Slide 1: 1Q24 Earnings Conference Call
1Q24 Earnings Conference Call April 25, 2024 ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 1
Slide 2: First Quarter 2024 Earnings Conference Call
Integer Holdings Corporation First Quarter 2024 Earnings Conference Call 9 a.m. Eastern Time, April 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: 1Q24 Earnings Conference Call / April 25, 2024 / Page 4
Slide 5: Opening Remarks
Opening Remarks ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 5
Slide 6: Summary
Summary 1Q24 sales growth Strong start to 2024 performance with 1Q24 financial results +10% versus 1Q23, • 1Q24 sales up 10% compared to 1Q23 with adj. operating • Adjusted operating income up 26% compared to 1Q23 income growing 2.7x • 1Q24 adjusted EPS of $1.14, up 31% compared to 1Q23 sales growth
Slide 7: Financial Results
Financial Results ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 7
Slide 8: 1Q24 Financial Results
(1) 1Q24 Financial Results ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 10% 22% 26% 33% $415 $379 $81 $66 $63 $50 $39 $29 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 Adjusted EPS Organic Sales Change: 6% $0.87 $1.14 (1) Organic Sales Change,
Slide 9: Product Line Sales Performance Trends
Product Line Sales Performance Trends ($ in millions) Cardio & Vascular Trailing 4 quarter sales increased 18% year-over-year in 1Q24 with Trailing 4 Quarter Sales double-digit growth across all C&V markets, driven by strong demand, and the InNeuroCo and Pulse acquisitions Y-o-Y % Change CRM & Neu
Slide 10: 1Q24 Adjusted Net Income
(1) 1Q24 Adjusted Net Income ($ in millions, except per share amounts) $10 $1 $39 $(0) $(1) $29 1Q23 Operational FX Interest Tax Rate 1Q24 Drivers Adj EPS $0.87 $0.30 $(0.01) $(0.04) $0.02 $1.14 (1) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures; refer to “Non-GAAP Financial Me
Slide 11: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights 1Q24 cash flow from operations consistent with typical seasonality from annual bonus payments $29 million of 1Q24 capex…expect full year spend of $90 to $110 million Net Total Debt Leverage Change vs $71 $
Slide 12: 2024 Outlook
2024 Outlook ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 12
Slide 13: 2024 Full Year Outlook
(1) 2024 Full Year Outlook ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 9% - 11% 15% - 21% 13% - 20% 8% - 18% $1,735 - $1,770 $355 - $375 $1,597 $309 $272 - $290 $241 $171 - $185 $158 2023 2024 2023 2024 2023 2024 2023 2024 Outlook Outloo
Slide 14: 2024 Financial Outlook
2024 Financial Outlook ($ in millions) +91bps Full year 16.0% • 9% to 11% year-over-year reported and 6% Adj Operating to 8% organic growth Income 15.1% % of sales(1) • +91bps AOI as a % of sales improvement at +9% - 11% (at midpoint) mid-point of 2024 outlook $1,735 - $1,770 Quarterly profile $1,59
Slide 15: 2024 Cash Flow Outlook
(1) 2024 Cash Flow Outlook ($ 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
Slide 16: Wrap-up
Wrap-up ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 16
Slide 17: Wrap-up
Wrap-up Strong start to 2024 performance with 1Q24 financial results • 1Q24 sales up 10% compared to 1Q23 • Adjusted operating income up 26% compared to 1Q23 • 1Q24 adjusted EPS of $1.14, up 31% compared to 1Q23 Confirming 2024 outlook: above-market growth, expanding margins • Sales $1,735 to $1
Slide 18: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Strategy for Growth Culture Strength Sustainable mid-single-digit
Slide 19: Questions?
Questions? ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 19
Slide 20: Appendix
Appendix ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 20
Slide 21: 2024 Outlook
(a) 2024 Outlook ($ in millions, except per share amounts) ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 21
Slide 22: 2024 Supplemental Financial Information
2024 Supplemental Financial Information ($ in millions) ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 22
Slide 23: Historical Financial Results
(1) Historical Financial Results ($ 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. The quarterly and annual EPS numbers are calculated independently and may not sum to the total. ITGR
Slide 24: Capitalization
Capitalization(1) ($ in millions) (1) Net Total Debt, Adjusted EBITDA and Leverage Ratio are non-GAAP financial measures; refer to “Non-GAAP Financial Measures” in the Appendix ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 24
Slide 25: Product Line Review
Product Line Review ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 25
Slide 26: Year-over-Year Sales Trend, Trailing 4 Quarters
Year-over-Year Sales Trend, Trailing 4 Quarters % of Sales Cardio & Vascular Integer 53% CRM & Neuromodulation 38% Advanced Surgical, Orthopedics & Portable Medical 7% Electrochem 2% ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 26
Slide 27: Cardio & Vascular
Cardio & Vascular 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 Quarterly Sales ($ in millions) Catheters
Slide 28: CRM & Neuromodulation
CRM & Neuromodulation 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 Sales ($ in millions) Pulse Gener
Slide 29: Advanced Surgical, Orthopedics & Portable Medical
Advanced Surgical, Orthopedics & Portable Medical Offering a broad portfolio of power solutions and technologies to Portable Medical markets and supporting the divested AS&O product line Quarterly Sales ($ in millions) Orthopedic Implants & Electrosurgical Li-Ion Battery Core Battery Instruments Acc
Slide 30: Electrochem
Electrochem Enhancing lives worldwide by providing superior power solutions that enable the success and advancement of our customers’ critical applications Quarterly Sales ($ in millions) Battery Cells Battery Packs Battery Chargers • 1Q24 sales declined year-over-year, returning to a Y-o-Y % Change
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 31
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
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 Restructuring Acquisition and and (Gain) Loss Amortization restructuring- integration Other general on equity Tax (1) As Reported of inta
Slide 34: 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 ITGR: 1Q24 Earnings Conference Call / April 25, 2024 / Page 34