Slide 1: Historical Pro Forma Information
Historical Pro Forma Information 2014 & 2015 Total Year Four Quarters of 2015 First Quarter of 2016 Greatbatch Confidential. Not for Distribution. 1
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company uses non-GAAP financial measures, including the measures provided in this presentation, to describe its operating results as well as the pro forma effect of the recent merger. Our management team believes that the presentation of these measures provides useful
Slide 3: Assumptions
Assumptions • The following slides present pro forma results as if the Greatbatch acquisition of Lake Region Medical occurred at the beginning of Fiscal Year 2014. • We have estimated the impact to depreciation, amortization, interest and taxes based on the preliminary purchase price allocation, whi
Slide 4: Assumptions (con’t)
Assumptions (con’t) • Pro forma financial statements have not been adjusted for expected synergies of $25 million in year one and up to at least $60 million after three years. • Pro forma interest expense was computed using a 5.7% weighted average interest rate. • These pro forma financial statement
Slide 5: Product Mapping: Prior vs New View
Product Mapping: Prior vs New View Greatbatch Medical Lake Region Medical New Greatbatch, Inc. Orthopaedic Advanced Surgical, Orthopaedics, and Advanced Surgical Portable Medical Portable Medical Vascular Cardio and Vascular Cardio and Vascular Cardiac/Neuromodulation QiG Cardiac/Neuromodulation Eli
Slide 6: Greatbatch Medical Revenue-Recast
Greatbatch Medical Revenue-Recast* Segm ent FY 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 FY 2015 Q1 2016 Adv anced Surgical, Orthopaedics, $ 439,558 $ 1 05,7 7 3 $ 1 08,830 $ 98,7 63 $ 1 05,1 7 7 $ 41 8,543 $ 91 ,329 and Portable Medical Cardio and Vascular 563,852 1 38,084 1 44,7 1 0 1 46,853 1 32,61 6
Slide 7: Pro Forma Income Statement
Pro Forma Income Statement Summary by Period (in thousands, except per share data) YTD 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 YTD 2015 Q1 2016 Sales $ 1,468,948 $ 357,867 $ 376,917 $ 348,420 $ 359,634 $ 1,442,838 $ 331,058 Cost of sales 1,090,580 259,660 270,470 250,073 282,377 1,062,580 240,244 Gross
Slide 8: Combined EBITDA, As Adjusted
Combined EBITDA, As Adjusted Summary by Period YTD 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 YTD 2015 Q1 2016 Net income (loss) $ (22,062) $ 4,549 $ 8,725 $ (4,643) $ (47,489) $ (38,858) $ (9,285) Interest expense 108,024 26,853 26,787 31,506 40,576 125,722 27,617 Provision for income taxes (33,448) 356
Slide 9: Combined EPS, As Adjusted
Combined EPS, As Adjusted Summary by Period YTD 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 YTD 2015 Q1 2016 Combined Per Combined Per Combined Per Combined Per Combined Per Combined Per Combined Per Net Income Share (2) Net Income Share (2) Net Income Share (2) Net Income Share (2) Net Income Share (2) Ne
Slide 10: Pro Forma Revenue FY 2014
Pro Forma Revenue* FY 2014 Nuvectra Combined Greatbatch, Lake Region Reclassification Revenue Pro Forma Pro Forma Product Line Recast Medical, Recast Adjustment Divested Adjustments Revenue Advanced Surgical, Orthopaedics, and Portable Medical $216,339 $223,219 $- $- $- $439,558 Cardio and Vascular
Slide 11: Pro Forma Revenue Q1 2015
Pro Forma Revenue* Q1 2015 Nuvectra Combined Greatbatch, Lake Region Reclassification Revenue Pro Forma Pro Forma Product Line Recast Medical, Recast Adjustment Divested Adjustments Revenue Advanced Surgical, Orthopaedics, and Portable Medical $ 52,638 $ 53,135 $ - $ - $ - $ 105,773 Cardio and Vascu
Slide 12: Pro Forma Revenue Q2 2015
Pro Forma Revenue* Q2 2015 Nuvectra Combined Greatbatch, Lake Region Reclassification Revenue Pro Forma Pro Forma Product Line Recast Medical, Recast Adjustment Divested Adjustments Revenue Advanced Surgical, Orthopaedics, and Portable Medical $53,181 $55,649 $- $- $- $108,830 Cardio and Vascular 12
Slide 13: Pro Forma Revenue Q3 2015
Pro Forma Revenue* Q3 2015 Combined Greatbatch, Lake Region Reclassification Nuvectra Revenue Pro Forma Pro Forma Product Line Recast Medical, Recast Adjustment Divested Adjustments Revenue Advanced Surgical, Orthopaedics, and Portable Medical $44,976 $53,787 $- $- $- $98,763 Cardio and Vascular 14,
Slide 14: Pro Forma Revenue Q4 2015
Pro Forma Revenue* Q4 2015 Lake Region Nuv ectra Com bined Pro Greatbatch, Medical, Recast Reclassification Rev enues Pro Form a Form a Product Line Recast October 2015 (1) Adjustm ent Div ested Adjustm ents Rev enue Adv anced Surgical Orthopaedics and Portable Medical $ 92,590 $ 1 2,587 $ - $ - $ -
Slide 15: Pro Forma Revenue FY 2015
Pro Forma Revenue* FY 2015 Nuv ectra Com bined Lake Region Reclassification Rev enues Pro Form a Pro Form a Product Line Greatbatch, Recast Medical, Recast Adjustm ent Div ested Adjustm ents Rev enue Adv anced Surgical Orthopaedics and Portable Medical $ 243,385 $ 1 7 5,1 58 $ - $ - $ - $ 41 8,543 C
Slide 16: Pro Forma Revenue Q1 2016
Pro Forma Revenue* Q1 2016 Historical Nuv ectra Com bined Pro Product Line Greatbatch Rev enues Div ested Form a Rev enue Adv anced Surgical Orthopaedics and Portable Medical $ 91 ,329 $ - $ 91 ,329 Cardio and Vascular 1 33,650 - 1 33,650 Cardiac/Neuromodulation 97 ,07 5 (1 ,1 80) 95,895 Electrochem
Slide 17: Pro Forma Income Statement FY 2014
Pro Forma Income Statement FY 2014 Merger and Financing and Greatbatch, Inc. Lake Region Related Related Greatbatch, Inc. Nuvectra Post Spin-Off Greatbatch, Inc. Adjusted LRM Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma (in thousands, except per share data) Historical Historical Reclassificatio
Slide 18: Pro Forma Income Statement Q1 2015
Pro Forma Income Statement Q1 2015 Merger and Financing and Greatbatch, Inc. Lake Region Related Related Greatbatch, Inc. Nuvectra Post Spin-Off Greatbatch, Inc. Adjusted LRM Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma (in thousands, except per share data) Historical Historical Reclassificatio
Slide 19: Pro Forma Income Statement Q2 2015
Pro Forma Income Statement Q2 2015 Merger and Financing and Greatbatch, Inc. Lake Region Related Related Greatbatch, Inc. Nuvectra Post Spin-Off Greatbatch, Inc. Adjusted LRM Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma (in thousands, except per share data) Historical Historical Reclassificatio
Slide 20: Pro Forma Income Statement Q3 2015
Pro Forma Income Statement Q3 2015 Merger and Financing and Greatbatch, Inc. Lake Region Related Related Greatbatch, Inc. Nuvectra Post Spin-Off Greatbatch, Inc. Adjusted LRM Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma (in thousands, except per share data) Historical Historical Reclassificatio
Slide 21: Pro Forma Income Statement Q4 2015
Pro Forma Income Statement Q4 2015 Merger and Financing and Greatbatch, Inc. Lake Region Related Related Greatbatch, Inc. Nuvectra Post Spin-Off Greatbatch, Inc. Adjusted Historical- LRM Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma (in thousands, except per share data) Historical October 2015 (
Slide 22: Pro Forma Income Statement FY 2015
Pro Forma Income Statement FY 2015 Merger and Financing and Greatbatch, Inc. Lake Region Related Related Greatbatch, Inc. Nuvectra Post Spin-Off Greatbatch, Inc. Adjusted LRM Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma (in thousands, except per share data) Historical Historical Reclassificatio
Slide 23: Pro Forma Income Statement Q1 2016
Pro Forma Income Statement Q1 2016 Nuvectra Greatbatch, Inc. Post Historical Pro Forma Spin-Off (in thousands, except per share data) Greatbatch Adjustments (1) Pro Forma Combined A B A+B Sales $ 332,238 $ (1,180) $ 331,058 Cost of sales 240,770 (526) 240,244 Gross profit (loss) 91,468 (654) 90,814
Slide 24: Combined EBITDA, As Adjusted FY 2014
Combined EBITDA, As Adjusted FY 2014 Lake Region Pro Forma Combined Pro Greatbatch, Inc. Medical (1) Adjustment Nuvectra Forma Net income (loss) $ 55,458 $ (46,330) $ (45,129) $ 13,939 $ (22,062) Interest expense 4,252 63,096 40,676 - 108,024 Provision for income taxes 21,121 (38,882) (23,192) 7,505
Slide 25: Combined EBITDA, As Adjusted Q1 2015
Combined EBITDA, As Adjusted Q1 2015 Lake Region Pro Forma Combined Pro Greatbatch, Inc. Medical (1) Adjustment Nuvectra Forma Net income (loss) $ 8,008 $ 3,039 $ (10,081) $ 3,583 $ 4,549 Interest expense 1,120 14,721 11,012 - 26,853 Provision for income taxes 1,812 1,869 (5,255) 1,930 356 Depreciat
Slide 26: Combined EBITDA, As Adjusted Q2 2015
Combined EBITDA, As Adjusted Q2 2015 Lake Region Pro Forma Combined Pro Greatbatch, Inc. Medical (1) Adjustment Nuvectra Forma Net income (loss) $ 9,283 $ 5,426 $ (10,000) $ 4,016 $ 8,725 Interest expense 1,206 14,943 10,638 - 26,787 Provision for income taxes 2,652 (326) (5,201) 2,162 (713) Depreci
Slide 27: Combined EBITDA, As Adjusted Q3 2015
Combined EBITDA, As Adjusted Q3 2015 Lake Region Pro Forma Combined Pro Greatbatch, Inc. Medical (1) Adjustment Nuvectra Forma Net income (loss) $ 22 $ 754 $ (9,991) $ 4,572 $ (4,643) Interest expense 5,825 14,914 10,767 - 31,506 Provision for income taxes (16) 1,518 (5,204) 2,462 (1,240) Depreciati
Slide 28: Combined EBITDA, As Adjusted Q4 2015
Combined EBITDA, As Adjusted Q4 2015 Lake Region Medical Pro Forma Greatbatch, Inc. October 2015 (1) Adjustment Nuvectra Combined Pro Forma Net income (loss) $ (24,907) $ (23,914) $ (2,367) $ 3,699 $ (47,489) Interest expense 25,362 13,429 1,785 - 40,576 Provision for income taxes (12,554) (11,462)
Slide 29: Combined EBITDA, As Adjusted FY 2015
Combined EBITDA, As Adjusted FY 2015 Lake Region Pro Forma Combined Pro Greatbatch, Inc. Medical (1) Adjustment Nuvectra Forma Net income (loss) $ (7,594) $ (14,695) $ (32,439) $ 15,870 $ (38,858) Interest expense 33,513 58,007 34,202 - 125,722 Provision for income taxes (8,106) (8,401) (16,864) 8,5
Slide 30: Combined EBITDA, As Adjusted Q1 2016
Combined EBITDA, As Adjusted Q1 2016 Combined Pro Greatbatch, Inc. Nuvectra Forma Net income (loss) $ (12,660) $ 3,375 $ (9,285) Interest expense 27,617 - 27,617 Provision for income taxes (102) 1,818 1,716 Depreciation and amortization 22,413 (270) 22,143 Reported EBITDA 37,268 4,923 42,191 Reconci
Slide 31: Combined EPS, As Adjusted FY 2014
Combined EPS, As Adjusted FY 2014 Greatbatch, Lake Region Pro Forma Combined Net Inc. Medical Adjustment Nuvectra Income Per Share (2) Net income as reported $ 55,458 $ (46,330) $ (45,129) $ 13,939 $ (22,062) $ (0.71) Adjustments: Inventory stepup amortization (COS) 195 4,234 15,548 - 19,977 0.64 IP
Slide 32: Combined EPS, As Adjusted Q1 2015
Combined EPS, As Adjusted Q1 2015 Greatbatch, Lake Region Pro Forma Combined Net Inc. Medical Adjustment Nuvectra Income Per Share (2) Net income as reported $ 8,008 $ 3,039 $ (10,081) $ 3,583 $ 4,549 $ 0.15 Adjustments: IP related litigation 455 - - - 455 0.01 Amortization of intangibles 2,366 3,84
Slide 33: Combined EPS, As Adjusted Q2 2015
Combined EPS, As Adjusted Q2 2015 Greatbatch, Lake Region Pro Forma Combined Net Inc Medical Adjustment Nuvectra Income Per Share (2) Net income as reported $ 9,283 $ 5,426 $ (10,000) $ 4,016 $ 8,725 $ 0.28 Adjustments: IP related litigation 948 - - - 948 0.03 Amortization of intangibles 2,359 3,641
Slide 34: Combined EPS, As Adjusted Q3 2015
Combined EPS, As Adjusted Q3 2015 Greatbatch, Lake Region Pro Forma Combined Net Inc. Medical Adjustment Nuvectra Income Per Share (2) Net income as reported $ 22 $ 754 $ (9,991) $ 4,572 $ (4,643) $ (0.15) Adjustments: IP related litigation 733 - - - 733 0.02 Amortization of intangibles 2,271 3,688
Slide 35: Combined EPS, As Adjusted Q4 2015
Combined EPS, As Adjusted Q4 2015 Lake Region Greatbatch, Medical October Pro Forma Combined Net Inc. 2015 (1) Adjustment Nuvectra Income Per Share (3) Net income as reported $ (24,907) $ (23,914) $ (2,367) $ 3,699 $ (47,489) $ (1.49) Adjustments: IP related litigation 735 - - - 735 0.02 Inventory s
Slide 36: Combined EPS, As Adjusted FY 2015
Combined EPS, As Adjusted FY 2015 Greatbatch, Lake Region Pro Forma Combined Net Inc. Medical Adjustment Nuvectra Income Per Share (2) Net income as reported $ (7,594) $ (14,695) $ (32,439) $ 15,870 $ (38,858) $ (1.23) Adjustments: IP related litigation 2,871 - - - 2,871 0.09 Inventory step-up amort
Slide 37: Combined EPS, As Adjusted Q1 2016
Combined EPS, As Adjusted Q1 2016 Historical Combined Net Greatbatch Nuvectra Income Per Share (2) Net income as reported $ (12,660) $ 3,375 $ (9,285) $ (0.30) Adjustments: IP related litigation 1,240 - 1,240 0.04 Inventory step-up amortization - - - - Amortization of intangibles 6,691 (34) 6,657 0.