*Easy is Hard to Do! JUNE 10, 2025 © 2025 Cognex Corporation | Investor Day Greer Aviv Welcome Head of Investor Relations 2 © 2025 Cognex Corporation | Investor Day Forward-looking statements Certain statements made in this presentation, as well as oral statements made by the Company from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Read ...

Core Insights - Cognex Corporation is launching OneVision™, a cloud-based platform aimed at transforming the development and scaling of AI-powered vision applications for manufacturers [1][3]. Group 1: Product Overview - OneVision simplifies application development by using AI to unify multiple tools, sites, and workflows, thereby enhancing the efficiency of the development process [2][4]. - The platform is designed to address common barriers to AI adoption in industrial settings, such as long development cycles, expensive infrastructure, lack of integration, and inconsistent performance across sites [3][7]. Group 2: Market Impact - OneVision expands Cognex's portfolio of machine vision products, enabling faster and more reliable solutions for complex vision tasks, which accelerates AI adoption in the manufacturing sector [4][5]. - The platform is currently available for select customers using In-Sight® 3800 and 8900 vision systems, with plans for broader release on additional products in early 2026 [4]. Group 3: Company Background - Cognex has over 40 years of experience in advanced machine vision technology, serving a diverse range of industries including automotive, consumer electronics, and packaged goods [5][6]. - The company focuses on making machine vision tools more accessible and easier to deploy, allowing factories and warehouses to improve quality and efficiency without requiring extensive technical expertise [6].

Company Overview - Cognex Corporation is a global leader in industrial machine vision, with over 40 years of experience in making advanced machine vision technology accessible for manufacturing and distribution companies [3]. - The company focuses on automation to enhance speed, intelligence, and efficiency across various industries, including automotive, consumer electronics, and packaged goods [3]. Upcoming Investor Day - Cognex will host its Investor Day on June 10, 2025, at its headquarters in Natick, Massachusetts, starting at 9:00 a.m. Eastern Time [1]. - The senior management team will present the company's five-year strategic objectives, discuss technology leadership, the evolution of AI in machine vision, customer experience, and an updated financial framework and capital allocation strategy [2]. Technology and Innovation - Cognex emphasizes the integration of AI in its products, making machine vision tools more capable and easier to deploy, thus allowing factories and warehouses to improve quality and efficiency without requiring highly technical expertise [4]. - The company has a global presence with locations in over 30 countries and serves more than 30,000 customers worldwide [4].

Core Insights - Cognex Corporation has appointed Greer Aviv as the new Head of Investor Relations, effective June 2, 2025, to enhance its investor relations strategy and communications [1][2] - Ms. Aviv will serve as the primary liaison between Cognex and the investment community, focusing on articulating the company's vision, financial performance, and strategic direction [2][4] - Greer Aviv brings extensive experience in finance and communications, having previously held senior roles in investor relations at Cyxtera Technologies, Iron Mountain, CoreSite, and Arrow Electronics [3][4] Company Overview - Cognex Corporation has been a leader in industrial machine vision for over 40 years, providing advanced technology that enhances manufacturing and distribution efficiency through automation [5][6] - The company focuses on AI-driven solutions that improve quality and maximize efficiency in factories and warehouses, making advanced machine vision tools more accessible [6] - Cognex is headquartered near Boston, USA, and operates in over 30 countries, serving more than 30,000 customers globally [6]

Financial Data and Key Metrics Changes - Cognex reported revenue exceeding $900 million with an adjusted EBITDA margin of 28% over the last ten years [5] - The company has invested around 15% of its revenue in research and development [5] Business Line Data and Key Metrics Changes - The logistics market, Cognex's largest, grew by 20% last year, indicating strong momentum [65] - The semiconductor market is the fastest-growing segment, despite some caution due to trade issues [65] - Consumer electronics are expected to see modest growth this year, while the automotive sector shrank by 14% last year [67] Market Data and Key Metrics Changes - The automotive industry remains challenging, with expectations of continued difficulties, although some recovery is anticipated [67] - The logistics market has recovered from post-COVID tightness in spending and overcapacity [65] Company Strategy and Development Direction - Cognex is focused on applying AI technology to factory automation and machine vision, aiming to lead in these areas [34] - The company is expanding its sales force to reach a broader customer base, targeting an estimated 300,000 potential customers [24] - Cognex is exploring potential acquisitions in adjacent markets, particularly in the sensor space [30] Management's Comments on Operating Environment and Future Outlook - Management noted that the shift from rules-based systems to AI has opened new opportunities for machine vision applications [13][14] - The company anticipates that automation will eventually return to the automotive sector, particularly in relation to electric vehicles [67][68] Other Important Information - Cognex has a strong company culture characterized by a "work hard, play hard" ethos, which is seen as a competitive advantage in attracting talent [9][56] - The company has over 1,000 patents in the machine vision area, which supports its innovation and market position [47] Q&A Session Summary Question: What are the key areas for future growth? - Management highlighted the importance of leading in AI technology, enhancing customer experience, and expanding the customer base as critical areas for future growth [34][35][36] Question: How does Cognex differentiate itself in the market? - Cognex leverages its extensive industry knowledge and experience to achieve high precision in machine vision applications, which is difficult for new entrants to replicate [44][45] Question: What is the outlook for the EV battery manufacturing market? - Management expressed optimism about the potential for growth in the EV battery manufacturing market, noting that Cognex's technology can significantly enhance production processes [78]

Industry Overview - The Zacks Electronics – Testing Equipment industry is facing challenges due to a difficult global macroeconomic environment, end-market volatility, unfavorable foreign exchange rates, and increasing geopolitical tensions [1] - The automotive sector is sluggish, primarily due to declining investments in electric vehicles, which is a significant headwind for industry participants [1] - Key end markets for the industry include consumer electronics, automotive, industrial, aerospace and defense, healthcare, semiconductors, and communications [2] Growth Opportunities - Companies like AMETEK, Itron, and Cognex are capitalizing on growth opportunities related to 5G, automation, and Industry 4.0 [1] - The adoption of software-enabled testing instruments and devices is increasing, providing a positive outlook for the industry [1] - The rising utilization of precision motion-control solutions and automatic test systems in various markets, including aerospace and medical, is a positive trend [3] Pharmaceutical Market - The industry is benefiting from the increasing use of electrical instruments and software in clinical and medical science research, particularly in the pharmaceutical market [4] - Agilent is noted for capitalizing on this trend, indicating strong growth potential in life science research [4] 5G Deployment - The deployment of 5G technology is expected to provide near-term benefits for industry players, with an uptick in demand for 5G test solutions [5] - The migration of infrastructure workloads to the cloud is also driving demand for high-speed Internet services, which is favorable for electronic companies associated with 5G [5] Macroeconomic Challenges - The challenging macroeconomic scenario is causing enterprises to hesitate in signing multi-year deals, which negatively impacts industry participants [6] - The Zacks Electronics – Testing Equipment industry currently ranks 174, placing it in the bottom 29% of over 250 Zacks industries, indicating dim near-term prospects [7][8] Stock Performance - The industry has underperformed the S&P 500 and its sector over the past year, declining by 2.4% compared to the S&P 500's increase of 9.3% [11] - The industry's forward 12-month price-to-earnings (P/E) ratio is currently at 21.86X, which is higher than the S&P 500's 21.36X but lower than the sector's 25.12X [13] Company Highlights - **AMETEK**: This company is experiencing solid momentum across its segments and plans to invest $85 million in global market expansion and technology innovation. The Zacks Consensus Estimate for 2025 earnings is $7.11 per share, reflecting a year-over-year growth of 4.1% [17][19] - **Itron**: Gaining from trends in electrification and energy transition, Itron's shares have climbed 3.7% year to date. The Zacks Consensus Estimate for 2025 earnings is $5.44 per share, indicating a year-over-year decline of 3.2% [22][23] - **Cognex**: The company is integrating artificial intelligence into its products and has launched innovative solutions. However, its shares have declined 17.1% year to date, with the Zacks Consensus Estimate for 2025 earnings at 88 cents per share, indicating year-over-year growth of 18.92% [25][26]

Industry Overview - The global market for laser technology is valued at approximately $24 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 8% to nearly $30 billion by 2029 [1] Company Analysis: nLIGHT Inc. - nLIGHT develops semiconductor and fiber lasers and sensors for various applications, including industrial, aerospace, and defense [2] - The company reported a 16% year-over-year (YOY) revenue increase to nearly $52 million in the first quarter, surpassing analyst expectations [3] - Gross margin improved to 26.7%, up from 16.8% in the same quarter last year [3] - Aerospace and defense operations are expected to grow by at least 25% this year, contributing to continued revenue growth [4] - Analysts have a consensus Buy rating for nLIGHT, with a 12-month price target of $14.90, indicating a potential upside of 4.78% from the current price of $14.22 [4] Company Analysis: Coherent Corp. - Coherent manufactures a wide range of lasers and optoelectronic components, with a market cap of $12.3 billion, making it one of the largest laser companies globally [7] - The company experienced a 24% YOY revenue increase in its third-quarter fiscal 2025 earnings, with a gross margin improvement to 35.2% [6] - Coherent's data center business has been a significant growth driver, while its optical networking technologies remain crucial to its operations [7] - Despite a year-to-date share price drop of over 18%, Coherent's price-to-sales ratio is now at 2.21, attracting value investors [8] - The stock has a consensus price target of $102.80, suggesting a potential upside of 30.40% from the current price of $78.84 [5][9] Company Analysis: Cognex Corp. - Cognex specializes in machine vision products aimed at automating manufacturing and distribution across various industries [10] - The company reported a 2.5% YOY sales growth, which is less impressive compared to nLIGHT and Coherent, but remains profitable with an adjusted EPS of 16 cents, reflecting a 41% YOY improvement [10] - Cognex's In-Sight 8900 smart camera utilizes AI to enhance manufacturing automation [11] - The company faces challenges in the automotive and consumer electronics sectors, which may impact future performance [11] - Analysts have a consensus price target of $39.17 for Cognex, indicating a potential upside of 31.04% from the current price of $29.89 [10][12]

Company Overview - Cognex Corporation is a leading global provider of machine vision products and solutions that enhance efficiency and quality in various industrial sectors [2] - The company has shipped over 5 million image-based products, generating more than $12 billion in cumulative revenue since its inception in 1981 [3] - Cognex's solutions integrate physical products and software to automate manufacturing and distribution tasks, addressing critical challenges in these areas [2] Upcoming Events - Rob Willett, the CEO of Cognex, will participate in a fireside chat at the 53rd annual TD Cowen Technology, Media & Telecom Conference on May 28, 2025, at 10:50 a.m. Eastern Daylight Time [1] - The presentation will be accessible via webcast on the Investor Relations section of the Cognex website [1]

Company Overview - Cognex's share price has faced pressure recently due to valuation concerns and mixed demand across various end markets [1] - The company has significant exposure to logistics, automotive, and consumer electronics sectors [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations caused by misunderstandings of long-term business prospects [1] - The firm aims to achieve excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with high barriers to entry [1] - Narweena's investment approach emphasizes company and industry fundamentals to uncover unique insights [1] Market Dynamics - An aging population with low growth and stagnating productivity is expected to create new investment opportunities distinct from past trends [1] - Many industries may experience stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - Conversely, some businesses may encounter rising costs and diseconomies of scale [1] - The economy is increasingly influenced by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] Leadership Background - Richard Durant holds undergraduate degrees in engineering and finance from the University of Adelaide and an MBA from Nanyang Technological University [1] - He has passed the CFA exams, indicating a strong foundation in finance and investment analysis [1]

Cognex Corporation (NASDAQ: CGNX ) is at the beginning stages of a growing opportunity for industrial automation across all markets. With its new AI-enabled scanning technologies, Cognex may be in a position to expand across a wider variety of customersMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, I ...