1 FIRST QUARTER 2011 EARNINGS CALL April 28 2011 April 28, 2011
FORWARD-LOOKING STATEMENTS Some of the statements made in the presentation whether written or 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 risks and uncertainties. These statements can be identified by terminology such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are based on the company’s current expectations. The company’s actual results could differ materially from those stated or implied in such forward looking statements those stated or implied in such forward-looking statements. The The company assumes no obligations to update forward-looking information, including information in this presentation, to reflect changed assumptions changed assumptions, the occurrence of unanticipated events or the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects. 2
EARNINGS CALL PARTICIPANTS › Thomas J Hook › Thomas J. Hook • President & CEO › Thomas J. Mazza • Senior Vice President & CFO › Marco F. Benedetti • Corporate Controller & Treasurer C t C t ll & T 3
AGENDA › First Quarter 2011 Review – Tom Hook › First Quarter 2011 Review – Tom Hook • Financial Highlights • Strategic Initiatives Update g p › First Quarter 2011 Financial Results - Tom Mazza › Question & Answer 4
FIRST QUARTER 2011 FINANCIAL HIGHLIGHTS › Record Sales of $148 8 Million › Record Sales of $148.8 Million • 13% increase over the prior year • Double-digit Vascular Access, Orthopaedic and g , p Electrochem growth • First sales of medical devices developed by Greatbatch › Operating Results • 25% increase in adjusted operating income • 25% increase in adjusted operating income • Driven by higher sales and gross profit • Continued RD&E investment Continued RD&E investment 5
STRATEGIC INITIATIVES UPDATE › Grow & Diversify Revenue › Grow & Diversify Revenue • Diversified revenue offsetting slower CRM growth • Investments in Orthopaedics and medical device strategy starting to provide returns › Drive Operating Performance D i O ti P f • Adjusted operating income 12.6% of sales • Lean initiatives offset pricing concessions • Lean initiatives offset pricing concessions 6
STRATEGIC INITIATIVES UPDATE › Deliver Innovative Solutions › Deliver Innovative Solutions • First sales of medical devices developed by Greatbatch • Design verification testing started on neuromodulation platform • CE Mark received on bi-directional guiding sheath (previous FDA 510(k) clearance in November 2010) (previous FDA 510(k) clearance in November 2010) • CE Mark received on transradial access introducer • Customer cost reimbursements received on two Customer cost reimbursements received on two medical device projects • Gain from sale of IntElect Medical 7
FIRST QUARTER 2011 SALES › Stable CRM & Neuromodulation revenue › Energy customers rebuilt depleted › 28% Vascular Access growth › 28% Vascular Access growth inventory levels inventory levels • Customer inventory reduction › Environmental pipeline pulls earlier than programs complete anticipated › 34% Orthopaedics growth › Higher oil price not expected to impact • Moderate market growth M d t k t th revenue unless sustained for longer • Customer inventory builds & product periods of time launches › Portable Medical growth dependent on • Expanded capabilities generating customer regulatory qualifications g y q new business b i 8
9 FIRST QUARTER 2011 FINANCIAL RESULTS
10 10 APPENDIX
11 11 GAAP RECONCILIATION
12 12 GAAP RECONCILIATION
CONTACT INFORMATION M Marco F. Benedetti F B d tti Corporate Controller & Treasurer G Greatbatch tb t h 10000 Wehrle Drive Clarence, NY 14031 T l Tel 716-759-5856 716 759 5856 mbenedetti@greatbatch.com www.greatbatch.com 13 13
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