Slide 1: Second Quarter 2019 Earnings Performance
Second Quarter 2019 Earnings Performance July 31, 2019 1
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation, other than purely historical information, 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 Securities Exchange Act of 1934, as ame
Slide 3: Intellectual Property
Intellectual Property 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 (Pulse®), Model 102R (Pulse Duo®
Slide 4: Agenda
Agenda 2Q19 Highlights Financial Results Guidance Summary 4
Slide 5: 2Q19 Highlights
2Q19 Highlights
Slide 6: 2Q19 Highlights
2Q19 Highlights Focused execution to deliver 2019 commitments u Corporate: – On June 18, we welcomed Stacy Enxing Seng to our Board. u Neuromodulation: – On July 11, we celebrated the 25th anniversary of VNS Therapy, which has treated more than 120,000 patients worldwide. u Cardiovascular: – On June
Slide 7: LifeSPARC – the next generation of Advanced Circulatory Support
LifeSPARC – the next generation of Advanced Circulatory Support Life support simplified. For more patients, in more places. Millions of patients are affected by cardiac and respiratory disease each year. Historically only a fraction of those patients have received ACS due to the complexity of the de
Slide 8: Financial Results
Financial Results
Slide 9: 2Q19 Financial Summary
2Q19 Financial Summary 2Q18 2Q19 69.3% 68.3% $287M $0.96 $277M 39.0% 36.2% 20.8% $0.70 14.3% 11.3% 15.9% Net sales Adjusted Gross Adjusted SG&A* Adjusted R&D* Adjusted operating Adjusted diluted profit percent* margin* EPS* * Adjusted gross profit percent, adjusted SG&A, adjusted R&D, adjusted opera
Slide 10: 2Q19 Net Sales
2Q19 Net Sales Vagus Nerve Stimulation Therapy $277M 76% Cardiopulmonary (CP) (VNS Therapy) 1.0% decrease* Heart-lung machines (HLM) Drug-Resistant Epilepsy (DRE) Oxygenators Treatment-Resistant Depression (TRD) Autotransfusion systems (ATS) Cannulae Heart Failure (HF) Hypoglossal Nerve Stimulation
Slide 11: 2Q19 Cardiovascular Sales
Heart Valves 2Q19 Cardiovascular Sales Cardiopulmonary Advanced Circulatory Support Net Sales ($M)* Drivers/Impacts 1.2% + Healthy HLM growth due to continued S3 $176.5 $172.2 6.0 38.3% 8.3 conversions and competitive placements 33.8 33.4 4.6% + Advanced Circulatory Support sales reached nearly 40%
Slide 12: 2Q19 Neuromodulation Sales
2Q19 Neuromodulation Sales Net Sales ($M)* Drivers/Impacts (4.8%) $110.7 $104.3 - Competitive pressures and sales force turnover stabilized in the U.S. + Nearly 20% growth in Rest of World through the continued expansion of commercial capabilities + SenTiva VNS Therapy System now 53% of generator sa
Slide 13: 2Q19 Adjusted EPS from Continuing Operations
2Q19 Adjusted EPS from Continuing Operations* Reconciliation of GAAP EPS to Adjusted EPS $0.22 $0.03 $0.70 $0.07 $0.01 $0.80 $0.14 ($0.20) $0.15 $0.07 $0.02 $(0.61) GAAP Merger Restructuring Depreciation Impairments Product Acquisition Non-recurring Stock-based Certain Certain Adjusted Financial and
Slide 14: 2019 Guidance
2019 Guidance 14
Slide 15: 2019 Guidance from Continuing Operations
2019 Guidance from Continuing Operations Including impact of TRD investment and Canadian distribution agreement exit Guidance as of May 1, 2019 Worldwide net sales growth (1) 1% - 3% Gross profit percent (1) 68.5% - 69.5% R&D (1) 13.5% - 14.0% SG&A (1) 38% - 39% Operating margin (1) 16% -17% Effecti
Slide 16: Summary
Summary 16
Slide 17: 2Q19 Summary
2Q19 Summary • Strong growth in Europe and Rest of World Neuromodulation and worldwide FINANCIAL Cardiovascular GROWTH • 100 basis points gross margin improvement due to favorable mix, price and operational efficiencies • Investments in our clinical and commercial capabilities for VNS Therapy for ST
Slide 18: Appendix
Appendix 18
Slide 19: 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 Non-recurring Merger and and Product Legal, Contingent Stock-based GAAP Integration Restructuring Amortizati
Slide 20: 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 Non-recurring Merger and Depreciation and Product CRM Legal and Stock-based GAAP Integration Restructuring Amortization R
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations The preceding 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 second-quarter 2019 press release and during the conference call held in conjunct
Slide 22: www.livanova.com
LivaNova Health innovation that matters WSS BEARSQOXXXSQS . BAALAVSOVrse BRANNAN BRRNLALLYYEOSS BZ BBWBVI~7~oeeeree mBBBWRWWAVYYL OLE. @ BBWRNSWANVAOE™ ee @BWRWNWWANYL OOS eee SSW WN WOO ae ee . SAAN RR SAAN SSW RNR RRS al sSNA NN NS a wa / / J/ analytic www.livanova.com