Intest Corporation · AMEX:INTT
Intest — Investor Day (March 2022)
102 slides from Intest's investor day presentation, Mar 24, 2022
Slide 1: Transforming inTEST
Transforming inTEST 2022 Investor and Analyst Day March 24, 2022
Slide 2: Forward-Looking Statements
ForwardLookng Statements intest EDO Ths pesttatn meeesewatoong steers wth he meaning ofthe Pate Secu Legaten Re Act 185, as arned, These statements do nl cnsey heal main bettie to pesca of peer ae mers nd tncal ess. Suh as Statements fou Hans. sateges and terns of autre prance or el, tht base von ma
Slide 3: inTEST 2022 Investor Day agenda
inTEST 2022 Investor Day inrest WEDS > Introduction and Safe Harbor - Deborah Pawlowski > Transforming inTEST - Nick Grant > Electronic Test - Joe MeManus > Environmental Technologies - Gregory Martel > Process Technologies - Scott Nolen > Break > Making M&A a Core Competency - Rich Rogoff > Driving
Slide 4: Leadership Driving Change
Leadership Driving Change DuncanGilmour Rich Rogoft ‘MeghanBlount CEO (CFO and Treasurer Vice President Vice President Corporate Development Human Resources =) lay a v4 ‘ Division President Division President VP end GM Process Technologies Electronic Test Environmental Technologies
Slide 5: Transforming inTEST
Transforming inTEST Nick Grant, CEO ABB 6 AMETEK Leveraging engineering expertise, customer relationships and EMERSON strong leadership team to drive growth and change
Slide 6: Unlocking The Potential
Unlocking The Potential intest YDS Transforming inTEST Vision Mission Leverage our deep industry knowledge & expertise to develop and deliver high quality, innovative customer solutions ‘and superior support for complex global challenges To be the supplier of choice for innovative test and process t
Slide 7: Transforming inTEST
Transforming inTEST Legacy inTEST rer | Emphasis on thermal markets with infrequent acquisitions Infrequent investor interaction and ‘communications Siloed employee communications (73) Conservative, risk-averse culture (a) New inTEST
Slide 8: Strong Foundation For Growth
Strong Foundation For Growth intest PODS inTEST: Known for Highly-Engineered, Customer-Driven Solutions i 7 3 Growing and Diversified Markets > Semiconductor > Industrial > Automotive/EV > Defense/Aerospace > Life Sciences > Security Blue-Chip Global Customer Base WRiknons _/ EMERSON wenn Alcon ‘ Ra
Slide 9: Commitment to Long-Term Value Creation
Commitment to Long-Term Value Creation _ intest >a Key Elements To Our Transformation & A ac Strong Foundation New Leadership Robust 5-Point Strategy Hey og New Organizational Acquisitions Structure Energized Workforce
Slide 10: Strong Execution of Strategic Plan
Strong Execution of Strategic Plan Excellentprogressin Year One (Sin mis, xcept pe share ata) 2020 2021 Strong Results Driven B) Revenue 353.8 $84.9 [i uartet share gains Net E $10.9) 7.3 om HO) 2 § ‘New customers in both Semi and Other ‘Ad, EBITDA Margin’ 25% 14.2% fo Target Markets: EPS (car) (0.0
Slide 11: Reorganizing To Drive Growth
Reorganizing To Drive Growth intest DDS Legacy inTEST > New inTEST Thermal EMs Environmental Process ‘Segment ‘Segment Sano CE Technologies Technologies SD Ira EMS Products SAmbrell EMS Products
Slide 12: New Structure Enables Higher Growth
New Structure Enables Higher Growth intest DDS Focus drives accountability and results 2021 Revenue $85M* Electronic Test 38% Technology aligned structure promotes collaboration; enables broader customer solutions yo Se Tacetogies 22% Leveraged management team provides cost efficiencies and consiste
Slide 13: Expanding our Served Markets
Expanding our Served Markets intest YDS Legacy inTEST New inTEST End of 2020 Entering 2022 Serviceable Addressable Markets (SAM) Serviceable Addressable Markets (SAM) ei. | sae am Se coma ma | | Skea ure, se Se Solitons Sottions “SAM boson arable indy da and Company estates
Slide 14: Driving Market Leadership/Opportunities
Driving Market Leadership/Opportunities —=™st -YD8S Targeting markets with strong, secular tailwinds - Expected 5-¥ | TEST Revenue by Market’ Markets Market Growth" Served Semi Markets, SE ROR Industrial 3% to 6% Defense/Aero 3% to 6% 202) ae 20nr. Targeted Growth Markets AutolEV 5% to 8% Life Scien
Slide 15: 5-Point Strategy Drives Long-Term Value
5-Point Strategy Drives Long-Term Value intEST Global & Market Expansion Innovation & Differentiation Strategic Acquisitions Service & & Support Partnerships Talent & Culture
Slide 16: 5-Point Strategy: Global & Market Expansion
5-Point Strategy Drives Long-Term Value Global & Market Expansion Innovation & Differentiation Strateg Acquisitions &! Partnerships Service & ‘Support @ row Top-Line Through Geographic and Market Expansion Further penetrate existing markets with infrastructure investments Expand into new markets wit
Slide 17: Year One Successes
Year One Successes Global & Market Expansion Key Front-End Sales Investments Channel Partner Expansion Expand Into New markets New OEM Programs Geographic Expansion ll
Slide 18: 5-Point Strategy: Innovation & Differentiation
5-Point Strategy Drives Long-Term Value intest PODS Innovation & Differentiation Di e Innovation and Technological Differentiation Leverage expertise to deliver highly-valued solutions Headcount investments to support product development Reorganize engineering organization to optimize development Dr
Slide 19: Year One Successes
Year One Successes intest YDS Drive Innovation & Differentiation Compact EKOHEAT’s and Workheads @) Standardizing Chiller Portfolio NextGen ECO ThermoStream® | Automated LS-Series Manipulators Expansion High-Powered Interface Solution (Lightning) |
Slide 20: 5-Point Strategy: Service & Support
5-Point Strategy Drives Long-Term Value intest PODS > Expand geographic service coverage, infrastructure and repair/calibration centers > Drive enhanced service offerings including third party agreements, extended warranties, preventative maintenance and calibration > Expand remote services asset he
Slide 21: Year One Successes
Year One Successes intest YDS Enhance Service & Support
Slide 22: 5-Point Strategy: Talent & Culture
5-Point Strategy Drives Long-Term Value —_==st /9S9S Innovation & Differentiation Partnerships Talent & Culture (4) Foster New Culture and Talent: Changes driven from top executive leadership > Emphasize openness, results and accountability > Drive diversity, engagement and career development > Leve
Slide 23: Year One Successes
Year One Successes intest DDS Foster New Culture & Talent
Slide 24: 5-Point Strategy: Acquisitions & Partnerships
5-Point Strategy Drives Long-Term Value —_==st /9S9S ae Innovation & pee Differentiation Expansion Strategic Acquisitions & Partnerships (s} Pursue Strategic Acquisitions and Partnerships: Pursue higher frequency of deals Key M&A Criteria: + Expand into faster markets + Offera broader portfolio of s
Slide 25: Year One Wins
Year One Wins Pursue Acquisitions and Partnerships PY VIDEOLOGY 2cionees Co. > Innovative ultra-cold storage > Penetrates attractive adjacent technology market + Buy vs. Make decision + Securtyimage capture » Product line expansion in Life > Expands Life Sciences and Industrial Sciences markets offe
Slide 26: Strong Foundation and 2025 Targets
Strong Foundation: > Highly-valued solutions > Growing and diversified markets > Global blue-chip customers and presence > Strong margins, cash flow and balance sheet 2025 Targets: New leadership > $200 to $250M Revenue* Robust 5-Point Strategy (ARB. (=) > Maintain Strong Margins Recent acquisitions
Slide 27: Electronic Test
Electronic Test Joe McManus, Division President ; >> >> CECO ™URA Reducing the cost of high-quality test
Slide 28: Electronic Test
Electronic Test intest PODS Engineering solutions for the toughest challenges in automated test Manufacturing in New Jersey, Electronic Test - 2021 Revenue Canada and Germany 4 of NTEST! % of Division Dy ewes Global presence with engineering/salesiservice in Asia, Europe and North America Over 90 em
Slide 29: Market Diversification
Market Diversification Expanding beyond Semiconductor Baseline: 2020 20226 inTesT 2025E* = Semi = Industrial ™ AutolEV >> > 4 ' Life Sciences = Defense/Aero Other
Slide 30: Our Engineers are the Difference
intestT DDO Our Engineers are the Difference > Engineering expertise unmatched by our competitors > Combined experience in test industry of over 450 years » Extremely strong engineering level customer relationships > Strong reputation
Slide 31: Semiconductor Test
intest DDS Semiconductor Test >» Enable testers to work with virtually all andlers/probers Established in 1981 with first to market patented technology > Recently introduced industry's first fully-automated manipulator > Most highly integrated docking solutions with ‘complete factory automation feed
Slide 32: Printed Circuit Board Testing
intest DDS ce Printed Circuit = 7 Board Testing = > Dual-sided flexible angle probing for the industry's best board coverage + Foundedin 1992 based on integrated circuit board testing and added fying probe technology in 2008 + ATEsusedin both productdevelopmentand high-volume production + Up to 22 p
Slide 33: EV/Battery
intest DDS EV/Battery > Automated battery interconnect verification for ‘multiple sized batteries + Testing EV batteries since 2015 + Optical system maps test points Patented multi-point battery testing for maximum throughput > Partnering with industry leaders to expand beyond continuity verificatio
Slide 34: Strategic Progress: Year One
Strategic Progress: Year One Developed multi-year market driven product, roadmap > Grew new product sales 20%+ * Continued adoption of Automated LS-series Manipulators and Intelligent Docking Systems + Launched High Power Interface (Lightning) + NextGen High-Frequency UHD Radar Interfa + Developedne
Slide 35: Expanding Addressable Markets
Expanding Addressable Markets Creating Larger Opportunity Set* > Aggressive technology roadmap for current Significant progress in Year One (Siemon) 2022 ~$350 ~$150 ~$120 2020 Market Acculogic Expansion Acquisition “Sovce: Indy eutmate ard Campy docmects intest DDS and new products > Expand Tier 1
Slide 36: Key Take-Aways
Key Take-Aways intest PODS fi Nearly tripled serviceable addressable market with Acculogic acquisition 448 Diversification into Printed Circuit Board and rapidly expanding EV/battery market =% Leading the automation of the test floor 4p Partnering with key customers to solve their most challenging t
Slide 37: Environmental Technologies
Environmental Technologies Greg Martel, Vice President and GM inTEST Corporation Delivering differentiated solutions for environmental test, process and storage
Slide 38: Environmental Technologies
Environmental Technologies intest SDDS Creating and controlling environmental conditions in test, process and storage applications Manufacturing in Mansfield, MA Environmental Technologies - 2021 Revenue % ofinTEST! % of Division Global presence with sales/engineering offices in Germany and Singapor
Slide 39: Environmental Responsibility
Environmental Responsibility Ourcomprehensive capabilities set us apart Low Impact Refrigerants » Products below EU F-Gas limits > EPA rated natural refrigerants > Cryogenic systems using zero refrigerants, chemical/physics-based heat transfer Low Power Consumption Air streaming systems with lowest
Slide 40: Target Markets With Tailwinds
Target Markets With Tailwinds intestT ODDS Bom in semiconductor, broadened to diversified markets 2025E" 20226" Baseline: 2020 = Semi m Life Sciences = Industrial m Defense/Aero m AutolEV Other “Erctaes ttre sequstons
Slide 41: Semiconductor
intest DDS Semiconductor » Strong market trends ‘+ 5G, loT, High-power devices (SIC, GaN) > Amarket leader in portable thermal solutions for Semi lab space since 1971 > Applications + RED + Failure Analysis + AcceleratedLife Testing ‘+ Thermal Characterization ENVIRONMENTAL SYSTEMS THAT ARE BUILDING
Slide 42: Life Sciences
intest ODDS Life Sciences > Strong market trends + mRNA vaccine development ‘+ Medical advancements (Biobanking) ‘+ Mainstream acceptance of cannabis > Applications + -86.0°C Vaccine Storage + ULTCold Transport + Bio-Sample Storage: + CBD & THC Cannabis Extraction > Highest capacity portable liquid
Slide 43: Defense/Aerospace
intestT ODDS Defense/Aerospace Strong market trends ‘+ Satelites, Space Exploration, Defense Systems > Highly engineered portable solutions + Wide temperature ranges Rapid change rates with high precision > ISOJITAR Registered > Applications + Avionics Test + Guidance System Test +S + Fuel Cooling C
Slide 44: Strategic Progress: Year One
Strategic Progress: Year One Positioned for aggressive growth @) @) Global & Market Expansion ‘Added Asia sales manager Dedicated chiller sales manager 4 new international channel partners added Developing standard chillers to expand SAM Initial penetration of two new Cannabis extraction OEMs Innova
Slide 45: Expanding Addressable Markets
Expanding Addressable Markets intest DDS Significant progress in Year One (emitors) 2022 ~$700 ~$200 ~$150 2020 Market Expansion Z-Sciences Acquisition “Sovce: Indy eutmate ard Campy docmects Enlarging SAM for Growth* > Standardizing products to expand addressable markets * Launched four new standar
Slide 46: Key Take-Aways
Key Take-Aways intest PODS p a 52) ge ey <£ Diversification into high-growth Life Sciences market more than triples SAM Standardizing chiller products expands addressable market Wide range of thermal and controls technologies; strong IP Focus on responsibly solving environmental control challenges
Slide 47: Process Technologies
Process Technologies Scott Nolen, Division President +> Ss cman aa Technical expertise and customized solutions for industrial applications
Slide 48: Process Technologies
Process Technologies intest ODDS Technical expertise and customized solutions for industrial applications Region » 14 Sales Managers in North America and Europe » 12 Indirect Global Sales/Service Partners > 6 Solutions/Demonstrations LABS ‘OVER 17,000 INDUCTION HEATING SYSTEMS INSTALLED IN MORE THAN
Slide 49: Environmental Benefits
intest ODDS Environmental Benefits » Induction heating only uses: » Camera systems provide safer electricity more efficient roadways + No CO, or hazardous emissions + Reduce traffic signal wait times produced + Cross walk sensors adjust based + High Effcioney... Converts 70% to ‘on pedestian ype 90%
Slide 50: Diverse Array of Target Markets
Diverse Array of Target Markets intest PODS Process technologies servesa diverse set of markets “9 20256 2022E* 2020 = Semi Defense/Aero = Industrial Security ™ AUtolEV Other ™ Life Sciences Excludes future acauistions
Slide 51: EV/Automotive
intest DDS EV/Automotive > Rapidly growing market opportunity > Over 25 auto applications > Expertise in EV manufacturing applications > Continuous development for new applications to serve EV customers INOUCTION _—ELECTTUC VEMNCLE camera APPLICATIONS —“TAPRLICATIONS APPLICATIONS
Slide 52: Aerospace
Brazing of fre and intest DDS Aerospace > Recovering industry + Build rates improving as commercial jr travel increases, > Aircraft industry pushing cutting- ‘edge technology + Driving efficienciesin aircraft > Quality, consistency & reliability mandatory ‘+ Highly regulated industry
Slide 53: Life Sciences
intest DDS Life Sciences v Rapidly Growing Market ‘+ Advancing technologyin robotics surgery + Many singleuse systems + Demographics driving growth in medi technologies y ‘Solutions for Multiple Applications + Catheter manufacturing + Orthoscopiccameras + Medicaltool manufacturing + Nanoparticle hea
Slide 54: Security
intrest ODDS Security » Growth Driven by Digitization, Artificial Intelligence and Automation + Almakes images high value data + Demanding specifications ‘+ Require high resolutionin low light + OEMs require long productlife > Multiple Applications + IDBadging + Facial recognition + ATM Security + L
Slide 55: Expanding Addressable Markets
Expanding Addressable Markets Significant progress in Year One (sn mions) 2022 ~$1,350 ~$330 ~$300 2020 Market Expansion Videology ‘Acquisition “ce Vente Maret Reseweh 2020 intest DDS Significant Growth Through Acquisition > Videology significantly increases SAM* > Imaging market CAGR estimated at ~
Slide 56: Strategic Progress: Year One
Strategic Progress: Year One intestT ODDS Positioned for aggressive growth » Added sales footprint into Mexico > Acquired Videology » Added Direct Sales into USA Gulf Coast + Triples SAM ia + Rapidly growing market New Sales Partner in Italy and South Africa BING Eusiness proclcos vl crive growth »
Slide 57: Key Take-Aways
Key Take-Aways intest PODS ff Serving large, diverse and growing markets 45 Supplier of highly-valued solutions addressing customers’ complex applications 52. Strong product roadmap with significant new product introductions in 2022 YP Business is designed to scale globally
Slide 58: Making M&A a Core Competency
Making M&A a Core Competency Richard Rogoff, Vice President, Corporate Development onto ASML RUDOLPH Making M&A a core competency
Slide 59: Why M&A for inTEST Now?
Why M&A for inTEST Now? intestT SDDS in TEST Is Well Positioned For Inorganic Growth GG stable of core technologies/competencies applicable to multiple markets Strong balance sheet with access to capital ag New management > Extensive M&A experience; strategic buyer > Focus on growth and execution a]
Slide 60: Making M&A a Core Competency
Making M&A a Core Competency M&A Eco-System Acquire quality to drive shareholder value Strategy Development Defining/developing partners that strengthen our strategy MBA Pipeline Banking Relationships Strategic Partnerships, Maa Execution core competency creates exposureto ‘opportunities Expand into
Slide 61: M&A PlayBook
M&A PlayBook Governance Process Tools Engagement Due Diligence Dashboard Integration Dashboard intestT SDDS Comprehensive Valuation Guidelines Strong strategic fit with quantifiable and achievable synergies Solid Management team that will stay with the company post deal Good cultural fit (ethical, r
Slide 62: M&A in 2021 — A Successful Start
M&A in 2021 — A Successful Start intest PODS VIDEOLOGY PA _ ES IMAGING SOLUTIONS INC. ACCULOGIC Acquired 10-7-21 ‘Acquired 10-28-24 Acquired 12-21-24 Re-branded North Sciences Integration on target Integration on target Integration complete Market expansion: Life Sciences Large market potential Dive
Slide 63: A Growing Pipeline of Targets
A Growing Pipeline of Targets intest ODDS Approximately 30 companiesin pipeline at 12/31/2021 Target Pipeline by Division Pipeline by Source Electronic Test Enviromental __ Process mBankers Advisors a Internal Technologies Technologies . zs me mRejected Promising mPursuing
Slide 64: Focused Process in Target Markets and Technologies
Focused Process in Target Markets and intestT SDDS Technologies Environmental Process Technologi Technologies ‘Temperature Heat Processing be ‘a Automation Altitude Fe Process Control oe In-circuit Testing Vibration Image Capture Functional Testin Humic sechnologies, 2 a Image Processing Salt Automo
Slide 65: OEM Partnerships: Not Just Acquisitions
OEM Partnerships: Not Just Acquisitions "tt »YS9S OEMPrivate Label Partnerships > Market expansion > Expands revenue opportunities fs svrechnology Partnerships, Partnerships > Access to technology expands/enhances our solutions > Evaluate long-term fit for product and company > Minimizes risk PARTNE
Slide 66: Key Take-Aways
Key Take-Aways intest PODS §f Completed three acquisitions in 2021 43, DisciplinedM&A process in place from investigation to integration 52 Focus on expanding technologies and markets served ? Building a strong M&A eco-system 4s@° Open to partnerships as well as acquisit fe Enhance financial profile
Slide 67: Driving Financial Success
Driving Financial Success Duncan Gilmour, CFO and Treasurer ABB tyco
Slide 68: Financial Priorities
Financial Priorities: intest PODS Creating Long-Term Value Cy 45 v - Allocate capital to optimize execution of 5-Point Strategy Accelerate revenue growth by expanding share and SAM Pursue strategic acquisitions Maintain strong margins & cash flow with increasing operating leverage Manage balance she
Slide 69: 2021 Results: Executing 5-Point Strategy
2021 Results: Executing 5-Point Strategy = =tst ) 9D Full Year 2021 Fin: Highlights Adjusted EPS (Non- Grew revenue 58% to $85M. GAAP)! increased from $0.03 to $0.81 Adjusted EBITDA margin (Non-GAAP)' up over 5X to 14.2% Improved capital structure by leveraging balance sheet O@O® ‘gush Ewing aanashr
Slide 70: Revenue Grew 58% in 2021
Revenue Grew 58% in 2021 intestT ODDS (Sr) Strong Revenue Growth Driven By: $24.9 TTaking market share with renewed emphasis, YD investments and new leadership Strong Semi market in both front-end and YD back-end; also strong automotive/EV > New product introductions > Expanded customer base 2020 20
Slide 71: Strong Margin Business
Strong Margin Business intestT ODDS Costs as a% of Revenue 3 Key Metrics 2020 © 2021 —~ we Gross Margin 45% 49% Neco @) & Division Operating Expenses (92%) (26%) Division operating Margint 19% 23% Division Operating Incomet 43% ©—=«23m%4 ©—=—Coorate GBA Restructuring (19%) (11%) Intangible Amortizat
Slide 72: Enhanced Capital Structure
Enhanced Capital Structure (seas) Cash Flow 2020 2021 Net cash provided by operating activities (GAAP) $3.2 $108 Capital expenditures. $0.7 $1.0 . Free cash flow (FCF) (Non-GAAP) ae 28 Capitalization 42/34/2020 12/34/2021 Cash and cash equivalents $10.3 $21.2 Total Debt - $20.1 ‘Shareholders’ equity
Slide 73: Financial Guidance and Outlook
Financial Guidance and Outlook > Revenue: $23 million to $25 million > EPS (GAAP): $0.04 - $0.09 > Adjusted EPS (Non-GAAP): $0.10 - $0.15 First Quarter 2022 Guidance > Revenue: $110 million to $115 million > 2022 gross margin: 46% to 49% > Operating expenses: $10.5 million to $11.2 million per quart
Slide 74: Strategic Plan Focused on Long-Term Revenue Growth
Strategic Plan Focused on intestT ODDS Long-Term Revenue Growth Srmors) ~$200 to $250E Future _ Acquisitions ~$110 to $115E $85 2020 2021 2022 2025
Slide 75: Operating Leverage Drives Profitability
Operating Leverage Drives Profitability intestT SDDS _ Divison Operating income’ Adjusted EBITDA’ S40+E $30+E $20+E si8 $12 E : : : 5 23% ci 14% 10%] =| — ($1) VA ‘snows Su toe carta De nee ee estat a
Slide 76: Multiple Expansion Opportunity
Multiple Expansion Opportunity intestT SDDS EV / Forward Revenue EV / Forward EBITDA 15.9 32 14.2 2.0 97 : ] L YE 2021 YE 2021 = inTEST Corporation = Semi Peers Median = Industrial Peers Median
Slide 77: Key Take-Aways
Key Take-Aways intest PODS We Have the Strategy and Financial Flexibility to Substantially Increase Shareholder Value Over the Next 5 Years Operational > Strong foundation > New leadership and organizational structure > Robust 5-Point Strategy > Competing in growing and diversified markets Financial
Slide 78: Deliver On The Vision
Deliver On The Vision Nick Grant, CEO >> ABB 6 AMETEK Leveraging engineering expertise, customer relationships and EMERSON strong leadership team to drive growth and change
Slide 79: Unlocking The Potential
Unlocking The Potential intestT ODDS Transforming inTEST G Vision Mission Leverage our deep industry knowledge & expertise to develop and deliver high quality, innovative customer solutions ‘and superior support for complex global challenges To be the supplier of choice for innovative test and proce
Slide 80: Strong Foundation For Growth
Strong Foundation For Growth intest PODS inTEST was Known for Highly-Engineered, Customer-Driven Solutions i 7 3 Growing and Diversified Markets > Semiconductor > Industrial > Automotive/EV > Defense/Aerospace > Life Sciences > Security Blue-Chip Global Customer Base WRiknons _/ EMERSON wenn Alcon ‘
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