Gsi Co.,ltd. · SAPSE:5579
Gsi Co.,ltd — Investor Presentation (January 2014)
24 slides from Gsi Co.,ltd's investor presentation, Jan 14, 2014
Slide 1: Investor Presentation
January 15-16, 2014 Exhibit 99.1 Investor Presentation Investor Presentation January 15-16, 2014
Slide 2: Factors affecting future performance and use of Non-GAAP financial measures
Factors affecting future performance… …and use of Non-GAAP financial measures 2 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
Slide 3: We are a leading supplier of medical and laser technologies
Leading provider of precision laser, medical and motion control technology Canadian Company founded in 1968, with U.S. Headquarters in Massachusetts $340M+ in annual revenue and ~$50M in annual Adjusted EBITDA* Approximately 1,300 employees for continuing operations Trade on NASDAQ (GSIG) We are a l
Slide 4: Our aspirations are clear and achievable
Our aspirations… …are clear and achievable A leading provider of precision photonic and motion technologies for OEM’s in demanding markets – delivering attractive shareholder returns through sustained profitable growth 4 Accelerate growth (organic and M&A) Improve mix (growth, volatility) – more Med
Slide 5: Medical end market sales are 35% of our portfolio
Medical end market sales are 35% of our portfolio… …with Microelectronics down to 15% Laser Products Medical Technologies Scientific Medical Micro- electronics Industrial Precision Motion 5 * Data presented represents last nine months, ending 3Q 2013 Medical end market sales are 35% of our portfolio
Slide 6: GSI has a strong global presence
GSI has a strong global presence… …with significant reach into the Pacific Rim Strong international presence - 68% of revenue from outside U.S. Nine Production sites in the U.S., U.K. and China Sales Breakdown Japan Europe Other U.S. Asia Suzhou, PRC Sri Lanka Munich, Germany * Reflects data present
Slide 7: We have built momentum to enable increased success in 2014
We have built momentum… …to enable increased success in 2014 Successful integration of NDS acquisition Completion of Semiconductor Systems divestiture Balance sheet strength – net debt forecast ~$15M * Significant leadership upgrades across businesses Strong progress on M&A pipeline Return to organi
Slide 8: Our team was resilient in successfully working through several challenges
Our team was resilient… …in successfully working through several challenges Experienced extremely weak conditions in Scientific market We scaled-back our Fiber Laser investments Continue to see a sluggish and sometimes unpredictable Industrial (Manufacturing) sector in China Experienced an initial s
Slide 9: The GSI transformation is making strong progress
~$480M* Low single digit ~$70M 33% systems 67% components <20 distinct P&L’s >30 sites >50% Semi <10% Medical Unrelated acquisitions Maximize margins +$340M Mid to high single digit ~$50M ~95% components 3 focused groups <15 sites ~15% Semi ~35% Medical Build growth platforms Bolt-on M&A Profit grow
Slide 10: Our Medical market presence is gaining scale
Our Medical market presence is gaining scale… …and offers significant growth potential ~$120M of revenue in enabling technologies for medical systems 8 distinct medical technologies sold to over a dozen applications Significant share position with leading OEM’s FDA Certification in San Jose, CA ISO
Slide 11: Our Laser Scanning growth platform delivers profitable growth
Our Laser Scanning growth platform… …delivers profitable growth #1 Position in Scanning Galvanometers $200M+ addressable market Strong growth in 2013: +8% overall increase +50% increase in scanning solutions Fastest & highest resolution products available One third of scanning revenue is in medical
Slide 12: We are just beginning our journey toward Operational Excellence
We are just beginning our journey… …toward Operational Excellence Broader Opportunity Project Impact New managers from strong operating cultures: Danaher, Crane, Ingersoll-Rand, IDEX, GE, Boeing ~$150M direct material spend unleveraged today Inventory turns only 3 times per year Customer Satisfactio
Slide 13: We have clear focus for success in 2014
We have clear focus… …for success in 2014 Organic Growth: ~$5M of growth investment in key platforms – driven by confidence in long-term prospects Acquisitions: Targeting +2 acquisitions in 2014, focused on medical market adjacencies and extending core technologies (scanning, precision motion) Produ
Slide 14: Our conservative view of 2014 assumes no improvement in capital equipment markets
Our conservative view of 2014… assumes no improvement in capital equipment markets $271M +25%* Low Single Digit Growth 14 *Includes acquisition of NDS Surgical Imaging on January 15, 2013. Reflects prior full year guidance. The company is neither updating, nor confirming its prior guidance, but is s
Slide 15: 2014 is seeing significant improvements in productivity
2014 is seeing significant improvements in productivity… $42M ~$50M 8%-10% 15 2012 2014 Outlook 2013 …which funds ~$5M of growth investment & delivers +8% profit growth *Adjusted EBITDA is a non-GAAP measure. The reconciliation to our most comparable GAAP numbers is provided in the appendix. ** 2013
Slide 16: Significant cash generation provides capital for our growth strategy
Significant cash generation… …provides capital for our growth strategy $24M $25M-$30M * +$35M Net Debt ($16M) ~$15M ~($20M) 16 *EXCLUDES ~$12.5M cash refund related to U.S. IRS audit for the GSI Group’s 2000 through 2008 tax years. 2012 2013 2014 Outlook *Free Cash Flow and Net Debt are non-GAAP mea
Slide 17: Appendix
Appendix 17
Slide 18: Laser Products Overview
Medical GSI’s Laser Products Group… …is focused on industrial & medical end-markets Industrial Scientific 10W to 400W Mukilteo, WA Marking, Engraving, Date Coding of non-metals 50W to 2kW Rugby, UK Metal cutting, welding, drilling High Speed/Power Santa Clara, CA Scientific Research Specialty Indust
Slide 19: Medical Technologies Overview
GSI’s Medical Technologies… …focused around medical peripherals & imaging technologies Displays, Informatics, Networking San Jose, CA Surgical OR’s Radiology Diagnostics; i.e. Endoscopy Thermal Printers Bedford, MA Patient Monitoring Defibrillators EKG Industrial Scientific Electronics Medical * Las
Slide 20: Precision Motion Overview
GSI’s Precision Motion Technologies… …making significant shift to Indrustial and Medical end-markets Air Bearing Spindles Precision Machining Poole, UK Suzhou, China PCB Drilling Semiconductor Energy (Turbines) Industrial Scientific Electronics Medical * Last nine months, ending 3Q 2013 Optical Enco
Slide 21: Use of Non-GAAP Financial Measures
The non-GAAP financial measures used in this presentation are non-GAAP are Adjusted EBITDA, free cash flow, and net debt. The Company believes that the non-GAAP financial measures provide useful and supplementary information to investors regarding the Company’s financial performance. It is managemen
Slide 22: Non-GAAP Free Cash Flow & Net Debt
Non-GAAP Free Cash Flow * & Net Debt (a) Free cash flow, a non-GAAP measure, is defined as cash provided by operating activities less capital expenditures. (b) Net debt, a non-GAAP measure, is defined as total debt less cash and cash equivalents. Nine Months Ended Twelve Months Ended September 27, 2
Slide 23: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation Twelve Months Ended Last Twelve Months December 31, 2012 December 31, 2011 September 27, 2013 (in thousands of dollars) Income from operations (GAAP) $ 15,007 $ 35,848 $ 14,311 Depreciation and amortization 13,196 14,467 18,458 Share-based compensation 4,580 3
Slide 24: Safe Harbor and Forward-Looking Information
24 Safe Harbor and Forward-Looking Information 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 st