Ichor Holdings · NASDAQ:ICHR

Ichor — Investor Presentation (February 2021)

20 slides from Ichor's investor presentation, February 2021

  1. Slide 1: Investor Presentation

    Investor Presentation February 2021 Proprietary

  2. Slide 2: Forward-Looking Statements, Non-GAAP Financials and COVID-19

    Forward-Looking Statements, Non-GAAP Financials and COVID-19 This Presentation and the accompanying oral presentation include “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,

  3. Slide 3: Ichor Overview

    Ichor Overview World’s Leading Provider of Critical Fluid Delivery Subsystems and Components for Semiconductor Capital Equipment  Gas and chemical delivery subsystems Gas Delivery Chemical Delivery are key elements of process tools used in Subsystems Subsystems the manufacturing of semiconductor de

  4. Slide 4: Investment Highlights

    Investment Highlights Combining Revenue Outperformance and Increasing Profitability to Drive Earnings Leverage and Free Cash Flow  Revenue growth outperforming the industry... Outpacing industry, peers and customers with 5-year CAGR of 26% vs. WFE growth of ~13%… 2020 revenues up 47% YoY(1)  Multi

  5. Slide 5: Revenue Growth Outperforming WFE and Primary Process Tool SAM

    Revenue Growth Outperforming WFE and Primary Process Tool SAM WFE(1) Dry Etch & CVD(2) Ichor Revenue WFE in $B SAM in $B Ichor Revenues ($M) $59 $54 $23 $914 $50 $21 $824 $48 $19 $18 $656 $621 $36 $32 $12 $11 $406 $291 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020E 2015 2016 2017 2018

  6. Slide 6: Key Technology Transitions Driving Growth in Ichor SAM

    Key Technology Transitions Driving Growth in Ichor SAM WFE Intensity Increasing(1) Etch and Deposition Intensity Increasing(2) EUV Ramping(3) 14% 2.50 WFE as % of Semi. Rev. 3D NAND SAM DRAM SAM Foundry/Logic SAM $7 EUV Est. Sales ($B) 2.00 $6 13% $5 12% 1.50 $4 11% 1.00 $3 $2 10% 0.50 $1 9% - $0 20

  7. Slide 7: Growing Share of Semiconductor System Sales

    Growing Share of Semiconductor System Sales Ichor's Expanding Share(1) 3.9% 4.0% Multiple Drivers for Increasing 3.5% Share of Industry Revenues  Industry Trends 3.0%  Increasing trend toward outsourcing 2.7% 2.7%  Increasing importance of etch and 2.5% deposition  Advanced devices require more

  8. Slide 8: Track Record of Successful M&A

    Track Record of Successful M&A Key M&A Strategies  Expand Portfolio of Proprietary Product Offerings  Expand Served Markets and Geographic Footprint  Expand and Diversify Customer Base  Gain Market Share with Key OEM Customers  Accretive to Gross and Operating Margins; Target Returns > WACC Acq

  9. Slide 9: Executing on Strategy of Revenue Growth and Diversification

    Executing on Strategy of Revenue Growth and Diversification Revenue Composition Commensurate with Key Customers’ Market Positions Ichor Revenue by Customer(1) Key Customers Lead Their Respective Served Markets(2) 5% 3% 7% 12% 15% 42% 39% 38% 46% 40% 32% 33% 57% 56% 51% 53% 51% 2015 2016 2017 2018 20

  10. Slide 10: Expanding SAM of $4B with Multiple Growth Opportunities

    Expanding SAM of $4B with Multiple Growth Opportunities Approx. 65% of WFE Market Requires Fluid Delivery Subsystems or Components Established Position Opportunity Served Markets and Market Opportunity Customer Chemical Delivery Sub-Assembly Gas Delivery Precision Machining Other Components ($1.5B)

  11. Slide 11: Drivers of 2020 Revenue Growth Outperformance

    Drivers of 2020 Revenue Growth Outperformance Gaining Share Gaining Share Gaining Share Gaining Share in Gas in Chemical in Precision in Weldments Delivery Delivery Machining Contributed $70M of Incremental Revenues from Share Gains in 2019 with $100M Annualized Run-Rate entering 2020 Continued Outp

  12. Slide 12: Key Financial Strategies

    Key Financial Strategies Outgrow the Industry Drive Gross Margin Improvement Focus on semi: next-generation device nodes Grow share in higher-margin require more fluid delivery components businesses e.g., Weldments and Precision Machining Levered to etch, deposition and EUV Increase content of propr

  13. Slide 13: Quarterly Momentum at Top and Bottom Lines

    Quarterly Momentum at Top and Bottom Lines ($ in millions, except per share data)  7 Straight Quarters of Sequential (Revenue) (EPS) $300 $1.00 Revenue Growth; Guiding for an 8th  Strong Earnings Leverage $255 $0.90 $250 $245  EPS growth outpacing revenue growth by $228 $0.80 $220 $222 $0.81 2x i

  14. Slide 14: Target Model with Significant Operating Leverage

    Target Model with Significant Operating Leverage ($ in millions) Annual Results Target Q4 Model 2016 2017 2018 2019 2020 2020 Revenue $ 406 $ 656 $ 824 $ 621 $ 914 $ 245 Gross Margin 16% 16% 17% 14% 15% 16% 19% - 20% Operating Expenses 7% 6% 6% 8% 6% 6% 6% Operating Margin 9% 11% 11% 6% 8% 10% 13 -

  15. Slide 15: Strong Free Cash Flow Generation

    Strong Free Cash Flow Generation Prudent & Efficient Capital Deployment Strategy since IPO ($ in millions) Total Sources of Capital Total Uses of Capital $29 $25 $54 $196 $253 $218 $139 $92 $121 $47 Beginning cash (1) IPO proceeds Proceeds from 2020 equity raise Debt proceeds (2) M&A Stock buybacks

  16. Slide 16: Conclusion

    Conclusion Industry-Leading Execution of Strategic Objectives Business Objectives Financial Objectives Expanding Share at Top Semi Cap  Customers  Revenue Growth Outpacing Industry Expanding Product Offerings and Strong Profitability Through Industry  IP Content  Cycles Financial Model with Oper

  17. Slide 17: Appendix

    chor Proprietary Appendix 17

  18. Slide 18: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation ($ in millions, except per share data) FY 2016 FY 2017 FY 2018 FY 2019 LTM (9/25/20) Revenue $405.7 $655.9 $823.6 $620.8 $858.6 Gross profit GAAP gross profit $65.4 $100.8 $136.1 $86.4 $116.5 Share-based compensation 0.0 0.1 0.6 0.7 0.9 Fair value adjustment to invent

  19. Slide 19: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation ($ in millions, except per share data) FY 2016 FY 2017 FY 2018 FY 2019 LTM (9/25/20) Revenue $405.7 $655.9 $823.6 $620.8 $858.6 Net income GAAP net income $20.8 $56.9 $57.9 $10.7 $28.7 Amortization of intangible assets 7.0 8.9 15.4 13.0 13.3 Share-based compensation 3

  20. Slide 20: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation ($ in millions, except per share data) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Revenue $137.8 $139.2 $154.5 $189.4 $220.0 $221.6 $227.7 Gross profit GAAP gross profit $20.2 $19.5 $20.7 $25.9 $28.8 $29.3 $32.5 Share-based compensation 0.1 0.2 0.2 0.2 0.2 0.2 0.3 Fair

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