| --- | --- | --- | |---------------------------------------------------------------------------------------------|-------|-------| | | | | | | | | | | | | | A Trusted Technology Partner in Healthcare and Advanced Industrial Markets September 2021 | | | Safe Harbor Statement The statements in this presentation that relate to guidance, pro forma presentations, future plans, goals, business opportunities, and future events or performance are forward-looking statements that involve risks and uncertainties, inc ...

Financial Data and Key Metrics Changes - Novanta reported approximately $168 million in revenue for Q2 2021, representing a 16% year-over-year growth on a reported basis and 11% on an organic basis, marking the highest single-quarter sales in the company's history [8][9] - Adjusted EBITDA was $37 million, up 20% year-over-year, with an EBITDA margin of 22%, an increase of 80 basis points year-over-year [8][27] - Adjusted diluted earnings per share was $0.62, reflecting a 29% increase compared to 2020 [9][28] - Free cash flow performance was strong at $23 million, representing 200% of GAAP net income [9] Business Line Data and Key Metrics Changes - The photonics segment saw a revenue increase of 30% year-over-year, with bookings up 148% year-over-year and a book-to-bill ratio of 1.46 [21] - The precision motion segment also experienced 30% year-over-year revenue growth, with bookings nearly doubling year-over-year and a book-to-bill ratio of 1.6 [22] - The vision segment, primarily serving medical end markets, experienced a revenue decline of 2% year-over-year, but bookings grew 23% year-over-year with a book-to-bill of 1.15 [23][24] Market Data and Key Metrics Changes - Sales to advanced industrial applications accounted for 48% of total sales, with a year-over-year growth of 24% [10] - Sales to medical applications grew 9% year-over-year, although there was a slight sequential decline [10][11] - Strongest growth was observed in China, with sales increasing by 35% year-over-year, while sales in Europe grew double digits and sales in the United States grew 9% year-over-year [11] Company Strategy and Development Direction - The company announced two upcoming acquisitions, SEM for $115 million and ATI for $172 million, which are expected to enhance Novanta's strategic positioning in high-growth markets [14][16][17] - The vitality index, which measures revenue from new products launched in the last four years, remained healthy at above 25% of sales [12] - The company continues to invest in innovation, with a target of 25 new product launches for the full year, focusing on industrial and surgical robotics, minimally invasive surgery, and industry 4.0 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategic positioning within medical and industrial applications, citing strong demand and a robust innovation pipeline [15][36] - The primary challenge remains supply chain disruptions, particularly related to electronic material shortages and logistics [29][30] - Despite these challenges, the company expects to raise its financial outlook for the third quarter and the remainder of the year [29][34] Other Important Information - Adjusted gross profit was $76.9 million, resulting in a 46% adjusted gross margin, an increase of over 340 basis points year-over-year [25] - R&D expenses were nearly $17 million, representing about 10% of sales, reflecting significant investment in innovation [26] - The company ended Q2 with gross debt of $196 million and a gross leverage ratio of 1.5x [28] Q&A Session Summary Question: Sustainability of precision motion margins - Management indicated that while there was a mix benefit in Q2, margins with a "5" in front of them are somewhat sustainable for the second half of the year [39] Question: Vision segment performance and recovery - Management attributed the decline in the vision segment to surgical market demand fluctuations, expecting a delayed impact on results [40][41] Question: Bookings strength and backlog conversion - Management noted that shipments have not filled customer stock, indicating that demand remains robust despite supply chain challenges [45][46] Question: Photonics segment order mix - The order mix in the photonics segment was balanced between industrial and medical applications, with strong performance in DNA sequencing and laser-based procedures [47] Question: Gross margin challenges and future outlook - Management confirmed that the guidance for gross margins remains around 46%, with expectations for continued expansion in the future [55]

| --- | --- | |-------|-------| | | | | | | Safe Harbor Statement The statements in this presentation that relate to guidance, pro forma presentations, future plans, goals, business opportunities, and future events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with business and economic conditions, failure to achieve expected benefits of acquisitions, failure to comply with the Food and Drug Administration regulations, customer and/or supplier ...

Novanta Inc. (NASDAQ:NOVT) Q1 2021 Earnings Conference Call May 11, 2021 10:00 AM ET Corporate Participants Ray Nash - Investor Relations Matthijs Glastra - Chief Executive Officer Robert Buckley - Chief Financial Officer Conference Call Participants Lee Jagoda - CJS Securities Richard Eastman - Robert W. Baird Brian Drab - William Blair Operator Good morning everyone. My name is Jimmy and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Incorporated Fi ...

Novanta Inc. (NASDAQ:NOVT) Q4 2020 Earnings Conference Call March 1, 2021 10:00 AM ET Company Participants Ray Nash - Investor Relations Matthijs Glastra - Chief Executive Officer Robert Buckley - Chief Financial Officer Conference Call Participants Lee Jagoda - CJS Securities Richard Eastman - Robert W. Baird Brian Drab - William Blair Operator Good morning. My name is Andrea and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Inc.???s Fourth Quarter ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-35083 NOVANTA INC. (Exact name of registrant as specified in its charter) New Brunswick, Canada 98-0110412 (State or other jurisdiction of incorpor ...

Novanta, Inc. (NASDAQ:NOVT) Q3 2020 Earnings Conference Call November 10, 2020 10:00 AM ET Company Participants Ray Nash ??? Corporate Finance Leader Matthijs Glastra ??? Chief Executive Officer Robert Buckley ??? Chief Financial Officer Conference Call Participants Lee Jagoda ??? CJS Securities Brian Drab ??? William Blair Operator Good morning. My name is Andrea, and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Inc. 2020 Third Quarter Earnings Cal ...

Novanta, Inc. (NASDAQ:NOVT) Q2 2020 Earnings Conference Call August 6, 2020 10:00 AM ET Company Participants Ray Nash - Corporate Finance Leader Matthijs Glastra - Chief Executive Officer Robert Buckley - Chief Financial Officer Conference Call Participants Joe Jagoda - CJS Securities Rick Eastman - Robert W. Baird Brian Drab - William Blair Operator Good morning. My name is Laura, and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Inc. 2020 Second Qu ...

Novanta, Inc. (NASDAQ:NOVT) Q1 2020 Results Conference Call May 12, 2020 10:00 AM ET Company Participants Ray Nash - Corporate Finance Leader Matthijs Glastra - Chief Executive Officer Robert Buckley - Chief Financial Officer Conference Call Participants Lee Jagoda - CJS Securities Richard Eastman - Robert W. Baird Brian Drab - William Blair Operator Good morning. My name is Chuck, and I will be your conference operator for today. At this time, I would like to welcome everyone to Novanta Incorporated 2020 F ...

Novanta Inc. (NASDAQ:NOVT) Q4 2019 Earnings Conference Call February 26, 2020 10:00 AM ET Company Participants Ray Nash - Corporate Finance Leader Matthijs Glastra - Chief Executive Officer Robert Buckley - Chief Financial Officer Conference Call Participants Lee Jagoda - CJS Securities Richard Eastman - Robert W. Baird Brian Drab - William Blair Operator Good morning. My name is Eileen and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Incorporated's ...