(NYSE: IVC) Investor Presentation - May 23, 2022 - Invacare Corporation
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I N VA C A R E C O R P O R AT I O N
Investor Presentation
(NYSE: IVC)
May 23, 2022
I N VA C A R E C O R P O R AT I O N 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 by words such as “will,” “should,” “could,” “plan,” “intend,” “expect,” “continue,”
“forecast,” “believe,” and “anticipate” and include, for example, any statement made regarding the company's future
results, financial condition and the impact of COVID-19. Actual results may differ materially as a result of various risks
and uncertainties, including those expressed in the cautionary statements and Risk Factors sections in the company’s
annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange
Commission. The company may not be able to predict and may have little or no control over many factors or events that
may influence its future results and, except as required by law, shall have no obligation to update any forward-looking
statements. .
Financial results presented are as of March 31, 2022, unless otherwise noted. Forward-looking information reported on
a specified date is provided herein as of such date and is not updated or reaffirmed as of a later date
hereby.
Non-GAAP Measures .
This presentation will reference certain non-GAAP financial information, including, but not limited to, Adjusted EBITDA,
constant currency net sales and free cash flow. For a description and reconciliation of non-GAAP measures presented in
this document, please refer to the March 31, 2022, earnings release. Any non-GAAP financial information is not a
substitute for, and should be read in conjunction with, GAAP financial information.
Invacare Corporation Presentation – May 23, 2022
I N VA C A R E C O R P O R AT I O N
Possible
TM
Experiences
Making Life’s
I N VA C A R E C O R P O R AT I O N
ABOUT US WHAT WE DO
Headquartered in Elyria, OH (outside of Cleveland), Invacare is a leading manufacturer and distributor in its
Invacare is proudly celebrating over 40 years of providing markets for durable medical equipment used in non-acute
clinically complex medical devices and solutions which care settings
Make Life’s Experiences Possible
The company’s medical devices and solutions are designed
The company had TTM revenue of $877M and for congenital, acquired, degenerative, conditions and help
approximately 3,000 associates worldwide as of March 31, people to move, breathe, rest and perform essential
2022 hygiene for 24-hours of care
Invacare primarily sells in Europe, North America and Asia Invacare sells its products to private and government
Pacific geographies with government / insurance-based medical equipment providers and residential care
reimbursement systems providers
Invacare Corporation Presentation – May 23, 2022
Solutions Across The Continuum Of Care
Providing essential clinical solutions for broad range of conditions
I N VA C A R E C O R P O R AT I O N
Solution Areas (24-Hours of Care)
Move Rest Breathe Hygiene
Custom power and manual Home care and long-term care Respiratory therapy products Safe patient handling and hygiene
wheelchairs and custom seating beds and therapeutic support ▪ Stationary and portable ▪ Patient transfer and bathing
▪ Alternative drive controls and surfaces oxygen concentrators equipment for resident and
touch-screen technology ▪ Pressure relief for wound ▪ HomeFill® Oxygen systems caregiver safety
▪ Advanced power positioning healing and prevention ▪ Daily hygiene products
systems ▪ Continued pressure
monitoring
Conditions Congenital Acquired Degenerative
Stroke Multiple Sclerosis
Cerebral Palsy Spinal Cord Injury ALS
Muscular Dystrophy Traumatic Brain Injury COPD
Spina Bifida Post Acute Recovery Bariatric
Pressure Ulcers Age Related
Settings
High Acuity Invacare provides solutions outside high acuity settings Homecare
Invacare Corporation Presentation – May 23, 2022
Reported Net Sales * Broad Product Line
with High Clinical Value
I N VA C A R E C O R P O R AT I O N
$450
$409 $877
$400
Million* Lifestyle
$350
$343
Globally focused on home healthcare and post-acute care,
including aids for daily living, walking aids, patient lifts,
$300 wheelchairs, beds and sleep surfaces
(in millions)
$250
Mobility & Seating
$200
Custom power and custom manual wheelchairs, seating and
positioning systems, and power add-ons
$150
$101
$100 Respiratory
$50 Stationary concentrators and ambulatory oxygen devices such
$24 as portable concentrators and refilling devices for portable
tanks
$0
Lifestyle Mobility & Respiratory Other
Seating
Other
* TTM sales as of March 31, 2022
Services and rentals
Invacare Corporation Presentation – May 23, 2022
I N VA C A R E C O R P O R AT I O N Broad Global Presence
$340M* $32M*
$504M*
Europe (57%)* North America (39%)* Asia Pacific (4%)*
Primarily single payor reimbursement Primarily sell to durable medical Primarily target western-based
systems which appreciate durable equipment providers, equipment fleet reimbursement countries, such as
medical equipment and total lowest owners, residential care facilities and Australia and New Zealand
cost of ownership Department of Veterans Affairs
Sales and distribution facilities in
Key markets focused on Western Manufacturing facilities in the U.S., Australia, New Zealand and Thailand
Europe: France, Germany, UK, Benelux Mexico and Canada
and the Nordic countries with a smaller
presence in southern Europe
Manufacturing facilities in Germany,
France, Portugal, UK and Sweden
* TTM sales as of March 31, 2022
Invacare Corporation Presentation – May 23, 2022
I N VA C A R E C O R P O R AT I O N
Transformation
Plan Highlights
Invacare Corporation Presentation – May 23, 2022
Transformation Overview and History
Since 2017, Invacare has made significant improvement in the financial performance of the business, which has been
impacted by several external factors. As a result, the company implemented restructuring actions which delivered
I N VA C A R E C O R P O R AT I O N
improved financial results in 2019 and 2020. Pandemic–related impacts addressed by 2022 restructuring actions intended
to enhance profitability in 2022 and beyond.
Tariffs of up to 25% Global supply chain
on raw materials and Global pandemic severely restricts access to healthcare for disruptions and inflation
components sourced our customers and end users, negatively impacting sales and impact the efficient
from China profitability manufacture of products at a
reasonable cost
2019 2020 2021 2022
Reinvigorated new product portfolio to return to growth with clinical solutions. Launched front
wheel drive power wheelchair with standing capabilities which drove significant sales growth in
Implemented supply 1Q20 (pre-pandemic). Throughout the pandemic, continued to launch new products such as rear
chain changes and wheel drive power wheelchair, power add-ons, beds, lifts, and stationary oxygen concentrators
restructuring actions
which mitigated the Taking restructuring actions in 2022 to
majority of tariff improve profitability and free cash flow by
exposure, optimized narrowing the product portfolio to
the product portfolio, improve gross margin, leverage
and reduced costs technology to improve the customer
experience, and reduce costs to serve
Invacare Corporation Presentation – May 23, 2022
Transformation Accomplishments Since 2017
Area Accomplishment
I N VA C A R E C O R P O R AT I O N
Management Diversified and refreshed Board of Directors with approximately 60% of independent directors with less than 5-year
tenure as of Annual Meeting in May 2022
Hired CIO to drive modernization of IT systems and implementation of global ERP system
Enhanced North American leadership team
Strategically combined Europe/APAC under single leadership team to simplify the business and drive synergies
Re-aligned EMEA leadership team to reflect pan-European focus
Cost Optimization Executed actions which generated cost savings of approximately $44 million from 2017 to year-end 2021
Executed supply chain actions to mitigate a substantial portion of U.S. tariffs
Executing permanent actions in 2022 to evolve Invacare to address persistent market conditions in a post-Covid
environment
Product Portfolio Continue to introduce innovative new products which offer compelling clinical value
Divested non-core business units and redeployed proceeds into growing the business
Continue to optimize portfolio to drive favorable sales mix by emphasizing higher clinical value products which support
higher selling prices
Financial Significantly improved Adjusted EBITDA and Free Cash Flow
Performance
Successfully executed multiple transformative actions to reshape the
business with more to come
Invacare Corporation Presentation – May 23, 2022I N VA C A R E C O R P O R AT I O N Initiatives Accelerating Our Multi-Year Strategy to Return to Profitability
Award winning clinical solutions and full product pipeline:
✓ Launched standing power positioning system for center-, front- and rear-wheel drive power wheelchairs
with clinical and social benefits of vertical positioning, including mini version
✓ First wirelessly remote-controlled portable oxygen concentrator
✓ First with hydroforming technology that allows production of manual wheelchairs with significantly higher
performance without increased weight
✓ Invacare Ampla ActionTM bariatric wheelchair – winner of the Red Dot Award: Product Design 2019,
Platinum A’Design Award, and German Design Award 2020
Operational improvements to expand margins and accelerate profitability:
✓ Benefit of expanded standard gross margin from plant consolidations in Europe and favorable product mix
✓ Near-term margins negatively impacted by supply chain challenges including higher material, labor and
freight costs but the company has implemented actions to mitigate the impact
Modernize business with flexible IT systems to:
✓ Drive operational efficiencies
✓ Improve our customers’ experience
✓ Generate substantial cost savings over time
Invacare Corporation Presentation – May 23, 2022Innovation Pipeline Rehab (Mobility and
Seating)
Supporting sales growth with frequent introduction of clinically innovative solutions Post Acute Care (Lifestyle)
Respiratory
I N VA C A R E C O R P O R AT I O N
Jan
Ampla
bariatric
manual chair
May Mar Jul Aug
SMOOV AVIVA® FX / Clematis Pro AVIVA
One™ Power AVIVA RX tilt-in-space Storm RXTM
May Add On Power manual
E-pilot P15 Wheelchairs wheelchair
Power Add Sep
On MPS Maxx Apr Sep
Modular MPS Mini Kompas™
Power Maxx Foldable
Standing Standing Power
System System wheelchair
2018 2019 2020 2021
Apr
Invacare
Stand Assist Oct
Sep Feb
Ocean Ergo Pico Green NordBed ™
Sep
Commode eco-friendly Kid Jul
May May Platinum®
chair shower chair Platinum® P5NXG
Birdie Evo Birdie Evo Mobile®
Xplus Lifter Sep 5L stationary
Lifter concentrator
with remote Optisling oxygen
control safe patient concentrator
NordBed functionality handling
products
Invacare Corporation Presentation – May 23, 2022Track Record of Optimization
Aligning footprint with new commercial strategy and sales level
I N VA C A R E C O R P O R AT I O N
Jan 31
Kirkland, Ontario
manufacturing
facility closure; Jan 31
Headcount Headcount
reduction reduction Apr 30 Dec May
Atlanta DC Completed NA
Closure German headcount
2Q19 plant 1Q22 reduction
May 30 Dec 7
Headcount Headcount consolidation Global
Headcount
reduction 4Q18 reduction headcount
reduction
Headcount reduction
reduction
2017 2018 2019 2020 2021 2022
Jun 26 2Q18 1Q19 Mar 7
Suzhou, China Dio, Sweden
Küschall Dynamic Controls
manufacturing facility wheelchair
Switzerland wheelchair divestiture
closure announced production
production Annualized revenue
transfer to
Transfer to France $17.2M at 2019 run rate
France
$44 million in cost optimization actions executed from 2017 to year-end 2021
Additional actions to be implemented in 2022
Invacare Corporation Presentation – May 23, 2022Actions Driving Sequential Improvement in Adjusted EBITDA
Anticipated sequential
I N VA C A R E C O R P O R AT I O N
improvement in full year 2022
Expected benefit in 2022 from strategic actions taken Adjusted EBITDA compared to
1Q22 driven by:
➢ Benefit from Restructuring –
streamline and simplify the
organizational structure primarily
through headcount reductions
driven by internal efficiencies and
leveraging technology
➢ Net Pricing/Costs – effectiveness
of pricing actions net of higher
costs and other supply chain
actions
➢ Net benefit of volume – revenue
growth offset by product
rationalization
Note: values are approximate, and actuals may vary slightly by category
Actions to deliver 2022 guidance underway
Invacare Corporation Presentation – May 23, 2022I N VA C A R E C O R P O R AT I O N Business Improvement Highlights
Striving to regain market leadership
A clear roadmap to further enhance and
simplify operations
Key
Takeaways
Strong pipeline of innovative products coming
to market
Financial performance improving as a result of
these initiatives
Invacare Corporation Presentation – May 23, 2022I N VA C A R E C O R P O R AT I O N
Our Products
Invacare Corporation Presentation – May 23, 2022I N VA C A R E C O R P O R AT I O N Mobility & Seating – Custom Power and Manual
MPS Maxx and Mini Maxx Modular AVIVA® FX (U.S.) and Kuschall®
Power Standing System AVIVA RX (Europe) Power Wheelchairs Custom Manual Wheelchairs
▪ Innovative center-wheel drive ▪ Advanced seating and positioning ▪ Unique hydroforming technology
powerchair with clinical and systems resulting in a stiffer frame
social benefits of vertical without added weight
positioning ▪ Unique suspension systems
resulting in a smooth stable ride
▪ Fits fully within Group 3
reimbursement in the U.S. ▪ Standing capabilities on FWD
platform
Invacare Corporation Presentation – May 23, 2022Mobility & Seating – Electromotive Power Add-On Technology
Applying power add-on technology to new products, including recreational mobility devices and extension apps
I N VA C A R E C O R P O R AT I O N
E-Bike Drive Systems Power Hand bike Power Assist Power Assist
▪ Dynamic market growth ▪ Electric motors equipped with
▪ First power handbike with fully ▪ Easy mounting to manual
▪ Superior driving performance integrated Lithium-Ion battery leading-edge digital electronics wheelchairs
(silent, dynamic, highly efficient provide consumer with extra
▪ Easy and fast coupling power for every propelling ▪ Small, lightweight, easy to
state-of-the art hub motor
workflow movement
technology) travel with
▪ Integration of neodrives drive ▪ Assists with speed up to 5.3
▪ Note: Invacare sells the motor, mph and has a range of up to ▪ 6.2 mph top speed, range of
system
not the complete e-bike 15.5 miles 12.4 miles and supports body
▪ 12.4 mph top speed weight up to 309 lbs.
▪ Lightweight and quiet
▪ Connectivity app
▪ Option of Smartphone ▪ Ergonomic user interface
connectivity with Bluetooth ▪ Connectivity app
interface
Learn more about these products at: https://alber-usa.com
Invacare Corporation Presentation – May 23, 2022Lifestyle – Beds and Safe Patient Handling
For home healthcare and long-term care settings
I N VA C A R E C O R P O R AT I O N
Invacare Corporation Presentation – May 23, 2022Respiratory – Stationary and Ambulatory
▪ Launched new 5-liter stationary
I N VA C A R E C O R P O R AT I O N
oxygen concentrator in mid-
2021
▪ Realized increased sales and
elevated backlog of respiratory
products driven by the
pandemic
▪ First wirelessly remote-
controlled portable oxygen
concentrator
Invacare Corporation Presentation – May 23, 2022I N VA C A R E C O R P O R AT I O N
Appendix
Invacare Corporation Presentation – May 23, 2022Highly Engaged and Diversified Board of Directors
Governance, insight and strong industry experience to guide Invacare and represent shareholders’ interests
I N VA C A R E C O R P O R AT I O N
Clifford D.
Nastas Susan H. Julie A. Petra Danielsohn- Stephanie Marc M. Matthew E. Aron
(Lead Independent Alexander Beck Weil, Ph.D. L. Fehr Gibeley Monaghan Schwartz
Director)
CEO and President, Chief Legal Officer SVP and CFO, Terex Retired, former Executive VP and CEO, Nutritional Chairman, President Managing Partner,
Tempel Steel and Secretary, Corporation Regional President, Chief Human Capital Medicinals, LLC and CEO, Invacare ACON Investments
Company Biogen, Inc. Pfizer Essential Officer, United Corporation
Health - Europe Healthcare
CEO Experience X X X
Healthcare X X X X X
International X X X X X X X X
Financial X X X X
Turnaround
0-5 year tenure* X X X X
Diversity (gender, racial, X X X X
ethnic)
Independent X X X X X X X
* As of 5/19/2022
Invacare Corporation Presentation – May 23, 2022Experienced Management Team
Motivated team with years of international and healthcare industry experience
I N VA C A R E C O R P O R AT I O N
Executive Management Executive Management Business Leaders
Matt Monaghan Anthony LaPlaca Geoff Purtill
Chairman, President and Chief SVP, General Counsel, Chief SVP and GM, EMEA and Asia Pacific
Executive Officer Administrative Officer & Secretary Tenure: 12 years
Tenure: 7 years Tenure: 13 years Experience: Sales, marketing, customer
Experience: Healthcare, business Experience: Legal, risk management, service, supply chain, medical device
turnaround, engineering, finance, corporate governance, intellectual commercialization
private equity property, human resources, corporate
communications, national law firm Joost Beltman
Kathy Leneghan SVP & GM, North America
SVP & Chief Financial Officer Angela Goodwin Tenure: 14 years
Tenure: 31 years SVP & Chief Information Technology Experience: Sales, marketing,
Experience: International finance, Officer commercial leadership, customer
public audit Tenure: 3 years service, post-merger integration,
Experience: Global IT and ERP supply chain
implementation
Rick Cassiday
SVP & Chief Human Resource Officer
Tenure:You can also read
