Brooks Automation · 2018-09-26 · Brooks Is Acquiring GENEWIZ Group for $450M 3 Founded in 1999 −HQ in New Jersey −Global operations with facilities in US, EU, Asia Genomic

September 26th, 2018

Brooks Automation

Conference Call Acquisition of GENEWIZ

2

Safe Harbor Statement

22© 2018 Brooks Automation, Inc. • Proprietary Information

“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.

Brooks Is Acquiring GENEWIZ Group for $450M

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Founded in 1999

− HQ in New Jersey

− Global operations with facilities in US, EU, Asia

Genomic sequencing and synthesis

− Sanger and Next Gen Sequencing

− Differentiated delivery model

Primary End Markets:

− Pharma and academic institutions

− Over 4,000 institutional customers and more than 100,000 end users

− No customer more than 4% of revenue

Key CustomersGlobal Leader in Genomics Services

Attractive Revenue Profile

© 2018 Brooks Automation, Inc. • Proprietary Information

Historical Revenue Growth*

($M)

$39$50

$63$79

$91

$120

2013 2014 2015 2016 2017 2018F

4%

10%

17%

69%

Japan Europe China US

2017 Revenue by Region

* GENEWIZ actuals provided by management on Brooks’ Fiscal year basis

Industry Leading Capabilities in Strong Markets

Next Gen Sequencing

Largest and fastest growing segment

Sanger Sequencing

Market leader, ‘high value magnet’ capability

Gene Synthesis

High quality capabilities in a rapidly growing

segment

GENEWIZ Market Opportunity

44© 2018 Brooks Automation, Inc. • Proprietary InformationSource: ClearView Healthcare Partners

$1.8B

$4B

2018 2023

Market Size

Strategic Rationale for the Acquisition of GENEWIZ

Further expansion into high growth areas of Life Sciences

− GENEWIZ is a global leader in genomics services

− Expands Brooks’ value in sample-based management and sample-based research offerings

− Establishes primary participation in the ~$2B SAM opportunity of Genomics Services

A high growth profitable acquisition

− $140M expected revenue for 2019 fiscal year

− Non-GAAP gross margins of ~50%

− Immediately accretive to non-GAAP earnings


Brooks is acquiring GENEWIZ Group for $450M

Transaction Highlights


▪ Acquiring GENEWIZ for approximately $450M payable at closing, of which $30M is held in escrow

Transaction

Value

▪ Expected to close before the end of calendar year 2018

▪ Subject to regulatory approvals and customary closing conditions

▪ Financed with cash from Brooks’ balance sheet and $350M of incremental senior secured term loan; Leverage ratio target remains at 3x or below

Timing

Financing

GENEWIZ – Further Builds Our Growth Model With Life Sciences and Semiconductor Automation

7

2013 2014 2015 2016 2017 2018 F

36%CAGR

GENEWIZ Automation and CCS


2013 2014 2015 2016 2017 2018 F

Sample Management

12%CAGR

11 Cash Acquisitions* for ~$365M 4 Cash Acquisitions* for ~$115M

~$198

Revenue $M

~$435

Life Sciences ~40%

25%CAGR*

2013 2014 2015 2016 2017 2018 F

~$120

* Acquisitions made since 2011; GENEWIZ actuals and estimate as reported by management

Acquisition Price $450M

Semi Equip ~60%

FY13 FY14 FY15 FY16 FY17 FY18F

Our Transformation to High Growth Segments ContinuesExcluding Cryogenics and Other Discontinued Business; 2018 Pro Forma with GENEWIZ

8

~$250

~$750

Semi Stable Leadership

Semi Tech Drivers

Life SciencesSample Management

• Wafer level packaging

• Contamination control

• Vacuum automation

~ 80% of revenue from higher growth segments

Revenue $M High Growth Elements


GENEWIZ 25% CAGR 2013 - 2018

• ATM robots / 200mm automation / Services

• Excluding divested and discontinued revenue streams

* Estimate and 5 year growth provided by GENEWIZ management

Consistent Strategy Going Forward

Extend leadership in core markets1

Advance the rapid growth of Life Sciences

with organic and acquisition investments2

Drive margin expansion3

Utilize balanced and disciplined

capital deployment4

© 2018 Brooks Automation, Inc. • Proprietary Information 9

A Company on the Move to Higher Value and Higher Growth

• RTS for $3M

• Nexus for $85M

• Crossing

Automation

for $59M

• Divested of

Contract

Manufacturing

for $78M

• Matrical for $9M

• 22% of BioCision

for $4M

• DMS for $32M

• Divested of Granville-

Phillips

instrumentation

for $87M

• FluidX for $16M

• BioStorage

Technologies

for $125M

• Contact for $7M2011 / 12

2013 / 14

2015 / 16

• BioCision additional $11M

• PBMMI for $34M

• FreezerPro software for $5M

• 4titude Ltd. for $66M

• BioSpeciMan for $5M

• Agreement to acquire

GENEWIZ for $450M

• Tec-Sem for $15M

• Agreement to Divest

Cryogenics for $675M

2017 / 18Acquisitions

▪ Life Sciences ~$365M 815M

▪ Semi ~$115M

Prepared to Continue On Our Path

ROIC Focus

GENEWIZ funded with debt and available cash

Semi Cryo divestiture expected to yield ~$560M cash

No dependency between the two deals

© 2018 Brooks Automation, Inc. • Proprietary Information10

Key Takeaways

The acquisition of GENEWIZ accelerates Brooks transformation

into Life Sciences’ higher growth and higher value businesses✓

Positions Brooks in the center of the attractive gene sequencing and

gene synthesis markets✓

Company strategy remains the same – continued market leadership

in Semi Automation and Life Sciences✓

Accretive to Brooks’ earnings, growth and margins – updated

guidance to be provided with next earnings announcement✓


Q&A

Documents

Brooks Automation · 2018-09-26 · Brooks Is Acquiring GENEWIZ Group for $450M 3 Founded in 1999 −HQ in New Jersey −Global operations with facilities in US, EU, Asia Genomic