Ichor Holdings · NASDAQ:ICHR
Ichor — TD Cowen 52nd Annual Technology, Media & Telecom Conference 2024
22 slides from Ichor's conference presentation, May 29, 2024
Slide 1: Investor Presentation
Investor Presentation TD Cowen 52nd Annual Technology, Media & Telecom Conference May 29-30, 2024 Proprietary 1
Slide 2: Forward-Looking Statements and Non-GAAP Financials
Forward-Looking Statements and Non-GAAP Financials 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, regarding
Slide 3: Ichor Overview
Ichor Overview A Leading Provider of Critical Fluid Delivery Subsystems for Semiconductor Capital Equipment Gas and chemical delivery Subsystems, Flow Gas Delivery Subsystems Chemical Delivery Controllers, Subassemblies and Components are key and Flow Controller Subsystems elements of process tool
Slide 4: Investment Highlights
Investment Highlights Strong Track Record of Revenue Growth Outperforming the Overall Industry: We delivered annual revenue growth of 24% (CAGR) from 2015 to 2022, outperforming annual WFE (wafer fab equipment) growth of 17% over the same period; multiple strategies in place to continue delivering
Slide 5: Multiple Strategies to Outgrow the Industry
Multiple Strategies to Outgrow the Industry Historical Track Record of Outperformance of Roughly ~5% above WFE Growth Ichor Revenues ($M) Multiple Drivers for Industry Outperformance $1,280 Industry Trends $1,097 Increasing share of spend driven by etch, deposition, and EUV $1,009 Technology i
Slide 6: Technology Transitions Driving Growth in Ichor SAM
Technology Transitions Driving Growth in Ichor SAM Accelerating Investment in Increased Investment in WFE Intensity Increasing(1) EUV Ramping(2) Advanced Nodes Trailing Nodes and Non-Semi WFE as % of Semi. Rev. EUV Est. Sales ($B) 17% $10 16% $9 $8 15% $7 14% $6 13% $5 12% $4 $3 11% $2 10% $1 9% $-
Slide 7: Technology Inflections Requiring More Etch, Dep, EUV
Technology Inflections Requiring More Etch, Dep, EUV Increasing Use of Applications with Significant Fluid Delivery Requirements Gate-All-Around 3D DRAM HBM / Advanced Mature Nodes Packaging Reduced leakage current, higher transistor density require: Smoother Patterns Vertical Structures Improved Fi
Slide 8: Increasing Investment in Proprietary Products
Increasing Investment in Proprietary Products Gas Delivery: Vertical Integration Strategy Seals Precision Machining Fittings Fittings Weldments TAM: $105M TAM: $1.3B TAM: $500M TAM: $2.1B Flow Control UHP Valves TAM: $900M TAM: $343M = Customer Qualified = Development and/or Qualifications in Proces
Slide 9: Ichor’s Served Market Totals ~10% of WFE
Ichor’s Served Market Totals ~10% of WFE ~$9B SAM and Estimated Share for Average Market Opportunity: 2022 & 2023 Gas Delivery Weldments & Subassemblies Medium-Format Machining Chem.Del. Prec.Mach. Other Components ~$2.5B ~$1.6B ~$1.8B (IMG) ~$1.3B ~$1.0B ~$1.0B Current Market Share Est. ~30% <15% <
Slide 10: Track Record of Successful M&A
Track Record of Successful M&A Key M&A Strategies Expand Portfolio of Proprietary Product Offerings Expand Served Markets and Geographic Footprint Expand and Diversify Customer Base Gain Market Share with Key OEM Customers Accretive to Gross and Operating Margins; Target Returns > WACC Acq
Slide 11: Strategic Worldwide Manufacturing Footprint
Strategic Worldwide Manufacturing Footprint Proprietary 11
Slide 12: Key Financial Strategies: Outgrow WFE and Drive Strong GM Flow-Through
Key Financial Strategies: Outgrow WFE and Drive Strong GM Flow-Through Outgrow the Industry Drive Gross Margin Improvement Key technology inflections Grow share in higher-margin driving increased gas/fluid delivery SAM components businesses Levered to high-growth segments including Increase content
Slide 13: Expect Return to Growth After Down Year for WFE in 2023
Expect Return to Growth After Down Year for WFE in 2023 Ichor Revenues ($M) $1,280 Record of Outperforming WFE $1,097 Record of Growing Earnings Faster than Revenue Growth $1,009 $914 Maintained Profitability and Positive FCF $824 $811 $816 Through 2023 Downturn $656 Steadily Reducing Debt P
Slide 14: Target Model with Significant Operating Leverage
Target Model with Significant Operating Leverage Increased R&D Investment in Proprietary Products Driving Slight Adjustments in Target Model Annual Results (Non-GAAP)(1) Target Model 2020 2021 2022 2023 Gross Margin 15% 17% 17% 13% 20%+ Operating Expenses 6% 6% 7% 11% ~7% Operating Margin 8% 11% 10%
Slide 15: Appendix
Appendix chor Proprietary
Slide 16: Fiscal Year 2023 Reconciliations
Ichor Holdings, Ltd. Fiscal Year 2023 GAAP to Non-GAAP Reconciliations (in thousands, except per-share amounts) 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Net sales $ 405,747 $ 655,892 $ 823,611 $ 620,837 $ 914,236 $ 1,096,917 $ 1,280,069 $ 811,120 $ 225,870 $ 185,008 $ 196,761 $ 203,481 GA
Slide 17: Fiscal Year 2023 Reconciliations
Ichor Holdings, Ltd. Fiscal Year 2023 GAAP to Non-GAAP Reconciliations (in thousands, except per-share amounts) 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Net sales $ 405,747 $ 655,892 $ 823,611 $ 620,837 $ 914,236 $ 1,096,917 $ 1,280,069 $ 811,120 $ 225,870 $ 185,008 $ 196,761 $ 203,481 GA
Slide 18: Fiscal Year 2023 Reconciliations
Ichor Holdings, Ltd. Fiscal Year 2023 GAAP to Non-GAAP Reconciliations (in thousands, except per-share amounts) 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Net sales $ 405,747 $ 655,892 $ 823,611 $ 620,837 $ 914,236 $ 1,096,917 $ 1,280,069 $ 811,120 $ 225,870 $ 185,008 $ 196,761 $ 203,481 GA
Slide 19: Fiscal Year 2023 Reconciliations
Ichor Holdings, Ltd. Fiscal Year 2023 GAAP to Non-GAAP Reconciliations (in thousands, except per-share amounts) 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 GAAP income tax expense (benefit) $ (649) $ (13,886) $ (3,664) $ (6,454) $ (988) $ 2,857 $ 2,526 $ 11,907 $ (535) $ 12,620 $ 436 $ (614)
Slide 20: Fiscal Year 2023 Reconciliations
Ichor Holdings, Ltd. Fiscal Year 2023 GAAP to Non-GAAP Reconciliations (in thousands, except per-share amounts) 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Net sales $ 405,747 $ 655,892 $ 823,611 $ 620,837 $ 914,236 $ 1,096,917 $ 1,280,069 $ 811,120 $ 225,870 $ 185,008 $ 196,761 $ 203,481 GA
Slide 21: Fiscal Year 2023 Reconciliations
Ichor Holdings, Ltd. Fiscal Year 2023 GAAP to Non-GAAP Reconciliations (in thousands, except per-share amounts) 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Net sales $ 405,747 $ 655,892 $ 823,611 $ 620,837 $ 914,236 $ 1,096,917 $ 1,280,069 $ 811,120 $ 225,870 $ 185,008 $ 196,761 $ 203,481 No
Slide 22: Thank you
Thank you NASDAQ: ICHR Proprietary 22
Ichor Holdings — TD Cowen 52nd Annual Technology, Media & Telecom Conference 2024 on 6ix