Invacare : I.R. Presentation 8.17.20

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

Presentation (NYSE: IVC)

g u s t 1 7 , 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 second 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 June 30, 2020, unless otherwise noted.

Invacare Investor Presentation - August 17, 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 - August 17, 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 June 30, 2020, the company had TTM revenue of $883M 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 - August 17, 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)

O R A T

Move

Custom power and manual

Rest

Home care and long-term care

Breathe Hygiene

Respiratory therapy products

Safe patient handling and hygiene

C O R P

wheelchairs and custom seating

• Alternative drive controls and touch-screen technology
• Informatics

beds and therapeutic support surfaces

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

• Stationary and portable oxygen concentrators
• HomeFill® Oxygen systems

• Patient transfer and bathing equipment ensures resident and 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 - August 17, 2020

Reported Net Sales *

ON		$450		$883
	$414
I		$400		Million*
T		$366
A		$350
O R
	$300
O R P	millions)	$250
$200
C	(in
E		$150
A R		$100	$78
C		$50
A			$25
V		$0
N
	Lifestyles	Mobility & Respiratory	Other
I
		Seating

* TTM sales as of June 30, 2020

Invacare Investor Presentation - August 17, 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

C O R P O R A T I O N

Strong Global Presence

$497M

$346M

Europe (56%)*

North America (39%)*

$40M

Asia Pacific (5%)*

I N V A C A R E

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

* TTM sales as of June 30, 2020

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

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

Sales and distribution facilities in Australia, New Zealand and Thailand

Invacare Investor Presentation - August 17, 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 - August 17, 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	TTM 2Q20 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 - August 17, 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 - August 17, 2020

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

Innovation Pipeline

Supporting sales growth with frequent introduction of clinically innovative solutions

Aug

Invacare® TDX® SP2 w/

LiNX® technology

Rovi® X3 with gyro and high-speed motors

Top End® EliminatorTM

May

Feb

Invacare® Top End®

NRG Racing Chair

SMOOV

Preliminator racing

One™ Power

wheelchair

May

Add On

May

E-pilot P15

Power Add

Cruise Mode

on Alber®

On

Mar

Twion® power

Invacare®

Sep

Orion

assist device

Invacare®

and Comet

Action® manual

Scooters

wheelchairs

2017

2019

2018

Apr

Jan

Invacare

Bed

Stand Assist

Oct

Sep

safety

Ocean Ergo

and

Enhanced

hygiene

Platinum®

Commode

May

May

products

Mobile®

chair

May

Birdie Evo

Birdie Evo

Outcomes by

concentrator

Xplus Lifter

Lifter

DesignTM

with

post-acute

Connectivity

NordBed

solutions

Rehab (Mobility and

Seating)

Post Acute Care (Lifestyle)

Respiratory

Mar

AVIVA FX /

AVIVA RX

SepPower

Wheelchairs

MPS Maxx

Modular Power	Apr
Standing System

MPS Mini

Maxx

Standing

System

2020

Sep

Platinum®

Mobile® concentrator with remote control functionality

Invacare Investor Presentation - August 17, 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 - August 17, 2020

O R A T I O N

Transformation Highlights

We are transforming to regain market leadership

C O R P

Key

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

I N V A C A R E

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 - August 17, 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 - August 17, 2020

Second Quarter 2020 Financial Highlights

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

Operating Loss

Improved $2.3 million due to:

• Reduced SG&A expenses
• Higher gross margin of 130 basis points partially offset by higher restructuring costs
• North America returned to profitability, generating $4.8 million of operating income

2Q19 2Q20

$0.0

($1.0)

($2.0)

($2.2)

($3.0)+50%

($4.0)

($5.0)($4.5)

Adjusted EBITDA

Improved $3.0 million driven by:

• $8.8 million reduction in constant currency SG&A expenses
• Partially offset by lower total sales and gross profit
• Favorable sales mix of higher acuity products

$8.0

$6.6

$6.0

+84%

$4.0$3.6

$2.0

$0.0

2Q19 2Q20

Free Cash Flow

Decreased by $2.1 million due to:

• Increased capital expenditures
• Higher inventory partially offset by higher A/P and payment deferrals

2Q19 2Q20

$1.0

$0.3

$0.0

($1.0)

($2.0)

($1.9)

Transformation initiatives and strong cost containment measures drive improved profitability

Invacare Investor Presentation - August 17, 2020

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

$160

$140

$120

$100

$80

$60

$40

$20

$0

Reported Net Sales

(in millions)

	$5	$5	$4
	$5	$4
$5	$5
$5				$5
				$5
			$64	$5
$54	$63	$68	$6
			$53
				$40

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

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

Lifestyles

Mobility & Seating

Respiratory

Other

PERFORMANCE BY SEGMENT - Europe

Segment Highlights

56% of total reported net sales on a TTM basis as of 6/30/20

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)

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 - August 17, 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
$14
$14	$12	$11	$15
	$20
$28	$30	$31	$32	$30	$26

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

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

Lifestyles		Mobility & Seating		Respiratory		Other

PERFORMANCE BY

SEGMENT - North

America

Segment Highlights

39% of total reported net sales on a TTM basis as of 6/30/20

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 - August 17, 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
$8
		$7		$7								$0
$6
						$6		$5
														$3
$4
$2
					$3					$3		$4
$3			$3		$3
$0
1Q19	2Q19	3Q19	4Q19	1Q20*	2Q20*
				Lifestyles		Mobility & Seating			Respiratory			Other

• Excludes sales from Dynamic Controls as of March 7, 2020 Invacare Investor Presentation - August 17, 2020

PERFORMANCE BY

SEGMENT - All Other

(Asia Pacific)

Segment Highlights

5% of total reported net sales on a TTM basis as of 6/30/20

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

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

As of June 30, 2020

Debt *

Total Debt of $319 million

• $37 million drawn on the ABL credit facility and government loan programs
• $254 million in convertible debt
• $28 million of other debt, primarily financing leases

	Debt Maturities
$160	(as of 6/5/20)	$146.8
$140
$120
$100	$81.5
$80
$60
$40	$25.7
$20

$0

Feb 2021 Jun 2022 Nov 2024

Cash

Total Cash increased to $104 million due to:

• Cash borrowed on the company's credit facility
• Proceeds from the sale of Dynamic Controls
• Government loan programs
• Partially offset by cash used to fund operations and cash paid to extend a portion of convertible debt in 2Q20

$120$104

$100

$80

$80

$60 $40 $20 $0

12/31/19 6/30/20

Balance Sheet Highlights

On June 5, 2020, 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 $15.9 million in operating lease obligations capitalized on the balance sheet

Invacare Investor Presentation - August 17, 2020

COVID-19 Business Dynamics

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

I N V 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%	2Q20

Elevated Respiratory demand continues

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

time

Mobility & Seating past bottom as clinic / healthcare access returns

Respiratory and Beds/Lifestyles

• Strong demand for stationary oxygen concentrators for COVID-19 response; began in late 1Q20 and continues today
• Smaller peak for bed systems - initial strong demand for expanded medical facilities and post-discharge home care offset by lower demand from limited access to residential care facilities and lower demand for post-elective surgery care. 2Q20 COVID-19 peak has passed; residential care facility access and elective procedures expected to resume
• Timing of return to more normal sales rates TBD based on course of pandemic

Mobility & Seating

• Good momentum in 1Q20 driven by power mobility products with new product growth and improved commercial effectiveness
• Limited access to clinicians from late-1Q20 for custom fitting reduced sales
• Order volume expected to increase as access to clinicians enables custom fittings and deliveries

All Products

NB - For illustrative purposes only; not drawn to scale

• Overall, higher value sales mix due to lower demand of low acuity products and elective procedures, which were delayed due to public health measures

Invacare Investor Presentation - August 17, 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 2020, 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
  • Implemented salary reductions for senior executives and the Board of Directors
  • Added temporary surcharges on certain orders to mitigate increase from expediting materials
  • Reducing discretionary spending

Balance Sheet & Cash

• Preemptively borrowed under the bank credit facility
• Accessed government-based loans and other programs which bolster short-term liquidity, including loans and temporary delays of direct and indirect tax payments
• Extended a significant portion of convertible debt maturing in 2021 and 2022, to 2024

Invacare Investor Presentation - August 17, 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 - August 17, 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	Kuschall
	Custom Manual
	AVIVA RX (Europe)
▪	Advanced seating and	▪ Unique hydroforming technology

positioning systems	resulting in a stiffer frame
without added weight

• Unique suspension systems resulting in a smooth stable ride
• Standing capabilities on FWD platform

Invacare Investor Presentation - August 17, 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 - August 17, 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 - August 17, 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 - August 17, 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 - August 17, 2020

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

Appendix

Invacare Investor Presentation - August 17, 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 - August 17, 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	Executive Management
Matt Monaghan	Anthony LaPlaca
Chairman, President and Chief Executive	SVP, General Counsel, Chief Administrative
Officer	Officer & Secretary
Tenure: 5 years	Tenure: 11 years
Experience: Healthcare, business	Experience: Legal, risk management,
turnaround, engineering, finance, private	corporate governance, intellectual property,
equity	human resources, corporate
	communications, national law firm
Kathy Leneghan
SVP & Chief Financial Officer	Angela Goodwin
Tenure: 29 years	Chief Information Officer
Experience: International finance, public	Tenure: 1 year
audit	Experience: Global IT and ERP
	implementation

John Watkins

SVP, Quality Assurance & Regulatory Affairs

Tenure: 4 years

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

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 - August 17, 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
Amount	$25.7M	$81.5M	$72.9M	$73.9M	$254M
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 8/14/20	95.6	86.5	84.0	87.0	--
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 34.4 million shares outstanding as of 6/30/20 and assuming net share settlement

Invacare Investor Presentation - August 17, 2020

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

Reconciliation of Non-GAAP Performance Metrics to GAAP Financial Measures

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 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 Appendix A of the 1Q20 earnings release. The company uses non-GAAP financial measures including the following:

"Adjusted EBITDA" is EBITDA plus equity compensation and charges related to restructuring activities.

"Adjusted net loss" is net earnings (loss) before income taxes net of adjusted income taxes.

"Constant currency net sales" is net sales excluding the impacts of foreign currency

translation and divestiture.

"Constant currency SG&A" is SG&A excluding the impacts of foreign currency translation and divestiture.

"EBITDA" is 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" is 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)		2Q19		2Q20
Net Loss	(12.7)	(16.6)
Income Taxes	2.1	0.7
Income Loss Before Taxes	(10.6)		(15.9)
Interest Expense*	7.7	13.7
Interest Income	(0.1)	(0.0)
Net Gain on Convertible Debt Derivatives	(1.5)	-
Operating Loss		(4.5)		(2.2)
Operating Loss	(4.5)	(2.2)
Depreciation and Amortization	3.9	3.3
Gain on Sale of Business	-	(0.2)
EBITDA		(0.6)		0.8
Restructuring Charges	1.3	1.7
Stock Compensation	2.9	4.1
Adjusted EBITDA		3.6		6.6
Net Cash Provided (Used) by Operating Activities	2.7	6.5
Plus: Sales of Property and Equipment, including advances	(0.0)	(0.4)
Less: Purchases of Property and Equipment	(2.5)	(8.8)
Free Cash Flow		0.3		(1.9)
Reported Net Sales % Change	-4.2%	-16.8%
Less: Foreign Exchange Impact	-4.8%	-1.9%
Less: Impact of Divested Entities	0.0%	-2.0%
Constant Currency Sales % Change		0.6%		-12.9%
Reported SG&A % Change	-7.5%	-15.9%
Less: Foreign Exchange Impact	-3.7%	-1.0%
Less: Impact of Divested Entities	0.0%	-1.7%
Constant Currency SG&A % Change		-3.8%		-13.2%

* includes loss on debt extinguishment including fin charges & fees

Invacare Investor Presentation - August 17, 2020