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iper Jaffray 25 th Annual Healthcare Conferenc December 3, 2013 Donald J. Spence, Chairman/CEO www.accellent.com Helping People Live Better Lives

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Page 1: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

Piper Jaffray 25th Annual Healthcare ConferenceDecember 3, 2013

Donald J. Spence, Chairman/CEO

www.accellent.com

Helping People Live Better Lives

Page 2: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

Forward Looking Statement

This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact communicated during this presentation may constitute forward-looking statements. Examples of forward-looking statements include those relating to our intentions, beliefs or current expectations concerning our results of operations, financial condition, liquidity, prospects, strategies and the industry in which we operate. These statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from our expectations are disclosed in the risk factors contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements made during this presentation are expressly qualified in their entirety by such factors.

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Page 3: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

Accellent is an industry leader serving blue chip customers

• One of the world’s leading providers of outsourced manufacturing and design services to the medical device industry

− Scale and product diversity with focus on several large, growing markets− Broad set of capabilities within key product segments− Strong, long-standing customer relationships− 3200 dedicated employees in 5 countries

• Secure financial position− Recurring revenue base with Blue Chip customers− Solid liquidity position with $60M cash balance and undrawn ABL− 2013 Growth through Q3 in revenue and EBITDA

• Accomplished management team

• Strong support from KKR and Bain Capital

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Page 4: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

Vision: Helping People Live Better Lives

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Page 5: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

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A portfolio of technologies to serve our customers

Design & Assembly

• Design & material selection

• Prototyping• Testing• Automation

design• Bonding/Welding• Clean room

assembly• Sterilization Mgt

Tube & Wire Forming & Fabrication

• Tube and Wire drawing, forming

• Platinum materials

• Laser Cutting• Wire coiling,

winding, grinding

• EDM wire, plunge

Metal Processing &

Machining

• Swiss Machining• Turning• Milling• Electropolishing• Passivation• Heat Treatment• Plasma Spray• MIM• Metallurgical

Expertise

Polymer Processing

• Extrusion• Film casting• Injection

Molding• Insert/ Over

Molding• Ultrasonic

Welding• Pad Printing• Coatings

Page 6: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

Micro MachiningMicro Machining

ThermocouplesThermocouples

Polyimide TubingPolyimide Tubing

Coated Stainless Wire Coated Stainless Wire Welded Pull CablesWelded Pull Cables

Welded Electrode AssembliesWelded Electrode Assemblies

PT Electrodes & PT Electrodes & Marker BandsMarker Bands

Braided Braided Polyimide TubingPolyimide Tubing

Braided Braided Multi lumenMulti lumen

Handle DesignHandle Design

Braided Braided ShaftsShafts High Spring High Spring

Constant CoilsConstant Coils

Irrigation Tube Irrigation Tube SetsSets Insert MoldingInsert Molding

Polyimide Coated Polyimide Coated WireWire

Product focus integrated with process knowhow

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Page 7: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

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Upland, CA

Brooklyn Park, MN

Wheeling, IL

Laconia, NH

Brimfield, MA

Collegeville, PA

Trenton, GA

Galway, IRL

Juarez, MX

Arvada, CO

Trenton, GA

Orchard Park, NY

Salem, VA

Wilmington, MA

Aura, Germany

Penang, Malaysia

Over one million square feet of manufacturing space across

15 locations around the globe

Over one million square feet of manufacturing space across

15 locations around the globe

Global footprint with low cost locations

Page 8: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

Examples of the Accellent Advantage

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Complete product design, development & production

• Worked in partnership with a key customer for over three years to develop and launch a novel new product in the ortho space.

–Developed patented proprietary technology–Provided insight to customer DFM–Launched program on schedule

Speed to market

• Helped a major customer bring a new and unique surgical product to market at least 6 months earlier than planned.

–Initial customer discussion in Q1 2012–Formally kicked off the program in Q3 2012–Product launch in Q3 2013 with favorable clinician feedback–Accellent currently producing 100% of growing customer demand

Seamless transfer and integration

• Transferred full manufacturing and assembly for a PMA cardio device from customer site to an Accellent location. Ramped up manufacturing volume to meet strong market demand.

Page 9: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

Solid 2013 financial performance

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% Variance % Variance

2013A 2012A PY 2013A 2012A PY

Total Sales 135.4 126.0 7.5% 387.0 376.5 2.8%

Gross Profit 37.9$ 33.7$ 12.4% 99.1$ 96.2$ 3.1%% Margin 28.0% 26.8% 25.6% 25.5%

SG&A/R&D 13.0$ 13.3$ -1.8% 41.0$ 42.9$ -4.3%% of Sales 9.6% 10.5% 10.6% 11.4%

EBITDA 30.6$ 28.2$ 8.6% 76.6$ 75.9$ 0.9%% Margin 22.6% 22.4% 19.8% 20.2%

Net Cash Flow 4.1$ 2.6$ 4.7$ 10.7$

Q3 Sep YTD

Page 10: Piper Jaffray 25 th Annual Healthcare Conference December 3, 2013 Donald J. Spence, Chairman/CEO  Helping People Live Better Lives

Summary

• A global leader in serving the medical device industry.

• A strategy designed to support the product needs of our customers.

• Enduring customer relationships combined with favorable end market dynamics.

• Strong near term financial performance.

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