Slide 1: Second-Quarter 2024 Earnings Update
ZivaNova Second-Quarter 2024 Earnings Update July 31, 2024 La
Slide 2: Safe Harbor
Safe Harbor Certain statements in this material, other than statements of historical or current fact, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. S
Slide 3: Intellectual Property, Trademarks and Trade Names
Intellectual Property, Trademarks and Trade Names This material may contain references to LivaNova's proprietary intellectual property, including among others: • Trademarks for LivaNova’s Neuromodulation systems, the VNS Therapy™ System and LivaNova’s proprietary pulse generator products: Model 102
Slide 4: Contents
Contents 2Q24 Financial Results 2024 Guidance and Assumptions Appendix 4
Slide 5: Financial Results
Financial Results Financial Results 5
Slide 6: 2Q24 Financial Summary
2Q24 Financial Summary 2Q23 2Q24 Net Revenue ($M) Adjusted Diluted EPS et Sales ($ in MM) Adjusted Diluted EPS $318.6 $0.93 $293.9 • Net revenue increased 9.6 percent on a constant-currency basis $0.78 • Excluding the impact of the ACS segment wind down, revenue increased 10.8 percent on a constant-
Slide 7: 2Q24 Net Revenue
2Q24 Net Revenue Neuromodulation Vagus Nerve Stimulation Therapy (VNS Therapy) Cardiopulmonary (CP) • Drug-Resistant Epilepsy (DRE) • Heart-lung machines (HLM) • Difficult-to-Treat Depression (DTD) • Oxygenators 45% $318.6M 55% • Autotransfusion systems (ATS) (1) 9.6% increase Hypoglossal Nerve Stim
Slide 8: Segment Net Revenue Comparisons by Region
Segment Net Revenue Comparisons by Region Three Months Ended June 30, Constant-Currency ($M) 2024 2023 % Change % Change(1) Cardiopulmonary United States $64.9 $50.0 29.7% 29.7% Europe(2) 38.6 39.3 (2.0)% (1.3)% Rest of World 70.3 64.8 8.5% 12.3% 173.7 154.1 12.7% 14.5% Neuromodulation United States
Slide 9: 2Q24 Cardiopulmonary Revenue
2Q24 Cardiopulmonary Revenue(1) Drivers/Impacts Net Revenue ($M) 14.5% $173.7 Revenue increased 14.5% with strength in the U.S. and Rest of $154.1 World regions. Growth in Europe was unfavorably impacted by provision for Italian payback measure. $70.3 $64.8 Strong global demand for consumables, incl
Slide 10: 2Q24 Neuromodulation Revenue
2Q24 Neuromodulation Revenue(1) Drivers/Impacts Net Revenue ($M) 7.8% $142.9 $133.2 Revenue increased 7.8% with growth across all regions. $15.6 $14.0 $15.6 $15.1 Total Epilepsy revenue grew 6.8% with U.S. Epilepsy revenue growth of 6.5% driven by new and replacement implants. $104.1 $111.7 Europe a
Slide 11: 2Q24 Adjusted Segment Income and Margin
2Q24 Adjusted Segment Income and Margin(1) % to Revenue $86.7M 2Q23 2Q24 $71.8M Cardiopulmonary 18.6% 16.2% Neuromodulation 32.4% 41.0% $58.6 Total Segment Margin 25.0% 27.4% $43.2 Total Operating Margin(2) 16.8% 21.0% 2Q24 adjusted operating margin favorably impacted by HF program and ACS segment w
Slide 12: Adjusted Free Cash Flow
Adjusted Free Cash Flow Targeting $95 - 115M of adjusted free cash flow (FCF) for full-year 2024 Adjusted Free Cash Flow Reconciliation ($M) 1Q 2024 2Q 2024 2024 YTD Net cash provided by operating activities $10.0 $43.4 $53.3 Less: Purchases of plant, property, and equipment (6.4) (12.2) (18.6) Add:
Slide 13: 2Q 2024 Summary
2Q 2024 Summary • 9.6%(1) revenue growth, including double-digit growth in Cardiopulmonary and high-single-digit growth in Neuromodulation • Adjusted operating margin favorably impacted by higher revenue, operating leverage, and wind down of HF and ACS Financial • Revenue and adjusted operating marg
Slide 14: 2024 Guidance
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Slide 15: 2024 Guidance
2024 Guidance Raising full-year guidance for revenue, adjusted diluted EPS, and maintaining range for adjusted FCF Consolidated Guidance Consolidated Guidance Consolidated Guidance As of February 21, 2024 As of May 1, 2024 As of July 31, 2024 Net revenue growth(1) 4 - 5% 6 - 7% 7 - 8% Net revenue gr
Slide 16: Assumptions for 2024
Assumptions for 2024 • Cardiopulmonary revenue now expected to grow 12 - 13% (versus 8 - 9% prior) REVENUE(1) (excluding ACS segment 9 - 10% • Epilepsy revenue growth of 6 - 7% (maintained) wind down) • ACS wind down completion expected by the end of 2024 • Adjusted operating income margin increase
Slide 17: 2023 Adjusted Diluted EPS Bridge to 2024 Guidance
(1) 2023 Adjusted Diluted EPS Bridge to 2024 Guidance $0.70 $3.15 At midpoint of At midpoint of $0.65 - $0.75 $3.10 - $3.20 $2.80 range range $0.45 ($0.45) ($0.35) 2023 Actual Tax Rate Cost Inflation & Infrastructure Heart Failure & ACS Exits Operational Growth & Leverage 2024 Guidance Investments (
Slide 18: Appendix
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Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations To supplement financial measures presented in accordance with generally accepted accounting principles in the United States (U.S. GAAP or GAAP), management has disclosed certain additional measures not presented in accordance with GAAP known as “non-GAAP financial me
Slide 20: 2Q24 Adjusted EPS
2Q24 Adjusted EPS(1) $0.15 $0.14 $0.93 $0.21 $(0.15) $0.05 $0.01 $0.11 $0.08 $0.04 $0.30 GAAP Financial Restructuring Depreciation and Impairment Financing Contingent Certain Legal Stock-based Certain Tax Certain Interest Adjusted Measures Expenses Amortization Transactions Consideration and Regulat
Slide 21: 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 and Stock-based Adjusted Three Months Ended GAAP Financial Restructuring Amortization Financing Contingent
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 Merger and Depreciation and Stock-based Adjusted Three Months Ended GAAP Financial Integration Restructuring Amortizatio
Slide 23: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (US dollars in millions, except per share amounts) Specified Items Depreciation and Stock-based Adjusted Six Months Ended GAAP Financial Restructuring Amortization Financing Contingent Cert
Slide 24: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited (US dollars in millions, except per share amounts) Specified Items Merger and Depreciation and Stock-based Adjusted Six Months Ended GAAP Financial Integration Restructuring Amortization Financing Contingent Certain Legal & Compensation Certain Tax Certai
Slide 25: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions) (U.S. dollars in millions) Three Months Ended Twelve Months Ended Adjusted free cash flow reconc
Slide 26: GAAP to Non-GAAP Reconciliation - Unaudited
GAAP to Non-GAAP Reconciliation - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions) Specified Items Segment income Stock-based Three Months Ended GAAP Contingent Certain Legal & Compensation Adjusted Financial June 30, 2024 Financial Results Consi