Slide 1: Second Quarter 2012 Earnings Call
SECOND QUARTER 2012 EARNINGS CALL July 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-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
Slide 3: Earnings Call Participants
EARNINGS CALL PARTICIPANTS Thomas J. Hook - President & CEO Michael Dinkins - Senior Vice President & CFO Marco F. Benedetti - Vice President of Finance & Treasurer 3
Slide 4: Agenda
AGENDA Thomas J. Hook - Second Quarter 2012 Highlights - Strategic Focus Michael Dinkins - Second Quarter 2012 Financial Results - Financial Guidance Question & Answer 4
Slide 5: Second Quarter 2012 Highlights
SECOND QUARTER 2012 HIGHLIGHTS Record Sales of $166.5 Million – 14% Increase - Micro Power acquisition contributed $21.3 million - Organic constant currency growth of 1% • 16% Vascular Access growth from commercialization of medical devices • CRM revenue ahead of our expectations • Continued weakn
Slide 6: Strategic Focus
3 Greatbatch Innovative STRATEGIC FOCUS VEE Targeted Acquisitions dj
Slide 7: Strategic Focus
STRATEGIC FOCUS CRM growth ahead of market - Long-term agreements - Product development opportunities Increased strategic focus on sales and marketing Commercialization of medical devices Orthopaedic optimization plan, medical device build-out and ERP system implementation 7
Slide 8: Strategic Focus
STRATEGIC FOCUS Completed integration of Micro Power - Performing ahead of expectations - Portable Medical pipeline to drive future growth Portable Medical Market - Favorable market trends - $400 million market opportunity - 6% CAGR - Long product life cycles 8
Slide 9: Strategic Focus
STRATEGIC FOCUS Initiated Asia Pacific strategy with announcement of intentions to open a R&D center in Singapore Optimize RD&E investment Continued to make good progress on medical device portfolio - Algostim • Finalized pre-IDE discussions with FDA • Obtained ISO 13485 certifications • Held
Slide 10: Second Quarter 2012 Sales
SECOND QUARTER 2012 SALES CRM & Neuromodulation Sales from Micro Power acquisition $21.3 - Customer product launches million - Increased pace of product Portable Medical development opportunities - Over 40% pro-forma growth Vascular Access - Successful product launches - Increase driven by c
Slide 11: Second Quarter 2012 Financial Results
SECOND QUARTER 2012 FINANCIAL RESULTS 11
Slide 12: 2012 Financial Guidance
2012 FINANCIAL GUIDANCE Reaffirming Sales guidance provided at the beginning of the year. Adjusted OI % and Adjusted Diluted EPS at low end of guidance. - Sales $645 million - $665 million - Adjusted OI as a % of Sales(1) 11.5% - 12.5% - Adjusted Diluted EPS(2) $1.75 - $1.85 Expect operational
Slide 13: Appendix
$8 Greatbatch APPENDIX Innovative Medical Devices ~ Targeted Acquisitions |
Slide 14: GAAP Reconciliation
2 s Greatbatch GAAP RECONCILIATON Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 2012 2011 2012 2011 Operating income as reported $ 11,091 $ 18303 $ 222899 $ 36269 Adjustments: Inventory step-up amortization (COS) - - 532 - Medical device DVT expenses (RD&E) 1,575 634 2.615 1,
Slide 15: GAAP Reconciliation
$8 Greatbatch GAAP RECONCILIATON Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 2012 2011 2012 2011 Income before taxes as reported $ 6870 $ 12.764 $ 12.989 $ 30,591 Adjustments: Inventory step-up amortization (COS) - - 532 - Medical device DVT expenses (RD&E) 1,575 634 2.615
Slide 16: Contact Information
CONTACT INFORMATION Marco F. Benedetti Vice President of Finance & Treasurer Greatbatch 10000 Wehrle Drive Clarence, NY 14031 Tel 716-759-5856 mbenedetti@greatbatch.com www.greatbatch.com 16