Slide 1: Fourth Quarter and Full Year Fiscal 2023 Financial Results
Conference Call Fourth Quarter and Full Year Fiscal 2023 Financial Results November 13, 2023 1 © 2023 Azenta, Inc. • Proprietary Information
Slide 2: Safe Harbor Statement
Safe Harbor Statement “Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995; certain matters in this presentation, including forecasts of future demand and future Company performance, are forward-looking statements that are subject to risks and uncertainties that co
Slide 3: Significant action in support of transformation strategy to create shareholder value
Azenta has taken significant action in support of its transformation strategy to create shareholder value Key Q4’23 Updates • Q4’23 revenue growth of 2% organically YoY and 25% on a reported basis Strong Q4 & FY’23 Results and FY’24 • Continued profitability improvement and positive free cash flow G
Slide 4: Azenta's End-to-End Portfolio Provides Comprehensive Solutions
Azenta’s End-to-End Portfolio Provides Comprehensive Solutions Find Format Store / Manage Measure Inform Sample Consumables Storage, Genomics Data and Sourcing & Instruments Automation and Informatics and Analytical Drug Development / Sample / Logistics Services Physician Patient 4 © 2023 Azenta, In
Slide 5: Portfolio Positioned to Capitalize on Trends in Large and Growing Markets
Azenta’s Portfolio of Products & Services is Positioned to Capitalize on Trends in its Large and Growing Markets Quality Sample Novel Modalities Driving Trend Toward Demand for Automated Cell & Gene Therapy, Collections are Demand for Sample Outsourcing R&D Temperature Control the Next Frontier Esse
Slide 6: Track Record of Value Creation and Capabilities to Capture Growth
Track Record of Value Creation with the Right Capabilities to Capture Growth in the Near- and Long-Term Progress to Date Right Framework to Capture Growth Targeted Growth Opportunities Procure sample inventory and Portfolio addresses end- build a specimen biobank for Life sciences trailblazer, growi
Slide 7: Azenta Life Sciences Q4 & FY 2023 Financial Overview
Azenta Life Sciences Q4 & FY 2023 Financial Overview Continuing Operations – Quarter and Year Ended September 30, 2023 Q4’23 revenue of $172M, up 25% YtY and up 2% on an organic basis • Azenta organic growth excluding Consumables and Instruments (C&I) was 6% year over year • Adj. EBITDA of 4.6%, ref
Slide 8: Azenta Life Sciences Operating Performance
Azenta Life Sciences Operating Performance Continuing Operations – Quarter Ended September 30, 2023 $ millions, except EPS Q4’23 Revenue Growth (YtY) Non-GAAP Non-GAAP Q4'22 Q4'23 YtY FY'22 FY'23 YtY Revenue 138 172 25% 555 665 20% Q4 '2 2 Q4 '2 3 Y tY Gross profit 60 74 22% 263 291 11% Reported 138
Slide 9: Life Sciences Products Performance
Life Sciences Products Performance Quarter and Year Ended September 30, 2023 $ millions Products Revenue Growth (YtY) Total Products (including B Medical) Q4 '2 2 Q4 '2 3 Y tY Q4'22 Q4'23 YtY FY'22 FY'23 YtY Reported 48 82 70% Revenue 48 82 70% 199 305 53% FX 2 (4%) Gross profit 19 31 60% 90 124 38%
Slide 10: Life Sciences Services Performance
Life Sciences Services Performance Quarter and Year Ended September 30, 2023 Services Revenue Growth (YtY) Q4 '2 2 Q4 '2 3 Y tY $ millions Reported 89 90 1% Q4'22 Q4'23 YtY FY'22 FY'23 YtY FX 0 (0%) Ex F X 89 90 1% Revenue 89 90 1% 356 360 1% M&A - 0% Gross profit 41 43 4% 173 167 (3%) Organic 89 90
Slide 11: Summary Consolidated Balance Sheet
Summary Consolidated Balance Sheet Jun Sep $ millions 2023 2023 QtQ Cash, restricted cash, short term marketable securities 1,126 1,022 (104) Accounts receivable, net 163 157 (6) • $1.1B cash, cash equivalents, Inventories 142 128 (14) restricted cash and marketable Other current assets 80 112 32 se
Slide 12: Summary Consolidated Cash Flow
Summary Consolidated Cash Flow $ millions Q4'23 FY'23 Cash, restricted cash and marketable securities - Beginning 1,296 2,305 Net income 3 (14) Deferred income tax benefit (provision) (3) (28) • Free cash flow of $30M in Q4’23 Contingent consideration - fair value adjustments - (19) Depreciation & a
Slide 13: Moving to New Three Segment Structure Starting FY'24
Moving to New Three Segment Structure Starting FY’24 37% 1. Multiomics Gene Next Generation Sequencing Synthesis 46% ▪ Experience processing over 100 & Other Sample sample types, including 13% Repository Sanger Solutions 2. Sample Management Solutions proteomics solutions Sequencing 17% Sanger Seque
Slide 14: Fiscal Year 2024 Guidance
Fiscal Year 2024 Guidance 2024 Guidance November 13, 2023 Comments • Growth driven by sales execution, broadening use of channel partners, expanding Organic Growth: 5% to 8% geographic footprint, and innovation Revenue • Multiomics: +LSD to +MSD growth Revenue: $696M to $718M • Sample Management Sol
Slide 15: Intense focus on adj. EBITDA margin expansion
Intense focus on adj. EBITDA margin expansion through growing the core business and right sizing operations FY2024 Drives ~75% Increase in adjusted EBITDA 4.6% $10M adj. EBITDA 2.9% Margin adj. EBITDA Margin 1H’23 15 © 2023 Azenta, Inc. • Proprietary Information
Slide 16: Q1'24 Key Considerations
Q1’24 Key Considerations P&L Line Item Key Considerations • Multiomics & Sample Management Solutions (“SMS”): Combined +LSD year-over-year growth Revenue • B Medical: ~75% year-over-year decline forecasted due to timing of revenue • Overall, Q1 expected to decline mid-teens year-over-year • ~Breakev
Slide 17: Appendix
Appendix 17 © 2023 Azenta, Inc. • Proprietary Information
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Continuing Operations – Total Azenta $ millions, except EPS Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY22 FY23 Revenue 139.7 145.5 132.7 137.6 178.4 148.4 165.9 172.4 555.5 665.1 GAAP gross profit 67.0 70.8 59.6 58.1 73.9 53.2 68.0 68.0 255.6 26
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Continuing Operations – Segments $ millions, except EPS Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY22 FY23 Life Sciences Products Revenue 49.9 53.6 47.4 48.4 89.7 58.9 74.6 82.1 199.2 305.2 GAAP gross profit 22.7 26.3 21.0 19.1 33.0 14.3 27.2 26
Slide 20: Revenue and Gross Margin Quarterly Trend
Revenue and Gross Margin Quarterly Trend Continuing Operations Non GAAP Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY'22 FY'23 Genomics Revenue 63.9 65.0 59.4 62.7 61.1 62.2 63.8 61.1 250.9 248.3 Genomics Gross Margin 32.6 32.1 27.3 28.2 28.9 28.2 29.5 28.0 120.2 114.7 Genomics
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Continuing Operations – Genomics and SRS $ millions Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY22 FY23 Life Sciences Services- Genomics Revenue 63.9 65.0 59.4 62.7 61.1 62.2 63.8 61.1 250.9 248.3 GAAP gross profit 31.1 31.1 25.9 26.5 27.7 27.0 2
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Continuing Operations – B Medical and Products ex B Medical $ millions, except EPS Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY22 FY23 B Medical Revenue - - - - 41.8 15.1 26.8 29.4 - 113.1 GAAP gross profit - - - - 14.1 (1.3) 4.8 2.9 - 20.5 Gross
Slide 23: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Continuing Operations $ millions Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY22 FY23 Net income 43.3 2,119.9 (9.6) (20.8) (11.2) (4.9) (1.5) 3.4 2,132.9 (14.3) (Income) Loss from discontinued operations, net of tax (40.5) (2,121.7) 2
Slide 24: Calculation of Organic Revenue Excluding COVID
Calculation of Organic Revenue Excluding COVID Continuing Operations Growth Metrics $ millions Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Revenue 18% 12% 3% 0% 8% 28% 2% 25% 25% 20% Acquisitions/divestitures (2%) (1%) 0% (3%) (2%) (33%) (13%) (24%) (22%) (23%) Currency