Invacare : I.R. Presentation 12.4.20

I N V A C A R E C O R P O R A T I O N

Presentation (NYSE: IVC)

e m b e r 4 , 2 0 2 0

I N V A C A R E C O R P O R A T I O N

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 earnings press release for the third quarter 2020 posted on www.invacare.com/investorrelations, as well as 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 September 30, 2020, unless otherwise noted.

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Making Life's

Experiences Possible

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

ABOUT US

Headquartered in Elyria, OH (outside of Cleveland), Invacare is proudly celebrating its 40th year of providing clinically complex medical devices and solutions which Make Life's Experiences Possible

As of September 30, 2020, the company had TTM revenue of $860M and 3,600 associates worldwide

The company primarily targets western-based reimbursement geographies in Europe, North America and Asia Pacific

WHAT WE DO

Invacare is a leading manufacturer and distributor in its markets for medical equipment used in non-acute care settings

The company's durable medical devices and solutions are designed for congenital, acquired, degenerative, conditions that help people to move, breathe, rest and perform essential hygiene for 24-hours of care

Invacare sells its products to private and government medical equipment providers and residential care providers

Invacare Investor Presentation - Dec 4, 2020

I O N

Solutions Across The Continuum Of Care

Providing essential clinical solutions for broad range of conditions

Solution Areas (24-Hours of Care)

C O R P O R A T

Move

Custom power and manual wheelchairs and custom seating

• Alternative drive controls and touch-screen technology
• Informatics

Rest

Home care and long-term care beds and therapeutic support surfaces

• Pressure relief for wound healing and prevention
• Continued pressure monitoring

	Breathe	Hygiene
Respiratory therapy products	Safe patient handling and hygiene
▪	Stationary and portable	▪ Patient transfer and bathing
	oxygen concentrators	equipment ensures resident and
▪	HomeFill® Oxygen systems	caregiver safety
		▪ Daily hygiene products

I N V A C A R E

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 Investor Presentation - Dec 4, 2020

Reported Net Sales *

ON		$450		$860
	$404
I
	$400		Million*
A T
	$350	$344
O R
	$300
O R P	millions)	$250
$200
C	(in
E		$150
R			$87
C A		$100
	$50
A			$25
V		$0
N
	Lifestyles	Mobility & Respiratory	Other
I
		Seating

* TTM sales as of September 30, 2020

Invacare Investor Presentation - Dec 4, 2020

Broad Product Line with High Clinical Value

Lifestyles

Globally focused on home healthcare and post-acute care, including aids for daily living, walking aids, lifts, wheelchairs, beds and surfaces

Mobility & Seating

Custom power and custom manual wheelchairs, seating and positioning, and power add-ons

Respiratory

Stationary concentrators and ambulatory oxygen such as portable concentrators and refilling devices for portable tanks

Other

Services and rentals

Strong Global Presence

I N V A C A R E C O R P O R A T I O N

$476M

Europe (56%)*

Primarily single payor reimbursement systems which appreciate durable medical equipment and total lowest cost of ownership

Key markets focused on Western Europe: France, Germany, UK, Benelux and the Nordic countries with a smaller presence in southern Europe

Manufacturing facilities in Germany, France, Portugal, UK and Sweden

$347M

North America (40%)*

Primarily sell to durable medical equipment providers, equipment fleet owners, residential care facilities and government agencies

Manufacturing facilities in the U.S., Mexico and Canada

$37M

Asia Pacific (4%)*

Primarily target western-based reimbursement countries, such as Australia and New Zealand

Sales and distribution facilities in Australia, New Zealand and Thailand

* TTM sales as of September 30, 2020

I N V A C A R E C O R P O R A T I O N

Transformation Plan Highlights

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Transformation Accomplishments Since 2015

Area	Accomplishment
Quality / Regulatory	Developed a culture of quality in all regions
Management	Appointed new CEO in 2015 to implement transformation
	Diversified and refreshed Board of Directors with 66% less than 5-year tenure
	Hired CIO to drive modernization of IT systems and implementation of global ERP system
	Enhanced North American sales organization and EMEA leadership team
Cost Optimization	Executed footprint rationalization and restructuring activities in all regions for cost savings of $39 million
	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 Performance	Free Cash Flow significantly improved compared to the Free Cash Flow usage since 2016

Successfully executed multiple transformative actions to reshape the

business since 2015 with more to come

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Initiatives Accelerating Our Transformation

Award winning clinical solutions and full product pipeline:

• Launched center-wheel and front-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 gross profit from plant consolidations in France
• Implementing plant consolidations in German facilities to be completed in late 2020
• Achieved significant improvement in material and freight costs through proactive supply chain actions

Partnership with Birlasoft Solutions to modernize business with flexible IT systems to:

• Drive operational efficiencies
• Improve our customers' experience
• Generate substantial cost savings

Invacare Investor Presentation - Dec 4, 2020

O N

Innovation Pipeline

Supporting sales growth with frequent introduction of clinically innovative solutions

Aug

Invacare® TDX® SP2 w/

LiNX® technology

Rehab (Mobility and Seating)

Post Acute Care (Lifestyle)

A R E C O R P O R A T I

Rovi® X3 with gyro

and high-speed

motors

Top End® EliminatorTM

Feb

Invacare® Top End®

NRG Racing Chair

Preliminator racing

wheelchair

May

Cruise Mode

on Alber®

Mar

Invacare®

Twion® power

Sep

Orion

assist device

Invacare®

and Comet

Action® manual

Scooters

wheelchairs

2017

2018

May

E-pilot P15

Power Add

On

May

SMOOV

One™ Power

Add On

2019

Respiratory

				Mar
				AVIVA FX /
				AVIVA RX
			Power
Sep
				Wheelchairs
MPS Maxx
Modular Power
Standing System					Apr
						MPS Mini
						Maxx
						Standing
						System

2020

A C

Jan
Bed	Oct
safety

Sep

Apr

Invacare Stand Assist

Sep

I N V

and			Enhanced
hygiene			Platinum®
products		Mobile®
May
			concentrator
	Outcomes by
	DesignTM	with
	post-acute	Connectivity

solutions

May

Birdie Evo

Lifter

Ocean Ergo

Commode

chairMay Birdie Evo

Xplus Lifter

NordBed

Platinum®

Mobile® concentrator with remote control functionality

Invacare Investor Presentation - Dec 4, 2020

Track Record of Optimization

Aligning footprint with new commercial strategy and sales level

C A R E C O R P O R A T I O N

Oct 31

Headcount reduction

Dec 1
Dallas, Texas
DC closure				Aug 1
					Cranberry, NJ
				DC Closure

2016

2017

Jun 26

Suzhou, China

manufacturing facility

closure announced

Jan 31

Kirkland, Ontario

manufacturing

facility closure;

Jan 31

Headcount

Headcount

reduction

reduction

2Q18

Dio, Sweden

May 30

Dec 7

Headcount

Headcount

wheelchair

reduction

reduction

production

transfer

completed

2018

4Q18

Headcount reduction

1Q19

Küschall Switzerland wheelchair production transfer completed

2019

Apr 30

Atlanta DC

Closure

Dec

Announced

German

plant

consolidation

2Q19

Headcount reduction

2020

I N V A

Jul 2
		Sep 30
Invacare Rentals
	Garden City Medical
divestiture
	divestiture
Annualized revenue
	Annualized revenue $36.4M
$28.8M at 2015 run
	at 2016 run rate
rate

$39 million in cost optimization actions executed from 2017 to date

Mar 7

Dynamic Controls divestiture Annualized revenue $17.2M at 2019 run rate

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Transformation Highlights

We are transforming to regain market leadership

	We have a clear roadmap to further enhance
Key	and simplify our operations

Takeaways

We have a strong pipeline of innovative products coming to market

Our financial performance is improving as a result of these initiatives

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Financial Performance

Invacare Investor Presentation - Dec 4, 2020

Third Quarter 2020 Financial Highlights

O R P O R A T I O N

Operating Income

• $0.5 million YOY driven by:
• • Reduced SG&A expenses
  • Partially offset by lower gross profit
  • Ongoing North American strength with operating income of $3.0 million
• $5.2 million sequentially driven by:
• • Higher net sales
  • Reduced SG&A expenses

Adjusted EBITDA

• $0.2 million YOY driven by:
• • $7.8 million reduction in constant currency SG&A expenses substantially offset by lower gross profit reduced net sales
• $3.2 million sequentially driven by:
• • Higher net sales primarily in Europe
  • Reduced SG&A expenses

Free Cash Flow

• $14.1 million YOY due to:
• • Net cash used for operating activities to support working capital needs

• $0.1 million sequentially driven by:
• • Higher profitability
  • Lower inventory
  • Offset by increased working capital

V A C A R E C

	$2.9	$10.0	$9.6	$9.8
$3.0
$2.4		$8.0
$2.0		$6.0
+21%		$4.0		+3%
$1.0
		$2.0

$12.0

$7.0

$2.0

$12.3

I N

$0.0		$0.0
3Q19	3Q20	3Q19	3Q20

($3.0)		($1.8)
3Q19	3Q20

Sequential improvement in net sales and strong cost containment measures drove improved profitability

Invacare Investor Presentation - Dec 4, 2020

O R P O R A T I O N

$160

$140

$120

$100

Reported Net Sales

(in millions)

	$5	$5	$4
	$5	$4
$5	$5		$5
$5			$5
			$5
				$6
			$64	$5
$54	$63	$68	$6
		$53

PERFORMANCE BY SEGMENT - Europe

Segment Highlights

56% of total reported net sales on a TTM basis as of 9/30/20

A R E C

$80

$60

$40

$40

$55

Grow profitable sales from introduction of new products in all categories

Gross profit expansion from plant consolidations in France and Germany (to be completed in 2020)

I N V A C

$20

$0

$62	$61	$59	$64	$58	$52	$50

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20

Lifestyles		Mobility & Seating		Respiratory		Other

Leverage supply chain capabilities and reduce the cost and complexity of the legal infrastructure

Realized benefits of cost reduction actions executed mid-2019

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

$100

$90

$80

$70

$60

$50

$40

$30

$20

$10

$0

Reported Net Sales

(in millions)

$0	$0	$0	$0	$0	$0	$0
$14
$14	$12	$11	$15		$19
	$20
$28	$30	$31	$32	$30	$26	$27

$43	$45	$43	$42	$43	$41	$42

1Q19		2Q19		3Q19	4Q19		1Q20	2Q20	3Q20
		Lifestyles		Mobility & Seating		Respiratory		Other

PERFORMANCE BY

SEGMENT - North

America

Segment Highlights

40% of total reported net sales on a TTM basis as of 9/30/20

Continue to grow market share in Mobility & Seating driven by new product introductions and improved commercial effectiveness

Respiratory sales and margins improving with favorable mix and higher demand due to COVID-19

Gross profit expansion including leveraging supply chain capabilities and portfolio rationalization

SG&A leverage including benefit of cost reductions

Continue to invest in systems to accelerate growth in e-commerce and cost savings from improved operating efficiencies

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Reported Net Sales

(in millions)

$14

$12

$2	$2
$0	$1	$1	$2
$10		$0	$1
				$0
						$1
$8
								$1	$1
$8
$7	$7				$0
			$0
$6		$6	$5
									$3	$3
$4
$2
			$3		$3	$4	$3
$3	$3	$3
$0
1Q19		2Q19		3Q19	4Q19		1Q20*	2Q20*	3Q20*
			Lifestyles		Mobility & Seating		Respiratory			Other

• Excludes sales from Dynamic Controls as of March 7, 2020 Invacare Investor Presentation - Dec 4, 2020

PERFORMANCE BY

SEGMENT - All Other

(Asia Pacific)

Segment Highlights

4% of total reported net sales on a TTM basis as of 9/30/20

Historically, this segment included the Australia and New Zealand distribution businesses and Dynamic Controls, a designer and manufacturer of control systems for power mobility products.

Effective 1Q20, the Company sold its Dynamic Controls business which represented revenues of $17.2M for the full year 2019 (included in Mobility & Seating)

Balance Sheet Supports Transformation (as of September 30, 2020)

I N V A C A R E C O R P O R A T I O N

Debt *

Total Debt of $273 million comprised of:

• $42 million drawn on the ABL credit facility and government loan programs
• $231 million in convertible debt

Convertible Debt Maturities

$160			$146.8
$140
$120
$100		$81.5
$80
$60
$40
$20	$1.3
$0
Feb 2021	Jun 2022	Nov 2024

Cash

Total Cash of $87 million due to:

• Cash borrowed on the company's credit facility
• Proceeds from the sale of Dynamic Controls
• Government loan programs
• Cash used to retire convertible notes and to extend the maturity of a portion of convertible notes to 2024
• Cash used to fund operations

Balance Sheet Highlights

In 3Q20, the company retired $24.5 million of convertible notes due in 2021, leaving less than $1.3 million maturing in February 2021

In 2Q20, the company extended the debt maturities of a significant portion of its 2021 and 2022 Notes, until November 2024

The company has accessed global government programs to bolster short-term liquidity including the temporary delay of direct and indirect tax payments

The company has a U.S. Federal tax loss carryforward and tax credits in excess of $377 million as of December 31, 2019

The company continues to believe that generation of Adjusted EBITDA driven by operational performance, cash balances on hand, and expected free cash flow will support the company's ongoing transformation plans and enable it to address future debt maturities

• Excludes $80.3 million in operating and financing lease obligations as of 9/30/20 and $47.8 million as of 12/31/19

Invacare Investor Presentation - Dec 4, 2020

COVID-19 Business Dynamics

Driving Two Patterns of Demand; Phasing of Peak and Return with Recovery

A C A R E C O R P O R A T I O N

Anatomy of Impact

Early ramp in Respiratory and Bed demand to support COVID-19 care

demand
normal%	1Q20	2Q20	3Q20

Elevated Respiratory demand continues

Past COVID-19 bed peak offset by limited long-term care access

Respiratory

• Above-normaldemand for stationary oxygen concentrators for COVID-19 response continued through 3Q20
• Winter COVID-19 resurgence still affecting profile of elevated demand

Lifestyle/Beds

• 2H20 demand for bed and other lifestyle products reflect mix shift from limited access to long-term care facilities and more at-home care during pandemic restrictions

Mobility & Seating

• Europe - easing of healthcare restrictions and shorter quote-order cycle resulted in sequential improvement in 3Q20 sales
• North America - easing of healthcare restrictions resulted in increased quote volume, which delays sales increase into 4Q20
• New product launches continue to drive increased interest

I N V

Mobility & Seating past bottom as clinic / healthcare access returns

NB - For illustrative purposes only; not drawn to scale

Outlook

• While overall access to healthcare is expected to improve during the winter months, intermittent pandemic-related closures may occur
• Sales patterns anticipated to evolve as planned

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

COVID-19: Financial and Operating Assumptions

Revenue

• Sequential increase in consolidated net sales in 4Q20, staying lower than prior year
• Europe expected to recover more slowly than the U.S. due to more stringent public healthcare restrictions
• 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

Expenses & Margins

• Gross margins expected to be impacted as product mix returns to more normalized levels

❑ 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 nearly all of the convertible debt maturing in 2021, leaving less than $1.3 million outstanding
• Extended a significant portion of convertible debt maturing in 2021 and 2022, to 2024
• Accessed government-based loans and other programs which bolster short-term liquidity, including loans and temporary delays of direct and indirect tax payments

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Full Year 2020 Guidance

As reported on October 30, 2020

Based on continuing access to healthcare facilities without new public health restrictions, and adoption of new products, the company now anticipates the following:

Full Year 2020 Guidance:

• Reported net sales of at least $840 million, up from the previous range of $810 to $840 million;
• Adjusted EBITDA in the range of $28 to $32 million, up from the previous range of $27 to $30 million; and,
• Free cash flow usage in the range of $8 to $12 million, changed from the previous range of usage of $7 to $10 million.

4Q20 Assumptions

• Consolidated net sales to improve sequentially and lower than 4Q19
• • Europe to recover slowly and below 4Q19 in the mid-teens
  • North America to be below 4Q19 in the low single-digits
• Selling expenses to increase sequentially to support higher sales
• Free cash flow impacted by timing of cash collections from higher sequential sales

$35

$30

$25

$20

$15

$10

$5

$0

$4

($6)

($16)

($26)

($36)

($46) ($56)

Full Year Adjusted EBITDA

(in millions)

$28 - $32

$28.7

$6.6

201820192020 Est

Full Year Free Cash Flow

(in millions)

201820192020 Est

($8.1)

($8) - ($12)

($52.7)

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Our Products

Invacare Investor Presentation - Dec 4, 2020

Mobility & Seating - Custom Power and Manual

I N V A C A R E C O R P O R A T I O N

MPS Maxx Modular Power

Standing System and Mini Maxx

• Innovative center-wheel drive powerchair with clinical and social benefits of vertical positioning
• Fits fully within Group 3 reimbursement in the U.S.

AVIVA FX (U.S.) and

AVIVA RX (Europe)

• Advanced seating and positioning systems
• Unique suspension systems resulting in a smooth stable ride
• Standing capabilities on FWD platform

Kuschall

Custom Manual

• Unique hydroforming technology resulting in a stiffer frame without added weight

Invacare Investor Presentation - Dec 4, 2020

C O R P O R A T I O N

Mobility & Seating - Electromotive Technology

Applying power add-on technology to new products, including recreational mobility devices and extension apps

E-Bike Drive Systems
	Power Handbike	Power Assist	Power Assist

I N V A C A R E

• Dynamic market growth
• Alber launched new product generation in July 2018 (neodrives Z20)
• Superior driving performance (silent, dynamic, highly efficient state-of-the art hub motor technology)
• Note: Invacare sells the motor, not the complete e-bike

• Launched in Europe May 2018
• First power handbike with fully integrated Lithium-Ion battery
• Easy and fast coupling workflow
• Integration of neodrives drive system
• 20 km/h (12.4 mph) top speed
• Connectivity app

• Electric motors equipped with leading-edge digital electronics provide consumer with extra power for every propelling movement
• Assists with speed up to 8,5 km/h (5.3 mph)
• Lightweight and quiet
• Option of Smartphone connectivity with Bluetooth interface (510(k) pending)

• Launched in Europe May 2019; FDA 510k clearance Jun 2020
• Easy mounting to manual wheelchairs
• Small, lightweight, easy to travel with
• 10 km/h (6.2 mph) top speed, range of 20 km (12.4 miles) and supports body weight up to 140 kg (309 lbs.)
• Ergonomic user interface
• Connectivity app

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T 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

Learn more about Top End at: https://topendwheelchair.invacare.com/

Invacare Investor Presentation - Dec 4, 2020

Lifestyles - Beds and Safe Patient Handling

For home healthcare and long-term care settings

I N V A C A R E C O R P O R A T I O N

Invacare Investor Presentation - Dec 4, 2020

Respiratory - Ambulatory Solutions

I N V A C A R E C O R P O R A T I O N

HomeFill® Refilling Systems

Benefits for Patients

• Unlimited refillable oxygen supply
• Easy to use and reliable
• Quiet, no heat, no vibrating*

Benefits for Providers

• Longer durability; requires little to no maintenance, fewer unplanned calls
• No battery or sieve bed replacements**
• Continuous flow & pulse dose capable
• Lower total cost of ownership

Industry's #1 durable, reliable, low total cost of

ownership, preferred ambulatory product***

• HomeFill cylinder while in use
• Other than stationary concentrator requirements
• Ambulatory Devices include refilling devices, portable, transportable & stationary oxygen concentrators, oxygen cylinders & liquid oxygen. Results based on Invacare's customer feedback - 125 respondents nationwide

Premium Platinum Mobile Features

• First truly hands free POC with app-enabled remote flow control
• • Enables flow control from up to 25ft from device, shows battery time remaining in hrs. and mins, comprehensive information hub for patient
  • Provider portal helps drive lower total cost of ownership
  • Integrated system drives value for both provider and patient
• Easiest battery management system
• • Top-loadfeature: never remove bag to insert batteries
  • Hot-swapcapable: never interrupt O2 supply to swap batteries

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Appendix

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Highly Engaged and Diversified Board of Directors

Governance, insight and strong industry experience to guide Invacare and represent shareholders' interests

C. Martin Harris,			Petra
M.D.	Susan H.	Julie	Danielsohn-Weil,	Diana S.	Marc M.	Matthew E.	Clifford D.	Baiju R.
(Lead Director)	Alexander	Beck	Ph.D.	Ferguson	Gibeley	Monaghan	Nastas	Shah

Associate VP,

Executive VP,

CFO, NOVA

Retired, former

Principal and

CEO, Nutritional

Chairman,

CEO & President,

Managing

Health Enterprise

Chief Legal

Chemicals

Regional

Founder, Scarlett

Medicinals, LLC

President and

Tempel Steel

Director,

& Chief Business

Officer and

Corporation

President, Pfizer

Investments LLC

CEO, Invacare

Accelevate

Officer, Dell

Secretary, Biogen

Essential Health -

Ventures

Medical School at

Europe

U. of Texas

CEO

Healthcare

International

Financial

Turnaround

0-5 years

Diversity*

Independent

Public

NYSE: TMO, NYSE: CL,

NASDAQ: BIO

NYSE: NOVA

NYSE: PFE

NYSE: SBH,

SIX: RO

NASDAQ: SYNH,

NASDAQ: MASC

NYSE: CFG

Company

NASDAQ: HSTM

Chemicals

NASDAQ: MAT, FTR

NYSE: ZBH

* Based on race, gender, ethnicity

Invacare Investor Presentation - Dec 4, 2020

Experienced Management Team

Motivated team with years of international and healthcare industry experience

I N V A C A R E C O R P O R A T I O N

Executive Management

Matt Monaghan

Chairman, President and Chief Executive Officer

Tenure: 5 years

Experience: Healthcare, business turnaround, engineering, finance, private equity

Kathy Leneghan

SVP & Chief Financial Officer

Tenure: 29 years

Experience: International finance, public audit

John Watkins

SVP, Quality Assurance & Regulatory Affairs Tenure: 4 years

Experience: Quality, regulatory and operations in healthcare, manufacturing, engineering, planning, sourcing, Six Sigma

Executive Management

Anthony LaPlaca

SVP, General Counsel, Chief Administrative Officer & Secretary

Tenure: 11 years

Experience: Legal, risk management, corporate governance, intellectual property, human resources, corporate communications, national law firm

Angela Goodwin

Chief Information Officer Tenure: 1 year Experience: Global IT and ERP implementation

Business Leaders

Ralf Ledda

SVP & GM, Europe Tenure: 23 years

Experience: Industrial engineering, electromotive technology, lean production system, medical device commercialization

Geoff Purtill

VP & GM, Asia Pacific

Tenure: 9 years

Experience: Sales, marketing, customer service, supply chain, medical device commercialization

Joost Beltman

SVP & GM, North America

Tenure: 12 years

Experience: Sales, marketing, commercial leadership, customer service, post-merger integration, supply chain

Invacare Investor Presentation - Dec 4, 2020

I N V A C A R E C O R P O R A T I O N

Convertible Debt Summary

Terms	2021	2022	2024 Series I	2024 Series II	Total
Par Value (as of Sep 30, 2020)	$1.3M	$81.5M	$72.9M	$73.9M	$232.0M
Maturity date	Feb 15, 2021	Jun 1, 2022	Nov 15, 2024	Nov 15, 2024	--
Interest rate	5.0%	4.5%	5.0%	5.0%	4.8%
Conversion price	$16.65	$16.23	$14.78	$14.78	--
Soft call price	--	--	$19.21	$19.21	--
Contingent conversion price *	$21.65	$21.10	--	--	--
Warrant price	$22.42	$21.44	--	--	--
Maximum debt accretion**	--	--	--	$16.6M
Convertible debt quote at 12/3/20	100.5	95.1	94.2	97.4	--
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	0.00	0.07	0.07	0.14
IVC stock at $20	0.00	0.00	1.29	1.31	2.60

*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 34.5 million shares outstanding as of 9/30/20 and assuming net share settlement

Invacare Investor Presentation - Dec 4, 2020

N

Reconciliation of Non-GAAP Performance Metrics to GAAP Financial Measures

I N V A C A R E C O R P O R A T I O

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 company's earnings press release for the third quarter 2020. The company uses non-GAAP financial measures including the following:

• "Adjusted EBITDA" - EBITDA plus equity compensation and charges related to restructuring activities.
• "Constant currency net sales" - net sales excluding the impact of foreign currency translation and divestiture.
• "Constant currency sequential net sales" - a given quarter's net sales compared to the most recent prior quarter's net sales with each quarter's net sales translated using the prior quarters foreign exchange rates.
• "Constant currency SG&A" - SG&A excluding the impact of foreign currency translation and divestiture.
• "Constant currency sequential SG&A" - a given quarter's SG&A expense compared to the most recent prior quarter's SG&A expense with each quarter's SG&A expense translated using the prior quarters foreign exchange rates.
• "EBITDA" - net earnings (loss) from continuing operations plus: income taxes, interest expense-net, net gain or loss on debt extinguishment including debt financing charges and fees, net gain or loss on convertible debt derivatives, gain/loss on sale of business, asset write-downs related to intangible assets, and depreciation and amortization.
• "Free cash flow" - net cash provided (used) by operating activities less purchases of property and equipment plus proceeds, including the advances from sales of property and equipment.

(Dollars in millions)		3Q19				2Q20		3Q20
Net Loss	(8.0)	(16.6)	(7.3)
Income Taxes	3.3	0.7	2.1
Loss Before Taxes	(4.7)			(15.9)		(5.2)
Interest Expense*	7.3	13.7	8.2
Interest Income	(0.1)	(0.0)	(0.0)
Operating Income (Loss)	2.4			(2.2)		2.9
Operating Income (Loss)	2.4	(2.2)	2.9
Depreciation and Amortization	4.0	3.3	3.7
Gain on Sale of Business	-	(0.2)	-
EBITDA	6.4	0.8	6.6
Restructuring Charges	1.6			1.7		1.6
Stock Compensation	1.6	4.1	1.6
Adjusted EBITDA		9.6			6.6		9.8
Net Cash Provided by Operating Activities	15.1	6.5	4.1
Plus: Sales of PPE, including advances	(0.0)	(0.4)	(0.0)
Less: Purchases of Property and Equipment	(2.9)	(8.8)	(5.9)
Free Cash Flow		12.3			(1.9)		(1.8)
Reported Net Sales % Change	-3.6%	-16.8%	-10.1%
Less: Foreign Exchange Impact	-2.7%	-1.9%	1.5%
Less: Impact of Divested Entities	0.0%	-2.0%	-1.6%
Constant Currency Sales % Change		-0.9%			-12.9%		-10.0%
Reported SG&A % Change	-9.2%	-15.9%	-12.6%
Less: Foreign Exchange Impact	-1.6%	-1.0%	1.5%
Less: Impact of Divested Entities	0.0%	-1.7%	-1.6%
Constant Currency SG&A % Change		-7.6%			-13.2%		-12.5%

* includes loss on debt ext inguishment including financing charges & fees

Invacare Investor Presentation - Dec 4, 2020