Slide 1: Second Quarter 2011 Earnings Call
SECOND QUARTER 2011 EARNINGS CALL July 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 › Second Quarter 2011 Review – Tom Hook • Financial Highlights • Strategic g Initiatives Update p › Second Quarter 2011 Financial Results - Tom Mazza • Financial Results • Guidance › Question & Answer 4
Slide 5: Second Quarter 2011 Financial Highlights
SECOND QUARTER 2011 FINANCIAL HIGHLIGHTS › Sales of $146 $146.5 5 Million • 4% increase over the prior year (1% constant currency) • 24% Orthopaedic p g growth ((8% constant currency) y) • Maintained CRM revenue despite declining market • Vascular Access & Electrochem tough comparables › Operating R
Slide 6: Strategic Initiatives Update: Grow & Diversify Revenue
STRATEGIC INITIATIVES UPDATE › Grow & Diversify Revenue • Diversified revenue offsetting contracting CRM market • Investments in Orthopaedic operations driving market share gains • Establishing long-term agreements in Electrochem • Medical M di l d device i strategy t t bbroadens d product d t portf
Slide 7: Strategic Initiatives Update: Drive Operating Performance
STRATEGIC INITIATIVES UPDATE › Drive Operating Performance • Adjusted operating income 12.6% of sales • Strong cash generation • Renegotiated revolving credit facility to provide increased financial flexibilityy 7
Slide 8: Strategic Initiatives Update: Deliver Innovative Solutions
STRATEGIC INITIATIVES UPDATE › Deliver Innovative Solutions - Medical device strategy continues to build momentum • Sales of new medical devices over $1 million for 1H11 • 3 medical device distribution agreements signed in 2Q11 • 27 medical device patents filed in 1H11 (4 granted) • In total 48 medi
Slide 9: Second Quarter 2011 Sales
SECOND QUARTER 2011 SALES › CRM & Neuromodulation revenue › Tough comparable vs. 2Q’10 includes benefit of inventory builds & › Continued C ti d strength t th iin energy & product launches environmental markets › Vascular Access tough comparable vs. › Expect 2H’11 to be below 1H’11 run-rate 2Q’10 ›
Slide 10: Second Quarter 2011 Financial Results
SECOND QUARTER 2011 FINANCIAL RESULTS 10
Slide 11: Financial Guidance
FINANCIAL GUIDANCE › 2011 annual guidance ranges revised as follows: Previous Revised Revenue (in millions) $540 - $560 $550 - $570 Adjusted OI as % of Sales* 12% - 13% 12% - 13% Adjusted EPS* $1.55 - $1.65 $1.60 - $1.70 * Excludes non-recurring, unusual or infrequently occurring items such as conso
Slide 12: Appendix
tb ® Greatbatch INNOVA N Opening new APPENDIX
Slide 13: GAAP Reconciliation
tb ® Greatbatch INNOVAIBON Opening new GAAP RECONCILIATION Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, 2011 2010 2011 2010 Operating income as reported $ 18.303 $ 17317 $ 36.269 $ 31,313 Adjustments: Medical device DVT expenses (RD&E) 634 1,224 Consolidation costs 22 536 261
Slide 14: GAAP Reconciliation
"© Greatbatch GAAP RECONCILIATION Three Months Ended Six Months Ended July 1, July 2, 2011 2010 July 1, July 2, 2011 2010 Income before taxes as reported Adjustments: Consolidation costs Integration expenses Asset dispositions and other Medical device DVT expenses (RD&E) (Gain) loss on cost method i
Slide 15: 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 15