Invacare — 2017 Jefferies Global Healthcare Conference
20 slides from Invacare's conference presentation, Jun 6, 2017
Slide 1: 2017 Jefferies Global Healthcare Conference
2017 Jefferies Global Healthcare Conference Matthew E. Monaghan Chairman, President and CEO June 6, 2017 02/09/17 Webcast Slides
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that describe future outcomes or expectations that are usually identified
Slide 3: Investment Summary
Investment Summary • Transformation: In Phase Two of three-phase turnaround from generalist durable medical equipment company toward clinically complex solutions for rehabilitation and post-acute care. • Quality: Quality excellence – our clear #1 priority. Demonstrating progress. • Commercial shift:
Slide 4: About Invacare Corporation (NYSE: IVC)
About Invacare Corporation (NYSE: IVC) • Global Headquarters near Cleveland, OH • 2016 revenues of approximately $1.0 billion • Design, manufacture and distribute non-acute durable medical equipment • Primarily distribute to home medical equipment providers, rehabilitation facilities and residential
Slide 5: Solutions Across The Continuum Of Care
Solutions Across The Continuum Of Care Providing essential clinical solutions for broad range of conditions Solution Areas Move Breathe Rest & Hygiene Conditions Congenital Acquired Degenerative Stroke Multiple Sclerosis Cerebral Palsy Spinal Cord Injury Muscular Dystrophy ALS Traumatic Brain Injury
Slide 6: Market Transformation Driving Strategic Shift
Market Transformation Driving Strategic Shift Focusing on greater clinical value contributes to profitable growth 1. Historically – a larger intersection of demand for features across full range of products, e.g. durability and features valued across product range. Invacare’s one-stop-shop strategy
Slide 7: Invacare's Value: 24 Hours Of Continuous Clinical Care
Invacare’s Value: 24 Hours Of Continuous Clinical Care Complex Rehabilitation Post Acute Care Respiratory Integrating solutions for maximum care in key clinical areas. IVC IP 6/2/17 77
Slide 8: Invacare's Value: 24 Hours Of Continuous Clinical Care
Invacare’s Value: 24 Hours Of Continuous Clinical Care Providing innovative products for complex clinical solutions Premium hygiene solutions Wound management & safe rest with therapeutic support surfaces 24 Transfers with safe Rest patient handling 24 Hygiene 18 hours of 6 Advanced power Clinical C
Slide 9: Business Changes To Emphasize Market Needs
Business Changes To Emphasize Market Needs Shifting the company’s focus toward clinically complex solutions Products by APAC (4%) Other Profitability drivers from: Europe • Evolving mix expansion with (52%) greater clinical value • Efficiency improvements Total Sales Lifesty Lifestyles Profitability
Slide 10: Transformation
Transformation Leverage the company’s strong technical capabilities for solving complex clinical needs to generate better returns for re-investment and growth 2015 2019+ ( = prospective, = completed) Phase One – Assess and Reorient Developed & expanded talent Phase Two – Build and Align Accel
Slide 11: Key Indicators Of Transformation
Key Indicators Of Transformation As our transformation progresses, we expect to see the following trends: Phases 1 & 2 Phase 3 • Revenue: Reshaping revenue, reducing aids for daily living (ADL) then growing clinically complex products (CCP) • Gross Margin: Shifting mix where innovation % $ drives ma
Slide 12: Phase Two Objectives – Build and Align
Phase Two Objectives – Build and Align Beginning to shift into Phase Two activities in 2017 Focus Summary Actions ( = prospective, = completed) Küschall active manual wheelchairs in NA Cruise Mode upgrade on Alber Twion New products and New clinical products PinDot CLIP 3D imaging system in
Slide 13: Recent Performance - Key Expectations
Recent Performance - Key Expectations Key indicators of the transformation Phase 1 and 2 Indicators Q415 Q116 Q216 Q316 Q416 Q117 Constant Currency Net (1.7)% (4.8)% (1.6)% (4.5)% (8.1)% (4.4)% Sales(a)(b)(c) Gross Margin Percentage % +190 bps +90 bps +120 bps +/- 0 -60 bps +180 bps of Net Sales(a)(
Slide 14: Research and Development
Research and Development Strong opportunities for growth in attractive and adjacent markets Electromotive Technology Informatics Applying Alber power add-on Connecting and sharing product data to technology to new products, improve the user, clinician and provider including recreational experience.
Slide 15: Looking Forward
Looking Forward Transformation is the framework for strong future Key Objectives Phase 3 Expected Results Constant Currency Net Sales > $1.1 billion Growth Targets > Market Gross Profit > 30% SG&A Mid-20s% Operating Margin ≥ Upper single-digits EBITDA > $100 million Executing well with clinically me
Slide 16: Investment Summary
Investment Summary • Transformation: In Phase Two of three-phase turnaround from generalist durable medical equipment company toward clinically complex solutions for rehabilitation and post-acute care. • Quality: Quality excellence – our clear #1 priority. Demonstrating progress. • Commercial shift:
Slide 17: Questions?
Questions? IVC IP 3/31/17 17
Slide 18: Appendix A: Reconciliation of Non-GAAP Performance Metrics to GAAP Financial Measures
Appendix A: Reconciliation of Non-GAAP Performance Metrics to GAAP Financial Measures IVC IP 6/2/17 18
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures Some of the information in this presentation is derived from the company’s consolidated financial data but not presented in its financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of th
Slide 20: Reconciliation Of Non-GAAP Performance Metrics To GAAP Financial Measures
Reconciliation Of Non-GAAP Performance Metrics To GAAP Financial Measures IVC IP 6/2/17 20
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