Jefferies 2013 Global Technology, Media & Telecom ... Clean.pdf · Hayward 130,000 Sq. Ft Chandler 69,000 Sq. Ft Austin UCTS 52,000 Sq. Ft Shanghai 15,000 Sq. Ft Philippines 35,000

Jefferies 2013 Global Technology, Media & Telecom Conference

May 5 - 7

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 obligation 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

Customers

• Awarded build of automated visual inspection equipment for new consumer electronics customer

• Awarded new robotics business with a major semiconductor customer

• Recent outsourcing engagement with medical robotics customer

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Financials:

• Q2 revenue guidance of $106-$111M

• Q2 non-GAAP EPS guidance of $0.07-$0.11/share (excl. intangible amortization)

• Gross margins of 13.8% on revenue of $100.5M in Q1’13 compared to 12.8% on revenue of $90.1M in Q4’12

• $64.9M in cash in Q1 2013

Who is UCT?

4

An Industry Leading Systems Integrator

Complete Outsource Solution

Vertical Expansion and Geographic Growth

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Highly complex, highly configurable, low volume manufacturing

STRATEGY

UCT History

5

Founded by Mitsubishi Corporation as a leading supplier of gas delivery systems

1991

Initial Public Offering (IPO)2004

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Industry leading systems integratorToday

Management led buyout2002

From gas delivery…

…to full system integration

Strategic Actions

6

2005 2006 2007 2009 2012

Opened manufacturing site in China

Acquired Sieger Engineering

adding machining capabilities and

customers

Acquired Allegro to add manufacturing capability in Singapore

Opened 2nd

facility in China for manufacturing and machining

Acquired AIT to broaden full system integration

capabilities and customer base

Over 1,400- employees world wide

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Key Customers & Markets

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Semiconductor

Medical

Research

Energy

Flat Panel

Globalization

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

offering 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

Energy

Flat Panel

Global Presence

110,000 Sq. Ft

S San Francisco

105,000 Sq. Ft

Hayward

130,000 Sq. Ft

Chandler

69,000 Sq. Ft

Austin

UCTS52,000 Sq. Ft

Shanghai

15,000 Sq. Ft

Philippines

35,000 Sq. Ft

Singapore

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

UCME

83,000 Sq. Ft

Shanghai

Achieving success in high-level systems integration and effectively expanding operations into Asia and adjacent markets (non-semiconductor) are core to UCT’s

diversification strategy

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Geographic and Market Diversification

11%

21%

17%

26%29% 28%

FY'07 FY'08 FY'09 FY'10 FY'11 FY'12

Asia Revenues

9%

26%

35%

21%

25%

15%

FY'07 FY'08 FY'09 FY'10 FY'11 FY'12

Non-Semiconductor Revenues

FINANCIAL OVERVIEW

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Selected Income Statement Data

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($ in millions, except per share amounts) Q3'11 Q4'11 * Q1'12 Q2'12 Q3'12** ^ Q4’12** Q1’13**

Sales $ 105.3 $ 86.9 $ 110.6 $ 101.9 $ 100.8 $ 90.1 $100.5

% Sequential Growth -21.3% -17.5% 27.3% -7.8% -1.1% -10.7% 11.5%

Gross Profit $ 12.9 $ 9.6 $ 15.7 $ 14.3 $ 14.3 $ 11.6 $13.8

Gross Profit % 12.2% 11.0% 14.2% 14.0% 14.2% 12.8% 13.8%

Opex $ 8.5 $ 8.0 $ 9.4 $ 9.3 $ 11.2 $ 10.9 $11.6

% Revenue 8.1% 9.3% 8.5% 9.2% 11.1% 12.1% 11.6%

Operating income $ 4.3 $ 1.6 $ 6.3 $ 4.9 $ 3.1 $ 0.6 $2.2

% Revenue 4.1% 1.8% 5.7% 4.8% 3.1% 0.7% 2.2%

EBITDA (Excl. Stock Comp) $ 6.2 $ 3.4 $ 8.2 $ 7.0 $ 5.4 $ 2.4 $4.3

% Revenue 5.9% 4.0% 7.4% 6.9% 5.4% 2.7% 4.3%

Net income $ 3.2 $ 1.4 $ 4.7 $ 3.9 $ 1.7 $ (0.1) $1.0

% Revenue 3.0% 1.6% 4.2% 3.8% 1.7% -0.1% 1.0%

Net income per share $ 0.14 $ 0.06 $ 0.20 $ 0.17 $ 0.06 $ (0.00) $0.04

Diluted Shares used 23,246 23,279 23,688 23,710 27,656 27,854 27,978

* Note: Represents pro-forma net income and EPS for Q4’11, excluding the impact of one-time beneficial tax adjustment ($6.4M) booked during the quarter.

** Note: Represents pro-forma numbers for Q3'12, Q4’12, and Q1’13, excluding M&A-related charges of $4.5M, $2.0M, and $1.6M, respectively.

^ Note: Q3'12 represents first quarter of combined operations between UCT and AIT. All prior quarters represent UCT results only.

Revenue Trends | Cyclical Growth

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* Note: Q3'12 represents first quarter of combined operations between UCT and AIT. All prior quarters represent UCT results only.

$42

$39

$28 $3

9

$57 $6

8

$104

$107

$111

$105

$96

$93

$92

$67

$60

$47

$22

$23

$41

$73

$98 $106 $1

18

$120 $127 $134

$105

$87

$111

$102

$101

$90 $1

00

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Q2'07

Q3'07

Q4'07

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12*

Q4'12

Q1'13

UCT Quarterly Revenue ($M)

Selected Balance Sheet Data

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($ millions) Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12* Q4’12 Q1’13

Cash $37.6 $37.9 $52.2 $54.8 $51.1 $58.3 $54.3 $64.9Total Debt $26.2 $25.6 $24.7 $23.8 $3.7 $77.8 $75.6 $70.8

Net Liquidity $11.4 $12.3 $27.4 $30.9 $47.5 ($19.5) ($21.3) ($5.8)

Accounts receivable $57.8 $47.7 $41.1 $49.0 $41.9 $47.5 $50.1 $49.6DSO 39 days 41 days 43 days 40 days 37 days 42 days 50 days 44 days

Accounts payable $48.9 $26.9 $29.5 $39.1 $25.8 $34.1 $23.5 $34.6DPO 38 days 26 days 34 days 37 days 26 days 35 days 27 days 36 days

Net Inventory $69.9 $59.3 $55.5 $61.0 $44.5 $63.3 $54.0 $51.2Inventory days 55 days 58 days 65 days 58 days 46 days 66 days 62 days 53 days

Working Capital $110.0 $113.5 $117.4 $122.5 $108.3 $86.5 $85.9 $83.5

* Note: Q3'12 represents first quarter of combined operations between UCT and AIT. All prior quarters represent UCT results only.

Minimal product risk

Reduced operating expenses

Low capital requirements

UCT Business Model

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Differentiators

15% - 18%

Targeted

8% - 10%

GrossMargin

OP.Margin

Manufacturing in low cost regions

Vertical integration capabilities

Revenue growth through market diversification

Improved operational efficienciesProfit 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

Asia operation

Adjacent markets

High-level integration business

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Thank You!