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Co Corp rpor orat ate e Ove verv rview iew Corporate Presentation NASDAQ:SMTX AU AUGUST UST 20 20, 20 , 2018 18 FORWARD FO WARD-LO LOOKING OKING ST STAT ATEM EMENT ENT This presentation contains forward-looking statements

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Corporate Presentation NASDAQ:SMTX

Co Corp rpor

  • rat

ate e Ove verv rview iew

AU AUGUST UST 20 20, 20 , 2018 18

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This presentation contains forward-looking statements within the meaning of U.S. federal securities laws. These forward- looking statements include, but are not limited to, statements regarding our expectations, hopes, beliefs, intentions, plans, prospects or strategies regarding the future. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts or

  • ther characterizations of future events or circumstances, including any underlying assumptions, are forward-looking
  • statements. The forward-looking statements contained in this presentation are based on our current expectations and

beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

FO FORWARD WARD-LO LOOKING OKING ST STAT ATEM EMENT ENT

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Global mid-size provider

  • f end-to-end EMS

PCBA production Systems integration Comprehensive testing services Product design Vertical integration Enclosure fabrication Sustaining engineering Supply chain management services

Servicing product lifecycle Industry quality recognition

Global EMS Award for Product Quality1 North American EMS Growth Leadership Award2 Customer Value Leadership Award3

OV OVER ERVIEW VIEW

3

1 Frost & Sullivan 2012 2 Frost & Sullivan 2013 3 Frost & Sullivan 2016

Support and maintenance from product development to end-of-life transitioning

New leadership team making an impact

YTD 2018 up 23% over YTD 2017 Targeting 28%-plus revenue growth in 2018 (Aug 8, 2018 Form 10Q, 8K)

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Achieving Top-Quartile Operating Metrics Among Peer EMS Companies Targeting $200+M Revenues in 2 Years from $139M in 2017

On One Vision, On One Mission, On One SMTC.

Increase Business with Existing Customers Through World Class Service Achieve Double Digit Growth With Existing Through New Programs Become Provider of Choice And Win New Customers to Accelerate Growth Drive Value via M&A, Expand Mix of Lines of Business and Increase TAM with Supply Chain Synergies to Gain Scale

SMTC PILLARS OF SUCCESS

Relentless Pursuit

  • f Profitable Growth

through Customer and Employee Excellence

Above Market Returns for our Investors

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PROG OGRESSION RESSION TO BE B E BES EST-IN IN-CLASS CLASS PEE EER ME METRICS ICS

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7.7% 8.2% 9.1% 9.6% 11.5% 11.9% 19.7%

K E Y T R O N I C S Y P R I S S O L U T I O N S S M T C S I G M A T R O N N O R T E C H S Y S T E M S I E C S P A R T O N

GROSS PROFIT (%) TTM

$85,773 $108,868 $110,328 $154,657 $278,132 $378,906 $447,838

S Y P R I S S O L U T I O N S N O R T E C H S Y S T E M S I E C S M T C S I G M A T R O N S P A R T O N K E Y T R O N I C

REVENUE ($) TTM

  • 1.33 %

0.88% 1.46% 3.14% 4.33% 4.61% 5.78%

S I G M A T R O N N O R T E C H S Y S T E M S S M T C I E C K E Y T R O N I C S P A R T O N

ADJ EBITDA (%) TTM

S Y P R I S S O L U T I ON S
  • 6.24%
  • 2.53%
  • 2.22%
  • 1.17%
  • 1.00 %

0.49% 1.85%

K E Y T R O N I C I E C

NET INCOME (%) TTM

S P A R T O N S Y P R I S S O L U T I ON S N O R T E C H S Y S T E M S S I G M A T R O N S M T C

Q218 9.6% Q218 3.50% Q218

  • 0.00%
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DI DIFF FFERENT ERENTIA IATI TING NG LE LEAD ADERSH ERSHIP IP TE TEAM AM

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Rich Fitzgerald

COO

18+ years: electronics industry experience

Ed Smith

President & CEO

25+ years EMS, electronic components distribution industry experience SMTEK increased from $0.35 to $15.23 at takeout under his stewardship At AVNET led Americas component

  • perations growing from $ 1.2 to $4.0B

Started a global embedded business and grew to $2.2B in 7 years

Steve Waszak

CFO & SVP M&A

20+ years finance, strategic M&A development experience

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NE NEW LEA EADERSH DERSHIP IP TEA EAM M MA MAKING ING AN I N IMP MPACT ACT

Source: Yahoo! Finance 7

SVP GSC

MAY 1 2018

CFO

MAR 13 2018

VP Customer Acquisition

DEC 18 2017

CEO and COO appointments

MAY 16 2017

Q2 2017 – Initiated a restructuring plan to address customer needs, financial sustainability and

  • perational excellence

Stabilized long-term customer-base Expanded addressable market Strengthened the organization with key executives to focus on growth Q2 2018 – Improving results and 28%- 32% top line growth outlook for 2018

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 6/1/2018 3/1/2018 12/15/2017 10/5/2017 7/26/2017 5/15/2017

IMPROVING STOCK PERFORMANCE

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GLO LOBAL AL FO FOOT OTPRINT INT

Common Copy Exact Solutions

Toronto nto, , Canada ada

Design & Engineering Center Technical Services Group (TSG)

Dongguan, uan, China na

Manufacturing & Repair Facilities 150,000 square foot 4 story facility, providing world class engineering, printed circuit board assembly and integration for finished devices globally.

8

  • Approx. 500,000 square feet of

manufacturing capabilities globally for best-in-class cost opportunities. More than 40 manufacturing and assembly lines

Frost & Sullivan Award Winners

Product Quality, Growth Leadership & Customer Value Leadership Awards

GENERAL AL CERTIFI FICAT CATIONS/ S/STAN ANDAR ARDS ISO 9001:2015 ISO 13485:2003 ISO 14001:2004 IPC-A 610 Class I, II, III FDA Registered AS9100 (August 2018) Fremo mont, nt, USA A HQ

NPI Tech Center connected to global production sites for quick-turn prototyping and new production launches 334,000 square foot facility, 17.5 acre campus offers customers, in-house metal fabrication, cable & harness assembly for high quality services in an efficient, cost effective site

Chihua huahua, hua, Mexico co

Manufacturing & Repair Facilities

Hong Kong

Global Procurement Logistics Center

El Paso, so, USA

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FOCUS CUSED ED ON AT N ATTRACTIVE ACTIVE END MARKE KETS TS

INDUSTRIAL MEDICAL TEST & MEASUREMENT (IoT) PAYMENT SYSTEMS OTHER SEMICONDUCTOR

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LARGE, GROWING, MEANINGFUL

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FA FAVO VORABL ABLE E INDUSTRY DUSTRY TR TREND ENDS

Source: SEMI (www.semi.org), November 2017 10

  • North American PMI, SEMI,

PCB Indices all show growth through 2018

  • Manufacturing and PCB

showing projected growth of 5.8% in 2018

  • SEMI Book to Bill

Ratio currently at 1.06

  • PCB Book to Bill

Ratio currently at 1.14

1.03 1.08

  • 0.99-0.96-0.99

1.04 1.07 1.09 1.05 1.08 1.09 1.15 1.14

2 0 1 6 S E P 2 0 1 6 O C T 2 0 1 6 N O V 2 0 1 6 D E C 2 0 1 7 J A N 2 0 1 7 F E B 2 0 1 7 M A R 2 0 1 7 A P R 2 0 1 7 M A Y 2 0 1 7 J U N E 2 0 1 7 J U L Y 2 0 1 7 A U G 2 0 1 7 S E P

TREND IN NORTH AMERICAN PCB BOOK-TO-BILL RATIO MARKET TRENDS IN NORTH AMERICA ELECTRONIC PRODUCTS

3/12 GROWTH RATES PURCHASING MANAGERS INDEX U.S New Orders for Computers and Electronics PCB Sales EMS Sales Semiconductor Sales U.S Purchasing Managers’ Index 2014 SEP 2014 DEC 2015 MAR 2015 JUNE 2015 SEP 2015 DEC 2016 MAR 2016 JUNE 2016 SEP 2016 DEC 2017 JUNE 2017 SEP 80 75 70 65 60 55 50 45 40 35

  • 20%
  • 10%

0% 10% 20% 30% 40%

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FI FINANC ANCIAL IAL SU SUMM MMARY ARY

*50%+ of incremental Manufacturing Value Add dollars contributes to Gross Profit 11

KEY STATISTICS

Stock Price (8/7/18) $2.65 / share Market Cap (8/7/18) $45.6 M Total Ent. Value (8/7/18) $65.3 M Ticker / Exchange SMTX / Nasdaq Basic Shares (6/30/18) 17.2 M Diluted Shares (6/30/18) 17.7 M NET Debt (6/30/18) $ 19.7 M

CAPITALIZATION

In $1,000, except EPS Long Term Target Model Q2 2018 Q2 2017 FY 2017 FY 2016 FY 2015 Revenues 20% growth* 44.5 33.0 139.2 167.9 220.6 Gross Margin 12%-14% 9.6% 4.3% 7.8% 10.6% 8.0% Adj EBITDA 1.6 (3.6) (1.5) (4.7) 5.7 Adj EBITDA Margin 6%-10% 3.6% NM NM 2.8% 2.6% EPS (0.01) Nil (0.47) (0.01) (0.00)

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INCOM COME E ST STAT ATEM EMENT ENT

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(Unaudited) THREE MONTHS ENDED

Expressed in thousands of USD, except number of shares and per share (amounts)

JULY 1, 2018 JULY 1, 2017

Revenue $ 44,479 $ 32,995 Cost of Sales 40,196 31,575 Gross Profit 4,283 1,420 Selling, general and administrative expenses 3,647 4,110 Operating income (loss) 540 (5,642) Interest expense 403 217 Income (loss) before income taxes 137 (5,859) Income tax expense (recovery) Current 196 168 Deferred 38 (14) 234 154 Net income (loss) and comprehensive income (loss) $ (97) $ (6.013) Basic earnings (loss) per share (0.01) (0.36) Diluted earnings (loss) per share (0.01) (0.36) Weighted average number of shares outstanding Basic 17,222,439 16,807,333 Diluted 17,222,439 16,807,333

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BAL ALANCE ANCE SH SHEET EET HIGHLIGHT GHLIGHTS

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(in thousands) JULY 1, 2018 DECEMBER 31, 2017

Current Assets $69,679 $59,188 Property Plant & Equipment 11,732 10,269 Other Long Term 472 399 Total Assets $81,883 $69,856 Current Liabilities $55,267 $44,693 Long term Debt 5,500 6,000 Other Long term liabilities 450 89 Stockholders’ equity 19,869 19,074 Liabilities and stockholders’ equity $81,883 $69,856

KEY STATISTICS:

JULY 1, 2018 Cash-to-Cash Cycle 61 days DSO 61 days DPO 74 days Inv Turns 5.0x Net Debt $19.7M

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INVESTMENT VESTMENT HIGHLIGHT GHLIGHTS

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What is Changing?

New Leadership Team with Demonstrated Track Record Pursuing operational excellence and focused at SMTC on achieving top- quartile operating metrics among peer EMS companies Expanding Customer Base and Top-Line Growth Working Together as a Team to Deliver Premium Shareholder Value Diversified Customer Base with No Significant Concentration Strategically Placed Global Footprint Offers Best-of- Class Options to Customers Focusing on the Most Attractive End Markets Favorable Industry Trends Provide Backdrop for Strong Performance Free Cash Flow Generation with Attractive Deleveraging Profile Accelerating Year-over-Year Revenue Growth

Targeting $200+M in Revenues in 2 Years from $139M in 2017 with Double Digit Gross Margins

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TH THANK YOU ANK YOU

Contact

Peter Seltzberg Managing Director, Darrow Associates, Inc. 516-419-9915 | pseltzberg@darrowir.com

AU AUGUS UST T 20 2018 18