Corporate & Investor Presentation

Reconciliation of non-GAAP financial measures, cont'd The measure "non-GAAP net income" and "non-GAAP diluted earnings per share" are reconciled with GAAP net income and GAAP diluted earnings per share in the table below: (Unaudited; $ in thousands, except for per share amounts) 0000 Three Months Ended Nine Months Ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 GAAP net income (loss) $ Amortization of acquired intangibles - cost of sales, net (78,481) 8,395 $ 163,137 9,287 $ 279,405 $ 443,839 of tax (A) 26,136 28,765 Amortization of acquired intangibles - operating 5,721 6,330 17,936 16,723 expenses, net of tax (A) Reserve for disputed tax position (A) 254,776 254,776 Restructuring - cost of sales, net of tax (A) 4,663 - Restructuring operating expenses, net of tax (A) 7,730 (Gain) loss on equity investments (A) (8,476) Fair value impairment of investment (A) 9,100 9,100 Deferred revenue fair value adjustment, net of tax (A) 1,610 Litigation settlement expenses, net of tax (A) (528) Non-GAAP net income (A) $ 190,411 $ GAAP diluted shares outstanding Anti-dilutive shares excluded from GAAP Non-GAAP diluted shares outstanding 145,513 858 146,371 187,854 $ 145,680 582,170 $ 499,509 146,394 145,490 145,680 146,394 145,490 GAAP diluted earnings (loss) per share $ Non-GAAP diluted earnings per share (A) $ (0.54) $ 1.30 $ 1.12 1.29 $ $ 1.91 3.98 $ 3.05 $ 3.43 (A) ResMed adjusts for the impact of the amortization of acquired intangibles, reserve for disputed tax positions, restructuring expenses, deferred revenue fair value adjustment, litigation settlement expenses, the (gain) loss on equity investments and the fair value impairment of investment from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance. ResMed believes that non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. ResMed uses non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. ResMed believes this information provides investors better insight when evaluating ResMed's performance from core operations and provides consistent financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because they do not include all the expenses that must be included under GAAP. 38 2021 ResMed | Corporate & Investor Presentation - updated 29APR21 ResMed

View entire presentation