Invacare — Presentation (February 2023)
21 slides from Invacare's investor presentation, Feb 1, 2023
Slide 1: Yes, you can. Discussion Materials
Yes, you can. Discussion Materials
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains highly confidential information and is solely for informational purposes. You should not rely upon or use it to form the definitive basis for any decision or action whatsoever, with respect to any proposed transaction or otherwise. You and your
Slide 3: Forward Looking Statements (Cont'd)
3 Forward Looking Statements (Cont’d) Cautionary Statement Concerning Forward-Looking Statements Statements contained in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Slide 4: Table of Contents
III. Summary of 4-Year Financial Projections 11 I. Situation Overview 4 II. Global Transformation Overview 6 Table of Contents
Slide 5: I. Situation Overview
I. Situation Overview
Slide 6: Situation overview: Q4 2022 performance and Highbridge transaction
6 • In Q4 2022, the Company’s operating performance improved sequentially with Preliminary Adjusted EBITDA (unaudited) for 4Q22 approximately breakeven as compared to loss in 3Q22. Europe delivered positive operating income in 4Q22. Sequential improvement driven by reported sales growth in each segm
Slide 7: II. Transformation Overview
7 II. Transformation Overview
Slide 8: Workstream Status Update and Next Steps (1)
8 Workstream Status Update and Next Steps (1) Product Profitability EMEA: 1. Initiatives from plan at implementation stage tied to specific product lines / countries. Targets aligned with country leads and execution roles assigned 2. Weekly order intake report introduced to monitor price & volume de
Slide 9: Workstream Status Update and Next Steps (4)
9 Workstream Status Update and Next Steps (4) Organization effectiveness Global 1. Newly defined organizational structure as basis for a global and more efficient target operating model ("TOM") developed ― Introduction of global category management as cross functional driver of product efficiency ―
Slide 10: Progress to Date: Summary of Key Updates
10 Progress to Date Summary of Key Updates Key Actions Outcomes Re-evaluated the operational and financial feasibility to move bed manufacturing Bed manufacture to remain in Sanford and expanding into contract manufacturing to improve efficiency Evaluated the operational and financial feasibility of
Slide 11: Workstream Risks and Timing: Divestitures
11 Workstream RisksTiming 1 Project Independence • End of June 2023 for a decision on retain, sell or shut down • Shutting down is a distraction to the rest of the business 2 Project Marathon Top End • Divested 1/27/23 3 9 Project Element Respiratory • Full business divestiture including spare parts
Slide 12: III. 4-Year Financial Projections
III. 4-Year Financial Projections
Slide 13: IVC Group
13 IVC Group – 4-Year Financial Projection Notes: Unaudited estimated financials for FY2022. E = Estimate; P = Projected. (1) Operating Profit is equal to Gross Profit less Sales, General & Administrative Expenses. (2) “Adjusted EBITDA" is a non-GAAP financial measure, which is defined as earnings b
Slide 14: IVC Group (Cont'd)
14 IVC Group – 4-Year Financial Projection (Cont’d) FY 2022E FY 2023P FY 2024P FY 2025P FY 2026P FREE CASH FLOW Net Income (101.1)$ (33.4)$ 6.0$ 29.5$ 49.2$ Depreciation & Amortization 15.5 12.3 15.2 15.2 15.1 Other Adjustments 13.8 3.5 4.2 4.2 4.2 Changes in Net Working Capital Accounts Receivable
Slide 15: NA & Corporate
15 NA & Corporate – 4-Year Financial Projection FY 2023P FY 2024P FY 2025P FY 2026P REVENUE Net Sales, External 262.1$ 273.8$ 295.0$ 320.0$ TOTAL REVENUE 262.1$ 273.8$ 295.0$ 320.0$ COST OF SALES Standard Costs 141.4$ 157.4$ 164.2$ 172.0$ Non-Standard Costs 41.2 23.3 24.3 27.3 TOTAL COST OF SALES 18
Slide 16: NA & Corporate (Cont'd)
16 NA & Corporate – 4-Year Financial Projection (Cont’d) FY 2023P FY 2024P FY 2025P FY 2026P FREE CASH FLOW Net Income (34.1)$ (32.9)$ (22.4)$ (15.3)$ Depreciation & Amortization 5.7 8.5 8.5 8.5 Other Adjustments 0.8 1.8 1.8 1.8 Changes in Net Working Capital Accounts Receivable (0.8) (1.9) (4.5) (4
Slide 17: EMEA
17 EMEA – 4-Year Financial Projection FY 2023P FY 2024P FY 2025P FY 2026P REVENUE Net Sales, External 428.3$ 435.2$ 451.8$ 470.2$ TOTAL REVENUE 428.3$ 435.2$ 451.8$ 470.2$ COST OF SALES Standard Costs 265.1$ 258.4$ 263.6$ 268.6$ Non-Standard Costs 33.1 35.4 36.2 37.0 TOTAL COST OF SALES 298.2$ 293.8
Slide 18: EMEA (Cont'd)
18 EMEA – 4-Year Financial Projection (Cont’d) FY 2023P FY 2024P FY 2025P FY 2026P FREE CASH FLOW Net Income 26.0$ 35.7$ 47.3$ 58.2$ Depreciation & Amortization 6.0 6.1 6.1 6.1 Other Adjustments 2.5 2.4 2.4 2.4 Changes in Net Working Capital Accounts Receivable (2.2) (0.7) 0.2 (1.8) Inventory 1.2 3.
Slide 19: APAC
19 APAC – 4-Year Financial Projection FY 2023P FY 2024P FY 2025P FY 2026P REVENUE Net Sales, External 36.6$ 40.7$ 45.1$ 50.5$ TOTAL REVENUE 36.6$ 40.7$ 45.1$ 50.5$ COST OF SALES Standard Costs 18.1$ 25.2$ 28.0$ 31.3$ Non-Standard Costs 6.4 2.1 2.4 2.7 TOTAL COST OF SALES 24.5$ 27.3$ 30.4$ 34.0$ GROS
Slide 20: APAC (Cont'd)
20 APAC – 4-Year Financial Projection (Cont’d) FY 2023P FY 2024P FY 2025P FY 2026P FREE CASH FLOW Net Income 2.1$ 3.1$ 4.6$ 6.4$ Depreciation & Amortization 0.5 0.6 0.6 0.6 Other Adjustments 0.1 0.1 0.1 0.1 Changes in Net Working Capital Accounts Receivable 0.2 (0.3) (0.6) (0.7) Inventory 1.8 (1.4)
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