Slide 1: LivaNova: Health innovation that matters
LivaNova Health innovation that matters Jeremy, VNS Therapy Patient
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 1Q 2020 Highlights Financial Results Guidance Summary 4
Slide 5: 1Q 2020 Highlights
1Q 2020 Highlights
Slide 6: 1Q 2020 Highlights
1Q 2020 Highlights Meaningful innovation and execution to deliver results Cardiopulmonary • The FDA granted permission to use several cardiovascular products in the U.S. for ECMO therapy greater than six hours to temporarily expand the availability of devices to address COVID-19. Products include: S
Slide 7: Financial Results
Financial Results
Slide 8: 1Q 2020 Financial Summary
1Q 2020 Financial Summary 1Q19 1Q20 69.3% 68.3% $250.8 $242.4 41.6% 42.8% 12.9% 16.9% $0.54 14.7% 8.7% $0.33 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 o
Slide 9: 1Q 2020 Net Sales
1Q 2020 Net Sales Vagus Nerve Stimulation Therapy $242M 76% Cardiopulmonary (CP) (VNS Therapy) 1.8% decrease* Heart-lung machines (HLM) Oxygenators Drug-Resistant Epilepsy (DRE) Autotransfusion systems (ATS) Difficult-to-Treat Depression (DTD) Cannulae Heart Failure (HF) Hypoglossal Nerve Stimulatio
Slide 10: 1Q 2020 Cardiovascular Sales
Heart Valves 1Q 2020 Cardiovascular Sales Cardiopulmonary Advanced Circulatory Support Net Sales ($M)* Drivers/Impacts (0.2%) + ACS grew 27% related to Protek Duo and TandemLung $155.5 $152.1 respiratory support kits 8.2 27.3% 10.5 25.7 0.6% + Low-single digit oxygenator growth driven by strong 25.2
Slide 11: 1Q 2020 Neuromodulation Sales
1Q 2020 Neuromodulation Sales Net Sales ($M)* Drivers/Impacts (4.6%) - All regions were tracking to mid-to-high single digit $94.6 growth until mid-March when we saw a steep drop in new $89.7 patient implants related to COVID-19 + Europe grew 3% led by strong growth in the U.K. and Germany while we
Slide 12: 1Q 2020 Adjusted EPS from Continuing Operations
1Q 2020 Adjusted EPS from Continuing Operations* Reconciliation of GAAP EPS to Adjusted EPS $0.02 $0.16 $0.19 $0.03 $0.07 ($0.15) $0.79 $0.05 $0.33 ($0.84) GAAP Merger Restructuring Depreciation Product Non-recurring Stock-based Certain Certain Adjusted Financial and Expenses and Remediation Legal a
Slide 13: 2020 Guidance
2020 Guidance 13
Slide 14: Updated Guidance from Continuing Operations
Updated Guidance from Continuing Operations We expect the primary impact of COVID-19 to occur in 2Q 2020 Original 2020 Revised 2020 2Q 2020 Worldwide net sales growth (1) 3% - 5% (17%) - (7%) (45%) - (30%) Gross profit percent (1) 70% - 71% 66% - 68% 61.5% - 62.5% R&D (1) 14% - 15% 14.5% - 15.5% 17.
Slide 15: Summary
Summary 15
Slide 16: 1Q 2020 Summary
1Q 2020 Summary • 1.8% sales decline related to COVID-19, which started to impact our Rest of World region in mid-February, followed by Europe in early March and the FINANCIAL U.S. in mid-March • 100 basis points gross margin decline from mix of lower Neuromodulation sales related to COVID-19 • Diff
Slide 17: Revised Assumptions for 2020
Revised Assumptions for 2020 • COVID-19 to have a pronounced impact on sales in 2Q and the full year 7%-17% REVENUE • U.S. Epilepsy surgeries expected to see the largest decline in 2Q, improving in 2H Decline • LifeSPARC commercialization expected to deliver at least 30% ACS growth in 2020 • Execute
Slide 18: Appendix
Appendix 18
Slide 19: Net Sales - Comparison of Actual Results to Constant Currency
Net Sales - Comparison of Actual Results to Constant Currency - Unaudited $ in millions Three months ended Constant- March 31, % Change Currency Business / Product Line: 2020 2019 % Change Cardiopulmonary $116.4 $121.6 (4.3%) (2.2%) Heart Valves 25.2 25.7 (1.8%) 0.6% Advanced Circulatory Support 10.
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 Depreciation Non-recurring Merger and and Product Legal and Stock-based GAAP Integration Restructuring Amortization Reme
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 Non-recurring Legal and Merger and Depreciation and Product Contingent Stock-based GAAP Integration Restructuring Amorti
Slide 22: 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 first-quarter 2020 press release and during the conference call held in conjuncti
Slide 23: www.livanova.com
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