Ultra Clean Holdings, Inc. · NASDAQ:UCTT
Ultra Clean — Investor Presentation (May 2023)
24 slides from Ultra Clean's investor presentation, May 2023
Slide 1: Investor Presentation Spring 2023
Investor Presentation SPRING•2023
Slide 2: Safe Harbor
Safe Harbor This presentation contains, or may be deemed to contain, "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of Non-GAAP 1995) which reflect our current views with respect to future events and Management uses non-GAAP gross margin, non-GAAP operati
Slide 3: Enabling Technology for 30 Years
Enabling Technology for 30 Years Founding of UCT 1991 2002 2006 2010 2014 Solving complex problems through generations of innovation 2021 3
Slide 4: UCT Consistently Outperformed WFE
UCT Consistently Outperformed WFE 60% UCTT Semi Revenue Growth vs. WFE Outperformance WFE Growth UCT Semi Rev Growth 50% 40% 30% 20.5% 20% 11.5% 13.3% 9.7% 10% 6.1% 5.5% 5.7% 0% 2016 2017 2018 2019 2020 2021 2022 -10% -20% * UCT estimates and UCT’s adaptation of TechInsigts manufacturing equipment m
Slide 5: Proven Growth Strategy
Proven Growth Strategy CAGR* 2019 – 2022 $ IN MILLIONS $2,374 UCT UCT Revenue Op Margin $2,102 31% WFE 23% $1,399 $1,066 12.2% 11.3% 11.0% 7.8% 2019 2020 2021 2022 5
Slide 6: Successful Inorganic Growth
Successful Inorganic Growth AUGUST•2015 Purchase Price $22.8M EV/EBITDA ~6.2 SEPTEMBER•2018 APRIL•2019 DECEMBER•2020 Purchase Price $342.0 Purchase Price $30.0M Purchase Price $351M EV/EBITDA ~6.6 EV/EBITDA ~5.4 EV/EBITDA ~14.5 FEBRUARY•2015 Purchase price $43.6M EV/EBITDA ~11.8 6
Slide 7: Lifecycle of Chip Manufacturing
Lifecycle of Chip Manufacturing • Part Recycling & Refurb • Part Cleanliness Analytics • Equipment Maintenance • Wafer Fab Production Equipment • New Part Cleaning • WFE & Sub-Fab Support Equipment – Pumps, Gas & Chemical Cabinets • ChemTrace: Cleanrooms & Sub-fab Analysis • Fab Infrastructure – Fac
Slide 8: Supplying Critical Process Capabilities
Supplying Critical Process Capabilities EPITAXY LITHOGRAPHY CMP ETCH IMPLANT INSPECTION DEPOSITION ANNEAL WAFER CLEAN 8
Slide 9: Diversified Path To Market Expansion
Diversified Path To Market Expansion 9
Slide 10: Industry and Customer Footprint (Q1'23)
Industry and Customer Footprint (Q1’23) Service* Service* 15% Memory 15% WFE Lam Non-semi 25% Non-semi 10% 37% 10% Other OEM Foundry & 18% Logic WFE Applied 50% 20% 10 * Includes low single digit OEM service revenue
Slide 11: Strategic Global Footprint
Strategic Global Footprint PRODUCTS* SERVICES UK CALIFORNIA CZECH OREGON REPUBLIC ARIZONA KOREA COLORADO ISRAEL CHINA TEXAS PHILIPPINES MAINE TAIWAN SINGAPORE MALAYSIA 11 * Primary operational site
Slide 12: Total Available Market
Total Available Market 12 * UCT estimates and UCT adaptation TechInsights and SEMI Wafer Fab Equipment forecasts (March’23)
Slide 13: Product Division Opportunities
Product Division Opportunities • Increase share in manufactured • Grow engagement with smaller components customers • Further penetration of current – Further diversify revenue; leverage >10% customers new high growth device markets (i.e., 5G, IoT, and automotive) • Expand presence at other major OE
Slide 14: Service Division Opportunities
Service Division Opportunities • Reduce cost of ownership utilizing • Improve efficiencies by leveraging advanced technology part cleaning knowledge – Longer part life and improved yield – Create value by efficiently managing through specialty coating customer spare parts – Higher tool productivity
Slide 15: Services Division Advantaged Position
Services Division Advantaged Position • Primary customers engage with global suppliers • Large number of regional players serve ~70% of market – Leading position; opportunity to grow 2022 19% Top 4 IDM 57% Top 4 OEM* 27% Top 2 Foundries 6% All Other 10% 15 * Includes OEM Sub-suppliers
Slide 16: Malaysia Update
Malaysia Update • Working with customers to • Expands global footprint; accelerate production supports growth plan – Focused on ramping output/revenue – Proximity to customers and suppliers through 2022 – Ensures business continuity • State-of-the-art Facility – Improves cost competitiveness 16
Slide 17: End Market Update
End Market Update Foundry Logic 3D NAND DRAM INVESTMENT TO SUPPORT LOGIC SPENDING CONTINUING TRANSITION FOCUS ON MANAGING LONG-TERM DEMAND ACROSS WIDER BASE TO MORE LAYERS SUPPLY – – – – – – – – 17
Slide 18: Margin Target Model
Margin Target Model Products Services $1.5 - $2.0B $2.0 - $3.0B $3.0 - $4.0B Non-GAAP Non-GAAP Gross Margin Gross Margin 16% - 20% 33% - 38% 18% - 22% 19% - 23% 20% - 24% Non-GAAP Non-GAAP Operating Margin Operating Margin 10% - 13% 12% - 16% 9% - 13% 10% - 14% 11% - 16% 18 *Excluding intangible amo
Slide 19: Financial Update
Financial Update Spring•2023
Slide 20: Q1'23 Key Takeaways
Q1’23 Key Takeaways Total Gross Operating Operating Cash EPS* Revenue Margin* Margin* Cash Flow Balance $433.3M 17.3% 5.1% $28.0M $322.1M $0.17 Products Services Revenue $368.6M Revenue $64.7M Gross Margin* 14.7% Gross Margin* 31.7% Operating Margin* 4.1% Operating Margin* 10.8% 20 *Excluding intang
Slide 21: Q2'23 Guidance
Q2’23 Guidance Revenue $410M $460M EPS $0.15 $0.35 21
Slide 22: Thank You
Thank You
Slide 23: Reconciliation: GAAP Net Income to Non-GAAP Net Income
Reconciliation: GAAP Net Income (loss) to Non-GAAP Net Income $ in Millions FY’20 FY’21 FY’22 Q1’23 Net income (Loss) per GAAP basis 77.6 119.5 40.4 (3.4) Amortization of intangible assets (1) 19.8 33.4 30.1 5.8 Restructuring charges (2) 4.6 1.3 3.3 0.2 Stock-based compensation expense (3) 12.9 16.8
Slide 24: Reconciliation: GAAP to Non-GAAP Earnings Per Diluted Share
Reconciliation: GAAP to Non-GAAP Earnings Per Diluted Share FY’20 FY’21 FY’22 Q1’23 Reported GAAP net income (loss) $1.89 $2.69 $0.88 $(0.08) Amortization of intangible assets (1) $0.48 $0.75 $0.66 $0.13 Restructuring charges (2) $0.11 $0.03 $0.07 $0.00 Stock-based compensation expense (3) $0.32 $0.
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