Gsi Co.,ltd. · SAPSE:5579
Gsi Co.,ltd — Investor Presentation (February 2014)
20 slides from Gsi Co.,ltd's investor presentation, Feb 18, 2014
Slide 1: Investor Presentation February 19, 2014
Exhibit 99.1 Investor Presentation February 19, 2014
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Note factors affecting future performance… Forward-Looking Statements The statements in this presentation that relate to guidance, pro forma presentations, and future plans, goals, business opportunities, events or performance are forward-looking statements that involve risks and uncertainties, incl
Slide 3: 2012 Strategic Vision
Our aspirations… 2012 Strategic Vision A leading provider of precision photonic and motion technologies for OEM’s in demanding markets – delivering attractive shareholder returns through sustained profitable growth Strategic Priorities Performance Goals • Accelerate growth (organic and M&A) • Organi
Slide 4: JADAK Technologies Inc.
Our acquisition of JADAK… JADAK Technologies Inc. “A significant milestone in our overall medical strategy to offer a broad range of enabling technologies to medical OEM’s.” “A growing, profitable business with a strong management team and an exceptional customer and technology franchise.” “A leader
Slide 5: JADAK Profile
JADAK is a strong technology company… JADAK Profile • Leading provider of component level machine vision, auto ID, and RFID technologies to medical equipment OEM’s • Founded in 2000 - based in N. Syracuse, NY – 130 employees - privately owned • Revenue $50M+, EBITDA margins in high teens – revenue d
Slide 6: JADAK Product Lines
JADAK has four major product categories… JADAK Product Lines Embedded Fixed Mount and Handheld Machine Vision Components Smart Cameras Scanners Software • Barcode Options • Barcode Options • Corded / Wireless • Works on all • Machine Vision • Machine Vision Options platforms Options Options • Medica
Slide 7: JADAK Applications
JADAK provides optical scanning technology… JADAK Applications Clinical Analysis Equipment Pharmacy Carts Bar Code Scanning in Heathcare* ($M) $140 $120 CAGR 8% Surgical Tools Barcode Optics Module $100 $80 $60 $40 $20 $0 2011 2012 2013 2014 2015 2016 2017 * VDC Research Patient Monitors Portable Gl
Slide 8: JADAK Customer Value Proposition
JADAK creates sustainable OEM relationships… JADAK Customer Value Proposition Medical OEM Customers Page 8 …through numerous dimensions
Slide 9: Strategic Fit
JADAK is a strong fit… Strategic Fit Common customers, application areas and channels with existing GSI medical business – enables medical “key account” sales strategy Core technologies are familiar to GSI - based on optoelectronic image sensor technologies with significant application specific deve
Slide 10: Go Forward Medical Business
We will offer a dozen medical enabling technologies… Go Forward Medical Business Enabling Technologies Major Applications Bar Code Machine Minimally RFID Robotic Patient Scanning Vision Invasive Surgery Monitoring ~$170M annual sales Surgery Wireless Surgical Software Networking Displays Precision T
Slide 11: GSI Pro Forma (w/ JADAK)
With this transaction… GSI Pro Forma (w/ JADAK) Product Groups End Market Mix Medical Technologies Scientific Micro- electronics Industrial Laser Precision Products Medical Motion * Data presented represents last nine months, ended 3Q 2013, adjusted for Jadak’s impact on GSI’s operation segments and
Slide 12: Key Priorities for 2014
We have clear focus… Key Priorities for 2014 • Acquisitions: Successful integration of JADAK, potential follow-on deals: Medical & Advanced Industrial Markets (i.e. scanning & precision motion) • Organic Growth: ~$5M of growth investment in key platforms – driven by confidence in long-term prospects
Slide 13: Revenue Outlook
Our conservative view of 2014… Revenue Outlook + JADAK ~$50M +25%* annualized $271M Low Single Digit Growth 2012 2013 2014 Outlook *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,
Slide 14: Adjusted EBITDA Outlook
2014 productivity funds ~$5M of growth investment… Adjusted EBITDA Outlook + JADAK ~$10M ~$50M* annualized $42M + 8-10% 2012 2013 2014 Outlook *Adjusted EBITDA is a non-GAAP measure. The reconciliation to our most comparable GAAP numbers is provided in the appendix. ** 2013 Reflects prior full year
Slide 15: Deal Financing
We funded the transaction… Deal Financing Sources and Uses ($ in millions) Sources Amount Uses Amount Cash & Cash Equivalents $ 26.0 JADAK Acquisition $ 93.5 Revolver ($175M)* $ 68.0 Transaction Fees $ 0.5 Total $ 94.0 Total $ 94.0 • 1 st Quarter 2014: Borrowing $68M from bank revolver at Libor + 27
Slide 16: Free Cash Flow Outlook
Significant cash generation… Free Cash Flow Outlook + JADAK ~$5M $25-30M* annualized $24M + $35M 2012 2013 2014 Outlook 2012 2013 2014 2014 (pre-Acq) (Post-JADAK) Net Debt ($16M) ~$15M ~($20M) ~$70M *EXCLUDES ~$10.6M net cash refund related to U.S. IRS audit for the GSI Group’s 2000 through 2008 tax
Slide 17: Appendix
Appendix Page 17
Slide 18: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Non-GAAP Measures The non-GAAP financial measures used in this presentation are non-GAAP 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
Slide 19: Non-GAAP Free Cash Flow & Net Debt
Non-GAAP Free Cash Flow * & Net Debt Nine Months Ended Twelve Months Ended September 27, 2013 December 31, 2012 Cash provided by operating activities $34,448 $28,430 Less: Capital expenditures 3,073 4,308 Free Cash Flow (a) $31,375 $24,122 Debt ($78,375) ($50,000) Less: Cash and cash equivalents 53,
Slide 20: 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