Ats Corporation · TSX:ATS
Ats — Investor Presentation (August 2021)
22 slides from Ats's investor presentation, Aug 11, 2021
Slide 1: Investor Presentation August 2021
Investor Presentation August 2021
Slide 2: Forward Looking Statements & Non-IFRS Measures
Forward Looking Statements & Non-IFRS Measures 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-loo
Slide 3: ATS at a Glance
ATS at a Glance ATA ~C$3.4bn TSX Mkt. Cap1 5,000+ C$1.6bn Employees Revenue (TTM) 28 C$239mm Facilities Adj. EBITDA (TTM) 50+ 14.8% Offices Adj. EBITDA Margin (TTM) 22 1.7x Countries Net Leverage 9.1% 6.2% 15.8% v21 4-yr Rev. CAGR 4-yr Organic Rev. CAGR 4-yr Adj. EBITDA CAGR ¹ As of Aug 4, 2021 3 A
Slide 4: What We Do
What We Do ATS Brands Automation & Integration Services Products & Components Solutions 10% of Revenue 60% of Revenue 30% of Revenue Front-end design & analysis, ATS developed products & Standalone machines, after-market services components (hardware / complete systems & (retooling / retrofitting, D
Slide 5: Large Total Addressable Market, with Attractive Long Term Secular Trends
Large Total Addressable Market, with Attractive Long Term Secular Trends Strategically Positioned in Attractive Markets Levered to Positive Secular Trends F21 Sales LT Market Market Size¹ (C$ mm) Growth¹ Focus Areas Life Sciences ■ Medical Devices ■ Pharmaceuticals De-risking of Manufacturing $10bn
Slide 6: Diversified Customer Base
Diversified Customer Base Food & Beverage Fresh Produce Beer and Other Beverages Dairy 22% Revenue by Life Sciences 45% Market Transportation Medical Devices Radiopharmaceuticals (YTD F2022) 15% EV/Hybrid Chemicals Pharmaceuticals Automotive Aerospace 12% 6% Energy Consumer Nuclear Warehouse Automat
Slide 7: Application of ATS Business Model (ABM) Drives Innovation and Operating Improvement
Application of ATS Business Model (ABM) Drives Innovation and Operating Improvement STRENGTHEN OUR DELIVER GROWTH PURSUIT OF CORE EXCELLENCE Customer Customer Long Term First Success Value Performance Organization/Talent Strategic Planning Management Development Process Goal Deployment Value Drivers
Slide 8: Application of ATS Business Model (ABM) Drives Innovation and Operating Improvement
Application of ATS Business Model (ABM) Drives Innovation and Operating Improvement The 8 Value Drivers Financial: EBIT Working Bookings Revenue Capital Margin Customer: People: On-Time Internal Fill Employee Quality Delivery Rate Turnover Continuous Improvement 8 Standardized performance measuremen
Slide 9: Expanding Presence in Strategic Core Markets
Expanding Presence in Strategic Core Markets Attractive Markets Barriers to Entry: Market Dynamics: ▪ Regulated environments ▪ Life Sciences: demographics, new treatments, Life Sciences Food ▪ Technologically intense new ailments, disposables ▪ Complex processes ▪ Food: government regs, quality, dem
Slide 10: Deliberate Portfolio Transformation towards High Growth and Low Cyclicality End Markets
Deliberate Portfolio Transformation towards High Growth and Low Cyclicality End Markets Q1 F2022 6% 12% 45% F2018 15% $511 12% F2016 14% 47% 22% 7% $1,115 F2012 15% 42% 27% Life Sciences 13% 33% $1,039 Food & Beverage 13% $595 Transportation 36% Consumer 41% Energy ATS Revenue Portfolio Evolution (C
Slide 11: Targeting End Markets with Favourable Tailwinds
Targeting End Markets with Favourable Tailwinds Life Sciences – 45% of YTD F22 sales Transportation – 15% of YTD F22 sales Trends / Opportunities Trends / Opportunities ■ Favorable demographics ■ EV shift (75% of ATS’ Transport business is levered to EV) ■ Robust new product pipeline ■ Record number
Slide 12: Capital Allocation Focused on Expanding Positions in Regulated Markets
Capital Allocation Focused on Expanding Positions in Regulated Markets & Compounding Growth Through M&A What We Look For Recent Acquisitions End Market Exposure ■ Growth orientated Targeting Value Creation in Attractive Markets Attractive ■ Low cyclicality Markets ■ Regulated spaces Acquired: Jun 20
Slide 13: M&A Success Story
M&A Success Story – Background: Acquisition Rationale: ▪ Acquired in Feb 2019 ▪ New & highly complementary technological capabilities ▪ Leading manufacturer of shielding equipment ▪ Comecer – Strong in isolation; ATS – Strong in automation for radio-pharma & aseptic production ▪ Entry into the regul
Slide 14: Recent Acquisition of CFT is the Next Step in Executing ATS' M&A Strategy
Recent Acquisition of CFT is the Next Step in Executing ATS’ M&A Strategy ▪ CFT Group is a global supplier of processing and packaging ATS Innovation Centre automation equipment ▪ Strongly positioned in attractive fresh produce sorting, processing, Advisory Council and packaging niches oversight ▪ A
Slide 15: CFT Overview
CFT Overview Business Overview Attractive Revenue Profile ▪ Established in 1945 and based in Parma, Italy Figures in Millions €254 Aftermarket ▪ Global supplier of processing and packaging equipment to €226 20% Single Machines €209 the Food & Beverage industry €189 30% €170 ▪ Leading brands in attra
Slide 16: Compelling Strategic Rationale
Compelling Strategic Rationale Strategic Rationale Selected Synergy Opportunities ▪ Platform acquisition into attractive Food & Beverage ATS automation expertise market Material to accelerate CFT's Handling ▪ Technological leadership in niche market areas robotics development ▪ 140 patents ▪ Access
Slide 17: On the Move to Higher Value and Higher Growth
On the Move to Higher Value and Higher Growth 2013 Revenue Profile (1) 2016 Revenue Profile (1) ATS Pro-Forma Today (1) Figures in C$ mm Figures in C$ mm Figures in C$ mm Energy Energy $47 Food & Beverage $174 $420 Consumer Life Sciences $92 $415 Life Sciences Consumer Life Sciences $685 $138 $1,011
Slide 18: Strong Track Record of Revenue Growth and Margin Expansion, with Low Capex Requirements
Strong Track Record of Revenue Growth and Margin Expansion, with Low Capex Requirements Revenues (C$ mm) Order Bookings (C$ mm) $2,000 $2,000 9.4% CAGR $1,800 9.1% CAGR $1,626 $1,468 $1,600 $1,430 $1,408 $1,430 $1,500 $1,400 $1,254 $1,182 $1,200 $1,115 $1,134 $1,011 $1,000 $1,000 $800 $637 $600 $511
Slide 19: Robust FCF Generation and Strong Working Capital Management
Robust FCF Generation and Strong Working Capital Management Working Capital as a % of Revenues Cumulative FCF Since 20171 (C$ mm) 20% $400 $382 $348 Target Range of <15% of Sales $350 15% $300 12.3% $250 $230 10% $194 8.0% 8.3% $200 7.1% $144 6.0% 5.4% $150 $110 5% $100 $50 0% $0 2017 2018 2019 2020
Slide 20: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures Notice to reader: Non-IFRS measures and additional IFRS measures Throughout this presentation management uses certain non-IFRS measures to evaluate the performance of the Company. The terms “adjusted EBITDA”, “adjusted EBITDA margin”, “n
Slide 21: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures (C$ mm) 2017 F2018 F2019 F2020 F2021 Q1 Q1 (C$ mm) F2017 F2018 F2019 F2020 F2021 YTD F2022 F2021 F2022 Adjusted EBITDA 111.7 133.3 161.9 195.1 200.7 77.9 39.2 Cash and cash equivalents 286.7 330.2 224.5 358.6 187.5 216.4 Restructuring ch
Slide 22: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures Measure (C$ mm) F2017 F2018 F2019 F2020 F2021 Q1 Measure (C$ mm) F2017 F2018 F2019 F2020 F2021 Q1 F2022 F2022 Accounts receivable 166.1 213.0 222.2 294.8 294.1 437.9 Cash flows provided by 127.9 59.7 127.6 20.3 185.2 48.4 Net contract as