Slide 1: 1Q23 Earnings Conference Call
1Q23 Earnings Conference Call April 27, 2023 ITGR: 1Q23 Earnings Conference Call / April 27, 2023 / Page 1
Slide 2: First Quarter 2023 Earnings Conference Call
Integer Holdings Corporation First Quarter 2023 Earnings Conference Call 9 a.m. Eastern Time, April 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: 1Q23 Earnings Conference Call / April 27, 2023 / Page 4
Slide 5: Opening Remarks
Opening Remarks ITGR: 1Q23 Earnings Conference Call / April 27, 2023 / Page 5
Slide 6: Summary
Summary 1Q23 sales increased Strong start to the year with 1Q23 financial results 22% versus 1Q22, • 1Q23 sales up 22% vs. 1Q22, up 21% organic while adjusted • Double digit year-over-year growth across all product lines, driven by strong operating income rate customer demand and continued supplier
Slide 7: Financial Results
Financial Results ITGR: 1Q23 Earnings Conference Call / April 27, 2023 / Page 7
Slide 8: 1Q23 Financial Results
(1) 1Q23 Financial Results ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 22% 22% 28% 11% $379 $66 $311 $54 $50 $39 $29 $26 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 Adjusted EPS Organic Sales Change: 21% $0.78 $0.87 (1) Organic Sales Change,
Slide 9: Product Line Quarterly Sales Performance Trends
Product Line Quarterly Sales Performance Trends ($ in millions) Cardio & Vascular CRM & Neuromodulation 1Q23 Highlights ✓ Double-digit year-over-year growth across all product lines in 1Q23 … Strong customer demand and continued supplier delivery recovery ✓ Strong organic growth from Y-o-Y % Change
Slide 10: 1Q23 Adjusted Net Income
(1) 1Q23 Adjusted Net Income ($ in millions, except per share amounts) $9 $(1) $0 $29 $26 $(6) 1Q22 Operational FX Interest Tax Rate 1Q23 Drivers Adj EPS $0.78 $0.27 $(0.02) $(0.16) $0.00 $0.87 (1) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures; refer to “Non-GAAP Financial Mea
Slide 11: Cash Flow & Leverage Ratio
Cash Flow & Leverage Ratio(1) ($ in millions) Cash Flow From Ops Free Cash Flow Highlights ✓ 1Q23 cash flow from ops consistent with typical seasonality from annual bonus and rebate payments ✓ 1Q23 cash flow from ops $12 million below 1Q22, driven by: + $12 more AEBITDA − $5 CARES payment − $9 Inter
Slide 12: 2023 Outlook
2023 Outlook ITGR: 1Q23 Earnings Conference Call / April 27, 2023 / Page 12
Slide 13: 2023 Full Year Outlook
(1) 2023 Full Year Outlook ($ in millions, except per share amounts) Sales Adj. EBITDA Adj. Operating Income Adj. Net Income % Change 7% - 9% 11% - 16% 10% - 16% 4% - 11% $1,470 - $1,500 $285 - $296 $1,376 $256 $211 - $222 $192 $130 $134 - $144 2022 2022 2023 2023 2022 2022 2023 2023 2022 2022 2023
Slide 14: 2023 Financial Outlook
2023 Financial Outlook ($ in millions) +70 bps Full year 14.6% Adj Operating 13.9% • 7% to 9% year-over-year reported and Income organic growth % of sales(1) +7% to 9% • +70bps AOI as a % of sales improvement at mid-point of 2023 guidance $1,470 - $1,500 Quarterly profile $1,376 • 1Q23 sales of $379
Slide 15: 2023 Cash Flow Outlook
(1) 2023 Cash Flow Outlook ($ in millions) Cash Flow From Ops Free Cash Flow Net Total Debt Leverage CAPEX $100 - $120 $180 - $200 $74 $53 $157 $907 $885 - $905 $104 $818 3.5x $116 $70 - $90 3.4x 2.5x - 3.5x $42 2021 2021 2022 2022 2023 2023 2021 2022 2023 2021 YE21 2022 YE22 2023 YE23 E21 YE21 E22
Slide 16: Wrap-up
Wrap-up ITGR: 1Q23 Earnings Conference Call / April 27, 2023 / Page 16
Slide 17: Wrap-up
Wrap-up ✓ Strong start to the year with 1Q23 financial results • 1Q23 sales up 22% vs. 1Q22, up 21% organic • Adjusted operating income up 28% vs. 1Q22, expanded rate by ~70 bps • Labor environment stabilizing but supply chain environment remains challenging ✓ Reiterate 2023 outlook: Above-market gr
Slide 18: Integer Investment Thesis
Integer Investment Thesis Strategy Financial Objectives •1 Sales growth 200 basis points above market •2 Operating profit 2x sales growth rate •3 Debt leverage 2.5x – 3.5x Resilient Compelling Performance Financial Business Model Strategy for Growth Culture Strength ✓ Sustainable mid-single-digit ✓
Slide 19: Questions?
Questions? ITGR: 1Q23 Earnings Conference Call / April 27, 2023 / Page 19
Slide 20: Appendix
Appendix ITGR: 1Q23 Earnings Conference Call / April 27, 2023 / Page 20
Slide 21: 2023 Outlook
(a) 2023 Outlook ($ in millions, except per share amounts) ITGR: 1Q23 Earnings Conference Call / April 27, 2023 / Page 21
Slide 22: 2023 Supplemental Financial Information
2023 Supplemental Financial Information ($ in millions, except per share amounts) ITGR: 1Q23 Earnings Conference Call / April 27, 2023 / Page 22
Slide 23: Historical Financial Results
(1) Historical Financial Results ($ in millions, except per share amounts) Sales Adjusted EPS 1 1 10 2 12 2 23 2 10 11 23 21 20 22 20 1 1 3 13 131 12 123 13 121 122 1.11 1.0 1.0 1.0 0. 0. 0. 0. 0. 1 1 1 1 1 1 1 2 1 1 1 1 1 1Q21 2Q21 3Q21 Q21 1Q22 2Q22 3Q22 Q22 1Q23 1Q21 2Q21 3Q21 Q21 1Q22 2Q22 3Q22
Slide 24: Capitalization
Capitalization(1) ($ in millions) 03/31/23 03/31/23 As Reported Rate Cash & Cash Equivalents $ 41 $500M Revolver [Due 2028] - US Dollar based borrowings $ 10 SOFR + 175 - Euro based borrowings $ 109 Euribor + 175 TLA [Due 2028] $ 400 SOFR + 175 Convertible Notes [Due 2028] $ 500 2.125% fixed Total P
Slide 25: Product Line Review
Product Line Review ITGR: 1Q23 Earnings Conference Call / April 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: 1Q23 Earnings Conference Call / April 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 • 1Q23 sales increased 63% vs. 1Q22 driven by strong Y-o-Y % Change
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures ITGR: 1Q23 Earnings Conference Call / April 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 1Q23 Net Income and Diluted EPS Reconciliation – Detailed View ($ in thousands, except per share amounts) 2023 2022 GAAP Non-GAAP Non-GAAP Restructuring and Acquisition restructuring- and Debt / Medical Amortization related integration Other general Investment device Tax As R
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: 1Q23 Earnings Conference Call / April 27, 2023 / Page 34