Slide 1: Second Quarter 2024 Earnings Conference Call
Integer Holdings Corporation Second Quarter 2024 Earnings Conference Call July 25, 2024
Slide 2: Call details and speakers
Integer Holdings Corporation Second Quarter 2024 Earnings Conference Call 9 a.m. Eastern Time, July 25, 2024 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 • T
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 • 2024 Outlook • Wrap-up • Q&A ITGR: 2Q24 Earnings Conference Call | July 25, 2024 | Page 4
Slide 5: Opening Remarks
Opening Remarks
Slide 6: Summary
Summary 2Q24 sales growth Continued strong 2024 performance with 2Q24 financial results +9%, adj. operating • 2Q24 sales up 9% compared to 2Q23 …1H24 up 9% income growing 2.2x • Adjusted operating income up 20% versus 2Q23 … 1H24 up 23% sales growth • Adjusted EPS up 14% versus 2Q23 … 1H24 up 21% Ra
Slide 7: Financial Results
Financial Results
Slide 8: 2Q24 Financial Results
2Q24 Financial Results(1) ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 9% 19% 20% 17% $436 $400 $91 $72 $76 $60 $45 $38 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 Adjusted EPS Organic Sales Change: 5% $1.14 $1.30 (1) Organic Sales Change, Ad
Slide 9: Product Line Sales Performance Trends
Product Line Sales Performance Trends ($ in millions) Cardio & Vascular Trailing 4 quarter sales increased 17% year-over-year in 2Q24 Trailing 4 Quarter Sales Driven by: • Double-digit growth across all markets • Electrophysiology and Structural Heart new product ramps Y-o-Y % Change • InNeuroCo
Slide 10: 2Q24 Adjusted Net Income
2Q24 Adjusted Net Income(1) ($ in millions, except per share amounts) $10 $0 $45 $38 $(3) $(0) 2Q23 Operational FX Interest Tax Rate 2Q24 Drivers Adj EPS $1.14 $0.25 $0.01 $(0.09) $(0.01) $1.30 (1) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures; refer to “Non-GAAP Financial ITG
Slide 11: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights Strong 2Q24 cash flow from operations, driven by higher sales volume and improved margins $31 million of 2Q24 capex … expect full year spend of $90 to $110 million Net Total Debt Leverage Free cash flow
Slide 12: 2024 Outlook
2024 Outlook
Slide 13: 2024 Full Year Outlook
2024 Full Year Outlook(1) ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 9% - 11% 15% - 22% 14% - 21% 11% - 20% $1,735 - $1,770 $357 - $377 $1,597 $309 $275 - $293 $241 $174 - $189 $158 2023 2024 2023 2024 2023 2024 2023 2024 Outlook Outloo
Slide 14: 2024 Financial Outlook
2024 Financial Outlook ($ in millions) +108bps 16.2% Full year Adj Operating Income 15.1% • Reported sales up 9% to 11% year-over-year with 6% to 8% organic growth % of sales(1) +9% - 11% (at midpoint) • +108bps AOI as a % of sales improvement at midpoint of 2024 outlook, up from prior outlook $1,73
Slide 15: 2024 Cash Flow Outlook
2024 Cash Flow Outlook(1) ($ in millions) Cash Flow From Ops Free Cash Flow Net Total Debt Leverage CAPEX $120 $185 - $205 $90 - $110 $180 $74 $1,010 - $1,030 $85 - $105 $950 $907 3.5x $116 $60 3.1x 2.5x - 3.5x $42 2022 2023 2024 2022 2023 2024 YE22 YE23 YE24 YE22 YE23 YE24 Outlook Outlook Outlook O
Slide 16: Wrap-up
Wrap-up
Slide 17: Wrap-up
Wrap-up Continued strong 2024 performance with 2Q24 financial results • 2Q24 sales up 9% compared to 2Q23 …1H24 up 9% • Adjusted operating income up 20% versus 2Q23 … 1H24 up 23% • Adjusted EPS up 14% versus 2Q23 … 1H24 up 21% Raising 2024 profit outlook: above-market sales growth, expanding mar
Slide 18: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Strategy for Growth Culture Strength Sustainable mid-single-digit
Slide 19: Questions?
Questions? Questions?
Slide 20: Appendix
Appendix
Slide 21: 2024 Outlook
2024 Outlook(a) ($ in millions, except per share amounts) ITGR: 2Q24 Earnings Conference Call | July 25, 2024 | Page 21
Slide 22: 2024 Supplemental Financial Information
2024 Supplemental Financial Information ($ in millions) ITGR: 2Q24 Earnings Conference Call | July 25, 2024 | Page 22
Slide 23: Historical Financial Results
Historical Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EPS (1) Adjusted EPS is a non-GAAP financial measure; refer to “Non-GAAP Financial Measures” in the Appendix. ITGR: 2Q24 Earnings Conference Call | July 25, 2024 | Page 23 The quarterly and annual EPS numbers ar
Slide 24: Capitalization
Capitalization(1) ($ in millions) (1) Net Total Debt, Adjusted EBITDA and Leverage Ratio are non-GAAP financial measures; refer to “Non- ITGR: 2Q24 Earnings Conference Call | July 25, 2024 | Page 24 GAAP Financial Measures” in the Appendix
Slide 25: Product Line Review
Product Line Review
Slide 26: Year-over-Year Sales Trend, Trailing 4 Quarters
Year-over-Year Sales Trend, Trailing 4 Quarters % of Sales Integer Medical(1) 98% % of Sales Non-Medical(1) 38% 2% Double-digit growth in Medical segment (98% of Integer sales) (1) Medical includes Cardio & Vascular, CRM & Neuromodulation, and Advanced Surgical, Orthopedics & ITGR: 2Q24 Earnings Con
Slide 27: Cardio & Vascular
% of Sales(1) Cardio & Vascular ($ in millions) 53% 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 28: 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 29: Advanced Surgical, Orthopedics & Portable Medical
% of Sales(1) Advanced Surgical, Orthopedics & Portable Medical ($ in millions) 7% Offering a broad portfolio of power solutions and technologies to Portable Medical markets and supporting the divested AS&O product line Quarterly Sales Orthopedic Implants & Electrosurgical Li-Ion Battery Core Batter
Slide 30: Electrochem
% of Sales(1) Electrochem ($ in millions) 2% Enhancing lives worldwide by providing superior power solutions that enable the success and advancement of our customers’ critical applications Quarterly Sales Battery Cells Battery Packs Battery Chargers • 2Q24 sales declined year-over-year, returning to
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 32: 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 33: Non-GAAP Reconciliation: 2Q24 Net Income and Diluted EPS
Non-GAAP Reconciliation 2Q24 Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2024 2023 GAAP Non-GAAP Non-GAAP Restructuring and Acquisition restructuring- and (Gain) Loss Amortization related integration Other general on equity Tax As Reported of
Slide 34: Non-GAAP Reconciliation: YTD Net Income and Diluted EPS
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 restructuring- and (Gain) Loss Amortization related integration Other general on equity Tax As Reported of i
Slide 35: Contact Information
Contact Information Andrew Senn Senior Vice President Strategy, Business Development & Investor Relations Andrew.Senn@Integer.net (O) 763.951.8312 www.integer.net