EXHIBIT 99
Published on January 12, 2006
Searchable text section of graphics shown above
[LOGO]
Safe Harbor Provision
During the course of this presentation, we will make projections or other forward-looking statements regarding future events or the future financial performance of the Company. We wish to caution you that such statements reflect only our current expectations, and that actual events or results may differ materially.
We refer you to the risk factors and cautionary language contained in the documents that the Company files from time to time with the Securities and Exchange Commission, specifically the Companys most recent S-3 Registration Statement and Form 10-K. Such documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. We undertake no obligation to update such projections or such forward-looking statements in the future.
2
Company Overview
TTM is a leading provider of time-critical and technologically complex printed circuit boards to the worlds leading electronic equipment designers and manufacturers.
Pure Play printed circuit board (PCB) manufacturer
Focused on time and technology service segments
Three production facilities:
Santa Ana, CA
Redmond, WA
Chippewa Falls, WI
$177 million in Sep 2005 YTD sales
1,688 employees
[GRAPHIC]
4
Investment Highlights
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Focused
Strategy |
Leader
in most attractive PCB segments time & technology |
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Demonstrated
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Strong
relationships with leading OEM and EMS customers |
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Industry
Leading |
Profitable
business model across cycle |
Market Leadership Focus Execution Performance
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Attractive Strategy
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Growth |
Early access to new customers with high-growth potential |
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Key supplier to high-growth programs within market leaders |
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Critical service for new product introduction across multiple industries |
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Limited |
Difficult business model to replicate |
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Significant technology expertise and investment required |
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Quick-turn, high-mix production subject to less competition |
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Performance |
Time & technology focus allows premium pricing |
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Leads to superior margins and profitability |
Consistent Strategic Focus Driving Growth and Profitability
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Electronic Equipment Landscape
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Electronic Equipment Orders |
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[CHART]
Steady growth since late 2002
Forecasted shipment growth for 2006 is 4.1%*
Limited inventories have provided quick turn opportunities
*Source: Henderson Ventures 12/2005
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Book-to-Bill Trends
Electronic Equipment & PCBs
[CHART]
Positive book-to-bill has increased backlogs
TTM outperforming industry, which indicates market share gain
PCB index typically lags Electronic Equipment index
Source: Department of Commerce, IPC (3 mon rolling avg)
9
PCB Competitive Landscape
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High |
PCs Computer peripherals Automotive Consumer electronics |
Cell phones Advanced PDAs Power supplies |
Limited product |
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Medium |
PCs Computer peripherals |
Low-end servers High-end computers |
High-end servers Telecom High-end |
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Low |
Misc. industrial Low-end aerospace/ |
Semicap equipment Medical equipment Aerospace/defense Instrumentation Industrial equipment |
Specialized High-end |
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North American PCB Market Overview
[CHART]
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Pure Play |
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(Independent) |
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Conglomerates |
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Integrated EMS |
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TTM |
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Tyco |
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DDi |
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Merix |
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EIT |
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Photocircuits |
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Sanmina-SCI |
TTM Benefiting from Ongoing Industry Consolidation
Source: FabFile Online.
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TTMs Strategy
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Customers
/ End Markets Diverse base of
industry
leading Early access to
emerging customers Global sales reach |
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Technology High
performance, technologically Advanced
manufacturing processes & Industry
leading avg. layer count of |
Industry Leading |
Time
Dedicated ultra-short lead time capability (<24 hours available) Dedicated,
highly flexible, ramp-to-volume High-mix
complex technology |
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Financial Strength
Focus on operational excellence Superior asset
management and Successful
integration of opportunistic |
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Facility Specialization Strategy
[CHART]
Mission Focused Facilities Speed, Flexibility, and Technology
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Current Facility Synergy
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Technology Focus |
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Chippewa Falls |
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[GRAPHIC] |
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Operational Excellence |
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Redmond |
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Santa Ana |
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[GRAPHIC] |
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[GRAPHIC] |
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Niche Focus |
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Time Focus |
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Broadened Core Strategy
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Technology Focus |
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Chippewa Falls |
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[GRAPHIC] |
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Redmond |
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Santa Ana |
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[GRAPHIC] |
Operational Excellence |
[GRAPHIC] |
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Niche Focus |
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Time Focus |
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Future Off-Shore |
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[GRAPHIC] |
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Low Cost Focus |
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Global Sales Reach
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Shipments |
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Sep. 2005 |
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Technical |
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Inventory |
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YTD |
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Sales Staff |
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Staff |
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Hubs |
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Europe |
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12 |
% |
3 |
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1 |
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1 |
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Asia & ROW |
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22 |
% |
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2 |
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North America |
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66 |
% |
83 |
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6 |
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Total |
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91 |
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13 |
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9 |
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Integrated Direct and Rep Network Driving Incremental Sales
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Customer Concentration
[CHART]
Increased Exposure to End Market Leaders
*Pro forma for the acquisition of Power Circuits, which occurred in July 1999.
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Revenue Chain
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End Markets |
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Customers |
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Channel |
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Enterprise I/T |
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High-End Computing |
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Networking/ Comms |
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48% |
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Top OEM
Cisco Hewlett-Packard IBM ITT Juniper |
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EMS Providers - 65%
Celestica Flextronics Jabil Plexus Solectron Others |
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TTM Technologies |
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Telecom |
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25% |
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Other End Markets |
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Indust./Med. - 15% |
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Peripherals - 5% |
27% |
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Handheld/Other - 7% |
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Shipped OEM-direct 35% |
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Sep 2005 YTD - % of total production revenues
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Key Customers by End Market
Percentage of Revenue by End Market Sep 2005 YTD
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Networking & Communications |
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46% |
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[LOGO] |
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High-End Computing |
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27% |
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[LOGO] |
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Industrial & Medical |
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15% |
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[LOGO] |
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Computer Peripherals |
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5% |
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[LOGO] |
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Handheld & Other |
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7% |
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[LOGO] |
Approximately 575 Active Customers
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Compelling Growth Opportunities
One-stop manufacturing solution with numerous cross-selling opportunities
Quick-turn capabilities for attracting emerging high-growth customers
Leadership in technology and advanced manufacturing processes
Capacity available through low risk, low cost expansion plan
Successful track record of completing and integrating acquisitions
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Annual EBITDA and EBITDA Margin*
[CHART]
* Please see Appendix for EBITDA reconciliation. EBITDA means earnings before interest expense (including amortization of debt issuance costs), income taxes, depreciation and amortization.
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Quarterly EBITDA and EBITDA Margin*
[CHART]
* Please see Appendix for EBITDA reconciliation. EBITDA means earnings before interest expense (including amortization of debt issuance costs), income taxes, depreciation and amortization.
28
Quarterly Results And Estimates
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2004 |
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2005 |
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1Q |
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2Q |
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3Q |
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4Q |
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1Q |
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2Q |
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3Q |
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4QE |
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Sales |
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$ |
57.7 |
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$ |
61.6 |
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$ |
62.2 |
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$ |
59.2 |
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$ |
58.9 |
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$ |
57.2 |
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$ |
61.0 |
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$60.0 - $63.0 |
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Gross Profit |
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17.3 |
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19.1 |
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17.6 |
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14.6 |
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13.5 |
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11.0 |
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14.2 |
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% Margin |
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30 |
% |
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% |
28 |
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25 |
% |
23 |
% |
19 |
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23 |
% |
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Operating Income |
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10.4 |
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11.4 |
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12.1 |
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8.9 |
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6.8 |
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5.6 |
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5.9 |
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GAAP Diluted EPS |
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$ |
0.15 |
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$ |
0.17 |
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$ |
0.19 |
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0.16 |
** |
$ |
0.11 |
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$ |
0.08 |
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$ |
0.10 |
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$0.11 - $0.14 |
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Operating Cash Flow |
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$ |
7.5 |
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$ |
14.1 |
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$ |
17.8 |
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$ |
9.4 |
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$ |
5.5 |
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$ |
3.7 |
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$ |
9.1 |
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Inventory Turns |
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17 |
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17 |
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21 |
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21 |
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18 |
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18 |
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16 |
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$ Millions, except per share data
*Earnings before interest expense (including amortization of debt issuance costs), income taxes and amortization.
**Excluding reversal of deferred tax asset, diluted EPS would have been $0.14
29
Well Capitalized for Growth
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$ Millions |
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12/31/2004 |
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10/3/2005 |
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Cash and short-term investments |
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$ |
58.5 |
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$ |
71.1 |
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Accounts receivable, net |
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$ |
35.8 |
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$ |
39.3 |
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Inventories, net |
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$ |
9.0 |
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$ |
11.8 |
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Net property, plant and equipment |
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$ |
52.2 |
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$ |
53.1 |
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Other assets |
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$ |
80.3 |
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$ |
79.0 |
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Total assets |
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$ |
235.8 |
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$ |
254.3 |
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Accounts payable |
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$ |
9.5 |
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$ |
9.7 |
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Other current liabilities |
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$ |
14.2 |
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$ |
14.6 |
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Long-term liabilities |
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$ |
0.5 |
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$ |
5.2 |
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Stockholders equity |
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$ |
211.6 |
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$ |
224.8 |
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Total liabilities and stockholders equity |
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$ |
235.8 |
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$ |
254.3 |
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30
Conclusion
Solid industry fundamentals
Focused strategy and strong market position
Demonstrated execution excellence
Industry leading financial performance
31
Annual EBITDA Reconciliation
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1998 |
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1999 |
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2000 |
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2001 |
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2002 |
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2003 |
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2004 |
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Net Income (loss) |
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$ |
8.4 |
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$ |
(0.2 |
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$ |
28.1 |
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$ |
11.0 |
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$ |
1.6 |
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$ |
7.4 |
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$ |
28.3 |
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Add back items: |
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Income taxes |
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(5.0 |
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6.2 |
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(2.3 |
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3.9 |
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13.2 |
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Interest expense |
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0.9 |
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10.4 |
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12.2 |
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2.6 |
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1.1 |
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0.6 |
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0.4 |
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Amortization of debt issuance costs |
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0.1 |
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0.8 |
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0.7 |
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0.1 |
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0.1 |
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0.1 |
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0.2 |
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Depreciation of property, plant, and equipment |
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3.0 |
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3.6 |
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5.5 |
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8.3 |
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8.8 |
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7.8 |
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8.2 |
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Amortization of intangibles |
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2.2 |
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4.8 |
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4.8 |
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1.2 |
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1.3 |
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1.3 |
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Total Add back items |
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4.0 |
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17.1 |
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18.2 |
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22.0 |
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8.9 |
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13.7 |
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23.3 |
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EBITDA |
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12.4 |
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16.8 |
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46.3 |
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33.0 |
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10.5 |
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21.1 |
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51.6 |
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Quarterly EBITDA Reconciliation
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2003 |
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2004 |
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2005 |
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3 Q |
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4 Q |
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1 Q |
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2 Q |
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3 Q |
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4 Q |
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1 Q |
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2 Q |
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3 Q |
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Net Income (loss) |
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$ |
2.5 |
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$ |
4.7 |
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$ |
6.5 |
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$ |
6.9 |
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$ |
8.0 |
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$ |
6.9 |
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$ |
4.5 |
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$ |
3.3 |
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$ |
4.1 |
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Add back items: |
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Income taxes |
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1.4 |
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2.8 |
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3.9 |
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4.1 |
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3.6 |
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1.6 |
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2.7 |
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1.9 |
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2.4 |
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Interest expense |
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0.1 |
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0.1 |
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0.1 |
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0.1 |
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0.1 |
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0.1 |
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0.1 |
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0.1 |
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Amortization of debt issuance costs |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
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0.1 |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
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Depreciation of property, plant, and equipment |
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1.9 |
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2.0 |
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2.0 |
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2.1 |
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2.1 |
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2.1 |
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2.1 |
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2.3 |
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2.3 |
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Amortization of intangibles |
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0.3 |
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0.3 |
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0.3 |
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0.3 |
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0.3 |
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0.3 |
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0.3 |
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0.3 |
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0.3 |
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Total Add back items |
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3.7 |
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5.2 |
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6.3 |
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6.6 |
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6.2 |
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4.1 |
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5.2 |
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4.6 |
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5.0 |
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EBITDA |
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6.2 |
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9.9 |
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12.8 |
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13.5 |
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14.2 |
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11.0 |
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9.7 |
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7.9 |
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9.1 |
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35