Slide 1: Cognex Corporation Investor Overview Q1 2020
COGNEX CORPORATION Investor Overview | Q1 2020 1 © 2016 Cognex Confidential
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements made in this presentation and oral statements made by Cognex® that do not relate solely to historical matters are forward-looking statements. These statements can be identified by use of the words “expects,” “anticipates,” “estimates,” “believes,” “proje
Slide 3: Cognex key facts at a glance
74% GROSS MARGIN OVER 39 YEARS IN THE BUSINESS MILLION 2019 REVENUE 20% OPERATING MARGIN 2,300,000+ SYSTEMS SHIPPED 3
Slide 4: Technology Leadership
TECHNOLOGY LEADERSHIP 16% R&D >1K OF REVENUE INTO US & INTERNATIONAL PATENTS Issued & Pending 4
Slide 5: Cognex Culture
PLAY HARD WORK HARD MOVE FAST Cognex Culture 5
Slide 6: Culture, Engineering Excellence and Sales Growth
Our culture is part of a virtuous circle, attracting excellent engineers, (CLICK) who develop leading technology, which drives sales growth, (CLICK) and which in turn helps preserve and enhances our culture. Even in down Culture Sales Engineering Growth Excellence 6
Slide 7: What Is Machine Vision?
WHAT IS MACHINE VISION? Brain Eyes Optics Vision software & algorithms 7
Slide 8: What does machine vision do?
What does machine vision do? GUIDE IDENTIFY GAUGE INSPECT 8
Slide 9: Guide
What does machine vision do? GUIDE IDENTIFY GAUGE INSPECT 9
Slide 10: Identify
What does machine vision do? GUIDE IDENTIFY GAUGE INSPECT 10
Slide 11: Gauge
What does machine vision do? GUIDE IDENTIFY GAUGE INSPECT 11
Slide 12: Inspect
What does machine vision do? GUIDE IDENTIFY GAUGE INSPECT 12
Slide 13: Machine Vision Is a Great Market
MACHINE VISION IS A GREAT MARKET 360 MILLION 35 MILLION FACTORY WORKERS WORLDWIDE VISUAL INSPECTORS Source: Estimates based on internal data and data from International Labor Organization & World Bank 13
Slide 14: All Products Across All Industries
PRODUCTS ACROSS ALL INDUSTRIES ARE MADE BETTER AND AT L O W E R C O S T W I T H COGNEX VISION 14
Slide 15: Cognex Products
COGNEX VipDi SUALAB
Slide 16: Cognex's $4.2 Billion Served Market
COGNEX’S $4.2 BILLION SERVED MARKET Others Cognex $1,400M $1,000M $1,000M $400M $200M $200M 100% Projected Market 80% Growth Low Double 60% Digits 40% 20% 0% Life Mobile 2D Vision ID Factory Automation Logistics 3D Sciences Terminals Total Cognex 30% 20% >10% >5% <5% <5% ~20% Share Estimated Long-te
Slide 17: 2D Vision
2D VISION Cognex’s core market Recognized market leader Preeminent brand Powerful vision toolset 17
Slide 18: ID Factory Automation
ID FACTORY AUTOMATION Broadest portfolio of industrial image-based barcode readers Read rates matter Strong prospects for continued share gain 18
Slide 19: Logistics
LOGISTICS Market undergoing rapid change Revenue >15% of company total in 2019 Many new applications in both vision and ID 19
Slide 20: 3D Vision
3D VISION New snap-shot sensing platforms Powerful vision tools, including PatMax 3D Target growth in excess of long-term market rate 20
Slide 21: Life Sciences
LIFE SCIENCES Highly regulated, non- cyclical market Long product life cycle 20 design wins in 2019 Consistent, stable, fast growing ongoing revenue 21
Slide 22: Mobile Terminals
MOBILE TERMINALS Target market ripe for disruption Unique integration of smartphones and high- performance vision tools 22
Slide 23: Deep Learning
DEEP LEARNING Neural network trained by example Specific to industrial machine vision Human-like judgement for ambiguous problems 23
Slide 24: Industry 4.0
INDUSTRY 4.0 24
Slide 25: Financial Review
FINANCIAL REVIEW 25 | COGNEX
Slide 26: Cognex 10-Year Revenue
COGNEX 10-YEAR REVENUE* $800 CAGR $700 3 Year 11% $600 5 Year 9% $500 10 Year 18% $400 $300 $200 $100 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Dollars in millions * From continuing operations. 26
Slide 27: Q1 2020 Income Statement
Q1 2020 INCOME STATEMENT (AS REPORTED UNDER GAAP) Q1 % of Q1 % of % 2020 Revenue 2019 Revenue Change Revenue $167,235 100 % $173,484 100 % (4) % Gross Margin 126,035 75 127,200 73 (1) R, D & E 35,946 21 30,242 17 19 S, G & A 69,138 41 66,811 39 3 Operating Income 20,951 13 30,147 17 (31) Net Income
Slide 28: Q1 2020 Balance Sheet
Q1 2020 BALANCE SHEET Assets 3/29/2020 12/31/2019 Cash and Investments $845,396 $845,353 Accounts Receivable 100,463 103,447 Inventories 54,985 60,261 Deferred Tax Assets 450,280 449,519 Other Assets 433,953 427,355 Total Assets $1,885,077 $1,885,935 Liabilities and Shareholders’ Equity Accounts Pay
Slide 29: Industry Leader
INDUSTRY LEADER VERSATILE CORE TECHNOLOGY CONSISTENT CASH GENERATOR EARNINGS LEVERAGE EXPERIENCED TRACK RECORD OF STRONG MANAGEMENT SUCCESS BALANCE SHEET 29