Slide 1: Historical Pro Forma Information
INTEGER Historical Pro Forma Information 2014 & 2015 Total Year Four Quarters of 2015
Slide 2: Non-GAAP Financial Measures
INTEGER Non-GAAP Financial Measures The Company uses non-GAAP financial measures, including the measures provided in this presentation, to describe its operating results as well as the pro forma effect of the recent merger. Our management team believes that the presentation of these measures provide
Slide 3: Assumptions
INTEGER Assumptions * The following slides present pro forma results as if the Greatbatch acquisition of Lake Region Medical occurred at the beginning of Fiscal Year 2014. * We have estimated the impact to depreciation, amortization, interest and taxes based on the preliminary purchase price allocat
Slide 4: Assumptions (con't)
INTEGER Assumptions (con’t) * Pro forma financial statements have not been adjusted for expected synergies of $25 million in year one and up to at least $60 million after three years. * Pro forma interest expense was computed using a 5.7% weighted average interest rate. * These pro forma financial s
Slide 5: Product Mapping: Prior vs New View
INTEGER Product Mapping: Prior vs New View Greatbatch Medical Lake Region Medical New Greathatch, Inc. Orthopaedics, and Portable Medical Orthopaedic a Advanced Surgical Advanced Portable Medical Cardio and Vascular Cardio and Vascular Cardiac/Neuromodulation Energy, Military, Environmental Electroc
Slide 6: Greatbatch Medical Revenue-Recast
INTEGER Greatbatch Medical Revenue-Recast* Segment FY 2014 Qi2015 Q22015 Q3 2015 Q42015 FY 2015, Advanced Surgical, Orthopaedics, $ 439,558 $ 105,773 $ 108,830 $ ~—-98,763. $105,177 $418,543 and Portable Medical Cardio and Vaseular 563,852 138,084 144,710 146,853 132,616 562,263, Cardiac /Neuromodul
Slide 7: Income Statement
INTEGER Pro Forma Income Statement Summary by Period (in thousands, except per share data) YID2014 _QU2015_Q22015_Q32015__Q42015_YTD 2015, Sales s LA6ROUS $357,867 S 376917 $ 34842 S 35684 S 14288 Cost of sales 1,090,580 __ 259,660 __270.470__250.073, 282377 1,062,580. Gross profit 37836898207 —*106
Slide 8: EBITDA, As Adjusted
INTEGER Combined EBITDA, As Adjusted Summary by Period yip2014 Qi 201s @2015 32015 Qs 2015 yr 2015 Net income (oss) s (22062) $ 458 § 87s § G68) § G7A8) S$ G8.858) Interest expense 108.024 26853 26787 31,506, 40576 13722 Provision for income taxes 3448) 3% 3) 24) 28) (24825), Depreciation and amorti
Slide 9: EPS, As Adjusted
INTEGER Combined EPS, As Adjusted Natincome (oss). reported Adjustments: Inventory stepup amotzation (COS) 1P related tigation “Amortization of intangibles Inpaiment ofintangible assets and goodvll, ‘Consolidation and optimization (OOF) Acquistion and integration (OOF) ‘Asset dispositions, severance
Slide 10: Revenue FY 2014
INTEGER Pro Forma Revenue* FY 2014 Nuveetra Combined Greatbateh, Lake Region Reclassification Revenue ProForma —_Pro Forma Product Line Recast Medical, Recast Adjustment —_Divested__— Adjustments Revenue Advanced Surgical, Orthopaedics, and Portable Medical $216,339 $- s $439,558 Candio and Vascular
Slide 11: Revenue Q1 2015
INTEGER Pro Forma Revenue* Q1 2015 Nuveetra Combined Greatbatch, _ Lake Region _Reclassification Revenue Pro Forma Pro Forma Product Line Recast Medical, Recast Adjustment Divested Adjustments Revenue Advanced Surgical, Orthopaedics, and Portable Medical s 38 $ 53135 s - 8 - $8 - $105.73 Cardio and
Slide 12: Revenue Q2 2015
INTEGER Pro Forma Revenue* Q2 2015 ‘Nuveetra Combined Greatbatch, Lake Region _Reclassification _ Revenue ProForma Pro Forma Product Line Recast Medical, Recast Adjustment Divested Adjustments Revenue ‘Advanced Surgical, Orthopaedics, and Portable Medical s- $108,830 Cardio and Vascular 12,907 149,7
Slide 13: Revenue Q3 2015
INTEGER Pro Forma Revenue* Q3 2015 Combined Greatbatch, _ Lake Region _Reclassification Nuvectra Revenue Pro Forma Pro Forma Product Line Recast Medical, Recast Adjustment Divested Adjustments Revenue Advanced Surgical, Orthopaedics, and Portable Medical $44,976 $53,787 s- s $98,763, io and Vascular
Slide 14: Revenue Q4 2015
INTEGER Pro Forma Revenue* Q4 2015 Lake Region Nuveetra Combined Pro Greathatch, Medical, Recast Reclassification Revenues.‘ ProForma_——-Forma Product Line Recast October 2015 (1) Adjustment Divested Adjustments Revenue ‘Advanced Surgical Orthopaesdies and Portable Medical $ 92590 § s - 8 + 8 = 8 10
Slide 15: Revenue FY 2015
INTEGER Pro Forma Revenue* FY 2015 Nuvectra Combined LakeRegion Reclassification Revenues ProForma —_—Pro Forma Product Line Greatbatch, Recast Medical,Recast_ Adjustment Divested Adjustments _ Revenue Advanced Surgical Orthopaedics and Portable Medical s 243,385 § 175,158 $ - 8 - 8 = 8 418,543 Card
Slide 16: Income Statement FY 2014
INTEGER Pro Forma Income Statement FY 2014 Lake Regen Reta Retsted—Grennchs este Pont yn ‘Adon mm Ferma Proforma Pro arm va Hstereal — Reclasiealons (1) _Adusinents(2)__Adhenente@) __Cumbined_Adjnenent@) Canine ane 3 sas 8 SUS area's 660 8 Lacs sri wes. 4039 136 028) 1.090300 TR 108 ouH6) = 8 am aa
Slide 17: Income Statement Q1 2015
INTEGER Pro Forma Income Statement Q1 2015 (in thousands, excep per share data) Sake prot Openting pense: Sling general and administrative expenses (ther openting expenses et ‘Totalopenting epenses ‘Giang income oss) Interest epense ‘ther Gneone) eens net Income dos) before provshon (ene) for ncome
Slide 18: Income Statement Q2 2015
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Slide 19: Income Statement Q3 2015
INTEGER Pro Forma Income Statement Q3 2015 820 2008 a0) = 0 3) A347 i ‘sen sas sont eons) ain 260 © “ - toot os nen, o Sao. is 2 saast a 9s Dae 20 = a9 Gs 73762 onze : is) rss 70 uses pon Ez z ose sis08 zs 31306 ‘cm a9 i 2 z etl z 3st =m 0 Tore 2917, Tas sa) 16 z (089 670) orm, 24@ 1200) 2s any =, a
Slide 20: Income Statement Q4 2015
INTEGER Pro Forma Income Statement Q4 2015 Merger sad Hain ad estate ne. ake Reson Relwed Related Post Spin OF Creatas Aste Here ua Proform Proform Profan ethos xcept per sare dat) Wisrieal Ode 2015) Rectuslfealene 2) Aduesnets (3) Adrien) {Contin % r) c D r Fabre € FG Ses s3nse's aes 27s) eas as Sa
Slide 21: Income Statement FY 2015
INTEGER Pro Forma Income Statement FY 2015 (in mousands, except per share date) sales Con of sas ‘rors pro oe) ‘opening expenses ‘Sling generaland administrative expenses Reseach, development and engineering cot, ne ‘her operating eens, ne Totaloperaing epenses ‘opera income doss) Inert epense ‘ain
Slide 22: EBITDA, As Adjusted FY 2014
INTEGER Combined EBITDA, As Adjusted Net income (loss) Interest epense Provision for income taxes Depreciation and amortization Reported EBITDA. Reconciling items impacting EBITDA Inventory stepup amortization IP related litigat Stock-based compensation Inpainment of intangible assets and goodwill C
Slide 23: EBITDA, As Adjusted Q1 2015
INTEGER Combined EBITDA, As Adjusted Q1 2015 Lake Region Pro Forma Combined Pro Greatbatch, Ine. Medical (1) Adjustment Nuveetra Forma Net income (loss) $ 8008 S 3,039 $ (10.081) $ 3583S 4549 Interest expense 1,120 14,721 11012 - 26,853 Provision for income taxes 1812 1,869 (5.255) 1,930 356 Depreci
Slide 24: EBITDA, As Adjusted Q2 2015
INTEGER Combined EBITDA, As Adjusted Q2 2015 Lake Region Pro Forma Combined Pro Greattateh, Ine. Medical (1) Adjustment —_Nuyeetra Forma Net income (loss) s 9,283 S 542 S (10,000) $ 4016S 8725 Interest expense 1,206 14,943 10,638 - 26,787 Provision for income taxes 2.652 (326) (5,201) 2,162 (713) De
Slide 25: EBITDA, As Adjusted Q3 2015
INTEGER Combined EBITDA, As Adjusted Q3 2015 Lake Region Pro Forma Combined Pro Greatbatch, Ine. Medical(1) Adjustment Nuvectra Forma Net income (loss) $s 2 S$ 754 S E91) S$ 452 $ (4.643) Interest expense 5,825 14914 10,767 - 31,506 Provision for income taxes (16) 1518 (5,204) 2.462 (1,240) Deprecia
Slide 26: EBITDA, As Adjusted Q4 2015
INTEGER Combined EBITDA, As Adjusted Q4 2015 Lake Region Medical Pro Forma Greathatch, In October 2015 (1) Adjustment Nuvectra Combined Pro Forma ‘Net income (loss) s (24907) S (B91) S 2367) S$ 309 S$ (47489) Interest expense 2 13.429 1785 - 40,576 Provision for income taxes (ass) (11.462) 2p 1992 (
Slide 27: EBITDA, As Adjusted FY 2015
INTEGER Combined EBITDA, As Adjusted FY 2015 Lake Region Pro Forma Combined Pro Greatbateh, Ine. Medical (1) Adjustment Nuvectra Forma Net income (loss) $ (7594) S (14.695) (62.439) $ 15870 $ (88858) Interest expense 33,513 58,007 34,202 : 125,722 Provision for income taxes (8,106) (8.401) (16,864)
Slide 28: EPS, As Adjusted FY 2014
INTEGER Combined EPS, As Adjusted FY 2014 Greatbateh, Lake Region Pro Forma Combined Net Inc. Medical Adjustment Nuvectra Income _Per Share (2) Net income as reported S 55458 S (46330) $ (45,129) $13.39 S (22062) S(O) Adjustments: Inventory stepup amortization (COS) 195 4234 15588 1997 0.64 IPrelate
Slide 29: EPS, As Adjusted Q1 2015
INTEGER Combined EPS, As Q1 2015 Adjusted Greatbatch, Lake Region Pro Forma Combined Net Ine. Medical Adjustment Nuvectra__ Income __Per Share (2) Net income as reported S 8008 S 3,039 S$ (10081) S 3,583 S 4509S OS Adjustments: IP related litigation : - : 455 001 Amortization of intangibles 384 - 82
Slide 30: EPS, As Adjusted Q2 2015
INTEGER Combined EPS, As Adjusted Q2 2015 Greathatch, Lake Region Pro Forma Combined Net Ine Medical _Adjustment__Nuvectra___ Income __Per Share (2) ‘Net income as reported S$ 928 5426 S (10,000) S 4016S 8m S028 Adjustments: IP related litigation os : : : 548 003 Amortization of intangibles 2359 364
Slide 31: EPS, As Adjusted Q3 2015
INTEGER Combined EPS, As Adjusted Q3 2015 Greatbatch, Lake Region Forma, Combined Net Ine. Medical Adjustment Nuwetra Income _Per Share (2) Net income as reported s 2s 754 S$ (9.991) $ 4572S (463) S (0.15) Adjustments: IP related litigation 733 z 5 : 733 0.02 Amortization of intangibles 22 3,688 2.1
Slide 32: EPS, As Adjusted Q4 2015
INTEGER Combined EPS, As Adjusted Q4 2015 Lake Region Greathatch, Medical October Pro Forma Combined Net Ine. 2015(1) Adjustment Nuvectra Income _Per Share @) Net income as reported S 24907) S ROA) S367) $3699 S748) S (LAD) 735 = E : 735 0.02 Inventory step-up amortization 15,605 2 : _ 15.605 09 Amo
Slide 33: EPS, As Adjusted FY 2015
INTEGER Combined EPS, As Adjusted FY 2015 Greathatch, Lake Region Pro Forma Combined Net Ine. Medical _ Adjustment _Nuvectra__ Income _Per Share @) ‘Net income as reported S (7594) S$ (14695) S$ B2439) $15.87 S _GBB858) S 23) Adjustments: IP related litigation 2871 - - - 2871 0.09 Inventory step-up