All right. Well, thanks, everyone. Welcome to TTM Technologies Analyst and Investor Day here in Farmingdale. Appreciate everybody coming out. It's a good crowd today. This is our first Analyst Day since 2018. We have a lot to update all of you on. I'm pretty excited to have all of you here, as well as our executives will be presenting. Quick, couple of quick points on the agenda today. First, we're gonna start with kind of the strategic update, the vision, the overview of the day. We'll move into the businesses, first with the commercial sector. We'll feature some of the commercial end markets, networking, data center, computing, as well as automotive, medical, industrial, and instrumentation. We'll move on to Aerospace & Defense, the sector, as well as the engineering strategy. We'll move on to operations, finance, and then we'll finish up at around 12:30 P.M. with the presentations. We'll do Q&A for the whole group for about 30 minutes. Just another point, this is being webcast as well. Those of you who are on the webcast can ask a question by clicking on the box on the upper right corner where it says, you know, "Ask a question," and we'll read those questions aloud in the room. After the Q&A, we'll do a lunch right here next door in the cafeteria from 1:00 P.M. to 2:00 P.M., and then we'll do a tour for those of you who have time here from 2:00 P.M. to 3:00 P.M., and we'll be done by 3:00 P.M. today. A couple of other points, Wi-Fi access is on your tables with cards. You've got power outlets, and then there's restrooms. If you need to use the restrooms, if you go out this door and you make a left, you'll see the signs for the restrooms. We also have these printed circuit boards up here for anyone to take a look at, you know, when we kind of break later for lunch, if you want to take a look at those. I think I covered everything. Todd, did I miss anything? We got the safe harbor statements a little bit here, and then, I'm going to hand it over to Tom next to talk about the strategic update and vision. Thank you, Sameer. Morning, everybody. Welcome. Good morning. Yeah, it's great to have you in our facility here in Farmingdale. We're excited to present our strategy to you today, introduce the executive team members, and then that tour, which should be a real highlight for the day. Those of you joining us virtually, I'd also like to welcome you as well. Let me get started. Most of you have seen this slide, really provides some background on TTM. We are a leading technology solutions provider of mission systems, PCBs, and specialty components. We are serving a set of diverse end markets that we will go through today, including data center and semiconductor, networking, aerospace and defense, the medical, industrial, instrumentation area, and automotive. As a company, we have 27 facilities today. Now, that will be down to 23 facilities by the end of the year. We are consolidating facilities, two facilities in California, one in Hong Kong, and we have sold our Shanghai backplane facility. We'll be down to 23 at the end of the year. 17,800 employees at the end of last year. That's down now to about 16,500 employees as we deal with a softer commercial market. From a scale standpoint, about $2.5 billion in revenue. A little bit on the history of TTM. We started out with approximately $70 million, a little bit more than $70 million in revenue. We've grown that to $2.5 billion today. I wanted to cover some of the key events that have occurred historically for TTM as we built our strategy. The first was the acquisition of Tyco Printed Circuit Board Group. That really established us inside of aerospace and defense with a strong PCB position. We supplemented that capability with an Asia production base with the acquisition of Meadville. That was in 2010. In 2015, we acquired Viasystems. That really brought us our industrial position, automotive position as well, and strengthened our aerospace and defense position in printed circuit boards. Really established us as the leading provider of printed circuit boards in North America. From there, we had really consolidated, at that point, the printed circuit board position in North America. We were pleased with our global position in printed circuit boards, so we started to look at adjacent areas to grow, with a focus on aerospace and defense. In 2018, we acquired Anaren. Anaren really brought us the RF position to the company, the build to specification capabilities with a strong engineering base. Last year, we acquired Telephonics, including, of course, the facility that you're in today. That really brought us our tier one position in mission systems, and particularly strengthened our radar area, tying directly to our RF expertise, as well as bringing us into new markets in communications and surveillance. That's the TTM that you have in front of you today, and we'll continue that journey going forward. What is this about? First of all, as TTM, we have focused on removing or changing our portfolio and adapting that portfolio in line with our strategy. That meant divesting of our mobility business in 2020, which was directly exposed to the consumer business and was more seasonal, as well as exiting some of the more commoditized commercial assembly businesses that we had been involved with, closing down facilities in 2020, and then selling our Shanghai assembly facility this year. At the same time, we have been investing in engineering capability. Anaren, Telephonics, critical to that direction, as well as strengthening our footprint with the establishment of the Penang, Malaysia facility. The result, really the goal here, is to deliver a highly valued package to our customers and bring stability in terms of our operating margin performance, our cash flow, as we go forward. We're on that journey, and we'll continue that journey going forward. Since 2018 Analyst Day, I just wanted to highlight some of the progress that we have made since then. First of all, organic revenue growth. If you look at our organic revenue growth, we have grown at 6.8%. That's above the mid-single digit area that we were discussing at that Analyst Day. Acquisitions. I've already talked about the two acquisitions, Anaren and Telephonics, that have been critical, as well as we've been focusing on the acquisition piece of our portfolio. Differentiation can keep adding to that technology breadth as well as the footprint diversification that we've been involved with. Then with the focus on engineering and operating excellence, also delivering strong cash flow, 11% for the company in terms of cash flow, and then building on operating margin. We have improved our operating margin over time since then. We still have work to do there, and we'll talk today about our targets in terms of operating margin going forward. Backing up a bit, I just wanted to lay out for you the strategic foundation, and what I'm about to present is what we present to our employees at every communication meeting, we present to our customers as well, and you'll see it generally in our facilities at different locations. Starting with the vision, the vision to inspire innovation as a global, preeminent technology solutions company. That's for our customers, and we cover that in our mission. Providing customers with market-leading, differentiated solutions and an extraordinary customer experience built on our KPI performance as a company. Strategically, we focus on three different areas: investment, where are we going to be investing in any given year? That's both organic and inorganic. Where are we focused on performance, generally aligned with our KPIs, and a focus on KPIs operationally, as well as building our engineering performance. Appeal, this is all about attracting the right employees to the organization and retaining those employees. What we emphasize is our set of core values that underlie our performance as a company. Those values are related to integrity, teamwork, clear communication, which is what we're about today, and then a focus on performance excellence as a company. We also talk to our employees about where we are in terms of our strategy and what we are doing in the short term about it. This is a year that we view as a year of critical transition. One key feature of that is, yes, we have a commercial sector that is facing some end-market challenges in terms of demand, so we are taking cost actions and have taken cost actions. At the same time, Doug and his team are focused on opportunities in terms of market share. Where can we gain critical market share positions on key programs? You could see that with the automotive program bookings that we announced last quarter at $267 million in lifetime program value. That positions us for the future, and that follows a fourth quarter of also very strong performance in terms of program wins. That's a key area that positions us again, for the future direction in the commercial sector. We also are focused on responding to a record backlog in aerospace and defense, $1.38 billion. That's backlog that we need to now execute against. As we look at A&D, Cathy will be talking to you about how we have aligned our aerospace and defense organization with the mission priorities of our customers, thinking as our customers do about critical program areas and aligning with those critical programs in terms of our portfolio of capability. Secondly, enhancing supply chain management. This is a critical and urgent priority for us, and that is a focus for us in terms of integrated electronics or our non-PCB portion of aerospace and defense. We'll be speaking more about that. Phil will be covering that today, a critical area of focus. Delivering on the Telephonics synergies. We're well on the way there in terms of delivering against the cost synergy goals of $12 million. We also have revenue synergy goals related to product development and the combination of the two companies. Again, Rich and Cathy will be speaking more about our plans there. It's a successful facility consolidation. Of course, we made the announcements about facility closures. We have closed at this point, our Hong Kong facility, but our California facilities are still in operation through the course of this year. We need to transition that business into our other facilities, and that's an intensive process of working with our customers as we transition. We are presently involved in that process, and that process will continue through the course of the year. All of this resulting in a focus on incremental improvement in our operational performance in our Aerospace and Defense business. Finally, our Penang startup. We need to start up the facility in Penang on time. We have a handful of customers who have signed long-term agreements with deposits. They are relying on this facility. We need to execute against that promise and begin production in the fourth quarter for qualification with critical customers. So far, so good on this, but a lot of attention being paid to Penang. Those are the three priority areas, again, that we've highlighted for our employees, and I wanted to highlight for you all today. We couple that, of course, with the longer-term M&A priorities. As a company, those have not changed. Our corporate strategy really driven by improving differentiation overall for the company, continuing on that path, adding new product and technology capabilities, and of course, an emphasis on Aerospace & Defense. Moving that business mix from 43% to 45% today, towards 50% or half of the business in the future. When we look specifically at the commercial sector, we're looking to long-term add RF to our RF component business and at that expertise, as well as looking at footprint differentiation, continuing to build on the supply chain resiliency needs and responding to those needs from our customers. Aerospace and defense, engineered subsystems, right? That focus on RF microwave and microelectronics. Terrific opportunities there we need that, again, our M&A strategy will be focused on. We are committed to sustainable business practices as an organization. We did publish our first corporate social responsibility report in 2022. Emphasis in that report on corporate governance, which we've always been proud of. A strong, diverse, independent board of directors, an emphasis on cybersecurity, that's always been an emphasis for us for our defense business and for the company overall, combined with a commitment on environmental. Phil will go through this further later today, but I did want to highlight, we have an environmental policy that forms the foundation for us on environmental. We are committed to waste reduction, we're committed to energy reductions as well, finally, water consumption and water recycling as a critical component of our manufacturing. If you look to alternative energy, we are also starting to incorporate solar into our facility operations, starting with Penang will have the largest rooftop solar installation in all of Malaysia. That's the kind of commitment that we are making here to alternative energy. On the social side, our commitment to diversification, a diverse workforce and an inclusive workforce is critical. We have a DEI organization that spans our North America footprint. We also, I'm just really excited to say, have seen a spawning of ERGs or employee resource groups throughout our organization that are also part of this inclusive effort by our employees to mentor others in the organization. Terrific to see. We have also, we'll continue to publish and internally look at our data as it relates to diversity. Again, strong third-party recognition of our efforts, ISS scoring of a 2 on a scale of 10. Of course, the lower numbers are positive, really thrilled to see that ISS as well is recognizing our efforts in this area. With that, I wanted to introduce you to the speakers today, starting with the commercial sector. Doug Soder is our Executive Vice President of the Commercial Sector. Anthony Sandeen is our Vice President of Automotive, Medical, Industrial, and Instrumentation. They will be presenting to you on the commercial sector. On the A&D side, Cathy Gridley is our Executive Vice President for Aerospace and Defense. Rich Hines is our Vice President for Engineering for Aerospace and Defense, Rich will also be leading the tour later today. Phil Titterton, Chief Operating Officer, Todd Schull, you all know, as our Chief Financial Officer. I also wanted to recognize Dan Weber in the back of the room. Dan Weber is our Chief Legal Officer and our General Counsel. Okay? Then I'm going to just leave the stage here with a set of key messages that I hope will be takeaways for you from today's Analyst Day. Number one, that we are focused on the right areas, the right sub-markets inside of each of our end markets that will help to drive growth for TTM above the forecasted rates of growth for those markets. We have, again, the right acquisition strategy, as demonstrated by Telephonics and what you will learn about Telephonics and our Aerospace and Defense business today. That from a differentiation standpoint, that we have the right set of technologies, that we will form a foundation that we will continue to build on, and that our manufacturing footprint is a fantastic fit for our customer base, and again, an area for further improvement. And then finally, from an operating performance and an engineering performance, that we are able to, as we go forward, demonstrate consistent and improved cash flow, as you have been seeing, and that we also have the right product mix to demonstrate improved operating margin for the company here going forward. And with that, I'll turn the presentation over to Doug Soder, Executive Vice President of the Commercial Sector. Doug? Okay. Thank you, Tom. Good morning, everyone. My name is Doug Soder, and I'm the President of the Commercial Sector. Before I start, I just wanted to give you a little bit of background on myself. I've been in the industry, about 40 years. I started with AMP Incorporated in the connector business and then moved into PCBs with Tyco, became a part of Tyco Printed Circuit Group with the acquisition in 2006. Since I've been with TTM, I've had responsibilities for global sales, I ran our former North America business unit, and now, most recently, the commercial sector. That's what I'm gonna talk to you about today. Really excited to have this opportunity to update you on our commercial sector, and I'm gonna be highlighting some of our recent track record growth, as well as successes, and we've been outperforming the market. I'm also then gonna switch gears and walk you through our data center computing business, as well as our networking markets. Then I'll hand off to Anthony, and he'll walk you through automotive, medical, industrial, and instrumentation. Let's start just with the commercial sector at a glance. Our mission across the commercial sector is to provide our customers with advanced technology, printed circuit boards, with RF and Specialty Components, and with differentiated technology solutions across all of our targeted markets. In 2022, our revenue was $1.6 billion. You can see how that broke out in the pie chart, led by medical, industrial, and instrumentation, followed by automotive, and then data center and networking. To the right, I've shown you the reference serviceable available market from Prismark. The difference between the TAM and the SAM from Prismark is we've excluded commodity PCBs as well as substrates, neither of which are focus areas of business for the commercial sector. Across the bottom, we have pictures in the middle of the RF and Specialty Components, on the right, some examples of the analysis and testing services we do for our customers, in this case, signal integrity and power analysis. On the right, a picture of an advanced technology PCB. It really doesn't do justice. I had an opportunity to show some of you earlier some of our boards. Anthony, if you could stand up here. Well, just when we talk about advanced technology printed circuit boards, you really need to see some of this product to appreciate the complexity and how complicated these products are. Anthony's got a networking line card in his hand that he will walk through and show you. We've also got a variety of other products. out there, and we can walk through during the break, but we've got supercomputing for AI. We've got examples of downhole technology. We've got a number of automotive radar boards as well, and a very complex substrate testing board as well. I'd encourage you to take some look at that product as you have breaks today. Very impressive, and it helps put in context what we're talking about. Now, the Commercial Sector is really a fully functioning business. I've got reporting to me three business units. Anthony runs the Automotive, Medical, Industrial, Instrumentation. We also have the Communications and Computing business, the RF and Specialty Components business, as well as Corporate Sales, Commercial Technology, and Marketing, and then what we call Customer Relationship and Business Support, and this is really our customer service, our program management, and sales operation group. In addition, we have close alignment with Phil and his operations team. We have functional partners from Finance, HR, Legal, and IT. In the commercial sector, we are highly focused and attuned to a number of very important mega trends that are affecting our business. They're creating growth opportunities and some really exciting opportunities for us going forward across each of our end markets. This first one that comes out is the two items, the Internet of Everything and the increasing electronic content across our AMII markets. You can see some of the areas where this creates opportunity, and Anthony will go into more detail, but in automotive, it's in areas like electric vehicles and ADAS and vehicle-to-everything communications. In medical, it's the continued advancement of medical testing and diagnostics equipment, as well as robotics, and for patients, wearables and implantables. Excuse me. Then in industrial, we have continued advancements in factory automation, something we're taking full advantage of in Penang. Second set of major opportunities for us is the ongoing explosive growth of data, and what that's driving in terms of needs for more signal speed and more bandwidth, and in turn, what that's doing in terms of the requirements for managing data and high-performance computer, as we see in our data centers. In terms of opportunities for us, we're focused on our hyperscale data center and our cloud computing customers, all of which are seeing rapid growth and opportunities for us, driven by AI, Machine Learning, Large Language Models, and of course, has been in the news so much here in the last month or so, the Generative AI. I'll talk more about that later. Let me take just a minute to review our outperformance since 2019 in the commercial sector. You can see during this period of time, we grew 35%. When you compare that to the reference Prismark SAM, you can see that our compound annual growth rate was 10.6%, compared to the Prismark reference at 9.4%. I think it's notable to remember that this type of growth and outperformance was achieved in the face of some heretofore and previously never-witnessed challenges and upheaval that came out of COVID-19. We had wild demand swings, we had massive supply chain disruptions, and we saw the emergence of inflation. Critical to our ability to put up that track record is a disciplined commitment to selling TTM differentiation to our customers, and it starts with our reputation. TTM is well known across these markets and has decades of track record, during which time we have really distinguished ourselves for customer performance and service, and are known for our financial strength and financial discipline. The second differentiator is technology solutions. By this, I mean, our focus on early engagement selling. We get with our engineers and our customers early, we understand their concepts, we collaborate with them on their roadmap. Ultimately, we help them to develop new products to address their needs and to create higher ASP products and revenue streams for TTM. The third differentiator is what we believe is a largely unique, coordinated global sales model. Our sales force includes global account management teams, it includes regional sales personnel, and it includes global field application engineers. Typically, for a major customer, our global account management team will serve as a quarterback, so to speak, and they will coordinate how we use those various teammates in support of customers, many of which who have multiple locations around the world, as well as a complex network of EMS and ODM partners that we need to coordinate to be able to successfully manage their business. Last but not least is our global footprint. This is a real unique advantage for us, and it means different things to different customers. For example, we have customers that take advantage of multiple plants to support new product introduction through production. We have other customers that take advantage of multiple plants because they want to have capacity, surge protection, and flexibility options. Others view our regional footprint as an asset because they can use it to protect IP concerns, or more recently, a lot of focus on supply chain resiliency. Lastly, buttressing these differentiation factors is a disciplined operating model. First and foremost, we are customer-focused. Our business units operate very closely with operations, and we pursue everything with agility and speed to execute for the customers. In addition, on the strategic investment side, supply chain resiliency, a perfect example of this is the investments we're making in Penang right now. TTM is the first mover in Southeast Asia. Our customers are extremely excited, and so are we. This is gonna create a brand-new area of competitive advantage for TTM going forward. Tom talked about some of the M&A initiatives for commercial sector, which are really about continuing to build regional presence and strategic capability there, as well as building out our RF and specialty components business. Let me shift gears here and talk now from this point on, about our data center computing and networking businesses. First, a bit about the names. The data center computing is largely data center customers, but it also includes a portion of semiconductor customers. You can see some of the names and logos at the bottom there with examples of those customers. On the networking side, this business is primarily just that, networking, but it also includes telecom infrastructure customers. That has largely become more of a niche business for us, and I'll spend a little bit of time talking about that in a subsequent slide. Across these markets, we did $665 million of revenue last year, servicing 395 customers. Again, we've put a representative listing of some of the customers we work with in each of those end markets, many leaders in both sides. One of the keys to our success has been very long-term relationships and deep relationships with a number of these leading customers. Now let me take you through how we view the data center and networking portions of these markets. I'm gonna start with a walkthrough of the TAM and SAM numbers from Prismark and compound annual growth or rates for these markets. I'll talk about some of the submarkets we're focused on and the growth drivers that make those markets exciting for us. First of all, data center. Prismark refers to this as server storage, and you can see, 2019, the total available market was about $5 billion, with a forecast to grow to $12.3 billion by 2025. Above the bars, you can see the three-year CAGRs going backwards and forward for the total available market. When we look at the SAM, taking out the substrate and the commodity boards, you can see that market goes from 3.6 to $6.8 billion. Again, the reference compound annual growth rates. Shifting to networking, what Prismark refers to as wired infrastructure, the TAM, $4.7 billion in 2019, with a forecast to be $7.6 billion by 2025. Again, the reference CAGRs. Looking at the SAM portion of that, $3.6 billion to $5.2 billion. With those figures in mind, I would like to shift your attention to the right, and you can look at two of the submarkets that we are highly focused on, hyperscale and cloud data centers. A couple interesting facts. When you look at the cloud service provider business, it's now forecast that cloud service providers will account for more than 50% of all server revenue by the end of this year. The data center overall will account for 50% of all switch revenue by the end of next year. Looking at the bottom, some exciting growth drivers. Cloud computing spend, five-year CAGR, 2022-2027, 10.5%. When you look at the cloud server revenue portion of that business, 11.8% CAGR over that five-year period. To the right, artificial intelligence-related hardware, CAGR of 20.5% during this period, and then artificial intelligence, machine learning, networking gear, switches, routers, almost 40% CAGR over the next five years. As a result of this focus, we have substantially outperformed the greater data center computing, as well as the focused data center market during this time period. You can see here on the left, looking at our total data center computing, that first market that I discussed with you, revenues grew from $237 to $378 over this period of time, and we outperformed the reference Prismark CAGR, 16.8% to 9.2%, during which time our share grew from 3.6% to 4.4%. If we look at just the data center business alone, our business has grown from $170 million in 2019 to $295 million in 2022. There you see that the three-year CAGR jumps to 20.1% versus the Prismark reference at 3.4%, and our share has grown to 5.3% in this market. Now, when we talk about the networking side of things, it's a different story, but it's still an attractive story for us. I mentioned earlier, we have really made telecom infrastructure more of a niche market for us. We've also become much more focused in our networking business and shed a lot of the commodity business that we saw in that market as well. The reason for the niche focus in telecom is the PCB requirements and the nature of that business has largely become commoditized over the last four or five years. As you can see, when we look at that overall market, we actually had a negative 1% 3-year CAGR compared to the market at 9.8%, and our share fell 3.8%. When we look at networking, even with that selective approach and focusing more on the high end, where we really see some fertile soil, customers that value our technology offering, our differentiation, and really have a need for our technology solutions, we've been able to have a 5.4% compound annual growth rate through this selective approach. The other thing that's attractive to us out of this is that technology that we see in these highest-end switches and routers is really technology we can apply across our data center business as well as our other commercial sector end markets. Let me move on to our growth strategies for this business. I've talked a lot about focus today, focusing on the fastest-growing submarkets and customers, and the customers that have the needs for our advanced technology requirements. I'd like to share with you the rest of our list, and there's five on this. The second is to grow our customer base. We are focused every year on growing our customer list across all of our markets. For the reasons I've shared already today, we have a lot of focus on that, obviously, in data center, and that can be with new OEMs or also their ODM partners. Gaining market share. In that networking business I just discussed, that really entails growth through our maintained leadership position. In data center, it's capitalizing on that rapid growth to grow faster than market with our existing and new customers. Cross-selling. Now, how can we take our PCB leadership position and our RF&S specialty components and look at selling product solutions across customers and end markets, or combinations of those to create unique product solutions for our customers? All of that together are pursuing those strategic program wins that Tom talked about. You know, pulling it together to win the programs to give us long-term revenue streams that are attractive ASP programs for TTM. Lastly, executing that differentiation to deliver value-add solutions, whether it's the technology solutions through the production or executing the global sales force or the global footprint. I've also talked about technology solutions, a number of times today, and I'd like to take this opportunity just to give you an example of what that might look like. You know, we talk about it generally, it can be reviewing where are the product concepts going, what's your roadmap look like? Eventually, you gotta get to down to, what are your product needs? In this case, I'm talking about a hypothetical situation where we'd be working with engineers on the data center customer. On the left, you see a rendering of a typical data center architecture, starting with your rack of servers on the bottom, your top of rack switches, your leaf switches, your spine, and then your core switches, which allow data centers to communicate with each other. On the right, you can see what we're depicting here is making that step from 400 gig switches to 800 gigabit switches. When you get into that discussion, you really have to start to look at a number of factors, and this is what our FAEs would be doing with our customers. What are the materials required to support these new PCBs and these new switches? What type of board size are we looking at? What kind of layer counts? What are the drilling and plating requirements and specifications? Do we need to entail sequential lamination? Is there high-density interconnect? Are there requirements for smoother copper technology to be able to support the signal speeds and the signal integrity? What are your testing requirements, not only for quality, but for reliability? When you think of the end-use application and customers of these data centers, they cannot afford to go down, and our boards are a key part of that. These customers have very stringent requirements for reliability testing. This is a type of example we would get into in these engineering early engagement discussions. I'd like to close here with several success stories before handing off to Anthony. The first is with a data center and networking customer with whom we've experienced very rapid growth. The customer relationship originally began because of the customer's attraction to our ability to support different business units with different plans. We use different plans from our footprint in a very focused support model for the customer. They also were attracted by our commercial technology center and the ability to support them on R&D work for new technologies in the future. What really cemented the relationship was our ability to creatively use the footprint last year to bring more plans to bear, to execute for them on a very unforecasted surge in AI-related data center growth. The results, we've grown that customer relationship 459% since 2019 and had about $150 million of revenue last year. Our products that we support them with are advanced and high-technology line cards, network interface cards. You know why we win? It started with that reputation, but over the years, we've built very strong multilevel relationships. As I mentioned, they value our technology and our R&D, but what really was the clincher is executing that global footprint, and to be able to respond and execute to an amazing surge of business that was not forecast at the beginning of the year or throughout the year, and then being able to manage it and coordinate it with our global account management team. My second success story is a hyperscale data center customer. This is more of a steady growth story. The relationship has been long-term. It was originally started with the customer's attraction to us because of that reputation in the industry and the footprint. They've used the footprint to support different types of technologies. More recently, they're really interested in the footprint and the regional aspects of our footprint to be able to support their IP concerns and their supply chain resiliency concerns. Since 2019, the revenue has grown 11% to about $70 million last year. Our products, again, are advanced in high technology line cards, going into servers, accelerator cards, and network interface cards. Why do we win? Once again, we operate weekly with this customer at multiple levels of relationships across both organizations. Obviously, they take advantage of our advanced technology capabilities and the footprint. Historically, they've been a user of both our US and our China footprint. This is one of our partners for Penang. They are extremely excited and anxious to get started with us in support of their supply chain resiliency strategy for PCBs. The ability to support a business model that operates on short lead times and ops, often has very quick peaks and then valleys, and to be able to offer them that flexibility and to manage their business through our global account management team. In conclusion, I hope that this has given you a better sense of the commercial sector and in particular, our data center, computing, and networking business. We are very well positioned, and we're executing for long-term growth. Key to that has been and will continue to be focus. Focusing on the fastest-growing sub-markets and the customers within those sub-markets that have an interest in our technology, and where we see opportunities being fueled by those mega trends I spoke about in the very beginning. We're winning. As I've shown you today, we're growing faster than market, and we're doing that by executing on our growth strategies and leveraging TTM differentiation to create value for our customers and competitive advantage for TTM. With that, I thank you very much, and I'm gonna turn it over to Anthony. Great. Thanks, Doug. Yep. Good morning. It's my pleasure to be here today. By way of introduction, my name is Anthony Sandeen. I'm the President of the AMII business group. That is, hopefully for the last time, Automotive, Medical, Industrial, and Instrumentation. My background, I joined TTM about 3 years ago. Prior to that, I had about 8 years with General Electric, 8 years with Amphenol, and then many, many years in private equity, portfolio operations and M&A. My commonality, though, across that experience, is really deep exposure to many verticals, primarily being automotive, medical, and industrial, and then relationships across those customers, many of the same customers that we have today. Today, I'm gonna tell you about AMII. Our business has done really well. We've done better than market, we've gained share. We go to market with a differentiated offering. We deploy a disciplined approach across a diverse set of customers and end markets. As a result, we're a thriving business. I'm very excited to tell you why. I'll take you through our markets overview. I'll cover a couple of success stories at the end. Discuss briefly some of the growth drivers that we're seeing. If you look at AMI&I, it's helpful to think of us in terms of automotive and MI and I. They're quite different. Revenue point of view, we were $920 million last year, split fairly even across the two segments. Automotive is relatively a low-mix, high-volume business. We've got a relatively smaller customer base. Our customer base is largely tier one, so that is companies like Bosch, companies like Vitesco, companies like Continental. We sell to them, and they sell to the OEMs. We're selling to Bosch is selling to Daimler, or selling to General Motors. However, more recently, with the advent of new energy vehicles, new kind of technology, we are now engaged directly with the OEMs. We now go to market directly with companies like Tesla, with Rivian, with Aurora. AMII, on the other hand, is very fragmented. It's a very large global customer base. It's very, very much a high-mix, low-volume business. That's a model that most companies struggle to address. It's something that we do very, very well. I'll take you through reasons for that in a moment. Let's look at overall automotive. The following slides, likewise to Doug's, it's gonna show you overall total available markets, then we'll exclude that business that we do not address and show you the served available market. Here we have automotive from $7 billion in 2019 to $11 billion in 2025. Factoring out what we do not address, you see our served available market from $4.7 billion to $7.7 billion. Looking at the lower left, now, this chart is really interesting. What this is showing is that content per vehicle is growing. This is illustrated if we look at the data points. In 2019, we had about 92 million vehicles produced. Forecasted for 2025 is 90.8 million vehicles, a delta of -1.5. Overall, vehicles have been reduced, but the overall content per vehicle has increased from $76 to $122. Even in a flat market, we're able to grow. Why is this? It's simply that additional electronic content is driving additional opportunity. What's driving that electronic content is really a couple of the megatrends, and that's really the electrification of the vehicle and ADAS. This is the Advanced Driver Assistant Systems. When you see ADAS, think of autonomous driving, broadly speaking, okay? The electrification and the autonomous driving is driving faster areas within automotive, so these are the submarkets that we're focused and where we are positioned well to capture. Okay, going into medical. Similar, you see total available market. Factoring out, we go from about $1 billion nine, 2019 to $1.2 billion in 2025. Medical, again, highly fragmented market, but we've identified the areas that we want and where we do not want to participate, okay? The do not want to participate is equally important. One area that we are focused is on Medical robotics and continuous glucose monitoring. Medical robotics, this is really driving access to healthcare in new geographies, sometimes through remote surgeries, and this is all enabled by faster bandwidth. On the continuous glucose monitoring side, this is something that... Diabetes used to be a kind of a Western disease. Unfortunately, now it's worldwide. Advents of type two diabetes mean it's affecting greater portions of the demographic population, meaning children. This is increasing, unfortunately, the market. Other areas for us that are very important, medical implantables, patient monitoring, medical imaging. All of these submarkets require some or all of our product offering, some of the attributes that we bring to the market. These are things like high technical requirements, a global footprint, and really, I'll touch on a number of times here, is our ability to seamlessly transfer business from North America to Asia Pacific. What that means is we first interface on new product introduction, NPI, some of the front-end engineering, development of prototypes, the ramp of initial production, and once it reaches serial volume, then we're able to transition to Asia Pacific, and that's something that is unique in the industry. Okay, lastly, industrial instrumentation. Again, total available market, $2.7-$3.6. Factoring out where we wanna play, a $2.2 billion-$3 billion. Some markets that we're really focused on here, industrial automation and robotics. This is really the online shopping. This is the warehouse fulfillment and manufacturing in general, and also key, as some of business is onshoring back to the United States, how do we remain productive? That's in robotics and automation. Other areas of interest for us, semiconductor process equipment, this is where we're very bullish on mid- and long-term, and then test and measurement. Again, important for us is these are very critical industries, mission-critical, very high barriers of entry, the need for repeatability, extremely high, and where we bring value. Once we do that front-end work in the United States, transferring to Asia Pacific, really, really important. Overall, we've got great outperformance through this very challenging environment, something that we're very proud of. If we look at automotive, we've got a three-year CAGR of 12.3% versus 10.6% in the time period, and a modest increase in market share. How did we do this? Number one, we asked for more business. We've got relationships with customers, and sometimes it's as simple as asking for more than your fair share, as long as you have confidence to execute on that request. We had the right focus in the submarkets. This is ADAS, this is electrification. We also knew where we didn't want to play, there is a point here of improved customer mix, and within each of those customers, some improvement on the portfolio mix, really important. It's important to know where we can deliver value and where we cannot. Lastly, new program wins. I'll cover in detail in a following slide, but it's paying attention to our overall portfolio and how our new program wins are staggered over the out years. Really, really important as you manage automotive... MI, and I look really proud here, we're number one. TTM is number one market share in all three of these areas: industrial, medical, instrumentation. It's an achievement that we're very proud about. We've taken a difficult market to address, this high mix, low volume, global, fragmented, very difficult. We've taken that, and we've really exploited the opportunity there. We've got lots of opportunity here due to the overall size of the market, and we've got an opportunity to somewhat copy and paste what we've done in North America to new geographies. Taking business development to EMEA, to Asia Pacific, certain geographies, Southeast Asia, doing that business development in those geographies with serial production in Asia Pacific, really exciting for us. Let's talk about automotive. Just very quickly, for everybody's understanding, the way automotive works is we win business today, and that goes into production in about two years' time, and then it stays in production for about seven years. Over that seven years, you have a couple of years of ramp up, mass production. You have three years of kind of peak volume, and then there's a ramp down and end of life. Generally speaking, opportunities lasting for about seven years. We have generally averaged about $530 million of new program lifetime value awards per year, $530 in 2021 and $532 in 2022. However, the last couple of quarters, Q4 of 2022, we had $279 million of lifetime awards. Follow that up by $267 million in the first quarter of this year. The key for us, again, is the intelligent management of this portfolio and making sure that we're appropriately staggering awards over the out years so that we never have these peaks and values of output and revenue. All right, I'm going to talk about two success stories. The first is really rapid growth, two-time rapid growth, by design, with a major medical customer. For us, this involved early involvement that drove the specification and the design, which was very important as this came into production in terms of competition. Being in the driver's seat there, really important. We had this footprint that enabled North America new product introduction and engineering, with eventual transfer to Asia Pacific. That was always going to have to be the plan. Okay, we were never going to be able to produce all of this in North America for economic reasons, and then being able to address a very fast growth market. What this was four TTM sites around the world. We first had a step from 0 to 40 million units in year one. The plan with this customer, once they gained FDA and European regulatory approval, there was going to be another jump in the adjustable market for them. From 40 million units in year one to 160 million units in year three. This is a four-layer HDI board, very difficult tolerances, very ultra-thin profile. The ID on the board, it's very difficult. Again, really for us, it was, why did they talk to us first? They knew we had the reputation. They knew we had the strength, medical product, very difficult, high reliability. We needed to be here yesterday, today and tomorrow. That got us in the door, that NPI development, global team, really good. They knew that they could count on us to handle these successive ramps. We handled the first one great, and we're in the midst of the second at present. Second success story is with automotive, and this is really interesting. This is 17 different part numbers, okay, across vehicle, fleet, and infrastructure. This is a car, or a fleet that you also have charging systems, maybe at your home, maybe at the place of business or out in the field. Okay? A number of products across this. This was ADAS, this is connected car, this is power chassis, and energy storage. Really exciting for us. Kind of content value per system. How you define that system may be a bit difficult, generally speaking, per system, about $350 per system. Years of production, again, back to that five to seven year time frame, a total value opportunity for TTM of about $150 million. The high voltage, the heavy copper for us, really important. That high voltage specialty that we have, that speaks to the electrification of the car. Heavy copper, also an area that we stand out. Why did we win? Again, early involvement here was critical because it allowed us to talk to the customers first, where we could devise and define specifications and requirements, that seamless global transition from North America to Asia Pacific. I'm going to wrap up here with our growth strategies. Number one, we're focusing on the right submarkets. Within each of those submarkets, there are customers that we're focused on. At the customers, there are certain applications that we hone in on. That's really, really important to know where we can add value, where we can charge for it, and where we don't want to waste our resources. Important for us. That high mix, low volume, it's a specialty of TTM, great for us. Automotive, tremendously exciting, with electrification and ADAS coming. Expanding our customer base. Again, this is a deliberate customer acquisition model, growing more with our existing customers and selective acquisition of new customers, really, really important. That penetration of EMEA and other geographies in Asia Pacific for the MI and I business, a huge opportunity for us. Okay, if we look at expanding our customer base, how do we do that? Number one, that global sales force, the FAE team, those field application engineers, big differentiation for us vis-a-vis competition. Talking about on automotive, radio frequency, RF, that's the autonomous driving, the heavy copper, the electrification of the vehicle, something that is really exciting for us, and you saw that earlier with the CAGRs. Lastly, investing for growth. My business, Penang, is hugely important. My customers are concerned. They demand security of supply chain resiliency. For all of the reasons that we know, Penang is incredibly important and incredibly exciting for us. We'll continue to invest incrementally across the rest of the installed factory base in technology, in capability, in capacity. Lastly, some of the tools that you don't really see in the industrial space, things like CRM. Okay, you certainly don't see CRM in industrial in Asia Pacific. That's a way that we stand out, how we manage our funnel, how we manage our sales pipeline, our future revenue, sets us apart. For me, that's the end of my presentation. I'm now going to hand over. We're just going to do a restroom break. We're going to do a quick restroom break right now. Thanks, Anthony. Didn't mean to cut you off, but thanks a lot. I didn't want to introduce Cathy and then. Yeah, exactly. We're going to do a quick restroom break right now for about five minutes, and would ask if those TTM employees use an alternative restroom other than the one here, so that our attendees can use the one here, because we don't need escorts. That's the word I was looking for. Exactly. Thanks. One point on the slides. On the webcast right now, all the slides are being broadcast real time, and then we'll post them all as PDFs at 12:30 when we're done with the presentations. Okay, thanks. Five minutes. Yep. ... Heading 330. It's amazing what can be done when the need is great. Watch it all down, follow up. When time is of the essence and lives are on the line. Find a needle in a haystack of ocean, land, and sky. Communicate with clarity- We have loose. Roger, she's coming. -in a fog of noise. Safeguard the security of millions of travelers. 1.4, climbing 5,000. Secure and protect a country's borders. Tell friend from foe in the blink of an eye. Now 1.7. Be the eyes and ears of heroes worldwide. Angel nine, I'm going down to three. Heading 330. 272. We're at our best when conditions are at their worst. I'm down to 3,000. Let's get out of here! From the production line to the front line, our surveillance, communications, and analysis solutions provide a tactical advantage in the most unpredictable environments. What we help our customers do today is truly amazing. Just imagine what we'll help them do tomorrow. All right, what isn't better than an A&D video to start, right? Very happy to be with you here today to talk to you about aerospace and defense. First, let me introduce myself. I am Cathy Gridley, President of our Aerospace and Defense business. I joined TTM in 2019, and bring to the TTM leadership team about 25 years of A&D experience, having led businesses with companies like Goodrich, GE Aviation, and most recently with Northrop Grumman. I'm going to talk to you today a bit about our sector overview and then talk about our strategic focus for growth. I'm going to turn it over to Rich Hines, and he's going to talk about how we're differentiating through our engineering capability. First, just a quick A&D glance, who we are. We are $1 billion, compliments of the acquisition of Telephonics last year. We made that great milestone. Puts us in the top 40 U.S. defense manufacturers. Our footprint, almost exclusively North America, with a small amount of commercial aviation in Asia, and our U.S. defense production capability, all exclusively in the United States. We have a dual source strategy, which is a real strategic differentiator for TTM here in the United States, where we have dual source on many of our more nationally critical program capabilities, and we produce in multiple locations on behalf of our customers. It provides us with the ability to bring them supply chain resiliency through TTM's manufacturing, and it also allows us to flex and surge and to adapt to their growing demands. It ends up being a big differentiator for us and something that our customers seek from us on a regular basis. With our portfolio, we have more than 50% in the design to spec as well as highly engineered products. We span now with the acquisition of Telephonics from the foundation of our portfolio, which is tier four PCBs, all the way up through two mission systems in tier one. When we consider our portfolio, it spans 3 primary domains: the defense domain, the commercial aerospace domain, and the rapidly growing space domain. I'm going to talk about those in a bit more detail for you. We align to our customer's missions. Tom spoke about this a little bit in the beginning. We have looked at our organization, our portfolio, and the lens through which we both face our customers and have structured our sector is through that mission orientation. I'll ask you to cast your eye to the bottom right-hand of the slide to our vision. We live and breathe this vision every day: to be that reliable, indispensable, and trusted partner, in particular for our major OEM primes, and to ultimately be a partner to the warfighter and to the end user customer base. A little bit about our journey. TTM's A&D business is built on an incredibly strong foundation of TTM as North America's leading PCB manufacturer. This is a true foundation. You hear me use that word regularly, not only is it the foundation for the A&D business, but it is the true foundation for integration of electronics. In 2018, with the acquisition of Anaren, that really began the launch upward in the vertical, this is the formation of our vertical integration strategy. With that acquisition, really brought us RF, so radio frequency, microwave capability, as well as our footprint in microelectronics. We've taken the opportunity over the last several years to hire key leaders into aerospace and defense from a number of very recognizable OEM primes like Raytheon, Northrop, and Lockheed. We did this really to expand our knowledge of those key customers, to understand how they set priorities, and to really make sure that we, when we talk about mission, when we talk about engineering and technology differentiation, that we are able to articulate that and translate that on behalf of our OEM customers. Moving on, the acquisition of Telephonics has really propelled us into that tier one product group. Not only that, it brings us strong systems engineering capability and greater integration capability at all four tiers of our value chain. Gives us direct access to end user customers. Think these folks on the wall over here, for you on the phone, all the services, especially in the United States, as well as internationally with our allied ministries of defense. In terms of where we've gone and what this has all done for us, so if you cast your eye to the right-hand side, to the chart on the right, you'll see that we have more than doubled since 2017. Yes, two key events, the Anaren acquisition and the Telephonics acquisition, were big parts of that. Not only did we double our revenue over that time period, we also expanded our addressable markets and expanded our product groups. We added RF components, microelectronics, as well as mission systems. When we look at our investments, and we look at where we're headed, it is the investment in these significant acquisitions, as well as the investments we're making in our manufacturing footprint, our capacity expansion, and our capability expansion, as well as the investments that we're making in R&D, that are really allowing us to better address and capture more of the share of our addressable markets, and to both leverage our vertical and horizontal strategy for growth, and I'll talk about that a bit more. A few highlights first on 2021. 2022, which was really a stage setter for us. When we look at what happened for us in 2022, it has really set a great stage for where we're headed with the A&D business. First thing, our revenues grow over 19%. That extraordinary growth really driven by the Telephonics acquisition, we did see a bit of growth in our underlying organic business as well. We had record bookings back-to-back. 2021 was record bookings. We were very excited about that and then crushed it with 2022 record bookings as well, which has really delivered us that backlog of $1.38 billion that Tom referenced. One of the really great things about that backlog, and when you think about a strong A&D business, it is that multiyear backlog situation that you have, right? When we think about that Nearly $1.4 billion backlog, we think about that multiyear position and what that does for us. A&D is a longer cycle business. Gives us that opportunity to see more of what it is that we need to do with strategic sourcing, supply chain management, as well as our labor needs. What are the types of skill sets that we're going to need going forward? Then we can take our appeal efforts and our recruiting efforts and target that labor so that we are better prepared for that multiyear position that we hold in our backlog. Again, the heavy lift, that was the Telephonics acquisition and the integration effort last year. Still have some of that integration activity underway, but we really did a lot of the groundwork in the second half of last year. Have really had good benefits coming through in terms of those cost synergies that Tom referenced. Now are really turning our focus to those revenue growth synergy opportunities that come with that integration. Moving right along, talking about, you know, where we are from a supply chain and labor perspective. The whole industry struggled last year in terms of supply chain, in terms of labor access, and you'll hear that repeated throughout. One of the things that we put a lot of emphasis on last year was taking deliberate action in how we are addressing both the challenges that we're seeing in the supply chain, better forecasting, again, taking advantage of that long-term view of our revenue stream through our backlog, and then also in terms of addressing labor. We have detailed operational and margin improvement plans. I know Todd is going to talk about that a bit, as will Phil. One of the key areas of emphasis for me has to do with the operational improvements that will shorten our lead times and will increase our capacity, because demand is very strong, especially on the defense side of our business, as well as the space side. Finally, in 2022, with the expansion of our portfolio, with the broadening of the submarkets that we are able to address, we stood up A&D as a sector, and we created two business units underneath that. I'd like you to cast your eye to the right-hand side of the chart, please. What we did was we have two business units now. The first one being radar systems, and radar systems, along with our sensors, is about half of our portfolio. TTM has a long history and a strong position and very good customer relationships when it comes to radar. The growth here on the radar side of the business really is about that technology advancement, and if you think AESA radars, so active, electronically scanned arrays, this is a growing, highly technical area, and we are well positioned in this, both with our customers and through our own advancement on radars through our mission systems. On the right-hand side of the, of the two, we have C4ISR and space, which also happens to include our commercial aerospace domain. This is a complex business unit, so it is a more diverse set of market segments. One of the reasons that we split in this way was to allow us to hone our focus on our growth strategies within those submarkets. On the C4ISR and space side, first of all, if you think of C4ISR, think of the nervous system of the military. We have space, which is rapidly growing, far and away the largest growth area for national security as well as for commercial space, and we are well positioned in both of those domains. If I walk down just a bit further, looking over under C4ISR, to give you an idea of the mission areas that they are aligned to, we have surveillance and communications. Tom mentioned both of those, really strengthened by that acquisition of Telephonics. We have a long history in navigation and guidance. Moving along to electronic warfare, and I'm going to just take a moment here. You hear the word electronic, or you hear electronics, and you heard it on the commercial side, and you'll hear it again and again on the A&D side, you should think TTM. The foundation of all electronics is the printed circuit board. A PCB is required to integrate electronics. We have an expression that we use on a pretty regular basis within the U.S. government, and certainly all around the U.S. and globally, there's all of this focus on chips, and that's great, but chips don't float. They have to be integrated with a PCB. The printed circuit board, again, the foundation of our A&D business and the foundation of our integration strategy vertically up the supply chain, is a key in all electronics, including in electronic warfare. We talk about space. I could spend a lot of time here on space. There are huge opportunities. We have been seen with our products through history back to the International Space Station, rolling forward to programs that are clearly recognizable, like Mars Rover and James Webb Space Telescope, among others. Tom mentioned it, I'll say it again, when we think about how we are aligned from an A&D perspective, you look at the major OEM primes, or you look at the U.S. Department of Defense and the other major services, they're all focused on the mission. When we have restructured A&D as a sector and we have reorganized, we are focused on mission first, and we then look within those missions through the lens of programs. I'm gonna talk more about franchise programs. First, let me talk about our product portfolio. The way that this chart is depicted, moving from bottom left to top right, really shows our move up the vertical. We are highly differentiated throughout every tier of this supply and this product group. If you look to the bottom left here, we're really talking about PCBs and interconnect. The foundation for our integration strategy. A couple of examples here. Bottom left, two substrates. Both of these substrates manufactured in our Advanced Technology Center in Chippewa Falls, Wisconsin, where we're also investing in new processes, material utilization, and manufacturing capabilities. If you move up to the right, you get to microelectronics, where our rad-hard products are on virtually every significant space program. A good example, sort of in the middle, you'll see there's a stack there, and that is an active beamformer. We have been providing that active beamformer, which is the integration of products from other TTM sites provided into Syracuse, and then that package provided on a number of space programs. We've been doing that for 20 years into the space domain. We have space credibility and experience, and we are gonna optimize that and leverage that in that incredibly rapidly growing domain. If you move further up to the right, I'll try to use my laser pointer here, Todd. Sort of in the center, you've got a couple of chassis. These are integrated chassis that are built in our Stafford Springs location. This is not Lego building, right? This is not just putting a bunch of individual pieces together. This is the proper integration of technology into these chassis, again, assembled in our Stafford Springs facility. Then we really shift up to the right, and we get into our mission systems area. Again, really tied to the Telephonics acquisition. We have some representations up here at the top. We have a communication system, and then further to the right, we have radar systems, and then down here, we have what is our PDRS, which is our Passive Detection and Reporting System. This was an industry-first, all-mode IFF, so Indication Friend or Foe solution, recently selected by the U.S. Army. We recently went under contract with them, and it provides airspace situational awareness. Think, for example, it's tied to two missile defense installations, identifies friendly versus enemy aircraft. One of the things I will say, if you think about the breadth of our capability and what we bring to the market, we did not consider scale at all in the development of this chart. We produce about the size of a grain of sand components in our Salem, New Hampshire, facility, all the way up to this shelter, IFF solution up here, manufactured right here, built right here in Long Island. We span the verticals, but we do it very deliberately. Part of that vertical strategy that we have is to find the right point within the tiers, whether it be tier four, complex PCBs, tier three components, subsystems, or all the way up to the mission system. We find the right point in that vertical to bring the best value to our customers. We use our engineering capability to be an extension of our customer's engineering bench strength, so that we can help them to optimize their design. Now I'm gonna talk just a little bit about what our growth opportunity looks like by segment. What you see up here are the five product segments that we look at when we're considering our growth strategies. I'm gonna draw your attention first to the serviceable addressable market line here, 2022 SAM. You can see billions of dollars of opportunity reflected on this chart. The first two columns, PCB substrates and value-added assemblies. This is about half of our portfolio. looking at CAGRs all heading in the right direction across all of these product segments. We have high market penetration in the PCB and substrate, and moderate penetration in value-added assemblies. We expect in both of those segments to grow with the market, and you'll see that when it comes to PCB and substrate, how are we going to do that? We are really going to take full advantage of our manufacturing footprint and our manufacturing know-how. The thing that differentiates us there is that where other suppliers tell our customers that what our customers need is impossible, we do it. We know how to manufacture it, or we figure out how to manufacture it for them, and it is a huge differentiator for us. We regularly hear from our customers, who may first go and try and find that low-cost solution. Impossible, can't be done. They lose a lot of value, and it becomes less affordable. With TTM, through our know-how, through our engineering capability, we are able to bring them that solution. When it comes to value-added assemblies, again, similar to what I just talked about in terms of what we do in Stafford Springs, we will see with the market growth, it's a great CAGR. Plenty of opportunity here. It is a smaller addressable market, but we will be very deliberate here. We will select those opportunities where we can create value for our customers and not look at opportunities where they're really just looking for something that more resembles a bundled solution. Then we move to the right, where things get really interesting. If you look at our market penetration, it is low in all three of those segments, which should not surprise you when you consider that that is over $30 billion worth of addressable market. When we talk about microelectronics, and I talked about that a bit already, it is a sizable, serviceable, addressable market, and it is our largest growing segment with a 7% estimated CAGR. We are going to outgrow the market. We're going to outgrow the market, at least that is our expectation in all three of these segments. We're going to expand our capability areas in microelectronics and in RF microwave, and we're going to do this in a few ways. We're going to look at advanced packaging and invest in advanced packaging. We're going to invest in 2.5D and 3D techniques and custom-designed semiconductors, such as the ASICs, which are... I have to cheat on this one because A&D has a love affair with acronyms. application-specific integrated circuits. We designed those here in Long Island and also acquired that capability when we acquired Telephonics. We're also going to expand system-on-chip capabilities and look at investments in that area as well. Sorry, I'm going to back up. On both microelectronics and RF microwave, we're also investing to increase our capacity. One of the reasons that this is so critical for us is because the need for speed. The Department of Defense and for national security, we need speed. This is a mantra that we hear out of the DoD, speed of technology introduction, speed of product. When we invest to increase our capacity, and we invest in the right talent and the right engineering, we are able to bring our products to our customers faster. I'm looking forward to seeing lower lead times and also to that expanded capacity, because the opportunity and the demand for microelectronics is significant and a lot of growth opportunity for us there. Finally, moving over to mission systems. Mission systems, $11 billion estimated SAM, moderate growth, but we have low penetration here. Again, we will be selective, we will be niche. We will focus in those areas where we have great subject matter expertise. We find ourselves in a good position, certainly in communication systems and in SDI, where we are advancing our SDI being secure digital intercom. We find ourselves well positioned on a couple of key platforms, most recently on the Future Attack Reconnaissance Aircraft. FARA, recently awarded, we are well positioned there. We were actually well positioned there regardless of how that award went. Those of you who are familiar with that may have heard it was awarded one way. There was a protest. For those of you who are familiar with aerospace and defense, that does happen on a fairly regular basis. We had the benefit through our strategy and through what we acquired with Telephonics to sort of sit back and let that unfold in the way it was going to unfold, because we were well positioned on both solutions. We are also working through and pretty well positioned on the Future Long-Range Assault Aircraft, which is the FLRAA. We will see what happens there on the basis of what happens with Future Vertical Lift. We have solutions that play in that market very well. Finally, in terms of what else we will do with the mission systems, we're going to refresh product and technology portfolio. We are investing in additional R&D for the Telephonics, the systems integration, and the mission systems area of our portfolio. In addition to that, Rich is going to talk about this a bit more, we're taking the opportunity to really look at the Telephonics supply chain, where they have had challenges historically in being able to create those really strong strategic relationships. Our heritage TTM business is very well positioned to collaborate now and to find the right places for us to bring value through that vertical integration model. We are well aligned with industry trends, I'm going to try and make up a little bit of time because I'm conscious that we took a break here, but I'm going to talk about a few things here. We know there are expanding defense budgets in the United States as well as with our allies, especially in Europe. If you think about the great power competitions, you think about what's happening in the world right now, the United States, Russia, and China, on a global basis, defense spending is increasing, and that includes with our allies. With the acquisition of Telephonics, we also have the opportunity to expand our foreign military sales access. Telephonics brings with it good access within Allied Ministries of Defense and foreign military sales, which are typically derivatives of U.S. defense products that we are already on. We'll be well-positioned, with the support of the U.S. government, to capture additional revenue through foreign military sales. Just a few other things. I'm going to talk about industrial policy and reshoring. We've heard a lot about that, and if you aren't familiar with Section 851 in the NDAA, which is the National Defense Authorization Act. There is language in there now that has gone into law that really requires the U.S. Department of Defense to procure its PCBs not in China. I know that sounds a little bit strange that that actually had to be put in writing, but when you think about direct commercial sales and commercial applications, right? This pivot in the NDAA is very good from a TTM perspective. Our footprint in the United States is well established. We are the market leader here, we are ready for this shift that is being made. It's bringing more and more attention, not just on chips, but again, on the whole ecosystem of electronics and microelectronics and the value of securing resilient supply of the printed circuit board as a part of that whole ecosystem. We're very pleased with commercial aviation recovery, which we are seeing come through in our bookings. We know that that is coming. We have strong relationships and a long history of strong relationships with customers on the, on the commercial aviation side. Finally, franchise program rants. This picture on the right-hand side is a really good depiction, and if you look at the programs in particular, and I am not going to rattle each one of them off because I don't have that acronym skill set. What I can show to you, and it should stand out for you, is how well we span the various domains: land, sea, air, space, ground-based radar, air-based radar. I'm going to talk about a few specific programs. We support over 200, but I've got a few that I'd like to highlight for you. First of all is the F-35 Joint Strike Fighter, the largest DoD program of record. TTM has over 200 unique part numbers on that aircraft. We support direct to Lockheed Martin as well as to several of the major OEM partners. In the support of that aircraft, I do have to cheat here to make sure I get all my acronyms right. We have a RF antenna, so the radio frequency antenna, which we provide to Northrop Grumman, and they integrate into their fire control radar. Overall, on that program, we have over half a dozen TTM facilities that are manufacturing products for the F-35. We have over 2,300 pieces that we contribute to every single one of those aircraft. We move on to another program, one that maybe if you follow TTM in the press, you will have seen we recently received a rather sizable award from Raytheon, and that is the SPY-6 program. AMDR SPY-6 family of radars is a premier Raytheon program, and we are extremely well-positioned. I believe we are the largest supplier into Raytheon on that program. On that program, we actually have the mission-critical OLBFN, Overlapping Beam Forming Network, which we produce out of Syracuse, but is supported by Denver and Forest Grove, and soon to be Stafford in Connecticut, with product that we integrate in Syracuse. On that program, we have over 16,000 pieces that we provide. We move on to HDR, Homeland Defense Radar, with a SPY-7 variant, which is the Navy radar, Navy variant. On that particular program, which is a Lockheed Martin program, TTM, again, incredibly well-positioned. On that program, we provide out of at least half a dozen of our TTM facilities, between RF components and PCBs, over 200,000 pieces into each one of those programs. There are derivatives of that program that have already been accepted by Japan, Spain, and Canada, and we anticipate additional international derivatives as well. A quick wrap-up here. We expect to grow our organically greater than 5%. We're going to leverage our manufacturing and engineering know-how. We're going to identify new opportunities for growth, especially as it relates to our acquisitions. We're going to continue to invest to optimize the capture of greater market share. On the margin improvement side, we're going to continue to realize our acquisition cost synergies. We're going to execute on our operational improvements, and Phil and the operations team have really been doing an exceptional job of deliberately targeting opportunities there. We're going to increase our design engineering content, and we're going to add more value when we do so for our customers. Finally, key takeaways. We expect sales to outgrow the market. We expect our margins to outgrow our sales. When all is said and done, we expect to continue to be that reliable, indispensable, and trusted partner to our customers. With that, I'm gonna turn it over to Rich Hines to talk about differentiation and engineering. Thank you, Cathy. All right. As Cathy mentioned, my name is Rich Hines. I'm the engineering lead for the Aerospace & Defense Sector. I've spent my entire career in engineering, various roles at a number of companies, including Eaton's AIL, or Airborne Instruments Laboratory division, now part of L3Harris, General Instrument, Litton Industries, now part of Northrop Grumman, and Telephonics, now part of TTM. There's a little bit of a track record there, so we'll see where it goes from here. If I'm successful at the conclusion of my discussion, you'll have a firm understanding of the approach we use to deliver technology-driven, differentiated solutions. In my opinion, there's no better evidence of providing differentiated solutions than securing positions on next-generation platforms, and TTM has been very successful in doing just that. Due to contractual restrictions, I can't discuss all of them, but I would like to just highlight a few, such as our communications equipment is on board the Air Force's latest airborne tanker, the KC-46. You heard Cathy mention about our position on the Navy's SPY-6 Radar with our beam forming networks. Also, our identification friend or foe mission systems is on board the Navy's latest maritime patrol aircraft or sub hunter, the P-8A. Those are really just three examples of more than a dozen recent next-generation programs that TTM is part of, including a number of high, highly visible strategic and tactical platforms, as well as two very high-profile DoD VIP platforms. Certainly, the acquisition of Telephonics advances our vision of becoming a larger provider of highly engineered solutions. It also provides TTM with an immediate presence as a tier one provider in the value chain vertical. It also rounds out the product offering to cover all four tiers of that value chain vertical, from highly differentiated PCBs, substrates, and interconnect solutions, through complex RF and microwave products, such as beamformers, integrated microwave assemblies, concluding with integrated mission systems, providing surveillance, radar, and communication solutions to both the DoD and international markets. It's actually that ability to cover all four tiers of the value chain that has really unlocked a lot of potential relative to vertical integration. We believe that this potential will provide us with pricing flexibility to enhance our position when in significant competitive situations, as well as expanding margins, when in less competitive or follow-on production situations. More importantly, it'll also help us eliminate, in some areas of our business, supply chain disruption. I have a case study slide that I'll use to discuss an ongoing vertical integration activity that's doing just that. Not to rest on our laurels, we have recently introduced a strategic innovation Center of Excellence with the sole focus of ensuring that we're planting the seeds for future differentiation. I'll discuss a little bit more about that Center of Excellence, or CoE, on the next slide. The integration of Telephonics resulted in a new engineering organization. It is constructed primarily of three design Centers of Excellence, or CoEs, aligned to the verticals or the verticals in the value chain. We execute development programs, whether they're internally funded or funded by a customer, by selecting resources from each of those Centers of Excellence based on the scope of the project. We execute those as integrated project teams. You can see by the numbers, we have more than 400 engineers, degreed engineers, supporting the Aerospace & Defense Sector, with more than 200 of those actively participating in new product development. Of those, nearly a third have advanced degrees. We also created a fourth Center of Excellence, which I just briefly introduced on the opening slide, called our Strategic Innovation Center of Excellence. It really has two main tenets to its charter. The first is ensuring execution excellence on all the elements in our technology road maps. We'll talk a little bit about the road maps in a little bit. The second is to ensure that we continue to expand our technology through innovation, so that our future innovation remains intact. Our target zone, if you look at the upper right-hand side of the slide, the target zone for our strategic innovation is really the intersection of our strategic vision, our technical competencies, and then, most importantly, the customer solution gaps. It's a engage early and engage often philosophy that we have to try to unearth what are those out year solution gaps that the customers have, that they're looking for solutions to help them fill their roadmap gaps. I have a case study slide on early engagement that will walk you through how, with that approach, we're oftentimes able to create programs that might not have otherwise been available to us. Before we leave this slide, just want to touch a little bit on our total research and development spend. It really consists of two buckets, our internal research and development, as well as contracted research and development, or CRAD. We're very fortunate to have a significant CRAD funding stream to supplement our internal research and development dollars. I think it's clear evidence of the customer's belief we're providing advanced technology solutions, as evidenced by their willingness to participate in advancing or accelerating various elements on our roadmap to help them fill technology gaps that they have in their technology roadmaps. Those internal roadmaps that we have that are really tied, it's a water flow. We start with the sector vision, which then flows down into sub-segment strategies. Our market sub-segments are radar, surveillance, communications, EW, commercial aviation, space, the ones that Cathy had mentioned on the org chart. Those sub-segment strategies then inform our technology roadmaps, and then those roadmaps ultimately result in IRAD projects. Early-stage investment is absolutely key in ensuring that we continue to provide differentiated solutions. The four projects you see on this slide all come from our technology roadmaps. They also happen to cover all four tiers of the value chain. I'll just briefly talk about each one of them. Integrated versus federated. The days of a single sensor for a single mission requirement are slowly disappearing and being replaced by something called a converged aperture. Fancy name for a gadget that does more than one mission system requirement. Some of the enabling technologies that are going to be required in order to unlock affordable converged apertures are systems-on-chip and multi-signal RF front-end processing. We're investing in both of those early-stage investments to ensure that we're able to support our customers, as well as our own mission systems products, when we get to the point where converged apertures are expected in the market. RF to bits. The pace of technology acceleration with AESA, active electronically scanned arrays, is very rapid. The next generation of AESAs envisions actually digitizing at the antenna element. They're trying to move the digitization all the way to the antenna element, so you're actually digitizing at RF frequencies. In order to be able to support that, again, both for our mission systems that we develop, as well as our customers that rely on us for some of their technology, we'll be investing in the substrates that are ultimately going to be required to package the very dense transmit/receive modules that will be required to unlock that next generation AESA vision, as well as the RF digitization, to ensure we can digitize at very high RF frequencies to support various roadmaps. Size, weight, and power, or SWAP. It's always a differentiator, especially when you're on airborne platforms. We'll be investing in various advanced packaging techniques to ensure that we continue to be viewed as a company that provides SWAP differentiated solutions. Specifically, we'll be investing in what's called 2.5D and 3D packaging, a way to, again, package the high density of integrated circuits and die that are going to be required in future solutions, as well as embedded components, where we've had a lot of success in actually taking packaged integrated circuits and embedding them inside a printed circuit board to free up real estate for other types of circuits that cannot be embedded. We're also embedding resistors. We're also embedding raw die, so the actual silicon wafer, we're embedding inside of our printed circuit boards. Again, all to provide SWAP differentiated solutions. Finally, digital transformation. We've all heard about ChatGPT. TTM has certainly been investing in artificial intelligence and machine learning, specifically in our mission systems area. One example is we are currently working on a project to create a machine learning-based aircraft prognostics engine. What that will do is it will use all of the audio that's available through the microphones of our communication systems, that's installed on many platforms, and look at audio signatures on that platform, apply machine learning techniques to predict an upcoming maintenance action. Currently, maintenance actions are either reactive, something breaks, you take the aircraft out of service, you fix it, or proactive, the maintenance manual says you got to remove the part and replace it, even if it still has another 1,000 hours of useful life. Those are either wasteful or inefficient maintenance actions. We believe our prognostic engine will make those maintenance actions more efficient, which brings up the availability of the fleet, which directly ties to the overall readiness of the U.S. Armed Forces. Under the digital transformation umbrella is something called model-based systems engineering and digital twins. Those are becoming table stakes in the DoD community, acquisition community. We've been investing in those technologies for at least 3 years now. As a matter of fact, our Mosaic AESA Radar won a Navy challenge in 2020, that required companies that were interested in participating to define, using the model-based systems engineering tool set, a next-generation, AESA-based, airborne early warning radar. At the time, Telephonics won first place prize in that Navy challenge. We are certainly ready to support the model-based systems engineering and digital twin requirements that are emerging in the DoD. Okay, I touched a little bit on our early engagement philosophy, engage early and engage often. That engagement can take on many forms. It can take on the form of roadmap sessions, technology roadmap sessions with your customers. It can also take on the form of engaging with their requirements community to understand what type of requirements are they looking to fill in the future. It can also take the place, the form of connecting with DoD labs to understand what research are the DoD labs looking at, making sure we always stay connected with academia to see if there's any basic research ongoing that we can leverage as we work on our roadmaps. Probably the most important of all those engagement mechanisms, in my opinion, is the recurring technology roadmap sessions. You're one-on-one with the customer. Oftentimes, they'll also show you their roadmap, but we certainly go in, we show them our latest technology advances, the products that we are now introducing, as well as the future items on our roadmap. These conversations almost always result in follow-on discussions. Follow-on discussions where they would like to collaborate with us on technology, or follow-on discussions where they would like to collaborate with us on a potential pursuit. This is an example of using the roadmapping sessions to identify an opportunity. We were sharing our roadmap, talking about a lot of work we were doing in our interconnect solution area, specifically with rigid-flex circuits, and they came up with a problem statement that they were looking for a solution for. They had a legacy interconnect solution for a five-cabinet set of equipment, power conversion equipment. It had reliability issues. The size was too large for where they wanted to take the product. We told them, based on the advances we had made, we thought we could address both those. Quickly created some prototypes. They evaluated those prototypes, verified that we met all of their criteria, and then turned us on to create 53 unique interconnect cable designs to integrate all the equipment in those 5 racks. I think it's a very good example of how, if you're just engaging early and often with the customer, you'll unearth opportunities. It's also a great case study of what happens when you provide differentiation. This is another example of a next-generation platform, the Columbia-class submarine. The first boat only started construction in 2020. When fielded, they will replace the Ohio-class submarine, it's a brand-new, next-gen strategic platform that TTM secured a position on because we can do things other companies cannot. The second case study that I mentioned was vertical integration. Certainly, the acquisition of Telephonics, you've heard a number of times, creates a company that can provide technology and products to all four tiers through the vertical chain. That capability, as I also mentioned, provides us with pricing flexibility, and more importantly, the ability in many areas of our business to minimize supply chain disruption. This case study will discuss just that. On the upper right-hand side of the slide, you'll see a product called our Small Form Factor 44. It's an identification friend or foe product. For those of you with us today, you't actually see that, as well as many other products, when we do the facility tour. It came out of development just about the time the acquisition of Telephonics was completed. It wasn't easy getting through development. We had some problematic suppliers. You can see there are three major components that make up our Small Form Factor 44. One is a fully integrated chassis, including the enclosure and the interconnect solutions, a high-power RF amplifier, and then finally, some next-generation processing and receiver circuit cards assembly. The two at the bottom, the high-power amplifier and the integrated chassis, were two areas that Telephonics had decided to subcontract out the design and manufacturing of those two, and it was difficult. Shortly after the acquisition, when the engineers started getting together from all the sites, we realized quickly we can indigenize this entire bill of material. The Long Island systems engineers quickly started working with the Stafford Springs, Connecticut, folks. Fast-forward to today, we have our own version of that integrated chassis with the interconnect solutions designed and currently in fabrication in some of our TTM sites, and will be showing up very shortly. The Long Island systems engineers engaged with the legacy Anaren folks up in Syracuse, and we are now designing our own version of that RF high-power amplifier. It's one of example of how we can totally indigenize a bill of material and exit a couple of suppliers that were certainly creating drama in development and would have probably created a lot of drama in production. I think it's. The list of vertical integration projects that we have is long, but they're all very exciting because they each have the capability to provide the same benefits that I just mentioned on this case study. I think with that, I will turn it back to Cathy for a couple of closing remarks on the Aerospace and Defense Sector. Great. Very quick wrap-up here, because I think that we are short on time. Again, just hitting the highlights for you. We expect sales are going to outgrow the market, expect our margins are going to outgrow sales, and we're going to continue on what are the three pillars of our A&D strategy. We're going to create enduring value, execute with excellence, and we're going to grow this franchise. With that, I'm going to turn it over to Phil Titterton to talk to you about operations. Thanks, Cathy. Good morning, everyone. How are you doing? Sorry, I'm the ops person, so I tend to want to get people awake. Just real briefly, who am I? Phil Titterton, I've been with the company for 31 years. I came through the Tyco asset back in 1992, so I've been building circuit boards or higher-level assemblies since then. My concentration is in operations. I'm one of the few remaining in North America that likes operations. I enjoy it every day. I have had some minor concentrations during my career, both in engineering and aerospace and defense, business, both, side passions. Really, before we get going, Tom touched on an interesting slide in the beginning that I thought had a unique aspect to it. That was our growth slide since we were TTM. He showed that we were $80 million back in the day, right? Basically, if you look at that $80 million across three factories, about $30 million of revenue per factory, and negligible on aerospace and defense business when TTM started. Go forward 12 years, the Tyco acquisition, which I, Doug, came along with, now we are about $800 million. We are about $65 million revenue per factory, and $350 million in aerospace and defense business. With that, we were now the largest North America PCB supplier, by far in the United States after the dotcom bust in 2001. We're also significantly the largest aerospace and defense PCB supplier. In 2008, 2009, TTM's looking at itself, "Where do we go from here?" As Tom's described, and Cathy described, we decided to go east, and we decided to go north, okay? We went east to commercial PCB out in Asia, and we went north, going through the verticals, the tier threes, the tier twos, and the tier ones, for the mission systems, for aerospace and defense. What's the result? The result is now $2.5 billion. We run about $100 million of revenue per factory, and we have $1 billion of aerospace and defense content, okay? That's just some added color to that chart. Now, operationally, what's our vision? That is to provide unprecedented customer satisfaction. That's our job every day when we wake up. We do that through two key aspects that I want to bring your attention to. One is reliable products, the other is differentiated technologies. Reliable products. If you think of what our products go into, we make a medical robot that holds a scalpel. You need that robot to work correctly each and every time. We build an autonomous driving car, so while you're on your phone, texting, that car is keeping you safe. Those are our circuit boards that need to keep you safe. As Cathy mentioned, we build for the DoD, 200 mission system critical programs, okay? Those circuit boards, those higher-level assemblies, those tier-one mission system products need to work every single time, okay? That's the reliability of the name that TTM puts out there each and every day. The other thing we focus on is differentiating technologies. Our attitude is to say yes. When the customer comes to us and says, "I want this impossible technology," we don't even ask them what it is, we just say yes, okay? When everyone else no bids the technology and the customer comes to us, we say yes. We find it's our duty to say yes, and we're banking on our horses in the stable. Rich's 400 engineers, our 1,000 engineers globally, to find that technical solution, and we put our money where our mouth is. We take on that project, we're going to yield it. We may not yield it the first time, but we're going to yield it, and our customers know that, and our customers come to that when they have that enabling technology that would differentiate them in the market. That's really what we stand by. Now, two pictures here, briefly. These are new technologies since 2018, when we spoke with you. The first one on the left, that is a substrate. That is an 18-micron line in space substrate. Guess what? That was built in the U.S. of A., okay? That's for a defense customer. We've been listening that chips don't float, and we're starting to build the packages that can take these chips and take that supply chain resiliency and onshore into the United States, and we're going to continue to grow that. The picture on the right is a rad-hard microelectronics. Rad-hard, that's radiation-hardened microelectronics. What does that mean to you? Radiation to electronics is akin to krypton and Superman. Radiation does not treat electronics well, and when you're in space, there's a lot of radiation. The circuits that we build, that we put in space, are radiation-hardened and won't take that asset down. That's a very key capability that TTM has. If you look at my organization, two changes from years ago. First and foremost, in the center, you see the VP of Integrated Electronics Operations. As we've been growing up the aerospace and defense vertical, we come from a PCB foundation. There's expertise in assembly, subsystem, tier-one manufacturing that we just necessarily don't have. What do we do? We hire in experts from the outside to help us run that business. As we acquire more businesses and as we grow up that vertical, we needed the right resources and the right competency to run that organization. It's recognize your weakness, move through it, okay. That's what TTM is doing, and that's what we stood up, and I'll talk more on it. I also want to highlight both our automation and our enterprise approach. From an automation perspective, very key to us to drive labor down, quality up. I'll touch on that. They work directly for me to make sure that the automation is practically spent and effectively utilized. Our enterprise applications, many of you may not be aware, but we've been putting in an Oracle instance across the globe for the past several years, okay. TTM was a company that grew through acquisition. At one time, I think we had 17 disparate systems that all didn't talk to each other, driving Todd crazy. We've been putting in Oracle over the past 3 years with about a 2.5 year roadmap to go. We haven't had a single significant customer disruption putting in Oracle. That's key. If you go back in time, and you know other people say, "I put in SAP or I put in Oracle, and I disrupted my customer service." We've been able to book orders, buy material, ship orders on time, and that's a significant accomplishment of the TTM team. That's the IT team, the finance team, the operations team, all working together, and I wanted to highlight that. Looking back past, the past 3 years, the COVID years, if you will, we did have some successful accomplishments. First and foremost, our China PCB operations performed admirably. They set records across the board on their performance. If you look at our capital spend, we continue to maintain our judicious 4% spend year-over-year. We were able to put in 13 plating systems. That's what we measure our capacity utilization on. That's where our growth is in the future, and these are not small plating systems, which I'll touch on. We also opened up and haven't utilized yet 73,000 sq ft of manufacturing space to support our electronics, integrated electronics growth of the future, aligned with our strat plan. If you look at some significant advancements, I talked about our rad-hard microelectronics, I talked about our substrate capability, Cathy referenced it in Chippewa Falls, Wisconsin, and then the advanced PCB differentiated technologies that Doug touched on to help the higher speed in the server systems. Lastly, I want to touch on customer returns. Our customer returns in 2001, industry-leading at 0.9% on gross sales return, okay. We've now gone below 0.6% two years later. We're very proud of that. The product we build, that we ship to the field, needs to stay in the field for medical, automotive, defense-related subjects. Finally, on the right, I want to bring your attention. That is one of the plating systems that we've installed, okay. In that red circle, you see that little human being? That little human being runs this entire plating operation, that one person, and that's a highlight of what TTM invests on its capital and what we're doing for automation. To get a better view of our global operations and what we manage, these are the 27 factories. We're gonna drill down into three different clusters, if you will, or segments of the business. First and foremost, our North America PCB operations. I want to bring your attention to the two gray boxes, the two gray circles here. That's our Santa Clara and Anaheim factory that we're consolidating this year. From an operational perspective, why are we consolidating these sites? These are very capable sites. Well, COVID had an interesting result and made us rethink about our approach on how we manage our factories. Resources became very scarce during COVID with absenteeism. Resources in the tighter labor market continue to be scarce post the COVID market. When you consider engineering, you have a bunch of engineers out there that can work from home or they can work in a manufacturing facility. Our small factory, nimble, niche factory footprint and strategy, put us a little exposed from a customer satisfaction perspective. You see us pivoting back towards our medium-sized factories, to our larger-sized factories, and that's really a result of the COVID and the post-COVID era of manufacturing. We're seeing that across the supply chain, that the tier ones have all referenced in terms of what it's causing. It's a lot of the mom and pops that are no longer in business. We even saw that in some of our smaller factories, that it's an exposure, and that's TTM addressing that from a manufacturing footprint. Drilling down into one of our factories in North America, this is our Forest Grove, Oregon, factory. An interesting story, it does advanced technology, including high-density interconnect PCBs. It's 206,000 sq ft, 500 people, a modest amount of engineers. What's not said on this slide about the Forest Grove, Oregon, plant, is this is the largest revenue-producing PCB factory in all of North America. What's also not said about the Forest Grove plant, is this is the largest aerospace and defense revenue-producing factory in all of North America. What's most interesting about that, is when TTM picked up the Viasystems through acquisition, this factory didn't even have its military certification, and 7 years later, it is the biggest aerospace and defense factory in all of North America. Panning back out, looking at our integrated electronics business that we talked about, it's a, it's a compilation of the legacy TTM, legacy Anaren, legacy Telephonics businesses. We really want to drill down and touch on one of these factories. Again, this is our Syracuse Aerospace and Defense Factory up in New York. It does microwave products, microelectronics products, engineered components. It's a design for specification, meaning we have the print and the IP rights that we sell into our customers. It has 160,000 sq ft, same 500 people, this time close to 100 engineers. You see that higher content of engineering because we're doing the design, we're doing the testing, we're doing the validation, we're doing the design to spec, which is a real differentiator. This is an ultra-high technology factory, and we're definitely excited as we integrate in with Telephonics and what we can bring to the party. Panning out in Asia, you'll see Southern China, we have a cluster of four plants. Those are the four plants that really carried the day, 2020 through 2022. You see the red dot down there, that's our Penang, Malaysia, factory that I'll touch on in more detail. I want to drill into one of our factories. This is our Guangzhou factory. This does large back panel formats. The size of that table holding all of those circuit boards, they build circuit boards the size of that table, just to give you an example, okay? They also build high-layer count line cards that Doug referenced. They are also Anthony's premier RF and radar producer for 26 to 77 gigahertz processes. We have proprietary processes to form the circuitry a little better than the competition, which means the RF signature plays better when it goes down our customer's assembly line. Very key. This factory is not small, 2.5 million sq ft. That's 10 times bigger than any factory we have in North America. 2,700 employees, 233 engineers. It's also big enough to also house our AP corporate center for shared services. We're able to relocate that out of Hong Kong into China from a cost perspective. It's also houses our commercial global technology center. Our scientists that are looking 5 years down the road, 10 years down the road, on what technology the commercial world needs, they have a full factory of assets to go use from equipment. They are not in a lab. They are in the middle, literally the middle, on the third floor of this 2.5 million sq ft factory, and they have the rights to all the equipment in that factory, and that gives us an advantage. Talking about some of the key milestones we need to improve on the three clusters, North America, Tom talked about the KPIs, on-time delivery, quality, RMAs past due. We, for two years now, have tied those metrics to compensation. It doesn't matter if you're an operator in plant number 17 or if you're a COO up here addressing you today. We're on the same KPI, performance-based compensation metrics across the globe for operations. The other thing we're doing, we're consolidating Anaheim, Santa Clara, by the end of the year. We're gonna grow new technology like substrates. We're currently running about $4 million a year. Our goal is to be at $20 million in 2026. Finally, to drill in deeper on one of our, if you will, our exposures from a performance perspective, our past dues, meaning our late to customers, needs to improve. Now, how do we get into this situation? Because we say yes. We say yes to technology, okay? We may not be on time, we need to work on that, but we always deliver, to Cathy's point. We score technology just as hard as someone building a resistor, and they score the yield or the on time as well. We score it pound for pound, the same metric. There's no excuse if you don't deliver technology on time, and that's what we're really focused on doing. We're working on our homegrown shop floor control systems that interface into Oracle. We're working on our level loading between the sites. As Cathy mentioned, we have dual source qualifications, so when one factory is overheated on technology, we can move some foundation work to another factory, so the engineers have enough time to focus on getting that technology out the door. We rate all of our plants platinum, gold, silver, bronze. There's actually a fifth metal, which isn't a metal, it's not rated. You don't wanna be on that list in TTM. It's just a bad day. If you look at our integrated electronics key milestones, again, performance-based, tied to compensation. Because this is a materials business, we also have PPV, purchase price variance, which is an integral part when you're buying a lot of material. We enhanced our integrated electronics supply chain. We basically had supply chain under a global umbrella. Because integrated electronics is so different, because it's ITAR, we carved it out, and we're standing up our own integrated electronics supply chain to manage that supply base. It's so important in this business to get that supply base on track. The tier ones, the primes out there, I mentioned, that'll be January, Q1 of 2024. We're on the same path for improvement. Rich talked about we're insourcing everything we can. The one thing that wasn't mentioned in integrated electronics is the spend within. We're probably spending almost equivalent to 10% within on our vertical. So when we call integrated electronics non-PCB or tier two, tier three, tier two, tier one, non-PCB, they actually all have PCBs. It's in addition to the PCB. So there's drag business that comes along. As integrated electronics grows, so does the PCB business as well. Finally, they have metrics, whether it's the volatility of the MRP, do we get the purchase orders out on time? That ties to the systems. Do our suppliers deliver on time, et cetera. In Telephonics synergy, we touched on the cost side was not that large of a challenge. We're happy with that direction and looking forward to the revenue synergies. Looking at our Asia Pacific PCB sites, again, Tom talked about we've already completed the Hong Kong consolidation. That was two months early, by the way. We're working on cost controls during the soft demand. We lowered our labor counts, as Tom alluded to. We're working reduced workdays right now until the business bounces back, while staying opportunistic as Doug comes in with these massive orders, okay? We need to balance both. We are working. When we get slow, we work harder on new technology. We don't batten down the hatches totally. We want to get ahead on technology, when we come out of the business slowdown, we can grab more share. We're working hard right now with Doug and his team on data centers for the 112 and 224 gigabit per second circuit cards. They drive a lot of new technology into our business. We leverage best practices, global sharing always, for rapid issue resolution, successful Penang startup. Very key, you've heard it a couple times. This is the architect's rendition of what the factory is supposed to look like when it's done. That's the actual factory, which is already built. We broke ground 11 months ago. That's where the factory exists today and how it views at least three weeks ago. In the red circle, to give you a scale for the factory, that's a 52-foot tractor-trailer truck. Just to give you a sense for the size of this factory. Again, we announced in February of 2022, customer contracts in place in March, groundbreaking ceremony in April. We actually broke ground in June of 2022 with a shovel. We actually installed our first piece of equipment yesterday. 11 months after we broke ground, we're actually installing equipment in this factory. This is no small factory. We talk customer qualifications by January 2024, full rate production in 2025. A deeper dive into the specs of this factory. It's 800,000 sq ft. It's one floor, four walls. It's built for automation and built for work minimization of transition, okay? It's gonna have factory automation, Industry 4.0. There'll actually be a command center that can run a significant amount of the processes. The productivity is designed to be 150% that of our China operations, will be our most sustainable factory. Tom alluded to the fact that because it's 800,000 sq ft, one floor, which is not normal in Southeast Asia, it's more vertical with multiple floors, we have a large rooftop. We will have the largest rooftop solar installation in all of Malaysia when this gets completed. We did leave 25% floor space for expansion opportunities. This picture on the right shows you one of our two plating rooms. In fact, the equipment was installed where those gentlemen are standing there yesterday. I would have taken a picture last week, but the equipment came in this weekend. That gives you a sense for the scale. There's two plating rooms back-to-back, just to give you a sense for the size of the factory. Pivoting a little bit to automation, very important to us. You see the two pictures on the left show a robot feeding an automatic guided vehicle, an AGV, and then you see that AGV actually transferring work to the next department. Two key takeaways on this slide that I like: This is in a clean room, so this robot doesn't leave to go to the bathroom. This robot doesn't leave for a break or lunch or a shift change. This robot doesn't introduce new dirt, new debris into the clean room. That improves our yields. A lot of people think robots are for productivity, labor savings. They can also improve quality if you do it correctly. The picture on the right, my favorite, that's a small robot feeding a bigger robot. Now we have robots feeding robots, okay? That's actually one of 3, six-axis industrial robots feeding that plating line. You saw that person standing in that circle. There's 3 of these axis. Key takeaway here with all these robots, these are in North America. Our Asia operations and our Penang operations are gonna be that much better because the factories are bigger, have more space, but this is accomplishments that we're actually doing in North America today for automation. Touching on our environmental health safety, ESG, we drive on metrics, safety metrics, greenhouse gas emissions, renewable energy, water, hazardous waste. They're important metrics, and we're driving those down. What's more important to us, actually, though, is process elimination. If we can eliminate a process, we don't have to reduce the process. A lot of our engineering efforts go towards eliminating process steps in our operation. It gives you a better climate improvement. We also make our own wastewater treatment plants, which people may not be aware of. In North America, we're fitting out all of our sites with our own homemade, designed, and installed systems, which is unique, and we're focused now on, aspirationally, two of our factories in North America going to zero liquid discharge by the end of 2026, which would be pretty neat. You see, Tom referred to the CSR report published in 2022, and that's the cover. Concluding operationally, four key principles. Quality, reliability, they're paramount to us. Nothing else matters. It's got to be that. We like to lean in on new processes and invest via customers enabling technology. Engineers are our foundation, and we have a tremendous best practice and needs help system globally. Once there's an issue in a factory somewhere in the world, we have rapid issue resolution. Three quick pictures, I'll turn it over to Todd. The picture on the lower left-hand side shows a reliability tester. It measures our health of the line in our PCB shops. That's TTM proprietary. No one else in the world has this test system. The picture on the middle is that Guangzhou factory with that 77 gigahertz RF circuitry. Again, TTM proprietary processing. The picture on the right is 17 of our 50 Penang engineers. They've been training in southern China for the past six months. These are engineers hired directly out of school, 26 men, 24 females. They're running the equipment that they'll be using down in Penang. They're building relationships with the engineers in southern China that will be their mentors and guide them through a successful startup. With that, I'd like to turn it over to Todd. Thank you. Thank you, Phil. I know most of you and a couple of new folks that we've met today. I appreciate the opportunity. I'm the Executive Vice President and CFO for TTM. I've been with TTM for just a little bit over 10 years, and prior to that, spent over 30 years in Silicon Valley in various financial leadership roles in the tech industry. Most of that time was spent in the EMS industry, which some of you are very familiar with. A couple of names you might recognize, between Solectron and Sanmina, were two major companies that I spent a lot of time with. I'm really excited to be with you today to talk a bit about kind of summarizing financially everything that you've been hearing today. We're gonna talk a little bit about the financial results and the plans-... that we have for improving those results, sharing with you our targets that we're aspiring to over the next few years. We'll go through a little bit on the balance sheet side and our cash flow also. In 2022, we had a pretty good year. We grew revenue about 5.4% organically. If you add in the Telephonics acquisition, it was closer to 11%. You can see our non-GAAP operating margin of 9.4% and EBITDA margin of 13.8%. Our CapEx was just under our target range of 4%-5%. It was 3.9% of revenue. Cash flow of 10.9% of revenue, which is great, and then our return on investment of 10.5%. Where we're driving the company and our targets in the near term are listed on the right there. We expect to grow organically 4%-6%. You've listened to the commercial presentation and the A&D presentation, you saw where those opportunities are coming from. We're driving our operating margins to the range of 11%-13% with related EBITDA margins of 15%-17%. Our CapEx target is to be 4%-5% of revenue. Now, this could be slightly higher in years when we are investing in new plant locations or new plant deployments, such as our Penang operation. It can generally be closer to the 4% or even slightly under when we're more in a sustaining mode and not necessarily launching any new plants. We target our cash flow to be greater than 10% of revenue. You can see our return on investment objectives are 13%-15%. Our goal is to achieve these targets in two to three years. That's an important question. I'm gonna spend a lot of time trying to summarize and show you and answer the question: so how are you gonna get to those targets? Let's start a little bit with a review of our, some of our history. If you look at the financial performance over the last nine years, there's a lot that can be gleaned from this at a fairly high level. We've grown significantly, both organically and through acquisition, as we've added different assets, Viasystems and Anaren, and Telephonics, to help us with our differentiation. The first half of this chart reflects the Viasystems acquisition in 2015, which got us into the automotive end market and enhanced our positions in the Aerospace and Defense, and the medical industrial instrumentation end markets. It also reflects the acquisition in 2018 of Anaren. During this time frame, this five-year period, we generally had good macroeconomic situation and global trade relationship situations. In 2019, things started to change. We began to see changes in our maturing mobility business, with missed product cycles and significant capital investments and declining financial returns. This led us to the decision to divest out of that business, where we could no longer differentiate and generate the returns that we expect in our business. We also exited our assembly operations in Asia, where we could no longer further differentiate our service offerings. We also started to experience trade tensions between the U.S. and China, that led to export controls by the U.S. government, where certain technology developed and produced in the U.S. could not be sold to Huawei. Well, Huawei was a big customer for our RF&S business unit, that had a pretty interesting impact, I'll show you some details on that in a bit. The result of these market challenges was a downturn in profitability in 2019, you can see the revenue downturn in 2020, when we, in fact, divested ourselves of the mobility business. The period 2020 through 2022 saw dramatic changes in the global economy, it all starts with COVID. You know, COVID resulted in shutdowns in the economy, in schools, and in significant absentee challenges here, particularly in North America. This led to labor and supply chain shortages, which impacted our ability to produce and meet the demand that we had. These COVID challenges were met around the world through government stimulus programs, which drove a rebound in the commercial business, but it sparked inflation. It started first with commodity prices, which particularly impacted our commercial business, and then transferred and kinda transitioned to significant wage rate pressures, and particularly here in North America. Everything kind of came to a head in 2022. We saw a strong commercial market, which really became overheated. This resulted in buildups of inventory by us and our customers, and the strong demand also drove excited premium revenue opportunities for our commercial business, generated from quick turn orders. In North America, we were dealing with wage inflation and stimulus hangover. The result was a dramatic increase in labor costs and continuing shortages in labor availability for us and our suppliers, the latter of which has and continues to cause challenges for us in terms of supply chain and delivering material that we need for our business. We addressed the inflationary challenges by working with our customers to increase prices. This was relatively quick to implement in our commercial business, which have shorter contracts and purchase order cycles, but it has taken us longer to see the benefits in the aerospace and defense end market, where you have much longer product cycles and much longer cycles in terms of transactions. Whether it's contracts or purchase orders, they can run one to two years, pretty typically, and on the commercial side, they're much, much shorter than that. The overall results at 9.4% were really pretty good, but they're very uneven when you look at the different pieces underlying that. I want to go into a little bit more detail on that. I broke this down, looking at the last three years, say, 2019 through the present, by quarter, and you can see a few different things here. You'll note in early 2020, a decline in revenue due to the divestiture of our mobility business, and in 2021 and on into 2022, you'll see the revenue increase as the commercial markets rebounded, complemented by the acquisition of Telephonics. Finally, you'll note the revenue decline in Q4 and Q1, the rightmost two bars, as the commercial market softened and as business tried to adjust and manage their inventory levels. If you look at the operating margin line graph, there's a couple of things I'd like to note. One, you'll note in Q1 of every year, you see a dip. We have some seasonality in our business, and it's a shortfall in profit generally in Q1. That's largely driven by the Chinese New Year holidays and our Asia operations. Secondly, you'll note in Q2 and Q3 of 2022, on the right side there, our peak in profitability. That was really driven by a very excited commercial market. We had tremendous utilization and strong revenues and high premium revenue content. We had talked about that from time to time in our earnings calls. That really drove very, very strong margins. The other observation, if you look kind of in between the 2020, and then you look at the 2021 years, and then you look at 2022, excuse me, you see relative consistency in the overall profitability of the business. When you look at the underlying pieces of our business, there's a lot more variability in performance. Let's take a look at that. Let's start with Asia. You know, in 2019, it's easy to see the challenges we were experiencing in our mobility business and the profit impact that that had. Once divested, you see our margins stabilize, but revenues suffered from COVID. We also struggled with material cost inflation during this time frame, and we worked aggressively to recover these costs from our customers. We were ultimately successful, but that recovery process generally lagged a couple of quarters from when we actually incurred the cost challenges. This was followed in late 2021 and 2022 by a strong rebound in the commercial markets. This led to very high plant utilization, unusually strong premium revenue, both of which drove terrific margins. In the last two quarters, you can kind of see the decline in revenue as our commercial customers began to deal primarily with inventory digestion issues, but in some cases, market softness. What's our action plan? Fundamentally, our Asia operations are in really good shape. We have two exceptions, our Hong Kong operation, which was a small plant, and our Shanghai backplane operations. Both of these are relatively underperforming businesses. We decided to close one. We talked about how we've completed that wind down of that business, and we sold the Shanghai backplane facility. We're left with four core factories, our major factories in southern China, and they're fundamentally in great shape. What we need to do, well, short term, we're taking actions in terms of managing headcount, some furloughing, some cost reduction efforts just to manage our spending. Longer term, we need to see a rebound in our commercial markets, and that will enhance our utilization levels and improve our profitability. Our goal for this business is 17% operating margin. If you look at North America PCB, it's a little bit more complicated picture. In 2019, in the last two quarters, Q3 and Q4 of 2019, there you see some revenue softness, primarily related to service provider spending in our networking end market, as well as data center softness, in that, in our data center computing end market. Revenue rebounded in the first half of 2020. COVID hit America. It hit America a little bit later than when it started in Asia, and it hit America a lot harder than it hit our Asian operations. Absenteeism rose, and the government stimulus encouraged workers to stay home and to not work. This was an attempt to contain the virus. This led to significant production inefficiencies for us and labor shortages, and we were beginning to see, as a result of that, the starting of wage inflation challenges. Further, we were incurring significant costs to keep our employees safe, extra cleaning, testing. We even went so far as we were producing our own masks for our employees and their families. You can see the resulting impact on margins there as you look into, through 2020, as it began to decline. In Q4 of 2021 and in Q1 of 2022, we needed to address the wage inflation issue, and so we made a significant investment in our employees and adjusted our base wage structure very significantly, and this drove a dramatic decline in margins. Now, while we were making that cost investment, we were also employing and deploying our strategy with our customers to go and say, "Hey, we've had cost increases. We need to work with you on cost recoveries." We began implementing those actions. With better access to labor, our revenue jumped back up, and we were better able to meet demand as we go through 2022. Margins, however, have not fully recovered, as the cost of the recovery process with A&D customers, in particular, is a longer one. I highlighted the fact that our order cycles tend to be longer, cycles in Aerospace and Defense, one to two years timeframe, rather than three to six months, in our typically in our commercial business. What's our action plan? You know, in the short term, you know, well, let me back up. Back in February, we announced that we were closing the two plants in California. Phil talked about the Santa Clara plant and the Anaheim plant. We're closing those plants, but we're actually keeping virtually all of that revenue and transferring it to other sister facilities in North America. That will be one big important step. Another step we're doing is managing our cost structure, where we've implemented mandatory vacation times. We are being very frugal in our spending and very careful on hiring. Longer term, we're focused on productivity improvements. Phil talked a little bit about our automation efforts, but yield improvement and other efficiency initiatives that we're driving internally will be very helpful and constructive. We're continuing to pursue cost recovery actions with our customers. As purchase orders or contracts expire or renew, that gives us the opportunity then to have that conversation with them. Our goal is to drive our margins in North America PCB to that 18% target range. Next, we take a look at integrated electronics, which is a new business organization that Phil highlighted in his comments. This is a more materials and intensive business than our PCB business. Throughout 2019, 2020 and 2021, you'll see relatively stable revenue, then obviously, you see the impact of the Telephonics acquisition in mid-2022. What you don't see here, though, is the missed revenue due to material shortages, particularly from late 2021 through the present day. These material shortages result from the impacts of COVID on our supply chain. Our vendors, who are many of them, are small businesses. That's generally prescribed by the government and their procurement plans and as they let out contracts, but it's created a real challenge. They struggled the most in terms of managing through COVID. From a margin perspective, you can see a similar pattern to what we saw in our PCB business. In 2020, you can see the impact of COVID on margins due to labor absenteeism inefficiencies, as well as the extra cost to protect our employees. Late in 2021, similar to our PCB business, we adjusted our wage rate structure to keep and attract labor. This reduced our margins, and we also staffed up to meet demand. Cathy highlighted the order flow and orders that we're getting, so we staffed up for that, but we're getting disappointed a little bit in terms of the ability to get the material in to actually deliver on that. That has resulted in additional margin pressure. What's our action plan to deal with this? Phil highlighted organizationally what we're doing in creating a supply chain organization and bringing in focused management to address this business, because it's a little different than our historical PCB business. We're also taking short-term actions to reduce our costs, such as mandatory time off and other spending controls. We're resolving bottlenecks in our production program with key programs, which will drive additional revenue with the incremental margins that will come along with that. Longer term, we're addressing and making sure that we're delivering on the synergies from the Telephonics acquisition. We're driving supply chain improvements with our vendor base, both internal vendors and external vendors, and we're continuing to pursue cost recoveries from our customers as contracts and purchase orders renew. Our goal for this business is to drive our operating margin to 15%. Finally, if you look at our RF&S business, it's a little bit different. Here we have a high content of intellectual property or IP. it's a much richer margin business where we can do better financially. In 2019, you can see the impact of the export controls that were implemented that basically knocked out Huawei as a customer for this business. you can see through 20, from that point forward to mid-2022, we're really kind of climbing our way back up, bringing in new customers, and as the 5G rollout and infrastructure was going on, we were able to kind of grow back and replace that business. Like our commercial customers, though, our RF customers built inventory also as they were dealing with supply chain challenges in their own organization. As the 5G rollout slowed late in 2022 and the predictability of delivery of other components improved, our customers were taking actions to bring their inventory levels down. Between those two issues, you see a decline in revenue there over the last couple of quarters. Given our IP, our incremental margins in this business are very high. You can see how our line graph of operating margin very much looks like our revenue pattern. There's rich flow-through, both on the good, on the positive, when we're ramping up, and on the negative, when we're slowing down. Our action plan for this business, we've done two things. One, in the short term, we have reduced our workforce in this business, so we're taking some headcount actions. Secondly, like the rest of our business, we're having mandatory over vacation time, as well as other cost-spending controls. Longer term, we need to see a recovery in the 5G rollout. Right now, things in the world are pretty focused on India. That will change and expand again as the economy improves. We also need to expand our product offering and penetrate new markets. Doug Soder touched on this in his comments when he was mentioning our need for cross-selling of our services, components to our PCB customers and PCB to our component customers, and taking advantage of those relationships. Long term, and you can see we've been here in the past, the margins for this business should be up around 40% operating margin. That's the big dive on the details. What does it all mean when you kind of bring it all together? This is a bridge that we've put together to kind of show how we expect to improve from our results in 2022, on the left side, up to our target margin of 13%. The bridge starts, needless to say, 2023 isn't directly shown here, but 2023 is gonna be a tough year, coming off of 2022, largely driven by our commercial markets and what we're seeing in the industry. We've taken the short-term actions to address that and to mitigate those costs and that downturn, but this is predicated on recovering in those markets and then building on the longer-term action plans that we put together. I showed at the beginning of my presentation that our operating margin target's 11%-13%. This bridge shows you a path to 13%, highlighting the benefits of some major initiatives that we have going there. We've built in a little bit of margin error for curve balls that we might see from the economy or just other issues. That's the P&L. Quick view on cash flows and capital structure and capital allocation. You can see here on the left side, our cash flow from operations, generally above 10%, which is our target, except for 2021, which was a reflection of inventory build that we did and our customers were doing, and so we had some additional investments in working capital. That has since normalized back out. On the right side, you see CapEx there. In the first two years, that was really big investments in the mobility business, which we then subsequently sold. The last couple of years have been more sustaining level, so slightly below 4%. I expect in the next two years, you'll see an uptick at the high end of the range, 5% or maybe a bit above that, as we launch our Penang operation. In the center, you can see the free cash flow, which is an indication of the consistent ability that we have to generate cash. If we look at our capital structure, you may have caught that we had a press release go out yesterday. I think we're in great shape. We just completed the refinancing of our Term Loan B, which was scheduled to mature in 2024. We refinanced that with a new term loan that goes out and matures in 2030. From a financial perspective, it's priced at SOFR, not LIBOR anymore. LIBOR's gone away. SOFR plus 275 basis points, with 99 OID. Slightly more expensive than the term loan that we replaced, but given the market conditions, actually, I think a very good outcome. I thank a couple of the investors in this room for their support for that project. Thanks, Pen. You know, we then supplemented that with the fact that we entered into an interest rate swap about a month ago. $250 of the $350 million that we just re-upped in the term loan is actually hedged through an interest rate swap, where we get the 1-month SOFR, which today is over 5%. We've swapped that for 3.49% in a derivative that we put in place. Our effective interest rate for that $250 million is basically 6.25%. The remaining $100 million then floats with SOFR, which is a little bit higher than that right now. When you combine this new term loan with our hedge, along with the high-yield bond that doesn't mature until 2029, we're actually in very good condition for the next several years in terms of our capital structure. The other thing I'd highlight here is our leverage at 1.4 times. Our target net debt leverage range is 1.5 to 2 times, so we're slightly below that. That's just an indication of the strength and health of our balance sheet. On this slide, just really quick, you can see in the top right, our debt maturity schedule now, which is, we don't really have anything that's due, other than minor payments, so the 1% amortization on the term loan for several years. Then in the bottom right corner, effectively, 85% of our debt is fixed, either because it's a bond or because we've got the hedge in place. I might add, at pretty attractive rates. I think we're well positioned here for the next few years. Finally, looking at our capital allocation strategy, you know, first and foremost, our priority is to invest in differentiation. Whether that's internally through R&D, don't salivate, Rich, or capital equipment in terms of advanced technology capabilities or automation or through merger, you know, through M&A activities. To the degree we need to borrow money to execute any of that, particularly in the M&A front, then our second priority is to repay debt to get it down into that 1.5x-2x window, which is our leverage target. Our ability to generate cash is good. You saw that on our graph. We're pretty consistent. We're a mature business, so we believe we can also have an element of our capital allocation dedicated to returning money to shareholders. We had a $100 million buyback program that completed last year. We just announced earlier this month, a new $100 million program, and we'll execute that here over time. I will caution you, though, that to the extent we need to prioritize debt repayments or do M&A, our shareholder distributions could be a little lumpy. It's not like you're gonna have a steady amount every quarter. Sorry, some of you, but you know what I mean in terms of our prioritization. We're pretty straightforward about that. In conclusion, we have plans in place to improve our operations and to achieve our target financial model. We've got a strong balance sheet, and we generate consistent cash flows. As we look at our capital allocation, we're working hard to balance the investment needs of the business, as well as distributions to shareholders. That concludes our formal remarks. Tom, I'd like to invite you and my peers to come on up and join us, and we'll be happy to entertain some questions. Todd, I have a question for you just to get things started. Thanks, Todd. Can you talk about the impact quarterly on the refinance and the interest expense change that we would be seeing? Sure. as part of that? Right. As I indicated, the structure or the cost of the new term loan is pretty close to our old one, which is really good. We expect to probably have incremental expense associated with the new term loan of about $200,000 a quarter. There will be a non-cash noise that you'll see in the next quarter as we write off the old amortized, unamortized discount costs, as that kind of thing, of about $1.3 million-$1.4 million. That's non-cash. On the cash interest side, we expect probably $200,000 a quarter incremental cost. Thank you. Thanks, [inaudible]. Hi, Jim Ricchiuti with Needham. I wanted to go back to, Tom, it might have been you early on in the presentation. I think you gave some targets as to how you thought the A&D business would represent of total revenue, and maybe I misheard, but did I hear 50%? Yes. Long term, as we build the business and again, incorporating acquisition strategy as well, that's our goal, to be at about 50% aerospace and defense. That's incorporating acquisitions as part of that strategy. Today we're about 43, you know, give or take, 43%, depending on the quarter. Maybe, Todd, as we think about your longer-term operating margin target, what does that assume in terms of the profile of the business? We're assuming in there only organic growth. If there is an M&A event that happens that, you know, accelerates us towards that 50%, that would be outside the model that we built at this point. What I tried to share with you in terms of our targets are organic. It's good. You got to give Sameer's exercise if you want this. Go ahead, Matt. Thank you, and thanks for all the presentations, very helpful. I'm Matt Sheerin from Stifel. I just have a question about your China footprint. I think it's still 50% or so, right, of your manufacturing footprint. You've talked about customers wanting you to diversify, particularly within Asia. You've got that big Penang project. How should we think about that China footprint, let's say, in five years from now, where there'll be more consolidation, do you see more customers wanting you to move? In terms of the Penang, you know, revenue opportunities, how much actually shifts from China versus how much is incremental? Okay. Let me take the first part of that question, and then Doug, maybe you can talk a little bit about the Penang question. In terms of the operational footprint, we're actually, in our most recent quarter, about 42% was revenue generated from our Asia production sites. Now, that's shifted for really two reasons. One, the Telephonics acquisition, of course, brought us more North America-based revenue. The other is just the some commercial softness that we're experiencing. If you looked at sort of normalized, what would that look like? I would say, you know, more like a 45% Asia production, 55% North America. Particularly as we, again, look at supply chain management, we bring that revenue back into our North America footprint. Just to sort of scope that out in terms of where we are in Asia production. Now, you know, as we look at China, as you saw through Phil's presentation, we have basically 4 large facilities in China. Each one of those facilities has a clear charter. Phil showed you the Guangzhou site. Incredible capability there. It's our Guangzhou Technology Center site as well. We do some really complex, difficult work in the RF Center of Excellence for what we do in automotive. If you go to our Zhongshan plant, another one of our major plants in southern China, that is really focused on supporting Anthony's business. It's an automotive site. You're looking at lower layer count, really large-scale production of conventional and heavy copper boards that are then utilized in EVs. That's really the purpose of that site. If you travel up to HY, it's a smaller, one of our, I'll just call it mid-sized from a China standpoint, still much larger than anything we do in North America. That HY plant, which stands for Huiyang, that plant is a marvelous plant that focuses on front-end engineering capability, quick turn capability, and high-density interconnect capability that we have in Asia. A remarkably flexible site that we have positioned there. Finally, our Dongguan site, DMC, as we call it. That site really focuses on supporting the data center and computing, high layer count, end market. very high, again, high-level technology requirements. Just wanted to set the scale, sort of set that for you. Each one of these plants has a very specific charter and purpose. When we start talking about Penang, that's going to overlap a little bit with what we do in that DMC facility, the Dongguan facility, except that Dongguan is far ahead in terms of the technology target and where it is in technology. We'll be doing higher level technologies there for customer needs while we do lower layer, you know, a little bit lower layer count, more standard technology in Malaysia. As I set that stage, having said that, there certainly is a little bit of crossover, and Doug, you can address that. Okay, thanks for the question, Matt. Yeah, let's look at Penang through several lenses. First, we've got a handful of customer partners who have made capacity deposits with us and long-term commitments, and that's accounting for about 70% of the planned capacity in phase 1 for that factory. Those customers are all looking at what they call a China Plus strategy. Out of them, we're seeing a combination of both transfers and incremental business, skewed to the incremental side. The other way to look at it, even if they're planning to transfer business down to Penang, as Tom mentioned, what that does is it opens up capacity then to bring in additional business into the China plant. Those are some of the ways they're looking at it. That additional 30% of capacity we have to fill, we're primarily, between Anthony's team and our CNC team, we're going to be looking to drive more incremental business into Penang. That's generally how we're looking at it. We've got the core partners, and then that additional unfilled, uncommitted business that we'll be pursuing for incremental business as well. What I'd say, I mean, we're really excited. Obviously, this fills out for our customers, their supply chain resiliency strategy. Once they have this in place, they'll feel much more comfortable about placing business with us in the China footprint. Before we go to Will, I just wanted to make sure, Phil, anything else you'd like to add to that? I'm good. Good. Okay. Will? It's Will Stein from Truist. I want to follow on to Matt's question and then ask a second one. I think the reason for pursuing this very significant investment in Malaysia is because of the change in sort of military industrial strategy in the United States, right? Which locations, which geopolitical, well, which countries are more friendly versus not. When we think about that, you know, and where it could head over time, while I understand there's a significant manufacturing footprint among the EMS companies in Penang, it's somewhat of a less friendly country relative to some of the other options in Asia, like the Philippines, Thailand. I wonder if you can talk a little bit about the decision to go with Malaysia as opposed to some of the other opportunities in Asia. Sure. Sure. I'll start, and then I'll go to Phil and to help on the answer. Let me just start. Malaysia, as I think everyone knows, is part of the ASEAN group of countries. If you look at the official status or the official policy of that grouping of countries, it's to remain neutral in what is going on in terms of geopolitical tensions. Having said that, there has been certainly, over the years, a concerted effort, from the business community as well as from the U.S. government, to make sure that, these countries benefited from our chips, our semiconductor strategies, as well as the associated electronics, ecosystem. As a result, you see, EMS companies, as you mentioned, Will, largely concentrated in Penang. You see production in Thailand, as well, a little bit of production in the Philippines from a, again, an electronics infrastructure standpoint. As we engaged with our customer base, and Doug was, and Anthony were very involved in this as well, we started out with these core customers. We spent a lot of time with the core customers. This goes back to probably 2017, when we first initiated the discussions at a high level. We started talking with the customers about alternatives, where we might be able to go. These were commercial customers, Will, to answer your question, not concerned as much about U.S. defense policy, but much more concerned in their thinking about their reliance solely on China as a source, the need to start thinking about spreading, looking at other geographies to support their business needs. That's where the conversation started. We did a survey ourselves of the different options. I won't go into detail on the results of that, but I can tell you that a big part of that was in-depth discussions with those customers and then also with our EMS partners. General reaction, I would say those customers equally value Thailand with Malaysia, except that the proximity to the EMS side with Malaysia perhaps tipped them towards Malaysia a bit. That was one factor, so our customer input. I will tell you from a defense standpoint, of course, our board of directors, those of you, I think, are aware, but we have a government security committee on our board of directors. We have a lot of conversations about our plans, where we're going. Our board of directors won't go into great detail, but they were very comfortable with the choice of Malaysia. That was a critical part of the decision-making as well. The real important factor for us, finally, in going to Malaysia, was what I'll call the soft component of the decision-making, and that was related to our leadership in China, core engineering in China, and the personnel that we have there, a number of whom are Malaysian Chinese. The ability in startup, to rely on that work, on that workforce as our core engineering capability and the leadership understanding of how to do business in Malaysia, as well as the multilingual characteristics of Penang, Mandarin fluency in Mandarin, fluency in English, allowed us to do what Phil just described, which was send our engineers to China to train and to train in Mandarin, while also being able to interact with Phil at a level that has just been surprising to us. Culturally, I, again, I think many of you are aware, the Malaysian culture is different than the Chinese culture in a lot of ways. It's a much more outgoing culture. They interact with Phil, they interact with me when I visit, in a way that is different, and sort of Western, if you will, in terms of questions that are asked. It's been, so far, a tremendous experience, and I'm really pleased. We'll see now as we go into startup, how we do. A long answer, but that's really what went into the selection of Malaysia from our perspective. I did want to give Phil a chance to comment. Sure. Thanks, Will. Anthony and I were able to get into the Southeast Asia countries during COVID, which was an experience in itself. I'll say that, you know, when weighing Philippines, Thailand, Malaysia, just the Malaysian government from the onset, their development authority, just outstanding job, getting us in during COVID and greeting us, as well as InvestPenang. We can see the foundation. Obviously, we've done electronics for 50 years now, but we can see the foundation of the substrate investment that's being attracted into Penang and into Malaysia, and that's part of that food chain that we're headed towards, because again, you need that circuit board to support that business. We really see an additional resurgence, if you will, of electronics draw to Southeast Asia, to Penang in particular, Kulim, right up the street as well. That was a major differentiator. The other one is, Malaysia has studied how to raise a factory in less than 12 months, and they guaranteed they would raise the factory in less than 12 months. We're talking a 700,000 sq ft, 800,000, it kind of got a little bigger, sorry, Tom, but 800,000 sq ft factory in less than 12 months, okay? I wish the others well in those other countries to see if they have the engineering and the general contracting resources that are gonna raise a factory in even twice that time. It's really gonna be a differentiator. First to market was important to TTM, That was another key decision, was their focus on how to do these construction projects, and really bring to market faster. Thank you. Thanks, Phil. Appreciate that. I have a follow-up. Yep, go ahead. It's actually a different topic, but I'd like you to talk a little bit about the divergence between the backlog and the revenue growth in the Aerospace, Defense, and market. My sense is that if you could deliver, you know, everything that customers ask for, in other words, request date as opposed to promise date, that you could, you know, have a quarter where you had a quite a big revenue jump in that end market. Can you talk about the, I don't wanna say disconnect, but the separation between what customers want to get delivered versus what you can deliver, and what's the recovery, not necessarily strategy, 'cause you spent a lot of time talking about the tactics you're gonna pursue, but over how long do you think it'll take before there's a catch up to a point where you're delivering more in line with what customers want? Okay, this is going to be a two-part answer. Why don't we start, Cathy, with you, then we'll go to Phil. Sure. First of all, what I'll say about the aerospace and defense industry and the customer base there is, we'll never catch up. The way that the behaviors of that customer base, they always want it, need it yesterday, that whole element of speed. There is that sort of mindset that I think goes with this customer base. When it comes to our backlog, a few things I'll say about that. First of all, we, like the rest of the industry, challenged from a supply chain perspective. We've seen a number of challenges, and, you know, Phil has talked about that, could probably wax poetic about what we've seen from a supply chain perspective. We are seeing that improving, and as we advance up, and expand up that value chain and up the tiers, we'll have more and more strategic supplier choices that we'll be making as well. That will put us in a better position to be better prepared. The other element is that longer cycle from an A&D perspective, so that multiyear backlog that we have. Some of that, yes, we will accelerate through the addition of capacity and the hiring, maybe some automation and the types of activities that Phil could talk about. Catching up, I think that the way that I would address that is the demand is strong, very strong. The need for speed, our ability to reduce lead times, those are all the ways in which we will catch up. It's not like sudden. I don't actually believe we're gonna see a big shift in the ratios of our backlog to our revenue, if that makes sense? P hil? Yep. Number of quarters backlog. From the perspective of numbers of quarters of backlog, so like the backlog divided by revenue, I think that used to be in the 3s, and now we're almost 6. You've got about 6 quarters of backlog. Well, the backlog is not all shippable today. Right. Remember, we talked about long cycle purchase orders and programs. Cathy, maybe you can talk to that a little. I mean, take the example of the Raytheon SPY-6 award, right? That's a $500 million opportunity, $100 million a year. Now, not all of that is sitting in our backlog, but we have multi-year programs and long-term agreements, right? Within that $1.38 billion of backlog, we have product with a delivery schedule that goes out maybe as far as 2.5 years in some cases, right? If you look at the sort of long-term range of our backlog, I think 2.5 years is probably a fair assessment of that, and it diminishes with time. We have strong backlog positions, both for where we are now, rolling into 2024, you know, carrying forward into 2025. It's certainly not equally spaced or divided. Phil? Sure. Thanks, Tom. I think you'll see from a revenue perspective, the sequential growth quarter-on-quarter for the out quarters. Definitely, supply chain was a challenge. I think Rich showed you an example of something that we're going to be building in-house now. When we went outside to market, we had an excess of one-year lead time to get the circuit card assemblies, and we actually built the circuit boards in 10 days in our Logan facility and are stuffing the boards in our Stafford Springs facility in about a five-week period. We'll actually produce something in less than two months that the outside market was quoting one year at. We're going to start leveraging some of that vertical manufacturing capability. Really, if... Another pivot that's happened is, over the past 10 years, the government started going from three to five -year awards down to one-year awards, and we lived for, like, eight years on one-year award, one-year award, one-year award. They're finally pivoting back to two-year, three-year, four-year awards, we're getting better visibility. They still order late, we still have to recover, but at least when they're ordering, they're giving us a two, three, four-year outlook on demand, and we're able to schedule our factories, schedule our labor, get the capital in place. Sequentially, quarter-over-quarter, the future is bright from a revenue perspective for A&D. Byron? Sure. Thanks for doing this. Byron Callan, Capital Alpha Partners. For Cathy and Rich, two questions. You talked about space as a growth area. What about weapons systems? That's another area that Pentagon is placing a lot of emphasis on. Are there opportunities for you to grow into some of these programs? The other question relates to market growth. Is there an outsourcing opportunity when you're looking at some of these primes, that's above and beyond the growth rates that the market might show? I'll let you talk about weapon systems. I'll hit the second part first. I'll talk about the second part of your question first. One of the things that we do see on a pretty regular basis is that opportunity for outsourcing from the primes. Our long-standing relationships, our earlier engineering engagement, bringing the engineering wherewithal to those design decision making, and then the affordability piece, right? We often have discussions. We know the customers are trying to bring the most affordable solution to the war fighter. During the early phases of design and development, there's this very, like, tight, close hold with those OEM primes. They wanna control it. They wanna make sure that they're gonna be assured that it's going to happen. They pivot their focus, right? That is where we find we have great opportunity, and we often are the beneficiaries through our manufacturing capability and those close relationships that we have of that outsourcing strategy. Oftentimes, one of the first steps they'll take is their dual source strategy. They're one of the duals, and we are the other. Then, because of that dual source within TTM strategy that we have so successfully implemented again and again, they get even more comfortable. Instead of them being the dual source, we can provide them two locations, and we've seen that very successfully implemented a number of times. We anticipate that, yes, you know, to your point about, you know, how the Department of Defense or the primes may be defining their growth, there is additional growth opportunity for us because of that outsource. It's a great question. Do you want to talk about it? Sure. I guess I'd answer that by saying our current roadmap thinking is to look at other mission areas, but initially at the tier two and three, versus trying to go in as a tier one supplier into something like weapons systems. In some areas of tier two and three, where we think are not only applicable to weapon systems, but a number of other areas, would be in our integrated microwave assemblies. One of the things that Telephonics has brought to TTM is a broader view at a system level of what's required from these highly integrated type of microwave assemblies. We think by working with our Anaren folks up in Syracuse, we can create additional value add that might fit into a market like that. Also microelectronics. We have focused primarily on microelectronics and power conversion and analog. I think there's a lot more capability that we possess and competencies to take microelectronics into other areas also. I think in the end, it's, you know, start at tier two and tier three as we migrate into other mission areas, and then see if we can find a tier one position down the road. Yeah. I was thinking of, you know, you guys from a weapon system, direction of the question. I mean, with these rates coming up. Yeah. -capacity issues, you know, you can look at the, what's in the J books. Yeah. Mm-hmm. Yeah. Mm-hmm. I mean, there's some pretty sporty rates out there. That's right. You get into capacity questions. Mm-hmm kind of a life question in the data sourcing, too. Yep. If you look at existing systems that are getting all the much of the press, we certainly are present in those. We're present. We have been part of the, let's just say, the updating of the revs, and are very involved in supporting, will be involved in supporting those programs. That will primarily, as Rich said, be more on the tier four, tier three. If you think about, we've got a long history on navigation and guidance, which is a pretty key sub-element of some of those weapon systems that you'd be talking about. Hi, another question, Jim Ricchiuti from Needham. Just this is a question regarding market verticals. I was hoping you could talk a little bit about the strength you've seen in the automotive design wins Q4, Q1. You know, what's contributed to that? Is it electrification? Is it ADAS? Is it just share gains? Then, another part to that question, Cathy, you may have given this information about commercial aerospace. We're seeing a recovery in that market. Is that an appreciable part of the business? Then final part to the market vertical question, maybe this could be one for you, Tom, is as it relates to, since the quarter, Q1 ended, are you seeing any changes in the way you're viewing the market verticals over the balance of the year? Thank you. Sure. Let's start with automotive. Anthony? Sure. Good question, Jim. A number of things are contributing. I think Q4 2022, that large design win in the quarter, probably due a little bit, at least, to a weak first half in 2022. However, we've seen this continue in now 2023. Really, what's being driven there is certainly mega trends of electrification, ADAS being positioned with the right customers in the right areas. Also, if you look at our customer base, we used to be much more concentrated with fewer customers, and now our base of automotive customers is much more broad. We have more opportunities, more customers to grow with. We're going now with, you know, 5, 6, 7, 8 customers of critical size, and we're positioned well and in the right areas, and that's what's really driving that design win. Cathy? Sure. On the commercial aerospace side, less than 10% of the A&D portfolio, saw that drop off a bit over the last few years, as you can imagine. We have seen a sizable uptick from a bookings perspective, especially as we came into Q1 of this year, I think north of 40% increase in that bookings profile. We know there's a lot of inventory out there, right? We tend to supply not directly to the major airframers, but through their supply base. A lot of inventory was out there, but we're starting to see that turn around, and Q1 was certainly a big, strong indicator for us there. Yeah, exactly. I think that, you know, both sequentially and year-over-year, we've been seeing nice growth there in commercial aerospace, which should bring it back in line with where it should be, which is around that 10% area. From a what has changed standpoint on the verticals, I think the, you know, the overall trend Doug talked about, probably on the, you know, on the positive side, some what we like to call green shoots, but some positive signals in terms of AI impact on data center, and therefore, and the data center wins that come with that. That's a positive signal. We'd like to see that more broad-based across data center and networking, but still some good, you know, positive signals there from a booking standpoint, Jim. On automotive, I know I've talked with investors about the fact that, you know, here we are, everyone's talking about mid-year analog catching up, that things are gonna come into balance, and then let's see what happens in the second half of the year. What I can tell you is we really haven't seen a substantial change in terms of the environment in automotive. So again, things seem to be moving along. I've also talked a lot, and I still, and I know Anthony watches very carefully what will happen in China. You know, it's sort of mixed data points on automotive in China right now. The EV move in China has been substantial, and EV will continue to be a driver of demand out of China. China, of course, represents close to a third of that global market. Eyes on China as we go into the second half on automotive. So far, nothing that we can point to that shows a weakening in automotive in terms of the end market. You look at, you know, I think, again, inventory, the other markets that I've talked to, pretty consistent with what I talked about at the end of the quarter in terms of, you know, if you look at areas of weakness, if you will, certainly, you know, networking has remained an area of some weakness. Inventory, both inventory reductions, there and some demand softness. Then if you know, data center, I talked about, if you climb up medical, industrial area, inventory adjustments, but certainly more short term in nature. I think the demand still strong, certainly both in medical and industrial. Then where you have weaknesses more on instrumentation and semiconductor. Yeah, continuing to be. You know, I think, again, I listening to the voice of the customer, I've talked about next year on semiconductor. Maybe it moves in a bit, and that would be the only change. You know, maybe a few signals from customers that they could see demand start to come back earlier than next year. Though, again, nothing that I would write home about yet. Okay? Go. Good afternoon. Rocco Barbero from JP Morgan. Digging in a bit more on the M&A side of things, especially in aerospace and defense, are there any specific capabilities that you guys are looking to add? Then on size of deal, are you looking for more of, like, a larger, like, transformational acquisition or more like smaller tuck-in style deals? Maybe I'll address that first, and then Cathy can add comments. The M&A, which I covered early on, as you look at really filling in that vertical, we've got Telephonics, we've got strength in radar, as a result, RF support that we provide with our Syracuse and integrated electronic support, if you will. As we start to fill in those gaps, we're looking at the right kind of investments, predominantly in the microwave, RF microwave area and the microelectronics space. A lot of demand in microelectronics. You know, at this point, we have good organic capabilities there. We'd like to add more in terms of capability there. Those are two areas I'd identify as areas that we will continue to look at. From a sizing standpoint, you know, we always like to say that we have an eye to the balance sheet. We also have an eye to what strategically fits with our direction. I hate to put a sort of boundaries on what we'd look at, but generally, if you think about the properties that would come up, they'd be in more the mid-size kind of area than anything else. Cathy? Thanks, Tom. I'm not sure that I have a whole lot more to add. That was really a great answer, boss. You know, I think if you think about the strategy and the way that we're organized, we are very deliberate on the mission areas that we're focused on. We feel very good about the strong OEM relationships that we have. We're building and growing those direct and customer relationships as well. Those are some of the other things that I would say, we pay attention to. You know, as Tom mentioned, right now, not a whole lot of activity going on out there. You know, the types of things that Tom talked about and how they fit into our vertical strategy so that we can round out vertically. I think that we feel pretty good about the focus that we have, and it's those specific mission areas that we'll round out. I'll just add a couple of other things. I think Cathy talked about the environment. You know, certainly, I agree on the environment. We do have a robust M&A pipeline effort, it's an ongoing process for us looking out there and making sure that we are clear and that we are both strategically clear on what we're trying to accomplish, and also that we have action plans. We're always looking at the opportunities. I did want to add Matt Mahoney there in the back of the room. Matt's responsible for our business development in the A&D area. Did wanna highlight, he's done a great job getting us organized. Yeah. All right, are we ready for lunch? I think so. Thank you, everyone. Thank you for your time. Really, enjoyed the questions, thank you to the presenters. Thank you.