Slide 1: Isla, VNS Therapy Patient
Isla, VNS Therapy Patient 1
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 Recent Highlights Financial Results Guidance Summary 4
Slide 5: Recent Highlights
Recent Highlights
Slide 6: Recent Highlights
Recent Highlights Advancement in products and clinical studies to support patients Epilepsy • New registry data was presented at the American Epilepsy Society 2019 Annual Meeting in December on super- refractory status epilepticus and Lennox-Gastaut Syndrome Difficult-to-Treat Depression (DTD) • Sym
Slide 7: Financial Results
Financial Results
Slide 8: 4Q19 at a Glance
4Q19 at a Glance 4Q18 4Q19 69.7% $1.12 69.0% $1.00 $297.0 $287.6 37.4% 22.8% 33.9% 19.2% 13.1% 12.2% 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 operating
Slide 9: Full-Year 2019 at a Glance
Full-Year 2019 at a Glance FY18 FY19 $1.1B $1.1B 69.6% 68.1% $3.55 $3.08 38.9% 36.4% 14.1% 19.5% 12.3% 16.6% 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 o
Slide 10: 4Q19 Net Sales
4Q19 Net Sales Cardiopulmonary (CP) Vagus Nerve Stimulation Therapy $287.6M 76% (VNS Therapy) 2.2% decrease* Heart-lung machines (HLM) Oxygenators Drug-Resistant Epilepsy (DRE) Autotransfusion systems (ATS) Difficult-to-treat Depression (DTD) Cannulae Heart Failure (HF) Hypoglossal Nerve Stimulation
Slide 11: Full-Year 2019 Net Sales
Full-Year 2019 Net Sales $1.1B 77% Cardiopulmonary (CP) Vagus Nerve Stimulation Therapy (VNS Therapy) 0.00% decrease* Heart-lung machines (HLM) 0.1% increase* Oxygenators Drug-Resistant Epilepsy (DRE) Autotransfusion systems (ATS) Difficult-to-treat Depression (DTD) Cannulae Heart Failure (HF) Hypog
Slide 12: 4Q19 Cardiovascular Sales
Heart Valves 4Q19 Cardiovascular Sales Cardiopulmonary Advanced Circulatory Support Drivers/Impacts Net Sales ($M)* (3.8%) $182.6 + Record sales in ACS primarily driven by ProtekDuo 7.4 $173.5 19.8% and TandemHeart kits 8.8 28.6 14.0% 32.1 + The U.S. and Europe regions delivered low-single- digit ox
Slide 13: 4Q19 Neuromodulation Sales
4Q19 Neuromodulation Sales Net Sales ($M)* Drivers/Impacts 0.1% $113.6 $113.1 + U.S. sales turnover remained stable and sales rose sequentially for the third straight quarter + Another quarter of strong double-digit growth in the Europe and ROW regions + SenTiva VNS Therapy System now represents 61%
Slide 14: 4Q19 Adjusted EPS from Continuing Operations*
4Q19 Adjusted EPS from Continuing Operations* Reconciliation of GAAP EPS to Adjusted EPS $0.11 $0.04 $1.00 $0.17 $0.55 $2.51 $0.07 ($0.05) ($2.96) $0.21 $0.13 $0.18 GAAP Merger Restructuring Depreciation Impairments Product Acquisition Non-recurring Stock-based Certain Certain Adjusted Financial and
Slide 15: FY19 Adjusted EPS from Continuing Operations*
FY19 Adjusted EPS from Continuing Operations* Reconciliation of GAAP EPS to Adjusted EPS $0.14 $0.11 $3.08 $0.54 $0.63 $0.23 ($0.01) $3.31 ($3.22) $0.70 $0.20 $0.41 GAAP Merger Restructuring Depreciation Impairments Product Acquisition Non-recurring Stock-based Certain Certain Adjusted Financial and
Slide 16: 2020 Guidance
2020 Guidance 16
Slide 17: 2020 Guidance from Continuing Operations
2020 Guidance from Continuing Operations Focused execution to deliver financial and strategic portfolio commitments Guidance Worldwide net sales growth (1) 3% - 5% Gross profit percentage (1) 70% - 71% R&D (1) 14% - 15% SG&A (1) 38.5% - 39.5% Operating margin (1) 16.5% - 17.5% Effective tax rate 14%
Slide 18: 2020 Guidance Assumptions
2020 Guidance Assumptions • Improved U.S. Epilepsy commercial execution delivering low-to mid-single-digit growth REVENUE Low-to Mid- • U.S. commercialization of LifeSPARC translating to at least 20% growth GROWTH Single-Digit • ROW region continues to deliver double-digit growth • Further gross mar
Slide 19: Summary
Summary • Product mix and pricing discipline delivered higher ASPs and 150 basis point FINANCIAL improvement in the gross profit in 2019 GROWTH • Well-positioned to continue progress in advancing growth of our core Epilepsy business • ANTHEM-HFrEF pivotal trial enrollment continues to perform ahead
Slide 20: Appendix
Appendix 20
Slide 21: Net Sales - Comparison of Actual Results to Constant Currency - Unaudited
Net Sales - Comparison of Actual Results to Constant Currency - Unaudited $ in millions Three months ended December 31, Constant- As Reported Currency % Change Business / Product Line: 2019 2018 % Change Cardiopulmonary $132.6 $146.7 (9.6%) (8.4%) Heart Valves 32.1 28.6 12.4% 14.0% Advanced Circulat
Slide 22: 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 23: 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 CRM Legal and Stock-based GAAP Integration Restructuring Amortization
Slide 24: 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 25: 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 CRM Legal and Stock-based GAAP Integration Restructuring Amortization
Slide 26: 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 fourth-quarter and full-year 2019 press release and during the conference call he
Slide 27: 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