Novanta Inc. · NASDAQ:NOVT
Novanta — Investor Presentation (January 2020)
19 slides from Novanta's investor presentation, Jan 7, 2020
Slide 1: A Trusted Technology Partner to Medical and Advanced Technology Equipment Manufacturers
A Trusted Technology Partner to Medical and Advanced Technology Equipment Manufacturers Nasdaq: NOVT January 2020 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements in this presentation that relate to guidance, pro forma presentations, future plans, goals, business opportunities, and future events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with business and
Slide 3: Leader in Mission Critical Technologies to Medical & Advanced Industrial Markets
Note: Revenue, Adjusted EBITDA and Adjusted Diluted EPS figures are based on the range for 2020 full–year outlook. Note: Adjusted EBITDA & Adjusted Diluted EPS are Non-GAAP measures. See explanations for use of non-GAAP measures in the appendix. +$135M adjusted EBITDA +$2.38 adjusted diluted EPS +$6
Slide 4: Novanta Operating Model
High Performance Growth Culture Novanta Operating Model DIFFERENTIATED OEM Business Model Focus on Cash Returns Highly engineered “sticky” solutions based on proprietary technology Imbedded in ~10 year customer platforms Diversified across +40 end- market applications Novanta Growth System: operatio
Slide 5: Value Creation Approach
Value Creation Approach Multiple growth and value drivers FOCUS ON HIGH GROWTH MARKETS Niche leadership in secular growth markets Balanced across multiple end markets DRIVE CONSISTENT ORGANIC GROWTH Product innovation Global presence Increasing content with OEMs EXECUTE ON VALUE-CREATING M&A Discipl
Slide 6: Novanta Operating Groups and Businesses
Novanta Operating Groups and Businesses 40% Vision 40% PHOTONICS 20% Precision Motion Galvanometer optical scanners Scanhead solutions Visible CW lasers Laser beam delivery sub-systems Low-power CO2 lasers for fine material processing Detection & Analysis Minimally Invasive Surgery RFID, barcode sca
Slide 7: Focus on High Growth Markets
Focus on High Growth Markets Industry 4.0: Factory of the Future Medical: VALUE BASED HEALTHCARE Key Secular Growth Drivers Factory floor and warehouse automation High precision production technologies Quality control & characterization Personalized medicine Lower costs with better outcomes Greater
Slide 8: Drive Consistent Organic Growth
Drive Consistent Organic Growth Leverage Growth Capabilities Product Innovation +600 engineers ~9% of revenue invested in R&D +400 Patents Global Presence Application & engineering focused salesforce in key local markets Opportunity for deepening presence outside the U.S. Global manufacturing & glob
Slide 9: Execute on Value-Creating M&A
Identify Market Opportunities with Secular Growth Drivers Execute on Value-Creating M&A Driving double-digit reported growth Businesses with high growth & high cash returns Capital deployed to high ROIC opportunities New technologies that drive content & sub-system growth
Slide 10: Expanding into Intelligent Subsystems: Laser Beam Steering
Expanding into Intelligent Subsystems Laser Beam Steering Capability Applications Accelerates roadmap for industry 4.0 Expands served market by $300M Creates laser beam steering engineering powerhouse Micromachining EV Battery Welding 3D Metal Printing Stent Mfg High precision drilling for 24/7 mass
Slide 11: Expanding into Intelligent Subsystems: Motion Control
Robotic surgery Robotics and automation Applications Expanding into Intelligent Subsystems Motion Control Increase in Value Chain COMPONENTS SUB-SYSTEMS SOFTWARE & CONTROLS Drives & Controls Precision Motors Precision Encoders Capability Applications
Slide 12: Medical Growth Application: Surgical Smoke Removal
High growth medical market opportunity, estimated at 20% per year 95% of surgical procedures using energy-based devices produce surgical smoke, proven to contain toxic gases and vapors, endangering surgical personnel and patients. Our novel innovation integrates smoke filtering and evacuation functi
Slide 13: Deliver Consistent Financial Results: Adjusted Revenue
Deliver Consistent Financial Results Note: Adjusted Revenue is a non-GAAP measure. See explanations for use of non-GAAP measures in the appendix. Adjusted Revenue Medical Industrial Micro- Electronics $225M +14% CAGR $645M to $660M 2020
Slide 14: Deliver Consistent Financial Results: Adjusted EBITDA and EPS
Deliver Consistent Financial Results Note: Adjusted EBITDA & Adjusted Diluted EPS are non-GAAP measures. See explanations for use of non-GAAP measures in the appendix. Adjusted EBITDA Adjusted diluted EPS $135M to $140M $42M +16% CAGR $2.38 to $2.48 $0.45 +23% CAGR Tax rate ~20%
Slide 15: About Novanta
About Novanta Novanta is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers (“OEMs”) a competitive advantage. We combine deep proprietary technology expertise and competencies in photonics, vision, and precision motion wi
Slide 16: Appendix
Source APPENDIX Nasdaq: NOVT
Slide 17: Use of Non-GAAP
Use of Non-GAAP The non-GAAP financial measures used in this presentation are non-GAAP Adjusted Revenue, Adjusted EBITDA, and Adjusted Diluted EPS from continuing operations. The Company believes that these non-GAAP financial measures provide useful and supplementary information to investors regardi
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Twelve Months Ended Nine Months Ended December 31, 2012 December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 September 27, 2019 ADJUSTED REVENUE (in thousands of dollars) Revenue (GAAP) $243,796 $316,910 $364,706 $373,598
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation *Adjusted Diluted EPS was not updated for the Scientific Lasers divestiture. Management determined that revising the Adjusted Diluted EPS figures would not have resulted in a material change. ADJUSTED DILUTED EARNINGS PER SHARE Twelve Months Ended Nine Months Ended December 3