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Lindon Robertson Day... · Track Record of Delivering on Commitments 5 Revenue EPS* In 2016 We Set...
Transcript of Lindon Robertson Day... · Track Record of Delivering on Commitments 5 Revenue EPS* In 2016 We Set...
Lindon Robertson Chief Financial Officer
Agenda
2
Update to business model
Financial targets
Performance track record
© 2018 Brooks Automation, Inc. • Proprietary Information
Significant Transformation of Brooks
* Non-GAAP financial measures – see reconciliation tables. Note: Today reflects LTM results from Mar’18. 3
2013 Today
Expanded addressable
market $1.6B $3.6B
Increase
2X
Two significant growth
platforms with Life Sciences 4X revenue
Higher gross margins* 33% 41% 8 points
Adjusted EBITDA* $29M $153M 5X
ROIC increased above
WACC -2% 14% 16 points
10% 23%
© 2018 Brooks Automation, Inc. • Proprietary Information
Track Record of Delivering on Commitments
4
$M, except EPS
In 2014 We Set a 3-year Model for FY’17 and Exceeded Company Targets
Revenue:
Gross Margin:
EPS:
Semi:
Revenue exceeded target range
Life Sciences:
Revenue exceeded target with help
of acquisitions
Revenue EPS*
422
2013
533
2015
693
2017
610-650 Target
$0.12
2013
$0.45
2015 2017
$1.23
$0.80-1.00 Target
* Non-GAAP financial measures – see reconciliation tables. Note: LTM results from Mar’18. © 2018 Brooks Automation, Inc. • Proprietary Information
Track Record of Delivering on Commitments
5
Revenue EPS*
In 2016 We Set a High Growth 3-year Model for FY’19, then Raised the Targets Higher
$1.00-1.30 Jun ‘16
Original targets set
in June, 2016
Revenue:
Gross Margin:
EPS:
$M, except EPS
* Non-GAAP financial measures – see reconciliation tables. Note: LTM results from Mar’18.
650-750 Jun ‘16
$1.50-1.80 Nov ‘17
Updated the model in
November, 2017
Revenue:
Gross Margin:
EPS:
On Track
On Track
At Target
• Semi: Tracking to exceed range again
• Life Sciences: Tracking to $240M
2015 2017 LTM
800-870 Nov ‘17
553
693
760
Target
2015 2017 LTM 2019
$0.45
$1.23
$1.42
Target
2019
© 2018 Brooks Automation, Inc. • Proprietary Information
Agenda
6
Update to business model
Financial targets
Performance track record
© 2018 Brooks Automation, Inc. • Proprietary Information
7
$M FY 2015 FY 2017 LTM FY 2019
Update
Today’s
Update
Total Revenue Semi
Life Sciences
% of total
$553M $485M
$68M
12%
$693M $544M
$149M
21%
$760M $584M
$177M
23%
$880-940M $640-$700M
$240M
~26%
+$75M +$75M
Gross Margin* 35.4% 39.2% 40.8% ~42% +1 pt.
Operating Expenses*
% of Revenue 28.8% 25.8% 25.9% ~23% -1 pt.
Operating Income*
% of Revenue
$37M
6.6%
$93M
13.5%
$114M
15.0%
$165-190M
~20%
+$27M
+2 pt.
Tax Rate 24% 15% 13% ~22% +4 pt.
EBITDA*
EPS*
$64M
$0.45
$131M
$1.23
$153M
$1.42
$205-230M
$1.70-2.00
+$32M
+$0.20
Updating 2019 Model Again Today: Near Term – FY19 Model Continues to Track Ahead of Target
* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization, restructuring
expense, and other special charges. Note: LTM results from Mar’18. © 2018 Brooks Automation, Inc. • Proprietary Information
$0.45
$1.23
$1.42
2015 2017 LTM 2019 Target
553
693
760
2015 2017 LTM 2019 Target
Updating 2019 Model Again Today
8
$M, except EPS
Near term - FY19 Model Continues to Track Ahead of Target
Revenue EPS*
May ‘18 880-940
May ‘18 $1.70-2.00
Revenue:
EPS*:
Semi: Tracking to $640-700M
• Tax rate update of 22% reflects
the removal of the U.S. valuation
allowance on Deferred Tax Assets
$880 - $940M
$1.70 - $2.00
Life Sciences: Tracking to $240M
Jun ’16 650-750
Nov ‘17 800-870 Nov ’17
$1.50-1.80
Jun ’16 $1.00-1.30
* Non-GAAP financial measures – see reconciliation tables. Note: LTM results from Mar’18. © 2018 Brooks Automation, Inc. • Proprietary Information
New FY19 Target Model is Within Sight on Semi Momentum and Life Sciences Roadmap
9
$1.42
~$0.08
~$0.24 ~$0.12
~$0.36
~$0.21
$1.70-2.00
LTM Life Sciences
Growth
Semi
Momentum
Interest
Expense &
JV Income
FY19
Adjusted EPS*
Tax Rate
Ex Val Allow
13% 22%
Life Sciences
GM%
Expansion Updated
Target Range
* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization, restructuring expense,
and other special charges. Note: LTM results from Mar’18.
© 2018 Brooks Automation, Inc. • Proprietary Information
Confidence in Life Sciences: Comprehensive Offerings, High Growth and a Solid Mix of Recurring Revenue
10
Diverse Base of Revenue
Transactional Revenue Recurring Revenue
2017 Growth of
57%
2017 Growth of
24%
Sample Storage
30%
Consumables 14%
Infrastructure Service
9% Systems
22%
Instruments, Transport, & Informatics
14%
Genomics 11%
53% Recurring
Revenue
Agenda
11
Update to business model
Financial targets
Performance track record
© 2018 Brooks Automation, Inc. • Proprietary Information
FY 2021 Model – Continued Momentum
12
• Revenue range $720 – $850M
7-12% CAGR from 2017
• Gross margin target of 42-44%
• Operating expense productivity
Life Sciences Drivers Semiconductor Drivers
~20%
Operating Margins
~30% of Brooks revenue
20-25%
Operating Margins
~70% of Brooks revenue
Operating Margins exceed 20%
ROIC of 20%+
• Revenue growth to ~$330M
22% CAGR from 2017
18% CAGR from 2018 target
• Gross margin target of 42-44%
• Operating expense productivity
Projections exclude intangibles amortization, restructuring expense, and other special charges. © 2018 Brooks Automation, Inc. • Proprietary Information
FY 2021 Target Model – New Goals for the Longer Term
13
$M FY 2015 FY 2017 LTM FY 2021
Total Revenue Semi
Life Sciences
% of total
$553M $485M
$68M
12%
$693M $544M
$149M
21%
$760M $584M
$177M
23%
$1,050-1,180M $720-$850M
$330M
~30%
Gross Margin* 35.4% 39.2% 40.8% 42-44%
Operating Expenses*
% of Revenue 28.8% 25.8% 25.9% ~23%
Operating Income*
% of Revenue
$37M
6.6%
$93M
13.5%
$114M
15.0%
$215-255M
~21%
Tax Rate 24% 15% 13% ~22%
EBITDA*
EPS*
$64M
$0.45
$131M
$1.23
$153M
$1.42
$250-290M
$2.30-2.70
* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization, restructuring
expense, and other special charges. Note: LTM results from Mar’18. © 2018 Brooks Automation, Inc. • Proprietary Information
Extending the Financial Model Objectives to 2021
14
Revenue Earnings Per Share*
$693
2017 2021
$1,050-1,180
$93
2017 2021
$215-255
2017 2021
$2.30-2.70
$1.23
Operating Income and
Margins*
$M
~12% CAGR
~ +8pts ~2X
13%
21%
* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization,
restructuring expense, and other special charges. © 2018 Brooks Automation, Inc. • Proprietary Information
Organic Growth
• Invest in R&D, ~$50M annually
• ~$10M+ CAPEX annually
$300M
42%
Acquisitions
• Semiconductor and Life Sciences
• Divestitures of $85M
• ROIC focus
$288M
40%
Shareholder Return
• Quarterly dividend of
$0.10 per share
$127M
18%
Over last five fiscal years,
$700M of capital deployed to enhance
shareholder returns
Balanced and Disciplined Capital Deployment
15 Note: Figures referenced represent the period from FY13 through FY17. © 2018 Brooks Automation, Inc. • Proprietary Information
Acquisitions Will Continue
• RTS for $3M
• Nexus for $85M
• Divested of
Contract
Manufacturing
for $78M
• Crossing
Automation
for $59M
• Matrical for $9M
• 22% of BioCision
for $4M
• Divested of Granville-
Phillips
instrumentation
for $87M
• DMS for $32M
16
• FluidX for $16M
• BioStorage
Technologies
for $125M
• Contact for $7M
2011 / 12
2013 / 14
2015 / 16
• BioCision add’l $11M
• PBMMI for $34M
• FreezerPro software
for $5M
• 4titude Ltd. for $66M
• BioSpeciMan for $5M
• Tec-Sem for $14M
2017 / 18 Acquisitions
Life Sciences ~$365M
Semi ~$115M
Expect More
ROIC Focus
Life Sciences – Growth Orientation
Semiconductor – Opportunistic
I N S U M M A R Y
Two High Performance Businesses. Positioned for Profitable Growth
17
Two Strong Markets
Technology complexity
driving higher equipment
demand
Research requires high
volume & high integrity of
samples, driving an
increased need for
infrastructure
Semiconductor
Capital Equipment
Life Sciences
Sample Management
Two Strong Leadership Positions
Leading in Semi with
deep engineering
One-of-a-kind suite of
Life Science offerings
for on-site and off-site
sample management
Attractive Long Term
Financial Model
Two profitable growth
businesses
High drop-through to
bottom line for profits
& cash
Track Record of Effective Capital
Deployment
ROIC > WACC
Capturing opportunity
for growth & value with
acquisitions
7th year of dividends
Zero net debt and
strong liquidity
© 2018 Brooks Automation, Inc. • Proprietary Information