Slide 1: First Quarter 2011 Earnings Call
FIRST QUARTER 2011 EARNINGS CALL April 28, 28 2011 1
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 JJ. Hook • President & CEO › Thomas J. Mazza • Senior Vice President & CFO › Marco F. Benedetti • Corporate C t Controller C t ll & TTreasurer 3
Slide 4: Agenda
AGENDA › First Quarter 2011 Review – Tom Hook • Financial Highlights • Strategic g Initiatives Update p › First Quarter 2011 Financial Results - Tom Mazza › Question & Answer 4
Slide 5: First Quarter 2011 Financial Highlights
FIRST QUARTER 2011 FINANCIAL HIGHLIGHTS › Record Sales of $148 $148.8 8 Million • 13% increase over the prior year • Double-digit g Vascular Access,, Orthopaedic p and Electrochem growth • First sales of medical devices developed by Greatbatch › Operating Results • 25% increase in adjusted operating
Slide 6: Strategic Initiatives Update
STRATEGIC INITIATIVES UPDATE › Grow & Diversify Revenue • Diversified revenue offsetting slower CRM growth • Investments in Orthopaedics and medical device strategy starting to provide returns › Drive Di O Operating ti P Performance f • Adjusted operating income 12.6% of sales • Lean initiatives off
Slide 7: Strategic Initiatives Update
STRATEGIC INITIATIVES UPDATE › Deliver Innovative Solutions • First sales of medical devices developed by Greatbatch • Design verification testing started on neuromodulation platform • CE Mark received on bi-directional guiding sheath (previous FDA 510(k) clearance in November 2010) • CE Mark receiv
Slide 8: First Quarter 2011 Sales
FIRST QUARTER 2011 SALES › Stable CRM & Neuromodulation revenue › Energy customers rebuilt depleted › 28% Vascular Access growth inventory levels • Customer inventory reduction › Environmental pipeline pulls earlier than programs complete anticipated › 34% Orthopaedics growth › Higher oil price not
Slide 9: First Quarter 2011 Financial Results
FIRST QUARTER 2011 FINANCIAL RESULTS 9
Slide 10: Appendix
tb ® Greatbatch INNOVA N Opening new APPENDIX
Slide 11: GAAP Reconciliation
"© Greatbatch GAAP RECONCILIATION INNOVA Opening new Operating income as reported Adjustments: Medical device DVT expenses (RD&E) Consolidation costs Integration expenses Asset dispositions and other Adjusted operating income Adjusted operating margin Three Months Ended April 1, April 2, 2011 2010 1
Slide 12: GAAP Reconciliation
"© Greatbatch GAAP RECONCILIATION Three Months Ended April 1, April 2, 2011 2010 Income before taxes as reported 17.827 $ 8.534 Adjustments: Medical device DVT expenses (RD&E) Gain on sale of cost method investment Consolidation costs Integration expenses Asset dispositions and other CSN II conversi
Slide 13: Contact Information
CONTACT INFORMATION Marco F. M F Benedetti B d tti Corporate Controller & Treasurer Greatbatch G tb t h 10000 Wehrle Drive Clarence, NY 14031 T l 716 Tel 716-759-5856 759 5856 mbenedetti@greatbatch.com www.greatbatch.com 13