Inogen, Inc · NASDAQ:INGN

Inogen — Investor Presentation (January 2017)

21 slides from Inogen's investor presentation, Jan 9, 2017

  1. Slide 1: Company Overview January 2017

    Company Overview January 2017 Exhibit 99.2

  2. Slide 2: Notice regarding forward-looking statements

    Notice regarding forward-looking statements These slides and the accompanying oral presentation (the “Presentation”) include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on current expectations, estimates and projections based

  3. Slide 3: Inogen POC offers freedom and mobility

    Inogen POC offers freedom and mobility Stationary oxygen concentrator + Regular oxygen tank delivery Delivery Model Inogen Model 2.8 pounds (single battery) Run time up to 5 hours with a double battery A/C adaptable Conforms to all applicable FAA requirements Suitable for overnight use Portable oxyg

  4. Slide 4: Traditional O2 therapy challenged by market dynamics

    Traditional O2 therapy challenged by market dynamics Traditional O2 P Inogen Cost effective Maximizes mobility P P O O O Relevance today Large reimbursement cuts implemented July 2013, January 2016, and July 2016 Oxygen delivery has high fixed and variable costs Ambulatory O2 à 2x survival; 60% fewe

  5. Slide 5: Large, growing addressable oxygen market opportunity in beginning stages of POC adoption

    Large, growing addressable oxygen market opportunity in beginning stages of POC adoption Large market opportunity & high growth POCs small but fastest-growing segment of the market3 Note 1: Wintergreen Research Report, 2015 Note 2: U.S. Department of Health National Heart, Lung, and Blood Institute

  6. Slide 6: Product performance drives leadership position

    Product performance drives leadership position Ultra Light weight POC Light weight POC High capacity POC Inogen One G4™ Inogen One G3® I Inogen One G2® Retail Price $2,495+ $2,495+ $2,495+ O2 capacity 630 ml/min 1,050 ml/min 1,260 ml/min Overnight ü ü ü Single Solution ü ü ü User Replaceable Batteri

  7. Slide 7: Building the Inogen brand

    Building the Inogen brand Targeted advertising Consumer preference Domestic direct-to-consumer sales ($M) Domestic business-to-business sales ($M) +49.6% YOY +42.3% POP +78.0% YOY +62.7% POP ($M) Founded in patient preference

  8. Slide 8: B2B sales & distribution diversifies revenue

    B2B sales & distribution diversifies revenue Sales in 45 countries Growing worldwide demand 2015 Revenue: $159.0M Q1-Q3 2016 Revenue: $152.0M Medicare 21.0% Europe 19.8% Medicare 12.5% Europe 22.8%

  9. Slide 9: Track record of growth

    Track record of growth Revenue ($M) CAGR: 47.0% *2016 estimated revenue of $196M based on the midpoint of guidance provided in the Company’s press release dated December 6, 2016 of $194M - $198M. 2017 estimated revenue of $233M based on the midpoint of guidance provided in the Company’s press releas

  10. Slide 10: Growth with strong margins

    Growth with strong margins Gross profit ($M) Gross Margin % By Category 2014 2015 Q1-Q3 2015 Q1-Q3 2016 49.3% 48.0% 47.4% 47.8% Gross Margin % 2014 2015 Q1-Q3 2015 Q1-Q3 2016 47.1% 45.8% 45.1% 49.2% 53.5% 53.3% 53.2% 41.2% Sales Rental +37.4% YOY

  11. Slide 11: Growth with strong margins

    Growth with strong margins Reconciliation of these non-GAAP measures to GAAP net income is provided in the appendix of this presentation. For future periods, we are unable to provide a reconciliation of these non-GAAP financial measures without unreasonable effort due to the inherent uncertainty and

  12. Slide 12: Balance sheet overview

    Balance sheet overview [Insert object title] Summary as of September 30, 2016 Cash, cash equivalents & marketable securities on hand $108.3M Debt $0.1M No additional capital requirements to meet plan* Positive Cash Flow* Maximizes flexibility* 2016 & 2017 Expectations *2016 and 2017 expectations are

  13. Slide 13: Multiple avenues to drive future growth

    Multiple avenues to drive future growth Expansion of direct-to-consumer network Increase B2B distribution (domestic & international) Growth in physician referrals Negotiate private payor contracts 177 inside sales reps* 24 people in clinical, 80 in billing, 28 in patient customer support & service*

  14. Slide 14: Company highlights

    Company highlights Market leader in large, growing, underpenetrated market DTC model enables innovation and customer access Differentiated product portfolio with commitment to R&D Seasoned management team with proven track record Attractive financial profile

  15. Slide 15: Proprietary and

    Proprietary and Confidential

  16. Slide 16: Significant Intellectual Property

    Significant Intellectual Property 30 U.S. patents & 1 Canadian patent issued System design and assembly Control algorithms Advanced technologies Sieve bed life prediction 2 pending U.S. patents User replaceable sieve beds Product differentiation Long-term protection of existing portfolio Reliability

  17. Slide 17: Average non-delivery ambulatory monthly rates

    Average non-delivery ambulatory monthly rates $233 $136 $134 2016 rental revenue estimated to decline approximately 25-30% compared to 2015* Track record of total revenue growth despite reimbursement cuts We believe lower reimbursement rates will drive conversion to non-delivery solutions December 2

  18. Slide 18: Inogen At Home: Continuous innovation to stay at the forefront of customer preference

    Inogen At Home Continuous innovation to stay at the forefront of customer preference Oct-04 Release Inogen One Inogen One G2 Inogen One G3 Sep-12 Release 32% lighter than G2 Nov-13 Update Oct-14 Release Dec-15 Update Pipeline Customer Preference Low Service Cost Low Cost to Own Jun-06 Update Apr-09

  19. Slide 19: Key regulatory approvals

    510(k) clearance by the FDA FDA registered manufacturing facilities FAA approval for use on commercial aircraft Certified for European ISO 13485 for design, development, production of oxygen concentrators and accessories Licensed to sell directly to patients & bill Medicare in 49 states & District o

  20. Slide 20: A proven team built for success

    A proven team built for success Ray Huggenberger* Chief Executive Officer, BOD Member Ali Bauerlein Chief Financial Officer Scott Wilkinson* President, Chief Operating Officer, BOD Member 10 years with Sunrise Medical Inc., President & COO from ‘02 to ’04 Spinoff of German TA Healthcare division and

  21. Slide 21: Appendix – GAAP to Non-GAAP Reconciliation

    Appendix – GAAP to Non-GAAP Reconciliation Year Ended December 31, Nine Months Ended September 30, (In Thousands) 2015 2014 2016 2015 Net Income (U.S. GAAP): $11,585 $6,826 $10,962 $7,727 Non-GAAP adjustments: Interest income (102) (42) (126) (66) Interest expense 22 449 6 18 Provision for income ta

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