Slide 1: 3Q22 Earnings Conference Call
3Q22 Earnings Conference Call October 27, 2022 ITGR: 3Q22 Earnings Conference Call / October 27, 2022 / Page 1
Slide 2: Third Quarter 2022 Earnings Conference Call
Integer Holdings Corporation Third Quarter 2022 Earnings Conference Call 9 a.m. Eastern Time, October 27, 2022 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 • Financial Results • Product Line Review • 2022 Outlook • Wrap-up • Q&A ITGR: 3Q22 Earnings Conference Call / October 27, 2022 / Page 4
Slide 5: Opening Remarks
Opening Remarks
Slide 6: Summary
Summary Intensified supply chain management Intensified • Deeper supplier engagement and planning management of • Faster escalation of supplier delays or shortages supply chain • Executing insourcing & dual-sourcing strategy • Increased risk adjustment for supplier performance 3Q22 financial results
Slide 7: Strategy unchanged … executing for growth
Strategy unchanged … executing for growth Fundamentals of our growth strategy remain strong ✓ Resilient market … pre-COVID market growth rates ✓ Strong customer relationships … supplier consolidation trend ✓ Designed in … high switching costs, ~60% under contract Accelerating Revenue Growth … 2023 u
Slide 8: Financial Results
Financial Results
Slide 9: 3Q22 Financial Results
3Q22 Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EBITDA Adj. Operating Income Adjusted Net Income % Change 12% 5% (1)% (9)% $343 $63 $60 $306 $47 $46 $35 $32 Adjusted EPS Organic Sales Change: 6% $1.05 $0.95 (1) Refer to the appendix of this presentation for a recon
Slide 10: 3Q22 Adjusted Net Income
3Q22 Adjusted Net Income(1) ($ in millions, except per share amounts) (1) Refer to the appendix of this presentation for a reconciliation of Adjusted Net Income and Adjusted EPS to the most directly comparable GAAP measure ITGR: 3Q22 Earnings Conference Call / October 27, 2022 / Page 10
Slide 11: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights ✓ 3Q22 cash flow from operations up 47% 3 37 sequentially versus 2Q22 32 2 22 ✓ Year-to-date cash flow 7 7 includes $55 million inventory increase to support 2 2 3 2 2 22 2 22 3 22 2 2 3 2 2 22 2 22 3 22 manuf
Slide 12: Product Line Review
Product Line Review
Slide 13: Year-over-Year Sales Trend, Trailing 4 Quarters
Year-over-Year Sales Trend, Trailing 4 Quarters % of Sales Cardio & Vascular 2 % % Integer % 51% % % 3 2 2 22 2 22 3 22 CRM & Neuromodulation 3 % 2 % 20% % % 39% % % % % 2 % 2% Advanced Surgical, Orthopedics & Portable Medical 0% 7% % % 0% % 20 % 3 2 2 22 2 22 3 22 Electrochem (Non-Medical) 30% 3% %
Slide 14: Cardio & Vascular
Cardio & Vascular Offering a full-range of products and services for catheter-based interventional vascular devices and a suite of supply chain solutions to support the development and manufacturing of complex components, sub-assemblies and finished devices Quarterly Sales ($ in millions) 7 2 Cathet
Slide 15: 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) 3 3 2 2 23
Slide 16: 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) 2 22 23 2 20 Orthopedic Implants & Electrosurgical Li-Ion Battery Core Battery In
Slide 17: 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) 2 0 Battery Cells Battery Packs Battery Chargers 3 2 2 22 2 22 3 22 • 3Q22 sales increased 24% vs. 3Q21 driven b
Slide 18: 2022 Outlook
2022 Outlook
Slide 19: 2022 Full-Year Outlook
2022 Full-Year Outlook(1) ($ in millions, except per share amounts) Sales Adjusted EBITDA Adj. Operating Income Adjusted Net Income % Change 11% - 13% 0% - 7% (4)% - 5% (12)% - (2)% $1,350 - $1,380 $1,221 $244 - $260 $243 $187 $180 - $196 $136 $119 - $132 2021 2022 2021 2022 2021 2022 2021 2022 utlo
Slide 20: 2022 Cash Flow Outlook
2022 Cash Flow Outlook(1) NTDR 80-95 ($ in millions) Cash Flow From Ops Free Cash Flow Net Total Debt Reduction Leverage (excluding acquisition debt) Target: 2.5x - 3.5x CAPEX $65 - $75 $181 $47 $53 $29 AVX $157 $135 $123 $152 3.6x $110 - $125 $29 3.4x - 3.7x AVX $104 3.4x $106 (2) $91 $40 - $55 (3)
Slide 21: Wrap-up
Wrap-up
Slide 22: Wrap-up
Wrap-up ✓ Intensified supply chain management ✓ Financial outlook unchanged from October 5th guidance • 2022 sales $1,350 - $1,380 million, up 11% - 13%, organic 4% - 6% • Adjusted operating income $180 - $196 million ✓ Strategy unchanged … executing for growth • Fundamentals of our growth strategy
Slide 23: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Strategy for Growth Culture Strength ✓ Sustainable mid-single-digit ✓
Slide 24: Questions?
Questions? ITGR: 3Q22 Earnings Conference Call / October 27, 2022 / Page 24
Slide 25: Appendix
Appendix
Slide 26: 2022 Outlook
2022 Outlook(a) ($ in millions, except per share amounts) ITGR: 3Q22 Earnings Conference Call / October 27, 2022 / Page 26
Slide 27: 2022 Supplemental Financial Information
2022 Supplemental Financial Information ($ in millions, except per share amounts) ITGR: 3Q22 Earnings Conference Call / October 27, 2022 / Page 27
Slide 28: Historical Financial Results
Historical Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EPS 3 0 3 3 32 10 12 10 3 2 3 3 3 23 30 26 26 2 0 10 11 9 9 23 21 20 2 22 20 2 0 23 2 136 9 131 123 26 2 126 123 13 121 122 106 1.2 1.0 1.0 1.0 0.9 0.99 0.9 0. 1 1 1 0. 1 169 1 9 1 1 2 1 1 1 122 130 0. 0 11 0.32
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation 3Q22 Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2022 2021 GAAP Non-GAAP Non-GAAP Acquisition Restructuring and and Amortization restructuring- integration Other general Equity Other Tax As Reported of intangibles relat
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation YTD Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2022 2021 GAAP Non-GAAP Non-GAAP Acquisition Restructuring and and Amortization restructuring- integration Other general Equity Other Tax As Reported of intangibles relate
Slide 31: Capitalization
Capitalization ($ in millions) (1) Principal amount of debt outstanding, not reduced for unamortized discount and debt issuance costs (2) Non-GAAP financial measure. Refer to Notes in the appendix of this presentation. ITGR: 3Q22 Earnings Conference Call / October 27, 2022 / Page 31
Slide 32: Notes
Notes 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
Slide 33: Contact Information
Contact Information Tony Borowicz Senior Vice President, Investor Relations Tony.Borowicz@Integer.net (O) 716.759.5809 www.integer.net ITGR: 3Q22 Earnings Conference Call / October 27, 2022 / Page 33