Slide 1: 2Q22 Earnings Conference Call
2Q22 Earnings Conference Call July 28, 2022 ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 1
Slide 2: Integer Holdings Corporation Second Quarter 2022 Earnings Conference Call
Integer Holdings Corporation Second Quarter 2022 Earnings Conference Call 9 a.m. Eastern Time, July 28, 2022 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 • Product Line Review • 2022 Outlook • Wrap-up • Q&A ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 4
Slide 5: Opening Remarks
Opening Remarks
Slide 6: Summary
Summary 2Q22 financial results consistent with expectations 2Q22 sales increased • Double-digit sequential and year-over-year sales growth, as 13% versus 1Q22, expected … up 13% sequentially and 12% vs 2Q21 while adjusted operating income • Adjusted operating income up 28% compared to 1Q22, down inc
Slide 7: Integer Strategy Execution Update
Integer Strategy Execution Update Portfolio & Product Lines Strategies ✓ Accelerating revenue growth through New Product Introductions in high growth markets ‒ Ramping several new electrophysiology and structural heart products with strategic customers ‒ Launching neuromodulation & heart failure dev
Slide 8: Financial Results
Financial Results
Slide 9: 2Q22 Financial Results
2Q22 Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EBITDA Adj. Operating Income Adjusted Net Income % Change 12% 3% (1)% (3)% $350 $66 $64 $312 $50 $50 $36 $35 Adjusted EPS Organic Sales Change: 5% $1.07 $1.04 (1) Refer to the appendix of this presentation for a recon
Slide 10: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights ✓ 1H22 cash flow includes investments in inventory to support manufacturing execution ✓ $22 million capex spend in 1H22 … on-track to full-year guidance of $65 - $75 million Net Total Debt Leverage Change vs ✓
Slide 11: Product Line Review
Product Line Review
Slide 12: Year-over-Year Sales Trend, Trailing 4 Quarters
Year-over-Year Sales Trend, Trailing 4 Quarters % of Sales Cardio & Vascular Integer 51% CRM & Neuromodulation 39% Advanced Surgical, Orthopedics & Portable Medical 7% Electrochem (Non-Medical) 3% ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 12
Slide 13: Cardio & Vascular
Cardio & Vascular Offering a full-range of products and services for catheter-based interventional vascular devices and a suite of supply chain solutions to support the development and manufacturing of complex components, sub-assemblies and finished devices Quarterly Sales ($ in millions) Steerable
Slide 14: 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 15: 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 16: 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 • 2Q22 sales declined 1% vs. 2Q21 as our ability to fulfill Y-o-Y %
Slide 17: 2022 Outlook
2022 Outlook
Slide 18: 2022 Full-Year Outlook
2022 Full-Year Outlook(1) ($ in millions, except per share amounts) Sales Adjusted EBITDA Adj. Operating Income Adjusted Net Income % Change 12% - 14% 13% - 17% 10% - 16% 4% - 11% $1,370 - $1,395 $273 - $285 $1,221 $243 $206 - $218 $187 $136 $140 - $151 Adjusted EPS Organic Sales Change: 6% - 8% $4.
Slide 19: 2022 Cash Flow Outlook
2022 Cash Flow Outlook(1) NTDR 80-95 ($ in millions) Cash Flow From Ops Free Cash Flow Net Total Debt Reduction Leverage (excluding acquisition debt) Target: 2.5x - 3.5x CAPEX $65 - $75 $181 $47 $53 $29 AVX $157 $151 - $166 $135 3.6x $152 $123 $29 3.4x AVX $104 (2) 3.0x - 3.2x $106 $91 $81 - $96 (3)
Slide 20: Wrap-up
Wrap-up
Slide 21: Wrap-up
Wrap-up ✓ Delivered 2Q22 as expected on both sales and profit • Sales up 13% compared to 1Q22 and up 12% compared to 2Q21 • Adjusted operating income up 28% vs. 1Q22 and down 1% from 2Q21 ✓ Sales growth outlook increased to 12% - 14%, organic 6% - 8% • Increased guidance … sales up $14 million, AOI
Slide 22: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Strategy for Growth Culture Strength ✓ Sustainable mid-single-digit ✓
Slide 23: Questions?
Questions? ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 23
Slide 24: Appendix
Appendix
Slide 25: 2Q22 Adjusted Net Income
2Q22 Adjusted Net Income(1) ($ in millions, except per share amounts) (1) Refer to the appendix of this presentation for a reconciliation of Adjusted Net Income and Adjusted EPS to the most directly comparable GAAP measure ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 25
Slide 26: 2022 Outlook (a)
2022 Outlook(a) ($ in millions, except per share amounts) ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 26
Slide 27: 2022 Outlook
2022 Outlook ($ in millions, except per share amounts) ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 27
Slide 28: Historical Financial Results
Historical Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EPS (1) Refer to the notes in the appendix of this presentation for a reconciliation of Adjusted EPS to the most directly comparable GAAP measure; The quarterly and annual EPS numbers are calculated independentl
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2Q22 Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 29
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation YTD Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 30
Slide 31: Capitalization
Capitalization ($ in millions) (1) Principal amount of debt outstanding, not reduced for unamortized discount and debt issuance costs (2) Non-GAAP financial measure. Refer to Notes in the appendix of this presentation. ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 31
Slide 32: Notes
Notes 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
Slide 33: Contact Information
Contact Information Tony Borowicz Senior Vice President, Investor Relations Tony.Borowicz@Integer.net (O) 716.759.5809 www.integer.net ITGR: 2Q22 Earnings Conference Call / July 28, 2022 / Page 33