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Investor Day May 22, 2018
Lindon Robertson Chief Financial Officer
Safe Harbor Statement
3
“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995; certain matters in this presentation,
including forecasts of future demand and future Company performance, are forward-looking statements that are subject to risks and
uncertainties that could cause actual results to materially differ, either better or worse, from those projected. Further discussions of
risk factors are available in the Company’s most recent SEC filings, including the annual report on Form 10-K for the fiscal year
ended September 30, 2017 and any subsequent quarterly reports on Form 10-Q. The Company assumes no obligation to update the
information in this presentation.
Regulation G
This presentation contains certain non-GAAP measures which are provided to assist in an understanding of the Brooks business and
its operational performance. These measures should always be considered in conjunction with the appropriate GAAP measure.
Reconciliations of all non-GAAP amounts to the relevant GAAP amount are provided as a separate presentation on the Company’s
website.
Agenda
4
Steve Schwartz President and
Chief Executive Officer
David Jarzynka Senior Vice President and General Manager,
Brooks Semiconductor Solutions Group
Dusty Tenney President, Brooks Life Sciences
Strong Markets, Strong Position
Meeting the Technology Demands in the Semiconductor Market
Expansion of the Life Sciences Growth Engine
10:25 - 10:35 AM
Sue Crimmin Vice President, Discovery Supply
GlaxoSmithKline
Evolution of Sample Management
Lindon Robertson Executive Vice President and
Chief Financial Officer
Continued Growth, Expansion and Increasing Returns
Welcome
Question and Answer Session
Lunch and Product Demonstrations with the Executive Management Team
9:30 - 9:40 AM
12:00 - 1:30 PM
Break
Lindon Robertson, Executive VP & CFO
Steve Schwartz Chief Executive Officer
K E Y M E S S A G E S T O D A Y
Two Strong Platforms: Delivering Solid Growth
* Non-GAAP financial measures – see reconciliation tables. 2
By 2021,
Operating Margin*
> 20%
EPS* doubles to
~ $2.50
• Semiconductor, positioned in high growth market segments
• Life Sciences, profitable and high growth
Two Strong Businesses
• #1 in all key market segments
• Strong backlog and design wins
• Premier customer relationships
Clear Market Leadership Positions
• Multiple growth drivers in both Segments
• Attractive ROIC
Executing Growth Strategy
© 2018 Brooks Automation, Inc. • Proprietary Information
Agenda
3
Two strong platforms
The future
Brooks today
© 2018 Brooks Automation, Inc. • Proprietary Information
Brooks at a Glance; Strong Metrics
LTM Revenue Breakdown Key Metrics
10%
Life Sciences
37% growth
Semi
15% growth
23%
77%
LTM
Revenue $760M
Growth rate 20%
Gross margin %* 41%
Operating income %* 15%
Employees 2,160
2-year TSR (May’16-May’18) 76%
4 * Non-GAAP financial measures – see reconciliation tables. Note: LTM results from Mar’18. © 2018 Brooks Automation, Inc. • Proprietary Information
F R O M L A S T I N V E S T O R D A Y I N 2 0 1 6
Executing on our Plan; Firing on all Cylinders
5
2013 to 2016 2016-2017 2017 +
Built Life Sciences and Repositioned Semi
• Focused on market leaders
• Full suite of biological sample management offerings
At Inflection Point
• Ramp up growth
• Streamline Semi business
• Drive Life Science profitability
New Brooks Model Firing on All Cylinders
• Margin expansion
• Accelerated earnings and cash flow yield
© 2018 Brooks Automation, Inc. • Proprietary Information
Significant Progress Since Last Investor Day
6
Growth rate of 24% from 2016 to 2017
Completed six acquisitions during the two-year period
Life Sciences now at $200 million revenue and profitable
Four percentage points of gross margin* expansion to 41%
Expanded addressable markets and gained share
Reduction of footprint through consolidation of operations
to eliminate five sites
Stock price increased 3X and paid of $55M of dividends
to shareholders
* Non-GAAP financial measures – see reconciliation tables. © 2018 Brooks Automation, Inc. • Proprietary Information
Strong Track Record of Top Line Growth and Margin Expansion
7
$422
$553
$693
2013 2015 2017
$0.12
$0.45
$1.23
2013 2015 2017
$M
Demonstrating the value of our portfolio
33%
35%
39%
2013 2015 2017
13% CAGR
+6 Pts 79% CAGR
Revenue EPS* Gross Margin*
* Non-GAAP financial measures – see reconciliation tables. © 2018 Brooks Automation, Inc. • Proprietary Information
FY13 FY15 FY17
Our Transformation to High Growth Segments Continues
8
$422
$693
$553
Semi Stable Leadership
Semi Tech Drivers
Life Sciences
• Wafer level packaging
• Contamination control
• Deposition and etch
• Cryo pump and service /
discontinued product lines
60% in high growth segments in FY17 versus 35% in FY13
Revenues $M
High Growth
© 2018 Brooks Automation, Inc. • Proprietary Information
Well Positioned in our Expanding End Markets
1Consultative Studies and Company Estimates; SAM – Serviceable Addressable Market Note: LTM results from Mar’18. 9
Semiconductors Life Sciences Total Brooks
Market size1 $1.9B $1.7B $3.6B
Revenue $584M $177M $760M
Market share 31% 10% 21%
Revenue mix 77% 23% 100%
Market growth1 9% 10% 9%
BRKS organic growth 16% 26% 18%
© 2018 Brooks Automation, Inc. • Proprietary Information
Agenda
10
Two strong platforms
The future
Brooks today
© 2018 Brooks Automation, Inc. • Proprietary Information
The Relentless
Pursuit of Another Breakthrough
Two Strong Markets Driven by the desire for better and longer life
11
• Semiconductor technology depends on innovations in capital equipment
• Technology for lifestyle and leisure
Semiconductor
Equipment
• All research and cures depend on samples
• Healthier, longer lives
Life
Sciences
© 2018 Brooks Automation, Inc. • Proprietary Information
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Semi Wafer Fabrication Equipment (WFE) Market Growth: The Driver of Our Semi Business
12
1995 1990
Forecast
2018 2015 2010 2005 2000
$B
Desktop
Computing
PC
Networked World
Laptops, Phones, Gaming
Mobility
Smart Phones, Tablets
Connectivity
Artificial Intelligence
Cloud Computing
Internet of Things
(IoT)
Irregular, but persistent long-term growth
More than ever, these
technologies require more
of our capabilities – and
we are delivering
© 2018 Brooks Automation, Inc. • Proprietary Information
Well-Positioned in the Fastest Growing Segments of WFE
13
Calendar ’13 - ’17 Segment Revenue Growth (CAGR)
Deposition &
Etch
Wafer-Level
Packaging
Contamination
Control
Technology drivers
demand that these
capabilities will
continue to outgrow
WFE for many years
to come
High growth segments represent ~50% of Semi revenue
High Growth Segments
15%
25% 28%
© 2018 Brooks Automation, Inc. • Proprietary Information
Our Semiconductor Strategy in Action: 2017 Growth Drivers
14
$452
$544
$41 $5
$33 $13
$M
FY16 Vacuum
Automation (Dep & Etch)
Advanced
Packaging
Contamination
Control
Other
Growth FY17
• 60 design wins
• Market share
gains
• Broadened
customer base
2017 design wins provide growth in 2019 and beyond © 2018 Brooks Automation, Inc. • Proprietary Information
The Relentless
Pursuit of Another Breakthrough
Two Strong Markets Driven by the desire for better and longer life
15
• Semiconductor technology depends on innovations in capital equipment
• Technology for lifestyle and leisure
Semiconductor
Equipment
• All research and cures depend on samples
• Healthier, longer lives
Life
Sciences
© 2018 Brooks Automation, Inc. • Proprietary Information
1990 2000 2010 2020
Chemical -20C Biological -80C Cellular -190C
Wave after Wave of Innovation in Life Sciences
16
• Cell therapy
• Regenerative medicine
• Precision medicine
• Biological samples
• Genomic analysis
• Drug discovery
• Chemical compounds
• High throughput screening
Number of Samples
Unending Growth in the Demand for Samples
© 2018 Brooks Automation, Inc. • Proprietary Information
Multiple Waves of Innovation and Expanded Offerings Driving SAM Growth in Life Sciences
17
2013 2016
$500M
$1.3B
$2.2B
2020
• Outsourced sample prep
and storage
• E2E cold chain management
• Genomic analysis
• E2E sample management
• Increased demand for informatics
• Disruptive liquid handling techniques
• Cryo cold chain for cell therapy
• Cold storage systems with related
service and consumables
© 2018 Brooks Automation, Inc. • Proprietary Information
Our Life Sciences Strategy in Action: 2017 Growth Drivers
18
$108
$149
$16
$8 $5
$4 $6
FY16 Systems Storage
Services
New
Developments
FY17 Genomics Consumables
& Instruments
• Doubled customer base
• Shipped system
capacity
for 50M samples
• Acquisitions
complement our growth
• Expanded our
Services Portfolio
38% year-over-year growth with contributions from all areas
$M
© 2018 Brooks Automation, Inc. • Proprietary Information
Agenda
19
Two strong platforms
The future
Brooks today
© 2018 Brooks Automation, Inc. • Proprietary Information
Consistent Strategy Going Forward
20
Extend leadership in core markets 1
Advance the rapid growth of Life Sciences
with organic and acquisition investments 2
Drive margin expansion 3
Utilize balanced and disciplined
capital deployment 4
© 2018 Brooks Automation, Inc. • Proprietary Information
Extending the Financial Model Objectives to 2021
21
Revenue Earnings Per Share*
$693
2017 2021
$1,050-1,180
$93
2017 2021
$215-255
2017 2021
$2.30-2.70
$1.23
Operating Income and
Margins*
$M
~12% CAGR
~ +8pts ~20% CAGR
13%
21%
* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization,
restructuring expense, and other special charges. © 2018 Brooks Automation, Inc. • Proprietary Information
K E Y M E S S A G E S T O D A Y
Two Strong Platforms: Delivering Solid Growth
* Non-GAAP financial measures – see reconciliation tables. 22
By 2021,
Operating Margin*
> 20%
EPS* doubles to
~ $2.50
• Semiconductor, positioned in high growth market segments
• Life Sciences, profitable and high growth
Two Strong Businesses
• #1 in all key market segments
• Strong backlog and design wins
• Premier customer relationships
Clear Market Leadership Positions
• Multiple growth drivers in both Segments
• Attractive ROIC
Executing Growth Strategy
© 2018 Brooks Automation, Inc. • Proprietary Information
Dave JarzynkaSenior Vice President Brooks Semiconductor Solutions Group
We enable our customers process advantage
1
Agenda
Positioned for continued growth
The business today
2© 2018 Brooks Automation, Inc. • Proprietary Information
Semiconductor Group at a Glance
LTM
Revenue growth 15%
Gross margin %* 42%
Revenue Breakdown
27%
Cryogenics• Cryopumps• Cryochillers• Service
Key Metrics
* Non-GAAP financial measures – see reconciliation tables. Note: LTM results from Mar’18 3
Gross margin %* 42%
Operating income %* 19%
2018 1H Design win business 38 wins
Engineering based business >375 patents
Diversified business with leadership positions
73%
27%
Automation• Robots,
Systems• Contamination
Control• Service
FY2017$544M
© 2018 Brooks Automation, Inc. • Proprietary Information
What We Do – Enabling a Process Advantage
VacuumAutomation ##11Contamination
Control##11
4
##11Cryogenic Pumping and Cooling
Advanced PackagingWafer Transport##11 Trusted Global Service Trusted Global Service
PlatformPlatformTrusted Global Service Trusted Global Service
PlatformPlatform
© 2018 Brooks Automation, Inc. • Proprietary Information
What We Do – Enabling a Process Advantage
##11##11
• Adopted in Memoryfabs
• Wins in China• LEAP vacuum robot
launched
Since Since 20162016
VacuumAutomation
ContaminationControl
5
##11##11 • Adv. Packaging with chip makers
• Design wins in China
• Wins in China• POD clean for EUV • Expansion into Reticle solutions• Two acquisitions
• Cryogenics into Chuck Cooling
launched• 10 platform wins
Cryogenic Pumping and Cooling
Advanced PackagingWafer Transport
© 2018 Brooks Automation, Inc. • Proprietary Information
Who We Do it For – Leading Customers in High Growth Segments
DeviceDeviceManufacturersManufacturers
33%33%
• ContaminationControl
• Services
100%
2017
• VacuumAutomation
• Advanced Packaging
6
EquipmentEquipmentManufacturersManufacturers
67%67%
Revenue© 2018 Brooks Automation, Inc. • Proprietary Information
Transformed Portfolio to High Growth Segments
$720-$850M
$544M$485M
• Cryogenic solutions
• Global service
• Legacy automation
• 200mm solutions
~8% CAGR <50%
growing at
~3% CAGR
Stable Leadership
FY15 FY17 FY21
Growth portfolio ~ 50% of revenue 7
• Advanced packaging
• Contamination control
• Vacuum automation
• 200mm solutions
>50%growing at
~16%CAGR
Growth Markets
© 2018 Brooks Automation, Inc. • Proprietary Information
$379M
$485M $544M
33%36%
40% $89M
Strong Track Record of Top Line Growth and Margin Expansion
Revenue Operating Income and Margin*Gross Margin*
53%CAGR
12% CAGR
+7 pts
$379M
2013 2015 2017 2013 2015 2017
$16M
$54M
4%4% 11%11% 16%16%
2013 2015 2017
* Non-GAAP financial measures – see reconciliation tables. 88
Strong income flow through on top line growth© 2018 Brooks Automation, Inc. • Proprietary Information
Agenda
Positioned for continued growth
The business today
9© 2018 Brooks Automation, Inc. • Proprietary Information
Vacuum Automation Advanced Packaging Contamination Control
Key challenges• Vacuum Transport• Atomic Level Precision
• Complex Wafers• Unique Carriers
• Carrier Purity• Reticle Integrity
FY17 revenue $135M $46M $84M
Well Positioned and Strong Momentum in Three Key Growth Markets
FY17 revenue $135M $46M $84M
CAGR 12% 26% 42%
Market size* $250M $140M $120M
Market growth 10% 12% 16%
Growth Inflections 3D Structures Plasma, Etching and Bonding EUV Lithography
Growth initiatives #1 #2 #3
10© 2018 Brooks Automation, Inc. • Proprietary Information *Gartner and Management Estimates
• 10% market growth
• Large OEMs outsourcing robot automation
• 10 new wins at <10nm for MagnaTran® LEAP™$87M
$107M
$135M
Focus
G R O W T H D R I V E R # 1
Vacuum Automation Increasing Share in a High Growth Market
Revenue Growth
11
• Tier 2 OEMs in Korea and China Systems expanding
• 12% CAGR
$87M
FY13 FY15 FY17
Increased value by solving our customers’ technical challenges © 2018 Brooks Automation, Inc. • Proprietary Information
1995Brooks Korea Established
2012Vacuum System Manufacturing
2013Expand to FOUP Clean
2015-17Expanding Share
2001Semi OEM Shipments
2011Local Design Engineering andAtmospheric and Vacuum Mfg.
G R O W T H D R I V E R # 1
Case Study: Brooks Korea Growing by Enabling Local OEMs
Brooks Korea Revenue ($M)
$22
$47
Manufacturing Share Shipments
12
$10
2008 2013 2017
• Automation partner for OEM success
• Expanding service and CCS business
• >50% of Vacuum Automationmarket share
Full capability design, supply and manufacturing
Limited repair andfield support
© 2018 Brooks Automation, Inc. • Proprietary Information
G R O W T H D R I V E R # 2
Advanced Packaging: Increasing Share in a High Growth Market
• 12% market growth
• 28 Customers, 3 wins with leading chip makers
• 10 applications, including new wins in Plasma Dicing and Bonding $28M
$46M
Focus Revenue Growth
13
• 26% CAGR$18M
$28M
FY13 FY15 FY17
Increased value by solving our customers’ technical challenges © 2018 Brooks Automation, Inc. • Proprietary Information
• 16% market growth
• Expanding value with FOUP Inspection Metrology
• Only qualified tool for EUV pod Clean
• Memory adoption starting
G R O W T H D R I V E R # 3
Contamination Control: Increasing Share in a High Growth Market
$44M
$84M
Focus Revenue Growth
• Expanding into Reticle Storage and Inspection
• EUV Reticle storage starting to ramp
• 42% CAGR
*Includes amounts prior to BRKS ownership 14
$21M*
$44M
FY13 FY15 FY17
Increased value by solving our customers’ technical challenges © 2018 Brooks Automation, Inc. • Proprietary Information
With Profit
�
G R O W T H I N I T I A T I V E S
Strong Platform Enables a Profitable Growth Ramp Ahead
• New advanced function robot offerings
• 7 Points of GM% improvement over past 5 years
Growth fromNew Opportunities
�
Strong PlatformStrong Platform
15
offerings
• Increased challenges are driving new and more vacuum processes
• New applications in new markets
over past 5 years
• Increasing value position of customer solutions
• Expanding Operating Margin
© 2018 Brooks Automation, Inc. • Proprietary Information
Expecting Strong Financial Performance Going Forward
Revenue Operating Margin*
$720-$850
16%
20-25%7-12%
CAGR~2X
Profit $
$M
16
$544
FY17 FY21
16%
FY17 FY21
Exceeds Semi market growth by 2 - 4 pts per year* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization, restructuring expense, and other special charges.
© 2018 Brooks Automation, Inc. • Proprietary Information
I N S U M M A R Y
Proven Leadership with Growth Outperforming the Market
Continued Growth • High growth track record and ~9% growth to 2021
Strong Platform • Building on strong platform – growth opportunities have momentum
17
Strong Platform • Building on strong platform – growth opportunities have momentum
Margin Expansion • Profit margin expansion track record continues
Record Wins • Winning more designs now than ever before
© 2018 Brooks Automation, Inc. • Proprietary Information
Enhancing insights and speed of research with
market-leading sample management solutions
Dusty Tenney President, Brooks Life Sciences
Brooks Life Sciences – Agenda
2
Strong Markets
Key Strengths
Life Sciences Today
Growth Drivers
© 2018 Brooks Automation, Inc. • Proprietary Information
Brooks Life Sciences at a Glance
Key Metrics
FY16 FY17 1H18
Growth% 59% 38% 41%
# Employees 500 600 700
# Customers 600 800 1,100
# Acquisitions 0 3 2
% Brooks revenue 19% 21% 24%
23%
57%
20% Automated
Solutions
Consumables
& Instruments
Services/
Informatics
3
Part of Brooks growth engine
Revenue by Product Mix
2017
© 2018 Brooks Automation, Inc. • Proprietary Information
4
Key Developments Since Our Last Investor Day
On track to deliver $200M revenue in 2018
Delivering sustained, increasing profitability
Completed five acquisitions
Targeting 15% OP Margin* in 2019
4 * Non-GAAP financial measures – Projections exclude intangibles amortization, restructuring expense, and other special charges. © 2018 Brooks Automation, Inc. • Proprietary Information
$43
$68
$149
2013 2015 2017
-$8
-$17
$7
4%
-19%
-25%
Key Transition: Life Sciences Now Profitable
5
Revenue ($M)
Operating Margin* Operating Income* ($M)
2013 2015
2017 2017
36% CAGR
Profitable Growth
Transition to Profit
5
2013 2015
* Non-GAAP financial measures – see reconciliation tables. © 2018 Brooks Automation, Inc. • Proprietary Information
Consumables Instruments
20%
Automated
Solutions 23%
Services /
Informatics 57%
NA
63%
EU
35%
APAC
2%
Pharma
41%
Biotech
20%
Health- care /
Clinical
22%
Academic/ Govt 17%
Life Sciences’ Attractive Business Model
6 6
Recurring
Diverse Customer Base High Recurring Revenues Global Reach
38% Growth 53% Recurring Revenue 1,000 + Customers
© 2018 Brooks Automation, Inc. • Proprietary Information
2016 2017 2018 Est 2018 Target
Focus on Growth
7
Cross-selling initiatives
Highest quality samples
Outsourcing trend
Cold-chain automation
Emerging markets
ROIC discipline
Key Enablers $M
Life Sciences Organic Growth
200
108
+41
2021 model CAGR sustains high double-digit organic growth
+51
Organic
Acquisition
© 2018 Brooks Automation, Inc. • Proprietary Information
Building the Only One-Stop Comprehensive Sample Management Solution
How our acquisitions and partnerships fit into our vision
Solution Acquisitions Partnerships
Sample Storage
Media
Automation
Quality Archival
Storage
Complete Genomic
Analysis
Integrated
Informatics Suite
BioSpeciMan
8 © 2018 Brooks Automation, Inc. • Proprietary Information
Our Customers are the Leading Healthcare Organizations
1000+ leading healthcare companies depend on Brooks 9
Long-Standing Relationships New Strategic Relationships
© 2018 Brooks Automation, Inc. • Proprietary Information
Brooks Life Sciences – Agenda
10
Strong Markets
Key Strengths
Life Sciences Today
Growth Drivers
© 2018 Brooks Automation, Inc. • Proprietary Information
The Need for Samples Exploding
Market Trends Customer Needs
• Biologics
• Precision and
regenerative medicine
• Outsourcing
• Consumer genealogy
and genomics
• Digital technology
• High quality, annotated
samples
• Scientific services that
add value to assets
• Fully integrated
solutions
• Short and long-term
storage capability
• Informatics virtualize
and visualize
11
Pharma
41%
Biotech
20%
Healthcare/ Clinical
22%
Academic/ Government
17%
Customers
© 2018 Brooks Automation, Inc. • Proprietary Information
Positioned in a Large and Rapidly Growing Market
Other
• Translational
Samples
• Pathology
• API $1.7B
$2.5B
2017 2021
Growth in Sample Storage Addressable Market2 Breakdown of $7B1 Sample Storage Market
Cell Lines
Clinical Research Samples
Discovery Research
Compound Storage
Clinical Trials
Our share ~10% of $1.7B addressable market
~10% CAGR
Brooks growing at 2X market
12 1Total Addressable Market (TAM) - Market Research and Company Estimates
2Serviceable Addressable Market (SAM) – Market Research and Company Estimates © 2018 Brooks Automation, Inc. • Proprietary Information
Leading Positions in Large, Fragmented Market
Serviceable Addressable Market1 Differentiating Capabilities
Sample Management
• #1 provider of integrate sample storage and logistics
Scientific Services
• Leading provider of sample genomic analysis
Sample Informatics
• Defining the market to increase value of sample assets
Automation
• Market leader for compound and biological sample cold storage and retrieval
Consumables
• #2 provider of sample tubes, plates, and related instruments for cold storage automation
13
Services
and
Informatics
Automation
and
Sample Media
$1.1B
$0.6B
$1.7B
1Market Research and Company Estimates © 2018 Brooks Automation, Inc. • Proprietary Information
Well Positioned in Our Expanding End Markets
Pharma / Biotech Healthcare / Clinical Academic / Government Total
Market size1,2 $1.0B $0.5B $0.2B $1.7B
FY 17 Revenue $91M $33M $25M $149M
Market share 9% 7% 13% 9%
Revenue mix 61% 22% 17% 100%
Market growth1 10%
BRKS organic growth 27%
14 1Consultative Studies and Company Estimates 2SAM – Serviceable Addressable Market © 2018 Brooks Automation, Inc. • Proprietary Information
Brooks Life Sciences – Agenda
15
Strong Markets
Key Strengths
Life Sciences Today
Growth Drivers
© 2018 Brooks Automation, Inc. • Proprietary Information
Key Strengths We are Leveraging
16
Uniquely positioned in the industry 1
Large, growing, recurring revenue base 2
The advantage of scale 3
© 2018 Brooks Automation, Inc. • Proprietary Information
Comprehensive Sample Management Solution
Uniquely Positioned in the Industry
Consumables Automation High
Quality Archival Storage
Scientific / Lab
Services Informatics
Flexible Business
Model
Large Central Laboratories
Leading Life Science Company
17
1
© 2018 Brooks Automation, Inc. • Proprietary Information
How We Leverage Our Acquisitions to Cross Sell
18
Integrated solutions drives customer efficiency – cost and time
Research / Clinical Research Sample Workflow
Informatics Kit Transport Process Store Retrieve
1
© 2018 Brooks Automation, Inc. • Proprietary Information
65%
Total samples at customers’ sites managed by on-site Brooks personnel
Total customer samples in Brooks biorepositories
Percent of total samples collected remaining in storage1
Large and Growing Sample Collection Drives Recurring Revenue Base
19
Samples create sustainable annuity stream for Brooks
3M
32M
1Net of retrievals and destruction
2
© 2018 Brooks Automation, Inc. • Proprietary Information
Stored Samples Create Value-Add Opportunities and Strong Annuity
0
30
60
2015 2017 2021
Samples in Storage (Millions)
20
2015 2018 2021
Value-Add Opportunities (Average $ per sample)
• Storage
$1
$2
$4
• Sample Prep
• Relocation
• Storage
• Scientific Services
• Kitting
• Informatics
• Sample Prep
• Relocation
• Storage
2
32M samples today and growing © 2018 Brooks Automation, Inc. • Proprietary Information
3 The Advantages of Scale
21
No. of Stores and Storage Capacity Our Scale
• Over 150M samples stored in
Brooks automated stores
• Strong market positions for biologics,
tissues / cells and compounds
• Comprehensive sample
management solutions
for all of the top 20 Pharma
Over 60% market share in automated stores
220 235
250
280
325
88 113
125 135 150
FY13 FY14 FY15 FY16 FY17
# of Stores Total Sample Storage Capacity (M)
© 2018 Brooks Automation, Inc. • Proprietary Information
Brooks Life Sciences – Agenda
22
Strong Markets
Key Strengths
Life Sciences Today
Growth Drivers
© 2018 Brooks Automation, Inc. • Proprietary Information
Key Growth Drivers
23
Grow base
offerings through
existing customers
1
Expand solutions
throughout sample
management
workflows
2
Extend capabilities
into new markets
3
© 2018 Brooks Automation, Inc. • Proprietary Information
G R O W T H D R I V E R # 1
Share Gains Through Existing Customers
24
• Cryogenic automation platform expansion
• Unique and differentiating consumables, accessories and instruments
• Stores platform development
• Clinical ‘stockyard’
• Integrated bioinformatics solutions
Expanding, integrated portfolio has enabled share gains
Large Pharma Example
$2M $8M
$83M
$180M
FY17 FY21
21% CAGR
2018 2015
© 2018 Brooks Automation, Inc. • Proprietary Information
G R O W T H D R I V E R # 2
Expanding Range of Sample Management Solutions
25
Informatics Kit Transport Process Store Retrieve
Research / Clinical Research Sample Workflow
• Integrated ‘sample hub’ to provide full-range of storage and scientific services
• Cell line services and related cell therapy infrastructure and logistics
• Clinical study expansions
• Consumer market applications
$66M
$150M
FY17 FY21
23% CAGR
Integrated solutions drives customer value – cost and time © 2018 Brooks Automation, Inc. • Proprietary Information
G R O W T H D R I V E R # 3
Expanding Solutions to New Markets and Geographies
26
Significant investments underway in emerging markets
• Expand into clinical, cell therapy and personalized medicine
• Build out capabilities in Asia, especially China
• Expand network of direct and indirect sales channels
• Build BRAND recognition globally
$4M1
$20M1
FY17 FY21
50% CAGR
1Geographical overlay to previous revenue models © 2018 Brooks Automation, Inc. • Proprietary Information
Share gains and
innovation
Improved, higher
margin mix
Structural
optimization
Focused on
execution
2021 Target Model: Brooks Life Sciences Priorities
Life Sciences
FY17 FY21 Growth / Change
Revenue $149M $330M 22%
CAGR
Gross Margin* 38% 42-44% +4-6 pts
Operating
Margin* 4% ~20% ~16 pts
• BioStorage services
• Consumables
• Complete solutions
• Software, Cryo
• Increased sample value
• Material cost reductions
• Lean operations
• Sales team productivity
• Cross selling
• Strong leadership
• Strong markets
• Strong team
Strong markets, strong positions
27 * Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization,
restructuring expense, and other special charges. © 2018 Brooks Automation, Inc. • Proprietary Information
I N S U M M A R Y
Outpacing the Market to Deliver Continued Strong Growth and Returns
28
Accelerated Growth • Investments positioned to sustain growth across the portfolio
=> Significantly outpacing underlying market growth
Recurring Revenues • Recurring revenue streams and strong backlog position
=> Provide confidence in future outlook
Doubling
Operating Profit
• Pathway to 20%+ Operating Profit* paved for FY21 => Starts with Q418 exit at 10%
Market Leader • Most comprehensive sample management solution in the market
=> 1st choice for top research companies
* Non-GAAP financial measures – see reconciliation tables. © 2018 Brooks Automation, Inc. • Proprietary Information
I N S U M M A R Y
Outpacing the Market to Deliver Continued Strong Growth and Returns
29
Accelerated Growth • Investments positioned to sustain growth across the portfolio
=> Significantly outpacing underlying market growth
Recurring Revenues • Recurring revenue streams and strong backlog position
=> Provide confidence in future outlook
Doubling
Operating Profit
• Pathway to 20%+ Operating Profit* paved for FY21 => Starts with Q4 FY18 exit at 10%
Market Leader • Most comprehensive sample management solution in the market
=> 1st choice for top research companies
* Non-GAAP financial measures – see reconciliation tables. © 2018 Brooks Automation, Inc. • Proprietary Information
Lindon Robertson Chief Financial Officer
Agenda
2
Update to business model
Financial targets
Performance track record
© 2018 Brooks Automation, Inc. • Proprietary Information
Significant Transformation of Brooks
* Non-GAAP financial measures – see reconciliation tables. Note: Today reflects LTM results from Mar’18. 3
2013 Today
Expanded addressable
market $1.6B $3.6B
Increase
2X
Two significant growth
platforms with Life Sciences 4X revenue
Higher gross margins* 33% 41% 8 points
Adjusted EBITDA* $29M $153M 5X
ROIC increased above
WACC -2% 14% 16 points
10% 23%
© 2018 Brooks Automation, Inc. • Proprietary Information
Track Record of Delivering on Commitments
4
$M, except EPS
In 2014 We Set a 3-year Model for FY’17 and Exceeded Company Targets
Revenue:
Gross Margin:
EPS:
Semi:
Revenue exceeded target range
Life Sciences:
Revenue exceeded target with help
of acquisitions
Revenue EPS*
422
2013
533
2015
693
2017
610-650 Target
$0.12
2013
$0.45
2015 2017
$1.23
$0.80-1.00 Target
* Non-GAAP financial measures – see reconciliation tables. Note: LTM results from Mar’18. © 2018 Brooks Automation, Inc. • Proprietary Information
Track Record of Delivering on Commitments
5
Revenue EPS*
In 2016 We Set a High Growth 3-year Model for FY’19, then Raised the Targets Higher
$1.00-1.30 Jun ‘16
Original targets set
in June, 2016
Revenue:
Gross Margin:
EPS:
$M, except EPS
* Non-GAAP financial measures – see reconciliation tables. Note: LTM results from Mar’18.
650-750 Jun ‘16
$1.50-1.80 Nov ‘17
Updated the model in
November, 2017
Revenue:
Gross Margin:
EPS:
On Track
On Track
At Target
• Semi: Tracking to exceed range again
• Life Sciences: Tracking to $240M
2015 2017 LTM
800-870 Nov ‘17
553
693
760
Target
2015 2017 LTM 2019
$0.45
$1.23
$1.42
Target
2019
© 2018 Brooks Automation, Inc. • Proprietary Information
Agenda
6
Update to business model
Financial targets
Performance track record
© 2018 Brooks Automation, Inc. • Proprietary Information
7
$M FY 2015 FY 2017 LTM FY 2019
Update
Today’s
Update
Total Revenue Semi
Life Sciences
% of total
$553M $485M
$68M
12%
$693M $544M
$149M
21%
$760M $584M
$177M
23%
$880-940M $640-$700M
$240M
~26%
+$75M +$75M
Gross Margin* 35.4% 39.2% 40.8% ~42% +1 pt.
Operating Expenses*
% of Revenue 28.8% 25.8% 25.9% ~23% -1 pt.
Operating Income*
% of Revenue
$37M
6.6%
$93M
13.5%
$114M
15.0%
$165-190M
~20%
+$27M
+2 pt.
Tax Rate 24% 15% 13% ~22% +4 pt.
EBITDA*
EPS*
$64M
$0.45
$131M
$1.23
$153M
$1.42
$205-230M
$1.70-2.00
+$32M
+$0.20
Updating 2019 Model Again Today: Near Term – FY19 Model Continues to Track Ahead of Target
* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization, restructuring
expense, and other special charges. Note: LTM results from Mar’18. © 2018 Brooks Automation, Inc. • Proprietary Information
$0.45
$1.23
$1.42
2015 2017 LTM 2019 Target
553
693
760
2015 2017 LTM 2019 Target
Updating 2019 Model Again Today
8
$M, except EPS
Near term - FY19 Model Continues to Track Ahead of Target
Revenue EPS*
May ‘18 880-940
May ‘18 $1.70-2.00
Revenue:
EPS*:
Semi: Tracking to $640-700M
• Tax rate update of 22% reflects
the removal of the U.S. valuation
allowance on Deferred Tax Assets
$880 - $940M
$1.70 - $2.00
Life Sciences: Tracking to $240M
Jun ’16 650-750
Nov ‘17 800-870 Nov ’17
$1.50-1.80
Jun ’16 $1.00-1.30
* Non-GAAP financial measures – see reconciliation tables. Note: LTM results from Mar’18. © 2018 Brooks Automation, Inc. • Proprietary Information
New FY19 Target Model is Within Sight on Semi Momentum and Life Sciences Roadmap
9
$1.42
~$0.08
~$0.24 ~$0.12
~$0.36
~$0.21
$1.70-2.00
LTM Life Sciences
Growth
Semi
Momentum
Interest
Expense &
JV Income
FY19
Adjusted EPS*
Tax Rate
Ex Val Allow
13% 22%
Life Sciences
GM%
Expansion Updated
Target Range
* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization, restructuring expense,
and other special charges. Note: LTM results from Mar’18.
© 2018 Brooks Automation, Inc. • Proprietary Information
Confidence in Life Sciences: Comprehensive Offerings, High Growth and a Solid Mix of Recurring Revenue
10
Diverse Base of Revenue
Transactional Revenue Recurring Revenue
2017 Growth of
57%
2017 Growth of
24%
Sample Storage
30%
Consumables 14%
Infrastructure Service
9% Systems
22%
Instruments, Transport, & Informatics
14%
Genomics 11%
53% Recurring
Revenue
Agenda
11
Update to business model
Financial targets
Performance track record
© 2018 Brooks Automation, Inc. • Proprietary Information
FY 2021 Model – Continued Momentum
12
• Revenue range $720 – $850M
7-12% CAGR from 2017
• Gross margin target of 42-44%
• Operating expense productivity
Life Sciences Drivers Semiconductor Drivers
~20%
Operating Margins
~30% of Brooks revenue
20-25%
Operating Margins
~70% of Brooks revenue
Operating Margins exceed 20%
ROIC of 20%+
• Revenue growth to ~$330M
22% CAGR from 2017
18% CAGR from 2018 target
• Gross margin target of 42-44%
• Operating expense productivity
Projections exclude intangibles amortization, restructuring expense, and other special charges. © 2018 Brooks Automation, Inc. • Proprietary Information
FY 2021 Target Model – New Goals for the Longer Term
13
$M FY 2015 FY 2017 LTM FY 2021
Total Revenue Semi
Life Sciences
% of total
$553M $485M
$68M
12%
$693M $544M
$149M
21%
$760M $584M
$177M
23%
$1,050-1,180M $720-$850M
$330M
~30%
Gross Margin* 35.4% 39.2% 40.8% 42-44%
Operating Expenses*
% of Revenue 28.8% 25.8% 25.9% ~23%
Operating Income*
% of Revenue
$37M
6.6%
$93M
13.5%
$114M
15.0%
$215-255M
~21%
Tax Rate 24% 15% 13% ~22%
EBITDA*
EPS*
$64M
$0.45
$131M
$1.23
$153M
$1.42
$250-290M
$2.30-2.70
* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization, restructuring
expense, and other special charges. Note: LTM results from Mar’18. © 2018 Brooks Automation, Inc. • Proprietary Information
Extending the Financial Model Objectives to 2021
14
Revenue Earnings Per Share*
$693
2017 2021
$1,050-1,180
$93
2017 2021
$215-255
2017 2021
$2.30-2.70
$1.23
Operating Income and
Margins*
$M
~12% CAGR
~ +8pts ~2X
13%
21%
* Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization,
restructuring expense, and other special charges. © 2018 Brooks Automation, Inc. • Proprietary Information
Organic Growth
• Invest in R&D, ~$50M annually
• ~$10M+ CAPEX annually
$300M
42%
Acquisitions
• Semiconductor and Life Sciences
• Divestitures of $85M
• ROIC focus
$288M
40%
Shareholder Return
• Quarterly dividend of
$0.10 per share
$127M
18%
Over last five fiscal years,
$700M of capital deployed to enhance
shareholder returns
Balanced and Disciplined Capital Deployment
15 Note: Figures referenced represent the period from FY13 through FY17. © 2018 Brooks Automation, Inc. • Proprietary Information
Acquisitions Will Continue
• RTS for $3M
• Nexus for $85M
• Divested of
Contract
Manufacturing
for $78M
• Crossing
Automation
for $59M
• Matrical for $9M
• 22% of BioCision
for $4M
• Divested of Granville-
Phillips
instrumentation
for $87M
• DMS for $32M
16
• FluidX for $16M
• BioStorage
Technologies
for $125M
• Contact for $7M
2011 / 12
2013 / 14
2015 / 16
• BioCision add’l $11M
• PBMMI for $34M
• FreezerPro software
for $5M
• 4titude Ltd. for $66M
• BioSpeciMan for $5M
• Tec-Sem for $14M
2017 / 18 Acquisitions
Life Sciences ~$365M
Semi ~$115M
Expect More
ROIC Focus
Life Sciences – Growth Orientation
Semiconductor – Opportunistic
I N S U M M A R Y
Two High Performance Businesses. Positioned for Profitable Growth
17
Two Strong Markets
Technology complexity
driving higher equipment
demand
Research requires high
volume & high integrity of
samples, driving an
increased need for
infrastructure
Semiconductor
Capital Equipment
Life Sciences
Sample Management
Two Strong Leadership Positions
Leading in Semi with
deep engineering
One-of-a-kind suite of
Life Science offerings
for on-site and off-site
sample management
Attractive Long Term
Financial Model
Two profitable growth
businesses
High drop-through to
bottom line for profits
& cash
Track Record of Effective Capital
Deployment
ROIC > WACC
Capturing opportunity
for growth & value with
acquisitions
7th year of dividends
Zero net debt and
strong liquidity
© 2018 Brooks Automation, Inc. • Proprietary Information
GAAP to Non-GAAP Reconciliations
Investor Day May 22, 2018
Non-GAAP Operating Performance Consolidated Results
2 © 2018 Brooks Automation, Inc. • Proprietary Information * Non-GAAP financial measures – see reconciliation tables within this appendix.
2013 and 2014 results shown on continuing operations basis.
$ millions FY13 FY15 FY17
Revenue 422 553 693
Gross profit* 141 196 272
Gross profit margin* 33.5 % 35.4 % 39.2 %
R&D expenses 46 52 47 SG&A expenses* 90 107 132
Operating income * 5 37 93
Operating margin* 1.2 % 6.6 % 13.5 %
Other income (expense) 2 3 (1) Tax benefit (provision)* (2) (10) (15) JV earnings (losses)* 2 1 10
Net income* 8 31 87
Net income margin* 1.8 % 5.5 % 12.6 %
Diluted Non-GAAP EPS - Continuing Ops* 0.12 0.45 1.23
Diluted GAAP EPS - Continuing Ops (0.11) 0.21 0.89
Adjusted EBITDA* 29 64 131
Non-GAAP Segment Operating Performance
3 © 2018 Brooks Automation, Inc. • Proprietary Information * Non-GAAP financial measures – see reconciliation tables within this appendix.
2013 and 2014 results shown on continuing operations basis.
$ millions FY13 FY15 FY17 FY'13 FY'15 FY'17
Revenue 379 485 544 43 68 149
Gross profit* 123 176 215 18 20 57
Gross profit margin* 32.5 % 36.2 % 39.6 % 42.2 % 29.8 % 38.0 %
Operating expenses 107 122 126 27 37 50
Operating income * 16 54 89 (8) (17) 7
Operating margin* 4.1 % 11.1 % 16.4 % (19.1)% (25.0)% 4.4 %
Brooks
Life Sciences
Brooks
Semiconductor Solutions
FY13 GAAP to Non-GAAP Reconciliation Consolidated Results
4
$ millions, except EPS
GAAP
Results
Acquisition-
Related Costs
Amortization
Expense
Restructuring
Charges
Impairment
Charges
Gain from
Asset
Disposal
Non-GAAP
Results
Revenue 422.4 - - - - - 422.4
Gross profit 132.3 3.0 4.1 - 1.9 - 141.3
Gross profit margin 31.3% 33.5%
Research and development (46.2) - - - - - (46.2)
Selling, general and administrative (96.5) 0.9 5.7 - 0.1 - (89.8)
Restructuring charges (6.4) - - 6.4 - - -
Operating profit (16.8) 4.0 9.8 6.4 2.0 - 5.3
Operating profit margin (4.0%) 1.2%
Interest income, net 1.0 - - - - - 1.0
Other income, net 1.2 - - - - (1.0) 0.2
Income tax benefit (provision) 5.0 (1.1) (3.0) (1.8) (0.7) 0.4 (1.2)
JV and noncontrolling interests 2.4 - - - - - 2.4
Net Income (7.2) 2.8 6.8 4.6 1.3 (0.7) 7.6
Diluted earnings per share (0.11) 0.04 0.10 0.07 0.02 (0.01) 0.12
© 2018 Brooks Automation, Inc. • Proprietary Information Results shown on continuing operations basis.
FY15 GAAP to Non-GAAP Reconciliation Consolidated Results
5
$ millions, except EPS
GAAP
Results
Acquisition-
Related
Costs
Amortization
Expense
Restructuring
Charges
JV
Liquidation
Asset Held
for Sale
Non-GAAP
Results
Revenue 552.7 - - - - - 552.7
Gross profit 189.1 1.5 5.2 - - - 195.8
Gross profit margin 34.2% 35.4%
Research and development (52.2) - - - - - (52.2)
Selling, general and administrative (115.3) 0.7 7.7 - - - (106.9)
Restructuring charges (4.7) - - 4.7 - - -
Operating profit 16.9 2.2 12.9 4.7 - - 36.7
Operating profit margin 3.1% 6.6%
Interest income, net 0.5 - - - - - 0.5
Other income, net 0.4 - - - - 1.9 2.4
Income tax benefit (provision) (3.4) (0.4) (4.0) (1.5) - (0.5) (9.7)
JV and noncontrolling interests (0.2) - - - 0.9 - 0.7
Net Income 14.2 1.9 8.9 3.2 0.9 1.5 30.5
Diluted earnings per share 0.21 0.03 0.13 0.05 0.01 0.02 0.45
© 2018 Brooks Automation, Inc. • Proprietary Information
6
$ millions, except EPS
GAAP
Results
Merger and
Aquistion
Costs
Amortization
Expense
Restructuring
Charges
Other
Special
Charges
Non-GAAP
Results
Revenue 692.9 - - - - 692.9
Gross profit 267.4 0.5 3.9 - - 271.8
Gross profit margin 38.6% 39.2%
Operating Expenses (200.1) 8.3 13.2 - - (178.5)
Restructuring charges (3.2) - - 3.2 - 0.0
Operating profit 64.1 8.8 17.1 3.2 - 93.3
Operating profit margin 9.3% 13.5%
Interest income, net 0.1 - - - - 0.1
Other income (expense), net 1.2 - - - (1.8) (0.6)
Income tax provision (12.1) (1.0) (1.9) (0.3) 0.1 (15.3)
JV and noncontrolling interests 9.4 - - - 0.2 9.6
Net Income 62.6 7.8 15.2 2.9 (1.5) 87.0
Diluted earnings per share 0.89 0.11 0.22 0.04 (0.02) 1.23
FY17 GAAP to Non-GAAP Reconciliation Consolidated Results
© 2018 Brooks Automation, Inc. • Proprietary Information
7
$ millions, except EPS
GAAP
Results
Q3 FY17
Merger and
Aquistion
Costs
Amortization
Expense
Restructuring
Charges
Non-GAAP
Results
Q3
FY17
GAAP
Results
Q4 FY17
Merger and
Aquistion
Costs
Amortization
Expense
Restructuring
Charges
Non-GAAP
Results
Q4
FY17
Revenue 181.7 - - - 181.7 181.9 - - - 181.9
Gross profit 71.6 0.1 1.1 - 72.7 74.4 - 0.8 - 75.2
Gross profit margin 39.4% 40.0% 40.9% 41.3%
Operating Expenses (52.0) 3.7 3.3 - (45.0) (56.4) 3.5 3.6 - (49.4)
Restructuring charges (0.8) - - 0.8 - (0.6) - - 0.6 -
Operating profit 18.8 3.7 4.3 0.8 27.7 17.4 3.5 4.4 0.6 25.8
Operating profit margin 10.3% 15.2% 9.6% 14.2%
Interest income, net 0.0 - - - 0.0 (0.1) - - - (0.1)
Other income (expense), net (0.3) - - - (0.3) 0.2 - - - 0.2
Income tax provision (3.7) (0.4) (0.4) (0.1) (4.6) (2.2) (0.5) (0.7) (0.1) (3.5)
JV and noncontrolling interests 2.5 - - - 2.5 2.1 - - - 2.1
Net Income 17.4 3.4 3.9 0.7 25.4 17.4 3.4 3.9 0.7 24.5
Diluted earnings per share 0.25 0.05 0.06 0.01 0.36 0.25 0.04 0.05 0.01 0.35
Q3'17 Q4'17
Q3’17 and Q4’17 GAAP to Non-GAAP Reconciliations Consolidated Results
© 2018 Brooks Automation, Inc. • Proprietary Information
8
$ millions, except EPS
GAAP
Results
Q1 FY18
Merger and
Acquisition
Costs
Amortization
Expense
Tax
Reform
Non-
GAAP
Results
Q1 FY18
GAAP
Results
Q2 FY18
Merger and
Acquisition
Costs
Amortization
Expense
Tax Related
Adjustments
Non-GAAP
Results
Q2 FY18
Revenue 189.3 - - - 189.3 207.3 - - - 207.3
Gross profit 75.2 1.2 0.9 - 77.3 84.2 - 1.0 - 85.2
Gross profit margin 39.7% 40.8% 40.6% 41.1%
Operating Expenses (54.4) 0.6 4.6 - (49.2) (60.4) 2.7 4.6 - (53.1)
Restructuring charges - - - - - (0.0) - - - -
Operating profit 20.8 1.8 5.5 - 28.1 23.8 2.7 5.6 - 32.1
Operating profit margin 11.0% 14.8% 11.5% 15.5%
Interest income, net (2.0) - - - (2.0) (1.8) - - - (1.8)
Other income, net (1.7) - - - (1.7) (0.3) - - - (0.3)
Income tax benefit (provision) (2.8) (0.3) (0.3) (0.7) (4.1) 43.9 (0.3) (0.6) (46.2) (3.2)
JV and noncontrolling interests 2.2 - - - 2.2 1.4 - - - 1.4
Net Income 16.5 1.5 5.2 (0.7) 22.5 67.0 2.4 5.0 (46.2) 28.3
Diluted earnings per share 0.23 0.02 0.07 (0.01) 0.32 0.95 0.03 0.07 (0.65) 0.40
Q2'18Q1'18
© 2018 Brooks Automation, Inc. • Proprietary Information
Q1’18 and Q2’18 GAAP to Non-GAAP Reconciliations Consolidated Results
GAAP to Non-GAAP Reconciliation Quarterly EBITDA and Adjusted EBITDA
9 © 2018 Brooks Automation, Inc. • Proprietary Information
Q3'17 Q4'17 Q1'18 Q2'18
Net income 17.4 17.4 16.5 67.0
Non-GAAP adjustments:
Interest income (0.1) (0.0) (0.1) (0.4)
Interest expense 0.1 0.1 2.2 2.2
Income tax provision 3.7 2.2 2.8 (43.9)
Depreciation 2.6 3.1 3.0 3.5
Amortization of intangible assets 4.3 4.4 5.5 5.6
EBITDA 27.9 27.2 29.9 34.1
Purchase accounting impact on inventory
and contracts acquired 0.1 - 1.2 -
Stock-based compensation 4.2 6.2 4.8 5.3
Restructuring charges 0.8 0.6 0.0 0.0
Merger and acquisition costs / Other 3.7 3.5 0.6 2.7
Adjusted EBITDAda 36.7 37.4 36.5 42.1
$ millions
GAAP to Non-GAAP Reconciliation Annual EBITDA and Adjusted EBITDA
10 © 2018 Brooks Automation, Inc. • Proprietary Information
$ millions FY13 FY15 FY17
Net income (loss) attributable to Brooks (2.2) 14.2 62.6
Non-GAAP adjustments:
Interest income (1.0) (0.9) (0.5)
Interest expense 0.0 0.4 0.4
Income tax provision (benefit) (5.0) 3.4 12.1
Depreciation 13.7 12.3 11.0
Amortization of intangible assets 9.8 12.9 17.1
EBITDA 15.2 42.3 102.8
Income from discontinued operations (5.0) - -
Purchase accounting impact on inventory
and contracts acquired 3.0 1.5 0.5
Stock-based compensation 7.6 12.2 17.3
Restructuring charges 6.4 4.7 3.2
Merger and acquisition costs / Other 1.9 3.6 6.7
Adjusted EBITDA 29.1 64.2 130.5
11
GAAP to Non-GAAP Reconciliation Quarterly Segment Results
© 2018 Brooks Automation, Inc. • Proprietary Information
$ millions Q3'17 Q4'17 Q1'18 Q2'18 Q3'17 Q4'17 Q1'18 Q2'18
GAAP gross profit 13.5 16.6 15.8 18.9 58.1 57.8 59.5 65.3
Non-GAAP adjustments:
Amortization of intangible assets 0.4 0.2 0.4 0.4 0.6 0.6 0.5 0.6
Purchase accounting impact on
inventory and contracts acquired 0.1 - 1.2 - - - - -
Non-GAAP gross profit 14.0 16.8 17.3 19.3 58.7 58.4 60.0 65.9
Operating expenses 12.4 14.4 15.9 16.2 31.9 34.6 33.1 34.5
Non-GAAP operating profit 1.6 2.3 1.4 3.1 26.8 23.8 26.9 31.4
Life Sciences
Brooks Brooks
Semiconductor Solutions
12 © 2018 Brooks Automation, Inc. • Proprietary Information
FY13 – FY17 GAAP to Non-GAAP Reconciliation Annual Segment Results
$ millions FY13 FY15 FY17 FY13 FY15 FY17
GAAP gross profit 14.1 17.7 54.8 118.2 171.4 212.7
Non-GAAP adjustments:
Amortization of intangible assets 1.8 1.6 1.4 2.2 3.6 2.5
Impairment of completed technology
intangible assets 1.9 - - - - -
Purchase accounting impact on
inventory and contracts acquired 0.4 1.0 0.4 2.7 0.6 0.1
Non-GAAP gross profit 18.2 20.3 56.6 123.1 175.5 215.3
Operating expenses 26.5 37.3 50.1 107.5 121.7 125.9
Non-GAAP operating profit (loss) (8.3) (17.0) 6.5 15.6 53.9 89.3
Life Sciences
Brooks
Semiconductor Solutions
Brooks
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