Capital Deployment and M&A Highlights slide image

Capital Deployment and M&A Highlights

New M&A Announced November 2021 - IMG Key M&A Strategies Expand Portfolio of Proprietary Product Offerings Expand Served Markets and Geographic Footprint Gain Market Share with Key OEM Customers Expand and Diversify Customer Base Accretive to Gross and Operating Margins; Target Returns > WACC Transaction Highlights • About img Primary Market = Semiconductor • Other Markets include Defense, • • Medical, Aerospace • Revenue Growth Outgrowing these Non-Semi End Markets Primary Product Offering = Precision Machining Second-Largest Business is E-Beam and Laser Welding • Also Provides Brazing, Surface • Treatment, Ceramic Metallization, Precious Metal Coatings Five CA Locations, HQ in Livermore Strategic Benefits • Brings Ichor Additional Value-Added Engineering and Manufacturing Capability Provides Additional Capacity for Growth • Expands Our Portfolio of Higher-Margin Product Offerings . • Expands Our Served Markets • . • Both Semi and Non-Semi Expands and Diversifies Our Customer Base • Brings Recurring Revenue to Our Model • Accretive to Earnings and Operating Model Financial Impact • $270M Purchase Price . • Funded by $140M cash & securities on hand and $130M in incremental borrowing (recently expanded credit facility) • Closed in Q4 2021 • • Annual Expected Contribution: . Revenues $70-80M • EBITDA $20-22M • Expected Impact on 2022 Profitability: . EPS $0.32-$0.38 . • 100+ bp GM Increase • 40+bp Op. Margin Increase Note: Acquisition contribution amounts based on current industry activity levels and financial expectations on an annual basis, as disclosed in 11/16/2021 press release. ichor Proprietary 5
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