Gsi Co.,ltd. · SAPSE:5579
Gsi Co.,ltd — Investor Presentation (January 2013)
27 slides from Gsi Co.,ltd's investor presentation, Jan 15, 2013
Slide 1: Investor Presentation January 2013
January 2013 Exhibit 99.1 Investor Presentation Investor Presentation January 2013
Slide 2: Factors affecting future performance and use of Non-GAAP financial measures
Factors affecting future performance… …and use of Non-GAAP financial measures The statements in this presentation that relate to guidance, pro forma presentations, future plans, goals, business opportunities, events or performance are forward-looking statements that involve risks and uncertainties,
Slide 3: We are a leading supplier of precision motion and laser technology
We are a leading supplier… …of precision motion and laser technology Leading provider of precision laser, optical and motion control technology Founded in 1968, headquartered in Bedford, MA - major presence in North America, Europe, and Asia-Pacific $271M in revenue and $43M in Adjusted EBITDA (LTM
Slide 4: Our aspirations are clear and achievable
Our aspirations… Focus growth efforts on building out key platforms (organic and Improve mix (growth, volatility) – more less Semiconductor Simplify footprint and infrastructure Organic growth mid to high single digits >20% Adj. EBITDA margins Long term shareholder returns above peer average A leadi
Slide 5: At year end we were midstream in our transformation
At year end… …we were midstream in our transformation * pro forma Excel Technologies + GSI Group Inc results as reported in GSI Group Inc. 8K filed on 07/18/08 ** adjusted EBITDA, non-GAAP financial metric ***Continuing Operations 3Q 2012 LTM ~$480M* Low single digit ~$70M 33% systems 67% OEM <20 di
Slide 6: We have positioned the business for success in 2013
We have positioned the business… …for success in 2013 12 X 12 program substantially complete (India JV Pending) Laser Systems divested – Semiconductor Systems in process H2 2012 Restructuring Plan complete Growth Platforms delivered +$8M of incremental growth Significant talent upgrades across organ
Slide 7: We now have a strong foundation to achieve our strategic goals
We now have a strong foundation… …to achieve our strategic goals NDS Surgical Imaging NDS Surgical Imaging “A catalyst for realignment of our portfolio and a platform for “A catalyst for realignment of our portfolio and a platform for continued growth in the medical market.” continued growth in the
Slide 8: We sought additional capabilities to expand our medical market position
We sought additional capabilities… …to expand our medical market position • Gain overall scale & growth foundation • Obtain foundation for further growth • Leverage OEM sales channels • Play in highly differentiated segments • Strong bias for photonics • Seek leading market positions • Focus on surg
Slide 9: NDS is the global leader in surgical visualization
NDS is the global leader… …in surgical visualization Leading global player in surgical & radiology displays and related accessories #1 market position in surgical, #2 in radiology Based in San Jose, CA – 180 employees - privately owned (Riverside Capital) Revenue +$80M, Adjusted EBITDA margins in mi
Slide 10: A complete offering in surgical visualization
A complete offering… …in surgical visualization ConductOR –all-in-one platform, enabling video format conversion, image scaling, routing, switching and IP streaming. ScaleOR – medical-grade video converter/scaler, supporting analog and digital video in HD or SD formats Ultra high resolution (full HD
Slide 11: NDS is the leader in the premium segment of this ~$500M market
NDS is the leader in the premium segment… …of this ~$500M market Aging population - increased procedures Rising standard of care in developing world (China, Brazil, Turkey) Minimally Invasive Surgery (MIS) drives need for integrated OR’s New technologies (3D surgical cameras, LED and OLED displays)
Slide 12: NDS color correction technology provides a distinct advantage
NDS color correction technology… …provides a distinct advantage in the market Real-time pixel-by-pixel Color Response Correction Proprietary technology exclusive to NDS Displays conform to the BT.709 HDTV color standard Each display is fully factory characterized (unique to NDS) – no field calibrati
Slide 13: NDS provides a substantial platform for our medical growth strategy
NDS provides a substantial platform… …for our medical components growth strategy of medical revenue at affordable multiple ( less than 7x EBITDA) Transforms GSI to nearly – expect less cyclical revenue & earnings for further medical growth, including follow-on acquisitions with GSI medical applicati
Slide 14: The NDS acquisition a major milestone in our transformation
The NDS acquisition … …a major milestone in our transformation * pro forma Excel Technologies + GSI Group Inc results as reported in GSI Group Inc. 8K filed on 07/18/08 ** adjusted EBITDA, non-GAAP financial metric ~$480M* Low single digit ~$70M 33% systems 67% OEM <20 distinct P&L’s >30 sites >50%
Slide 15: GSI in 2013
15 GSI in 2013 GSI in 2013
Slide 16: Medical is now 38% of portfolio
Medical is now 38% of portfolio… …with Microelectronics down to 16% Laser * Precision 16 Scientific Medical Micro- electronics Industrial *Includes Beam delivery technologies 11% Medical is now 38% of portfolio… …with Microelectronics down to 16% Laser * Precision Scientific Medical Micro- electroni
Slide 17: We are investing for growth in our three major platforms
We are investing for growth… …in our three major 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 FY’12 growth forecast of ~30% - numerous new design wins ~$25M revenue opportun
Slide 18: We faced market challenges driven by semiconductor market and macro economy
We faced market challenges… …driven by semiconductor market and macro economy Prolonged downturn in semiconductor equipment market had significant impact - No demand recovery in 2H’12 - Divestitures processes impacted Organization bandwidth fully consumed with change initiatives Talent became a bott
Slide 19: NDS acquisition provides increased scale
NDS acquisition provides increased scale… …with conservative view of base business ~$270M $304M $286M $355-$365M 2010 Actual 2011 Actual 2012 Forecast 2013 Outlook w/ NDS NDS acquisition provides increased scale… …with conservative view of base business ~$270M $304M $286M Revenue Revenue Outlook Out
Slide 20: Base EBITDA growth from 2012 cost actions
Base EBITDA growth from 2012 cost actions… …with NDS adding ~$12M of EBITDA +$41M $56M $56M $55-$60M 2010 Actual 2011 Actual 2012 Forecast 2013 Outlook w/ NDS Base EBITDA growth from 2012 cost actions… …with NDS adding ~$12M of EBITDA +$41M $56M $56M Adjusted Adjusted EBITDA EBITDA Outlook Outlook $
Slide 21: Demonstrated history of strong cash generation
Demonstrated history of strong cash generation… …enables pursuit of strategic goals $108M $68M $48M $57M $55M $53M Total Debt Cash Balance ~$40M ~$108M *Estimated Proforma as of March 31, 201 3 * 2010 A 2011 A 3Q 2012 A Proforma Fcst w/ NDS ($50.8M) ($50.8M) ($13.2M) ($13.2M) $5.4M $5.4M ($68M) ($68
Slide 22: We are fully committed to delivering on our agenda for 2013
We are fully committed… …to delivering on our agenda for 2013 Integrate NDS and pursue opportunities Deliver on financial commitments in uncertain economy Finalize remaining divestiture Build momentum on Growth Platforms Operational Excellence and cash generation Continued focus on acquisition pipel
Slide 23: Appendix
23 Appendix Appendix
Slide 24: Safe Harbor and Forward Looking Information
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 state
Slide 25: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Use of Non-GAAP Financial Measures This press release includes a financial measure, Adjusted EBITDA, which is not a financial measure prepared in accordance with generally accepted accounting principles (“GAAP”). The Company defines Adjusted EBITDA as the net incom
Slide 26: Non-GAAP EBITDA Reconciliation
Last Twelve Months Ended Twelve Months Ended September 28, 2012 December 31, 2011 December 31, 2010 (in thousands of dollars) Income from operations (GAAP) $ 15,495 $ 35,848 $ 36,027 Depreciation and amortization 13,618 14,467 14,687 Share-based compensation 4,237 3,276 1,871 Restructuring, restatem
Slide 27: Net Debt & Leverage Ratios
Net Debt & Leverage Ratios Non-GAAP Net Debt and Leverage Ratios Twelve Months Ended Twelve Months Ended September 28, 2012 December 31, 2011 December 31, 2010 (in thousands of dollars, except ratio information) Debt ($47,500) ($68,000) ($107,575) Less: cash and cash equivalents 52,863 54,835 56,781