Novanta Inc. · NASDAQ:NOVT
Novanta — William Blair 44th Annual Growth Stock Conference 2024
19 slides from Novanta's conference presentation, Jun 4, 2024
Slide 1: A Trusted Technology Partner
@ Novanta A Trusted Technology Partner
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in thi
Slide 3: A Trusted, Sole-Sourced Technology Partner to Leading Global OEMs
A Trusted, Sole-Sourced Technology +$975M Partner to Leading Global OEMs Revenue ~50% outside of the US We enable productivity improvement in healthcare and industrial markets with secular growth APPLICATION AREAS +$215M MEDICAL ADVANCED INDUSTRIAL Adjusted EBITDA +22% of sales Medical Device Roboti
Slide 4: Our Strategy
Our Strategy Win in High Asset light Growth Segments Growth Returns business model RE V E N U E CA S H F LO W Sticky business model Allocate based on with winning OEMs cash-on-cash return TAM expansion Expand gross through Innovation margins and and Subsystems improve cash flow Cash Accretive Acquis
Slide 5: The Novanta Transformation Journey
The Novanta Transformation Journey ~$1.1B 20 Capital deployed transactions for M&A ~$880M ~3.5X Revenue Growth ~45% Vitality Index Single Double Digit digits % of sales ~$240M ~55% ~90% ~10% Subsystem Sales 2012 Sales 2023 Sales Single ~30% of sales Medical Advanced Industrial digits CONFIDENTIAL AN
Slide 6: Precision Medicine and Manufacturing
Precision Medicine and Manufacturing SEGMENT OVERVIEW KEY METRICS KEY APPLICATIONS KEY TECHNOLOGIES SUBSYSTEMS ~$283M REVENUE Medical 50% Advanced LASER-BASED DNA ADJUSTED GM% Industrial MATERIAL SEQUENCE Optical Scan Heads PROCESSING DECODING Light Engine 7% COMPONENTS REVENUE CAGR SINCE 2016 MACRO
Slide 7: Subsystem Example: Intelligent Laser Beam Steering
Subsystem Example: HIGH-SINGLE-DIGIT Intelligent Laser Beam Steering LONG-TERM MARKET GROWTH RATE Never before possible throughput, precision and miniaturization Increasing $ content and stickiness with customers, through intelligent subsystem products EXAMPLE APPLICATIONS: LASER ADDITIVE MANUFACTUR
Slide 8: Robotics and Automation
Robotics and Automation SEGMENT OVERVIEW KEY METRICS KEY APPLICATIONS KEY TECHNOLOGIES SUBSYSTEMS ~$273M REVENUE Medical 50% Advanced ROBOTICS AND ROBOTIC Robotic Joints Mechatronics ADJUSTED GM% Industrial AUTOMATION SURGERY 18% COMPONENTS REVENUE CAGR SINCE 2016 MACROECONOMIC DRIVERS Controls & Pr
Slide 9: Converging Technology Solutions for Robotic Applications
Converging Technology Solutions DOUBLE-DIGIT for Robotic Applications LONG-TERM MARKET GROWTH RATE <25% PENETRATION OF ROBOTICS APPLICATIONS Strong presence, brand MOTION CONTROL Precise motion via motors, recognition and value drives, and mechatronics proposition Highly engineered, end- SENSING eff
Slide 10: Leading Technology Provider to Robotic Surgery Applications
Leading Technology Provider DOUBLE-DIGIT to Robotic Surgery Applications LONG-TERM MARKET GROWTH RATE Precision and proprietary technologies optimized for the most demanding applications <5% penetration of surgical robotics applications PRECISION MOTION AND FLUID / GAS MANAGEMENT SOLUTIONS FOR ROBOT
Slide 11: Medical Solutions
Medical Solutions SEGMENT OVERVIEW KEY METRICS KEY APPLICATIONS KEY TECHNOLOGIES Advanced SUBSYSTEMS ~$325M Industrial REVENUE 43% Medical MINIMALLY ROBOTIC Endoscopic INVASIVE SURGERY Insufflators iOR ADJUSTED GM% Pumps Devices SURGERY 15% REVENUE CAGR SINCE 2016 Precision Motion and Advanced Motio
Slide 12: Medical Growth Application: Surgical Smoke Removal
Medical Growth Application: DOUBLE-DIGIT Surgical Smoke Removal LONG-TERM MARKET GROWTH RATE APPLICATION CAPABILITY High growth medical market opportunity, estimated at 20% per year Integrated smoke evacuation increases safety, optimizes workflow and eliminates separate equipment INTEGRATED INSUFFLA
Slide 13: Intelligent Solutions for Precision Medicine Applications
Intelligent Solutions for HIGH-SINGLE-DIGIT Precision Medicine Applications LONG-TERM MARKET GROWTH RATE Enabling automation and cutting-edge capabilities for precision medicine equipment PRECISION MOTION RFID READER MACHINE VISION LIGHT ENGINE (sample movement (reagent & sample (sample scanning SUB
Slide 14: How We Operate: Novanta Way Culture
HOW WE OPERATE COHESIVE ENGAGED TEAMS EMPLOYEES Diverse, inclusive, Engage around a collaborative: shared vision and committed to win purpose Best Practices Owner Mindset Talent and Capital Novanta NOVANTA Business units with Leverage agility, speed, Allocation WAY CULTURE customer focus. Scale Nova
Slide 15: Delivering Consistent Financial Results
Delivering Consistent Financial Results REVENUE ADJUSTED EBITDA FINANCIAL FRAMEWORK +$215M +$975M $196M Mid to high single-digit $882M organic growth Double-digit reported +12% +15% growth through CAGR CAGR acquisitions 100 bps per year of gross margin expansion $244M $42M Strong free cash flow gene
Slide 16: Delivering Where It Matters Most
Delivering Where It Matters Most Medical Device Technologies Robotics and Automation Precision Medicine Precision Manufacturing CONFIDENTIAL AND PROPRIETARY
Slide 17: Environment, Sustainability and Governance
Environment, Sustainability and Governance REPORTING ACCORDING TO SASB AND TCFD STANDARDS NOVANTA ESG TARGETS Long-term goal to achieve net zero 1 greenhouse gas (GHG) emissions by 2050 Provide employees with one day of paid time-off (PTO) 2 to volunteer at an approved non-profit organization 3 Expa
Slide 18: Use of Non-GAAP Measures
Use of Non-GAAP Measures The non-GAAP financial measures used in this presentation are Adjusted EBITDA and Adjusted Gross Profit Margin. The Company believes that these non-GAAP financial measures provide useful and supplementary information to investors regarding the operating performance of the Co
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation THREE (in thousands of dollars) TWELVE MONTHS ENDED MONTHS ENDED Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec31, Dec 31, Dec. 31, Mar 29, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 REVENUE Revenue (GAAP) $243,796 $316,910 $
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