Slide 1: Creating a Global Leader to Advance the Medical Device Industry
Creating a Global Leader to Advance 1 the Medical Device Industry August 27, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements made in this presentation whether written or oral may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and involve a numbe
Slide 3: Call Participants
Call Participants 3 THOMAS J. HOOK MICHAEL DINKINS President & CEO Executive Vice President & Chief Financial Officer
Slide 4: Creating a Global Leader to Advance the Medical Device Industry
Creating a Global Leader to Advance the Medical Device Industry Market-leading portfolio of products and services to OEM customers Lake Region’s market focus complements Greatbatch technology portfolio Added scale and diversification across geographies, markets and customers with $1.5 billion
Slide 5: Transaction Overview
Transaction Overview • Cash consideration totaling $1.47 billion • Lake Region shareholders own Consideration approximately 16.6% of the combined entity or 5.1 million Greatbatch shares and options valued at $253 million(1) 5 • Committed financing from M&T Bank, Credit Suisse, and KeyBanc Capital Fi
Slide 6: Greatbatch and Lake Region at a Glance
Greatbatch and Lake Region at a Glance Revenue (LTM 6/30/15) $678M $806M Adj. EBITDA (LTM 6/30/15) $160M $149M 6 Manufacturing 11 17 Facilities Employees ~3,700 ~5,500 Cardio and Vascular Cardiac and Neuromodulation – Electrophysiology and stimulation Vascular – Vascular access – Cardiovascula
Slide 7: Highly Compelling Strategic Rationale
Highly Compelling Strategic Rationale Comprehensive Revenue Growth Manufacturing Portfolio of Diversification Acceleration Scalability Solutions Cardiac/Neuro & Vascular A broader range of Multiple high-quality clean Expanded medical device cardiac and neuro combination creates more rooms an
Slide 8: Complementary Portfolio of Solutions To Fuel Growth
Complementary Portfolio of Solutions To Fuel Growth Pro Forma Company – 2014 Greatbatch Pro Forma Combined 12% 9% 12% 10% $688M 48% 7% 31% 21% $1,480M 8 Cardiac/Neuromodulation Orthopaedics Portable Medical Vascular Energy/Env./Military 31% 13% Lake Region Medical(1) 2% 6% 2% 31% 6% Cardiac/Neuromod
Slide 9: World-Class Medical Operating Capabilities & Infrastructure
World-Class Medical Operating Capabilities & Infrastructure Operational Excellence: – Global footprint (America’s, Europe, Asia) – Scalable operating infrastructure – Multiple award winning sites – Proven low cost offerings – Enterprise lean manufacturing practices 9 Unmatched technical and oper
Slide 10: Creates Meaningful Value for Shareholders
Creates Meaningful Value for Shareholders Revenue growth Stronger and more diversified platform for growth acceleration Approximately $25 million annual pre-tax operating synergies by 2016, increasing to at least $60 million in 2018 Synergies 10 Manufacturing & supply chain optimization and ov
Slide 11: Overview of Anticipated Synergies
Overview of Anticipated Synergies $25 million of annual pre-tax operating synergies in 2016 At least $60 million of annual pre-tax operating synergies to be delivered by the end of 2018 Investment to achieve synergies estimated at $69 million which consists of $22 million in capital and $47 mi
Slide 12: Imagine What We Will Innovate and Build Together
I m a g i n e W h a t We W i l l Innovate and Build 12 To g e t h e r 12
Slide 13: Questions and Answers
Questions and Answers 28 Greatbatch