Slide 1: Greatbatch FY 2015 Fourth Quarter Earnings Call
Greatbatch FY 2015 Fourth Quarter Earnings Call February 29, 2016 1
Slide 2: Forward-Looking Statement
Forward‐Looking Statement Some of the statements made in the presentation whether written or oral may be “forward‐looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of r
Slide 3: Q4 Earnings Call Presenters
Q4 Earnings Call Presenters Thomas J. Hook Michael Dinkins President & CEO Executive Vice President & Chief Financial Officer 3
Slide 4: Agenda
Agenda Thomas J. Hook 2015 Achievements Nuvectra Update Acquisition Update Michael Dinkins Financials Thomas J. Hook Introducing Integer Question & Answer 4
Slide 5: Multiple Achievements in 2015
Multiple Achievements in 2015 Completed transformative acquisition of Lake Region Medical Received FDA approval for the Algovita medical device Expanded CCC Medical Device manufacturing capacity to meet accelerating Neurostimulation market demands Continued advancement of Manufacturing perfo
Slide 6: Nuvectra Spin-off Update
Nuvectra Spin‐off Update On February 23, Greatbatch Board of Directors approved the spin‐off of Nuvectra Nuvectra common stock will be distributed on March 14, 2016 to Greatbatch stockholders of record as of the close of the business on March 7, 2016 ̶ Greatbatch shareholders will receive one sh
Slide 7: Acquisition Synergy Plan Update
Acquisition Synergy Plan Update Clear line of sight to deliver 3 year synergy plan of at least $60m Integration well underway and progressing on track to achieve targeted first year synergies of $25m. Current focus in the areas of: – Overlapping organization structures, contract spending and IT
Slide 8: Senior Management Team
Senior Management Team President/CEO since 2004; 15 years experience in President CTI Solutions Jen Bolt senior leadership roles in Tom Hook President & Group 2002 – 04; 20 years President – engineering supply chain, Chief Executive Officer experience in senior Electrochem operations management lead
Slide 9: Established Track Record of Integrating Businesses and Driving Top Line Growth
Established Track Record of Integrating Businesses and Driving Top Line Growth Our Capabilities Then Our Capabilities Today CRM & Vascular Cardio & Vascular Cardiac & Neuromodulation Advanced Surgical, Orthopedics, & Portable Medical Energy, Environmental & Military Market Capitalization: $1.6bn 201
Slide 10: Financials
INTEGER Financials
Slide 11: Q4 2015 Sales Performance
Q4 2015 Sales Performance GB Organic Constant Currency (CC) Growth 13% Sales of $179 million was a record quarter for legacy Greatbatch $139M in Sales from Lake Region Medical post acquisition 7% Organic growth in Cardiac/Neuromodulation business Macro economic challenges in Energy market se
Slide 12: Q4 2015 Financial Overview
Q4 2015 Financial Overview ($ in thousands, except per share data) Three Month Ended January 1, January 2, % Change 2016 2015 Sales $317,567 $169,726 87% Organic Constant Currency Sales Growth 7% (5)% GAAP Diluted EPS $(0.85) $0.54 (257)% Adjusted Diluted EPS $0.92 $0.77 19% EBITDA* $5,592 $27,871 (
Slide 13: 2015 Financial Overview
2015 Financial Overview ($ in thousands, except per share data) Year End January 1, January 2, % Change 2016 2015 Sales $800,414 $687,787 16% Organic Constant Currency Sales Growth (2)% 3% GAAP Diluted EPS $(0.29) $2.14 (114)% Adjusted Diluted EPS $2.90 $2.86 1% EBITDA $62,445 $118,028 (47)% Adjuste
Slide 14: Balance Sheet Metrics
Balance Sheet Metrics ($ in millions except for EPS) 2015 2014 2015 2014 Adjusted EBITDA $166 $148 Working Capital $361 $242 ROIC* 5.0% 8.4% Operating Cash Flow $12 $81 2015 2014 Days Sales Outstanding* 54 66 Days Inventory Outstanding* 86 103 Our balance sheet is solid and will become stronger with
Slide 15: Lake Region Medical Financing
Lake Region Medical Financing Secured $1,760 million financing Term Loan A/Revolver Size $575M Pricing Libor + 325 bps Maturity 6 years (TLA) 5 years (Revolver) Term Loan B Size $1,025M Pricing Libor + 425 bps; 1% libor floor OID 99 Maturity 7 years Senior Unsecured Notes Size $360M Pricing 9.13% OI
Slide 16: Introducing Integer
INTRODUCING I m a g i n e W h a t We W i l l B u i l d To g e t h e r 16
Slide 17: Introducing Integer
Introducing Integer World’s Leading Medtech Manufacturing Partner >2x Larger than Closest Competitor Medical Device Systems $1.4bn in Revenue 90% of Neurostimulation devices on market contain an Integer Component Critical Early Stage Components for Medical Innovation Presence across 100 count
Slide 18: Integer's Diversified Revenue Base
Integer’s Diversified Revenue Base 2015 Proforma Sales Mix Cardiovascular / Tachycardia Structural Heart Peripheral Vascular Neurostimulation Neurovascular Bradycardia Cardiac & Urology Neuromodulation 28% Cardio & 39% Vascular Oncology $1,443M 4% Electrochem Environmental 29% Military Advanced Surg
Slide 19: Well-Positioned to Partner With Our Customers As They Grow and Evolve
Well‐Positioned to Partner With Our Customers As They Grow and Evolve Partner of Choice to MedTech Customers 1 Design & Development Expertise to Facilitate Customer Innovation Global Supply Chain Footprint With Established 2 Manufacturing & Quality Standards Full Spectrum of Manufacturing Capabiliti
Slide 20: Appendix
INTEGER Appendix
Slide 21: GAAP Reconciliation
GAAP Reconciliation Net Income and Diluted EPS Reconciliation Three Months Ended Year Ended January 1, January 2, January 1, January 2, 2016 2015 2016 2015 Net Per Per Net Per Per Income Diluted Net Diluted Income Diluted Net Diluted (in thousands except per share amounts) (Loss) Share Income Share
Slide 22: GAAP Reconciliation
GAAP Reconciliation Adjusted EBITDA reconciliation Three Months Ended Year Ended January 1, January 2, January 1, January 2, (dollars in thousands) 2016 2015 2016 2015 Net income (loss) as reported $ (24,907) $ 14,176 $ (7,594) $ 55,458 Interest expense 25,362 1,044 33,513 4,252 Provision (benefit)
Slide 23: Other Operating Expenses 2015
Other Operating Expenses 2015 Q1 Q2 Q3 Q4 YTD 2014 Investments and Capacity and Portable Medical and Vascular product line Capabilities $6.5 $6.3 $5.1 $5.2 $23.0 transfers Orthopaedic Optimization $0.5 $0.5 $0.4 $1.4 Lake Region Consolidation and Optimization $2.0 $2.0 Acquisition and Integration Co
Slide 24: Contact Information
Contact Information Tony Borowicz Vice President Business Development & Investor Relations Greatbatch tborowicz@greatbatch.com Work: 716‐759‐5809 Mobile: 716‐572‐9972 www.greatbatch.com 24