Slide 1: 1Q21 Earnings Conference Call
1Q21 Earnings Conference Call April 29, 2021 ITGR: 1Q21 Earnings Conference Call / April 29, 2021 / Page 1
Slide 2: First Quarter 2021 Earnings Conference Call
Integer Holdings Corporation First Quarter 2021 Earnings Conference Call 9 a.m. Eastern Time, April 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: 1Q21 Earnings Conference Call / April 29, 2021 / Page 4
Slide 5: Opening Remarks
Opening Remarks
Slide 6: Summary
Summary 1Q21 Financial Results Strong sequential • Strong sequential improvement vs. 4Q, at high end of guidance: sales and profit ‒ Sales up $22 million, +8% vs. 4Q20 improvements, at high ‒ Profit up $8 million, +22% vs. 4Q20 end of guidance • Year-over-year decline driven by pandemic: ‒ Prior yea
Slide 7: Is the Industry Back to pre-COVID Sales Levels?
Is the Industry Back to pre-COVID Sales Levels? Quarterly reported sales(1) as % of 4Q19 100% 100% 100% 101% 95% 93% 92% 93% 93% 93% 88% 87% 89% 83% 74% 72% 69% 66% 4Q19 4Q19 1Q20 1Q20 2Q20 3Q20 3Q20 4Q20 1Q21 1Q21 (Industry pre-COVID) Boston Scientific quarterly reported sales Abbott medical device
Slide 8: COVID Impact and Recovery of Integer Sales
COVID Impact and Recovery of Integer Sales ($ in millions) No impact Recovery Sales $328 Bottom $290 $269 $240 $236 1Q20 2Q20 3Q20 4Q20 1Q21 Sales change vs. prior year (%) and bridge between Industry and Integer 1Q20 2Q20 3Q20 4Q20 1Q21 Industry estim ated ~(6)% ~(34)% ~(3)% ~(4)% ~5% COVID tim ing
Slide 9: Financial Results
Financial Results
Slide 10: 1Q21 Financial Results
1Q21 Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted Operating Income Adjusted Net Income % Change (12)% (21)% (22)% $328 $59 $290 $46 $41 $32 Adjusted EBITDA Adjusted EPS $71 $61 $1.25 $0.97 (1) Refer to the appendix of this presentation for a reconciliation of Adjuste
Slide 11: 2021 Adjusted Net Income
2021 Adjusted Net Income(1) ($ in millions, except per share amounts) COVID volume / $41 deleverage $32 $0 $(11) $(0) $2 1Q20 Operational FX Interest Tax Rate 1Q21 Drivers Adj EPS $1.25 $(0.33) $(0.01) $0.05 $0.00 $0.97 (1) Refer to the appendix of this presentation for a reconciliation of Adjusted
Slide 12: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights $29 ✓ Strong cash flow from ops, $4 AVX million better than last year $29 AVX $42 $30 ✓ Reduced Net Total Debt by $25 million in 1Q ✓ Continued investments in strategy … expect $50-$60 Net Total Debt Leverage
Slide 13: Product Line Review
Product Line Review
Slide 14: Year-over-Year Sales Trend
Year-over-Year Sales Trend(1) Trailing 4 Quarters Cardio & Vascular Integer Cardiac & Neuromodulation Advanced Surgical, Orthopedic & Portable Medical Electrochem (Non-Medical) (1) Excludes impact from changes in foreign currency exchange rates and acquisition ITGR: 1Q21 Earnings Conference Call / A
Slide 15: Cardio & Vascular
Cardio & Vascular Offering a full-range of products and services for catheter-based interventional vascular devices and a suite of supply chain solutions to support the development and manufacturing of complex components, sub-assemblies and finished devices Reported Quarterly Sales ($ in millions) S
Slide 16: 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 17: 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 18: 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 • 1Q21 declined approximately $3 million vs. 1Q20, driven
Slide 19: 2021 Outlook
2021 Outlook
Slide 20: 2021 Sales Outlook Increased
2021 Sales Outlook Increased ($ in millions) 10% - 12% 2021 Sales Outlook vs. 2020 • 1Q21 actual sales at $290 million … high-end $1,175 - $1,205 of prior outlook range $280 - $290 million $1,160 - $1,200 • Expect modest sequential sales improvement $1,073 in 2Q, supported by orders backlog • Expect
Slide 21: 2021 Full-Year Outlook
2021 Full-Year Outlook (1) ($ in millions, except per share amounts) Sales Adjusted EBITDA Adj. Operating Income Adjusted Net Income % Change 10% - 12% 24% - 32% 22% - 32% 28% - 41% $1,175 - $1,205 $1,073 $235 - $250 $175 - $190 $190 $144 $117 - $130 $92 Adjusted EPS $2.77 $3.52 - $3.90 ANI $113 - $
Slide 22: 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 $181 $50 - $60 $48 $47 $165 $29 $145 - $165 AVX $135 3.6x $152 $117 $29 $123 AVX $104 $90 - $110 $90 - $110 2.9x $106 Target 2.5x - 3.5x 2019 2020 2021 2019 2
Slide 23: Wrap-up
Wrap-up
Slide 24: Wrap-up
Wrap-up ✓ Strong 1Q21 financial results • At the high end of guidance • Sequential sales and profit improvement • Strong cash flow generation ✓ Improved 2021 outlook … raised guidance • Sales: $1,175 - $1,205 million • Adjusted operating income: $175 - $190 million • Adjusted EBITDA: $235 - $250 mil
Slide 25: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Growth Strategy Culture Strength ✓ Sustainable mid-single-digit ✓ ~70%
Slide 26: Questions?
Questions? ITGR: 1Q21 Earnings Conference Call / April 29, 2021 / Page 26
Slide 27: APPENDIX
APPENDIX
Slide 28: 2021 Outlook
2021 Outlook(a) ITGR: 1Q21 Earnings Conference Call / April 29, 2021 / Page 28
Slide 29: Historical Financial Results
Historical Financial Results(1) ($ 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 $0.74 $0.96 $0.01 $(0.02) $(0.01) $326 $328 $315 $314 $304 $290 $269 $(0.01) $240 $236 $(0.02) Impact of foreign currency reported in other (income)/loss
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1Q21 Income from Continuing Operations and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) ITGR: 1Q21 Earnings Conference Call / April 29, 2021 / Page 30
Slide 31: Capitalization
Capitalization ($ in millions) 04/02/21 Original 04/02/21 As Reported Rate Rate Cash & Cash Equivalents $ 28 $200M Revolver [Due 2022] $ - L + 325 L + 225 TLA [Due 2022] $ 220 L + 325 L + 225 TLB [Due 2022] $ 472 L + 425 L + 250 Total Principal Amount of Debt Outstanding $ 693 (2) Deferred Fees and
Slide 32: Reconciliation for page 7
Reconciliation for page 7 (“Is the Industry Back to pre-COVID Sales Levels?”) ($ in millions) Quarterly reported sales(1) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Boston Scientific $2,905 $2,543 $2,003 $2,659 $2,708 $2,752 % of 4Q19 100% 88% 69% 92% 93% 95% Abbott: Medical Devices Segment $3,204 $2,937 $2,423
Slide 33: 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 rel ease and
Slide 34: 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: 1Q21 Earnings Conference Call / April 29, 2021 / Page 34