Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Integer Holdings Corp | c14602e8vk.htm |
Exhibit 99.1
| 1 |
| Tom Mazza Senior Vice president Chief Financial officer 2 |
| 3 Medical Device Evolution |
| Financial impact on greatbatch Designed to raise growth and profitability profile Driving sales through OEM partners Improved gross and adjusted operating income margins Sale of distribution rights and/or license fees Evolving profitability in 2011 and growing in out-years Cardiovascular product contribution starts in 2011 Algostim commercialization starts in 2014 Continue funding medical device strategy from cash flows R&D maintained at 8.5% - 9.0% of revenues |
| Medical device strategy drives improved revenue growth (CHART) |
| (CHART) Device R&D and REVENUE Approx. $25mm Core Business R&D $4 $20 $13 $10 $35 $20 $25 $10 $20 $65 $10 R&D Investment in New Device Projects ($mm) |
| R&D and Adjusted operating income trends (CHART) |
| Free cash flow & debt reduction (CHART) (CHART) |
| GUIDANCE - FISCAL 2011 Total revenue: $540 mm - $560 mm CRM & Neuromodulation: Flat Vascular Access: 10% - 20% Orthopaedic: 2% - 10% Electrochem: 2% - 5% Adjusted operating margin: 12% -13%(1) Adjusted diluted EPS: $1.55 - $1.65(2) (1) Excludes $8 - $11 million of non-recurring, unusual or infrequently occurring items such as consolidation and integration charges, certain R&D expenditures, asset disposition and write-down charges. (2) Excludes after-tax impact of adjustments in (1), $8.5 million ($5.5 million, net) of non-cash convertible debt interest expense, and approximately $4.5 million ($2.9 million, net) investment gain. Assumes effective tax rate of approximately 35% and approximately 24 million average diluted shares outstanding. |
| LONG-TERM objectives Revenue growth: 2% core +5% over core growth from new products Higher gross margins R&D: 8.5% - 9.0% of revenues +50 to 100 bps/year of adjusted operating margin improvement Mid-teens adjusted operating income margin on trajectory towards 20% |
| Thomas Hook President & CEO 11 |
| NEAR-TERM Incremental revenues from new Cardiovascular products Announcements about new Cardiovascular approvals and partnering agreements Conduct Algostim product evaluations & testing LONGER-TERM Achievement of major development & commercial milestones Announcements on additional innovations and Newco creation Maturation of strategic investments What to expect 12 |
| Review of QiG milestones Review of QiG milestones 13 |
| KEY TAKEAWAYS A natural evolution of our capabilities Founded on a disciplined, diversified portfolio approach Greatbatch has been executing on this strategy for three years Solidifies & deepens our partnerships with current customers Funded internally from strong cash flow generation Designed to raise the growth & profitability profile of the company 14 |
| 15 |