(NYSE: IVC) Investor Presentation - September 9, 2021 - Invacare Global
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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)
September 9, 2021
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 June 30, 2021, 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 see the Appendix attached to this presentation. Any non-GAAP financial information is not a
substitute for, and should be read in conjunction with, GAAP financial information.
Invacare Corporation Presentation – September 9, 2021
I N VA C A R E C O R P O R AT I O N
Making Life’s
Experiences Possible
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 medical equipment used in non-acute care
clinically complex medical devices and solutions which settings
Make Life’s Experiences Possible
The company’s durable medical devices and solutions are
The company had 2020 revenue of $851M and 3,400 designed for congenital, acquired, degenerative,
associates worldwide as of December 31, 2020 conditions and help people to move, breathe, rest and
perform essential hygiene for 24-hours of care
The company primarily targets government / insurance-
based reimbursement geographies in Europe, North Invacare sells its products to private and government
America and Asia Pacific medical equipment providers and residential care
providers
Invacare Corporation Presentation – September 9, 2021
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 ensures resident and
touch-screen technology ▪ Pressure relief for wound ▪ HomeFill® Oxygen systems caregiver safety
▪ Informatics healing and prevention ▪ Daily hygiene products
▪ 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 Low Acuity
Invacare Corporation Presentation – September 9, 2021
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
$403 $858
$400
Million* Lifestyle
$350 $324 Globally focused on home healthcare and post-acute care,
including aids for daily living, walking aids, lifts, wheelchairs,
$300 beds and surfaces
(in millions)
$250
Mobility & Seating
$200
Custom power and custom manual wheelchairs, seating and
positioning, and power add-ons
$150
$105
$100 Respiratory
$50 Stationary concentrators and ambulatory oxygen such as
$26
portable concentrators and refilling devices for portable tanks
$0
Lifestyle Mobility & Respiratory Other
Seating Other
* TTM sales as of June 30, 2021 Services and rentals
Invacare Corporation Presentation – September 9, 2021
I N VA C A R E C O R P O R AT I O N Strong Global Presence
$479M* $347M* $32M*
Europe (56%)* North America (40%)* 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 June 30, 2021
Invacare Corporation Presentation – September 9, 2021
I N VA C A R E C O R P O R AT I O N
Transformation Plan
Highlights
Invacare Corporation Presentation – September 9, 2021
Transformation Accomplishments Since 2017
Area Accomplishment
I N VA C A R E C O R P O R AT I O N
Quality / Regulatory Developed a culture of quality in all regions
Management Diversified and refreshed Board of Directors with 56% less than 5-year tenure
Hired CIO to drive modernization of IT systems and implementation of global ERP system
Enhanced North American and EMEA leadership team
Cost Optimization Executed footprint rationalization and restructuring activities for cost savings of $39 million from 2017 to year-end 2020*
Executed supply chain actions to mitigate substantial portion of U.S. tariffs
Product Portfolio Continue to introduce innovative new products which offer compelling clinical value
Strategically exited low-margin products, which right-sized revenues to significantly reduced operating loss
Divested non-core business units and redeployed proceeds into growing the business
Financial Adjusted EBITDA and Free Cash Flow significantly improved
Performance
Successfully executed multiple transformative actions to reshape the
business with more to come
* $39 million cost savings does not include expected cost savings from Germany plant consolidation completed in December 2020
Invacare Corporation Presentation – September 9, 2021
I N VA C A R E C O R P O R AT I O N Demonstrated Improvement in Financial Performance
% of Net Sales Operating (Loss) Income
29.5%
29.0% 28.8%
29.0% ($18.3) 2018
28.5% 28.2%
28.0% ($10.4) 2019
27.5% 28.0%
27.5% 27.8%
27.0% 2020
2020* $11.3
26.5%
2018 2019 2020 ($20.0) ($15.0) ($10.0) ($5.0) $0.0 $5.0 $10.0 $15.0
Gross Margin SG&A (in millions)
* Includes $9.8 million gain on divesture of Dynamic Controls
Adjusted EBITDA Free Cash Flow (Usage) Generation
$35.0 $31.9
$28.7 2018
$30.0 ($52.7)
$25.0 +11.1%
(in millions)
$20.0 ($8.1) 2019
$15.0 +333.9%
$10.0 $6.6 2020 $0.0
$5.0
$0.0 ($60.0) ($50.0) ($40.0) ($30.0) ($20.0) ($10.0) $0.0 $10.0
2018 2019 2020 (in millions)
Invacare Corporation Presentation – September 9, 2021I 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 center-wheel, front-wheel and rear-wheel drive standing positioning system with clinical and
social benefits of vertical positioning, including pediatric standing system
✓ 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 Action 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
Partnership with Birlasoft Solutions to modernize business with flexible IT systems to:
✓ Drive operational efficiencies
✓ Improve our customers’ experience
✓ Generate substantial cost savings over time
Invacare Corporation Presentation – September 9, 2021Innovation 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 RX
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
May May Platinum® Jul
chair shower chair
Birdie Evo Birdie Evo Mobile® P5NXG 5L
Xplus Lifter Sep
Lifter concentrator stationary oxygen
with remote Optisling
safe patient concentrator
control
NordBed functionality handling
products
Invacare Corporation Presentation – September 9, 2021Track 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
Jun 26 Apr 30
Suzhou, China Atlanta DC
manufacturing facility Closure
Jan 31 closure announced
Kirkland, Ontario
manufacturing
facility closure; Jan 31
4Q18 Dec
Headcount Headcount Completed
Headcount
reduction reduction German
reduction
plant
consolidation
2Q18
2Q19
May 30 Dec 7 Dio, Sweden
Headcount wheelchair 1Q19 Headcount
Headcount
reduction production Küschall reduction
reduction
transfer to Switzerland
France wheelchair
production
Transfer to
France
2017 2018 2019 2020
Mar 7
Dynamic Controls
divestiture
Annualized
revenue $17.2M
at 2019 run rate
$39 million in cost optimization actions executed from 2017 to year-end 2020*
* $39 million cost savings does not include expected cost savings from Germany plant consolidation in December 2020
Invacare Corporation Presentation – September 9, 2021I N VA C A R E C O R P O R AT I O N Business Improvement Highlights
We are striving to regain market leadership
We have a clear roadmap to further enhance
and simplify our operations
Key
Takeaways
We have a strong pipeline of innovative
products coming to market
Our financial performance is improving as a result
of these initiatives
Invacare Corporation Presentation – September 9, 2021I N VA C A R E C O R P O R AT I O N
Financial Performance
Invacare Corporation Presentation – September 9, 2021Reported Net Sales PERFORMANCE BY
I N VA C A R E C O R P O R AT I O N
(in millions)
$160 SEGMENT –
$140
$5 $4
Europe
$5 $4
$5
$120 $5 $8 $4
$5 $5 $3 Segment Highlights
$6 $4
$6
$100 $5 56% of total reported net sales on a TTM basis as of
$68 $64 $6
$53 $52 06/30/21
$53
$80 $55 $44
Grow profitable sales from introduction of new
$40 products in all categories
$60
Gross profit expansion from plant consolidations in
France and Germany
$40
$59 $64 $58 $62 $58 $62 Leverage supply chain capabilities and reduce the cost
$52 $50 and complexity of the legal entity structure
$20
Realized benefits of cost reduction actions executed
$0 mid-2019
3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
2020-2021 financial performance significantly
Lifestyles Mobility & Seating Respiratory Other impacted by the pandemic with limited access to end
users primarily impacting mobility and seating
revenues
Invacare Corporation Presentation – September 9, 2021Reported Net Sales PERFORMANCE BY
I N VA C A R E C O R P O R AT I O N
(in millions)
$120 SEGMENT – North
$100
America
$0
$0 $0 $0 $0 $0
$0 $25 Segment Highlights
$80 $12 $11 $15 $19
$20 $19 $0
40% of total reported net sales on a TTM basis as of
$17 6/30/21 and segment returns to profitability
$60 $31 $32 $30 $27 $31 Continue to improve market share in Mobility &
$26 $27
Seating driven by new product introductions and
$23 improved commercial effectiveness
$40
Respiratory sales and margins improving with
favorable mix and higher demand due to COVID-19
$20 $43 $42 $43 $41 $42 $40 $40
$36 Gross profit expansion including leveraging supply
chain capabilities and portfolio rationalization
$0 SG&A leverage including benefit of cost reductions
3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Continue to invest in systems to accelerate growth in
Lifestyles Mobility & Seating Respiratory Other e-commerce and cost savings from improved
operating efficiencies
Invacare Corporation Presentation – September 9, 2021Reported Net Sales PERFORMANCE BY
I N VA C A R E C O R P O R AT I O N
(in millions)
$12 SEGMENT – All Other
$10
$1 (Asia Pacific)
$2 $1
$0
$0
$1
$8 Segment Highlights
$1 $1
$1
$1 $0 $1 4% of total reported net sales on a TTM basis as of
$7 $0 $1
$6 $5
$0 $0 6/30/21
$6
$3 $3
$3 Historically, this segment included the Asia Pacific
$3 $3
$4 distribution businesses based in Australia, New
Zealand and Thailand, and Dynamic Controls, a
designer and manufacturer of control systems for
$2 $4 power mobility products.
$3 $3 $3 $3 $3
$3 $3
Effective 1Q20, the Company sold its Dynamic
$0
Controls business which represented revenues of
3Q19 4Q19 1Q20* 2Q20* 3Q20* 4Q20* 1Q21* 2Q21*
$17.2M for the full year 2019 (included in Mobility &
Lifestyles Mobility & Seating Respiratory Other Seating)
* Excludes sales from Dynamic Controls as of March 7, 2020
Invacare Corporation Presentation – September 9, 2021Balance Sheet Supports Strategic Growth
Cash
Total Debt *
I N VA C A R E C O R P O R AT I O N
Total Debt of $322 million comprised of: Cash of $78 million:
- $278 million in convertible debt - Decreased primarily as a result of cash used to fund working
- $44 million of other debt including amounts drawn on the ABL capital needs and capital expenditures
credit facility and government loan programs - Reflects higher accounts receivable balance of $20.2 million in
the quarter (an increase of 7.4 days outstanding) to support
sales growth
- Includes higher inventory levels of $11.1 million in the quarter,
a portion to mitigate supply chain challenges
Convertible Debt Maturity Schedule
$160 $150 $120
$105
$140 $125 $100
$120 $78
$80
$100
$80 $60
$60 $40
$40
$20
$20 $3
$0 $0
12/31/20 06/30/21
2021 2022 2023 2024 2025 2026
* Excludes $85.7 million of financing and operating lease obligations as of 06/30/21 as compared to $81.6 million as of 12/31/20
Invacare Corporation Presentation – September 9, 2021Financial and Operating Assumptions
Revenue
I N VA C A R E C O R P O R AT I O N
❑ Europe expected to recover more slowly than the U.S. due to more stringent public healthcare
restrictions related to the pandemic
❑ Mobility & seating impacted by limited access to healthcare facilities, expected to begin recovery
with the resumption of elective care
❑ Elevated demand for respiratory products related to the pandemic
❑ Supply chain disruptions hampering revenue in the short-term but anticipated to be timing
Expenses & Margins
❑ Gross margins expected to be impacted as product mix returns to more normalized levels
❑ Inefficiencies associated with supply chain disruptions anticipated to negatively impact gross
margins in the short-term
❑ Operational and cost management actions implemented to mitigate margin dilution:
✓ Limiting the number of product models being sold to improve manufacturing efficiency
✓ Reducing discretionary spending
Balance Sheet & Cash
❑ Retired the remaining convertible debt maturing in 2021
❑ Extended a significant portion of convertible debt maturing in 2022 to 2026
❑ Accessed government-based loans and other programs which bolster short-term liquidity, including
loans and temporary delays of direct and indirect tax payments
Invacare Corporation Presentation – September 9, 20212021 Financial Guidance
The company anticipates increased customer activity and demand for its products even as
I N VA C A R E C O R P O R AT I O N
Adjusted EBITDA
the pandemic continues to present challenges related to labor, material and freight (in millions)
availability. These challenges are moderating near-term revenue growth and will result in $40
elevated levels of inventory and higher conversion costs. The company is taking actions such $37.0
as working with its customers on price increases, as appropriate, to defray higher input $30
$31.9 $30.0
costs; strategically increasing the labor force in key locations to improve throughput; and $28.7
$20
increasing freight carriers to reduce the currently elevated backlog, driving revenue growth
and Adjusted EBITDA improvement in 4Q21 and beyond. As a result of the updated outlook $10 +11.1%
$6.6 +333.9%
and assumptions in the medium-term, the company is revising its guidance as follows:
$0
Third Quarter 2021 Guidance 2018 2019 2020 2021 Est
❑ Constant currency net sales growth of 0% to 4%;
❑ Adjusted EBITDA of $6 to $9 million; and,
❑ Free cash flow usage of $4 to $7 million. Free Cash Flow
(in millions)
Full Year 2021 Guidance $20
❑ Constant currency net sales growth of -1% to 2%;
❑ Adjusted EBITDA of $30 to $37 million; and, $0 ($8.1)
$0.0 ($10.0)
❑ Free cash flow usage of $10 to $20 million. ($20.0)
($20)
Free cash flow usage will increase due to lower profitability in the range of $8 to $15 million ($52.7)
while only realizing a portion of the full year benefit of mitigation actions and higher ($40)
working capital requirements with increased investment in inventory and accounts
receivable of approximately $10 million more than originally anticipated. The company ($60) 2018 2019 2020 2021 Est
believes this increased investment will collect to cash over the course of 2022.
Invacare Corporation Presentation – September 9, 2021I N VA C A R E C O R P O R AT I O N
Our Products
Invacare Corporation Presentation – September 9, 2021I N VA C A R E C O R P O R AT I O N Mobility & Seating – Custom Power and Manual
MPS Maxx Modular Power AVIVA® FX (U.S.) and Kuschall®
Standing System and Mini Maxx AVIVA RX (Europe) Custom Manual
▪ Innovative center-wheel drive ▪ Advanced seating and ▪ Unique hydroforming technology
powerchair with clinical and positioning 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 – September 9, 2021Mobility & 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 Handbike 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 – September 9, 2021I N VA C A R E C O R P O R AT I O N Mobility & Seating – Sports and Recreation
Daniel Romanchuk, in a Top End®
Eliminator TM NRG Racing
Wheelchair
Winner (Push rim division):
2018, 2019 New York Marathon
2018, 2019 Chicago Marathon
2019 World Para Athletics world
record (5000 meters)
2019 London Marathon
2019 Boston Marathon
2021 Paralympics
Learn more about Top End at: https://topendwheelchair.invacare.com/
Invacare Corporation Presentation – September 9, 2021Lifestyles – 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 – September 9, 2021I N VA C A R E C O R P O R AT I O N Respiratory – Ambulatory Solutions*
HomeFill® Refilling Systems
Benefits for Patients
❑ Unlimited refillable oxygen supply
❑ Easy to use and reliable
❑ Quiet, no heat, no vibrating**
TM
Benefits for Providers Premium Platinum Mobile Features
❑ Longer durability; requires little to no
maintenance, fewer unplanned calls ❑ First truly hands free POC with app-enabled remote flow control
❑ No battery or sieve bed ⁻ Enables flow control from up to 25ft from device, shows
replacements*** battery time remaining in hrs. and mins, comprehensive
information hub for patient
❑ Continuous flow & pulse dose capable ⁻ Provider portal helps drive lower total cost of ownership
❑ Lower total cost of ownership ⁻ Integrated system drives value for both provider and
patient
Industry’s #1 durable, reliable, low total cost of ❑ Easy battery management system
ownership, preferred ambulatory product**** ⁻ Top-load feature: never remove bag to insert batteries
⁻ Hot-swap capable: never interrupt O2 supply to swap
batteries
* Includes refilling devices, portable, transportable & stationary oxygen concentrators, oxygen cylinders & liquid oxygen
** HomeFill cylinder while in use
*** Other than stationary concentrator requirements
**** Results based on Invacare’s customer feedback of 125 respondents nationwide in an April 2019 survey
Invacare Corporation Presentation – September 9, 2021I N VA C A R E C O R P O R AT I O N
Appendix
Invacare Corporation Presentation – September 9, 2021Highly 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
C. Martin Harris, Petra
M.D. Susan H. Julie A. Danielsohn-Weil, Stephanie L. Fehr Diana S. Marc M. Matthew E. Clifford D.
(Lead Director) Alexander Beck Ph.D. Ferguson Gibeley Monaghan Nastas
Associate VP, Executive VP, CFO, NOVA Retired, former Executive VP and Principal and CEO, Nutritional Chairman, CEO & President,
Health Enterprise Chief Legal Chemicals Regional Chief Human Founder, Scarlett Medicinals, LLC President and Tempel Steel
& Chief Business Officer and Corporation President, Pfizer Capital Officer, Investments LLC CEO, Invacare
Officer, Dell Secretary, Biogen Essential Health - United Corporation
Medical School at Europe Healthcare
U. of Texas
CEO Experience X X X
Healthcare X X X X X X
International X X X X X X
Financial X X X
Turnaround
0-5 year tenure* X X X X X
Diversity (gender, racial, X X X X X X
ethnic)
Independent X X X X X X X X
* As of 9/9/21
Invacare Corporation Presentation – September 9, 2021Experienced 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 Ralf Ledda
Chairman, President and Chief SVP, General Counsel, Chief SVP & GM, Europe
Executive Officer Administrative Officer & Secretary Tenure: 26 years
Tenure: 6 years Tenure: 12 years Experience: Industrial engineering,
Experience: Healthcare, business Experience: Legal, risk management, electromotive technology, lean
turnaround, engineering, finance, corporate governance, intellectual production system, medical device
private equity property, human resources, corporate commercialization
communications, national law firm
Joost Beltman
Kathy Leneghan
SVP & GM, North America
SVP & Chief Financial Officer Angela Goodwin
Tenure: 13 years
Tenure: 30 years Chief Information Technology Officer Experience: Sales, marketing, commercial
Experience: International finance, Tenure: 2 years leadership, customer service, post-
public audit Experience: Global IT and ERP merger integration, supply chain
implementation
Geoff Purtill
Rick Cassiday VP, Global Strategy and GM Asia Pacific
Chief Human Resource Officer Tenure: 11 years
Tenure:Convertible Debt Summary
Terms 2022 2024 Series I 2024 Series II 2026 Total
I N VA C A R E C O R P O R AT I O N
Par Value (as of Jun 30, 2021) $2.7M $72.9M $73.9M $125.0M $274.4M
Maturity date Jun 1, 2022 Nov 15, 2024 Nov 15, 2024 Mar 15, 2026 --
Interest rate 4.50% 5.00% 5.00% 4.25% 4.65%
Conversion price $16.23 $14.78 $14.78 $10.57 --
Soft call price -- $19.21 $19.21 $13.74 --
Contingent conversion price * $21.10 -- -- $16.58 --
Warrant strike price $21.44 -- -- -- --
Maximum debt accretion** -- -- $16.6M -- $16.6M
Convertible debt quote at 9/3/21 94.7 98.0 101.3 104.6 --
Potential share dilution (in millions)***:
IVC stock at $10 0.00 0.00 0.00 0.00 0.00
IVC stock at $15 0.00 0.07 0.07 0.00 0.14
IVC stock at $20 0.00 1.29 1.31 2.02 4.62
*Price at which share dilution can occur
** The additional accretion is only payable in cash by Invacare if bond holders do not convert at or prior to the maturity date
*** Based on 34.4 million shares outstanding as of 12/31/20 and assuming net share settlement
Invacare Corporation Presentation – September 9, 2021Reconciliation of Non-GAAP Performance
Metrics to GAAP Financial Measures
I N VA C A R E C O R P O R AT I O N
(Dollars in millions) 2Q21 2Q20 Non-GAAP Financial Measures
Net Loss ($10.7) ($16.6)
Income Taxes 1.1 0.7
Loss before Income Taxes (9.6) (15.9) Some of the information in this presentation is derived from the company’s
Interest Expense * 6.1 13.7 consolidated financial data but not presented in its financial statements prepared in
Interest Income 0.0 (0.0) accordance with U.S. generally accepted accounting principles (GAAP). Certain of these
Operating Loss (3.5) (2.2) data points are considered “non-GAAP financial measures” under Securities and
Exchange Commission rules. These non-GAAP financial measures supplement the
Depreciation and Amortization 4.2 3.3 company’s GAAP disclosures and should not be considered an alternative to the GAAP
Gain on Sale of Business 0.0 (0.2) measure. The reconciliations to their most directly comparable GAAP financial measures
EBITDA 0.7 0.8 are included in the company’s earnings press release for the second quarter 2021. The
Restructuring Charges 0.5 1.7 company uses non-GAAP financial measures including the following:
Stock Compensation 4.2 4.1
Adjusted EBITDA 5.5 6.6
❑ “Adjusted EBITDA” – EBITDA plus stock compensation and charges related to
Net Cash Provided (Used) by Operating Activities (22.3) 6.5 restructuring activities.
Plus: Sales of Property and Equipment, incl advances 0.0 0.4
❑ “Constant currency net sales” – Net sales excluding the impact of foreign currency
Less: Purchases of Property and Equipment (4.9) (8.8)
translation and divestiture.
Free Cash Flow (Usage) ($27.2) ($1.9)
❑ “Constant currency SG&A” – SG&A excluding the impact of foreign currency
Reported Net Sales % Change 15.1% -16.8% translation and divestiture.
Less: Foreign Exchange Impact 7.3% -1.9%
Less: Impact of Divested Entities 0.0% -2.0% ❑ “EBITDA” – Earnings (loss) before income taxes, interest expense-net, loss on debt
Constant Currency Sales % Change 7.8% -12.9% extinguishment including debt financing charges and fees, gain/loss on sale of
business, and depreciation and amortization.
Reported SG&A % Change 11.1% -15.9%
❑ “Free cash flow” – Net cash provided (used) by operating activities less purchases of
Less: Foreign Exchange Impact 5.9% -1.0%
property and equipment plus proceeds, including the advances from sales of
Less: Impact of Divested Entities 0.0% -1.7%
property and equipment.
Constant Currency SG&A % Change 5.2% -13.2%
* Includes loss on debt extinguishment including financing charges & fees
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