Ichor Holdings · NASDAQ:ICHR
Ichor — Investor Presentation (March 2023)
20 slides from Ichor's investor presentation, Mar 6, 2023
Slide 1: Investor Presentation Q1 Update
Investor Presentation Q1 Update March 6, 2023 Proprietary
Slide 2: Forward-Looking Statements, Non-GAAP Financials and COVID-19
Forward-Looking Statements, Non-GAAP Financials and COVID-19 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,
Slide 3: Ichor Overview
Ichor Overview World’s Leading Provider of Critical Fluid Delivery Subsystems for Semiconductor Capital Equipment Gas and chemical delivery subsystems are key Gas Delivery Chemical Delivery elements of process tools used in the manufacturing Subsystems Subsystems of semiconductor devices Over 20
Slide 4: Investment Highlights
Investment Highlights Combining Revenue Growth and Increasing Profitability to Drive Earnings Leverage and Free Cash Flow Revenue growth outperforming the industry... Since 2015, Ichor’s revenue growth has outpaced the industry by 50% (7-year CAGR of 24% compared to WFE annual growth rate of 16%)(
Slide 5: Revenue Growth Outperforming WFE and Primary Process Tool SAM
Revenue Growth Outperforming WFE and Primary Process Tool SAM WFE(1) Dry Etch & CVD(2) Ichor Revenue(3) WFE in $B Primary SAM in $B Ichor Revenues ($M) $94 $1,280 $87 $34 $83 $32 $1,119 $1,097 $77 $946 $27 $914 $60 $24 $824 $55 $22 $50 $20 $48 $19 $656 $621 $17 $36 $32 $12 $406 $11 $291 2015 2016 20
Slide 6: Key Technology Transitions Driving Growth in Ichor SAM
Key Technology Transitions Driving Growth in Ichor SAM WFE Intensity Increasing(1) Etch and Deposition Intensity Increasing(2) EUV Ramping(3) WFE as % of Semi. Rev. 2.50 3D NAND SAM DRAM SAM Foundry/Logic SAM EUV Est. Sales ($B) 16% $12 15% 2.00 $10 14% 1.50 $8 13% 12% $6 1.00 11% $4 10% 0.50 $2 9%
Slide 7: Served Available Market Estimated at Over $7B
Served Available Market Estimated at Over $7B Established Position Opportunity Served Markets and Market Opportunity (Semi) Chemical Delivery Sub-Assembly Customer Gas Delivery Precision Machining Other Components (including LDM) (Weldments) ($1.8B) ($0.8B) ($1.3B pre-IMG) ($0.8B pre-IMG) ($0.2B) IM
Slide 8: 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 9: Growing Share of Semiconductor System Sales & WFE
Growing Share of Semiconductor System Sales & WFE ~65% of WFE Requires Fluid Delivery Subsystems & Components Ichor's Expanding Share(1) 3.5% Multiple Drivers for Increasing Share of 3.2% Industry Revenues 3.0% Industry Trends 2.7% Increasing trend toward outsourcing 2.5% 2.2% Increasing impor
Slide 10: Key Financial Strategies
Key Financial Strategies Outgrow the Industry Drive Gross Margin Improvement Focus on semi: next-generation device nodes Grow share in higher-margin require more fluid delivery components businesses e.g., Weldments and Precision Machining Levered to etch, deposition and EUV Increase content of propr
Slide 11: After a Record 2022, Demand Environment Slowing Into 2023
After a Record 2022, Demand Environment Slowing Into 2023 Executed Significant Revenue Ramp TTM Revenue and GM Trend Revenues more than doubled from 2019 to 2022 $1,280 $1,212 27% 3-yr CAGR 2019-2022 $1,200 18% 47% growth in 2020; 20% growth in 2021; 17% growth in 2022 $1,097 17% Deliverin
Slide 12: Target Model with Significant Operating Leverage
Target Model with Significant Operating Leverage (1) See appendix at the end of this document for reconciliations of Non-GAAP metrics. Proprietary 12
Slide 13: Conclusion
Conclusion Industry-Leading Execution of Strategic Objectives Business Objectives Financial Objectives Expanding Share at Top Semi Cap Customers Revenue Growth Outpacing Industry Expanding Product Offerings and Strong Profitability Through Industry IP Content Cycles Financial Model with Oper
Slide 14: Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
Appendix Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit Proprietary 14
Slide 15: Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
Appendix Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses Proprietary 15
Slide 16: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Appendix Reconciliation of GAAP Operating Income to Non-GAAP Operating Income Proprietary 16
Slide 17: Reconciliation of GAAP Income Tax Expense to Non-GAAP
Appendix Reconciliation of GAAP Income Tax Expense to Non-GAAP Income Tax Expense Proprietary 17
Slide 18: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Appendix Reconciliation of GAAP Net Income to Non-GAAP Net Income Proprietary 18
Slide 19: Reconciliation of Non-GAAP Net Income to EBITDA
Appendix Reconciliation of Non-GAAP Net Income to EBITDA Proprietary 19
Slide 20: NASDAQ: ICHR
NASDAQ: ICHR Proprietary 20