Slide 1: 2Q21 Earnings Conference Call
2Q21 Earnings Conference Call July 29, 2021 ITGR: 2Q21 Earnings Conference Call / July 29, 2021 / Page 1
Slide 2: Second Quarter 2021 Earnings Conference Call
Integer Holdings Corporation Second Quarter 2021 Earnings Conference Call 9 a.m. Eastern Time, July 29, 2021 Speakers: • A webcast of today’s call can be accessed in the “Investor Relations” section of the Joe Dziedzic Company’s website: President and Chief Executive http://investor.integer.net Offi
Slide 3: Presentation of Financial Information & Forward-Looking Statements
Presentation of Financial Information & Forward-Looking Statements Important Information This presentation contains summarized information concerning Integer Holdings Corporation (the “Company”) and its business, operations, financial performance and trends. The historical financial and operating da
Slide 4: Agenda
Agenda • Opening Remarks • Financial Results • Product Line Review • 2021 Outlook • Wrap-up • Q&A ITGR: 2Q21 Earnings Conference Call / July 29, 2021 / Page 4
Slide 5: Opening Remarks
Opening Remarks
Slide 6: Summary
Summary 2Q21 Financial Results Strong year-over-year • Strong year-over-year increase on continued industry recovery: sales and profit ‒ Sales up $72 million, +30% vs. 2Q20 increase on continued ‒ Adjusted operating income up $28 million, +130% vs. 2Q20 industry recovery • Continued sequential impro
Slide 7: Integer Sales Recovery
Integer Sales Recovery ($ in millions) No impact Recovery $328 Bottom Sales $315 $312 Fiscal calendar $290 change and Nuvectra $7 $269 bankruptcy impact $240 $236 Comparable sales $308 2019 2019 quarterly avg 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 average Bottom of pandemic in 2Q/3Q 2020 … recovery started
Slide 8: Financial Results
Financial Results
Slide 9: 2Q21 Financial Results
2Q21 Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted Operating Income Adjusted Net Income % Change 30% 130% 239% $36 $312 $50 $240 $22 $10 Adjusted EBITDA Adjusted EPS $33 $64 $0.32 $1.07 (1) Refer to the appendix of this presentation for a reconciliation of Adjusted Op
Slide 10: 2021 Adjusted Net Income
2021 Adjusted Net Income(1) ($ in millions, except per share amounts) Volume / leverage $1 $36 $23 $1 $(1) $10 2Q20 Operational FX Interest Tax Rate 2Q21 Drivers Adj EPS $0.32 $0.69 $(0.02) $0.04 $0.04 $1.07 (1) Refer to the appendix of this presentation for a reconciliation of Adjusted Net Income a
Slide 11: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights $29 Strong cash flow from ops AVX $29 AVX $42 2Q21 CFOA similar to 1Q21 $30 with high sales in June Reduced Net Total Debt by $22 million in 2Q21 Net Total Debt Leverage Change vs Prior Quarter: $(33) $(
Slide 12: Product Line Review
Product Line Review
Slide 13: Year-over-Year Sales Trend
Year-over-Year Sales Trend(1) Trailing 4 Quarters Cardio & Vascular Integer Cardiac & Neuromodulation Advanced Surgical, Orthopedic & Portable Medical Electrochem (Non-Medical) (1) Excludes impact from changes in foreign currency exchange rates and acquisition ITGR: 2Q21 Earnings Conference Call / J
Slide 14: Cardio & Vascular
Cardio & Vascular Offering a full-range of products and services for catheter-based interventional vascular devices and a suite of supply chain solutions to support the development and manufacturing of complex components, sub-assemblies and finished devices Reported Quarterly Sales ($ in millions) S
Slide 15: CRM & Neuromodulation
CRM & Neuromodulation Providing technology solutions for the active implantable medical device industry by partnering with customers to bring high-quality products to established and emerging markets – from initial concept through high-volume manufacturing Reported Quarterly Sales ($ in millions) Pu
Slide 16: Advanced Surgical, Orthopedics & Portable Medical
Advanced Surgical, Orthopedics & Portable Medical Offering a broad portfolio of power solutions and technologies to Portable Medical markets and supporting the divested AS&O product line Reported Quarterly Sales ($ in millions) Orthopedic Implants & Electrosurgical Li-Ion Battery Core Battery Instru
Slide 17: Electrochem
Electrochem Enhancing lives worldwide by providing superior power solutions that enable the success and advancement of our customers’ critical applications Reported Quarterly Sales ($ in millions) Battery Cells Battery Packs Battery Chargers • 2Q21 increased approximately $2 million vs. 2Q20, driven
Slide 18: 2021 Outlook
2021 Outlook
Slide 19: 2021 Sales Outlook Increased
2021 Sales Outlook Increased ($ in millions) 12% - 14% 2021 Sales Outlook vs. 2020 $1,200 - $1,220 • Full year guidance increased on strength of $1,175 - $1,205 industry recovery $1,160 - $1,200 • Strong 2Q21 growth year-over-year … +30% $1,073 • Expect strong 3Q21 year-over-year growth rate similar
Slide 20: 2021 Full-Year Outlook
2021 Full-Year Outlook (1) ($ in millions, except per share amounts) Sales Adjusted EBITDA Adj. Operating Income Adjusted Net Income % Change 12% - 14% 26% - 34% 25% - 36% 32% - 46% $1,200 - $1,220 $1,073 $240 - $255 $180 - $195 $190 $144 $122 - $134 $92 Adjusted EPS $2.77 $3.66 - $4.03 ANI $117 - $
Slide 21: 2021 Cash Flow Outlook
2021 Cash Flow Outlook(1) ($ in millions, except per share amounts) Cash Flow From Ops Free Cash Flow Net Total Debt Reduction Leverage CAPEX $48 $50 - $60 $181 $47 $165 $29 $150 - $170 AVX $135 3.6x $152 $123 $117 $29 AVX $90 - $110 $95 - $115 $104 2.9x $106 Target 2.5x - 3.5x 2019 2020 2021 2019 2
Slide 22: Wrap-up
Wrap-up
Slide 23: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Growth Strategy Culture Strength Sustainable mid-single-digit ~70%
Slide 24: Wrap-up
Wrap-up Strong 2Q21 financial results • Sales up $72 million, +30% vs. 2Q20 • Profit up $28 million, +130% vs. 2Q20 • Debt leverage ratio down to 3.1x adjusted EBITDA Improved 2021 outlook … raised guidance • Sales: $1,200 - $1,220 million • Adjusted operating income: $180 - $195 million • Adjus
Slide 25: Questions?
Questions? ITGR: 2Q21 Earnings Conference Call / July 29, 2021 / Page 25
Slide 26: Appendix
APPENDIX
Slide 27: 2021 Outlook
2021 Outlook(a) ITGR: 2Q21 Earnings Conference Call / July 29, 2021 / Page 27
Slide 28: Historical Financial Results
Historical Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EPS Organic EPS $1.00 $1.23 $1.19 $1.26 $1.23 $0.30 $0.53 $0.75 $0.96 $1.08 $0.01 $(0.02) $(0.01) $326 $328 $315 $314 $312 $304 $0.01 $290 $(0.01) $269 $240 $236 $(0.02) Impact of foreign currency reported in ot
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2Q21 Income from Continuing Operations and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) ITGR: 2Q21 Earnings Conference Call / July 29, 2021 / Page 29
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation YTD Income from Continuing Operations and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) ITGR: 2Q21 Earnings Conference Call / July 29, 2021 / Page 30
Slide 31: Capitalization
Capitalization ($ in millions) 07/02/21 Original 07/02/21 As Reported Rate Rate Cash & Cash Equivalents $ 31 $200M Revolver [Due 2022] $ - L + 325 L + 225 TLA [Due 2022] $ 211 L + 325 L + 225 TLB [Due 2022] $ 462 L + 425 L + 250 Total Principal Amount of Debt Outstanding $ 673 (2) Deferred Fees and
Slide 32: Notes
Notes Non-GAAP Financial Measures This presentation may contain the non-GAAP financial measures defined below. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the financial schedules accompanying the earnings release and t
Slide 33: Contact Information
Contact Information Tony Borowicz SVP, Strategy, Business Development & Investor Relations Integer Tony.Borowicz@Integer.net (O) 716.759.5809 www.integer.net ITGR: 2Q21 Earnings Conference Call / July 29, 2021 / Page 33