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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.
UCT Confidential2
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
UCT Confidential3
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
UCT Confidential
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
UCT Confidential
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
UCT Confidential
Key Customers & Markets
UCT Confidential7
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
UCT Confidential8
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
UCT Confidential9
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
UCT Confidential10
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
UCT Confidential11
Selected Income Statement Data
UCT Confidential12
($ 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
UCT Confidential13
* 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
UCT Confidential14
($ 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
UCT Confidential15
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
UCT Confidential16
Thank You!