Brooks Automation. Conference Call: Divestiture of Cryogenics Business Unit. August 28 th, 2018

Transcription

1 Brooks Automation Conference Call: Divestiture of Cryogenics Business Unit August 28 th, 2018

2 Safe Harbor Statement Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995; certain matters in this presentation, including forecasts of future demand and future Company performance, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to materially differ, either better or worse, from those projected. Further discussions of risk factors are available in the Company s most recent SEC filings, including the annual report on Form 10-K for the fiscal year ended September 30, 2017 and any subsequent quarterly reports on Form 10-Q. The Company assumes no obligation to update the information in this presentation. Regulation G This presentation contains certain non-gaap measures which are provided to assist in an understanding of the Brooks business and its operational performance. These measures should always be considered in conjunction with the appropriate GAAP measure. Reconciliations of all non-gaap amounts to the relevant GAAP amount are provided as an attachment to this presentation. 2

3 Strategic Rationale for the Sale of Cryogenics Brooks is selling Cryogenics assets to Atlas Copco for $675M; approximately 3.5x LTM revenue Continues Brooks transformation toward higher growth and higher value businesses Aligned with Brooks stated long-term strategy Brooks now focused on two strong platforms with high growth potential Life Sciences Market leader in high growth sample management with $2.5B addressable market by 2021 Semiconductor Automation Market leader with focus on high growth and high margin segments Transaction provides significant capital to pursue growth opportunities Favorable outcome driven by market conditions and competitive sale process Proceeds to be used to further the transformation of Brooks portfolio 3

4 Transaction Highlights Transaction Value Selling Cryogenics assets to Atlas Copco for $675M*; approximately 3.5x LTM revenue Cryogenics business unit includes the CTI-Cryogenics and Polycold product lines, the corresponding Global Service Support, and the Brooks interest in the ULVAC Cryogenics, Inc. joint venture Financial Impact LTM Revenue of $195M Cryogenics business unit will be reported as discontinued operations Brooks is planning for the future reduction of stranded expenses Timing Expected to close by the first quarter of calendar year 2019 Subject to regulatory approvals and customary closing conditions Proceeds Expected after-tax cash proceeds of approximately $560M Continued strategic deployment of capital for acquisitions * Final price subject to customary working capital and other adjustments 4

5 A Company on the Move to Higher Value and Higher Growth 2017 / 18 M&A Spend Life Sciences M&A ~$365mm Semi Automation M&A ~$115mm 2011 / 12 RTS for $3M Nexus for $85M 2013 / 14 Matrical for $9M 22% of BioCision for $4M DMS for $32M 2015 / 16 FluidX for $16M BioStorage Technologies for $125M Contact for $7M BioCision s Cool Lab for add l $11M PBMMI for $34M FreezerPro software for $5M 4titude Ltd. for $65M BioSpeciMan for $5M Tec-Sem for $15M Agreement to Divest Cryogenics for $675M 2011 Semi market tied to cyclical OEM businesses Crossing Automation for $59M Divested Contract Manufacturing for $78M Divested Granville-Phillips Instrumentation for $87M 2018 In the Semi and Life Sciences markets with leadership offerings 4 5

6 Life Sciences and Semiconductor Automation Are Solid Growth Drivers Revenue $M Life Sciences Automation and CCS Cryogenics 36% CAGR 12% CAGR ~$435 7% CAGR ~$198 ~$ F F F 11 Cash Acquisitions for ~$365M 4 Cash Acquisitions for ~$115M Focusing capital deployment in high growth segments since

7 GOING FORWARD Two Leadership Platforms 36% CAGR Life Sciences #1 Leader in End-to-End Sample Management Sample Storage Services Ultra Cold Storage Systems Consumables and Instruments Genomics, Informatics, and Transport Services Semi Automation #1 Leader in Fab Automation Solutions Vacuum Automation Advanced Packaging Contamination Control Services 12% CAGR % of Revenue 69% of Revenue % Revenue based on LTM reported revenue of the continuing operations 7

8 Accelerating the Transformation of Brooks Multi-year Transformation 2018 Separation 2019 Transformation 2020 Onward: Execution End State Separation Prep Accelerated Growth Execution TSA Support Extend Leadership in Current Markets Reduction of Stranded Infrastructure Cost Penetration of New Life Sciences Markets Organic and Continued Investment in Organic Growth Initiatives Improved Margins Streamlined Corporate Infrastructure Inorganic Growth Accelerating Acquisitions With Focus on the Expansion of Life Sciences 8

9 No Change to a Solid Strategy 1 Extend leadership in core markets Advance the rapid growth of Life Sciences 2 with organic and acquisition investments 3 Drive margin expansion Utilize balanced and disciplined 4 capital deployment 9

10 Key Takeaways The sale of the Cryogenics business brings >$0.5B of capital to accelerate the transformation toward Life Sciences Strategy remains the same Extend market leadership in two strong markets of Semi Automation and Life Sciences Transaction expected to close by early 2019 calendar year Reaffirming prior guidance for our Q4 ending Sept 30,

11 Q&A