Investor Daybrooks.investorroom.com/download/Investor+Day+2018... · 2018-05-22 · By 2021,...

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


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


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*


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


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%


Agenda

10


The future

Brooks today


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


$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


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%


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


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


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


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


Agenda

19


The future

Brooks today


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


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


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


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


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


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


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


$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


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.


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



Advanced Packaging: Increasing Share in a High Growth Market


• 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



• Expanding value with FOUP Inspection Metrology

• Only qualified tool for EUV pod Clean

• Memory adoption starting


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


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


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.


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


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


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


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


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


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


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

http://www.bing.com/images/search?q=beckman+logo&id=0CE5AB9A77717C209FE171C46F3E59D6B863E598&FORM=IQFRBA

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAQQjRw&url=http://www.directindustry.com/prod/biocision/test-tube-storage-racks-54607-375328.html&ei=obHHVK63Kcm5ggTjhYG4Dg&bvm=bv.84349003,d.eXY&psig=AFQjCNFgAqnMr0aa58fqjOYLyZ5SkHI4Vg&ust=1422459681719402

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAMQjRxqFQoTCMG35N3j8sgCFYR3PgodmIoD1w&url=http://www.launchpadinw.com/special-alert-brooks-automation-to-acquire-matrical-bioscience-for-10m/&psig=AFQjCNHpUt5oagBgrP8ZZuqL5e7EV9feXQ&ust=1446589437652868

http://www.biostorage.com/



Our Customers are the Leading Healthcare Organizations

1000+ leading healthcare companies depend on Brooks 9

Long-Standing Relationships New Strategic Relationships



10

Strong Markets

Key Strengths

Life Sciences Today

Growth Drivers


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


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


15

Strong Markets

Key Strengths

Life Sciences Today

Growth Drivers


Key Strengths We are Leveraging

16

Uniquely positioned in the industry 1

Large, growing, recurring revenue base 2

The advantage of scale 3


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


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


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


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)



22

Strong Markets

Key Strengths

Life Sciences Today

Growth Drivers


Key Growth Drivers

23

Grow base

offerings through

existing customers

1

Expand solutions

throughout sample

management

workflows

2

Extend capabilities

into new markets

3



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



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


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,


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


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


Lindon Robertson Chief Financial Officer

Agenda

2

Update to business model

Financial targets

Performance track record


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%


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


Agenda

6


Financial targets



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.


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


Financial targets



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,


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


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.


5


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


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


6


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


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



7


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


8


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


Q1’18 and Q2’18 GAAP to Non-GAAP Reconciliations Consolidated Results

GAAP to Non-GAAP Reconciliation Quarterly EBITDA and Adjusted EBITDA


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


$ millions FY13 FY15 FY17

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


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


$ 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


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



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


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


Brooks

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