President and Chief Executive Officer... · 2011 2015 Today 2022 Genomics Sample Management Semiconductor ~$1.3B ~$5B ~$11B ~$15B ~10% ~13% ~3% 22 CAGR Today to 2022 Transformation

Steve SchwartzPresident and Chief Executive Officer

© 2019 Brooks Automation, Inc. • Proprietary Information

What You Will Hear Today

Execution – Strong track record1

Value Creation – The core of our success2

GENEWIZ - Acquisition on track3

Two Strong Platforms - Semiconductor and Life Sciences see excitingopportunities ahead4

Financial model to 2022 – shows continuing, achievable growth5

7


Brooks at a Glance

* Non-GAAP financial measures – see reconciliation tables. **Note: LTM results from June 2019. 8

$741MRevenue**

RevenueProfile

>3,200Employees20%

Growth rate(CAGR ‘17-19)

42%Gross margin %*

11%Operating income %*

>200%3-Year TSR(Sept ‘16-Sept ’19)

Life Sciences

Semiconductor

43%

57%


A G E N D A

Capitalizing on Untapped Niche Opportunities

9

Value creation methodology

The future: significant potential ahead

Executing our consistent strategy

Two strong platforms with scale


Executing Consistent Strategy

10

Extend leadership in core markets1Employ value creation methodology for the rapid

growth of Semiconductor and Life Sciences2Drive margin expansion3Utilize balanced and disciplined

capital deployment4


Key Accomplishments Since Last Investor Day

Acquired GENEWIZ✓

Divested Semi Cryogenics business✓

Re-set balance sheet✓

130 design-in wins in Semiconductor Solutions✓

Increase in Enterprise Value > $2.6B✓

11

Secured >2,000 new customers in Life Sciences✓


Transformation to Higher Margin, Higher Growth Profile

12

17%

83%

$407M

2015LifeSciences

Semi

31%

69%

$632M

2018

Life

SciencesSemi

43%

57%$778M*

2019

Life

SciencesSemi

Gross Margin**

GrowthRate

34% 42%

18%

22%

* Mid-point of guidance range provided on Aug. 1, 2019* *Non-GAAP financial measures – see reconciliation tables


A G E N D A


13






Two Businesses of Scale – Now of Similar Size

14

Semiconductor Equipment Life Sciences


$0

$20

$40

$60

$80

$100

1990 1995 2000 2005 2010 2015

$B

$10B

$20B

$50B+

Cloud Computing

Internet of Things(IoT)

ConnectivityArtificial Intelligence

DesktopComputing

PC

Networked WorldLaptops, Phones, Gaming

S E M I W A F E R F A B R I C AT I O N E Q U I P M E N T ( W F E ) M A R K E T G R O W T H :

Technologies Driving Semi Growth Play to Our Strengths

15

2019F

MobilitySmart Phones, Tablets

$30B

WFE Market

down ~ 20%

in 2019

Source: Gartner 2018 and Company estimates


($44M)*

S T R AT E G Y I N A C T I O N :

Leveraging our Business Model to Outpace the Semi Market

16

Tier 1 & Other Segments

High growth segment performance outweighed legacy segment decline

+$57M*

Our High Growth

Segments

Contamination Control

~$119M*

Advanced Packaging

~$68M*

+$45M*

YoY

+$12M*

YoY

Change in Revenue

FY’19 versus FY’18

+$13M*

3%

Growth

YoY

* Management’s internal estimate for Fiscal 2019


Strong Semiconductor Market Opportunity Fueled by Secular Growth Drivers for Automation and CCS

Growth Drivers

• Pervasive use of ICs in everything– 5G, IoT, Mobile, Auto

• Advanced chips drive need for Advanced Packaging and Contamination Control Solutions (CCS)

• Diversified portfolio to serve a global market

2018 2022

ContaminationControl Solutions

Advanced Packaging

Automation

~$1.8B

~$2.0B

Market Growth

+3%CAGR

17* Market size based on management’s internal estimates.


Two Businesses of Scale – Now of Similar Size

18

Semiconductor Equipment Life Sciences


2000 2010 2020

Multiple Growth Drivers in Life Sciences

19

• Cell and Gene therapy

• Regenerative medicine

• Precision medicine

• Biological drug development

• Genomic analysis

• Drug discovery

• Chemical compounds

• High throughput screening

Sample Volume


Growth Drivers

2018 2022

L I F E S C I E N C E S :

GENEWIZ Capitalizing on the Genomics Era

20

• Exploding demand for gene sequencing and synthesis

• Sanger: Strong leading position for sequencing

• Next Generation Sequencing: Industry leading turn around time

• Gene Synthesis: Proprietary technology enabling efficiency for discovery and development

~$2.6B*

~$4B*

Market Growth

+13%CAGR

* Market size based on 3rd party estimates as part of a study commissioned by the company


2018 2022

L I F E S C I E N C E S :

Sample Management Attractive Market Opportunity

21

Growth Drivers

• Drug discovery and innovative

therapies drive market demand

• Sample Management

– Millions of research samples processed

– Sample integrity drives value

~$6B*

~$9B*

Market Growth

+10%CAGR

* Market size based on 3rd party estimates as part of a study commissioned by the company


B R I N G I N G I T A L L T O G E T H E R

Explosive Addressable Market Opportunity Across the Portfolio

2011 2015 Today 2022

Genomics

Sample

Management

Semiconductor~$1.3B

~$5B

~$11B

~$15B

~10%

~13%

~3%

22

CAGRToday to 2022

Transformation nearly triples our available market in 7 years* Market size based on management’s internal estimates and 3rd party estimates as part of a study commissioned by the company


A G E N D A


23






Brooks Value Creation Methodology

24

1 2 3

Brooks has a unique and proven ability to recognize early high potential value

Powerful Opportunity

Generation Engine

M&A ValueCreation

Portfolio Advancement via Organic Growth

• ROIC focus • Balance sheet management • Integration excellence

4. Foundation of Discipline & Excellence


1. Powerful & Proven Opportunity Generation Engine

• Expansive – full evaluation of the landscape

• Patient – looking for the right opportunity at the right time

• Insights-driven – leveraging Brooks’ market expertise

− 40 years in semiconductors

− Cold Chain focus

• Customer-centric – focus on future customer needs

• Disciplined – must meet ROIC threshold

>1,000 opportunities evaluated during last 9 years

~30 opportunities pursued

Our Approach

25


2. M&A Value Creation

Acquire the right opportunity

Maximize value via integration excellence

Maximize growth via targeted investments

Acquisitions

completed

since 2011

15

26

• Identify and execute on cost and sales synergies

• Collaboration with target

• Identify and fund growth opportunities to

achieve full potential

• e.g. geographic expansions, new sales channels

• Identify targets in high growth markets and adjacencies

• Focus on future shifts in customer needs

• Stringent ROIC hurdles and financial modeling


2014

2 . M & A VA L U E C R E AT I O N

CCS Case Study Demonstrates M&A Success

What We Did

Acquire Integrate Invest to Grow, Continue Acquisitions

Revenue Growth

2014: ~$ 30M

2019: ~$119M*

4X 2XCustomer Expansion

2014: 26

2019: 55

2015 2016 2019

27

Results



2016

2 . M & A VA L U E C R E AT I O N

BioStorage Case Study Demonstrates M&A Success

What We Did

Acquire Integrate Invest to Grow, Roll up Acquisitions

2017 2018 2019

28

Results

Revenue Growth

2015: ~$40M

2019: ~$87M*

2X 3XCustomers

2015: < 200

2019: > 500



• Used core skills to develop

• Focused on Tier 2 suppliers

• Expanded globally

3. Portfolio Advancement via Organic Growth: Case Studies

Life Sciences: Store SystemsSemiconductor: Advanced Packaging

• Leveraged Semiconductor Automationand Cryo engineer talent

• Created our own new designs

• Captured major market share globally

29

+65% Revenue Growth

2016: $40M

2019: ~$68M*

+100%Revenue Growth

2016: $20M

2019: ~$41M*



4. Foundation of Financial Discipline and Integration Excellence

Integration Excellence Example: GENEWIZ

• Powerful expertise adds value post-acquisition

✓ Making new investments they could not have done on their own

✓ Accelerating investments for expansion

– Lab Capacity

– China consolidation

✓ Synergies with Sample Management

30

Leadership& People Culture

OrganizationalStructure &Processes

Strategy &

Context

Integration

Excellence


A G E N D A


31






Laser Focused on Executing Consistent Four Point Strategy

32

Extend leadership in core markets1Employ value creation methodology for the rapid

growth of Semiconductor and Life Sciences2Drive margin expansion3Utilize balanced and disciplined

capital deployment4


Accelerating a Strong Track Record of Growth and Margin Expansion

* Non-GAAP financial measures – see reconciliation tables

** Based on mid-point of financial guidance provided on Aug. 1, 2019.33

$407

$632

2015 2018 2019 2022

$0.05

$0.64 $0.78**

2015 2018 2019 2022

$M

Demonstrating the value of our portfolio

34%

40%

42%**

2015 2018 2019 2022

16%CAGR

11 pts

72%CAGR

Revenue EPS*Gross Margin*

Target Target Target

>$1,100 ~ 45%

~$2.20

$778**


K E Y M E S S A G E S T O D AY

Two Strong Platforms, Significant Value Creation Potential

* Non-GAAP financial measures – see reconciliation tables. **Compared to 2018A

34

By 2022,

Revenue

> $1.1B

Operating Margin*

~19%

EPS* grows 3.5X** to

~$2.20

• Semiconductor: outperforming the market via high growth segments

• Life Sciences: profitable and high growth

Two strongbusinesses of similar scale

• Portfolio repositioned for faster growth

• Leverage for profitable growth

Significantlystronger financial

profile

• Multiple growth drivers in both segments

• Attractive ROIC

Executing value creation strategy

President and Chief Executive Officer... · 2011 2015 Today 2022 Genomics Sample Management Semiconductor ~$1.3B ~$5B ~$11B ~$15B ~10% ~13% ~3% 22 CAGR Today to 2022 Transformation

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