brooks automation investor dayceo... · 6/1/2016 · 15 minute break . steve schwartz president...

Brooks Automation Investor Day

June 1, 2016

1

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, 2015 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 © 2016 Brooks Automation, Inc. • Proprietary Information

3

Introduction of Speakers

Steve Schwartz President and

Chief Executive Officer

David Jarzynka Senior Vice President and General Manager,

Brooks Semiconductor Solutions Group

Dusty Tenney President,

Brooks Life Sciences Solutions

Lindon Robertson Executive Vice President and

Chief Financial Officer

© 2016 Brooks Automation, Inc. • Proprietary Information

Positioned for Profitable Growth

Addressing Our Semi Customers’

Greatest Needs

A Unique Value Proposition

for Life Sciences

Driving Growth and

Increasing Returns

15 Minute Break

Steve Schwartz

President and Chief Executive Officer

4


5

• Market leader

• New products in key segments driving growth

Strong Semiconductor

platform

• All key capabilities in place

• Uniquely positioned in large, high growth market

Life Sciences poised for

profitable growth

• Priority is driving profitability

Focused on execution


Growth

platforms in two

sectors driving greater

than 15% Operating

Margin by 2019

Agenda


Brooks today

Semiconductor position

Life Sciences position

Strategy for the future

Life Sciences

Sample Management

Semiconductor

Capital Equipment

Brooks at a Glance

~80% of Revenue

• Fab Automation Solutions

• Contamination Control Solutions

• Cryogenic Vacuum Products

• Global Service Support

~20% of Revenue

• End-to-End Cold Chain Management

• Automated Ultra Cold Storage Products

• Sample Storage Consumables

• Sample Management Outsourced Services

7

Headquartered in Chelmsford, MA with operations in 11 countries


• 1,700 employees

• $68M cash, no debt

• Sales in 50 countries

• > 500 Base Patents

We Enable Improved Results in Controlled Operating Environments

Technologies

Precise,

reliable

handling of

sensitive

materials in

controlled

environments

Semiconductor Capital Equipment

• Precision handling

– atmospheric & vacuum robots

– integrated automation systems

• Clean wafer environments

• Vacuum creation

– cryogenic pumps

– cryochillers

• Services

Life Sciences Bio-Sample Management and Storage

Markets

• Complete automated sample

management

– consumables

– automated storage

– instruments

– service

8

Cryogenics

Contaminant-

free precision

automation

Vacuum

creation


Strategic Focus to Improve Performance – Last Three Years

• Extend market leadership

• Advance portfolio vitality

• Apply cost competitive

discipline

• Provide integrated cold

chain mgmt solutions

• Innovate next-generation

automated systems

• Provide outsourced

services offering

1

2 Our goal:

Improve

performance

and increase

leadership in

each market

Strengthen core

Semiconductor

business

Build on

leadership

position in Life

Sciences

9

• Organic investment

• M&A with ROIC focus

• Meaningful dividend

3

Continue

disciplined capital

deployment


Brooks Today at Inflection Point for Accelerating Growth and Major Profit Increase in 2017

2013 to 2016 2016-2017 2017 +

Built Life Sciences and Repositioned Semi

• Focused on market leaders

• Full suite of biological sample management offerings

At Inflection Point

• Ramp up growth

• Streamline Semi business

• Drive Life Science profitability

New Brooks Model Firing on All Cylinders

• Margin expansion

• Accelerated earnings and cash flow yield

© 2016 Brooks Automation, Inc. • Proprietary Information 10

Substantial Transition and Upgrade of Brooks Revenue Base


$M

Granville-Phillips

Contract Manufacturing

ATM Robots

Life Sciences

Contamination Control

Dep & Etch

Adv Packaging

Pumps & Services

FY11 FY17

Low Potential

Life Sciences

High Value Semi

Granville-Phillips


ATM Robots

Life Sciences

Automation, Vacuum Pumps

& Services

Substantial Transition and Upgrade of Brooks Revenue Base


$M

Granville-Phillips


ATM Robots

Life Sciences


Dep & Etch

Adv Packaging

Pumps & Services

FY11 FY17

High Value Semi

65% of revenue

from high growth

areas

Life Sciences

Life Sciences


Dep & Etch

Adv Packaging

Pumps and Services

Track Record of Growth and Improving Profitability

13

$422

$483

$553

FY13 FY14 FY15

$5

$20

$37

FY13 FY14 FY15

$0.12

$0.25

$0.45

FY13 FY14 FY15

Positioned for continued profitable growth

© 2016 Brooks Automation, Inc. • Proprietary Information * Non-GAAP financial measures – see reconciliation tables.

1.2%

4.2%

6.6%

Revenue Operating Income* Earnings Per Share*

$M except EPS

Agenda


Brooks today




Semiconductor Business is Well-Positioned in the Fastest Growing Segments of a $2B SAM

• Our technology fits the market trends with >50% in high growth areas

• Deep relationships position us to solve the customer’s next problem

– Large OEMs, Emerging China providers, WLP – new back-end customers

15

12%

23% 25%

’13 – ’15 Brooks Revenue – Primary Drivers

WFE Market Growth of 7%

Deposition

& Etch

Wafer-Level

Packaging Contamination

Control

* Note: WFE growth from Gartner Research, Wafer-Level Manufacturing Equipment report, April 2016.


Agenda


Brooks today




Changing Landscape in Life Sciences Sample Storage

• Small scale

• Handled manually

• Homegrown

• Sample degradation

• Traceability concerns

2000

Early Stages

2010

Emergence of

Infrastructure

2016

Growth Phase

• Greater scale and structure

• Emergence of bio-banks; collaborative initiatives

• Lack of operating procedures

• Samples highly strategic assets

• Preservation of future potential value

• Robust data management

• Standardization of protocols and procedures

Number of Samples: 0.5B Number of Samples: 2B Number of Samples: 6B

17 © 2016 Brooks Automation, Inc. • Proprietary Information * Market data source : Health Advances research.

Life Sciences Division is Well-Positioned

18

Sample

Comprehensive

Sample Management

Solutions

Consumables

and Service

Outsourced

Sample

Mgmt

Integrated

Informatics

The comprehensive sample management solutions provider

Genomic

Analysis

Consultation

and

Logistics

Automated

Ultra Cold

Storage

Automated

Large

Freezers

800+ diverse customers

and growing

Customer “one-stop” experience

Complementary and integrated

products, services and informatics

Annuity-based solution


19

Expanding the Portfolio to Address Higher Value Segments of Biological Sample Management

2016 SAM = $1.3B

Storage Services

$0.5B

Bio-Consumables

$0.3B

Base

$0.3B

Ultra Cold Storage

$0.2B

• Successfully expanded beyond

the core Automated Storage

• Achieved through acquisition and

internal development

• Greater scope for end-to-end cold

chain management

• Broader scale for profitability and

long term growth

Attractive markets growing at ~15% annually


Agenda


Brooks today




Strategy Going Forward

Extend leadership in core Semiconductor

and adjacent markets 1

Advance the rapid growth of Life Sciences

division 2

Drive margin expansion 3

Utilize disciplined capital deployment 4


Improving Growth and Profitability


EPS* ROIC Operating Margin*

The business is poised for higher profits and returns

7%

>15%

FY15 FY19

$0.45

FY15 FY19

4%

~13%

FY15 FY19

$1.00 - $1.30

2X ~25% CAGR

3X

* Non-GAAP financial measures – see reconciliation tables for historical results. Projections

exclude intangibles amortization, restructuring expense, and other special charges.


23

• Market leader

• New products in key segments driving growth

Strong Semiconductor

platform

• All key capabilities in place

• Uniquely positioned in large, high growth market

Life Sciences poised for

profitable growth

• Priority is driving profitability

Focused on execution


Growth

platforms in two

sectors driving greater

than 15% Operating

Margin by 2019

brooks automation investor dayceo... · 6/1/2016 · 15 minute break . steve schwartz president...

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