Mesa Laboratories, Inc. · NASDAQ:MLAB
Mesa Laboratories — Investor Presentation (December 2019)
26 slides from Mesa Laboratories's investor presentation, Dec 2, 2019
Slide 1: Investor Presentation
@MesaLabs Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information provided in this presentation contains forward-looking statements within the meaning ofthe federal securities laws. These forward-looking statements include, among thers, statements regarding our operating results, the success of our internal operating plans and
Slide 3: Introduction
Introduction MLAB (NASDAQ), public since 1984 Basics ) Headquartered in Denver, Colorado ~500 Employees = ~375 entering FY20 + ~ 115 GPT Diversified quality control instruments, What We Do ) consumables and services for niche applications in highly regulated markets Long term organic growth tailwind
Slide 4: Historical Financials — By the Numbers
Historical Financials — By the Numbers Revenues FY19 $103M 7% YoY Gross Margin FY19 59% tf 2% YoY AOI Margin FY19* 25% $ -1% YoY CAGR FY09-19 Revenues 16% 4% organic growth with low cyclicality 11% acquisition FY15-FY19 Growth Mix Bet os Oe Sustainability ) Renewed infrastructure and executive team
Slide 5: FY19 Snapshot
FY19 Snapshot B® =mixvs. Fis Rest of World 100% B Lcarexnwe teins. Asia Pacific Monitoring 0% Europe g Healthcare g Services 2 60% Instruments 5 ox Services 5 S = 40% g Northamerica © é Pharma & Sterilization & 20% eee Medical Device ome 0% Division Verticals Revenue Type Geography Channel High qual
Slide 6: Year Financial Performance
10 Year Financial Performance mmmIRevenues ===Adjusted Operating Income =mNet Income ++ Adjusted Net Income $120,000 $30,000 $100,000 $25,000 < B $80,000 $20,000, ie Go eee H $10,000 8 « $40,000 $5,000 bd ig 3 $20,000 fl ri - g $0 -$5,000 g 8 2 8 8 8 8 Misses EB EF €& & & E E EVE ME Long history of
Slide 7: Year Share Performance
10 Year Share Performance 250 20 200 wo A ao 8 £0 Hy = oo # 2 100 5 ® ao 2 a = oe le 20 § omen = MLAB — - 580500 Compounding financial performance = compounding share performance: Oct 2009-19=25% CAGR Defensive stock: S&P 500 Peak to Full Recovery (Apr 07-12) = 21% CAGR; S&P 500 = “0% @MesaLabs
Slide 8: The growth we continue to see is driven by our purpose
MesaLabs The growth we continue to see is driven by our purpose. Our purpose is to Protect the Vulnerable.
Slide 9: We're committed to protecting vulnerable people, processes and products
We’re committed to protecting vulnerable people, processes and products Endoscopy Invitro Fertilization Cancer & Autoimmune Environmental Cold chai overs st Instruments Instruments Monitoring inane Wachee), (DryCal) (Bch @MesaLabs
Slide 10: Instruments
Instruments Vertical Markets » » Dialysis Pharmaceutical Healthcare Services Food & Beverage Dialysis Calibration & Equipment / Process » Safety & Environmental Standards Validation Data Loggers Growth Drivers » Pharma manufacturing and dialysis Oo b » » Environmental regulations in z& high growth g
Slide 11: Sterilization & Disinfection Control (SDC)
Sterilization & Disinfection Control (SDC) Vertical Markets ' 8 » Pharmaceutical cee » Medical Device aso » Healthcare Services Spore Strip Chemical Cleaning Biological Indicators Indicators Verification Growth Drivers » Pharma and medical device growth 5 i | » Increased focus on = sterilization in
Slide 12: Cold Chain Monitoring
Cold Chain Monitoring Product Regulatory Vertical Markets Patient Performance Compliance » Pharmaceutical Safety Internal Controls » Healthcare Services » Blood Banks Growth Drivers » Recurring revenue from SaaS and new equipment » Increasing adoption in healthcare Continuous monitoring of the pharm
Slide 13: Cold Chain Packaging
Cold Chain Packaging Pre-Acquisition USA Expansion (pre 2Q16) (2Q16 to 4Q19) Smaller part of Infitrak, Cold Chain Monitoring acquisition * Greater Ontario focused footprint leveraging knowledge of Drug Distribution segment * Major USA expansion in process powering rapid growth * USA anchor customer
Slide 14: Growth via Acquisition
Growth via Acquisition BGI IBP HE irstruments Simicon HE Sterilization & Disinfection PCD [EEE Cold chain Monitoring ATS bata, 8 iopharmaceutical Development North Bat ‘Aes Bios Healthcare Suretorque +14 Int'l Distributors SGM Bit Freshloc DataTrace ex Point Six Wireless Nusonics Torqo , Amega Infit
Slide 15: Gyros Protein Technologies Strategic Rationale
Gyros Protein Technologies Strategic Rationale Attractive \ Highly differentiated leader serving the fast-growing Growth biopharmaceutical development market increasing Mesa’s overall organic growth potential Brings a talented global team with a strong track record of innovation and deep customer in
Slide 16: Gyros Protein Technologies Snapshot
Gyros Protein Technologies Snapshot 100% sia Poi eee : fF ~ $37-40M a Nov 2019 - Oct 2020 ces Revenues 60% >60%** wos | Gross Margin 20% exact >10% Anticipated Organic Revenues Growth 0% Product Verticals. Revenue Type Geography — Channel. Critical to quality products, serving attractive markets, so
Slide 17: Biopharmaceutical Development - Immunoassay
Biopharmaceutical Development - Immunoassay pa Boye Automated, microfluidic immunoassay platform that solves critical repeatability, turnaround time, and sample size needs in Biopharmaceutical Development @MesaLabs
Slide 18: Biopharmaceutical Development - Peptide Synthesis
Biopharmaceutical Development - Peptide Synthesis Automated, parallel production of multiple synthetic peptides. Used to research and develop peptide-based therapies - e.g. Insulin (diabetes), Oxytocin (final stage pregnancy), Vasopressin(water retention). @MesaLabs
Slide 19: Corporate Strategy
Corporate Strategy Niche quality control tools, consumables, and services Portfolio ) for highly regulated markets Stable, long term 5% - 7% organic revenues growth and high margins Niche business with application leadership in high quality Inorganic ) markets. Extend record of 10% - 15% long term g
Slide 20: Appendix
20 Appendix @MesaLabs
Slide 21: Financial Detail
Financial Detail ‘Resermes $96,179 $25,142 $24,865 $26,682 $26,446 ($203,135 $26,288 —— $54,619 $15,091 $14,877 $25,634 $15,614 $60,916 $16,139 a Bl ou eae om os (%Rev) 26% 2956 16% 28% 27% 25% 30% — Se ele ln fais neon ee *FY19 AOI and NI mets include $3,300,000 unusual charge for TCPA egal accrual
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Botan Thousonds) ‘Operating Income $2483 $476t $1138 «$1,320 $2,559 $ 9781 $5392 Amortization of intangible Assats 6972 18601824862 7.090 1.672 Stock-Based Compensation Expense 46n 9 990 os 78 az 268 Impairment loss on Goodtill and Long-Aived Assets 13819 3669440
Slide 23: The Mesa Way!
The Mesa Way! MEASURE WHAT MATTERS WHAT » Customer Driven Strategy » True North KPI's » Strategy Deployment » Enterprise Risk Management HOW __ » Customer-Centric Game Plan » Critical Few » Clear Direction Stretch Goals 23 EMPOWER, TEAMS » Cascade Objectives » Daily Management at Gemba » Initiative
Slide 24: Officers
Officers Gary Owens John Sakys Greg DiNoia Brian Archbold President and Chief Chief Financial Officer SVP - Commercial SVP ~ Continuous Improvement Executive Officer (oct 2012 present) (Nov 2017 — present) (lan 2018 ~ present) (Sep 2017 — present) Previously Previously Previously Previously Soroka e
Slide 25: Macro Growth Drivers
5 Macro Growth Drivers n & Cold Chain harmaceutical Monitoring Development Regulatory Vv Healthcare Vv v Wa w Safety & v Vv 7 Environmental mi High Growth Geographies v v Vv @MesaLabs
Slide 26: Gyros Protein Technologies Transaction Details
Gyros Protein Technologies Transaction Details Growth ) >10% anticipated mid-term core revenues and AOI* Potential / growth Expect high single digit AOI returns by year 5, AO! per share ROIC wee as accretive in year 1) Funding ) Cash on hand Strong value creation opportunity Excluding the impact of
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