Jefferies 2015 TMT Presentation May, 13 2015 Safe Harbor During - - PowerPoint PPT Presentation

Jefferies 2015 TMT Presentation May, 13 2015

Safe Harbor

During the course of this presentation, we will make projections and other comments that are forward-looking statements within the meaning of the federal securities laws. These statements are subject to a number of risks and uncertainties and are based on current information, expectations and estimates that are inherently subject to change. We caution you that actual events or results might differ materially from those in any forward-looking statement due to various factors. Information concerning factors that could cause actual events or results to differ materially from those in any forward looking statement is contained in the Company's Registration Statement on Form S-1, and in other filings with the SEC made by the Company. The Company assumes no

• bligation to update any statement made during today's presentation, to revise

any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements.

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Current UCT Update

Investment in Growth:

• Completed acquisition of Marchi Thermal

Systems in February 2015 to expand UCT’s capabilities and strengthen customer base

• Officially opened new prototype center in

Fremont in March 2015 to expand vertical integration capabilities and drive new business opportunities

• Acquired Prototype Asia in Q4’14 combined

with additional investment in 3D printing. UCT will launch an Additive Manufacturing Center in Singapore later in 2015

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Financials:

• Q2 revenue guidance of $112-$117M
• Q2 non-GAAP EPS guidance of $0.04-

$0.07/share (excl. intangible amortization expense from past acquisitions)

• Gross margins of 15.9% on revenue of $125.3M

in Q1 compared to 15.3%* on revenue of $120.0M in Q4. Our target range is 15-18%.

• Cash reserves of $69.6M at end of Q1

* Note: Q4’14 results reflect the financial impact of customer bankruptcy (GTAT).

Outsourced Operations Complete Mfg. Processes

Semi- Hardware Expertise

Who is UCT?

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An Industry Leading Systems Integrator Complete Outsource Solution Vertical Expansion and Geographic Growth

Highly complex, highly configurable, low volume manufacturing

• Focus in 2015 is SemiCap equipment market

Complete Manufacturing Processes Outsourced Operations

Semi- Hardware Expertise

Semiconductor OEM spend “Swimming Pool*”

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Module 1 Module 2 Module 3 Module 4 Module 5 Module 6 Module 7 Module 8 Module 9 Module 10 Module 11 Module 12 Module 13 Module 14

Insourcing/others Competitor UCT

~$10B-$12B

Market Share

UCT has <5% of Semi Cap OEM spend-Major opportunity for SAM growth

*example only

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UCT- Top Provider to the Semi OEM’s- Uniquely focused

$700M $5B $26B $132B $520M

2014 Annual Revenue ($M ) 1000

CM-A CM-B UCT CM-CC CM-D CM-E CM-F Other Semi Top Tier Semi

$1B

$6B $320M Total Revenue

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UCT 3 Year Target and Model

2014 Organic Growth Inorganic Growth Total Revenue GP Net Income

$

Grow Revenue 50% while growing OH

• nly ~20%

Add 50% more Revenue 50% in products and specialty process at or above target GM 8-10% 15-18%

$1B

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Global Foundation for Integrated Equipment Manufacturing

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Frames 2005 2006 2007 2009 2012 2014 2015

Opened manufacturing site in China Acquired Sieger Opened 2nd facility in China Acquired Allegro manufacturing in Singapore Acquired AIT

2015-Acquired Marchi Thermal Systems

Acquired Prototype Asia/ 3D printing capability & opened prototype center in Fremont

Special Processes Sub OEM Products

Globalization

Worldwide manufacturing and supply chain enables us to do product development near the customer while

• ffering lowest cost sourcing

and manufacturing

New Product Introduction (NPI) to Functional Testing

Provide fastest time to market, with highest quality and lowest cost through NPI expertise and full functional testing capabilities

High Quality, Complex Manufacturing

Provide customers broad- based manufacturing capabilities - from precision components to large scale complete systems

Engineering and Design

Reduce cost, improve reliability and design for manufacturability (DFM) through our expertise in mechanical and electrical engineering

UCT Value Proposition

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Semiconductor Medical/Research Industrial/Consumer Energy Flat Panel

Global Presence

110,000 Sq. Ft

S San Francisco

130,000 Sq. Ft

Hayward

130,000 Sq. Ft

Chandler

69,000 Sq. Ft

Austin

UCTS 52,000 Sq. Ft

Shanghai

15,000 Sq. Ft

Philippines

35,000 Sq. Ft

Singapore

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Manufacturing & NPI Engineering Supply Chain Management Metal Fabrication (machining, sheet metal, framing)

UCME 83,000 Sq. Ft

Shanghai

9,000 Sq. Ft

Fremont

FINANCIAL OVERVIEW

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Selected Income Statement Data

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($ in millions, except per share amounts)

Q1’14* Q2’14* Q3’14* ** Q4’14* ** Q1’15* Sales $ 144.2 $ 132.7 $ 117.0 $ 120.0 $ 125.3

% Sequential Growth 14.2%

• 8.0%
• 11.8%

2.5% 4.4%

Gross Profit $ 23.3 $ 21.2 $ 10.3 $ 18.4 $ 19.9

Gross Profit % 16.2% 15.9% 8.8% 15.3% 15.9%

Opex $ 12.9 $ 11.9 $ 13.0 $ 12.2 $ 13.6

% Revenue 9.0% 8.9% 11.1% 10.2% 10.8%

Operating income (loss) $ 10.4 $ 9.3 $ (2.7) $ 6.1 $ 6.3

% Revenue 7.2% 7.0%

• 2.3%

5.1% 5.1%

EBITDA (Excl. Stock Comp) $ 12.2 $ 11.1 $ (0.8) $ 8.2 $ 7.7

% Revenue 8.4% 8.3%

• 0.7%

6.8% 6.1%

Net income $ 8.1 $ 7.0 $ (4.3) $ 4.5 $ 4.2

% Revenue 5.6% 5.3%

• 3.7%

3.7% 3.4%

Net income per share $ 0.27 $ 0.23 $ (0.14) $ 0.15 $ 0.14 Diluted Shares used 29,918 29,882 29,914 29,944 30,964

* Note: Represents pro-forma numbers, excluding intangible amortization expense related to past acquisitions. ** Note: Q3’14 and Q4’14 results reflect the financial impact of customer bankruptcy (GTAT).

Outsourced Operations Complete Mfg. Processes

Semi- Hardware Expertise

Selected Balance Sheet Data

UCT Confidential 13

($ millions) Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q3’14* Q4’14* Q1’15 Cash $71.3 $65.9 $60.4 $74.3 $69.4 $75.1 $79.0 $69.6 Total Debt $68.4 $56.5 $55.1 $63.7 $55.9 $47.5 $48.2 $75.6 Net Liquidity $3.0 $9.4 $5.3 $10.5 $13.5 $27.7 $30.8 ($6.0) Accounts receivable $47.1 $49.7 $67.4 $72.2 $67.9 $57.5 $61.8 $69.6 DSO 38 days 42 days 48 days 45 days 46 days 44 days 46 days 50 days Accounts payable $30.1 $37.8 $54.0 $55.4 $45.5 $42.4 $48.9 $50.1 DPO 29 days 37 days 46 days 41 days 37 days 36 days 43 days 43 days Net Inventory $48.7 $50.3 $63.9 $67.5 $67.1 $55.4 $56.9 $59.9 Inventory days 47 days 50 days 55 days 50 days 54 days 47 days 50 days 51 days Working Capital $87.3 $92.1 $100.4 $109.6 $115.0 $109.7 $142.3 $147.6

* Note: Q3’14 and Q4’14 results reflect the financial impact of customer bankruptcy (GTAT).

Outsourced Operations Complete Mfg. Processes Semi- Hardware Expertise

Minimal product risk Reduced operating expenses Low capital requirements

UCT Business Model

UCT Confidential 14

Differentiators

15% - 18%

Targeted

8% - 10%

Gross Margin OP. Margin

Manufacturing in low cost regions Vertical integration capabilities Revenue growth through market diversification Improved operational efficiencies

Profit Drivers

UCT Summary

Business Focus

Highly complex, highly configurable, low volume manufacturing From gas delivery to complete systems

Value Add

Engineering and Design Globalization New Product Introduction (NPI) to Functional Testing

Financial Stability

History of profitability with strong balance sheet and unique business model

Growth Drivers

Expansion in Semi Market Asia operation Adjacent markets High-level integration

UCT Confidential 15

Corporate Presentation May 2015 Thank You!