Novanta Inc. · NASDAQ:NOVT
Novanta — Investor Presentation (January 2019)
19 slides from Novanta's investor presentation, Jan 9, 2019
Slide 1: A Trusted Technology Partner to Medical and Advanced Technology Equipment Manufacturers
A Trusted Technology Partner to Medical and Advanced Technology Equipment Manufacturers Nasdaq: NOVT January 2019 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements in this presentation that relate to guidance, pro forma presentations, future plans, goals, business opportunities, and future events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with business and
Slide 3: Company Overview: Leader in Mission Critical Technologies
Note: Revenue, Adjusted EBITDA and Adjusted Diluted EPS figures are based on the range for 2019 full–year outlook. Note: Adjusted EBITDA & Adjusted Diluted EPS are Non-GAAP measures. See explanations for use of non-GAAP measures in the appendix. +$131M in adjusted EBITDA +$2.30 adjusted diluted EPS
Slide 4: Novanta Operating Model
High Performance Growth Culture Novanta Operating Model DIFFERENTIATED OEM Business Model Focus on Cash Returns Highly engineered “sticky” solutions based on proprietary technology Imbedded in ~10 year customer platforms Diversified across +40 end- market applications Novanta Growth System: operatio
Slide 5: Value Creation Approach
Value Creation Approach Multiple drivers FOCUS ON HIGH GROWTH MARKETS Niche leadership in secular growth markets Balanced across multiple end markets DRIVE CONSISTENT ORGANIC GROWTH Product innovation Global presence Increasing content with OEMs EXECUTE ON VALUE-CREATING M&A Disciplined and cash ret
Slide 6: Novanta Operating Groups and Businesses
Novanta Operating Groups and Businesses 40% Vision 40% PHOTONICS 20% Precision Motion Galvanometer Optical scanners Scanhead solutions Visible CW lasers Laser beam delivery sub-systems Low-power CO2 lasers for fine material processing Detection & Analysis Minimally Invasive Surgery RFID, barcode sca
Slide 7: Drive Consistent Organic Growth
Drive Consistent Organic Growth Leverage Growth Capabilities Product Innovation +400 engineers ~9% of revenue invested in R&D +400 Patents Global Presence Application & engineering focused salesforce in key local markets Opportunity for deepening presence outside the US Global manufacturing & global
Slide 8: Focus on High Growth Markets
Focus on High Growth Markets Industry 4.0: Factory of the Future Medical: VALUE BASED HEALTHCARE Key Secular Growth Drivers Factory floor and warehouse automation High precision production technologies Quality control & characterization Personalized medicine Lower costs with better outcomes Greater
Slide 9: How We Win in Attractive End Markets: Robotics
How We Win in Attractive End Markets +$17 Billion Systems Market Growing between 15%-25% CAGR The share of manufacturing tasks performed by robots is expected to rise from 10% to 25% by 20251 Precision Robotics Novanta Solution Highest accuracy, smallest form factor adjacent motor and encoder compon
Slide 10: How We Win in Attractive End Markets: DNA Sequencing
How We Win in Attractive End Markets $28 billion systems market +8% growth market Clinical acceptance and adoption accelerating through new applications Critical need for ultra-precise photonics solutions that can handle high throughput of samples DNA Sequencing Novanta Solution Combine light source
Slide 11: Execute on Value-Creating M&A
Identify Market Opportunities with Secular Growth Drivers Execute on Value-Creating M&A Driving double-digit reported growth Businesses with high growth & high cash returns Capital deployed to high ROIC opportunities New technologies that drive content & sub-system growth
Slide 12: Drive Cash Flow Returns
Drive Cash Flow Returns * After-Tax Profit is a non-GAAP metric, which excludes depreciation and amortization costs ** Defined as Inventory, Accounts Receivable and Accounts Payable *** Property, plant and equipment, excluding capital leases Cash Return on Investment After-Tax Profit*/Tangible Asset
Slide 13: Deliver Consistent Financial Results
Deliver Consistent Financial Results Note: Adjusted Revenue, Adjusted EBITDA & Adjusted Diluted EPS are non-GAAP measures. See explanations for use of non-GAAP measures in the appendix. Adjusted Revenue Adjusted EBITDA Adjusted diluted EPS $645M–$655M $225M +16% CAGR $131M–$135M $42M +18% CAGR $2.30
Slide 14: 2020 Strategic Direction
2020 Strategic Direction Leader in intelligent mission critical and enabling technologies 1 Breakthrough Scale Double annual revenue to $750M Consistent Growth 5–7% organic growth and +50% of revenue in medical markets Global Market Leadership “Top 2” share position globally Superior Profitability D
Slide 15: About Novanta
About Novanta Novanta is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers (“OEMs”) a competitive advantage. We combine deep proprietary technology expertise and competencies in photonics, vision, and precision motion wi
Slide 16: Appendix
Source APPENDIX Nasdaq: NOVT
Slide 17: Use of Non-GAAP
Use of Non-GAAP The non-GAAP financial measures used in this presentation are non-GAAP Adjusted Revenue, Adjusted EBITDA, and Adjusted Diluted EPS from continuing operations. The Company believes that these non-GAAP financial measures provide useful and supplementary information to investors regardi
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Twelve Months Ended Nine Months Ended December 31, 2012 December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 September 28, 2018 ADJUSTED REVENUE (in thousands of dollars) Revenue (GAAP) $243,796 $316,910 $364,706 $373,598 $384,758 $521,290
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation *Adjusted Diluted EPS was not updated for the Scientific Lasers divestiture. Management determined that revising the Adjusted Diluted EPS figures would not have resulted in a material change. ADJUSTED DILUTED EARNINGS PER SHARE Twelve Months Ended Nine Months Ended December 3