Gross profit ($M) Gross Margin % +27.6% YOY
Slide 11: Growth with strong profits
Growth with strong profits Reconciliation of these non-GAAP measures to GAAP net income is provided in the appendix of this presentation. For future periods, we are unable to provide a reconciliation of these non-GAAP financial measures without unreasonable effort due to the inherent uncertainty and
Slide 12: Balance sheet overview
Balance sheet overview [Insert object title] Summary as of September 30, 2017 Cash, cash equivalents & marketable securities on hand $163.1M Debt $0.0M No additional capital requirements to meet plan* Positive Cash Flow* Maximizes flexibility* 2017 & 2018 Expectations *2017 and 2018 expectations are
Slide 13: Multiple avenues to drive future growth
Multiple avenues to drive future growth Expansion of direct-to-consumer network Increase domestic B2B adoption Increase international B2B adoption 263 inside sales reps* 19 outside physician sales & support team members* New Cleveland area facility – expect to add 240 employees over the next 3 years
Slide 14: Company highlights
Company highlights Market leader in large, growing, underpenetrated market DTC model enables innovation and customer access Differentiated product portfolio with commitment to R&D Seasoned management team with proven track record Attractive financial profile
Slide 15: Proprietary and
Proprietary and Confidential
Slide 16: Supplemental Information January 2018
Supplemental Information January 2018
Slide 17: Significant Intellectual Property
Significant Intellectual Property 31 U.S. patents & 1 Canadian patent issued System design and assembly Control algorithms Advanced technologies Sieve bed life prediction 7 pending U.S. patents User replaceable sieve bed designs POC design elements Product differentiation Long-term protection of exi
Slide 18: Average non-delivery ambulatory monthly rates
Average non-delivery ambulatory monthly rates $233 $136 $134 2016 rental revenue declined 23.6% compared to 2015 and Q1-Q3 2017 declined 29.9% compared to the same period in the prior year Track record of total revenue (sales + rentals) growth despite reimbursement cuts We believe lower reimbursemen
Slide 19: Inogen At Home: continuous innovation to stay at the forefront of customer preference
Inogen At Home Continuous innovation to stay at the forefront of customer preference Oct-04 Release Inogen One Inogen One G2 Inogen One G3 Sep-12 Release 32% lighter than G2 Nov-13 Update Oct-14 Release Dec-15 Update Pipeline Customer Preference Low Service Cost Low Cost to Own Jun-06 Update Apr-09
Slide 20: Key regulatory approvals and high standards of compliance
510(k) clearance by the FDA FDA registered manufacturing facilities Conforms to all applicable FAA requirements for use on commercial aircraft Quality Management System certified to comply with ISO 13485 for the design, development, manufacture, distribution and service of oxygen concentrators and a
Slide 21: A proven team built for success
A proven team built for success Ali Bauerlein Chief Financial Officer, Executive Vice President, Finance, Corporate Secretary & Corporate Treasurer Scott Wilkinson President, Chief Executive Officer, BOD Member Co-founder of Inogen has raised over $91 million in VC funding Has successfully facilitat
Slide 22: Outlook for 2017 & 2018
Outlook for 2017 & 2018 Previous 2017¹ Low % Growth² High Revenue $239M 18.8% $243M Adj. EBITDA $48M 12.9% $50M Net Income $25M 26.7% $27M Initial 2018 Low % Growth² High Revenue $295M 22.0% $305M Adj. EBITDA $60M 24.0% $64M Net Income $31M 26.9% $35M ²Growth percentage calculated at the midpoint of
Slide 23: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation Year Ended December 31, Nine Months Ended September 30, (In Thousands) 2016 2015 2017 2016 Net Income (U.S. GAAP): $20,519 $11,585 $21,608 $15,259 Non-GAAP adjustments: Interest income (196) (102) (468) (126) Interest expense 6 22 -- 6 Provision for income