Natus Medical Incorporated Jeffries Global Healthcare CONFERENCE Tuesday June 6, 2017
Forward-Looking Statements This presentation contains forward-looking statements including statements regarding our expectations, beliefs, plans and intentions, which involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by any forward looking statements. These statements reflect our current views with respect to future events and are based on assumptions, and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. We discuss many of these risks in greater detail in our filings with the SEC, which you should read carefully. You should listen to the information contained in this presentation completely with the understanding that our actual future results may be materially different from what we expect, and from historical results and trends. We qualify all our forward-looking statements by these cautionary statements. Natus disclaims any obligation to update information contained in any forwardlooking statement. Reconciliation of GAAP to non-gaap results are contained in our press releases and SEC filings. Natus is a leading provider of medical devices for the newborn care, hearing and neurology markets. Additional information about Natus Medical can be found at www.natus.com. 2
About Natus EEG Electroencephalography Neurodiagnostics 48% Otometrics 21% Newborn Care 31% EMG Electromyography Hearing Screening Brain Injury Phototherapy Hearing Screening Hearing Aid Fitting Balance Hearing Diagnostics 3
Revenue Growth: 10-YR CAGR ~ 19% Organic growth and acquisitions $ millions $382 Guidance $505 $510 $292 $90 2006 2012 2016 2017 Guidance 4
Non-GAAP Operating Margin Growth Otometrics Acquisition 14% 16% 19% 18% 15% 20% 9% 2012 2013 2014 2015 2016 2017 Guidance GOAL *Non-GAAP earnings excl. intangible amort., restructurings, and certain other one-time items. For more information, please see our periodic press releases and associated SEC filings at http://investor.natus.com. 5
Non-GAAP EPS Growth $ millions 1.04 1.26 1.55 1.62 Guidance $1.70 $1.75 0.63 2012 2013 2014 2015 2016 2017 Guidance *FY 17 guidance as of April 26, 2017. Non-GAAP earnings excl. intangible amort., restructurings, and certain other one-time items. For more information, please see our periodic press releases and associated SEC filings at http://investor.natus.com. 6
NEWBORN CARE Hearing Screening Brain Injury Phototherapy
Market Leader in Newborn Care Pioneered newborn hearing screening Hearing screening devices / disposables ~70% Worldwide Market Share Phototherapy Services - Peloton 8
Peloton: Hearing Screening Service for Hospitals 0 127 Hospitals Q1 14 Q4 16 Opportunity to convert Natus Algo customers Hospital benefits Gain cost savings Eliminate screening management 9
NEURODIAGNOSTICS EEG Electroencephalography EMG Electromyography
Market Leader in Neurodiagnostics Completed roll-up of fragmented market in 2012 EEG ~60% Worldwide Market Share EMG Services - GND 11 *Worldwide market shares excludes Japanese market
Global Neurodiagnostics (GND) Entered market 3 states Q1 2015 Growth into 22 states Q4 2016 Growth into 33 states 2017 Goal Provides in-home neurodiagnostic service Reduces overall payor cost by 50-65% Expanding in major U.S. markets 12
OTOMETRICS Hearing Aid Fitting Hearing Screening Hearing Diagnostics Balance
+ A GLOBAL LEADER MARKET PRESENCE Newborn Hearing Screening Hearing diagnostics Balance assessment Hearing Aid Fitting Largest independent hearing aid fitting supplier Premium global brands Expanding margins as we complete integrations 14
Market Leader in Audiology Acquired Otometrics January 2017 % Revenue 2016 Hearing Screening Balance Assessment Balance 11% Supplies & Other 13% Hearing Screening 12% Hearing Diagnostics 24% Hearing Diagnostics Hearing Aid Fitting Hearing Aid Fitting 40% 15
Otometrics Operating Margin Goals % Revenue 20% 10% -1% Pre Acquisition 2017 2018 16
Otometrics Revenue Cyclicality % Annual Revenue 30% 22% 24% 24% Q1 Q2 Q3 Q4 17
2017 Guidance Q2 2017 FY 2017 Consolidated Revenue $121M - $123M $505M - $510M Non-GAAP EPS $0.32 - $0.34 $1.70 - $1.75 18
Natus Summary M A R K E T L E A D E R Newborn Care Neurodiagnostics Audiology Leverage global marketing and distribution platform Targeted acquisitions with fiscal discipline Continued margin expansion and earnings growth 19
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