Integer Holdings Corporation · NYSE:ITGR
Integer — 46th Annual Raymond James Institutional Investors Conference (March 2025)
33 slides from Integer's conference presentation, Mar 5, 2025
Slide 1: 46th Annual Raymond James Institutional Investors Conference
46th Annual Raymond James Institutional Investors Conference Joseph Dziedzic President and CEO March 5, 2025
Slide 2: 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 3: Strategy Overview
Strategy Overview Raymond James Conference | March 5, 2025 | Page 3
Slide 4: Leading Medical Contract Development and Manufacturing Outsourcer
Leading Medical Contract Development and Manufacturing Outsourcer $1.7B ~11,000 17 9 2024 Integer Manufacturing R&D Sales Associates Facilities Centers Sales by Product Line 55% 38% 6% Cardio & Vascular Cardiac Rhythm Management Other & Neuromodulation Markets Our vision is to enhance the lives of p
Slide 5: The Integer Platform – Focused, Scaled and Vertically Integrated
The Integer Platform – Focused, Scaled and Vertically Integrated Integer Overview Vertically Integrated Capabilities • Strategic, solutions-oriented partner to the leading Design and Rapid vascular and active implantable medical device OEMs Development Prototyping and well-funded emerging innovators
Slide 6: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives CUSTOMERS Sales Force Excellence •1 Sales growth 200 Market Focused Innovation basis points above COSTS CULTURE market Manufacturing Leadership Excellence Capability •2 Operating profit 2x Business Process Excellence Performance Excellence sale
Slide 7: Integer's Strategy Journey
Integer's Strategy Journey 2017 2018 2019 2020 2021 2022 2023 2024+ Portfolio Divested AS&O Pure-play medical device strategy Strategy Strategy Developed Portfolio Strategy Launched Initiated Partial Portable Medical Exit Divested Electrochem Capability & Capacity Expansion Portfolio Product Line
Slide 8: Growth Teams Drive Product Line Strategies
Growth Teams Drive Product Line Strategies Growth Team Structured and disciplined One of the broadest and deepest Structure product line strategy process product offering in the medical device outsourcing industry Dedicated, cross-functional teams responsible Structural Heart for strategy and accoun
Slide 9: 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 10: 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 11: 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 12: 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 ~$10 Development Cli
Slide 13: Capacity & Capability to Continue Acquisition Strategy
Capacity & Capability to Continue Acquisition Strategy ($ in millions) Acquisition Criteria Annual Acquisition Capacity Growth Market Focus $350 - $400 Differentiated Capabilities Funding Sources Annual Free Revenue Growth Cash Flow + Accretive Margin Profile Organic growth and acquired EBITDA High
Slide 14: Executing Targeted Inorganic Growth Strategy
Executing Targeted Inorganic Growth Strategy Six Acquisitions in Last 3+ Years Dec 2021 Apr 2022 Oct 2023 Jan 2024 Jan/Feb 2025 Electrophysiology Endovascular Neurovascular CRM - Leadless pacing Electrophysiology Neuromodulation Neurovascular Aspiration catheters Electrophysiology
Slide 15: Executing Organic & Inorganic Sales Growth Strategy
Executing Organic & Inorganic Sales Growth Strategy… Sustained Above-Market Growth Integer Sales Growth at Market Rate 10% 2016 2019 2024 Future … to deliver high single-digit / low double-digit sales growth LDD = low double-digit HSD = high single-digit Raymond James Conference | March 5, 2025 | Pa
Slide 16: Financial Overview & Outlook
Financial Overview & Outlook Raymond James Conference | March 5, 2025 | Page 16
Slide 17: 2024 Financial Results
2024 Financial Results(1) ($ 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 $5.30 (1) Organic Sales
Slide 18: 2025 Full Year Outlook
2025 Full Year Outlook(1) ($ 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 $184 2024 2025 2024 2025 2024 2025 2024 2025 Outlook Outloo
Slide 19: 2025 Cash Flow Outlook
2025 Cash Flow Outlook(1,2) ($ 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 $60 2.6x 2023 2024 2025 2023 2024 2025 YE23 YE24 YE25 YE23 YE24 YE25
Slide 20: Questions?
Questions? Questions?
Slide 21: Appendix
Appendix
Slide 22: Capitalization
Capitalization(1) ($ 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 23: 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 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 25: 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 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income and Diluted EPS from Continuing Operations Reconciliations ($ in thousands, except per share amounts) Year Ended December 31, 2024 2023 Per Per Net of Diluted Net of Diluted Pre-Tax Tax Share(a) Pre-Tax Tax Share Income from continuing operations (GAAP) $
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income and Diluted EPS from Continuing Operations Reconciliations ($ in thousands, except per share amounts) (a) Income from continuing operations (GAAP) per diluted share amounts are calculated in accordance with GAAP using weighted average shares for diluted EP
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Operating Income Reconciliations ($ in thousands) Year Ended December 31, 2024 2023 Operating income (GAAP) $ 208,238 $ 163,323 Adjustments: Amortization of intangible assets 54,614 52,191 Certain legal expenses 1,139 — Restructuring and restructuring-related charges
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation EBITDA Reconciliations ($ in thousands) Year Ended December 31, 2024 2023 Income from continuing operations (GAAP) $ 121,053 $ 89,143 Interest expense 56,374 51,275 Provision for income taxes 26,510 16,239 (a) Depreciation 52,519 43,434 Amortization of intangible assets and f
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Organic Sales Change Reconciliation (% Change) Impact of GAAP Impact of Strategic Non-GAAP Reported Foreign Exits and Organic Growth Currency(a) Acquisitions(a) Change YTD Change (2024 vs. 2023) Cardio & Vascular 13.5% —% 5.7% 7.8% Cardiac Rhythm Management & Neuromodulation
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net Total Debt and Leverage Ratio Reconciliation ($ in thousands) 2023 2024 Revolving credit facility $ 99,000 $ 126,000 Term A loan ("TLA Facility") 375,000 375,000 Term B loan ("TLB Facility") - - Convertible notes due 2028 500,000 499,994 Total principal amount of debt out
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation Free Cash Flow ($ in thousands) 2023 2024 YEAR-TO-DATE (1) Net cash provided by operating activities 180,213 205,205 (1) Less: Capital expenditures, net (119,765) (105,318) (2) Free cash flow (YTD) 60,448 99,887 (1) Previously reported cash flow and capital expenditures, for
Slide 33: Contact Information
Contact Information Kristen Stewart, CFA Director, Investor Relations kristen.stewart@integer.net (M) 551.337.3973 www.integer.net
Integer Holdings — 46th Annual Raymond James Institutional Investors Conference (March 2025) on 6ix