Slide 1: Investor Presentation: Creating a World Class Afib Platform
AtriCure Investor Presentation Creating a World Class Afib Platform © 2021 AtriCure, Inc. All rights reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements,” which are statements related to future events that by their nature address matters that are uncertain. All forward-looking information is inherently uncertain and actual results may differ materially from assumptions
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement AtriCure’s consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure provides certain non-GAAP financial measures as supplemental financial metrics in this presen
Slide 4: We are passionately focused on reducing the global Afib epidemic
We are Large Markets passionately Addressing an underserved and growing patient population focused on reducing the Strong Portfolio global Afib Existing products and solutions driving consistent growth epidemic and healing the lives Bright Future of those affected Novel therapies supported by growin
Slide 5: Afib: a Serious Problem
Afib: a Serious Problem Atrial Fibrillation (Afib) is an irregular heartbeat (or arrhythmia) that affects more than 33 million people worldwide.1 Approximately 1.2 million Afib diagnoses annually in the US.2 5x Risk of Stroke3 >5x Higher risk of Heart Failure4 46% Greater risk of all cause Mortality
Slide 6: US Market Opportunity
US Market Opportunity $350M $700-800M $2B+ and growing Pain Management Concomitant Open Procedures Procedures Standalone Hybrid Procedures (Ablation) (Ablation/LAAM) (Ablation/LAAM) Boosting Steady Growth in Expansive Growth from development Growth via penetration of Medicine of Standalone Afib Mark
Slide 7: Significant Global Market Opportunity
Significant Global Market Opportunity US market opportunity $3B+ annually International US Market Focus Market Focus • Continued build of • Penetration of large dedicated sales and markets first training expertise • Expand product • Clinical data availability supporting multiple label expansions • I
Slide 8: 2021 Priorities: Building for the Future
2021 Priorities: Building for the Future Standalone ▪ CONVERGE PMA approval and launch Hybrid • Deepen volumes at existing sites and train new accounts Procedures • Addition of AtriClip to the Convergent procedure Ablation and LAAM • Continued global expansion of commercial and training teams Concom
Slide 9: CONVERGE: Long-standing Persistent Afib Patient Analysis
CONVERGE: Long-standing Persistent Afib Patient Analysis Freedom from AF/AFL/AT from 3-month blanking period through 12-months and 18-months 29% differential 35% differential ~78% improvement >100% improvement • Superior outcomes with hybrid Convergent procedure when compared to endocardial catheter
Slide 10: Benefits of the EPi-Sense System and Hybrid AF Therapy
Benefits of the EPi-Sense System and Hybrid AF Therapy Benefits based on 7-day continuous rhythm monitoring at 18-months post procedure Epicardial: Outside the heart 2 Endocardial: Inside the heart More than TRIGGER AREAS TARGETED where atrial fibrillation begins 2x AS EFFECTIVE AT STOPPING AA (vs e
Slide 11: Commercial Strategy for the EPi-Sense System
Commercial Strategy for the EPi-Sense System TARGET BUILD LEVERAGE EXPAND AMPLIFY Drive utilization Train and Add AtriClip to Grow commercial Spread awareness with existing and develop Hybrid AF + training teams, of Hybrid AF new sites programs, build Therapy broaden Therapy to referral channel inte
Slide 12: Innovative and Expanding Product Portfolio
Innovative and Expanding Product Portfolio ISOLATOR® cryoICE® cryoSPHERE® 2H 2021 Product Launch: EPI-SENSE® Ablation SYNERGY™ CLAMP CRYOABLATION PROBE DEVICE CRYOABLATION PROBE ISOLATOR SYNERGY ENCOMPASS® CLAMP Continued innovation toward less invasive, simpler, and more efficient products LAA ATRI
Slide 13: SPOTLIGHT: Cryo Nerve Block for Pain Management
SPOTLIGHT: Cryo Nerve Block for Pain Management Therapy Overview • Long-lasting pain management therapy, designed for use in thoracic surgical procedures • Temporarily stops transmission of pain signals coming from the chest wall during surgery HIGHLIGHTS • Nerve “scaffolds” remain intact allowing a
Slide 14: SPOTLIGHT: Isolator Synergy EnCompass Clamp
SPOTLIGHT: Isolator Synergy A simpler and faster approach EnCompass® Clamp to ablating the heart in open procedures HIGHLIGHTS • FDA 510(k) clearance July 2021 • Limited initial release began 3Q 2021 • Full commercial launch expected Product Overview late 2021 • FDA 510(k) clearance to ablate cardia
Slide 15: Key Investments Driving Growth
Key Investments Driving Growth AtriCure Pillars Aligning Expertise with Opportunity Foundation of our past and strengthening our future Dedicated commercial and education teams U.S. Cardiac 57 Sales Managers and 68 Clinical Specialists Innovation Expanding pipeline to drive Open ablation U.S. Hybrid
Slide 16: History of Strong Financial Performance
History of Strong Financial Performance Worldwide Revenue ($ Millions) $300 $272.5 * $250 Historical Results $230.8 $206.5 $201.6 $200 Consistent $174.7 $155.1 Revenue Growth $150 Strong history of $129.8 double-digit YoY growth COVID-19 IMPACT pre-COVID-19 $100 $50 Steady Improvement $0 to Gross Ma
Slide 17: Third Quarter 2021 Financial Highlights
Third Quarter 2021 Financial Highlights WORLDWIDE REVENUE* ($M) KEY METRICS* Year over Year Sequential Q3 2020 Q3 2021 GROSS MARGIN 73.7% 74.1% -1% 29% ADJ. EBITDA $4.2M $0.7M ADJ. LOSS ($0.11) ($0.23) PER SHARE CASH & $248M $225M INVESTMENTS • Cardiac surgery procedure volumes stabilized over FULL
Slide 18: An Exciting Future Ahead
An Exciting Future Ahead 2021 2022 2023 2024+ CONVERGE Hybrid AF Therapy Platform of PMA and contribution therapies for Hybrid AF differentiated Therapy LARIAT contribution population launch of Afib patients ACCELERATING GROWTH IN EP LANDSCAPE CORE TECHNOLOGIES Surgical Ablation || AtriClip || Cryo
Slide 19: Thank You!
Thank You! © 2021 AtriCure, Inc. All rights reserved. 19
Slide 20: Supplemental Information
Supplemental Information References for any comments, statistics, or figures in this presentation are available upon request. © 2021 AtriCure, Inc. All rights reserved. 20
Slide 21: Key Investment Rationale
Key Investment Rationale Large Markets • Approximately 33 million Atrial Fibrillation patients globally, with majority having Addressing an underserved advanced forms of the disease1 and growing patient population • Multibillion dollar annual market opportunity • Current standard of care for interve
Slide 22: COVID-19 Response
COVID-19 Response Positioning AtriCure for long-term growth Health & Safety Maintaining Operations Provide a safe work environment Deliver products and support for our employees to our customers • Enabling employees to work remotely • Maintaining manufacturing, assembly, and evaluating hybrid workpl
Slide 23: Two Distinct Patient Profiles
Two Distinct Patient Profiles Referring Physician: GP, Cardiologist STRUCTURAL HEART ISSUE NO STRUCTURAL ISSUE Surgery required – Afib corrected at Afib is primary concern same time (Valve, CABG) Intervention is Medicine better choice is effective GUIDELINES8 Surgical Ablation is RECOMMENDED Long-St
Slide 24: US Concomitant Market Opportunity
US Concomitant Market Opportunity Estimated Afib Opportunity in Cardiac Surgery Annual Cardiac Surgeries12 300,000 • US annual cardiac surgery Pre-Operative Afib Rate10 ~28% volume steady over the past 5 years with shifts in Cardiac Opportunity – Pre-Op Afib 85,000 procedure types9 ASP Mix (Ablation
Slide 25: US Standalone Market Opportunity
US Standalone Market Opportunity Estimated Standalone Afib Opportunity Market opportunity in analysis at Projected left considers: 2020 2025 • Addition of ablation and LAAM to Long-standing Persistent Afib Catheter Ablation16 25,000 45,000 existing catheter ablation ASP Mix (Ablation + Appendage Man
Slide 26: CONVERGE Overview
CONVERGE Overview SUPERIORITY TRIAL designed to support FDA approval HIGHLIGHTS of the EPi-Sense device • Completed enrollment August 2018 Achieved statistical superiority for primary endpoints • Data released at virtual Heart Rhythm Society (HRS) conference May 2020 STUDY DESIGN PRIMARY ENDPOINTS •
Slide 27: Hybrid AF Therapy: the Convergent Procedure
Hybrid AF Therapy: the Convergent Procedure 27 © 2021 AtriCure, Inc. All rights reserved.
Slide 28: The Cox-Maze IV Procedure
The Cox-Maze IV Procedure 28 © 2021 AtriCure, Inc. All rights reserved.
Slide 29: aMAZE Overview
aMAZE Overview SUPERIORITY TRIAL designed to evaluate safety and effectiveness of the LARIAT System to percutaneously isolate and ligate the Left Atrial Appendage for the treatment of persistent or longstanding persistent Afib HIGHLIGHTS STUDY DESIGN PRIMARY ENDPOINTS • Acquired SentreHEART® • Summa
Slide 30: References and Abbreviations
References and Abbreviations Note Reference Key Abbreviations 1 Worldwide Epidemiology of Atrial Fibrillation: A Global Burden of Disease 2010 Study Afib or AF Atrial Fibrillation 2 The American Journal of Cardiology (2013), 112: 1142-1147 AA Atrial Arrythmia AAD Anti-Arrhythmic Drugs 3 J Geriatr Ca