InfuSystem 8K Certain statements contained in this presentation are forward-looking statements and are based on future | INFU 2 Feb 16

CORPORATE PRESENTATION

FEBRUARY 2016

(NYSE MKT: INFU)

Exhibit 99.1

Safe Harbor Statement

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Certain statements contained in this presentation are forward-looking statements and are based on future

expectations, plans and prospects for the business and operations of InfuSystem Holdings, Inc. (“InfuSystem”

or “the Company”) that involve a number of risks and uncertainties. In connection with the “safe harbor”

provisions of the Private Securities Litigation Reform Act of 1995, the Company is identifying certain factors

that could cause actual results to materially differ from those indicated by these forward-looking statements.

Those factors, risks and uncertainties include, but are not limited to: potential changes in overall healthcare

reimbursement, including CMS competitive bidding; sequestration; concentration of customers; increased

focus on early detection of cancer; competitive treatments; dependency on Medicare Supplier Number;

availability of chemotherapy drugs; global financial conditions; changes and enforcement of state and federal

laws; dependency on suppliers; risks associated with acquisitions and joint ventures, including integration risks;

US Healthcare Reform; relationships with healthcare professionals and organizations; technological changes

related to infusion therapy; dependency on websites and intellectual property; dependency on key personnel;

dependency on banking relationships; risks associated with our common stock, as well as any litigation to

which the Company may be subject from time to time; and other risk factors as discussed in the Company’s

annual report on Form 10-K for the year ended December 31, 2014 and in subsequent filings made by the

Company from time to time with the Securities and Exchange Commission (the “SEC”), which can be obtained

via the SEC’s Edgar website or by contacting the Company or the SEC. Forward-looking statements in this

presentation are made the date hereof, and, unless required by law, the Company disclaims any duty to

supplement, update or revise such statements, whether as a result of subsequent developments, changed

expectations or otherwise. The Company regularly posts important information to the investors section of its

website.

InfuSystem

provides infusion pumps and related products and services for

patients in the home, oncology clinics, ambulatory surgery centers, and other

health care sites.

•

Improving access to quality medical equipment required by clinicians

•

Delivering products and processes that drive down the cost of infusion care

•

Promoting patient care and safety, optimizing clinical outcomes

About InfuSystem

(NYSE MKT: INFU)

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Investment Highlights

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

•

InfuSystem

is a dominant provider in the at-home

oncology infusion pump market

•

30%+ market share

•

Business generates substantial annual cash flow

•

$16.1 M AEBITDA in 2014

•

$8.5 M of Free Cash Flow*

•

Substantial barriers to entry for potential new

market entrants

•

Pump fleet / Insurance contracts / EMR

•

12 of the last 13 quarters have been profitable

•

New management team took over 3 years ago

•

Strong gross margins, consistently above 70%

•

Industry leading EMR connectivity to hospitals and

clinics

•

Significantly Reduced Cost of Capital

$39.0

$47.2

$54.6

$58.8

$62.3

$66.5

$68.8

$10

$20

$30

$40

$50

$60

$70

$80

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

TTM

9/30/15

Revenue

$10.3

$13.1

$16.0

$16.1

$17.4

$10

$12

$14

$16

$18

$20

FY2011

FY2012

FY2013

FY2014

TTM 9/30/15

Adjusted EBITDA*

2014 does NOT add-back the following charges: G&A expense on IT and Pain

Management initiatives of $0.7M, a write-off of pumps $0.4M, severance of $0.2M

*See appendix for Reg G tables. Free Cash Flow = “Adjusted EBITDA” less “Replacement Cost of

Retired Pumps” less “Scheduled Debt Payments of Principal” less “Interest on Debt”

InfuSystem: Leading Provider of Oncology

Infusion Pumps

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Core Business: Leading provider to Patients, Hospitals

and Infusion Clinics in North America

•

InfuSystem

enables oncology patients the comforts

of at-home treatment

•

Permits hospitals and clinics access to INFU’s large

inventory without a capital equipment purchase,

while improving patient outcomes and driving down

healthcare costs.

•

INFU generates consistent recurring rental revenue

Key Differentiators / Competitive Advantages

•

Largest inventory & fleet of infusion pumps: ~60,000*

•

~340 payor

networks under contract*

•

~1,700 customer/facility count*

•

World-class ISO service centers

•

Significant barriers to entry for new participants

Growth Drivers

•

Pain Management expansion and other cancers

•

Innovative EMR connectivity “InfuConnect” with

hospitals and clinics

•

Expanded

portfolio

infusion

disposable

sales

•

New infusion drugs

Four Revenue Streams to Drive Cash Flows

(FY 2014)

*As of September 30, 2015

Rental: Patient-Based

(TPP)

Rental: Hospital &

Home Care Based (DP)

Sales: Product Sales

Rental: Service and

Repair

72%

13%

12%

Dominant Player in Our Niche

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

•

InfuSystem

pumps permit oncology patients to

receive treatment in the comfort of their home.

•

24/7 on-call oncology nurses

•

InfuSystem is the market leader with more than

~1,700*

customer/facility

count

hospitals

and

oncology practice sites served in North America.

•

13 of the 20 top leading cancer institutions

•

Total home infusion market is $10 billion.

•

Oncology market treatable via continuous

infusion is estimated to exceed $200 million

annually.

•

Cancer rates growing (NIH)

•

In 2015 1.7M new cases of cancer in U.S.

•

39.6% of men & women will be diagnosed

with cancer during their lifetimes

•

U.S. cancer care could reach $156 billion in

2020

•

At-home treatment substantially drives down

healthcare costs as mandated by ACA.

Ambulatory Continuous Infusion Opportunity**

(Oncology)

*As of September 30, 2015

**Management estimates

30%

15%

25%

20%

InfuSystem

OIS

Home Care

Ownership

Disposable

InfusAID

Other

Management Executing On

Value-Creation Strategy

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

New management team focused on “Value-

Creation Strategy” through series of strategic

initiatives

Four unique business models to capture

increasing share of market opportunity and

benefit

from

changing

payor

mix

Accretive acquisition to expand market share

“Land Grab”

Expanding into adjacent addressable markets

to drive growth

Investments into next generation systems and

technologies to increase customer retention

Improving product utilization to increase return

on investment

Effective cash utilization through decreased

borrowing rates

18.8%

22.3%

25.6%

24.2%

25.3%

15%

17%

19%

21%

23%

25%

27%

FY2011

FY2012

FY2013

FY2014*

TTM 9/30/15

Adjusted EBITDA Margins

2014 does NOT add-back the following charges: G&A expense on IT and Pain

Management initiatives of $0.7M, a write-off of pumps $0.4M, severance of $0.2M

Value-Creation Strategy

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

FOUR REVENUE STREAMS DRIVING

CASH FLOWS

Four Revenue Streams to Drive Cash Flows

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Patient-Based

Rental (TPP)

72% of 2014 Sales

•

A hospital/clinic provides

an INFU pump to a

patient to be utilized for

at-home therapy

•

InfuSystem

bills patients

insurance company for

payment

Hospital-Home Care

Based Rental (Direct)

13% of 2014 Sales

•

A hospital/clinic rents an

INFU pump on a short

term basis or clients

choose to always rent

•

INFU bills hospital/

clinic a flat rental rate

Service & Repair

3% of 2014 Sales

•

InfuSystem

will service

and repair pumps for

OEMs, other secondary

market infusion pump

companies, and

hospitals/clinics

Rental Revenue

88% of 2014 Sales

Product Sales

12% of 2014 Sales

•

InfuSystem

will refurbish

pumps for sale to

hospitals/clinics

•

Customer has option

to sell back pre-owned

pumps

•

Ability to sell new pumps

•

Disposables for new and

used pumps

$7.8

$5.4

$6.3

$7.8

$6.7

FY2011

FY2012

FY2013

FY2014

TTM as of

9/30/15

Revenue Growth -

Rental and Sales

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Product Sales

$42.7

$48.2

$49.5

$52.9

$57.4

$4.1

$5.3

$6.5

$5.8

$4.8

$46.8

$53.5

$56.0

$58.7

$62.2

$20

$25

$30

$35

$40

$45

$50

$55

$60

$65

FY2011

FY2012

FY2013

FY2014

TTM as of

9/30/15

Net Collected Rental Revenue

Bad Debt

Rental Revenues

(Gross to Net Collected)

Net Collected Revenue

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

14.6%

12.3%

9.7%

12.4%

12.2%

14.2%

9.7%

8.7%

6.6%

7.9%

7.3%

8.6%

10%

12%

14%

16%

Q412

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Bad Debt as a Percent of Rental Revenue

As new healthcare laws have been enacted, the focus on

net collected revenue becomes increasingly important as

a direct result of focus on contractual insurance changes

Company's increased focus on collecting patient billings

•

In-Network agreements

•

Improved billing protocol

•

High diversification of providers and payors

•

No single healthcare provider represents more

than 7% of Patient-Based Revenue (TPP)

Patient-Based

Rental

Payor

Mix

(FY2014 Cash Collections)

30%

19%

41%

Medicare

Patient

Commercial

BCBS

Medicaid

Strong Customer “Stickiness” Leads to High

Revenue Predictability

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

•

Strong value placed on hospital/clinic

contracts and relationships due to strong

“reorder/recurring” revenue component

•

InfuSystem

provides patient-based pump

rentals through ~1,700* customer/facility

count (clinics/hospitals) with ~340* payor

networks under contract

•

Customer count has declined through market

consolidation, with INFU on the winning side

•

Oncology clinics/hospitals that account for

98.7% of patient-based pump rentals in 2013

also rented a pump in 2014

•

Average customer tenure (weighted by

number of pump rentals in 2014) is 9.2 years

Percent of Pump Rentals by Oncology

Clinics that Reordered in 2014 vs 2013

1,400

1,600

1,800

1,500

1,700

230

245

260

270

340

400

800

1,200

1,600

2,000

2,400

FY2011

FY2012

FY2013

FY2014

TTM 9/30/15

Customer/facility count

Payor Neworks under Contract

Growth in Oncology Customers and

Payor

Networks under Contract

*As of September 30, 2015

% of Continuing Customers

Lost Customers

98.7%

1.3%

Value-Creation Takeaway

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

STRATEGIC ACQUISITIONS TO

STRENGTHEN MARKET SHARE IN

CORE ONCOLOGY BUSINESS

Strategic Acquisition to Increase Market Share

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

InfuSystem

has the largest inventory of home

infusion pumps for the oncology market in the U.S.

•

April

2015,

the

company

acquired

Ciscura

Holding

Company, Inc., based in Alpharetta, Georgia

•

Acquired inventory of approximately 1,800

infusion pumps

•

Expand

market

with

additional

106 new

infusion clinics relationships for Infusystem

primarily throughout the Southeast

•

Offer InfuConnect

(EMR) solutions and product

portfolio: pole mounted infusion pumps and

disposables, catheter care kits and chemo safety

products (USP 800)

•

Open new Southeast Service Center

•

Enables same day service for equipment and

supplies to much of the Southeast region

“The right pump, the right place, and the right

time. Working and patient ready.”

Kansas City

Service Center

Madison Heights

Service Center

Future Northeast

Service Center

(est. 2016)

Atlanta

Service Center

(2015)

Los Angeles Area

Service Center

Houston

Service Center

(2014)

Toronto Canada

Service Center

Faster Turnaround Times and Improved Utilization

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

InfuSystem

Service Centers

•

Reduced cost of air shipments

•

Improved utilization of pump fleet

•

Increased market share of

“Same-Day” rental market

•

ISO 9001 Certification and CHAP

accredited quality

•

Annual pump recertification

•

Maintenance & Warranty

•

Ability to service smart pumps

•

Hub and Spoke Model

Value-Creation Takeaway

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

EXPANDING INTO ADJACENT

ADDRESSABLE MARKETS TO

DRIVE GROWTH

INNOVATION

TEAMWORK

INTEGRITY

FOCUS

PEOPLE

FIRST

Pain

relieving

effects

peripheral

nerve

block can be extended by using a continuous

peripheral

nerve

block

catheter,

local

anesthetic & an electronic infusion pump

•

Growing

therapy

estimated

$700

million market

•

5.7 million orthopedic surgeries annually

•

50% are projected to be Continuous

Peripheral Nerve Block Candidates

•

Pain

most

common

reason

Americans

access

the health care system

•

Leading cause of disability

•

Major

contributor

health

care

costs.

•

Per

National

Center

for

Health

Statistics

(2006), approximately

76.2

million,

every

4 Americans

suffered

from

pain

that

last

longer

than

hours

Expansion into At-Home Pain Management

Infusion Pump Market

Value-Creation Takeaway

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

INVESTMENTS INTO NEXT GENERATION

SYSTEMS AND TECHNOLOGIES TO

INCREASE CUSTOMER RETENTION

InfuConnect: Enhancing Customer Retention and

Future Growth Driver (EMR)

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

EMR Integration –

Simple as 1-2-3

•

Industry-Leading True-

Paperless Solution

•

More accurate / More efficient

•

Smart Data Listener & Extractor

•

Save up to 20 minutes per patient

•

Clinics can do more with the time they

have

Ambulatory Infusion Made Easy

•

On Any Device, Auto loaded

•

Fastest Implementation

•

Manage Patients

•

Monitor Inventory

•

Sign Orders

•

Order Supplies

•

Patient Education and more…

InfuConnect: Life Cycle Management

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

State of the Art Asset

Tracking and Management

•

Track Assets in Real Time

•

Improve Recovery Rates

•

Extend Asset Life

•

Track From Any Device

Fleet Management Made Easy

•

Order Additional Pumps

•

Schedule Service & Repair

•

Access Recertification Docs

•

Online, Anytime

Pain Management and Reporting

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Real-Time Pain Score Reporting

•

Supporting High Patient Satisfaction

•

Online, Anytime

Value-Creation Takeaway

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

FINANCIAL OVERVIEW

Total Revenue: Total vs Net Collected

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

$35.0

$42.7

$50.5

$53.5

$55.8

$60.7

$64.0

$4.0

$4.5

$4.1

$5.3

$6.5

$5.8

$4.8

$39.0

$47.2

$54.6

$58.8

$62.3

$66.5

$68.8

$20

$30

$40

$50

$60

$70

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

TTM as of 9/30/2015

Net Collected Revenue

Bad Debt

Total Revenues

(Gross to Net Collected)

Strong Gross and Adjusted EBITDA Margins

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Gross Margins

*2014 does NOT add-back the following charges: G&A expense on IT

and Pain Management initiatives of $0.7M, a write-off of pumps

$0.4M, severance of $0.2M

64.7%

72.9%

70.1%

71.2%

70.9%

60%

65%

70%

75%

FY2011

FY2012

FY2013

FY2014

TTM as of

9/30/15

18.8%

22.3%

25.6%

24.2%

25.3%

15%

20%

25%

30%

FY2011

FY2012

FY2013

FY2014*

TTM as of

9/30/15

Adjusted EBITDA Margins

See

Appendix

for

Reg

Reconciliation

Free Cash Flow and Adjusted EBITDA

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

$0.6

$8.9

$8.5

$10

FY2011

FY2012

FY2013

FY2014

Free Cash Flow*

See

Appendix

for

Reg

Reconciliation

$10.3

$13.1

$16.0

$16.1

$17.4

$10

$11

$12

$13

$14

$15

$16

$17

$18

FY2011

FY2012

FY2013

FY2014*

TTM as of

9/30/15

Adjusted EBITDA

See

Appendix

for

Reg

Reconciliation

*Free Cash Flow = “Adjusted EBITDA” less “Replacement Cost of Retired

Pumps” less “Scheduled Debt Payments of Principal” less “Interest on Debt”

*2014 does NOT add-back the following charges: G&A expense on IT

and Pain Management initiatives of $0.7M, a write-off of pumps

$0.4M, severance of $0.2M

Net Income and Diluted EPS

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

($0.04)

$0.00

$0.01

$0.00

$0.03

$0.04

$0.03

$0.04

$0.05

$0.03

$0.05

$0.06

($0.06)

($0.04)

($0.02)

$0.00

$0.02

$0.04

$0.06

$0.08

Net Income

($1.5)

$1.7

$3.4

$4.2

($6)

($4)

($2)

FY2011

FY2012

FY2013

FY2014

TTM as of

9/30/15*

Earnings Per Share

Fully Diluted Basis

($45)

($45.4)

*Q1, Q2, & Q3 2015 = Normalized EPS-see Appendix

for Reg

G Reconciliation

*TTM as of 9/30/15 = Normalized Net Income -

see Appendix for Reg

G Reconciliation

Increased Borrowing Facility to Expand Future

Pump Inventory

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

$31.0

$34.2

$37.2

$43.1

$45.8

$47.2

$50.0

$25

$30

$35

$40

$45

$50

$55

$5.7

$6.6

$6.4

$7.0

$11.9

$10.7

$10.9

$10

$12

$14

•

History of strong Free Cash Flows providing added borrowing capacity to expand growth of

pump inventory

•

Reduced cost of capital on new credit facility allows for increased Return on Invested Capital

•

Current rate of less than 3.0% vs 18% in 2012, 9.5% in 2013, 7.75% in 2014

•

New facility signed with Chase in March 2015

Unrestricted Liquidity*

Medical Equipment in

Service (at cost)

$29.1

$31.3

$26.7

$25.5

$33.6

$34.8

$35.2

$15

$20

$25

$30

$35

$40

Total Debt

*Cash and Equivalents + Undrawn Revolver

New $45 Million Credit Facility

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

$45 million credit facility signed with JPMorgan Chase in March 2015

•

Term is five years

•

$10

million

revolver

–

undrawn

•

$27

million

Term

Loan

–

fully

drawn

•

million

Term

Loan

–

undrawn

•

Expansion capital (including acquisition of Ciscura)

•

InfuSystem

has borrowed on this loan to fund the acquisition

of Ciscura

and associated integration costs

Interest rate drops from 7.75% to 3.0%

•

$1 million in cash interest savings potential

•

Interest expense in Q3 2015 of $338k down from Q3 2014

of $752k and YTD 2015 interest expense of $1.4m down from

YTD 2014 of $2.4m

Repayment

•

Term Loan A is repaid $965K quarterly

•

Term Loan B is repaid quarterly as a percent of the drawn ranging from

3.75% to 4.475%

Favorable covenants and terms

•

Leverage ratio maximum increased from 2.0x to 3.0x (decreases over

the term)

•

Fixed charge ratio minimum decreased from 1.75x to 1.25x

Significant Barriers to Entry

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Established, long standing relationship with oncology

practices

•

~1,700 Customer/Facility count*

•

Growing

Third

Party

Payor

contracts

•

~340 Payor

networks under contract*

•

98.7% retention of customer business

Large

fleet

ambulatory

infusion

pumps

–

~60,000

pumps

•

Generate

revenue

Rental

sale

•

Quicker

response

time

24/7

•

Replacement

value

$90

million

Geographic coverage U.S. and Canada

•

Regional

Service

Centers

–

ISO

9001

•

Same day or next day delivery of pumps

•

Pump repair and service capabilities

Economies of Scale

•

EMR Connectivity

•

Predictable reimbursements

•

Purchasing power

•

Management of pump fleet

National presence with Affordable Care Organizations (ACOs)

•

Physicians, Outpatient oncology practices, hospitals, outpatient surgery centers,

homecare practices, patient rehabilitation centers

*As of September 30, 2015

Why Invest in InfuSystem?

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Leading

Operator

Core

Business

–

Oncology

Infusion

•

Dominate player in oncology infusion market

•

Large fleet of ambulatory pumps for Rental or Sale

•

Expanding Market Share

•

Aging Population and Cancer Growth

Solid Financial Performance

•

Strong Cash Flows and Solid Gross Margin Profile

•

Solid Growth in Net Collected Rental Revenue

•

Improving Net Income

•

Significantly Reduced Cost of Capital

•

2015

Guidance

Double

Digit

Growth

Net

Collected Revenue

Growth

Drivers

Pain

Management

and

InfuConnect

(EMR)

Solutions

•

Peripheral Nerve Block and Smart Pump Growth

•

True paperless: improved work flow and billing efficiencies

New Management with Highly Focused Initiatives to Drive Value

•

Increase EMR connectivity “InfuConnect” / Expand into new markets / Reduced cost of capital /

Expand into new therapies, products and services

Gregg O. Lehman, Ph.D. Appointed Chairman of the Board

•

Elected by the board of directors in May 2015

Questions?

(NYSE MKT: INFU)

IR Contact Info:

Joe Dorame, Managing Partner

Lytham

Partners, LLC

602-889-9700

dorame@lythampartners.com

InfuSystem—Infusion Made Easy

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

APPENDIX

Company Snapshot

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

InfuSystem

Holdings, Inc.

InfuSystem

Holdings, Inc.

Summary Trading Statistics*

Commentary

Financial

Summary ($ in millions)

Financial

Summary ($ in millions)

•

Headquarters: Madison Heights, MI

•

Founded: 1998

•

Specialization: Healthcare / Medical Instruments & Supplies

•

Management: Eric Steen, President & CEO / Jon Foster, CFO /

Jan Skonieczny, COO / Mike McReynolds, CIO / Sean Schembri,

EVP GC

•

Est. Number of Employees: 200

•

LTM Revenue: $68.8M

•

LTM AEBITDA: $17.4M

•

*EV / LTM AEBITDA: 5.69x

•

Stock Price: $2.88

•

52-Wk Range: $2.22-$3.42

•

Market Cap: $64.8M

•

Enterprise Value: $99.1M

•

EV / LTM AEBITDA: 5.69x

•

P / LTM Adj. Earnings: 15.1x

•

InfuSystem

provides infusion pumps and related products

and services for patients in:

•

Patient’s home,

•

Oncology clinics

•

Ambulatory surgery centers

•

Other health care sites

•

6 Regional Service Centers serves all of North America

•

Profitable growth

•

Oncology and orthopedic surgery

•

Increased electronic connectivity

•

New products and services

•

Strategic geographic expansion

*As of 1/26/16

200,000

400,000

600,000

800,000

1,000,000

1,200,000

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

1/13

4/13

7/13

10/13

1/14

4/14

7/14

10/14

1/15

4/15

7/15

10/15

Share Price

Volume

$39.0

$47.2

$54.6

$58.8

$62.3

$66.5

$68.8

19%

22%

26%

24%

25%

10%

15%

20%

25%

30%

$10

$20

$30

$40

$50

$60

$70

$80

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

TTM

9/30/15

1/16

InfuSystem

Niche –

Extension of Clinic to Home

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Ambulatory Home Infusion

•

25-year old business model in

DME billing

•

At home, at work, at play, all while

receiving the drug

•

High satisfaction scores

•

24/7 on-call oncology nurses

•

Proven outcomes with continuous

home infusion

•

Oncology, Post Surgical Pain,

Special Disease States

Patient-Based

Rental

TPP

Payor

Contracts

Patient-Based

Rental

TPP

Payor

Contracts

•

Bills patient insurance

•

300+ Payor

Networks

under Contract

(Commercial and

Government)

•

Commercial Payors

reimburse more

therapies than CMS

•

Awarded contracts in

all 9

MSAs (1 of 4

National Vendors)

•

Average Round 1

Recompete

cuts of

~21% for our category,

per CMS ($250,000 per

beginning in

January 2014, see CMS

Competitive Bidding

Summary slide in

Appendix)

Hospital-Home Care Based Direct Payor

Business Model

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

•

Infusion pumps

•

Enteral pumps

•

InfuSystem’s

Hospital-Home Care Based (DP) business is focused primarily on the sale, rental, financing and

accompanying service of movable medical equipment to hospitals and alternate care sites who pay InfuSystem

directly –

no third-party reimbursement

•

Founded in 1998 and currently headquartered in Lenexa, KS

•

InfuSystem

services –

ISO 9001 -

and repairs movable medical equipment

•

Leading provider to alternate site healthcare facilities and hospitals in the United States and Canada

•

Home infusion providers, long-term care, physician clinics, research facilities, etc.

•

Transacts

directly

with

healthcare

providers

–

third-party

reimbursement

revenue

Service & Repair

Products

InfuSystem sells, rents and finances a wide variety of new

and used large volume and ambulatory pumps

InfuSystem services and repairs both its own fleet of

pumps and many types of other movable medical

equipment

•

Syringe pumps

•

Ambulatory pumps

•

Large volume pumps

•

Ambulatory pumps

•

Fluid collection

•

Medical equipment

Hospital-Home

Care

Based

Direct

Payor

Offerings

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

•

InfuSystem offers new pumps from top brands

•

Broker-dealer trading desk

•

In addition, over 70 models and versions of pre-owned

pumps are offered

•

Pre-owned pumps are re-built and certified by in-house

biomedical technicians to be patient ready

•

Warranty offered on pre-owned pumps

•

A variety of financing options to fit customers’ operating,

budgeting and financing parameters

•

Nationwide, industry-leading ISO 9001 service programs

•

Launching 7

location -

Northeast service center

Pre-Owned & New Pumps from Top Manufacturers

Full Spectrum of Ownership Options for Customers

Sales

Rental

Asset Management

•

Renting new or pre-owned equipment

•

Rent pumps by the day, week or month

to match swings in patient count

•

Free shipping on all rentals

•

Industry leader in sales of pre-owned

equipment, creating significant savings

•

Competitive pricing on new equipment

•

Option to sell back pre-owned pumps

•

Leasing plans offered

•

ISO 9001 Service offered

•

Service plans offered

•

Local service expansion

•

6 existing; 1 planned

•

Coordinate with Patient-Based

•

Loaner pumps available

Leading Provider of New and Pre-Owned Pumps

Medical Equipment Service & Repair

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

•

In addition to supporting and repairing InfuSystem’s

in-house fleet, the Company certifies, recalibrates,

repairs and services a variety of infusion pumps

•

Pumps require scheduled maintenance and

calibration in accordance with manufacturer’s

specifications and regulatory guidelines

•

Service and repair capabilities on high demand

services reaching end of life that are no longer

supported by manufacturers

•

ISO certification and an established quality system

strengthens relationships with major customers

•

Provides InfuSystem

an opportunity to establish a

business relationship with customers that acquired

pumps through other sources

•

Continuing and increased need for compliance with

current as well as anticipated regulations

•

28 highly qualified service technicians

•

5 major manufacturer relationships:

•

6 service centers, located in Michigan,

Kansas, California, Texas, Georgia and

Toronto, Canada

Competitive Bidding Overview

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

•

InfuSystem

was not involved in Round 1 nor Round 2 of

Competitive Bidding

•

CMS completed a Recompete of Round 1 competitive

bidding in late 2013 which covered 9 Metropolitan

Statistical Areas (MSAs) and with the results taking effect

January 1, 2014

•

CMS published a Final Rule in the Federal Register on

November 6, 2014 that describes the methodology for

reimbursement cuts for items/services provided to

patients outside of MSAs subject to competitive bidding

•

The Company estimates this Rule will impact

revenues by $2-3 million annually beginning in

2016

Competitive Bidding Overview

InfuSystem’s

Response to Competitive Bidding

•

InfuSystem has actively prepared the Company for potential

regulatory changes and reimbursement changes

•

During

the

2013

Round

Recompete,

InfuSystem

was

awarded

contracts in ALL of the 9 MSAs with average cuts of ~21% for

our category (per CMS).

•

1 of only 4 National Vendors to receive contracts in all

9 markets in our category

•

InfuSystem

has pursued contract negotiations with commercial

payors

and has been successful in receiving positive rate

adjustments which will help offset any CMS cuts

•

“Competitive environment will vary in accordance with the

level of cuts by CMS”

CMS Competitive Bidding Timetable

CMS began the

pre-bidding

supplier

awareness

program

CMS

announced

bidding

schedule, start

bidder

education and

begin a bidder

registration

period

Bid window

opens

Current Round

1 bid contracts

expire

CMS

announces

Round 1

Recompete

bid

results –

INFU

impact $250K

annually

Bid window

closes

Implementation

of Round 1 bid

contracts and

prices

Spring

2012

08/16/12

10/15/12

12/14/12

10/1/13

12/31/13

01/01/14

11/06/14

04/21/15

FY2016

12/31/16

CMS announces

bidding schedule

for next bidding

round–

External

Infusion pumps

EXCLUDED

CMS published

the Final Rule in

the Federal

INFU

impact $2-3

million annually

beginning 2016

Final Rule cuts

begin to take

effect

Contracts from

Round 1

Recompete

expire

Impact of Debt & Leverage on Valuation Multiple

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

73.0%

76.0%

44.0%

53.0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

10X

Enterprise Value / AEBITDA

Q1-13

Stock Price = $1.69

EV = $66.1M

AEBITDA = $15.0M

Q1-14

Stock Price = $2.77

EV = $89.5M

AEBITDA = $15.6M

Q2-15

Stock Price = $2.88

EV = $100.3M

AEBITDA = $16.5

Q1-12

Stock Price = $1.96

EV = $71.5M

AEBITDA = 14.0M

•

Management’s strategy is to increase

enterprise value (EV) and lower

leverage via a combination of profitable

growth and repayment of debt

•

Management believes high historic

leverage have depressed INFU valuation

multiples due to market-perceived risk

of debt overhang

•

Favorable reaction to increase in

AEBITDA and decreasing leverage can

already be seen by movement along

trend line

•

Note that Q2-15 shows full debt impact

of Ciscura

acquisition but only one+

month of contribution.

Source: Stock price -

Yahoo on closest date to quarter close. AEBITDA is TTM.

Size of bubble represents EV

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

April 2015 -

Acquires Ciscura

for $5.4M

Leverage: Total Debt to Book Equity

US$ millions

$29.13

$31.27

$26.73

$25.48

$35.24

$0.80

$2.33

$1.14

$0.52

$0.99

73%

78%

63%

55%

72%

15%

30%

45%

60%

75%

90%

$10

$20

$30

$40

$50

2011

2012

2013

2014

9 Months Ended

09/30/15

Total Debt

Cash

Debt to Equity Ratio

Fiscal Year

Non-GAAP Reconciliation:

Annual Net Income to Adjusted EBITDA

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Unaudited, in US$ thousands

FY2011

FY2012

FY2013

FY2014

plus Interest

2,193

3,340

3,497

3,134

plus Tax

(23,134)

(663)

1,031

2,853

plus Depreciation

6,386

5,668

5,415

3,626

plus Amortization

2,662

2,734

2,618

2,516

EBITDA

(57,336)

9,590

14,230

15,485

plus Impairment Charges

67,592

plus Loss (Gain) on Derivatives

plus Concerned Shareholders

2,220

plus Extinguishment of Debt

671

plus Stock Based Compensation

1,120

576

plus Strategic Alternatives & Transition

645

604

Net Income

(45,443)

(1,489)

1,669

3,356

Adjusted EBITDA

10,256

13,126

15,954

16,061

Non-GAAP Reconciliation:

TTM Net Income to Adjusted EBITDA by Quarter

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Unaudited, in US$ thousands

2014

2015

Trailing 12

Months

Net Income

1,369

2,773

plus Interest Expense

779

672

387

338

2,176

plus Income Tax Expense

946

(285)

147

957

1,765

plus Depreciation

1,031

1,103

1,229

1,414

4,777

plus Amortization

640

631

713

756

2,740

EBITDA

4,432

1,706

3,259

4,834

14,231

plus Impairment Charges

plus Loss (Gain) on Derivatives

plus Concerned Shareholders

plus Extinguishment of Debt

1,599

plus Stock Based Compensation

159

287

330

179

955

plus Strategic Alternatives & Transition

255

351

628

Adjusted EBITDA

4,591

3,847

3,940

5,035

17,413

1,036

(415)

783

Non-GAAP Reconciliation:

Annual Net Income to Free Cash Flow*

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

*It is important to note that in looking at our cash flow statement that replacement pump purchases are often done in large

lots which result in wide variances in free cash flow quarter to quarter. For this reason, we focus on annual free cash flow.

** Management estimate based on pumps retired and an assumed average replacement cost per period.

Unaudited, in US$ thousands

FY2011

FY2012

FY2013

FY2014

Net Income

(45,443)

(1,489)

1,669

3,356

plus Interest

2,193

3,340

3,497

3,134

plus Tax

(23,134)

(663)

1,031

2,853

plus Depreciation

6,386

5,668

5,415

3,626

plus Amortization

2,662

2,734

2,618

2,516

EBITDA

(57,336)

9,590

14,230

15,485

plus Impairment Charges

67,592

plus Loss (Gain) on Derivatives

plus Concerned Shareholders

2,220

plus Extinguishment of Debt

671

plus Stock Based Compensation

1,120

576

plus Strategic Alternatives & Transition

645

604

Adjusted EBITDA

10,256

13,126

15,954

16,061

less Replacement Cost of Retired Pumps**

(1,803)

(512)

(447)

(1,055)

less Scheduled Debt Payments of Principal

(5,953)

(9,631)

(3,771)

(3,860)

less Interest on Debt

(1,934)

(3,112)

(2,881)

(2,662)

Free Cash Flow

566

(129)

8,855

8,484

Non-GAAP Reconciliation: TTM Operating Income to

Normalized Net Income and EPS by Quarter

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

Unaudited, in US$ thousands except per share values

2014

2015

Trailing 12

Months

Operating Income

$2,774

$1,552

$1,317

$2,711

$8,354

Adjustments:

Integration

Costs

–

Ciscura

255

351

628

Interest Expense

(779)

(672)

(387)

(338)

(2,176)

Other income

(13)

(19)

(47)

(79)

Income

before

income

taxes

–

adjusted

$1,982

$1,116

$1,281

$2,348

$6,727

Other income

946

454

205

963

2,568

NORMALIZED

NET INCOME

$1,036

$662

$1,076

$1,385

$4,159

Normalized

Net income

per share:

Basic

$0.05

$0.03

$0.05

$0.06

$0.19

Diluted

$0.05

$0.03

$0.05

$0.06

$0.19

Weighted average shares outstanding:

Basic

22,291

22,309

22,381

22,449

22,358

Diluted

22,825

22,309

22,825

22,838

22,699

Detailed Historical P&L

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

(000's)

12/31/09

12/31/10

12/31/11

12/31/12

12/31/13

12/31/14

Net revenues:

Rentals

38,606

43,384

46,795

53,471

55,962

58,718

Product sales

358

3,845

7,842

5,357

6,318

7,769

Net revenues:

38,964

47,229

54,637

58,828

62,280

66,487

Cost of Revenues:

Product, service and supply costs

6,200

7,730

9,128

9,165

11,274

12,165

Pump depreciation and loss on disposal

4,127

5,954

10,154

6,752

7,327

6,968

Gross Profit

28,637

33,545

35,355

42,911

43,679

47,354

Provision for doubtful accounts

4,006

4,515

4,099

5,251

6,534

5,774

Amortization of intangibles

1,827

2,259

2,662

2,734

2,618

2,516

Asset impairment charges

67,592

Selling and marketing

5,258

7,087

9,371

9,864

9,658

9,745

General and administrative

12,218

20,622

17,987

23,062

18,973

19,988

Operating income profit/(loss)

5,328

(938)

(66,356)

2,000

5,896

9,331

Total other gain/(loss)

(3,577)

(2,285)

(2,221)

(4,152)

(3,196)

(3,121)

Profit/(loss) before income taxes

1,751

(3,223)

(68,577)

(2,152)

2,700

6,210

Income tax benefit/(expense)

(977)

1,371

23,134

663

(1,031)

(2,853)

Net income/(loss)

774

(1,852)

(45,443)

(1,489)

1,669

3,357

EBITDA

11,199

7,745

(57,336)

9,590

14,230

15,486

EBITDA (ex. Impairment charges)

11,199

7,745

10,256

9,590

14,230

15,486

Adjusted EBITDA

N/A

10,256

13,126

15,954

16,062

Detailed Historical Balance Sheet

INNOVATION | TEAMWORK | INTEGRITY | FOCUS | PEOPLE FIRST

InfuSystem (INFU) 8-KCertain statements contained in this presentation are forward-looking statements and are based on future