Novanta Inc. · NASDAQ:NOVT
Novanta — Investor Presentation (January 2018)
22 slides from Novanta's investor presentation, Jan 9, 2018
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 2018 Matthijs Glastra, Chief Executive Officer 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, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with business and economic co
Slide 3: Company Overview: Leader in Mission Critical Technologies
+$100M in Adjusted EBITDA +$1.54 non-GAAP EPS +$500M Annual Revenue with 60% Outside the US $3.5B Addressable Market with 5%–7% CAGR COMPANY OVERVIEW $ Note: Revenue, Adjusted EBITDA and Non-GAAP EPS figures represent full –year guidance provided on November 1, 2017. The Company neither updates nor
Slide 4: The Novanta Transformation
SCALE UP Double Annual Revenue to $750M STRENGTHEN CORE Emphasis on Medical M&A Invest for Organic Growth DRIVE PERFORMANCE Divested 40% of Portfolio and hired new team The Novanta Transformation Source: STRATEGIC DIRECTION AND PORTFOLIO RE-ALIGNMENT GROWTH INVESTMENTS ACCELERATED GROWTH AND OUTPERF
Slide 5: Leader in Intelligent Mission Critical and Enabling Technologies
Leader in Intelligent Mission Critical and Enabling Technologies 2020 STRATEGIC DIRECTION 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 Del
Slide 6: Why Invest in Novanta?
WHY INVEST IN NOVANTA? EXPANDING MARKET REACH Product Innovation Increasing Content Global Presence PROFITABLE LEADERSHIP IN SECULAR GROWTH MARKETS Proprietary Technologies “Sticky” and Highly Engineered Solutions STRATEGIC M&A Disciplined and Cash Returns-Focused DIVERSIFIED BUSINESS MODEL Balanced
Slide 7: Culture of Innovation With Deep Proprietary Technical Competencies
Novanta Has A Culture Of Innovation With Deep Proprietary Technical Competencies >375 Engineers ~9% Revenue Invested in R&D +400 Patents
Slide 8: Playing in Attractive Growth Markets
51% MEDICAL 49% ADVANCED INDUSTRIAL Material Processing Metrology Robots and Automation Lab / Life Science Equipment Critical Care Equipment Surgical and Treatment Equipment Minimally Invasive Surgery Key Application Segments Served Playing in Attractive Growth Markets
Slide 9: Additive Manufacturing
49% ADVANCED INDUSTRIAL Playing in Attractive Growth Markets ADDITIVE MANUFACTURING +$5 Billion Systems Market Growing +20% CAGR Enabling volume production of complex parts in aerospace, medical and automotive Material Processing Metrology Robots and Automation
Slide 10: Precision Robotics
49% ADVANCED INDUSTRIAL Material Processing Metrology Robots and Automation Playing in Attractive Growth Markets PRECISION ROBOTICS Rising and harmonized labor costs driving productivity pressures solved through robotics Robots already an economically viable alternative to human labor in many indust
Slide 11: Mobile Device Trends; Impact on Manufacturing Component Count
Mobile Device Trends; Impact on Manufacturing Component Count 100 5-7x 700 (1) Sensors and passive components for display, power management, RF/cellular, NFC, etc. Rapid increase in smart components(1) and flexible circuitry in mobile devices 30%+ The Challenge Rapid throughput, precision and capaci
Slide 12: DNA Sequencing
Playing in Attractive Growth Markets DNA SEQUENCING $28 Billion Systems Market Growing +15% CAGR Clinical Acceptance and Adoption Accelerating through New Applications 51% MEDICAL Lab / Life Science Equipment Critical Care Equipment Surgical and Treatment Equipment Minimally Invasive Surgery
Slide 13: Endoscopy & Robotic Surgery
Playing in Attractive Growth Markets ENDOSCOPY & ROBOTIC SURGERY $20B system market, growing at mid to high single digit rates Conversion from open to minimally invasive procedures Long term 8-10% annual procedure growth 51% MEDICAL Lab / Life Science Equipment Critical Care Equipment Surgical and T
Slide 14: Novanta Operating Groups
Novanta Operating Groups 40% Vision 40% PHOTONICS 20% Precision Motion (Pro Forma for Completed Acquisitions) Laser beam steering Intelligent laser and beam delivery subsystems CO2 lasers for fine material processing Detection & Analysis RFID and Machine Vision Minimally Invasive Surgery Insufflator
Slide 15: Novanta Operating Model
Novanta Operating Model Strategic Re-investment of Cash Team and Organization Development Owner and Continuous Improvement Mindset Differentiated OEM Business Model Mission critical / application specific solutions Customer platforms with ~10 year life cycles Accountability and velocity through auto
Slide 16: Driving Cash Flow Returns
Driving Cash Flow Returns *Defined as Inventory, Accounts Receivable and Accounts Payable ** Property, plant and equipment ROIC After-Tax Profit / Tangible Assets (*NWC + **PP&E) ~4% Net Productivity (or +$7 million) per year 15% of sales by 2020 Net Working Capital
Slide 17: Delivering Consistent Financial Results
Delivering Consistent Financial Results Adjusted EBITDA Adjusted Revenue *Adjusted Revenue, Adjusted EBITDA & Adjusted EPS are non-GAAP measures. The reconciliation to our most comparable GAAP measures is provided in the accompanying appendix. ** The company neither updates nor confirms 2017 Outlook
Slide 18: About Novanta
About Novanta Novanta is a leading global supplier of core technology solutions that give healthcare and advanced industrial original equipment manufacturers (“OEMs”) a competitive advantage. We combine deep proprietary expertise in photonics, vision, and precision motion technologies with a proven
Slide 19: Appendix
APPENDIX NASDAQ: NOVT
Slide 20: 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 21: 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 September 29, 2017 ADJUSTED REVENUE (in thousands of dollars) Revenue (GAAP) $243,796 $316,910 $364,706 $373,598 $384,758 $374,372 JK Lasers divesti
Slide 22: Adjusted Diluted EPS
ADJUSTED DILUTED EPS Twelve Months Ended Nine Months Ended December 31, 2012* December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 September 29, 2017 (in thousands of dollars or shares, except per share amounts) Net income (loss) attributable to Novanta Inc., $22,474 $9,977 $(16,9