Novanta : Baird's 2023 Global Healthcare Conference Presentation

A Trusted

SEPTEMBER 2023

Safe Harbor Statement

Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as "expect," "intend," "anticipate," "estimate," "believe," "future," "could," "should," "plan," "aim," and other similar expressions. These forward-looking statements include, but are not limited to, statements regarding anticipated financial performance and financial position, including our financial outlook for the third quarter and full year 2023; expectations for our end markets and market position; expectations regarding our ability to navigate difficult macroeconomic conditions; our ability to deliver sustained long-term shareholder value; expectations regarding our backlog and demand in our medical and advanced industrial end-markets; and other statements that are not historical facts.

These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various important factors, including, but not limited to, the following: economic and political conditions and the effects of these conditions on our customers' businesses, capital expenditures and level of business activities; risks associated with epidemics or pandemics, such as the COVID-19 pandemic, and other events outside our control; our dependence upon our ability to respond to fluctuations in product demand; our ability to continually innovate, introduce new products timely, and successfully commercialize our innovations; customer order timing and other similar factors beyond our control; disruptions or breaches in security of our and our third-party providers' information technology systems; our failure to comply with data privacy regulations; changes in interest rates, credit ratings or foreign currency exchange rates; risks associated with our operations in foreign countries; our increased use of outsourcing in foreign countries; risks associated with increased outsourcing of components manufacturing; our exposure to increased tariffs, trade restrictions or taxes on our products; negative effects on global economic conditions, financial markets and our business as a result of the United Kingdom's withdrawal from the European Union; violations of our intellectual property rights and our ability to protect our intellectual property against infringement by third parties; risk of losing our competitive advantage; our failure to successfully integrate recent and future acquisitions into our business; our ability to attract and retain key personnel; our restructuring and realignment activities and disruptions to our operations as a result of consolidation of our operations; product defects or problems integrating our products with other vendors' products; disruptions in the supply of certain key components or other goods from our suppliers; our failure to accurately forecast component and raw material requirements leading to excess inventories or delays in the delivery of our products; production difficulties and product delivery delays or disruptions; our exposure to medical device regulations, which may impede or hinder the approval or sale of our products and, in some cases, may ultimately result in an inability to obtain approval of certain products or may result in the recall or seizure of previously approved products; potential penalties for violating foreign, and U.S. federal, and state healthcare laws and regulations; impact of healthcare industry cost containment and healthcare reform measures; changes in governmental regulations affecting our business or products; our failure to implement new information technology systems and software successfully; our failure to realize the full value of our intangible assets; reliance on original equipment manufacturer customers; increasing scrutiny and changing expectations from investors, customers, and governments with respect to Environmental, Social and Governance policies and practices; our exposure to the credit risk of some of our customers and in weakened markets; being subject to U.S. federal income taxation even though we are a non-U.S. corporation; changes in tax laws, and fluctuations in our effective tax rates; any need for additional capital to adequately respond to business challenges or opportunities and repay or refinance our existing indebtedness, which may not be available on acceptable terms or at all; our existing indebtedness limiting our ability to engage in certain activities; volatility in the market price for our common shares; and our failure to maintain appropriate internal controls in the future. Any or all of our forward-looking statements may turn out to be inaccurate, and there are no guarantees about our performance. The factors identified above are not exhaustive. We operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. In addition, results for prior periods are not necessarily indicative of results that may be expected for any future period.

Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company's operating results and financial condition are discussed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as updated by our subsequent filings with the Securities and Exchange Commission. Such statements are based on the Company's beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any such forward-looking statements as a result of developments occurring after the date of this document except as required by law. The Company neither updates nor confirms any guidance regarding the future operating results of the Company which may have been given prior to this presentation.

In this presentation, we present the non-GAAP financial measure of Adjusted EBITDA. Please see "Use of Non-GAAP Financial Measures" in the accompanying appendix and our second quarter 2023 earnings press release for the reasons why we use this measure, a reconciliation of this measure to the most directly comparable GAAP measures, and other information relating to this measure.

CONFIDENTIAL AND PROPRIETARY

2

A Trusted, Sole-Sourced Technology Partner to Leading Global OEMs

We enable productivity improvement in healthcare and industrial markets with secular growth

>$892M

Revenue

~60% outside of the US

APPLICATION AREAS

ADVANCED INDUSTRIAL

Robotics &

Automation

Precision

Manufacturing

~55%

Micromachining~45%

LAM

D/EUV

EV Production

		(% OF SALES)
BUSINESS	Robotics and		Precision Medicine
SEGMENTS	Automation		and Manufacturing
(% OF SALES)	36%		32%

MEDICAL

Minimally Invasive

Surgery

Surgical Robotics

Precision Medicine

DNA Sequencing

Life Science

Equipment

IVD / Advanced

Diagnostics

Ophthalmology

Medical

Solutions

32%

>$196M

Adjusted EBITDA +21% of sales

~$6B

addressable market with 5%-7% CAGR

~3,000

employees

~700

patents

CONFIDENTIAL AND PROPRIETARY	Note: The Company neither updates nor confirms 2023 Full Year
	outlook provided on August 8, 2023.

Our Strategy

WHERE WE PLAY

HOW WE PLAY AND WIN

HOW WE ACCELERATE

Win in High	Innovation	Novanta	Culture-	Disciplined
Growth Segments		Growth System	Novanta Way	Acquisitions

CONFIDENTIAL AND PROPRIETARY

Where We Play & How We Win

Technology	Growth	Returns	Asset light
leadership in HGMs	business model

REVENUE CASH FLOW

Sticky business model	Allocate based on
with winning OEMs	cash-on-cash return

TAM expansion	Expand gross
through NPI and	margins and
Subsystems	improve cash flow

Accretive M&A

CONFIDENTIAL AND PROPRIETARY