Ttm Technologies, Inc. · NASDAQ:TTMI
Ttm Technologies — 12th Annual Needham Growth Stock Conference 2010
33 slides from Ttm Technologies's conference presentation, Jan 13, 2010
Slide 1: TTM Technologies Investor Presentation, Needham Growth Stock Conference
TTM Technologies, Inc. Investor Presentation 12th Annual Needham Growth Stock Conference January 13, 2010
Slide 2: Hong Kong Takeover Code Statement and Forward-Looking Statements
Tim Technologies ‘Statement on Hong Kong Code on Takeovers and Mergers ‘Meadvile Holdings Limtedis a company listed onthe Hong Kong Stock Exchange. The combination of TTM Technologies and Meadvileés PCB business isregarded asa privatization of Meadvale under te relevat Hong Kong reguations. In adsto
Slide 3: TTM has a proven track record of executing successful acquisitions
Incorporated in 1998, TTM has a proven track record of executing successful acquisitions Largest North American PCB Manufacturer Strategically focused Time - Technology - High Mix - Aerospace/Defense Diversified customer base Company History December 1998 Acquired Pacific Circuits Power Circuits Dat
Slide 4: Printed Circuit Board Products
Printed Circuit Board Products Rigid-Flex PCBs High Density Interconnect (HDI) PCBs Backplane PCBs RF PCBs
Slide 5: Global PCB Market by Region
Global PCB Market by Region 1st Qtr Americas 4484 Europe 3208 Japan 10186 China 15037 ROW 15315 Region 2000 2008 2013e CAGR '08-'13 Americas $10,852 $4,484 $4,547 0.3% Europe $6,702 $3,208 $2,234 -7.0% Japan $11,274 $10,186 $10,169 0.0% China $3,368 $15,037 $22,820 8.7% ROW $8,724 $15,315 $18,675 4.
Slide 6: The Global PCB Market
The Global PCB Market Companies over $100M in Annual Sales by Revenue > $1.0 billion $500mm to $999mm $250mm to 499mm $100mm to 249mm Source: N.T. Information, June 2009
Slide 7: North American PCB Market Overview
North American PCB Market Overview The $3.8 billion North American PCB market is highly fragmented Fragmented North American Market North American Market Share Analysis Source: N.T. Information, June 2009 ^ $100mm $20 to $99mm $10 to $19mm $0 to $9mm TTM is the largest PCB company in North America L
Slide 8: Global PCB Positioning
Global PCB Positioning Low Medium High Volume Standard Advanced Meadville PCB Focus Low TTM Focus Technology Servers High-end Networking Cellular Phone / High-end Consumer Higher-end Networking Aerospace / Defense Commercial Aerospace Consumer Electronics Office Automation Automotive Asia Focus
Slide 9: Total Customer Solution
Total Customer Solution Product Life Cycle Volume R&D NPI Ramp Mature End of Life Time Total Solution Capabilities: Prototype Low Volume / High Mix Medium Volume High Volume High Technology Advanced Technology
Slide 10: TTM Strategy
1 2 3 4 5 TTM 20 20 20 20 20 TTM Strategy Aerospace / Defense No. 1 North American supplier Rigid Flex and specialty PCB products Backplane and subassembly Time Dedicated ultra-short lead time capability (<24 hours available) Dedicated, highly flexible, ramp-to- volume production in <10 days High-mi
Slide 11: TTM - Meadville PCB Combination
TTM - Meadville PCB Combination
Slide 12: Transaction Overview
Transaction Overview Equity purchase price of approximately US$521 million will be payable in the form of cash and TTM stock, which implies a transaction enterprise value of approximately US$936 million TTM shares issued to Meadville shareholders will represent approximately 45% interest in TTM post
Slide 13: Overview of Meadville PCB
Overview of Meadville PCB Meadville focuses on higher-end PCB products The company's "one-stop shop" service offers PCB engineering services, with QTA to volume production Major customers include well-known global OEM and EMS customers from China, Japan, South Korea, North America and Europe as well
Slide 14: Meadville PCB Meets All of TTM's Asian M&A Criteria
Meadville PCB Meets All of TTM's Asian M&A Criteria Established financial model with leading growth and margin profile Excellent management team with extensive China manufacturing expertise Strong cultural fit - with similar business philosophies Advanced technology capabilities - best fit with TTM
Slide 15: Combination Creates A Leading Global PCB Manufacturer
Combination Creates A Leading Global PCB Manufacturer "Global Presence, Local Knowledge" TTM 2008 Revenue: US$681 million 2008 Adjusted EBITDA1: US$95 million Meadville PCB 2008 Revenue: US$669 million 2008 Adjusted EBITDA2: US$120 million Combined Company 2008 Revenue: US$1.35 billion 2008 Adjusted
Slide 16: Global Facility Footprint
Global Facility Footprint Seamless integration across distinct facilities enables successful one-stop shop solution for commercial customers No planned facility closures 1 7 2 5 3 4 6 Integrated manufacturing platform enables TTM to execute a global facility specialization strategy Focused Assembly
Slide 17: Post Transaction Organizational Structure
Post Transaction Organizational Structure The transaction is limited to Meadville's PCB business Meadville laminate business will be sold simultaneously in a separate transaction TTM Commercial Assembly US PCB Business Asian PCB Business Managed by existing TTM management team Managed by existing TT
Slide 18: Diversifying Revenue Base
Diversifying Revenue Base Revenue by Geography Revenue by End-Market TTM Pro Forma Meadville PCB TTM Pro Forma Meadville PCB Source: Company filings. Revenue for the calendar year 2008 period The combination creates a leading global manufacturer with a highly diversified revenue mix
Slide 19: Diversifying Customer Base
Diversifying Customer Base TTM 2008 Revenue Contribution by Customer Meadville PCB 2008 Revenue Contribution by Customer Selected Customers by End Market Selected Customers by End Market Source: Company filings, Management Apple Ericsson Huawei Nokia ZTE BAE Systems Hamilton Sundstrand ITT Corporati
Slide 20: Creates a Leading Global PCB Manufacturer
Creates a Leading Global PCB Manufacturer 2008 Top Global PCB Manufacturers (by revenue) Source: N.T. Information and company information, as of Q2 2009. PCB Revenue only Note: 1 Ranking incorporates PCB revenue only from TTM, Meadville PCB and combined entity (excludes assembly revenue); Meadville
Slide 21: Financial Overview
Financial Overview
Slide 22: TTM Annual Sales
TTM Annual Sales 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q309 YTD 78.5 106.4 203.7 129 89 180.3 240.7 240.2 369.3 669.46 680.98 432.55 ($ Millions) Acquisition Advanced Circuits (12/26/02) Acquisition Power Circuits (7/14/99) Acquisition Tyco PCG (10/27/06)
Slide 23: TTM Historical Revenue, EBITDA & Free Cash Flow
TTM Historical Revenue, EBITDA & Free Cash Flow ($ Millions) Note: Acquired Tyco PCG on 10/27/06. Find reconciliation to audited financials in Appendix; 2008 & 3Q09 YTD EBITDA adjusted for impairment charges. Revenue Adjusted EBITDA and Free Cash Flow
Slide 24: Quarterly Results
Quarterly Results 1 Adjusted for FASB Staff Position APB 14-1, "Accounting for Convertible Debt Instruments That May be Settled in Cash Upon Conversion (Including Partial Cash Settlement)", which changed the method of accounting for our convertible notes. 2 Adjusted for non-recurring charges of $123
Slide 25: Historical Balance Sheet
Historical Balance Sheet * Adjusted for FASB Staff Position APB 14-1, "Accounting for Convertible Debt Instruments That May be Settled in Cash Upon Conversion (Including Partial Cash Settlement)", which changed the method of accounting for our convertible notes.
Slide 26: Meadville Transaction
Meadville Transaction
Slide 27: Transaction Summary: Sources/Uses & Combined Metrics
Transaction Summary Sources/Uses & Combined Metrics TTM Meadville US$114mm Cash + 36.334mm TTM Shares All PCB Assets/Employees + US$582.5mm New Asian Bank Facility Combined Balance Sheet (9/28/2009) Combined Credit Statistics LTM2 Income Statement Data (LTM as of 9/28/09) Cash1: TTM Existing Convert
Slide 28: Combined Annual Revenue and Historical Adjusted EBITDA
Combined Annual Revenue and Historical Adjusted EBITDA Annual Revenue 1 Historical Adjusted EBITDA 1 , 2 2006-2008 CAGR: 35.6% Notes: 1 TTM financials reflect acquisition of Tyco PCG on October 27, 2006 and Meadville's acquisition of Aspocomp on November 19, 2007 2 TTM adjusted EBITDA defined as Ope
Slide 29: Public Company Benchmarking
Public Company Benchmarking LTM EBITDA Margin 1 LTM Revenue LTM EBITDA 1 LTM Revenue TTM / Meadville PCB TTM / Meadville PCB Notes: 1 TTM adjusted EBITDA defined as Operating Income, excluding depreciation and amortization expense of $24.4 million and non-recurring items which in the LTM period ende
Slide 30: New Fully-Committed Asian Credit Facility
New Fully-Committed Asian Credit Facility Structure Overview US$582.5 million new credit facility from a syndicate of 7 leading Asian banks Flexible tranche structure to address Asian business requirements Tranche A: US$350 million term loan; interest rate of L+200bps Tranche B: US$87.5 million revo
Slide 31: Key Milestones to Closing
Key Milestones to Closing Anti-trust Approval in US (HSR) and PRC CFIUS and DOD Approval Meadville Shareholder Approval TTM Shareholder Approval Transaction expected to close in Q1 2010 and is dependent on:
Slide 32: Appendix: Non-GAAP supplemental information
Appendix Non-GAAP supplemental information
Slide 33: EBITDA Reconciliation
EBITDA Reconciliation * Adjusted for FASB Staff Position APB 14-1, "Accounting for Convertible Debt Instruments That May be Settled in Cash Upon Conversion (Including Partial Cash Settlement)", which changed the method of accounting for our convertible notes. Note: This information provides a reconc
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