Inogen, Inc · NASDAQ:INGN
Inogen — Investor Presentation (January 2016)
25 slides from Inogen's investor presentation, Jan 11, 2016
Slide 1: Company Overview January 2016
Exhibit 99.1 Company Overview January 2016
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 4.8 pounds (single battery) Up to 9 hours of run time with a double battery A/C adaptable FAA approved Suitable for overnight use Portable oxygen concentrator (POC) Inogen
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 with additional cuts to the remaining Medicare market in 2016 Oxygen delivery has high fixed and variable costs Ambu
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: Inogen One performance drives POC leadership position
Inogen One performance drives POC leadership position Light weight High capacity Inogen One G3 Inogen One G2® O2 capacity 1,050 ml/min 1,260 ml/min Overnight ü ü Single Solution ü ü User Replaceable Batteries ü ü Sieve Life Extending Technology ü ü Weight (lbs) 4.8 (single battery) 5.8 (double batte
Slide 7: Building the Inogen brand
Building the Inogen brand Targeted advertising Consumer preference Domestic direct-to-consumer sales ($mm) Domestic business-to-business sales ($mm) +41.1% POP +64.6% YOY +76.9% POP +87.2% YOY ($mm) Founded in patient preference
Slide 8: B2B sales & distribution diversifies revenue
B2B sales & distribution diversifies revenue Sales in 45 countries Growing worldwide demand 2014 Revenue: $112.5mm Q1-Q3 2015 Revenue: $118.6mm Medicare 21.1% Europe 20.1% Medicare 26.5% Europe 18.8%
Slide 9: Track record of growth
Track record of growth Revenue ($mm) CAGR: 50.0% *2015 estimated revenue of $151.5M based on the midpoint of guidance provided in the Company’s press release on November 30, 2015 of $150M - $153M. 2016 estimated revenue of $180M based on the midpoint of guidance provided during the Company’s press r
Slide 10: Strong recent momentum
Strong recent momentum Revenue ($mm) Rental patient population growth (000s) *2015 estimated revenue of $151.5M based on the midpoint of guidance provided in the Company’s press release on November 30, 2015 of $150M - $153M. This outlook represents the Company’s guidance only as of that date. Chart
Slide 11: Growth with strong margins
Growth with strong margins *2015 estimated Adjusted EBITDA of $30.5M based on the midpoint of guidance provided during the Company’s press release on November 30, 2015 of $29M - $32M. 2016 estimated Adjusted EBITDA of $36M based on the midpoint of guidance provided during the Company’s press release
Slide 12: Multiple avenues to drive future growth
Multiple avenues to drive future growth Expansion of direct-to-consumer network Increase B2B distribution (domestic & international) Growth in physician referrals Negotiate private payor contracts 166 inside sales reps* 27 people in clinical, 67 in billing, 36 in patient customer support & service*
Slide 13: 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 14: Proprietary and differentiated
Proprietary and Confidential
Slide 15: Inogen At Home stationary oxygen concentrator
Inogen At Home® stationary oxygen concentrator October 2014 launch Retail price $1,495 Lightest 5 LPM continuous flow oxygen concentrator on the market Low power consumption Designed for patient preference and reliability Expands product portfolio to fulfill the clinical requirements of most oxygen
Slide 16: Significant Intellectual Property
Significant Intellectual Property 27 issued U.S. patents; 1 Canadian patent issued System design and assembly Control algorithms Advanced Technologies 5 pending U.S. patents User replaceable sieve beds Sieve bed life prediction Product differentiation Long-term protection of existing portfolio Relia
Slide 17: Revenue Growth Period over Period
Revenue Growth Period over Period 2011-2012 2012-2013 Q1-Q3 2013 – Q1-Q3 2014 +59% +55% +50% Average non-delivery ambulatory monthly rates Non-delivery ambulatory monthly rates Key takeaways $233 $136 $134 2011 Mid-2013 2014 Rate cut to unbid areas in 2016 phased in over first 6 months à ~2.5-3.5% r
Slide 18: Why would other POC manufacturers have difficulty going DTC?
HME 1 Why would other POC manufacturers have difficulty going DTC? Oxygen device manufacturers HME Oxygen Other Homecare Oxygen patients Homecare products Beds Defibrillators Wheelchairs Sleep Masks Walkers Top 2 competitors Reliance on HME channel across homecare business
Slide 19: Decentralized infrastructure needed for other businesses; higher equipment and switching costs
Decentralized infrastructure needed for other businesses; higher equipment and switching costs Nebulizers CPAP devices Home ventilator systems Infusion pumps What is barrier to entry for HME providers adopting POC model? Infrastructure investments Costs saved / incurred by switching to POC mode Purc
Slide 20: Continuous innovation to stay at the forefront of customer preference
Continuous innovation to stay at the forefront of customer preference Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Oct-04 Release Jun-06 Update Inogen One Inogen One G2 Inogen One G3 Apr-09 Update Mar-10 Release Sep-13 Update Sep-12 Release (32% lighter than G2) Overall product sys
Slide 21: Sustained patient satisfaction ratings of 95%
Sustained patient satisfaction ratings of 95% Consumer Advertising Patient inquiry and suitability review Physician Paperwork Patient Set-up and Clinical Evaluation Sales and customer service is a core competency Logistics
Slide 22: High standards of compliance and regulations
510(k) clearance by the FDA FDA registered manufacturing facilities FAA clearance for use on commercial aircraft Certified for European ISO 13485 for design, development, production of Oxygen concentrators and accessories Licensed to sell directly to patients and bill Medicare in 49 states and Distr
Slide 23: A proven team built for success
A proven team built for success Ray Huggenberger Chief Executive Officer Ali Bauerlein Chief Financial Officer Scott Wilkinson President, Chief Operating Officer 10 years with Sunrise Medical Inc., President & COO from ‘02 to ’04 Spinoff of German TA Healthcare division and sale to Warburg Pincus Co
Slide 24: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation Year Ended December 31, Nine Months Ended September 30, (In Thousands) 2014 2013 2015 2014 Net Income: $6,826 $25,435 $7,727 $5,307 Non-GAAP adjustments: Interest income (42) (12) (66) (28) Interest expense 449 562 18 440 Provision (benefit) for income taxe
Slide 25: Balance sheet overview
Balance sheet overview [Insert object title] Summary as of September 30, 2015 Cash, cash equivalents & short term investments on hand $74.1mm Debt $0.4mm No additional capital requirements to meet plan Positive Cash Flow Maximizes flexibility 2015 Expectations