17
Lindon Robertson Chief Financial Officer

Lindon Robertson Day... · 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

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Lindon Robertson Day... · 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

Lindon Robertson Chief Financial Officer

Page 2: Lindon Robertson Day... · 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

Agenda

2

Update to business model

Financial targets

Performance track record

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 3: Lindon Robertson Day... · 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

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

Page 4: Lindon Robertson Day... · 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

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

Page 5: Lindon Robertson Day... · 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

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

Page 6: Lindon Robertson Day... · 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

Agenda

6

Update to business model

Financial targets

Performance track record

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 7: Lindon Robertson Day... · 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

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

Page 8: Lindon Robertson Day... · 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

$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

Page 9: Lindon Robertson Day... · 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

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

Page 10: Lindon Robertson Day... · 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

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

Page 11: Lindon Robertson Day... · 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

Agenda

11

Update to business model

Financial targets

Performance track record

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 12: Lindon Robertson Day... · 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

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

Page 13: Lindon Robertson Day... · 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

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

Page 14: Lindon Robertson Day... · 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

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

Page 15: Lindon Robertson Day... · 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

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

Page 16: Lindon Robertson Day... · 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

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

Page 17: Lindon Robertson Day... · 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

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