Slide 1: Third Quarter 2024 Earnings Conference Call
Integer Holdings Corporation Third Quarter 2024 Earnings Conference Call October 24, 2024
Slide 2: Call details and speakers
Integer Holdings Corporation Third Quarter 2024 Earnings Conference Call 9 a.m. Eastern Time, October 24, 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 •
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: 3Q24 Earnings Conference Call | October 24, 2024 | Page 4
Slide 5: Opening Remarks
Opening Remarks
Slide 6: Summary
Summary(1) YTD 10% sales Continued strong 2024 performance with 3Q24 financial results growth and adj. • 3Q24 sales up 9% compared to 3Q23 … up 10% YTD operating income • Adjusted operating income up 17% versus 3Q23 … up 23% YTD growing at 2.3x rate of • Adjusted EPS up 11% versus 3Q23 … up 21% YTD
Slide 7: Financial Results
Financial Results
Slide 8: 3Q24 YTD Financial Results
3Q24 YTD Financial Results(1) ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 10% 22% 23% 23% $1,267 $1,151 $266 $218 $209 $169 $133 $108 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 Adjusted EPS Organic Sales Change: 6% $3.20 $3.87 (1) Organic S
Slide 9: 3Q24 Financial Results
3Q24 Financial Results(1) ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 9% 18% 17% 14% $431 $397 $96 $81 $76 $65 $50 $44 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 Adjusted EPS Organic Sales Change: 4% $1.29 $1.43 (1) Organic Sales Change, Ad
Slide 10: Product Line Sales Performance Trends
Product Line Sales Performance Trends ($ in millions) Cardio & Vascular Trailing 4 quarter sales increased 15% year-over-year in 3Q24 Trailing 4 Quarter Sales Driven by: • Above-market growth across all markets • Electrophysiology and Structural Heart new product ramps Y-o-Y % Change • InNeuroCo
Slide 11: 3Q24 YTD Adjusted Net Income
3Q24 YTD Adjusted Net Income(1) ($ in millions, except per share amounts) $32 $133 $0 $(7) $0 $108 3Q23 YTD Operational FX Interest Tax Rate 3Q24 YTD Drivers Adj EPS $3.20 $0.87 $0.00 $(0.20) $0.00 $3.87 (1) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures; ITGR: 3Q24 Earnings Co
Slide 12: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1,2) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights Strong 3Q24 cash flow from operations, driven by higher sales volume and improved margins YTD $142 million cash flow from operations supporting $86 million YTD capital Net Total Debt Leverage investments
Slide 13: 2024 Outlook
2024 Outlook
Slide 14: 2024 Full Year Outlook
2024 Full Year Outlook(1) ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 10% - 11% 18% - 21% 18% - 22% 16% - 21% $1,707 - $1,727 $358 - $368 $1,556 $303 $280 - $288 $237 $181 - $188 $156 2023 2024 2023 2024 2023 2024 2023 2024 Outlook Outlo
Slide 15: 2024 Financial Outlook
2024 Financial Outlook ($ in millions, except per share amounts, all numbers at midpoint) +133bps +113bps Adj Operating Income 16.5% % of sales(1) 16.3% Full Year Outlook 16.2% • Tightening sales outlook: +10% - 11% • 10% to 11% reported growth • 7% to 8% organic growth $1,753 $1,717 $1,717 $(36) •
Slide 16: 2024 Cash Flow Outlook
2024 Cash Flow Outlook(1,2) ($ in millions) Cash Flow From Ops Free Cash Flow Net Total Debt Leverage Target: 2.5x - 3.5x $195 - $205 CAPEX $120 $100 - $110 $180 $74 $90 - $100 $950 $970 - $980 $907 $116 3.5x $60 3.1x $42 2.6x - 2.7x 2022 2023 2024 2022 2023 2024 YE22 YE23 YE24 YE22 YE23 YE24 Outloo
Slide 17: Wrap-up
Wrap-up
Slide 18: Wrap-up
Wrap-up Continued strong 2024 performance with 3Q24 financial results • 3Q24 sales up 9% compared to 3Q23 … up 10% YTD • Adjusted operating income up 17% versus 3Q23 … up 23% YTD • Adjusted EPS up 11% versus 3Q23 … up 21% YTD Raising midpoint of full year profit and EPS outlook • Sales $1,707 to $1,
Slide 19: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Strategy for Growth Culture Strength Sustainable mid-single-digit
Slide 20: Questions?
Questions? Questions?
Slide 21: Appendix
Appendix
Slide 22: 2024 Outlook
2024 Outlook(a) ($ in millions, except per share amounts) ITGR: 3Q24 Earnings Conference Call | October 24, 2024 | Page 22
Slide 23: 2024 Supplemental Financial Information
2024 Supplemental Financial Information ($ in millions) ITGR: 3Q24 Earnings Conference Call | October 24, 2024 | Page 23
Slide 24: 3Q24 Adjusted Net Income
3Q24 Adjusted Net Income(1) ($ in millions, except per share amounts) Adj EPS $1.29 $0.23 $(0.01) $(0.08) $(0.00) $1.43 (1) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures; ITGR: 3Q24 Earnings Conference Call | October 24, 2024 | Page 24 refer to “Non-GAAP Financial Measures” in
Slide 25: Historical Financial Results
Historical Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EPS (1) Adjusted EPS is a non-GAAP financial measure; refer to “Non-GAAP Financial ITGR: 3Q24 Earnings Conference Call | October 24, 2024 | Page 25 Measures” in the Appendix. The quarterly and annual EPS numbers
Slide 26: Capitalization
Capitalization(1) ($ in millions) 09/27/24 09/27/24 As Reported Rate Cash & Cash Equivalents $ 36 USD Denominated Revolver [Due 2028] $ 216 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 27: Discontinued Operations Impact on Reported Results
(1) Discontinued Operations Impact on Reported Results ($ in thousands) The table below reflects the amounts moved to discontinued operations on a US GAAP and Non-GAAP adjusted basis from previously reported periods. GAAP Reported Non-GAAP Adjusted Discontinued Operations 1Q23 2Q23 3Q23 4Q23 FY23 1Q
Slide 28: Product Line Review
Product Line Review
Slide 29: Year-over-Year Sales Trend, Trailing 4 Quarters
Year-over-Year Sales Trend, Trailing 4 Quarters % of Sales(1) Integer Cardio & Vascular 55% % of Sales(1) CRM & Neuromodulation 38% 38% Delivering on sales growth objective (1) 3Q24 trailing 4 quarter % of Sales equals product line sales divided by total Integer sales ITGR: 3Q24 Earnings Conference
Slide 30: Cardio & Vascular
% of Sales(1) Cardio & Vascular ($ in millions) 55% 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 31: 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 32: 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 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 34: 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 35: Non-GAAP Reconciliation: 1Q24
Non-GAAP Reconciliation 1Q24 Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2024 2023 GAAP Non-GAAP Non-GAAP As Reported, Restructuring Acquisition Recast for and and (Gain) Loss Continuing Amortization restructuring- integration Other general on
Slide 36: Non-GAAP Reconciliation: 2Q24
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 As Reported, Restructuring Acquisition Recast for and and (Gain) Loss Continuing Amortization restructuring- integration Other general on
Slide 37: Non-GAAP Reconciliation: 3Q24
Non-GAAP Reconciliation 3Q24 Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2024 2023 GAAP Non-GAAP Non-GAAP Restructuring Acquisition and and (Gain) Loss Amortization restructuring- integration Other general on equity Tax (1) As Reported of inta
Slide 38: Non-GAAP Reconciliation: YTD
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 Acquisition and and (Gain) Loss Amortization restructuring- integration Other general on equity Tax (1) As Reported of intan
Slide 39: 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