Novanta Inc. · NASDAQ:NOVT
Novanta — Baird's 2024 Global Healthcare Conference
19 slides from Novanta's conference presentation, Sep 10, 2024
Slide 1: A Trusted Technology Partner
A Trusted Technology Partner SEPTEMBER 2024
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 Partner to $975M 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 Robotic
Slide 4: Our Strategy
Our Strategy E & TALEN LTUR T CU Win in High Growth Asset light Segments Growth Returns business model RE V E NUE C A S H F L OW O N M VA E NT ST A GROWTH SY Sticky business model with Allocate based on cash- winning OEMs on-cash return TAM expansion through Expand gross margins Innovation and Subsy
Slide 5: The Novanta Transformation Journey
The Novanta Transformation Journey ~$1.1B 20 Capital deployed for transactions 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 SEQUENCE ADJUSTED GM% Industrial MATERIAL DECODING Optical Light Scan Heads PROCESSING 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 recognition and value Precise motion via motors, 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 INVASIVE ROBOTIC Endoscopic SURGERY SURGERY Insufflators iOR ADJUSTED GM% Pumps Devices 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 shared collaborative: committed vision and purpose to win Best Practices Owner Mindset Talent Novanta NOVANTA and Capital Business units with Leverage agility, speed, customer Allocation WAY CULTURE focus Scale Novan
Slide 15: Delivering Consistent Financial Results
Delivering Consistent Financial Results REVENUE ADJUSTED EBITDA FINANCIAL FRAMEWORK +$215M $975M Mid to high single-digit organic $196M $882M growth Double-digit reported +12% +15% growth through acquisitions CAGR CAGR 100 bps per year of gross margin expansion $244M Strong free cash $42M flow gener
Slide 16: Delivering Innovation Where It Matters Most
Delivering Innovation 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 SIX (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, Jun 28, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 REVENUE Revenue (GAAP) $243,796 $316,910 $36