Invacare — Shareholder Meeting (May 2017)
15 slides from Invacare's shareholder meeting presentation, May 18, 2017
Slide 1: Invacare Corporation 2017 Shareholder Meeting
Invacare Corporation (NYSE:IVC) 2017 Shareholder Meeting Matthew E. Monaghan Chairman, President and CEO IVC02/09/17 Shareholder 05/18/17 Webcast Slides May 18, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that describe future outcomes or expectations that are usually identified
Slide 3: About Invacare Corporation (NYSE: IVC)
About Invacare Corporation (NYSE: IVC) • Global Headquarters in Elyria, Ohio • 2016 revenues of $1.0 billion • Design, manufacture and distribute non-acute durable medical equipment • Primarily distribute to home medical equipment providers, rehabilitation facilities and residential care providers i
Slide 4: Solutions Across The Continuum Of Care
Solutions Across The Continuum Of Care Providing essential clinical solutions for broad range of conditions Solution Areas Move Breathe Rest & Hygiene Conditions Congenital Acquired Degenerative Stroke Multiple Sclerosis Cerebral Palsy Spinal Cord Injury ALS Muscular Dystrophy Traumatic Brain Injury
Slide 5: Market Transformation Driving Strategic Shift
Market Transformation Driving Strategic Shift Focusing on greater clinical value contributes to profitable growth 1. Historically – a larger intersection of demand for features across full range of products, e.g. durability and features valued across product range. Invacare’s one-stop-shop strategy
Slide 6: Invacare's Value: 24 Hours Of Continuous Clinical Care
Invacare’s Value: 24 Hours Of Continuous Clinical Care Complex Rehabilitation Post Acute Care Respiratory IVC Shareholder 05/18/17 6
Slide 7: Invacare's Value: 24 Hours Of Continuous Clinical Care
Invacare’s Value: 24 Hours Of Continuous Clinical Care Providing innovative products for complex clinical solutions Premium hygiene solutions Wound management & safe rest with therapeutic support surfaces 24 Transfers with safe Rest patient handling 24 Hygiene 18 hours of 6 Advanced power Clinical C
Slide 8: Business Changes To Emphasize Market Needs
Business Changes To Emphasize Market Needs Shifting the company’s focus toward clinically complex solutions Products by APAC (4%) Other Profitability drivers from: • Evolving mix expansion with Europe greater clinical value (52%) • Efficiency improvements Total Sales Profitability drivers from: Life
Slide 9: Transformation
Transformation Leverage the company’s strong technical capabilities for solving complex clinical needs to generate better returns for re-investment and growth 2015 2019+ Phase One – Assess and Reorient Strengthened balance sheet Phase Two – Build and Align Developed and expanded talent Leverag
Slide 10: Key Indicators Of Transformation
Key Indicators Of Transformation As our transformation progresses, we expect to see the following trends: Phases 1 & 2 Phase 3 • Revenue: Reshaping revenue, reducing aids for daily living (ADL) then growing clinically complex products (CCP) • Gross Margin: Shifting mix where innovation % $ drives ma
Slide 11: Phase One Accomplishments
Phase One Accomplishments Substantial progress through 4Q2016; more work continues in North America Goals Accomplishments $48.3 million debt at 12/31/15, ABL facility, divestiture of rentals businesses. Strengthen balance sheet 4Q16 $72.3 million net debt Convertible debt transaction on 2/17/16
Slide 12: Phase Two Objectives
Phase Two Objectives Beginning to shift into Phase Two Activities in 2017 Build and Align Accomplishments NA Kuschall active manual New products and wheelchairs PinDot CLIP 3D imaging system Launch new clinical programs entering Cruise Mode upgrade on Alber Matrx MX2 back cushion product pla
Slide 13: Recent Performance - Key Expectations
Recent Performance - Key Expectations Key indicators of the transformation Phase 1 and 2 Indicators Q415 Q116 Q216 Q316 Q416 Q117 Constant Currency Net (1.8)% (4.8)% (1.6)% (4.5)% (8.1)% (4.4)% Sales(a)(b)(c) Gross Margin Percentage % +190 bps +90 bps +120 bps +/- 0 -60 bps +180 bps of Net Sales(a)(
Slide 14: Looking Forward
Looking Forward Transformation is the framework for strong future Key Objectives Phase 3 Expected Results Constant Currency Net Sales > $1.1 billion Growth Targets > Market Gross Profit > 30% SG&A Mid-20s% Operating Margin ≥ Upper single-digits EBITDA > $100 million IVC Shareholder 05/18/17 14
Slide 15: Questions?
Questions? IVC02/09/17 Shareholder 05/18/17 Webcast Slides