Gsi Co.,ltd. · SAPSE:5579
Gsi Co.,ltd — CJS Securities 2012 Investor Conference
28 slides from Gsi Co.,ltd's conference presentation, Jan 10, 2012
Slide 1: CJS Securities 2012 Investor Conference
January 11, 2012 Exhibit 99.1 CJS Securities 2012 Investor Conference CJS Securities 2012 Investor Conference “New Ideas for the New Year” “New Ideas for the New Year” January 11, 2012 Exhibit 99.1
Slide 2: Factors affecting future performance and use of Non-GAAP financial measures
2 Factors affecting future performance… …and use of Non-GAAP financial measures The statements in this presentation that relate to guidance, future plans, business opportunities, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated wit
Slide 3: We are a leading supplier of precision motion and laser technology
We are a leading supplier… …of precision motion and laser technology 3 Note: Revenue is 2011E, based on financial guidance provided on November 10, 2011 Leading provider of precision laser, optical and motion control technology and semiconductor systems Founded in 1968, headquartered in Bedford, MA
Slide 4: Our aspirations are clear and achievable
Our aspirations… …are clear and achievable Focus growth efforts on building out key platforms (organic and M&A) Improve mix (growth, volatility) – more Medical, less Semiconductor Simplify footprint and infrastructure A leading provider of precision photonic and motion technologies for OEM’s in dema
Slide 5: We are on a journey towards our vision of being a focused, world class technology company
We are on a journey towards our vision… …of being a focused, world class technology company ~$480M* Low single digit ~$70M 33% systems 67% OEM <20 distinct P&L’s >30 sites >50% Semi <10% Medical Unrelated acquisitions Maximize margins ~$365M Mid single digit ~$65M 18% systems 72% OEM 3 focused group
Slide 6: We have three businesses with Precision Motion contributing the largest portion
We have three businesses… …with Precision Motion contributing the largest portion Laser Products Semiconductor Systems Precision Motion 6 Note: Percentages based on 3Q 2011 actual financials Laser Products Semiconductor Systems Revenue Breakdown Revenue Breakdown Precision Motion
Slide 7: We serve several major markets with Medical targeted for growth
We serve several major markets… …with Medical targeted for growth 7 Note: Percentages based on 3Q 2011 actual financials End Market Mix End Market Mix Semiconductor Semiconductor Semiconductor Medical Medical Medical Industrial Industrial Industrial Scientific Scientific Scientific
Slide 8: GSI has a strong global presence with significant reach into the Pacific Rim
GSI has a strong global presence… …with significant reach into the Pacific Rim Strong international presence; 66% of revenue from outside U.S. Production sites in the U.S., U.K., Germany and China Revenue by Geography FY2010 Mukilteo, WA Santa Clara, CA Oxnard, CA Chatsworth, CA Bedford, MA Lexingto
Slide 9: Our capabilities support our focus on OEM businesses
Over 1000 active OEM customers Existing penetration in over 100 major application areas Our capabilities… …support our focus on OEM businesses Sub-micron location sensing 3-axis scanning within 1 micron Spindles rotating at 250,000 RPM Femtosecond lasers Designed into state-of-the-art OEM systems in
Slide 10: We have strong franchises in the Precision Motion space
We have strong franchises… …in the Precision Motion space Galvanometers Scan Heads Lexington, MA Material Processing Marking Ophthalmology PCB Drilling Optical Encoders Bedford, MA Robotic Surgery DNA Sequencing Wire Bonding Disk Drives Air Bearing Spindles Poole, UK Suzhou, China PCB Drilling Semic
Slide 11: We have a strong laser offering focused on industrial and scientific markets
We have a strong laser offering… …focused on industrial and scientific markets LTM Revenue ~$133M Industrial Scientific Semi 10W to 400W Mukilteo, WA Marking, Engraving, Date Coding of non-metals 50W to 1kW Rugby, UK Metal cutting, welding, drilling High Speed/Power Santa Clara, CA Scientific Resear
Slide 12: We are investing for growth in several attractive platforms
We are investing for growth… …in several attractive platforms Beam delivery for lasers – market growth ~8% Leverage our #1 position in Galvanometers to enter Scan Head market (modules) Double addressable market up to ~$200M ASP goes from ~$750 to ~$2500 ~$25M revenue opportunity by 2015 ~$600M marke
Slide 13: Overall market conditions suggest challenging Q1 with moderate full-year growth
Overall market conditions… …suggest challenging Q1 with moderate full-year growth Solid growth in U.S. New technologies create opportunities Robotics Next Gen. DNA sequencing Europe potentially sluggish Significant Q4/Q1 downturn of > 30% Major customers reporting “bottoming out” has occurred Expect
Slide 14: Financial Overview
Financial Overview 14 Financial Overview
Slide 15: Solid revenue growth driven by economic recovery
Solid revenue growth driven by economic recovery… …with a strategy to drive high-single digit growth $254M $384M n/a n/a ($30.4M) ($45.7M) n/a n/a Semiconductor Adjustments* * 2009 and 2010 (in graph) exclude revenues Company recognized in its Semiconductor Systems segment that had been deferred fro
Slide 16: Business continues to generate solid profitability
Business continues to generate solid profitability… …with a roadmap to continued double-digit growth $23.4M $74.7M n/a n/a ($16.5M) ($20.0M) n/a n/a Semiconductor Adjustments* * 2009 and 2010 (in graph) exclude revenues and cost of revenues the Company recognized in its Semiconductor Systems segment
Slide 17: Demonstrated history of strong cash generation
Demonstrated history of strong cash generation… …on an accelerated path to a net cash position $63.3M $56.8M $50.7M ($146.7M) ($50.8M) ($22.5M) Net Debt* Leverage Ratios* * Non-GAAP financial measure 17 Total Cash & Total Cash & Cash Equivalent Cash Equivalent Total Debt / Adjusted EBITDA 30.3x 2.0x
Slide 18: Our strategy for Capital Deployment
Strengthen our strategic position Enhance our customer offering Strong growth prospects Innovation driven Create shareholder value above the alternatives Our strategy for Capital Deployment… Acquisition Criteria: Complementary technologies to existing business lines Photonic components & associated
Slide 19: We are establishing a continuous improvement culture
We are establishing a continuous improvement culture… …through formalized productivity programs / initiatives Current savings, with a goal of eliminating up to 12 facilities Future 19 Current 12 x 12 Integration and Realignment Program Target: Up to $5 million in annualized cost Future Operational E
Slide 20: Key Priorities for 2012
We have clear focus… …for success in 2012 Execute on 12 X 12 plan Build momentum on Growth Platforms Build pipeline of bolt-on acquisitions Finalize Strategic Review process Build on our core competencies Engage with investment community 20 Key Priorities for 2012 Key Priorities for 2012 • • Execute
Slide 21: GSIG offers a distinctive opportunity for shareholder value creation
Experienced new management team with demonstrated track record of value creation (GE, Honeywell, PerkinElmer, IBM, Millipore, Analog Devices, Boston Scientific, McKinsey, Bain) Unique technology position with capability in both lasers and related precision photonic technologies Positioned in attract
Slide 22: Questions?
Questions? Thank you for your interest in GSI ***** 22 Questions Thank you for your interest in GSI
Slide 23: Appendix
Appendix 23 Appendix
Slide 24: Safe Harbor and Forward-Looking Information
Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this presentation that do
Slide 25: Reconciliation of GAAP to Non-GAAP Financials and other Financial Information
GSI Group Reconciliation of GAAP to Non-GAAP Financials and other Financial Information In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including non-GAAP revenues, adjusted EBITDA, and net
Slide 26: Non-GAAP Revenue Reconciliation
GSI Group, Inc. Non-GAAP Revenue (in thousands of dollars) 2010 2009 GAAP revenue $ 383,516 $ 254,388 Semiconductor revenue adjustments (a) (45,722) (30,364) Non-GAAP revenue $ 337,794 $ 224,024 (a) The excluded items from revenues include revenues that had been deferred from customer orders shipped
Slide 27: Non-GAAP EBITDA Reconciliation
Non-GAAP EBITDA Reconciliation 27 Note: Year-to-Date (YTD) is defined as Q1 2011 through Q3 2011 actual reported results (a) The Company defines EBITDA, a non-GAAP financial measure, as the net income / (loss) attributable to GSI Group Inc. before deducting net interest expense, income taxes, deprec
Slide 28: Net Debt & Leverage Ratios
Net Debt & Leverage Ratios Net Debt and Leverage Ratios (in thousands of dollars, except ratio information) YTD2011 FY2010 FY2009 Debt ($73,107) ($107,575) ($210,000) Less: cash and cash equivalents 50,655 56,781 63,328 Net debt (a) ($22,452) ($50,794) ($146,672) Total Debt ($73,107) ($107,575) ($21