Slide 1: 2Q23 Earnings Conference Call
2Q23 Earnings Conference Call July 27, 2023 ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 1
Slide 2: Second Quarter 2023 Earnings Conference Call
Integer Holdings Corporation Second Quarter 2023 Earnings Conference Call 9 a.m. Eastern Time, July 27, 2023 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 • 2023 Outlook • Wrap-up • Q&A ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 4
Slide 5: Opening Remarks
Opening Remarks ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 5
Slide 6: Summary
Summary 2Q23 sales growth Continued strong 2023 performance with 2Q23 financial results • 2Q23 organic sales up 14%, adjusted operating income up 20% vs. 2Q22 +14% versus 2Q22, • Strong growth across all product lines, driven by strong customer demand with expanding adj. • Meaningful improvement in
Slide 7: Financial Results
Financial Results ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 7
Slide 8: 2Q23 Financial Results
2Q23 Financial Results(1) ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 14% 16% 20% 11% $400 $76 $350 $66 $60 $50 $38 $35 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 Adjusted EPS Organic Sales Change: 14% $1.04 $1.14 (1) Organic Sales Change,
Slide 9: Product Line Quarterly Sales Performance Trends
Product Line Quarterly Sales Performance Trends ($ in millions) Cardio & Vascular CRM & Neuromodulation 2Q23 Highlights ✓ Strong year-over-year growth across all product lines in 2Q23 … strong customer demand and an improving supply chain ✓ Continued strong organic Y-o-Y % Y-o-Y % Change growth from
Slide 10: 2Q23 Adjusted Net Income
2Q23 Adjusted Net Income(1) ($ in millions, except per share amounts) $8 $(0) $38 $35 $(3) $(2) 2Q22 Operational FX Interest Tax Rate 2Q23 Drivers Adj EPS $1.04 $0.24 $(0.00) $(0.09) $(0.05) $1.14 (1) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures; refer to “Non-GAAP Financial
Slide 11: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights ✓ Strong 2Q23 cash flow from ops driven by higher sales volume and working capital efficiency ✓ Executed AR factoring program, contributed approx. $20 million cash flow from ops ✓ $33 million of 2Q23 capex in
Slide 12: 2023 Outlook
2023 Outlook ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 12
Slide 13: 2023 Full Year Outlook
2023 Full Year Outlook(1) ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 11% - 13% 15% - 18% 17% - 21% 10% - 15% $1,530 - $1,550 $294 - $302 $1,376 $256 $224 - $232 $192 $143 - $149 $130 2022 2022 2023 2023 2022 2022 2023 2023 2022 2022 202
Slide 14: 2023 Financial Outlook
2023 Financial Outlook ($ in millions) +86bps Full year outlook 14.6% 14.8% Adj Operating • 11% to 13% year-over-year reported growth Income 13.9% with 10% to 12% organic growth % of sales(1) (at midpoint) • +86bps AOI as a % of sales improvement at mid-point of 2023 guidance $1,470 - $1,500 $1,530
Slide 15: 2023 Cash Flow Outlook
2023 Cash Flow Outlook(1) ($ in millions) Cash Flow From Ops Free Cash Flow Net Total Debt Leverage $100 - $120 $185 - $205 CAPEX $74 $53 $157 $907 $880 - $900 $104 $818 3.5x $116 $75 - $95 3.4x 2.5x - 3.5x $42 2021 2021 2022 2022 2023 2023 2021 2021 2022 2022 2023 2023 2021 YE21 2022 YE22 2023 YE23
Slide 16: Wrap-up
Wrap-up ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 16
Slide 17: Wrap-up
Wrap-up ✓ Continued strong 2023 performance with 2Q23 financial results • 2Q23 organic sales up 14%, adjusted operating income up 20% vs. 2Q22 • Strong growth across all product lines, driven by strong customer demand • Meaningful improvement in supply chain and a stabilizing labor environment ✓ Rai
Slide 18: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Strategy for Growth Culture Strength ✓ Sustainable mid-single-digit ✓
Slide 19: Questions?
Questions? ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 19
Slide 20: Appendix
Appendix ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 20
Slide 21: 2023 Outlook
2023 Outlook(a) ($ in millions, except per share amounts) ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 21
Slide 22: 2023 Supplemental Financial Information
2023 Supplemental Financial Information ($ in millions) ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 22
Slide 23: Historical Financial Results
Historical Financial Results(1) ($ in millions, except per share amounts) Sales Adjusted EPS (2) (1) Adjusted EPS is a non-GAAP financial measure; refer to “Non-GAAP Financial Measures” in the Appendix. (2) The quarterly and annual EPS numbers are calculated independently and may not sum to the tota
Slide 24: Capitalization
Capitalization(1) ($ in millions) 06/30/23 06/30/23 As Reported Rate Cash & Cash Equivalents $ 39 USD Denominated Revolver [Due 2028] $ - SOFR + 150 EUR Denominated Revolver [Due 2028] $ 109 EURIBOR + 150 TLA [Due 2028] $ 393 SOFR + 150 Convertible Bonds [Due 2028] $ 500 2.125% fixed Total Principal
Slide 25: Product Line Review
Product Line Review ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / 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 51% CRM & Neuromodulation 38% Advanced Surgical, Orthopedics & Portable Medical 7% Electrochem 4% ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / 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 • 2Q23 sales increased 7% vs. 2Q22 driven by strong demand Y-o-Y %
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / 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 2Q23 Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2023 2022 GAAP Non-GAAP Non-GAAP Restructuring Medical and Acquisition device restructuring- and Debt / regulations Amortization related integration Other general Investm
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation YTD Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2023 2022 GAAP Non-GAAP Non-GAAP Restructuring Medical and Acquisition device restructuring- and Debt / regulations Amortization related integration Other general Investme
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 ITGR: 2Q23 Earnings Conference Call / July 27, 2023 / Page 35