Ultra Clean Holdings, Inc. · NASDAQ:UCTT
Ultra Clean — Investor Presentation (May 2021)
26 slides from Ultra Clean's investor presentation, May 20, 2021
Slide 1: Corporate Presentation Spring 2021
Corporate Presentation Spring 2021
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 Non-GAAP Securities Litigation Reform Act of 1995. Thes
Slide 3: Enabling Semiconductor Technology for 30 Years
Enabling Semiconductor Technology for 30 Years 1991 2006 2014 Founding of UCT 2002 2010 2020 Sustainable & Profitable Growth Solving Complex Problems 3
Slide 4: Consistently Outperforming Our Served Markets
Consistently Outperforming Our Served Markets 21 pts UCT YoY Growth Rate Above WFE 12 pts 11 pts 6 pts 6 pts 2016 2017 2018 2019 2020 WFE Y/Y Growth Rate 11.2% 37.0% 16.3% -16.5% 19.8% Source: UCT estimate from SEMI WWSEMS data (Jan-Dec’20). UCT Financials. 4
Slide 5: Proven Growth Strategy Driving Exceptional Results
Proven Growth Strategy Driving Exceptional Results CAGR* 2016 – 2020 $1,399 UCT $ IN MILLIONS 26% UCT Revenue WFE Op Margin $1,097 $1,066 16% $924 11.3% 10.3% $563 7.8% 7.8% 5.4% 2016 2017 2018 2019 2020 5
Slide 6: Successful Inorganic Growth
Successful Inorganic Growth DECEMBER•2020 APRIL•2019 Purchase Price $351M Purchase Price $30.0M EV/EBITDA ~14.5 SEPTEMBER•2018 AUGUST•2015 EV/EBITDA ~5.4 Purchase Price $22.8M Purchase Price $342.0 Expanded Semi SAM by ~$2B EV/EBITDA ~6.6 EV/EBITDA ~6.2 FEBRUARY•2015 Purchase price $43.6M Increasing
Slide 7: Why Ham-Let?
Why Ham-Let? • Expands UCT’s semiconductor addressable market by over $2 billion • Strengthens UCT’s leading competitive position in the gas panel market – Broader, higher-value, high IP portfolio of market-leading product solutions – Capitalizes on growth in vacuum and gas-related fab solutions • B
Slide 8: $351 Million Ham-Let Deal Metrics
Ham-Let Deal Metrics • Adds ~$200 million annualized revenue $351 Million – Semiconductor provides ~60% of total revenue $284M Equity | $67M Net Debt • Opportunity for revenue and cost synergies – Leverage cross-selling opportunities to grow revenue – ~$20 million in identified cost synergies over n
Slide 9: Lifecycle of Chip Manufacturing
Lifecycle of Chip Manufacturing FAB CONSTRUCTION EQUIPMENT BUILDOUT PRODUCTION SUPPORT WAFER FAB PRODUCTION EQUIPMENT EQUIPMENT MAINTENANCE NEW PART CLEANING PART RECYCLING & REFURB CLEANROOMS & SUB-FAB ANALYSIS PART CLEANLINESS ANALTICS FAB INFRASTRUCTURE WFE & SUB-FAB SUPPORT EQUIPMENT Facilities
Slide 10: Supplying Many Critical Elements of the Semiconductor Production Process
Supplying Many Critical Elements of the Semiconductor Production Process UCT MARKETS SEMI MANUFACTURING PROCESS PREP FRONT-END PROCESSING BACK-END PROCESSING EPITAXIAL PHOTORESIST LITHOGRAPHY CMP POLISHING CERTAIN STEPS REPEATED ETCH PACKAGE & TEST 20X – 30X IMPLANT SLICING DEPOSITION INSPECTION ANN
Slide 11: Diversified Path To Market Expansion
Diversified Path To Market Expansion TRANSFER CHAMBER PROCESS CHAMBER GAS PANEL FACTORY INTERFACE 11
Slide 12: Industry and Customer Footprint (Q1'21)
Industry and Customer Footprint (Q1’21) UCT Revenue by Segment UCT Revenue by Customer Service Service* 17% 17% Other Equipment Memory Other WFE OEM's Lam 13% 46% 41% Foundry & Applied Logic WFE 24% 35% * Includes low single digit OEM service revenue 12
Slide 13: Global Product & Service Footprint Strategically Close To Customers
Global Product & Service Footprint Strategically Close To Customers Manufacturing Cleaning & Analysis Ham-Let* UK CALIFORNIA CZECH OREGON REPUBLIC ARIZONA KOREA COLORADO ISRAEL CHINA TEXAS PHILIPPINES MAINE TAIWAN SINGAPORE MALAYSIA (2021) Global Presence is a Strategic Benefit for Major Customers *
Slide 14: Product & Service Market Opportunity
Product & Service Market Opportunity $1.4B $545B FABS $2.0B $25B OEMS $75B * UCT estimates and UCT adaptation of Gartner’s Dec 2020 Semiconductor forecast, by Andrew Norwood et al 14
Slide 15: Product Group Opportunities
Product Group Opportunities • Further penetration of current >10% customers • Expand presence at other major OEM’s – Goal to add 1-2 >10% customers over the next several years • Grow engagement with smaller customers – Further diversify revenue; leverage new high growth device markets (i.e. 5G, IoT,
Slide 16: Service Group Opportunities
Service Group Opportunities • Reduce cost of ownership utilizing advanced technology – Longer part life and improved yield through specialty coating – Higher tool productivity by chemical and thermal pre-conditioning parts • Improve efficiencies by leveraging part cleaning knowledge – Create value b
Slide 17: QuantumClean/ChemTrace Advantaged Position
QuantumClean/ChemTrace Advantaged Position • Primary customers engage with Cleaning + Analytical Lab Services Market* global suppliers • Large number of regional players serve ~70% of market Others (~90 companies) Cleanpart 69% – Leading position; opportunity to grow 3% Pentagon 5% 2020 KoMiCo Top 4
Slide 18: End Market Update
End Market Update • Foundry – broad, multi-year investment cycle – Tight capacity across all nodes, likely into 2022 – Investments span leading & trailing edge and will support broader regional production • Logic demand remains robust – Mobility & high performance computing strength continue – Broad
Slide 19: Malaysia Strategy
Malaysia Strategy • Expands global footprint; supports growth plan – Proximity to customers and suppliers – Ensures business continuity – Improves cost competitiveness • State-of-the-art Facility – Leasehold improvements underway – Initial production expected early H2’21 – Total capex ~$17 million
Slide 20: Financial Update
Financial Update
Slide 21: Q1'21 Key Takeaways
Q1’21 Key Takeaways • Record revenue $ in Millions Q1’21 • EPS high-end of guidance Total Revenue $417.6 • Improved profitability Gross Margin* 21.3% Operating Margin* 12.2% Cash Generation $65.6 $ in Millions Products Services Cash Balance $264.3 EPS* $0.92 Revenue $345.6 $72.0 Gross Margin* 18.2%
Slide 22: Q2 Guidance
Q2 Guidance Q2’21 Guidance REVENUE IN MILLIONS Revenue $490.0 - $520.0 EPS $0.90 - $1.03 22
Slide 23: Margin Model
Margin Model Consolidated Performance* $0.8 - $1.0B $1.0 - $1.5B $1.5 -$2.0B Non-GAAP Gross Margin 15% - 18% 17% - 20% 18% - 21% Non-GAAP Operating Margin 5% - 8% 7% - 10% 9% - 12% Business Unit Target* Products Services Non-GAAP Gross Margin 15% - 18% 33% - 36% Non-GAAP Operating Margin 8% - 10% 12
Slide 24: Thank You
Thank You |
Slide 25: Reconciliation: GAAP Net Income (loss) 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 Net income (loss) per GAAP basis 75,085 36,596 (9,351) 77,605 24,997 Amortization of intangible assets (1) 5,438 9,580 20,090 19,799 4,889 Restructuring charges (2) - 4,821 16,667 4,573 140 Sto
Slide 26: Reconciliation: GAAP Earnings Per Diluted Share to Non-GAAP Earnings Per Diluted Share
Reconciliation: GAAP Earnings Per Diluted Share to Non-GAAP Earnings Per Diluted Share FY’17 FY’18 FY’19 FY’20 Q1’21 Reported GAAP net income (loss) $2.19 $0.94 $(0.24) $1.89 $0.60 Amortization of intangible assets (1) $0.16 $0.25 $0.50 $0.48 $0.12 Restructuring charges (2) - $0.12 $0.42 $0.11 $0.00
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