LivaNova PLC · NASDAQ:LIVN
LivaNova — Berenberg European Heart Valves Conference 2017
27 slides from LivaNova's conference presentation, Dec 6, 2017
Slide 1: Berenberg European Heart Valves Conference 2017
NEUROMODULATION Berenberg European Heart Valves Conference 2017 December 6, 2017 CARDIAC SURGERY
Slide 2: Safe Harbor Statement – Forward Looking Statements
Safe Harbor Statement – Forward Looking Statements 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
Slide 3: Safe Harbor Statement – Intellectual Property
Safe Harbor Statement – Intellectual Property In this presentation, “LivaNova,” “the Company,” “we,” “us” and “our” refer to LivaNova PLC and its consolidated subsidiaries. This report may contain references to our proprietary intellectual property, including among others: • Trademarks for our VNS t
Slide 4: Strategy – Damien McDonald, Chief Executive Officer
Strategy Damien McDonald Chief Executive Officer
Slide 5: We are a $1.2B focused medical innovator
We are a $1.2B focused medical innovator Strong leadership Targeting underserved Improving quality of position in and high-growth patients’ lives Neuromodulation and market segments Cardiac Surgery 5
Slide 6: Leading positions in critical areas of treatment
Leading positions in critical areas of treatment Sales through third quarter 2017 Total: $916M 80% Vagus Nerve Stimulation Cardiopulmonary (CP) (VNS Therapy®) Drug Resistant Epilepsy Heart-lung machines (HLM) Treatment Resistant Depression 30% Oxygenators Neuromodulation Autotransfusion systems (ATS
Slide 7: Transforming the company with a sense of urgency
Transforming the company with a sense of urgency Divesting CRM business unlocks significant shareholder value Great outcome for all stakeholders; the result of a thorough and competitive process Allows company to focus on faster-growing and more profitable areas LivaNova: An Improves top-line growth
Slide 8: Focusing portfolio on “Head & Heart”
Focusing portfolio on “Head & Heart” CARDIAC SURGERY NEUROMODULATION CARDIOPULMONARY HEART VALVES Creator, leader of VNS Only sutureless valve on Market-leading positions Therapy the market Global Market $4.1B $2.0B $1.7B (2016)* Market Growth Low-double-digit Low-single-digit Low-single-digit Sales
Slide 9: Our portfolio has multiple near-term growth drivers
Our portfolio has multiple near-term growth drivers… NEUROMODULATION CARDIAC SURGERY Perceval® optimizes the S5® HLM reduces Inspire® oxygenator surgical approach to SenTiva™ advances the transfusions and provides personalized sutureless aortic science of VNS Therapy improves recovery perfusion valv
Slide 10: Multiple mid- to long-term growth drivers: strategic portfolio initiatives
Our portfolio has multiple mid- to long-term growth drivers: strategic portfolio initiatives TRANSCATHETER MITRAL TREATMENT-RESISTANT HEART FAILURE VALVE REPLACEMENT DEPRESSION (TRD) (HF) (TMVR) Novel delivery of Autonomic VNS Therapy may provide Unique transseptal Regulation Therapy (ART) may bette
Slide 11: M&A strategy targets growth and margin expansion
M&A strategy targets growth and margin expansion TMVR & HF: High- mainly growth single- potential HF digit TMVR Neuromodulation: Growth Mid- NM margin and growth potential single- digit Cardiac Surgery: Low- mainly margin CS single- expansion digit Profitability improvement Illustrative only and not
Slide 12: VNS: Leveraging the technology
VNS: Leveraging the technology A universal platform is the foundation for additional indications Psychiatric Disorders VNS for Chronic VNS for Heart Failure Epilepsy Patient Data and analytics Movement Universal Rheumatoid clinician Disorders Platform Arthritis and diagnostic processing tools Genito
Slide 13: Implantable Therapy for Obstructive Sleep Apnea (OSA)
Implantable Therapy for Obstructive Sleep Apnea (OSA) Obstructive Sleep Apnea (OSA) is a disorder in which breathing repeatedly stops and starts due to the throat muscles relaxing and blocking the airway during sleep Illustration Overview Stimulation expands • Restoration of normal sleep patterns th
Slide 14: Significant unmet clinical need for patients who stop or refuse CPAP
Significant unmet clinical need for the approximately 40-50% of OSA patients who stop or refuse CPAP US Prevalence of Obstructive Sleep Apnea ~44M Moderate to Severe ~16M Referral Gap Diagnosed ~9M Treated with CPAP ~4M Treatment Gap Treated HGNS ~1M Potential Patients Source: Health Advances. HGNS
Slide 15: Obstructive Sleep Apnea - ImThera Rationale
Obstructive Sleep Apnea - ImThera Rationale • Opportunity to disrupt current treatment paradigm and fill significant unmet clinical need for new therapy: Market Potential - 50% of OSA patients stop or refuse CPAP - U.S. CPAP market estimated at $4 billion annually, growing low- to mid-double digit •
Slide 16: Financials – Thad Huston, Chief Financial Officer
Financials Thad Huston Chief Financial Officer
Slide 17: Clear roadmap for value creation
Clear roadmap for value creation 2017-2018 2019-2020 2021+ Invest & Grow Accelerate Growth Positioned for Success • Global leader in VNS Therapy • Operational excellence • Global leader in cardiopulmonary • Global expansion of VNS • Global leader in sutureless valves Therapy leadership • Increasing
Slide 18: Building a strong future through top line growth
Building a strong future through top line growth 2017-2022 CAGR Mid- Mid- to High- single-digit high- single-digit single-digit M&A SPI* Neuromodulation High-single-digit Cardiac Surgery Low-single-digit 2017E 2022E SPI = Strategic Portfolio Initiatives, which include Transcatheter Mitral Valve Repl
Slide 19: Expanding our gross margins
Expanding our gross margins Gross margin* as a percentage of revenues 70%+ Mid 60% 2017E Price Lean Business SKU Inflation / FX 2022E Manufacturing Mix Rationalization * Gross margin is an adjusted non-GAAP measure; all numbers include CRM business 19
Slide 20: Expanding operating margins
Expanding operating margins Operating income* as percentage of revenues 20%+ Gross margin expansion High- teens SG&A reduction R&D investment 2017E 2022E * Operating Income is an adjusted non-GAAP measure; all numbers include CRM business 20
Slide 21: Projecting strong growth in earnings per share
Projecting strong growth in earnings per share 2017 - 2022 CAGR Low- to EPS* mid-teens * EPS is an adjusted non-GAAP measure; all numbers include CRM business 21
Slide 22: Focused capital allocation strategy
Focused capital allocation strategy PRIORITIES Organic growth Liquidity to support the strategy Investment Capital enhancements Capital structure that adapts to business needs Focused M&A on core competencies Operating CF Drive increased shareholder returns Share repurchase program Target leverage*
Slide 23: Driving shareholder value creation
Driving shareholder value creation • Large, globally expanding markets REVENUE Mid- to high- • Broad geographic presence GROWTH single-digit CAGR • Accelerating growth through execution, innovation and M&A • Executing initiatives to improve profitability EPS Low- to mid- • R&D investments drive futu
Slide 24: LivaNova – Health innovation that matters
| ivaNova Health innovation that matters 24
Slide 25: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) * Numbers may not add up precisely due to rounding 25
Slide 26: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) * Numbers may not add up precisely due to rounding 26
Slide 27: LivaNova – Health innovation that matters
| ivaNova Health innovation that matters 27
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