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
© 2019 Brooks Automation, Inc. • Proprietary Information
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%
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
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✓
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
A G E N D A
Capitalizing on Untapped Niche Opportunities
13
Value creation methodology
The future: significant potential ahead
Executing our consistent strategy
Two strong platforms with scale
© 2019 Brooks Automation, Inc. • Proprietary Information
Two Businesses of Scale – Now of Similar Size
14
Semiconductor Equipment Life Sciences
© 2019 Brooks Automation, Inc. • Proprietary Information
$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
© 2019 Brooks Automation, Inc. • Proprietary Information
($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
© 2019 Brooks Automation, Inc. • Proprietary Information
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.
© 2019 Brooks Automation, Inc. • Proprietary Information
Two Businesses of Scale – Now of Similar Size
18
Semiconductor Equipment Life Sciences
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
A G E N D A
Capitalizing on Untapped Niche Opportunities
23
Value creation methodology
The future: significant potential ahead
Executing our consistent strategy
Two strong platforms with scale
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
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
* Management’s internal estimate for Fiscal 2019
© 2019 Brooks Automation, Inc. • Proprietary Information
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
* Management’s internal estimate for Fiscal 2019
© 2019 Brooks Automation, Inc. • Proprietary Information
• 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*
* Management’s internal estimate for Fiscal 2019
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
A G E N D A
Capitalizing on Untapped Niche Opportunities
31
Value creation methodology
The future: significant potential ahead
Executing our consistent strategy
Two strong platforms with scale
© 2019 Brooks Automation, Inc. • Proprietary Information
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
© 2019 Brooks Automation, Inc. • Proprietary Information
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**
© 2019 Brooks Automation, Inc. • Proprietary Information
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