Brooks Automation. Conference Call Acquisition of GENEWIZ. September 26 th, 2018

Transcription

1 Brooks Automation Conference Call Acquisition of GENEWIZ September 26 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 2

3 Brooks Is Acquiring GENEWIZ Group for $450M Global Leader in Genomics Services Key Customers Founded in 1999 HQ in New Jersey Global operations with facilities in US, EU, Asia Genomic sequencing and synthesis Sanger and Next Gen Sequencing Differentiated delivery model Attractive Revenue Profile Primary End Markets: Pharma and academic institutions Over 4,000 institutional customers and more than 100,000 end users No customer more than 4% of revenue Historical Revenue Growth* ($M) $120 $91 $79 $63 $50 $ Revenue by Region 4% 10% 17% 69% F * GENEWIZ actuals provided by management on Brooks Fiscal year basis Japan Europe China US 3

4 GENEWIZ Market Opportunity Industry Leading Capabilities in Strong Markets Market Size Next Gen Sequencing Largest and fastest growing segment $4B Sanger Sequencing Market leader, high value magnet capability Gene Synthesis High quality capabilities in a rapidly growing segment $1.8B Source: ClearView Healthcare Partners 4 4

5 Strategic Rationale for the Acquisition of GENEWIZ Brooks is acquiring GENEWIZ Group for $450M 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 5

6 Transaction Highlights Transaction Value Acquiring GENEWIZ for approximately $450M payable at closing, of which $30M is held in escrow Timing Expected to close before the end of calendar year 2018 Subject to regulatory approvals and customary closing conditions Financing Financed with cash from Brooks balance sheet and $350M of incremental senior secured term loan; Leverage ratio target remains at 3x or below 6

7 GENEWIZ Further Builds Our Growth Model With Life Sciences and Semiconductor Automation Revenue $M Life Sciences ~40% Semi Equip ~60% Sample Management GENEWIZ Automation and CCS 36% CAGR 25% CAGR* 12% CAGR ~$435 ~$198 ~$ F F F 11 Cash Acquisitions* for ~$365M Acquisition Price $450M 4 Cash Acquisitions* for ~$115M * Acquisitions made since 2011; GENEWIZ actuals and estimate as reported by management 7

8 Our Transformation to High Growth Segments Continues Excluding Cryogenics and Other Discontinued Business; 2018 Pro Forma with GENEWIZ Revenue $M ~$250 ~$750 High Growth Elements GENEWIZ 25% CAGR Life Sciences Sample Management Semi Tech Drivers Wafer level packaging Contamination control Vacuum automation FY13 FY14 FY15 FY16 FY17 FY18F Semi Stable Leadership ATM robots / 200mm automation / Services Excluding divested and discontinued revenue streams * Estimate and 5 year growth provided by GENEWIZ management ~ 80% of revenue from higher growth segments 8

9 Consistent Strategy Going Forward 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 A Company on the Move to Higher Value and Higher Growth Acquisitions Life Sciences Semi ~$365M 815M ~$115M 2017 / 18 BioCision additional $11M PBMMI for $34M FreezerPro software for $5M 4titude Ltd. for $66M BioSpeciMan for $5M 2011 / 12 RTS for $3M Nexus for $85M Crossing Automation for $59M Divested of Contract Manufacturing for $78M 2013 / 14 Matrical for $9M 22% of BioCision for $4M DMS for $32M Divested of Granville- Phillips instrumentation for $87M 2015 / 16 FluidX for $16M BioStorage Technologies for $125M Contact for $7M Agreement to acquire GENEWIZ for $450M Tec-Sem for $15M Agreement to Divest Cryogenics for $675M Prepared to Continue On Our Path GENEWIZ funded with debt and available cash Semi Cryo divestiture expected to yield ~$560M cash No dependency between the two deals ROIC Focus 10

11 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 11

12 Q&A