Gsi Co.,ltd. · SAPSE:5579
Gsi Co.,ltd — Stephens Fall Investment Conference 2015
25 slides from Gsi Co.,ltd's conference presentation, Nov 9, 2015
Slide 1: Stephens Fall Investment Conference Investor Presentation
Stephens Fall Investment Conference Investor Presentation November 10, 2015 Exhibit 99.1
Slide 2: Factors affecting future performance and use of Non-GAAP financial measures
Factors affecting future performance… …and use of Non-GAAP financial measures 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: A Leading Precision Technology Company
Leading provider of laser, precision motion, and vision technologies Canadian company founded in 1968, with U.S. Headquarters in Massachusetts ~$365M in annual revenue and +$60M in annual Adjusted EBITDA Serving global addressable market of ~$2 billion, growing 5-7% per year Approximately 1,300 empl
Slide 4: Business Model
Business Model Highly engineered and (semi) customized solutions to OEM’s Mid to long design-in cycles Medium volume (1000’s) asset-light assembly operations Leverage cross-selling to OEM’s in target applications (medical) Operations Excellence/Continuous improvement based on lean Value Chain Focus
Slide 5: GSI has a strong global presence
GSI has a strong global presence… …with significant reach into the Pacific Rim Strong international presence – over 60% of revenue from outside U.S. Production sites in the U.S., U.K. and China Serving ~3000 customers in over 50 countries Sales Breakdown Europe Other U.S. Asia Seattle, WA Sacramento
Slide 6: Medical end market sales approaching half of our portfolio
Medical end market sales… …are approaching half of our portfolio Medical GSI Profile – Pro Forma Advanced Industrial Product Groups End Market Mix * Data presented is pro-forma 2015 adjusting for all acquisitions and divestitures 55% 45% 35% 47% 18% Laser Products Vision Technologies Precision Motio
Slide 7: GSI Advanced Industrial Business
Our Advanced Industrial business… …is focused on high performance applications GSI Advanced Industrial Business CO2 Lasers Optical Encoders Color Analyzers Laser Scanheads Enabling Technologies Major Applications LCD Testing Laser Marking Laser Cutting Robotics Wire Bonding Laser Welding Measurement
Slide 8: We serve a ~$1 billion Advanced Industrial market
We serve a ~$1 billion Advanced Industrial market… …with strong technology positions GSI Advanced Industrial Markets Advanced Industrial Fine/micro Laser Materials Processing Electronics Metrology Robotics and Factory Automation Marking/coding, 3D printing, converting, apparel processing Via Hole Dr
Slide 9: GSI Medical Business
Our Medical market presence is gaining scale… …and offers significant growth potential GSI Medical Business Bar Code Scanning RFID Machine Vision Surgical Displays Wireless Networking Optical Encoders Thermal Printers Software Informatics Laser Scanning Enabling Technologies Major Applications Blood
Slide 10: Driving penetration of critical care applications
We are driving penetration of critical care applications… …while increasing content in key medical systems Robotic Surgery Minimally Invasive Surgery Drug Delivery Patient Monitoring Laser Surgery Retinal Diagnostics Surgical Operating Room Our Technologies RFID Bar Code Scanning Machine Vision WiFi
Slide 11: We serve a ~$1 billion Medical market
We serve a ~$1 billion Medical market… …with a broad array of capabilities GSI Medical Markets Medical Ophthalmology Critical Care Lab Equipment Surgical Treatment OCT Cataract Surgery LASIK Surgery Patient Monitoring EKG Defibrillation IVD Life Sciences Analytical Endoscopy Robotic Surgery Surgical
Slide 12: 5 Year Strategic Vision
Our vision targets consistent profitable growth… …and recognized leadership in our space 5 Year Strategic Vision “Building a Leading Precision Technology Company Through Innovation at the Intersection of Photonics & Motion” Breakthrough Scale Double in size to $750 million in revenue Deliver 20% EBI
Slide 13: Medical Cross Selling Initiative
…to deepen our relationships with medical OEM’s Medical Cross Selling Initiative Approach Team selling within OEM accounts Cross training on product offering Communication forums for sales teams Sharing insights into customer roadmaps and product requirements Holding “Tech Days” at major OEM’s Broad
Slide 14: Commitment to Operational Excellence
We see significant benefit… …from our commitment to Operational Excellence Productivity Programs Strategic Sourcing Lean Conversion Cost Base: ~$150M (material spend) Spend Analytics Tool in place Savings programs and goals defined by site and commodity Focused on standardizing contract terms 2015 s
Slide 15: Lincoln Laser Company Acquisition
In November 2015, Acquired for $11 million in cash… …leading provider of precision ultrafast polygon scanners Lincoln Laser Company Acquisition Privately-held laser beam delivery company, with focus on ultrafast precision polygon scanners and other optical scanning solutions. Sells into the medical,
Slide 16: The Company's transformation has been notable
The Company’s transformation has been notable… …with 2015 expected to be strong $225M Adjusted Revenue $298M $343M * Reflects guidance provided on May 7, 2015. +$365M 2015 Organic Growth: Mid Single Digit *Adjusted Revenue is a non-GAAP measure. The reconciliation to our most comparable GAAP numbers
Slide 17: Demonstrating strong profitable growth
Demonstrating strong profitable growth… …despite significant investments involved in transforming the company $42M Adjusted EBITDA $51M $60M-$61M *Adjusted EBITDA & Adjusted E.P.S. are a non-GAAP measures. The reconciliation to our most comparable GAAP numbers is provided in the appendix. ** 2015 Ou
Slide 18: Significant cash generation funds our acquisition strategy
Significant cash generation funds our acquisition strategy… …while allowing us to invest organically $30M Free Cash Flow $39M* ~$35M** Net Debt ($16M) ~$11M ~$64M ~$28M *Excludes~$11.8M of net cash refunds related to U.S. IRS audit for the GSI Group’s 2000 through 2008 tax years. $39M **includes $7
Slide 19: Appendix
Appendix
Slide 20: About GSI
About GSI GSI Group Inc. designs, develops, manufactures and sells precision photonics and motion control components and subsystems to Original Equipment Manufacturers (“OEM”) in the medical equipment and advanced industrial technology markets. The Company’s highly engineered enabling technologies i
Slide 21: Non-GAAP Adjusted Revenue Reconciliation
Non-GAAP Adjusted Revenue Reconciliation Twelve Months Ended December 31, 2012 December 31, 2013 December 31, 2014 (in thousands of dollars) Revenue (GAAP) $ 243,796 $ 316,910 $ 364,706 JK Lasers divestiture (19,200) (19,051) (22,425) Acquisition fair value adjustments — 275 220 Adjusted Revenue (No
Slide 22: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation Twelve Months Ended December 31, 2012 December 31, 2013 December 31, 2014 (in thousands of dollars) Income (loss) from continuing operations (GAAP) $ 20,262 $ 19,446 $ (16,806) Depreciation and amortization 12,458 19,570 23,797 Share-based compensation 4,534 5
Slide 23: Non-GAAP Adjusted EPS Reconciliation
Non-GAAP Adjusted EPS Reconciliation Twelve Months Ended December 31, 2012* December 31, 2013 December 31, 2014 Diluted EPS from Continuing Operations (GAAP) $ 0.66 $ 0.29 $ (0.49) Non-GAAP Adjustments: Amortization of intangible assets 0.10 0.24 0.34 Restructuring, divestiture and other costs 0.15
Slide 24: 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) Debt is presented net of unamortized deferred financing costs. (c) Net debt, a non-GAAP measure, is defined as total debt less cash and cash
Slide 25: Use of Non-GAAP Financial Measures
The non-GAAP financial measures used in this presentation are non-GAAP Adjusted Revenue, Adjusted EBITDA, Adjusted EPS from Continuing Operations, free cash flow, and net debt. The Company believes that the non-GAAP financial measures provide useful and supplementary information to investors regardi