Ultra Clean Holdings, Inc. · NASDAQ:UCTT
Ultra Clean — Investor Presentation (2022)
24 slides from Ultra Clean's investor presentation, 2022
Slide 1: Investor Presentation Spring 2022
Investor Presentation SPRING•2022
Slide 2: Safe Harbor
Safe Harbor This presentation may contain forward-looking statements and management may make additional forward-looking statements in response to your questions. These statements are made under the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward
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% ~10%* 10% 6.1% 5.5% 0% 2016 2017 2018 2019 2020 2021 -10% -20% * UCT estimates and UCT’s adaptation of VLSI Ic manufacturing equipment market history
Slide 5: Proven Growth Strategy
Proven Growth Strategy CAGR* 2016 – 2021 $ IN MILLIONS $2,102 UCT UCT Revenue Op Margin 30% WFE $1,399 20% $1,097 $1,066 $924 12.2% 11.3% $563 10.3% 7.8% 7.8% 5.4% 2016 2017 2018 2019 2020 2021 * UCT estimates and UCT’s adaptation of VLSI Ic manufacturing equipment market history and forecast (2016
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 (Q4'21)
Industry and Customer Footprint (Q4’21) Service* Service* 13% 13% Non-semi Non-semi 10% Memory 10% Lam WFE 39% 39% Other OEM 14% Foundry & Logic WFE 38% Applied 25% 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 of Gartner’s Dec’21 Semiconductor Capital Spending, Wafer Fab Equipment and Capacity, Worldwide forecast, by Bob Johnson et al
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 OEM
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 Cleanpart•3% players serve ~70% of market – Leading position; Pentagon•5% opportunity to grow KoMiCo•6% 2021 17% Top 4 IDM 62% Top 4 OEM* 22% Top 2 Foundries 6% All Other 10% 15 * Includ
Slide 16: Malaysia Update
Malaysia Update • Working with customers to • State-of-the-art Facility accelerate production – Leasehold improvements underway – Focused on ramping output/revenue – Total capex ~$17 million through 2022 – Will employ ~650 people in manufacturing, engineering, quality management and R&D • Expands gl
Slide 17: End Market Update
End Market Update Foundry Logic 3D NAND DRAM BROAD INVESTMENT TO LOGIC SPENDING CONTINUING TRANSITION NODE TRANSITIONS SUPPORT ALL NODES ACROSS WIDER BASE TO MORE LAYERS CONTINUING – – – – – – – 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•2022
Slide 20: Q4'21 Key Takeaways: Record Revenue & EPS
Q4’21 Key Takeaways • Record Revenue & EPS Total Gross Operating Cash Cash EPS* Revenue Margin* Margin* Generation Balance $615.1M 21.5% 12.6% $43.0M $466.5M $1.22 Products Services Revenue $533.9M Revenue $81.3M Gross Margin* 19.1% Gross Margin* 37.1% Operating Margin* 11.8% Operating Margin* 17.9%
Slide 21: Q1'22 Guidance
Q1’22 Guidance Revenue $580M $630M EPS $1.06 $1.26 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 Thousands FY’17 FY’18 FY’19 FY’20 Q1’21 Q2’21 Q3’21 Q4’21 FY’21 Net income (loss) per GAAP basis 75,085 36,596 (9,351) 77,605 24,997 17,098 31,880 45,470 119,445 Amortization of intangible assets (1) 5,438 9,580 20,090 19,799 4,889 9
Slide 24: Reconciliation: GAAP to Non-GAAP Earnings Per Diluted Share
Reconciliation: GAAP to Non-GAAP Earnings Per Diluted Share FY’17 FY’18 FY’19 FY’20 Q1’21 Q2’21 Q3’21 Q4’21 FY’21 Reported GAAP net income (loss) $2.19 $0.94 $(0.24) $1.89 $0.60 $0.39 $0.70 $1.00 $2.69 Amortization of intangible assets (1) $0.16 $0.25 $0.50 $0.48 $0.12 $0.22 $0.21 $0.21 $0.75 Restru