Slide 1: Second-Quarter 2017 Earnings Performance
Second-Quarter 2017 Earnings Performance August 9, 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: First Half 2017 Highlights
First Half 2017 Highlights Advancing our Strategic Objectives u Caisson Integration: – Executing integration of Caisson acquisition – Regulatory, clinical & market access working together on clinical approvals – Manufacturing organizations aligned and in process of expanding capacity – Results from
Slide 6: Recent Highlights
Recent Highlights: Advancing our Strategic Objectives u Neuromodulation: – On June 21, 2017, announced U.S. FDA approval for expanded MRI labeling – On August 1, 2017, announced CE Mark for expanded MRI labeling – VNS Therapy® continues to be the only implantable epilepsy device approved by the FDA
Slide 7: Financial Results
Financial Results
Slide 8: 2Q17 At a Glance: Strong Margins and Earnings Growth
2Q17 At a Glance: Strong Margins and Earnings Growth Net Sales ($M) Adjusted Gross Adjusted Operating Adjusted EPS* Increased 1.4% on a constant- currency basis Margin* Margin* $321 $321 66.6% $1.01 65.1% $0.87 21.9% 19.5% 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 * Adjusted gross margin, operating ma
Slide 9: 2Q17 Net Sales
2Q17 Net Sales Net Sales ($M) 2Q17 drivers/impacts $321* 1.4% $321* Percentage change Neuromodulation: on a constant- currency basis + AspireSR continued to perform well 90 8.3% 97 + Maintained strong new patient growth CRM: + Solid demand in Japan for KORA 250 70 (3.6%) 66 + Growth in PLATINIUM CRT
Slide 10: 2Q17 Key Adjusted Financial Results
2Q17 Key Adjusted Financial Results* YOY % of 2Q17 % of 4Q16 Performance Full-year 2016* Net Sales Net Sales Gross margin $214.0M 2.4% 66.6% SG&A $111.9M (3.8%) 34.8% R&D $31.7M 5.7% 9.9% Operating income $70.3M 11.9% 21.9% Net income $48.8M 13.5% 15.2% * All financial measures are adjusted non-GAAP
Slide 11: 2Q17 Adjusted EPS
2Q17 Adjusted EPS* Reconciliation of Adjusted EPS to GAAP EPS $0.62 $1.01 $0.98 ($0.27) $0.04 ($0.06) ($0.04) ($0.01) ($0.08) ($0.22) ($0.02) Adj. Merger and Restructuring Depreciation Product Caisson Highlife Other Equity Certain tax GAAP Diluted integration expense & amortization remediation acqui
Slide 12: 2017 Guidance
2017 Guidance 12
Slide 13: Reiterating Full-year 2017 Guidance
Reiterating Full-year 2017 Guidance Guidance Worldwide net sales growth (1) 1% - 3% Adjusted gross margin (2) Mid-60% Adjusted operating margin (2) High teens Adjusted effective tax rate (2) (3) 24% - 25% Adjusted diluted EPS (2) $3.10 - $3.30 Diluted weighted average shares ~49M Cash flow from oper
Slide 14: Summary
Summary 14
Slide 15: Summary
Summary 2Q17 Progress • Made significant progress in many areas of our business • Added several strong leaders to executive leadership team • Received U.S approval for use of our VNS Therapy device for children as young as four years old • Received approval for expanded MRI labeling in Neuromodulati
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 June 30, 2017 Sales Gross Profit Operations Net Income Diluted EPS GAAP Financial Measures $321.4 $210.8 $31.1 $47.5 $0.98 Specified Items Merger and integration expenses (A) 2.5 2.0 0.
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations U.S. dollars in millions, except per share amounts Income from Three Months Ended June 30, 2016 Sales Gross Profit Operations Net Income Diluted EPS GAAP Financial Measures $321.0 $189.6 $21.9 $9.0 $0.18 Specified Items Merger and integration expenses (A) 6.2 5.2 0.1
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 second-quarter 2017 press release and during the conference call held in conjunct
Slide 20: www.LivaNova.com
www.livanova.com www.LivaNova.com