Historical Pro Forma Information...•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

Greatbatch Confidential. Not for Distribution. 1

Historical Pro Forma Information2014 & 2015 Total Year

Four Quarters of 2015

First Quarter of 2016


Non-GAAP Financial MeasuresThe 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 information to investors and that these measures may assist investors in evaluating the Company’s operations period over period. Investors should consider these non-GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP.


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, which is subject to change, and could differ materially from the final purchase price allocation.

• Pro forma financial statements exclude the results of QiG Group (Nuvectra), which was spun-off on March 14, 2016.

• The 2014 pro forma financial statements were adjusted to include the full year impact of Accellent’s Lake Region Medical acquisition in March 2014.

• Pro forma net income and Adjusted EPS were computed using a 32.4% effective tax rate for Lake Region merger and related adjustments and 35% for financing and Nuvectra adjustments. These rates were computed by applying the statutory tax rates of the relevant jurisdictions to the estimated preliminary pro forma adjustments for those jurisdictions. These rates do not reflect our effective tax rate, which include other items and may be significantly different than the rates assumed for purposes of preparing the pro forma financial statements for a variety of factors.


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 statements will not agree to the 8-K/A pro forma financial statements filed by the Company in connection with the Lake Region Medical acquisition as those statements do not adjust for the spin-off of Nuvectra or the results of Lake Region Medical prior to being acquired in March 2014 by Accellent.

• During periods of net income, weighted average shares include the dilutive impact of outstanding equity awards for purposes of EPS calculations. During periods of net loss, weighted average shares do not include the dilutive impact of outstanding equity awards as they are antidilutive to the EPS calculations.


Product Mapping: Prior vs New ViewGreatbatch Medical Lake Region Medical New Greatbatch, Inc.

Advanced Surgical

Cardio and Vascular

Elimination of Intersegment Sales

Advanced Surgical, Orthopaedics, and

Portable Medical

Cardio and Vascular

Cardiac/Neuromodulation

Electrochem


Orthopaedic

Portable Medical

Vascular

Cardiac/Neuromodulation

Energy, Military, Environmental

QiG



Greatbatch Medical Revenue-Recast*

*Product line sales have been recast to reflect the reclassification of Greatbatch, Inc. and Lake Region net sales from the historical product lines to the product line associated with those revenues that will be utilized for future revenue reporting. As a result of the Lake Region Medical acquisition and Spin-off of Nuvectra, we are reevaluating our operating and reporting segments, which may or may not differ from the product line presentation shown above.

Segm ent FY 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 FY 2015 Q1 2016

Advanced Surgical, Orthopaedics,

and Portable Medical

$ 439,558 $ 105,7 7 3 $ 108,830 $ 98,7 63 $ 105,17 7 $ 418,543 $ 91 ,329

Cardio and Vascular 563,852 138,084 144,7 10 146,853 132,616 562,263 133,650

Cardiac/Neuromodulation 395,394 98,866 109,157 93,849 110,890 412,7 62 95,895

Electrochem 81 ,7 57 17 ,7 10 16,545 11 ,97 7 13,217 59,449 11 ,67 2

Elimination of intersegment sales (11 ,613) (2,566) (2,325) (3,022) (2,266) (10,17 9) (1 ,488)

T otal Net Sales $ 1 ,468,948 $ 357 ,867 $ 37 6,917 $ 348,420 $ 359,634 $ 1 ,442,838 $331,058


(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 profit 378,368 98,207 106,447 98,347 77,257 380,258 90,814

Operating expenses:

Selling, general and administrative expenses 173,657 44,510 46,770 41,727 38,117 171,124 39,975

Research, development and engineering costs, net 43,119 11,751 11,390 12,883 10,145 46,169 14,476

Other operating expenses, net 59,965 11,834 13,190 19,152 40,528 84,704 20,036

Total operating expenses 276,741 68,095 71,350 73,762 88,790 301,997 74,487

Operating income 101,627 30,112 35,097 24,585 (11,533) 78,261 16,327

Interest expense 108,024 26,853 26,787 31,506 40,576 125,722 27,617

(Gain) loss on cost and equity method investments (4,370) (498) (42) (4,579) 1,769 (3,350) (1,301)

Loss on debt extinguishment 53,421 - - - - - -

Other (income) expense, net 62 (1,148) 340 3,541 16,839 19,572 (2,420)

Income (loss) before provision (benefit) for income taxes (55,510) 4,905 8,012 (5,883) (70,717) (63,683) (7,569)

Provision (benefit) for income taxes (33,448) 356 (713) (1,240) (23,228) (24,825) 1,716

Net Income (loss) (22,062)$ 4,549$ 8,725$ (4,643)$ (47,489)$ (38,858)$ (9,285)$

Earnings (loss) per share:

Basic (0.74)$ 0.15$ 0.29$ (0.15)$ (1.54)$ (1.27)$ (0.30)$

Diluted (0.74)$ 0.15$ 0.28$ (0.15)$ (1.54)$ (1.27)$ (0.30)$

Weighted average shares outstanding:

Basic 29,805 30,244 30,453 30,516 30,838 30,513 30,718

Diluted 29,805 31,259 31,353 30,516 30,838 30,513 30,718

Pro Forma Income Statement Summary by Period


Combined EBITDA, As AdjustedSummary 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 (713) (1,240) (23,228) (24,825) 1,716

Depreciation and amortization 95,649 25,619 25,624 24,970 23,133 99,346 22,143

Reported EBITDA 148,163 57,377 60,423 50,593 (7,008) 161,385 42,191

Reconciling items impacting EBITDA

Inventory stepup amortization 29,523 - - - 22,986 22,986 -

IP related litigation 2,502 700 1,459 1,127 1,131 4,417 1,907

Stock-based compensation 14,542 2,632 4,719 3,774 441 11,566 1,875

Impairment of intangible assets and goodwill 26,800 - - - - - -

Consolidation and optimization 17,030 9,204 10,272 9,047 6,288 34,811 6,649

Acquisition and integration 11,665 1,832 1,802 6,805 32,060 42,499 9,965

Asset dispositions, severance and other 4,470 798 1,116 3,300 2,180 7,394 3,422

Loss on debt extinguishment 53,421 - - - 18,864 18,864 -

Noncash loss (gain) on cost and equity method investments (1,190) (498) (42) (1,178) 1,993 275 (639)

Miscellaneous Other Adjustment - - - - - - -

EBITDA, as adjusted 306,926$ 72,045$ 79,749$ 73,468$ 78,935$ 304,197$ 65,370$


Combined EPS, As AdjustedSummary by Period

Combined

Net Income

Per

Share (2)

Combined

Net Income

Per

Share (2)

Combined

Net Income

Per

Share (2)

Combined

Net Income

Per

Share (2)

Combined

Net Income

Per

Share (2)

Combined

Net Income

Per

Share (2)

Combined

Net Income

Per

Share (2)

Net income (loss) as reported (22,062)$ (0.71)$ 4,549$ 0.15$ 8,725$ 0.28$ (4,643)$ (0.15)$ (47,489)$ (1.49)$ (38,858)$ (1.23)$ (9,285)$ (0.30)$

Adjustments:

Inventory stepup amortization (COS) 19,977 0.64 - - - - - - 15,605 0.49 15,605 0.50 - -

IP related litigation 1,626 0.05 455 0.01 948 0.03 733 0.02 735 0.02 2,871 0.09 1,240 0.04

Amortization of intangibles 28,040 0.90 8,211 0.26 8,204 0.26 8,115 0.26 7,225 0.23 31,755 1.01 6,657 0.21

Impairment of intangible assets and goodwill 18,117 0.58 - - - - - - - - - - - -

Consolidation and optimization (OOE) 10,516 0.34 6,930 0.22 7,865 0.25 6,934 0.22 5,127 0.16 26,856 0.85 5,314 0.17

Acquisition and integration (OOE) 7,945 0.26 1,240 0.04 1,222 0.04 5,929 0.19 23,612 0.74 32,003 1.02 6,511 0.21

Asset dispositions, severance and other (OOE) 3,711 0.12 548 0.02 720 0.02 2,557 0.08 1,796 0.06 5,621 0.18 3,509 0.11

Lake Region Medical transaction costs (interest) - - - - - - 3,112 0.10 9,054 0.28 12,166 0.39 - -

R&D tax credit - - 430 0.01 430 0.01 430 0.01 (1,290) (0.04) - - - -

Loss on debt extinguishment 34,724 1.12 - - - - - - 12,262 0.39 12,262 0.39 - -

Loss (gain) on cost and equity method investments, net (2,841) (0.09) (324) (0.01) (27) - (2,976) (0.09) 1,150 0.04 (2,177) (0.07) (846) (0.03) -

Adjusted net income and dilutive EPS 99,753$ 3.22$ 22,039$ 0.71$ 28,087$ 0.90$ 20,191$ 0.64$ 27,787$ 0.87$ 98,104$ 3.11$ 13,100$ 0.42$

Adjusted diluted weighted average shares (1)

31,015 31,259 31,353 31,481 31,805 31,504 31,253

(2)The per share data in this table has been rounded to the nearest $0.01 and therefore may not sum to the total.

Q1 2016

(1)During periods of Net Income (as adjusted for the above reconciling items), weighted average shares includes dilutive impact for purposes of Pro

Forma EPS calculation.

Q4 2015 YTD 2015YTD 2014 Q3 2015Q1 2015 Q2 2015


Pro Forma Revenue*FY 2014

Product LineGreatbatch,

Recast Lake Region

Medical, Recast Reclassification

Adjustment

Nuvectra Revenue Divested

Pro Forma Adjustments

Combined Pro Forma

Revenue

Advanced Surgical, Orthopaedics, and Portable Medical $216,339 $223,219 $ - $ - $ - $439,558

Cardio and Vascular 58,770 533,819 (68,169) - 39,432 563,852

Cardiac/Neuromodulation 330,921 - 68,169 (3,696) - 395,394

Electrochem 81,757 - - - - 81,757

Elimination of intersegment sales - (4,774) - - (6,839) (11,613)

Total Net Sales $687,787 $752,264 $ - $(3,696) $32,593 $1,468,948

*Product line sales have been recast to reflect the reclassification of Greatbatch, Inc. and Lake Region net sales from the historical product lines to the product line associated with those revenues that will be utilized for future revenue reporting. As a result of the Lake Region Medical acquisition and Spin-off of Nuvectra, we are reevaluating our operating and reporting segments which may or may not differ from the product line presentation shown above.


Pro Forma Revenue*Q1 2015


Recast Lake Region


Adjustment



Combined Pro Forma

Revenue

Advanced Surgical, Orthopaedics, and Portable Medical $ 52,638 $ 53,135 $ - $ - $ - $ 105,773

Cardio and Vascular 10,356 146,528 (18,800) - - 138,084

Cardiac/Neuromodulation 80,616 - 18,800 (550) - 98,866

Electrochem 17,710 - - - - 17,710


Total Net Sales $ 161,320 $ 198,278 $ - $ (550) $ (1,181) $ 357,867





Recast Lake Region


Adjustment



Combined Pro Forma

Revenue




Electrochem 16,545 - - - - 16,545


Total Net Sales $174,890 $204,292 $ - $(1,017) $(1,248) $376,917





Recast Lake Region


AdjustmentNuvectra Revenue

Divested Pro Forma

Adjustments

Combined Pro Forma

Revenue




Electrochem 11,977 - - - - 11,977


Total Net Sales $146,637 $204,577 $ - $(1,141) $(1,653) $348,420





Product Line

Greatbatch,

Recast

Lake Region

Medical, Recast

October 2015 (1)

Reclassification

Adjustm ent

Nuvectra

Revenues

Divested

Pro Form a

Adjustm ents

Com bined Pro

Form a

Revenue

Advanced Surgical

Orthopaedics and Portable

Medical 92,590$ 12,587$ -$ -$ -$ 105,17 7$

Cardio and Vascular 105,890 31 ,051 (4,325) - - 132,616

Cardiac/Neuromodulation 107 ,614 - 4,325 (1 ,049) - 110,890

Electrochem 13,217 - - - - 13,217

Elimination of intersegment

sales (1 ,7 44) (280) - - (242) (2,266)

T otal Net Sales 317 ,567$ 43,358$ -$ (1,049)$ (242)$ 359,634$

1 The following amounts represent one month (October 2015) of Lake Region Medical historical statements prior to completion of the merger and consolidation

with Greatbatch, Inc. The remaining two months during the fourth quarter are included as part of Greatbatch's results within "Greatbatch Recast" column.


Pro Forma Revenue*FY 2015


Product Line Greatbatch, Recast

Lake Region

Medical, Recast

Reclassification

Adjustm ent

Nuvectra

Revenues

Divested

Pro Form a

Adjustm ents

Com bined

Pro Form a

Revenue

Advanced Surgical


Medical 243,385$ 17 5,158$ -$ -$ -$ 418,543$

Cardio and Vascular 143,260 47 9,458 (60,455) - - 562,263

Cardiac/Neuromodulation 356,064 - 60,455 (3,7 57 ) - 412,7 62

Electrochem 59,449 - - - - 59,449


sales (1 ,7 44) (4,111) - - (4,324) (10,17 9)

T otal Net Sales 800,414$ 650,505$ -$ (3,7 57 )$ (4,324)$ 1,442,838$



*As a result of the Lake Region Medical acquisition and Spin-off of Nuvectra, we are reevaluating our operating and reporting segments which may or may not differ from the product line presentation shown above.

Product Line

Historical

Greatbatch

Nuvectra

Revenues Divested

Com bined Pro

Form a Revenue

Advanced Surgical


Medical 91,329$ -$ 91 ,329$

Cardio and Vascular 133,650 - 133,650

Cardiac/Neuromodulation 97 ,07 5 (1 ,180) 95,895

Electrochem 11,67 2 - 11 ,67 2


sales (1 ,488) - (1 ,488)

T otal Net Sales 332,238$ (1,180)$ 331,058$


(in thousands, except per share data)

Greatbatch, Inc.

Historical

Lake Region

Adjusted

Historical

LRM

Reclassifications (1)

Merger and

Related

Pro Forma

Adjustments (2)

Financing and

Related

Pro Forma

Adjustments (3)

Greatbatch, Inc.

Pro Forma

Combined

Nuvectra

Pro Forma

Adjustments (4)

Greatbatch, Inc.

Post Spin-Off

Pro Forma

Combined

A B C D E F=A+B+C+D+E G F+G

Sales 687,787$ 752,264$ -$ 32,593$ -$ 1,472,644$ (3,696)$ 1,468,948$

Cost of sales 456,389 573,616 (1,695) 64,039 - 1,092,349 (1,769) 1,090,580

Gross profit (loss) 231,398 178,648 1,695 (31,446) - 380,295 (1,927) 378,368

Operating expenses:

Selling, general and administrative expenses 90,602 82,676 (13,086) 20,169 - 180,361 (6,704) 173,657

Research, development and engineering costs, net 49,845 8,763 (4) 1,087 - 59,691 (16,572) 43,119

Other operating expenses, net 15,297 55,017 14,785 (25,039) - 60,060 (95) 59,965

Total operating expenses 155,744 146,456 1,695 (3,783) - 300,112 (23,371) 276,741

Operating income (loss) 75,654 32,192 - (27,663) - 80,183 21,444 101,627

Interest expense 4,252 63,096 - 56 40,620 108,024 - 108,024

Gain on cost and equity method investments (4,370) - - - - (4,370) - (4,370)

Loss on debt extinguishment - 53,421 - - - 53,421 - 53,421

Other (income) expense, net (807) 887 - (18) - 62 - 62

Income (loss) before provision (benefit) for income taxes 76,579 (85,212) - (27,701) (40,620) (76,954) 21,444 (55,510)

Provision (benefit) for income taxes 21,121 (38,882) - (8,975) (14,217) (40,953) 7,505 (33,448)

Net Income (loss) 55,458$ (46,330)$ -$ (18,726)$ (26,403)$ (36,001)$ 13,939$ (22,062)$


Basic 2.23$ (1.21)$ (0.74)$

Diluted 2.14$ (1.21)$ (0.74)$


Basic 24,825 4,980 29,805 29,805

Diluted 25,975 4,980 29,805 29,805

1

2

3

4

Certain reclassifications have been made to Lake Region Medical's historical statements to conform to Greatbatch, Inc's presentation. These adjustments reclassify certain items from Cost

of Sales, SG&A, and R&D to Other Operating Expenses.

These adjustments reflect preliminary pro forma adjustments as a result of the acquisition of Lake Region Medical including preliminary step-ups to inventory, PP&E, and intangible assets

and elimination of intercompany sales between Lake Region and Greatbatch. Additionally, amounts include the pro forma impact of the former Lake Region Medical acquired by Accellent in

March 2014.

Pro Forma adjustments related to refinancing debt agreements as a result of the acquisition of Lake Region Medical.

In presenting pro forma financial statements for all applicable periods, the Company excluded the balances associated with the spin-off of QiG Group (Nuvectra).

Pro Forma Income Statement FY 2014


Pro Forma Income Statement Q1 2015


Greatbatch, Inc.

Historical

Lake Region

Adjusted

Historical

LRM


Merger and

Related

Pro Forma

Adjustments (2)

Financing and

Related

Pro Forma

Adjustments (3)

Greatbatch, Inc.

Pro Forma

Combined

Nuvectra

Pro Forma

Adjustments (4)

Greatbatch, Inc.

Post Spin-Off

Pro Forma

Combined


Sales 161,320$ 198,278$ -$ (1,181)$ -$ 358,417$ (550)$ 357,867$

Cost of sales 108,922 149,165 (1,366) 3,321 - 260,042 (382) 259,660

Gross profit (loss) 52,398 49,113 1,366 (4,502) - 98,375 (168) 98,207

Operating expenses:


Research, development and engineering costs, net 12,545 2,238 - 7 - 14,790 (3,039) 11,751


Total operating expenses 43,009 29,579 1,366 (178) - 73,776 (5,681) 68,095


Interest expense 1,120 14,721 - - 11,012 26,853 - 26,853

Gain on cost and equity method investments (498) - - - - (498) - (498)

Other (income) expense, net (1,053) (95) - - - (1,148) - (1,148)

Income (loss) before provision (benefit) for income taxes 9,820 4,908 - (4,324) (11,012) (608) 5,513 4,905

Provision (benefit) for income taxes 1,812 1,869 - (1,401) (3,854) (1,574) 1,930 356

Net Income (loss) 8,008$ 3,039$ -$ (2,923)$ (7,158)$ 966$ 3,583$ 4,549$


Basic 0.32$ 0.03$ 0.15$

Diluted 0.31$ 0.03$ 0.15$


Basic 25,264 4,980 30,244 30,244

Diluted 26,219 5,040 31,259 31,259

1

2

3

4




and elimination of intercompany sales between Lake Region and Greatbatch.






Greatbatch, Inc.

Historical

Lake Region

Adjusted

Historical

LRM


Merger and

Related

Pro Forma

Adjustments (2)

Financing and

Related

Pro Forma

Adjustments (3)

Greatbatch, Inc.

Pro Forma

Combined

Nuvectra

Pro Forma

Adjustments (4)

Greatbatch, Inc.

Post Spin-Off

Pro Forma

Combined


Sales 174,890$ 204,292$ -$ (1,248)$ -$ 377,934$ (1,017)$ 376,917$

Cost of sales 116,939 152,518 (1,736) 3,200 - 270,921 (451) 270,470


Operating expenses:


Research, development and engineering costs, net 13,063 3,045 (73) 7 - 16,042 (4,652) 11,390


Total operating expenses 44,917 31,326 1,736 115 - 78,094 (6,744) 71,350



Gain on cost and equity method investments (42) - - - - (42) - (42)

Other (income) expense, net (65) 405 - - - 340 - 340

Income (loss) before provision (benefit) for income taxes 11,935 5,100 - (4,563) (10,638) 1,834 6,178 8,012

Provision (benefit) for income taxes 2,652 (326) - (1,478) (3,723) (2,875) 2,162 (713)

Net Income (loss) 9,283$ 5,426$ -$ (3,085)$ (6,915)$ 4,709$ 4,016$ 8,725$


Basic 0.36$ 0.15$ 0.29$

Diluted 0.35$ 0.15$ 0.28$


Basic 25,473 4,980 30,453 30,453

Diluted 26,313 5,040 31,353 31,353

1

2

3

4










Greatbatch, Inc.

Historical

Lake Region

Adjusted

Historical

LRM


Merger and

Related

Pro Forma

Adjustments (2)

Financing and

Related

Pro Forma

Adjustments (3)

Greatbatch, Inc.

Pro Forma

Combined

Nuvectra

Pro Forma

Adjustments (4)

Greatbatch, Inc.

Post Spin-Off

Pro Forma

Combined


Sales 146,637$ 204,577$ -$ (1,653)$ -$ 349,561$ (1,141)$ 348,420$

Cost of sales 94,991 154,757 (2,004) 2,737 - 250,481 (408) 250,073


Operating expenses:



Other operating expenses, net 13,844 6,697 3,869 (5,456) - 18,954 198 19,152





Other (income) expense, net (57) 3,598 - - - 3,541 - 3,541

Income (loss) before provision (benefit) for income taxes 6 2,272 - (4,428) (10,767) (12,917) 7,034 (5,883)

Provision (benefit) for income taxes (16) 1,518 - (1,435) (3,769) (3,702) 2,462 (1,240)

Net Income (loss) 22$ 754$ -$ (2,993)$ (6,998)$ (9,215)$ 4,572$ (4,643)$


Basic -$ (0.30)$ (0.15)$

Diluted -$ (0.30)$ (0.15)$


Basic 25,536 4,980 30,516 30,516

Diluted 26,441 4,980 30,516 30,516

1

2

3

4

Certain reclassifications have been made to Lake Region Medical's historical statements to conform to Greatbatch, Inc's presentation. These adjustments reclassify certain items from Cost of

Sales, SG&A, and R&D to Other Operating Expenses.







Greatbatch, Inc.

Historical

Lake Region

Adjusted Historical-

October 2015 (1)

LRM


Merger and

Related

Pro Forma

Adjustments (3)

Financing and

Related

Pro Forma

Adjustments (4)

Greatbatch, Inc.

Pro Forma

Combined

Nuvectra

Pro Forma

Adjustments (5)

Greatbatch, Inc.

Post Spin-Off

Pro Forma

Combined


Sales 317,567$ 43,358$ -$ (242)$ -$ 360,683$ (1,049)$ 359,634$

Cost of sales 244,427 37,123 234 1,242 - 283,026 (649) 282,377

Gross profit (loss) 73,140 6,235 (234) (1,484) - 77,657 (400) 77,257

Operating expenses:

Selling, general and administrative expenses 33,509 5,133 (5) 1,831 - 40,468 (2,351) 38,117

Research, development and engineering costs, net 13,088 743 - 2 - 13,833 (3,688) 10,145

Other operating expenses, net 37,015 5,325 (229) (1,531) - 40,580 (52) 40,528

Total operating expenses 83,612 11,201 (234) 302 - 94,881 (6,091) 88,790

Operating income (loss) (10,472) (4,966) - (1,786) - (17,224) 5,691 (11,533)


Loss on cost and equity method investments 1,769 - - - - 1,769 - 1,769

Other (income) expense, net (142) 16,981 - - - 16,839 - 16,839

Income (loss) before provision (benefit) for income taxes (37,461) (35,376) - (1,786) (1,785) (76,408) 5,691 (70,717)

Provision (benefit) for income taxes (12,554) (11,462) - (579) (625) (25,220) 1,992 (23,228)

Net Income (loss) (24,907)$ (23,914)$ -$ (1,207)$ (1,160)$ (51,188)$ 3,699$ (47,489)$


Basic (0.85)$ -$ -$ -$ -$ (1.66)$ -$ (1.54)$

Diluted (0.85)$ -$ -$ -$ -$ (1.66)$ -$ (1.54)$


Basic 29,178 - - 1,660 - 30,838 - 30,838

Diluted 29,178 - - 1,660 - 30,838 - 30,838

1

2

3

4

5

Certain reclassifications have been made to Lake Region Medical's historical statements to conform to Greatbatch, Inc's presentation. These adjustments reclassify certain items

from Cost of Sales, SG&A, and R&D to Other Operating Expenses.

These adjustments reflect preliminary pro forma adjustments as a result of the acquisition of Lake Region Medical including preliminary step-ups to inventory, PP&E, and intangible

assets and elimination of intercompany sales between Lake Region and Greatbatch.



The following amounts represent one month (October 2015) of Lake Region Medical historical statements prior to completion of the merger and consolidation with Greatbatch, Inc.

The remaining two months during the fourth quarter are included as part of Greatbatch's results within "Greatbatch, Inc Historcial" column.



Pro Forma Income Statement FY 2015


Greatbatch, Inc.

Historical

Lake Region

Adjusted

Historical

LRM


Merger and

Related

Pro Forma

Adjustments (2)

Financing and

Related

Pro Forma

Adjustments (3)

Greatbatch, Inc.

Pro Forma

Combined

Nuvectra

Pro Forma

Adjustments (4)

Greatbatch, Inc.

Post Spin-Off

Pro Forma

Combined


Sales 800,414$ 650,505$ -$ (4,324)$ -$ 1,446,595$ (3,757)$ 1,442,838$

Cost of sales 565,279 493,563 (4,872) 10,500 - 1,064,470 (1,890) 1,062,580

Gross profit (loss) 235,135 156,942 4,872 (14,824) - 382,125 (1,867) 380,258

Operating expenses:








Other (income) expense, net (1,317) 20,889 - - - 19,572 - 19,572

Income (loss) before provision (benefit) for income taxes (15,700) (23,096) - (15,101) (34,202) (88,099) 24,416 (63,683)

Provision (benefit) for income taxes (8,106) (8,401) - (4,893) (11,971) (33,371) 8,546 (24,825)

Net Income (loss) (7,594)$ (14,695)$ -$ (10,208)$ (22,231)$ (54,728)$ 15,870$ (38,858)$


Basic (0.29)$ (1.79)$ (1.27)$

Diluted (0.29)$ (1.79)$ (1.27)$


Basic 26,363 4,150 30,513 30,513

Diluted 26,363 4,150 30,513 30,513

1

2

3

4

Certain reclassifications have been made to Lake Region Medical's historical statements to conform to Greatbatch, Inc's presentation. These adjustments reclassify certain items from

Cost of Sales, SG&A, and R&D to Other Operating Expenses.

These adjustments reflect preliminary pro forma adjustments as a result of the acquisition of Lake Region Medical including preliminary step-ups to inventory, PP&E, and intangible

assets and elimination of intercompany sales between Lake Region and Greatbatch.





Historical

Greatbatch

Nuvectra

Pro Forma

Adjustments (1)

Greatbatch, Inc. Post

Spin-Off

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

Operating expenses:

Selling, general and administrative expenses 41,888 (1,913) 39,975

Research, development and engineering costs, net 17,306 (2,830) 14,476

Other operating expenses, net 21,140 (1,104) 20,036

Total operating expenses 80,334 (5,847) 74,487

Operating income (loss) 11,134 5,193 16,327

Interest expense 27,617 - 27,617

Gain on cost and equity method investments (1,301) - (1,301)

Other (income) expense, net (2,420) - (2,420)

Income (loss) before provision (benefit) for income taxes (12,762) 5,193 (7,569)

Provision (benefit) for income taxes (102) 1,818 1,716

Net Income (loss) (12,660)$ 3,375$ (9,285)$


Basic (0.41)$ (0.30)$

Diluted (0.41)$ (0.30)$


Basic 30,718 30,718

Diluted 30,718 30,718

1 In presenting pro forma financial statements for all applicable periods, the Company excluded the balances associated with the spin-off of QiG

Group (Nuvectra) on March 14, 2016.



Combined EBITDA, As AdjustedFY 2014

Greatbatch, Inc.

Lake Region

Medical (1)

Pro Forma

Adjustment Nuvectra

Combined Pro

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 (33,448)

Depreciation and amortization 37,197 50,803 8,710 (1,061) 95,649

Reported EBITDA 118,028 28,687 (18,935) 20,383 148,163


Inventory stepup amortization 260 6,263 23,000 - 29,523

IP related litigation 2,502 - - - 2,502

Stock-based compensation 12,893 1,649 - - 14,542

Impairment of intangible assets and goodwill - 26,800 - - 26,800

Consolidation and optimization 11,188 5,842 - - 17,030

Acquisition and integration 3 11,662 - 11,665

Asset dispositions, severance and other 4,106 459 - (95) 4,470

Loss on debt extinguishment - 53,421 - - 53,421

Noncash loss (gain) on cost and equity method

investments (1,190) - - - (1,190)

EBITDA, as adjusted 147,790$ 134,783$ 4,065$ 20,288$ 306,926$

1 Certain adjustments have been made to Lake Region Medical's historical statements to conform to

Greatbatch, Inc's presentation. These adjustments exclude certain items from adjusted EBITDA to conform

to Greatbatch, Inc's methodology.


Combined EBITDA, As AdjustedQ1 2015

Greatbatch, Inc.

Lake Region

Medical (1)

Pro Forma

Adjustment Nuvectra

Combined Pro

Forma

Net income (loss) 8,008$ 3,039$ (10,081)$ 3,583$ 4,549$


Provision for income taxes 1,812 1,869 (5,255) 1,930 356

Depreciation and amortization 9,178 12,270 4,324 (153) 25,619

Reported EBITDA 20,118 31,899 (0) 5,360 57,377


Inventory stepup amortization - - - - -

IP related litigation 700 - - - 700

Stock-based compensation 2,253 379 - - 2,632

Impairment of intangible assets and goodwill - - - - -

Consolidation and optimization 7,160 2,468 - (424) 9,204

Acquisition and integration 66 1,766 - - 1,832

Asset dispositions, severance and other 629 169 - - 798

Loss on debt extinguishment - - - - -


investments (498) - - - (498)

EBITDA, as adjusted 30,428$ 36,681$ (0)$ 4,936$ 72,045$


Greatbatch, Inc's presentation. These adjustments exclude certain items from adjusted EBITDA to conform to

Greatbatch, Inc's methodology.



Greatbatch, Inc.

Lake Region

Medical (1)

Pro Forma

Adjustment Nuvectra

Combined Pro

Forma

Net income (loss) 9,283$ 5,426$ (10,000)$ 4,016$ 8,725$


Provision for income taxes 2,652 (326) (5,201) 2,162 (713)


Reported EBITDA 22,157 32,233 0 6,033 60,423







Acquisition and integration 98 1,704 - - 1,802

Asset dispositions, severance and other 1,083 33 - - 1,116

Loss on debt extinguishment - - - -


investments (42) - - - (42)

EBITDA, as adjusted 35,043$ 38,707$ 0$ 5,999$ 79,749$


Greatbatch, Inc's presentation. These adjustments exclude certain items from adjusted EBITDA to conform

to Greatbatch, Inc's methodology.



Greatbatch, Inc.

Lake Region

Medical (1)

Pro Forma

Adjustment Nuvectra

Combined Pro

Forma

Net income (loss) 22$ 754$ (9,991)$ 4,572$ (4,643)$


Provision for income taxes (16) 1,518 (5,204) 2,462 (1,240)


Reported EBITDA 14,578 29,120 (0) 6,895 50,593




Stock-based compensation 3,027 747 - - 3,774


Consolidation and optimization 5,473 3,376 - 198 9,047

Acquisition and integration 5,202 1,603 - - 6,805


Loss on debt extinguishment - - - - -


investments (1,178) - - - (1,178)

EBITDA, as adjusted 31,398$ 34,977$ (0)$ 7,093$ 73,468$


Greatbatch, Inc's presentation. These adjustments exclude certain items from adjusted EBITDA to

conform to Greatbatch, Inc's methodology.



Greatbatch, Inc.

Lake Region Medical

October 2015 (1)

Pro Forma

Adjustment Nuvectra Combined Pro Forma

Net income (loss) (24,907)$ (23,914)$ (2,367)$ 3,699$ (47,489)$


Provision for income taxes (12,554) (11,462) (1,204) 1,992 (23,228)


Reported EBITDA 5,592 (18,141) - 5,541 (7,008)


Inventory stepup amortization 22,986 - - - 22,986


Stock-based compensation 288 153 - - 441


Consolidation and optimization 7,191 (851) - (52) 6,288





investments 1,993 - - - 1,993

EBITDA, as adjusted 69,005$ 4,441$ -$ 5,489$ 78,935$

1 Certain adjustments have been made to Lake Region Medical's historical statements to conform to Greatbatch, Inc's presentation.

These adjustments exclude certain items from adjusted EBITDA to conform to Greatbatch, Inc's methodology. The following

amounts represent one month (October 2015) of Lake Region Medical historical statements prior to completion of the merger and

consolidation with Greatbatch, Inc. The remaining two months during the fourth quarter are included as part of Greatbatch's

results within "Greatbatch, Inc." column.


Combined EBITDA, As AdjustedFY 2015

Greatbatch, Inc.

Lake Region

Medical (1)

Pro Forma

Adjustment Nuvectra

Combined Pro

Forma

Net income (loss) (7,594)$ (14,695)$ (32,439)$ 15,870$ (38,858)$


Provision for income taxes (8,106) (8,401) (16,864) 8,546 (24,825)


Reported EBITDA 62,445 75,111 - 23,829 161,385


Inventory stepup amortization 22,986 - - - 22,986









investments 275 - - - 275

EBITDA, as adjusted 165,874$ 114,806$ -$ 23,517$ 304,197$


Greatbatch, Inc's presentation. These adjustments exclude certain items from adjusted EBITDA to conform to

Greatbatch, Inc's methodology.



Greatbatch, Inc. Nuvectra

Combined Pro

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


IP related litigation 1,907 - 1,907

Stock-based compensation 2,029 (154) 1,875

Impairment of intangible assets and goodwill - - -

Consolidation and optimization 6,649 - 6,649

Acquisition and integration 9,965 - 9,965

Asset dispositions, severance and other 4,526 (1,104) 3,422

Loss on debt extinguishment - - -


investments (639) - (639)

EBITDA, as adjusted 61,705$ 3,665$ 65,370$


Combined EPS, As AdjustedFY 2014

Greatbatch,

Inc.

Lake Region

Medical

Pro Forma

Adjustment Nuvectra

Combined Net

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 related litigation 1,626 - - - 1,626 0.05

Amortization of intangibles 9,637 16,926 1,477 - 28,040 0.90

Impairment of intangible assets and goodwill - 18,117 - - 18,117 0.58

Consolidation and optimization (OOE) 6,567 3,949 - - 10,516 0.34

Acquisition and integration (OOE) 61 7,884 - - 7,945 0.26

Asset dispositions, severance and other (OOE) 3,463 310 - (62) 3,711 0.12

Loss on debt extinguishment - 34,724 - - 34,724 1.12

Loss (gain) on cost and equity method investments, net (2,841) - - - (2,841) (0.09)

Adjusted net income and dilutive EPS 74,166$ 39,814$ (28,104)$ 13,877$ 99,753$ 3.22$


25,975 5,040 31,015


(1)During periods of Net Income (as adjusted for the above reconciling items), weighted average shares includes dilutive impact for purposes of

Pro Forma EPS calculation.


Combined EPS, As AdjustedQ1 2015

Greatbatch,

Inc.

Lake Region

Medical

Pro Forma

Adjustment Nuvectra

Combined Net


Net income as reported 8,008$ 3,039$ (10,081)$ 3,583$ 4,549$ 0.15$

Adjustments:

IP related litigation 455 - - - 455 0.01


Consolidation and optimization (OOE) 5,538 1,668 - (276) 6,930 0.22


Asset dispositions, severance and other (OOE) 434 114 - - 548 0.02

R&D tax credit 400 30 - - 430 0.01

Loss (gain) on cost and equity method investments, net (324) - - - (324) (0.01)



26,219 5,040 31,259






Greatbatch,

Inc

Lake Region

Medical

Pro Forma

Adjustment Nuvectra

Combined Net


Net income as reported 9,283$ 5,426$ (10,000)$ 4,016$ 8,725$ 0.28$

Adjustments:





Asset dispositions, severance and other (OOE) 698 22 - - 720 0.02

R&D tax credit 400 30 - - 430 0.01

Loss (gain) on cost and equity method investments, net (27) - - - (27) -



26,313 5,040 31,353


(1)During periods of Net Income (as adjusted for the above reconciling items), weighted average shares includes dilutive impact for purposes of Pro

Forma EPS calculation.



Greatbatch,

Inc.

Lake Region

Medical

Pro Forma

Adjustment Nuvectra

Combined Net


Net income as reported 22$ 754$ (9,991)$ 4,572$ (4,643)$ (0.15)$

Adjustments:



Consolidation and optimization (OOE) 4,523 2,282 - 129 6,934 0.22

Acquisition and integration (OOE) 4,845 1,084 - - 5,929 0.19

Asset dispositions, severance and other (OOE) 2,468 89 - - 2,557 0.08

Lake Region Medical transaction costs (interest) 3,112 - - - 3,112 0.10

R&D tax credit 400 30 - - 430 0.01




26,441 5,040 31,481


(1)During periods of Net Income (as adjusted for the above reconciling items), weighted average shares includes dilutive impact for purposes

of Pro Forma EPS calculation.



Greatbatch,

Inc.

Lake Region

Medical October

2015 (1)

Pro Forma

Adjustment Nuvectra

Combined Net


Net income as reported (24,907)$ (23,914)$ (2,367)$ 3,699$ (47,489)$ (1.49)$

Adjustments:


Inventory step-up amortization 15,605 - - - 15,605 0.49

Amortization of intangibles 5,277 1,035 913 - 7,225 0.23

Consolidation and optimization (OOE) 5,736 (575) - (34) 5,127 0.16



Lake Region Medical transaction costs (interest) 3,039 6,015 - - 9,054 0.28

R&D tax credit (1,200) (90) - - (1,290) (0.04)

Loss (gain) on cost and equity method investments, net 1,150 - - - 1,150 0.04


Adjusted net income and dilutive EPS 27,858$ (2,282)$ (1,454)$ 3,665$ 27,787$ 0.87$

Adjusted diluted weighted average shares (2) 30,125 1,680 31,805




(1)The following amounts represent one month (October 2015) of Lake Region Medical historical statements prior to completion of the merger

and consolidation with Greatbatch, Inc. The remaining two months during the fourth quarter are included as part of Greatbatch's results within

"Greatbatch, Inc." column.


Combined EPS, As AdjustedFY 2015

Greatbatch,

Inc.

Lake Region

Medical

Pro Forma

Adjustment Nuvectra

Combined Net


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 amortization 15,605 - - - 15,605 0.50





Lake Region Medical transaction costs (interest) 6,151 6,015 - - 12,166 0.39

R&D tax credit - - - - - -





27,304 4,200 31,504






Historical

Greatbatch Nuvectra

Combined Net


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 0.21

Consolidation and optimization (OOE) 5,314 5,314 0.17

Acquisition and integration (OOE) 6,511 - 6,511 0.21

Asset dispositions, severance and other (OOE) 4,226 (717) 3,509 0.11

Lake Region Medical transaction costs (interest) - - - -

R&D tax credit - - - -

Loss (gain) on cost and equity method investments, net (846) - (846) (0.03)

Loss on debt extinguishment - - - -

Adjusted net income and dilutive EPS 10,476$ 2,624$ 13,100$ 0.42$

Adjusted diluted weighted average shares (1) 31,253 31,253

(1)During periods of Net Income (as adjusted for the above reconciling items), weighted average shares includes

dilutive impact for purposes of Pro Forma EPS calculation.(2)

The per share data in this table has been rounded to the nearest $0.01 and therefore may not sum to the total.

Documents

Historical Pro Forma Information...•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