August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life...
Transcript of August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life...
Brooks Automation
Conference Call: Divestiture of Cryogenics Business Unit August 28th, 2018
Safe Harbor Statement
“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Actof 1995; certain matters in this presentation, including forecasts of future demandand future Company performance, are forward-looking statements that aresubject to risks and uncertainties that could cause actual results to materiallydiffer, either better or worse, from those projected. Further discussions of riskfactors are available in the Company’s most recent SEC filings, including theannual report on Form 10-K for the fiscal year ended September 30, 2017 andany subsequent quarterly reports on Form 10-Q. The Company assumes noobligation to update the information in this presentation.
Regulation GThis presentation contains certain non-GAAP measures which are providedto assist in an understanding of the Brooks business and its operationalperformance. These measures should always be considered in conjunction withthe appropriate GAAP measure. Reconciliations of all non-GAAP amounts to therelevant GAAP amount are provided as an attachment to this presentation.
2© 2018 Brooks Automation, Inc. • Proprietary Information
Strategic Rationale for the Sale of Cryogenics
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© 2018 Brooks Automation, Inc. • Proprietary Information
Brooks is selling Cryogenics assets to Atlas Copco for $675M; approximately 3.5x LTM revenue
Transaction Highlights
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
Transaction Value
Expected to close by the first quarter of calendar year 2019
Subject to regulatory approvals and customary closing conditions
Expected after-tax cash proceeds of approximately $560M
Continued strategic deployment of capital for acquisitions
LTM Revenue of $195M
Cryogenics business unit will be reported as discontinued operations
Brooks is planning for the future reduction of stranded expenses
Financial Impact
Timing
Proceeds
4© 2018 Brooks Automation, Inc. • Proprietary Information * Final price subject to customary working capital and other adjustments
A Company on the Move to Higher Value and Higher Growth
RTS for $3M
Nexus for $85M
Crossing Automation for $59M
Divested Contract Manufacturing for $78M
Matrical for $9M
22% of BioCision for $4M
DMS for $32M
Divested Granville-Phillips Instrumentation for $87M
FluidX for $16M
BioStorage Technologies for $125M
Contact for $7M
2018In the Semi and Life Sciences markets
with leadership offerings
2011Semi market tied to
cyclical OEM businesses
2011 / 12
2013 / 14
2015 / 16
M&A Spend
Life Sciences M&A ~$365mm Semi Automation M&A ~$115mm
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
2017 / 18
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© 2018 Brooks Automation, Inc. • Proprietary Information5
2013 2014 2015 2016 2017 2018 F
Life Sciences and Semiconductor Automation Are Solid Growth Drivers
6
2013 2014 2015 2016 2017 2018 F
36%CAGR
7%CAGR
CryogenicsAutomation and CCS
© 2018 Brooks Automation, Inc. • Proprietary Information
2013 2014 2015 2016 2017 2018 F
Life Sciences
12%CAGR
11 Cash Acquisitions for ~$365M 4 Cash Acquisitions for ~$115M
~$198
Revenue $M
~$435
~$194
Focusing capital deployment in high growth segments since 2011
Semi Automation#1 Leader in
Fab Automation Solutions
G O I N G F O R W A R D
Two Leadership Platforms
• Sample Storage Services
• Ultra Cold Storage Systems
• Consumables and Instruments
• Genomics, Informatics, and Transport Services
• Vacuum Automation
• Advanced Packaging
• Contamination Control
• Services
Life Sciences#1 Leader in
End-to-End Sample Management
© 2018 Brooks Automation, Inc. • Proprietary Information
36%CAGR‘13-’18
12%CAGR‘13-’18
7
31% of Revenue 69% of Revenue
% Revenue based on LTM reported revenue of the continuing operations
Accelerating the Transformation of Brooks
2018 Separation
2019 Transformation
2020 Onward: Execution End State
Multi-year Transformation
Organic
and
InorganicGrowth
ExecutionTSA
Support
SeparationPrep
Continued Investment in Organic Growth Initiatives
Accelerating Acquisitions With Focus on the Expansion of Life Sciences
Reduction of Stranded Infrastructure Cost
Accelerated Growth
Extend Leadership in Current Markets
Penetration of New Life Sciences Markets
Improved Margins
Streamlined Corporate Infrastructure
8© 2018 Brooks Automation, Inc. • Proprietary Information
No Change to a Solid Strategy
Extend leadership in core markets1Advance the rapid growth of Life Sciences with organic and acquisition investments2Drive margin expansion3Utilize balanced and disciplined capital deployment4
© 2018 Brooks Automation, Inc. • Proprietary Information 9
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Key Takeaways
The sale of the Cryogenics business brings >$0.5B of capital to accelerate the transformation toward Life Sciences
Reaffirming prior guidance for our Q4 ending Sept 30, 2018
Strategy remains the same – Extend market leadership in twostrong markets of Semi Automation and Life Sciences
10© 2018 Brooks Automation, Inc. • Proprietary Information
Transaction expected to close by early 2019 calendar year
Q&A