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January 12, 2016
Investor PresentationNeedham Growth
Conference
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 Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements concerning our beliefs, forecasts, estimates and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that our results of operations are cyclical and may fluctuate from period to period; the risk that we rely on a small number of customers for a significant portion of our revenue; the risk that the industries in which we participate are highly competitive and other risks outlined in our public filings with the Securities and Exchange Commission, including as set forth under “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K filed with the Securities and Exchange Commission. The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in this presentation. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
External Use2
Global leader in design, engineering and manufacturing of critical modules, subsystems and turnkey solutions primarily for the semiconductor capital equipment industry.
• Today’s Press Release
– Q4 2015: Confirmed revenue guidance
– Q1 2016: Expect q/q increase in revenue
• Two accretive acquisitions, expanding Semi WFE footprint and increasing capabilities
– Marchi adds thermal management expertise
– Miconex provides strong entry into Wet processing equipment segment
• Successfully launched prototype capabilities for early entry into new semi technologies
– Kulicke & Soffa adopted UCT 3D printing manufacturing in latest product
External Use3
UCT Highlights
External Use4
From Design to Prototype to Production
MANUFACTURING
INTEGRATION & TESTPROTOTYPING/ DEVELOPMENT
MANUFACTURINGENGINEERING
SUPPLY CHAIN MANAGEMENT
External Use5
From Design to Prototype to Production
Broad expertise in multiple areas Complete outsourced design
• Gas and liquid delivery• Mechanical and electrical assemblies• Thermal management
Quick turn capabilities
PROTOTYPING/ DEVELOPMENT
MANUFACTURINGENGINEERING
MANUFACTURING
INTEGRATION & TEST
SUPPLY CHAIN MANAGEMENT
External Use6
From Design to Prototype to Production
Design for manufacturability (DFM) Lower production costs Reduced cycle time
Partner with customers to meet demanding new product requirements
Continuous improvement in operational excellence
MANUFACTURING
INTEGRATION & TEST
MANUFACTURINGENGINEERING
PROTOTYPING/ DEVELOPMENT
SUPPLY CHAIN MANAGEMENT
External Use7
From Design to Prototype to Production
Network of global, strategic partners Reduce customer overhead through UCT expertise
in qualifying and managing complex supplier base Aggregated buying power Improved customer delivery time
PROTOTYPING/ DEVELOPMENT
MANUFACTURING
INTEGRATION & TEST
MANUFACTURINGENGINEERING
SUPPLY CHAIN MANAGEMENT
External Use8
From Design to Prototype to Production
Comprehensive new product introduction process Simplify manufacturing process Reduce manufacturing costs Solve production challenges
Vertically integrated
MANUFACTURING
PROTOTYPING/ DEVELOPMENT
INTEGRATION & TEST
MANUFACTURINGENGINEERING
SUPPLY CHAIN MANAGEMENT
External Use9
From Design to Prototype to Production
Sub-system through full tool integration Electrical and mechanical assemblies Ultra-high purity gas systems Fluid delivery systems
Final test and shipment direct to end users “Extended factory to top OEMs”
INTEGRATION & TESTPROTOTYPING/ DEVELOPMENT
MANUFACTURINGMANUFACTURING
ENGINEERING
SUPPLY CHAIN MANAGEMENT
OEM Component Suppliers
34%
OEM Integration In-Sourcing
44%
UCT5% Major Contract
Manufacturers11%
Other Contract Manufacturers
6%
External Use10
Semi Equipment Manufacturing Landscape
Source: UCT estimates.
External Use11
Why Outsource?
LOWER COST Provides variable cost model
SCALABILITY Gain ability to quickly scale manufacturing
OPERATIONAL FOCUS Access to expertise in manufacturing
SUPPLY CHAIN Ease of supply chain management
FINANCIAL FLEXIBILITY Achieve reduction of inventory, improved cash flow
External Use12
Why We Win
COMPLEX DESIGNS Track record of delivering highly complex Semi equipment and solutions
SCALABILITY Effectively manage variable volumes and dynamically changing designs
SUPPLY CHAIN Leader in Semi equipment supply chain
COST OF QUALITY Consistently deliver high quality precision products
FINANCIAL STRENGTH Strong balance sheet and flexible financial model
External Use13
Total WFE Market Opportunity
2015 WFE Estimate: $32B
Source: Gartner 2015 and UCT estimates
Thermal & Implant
5%Deposition
23%
Removal/Etch27%
Lithography27%
Metrology & Inspection
12%
Other6%
External Use14
UCT Target WFE Markets
2015 WFE Estimate: $32B
Source: Gartner 2015 and UCT estimates.
Addresses
55%of WFE Market
Thermal & Implant
5% Deposition23%
Removal/Etch27%
Lithography27%
Metrology & Inspection
12%
Other6%
External Use
Total WFE Market OpportunityDeposition & Etch Outpace Semi Market
2015 WFE Estimate: $32B
Dep & Etch
>70%of UCT Semi
Sales
Dep & Etch CapEx Spend 9-10% CAGR 2013 - 2018
Total CapExSpend~6% CAGR 2013 - 2018
Thermal & Implant
5% Deposition23%
Removal/Etch 27%
Lithography27%
Metrology & Inspection
12%
Other6%
15 Source: Gartner 2015 and UCT estimates
External Use16
Growth StrategyIncreasing UCT Content on Platforms
Broaden CriticalProcess Capabilities
StrategicAcquisitions
Expand Customer Base
Deeper Engagementwith Existing Customers
Frames Machining Plastics
Prototype Machining
MachiningMetals
External Use17
Growing Suite of Critical Process Capabilities
Manufactured ComponentsChemical Delivery
Sub-Systems
Frames
Prototype Machining
MachiningMetals
Machining Plastics
Heaters
Sheet Metal Forming
3D Printing
Complete Assemblies
GasGASAssembly
Integration & Test
Liquid
AssemblyIntegration
& Test
Liquid
Sheet Metal Forming
Heaters 3D Printing
External Use18
Semi Industry Consolidation
54% 63% 63%
TOP 10CHIP COMPANIES
TOP 5WFE COMPANIES
77%
2010 2015(F) 2010 2015(F)
Source: Company Financials, SIA, Gartner 2015 and UCT estimates
• Large number of small, highly specialized suppliers
• Management of suppliers growing unwieldy given tech requirements
• Sustainability of some suppliers
• Short product cycles driving quality and delivery cost challenges
External Use19
Supply Chain Consolidation Opportunity
30%
TOP 10SUPPLIERS to WFE
35%
2010 2015(F)
Source: Company financials, UCT estimates
External Use20
UCT Business Model
KEY DIFFERENTIATORS
•Higher value capabilities
• Improved operational efficiencies
•Low capital requirements
OPERATING PROFIT DRIVERS• Revenue growth• Low operating expenses• Strategic acquisitions
GROSS MARGIN15% - 18%
Targeted
OPERATING MARGIN
8% - 10%
(in $ millions) Q4'14 Q1'15* Q2'15 Q3'15**
Sales $120.0 $125.3 $117.5 $122.8
Gross Profit $18.4 $19.9 $18.8 $18.9
Gross Profit % 15.3% 15.9% 16.0% 15.4%
Operating Income $6.1 $6.3 $4.8 $5.1
Operating income % 5.1% 5.1% 4.1% 4.1%
Cash $79.0 $69.6 $76.6 $59.7
Inventory $56.8 $59.9 $64.6 $75.6
Accounts Receivable $61.8 $69.6 $57.5 $57.3
External Use21
Select Financial Data
Pro forma financials adding back amortization. * Note: Q1'15 represents the first (partial) quarter of combined operations between UCT and Marchi. All prior quarters represent UCT operating results only.** Note: Q3'15 represents the first (partial) quarter of combined operations between UCT and Miconex. All prior quarters represent UCT operating results only
External Use22
Solid Cash Generation
YE 2011YE 2012
YE 2013YE 2014
$23.7$27.3
$30.0 $30.2
• Poised to outperform growth of Semi WFE market
• Targeting fastest growing market segments
• Delivering what customers need (OTD, quality, cost)
• Industry trends reinforce leading position as potential supply chain consolidator
• Becoming partner to key customers
External Use23
Compelling UCT Opportunity
WinningStrategy
Strong GrossMargins
Improving Profitability
Solid Cash Generation
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