Slide 1: Fourth Quarter 2024 Earnings Conference Call
Integer Holdings Corporation Fourth Quarter 2024 Earnings Conference Call February 20, 2025
Slide 2: Fourth Quarter 2024 Earnings Conference Call
Integer Holdings Corporation Fourth Quarter 2024 Earnings Conference Call 9 a.m. Eastern Time, February 20, 2025 Management Attendees: • A webcast of today’s call can be accessed Joe Dziedzic in the “Investor Relations” section of the President and Chief Executive Company’s website: Officer investor
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 • Strategy Update • Sustained Above-Market Growth • Financial Results • 2025 Outlook • Wrap-up • Q&A ITGR: 4Q24 Earnings Conference Call | February 20, 2025 | Page 4
Slide 5: Opening Remarks
Opening Remarks
Slide 6: Summary
Summary(1) A strong finish to a strong year 2024 sales growth • 4Q24 sales up 11% vs 4Q23, adjusted operating income up 13% vs 4Q23 10% versus 2023 with • 2024 sales up 10% vs 2023, adjusted operating income up 20% vs 2023 adj. operating income growing at 2x rate of Executing strategy to sustain abo
Slide 7: Strategy Update
Strategy Update
Slide 8: 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 9: Integer's Strategy Journey
Integer's Strategy Journey 2017 2018 2019 2020 2021 2022 2023 2024+ Portfolio Divested AS&O Strategy Strategy Developed Portfolio Strategy Launched Initiated Partial Portable Medical Exit Divested Electrochem Portfolio Capability & Capacity Expansion Product Line Growth Teams Product Line Strategi
Slide 10: Precision Coating: High Value Surface Technology Platforms
Precision Coating: High Value Surface Technology Platforms • Closed on January 7, 2025 Transaction • ~300 associates located in New England and Costa Rica Profile • Estimated 2025 sales of ~$52 million with an accretive margin rate • Specializes in differentiated surface technologies including fluor
Slide 11: VSi Parylene: Parylene Coatings
VSi Parylene: Parylene Coatings • Purchase agreement signed on February 18, 2025 Transaction • ~50 associates located in Colorado Profile • Estimated 2025 sales of ~$7 million post acquisition with an accretive margin rate • A provider of parylene coating solutions, primarily focused on coating comp
Slide 12: Executing Targeted Inorganic Growth Strategy
Executing Targeted Inorganic Growth Strategy Six Acquisitions in Last 3+ Years Dec 2021 Apr 2022 Oct 2023 Jan 2024 Jan/Feb 2025 Electrophysiology Endovascular Neurovascular CRM - Leadless pacing Electrophysiology Neuromodulation Neurovascular Aspiration catheters Electrophysiology
Slide 13: Capacity & Capability to Continue Acquisition Strategy
Capacity & Capability to Continue Acquisition Strategy ($ in millions) Acquisition Criteria Annual Acquisition Capacity Growth Market Focus $350 - $400 Differentiated Capabilities Funding Sources Annual Free Revenue Growth Cash Flow + Accretive Margin Profile Organic growth and acquired EBITDA High
Slide 14: Sustained Above Market Growth
Sustained Above Market Growth
Slide 15: Growth Teams Drive Product Line Strategies
Growth Teams Drive Product Line Strategies Growth Team Structured and disciplined Broadest and deepest product Structure product line strategy process offering in the medical device outsourcing industry Dedicated, cross-functional teams responsible Structural Heart for strategy and accountable for g
Slide 16: C&V Targeted Market Strategy to Drive Sustained Growth
C&V Targeted Market Strategy to Drive Sustained Growth Integer Interventional Cardiology Investment Peripheral Vascular Focus Electro- physiology Neurovascular Pulsed Structural Field Heart Renal Ablation Denervation Bubble Size Signifies Approx. Growth End Market Size Curve Low Technology Maturity
Slide 17: CRM&N Targeted Market Strategy to Drive Sustained Growth
CRM&N Targeted Market Strategy to Drive Sustained Growth Integer Conventional Investment Pain Mgmt. CRM (SCS) Focus Cochlear Epilepsy Incontinence Cardiac Neuromodulation Parkinson's Monitoring Sleep CRM Leadless Emerging Pacemakers Apnea Therapies Bubble Size Signifies Approx. Ventricular End Marke
Slide 18: Growth Starts with Product Development
Growth Starts with Product Development Product development sales Strategy delivering mix shift to +270% since strategy launch high-growth markets ~20% ~20% Mature ~50% ~80% ~80% Emerging / ~50% Growth 2017 2021 2024 2017 2021 2024 Development Sales Development Sales Mix Strategy focused on being des
Slide 19: Strong Pipeline of Emerging Customers with PMA Products
Strong Pipeline of Emerging Customers with PMA (Premarket Approval) Products ($ in millions) Product development through Product introduction & launched launch process customer sales 15% - 20% CAGR 19 # of Customers currently in each phase (Year End 2024) ~$125 9 6 ~$50 4 ~$20 1 ~$10 Develop
Slide 20: Executing Organic & Inorganic Sales Growth Strategy
Executing Organic & Inorganic Sales Growth Strategy… Sustained Above-Market Growth Integer Sales Growth at Market Rate 10% 2016 2019 2024 Future … to deliver high single-digit / low double-digit sales growth LDD = low double-digit HSD = high single-digit ITGR: 4Q24 Earnings Conference Call | Februar
Slide 21: Financial Results
Financial Results
Slide 22: 4Q24 Financial Results
(1) 4Q24 Financial Results ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 11% 11% 13% 6% $449 $405 $95 $86 $76 $67 $48 $51 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 Adjusted EPS Organic Sales Change: 11% $1.41 $1.43 (1) Organic Sales Change,
Slide 23: 2024 Financial Results
(1) 2024 Financial Results ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 10% 19% 20% 18% $1,717 $361 $1,556 $303 $285 $237 $184 $156 2023 2024 2023 2024 2023 2024 2023 2024 Organic Sales Change: 7% Adjusted EPS $4.61 $5.30 (1) Organic Sale
Slide 24: Product Line Sales Performance Trends
Product Line Sales Performance Trends ($ in millions) Cardio & Vascular Trailing 4 quarter sales increased 14% year-over-year in 4Q24 Trailing 4 Quarter Sales Driven by: • Strong growth across targeted markets • Electrophysiology and Structural Heart new product ramps Y-o-Y % Change • InNeuroCo
Slide 25: 2024 Adjusted Net Income
(1) 2024 Adjusted Net Income ($ in millions, except per share amounts) ($0.14) $39 $184 $(2) - $156 $(8) $(1) 2023 Operational FX Interest Tax Rate Adj. Weighted 2024 Drivers Avg. Shares Adj EPS $4.61 $1.16 $(0.05) $(0.23) $(0.04) $(0.14) $5.30 (1) Adjusted Net Income, Adjusted EPS and Adjusted Weig
Slide 26: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1,2) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights Strong 4Q24 cash flow from operations, driven by higher sales volume and improved margins $205 million full year cash flow from operations Net Total Debt Leverage Total year capex of $105 million, in-l
Slide 27: 2025 Outlook
2025 Outlook
Slide 28: 2025 Full Year Outlook
(1) 2025 Full Year Outlook ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 8% - 10% 11% - 17% 11% - 16% 13% - 20% $1,846 - $1,880 $401 - $422 $1,717 $361 $315 - $331 $285 $208 - $221 $184 2024 2025 2024 2025 2024 2025 2024 2025 Outlook Outlo
Slide 29: 2025 Financial Outlook
2025 Financial Outlook ($ in millions, all numbers at midpoint) +76bps Adj Operating Full Year Outlook Income 17.3% % of sales(1) • 8% to 10% reported sales growth • 6% to 8% organic sales growth 16.6% +8% - 10% • +76bps AOI as a % of sales improvement at mid-point of 2025 guidance $99 - $133 $1,846
Slide 30: 2025 Cash Flow Outlook
(1,2) 2025 Cash Flow Outlook ($ in millions) Cash Flow From Ops Free Cash Flow Net Total Debt Leverage CAPEX Target: 2.5x - 3.5x $120 $110 - $120 $225 - $245 $105 $205 $110 - $130 $1,030 - $1,050 $180 $950 $954 $100 3.1x 2.5x - 3.5x $60 2.6x 2023 2024 2025 2023 2024 2025 YE23 YE24 YE25 YE23 YE24 YE2
Slide 31: Wrap-up
Wrap-up
Slide 32: Wrap-up
Wrap-up A strong finish to a strong year • 4Q24 sales up 11% vs 4Q23, adjusted operating income up 13% vs 4Q23 • 2024 sales up 10% vs 2023, adjusted operating income up 20% vs 2023 Executing strategy to sustain above-market growth • Demonstrated above-market sales growth with a pipeline to sustain 2
Slide 33: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Strategy for Growth Culture Strength Sustainable mid-single-digit
Slide 34: Questions?
Questions? Questions?
Slide 35: Appendix
Appendix
Slide 36: New Revenue Generation Cycle Times
New Revenue Generation Cycle Times Time to Manufacturing Ramp Existing Product Transfers Process Reg Begin Dev 0 – 6 Manufacturing 1 – 2+ 1 – 2 years months Ramp Years New 510k Products (Class II) Developed w/ Customers Clinical / Market Begin Product Development Regulatory Intro. Manufacturing 3 –
Slide 37: 2025 Outlook
(a) 2025 Outlook ($ in millions, except per share amounts) ITGR: 4Q24 Earnings Conference Call | February 20, 2025 | Page 37
Slide 38: 2025 Supplemental Financial Information
2025 Supplemental Financial Information ($ in millions) ITGR: 4Q24 Earnings Conference Call | February 20, 2025 | Page 38
Slide 39: 4Q24 Adjusted Net Income
(1) 4Q24 Adjusted Net Income ($ in millions, except per share amounts) $7 $51 $48 $(2) ‐ $(1) $(1) 4Q23 Operational FX Interest Tax Rate Adj. Weighted 4Q24 Drivers Avg. Shares Adj EPS $1.41 $0.21 $(0.06) $(0.03) $(0.04) $(0.06) $1.43 (1) Adjusted Net Income, Adjusted EPS and Adjusted Weighted Averag
Slide 40: Historical Financial Results
(1) Historical Financial Results ($ in millions, except per share amounts) Sales Adjusted EPS (1) Adjusted EPS is a non-GAAP financial measure; refer to “Non-GAAP Financial ITGR: 4Q24 Earnings Conference Call | February 20, 2025 | Page 40 Measures” in the Appendix. The quarterly and annual EPS numbe
Slide 41: Capitalization
Capitalization(1) ($ in millions) 12/31/24 12/31/24 As Reported Rate Cash & Cash Equivalents $ 47 USD Denominated Revolver [Due 2028] $ 126 SOFR + 150 EUR Denominated Revolver [Due 2028] $ ‐ EURIBOR + 150 TLA [Due 2028] $ 375 SOFR + 150 Convertible Bonds [Due 2028] $ 500 2.125% fixed Total Principal
Slide 42: Product Line Review
Product Line Review
Slide 43: Year-over-Year Sales Trend, Trailing 4 Quarters
Year-over-Year Sales Trend, Trailing 4 Quarters % of Sales(1) Integer Cardio & Vascular 55% % of Sales(1) CRM & Neuromodulation 38% 38% Delivering on sales growth objective (1) 4Q24 trailing 4 quarter % of Sales equals product line sales divided by total Integer sales ITGR: 4Q24 Earnings Conference
Slide 44: Cardio & Vascular
% of Sales(1) Cardio & Vascular ($ in millions) 55% 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 Quarterl
Slide 45: CRM & Neuromodulation
% of Sales(1) CRM & Neuromodulation ($ in millions) 38% 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
Slide 46: Other Markets
% of Sales(1) Other Markets ($ in millions) 6% Includes products from the divested AS&O product line, the Portable Medical market exit, and other products not included in Cardio & Vascular, and CRM & Neuromodulation Quarterly Sales • 4Q24 sales decreased 17% year-over-year driven by planned multi-ye
Slide 47: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 48: 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 49: Non-GAAP Reconciliation
Non-GAAP Reconciliation 4Q24 Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2024 2023 GAAP Non-GAAP Non-GAAP Restructuring and Acquisition As Reported, restructuring- and (Gain) Loss Continuing Amortization related integration Other general on eq
Slide 50: Non-GAAP Reconciliation
Non-GAAP Reconciliation YTD Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2024 2023 GAAP Non-GAAP Non-GAAP Restructuring and Acquisition As Reported, restructuring- and (Gain) Loss Continuing Amortization related integration Other general on equ
Slide 51: Contact Information
Contact Information Kristen Stewart, CFA Director, Investor Relations kristen.stewart@Integer.net (M) 551.337.3973 www.integer.net