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Brooks Automation Jefferies Global Healthcare Conference June 7, 2018
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Page 1: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Brooks Automation

Jefferies Global Healthcare ConferenceJune 7, 2018

Page 2: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Safe Harbor Statement

“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Actof 1995; certain matters in this presentation, including forecasts of future demandand future Company performance, are forward-looking statements that aresubject to risks and uncertainties that could cause actual results to materiallydiffer, either better or worse, from those projected. Further discussions of riskfactors are available in the Company’s most recent SEC filings, including theannual report on Form 10-K for the fiscal year ended September 30, 2017 andany subsequent quarterly reports on Form 10-Q. The Company assumes noobligation to update the information in this presentation.

Regulation GThis presentation contains certain non-GAAP measures which are providedto assist in an understanding of the Brooks business and its operationalperformance. These measures should always be considered in conjunction withthe appropriate GAAP measure. Reconciliations of all non-GAAP amounts to therelevant GAAP amount are provided as an attachment to this presentation.

2© 2018 Brooks Automation, Inc. • Proprietary Information

Page 3: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Two Growth SegmentsLTM Revenue of $760M, +20% YoY

Brooks Automation at a Glance

3© 2018 Brooks Automation, Inc. • Proprietary Information

• Based in Chelmsford, MA• ~2,000 employees• $0.40/share annual dividend

• Sales in 50 countries• Operations in 11 countries • > 500 base patents

Life SciencesSample Management

23% of LTM Revenue

Cold Chain Management• Automated Cryo Storage• Outsourced Storage Service• Consumables, Instruments,

Genomics, & Software

Semiconductor Capital Equipment

77% of LTM Revenue

Fab Automation Solutions• Vacuum Automation• Contamination Control• Cryogenic Vacuum Products• Global Service Support

LTM results from Mar’18

Page 4: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

B R O O K S A U T O M A T I O N

Driving Performance. Delivering Profitable Growth.

• Driving performance

• Building on two strong platforms

• Inflection point for profitable growth

4© 2018 Brooks Automation, Inc. • Proprietary Information

Page 5: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

$422

$483

$553 $560

$693

$760

FY13 FY14 FY15 FY16 FY17 LTM

Track Record of Growth and Improving Profitability

5

$0.12 $0.25

$0.45 $0.47

$1.23

$1.42

FY13 FY14 FY15 FY16 FY17 LTM

And positioned for continued profitable growth

Revenue Earnings Per Share*$M except EPS

© 2018 Brooks Automation, Inc. • Proprietary Information * Non-GAAP financial measures – see reconciliation tables. Note: LTM results from Mar’18.

Page 6: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

FY13 FY15 FY17

Our Transformation to High Growth Segments Continues

6

$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

HighGrowth

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 7: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

B R O O K S A U T O M A T I O N

Driving Performance. Delivering Profitable Growth.

• Driving performance

• Building on two strong platforms

• Inflection point for profitable growth

7© 2018 Brooks Automation, Inc. • Proprietary Information

Page 8: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

The RelentlessPursuit of Another Breakthrough

Building on Two Strong Platforms

8

• Semiconductor technology depends on innovations in capital equipment

Electronics Technology

• Quality of life and leisure

• All research and cures depend on samples

Life Sciences

• Healthier, longer lives

© 2018 Brooks Automation, Inc. • Proprietary Information

Today’s Samples

Highly Strategic Assets

Critical to Speed of Research

Information Rich

Page 9: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Building on Two Strong Platforms

9

Life Sciences23% of Revenue

Cold Chain Management Solutions• Automated Cryo Storage• Outsourced Storage Service• Consumables, Instruments,

Genomics & Software

$108

$149

$177

FY16 FY17 LTM

+38%

$M

LTM results from Mar’18© 2018 Brooks Automation, Inc. • Proprietary Information

Page 10: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Life Sciences OfferingsProven Success and Market Leadership

10

Storage Services

Consumables & Instruments

Genomic Analysis and Informatics

© 2018 Brooks Automation, Inc. • Proprietary Information

Automation Infrastructure and Product Services

ComprehensiveSample

Management

#1

Page 11: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

NA63%

EU35%

APAC 2%

Pharma 41%

Biotech 20%

Health-care /

Clinical22%

Academic/ Govt17%

Life Sciences’ Attractive Business Model

11

Diverse Customer Base Global Reach

38% Growth1,000 + Customers

© 2018 Brooks Automation, Inc. • Proprietary Information

Diverse Base of Revenue

SampleStorage

30%

Consumables14%

InfrastructureService

9%Systems22%

Instruments,Transport, &Informatics

14%

Genomics11%

53%Recurring Revenue

RecurringTransactional

Page 12: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Our Customers are the Leading Healthcare Organizations

1000+ leading healthcare companies depend on Brooks12

Long-Standing Relationships New Strategic Relationships

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 13: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

The RelentlessPursuit of Another Breakthrough

Two Strong MarketsDriven by the desire for better and longer life

13

• Semiconductor technology depends on innovations in capital equipment

• Technology for lifestyle and leisure

SemiconductorEquipment

• All research and cures depend on samples

• Healthier, longer lives

Life Sciences

© 2018 Brooks Automation, Inc. • Proprietary Information

Today’s Semiconductor Manufacturing

Vacuum Environments

Engineering for Precision & Throughput Efficiencies

Contaminant Free Yields

Page 14: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Building on Two Strong Platforms

14

Semiconductor Equipment

$452

$544$584

FY16 FY17 LTM

LTM results from Mar’18

77% of LTM RevenueFab Automation Solutions

• Vacuum Automation• Contamination Control • Cryogenic Vacuum Products• Global Service Support

© 2018 Brooks Automation, Inc. • Proprietary Information

$M

+20%

Page 15: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

What We Do – Enabling a Process Advantage

Trusted Global Service Platform

VacuumAutomation#1

Recent Developments

LEAP vacuum robot launched10 platform wins

Cryogenics into

Chuck Cooling

Advanced Packagingwith chip makers

Design wins in China

Wins in ChinaAdopted in Memory fabs

Reticle solutions & POD cleanTwo acquisitions

Cryogenic Pumping and Cooling#1

© 2018 Brooks Automation, Inc. • Proprietary Information 15

#1ContaminationControl

#1Advanced PackagingWafer TransportTrusted Global

Service Platform

Page 16: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Well-Positioned in the Fastest Growing Segments of WFE

16

Calendar ’13 - ’17 Segment Revenue Growth (CAGR)

Deposition & Etch

Wafer-LevelPackaging

ContaminationControl

Technology drivers demand that these capabilities will continue to outgrow WFE for many years to come

High growth segments represent ~50% of Semi revenue

Three High Growth Segments

15%

25%28%

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 17: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

2017

Who We Do it For – Leading Customers in High Growth Segments

• VacuumAutomation

• Advanced Packaging

17

DeviceManufacturers

33%

EquipmentManufacturers

67%

• ContaminationControl

• Services

100%

Revenue© 2018 Brooks Automation, Inc. • Proprietary Information

Page 18: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

B R O O K S A U T O M A T I O N

Driving Performance. Delivering Profitable Growth.

• Driving performance

• Building on two strong platforms

• Inflection point for profitable growth

18© 2018 Brooks Automation, Inc. • Proprietary Information

Page 19: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Consistent Strategy Going Forward

19

Extend leadership in core markets1Advance the rapid growth of Life Sciences with organic and acquisition investments2Drive margin expansion3Utilize balanced and disciplined capital deployment4

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 20: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

20

$M FY 2015 FY 2017 LTM FY 2019 Update Update

Total RevenueSemiLife Sciences

% of total

$553M $485M$68M12%

$693M $544M$149M21%

$760M $584M$177M23%

$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

$37M6.6%

$93M13.5%

$114M15.0%

$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

Updated Model: Near Term – FY19 Model

* 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

Page 21: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

New FY19 Target Model is Within Sight onSemi Momentum and Life Sciences Roadmap

21

$1.42

~$0.08

~$0.24~$0.12

~$0.36

~$0.21

$1.70-2.00

LTM Life SciencesGrowth

SemiMomentum

Interest Expense & JV Income

FY19

Adjusted EPS*

Tax RateEx Val Allow13% 22%

Life SciencesGM%

ExpansionUpdated

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

Page 22: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

FY 2021 Model – Continued Momentum

22

• Revenue range $720 – $850M 7-12% CAGR from 2017

• Gross margin target of 42-44%

• Operating expense productivity

Life Sciences DriversSemiconductor 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 ~$330M22% CAGR from 201718% 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

Page 23: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Organic Growth

• Invest in R&D, ~$50M annually• ~$10M+ CAPEX annually

$300M42%

Acquisitions

• Semiconductor and Life Sciences

• Divestitures of $85M

• ROIC focus

$288M40%

Shareholder Return

• Quarterly dividend of $0.10 per share

$127M18%

Over last five fiscal years,$700M of capital deployed to enhance

shareholder returns

Balanced and Disciplined Capital Deployment

23Note: Figures referenced represent the period from FY13 through FY17.© 2018 Brooks Automation, Inc. • Proprietary Information

Page 24: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Acquisitions Will Continue

• RTS for $3M • Nexus for $85M

• Divested of Contract Manufacturing for $78M

• Crossing Automationfor $59M

• Matrical for $9M • 22% of BioCision

for $4M

• Divested of Granville-Phillips instrumentation for $87M

• DMS for $32M

24

• FluidX for $16M• BioStorage

Technologies for $125M

• Contact for $7M2011 / 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 / 18Acquisitions Life Sciences ~$365M Semi ~$115M

Expect More

ROIC Focus

Life Sciences – Growth Orientation

Semiconductor – Opportunistic

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 25: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Guidance Q3’18

25

$M except EPS Q3’17 Q4’17 Q1’18 Q2’18

GuidanceJuneQ3’18

Brooks RevenueAdj. Gross Margin*

$18240.0%

$18241.3%

$18940.8%

$20741.1%

$215-225~41%

Adjusted EBITDA*Op Cash Flow

$37$18

$37$35

$36$3

$42$20

$39-$46

Non-GAAP EPS* $0.36 $0.35 $0.32 $0.40 $0.40-$0.46

Dividends Per Share Returned to Shareholders

$0.10 $0.10 $0.10 $0.10 $0.10**

** The Board of Directors has approved a dividend of $0.10 per share payable on June 22, 2018 to stockholders of record on June 1, 2018.

© 2018 Brooks Automation, Inc. • Proprietary Information * Non-GAAP financial measures – see reconciliation tables. Projections exclude intangibles amortization, restructuring expense, and other special charges.

Page 26: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

I N S U M M A R Y

Two High Performance Businesses. Positioned for Profitable Growth

26

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 StrongLeadershipPositions

Leading in Semi with deep engineering

One-of-a-kind suite of Life Science offerings for on-site and off-site sample management

AttractiveLong 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

Page 27: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

GAAP to Non-GAAP Reconciliations

27© 2018 Brooks Automation, Inc. • Proprietary Information

Page 28: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Non-GAAP Operating PerformanceConsolidated Results

28* Non-GAAP financial measures – see reconciliation tables within this appendix. 2013 and 2014 results shown on continuing operations basis.

$ millions FY13 FY14 FY15 FY16 FY17

Revenue 422 483 553 560 693

Gross profit* 141 175 196 203 272 Gross profit margin* 33.5 % 36.2 % 35.4 % 36.2 % 39.2 %R&D expenses 46 53 52 52 47 SG&A expenses* 90 102 107 115 132

Operating income * 5 20 37 36 93 Operating margin* 1.2 % 4.2 % 6.6 % 6.4 % 13.5 %

Other income (expense) 2 1 3 (0) (1) Tax benefit (provision)* (2) (5) (10) (5) (15) JV earnings (losses)* 2 1 1 2 10

Net income* 8 17 31 33 87 Net income margin* 1.8 % 3.6 % 5.5 % 5.8 % 12.6 %

Diluted Non-GAAP EPS - Continuing Ops* 0.12 0.25 0.45 0.47 1.23 Diluted GAAP EPS - Continuing Ops (0.11) 0.02 0.21 (1.01) 0.89 Adjusted EBITDA* 29 45 64 63 131

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 29: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

Non-GAAP Segment Operating Performance

29

$ 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 %

BrooksLife Sciences

BrooksSemiconductor Solutions

© 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.

Page 30: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

FY13 GAAP to Non-GAAP ReconciliationConsolidated Results

30© 2018 Brooks Automation, Inc. • Proprietary Information

$ 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

Results shown on continuing operations basis.

Page 31: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

FY14 GAAP to Non-GAAP ReconciliationConsolidated Results

31© 2018 Brooks Automation, Inc. • Proprietary Information

$ millions, except EPS GAAP

Results

Merger and Acquisition

Costs Amortization

Expense

Restructuring

Charges Impairment

Charges Discontinued

Operations Non-GAAP

Results

Revenue 482.8 - - - - - 482.8

Gross profit 167.3 2.3 4.4 0.3 0.4 - 174.8

Gross profit margin 34.7% 36.2%

Research and development (52.6) - - - - - (52.6) Selling, general and administrative (111.1) 0.7 6.2 - 2.6 - (101.6) Restructuring charges (6.3) - - 6.3 - - -

Operating profit (2.7) 3.0 10.6 6.6 3.0 - 20.5

Operating profit margin (0.6%) 4.2%

Interest income, net 0.7 - - - - - 0.7 Other income, net 0.3 - - - - - 0.3 Income tax benefit (provision) 2.0 (0.8) (3.5) (2.1) (1.1) - (5.4) JV and noncontrolling interests 1.1 - - - - - 1.1 Income-discontinued operations, net of tax 30.0 - - - - (30.0) - Net Income 31.4 2.2 7.1 4.5 2.0 (30.0) 17.2

Diluted earnings per share 0.46 0.03 0.10 0.07 0.03 (0.44) 0.25

Results shown on continuing operations basis.

Page 32: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

FY15 GAAP to Non-GAAP ReconciliationConsolidated Results

32

$ 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

Page 33: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

FY16 GAAP to Non-GAAP ReconciliationConsolidated Results

33© 2018 Brooks Automation, Inc. • Proprietary Information

$ millions, except EPS GAAP

Results

Merger and Acquisition

Costs Amortization

Expense

Restructuring

Charges Deferred Tax Adjustments

Other Special Charges

Non-GAAP Results

Revenue 560.3 - - - - - 560.3

Gross profit 198.1 0.6 4.2 - - - 202.9

Gross profit margin 35.4% 36.2%

Research and development (51.5) - - - - - (51.5) Selling, general and administrative (130.3) 3.4 10.8 - 0.8 (115.3) Restructuring charges (12.0) - - 12.0 - - -

Operating profit 4.2 4.0 15.0 12.0 - 0.8 36.1

Operating profit margin 0.8% 6.4%

Interest income, net 0.3 - - - - - 0.3 Other income, net (0.6) - - - - - (0.6) Income tax benefit (provision) (75.8) (0.8) (4.9) (3.0) 79.3 (0.3) (5.5) JV and noncontrolling interests 2.4 - - 2.4

Net Income (69.5) 3.2 10.1 9.0 79.3 0.5 32.6

Diluted earnings (loss) per share (1.01) 0.05 0.14 0.13 1.15 0.01 0.47

Page 34: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

34

$ 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 ReconciliationConsolidated Results

© 2018 Brooks Automation, Inc. • Proprietary Information

Page 35: Brooks Automation...Well-Positioned in the Fastest Growing Segments of WFE 16 Calendar ’13 - ’17 Segment Revenue Growth (CAGR) Deposition & Etch Wafer-Level Packaging Contamination

35

$ 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

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GAAP to Non-GAAP ReconciliationQuarterly EBITDA and Adjusted EBITDA

36

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Net income 13.9 14.0 17.4 17.4 16.5 67.0

Non-GAAP adjustments: Interest income (0.1) (0.2) (0.1) (0.0) (0.1) (0.4) Interest expense 0.1 0.1 0.1 0.1 2.2 2.2 Income tax provision 2.8 3.4 3.7 2.2 2.8 (43.9) Depreciation 2.7 2.6 2.6 3.1 3.0 3.5 Amortization of intangible assets 4.1 4.4 4.3 4.4 5.5 5.6

EBITDA 23.5 24.3 27.9 27.2 29.9 34.1

Purchase accounting impact on inventory and contracts acquired 0.1 0.4 0.1 - 1.2 -

Stock-based compensation 2.5 4.4 4.2 6.2 4.8 5.3 Restructuring charges 1.0 0.9 0.8 0.6 0.0 0.0 Merger and acquisition costs / Other (1.4) 0.9 3.7 3.5 0.6 2.7

Adjusted EBITDA 25.6 30.8 36.7 37.4 36.5 42.1

$ millions

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37

GAAP to Non-GAAP ReconciliationBLS Quarterly Results

© 2018 Brooks Automation, Inc. • Proprietary Information

$ millions Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

GAAP gross profit 5.9 9.9 11.3 12.1 11.5 13.2 13.5 16.6 15.8 18.9

Non-GAAP adjustments: Amortization of intangible assets 0.4 0.3 0.4 0.4 0.4 0.4 0.4 0.2 0.4 0.4 Purchase accounting impact on

inventory and contracts acquired - - - - 0.1 0.3 0.1 - 1.2 -

Non-GAAP gross profit 6.3 10.2 11.6 12.4 11.9 13.9 14.0 16.8 17.3 19.3

Operating expenses 10.5 12.1 12.0 10.9 11.4 11.9 12.4 14.4 15.9 16.2

Non-GAAP operating profit (4.2) (1.9) (0.4) 1.5 0.5 2.0 1.6 2.3 1.4 3.1

BrooksLife Sciences

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GAAP to Non-GAAP ReconciliationAnnual EBITDA and Adjusted EBITDA

38

$ millions FY13 FY14 FY15 FY16 FY17

Net income (loss) attributable to Brooks (2.2) 31.4 14.2 (69.5) 62.6

Non-GAAP adjustments: Interest income (1.0) (1.0) (0.9) (0.5) (0.5) Interest expense 0.0 0.2 0.4 0.2 0.4 Income tax provision (5.0) (2.0) 3.4 75.8 12.1 Depreciation 13.7 12.7 12.3 13.1 11.0 Amortization of intangible assets 9.8 10.6 12.9 15.0 17.1

EBITDA 15.2 51.9 42.3 34.1 102.8

Purchase accounting impact on inventory and contracts acquired 3.0 2.3 1.5 0.6 0.5

Stock-based compensation 7.6 10.9 12.2 11.7 17.3 Restructuring charges 6.4 6.3 4.7 12.0 3.2 Merger and acquisition costs / Other 1.9 4.0 3.6 4.1 6.7

Adjusted EBITDA 29.1 45.4 64.2 62.6 130.5

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GAAP to Non-GAAP ReconciliationQuarterly Operating Performance

39

$ 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

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40

Brooks Semiconductor Offering Examples

Marathon Express

MagnaTran 7 BiSymmetrik

Jet Atmospheric Transport System

M800 FOUP Cleaner M2 ReticleChangers

M1900 Reticle Stockers

© 2018 Brooks Automation, Inc. • Proprietary Information

MagnaTranLEAP

Automation System

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41

Brooks Life Sciences Offerings

BioStore™ III CryoBioStore II BioStorage Services

FluidX ConsumablesCool Lab Workflow Products 4titude Consumables© 2018 Brooks Automation, Inc. • Proprietary Information


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