Slide 1: Annual and Special Meeting of Shareholders
TSX: ATA 08.13.2020 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
Slide 2: David McAusland, Chairman of the Board
DAVID McAUSLAND Chairman of the Board
Slide 3: Presenters
Presenters Andrew Hider Ryan McLeod Stewart McCuaig Annual Shareholders’ Meeting – August 2020 3
Slide 4: Progress Report
Progress Report 10 Year Revenue 10 Year Adjusted EPS EXPAND GROW 4
Slide 5: ABM Strategy
Strategy ABM
Slide 6: Annual and Special Meeting of Shareholders
TSX: ATA 08.13.2020 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
Slide 7: Welcome to Dave Cummings
Welcome to Dave Cummings • EVP, Chief Digital Officer, Finning International (world’s largest Cat dealership) • Leads global technology, operations excellence, marketing and pricing teams, architect of Finning Digital division • Multi-national and multi-disciplined career
Slide 8: Thank You to Neil Arnold
Thank You to Neil Arnold • 13 years of service as a Director • Served with distinction as Chair of Audit and Finance Committee, member of HR and Corporate Governance and Nominating Committees and from 2007-2011, Chair of ATS
Slide 9: Board of Director Nominees
Board of Director Nominees Dave Cummings Kirsten Lange Philip Whitehead Joanne Ferstman Michael Martino Andrew Hider David McAusland
Slide 10: Environmental, Social Governance
Environmental, Social Governance EXPAND GROW 10
Slide 11: Agenda
Agenda 1. Notice 2. Presentation of Financial Statements 3. Election of Directors 4. Re-appointment of Auditors 5. Name Change Resolution 6. Business Termination 7. Management’s Remarks 8. Question Period Annual and Special Shareholders’ Meeting – August 2020 11
Slide 12: Forward-Looking Statements
Forward-Looking Statements Notice to Reader: This presentation and the oral statements made during this meeting contain certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements invo
Slide 13: Andrew Hider, Chief Executive Officer
ANDREW HIDER Chief Executive Officer
Slide 14: Strategic Developments
Strategic Developments Life Sciences Innovation Created Revenue growth of Illuminate Manufacturing 27% YoY Intelligence Access to New Markets FY 20 Revenue Acquired MARCO Limited • Productivity improvement 7% Life sciences experts for food, 12% nutraceuticals and Transportation cosmetics Process Aut
Slide 15: ATS at a Glance
ATS at a Glance ATA TSX ~$1.4B Revenue (TTM) 4,400+ Employees 22 Facilities +50 Offices 21 Countries 15 A decentralized global technology and automation solutions provider
Slide 16: What We Do
What We Do Enterprise Systems Machines C o nt ra c t Va l u e Innovative Products Services & Digitization Degree of Customization Pre-Automation Product/Automation/Integration Post-Automation * Discovery & analysis * Custom automation * Installation * Concept development * Machine build * Commission
Slide 17: Our Markets
Our Markets Life Sciences Mobility Energy Consumer Market Size $10B $11B $16B $5B Medical Devices Personal Care EV/Hybrid Pharmaceuticals Nuclear Cosmetics Focus areas Radiopharmaceuticals ICE Solar Food & Beverage Aerospace Biotechnology Warehouse Automation F20 Revenues $770M $385M $102M $173M Exp
Slide 18: Our Customers
Our Customers Life Sciences Transportation Biotechnology Medical Devices Radiopharmaceuticals Pharmaceuticals EV/Hybrid Aerospace ICE Revenue by Market Consumer Energy Personal Care Cosmetics Food & Beverage Warehousing Solar Nuclear 18
Slide 19: People Are Our Number One Asset
People Are Our Number One Asset Our winning culture enables employee: Engineers/Designers ▪ Engagement ▪ Ownership Employees Trades/Assembly ▪ Accountability ▪ Development by Skill Project Managers ▪ Retention Other ▪ Passion to succeed 19 A passion for winning with continuous improvement at our cor
Slide 20: ATS Strategy
ATS Strategy EXPAND Broaden our Reach EXPAND GROW Grow the Core GROW Build the Foundation BUILD ATS Business Model 20 Driving sustainable long-term shareholder value
Slide 21: The ATS Business Model
The ATS Business Model ABM STRENGTHEN OUR CORE Customer DELIVER GROWTH Customer PURSUIT OF EXCELLENCE Long Term First Success Value Performance Strategic Planning Management Organization/Talent Process Development Value Drivers Goal Deployment Monthly Business Reviews KPI’s Continuous Improvement Da
Slide 22: Targeting Value Creation in Attractive Markets
The ATS M&A Playbook What We Look For Recent Acquisitions End Market Exposure ■ Growth orientated Targeting Value Creation in Attractive Markets Attractive ■ Low cyclicality ✓ Food (regulated) Markets DEC 2019 ■ Regulated spaces ■ Differentiated technology ■ Innovative products Strategic Value ■ Nic
Slide 23: Summary
Summary Attractive Markets ATS 40+ years TSX: ATA 26 years 23
Slide 24: Ryan McLeod, Chief Financial Officer
RYAN MCLEOD Chief Financial Officer
Slide 25: Our Value Drivers
Our 8 Value Drivers Financial: EBIT Working Bookings Revenue Capital Margin Customer: People: On-Time Internal Fill Employee Quality Delivery Rate Turnover Continuous Improvement 25 Standardized performance measurement across all business units
Slide 26: Financial Performance
Financial Performance Order Bookings (C$ millions) Revenues (C$ millions) +9.0% CAGR +12.2% CAGR 1,408.0 1,468.0 1,429.7 1,253.6 1,134.0 1,182.0 1,114.9 +14.0% +4.3% 1,010.9 YoY YoY 2017 2018 2019 2020 2017 2018 2019 2020 Adjusted EBIT (C$ millions) Working Capital as a % of Revenues +17.5% CAGR 157
Slide 27: Order Backlog
Order Backlog Order Backlog (C$ millions) +14.0% +10.2% YoY 942 904 YoY 746 681 +4.3% +8.2% YoY YoY 2017 2018 2019 2020 27 A continuous improvement mindset
Slide 28: Capital Structure
Capital Structure Liquidity (C$ millions) Historical Leverage (Net Debt/Adj. EBITDA1) 2x-2.5x Target Range $1,000 Cash (3x-4x for Acquisitions) Available Credit 330.1 2.0x $800 286.7 224.5 1.6x 1.6x $600 358.6 1.2x 0.8x 0.8x $400 $639 $656 $633 0.4x 0.4x $200 $377 0.0x -0.1x $0 -0.4x 2017 2018 2019
Slide 29: Annual and Special Meeting of Shareholders
ATS AUTOMATION AUGUST 15, 2019 TSX: ATA 08.13.2020 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
Slide 30: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures Notice to reader: Non-IFRS measures and additional IFRS measures Throughout this presentation management uses certain non-IFRS measures to evaluate the performance of the Company. The terms “operating margin”, “EBITDA”, “EBITDA margin”,
Slide 31: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures Measure (C$ millions) F2017 F2018 F2019 F2020 Measure (C$) F2017 F2018 F2019 F2020 Adjusted EBITDA 111.7 133.3 161.9 195.1 Basic earnings per share 0.38 0.50 0.76 0.57 Restructuring charges 2.3 11.2 - 26.6 Restructuring charges 0.03 0.12
Slide 32: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures Measure (C$ millions) F2017 F2018 F2019 F2020 Measure (C$ millions) F2017 F2018 F2019 F2020 Adjusted EBIT 97.1 117.3 142.8 157.4 Accounts receivable 166.1 213.0 222.2 294.8 Restructuring charges 2.3 11.2 - 26.6 Net contract assets 48.2 6