Slide 1: 3Q23 Earnings Conference Call
3Q23 Earnings Conference Call October 26, 2023 ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 1
Slide 2: Third Quarter 2023 Earnings Conference Call
Integer Holdings Corporation Third Quarter 2023 Earnings Conference Call 9 a.m. Eastern Time, October 26, 2023 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 investor.integer.net Officer •
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 • Acquisition • Financial Results • 2023 Outlook • Wrap-up • Q&A ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 4
Slide 5: Opening Remarks
Opening Remarks ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 5
Slide 6: Summary
Summary 3Q23 sales growth Continued strong 2023 performance with 3Q23 financial results +18% versus 3Q22, • 3Q23 organic sales up 18%, adjusted operating income up 39% vs. 3Q22 with adj. operating • Sales increase from targeted growth markets and new product introductions income growing 2X • Margin
Slide 7: Acquisition
Acquisition ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 7
Slide 8: InNeuroCo, a leader in Neurovascular Catheters
, a leader in Neurovascular Catheters • Asset purchase closed on October 1, 2023 (4Q23) Transaction • ~100 associates located in Pembroke Pines, Florida Profile • Estimated full year 2023 sales of ~$25 million with accretive margin profile • Brings deep design expertise and manufacturing capabilitie
Slide 9: Brings Differentiated Expertise and Capabilities
Brings Differentiated Expertise and Capabilities From Integer 4Q22 earnings presentation: Neurovascular Product Focus: ✓ Aspiration catheters ✓ Thrombectomy delivery catheters ✓ Steerable microcatheters InNeuroCo ✓ Balloon guide catheters Focus ✓ Radial access catheters ITGR: 3Q23 Earnings Conferenc
Slide 10: Financial Results
Financial Results ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 10
Slide 11: 3Q23 Financial Results
3Q23 Financial Results(1) ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 18% 28% 39% 35% $405 $81 $343 $63 $64 $46 $43 $32 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 Adjusted EPS Organic Sales Change: 18% $0.95 $1.27 (1) Organic Sales Change,
Slide 12: Product Line Quarterly Sales Performance Trends
Product Line Quarterly Sales Performance Trends ($ in millions) Cardio & Vascular CRM & Neuromodulation 3Q23 Highlights ✓ Strong year-over-year growth in C&V and CRM&N product lines ✓ Continued strong organic growth from C&V new product ramps in electrophysiology and structural heart, and demand Y-o
Slide 13: 3Q23 Adjusted Net Income
3Q23 Adjusted Net Income(1) ($ in millions, except per share amounts) $16 $43 $(2) $(1) $(2) $32 3Q22 Operational FX Interest Tax Rate 3Q23 Drivers Adj EPS $0.95 $0.45 $(0.05) $(0.03) $(0.05) $1.27 (1) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures; refer to “Non-GAAP Financial
Slide 14: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights ✓ Strong 3Q23 cash flow from ops driven by higher sales volume and working capital efficiency ✓ $25 million of 3Q23 capex in line with rate of full year spend of $100 to $120 million ✓ Strong free cash flow Ne
Slide 15: 2023 Outlook
2023 Outlook ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 15
Slide 16: 2023 Full Year Outlook
2023 Full Year Outlook(1) ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 14% - 16% 18% - 21% 22% - 27% 16% - 22% $1,575 - $1,595 $302 - $310 $1,376 $256 $235 - $243 $192 $151 - $157 $130 2022 2022 2023 2023 2022 2022 2023 2023 2022 2022 202
Slide 17: 2023 Financial Outlook
2023 Financial Outlook ($ in millions) +113bps 15.1% Full year outlook 14.8% Adj Operating 14.6% • 14% to 16% year-over- Income 13.9% % of sales(1) year reported growth with $1,575 - $1,595 (at midpoint) $1,530 - $1,550 13% to 15% organic $1,470 - $1,500 14% - 16% growth 11% - 13% Growth 7% - 9% Gro
Slide 18: 2023 Cash Flow Outlook
2023 Cash Flow Outlook(1) ($ in millions) Cash Flow From Ops Free Cash Flow Net Total Debt Leverage $100 - $120 $185 - $205 CAPEX $74 $53 $157 $925 - $945 $907 $104 $818 3.5x $116 $75 - $95 3.4x 2.5x - 3.5x $42 2021 2021 2022 2022 2023 2023 2021 2021 2022 2022 2023 2023 2021 YE21 2022 YE22 2023 YE23
Slide 19: Wrap-up
Wrap-up ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 19
Slide 20: Wrap-up
Wrap-up ✓ Continued strong 2023 performance with 3Q23 financial results • 3Q23 organic sales up 18%, adjusted operating income up 39% vs. 3Q22 • Sales increase from targeted growth markets and new product introductions • Margin expansion due to efficiency improvements and volume leverage ✓ Raising 2
Slide 21: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Strategy for Growth Culture Strength ✓ Sustainable mid-single-digit ✓
Slide 22: Questions?
Questions? ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 22
Slide 23: Appendix
Appendix ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 23
Slide 24: 2023 Outlook
2023 Outlook(a) ($ in millions, except per share amounts) ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 24
Slide 25: 2023 Supplemental Financial Information
2023 Supplemental Financial Information ($ in millions) ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 25
Slide 26: Historical Financial Results
Historical Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EPS (2) 11 23 15 2 1 10 2 12 2 23 2 10 11 23 21 20 15 22 153 20 1 3 1 5 13 131 12 123 13 121 122 1.2 1.11 1.1 1.0 1.05 1.0 0. 0. 0. 5 0. 0. 20 21 1 1 1 1 1 1 152 155 15 1 1 1 5 1Q21 2Q21 3Q21 Q21 1Q22 2Q22 3Q22
Slide 27: Capitalization
Capitalization(1) ($ in millions) 09/29/23 09/29/23 As Reported Rate Cash & Cash Equivalents $ 32 USD Denominated Revolver [Due 2028] $ 58 SOFR + 150 EUR Denominated Revolver [Due 2028] $ 23 EURIBOR + 150 TLA [Due 2028] $ 375 SOFR + 150 Convertible Bonds [Due 2028] $ 500 2.125% fixed Total Principal
Slide 28: Product Line Review
Product Line Review ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 28
Slide 29: Year-over-Year Sales Trend, Trailing 4 Quarters
Year-over-Year Sales Trend, Trailing 4 Quarters % of Sales Cardio & Vascular Integer 51% CRM & Neuromodulation 39% Advanced Surgical, Orthopedics & Portable Medical 7% Electrochem 3% ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 29
Slide 30: 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 Quarterly Sales ($ in millions) Catheters
Slide 31: 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 Quarterly Sales ($ in millions) Pulse Gener
Slide 32: 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 Quarterly Sales ($ in millions) Orthopedic Implants & Electrosurgical Li-Ion Battery Core Battery Instruments Acc
Slide 33: Electrochem
Electrochem Enhancing lives worldwide by providing superior power solutions that enable the success and advancement of our customers’ critical applications Quarterly Sales ($ in millions) Battery Cells Battery Packs Battery Chargers • 3Q23 sales declined 25% year-over-year, returning to a Y-o-Y % Ch
Slide 34: Non-GAAP Financial Measures
Non-GAAP Financial Measures ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 34
Slide 35: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation may contain the non-GAAP financial measures defined in the table 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 releas
Slide 36: Non-GAAP Reconciliation
Non-GAAP Reconciliation 3Q23 Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2023 2022 GAAP Non-GAAP Non-GAAP Restructuring Medical and Acquisition device restructuring- and Debt / regulations Amortization related integration Other general Investm
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation YTD Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2023 2022 GAAP Non-GAAP Non-GAAP Restructuring Medical and Acquisition device restructuring- and Debt / regulations Amortization related integration Other general Investme
Slide 38: Contact Information
Contact Information Andrew Senn Senior Vice President, Strategy, Business Development & Investor Relations Andrew.Senn@Integer.net (O) 763.951.8312 www.integer.net ITGR: 3Q23 Earnings Conference Call / October 26, 2023 / Page 38