Ttm Technologies, Inc. · NASDAQ:TTMI
Ttm Technologies — UBS Global Communications & Technology Conference 2006
40 slides from Ttm Technologies's conference presentation, Nov 15, 2006
Slide 1: TTM Technologies Investor Presentation, UBS Global Communications & Technology Conference
TTM Technologies, Inc. Investor Presentation UBS Global Communications & Technology Conference Wednesday, November 15, 2006
Slide 2: TTM and Industry Overview
Kent Alder - President and Chief Executive Officer, TTM 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 the
Slide 3: Company History
Company History Largest North American PCB Strategically focused Time - Technology - Mix - Military Aerospace Specialized facilities Diversified customer base Company Overview Incorporated in 1978, TTM has a proven track record of executing successful transactions, including debt and equity capital
Slide 4: PCB Market Overview
PCB Market Overview The $40 billion global PCB market is projected to grow at 6% through 2010 Global PCB Market Forecast PCB Production by Region Global PCB End-Market Analysis Source: Prismark Partners, 2006 The $4.5 billion North American PCB segment represents approximately 10% of the global mark
Slide 5: North American PCB Market Overview
North American PCB Market Overview TTM now holds the #1 market share position in North America Larger, well-capitalized players with focused strategies, significant scale and advanced technology capability are positioned to benefit from on-going industry consolidation North American industry capacit
Slide 6: U.S. Military / Defense PCB Market
U.S. Military / Defense PCB Market Source: Facility data from Harvey Miller FabFile, 2006 and Company estimates. Total market size from Henderson Ventures 24 Facilities: $5 - $9 Million 1 Facility: $80+ Million 13 Facilities: $10 - $19 Million Total: 155 Military / Defense Facilities 33% of All Nort
Slide 7: PCB Industry Trends
PCB Industry Trends TTM is well-positioned to capitalize on major PCB industry trends Migration of commodity PCB manufacturing to Asia Decreasing electronic product life cycles Increasing complexity of electronic products Ongoing technology advances have shortened product life cycles, placing increa
Slide 8: PCB Competitive Landscape
Low (< 100) Medium (100 < 1,000) High (> 1,000) 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 / defense Semic
Slide 9: Company Overview - TTM
Kent Alder - President and Chief Executive Officer, TTM Company Overview - TTM
Slide 10: Competitive Strengths
Competitive Strengths Limited competition / high entry barriers Leading market position in most attractive PCB segments Advanced / integrated manufacturing platform provides one-stop solution Time-critical and highly complex manufacturing services through advanced technology expertise Leading quick-
Slide 11: TTM's Strategy
TTM's Strategy Financial Strength Focus on operational excellence Superior asset management and strong balance sheet Successful integration of opportunistic acquisitions Military / Aerospace #1 North America Supplier Rigid Flex and speciality P.C.B. products Backplane and sub Assembly Time Dedicated
Slide 12: Key Customers by End Market
Key Customers by End Market TTM serves over 585 active customers across a broad range of end-markets Networking / Communications Computing / Storage / Peripherals Medical / Industrial Instrumentation / Other Military / Aerospace Enterprise routers and switches Wireless base stations and cell phones
Slide 13: Industry-Leading Quick-Turn Capability
Industry-Leading Quick-Turn Capability 24 Hours 3 Days 5 Days 10 Days 11-20 Days Std. Delivery Quick-Turn Revenue (^ 10 days) ~22% 2005 ~20% June 2006 YTD Dedicated ultra-short lead-time capability (< 24 hours available) Dedicated, highly flexible, ramp-to-volume production in < 10 days Quick-Turn B
Slide 14: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA Strong Adjusted EBITDA margins facilitate consistent generation of positive free cash flow Note: 1 EBITDA in public filings differs from Adjusted EBITDA above due to extraordinary gains, interest income and other, restructuring charges, loss contingency accrual charge, and
Slide 15: EBITDA Margin Benchmarking
EBITDA Margin Benchmarking Relative to its peers, TTM has been more effective at managing through PCB business cycles
Slide 16: Company Overviews - former Tyco PCG
Doug Soder - Executive Vice President Company Overviews - former Tyco PCG
Slide 17: Former Tyco PCG
Former Tyco PCG Provider of complex, high performance printed circuit boards #1 supplier of military and aerospace PCB's in North America Rigid, flexible, rigid-flex and specialty PCB's PCB-related services include initial concept design, product simulation, prototyping and quick-turn assembly Tyco
Slide 18: Former Tyco PCG Competitive Strengths
Collaborative partnerships with customer R&D teams #1 PCB supplier to the US defense industry Competitive Strengths Extensive materials and manufacturing process expertise Recognized for over four decades as the leading supplier to the US defense and aerospace industry Market share within military /
Slide 19: Former Tyco PCG Facilities
Former Tyco PCG Facilities Overview of Tyco PCG Facility Footprint 9 1 6 8 2 4 5 7 1 Stafford, CT 4 Dallas, OR Military PCB: Commercial PCB: 5 Los Angeles, CA Assembly: 7 Stafford Springs, CT 9 Shanghai, China 2 Santa Clara, CA 6 Logan, UT 8 Hayward, CA Tyco Printed Circuit Group: 3 San Diego, CA 3
Slide 20: Long-Term Customer Relationships with Industry Leaders
Long-Term Customer Relationships with Industry Leaders Former Tyco PCG maintains deep, long-term customer relationships with minimal concentration No customer accounted for more than 8% of 1H 2006 revenues Average Top 10 Customer relationship: 15+ years
Slide 21: Combined Company Overview
Kent Alder - President and Chief Executive Officer Combined Company Overview
Slide 22: Acquisition Rationale
Acquisition Rationale Combines two leading North American PCB players TTM is the leader in time and technology Former Tyco PCG is the leader in military / aerospace Synergy opportunities (personnel, materials) Improved operations with PCB focus Leading North American PCB player with defensible marke
Slide 23: Pro Forma End-Market Analysis
Pro Forma End-Market Analysis Note: 1H 2006 End Market Data The acquisition more than doubles TTM's exposure to the defense end-market and significantly diversifies its overall revenue base Networking / Communications Computing / Storage / Peripherals Medical / Industrial Instrumentation / Other Mil
Slide 24: Pro Forma Customer Analysis
Pro Forma Customer Analysis The acquisition reduces TTM's customer concentration, as limited overlap exists between both companies' customers Top 10 OEM Customers PF Top 5 customer concentration in 1H06 declines from 47% to 23% as a result of the acquisition PF Top 10 customer concentration in 1H06
Slide 25: Pro Forma Customer Concentration
Pro Forma Customer Concentration (US$ in thousands) TTM Top 5 Customers Tyco PCG Top 5 Customers Pro Forma Top Customers (20.4%) (9.5%) (6.7%) (6.7%) (4.1%) (7.7%) (5.7%) (5.4%) (5.3%) (4.7%) (8.6%) (4.4%) (4.0%) (3.3%) (3.1%) $71,574 (28.8%) (23.4%) Top 5 Customer Sales $151,165 (100.0%) (100.0%) T
Slide 26: Combined Facility Footprint
The pro forma footprint enables TTM to continue to execute its facility specialization strategy Combined Facility Footprint 1 5 8 2 7 9 4 6 10 3 12 United States 11 China
Slide 27: Summary
Largest player in North America with significant size and scale Leading market position in most attractive PCB segments Summary Diversified revenue base Leading market positions in advanced technology / high layer-count, quick-turn, and military segments Limited competition with high barriers to ent
Slide 28: Historical Financials - TTM Technologies
Steve Richards - Chief Financial Officer, TTM Historical Financials - TTM Technologies
Slide 29: Annual Sales
Annual Sales 1998 1999 2000 2001 2002 2003 2004 2005 Q3 2006 YTD 78.5 106.4 203.7 129 89 180.3 240.7 240.2 225.1 $ Millions Acquisition Advanced Circuits (12/26/02) Acquisition Power Circuits (7/14/99)
Slide 30: Quarterly Sales
2004 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 45.3 54.3 57.7 61.6 62.2 59.2 58.9 57.2 61 63.1 72.7 76.6 75.8 2003 $ Million 2005 Quarterly Sales 2006
Slide 31: Historical Revenue, Adjusted EBITDA and Unlevered Free Cash Flow
Historical Revenue, Adjusted EBITDA and Unlevered Free Cash Flow (US$ in millions) Revenue Adjusted EBITDA and Unlevered Free Cash Flow
Slide 32: Quarterly Results And Estimates
Quarterly Results And Estimates $ Millions, except per share data
Slide 33: Historical Income Statement
Historical Income Statement
Slide 34: Historical Balance Sheet
Historical Balance Sheet $ Millions 12/31/2005 10/2/2006 Cash and short-term investments $82.4 110.3 Accounts receivable, net $38.6 $45.2 Inventories, net $12.6 $14.9 Net property, plant and equipment $51.8 $53.0 Other assets $87.7 $85.6 Total assets $273.1 309.0 Accounts payable $11.3 $13.7 Other c
Slide 35: Historical Revenue, Adjusted EBITDA and Unlevered Free Cash Flow
Historical Revenue, Adjusted EBITDA and Unlevered Free Cash Flow
Slide 36: Historical Financials - Tyco PCG
Steve Richards - Chief Financial Officer, TTM Historical Financials - Tyco PCG
Slide 37: Historical Summary Financials Fiscal Year Basis
Historical Summary Financials Fiscal Year Basis
Slide 38: Historical Financials - Combined
Steve Richards - Chief Financial Officer, TTM Historical Financials - Combined
Slide 39: Historical Financials
Historical Financials (USB in millions) CY Ended December 31, u™ 20044 205A __10/2/06A (1) Revenue: 1™ $240.7 $240.2 $288.3 Tyco PCG 266.9 354.3 406.6 Total Revenue 607.5 504.6 694.9 Gross Prot T™ 68.8 62.8 807 Tyco PCG 59.2 40.7 54.3 Total Gross Profit, 1278 04.5 135.0 Operating Income: T™ M12 26.4
Slide 40: TTM Technologies, Inc. UBS Global Communications & Technology Conference
TTM Technologies, Inc. Investor Presentation UBS Global Communications & Technology Conference Wednesday, November 15, 2006
TTM Technologies — UBS Global Communications & Technology Conference 2006 on 6ix