Invacare : 4Q22 Financial Results Slides

InvacareCorporation

Fourth Quarter 2022 Financial Performance

May 9, 2023

Forward-LookingStatements

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. Actual results may differ materially as a result of various risks and uncertainties, including those expressed in the cautionary statement 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 December 31, 2022, unless otherwise noted.

Non-GAAP Financial Measures

Some of the information in this presentation is derived from the company's consolidated financial data but not presented in its financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data points are considered "non-GAAP financial measures" under Securities and Exchange Commission rules. These non-GAAP financial measures supplement the company's GAAP disclosures and should not be considered an alternative to the GAAP measure. The reconciliations to their most directly comparable GAAP financial measures are included in the accompanying table and Appendix.

Invacare 4Q22 Financial Performance - May 9, 2023

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Favorable Developments Drive Improved 4Q22 Performance

Developments	4Q22 vs 3Q22

• Improved access to key material and components as a result of increased funding secured in 3Q22 and 4Q22
• Strong demand and orders for lifestyle and mobility & seating products in 4Q22
• Benefit of prior restructuring actions partially realized
• Gross margin improved driven by operational efficiencies,

• Revenue growth on a reported and constant currency basis was driven by higher sales in all regions and in all product categories
• Adjusted EBITDA improvement was driven by net sales growth, gross margin expansion, operational efficiencies and restructuring benefits partially offset by unfavorable foreign exchange

favorable product mix and lower input costs for select materials and freight, with exceptions primarily including electronic components

• Europe returned to profit delivering constant currency net sales growth and gross margin improvements with operational efficiencies

Invacare 4Q22 Financial Performance - May 9, 2023

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KeyFinancial Metrics 4Q22 vs. 4Q21 -Consolidated

Key Metrics

(in millions USD)	4Q22	4Q21	Change
Fav (Unfav)
Net Sales	$181.3	$226.2	($44.9)
Constant Currency Net Sales	$201.0	$226.2	($25.2)
Gross Profit	$48.3	$63.3	($15.0)
Gross Margin	26.6%	28.0 %	140 bps
SG&A	$52.2	$53.5	$1.3
Constant Currency SG&A	$55.7	$53.5	$2.2
Operating Income (Loss)	($15.6)	$9.8	($25.4)
Adjusted EBITDA	$0.0	$13.1	($13.1)
Free Cash Flow (Usage)	($8.9)	$19.2	($28.1)

Invacare 4Q22 Financial Performance - May 9, 2023

4Q22 compared to 4Q21

• Reported net sales decreased 19.8% and constant currency net sales decreased 11.2%, in part due to product rationalization including lower respiratory and component shortages influenced by supply chain challenges
• • Reported sales of respiratory products down $12.4 million, or
    50.1%, due to the company's decision to exit the business, along with lower demand
• Gross margin decreased 140 bps due to higher input costs partially offset by pricing actions and product mix
• Constant currency SG&A expense increased 4.1% largely due to
• • Higher IT expenses classified as operating costs of $2.7 million
  • Unfavorable foreign currency transactions partially offset by lower employment costs
• Operating loss increased $25.4 million and Adjusted EBITDA declined by $13.1 million driven primarily by lower gross profit from lower revenues; Operating loss also impacted by
• • Higher restructuring expenses of $9.4 million
  • Intangible impairment charge of $2.2 million
• Free cash flow usage increased $28.1 million due to
• • Funding of operating losses and working capital usage including higher accounts payable payments

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KeyFinancial Metrics 4Q22 vs. 3Q22 -Consolidated

Key Metrics

(in millions USD)	4Q22	3Q22	Change
Fav (Unfav)
Net Sales	$181.3	$170.4	$10.9
Constant Currency Net Sales	$185.7	$170.4	$15.3
Gross Profit	$48.3	$31.4	$16.9
Gross Margin	26.6%	18.4%	820 bps
SG&A	$52.2	$55.4	$3.1
Constant Currency SG&A	$53.0	$55.4	4.2%
Operating Loss	($15.6)	($33.4)	$17.8
Adjusted EBITDA	$0.0	($11.8)	$11.8
Free Cash Flow (Usage)	($8.9)	($20.5)	$11.6

4Q22 compared to 3Q22

• Reported net sales increased 6.4% driven by revenue growth in all key product categories and all regions
• Gross margin increased 820 bps driven by
• • One-timecharge of $8.7 million, or 510 bps, taken in 3Q22 related to the exit of respiratory manufacturing
  • Favorable product mix and freight costs
• SG&A expense decreased 4.2% on constant currency basis driven by
• • Lower product liability and employment costs
  • Partially offset by unfavorable foreign exchange transactions
• Operating loss improved by $17.8 million and Adjusted EBITDA increased $11.8 million driven largely by higher gross margin from higher net sales; Operating loss also impacted by
• • Inventory and purchase obligations write down of $8.7 million related to respiratory products in 3Q22
  • Restructuring and intangible impairment charges
• Free cash flow usage improved $11.6 million primarily driven by reduced operating loss

Invacare 4Q22 Financial Performance - May 9, 2023

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