Slide 1: First Quarter 2012 Earnings Call
FIRST QUARTER 2012 EARNINGS CALL April 26, 2012
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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
Slide 3: Earnings Call Participants
EARNINGS CALL PARTICIPANTS Thomas J. Hook - President & CEO Thomas J. Mazza - Senior Vice President & CFO Marco F. Benedetti - Corporate Controller & Treasurer 3
Slide 4: Agenda
AGENDA Thomas J. Hook - First Quarter 2012 Highlights - Strategic Focus Thomas J. Mazza - First Quarter 2012 Financial Results - Financial Guidance Question & Answer 4
Slide 5: First Quarter 2012 Highlights
FIRST QUARTER 2012 HIGHLIGHTS Record Sales of $159.1 Million – 7% Increase - Acquisitions contributed $20.9 million - Organic constant currency revenue decreased 6% •Tough comparables in CRM & Orthopaedics •Continuing CRM headwinds - Vascular Access growth of 11% Results - Adjusted operating inc
Slide 6: Strategic Focus
3 Greatbatch Innovative STRATEGIC FOCUS VEE Targeted Acquisitions dj
Slide 7: Strategic Focus: Core Business Growth
STRATEGIC FOCUS Core Business Growth - Two multi-year agreements signed with top 5 OEM customers - Vascular Access revenue increased 11% - Commercialization of medical devices to drive core component growth - Made significant progress on Orthopaedic optimization plan, medical device build-out and
Slide 8: Strategic Focus: Targeted Acquisitions Growth
STRATEGIC FOCUS Targeted Acquisitions Growth - Successfully integrated Micro Power • Ahead of original expectations • Leveraging strengths of both organizations • Well received by customers and associates • Strong foundation for growth - Completed NeuroNexus acquisition which added extensive intel
Slide 9: Strategic Focus: Innovative Medical Devices Growth
STRATEGIC FOCUS Innovative Medical Devices Growth - Continued to gain traction as program milestones are achieved •Two 510(k) clearances and one CE Mark received in Q1 2012 •8 medical device patents filed in Q1 2012 (10 granted) - Medical device sales expected to ramp up in 2H 2012 9
Slide 10: First Quarter 2012 Sales
FIRST QUARTER 2012 SALES CRM & Neuromodulation Micro Power added $20.6 million to sales - Tough comparable Q1 & Q2 2012 Legacy Electrochem consistent despite - Stabilizing market tough comparables with Q1 2011 Vascular Access Now represents 26% of Greatbatch revenue - Market growth and new
Slide 11: First Quarter 2012 Financial Results
FIRST QUARTER 2012 FINANCIAL RESULTS 11
Slide 12: 2012 Financial Guidance
2012 FINANCIAL GUIDANCE Reaffirming Guidance provided at the beginning of the year: - Sales $645 million - $665 million - Adjusted OI as a % of Sales(1) 11.5% - 12.5% - Adjusted Diluted EPS(2) $1.75 - $1.85 Assumes revenue improves in 2H 2012 as comparisons ease, underlying markets improve and a
Slide 13: Appendix
$8 Greatbatch APPENDIX Innovative Medical Devices ~ Targeted Acquisitions |
Slide 14: GAAP Reconciliation
Hi $ Greatbatch GAAP RECONCILIATON Operating income as reported Adjustments: Inventory step-up amortization (COS) Medical device DVT expenses (RD&E) Integration expenses Adjusted operating income Adjusted operating margin Three Months Ended March 30, April 1, 2012 2011 $ 11,198 $ 17.966 532 - 1,040
Slide 15: GAAP Reconciliation
$8 Greatbatch GAAP RECONCILIATON Three Months Ended March 30, April 1, 2012 2011 Income before taxes as reported $ 6119 $ 17,827 Adjustments: Inventory step-up amortization (COS) 532 - Medical device DVT expenses (RD&E) 1.040 590 Consolidation and optimization costs 1,568 239 Integration expenses 94
Slide 16: Contact Information
CONTACT INFORMATION Marco F. Benedetti Corporate Controller & Treasurer Greatbatch 10000 Wehrle Drive Clarence, NY 14031 Tel 716-759-5856 mbenedetti@greatbatch.com www.greatbatch.com 16