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Brooks Automation Conference Call: Divestiture of Cryogenics Business Unit August 28 th , 2018

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Page 1: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

Brooks Automation

Conference Call: Divestiture of Cryogenics Business Unit August 28th, 2018

Page 2: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

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: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

Strategic Rationale for the Sale of Cryogenics

Continues Brooks’ transformation toward higher growth and higher value businesses− Aligned with Brooks’ stated long-term strategy

Brooks now focused on two strong platforms with high growth potential− Life Sciences – Market leader in high growth sample management with $2.5B addressable

market by 2021− Semiconductor Automation – Market leader with focus on high growth and high margin segments

Transaction provides significant capital to pursue growth opportunities − Favorable outcome driven by market conditions and competitive sale process − Proceeds to be used to further the transformation of Brooks’ portfolio

3© 2018 Brooks Automation, Inc. • Proprietary Information

Brooks is selling Cryogenics assets to Atlas Copco for $675M; approximately 3.5x LTM revenue

Page 4: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

Transaction Highlights

Selling Cryogenics assets to Atlas Copco for $675M*; approximately 3.5x LTM revenue

Cryogenics business unit includes the CTI-Cryogenics and Polycold product lines, the corresponding Global Service Support, and the Brooks interest in the ULVAC Cryogenics, Inc. joint venture

Transaction Value

Expected to close by the first quarter of calendar year 2019

Subject to regulatory approvals and customary closing conditions

Expected after-tax cash proceeds of approximately $560M

Continued strategic deployment of capital for acquisitions

LTM Revenue of $195M

Cryogenics business unit will be reported as discontinued operations

Brooks is planning for the future reduction of stranded expenses

Financial Impact

Timing

Proceeds

4© 2018 Brooks Automation, Inc. • Proprietary Information * Final price subject to customary working capital and other adjustments

Page 5: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

A Company on the Move to Higher Value and Higher Growth

RTS for $3M

Nexus for $85M

Crossing Automation for $59M

Divested Contract Manufacturing for $78M

Matrical for $9M

22% of BioCision for $4M

DMS for $32M

Divested Granville-Phillips Instrumentation for $87M

FluidX for $16M

BioStorage Technologies for $125M

Contact for $7M

2018In the Semi and Life Sciences markets

with leadership offerings

2011Semi market tied to

cyclical OEM businesses

2011 / 12

2013 / 14

2015 / 16

M&A Spend

Life Sciences M&A ~$365mm Semi Automation M&A ~$115mm

BioCision’s Cool Lab for add’l $11M

PBMMI for $34M FreezerPro software for

$5M 4titude Ltd. for $65M BioSpeciMan for $5M Tec-Sem for $15M

Agreement to Divest Cryogenics for $675M

2017 / 18

4

© 2018 Brooks Automation, Inc. • Proprietary Information5

Page 6: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

2013 2014 2015 2016 2017 2018 F

Life Sciences and Semiconductor Automation Are Solid Growth Drivers

6

2013 2014 2015 2016 2017 2018 F

36%CAGR

7%CAGR

CryogenicsAutomation and CCS

© 2018 Brooks Automation, Inc. • Proprietary Information

2013 2014 2015 2016 2017 2018 F

Life Sciences

12%CAGR

11 Cash Acquisitions for ~$365M 4 Cash Acquisitions for ~$115M

~$198

Revenue $M

~$435

~$194

Focusing capital deployment in high growth segments since 2011

Page 7: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

Semi Automation#1 Leader in

Fab Automation Solutions

G O I N G F O R W A R D

Two Leadership Platforms

• Sample Storage Services

• Ultra Cold Storage Systems

• Consumables and Instruments

• Genomics, Informatics, and Transport Services

• Vacuum Automation

• Advanced Packaging

• Contamination Control

• Services

Life Sciences#1 Leader in

End-to-End Sample Management

© 2018 Brooks Automation, Inc. • Proprietary Information

36%CAGR‘13-’18

12%CAGR‘13-’18

7

31% of Revenue 69% of Revenue

% Revenue based on LTM reported revenue of the continuing operations

Page 8: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

Accelerating the Transformation of Brooks

2018 Separation

2019 Transformation

2020 Onward: Execution End State

Multi-year Transformation

Organic

and

InorganicGrowth

ExecutionTSA

Support

SeparationPrep

Continued Investment in Organic Growth Initiatives

Accelerating Acquisitions With Focus on the Expansion of Life Sciences

Reduction of Stranded Infrastructure Cost

Accelerated Growth

Extend Leadership in Current Markets

Penetration of New Life Sciences Markets

Improved Margins

Streamlined Corporate Infrastructure

8© 2018 Brooks Automation, Inc. • Proprietary Information

Page 9: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

No Change to a Solid Strategy

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 9

Page 10: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

10

Key Takeaways

The sale of the Cryogenics business brings >$0.5B of capital to accelerate the transformation toward Life Sciences

Reaffirming prior guidance for our Q4 ending Sept 30, 2018

Strategy remains the same – Extend market leadership in twostrong markets of Semi Automation and Life Sciences

10© 2018 Brooks Automation, Inc. • Proprietary Information

Transaction expected to close by early 2019 calendar year

Page 11: August 28 , 2018 - Brooks Automation...August 28 th, 2018. Safe Harbor Statement ... −Life Sciences – Market leader in high growth sample management with $2.5B addressable market

Q&A