Invacare — Investor Presentation (September 2012)
34 slides from Invacare's investor presentation, September 2012
Slide 1: 2012 Investor Presentation
Invacare Corporation (NYSE: IVC) 2012 Investor Presentation 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This press release contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Terms such as “will,” “should,” “could,” “plan,” “intend,” “expect,” “continue,” “believe” and “anticipate,” as wel
Slide 3: Invacare Corporation: Integral Part Of The Continuum Of Care
Invacare Corporation: Integral Part Of The Continuum Of Care Invacare Corporation, the world’s largest manufacturer and distributor of home and long-term care medical devices, participates in markets with strong underlying fundamentals: positive demographic trends and the compelling benefits of ho
Slide 4: Invacare Corporation – Market Leader
Invacare Corporation – Market Leader $1.8 billion company (NYSE: IVC) selling to over 25,000 home medical equipment and long-term care providers worldwide. Five primary product groups: Mobility & Seating Products Lifestyle Products Respiratory Therapy Products Medical Supplies Continui
Slide 5: Diverse Product Portfolio
Diverse Product Portfolio Sales by Product – (12/31/11) Continuing Care / Other Lifestyle 11% 34% Mobility & Seating 29% Medical Supplies Respiratory Therapy 17% 9% 5
Slide 6: Industry Leading Worldwide Market Positions
Industry Leading Worldwide Market Positions We are the #1 player in most product lines Handi- Res- Invacare Sunrise* AirSep* Pride* Drive* Medline* care* Permobil* pironics Powered Mobility #1 #2 (excluding scooters) Manual Mobility #1 #2 (active) Manual Mobility #1 (low-active) Personal Care #1 B
Slide 7: Geographically Diverse
Geographically Diverse Sales & Earnings Before Taxes by Geography - (12/31/11) Europe* 30% of Sales 33% of EBT North America 65% of Sales 63% of EBT Asia / Pacific 5% of Sales 4% of EBT Based on 2011 segment data as reported in year-end February 2, 2012. EBT excludes restructuring, asset impairment
Slide 8: Global Product Innovator
Global Product Innovator Invacare® Solo2® Invacare® XPO2™ Portable Transportable Oxygen Invacare® HomeFill® Oxygen Concentrator Concentrator System with Perfecto2® Oxygen Concentrator and M2 Cylinder Invacare® Action™ Manual Wheelchair Invacare® FDX® Power Wheelchair 8
Slide 9: Expanding Opportunities In Long-Term Care
Expanding Opportunities In Long-Term Care The Company continues to expand beyond long-term care equipment and now has a comprehensive offering for these customers: Long-term Care Equipment Solutions – The Company now has a national rental footprint in the United States, which strategically enhan
Slide 10: Consent Decree Status
Consent Decree Status A Consent Decree of Injunction is a court order confirming an agreement between a company and the United States Food and Drug Administration (FDA) to address specific changes the Agency requires thereby ensuring that the company is meeting FDA regulatory requirements. On De
Slide 11: Quality Systems Remediation
Quality Systems Remediation Since early 2011, Invacare has been working with third party experts to enhance and transform its quality systems to ensure full compliance with the FDA’s 21 CFR Part 820 Quality System Regulation. In December 2011, Doug Uelmen joined the Company as Senior Vice Presid
Slide 12: Historic Results
Historic Results 2008 2009 2010 2011 Organic Growth 7% -0.2% 1% 1.7% Adjusted EPS(1): Target / Actual $1.35(2) $1.58(2) $1.84(2) $2.05(2) 21% 17% 16% 11% % Incr. vs Prior Year Free Cash Flow(1) $60 million $142 million $105 million $81 million (1) Adjusted EPS and Free Cash Flow are non-GAAP financi
Slide 13: Focus - Long Term Objectives
Focus - Long Term Objectives Return to 4 – 5% Organic Net Sales Growth Expand our core business – Maximize existing product categories within existing geographies. Increase spending in research and development through globalization reinvestment. Explore new business opportunities beyond our tr
Slide 14: Globalization - Timeline
Globalization - Timeline Achieve $100 Million 2015 Execute 2011 - 2014 Realign 2010 Over the course of the five year Visioning program, where does the $100 million 2009 benefit come from? Grow the Core Cost Out Operational & Lean 14 SG&A
Slide 15: Globalization - Transformation Cycle
Globalization - Transformation Cycle Product Engineering $100M Commercial Operations Supply Chain Local Global Transform 2009 2015 15
Slide 16: Investment Highlights
Investment Highlights Invacare participates in markets with strong underlying fundamentals Positive demographic trends Compelling benefits of post-acute care as opposed to institutional care And in these markets, Invacare is a well positioned company … Industry leading market positions Stron
Slide 17: Appendix A: Innovative Products
Appendix A: Innovative Products 17
Slide 18: Evolution Of Portable Oxygen
Evolution Of Portable Oxygen When a consumer wanted to be active and needed oxygen, they had to resort to e-tanks that are large, bulky and had to be pulled behind them. Providers had a large inventory of tanks that they kept in their warehouse and had to deliver weekly to oxygen patients. New porta
Slide 19: Invacare HomeFill Oxygen System And Perfecto2 Concentrator
Invacare® HomeFill® Oxygen System And Invacare® Perfecto2™ Concentrator ® HomeFill Oxygen System HomeFill oxygen system has substantial share of transfilling segment, but only 18% (approximately) penetration to date To date, have sold over 200,000 HomeFill systems Perfecto2™ Oxygen Concentrator
Slide 20: Invacare XPO2 Portable Concentrator
Invacare® XPO2™ Portable Concentrator Weighs six pounds Quiet, simple operation Contemporary, non-medical look Exclusive, long life compressor and patent-pending, integrated conserver are designed to provide pulse dose delivery of oxygen Dimensions 10”H x 7”W x 4”D FAA Approved 20
Slide 21: Invacare Solo2 Transportable Oxygen Concentrator
Invacare® Solo2™ Transportable Oxygen Concentrator Continuous flow at 1-3 LPM Pulse dose at settings 1-5 Runs on AC, DC or battery power Small, quiet and reliable Gives patients the freedom to go just about anywhere without the fear of running out of oxygen FAA Approved 21
Slide 22: New Product: Invacare FDX
New Product: Invacare® FDX® Front-Wheel Drive Power Chair First global power wheelchair platform from Invacare. Front-wheel drive power wheelchair Features G-trac™ Electronic Gyroscope Module (keeps chairs on straight path when encountering rough terrain) Features MK6i™ electronics color dis
Slide 23: Appendix B: Home Care Industry Overview
Appendix B: Home Care Industry Overview 23
Slide 24: Positive Demographic Trends Driving Home Care
Positive Demographic Trends Driving Home Care The durable medical equipment (“DME”) industry will continue to experience favorable demographics due to the aging of the U.S. population The number of Americans aged 65 or older is expected to increase to approximately 40 million by 2010, approximat
Slide 25: Home Health Saves Medicare Billions
Home Health Saves Medicare Billions Patients with at least one chronic disease (diabetes, COPD, or congestive heart failure) who used home health care within three months of being discharged from a hospital saved Medicare $1.7 billion over a two-year period. In addition, these patients had 24,00
Slide 26: Long-Term Growth In DME Expenditures In U.S.
Long-Term Growth In DME Expenditures In U.S. The healthcare industry in the U.S. is a large, growing segment of the economy, and the DME sector represents a significant sub-segment of this industry According to the CMS, national health spending increased from 9.1% of GDP, or $255 billion, in 198
Slide 27: Benefits Of Home Care
Benefits Of Home Care Home care is a major part of the solution to rising costs of Medicare and Medicaid Patients U.S. Veterans Administration - Portland, OR : “Project at Home” Prefer 75% of eligible patients chose to receive treatment at home versus Home hospital admission. Care Vermont has
Slide 28: Appendix C: Historical Financial Review
Appendix C: Historical Financial Review 28
Slide 29: Historical Revenues And EPS
Historical Revenues And EPS (1) Historical Revenue Historical Adjusted EPS $2,000 $2.50 $1,755.7 $1,693.1 $1,722.1 $1,807.1 $1,800 $1.84 $1,602.2 $2.05 $1,529.7 $1,498.0 $1.84 $1,600 $2.00 $1.66 $1,400 $1.58 $1,200 $1.50 $1.35 (2) $1.18 $1.12 $1,000 (2) $800 $1.00 $600 $400 $0.50 $200 $0 $0.00 2005
Slide 30: Appendix D: Reimbursement & Government Issues
Appendix D: Reimbursement & Government Issues 30
Slide 31: U.S. Reimbursement Changes
U.S. Reimbursement Changes National Competitive Bidding – home medical equipment providers bid on select product categories. Winners earn the right to continue soliciting referral sources for Medicare patients and billing Medicare for their services. Winning the bid does not guarantee patient volu
Slide 32: Invacare: NCB Action Plan
Invacare: NCB Action Plan Invacare is actively managing the credit risk associated with NCB. Invacare is uniquely positioned to help its customers survive National Competitive Bidding. As the largest and most diversified manufacturer in the industry, the Company has developed a marketing program
Slide 33: Medicare / Medicaid Audits
Medicare / Medicaid Audits The entire Healthcare space is currently experiencing an increase in the volume and intensity of CMS claim audits. Home medical equipment providers are most impacted by the following: Pre-payment and post-payment audits across of variety of DME HCPCS codes, including o
Slide 34: U.S. Healthcare Reform
U.S. Healthcare Reform The U.S. Health Care Reform bill includes a new tax on U.S. sales of medical device manufacturers or importers, such as Invacare: The law would impose a yearly 2.3% sales-based or excise tax on medical device manufacturers or importers starting January 1, 2013. Tax appli