Ttm Technologies, Inc. · NASDAQ:TTMI
Ttm Technologies — JP Morgan Technology & Telecom Conference 2004
35 slides from Ttm Technologies's conference presentation, May 6, 2004
Slide 1: JP Morgan Technology & Telecom Conference
© TTM Technologies JP Morgan Technology & Telecom Conference May 5, 2004
Slide 2: Safe Harbor Provision
Safe Harbor 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 expectations,
Slide 3: President and Chief Executive Officer
Tim Technologies President and Chief Executive Officer
Slide 4: Company Overview
Company Overview TIM Technologies TTMis a leading provider of time-critical and technologically complex printed circuit boards to the world’s leading electronic equipment designers and manufacturers “Pure Play” printed circuit board (PCB) manufacturer + Focused on time (24 hrs to 10 days) & technolo
Slide 5: Investment Highlights
Investment Highlights Solid Industry Fundamentals Focused Strategy & Leading Market Position Demonstrated Execution Excellence Industry Leading Financial Performance Multiple indicators of sustained demand Increased capacity utilization leading to price increases Leader in most attractive PCB segmen
Slide 6: Attractiveness of Time & Technology Strategy
Attractiveness of Time & Technology Strategy + Early access to new customers with high-growth potential Growth + Key supplier to high-growth programs within market leaders + Critical service for new product introduction across multiple industries + Difficult business model to replicate Limited Compe
Slide 7: Industry Overview
TM Industry Overview
Slide 8: Industry Dynamics and Key Success Factors
Industry Bynamics and Key Success Factors Tim Technologies Current Industry Dynamics Key Success Factors + Continued outlook for solid + Capacity in place for complex products industry conditions and short lead times + High volume, low-mix, low- + Focus on quick-turn, high-mix and technology product
Slide 9: End Market Indicators Remain Positive
TIM Technologies Electronic Equipment Orders & Inventory Infrastructure Spending Electronics Supply & Manufacturing Business Index (formerly EBN’s Electronics Buyers’ Index) Electronic Equipment Book-to-Bill PCB Book-to-Bill @OO] [COO] |@0O} |@00] |@0O End Market Indicators Remain Positive Favorable
Slide 10: Competitive markets by technology level and lead time
[1 Asian focus [J Competitive markets High (> 1,000) = Pcs + Cellphones Limited product + Computer + Advanced PDAS application peripherals + Power supplies z + Automative 4 + Consumer os electronics 2 = Pcs Low-end servers High-end servers E + Computer + High-end computers | + Telecom | Medtum (100
Slide 11: North American PCB market
rth American Tim Technologies * $5.3 billion North American PCB market in 2003 © Total number of PCB manufacturers has been reduced by approximately 50% > 950 companies in 1992 to fewer than 500 in 2003 * 30-40% of PCB capacity has been removed since 2000 peak * Only7 PCB fabricators with greater th
Slide 12: TTM's Strategy
TTM’s Strategy 12
Slide 13: TTM's Strategy
TT's Strategy Customers / End Markets + Diverse hase of industry leading customers + Early access to emerging customers and niche enc-markets + Glabal sales reach Technology Time + High performance, technologically camplex PCBS Industry Leading Execution and + Dedicated ultra-short lead time Financi
Slide 14: Facility Specialization Strategy
Tim Technologies Technology (Layer Count) High-Mix / Facility Specialization Strategy 4° || prototypes || Low Volume & Prototypes 30 20 10 Leading Edge Technology ° 5 10 15 20 Time (Lead Time in Days) ty and Technology 14
Slide 15: Capacity Expansion Plan
Capacity Expansion Plan at Existing Facilities Chippewa Falls — Phase One © Approximately 100 additional employees by mid~04 * 44,000 sq. ft. physical expansion > Capital equipment and plant expansion ($10mm) > Additional employees Santa Ana/ Redmond * Target completion by end of 2004 * ongoing capa
Slide 16: Price by Delivery Time
Price by Delivery Time 5x Quick-Turn Revenue 2 ax (10 days or less) 2 > 27% 2003 = ~249 Box & ~24% 1Q 2004 3 3 = & 2x s > 1x ox 24Hours 3Days SDays 10Days 1120 Standard- Days Delivery Time (Lead Time) 16
Slide 17: Revenue By Layer Count
Revenue By Layer Count TIM Technologies Percentage of Revenue a 63% ES Avg. Laver Count 1Q 2004 = 147 29% Y 2000= 83 . 7 30% 28% 28% : 2% 2% 15% 28% 26% 26% 28% 1999 2000 2001 2002 20038 1 2004 Hl 12-48 Layers Do => 20 Layers Continuing to Upgrade Technological Capabilities 7
Slide 18: Global Sales Reach
Global Sales Reach TTM Shipments by Geography Technical —_ Inventory Q1 2004 Sales Support Hub Europe 3 1 2 Asia & ROW 4 1 1 North America 80% 88 8 3 Total 95 10 6 18
Slide 19: Customer Concentration
Customer Concentration Percentage of Revenue 62% 64% ae E hol iia 1% : 46% 9 13% a 42% 119 56% 49% 38% 1999* 2000 2001 2002 2003 1Q 2004 H@ Top5 customers [ Customers 6to10 increased Exposure to End Market Leaders "Pro forma forthe acquisition of Power Cita, which oocutred in July 1008, 19
Slide 20: Revenue Chain
et ‘Revenue Chain 3) 19 2004 - % of total production revenues End Markets Customers Channel = a 2 Top OEM EMS 2 Customers Providers -67% = = + Cisco Benchmark a Mi. High-End aes 3 am Compu + Hewlett-Packard elestica 2 23 ah + IBM Jabil s ef Plexus 2 #3 Solecti = 3% Solectron 5 re Others o s e 3 Ship
Slide 21: Key Customers by End Market
Key Customers by ei End Market ¢ TIM Technologies Percentage of Revenue by End Market - 1Q 2004 Networking & ato A NEC Communications 40% jim) i@elJuniper ES High-End Computing Industrial & Medical 13% Computer aficron GInvIvIA Peripherals eh —— sua, =a Handheld & gy dp irtindusties WW) moronoua ES}
Slide 22: Cisco emerges as a leading customer
Step 3: Cisco emerges as a leading proto customer at Santa Ana during Q4 Step 4: Key qualification activities completed and initial orders captured in a4 ' Delivery of Total TTM Solution Step 1: ACI acquisition created position as a leading supplier to Cisco for complex PCBs Step 2: Chippewa Falls’
Slide 23: Compelling Growth Opportunities
Compelling Growth Opportunities TiM Technologies * One-stop manufacturing solution with numerous cross-selling opportunities * Quick-turn capabilities for attracting emerging high-growth customers * Leadership in technology and advanced manufacturing processes * Capacity available through low risk,
Slide 24: Chief Financial Officer
' (, y Stacey Peterson Technologies TM Chief Financial Officer 24
Slide 25: Annual Sales
Annual Sales Sales ($mm) ‘Advanced Creuits Acquistion (12726102) Power Circuits Acquistion (7/14/99) | 180. 3203. 129. 106. $78.5 $89.00 1998 1999 2000 2001 2002 2003 25
Slide 26: Quarterly Sales
Quarterly Sales Sales ($mm) ‘Rdvanced Creuits ‘Acquisition (2726102) | 45 8. 1 i a | 14 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2002 2003 26
Slide 27: Annual EBITDA and EBITDA Margin
Annual EBITDA* and EBITDA* Margin Tim Technologies $80 40% Power Creults $60 Acquistion (7/14/99) 0h £ ‘Advanced Crculta 5 E Acquistion (127262) 2 s 5 i $40 20% a E E a a ir] a $51.8 $20 10% $32.9 $18.7 a | $125 | fos 5 $0 0% 1998 1999 2000 2001 2002 2003 * Please see Appendictor EBITDA recondiiaton
Slide 28: Quarterly EBITDA and EBITDA Margin
y EBITDA* and EBITDA* Margin 30% $12 a $10 = ‘avanced Creuite 20% - E @ Acquisition (12/26/02) 2 & 19% S & a 12 4a £ £ 5S B Fa a $9.9 ix” $4 q P 62 49 cain A. om 5 : ea Fal Ba 0 0% fo 2a QQ ttt 2002 2003 2004 * Please see Appendictor EBITDA reconclation. EBITDA means eamings before interest expense
Slide 29: Quarterly Results and Estimates
(Smm, except per share data) Quarterly Results and Estimates 2003 2004 Ta 20 3a aq 7a 20 Sales $396 $410 $453 $543 $67.7 $59.0-$62.0 Gross Profit 45 64 95 142 173 % Margin 11% = 16% 21% 26% 30% Operating Income” (10) 1.0 40 7A 107 GAAP EPS (80.00) $001 $006 $0.11 $0.15 — $0.16-$0.18 Operating Cash F
Slide 30: Capitalization
Capitalization 12131102 12131103 3/29/04 Cash & ST Investments $18.9 $317 $37.2 Net Cash 89 23.9 29.4 Total Shareholders’ Equity 167.4 178.3 185.7 Total Capitalization VTA 186.1 193.5 Weil-Caj ed for Future Growth 30
Slide 31: Conclusion
Conclusion Solid industry fundamentals Focused strategy and strong market position Demonstrated execution excellence Industry leading financial performance 31
Slide 32: © TIM Technologies
© TIM Technologies
Slide 33: Appendix
Appendix Appendix 33
Slide 34: Annual EBITDA Reconciliation
Afinual EBITDA Reconciliation 1998 19002000212 Net Income (loss) sa (90 RT SLO Add back items: Income taxes : : 6H 62 eH 39 Interest expense as 104 122 26 144 as Amortization of debt issuance costs a4 as ar oo 8004 a4 Depreciation of property, plant, and equipment 30 36 55 a3 88 78 Amortization of i
Slide 35: Searchable text section of graphics
Searchable text section of graphics shown above [ GRA PHIC] [LOGO] JP Morgan Technology & Telecom Conference May 5, 2004 [ GRA PHIC] Safe Harbor Provision [LOGO] During the course of this presentation, we will make projections or other forward-looking statements regarding future events or the future
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