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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 Securities Act and Section 21E of the Exchange Act. These statements i
Slide 3: Intellectual Property, Trademarks and Trade Names
Intellectual Property, Trademarks and Trade Names 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 (P
Slide 4: Contents
Contents 1Q23 Financial Results 2023 Guidance and Assumptions Closing Thoughts Appendix 4
Slide 5: Financial Results
Financial Results Financial Results 5
Slide 6: 1Q23 Financial Summary
1Q23 Financial Summary 1Q22 1Q23 Net Revenue ($M) Adjusted Diluted EPS et Sales ($ in MM) Adjusted Diluted EPS $263.4 $240.2 • Net revenue increased 12.7 percent on a constant-currency basis $0.48 $0.43 • Foreign currency had an unfavorable impact on net revenue of ~$7M, or 3 percent Adjusted Gross
Slide 7: 1Q23 Net Revenue
1Q23 Net Revenue Cardiopulmonary (CP) Neuromodulation • Heart-lung machines (HLM) • Oxygenators Vagus Nerve Stimulation Therapy • Autotransfusion systems (ATS) (VNS Therapy) • Cannulae • Drug-Resistant Epilepsy (DRE) • Difficult-to-Treat Depression (DTD) 46% $263.4M 12.7% increase(1) 50% Hypoglossal
Slide 8: Segment Net Revenue Comparisons by Region
Segment Net Revenue Comparisons by Region Three Months Ended March 31, % Change % Change at Actual at Constant- ($M) 2023 2022 Currency Rates Currency Rates(1) Cardiopulmonary United States $36.1 $38.1 (5.2)% (5.2)% Europe(2) 36.3 32.1 13.1% 19.0% Rest of World 59.7 46.9 27.2% 34.9% Total 132.1 117.
Slide 9: 1Q23 Cardiopulmonary Revenue
1Q23 Cardiopulmonary Revenue(1) Drivers/Impacts Net Revenue ($M) 17.5% $132.1 Revenue increased 18%, driven by the Rest of World and $117.1 Europe regions. $59.7 $46.9 Oxygenator revenue grew in the high teens, driven by higher demand and improving supply chain performance. $32.1 $36.3 HLM revenue g
Slide 10: 1Q23 Neuromodulation Revenue
1Q23 Neuromodulation Revenue(1) Drivers/Impacts Net Revenue ($M) 11.1% $120.7 Neuromodulation revenue increased 11%, with strength across $110.2 $13.0 all regions, including growth in both new and replacement $10.6 implants. $13.3 $12.5 U.S. Epilepsy revenue increased 8% year over year driven by gro
Slide 11: 1Q23 Advanced Circulatory Support Revenue
1Q23 Advanced Circulatory Support Revenue(1) Drivers/Impacts Net Revenue ($M) (15.7)% ACS revenue declined 16%, impacted primarily by a reduction in severe COVID cases versus the prior year. 1Q23 is the final quarter significantly impacted by COVID comparisons. $11.7 $9.8 Experienced modest sequenti
Slide 12: 1Q23 Adjusted Segment Operating Income and Margin
1Q23 Adjusted Segment Operating Income and Margin(1) $28.4M $26.8M % to Revenue 1Q22 1Q23 Cardiopulmonary 10.4% 10.5% $36.6 $33.4 Neuromodulation 33.2% 27.6% ACS (44.7)% (47.9)% $12.2 $13.9 Total 11.8% 10.2% $(5.2) $(4.7) $(15.2) $(15.8) Cardiopulmonary Neuromodulation 1Q 2022 1Q 2023 ACS Other(2) N
Slide 13: Adjusted Free Cash Flow
Adjusted Free Cash Flow Continued focus on optimizing cash generation • Targeting $80M - $100M of adjusted free cash flow (FCF) for full-year 2023 Three Months Ended March 31, Adjusted Free Cash Flow Reconciliation ($M) 2023 2022 Net cash provided by operating activities $20.8 $25.8 Less: Purchases
Slide 14: 1Q 2023 Summary
1Q 2023 Summary • 12.7%(1) revenue growth, with strength in Cardiopulmonary and Neuromodulation • Adjusted operating margin unfavorably impacted by inflationary pressures, geographic/product mix, commercial and SPI Financial investment, and HF wind-down costs • Adjusted free cash flow of $20M improv
Slide 15: 2023 Guidance
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Slide 16: 2023 Guidance
2023 Guidance Raising full-year guidance for revenue and adjusted diluted EPS Consolidated Guidance Consolidated Guidance As of February 22, 2023 As of May 3, 2023 Worldwide net revenue growth, excluding Heart Valves(1) 3 - 5% 4 - 6% Adjusted diluted EPS(1)(2) $2.45 - 2.65 $2.50 - 2.70 Adjusted free
Slide 17: Assumptions for 2023
Assumptions for 2023 • Cardiopulmonary revenue now expected to grow 5-7% REVENUE(1) 4 - 6% • Epilepsy revenue expected to grow 3-5% • ACS revenue expected to grow 4-6% • Gross margin flat due to ongoing inflationary pressures, offset by productivity and price EPS(2) $2.50 - 2.70 • Targeting operatin
Slide 18: 2023 Strategic Priorities
2023 Strategic Priorities Core Growth Focus on commercial execution in under-penetrated markets • Drive market development for U.S. Epilepsy and ACS • Deliver on Essenz launch objectives • Continue growth in the Rest of World and Europe regions Pipeline Execution Multiple existing and pipeline initi
Slide 19: Appendix
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Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations The following 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 first-quarter 2023 press release and during the conference call held in conjuncti
Slide 21: 1Q23 Adjusted EPS from Continuing Operations
1Q23 Adjusted EPS from Continuing Operations(1) $0.13 $0.43 $0.04 $0.11 $0.19 $0.01 $0.01 $0.14 $0.11 $0.09 $(0.39) GAAP Financial Merger and Restructuring Depreciation and Financing Contingent Certain Legal Stock-based Certain Tax Certain Interest Adjusted Measures Integration Expenses Amortization
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 Integration Restructuring Amortization Financing Contingent Certain Legal & Comp
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 Depreciation and Certain Legal & Stock-based Restructuring Amortization Financing Contingent Regulatory Compensation Cer
Slide 24: 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 25: Segment Non-GAAP Reconciliation - Unaudited
Segment Non-GAAP Reconciliation - Unaudited (U.S. dollars in millions) Specified Items Stock-based Depreciation and Contingent Certain Legal & Compensation Three Months Ended GAAP Amortization Consideration Regulatory Costs Costs Adjusted March 31, 2023 Financial Results (A) (B) (C) (D) Financial Re
Slide 26: 1Q 2023 Financial Results
1Q 2023 FINANCIAL RESULTS Financial Summary1 “During the first quarter, LivaNova delivered solid revenue 1Q23 1Q22 growth. Additionally, the Company achieved important product and clinical milestones, including U.S. FDA 510(k) Net Revenue $263M $240M clearance for Essenz and randomization of the 500
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures – Unaudited
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES – UNAUDITED Three Months Ended March 31, 2023 Depreciation Merger and and Certain Legal & Stock-based GAAP Integration Restructuring Amortization Financing Contingent Regulatory Compensation Certain Tax Certain Interest Adjusted Financial Expense