Slide 1: Third Quarter 2012 Earnings Call
THIRD QUARTER 2012 EARNINGS CALL October 25, 25 2012
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the statements made in the presentation whether written or oral may be “forward forward-looking looking statements 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 amende
Slide 3: Earnings Call Participants
EARNINGS CALL PARTICIPANTS Thomas J. Hook - President & CEO Michael Dinkins - Senior Vice President & CFO Marco F. Benedetti - Vice President Financial Planning and Analysis, Investor Relations & Treasurer 3
Slide 4: Agenda
AGENDA Thomas J. Hook - Third Quarter 2012 Highlights - Strategic Focus Michael Dinkins - Third Quarter 2012 Financial Results - Financial Guidance Quest Question o & Answer s e 4
Slide 5: Third Quarter 2012 Highlights
THIRD QUARTER 2012 HIGHLIGHTS Sales of $161.3 Million – 22% Increase - Organic constant currency growth of 8% • 13% CRM revenue growth • 20% Vascular Access growth driven by medical devices • Orthopaedic revenues continue to be impacted by operational issues - Acquisitions contributed $21.6 millio
Slide 6: Strategic Focus
s3 Greatbatch Innovative STRATEGIC FOCUS e_ Targeted Acquisitions
Slide 7: Strategic Focus
STRATEGIC FOCUS Grow revenue faster than our underlying markets - Increased strategic focus on sales and marketing - Winning product development opportunities - Commercialization of medical devices Consolidation and productivity initiatives to drive improved profitability 7
Slide 8: Strategic Focus: Swiss Operations Update
STRATEGIC FOCUS Swiss Operations Update - Commitment to Orthopaedic & European markets - Consultation period completed - Transition in progress - Fort Wayne construction completed - Tijuana build out completed and regulatory approval on schedule - Swiss transition - Productivity initiatives will b
Slide 9: Strategic Focus: Micro Power Integration and Portable Medical
STRATEGIC FOCUS Integration of Micro Power complete - Performing ahead of expectations Portable Medical Market - 30% pro forma growth - Driven by new product introductions - Positioned in high value segments 9
Slide 10: Strategic Focus: Optimize RD&E and Medical Device Portfolio
STRATEGIC FOCUS Optimize RD&E investment - Commercializing non-core technology Medical device portfolio - Algostim • Continues to receive strong interest from OEM commercial partners • Strong technical progress • PMA submission expected in 2H 2013 - 2012 medical device revenue $8 - $10 million •
Slide 11: Third Quarter Key Takeaways
THIRD QUARTER KEY TAKEAWAYS CRM revenue growth above market High growth Portable Medical product line Orthopedic O th di iissues b being i addressed dd d Optimizing R&D spend On-going consolidation & productivity efforts Reduced adjustments to EPS in 2013 Continued strong cash flow per
Slide 12: Third Quarter 2012 Sales
THIRD QUARTER 2012 SALES CRM & Neuromodulation Sales from Micro Power acquisition $20.9 - More level customer orders million - Winning product development Portable Medical opportunities - 30% pro-forma growth Vascular Access - Successful new product introductions - Increase driven by commerc
Slide 13: Third Quarter 2012 Financial Results
THIRD QUARTER 2012 FINANCIAL RESULTS 13
Slide 14: 2012 Financial Guidance
2012 FINANCIAL GUIDANCE Reaffirming guidance provided last quarter. Sales in line. Adjusted OI % and Adjusted Diluted EPS at low end of guidance range provided at the beginning of the year. - Sales S l $645 million illi - $665 million illi - Adjusted OI as a % of Sales(1) 11.5% - 12.5% - Adjuste
Slide 15: Appendix
$°8 Greatbatch APPENDIX Innovative Medical Devices © Targeted Acquisitions
Slide 16: GAAP Reconciliation
$28 Greatbatch GAAP RECONCILIATON Three Months Ended Nine Months Ended September 28, September 30, September 28, September 30, 2012 2011 2012 2011 Operating income as reported $ 2127 $ 12,888 $ 24416 $ 49.157 Adjustments: Inventory step-up amortization (COS) - - 532 - Medical device DVT expenses (RD
Slide 17: GAAP Reconciliation
$28 Greatbatch GAAP RECONCILIATON Three Months Ended Nine Months Ended September 28, September 30, September 28, September 30, 2012 2011 2012 2011 Net Impact Per Net Impact Per Net Impact Per Net Impact Per Tncome Diluted Tncome Diluted Income Diluted Income Diluted (Loss) Share (Loss) Share (Loss)
Slide 18: Contact Information
CONTACT INFORMATION Marco FF. Benedetti Vice President Financial Planning and Analysis, Investor Relations & Treasurer Greatbatch 10000 W Wehrle hl DDrive i Clarence, NY 14031 Tel 716-759-5856 mbenedetti@greatbatch.com www.greatbatch.com 18