EX-99.2 3 exh_992.htm EXHIBIT 99.2

Exhibit 99.2

 

 

ITGR: JPM Conference / January 10, 2024 / Page 1 42 nd Annual JP Morgan Healthcare Conference January 10, 2024

 

 

ITGR: JPM Conference / January 10, 2024 / Page 2 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 data contained herein reflect the consolid ated results of the Company for the periods indicated. No representation is made that the information in this presentation is comple te. For additional financial and business - related information, as well as information regarding business and product line trends, see th e Company’s most recent Annual Report on Form 10 - K and Quarterly Reports on Form 10 - Q filed with the U.S. Securities and Exchange Commission (the “SEC”), as well other reports filed with the SEC from time - to - time. Such reports are or will be availab le in the investor relations section of our corporate website ( investor.integer.net ) and the SEC’s website ( www.sec.gov ). Non - GAAP Financial Measures . This presentation includes financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as well as other financial measures referred to as non - GAAP. These non - GAAP financial measures are not calculated in accordance with GAAP and are not meant to be considered in isolation from or as a substitute for the information prepared in accordance with GAAP. Forward Looking Statements. Some of the statements contained in this 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 the Securiti es Exchange Act of 1934, as amended, including statements relating to future sales, expenses, and profitability; future developm ent and expected growth of our business and industry; our ability to execute our business model and our business strategy, including completion and integration of current or future acquisition targets; having available sufficient cash and borrowing capacity to meet working capital, debt service and capital expenditure requirements for the next twelve months; projected capital spending; an d o ther events, conditions or developments that will or may occur in the future. You can identify forward - looking statements by terminol ogy such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “po tential,” “projects,” “sustain,” or “continue” or variations or the negative of these terms or other comparable terminology. These stat eme nts are based on the Company’s current expectations and speak only as of date of this presentation. The Company’s actual results could differ materially from those stated or implied by such forward - looking statements. Except as required by law, the Company assum es no obligation to update forward - looking information, including information in this presentation, to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects or otherwise.

 

 

ITGR: JPM Conference / January 10, 2024 / Page 3 Integer is one of the largest medical device outsource manufacturers in the world 17 mfg. sites & 9 R&D centers worldwide 500+ R&D Associates ~ 7 0% of sales under LTA ~ 700 patents 11,000 + associates Our vision is to enhance the lives of patients worldwide by being our customers’ partner of choice for innovative technologies and services Integer Snapshot ~$1.6 Billion Medical Sales (97%) % Sales by End Markets ( 1 ) Non - Medical (3%) Portable Medical & AS&O 5 2 % 39 % Cardio & CRM & Vascular Neuromod 6 % 3% Electrochem (1) End market sales based on 202 3 sales 2023 Sales Outlook at Midpoint Differentiated Global Footprint

 

 

ITGR: JPM Conference / January 10, 2024 / Page 4 Integer Investment Thesis Resilient Business Model x Sustainable mid - single - digit growth industry x Breadth of product portfolio x Proprietary technology, long development cycle, high switching costs & regulatory x ~70% sales under multi - year agreements x Favorable outsourcing trends x World - class research & development capabilities x Leadership capability: – Selection, development, evaluation, succession x Performance excellence: – Engagement, assessment, organization effectiveness x Diversity & Inclusion x Track record of delivering sustainable profitable growth x Strong cash generation x Disciplined capital allocation Compelling Strategy for Growth Performance Culture Financial Strength • Sales growth 200 basis points above market • Operating profit 2x sales growth rate • Debt leverage 2.5x – 3.5x 1 2 3 1 Strategy Financial Objectives

 

 

ITGR: JPM Conference / January 10, 2024 / Page 5 Integer’s Strategy Journey 2017 2018 2019 2020 2021 2022 Portfolio Strategy Launched Divested AS&O Additional Operational Strategies Launched Manufacturing Excellence Launched Growth Teams Formed Acquisitions: Strategy Developed Executing strategy to deliver sustained outperformance Product Line Strategies Launched Margin Expansio n Capability & Capacity Expansion  Initiated Partial Portable Medical Exit Portfolio Strategy Operational Strategy Product Line Strategies Portfolio Strategy Galway Dominican Republic New Ross 2023 COVID Impact and Macro Challenges Margin Expansio n

 

 

ITGR: JPM Conference / January 10, 2024 / Page 6 Product Development 2 – 3 years Clinical / Regulatory 0.5 – 1 year Market Intro. ~1 year Begin Manufacturing Ramp Integer is uniquely positioned to serve customers and generate revenue across the entire development cycle New 510k Products (Class II) Developed w/ Customers Product Development 3 – 5 years Clinical / Regulatory 1 – 3 years Market Intro. ~1 year Begin Manufacturing Ramp Process Dev 1 – 2 years Reg 0 – 6 months Begin Manufacturing Ramp Existing Product Transfers New Revenue Generation Cycle Times 1 – 2+ Years 3 – 5+ Years New PMA Products (Class III) Developed w/ Customers Time to Manufacturing Ramp 5 – 9+ Years Integer Revenue Profile Across Cycle Development  Clinical  Manufacturing Ramp

 

 

ITGR: JPM Conference / January 10, 2024 / Page 7 C&V Targeted Market Strategy to Drive Sustained Growth Technology Maturity Low High Interventional Cardiology Renal Denervation Pulsed Field Ablation Structural Heart Electro - physiology Neurovascular Peripheral Vascular Integer Investment Focus Growth Curve Heart Pumps Structural Heart $11.6 billion 2024 Market, 14% ’24 – ’28E CAGR Transcatheter Delivery Systems & Implants Electrophysiology $ 8.0 billion 2024 Market, 7% ’24 – ’28E CAGR Ablation Catheters Advanced Diagnostics Neurovascular $ 3.7 billion 2024 Market, 8 % ’24 – ‘28E CAGR Aspiration Catheters Thrombectomy Devices Target Growth Markets

 

 

ITGR: JPM Conference / January 10, 2024 / Page 8 Integer Investment Focus Pain Mgmt. (SCS) Cochlear Epilepsy Sleep Apnea Pain Mgmt. (Emerging) Parkinson's Incontinence Neuromodulation Single - Chamber Leadless CRM Ventricular Assist Cardiac Monitoring Dual - Chamber Leadless CRM CRM Conventional CRM Technology Maturity Low High Growth Curve Traditional Pacing Leadless Pacemaker & ICM ​ $1.6 billion 2022 Market 13% ’24 – ’28E CAGR ​ Leadless Pacemakers Neuromodulation ​ $7.9 billion 2022 Market 9% ’24 – ’28E CAGR Implantable Leads Implantable Pulse Generators Target Growth Markets Implantable Cardiac Monitors CRM&N Targeted Market Strategy to Drive Sustained Growth

 

 

ITGR: JPM Conference / January 10, 2024 / Page 9 Growth Starts with Product Development 3 – 5+ Years Strategy delivering mix shift to high - growth markets Product development sales +230% since strategy launch Emerging / Growth Mature 2017 202 3 2021 Development Sales Strategy focused on being designed into our customers’ products in high growth markets 2017 2021 2023 ~20% ~20% ~ 8 0% ~2 8 % ~ 5 0% ~ 5 0%

 

 

ITGR: JPM Conference / January 10, 2024 / Page 10 Capacity & Capability to Continue Acquisition Strategy $250 - $300 million of annual acquisition capacity … maintaining 2.5x - 3.5x leverage Annual Acquisition Capacity $250 - $300 Organic growth and acquired EBITDA Annual Free Cash Flow Funding Sources Acquisition Criteria + ($ in millions) Differentiated Capabilities Growth Market Focus High Medical Concentration Accretive Margin Profile Revenue Growth Scalable Team & Infrastructure

 

 

ITGR: JPM Conference / January 10, 2024 / Page 11 Executing Targeted Inorganic Growth Strategy Four Acquisitions in last 25 Months Generating ~$170 million of annualized sales with accretive margins Jan 2024 Oct 2023 Apr 2022 Dec 2021 ▪ Leadless pacing ▪ Neuromodulation ▪ Heart pumps ▪ Electrophysiology ▪ Structural heart ▪ Peripheral vascular ▪ Aspiration catheters ▪ Thrombectomy delivery catheters ▪ Steerable microcatheters ▪ Balloon guide catheters ▪ Radial access catheters ▪ Structural heart ▪ Neurovascular ▪ Peripheral vascular ▪ Endovascular ▪ Electrophysiology ▪ Neuromodulation ▪ Peripheral vascular ▪ Structural heart

 

 

ITGR: JPM Conference / January 10, 2024 / Page 12 , a Leader in Precision Micro Machining • Stock purchase closed on January 5, 2024 • ~250 associates located in Quakertown, Pennsylvania • Estimated 2023 sales of ~$42 million and 2023 adjusted EBITDA (1) of ~$11 million Financials • ~$140 million purchase price plus additional consideration contingent on achieving specific revenue growth through 2025, offset by ~$15 million NPV cash tax benefit • Anticipate staying within 2.5x – 3.5x leverage target • Expect accretive sales growth and adjusted EBITDA margin • Brings differentiated complex machining and manufacturing capabilities as well as proprietary technologies • Revenue concentrated in high growth structural heart, heart pump, electrophysiology, leadless pacing, and neuromodulation products • Long standing relationships with the leading MedTech OEMs as well as emerging innovators Transaction Profile Strategic Fit (1) Adjusted EBITDA is a non - GAAP financial measure; refer to “Non - GAAP Financial Measures” on Page 17 of this presentation

 

 

ITGR: JPM Conference / January 10, 2024 / Page 13 Brings Differentiated Expertise and Capabilities Areas of Focus CRM & Neuromodulation: x Leadless pacing x Ventricular assist x Deep brain stimulation x Pain management x Traditional pacing Cardio & Vascular: x Heart pumps x Electrophysiology (incl. PFA) x Structural heart x Peripheral vascular x Interventional cardiology

 

 

ITGR: JPM Conference / January 10, 2024 / Page 14 Executing Organic and Inorganic Sales Growth Strategy … … to deliver high single digit / low double - digit sales growth 2016 2019 13% 15% 2022 2023 Future Integer Sales Growth at Market Rate Sustained Above Market Growth

 

 

ITGR: JPM Conference / January 10, 2024 / Page 15 Integer Investment Thesis Resilient Business Model x Sustainable mid - single - digit growth industry x Breadth of product portfolio x Proprietary technology, long development cycle, high switching costs & regulatory x ~70% sales under multi - year agreements x Favorable outsourcing trends x World - class research & development capabilities x Leadership capability: – Selection, development, evaluation, succession x Performance excellence: – Engagement, assessment, organization effectiveness x Diversity & Inclusion x Track record of delivering sustainable profitable growth x Strong cash generation x Disciplined capital allocation Compelling Strategy for Growth Performance Culture Financial Strength • Sales growth 200 basis points above market • Operating profit 2x sales growth rate • Debt leverage 2.5x – 3.5x 1 2 3 1 Strategy Financial Objectives

 

 

ITGR: JPM Conference / January 10, 2024 / Page 16 Questions?

 

 

ITGR: JPM Conference / January 10, 2024 / Page 17 Non - GAAP Financial Measures This presentation may contain the non - GAAP financial measures defined in the table below. A GAAP reconciliation of Adjusted EBIT DA to anticipated net income has not been included because Pulse Technologies has not yet completed its financial closing procedures for the three months and fis cal year ended December 31, 2023 and such reconciliation could not be produced without unreasonable effort. Non - GAAP Financial Measure Definitions for Pulse Technologies: Adjusted EBITDA is defined as net income adjusted for the following items: interest expense, depreciation and amortization ex pen se, as well as items affecting comparability, including adjustments to eliminate expenses associated with executive compensation costs and above m ark et lease expense, and add certain expenses to align with Integer’s accounting policies. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)