Ttm Technologies, Inc. · NASDAQ:TTMI
Ttm Technologies — Debt Investor Presentation (February 2018)
36 slides from Ttm Technologies's debt investor presentation, Feb 9, 2018
Slide 1: TTM Technologies, Inc. Lenders Presentation February 2018
TTM Technologies, Inc.Lenders PresentationFebruary 2018Exhibit 99.1
Slide 2: Disclaimers: Forward-Looking Statements
DisclaimersForward-Looking StatementsThis communication may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to the future business outlook, events, and expectedperformance of TTM Technologies, Inc. (“TTM”,
Slide 3: Agenda
Agenda• Transaction Overview Sean Lynch, Barclays• TTM and Anaren at a Glance Tom Edman, CEO• Key Credit Highlights Tom Edman, CEO• TTM Recent Performance Highlights and Financial Policy Todd Schull, CFO• Syndication Overview Sean Lynch, Barclays• Appendix3
Slide 4: Transaction Overview
Transaction Overview4
Slide 5: Anaren Transaction Overview
Anaren Transaction Overviewï,— $775 million purchase price (~12.7x LTM Anaren Adj. EBITDA, 12/30/17) for 100% equity in Anaren,on a cash-free, debt-free basis subject to working capital adjustment at closingï,— 100% cash consideration, projected to be financed with:• $600 million of fungible add-ons
Slide 6: Sources/Uses and Pro Forma Capitalization
Sources/Uses and Pro Forma CapitalizationSources and Uses ($ in millions) Existing and Pro Forma Capitalization ($ in millions)($ in millions) Pro FormaHistorical Anaren For Anaren1/1/18 Adj. 1/1/18($ in millions)% ofSources Amount TotalCash and Cash Equivalents $409.3 ($190.0) $219.3US ABL Revolver
Slide 7: TTM and Anaren at a Glance
TTM and Anaren at a Glance7
Slide 8: TTM Overview
TTM Overview• TTM is a worldwide leader inBusiness Overview Technology-Enabled End Markets and Customersthe manufacture of PCBs andprovides a range of PCBs andelectro-mechanical solutions• Critical supplier to today’sfastest growing markets suchas smartphones, automobile,Aerospace anddefenseMedical
Slide 9: Strategic Rationale
Strategic Rationale P id i i dd i ti db d d tTTM’s acquisition of Anaren is expected to…Provide RF engineering and design expertise and broaden our productportfolio Drive us into earlier and deeper engagement with customers Enhance revenue synergy opportunities in our diverse end markets
Slide 10: Anaren Overview
Anaren OverviewRadar Space Electronic Warfare Wireless InfrastructureNetworking /Communications• Leading provider of mission-critical RF solutions forspace, defense and wireless infrastructure end marketsRevenue by Segment (2)• Sole-sourced and spec’d in positions on high-priority 28%programs throug
Slide 11: Anaren's Technology Serves Multiple End Markets
Anaren’s Technology Serves Multiple End Markets
Slide 12: Key Credit Highlights
Key Credit Highlights12
Slide 13: Summary of Key Credit Highlights
Summary of Key Credit HighlightsProvides differentiated RF solutions enabling early engagement with customers1Increases D significant macro tailwinds2presence in the A&market with 3Increases growth opportunities in diverse end markets4Deepens customer interaction with leaders in A&D and communicatio
Slide 14: Enhances TTM's Successful Customer Engagement Model
1 Enhances TTM’s Successful Customer Engagement Model…ProductionP d tiConsumer Aerospace& DefenseAutomotiveNetworkingPilotProductionAnaren BuildtoSpecificationPrototypeConcept6 Mo’s 1 yr 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs 7–10 yrsTimeEngaging customers from concept to volume production14
Slide 15: A Broad Range of Proprietary RF Solutions
1…with a Broad Range of Proprietary RF SolutionsPassiveComponentsAdvanced CeramicComponentsHigh-Density,HiRel MCMs RF Networks High-FrequencyBeamformingand Switching• Industry-leadingXinger brand ofproducts• Signal distribution• High-density,multilayer LTCCsolutions• Precision thick-film• High-frequ
Slide 16: TTM's Broad Presence in a Growing A&D Market
TTM’s Broad Presence in a Growing A&D Market …Leading Player 2Aerospace and Defense MegatrendsPassenger Traffic Growth Commercial Fleet UpgradeFY2017 TTM A&D growth rate of 10%, above market projections of 2%–4%Aligned with Top Tier A&D Customers4.6% CAGR Airline Traffic ~35,000 new aircraft by 2035
Slide 17: Anaren's Mission-Critical Solutions for Key A&D Programs
… Is Bolstered Through Anaren’s Mission-CriticalSolutions for Key A&D Programs2Select Missile Defense Select Air-Based Radar/EW Select Space-Based Systemsy gAMDR F-35 OrionTPQ-53 F-16 ( SABR) GPSIIISBIRS)E2DAEHFTHAADMH-60RMH 17
Slide 18: Significant Macro Tailwinds
2 Significant Macro TailwindsDoD Spend(1) AESA Radar Spend(2)($ in billions) ($ in billions)Anaren is focused on fast growing sub-segments$28 $8$4$241 DoD Procurement and RDT&E spend for Radar Electronic SatCom Source: DoD Budget2017E 2022E 2017E 2022E181. Radar, Warfare and Military SatCom. Budget,
Slide 19: Increased Presence in the A&D Market
2 Increased Presence in the A&D MarketRevenue Mix(1)TTM Anaren PF CombinedNetworking /Comms.Computing /Storage /Peripherals13%Other2% Networking /CommsNetworking /Comms.Medical / 19%Computing /Storage /Peripherals12%Other2%18%A&D16%Medical /Industrial /Instrumentation14%Comms.28%A&D21%Industrial /In
Slide 20: Anaren Diversifies TTM's Business, While Strengthening Key Areas
Anaren Diversifies TTM’s Business, While StrengtheningKey Areas 3Networking/CommsMedical/Industrial/InstrumentationAerospace/Defense Cellular ComputingEnd Markets Enhanced by AnarenAutomotive2% 4%1% 3% 4% 6%–’21GR5% 8%5% 8%0% 2%• 5G infrastructurebuildout• Optical networkingth1%–4%–• Medical devicet
Slide 21: Highly Complementary Customer Base Sourcing Different Products
Highly Complementary Customer Base Sourcing Different4 ProductsAerospace/Defense Networking/Comms Automotive/Expanded capabilitiesto drive increasedpenetration andDeepens and reinforces relationships revenue synergieswith existing customersExpands capabilities available to current TTM customers21Pro
Slide 22: Recent Performance Highlights and Financial Policy
Recent Performance Highlights and Financial Policy22
Slide 23: TTM Reported Revenue and Profit Growth
TTM Reported Revenue and Profit Growth$2 659$3,000 12.0% $2.00Revenues Non-GAAP Operating Margin(1) Non-GAAP EPS(1)2,659$2,000$2,5009.6%8.0%10.0% $1.60 $1.57$1 000$1,5004 0%6.0%$0.80$1.20$$5001,0002.0%4.0%$$0.40$-FY 2014 FY 2015 FY 2016 FY 20170.0%FY 2014 FY 2015 FY 2016 FY 2017$-FY 2014 FY 2015 FY
Slide 24: TTM Generates Strong Free Cash Flow
TTM Generates Strong Free Cash Flow$250 5.0Free Cash Flow (millions) (1) Leverage (Debt / Adj. EBITDA (2))$209$150$2003.2 3.04.12.6 2 53.23.04.0$50$1002.51.31.31.91.51.02.0$0FY 2014 FY 2015 FY 2016 FY 20170.0FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Gross Debt (net of discount) Net Debt (net of discoun
Slide 25: TTM + Anaren: Strengthened Financial Profile
TTM + Anaren: Strengthened Financial ProfileueTTM Anaren TTM + Anaren$2 095$2,533 $2,659193$2,270 234$2,727 $2,892Revenu2,095FY2015 FY2016 FY2017$175 $193 $234CY2015 CY2016 CY20172,095 2,533 2,659175CY2015 CY2016 CY2017Non-GAAP11.1%(2)Non-GAAPOperating Income(1)$146$222 $256$33 $37 $527.0% 8.8% 9.6%
Slide 26: Proven Ability to Integrate Acquisitions
Proven Ability to Integrate AcquisitionsTTM TechnologiesHistorical acquisitions, strategic rationale & synergies achieved• Closed 6/1/15• Purchase price: $927mm• Successfully achieved $55mm of synergies• Gain entry into attractive new automotive market• Complementary positions in other end markets b
Slide 27: Integration Execution
Integration Execution$ FY2014 (Pre-VIAS Acquisition) Now(1)Enterprise Valuein millionsexcept where specified$1.0bn  $1.5bn $2.5bnAerospace and Defense16%A t tiOther3%Revenue 2014 $1,326  $1.3bn 2017 $1,326 $2,659G tFY14 Revenue Breakdown FY17 Revenue BreakdownAerospace and Defense16%N t ki COt
Slide 28: Potential for Cost Savings
Potential for Cost SavingsExpect to Achieve $15 million in Run-Rate Synergies within Two Years after ClosingKey Areas of Cost Rationalization:ï,— Production alignmentï,— Supplier spendï,— Staff savingsï,— Infrastructure and support costs28
Slide 29: TTM's Financial Policy
TTM’s Financial Policy• Anticipated to have sizeable liquidity at closing, consisting of:TTM’s Financial Policy Overview• $250 million of anticipated availability under the revolving credit facilities inUnited States and Asia Pacific• ~$200 million of cashMaintain a strongliquidity profile• Prioriti
Slide 30: Syndication Overview
Syndication Overview30
Slide 31: Financing Projected Timetable
Financing Projected Timetable February 2018 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Key Date Holiday Timetable Details Date Event February 8th Term Loan investor call invite posted February 9th Term Loan launch via lender call February 16th Commitment
Slide 32: Summary Terms of Incremental Term Loan B
Summary Terms of Incremental Term Loan BIndicative summary terms and conditionsBorrower: TTM Technologies, Inc.Bookrunners: BarclaysFacility: $300 million fungible incremental Term Loan B (PF size $649 million)Maturity: Same as existing: September 28, 2024Amortization: 1% per annum, payable quarterl
Slide 33: Legal Organizational Structure
Legal Organizational Structure• Existing $200mmABL Revolver• Existing $250mmUnsecuredTTM TECHNOLOGIES, INC.Convertible Notes• Existing $350mmTerm Loan B• NEW $300mmfungible Add-onTerm Loan B• Existing $375mm Sr.U dDbtTTM PRINTEDCIRCUIT GROUP TTMT NORTHUnsecured Debt• NEW $300mm Sr.Unsecured DebtGROU
Slide 34: Appendix
Appendix34
Slide 35: TTM Operating Income and EBITDA Reconciliation
TTM Operating Income and EBITDA Reconciliation$ Milli ( t h t d) Millions except where noted) FY2013 FY2014 FY2015 FY2016 FY2017GAAP Gross Profit $217.8 $194.7 $310.1 $423.6 $429.6Add back item:Inventory markup — 16.2 —Stock-based compensation 1.1 0.9 1.1 1.6 2.3Non-GAAP Gross Profit 218.9 195.6 327
Slide 36: Anaren Operating Income and EBITDA Reconciliation
Anaren Operating Income and EBITDA Reconciliation($ in millions) CY2015A CY2016A LTM 9/30/17 CY2017AReported Operating Income $6.7 $14.1 $25.5 $32.4Stock based compensation 0.8 0.7 0.7 0.7Sponsor fee 1.3 1.3 1.4 1.4Debt related fees 0.3 0.3 0.3 0.3Non-recurring g professional fees 1.3 1.0 0.6 0.4Ter
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