Advancing Semiconductor Manufacturing Technology Fall 2018
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, and those regarding our expected financial results for fourth quarter of 2018 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 Non-GAAP Management uses non-GAAP net income and non-GAAP net income per diluted share to evaluate the Company's operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included in the Appendix. 2
Investment Highlights Capitalizing on opportunities in equipment manufacturing, parts cleaning, microcontamination analysis Flexible, vertically integrated model supports significant growth and creates high barriers to entry Key customers (OEM & IDM) enabling robust organic growth opportunities Increasing recurring revenues driving financial leverage and strong operating profitability Accelerating share growth through acquisitions 3
Expert Outsourcing Partner Global network Comprehensive new of strategic product introduction suppliers process SUPPLY CHAIN MANAGEMENT MANUFACTURING MANUFACTURING ENGINEERING INTEGRATION & TEST Partnering with Subsystem Highly integrated, customers on through full new products tool integration one-stop, full spectrum solution PROTOTYPING/ for semi customers DEVELOPMENT CLEANING & ANALYSIS tool chamber parts cleaning and coating, microcontamination Design for analytical services manufacturability (DFM) 4 PAGE:
Driving UCT’s Rapid Financial Growth Historical Revenue and Adjusted EBITDA Margin (1) FY 2017 Revenue Breakdown (1) ($Millions) (% margin) 18% $1,200 Europe Others $924 4% 6% 12% $800 United Singapore 11.7% $563 31% States $469 55% 7.6% 6% $400 China 4% 5.1% $0 0% 2015 2016 2017 5
Key Customers Enable Organic Growth FACTORY TRANSFER INTERFACE CHAMBER GAS PANEL PROCESS CHAMBER UCT’s solutions provide avenues for organic market expansion going forward * Based on UCT internal estimates 6
UCT Supplies Critical Elements of the Semiconductor Manufacturing Process Semi Manufacturing Process Prep Front-end Processing Back-end Processing Photo- Litho- Epitaxial resist graphy CMP CMP Etch Certain Steps Package Repeated and Test 20x – 30x Depos- Slicing Implant ition Ingot Clean Process step with liquid Process step with gas delivery Core UCT offering delivery Source: Company Information. 9
Leading Manufacturer in a Highly Fragmented Supply Chain Semi Equipment Revenue Scale is Difficult to Achieve Thousands of additional suppliers A CM- CM-A B CM-B C D E F CM-C G H CM-D I J K L M N O P Q R S T U V W UCT Manufacturers Specialty Manufacturer Contract Manfacturer Scale positions UCT to provide differentiated, comprehensive global solutions. Source: VLSI 2017 Critical Subsystems Market Share (excludes pump and optic suppliers), UCT internal estimates. 10
Growth Strategy 1 Target core semi customers who require high capacity solutions to deliver copy-exact services 2 Scale operations to capitalize on market growth (close to customers) 3 Increase content on customers’ platforms; expand cleaning and analytical services 4 Accelerate share growth through acquisitions 11
Disciplined Track Record in Executing Acquisitions American Integration Technologies (AIT) Jul Feb Aug Sep 2012 2015 2015 2018 Added to customer base & Facilitated vertical Bolstered chemical Expand customer base and expanded manufacturing integration in chemical delivery offering; capitalize on recurring capabilities and gas delivery revenue stream Purchase Price: $100.3mm Purchase Price: $43.6mm Purchase Price: $22.8mm Purchase Price: $342mm EV / EBITDA: ~5.0x EV / EBITDA: ~11.8x EV / EBITDA: ~6.2x EV / EBITDA: ~6.6x PF Debt / EBITDA: ~1.5X PF Debt / EBITDA: ~2.2x PF Debt / EBITDA: ~3.7x PF Debt / EBITDA: ~2.2x Strategic M&A; targets accretive to earnings with recurring cash flows Source: Company materials, Company filings and website. 12
Quantum Global Technologies at a Glance Business Overview FY 2017 Revenue Breakdown Headquarters: Quakertown, PA Segment Breakdown Geography Breakdown Founded: 2000 Employees: ~ 1,800 ChemTrace Asia 11% 31% Business Description: Largest global outsourced provider of cleaning, coating and refurbishment (“CCR”) United and micro-contamination analytical lab services to the States semiconductor industry EMEA 66% QuantumClean 3% Operates in two segments: 89% Outsourced Parts Cleaning – QuantumClean ❑ Leader in cleaning of sub-14nm process parts with ▪ Historical Revenue and Adj. EBITDA Margin estimated 33% of market share 18 Advance Technology Cleaning Centers ▪ ($mm) (% margin) 4,000+ production cleaning and recoating methods ▪ $300 36% Recurring revenues from Fabs (IDMs) and OEMs ▪ $218 Analytical lab services – ChemTrace ❑ $185 $200 $179 24% Four micro-contamination analytical laboratories ▪ 23.2% Recurring revenues from the semiconductor and ▪ solar industries 17.8% $100 12% Growth Drivers 17.0% ❑ Total Wafer Starts / IC Production $0 0% ❑ Increased utilization of equipment 2015 2016 2017 Source: Company information. 13
Quantum – A Compelling Transaction Platform investment enhances UCT’s position as a differentiated 1 global solutions provider to the semiconductor industry Expands UCT into a complementary adjacent market that broadens 2 addressable market Increases durability and recurring nature of revenues; positioned for 3 growth as semiconductors become increasingly pervasive 4 Vertically integrated portfolio strengthens barriers to entry 5 Accretive to margins and free cash flow with attractive coverage ratios 14
QGT’s Services and Capabilities All Semiconductor Manufacturing Processes Served Chemical Physical Atomic Layer Diffusion Etching Lithography Implant Subfab Vapor Vapor Deposition Deposition Deposition Services Performed Materials Cleaned • Ultra-High purity, validated parts cleaning Metals Aluminum • Performance coatings Stainless Steel • Titanium Quartz fabrication and repair • Refurbishment and rebuilding Ceramics Alumina • Complex analytical and engineering services Quartz • On-site logistics and support Silicon Silicon Carbide Ta Coated Shield Etch Other Anodized Aluminum Coated materials Pre-Clean Post-Clean Before and After Clean Source: Company information. 15
QGT has a Diverse Semiconductor Customer Base Key QGT Growth Drivers 2016 2017 Wafer starts per year & global IC production: • Semiconductor demand: Top 4 IDMs 56% 53% – 280bn IC Units in 2017 Top 3 OEMs 28% 31% – 7.2% CAGR from 2012-2017 – Projected to reach $503bn by 2020E Top 2 Foundries 4% 5% • Progression of node geometries: All Other 12% 11% – 250% projected growth 2016-2019 for sub- 14nm silicon wafers Revenue $185M $218M – Forecast of 3,000+ MSI by 2020 Engagements across semiconductor value chain increases resilience Source: Company information. Numbers have been rounded 17
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