Slide 1: State of the North American PBC Market
© TIM Technologies State of the North American PBC Market TMRC Conference May 6, 2003
Slide 2: Kent Alder, President and Chief Executive Officer
« Kent Alder President and Chief Executive Officer
Slide 3: Safe Harbor Provision
ge a ; Safe Har bor Provision TIM Technologies ) During the course of this presentation, we will make projections or other forward-looking statements regarding future events or the future financial performance of the Company. We wish to caution you that such statements reflect only our current expec
Slide 4: Industry Overview
Industry Overview
Slide 5: North American PCB Market
North American PCB Market Timechnologies uy = Prolonged downturn in electronics industry = Increased competition = Capacity reduction / consolidation = North American PCB market transitioning to high mix, high complexity = Several companies experiencing liquidity constraints / solvency issues @ Dive
Slide 6: Consolidation Trends - U.S. PCB Market
Consolidation Trends— U.S. PCB Market Increasing Market Share Among the Top Tier Firms + 32% in 1990 + 45% in 2001 2001 Total U.S. Industry Sales: $6.0 Billion
Slide 7: Consolidation Trends - U.S. PCB Market
Consolidation Trends— U.S. PCB Market Estimate of U.S. PCB fabricators with >$100 million in 2002 revenues* Captive Integrated EMS i} >» Tyco > Sanmina i} > IBM - Endicott > Flextronics > Photocircuits > Viasystems > 3M TTM continues to benefit from rapid consolidation in the U.S. PCB market si? SPB
Slide 8: Capacity Reductions: 30% - 35% Since 2001
Capacity Reductions: 30% - 35% Since 2001 Timechnologies y Announced Plant Closinas He —= 2001 Total $1,655 2002 $70 - $80 $60 - $70 $30 - $35 $60 - $100 $60 $20 $40 $50 $40 $40 $30 Total $2,155 - $2,220 “Some elites could re-open ertand improve, bu this would require significant ead ime and rebuild
Slide 9: PCB Competitive Landscape
Timechnologies y Panel Volume High (lots of 1,000+) Medium (lots of 1000-) lLow (lots of 100-) Pree > Computer peripherals > Adtometive } consumer dactronice PCB Competitive Landscape 7 Most [1 Transitional markets > call phones: > Advanced POMS > Power supplies susceptible to Asian competition Hotr
Slide 10: Advantages of Niche Focus - Time and Technology
Advantages of Niche Focus - Time‘ahd Technology Timechnologies y " Faster Growth
Slide 11: TTM's Strategy
TTM’s Strategy
Slide 12: Customers / End Markets
Customers / End Markets + Diversified customer base af industry leading clients + Targeting emerging customers and end-markets + Expanded sales force Technology + Specialization in high layer count, advanced technology PCBs + Provider of valuec-added engineering / design services + ACI-industry lead
Slide 13: Time-to-Market: TTM Technologies
Time-to-Market: TTM Technologies TimTechnologies Leader of quick-turn and technologically * board solutions High Mix / Prototypes | | | ow volume & Prototypes : anta Ana / Bp ¥ 20 5 3 § 3 B10 ss Leading Edge Technology ° 8 10 15 20 Lead Time in Days
Slide 14: Value-Added Pricing
i “= Value-Added Pricing 5x 4x 3x 2x 1x Ox Revenue with lead times of 10 days or less » ~47% 2002 » ~28% 1Q 2003 24 Hours SDays SDays 10Days 1120 Standard- Days Lead
Slide 15: Recent Development: Advanced Circuits (ACI) Acquisition
Recent Development: Advanced Circuits. (ACI) Acquisition Positions TTM as leading technology provider™ Creates one of three largest U.S. PCB fabricators Favorably impacts material and capital costs New blue chip relationships Minimal customer overlap drives cross selling opportunities Attractive pri
Slide 16: ACI Acquisition: Doubles Revenue Base / Minimal Overlap
Cl Acquisition: Joubles Revenue Base/ Minimal Overlap TM ACI SSS=SS= daicron | ecm | 2D CELESTICA © agitent Technologies [@ | Cisco Systems ; : 42% > 90% Jabil (sacs Ry [See @5un oe: a ig sour] 2002 pro forma revenues $185 million* *Pro forma est mates Include annualized fourth quarter revenues for
Slide 17: ACI Acquisition: Strategic Fit
y = = ES ws a ACI Acquisition; . Strategic Fit TIM Technologies TM ACI Premier quick-turn provider = Leading edge technology Industry leading financial Brosioer performance > Average layer count of 17 >» Expertise in specialty » Strong balance sheet >» Lowest cost structure > Proven strategy and exe
Slide 18: Average layer count as percentage of revenue
10 2003 average layer count of 13 Percentage of Revenue 60% 20% 0% 28% 27% = | 0% + 1999 2000 2001 2002. 192003 1=>42 Layers
Slide 19: Recognized by Industry Leaders
Recognized by i Industry Leaders EMS __EMS Providers _ | ee S PHILIPS en SE Jabil “CIRCUIT pam Diversified Technology GZ CELESTICA
Slide 20: TTM Serves Diversified End-Markets
“.. End-Markets VA TTM Serves Diversified ‘Tim Technologies (% of Revenus ——r f 4 ay 1999 2000 | 2001 | 2002 | 102003 ae 25% 34% 4% | 31% 34% Industrial! Medical 21% 19% 27% | 26% 11% High-End Computing 2% 2% 20% | 15% 4% Computer Peripherals 2% 12% 10% | 20% 10% Handheld 8% 8% &% M% % Other 8% &% 8
Slide 21: Future Acquisition Strategy
Future Acquisition Strategy uick-turn market share specialty materials opportunities with B manufacturing
Slide 22: Stacey Peterson, Chief Financial Officer
Stacey Peterson Chief Financial Officer
Slide 23: Historical Sales Growth
Historical Sales Growth Expansion of quickturn and =< Proforma for |r ACI acquisition ‘ | $180 Power Creuits acquisition 79) $140 | 203.7 $100 1848 $1291 106.4 Ze | / 9 $20 1998 © 1999 2000S -2001. «2002: PF 2002" PPP Pe ake evoke arin Roni spradkar paver fil encwecd ald) SON Hl yee vessutie dorsi H
Slide 24: EBITDA and EBITDA Margin
al EBITDA and ‘EBITDA Margin Heh, $615 $60.0 30% Power Circuits Z acquisition 799) £ =; = \ 20% : ae $32.3 ve 30.0 a e $20.9 E $20.0 1 si16 10% $10.0 | 353 $0.0 r r r Eis ow, 1998 1999 2000 2001 2002 = S EBITDA EBITDA Margin AEBITOA means earrings betoreinteract expense (including amortization of de
Slide 25: EBITDA Reconciliation
EBITDA Reconciliation TIM Technologies ‘ rere ~ as —— i 4908 1999 200020012002 10.2003 ‘Net income 84 (0.2) 284 11.0 1.6 0.2) Add back tems Extraordinary it _ 2 15 68 : 6.3) @.8) Income taxes 2 08 1.9) 62 23) @.5) er 08 10.4 12.2 2.6 44 02 of = a8 0) ay Hw 30038858 : 22048 ma oo OF oe 8 5 : : a ae 4
Slide 26: First Quarter 2003 Results
First Quarter 2003 Results Tim Technologies Dollars in millions, except per share data 4 pees Ghar st Ee Sales a $23.7 $39.6 Gross Profit 26 45 Operating Profit (0.2) (13) Net Income Before Extraordinary (03) (08) EPS Before Extraordinary” ($0.01) ($0.02) Operating Cash Flow $3.9 $78 Inventory Turns
Slide 27: Cash - Capitalized for Future Growth
Cash Net Cash (Debt) Total Shareholders’ Equity Total Capitalization Interest Coverage” Capitalized ee for Future Growth ri 6 12131102 331103 18.9 $ 26.1 89 16.1 167.4 167.5 7A 1775 49x 5.8x AEBITDA/ Interact Expense, includes cash restructuring charges of $20 M for 2002 and $203,000 for 16,2003
Slide 28: Conclusion
Conclusion i joned for industry recovery as one of the PCB fabricators n “time” and “technology” to gain market share as industry “winner” alance sheet
Slide 29: Link to searchable text of slide shown above
Link to searchable text of slide shown above Searchable text section of graphics shown above [LOGO] State of the North American PBC Market TMRC Conference May 6, 2003 Kent Alder President and Chief Executive Officer Safe Harbor Provision During the course of this presentation, we will make projectio