Masimo : Q2 2022 Supplemental Presentation to Earnings Press Release

Masimo Earnings

Second Quarter 2022

Safe Harbor Statement

These presentations contain forward-looking statements within the meaning of federal securities laws, including, among others, statements about our expectations, plans, strategies or prospects. We generally use the words "may," "will," "expect," "believe," "anticipate," "plan," "estimate," "project," "assume," "guide," "target," "forecast," "see," "seek," "can," "should," "could," "would," "intend," "predict," "potential," "strategy," "is confident that," "future," "opportunity," "work toward," and similar expressions to identify forward- looking statements. All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual results to differ materially from the forward-looking statements. Forward-looking statements speak only as of the date they are made, and we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of these presentations are cautioned not to rely on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary statement is applicable to all forward-looking statements contained in these presentations. The risks and uncertainties that may cause actual results to differ materially from Masimo's current expectations are more fully described in Masimo's reports filed with the U.S. Securities and Exchange Commission (SEC), including our most recent Form 10-K and Form 10-Q. Copies of these filings, as well as subsequent filings, are available online at www.sec.gov, www.masimo.com or upon request.

The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with U.S. GAAP. The non-GAAP financial measures presented exclude certain items that are more fully described in the Appendix. Management believes that adjustments for these items assist investors in making comparisons of period-to-period operating results. Furthermore, management also believes that these items are not indicative of the Company's on-going core operating performance. These non-GAAP financial measures have certain limitations in that they do not reflect all of the costs associated with the operations of the Company's business as determined in accordance with GAAP. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by the Company may be different from the non-GAAP financial measures used by other companies. The Company has presented the following non-GAAP financial measures to assist investors in understanding the Company's core net operating results on an on-going basis: (i) constant currency revenue growth %, (ii) non-GAAP gross profit/margin %, (iii) non-GAAP SG&A expense, (iv) non-GAAP R&D expense, (v) non-GAAP litigation settlements and (awards), (vi) non-GAAP operating expense %, (vii) non-GAAP operating income/margin %, (viii) non-GAAP earnings per diluted share and (ix) adjusted free cash flow. These non-GAAP financial measures may also assist investors in making comparisons of the company's core operating results with those of other companies. Management believes these non-GAAP financial measures are important in the evaluation of the Company's performance and uses these measures to better understand and evaluate our business. For additional financial details, including GAAP to non-GAAP reconciliations, please visit the Investor Relations section of the Company's website at www.masimo.com to access Supplementary Financial Information.

Second Quarter 2022 Business Highlights (1)

Business Highlights	Healthcare
Completed acquisition of Sound United on	Healthcare revenue of $357 million, representing
April 11, 2022;	17% reported growth and 19% constant currency
Invested $401 million to repurchase 3 million	growth;
shares of Masimo common stock, representing a	Shipped 77,100 technology boards and
5% reduction of our shares outstanding; and	instruments during the quarter; and
Approved a new program to repurchase up to an	Shipped 2.4 million technology boards and
additional 5 million shares over the next 5 years.	instruments over the last 10 years, increasing 7%
	over the prior year period; and
	Launched the Masimo W1 biosensing health
	watch under a limited market release.

Non-Healthcare

Non-healthcare revenue of $208 million from April 11, 2022 through fiscal quarter end;

On a pro forma basis for the full quarter, non-

healthcare revenues were $215 million, representing 4% reported growth and 10% constant currency growth; and

Bowers & Wilkins launched its new wireless, active noise cancelling Px7 S2 headphones.

1. Non-GAAPmeasures shown have been adjusted for certain items that are fully described in the Appendix. Please visit the Investor Relations section of the Company's website at www.masimo.comto access additional information related to our Non-GAAP adjustments and Supplementary Financial Information.

Second Quarter 2022 Financial Highlights (1)

Revenue

$565

million

Healthcare revenue of $357 million, representing 17% reported growth and 19% constant currency growth;

AND

Non-healthcare revenue of $208 million from April 11, 2022 through fiscal quarter end.

Non-GAAP

Gross Margin

54.7%

Healthcare 66.3%;

AND

Non-healthcare34.8%.

Non-GAAP	Non-GAAP
Operating Profit	EPS

$107	$1.35
million	per share

Consolidated Non-GAAP operating	Consolidated Non-GAAP earnings
profit of $107 million, representing	per diluted share of $1.35,
49% reported growth.	representing 44% reported growth.

1. Non-GAAPmeasures shown have been adjusted for certain items that are fully described in the Appendix. Please visit the Investor Relations section of the Company's website at www.masimo.comto access additional information related to our Non-GAAP adjustments and Supplementary Financial Information.

Second Quarter 2022 Actual vs. Prior Year | Non-GAAP (1)

(In millions; except EPS)		Actual				Prior Year				vs. Prior Year
Revenue		$565	$305	85%
Healthcare		357	305	17%
Non-Healthcare		208				N/A				N/A
Gross Profit		$309	$197	57%
Healthcare		237	197	20%
Non-Healthcare		73				N/A				N/A
Gross Margin		54.7%	64.7%				-1000 bps
Healthcare		66.3%	64.7%				160 bps
Non-Healthcare		34.8%				N/A				N/A
Operating Profit		$107	$71	49%
Healthcare		106				N/A				N/A
Non-Healthcare		15				N/A				N/A
Corporate Overhead		(15)				N/A				N/A
Operating Margin		18.9%	23.4%				-450 bps
Non-Operating Inc. / (Exp.)		($4)	$0	-2711%
Pre-Tax Income		$103	$72	44%
Income Taxes		$28	$18	61%
Tax Rate		27.4%	24.5%				290 bps
Net Income		$75	$54	38%
Shares		55.3	57.4	-4%
Earnings Per Share		$1.35	$0.94	44%

Pro Forma Constant Currency Revenue Growth

Consolidated	15%
Healthcare	19%
Non-Healthcare	10%

1. Non-GAAPmeasures shown have been adjusted for certain items that are fully described in the Appendix. Please visit the Investor Relations section of the Company's website at www.masimo.comto access additional information related to our Non-GAAP adjustments and Supplementary Financial Information.