Slide 1: Third Quarter 2011 Earnings Call
THIRD QUARTER 2011 EARNINGS CALL October 27, 27 2011 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the statements made in the 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 Securities Exchange Act of 1934, as amended, and involve a number of
Slide 3: Earnings Call Participants
EARNINGS CALL PARTICIPANTS › Thomas JJ. Hook • President & CEO › Thomas J. Mazza • Senior Vice President & CFO › Marco F. Benedetti • Corporate C t Controller C t ll & TTreasurer 3
Slide 4: Agenda
AGENDA › Third Quarter 2011 Review – Tom Hook • Financial Highlights • Strategic g Initiatives Update p › Third Quarter 2011 Financial Results - Tom Mazza • Financial Results • Guidance › Question & Answer 4
Slide 5: Third Quarter 2011 Financial Highlights
THIRD QUARTER 2011 FINANCIAL HIGHLIGHTS › Sales of $ $131.7 Million • 3% increase over the prior year (2% constant currency) • 26% Vascular Access growth • 11% Orthopaedic growth (4% constant currency) • 2% CRM revenue growth despite declining market • Electrochem El t h tough t h comparablebl › Res
Slide 6: Strategic Initiatives Update
STRATEGIC INITIATIVES UPDATE › Grow & Diversifyy Revenue • Diversified revenue offsetting slower CRM growth • Strong Vascular Access growth • Investments in Orthopaedic operations driving market share gains › Drive Operating Performance • Initiated multi-faceted plan to expand, optimize and leverage
Slide 7: Strategic Initiatives Update: Deliver Innovative Solutions
STRATEGIC INITIATIVES UPDATE › Deliver Innovative Solutions - Continued to deliver progress on medical device initiatives • Expect sales from medical devices to approach $5 million for 2011 • 43 medical device patents filed YTD 2011 (8 granted) • In I total t t l 73 medical di l ddevice i patents t
Slide 8: Third Quarter 2011 Sales
THIRD QUARTER 2011 SALES › CRM & Neuromodulation revenue stable. › One-time inventory build in Q3’10 Expect sales to be flat for 2011 › Still expectt tto b be att hi high h end d off growth th › Vascular Access market & market share rate guidance for 2011 growth › Q4’10 easy comparable › Orthopaedic
Slide 9: Third Quarter 2011 Financial Results
THIRD QUARTER 2011 FINANCIAL RESULTS 9
Slide 10: Financial Guidance
FINANCIAL GUIDANCE › Reaffirming R ffi i 2011 annuall guidance id revised i d upward d iin 2Q 2Q: Revenue (in millions) $550 - $570 Adjusted OI as % of Sales* 12% - 13% Adjusted j EPS* $1.60 - $ $ $1.70 * Excludes non-recurring, unusual or infrequently occurring items such as consolidation and integ
Slide 11: Appendix
tb ® Greatbatch INNOVA N Opening new APPENDIX
Slide 12: GAAP Reconciliation
"© Greatbatch GAAP RECONCILIATION Three Months Ended Nine Months Ended September 30, October1l, September30, October 1, 2011 2010 2011 2010 Operating income as reported $ 12.888 $ 13.169 49157 § 44.482 Adjustments: Executive death benefits (SG&A) . . Medical device DVT expenses (RD&E) 1,639 2,863 Co
Slide 13: GAAP Reconciliation
"© Greatbatch GAAP RECONCILIATION Three Months Ended Nine Months Ended September 30, Octoberl, September 30, October 1, 2011 2010 2011 2010 Income before taxes as reported $ 9239 $ 8290 $ 39.830 $ 28.805 Adjustments: Executive death benefits (SG&A) 885 Medical device DVT expenses (RD&E) - Consolidat
Slide 14: Contact Information
CONTACT INFORMATION Marco F. M F Benedetti B d tti Corporate Controller & Treasurer Greatbatch G tb t h 10000 Wehrle Drive Clarence, NY 14031 T l 716 Tel 716-759-5856 759 5856 mbenedetti@greatbatch.com www.greatbatch.com 14