Ttm Technologies, Inc. · NASDAQ:TTMI
Ttm Technologies — Needham & Company Growth Conference 2004
33 slides from Ttm Technologies's conference presentation, Jan 9, 2004
Slide 1: Needham & Company Growth Conference
© TTM Technologies Needham & Company Growth Conference January 8, 2004
Slide 2: Safe Harbor Provision
Safe Harbor Provision TIM Technologies During the course of this presentation, we will make projections or other forward- looking statements regarding future events or the future financial performance of the Company. We wish to caution you that such statements reflect only our current expectations,
Slide 3: President and Chief Executive Officer
Tim Technologies President and Chief Executive Officer
Slide 4: Company Overview
Company Overview TIM Technologies TTMis a leading provider of time-critical and technologically complex printed circuit boards to the world’s leading electronic equipment designers and manufacturers “Pure Play” printed circuit board (PCB) manufacturer + Focused on time (24 hrs to 10 days) & technolo
Slide 5: Investment Highlights
Investment Highlights Improving Industry Conditions Focused Strategy and Strong Market Position Demonstrated Execution Excellence Industry Leading Financial Performance Multiple indicators of demand recovery Rationalization of capacity leading to share gains Leader in most attractive PCB industry se
Slide 6: Attractiveness of Time & Technology Strategy
Attractiveness of Time & Technology Strategy Limited Competition Performance Early access to new customers with high-growth potential Key supplier to high-growth programs within market leaders Critical service for new product introduction across multiple industries Difficult business model to replic
Slide 7: Industry Overview
TM Industry Overview
Slide 8: Industry Dynamics and Key Success Factors
Dynamics and Key Success Factors Tim Technologies Current Industry Dynamics Key Success Factors + Key indicators of industry recovery + Capacity in place for complex products solidifying and short lead times + High volume, low-mix production + Focus on quick-turn, high-mix and transitioning to Asia
Slide 9: Segments Most Susceptible to Asian Competition
[1 Most susceptibie to Asian competition [1 competitive markets High (> 1,000) = Pcs + Cellphones * Limited product + Computer + Advanced PDAS application peripherals + Power supplies z + Automative 4 + Consumer os electronics 2 = Pcs Low-end servers High-end servers E + Computer + High-end computer
Slide 10: North American PCB Market
rth American Tim Technologies * $5.2 billion North American PCB market in 2002 © Total number of PCB manufacturers has been reduced by approximately 50% > 950 companies in 1992 to less than 500 in 2002 * 30-40% of PCB capacity has been permanently removed since 2001 * Only? PCB fabricators with grea
Slide 11: Impact of Broad-Based Capacity Reductions
Impact 6f Broad-Based Capacity Reductions TIM Technologies Capturing Programs from Factory Closures Extending Industry Lead Times Closures facilitating market share gains Increasing customer attention to supplier viability Competitors extending lead times TTM enjoying share capture and spot orders d
Slide 12: End Market Indicators
End Market Indicators Improving on: Multiple Fronts Tim Technologies Electronic Equipment Orders & Inventory Favorable + Double digit arder growth year-to-date + Inventory-to-Order ratio below pre-boom levels Favorable + High end (10 Ghps) router market +10% + Service provider router market +6% Infr
Slide 13: TTM's Strategy
TTM’s Strategy
Slide 14: TTM's Strategy
TT's Strategy Customers / End Markets + Diverse hase of industry leading customers + Early access to emerging customers and niche enc-markets + Glabal sales reach Technology Time + High performance, technologically camplex PCBS Industry Leading Execution and + Dedicated ultra-short lead time Financi
Slide 15: Facility Specialization Strategy
Tim Technologies Technology (Layer Count) 40 30 20 10 Prototypes High-Mix / Low Volume & Prototypes Facility Specialization Strategy Leading Edge Technology 5 10 Time (Lead Time in Days) 15 20 ty and Technology
Slide 16: Price by Delivery Time
Price by Delivery Time 5x Quick-Turn Revenue 2 ax (10 days or less) 2 > ~45% 2002 = ~279 . % ox > ~27% YTD 03 3 3 = & 2x s > 1x ox 24Hours 3Days SDays 10Days 1120 Standard- Days Delivery Time (Lead Time) Through 98 2008,
Slide 17: Revenue By Layer Count
Revenue By Layer Count TIM Technologies Percentage of Revenue 63% Avg. Layer Count YTD 03° = 14.2 28% 2000= 83 30% 28% 28% : 2% 2% 15% 28% 26% 26% 1999 2000 2001 2002 YTD 03* Ml 12-48 Layers Ol => 20 Layers 1g to Upgrade Technological Capal Through 98 2008,
Slide 18: Global Sales Reach
Global Sales Reach TIM Technologies Technical Inventory Sales Support Hub Comments Asia@ROW | 14% 2 1 1 Malaysia Europe 3 1 2 UK & Italy North America] 78% 103 8 3 Integrated direct & rep force TTM Shipments by Geography YTD 03" Global Sales and Customer Service Network Driving incremental Sales Thr
Slide 19: Customer Concentration
Customer Concentration Percentage of Revenue 62% 64% 13% 51% 12% 13% or ete a 10% 1% 49% 38% 1999* 2000 2001 2002 YTDO3* H@ Top5 customers [ Customers 6to10 increased Exposure to End Market Leaders "Pro forma for he acquisition of Power Cita, which eocutred in July 1058, Through 03 2008.
Slide 20: End Markets
3) End Markets © g [33 2 : z Mie High-End Ee compu : 53) Wa sla 34 o E 7 z Indust/Med. - 12% es us - ze b= Handheld/Other - 5% Customers + Hewlett-Packard + IBM + Motorola + Sun Microsystems et ‘Revenue Chain Channel EMS Providers -59% Solectron Celestica Benchmark Jabil Plexus Others Shipped OEM 41
Slide 21: Key Customers by End Market
Key Customers by , End Market Tim Technologies Percentage of Revenue by End Market— YTD 03° Cohectng = 9% CA EE Osun 6 EG: Networking & besstrtat py oa Communications 32% RR Ge Juniper [ om Se Industrial & a 12:07 | EES Avinws, Medical 1% TZ = Goce. @ Computer aficron GInvIvIA Peripheral 8% A eripno
Slide 22: Delivery of Total TTM Solution to Cisco
Delivery of SRSUNsETE Total TTM Solution ACI acquisition solidified position as a leading supplier to Cisco for complex PCBS Cisco emerges as a leading proto customer at Santa Ana during Q4 Key qualification activities completed and initial orders captured in Q4 Chippewa Falls’ capabilities and best
Slide 23: Compelling Growth Opportunities
Compelling Growth Opportunities TiM Technologies * Leverage one-stop manufacturing solution through cross-selling * Use quick-turn capabilities to attract emerging high-growth customers * Continue to improve technology and manufacturing processes * Expand into niche markets through internal initiati
Slide 24: Stacey Peterson, Chief Financial Officer
' (, y Stacey Peterson Technologies TM Chief Financial Officer
Slide 25: Annual Sales
Annual Sales Sales ($mm) ‘Advanced Creuits acquisition (12/2602) Power Circuits acquisition T $168.0 HHLHE ' {| “ie 1998 1999 2000 2001 2002 = Annualized YTD 03* Through as 2008,
Slide 26: Quarterly Sales
Quarterly Sales Sales ($mm) Tavancod Creat acquetion (12260) 9. 41.1 pos 126.§ 5 123. F | 3a 4a 19a 3Q 4 tQ QQ) 2001 2002 2003 $50.0 to $52.0 4QE
Slide 27: Annual EBITDA and EBITDA Margin
Annual EBITDA and EBITDA Margin Tim Technologies $80 40% Power Circuits $60 acquisition (7489) 5 a 30% & 5 2 ‘advanced Creuits = x $40 acquisition (12/26/02) 20% = e e a $615 a a a $20 10% $32.3 j $20.9 | $13.1 | $116 $0 Hs53) eee | oy, 1998 1999 2000 2001 2002 Annualized YTD 03 Please see Appendix
Slide 28: Quarterly EBITDA and EBITDA Margin
Quartefly EBITDA and EBITDA Margin 30% $6 z = 20% 5 é& ‘Advanced Creuits S : = a $4 < a Fs E Ee a 5. a $2 $0 3a 2001 2002 2003 Please see Appendix for EBITDA reooncliation. EBITDA means earnings before interest expense (induding amortization of debt issuance cos), interest income and other, income t
Slide 29: Financial Model
Financial Model Tim Technologies (of sales) 1999" | [ 2000 | | 2001 | | 2002 | /¥tD0s~ Gross Margin 28% «30% 28%H_— 1% 10% 25-30% EBITDA Margin 2% = 30% 28% &% 8% 18-24% Operating Margin" 19% 27% = 19% ~~ (6)% MH 14-19% CAPEX 8% = 11% % % &% 5.9% Quick-Turn 3% — 3% AO%H_— ABH — «AH ~—«-3BAO% Cash Cy
Slide 30: 2003 Quarterly Results and Estimates
2003 Quarterly Results and Estimates (8mm, except per share data) [ Sales $396 $41.0 $45.3 $50.0-$52.0 Gross Profit 45 64 95 % Margin 19% 16% 21% 22%-24% Operating Income (13) 07 37 GAAP EPS (80.00) $0.01 $0.06 $0.08-$0.10 Operating Cash Flow $78 $69 $0.1 Inventory Turns 14x 16x 18x
Slide 31: Capitalization
Capitalization 9/29/03 12131102 Actual Cash $18.9 $31.3 Net Cash 89 213 Total Shareholders’ Equity 167.4 173.0 Total Capitalization VTA 183.0 ‘apitalized for Future Growth
Slide 32: Conclusion
Conclusion * Improving industry conditions Focused strategy and strong market position Demonstrated execution excellence Industry leading financial performance
Slide 33: Searchable text section of graphics
Searchable text section of graphics shown above [ LOG O] TTM Technologies Needham & Company Growth Conference January 8, 2004 Saf e Harbor Provision [LOGO] During the course of this presentation, we will make projections or other forward-looking statements regarding future events or the future finan
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