Slide 1: 2012 Annual Meeting
2012 ANNUAL MEETING May 18, 2012
Slide 2: 2012 Annual Meeting – Bill R. Sanford, Chairman
2012 ANNUAL MEETING Bill R. Sanford Chairman 2
Slide 3: Agenda
AGENDA Part 1 – Annual Meeting Proposals Part 2 – Business Update - 2011 Report Card - New Strategic Focus 3
Slide 4: Proposals
PROPOSALS Proposal 1 – Election of Directors Proposal 2 – Re-approval of Short Term Incentive Compensation Plan Proposal 3 – Ratification of the Appointment of Independent Registered Public Accounting Firm Proposal 4 – Non-Binding Advisory Vote on Compensation of Named Executive Officers 4
Slide 5: Business Update
BUSINESS UPDATE Thomas J. Hook President & CEO 5
Slide 6: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS We will be making forward-looking statements during today’s presentation. Please refer to the appendix of this presentation and our most recent SEC filings for more information and cautionary language surrounding these statements. 6
Slide 7: 2011 Strategic Objectives
2011 STRATEGIC OBJECTIVES • Broaden Revenue Base Grow & Diversify • Leverage Cross-Selling Opportunities Revenue Base • Accelerate Growth in New Markets • On-Time Delivery, Lead-Times and Quality Drive Operating • Organizational Integration & Consolidation Performance • Lean Manufacturing & Six Sigm
Slide 8: 2011 Report Card
2011 REPORT CARD Grow & Final Diversify 2011 Accomplishments Revenue Base Grade • 19% Vascular Access Growth Broaden • 18% Orthopaedics growth (11% constant currency) E Revenue Base • Completed acquisition of Micro Power • First sales of medical devices developed by Greatbatch Leverage Cross- • Exte
Slide 9: Revenue Growth & Diversification
REVENUE GROWTH & DIVERSIFICATION (Dollars in thousands) 9
Slide 10: 2011 Report Card
2011 REPORT CARD Drive Operating Final Performance 2011 Accomplishments Grade • Completed Indianapolis, IN refresh, began construction of Fort Wayne, IN facility, and initiated Orthopaedic optimization plan • Invested in quality and regulatory systems in order to support world-wide device manufactur
Slide 11: 2011 Report Card
2011 REPORT CARD Deliver Final Innovative 2011 Accomplishments Solutions Grade Made significant progress on medical device initiatives • Initiated design verification testing on Algostim • 53 medical device patents filed in 2011 (10 granted) New Product • In total 86 medical device patents pending (
Slide 12: Stock Performance (2011 – 2012)
STOCK PERFORMANCE (2011 – 2012) 30% Investor 2011 2012 Day 20% 10% +7% +2% 0% 12/10 3/11 6/11 9/11 12/11 5/12 -10% -8% -13% -20% GB S&P 500 12
Slide 13: Greatbatch Today
GREATBATCH TODAY Global Operations Over 3,300 Associates $655 Million Diversified 1,500 Patents & Patents Revenue Base Pending 13
Slide 14: Market Growth Drivers
MARKET GROWTH DRIVERS Expanding Patient Base • Aging population • Emerging markets Increasing Device Complexity • MRI conditional devices • RF telemetry • Need for smaller, longer lived, higher energy devices Advances in Medical Technology • Emerging therapies 14
Slide 15: New Strategic Focus
$8 Greatbatch AN 2 innovative NEW STRATEGIC FOCUS Targeted Acquisitions dj
Slide 16: Core Business
CORE BUSINESS Organic Revenue & Profitability Growth - Core markets possess long-term growth characteristics - Commercialization of medical devices to drive core component growth - Significant penetration opportunities in non-CRM markets - Expanding relationships with OEM customers - Increase cash
Slide 17: Targeted Acquisitions
TARGETED ACQUISITIONS Acquisitions to Enhance Growth Trajectory - Targeting companies that complement existing products, technology and markets - Successful track record of executing and integrating acquisitions - Micro Power Electronics • Complementary to Electrochem • Added $70 million of divers
Slide 18: Innovative Medical Devices
INNOVATIVE MEDICAL DEVICES Disciplined Investment in Innovative Medical Devices - Discrete customer projects, independent development and investment in start-ups - Over 15 medial devices in production or development - Working towards PMA filing for spinal cord stimulator near end of 2012 - Medical
Slide 19: Medical Device Pipeline
MEDICAL DEVICE PIPELINE Development, Regulatory and Distribution Agreement Commercial Sales 2011 2012 2013 Product 1H 2H 1H 2H 1H 2H OptiSeal Introducer (U.S. & Europe) Transradial Introducer (Europe) Transradial Introducer (U.S.) Steerable Delivery Sheaths (U.S. & Europe) Transseptal Needle (Europe
Slide 20: 2012 Financial Guidance
2012 FINANCIAL GUIDANCE Guidance provided at the beginning of the year: - Sales $645 million - $665 million - Adjusted OI as a % of Sales(1) 11.5% - 12.5% - Adjusted Diluted EPS(2) $1.75 - $1.85 Assumes revenue improves in 2H 2012 as comparisons ease, underlying markets improve and additional me
Slide 21: Questions
$8 Greatbatch Innovative Medical Devices ~ QUESTIONS Targeted Acquisitions |
Slide 22: Appendix
$8 Greatbatch Innovative Medical Devices ~ APPENDIX Targeted Acquisitions |
Slide 23: 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