Ttm Technologies, Inc. · NASDAQ:TTMI
Ttm Technologies — Investor Day (May 2008)
41 slides from Ttm Technologies's investor day presentation, May 22, 2008
Slide 1: TTM Technologies, Inc. 2008 Analyst Day
TTM Technologies, Inc. 2008 Analyst Day The Roosevelt Hotel Thursday, May 22, 2008
Slide 2: TTM and Industry Overview
Kent Alder - Chief Executive Officer and President TTM and Industry Overview This presentation contains forward-looking statements that relate to future events or performance. These statements reflect the company's current expectations, and the company does not undertake to update or revise these fo
Slide 3: Company Overview
July 1999 Acquired Power Circuits for $98 mm. Transaction financed with debt, resulting in pro forma leverage of $133 mm (4.7x LTM EBITDA) December 1999 Changed name to TTM Technologies February 2002 $53.6 mm secondary offering December 2002 Acquired Honeywell ACI for $1.00 September 2003 $151.8 mm
Slide 4: Facility Footprint
1 Stafford, CT 3 San Diego, CA Aerospace/Defense: Quick Turn: 5 Los Angeles, CA High Tech: 6 Chippewa Falls, WI High Mix: 2 Santa Clara, CA Santa Ana, CA 10 1 5 7 2 4 6 9 The facility footprint enables TTM to continue to execute its facility specialization strategy Facility Footprint Focused Assembl
Slide 5: PCB Market Forecast
PCB Market Forecast The $47.9 billion global PCB market is projected to grow at 5.0% through 2012 The $4.7 billion Americas PCB segment represents approximately 10% of the global market Global PCB Market Forecast Americas PCB Market Forecast Global PCB End-Market Analysis End-Market Growth 2007-2012
Slide 6: Global PCB Competitive Landscape
Low (< 100) Medium (100 < 1,000) High (> 1,000) Global PCB Competitive Landscape Technology Level Panel Volume (lots) 9-15 layers, standard materials 16+ layers, exotic materials Asian focus 0-8 layers, standard materials TTM competitive markets Specialized communications High-end aerospace / defens
Slide 7: Recent Trends - Industry
Recent Trends - Industry Aerospace/Defense: Remains strong Quick Turn: Solid Networking/Communications: Solid High end computing: Steady High Mix: Steady Raw material pricing: Steady Technology: Continued growth in sequential lamination & HDI requirements Pricing: Steady
Slide 8: TTM's Strategy
TTM's Strategy Financial Strength Focus on operational excellence Superior asset management and strong balance sheet Successful integration of opportunistic acquisitions Aerospace / Defense #1 North America Supplier Rigid Flex and speciality PCB products Backplane and Subassembly Time Dedicated ultr
Slide 9: Customer & Market Overview
Customer & Market Overview Doug Soder - Executive Vice President
Slide 10: North American PCB Market Overview
North American PCB Market Overview The $3.9 billion North American PCB market is highly fragmented Fragmented North American Market North American Market Share Analysis Source: FabFile Online 309 44 36 5 Total: 394 PCB Companies > $100mm $20 to $99mm $10 to $19mm $0 to $9mm TTM is the largest PCB co
Slide 11: U.S. Aerospace/Defense PCB Market
U.S. Aerospace/Defense PCB Market Source: Annual sales data from Harvey Miller FabFile 2008 1 Company: $100+ Million 15 Companies: $10 - $19 Million Total: 101 Aerospace / Defense Companies 26% of North American PCB Companies service the Aerospace / Defense market 77 Companies: Under $10 Million 8 C
Slide 12: TTM Global Selling Force
TTM Global Selling Force 153 Total Selling Assets 56 Direct Sales Personnel 43 Independent Manufacturing Rep Firms 46 Technical Sales Support Personnel 8 Design Services Personnel Structure Facilitates Global Focus on General & Strategic Customers Across All Lines of Business Regional Sales Teams OE
Slide 13: Key Customers by End Market
Key Customers by End Market TTM serves approximately 900 active customers across a broad range of end-markets Networking / Communications Medical / Industrial / Instrumentation / Other Enterprise routers and switches Wireless base stations and cell phones Semiconductor technology for broadband commu
Slide 14: Networking & Communications Landscape
Networking & Communications Landscape Networking Low Cost Region High Cost Region Layer 2 Switching Layer 3 Switching Edge Routing Core Routing Communications Low Cost Region High Cost Region Cell Phones Handhelds Fiber to the Home Wire Line Infrastructure Optical Switching Triple Play Switching Wir
Slide 15: Computing/Storage/Peripherals Landscape
Computing/Storage/Peripherals Landscape Computing/Storage/Peripherals Low Cost Region High Cost Region Super Computing High End Servers & Blades Consumer Products Low/Mid Range Storage Mainframe Computing PCs Desktop Computing Low/Mid Range Servers & Blades Computer Peripherals Silicon Validation
Slide 16: Medical/Industrial/Instrumentation Landscape
Medical/Industrial/Instrumentation Landscape Large and Disaggregated Customer Set Over 400 Active Customers in 2007 Average Annual Revenue Per Customer in 2007 was approximately $200K Only 4 Customers Exceeded Revenue of $1.0 Million in Q1 2008 TTM Competitive Strengths for these Customers Include:
Slide 17: Long-Term Customer Relationships with Industry Leaders
Long-Term Customer Relationships with Industry Leaders TTM maintains deep, long-term customer relationships with minimal concentration risk No customer accounted for more than 8% of 2007 revenues Average Top 10 Customer relationship: 19+ years
Slide 18: Operations Overview
Operations Overview Shane Whiteside - Chief Operating Officer
Slide 19: PCB Manufacturing Overview
PCB Manufacturing Overview #1 North American PCB Manufacturer Leader in U.S. aerospace/defense market Broadest offering of technology Market leader in quick-turn One stop solution for prototype through production Specialized facilities
Slide 20: Manufacturing Models
Manufacturing Models Part Number "A" Volume Production High Mix / Low Volume QTA / Prototype Model Capital Utilization Setups/ Changeovers Human Capital Required Tooling Capacity Focus Volume High Low Low Low Materials Cost High Mix Medium High High Medium Fixed Cost Absorption QTA Low High High Hig
Slide 21: Printed Circuit Board Products
Printed Circuit Board Products Rigid-Flex PCBs High Density Interconnect (HDI) PCBs Backplane PCBs RF PCBs
Slide 22: Backplane Assembly Overview
Backplane Assembly Overview Leading Market Positions in North America and China Limited Competition with EMS Companies Product & Service Offering Includes: Backplane & Chassis Assemblies Rigid-Flex Assemblies System Design & Simulation Services Strategic Rationale Strengthens TTM Supplier Status wit
Slide 23: Backplane Assembly Products
Backplane Assembly Products Bare Backplane Boards with Connectors Installed Assembled Backplanes Installed into Enclosures
Slide 24: PCB Technology Drivers
PCB Technology Drivers Signal Speed Continued improvements in silicon drive higher signal speeds Component Density Package / System Size Environmental Increased processing power results in components with higher pin counts and smaller in size Demands for small, light-weight products drives smaller e
Slide 25: Component Density Example
Component Density Example 432 pin .50mm BGA 2007 515 pin .40mm BGA 2008 1.27mm BGA 1997 These components / packages are mounted to the PCBs we build
Slide 26: HDI Terminology
HDI Terminology Stacked Vias Microvia stacked on a buried via Stacked Microvias Microvia stacked on microvia Staggered Vias Microvia centerline offset (staggered) from buried via centerline Staggered Microvias Microvia centerlines offset (staggered) Via in Pad (VIP) Small vias drilled in the center
Slide 27: Financials
Financials Steven Richards - Chief Financial Officer
Slide 28: Convert Overview
Convert Overview Total $175 million @ 3.25% interest rate fixed for life $155 million base principal amount $20 million over-allotment (Closed on 5/20/08) Conversion premium set at $15.96, or 1.275 times 5/8/08 closing stock price of $12.52 Call spread overlay provides an effective conversion premiu
Slide 29: Annual Sales
Annual Sales 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 LTM 78.5 106.4 203.7 129 89 180.3 240.7 240.2 369.3 669.46 666.7 ($ Millions) Acquisition Advanced Circuits (12/26/02) Acquisition Power Circuits (7/14/99) Acquisition Tyco PCG (10/27/06)
Slide 30: Historical Revenue, EBITDA & Free Cash Flow
Historical Revenue, EBITDA & Free Cash Flow ($ Millions) Revenue EBITDA and Free Cash Flow Note: Acquired Tyco PCG on 10/27/06. Find reconciliation to audited financials in Appendix
Slide 31: Quarterly EBITDA and EBITDA Margin
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q EBITDA 9.7 7.9 9.1 12.5 16.7 19.4 19 18.5 25.5 20.1 22.2 24.4 31 EBITDA Margin 0.164 0.138 0.15 0.198 0.229 0.254 0.251 0.128 0.144 0.124 0.136 0.145 0.178 2005 2006 Quarterly EBITDA and EBITDA Margin 2007 2008 Note: Find reconciliation to audited financials in
Slide 32: EBITDA Margin Benchmarking
EBITDA Margin Benchmarking Relative to its peers, TTM has been more effective at managing through PCB business cycles
Slide 33: Quarterly Results
Quarterly Results ($ in Millions, except EPS) Note: Find reconciliation to audited financials in Appendix *Q2 guidance provided April 30, 2008 prior to TTM's convertible note offering on May 8, 2008
Slide 34: Historical Income Statement
Historical Income Statement Note: Find reconciliation to audited financials in Appendix
Slide 35: Historical Balance Sheet
Historical Balance Sheet December 31, December 31, March 31, (S inmillions) 2008 2007 2008 ‘Assets: Cash, Cash Equhalents and Short-Term Investments $707 $187 $326 ‘Accounts Receivable 125.4 1186 1182 Inventories e790 657 B37 Other Current Assets a6 169 154 Total Current Assets WT 219.9 29.6 Propert
Slide 36: Summary
Kent Alder - Chief Executive Officer and President Summary
Slide 37: Summary
Summary Limited competition / high entry barriers Leading market positions in attractive segments Integrated manufacturing platform provides one- stop solution Largest player in North America with significant size and scale #1 in Quick-Turn PCB production and Aerospace & Defense PCB products Leaders
Slide 38: Appendix: Non-GAAP supplemental information
Appendix Non-GAAP supplemental information
Slide 39: Annual EBITDA and FCF reconciliation
Annual EBITDA and FCF reconciliation Note: This information provides a reconciliation of EBITA/EBITDA to the financial information in our consolidated statements of operations "EBITDA" means earnings before interest expense, income taxes, depreciation and amortization. "EBITA" means earnings before
Slide 40: Quarterly EBITDA and FCF reconciliation
Quarterly EBITDA and FCF reconciliation Note: This information provides a reconciliation of EBITA/EBITDA to the financial information in our consolidated statements of operations "EBITDA" means earnings before interest expense, income taxes, depreciation and amortization. "EBITA" means earnings befo
Slide 41: TTM Technologies, Inc. 2008 Analyst Day
TTM Technologies, Inc. 2008 Analyst Day The Roosevelt Hotel Thursday, May 22, 2008