All right. Hi, everyone. I'd like to introduce today Tom Edman, President and CEO of TTM Technologies. Tom.
Thank you very much. Morning, everyone. I'm gonna tell you a little bit about TTM Technologies today, talk about specifically our platform for growth with aerospace and defense, and then go through some of our other commercial activities. Just to start with is, as you look at TTM as a, as a company, we are a large, leading technology solution provider, engineered systems, PCBs, specialty components. The company itself has about 17,000 employees, 27 facilities, and revenues last year of $2.5 billion. You can see shown here, our end markets, and our end market spread as well.
It's a diverse set of end markets, including data center, and computing, the networking end market, aerospace and defense, medical, industrial, instrumentation, and then automotive. Today I'm gonna spend some time on our strategy, talk specifically about differentiation in terms of our technology breadth, and also our global footprint. We'll go through diversification in terms of our end markets and our diverse set of end market exposure, and then discipline around our financial execution. To start with, though, I wanted to spend a little bit of time on the last year, and how we've done in the last year. Solid P&L performance. You can see we grew revenues by about 5.5%.
That's despite some of the challenges we had, particularly in the North American side with labor challenges and supply chain. non-GAAP earnings per share of $1.74. Nice improvement from 2021. Solid balance sheet, strong cash flow at about 10.9% of revenue, and then free cash flow at about 7% of revenue. We did complete a $100 million stock repurchase program. We also acquired Telephonics during the course of the year, and we broke ground on our Penang, Malaysia facility. Quite a bit of activity in this past year that sets us up well going forward. TTM as a whole, we've built the company through strategic acquisitions. Focused first on building our printed circuit board position.
2009, or actually 2006, we acquired Tyco Printed Circuit Group. That really set us up in the aerospace and defense market for printed circuit boards. We then brought in our Asian footprint with the acquisition of Meadville. We built on that position both in aerospace and defense and in industrial with the acquisition of Viasystems Group. At that point, we really had a strong printed circuit board footprint. We started to look beyond the printed circuit board on building a real value add package. We were able to acquire Anaren in 2018, added substantial RF capability with that acquisition. Built on that again in 2022 with the acquisition of Telephonics.
And that now really brings us into radar systems themselves, along with the modules that support RF radar or active electronically scanned array, as they're called, along with a very strong printed circuit board foundation. That's the company today. Really reflects a strategy of focus on differentiation. How we do that, first of all, reducing exposure to direct consumer-oriented businesses. We did sell our mobility business back in 2020. We have been investing in engineering technology and product capability. Then really with a focus on that result, which is a value-added package that we are, that we deliver to our defense customers, along with a strong diversified overall portfolio. A couple of the moves that I just highlighted in the last year. One was the acquisition of Telephonics.
That really established TTM with a $1 billion aerospace and defense business. A very strong business there. Focus again on radar. 50% of the business is in radar. The other 50% really adding to the TTM portfolio with communications and surveillance capability. Significant value creation from a standpoint of revenue, synergy opportunities in radar, and then coupled with cost synergies of approximately $12 million that we'll be delivering through the course of this year. Substantial financial benefits short term as we also build margin and revenue for the long term. You can see the overview here. Telephonics, if you look at TTM overall, primarily tier four and tier three capabilities with the printed circuit boards, the RF component, RF module capability and sub-assembly capability, as well as microelectronics.
With Telephonics, really acquiring that product, capability. Lot of room now to build in between those capabilities as we look forward at our future M&A strategy, but particularly in that radar area and in microelectronics, significant opportunities for us going forward. We brought in 625 employees, with 25% of those, being engineers. Very happy that they're part of the TTM organization, and a real effort now as a combined engineering team with our new aerospace and defense organization to develop and build on that revenue synergy opportunity. The other strategic move in the last year, was our announcement and groundbreaking for a Malaysia facility for printed circuit board production.
We're looking at approximately $180 million in revenue potential here as we bring that facility on stream. That will be happening in the fall this year and really scaling and ramping into next year. You can see a very large facility, over 700,000 sq ft in Penang. multi-layer printed circuit boards for primarily data center computing and medical industrial applications. A lot of customer investment. The key here is that our customers have come along with us for the ride. We have five anchor customers who have agreed to long-term agreements with TTM that include deposits. They are invested in this facility, as are we. We'll be bringing it up as quickly as we can through the course of this year and into next.
That's the backdrop. Now I'll just talk a little bit about the strategy, lay that out for you. Starting with the diversification aspect, talking through our end markets. I'll spend particular time on aerospace and defense. It's appropriate for this conference, and also core to our strategy. If you look on the on the left-hand side here, you can see what aerospace and defense represents for TTM as a percentage of our revenue. About 35% last year. If you'd looked at Telephonics being part of TTM for the full year, that would've been about 40%.
Growing a strong position for TTM in aerospace and defense end market driven by this transition from static radar to active electronically scanned array, and then our support for that capability through our RF position, printed circuit board position, as well as our radar direct radar involvement. CAGR projected, and these are long-term numbers that are projected by market forecasters, but about 3%-5%. We do view our position this year as very strong, and we're hoping to be above that level this year. How are we doing that? Driven, first of all, by some great megatrends, budget support.
Obviously, if you've been watching the Biden administration, they've already laid out a budget for next year that shows a nice 5% increase. We'll see where Congress goes with that, but I think if anything, we'll see that move upwards in these times. A strong growing defense budget backdrop. We are involved in key program ramps throughout aerospace and defense. I'll go into that in a little bit more detail, but you can see over 180 defense programs that we are involved in. We are particularly strong in radar, and I've already talked through this critical transition that is occurring. We are seeing ongoing supplier consolidation. We have been part of that as we've built our position in aerospace and defense.
If you look at the business at a glance, first thing I'd highlight is our bookings levels. If you look at the fourth quarter, we brought in bookings of about $460 million. That positions TTM as a whole with a program backlog of $1.36 billion, okay? That's for a billion-dollar revenue business. This gives us a lot of visibility here as we go through the course of this year and next year. Generally, that program backlog translates into revenue over the course of about two years. Significant growth in that program backlog, and if you pulled out Telephonics, we're still at $1 billion in terms of organic TTM program backlog, which is a record for TTM.
A very strong program backlog that reflects strong program alignment with our customers, and as I've highlighted already, an ongoing engineered product focus. That translates into our revenue mix. If you look on the right-hand side of the chart here, you can see primarily a printed circuit board and assembly business back in 2017. We added Anaren into the mix. You can see the RF component position growth starting in 2018, and more recently adding in the engineered systems capability with the acquisition of Telephonics. We're now looking at a business split that's about half and half. Half printed circuit boards, half value-added product, what we call Integrated Electronics in terms of our capability. Very different portfolio going forward.
A lot more value that we're delivering to customers. If you look at the programs and how the programs are aligned, a lot of strength in that radar systems. We've highlighted in bold some of the programs that Telephonics brought to us. A lot of primarily helicopter-related programs, very strong in that platform for radar in particular. You can see the number of radar systems, radar programs we're involved in. I'll just highlight a few. F-35, AMDR, we have particularly strong content there. SABR, we have strong content there as well. If you come down to LTAMDS, which is the replacement for the Patriot, Low Tier Air Missile Defense System, again, strong content for us on the RF side there.
Coming over to missile systems, APKWS, again, a core program for us. Going down through here, the HELLFIRE ongoing program that of heavy involvement from a TTM perspective. Communication systems, nice spread there as well. Again, Telephonics contributing program involvement. Then space systems, we're involved both on the commercial side and on the defense side with space systems. Again, throughout providing products throughout our portfolio into space systems. You can see a nice representation here of both commercial and defense. Finally, surveillance systems, which really Telephonics brought to TTM. As an addition, we're looking at now with Telephonics, direct involvement with the government in the programs that we're involved in, as well as strengthening our relationships with the core primes.
A tremendous addition to TTM. Just wanted to spend a little bit of time on the rest of our markets. Automotive right now again, projected by the market forecasters to grow long-term at about 6%-8% growth. What's driving that is electronics content in the vehicle. You're looking at printed circuit board content moving from about $80 at the end of last or two years ago to what is projected to be about $100 of printed circuit board content by the end of this year. Nice growth in electronics content, driven primarily by the incorporation of more and more sensor capability.
ADAS capability into the vehicle, as well as the use of more and more heavy copper as we go through this electric vehicle transition in the automotive market. TTM is positioned very well here, obviously, in terms of RF positioning for radar and sensors, as well as a strong position on the EV platforms going forward. That's what we're relying on for our growth. We do expect to be below the 6%-8% in terms of growth. Last year, we grew about 4%, but that was coming off of a very strong two years previous. Excellent market for us and very stable right now in the present climate as well.
If you move down to data center computing, we're looking at a market again that has been growing very strongly for TTM. About two-thirds of our involvement here is in data center, about one-third is in semiconductor. That one-third in semiconductor has gone through about 2 quarters of softness. Data center, more recent softness. If you look, however, at where TTM sits and you look at the last two years, we've been growing at double digits rates. Last year, we grew at 17%. Strong growth for TTM in terms of our platform capabilities. We'll be using this period of digestion to really improve, work on improving our market position, so that as we come out of this, we'll be in an even enhanced position there.
If you move down again, down to medical industrial instrumentation, obviously a very large market and a great spread here in terms of customers and customer activity. We have a tremendous position in MII. We are the market leader overall. Last year, we grew about 17% again. The market projections are 2%-4% long-term. We do expect to be below that this year, primarily because the instrumentation market is soft, and that's tied primarily to semiconductor. About a third of our demand in MII is semiconductor or instrumentation, about a third is industrial, and a third is medical. Less concerned about medical and industrial instrumentation we expect to be soft through the course of this year.
Again, very strong positioning and strong growth rates overall, if you look historically for TTM. Then finally, networking. We're involved across the board on networking, including enterprise. That's our, where our strongest volume position is. We are projecting again that we will be below the 3%-6% that's forecast long-term in the networking market. That market is going through, again, a period of digestion here this year, at least in the first half. We'll see how the second half shapes up later in the year. Overall, a nice position across the board on networking for TTM.
You can see a diverse set of end markets all showing varied levels of growth, all driven by strong mega trends, and long term, we're positioned strongly in the, in these core end markets. Now let me talk a little bit about our differentiation as a company. First of all, a terrific spread of technologies. We have our core printed circuit board positioning as a company, and if you look at this first line, Aerospace & Defense, we've been very deliberately building on top of that printed circuit board capability in associated areas in order to improve our overall value-added package that we deliver. And you can see that demonstrated here with the RF component position, microelectronics and subsystems, moving into radar, and then communications and surveillance.
On the commercial side, primarily printed circuit boards with an RF component position that complements that printed circuit board position. Continuing to build there as well, very deliberately, where we can add value to what we deliver to customers. If you look at advanced technology capabilities in printed circuit boards and then beyond that in terms of what we provide to customers, we're at about 39% of revenue there. And we'll continue to build that position going forward. Big part of this is how we engage with our customers.
In aerospace and defense, we're either up front as the customer is building, designing a platform with our product solutions, or we're gonna be very early in their process as the customer releases an RF specification or a radar specification, and we'll be supplying the modules, the RF modules to meet that requirement. We'll simulate the RF capability and provide a comprehensive solution to the customer early in the product life cycle that then positions us for the long-term program as that program develops. On the commercial side, we're also early. Our field application engineering team is engaging with the customer as they go through the early stages of product design and the printed circuit board design that goes with it. We support that with a terrific footprint, global footprint.
For the commercial markets in North America, we do our prototyping, early stage builds in our North America facilities, and then we transition as the customer goes through product life. As they move from pilot and prototyping into production, they have the opportunity to move that business to China, where we'll do the volume production. In the future, we'll have that position in Penang and Malaysia as well. If they are looking at a particular program that demands supply chain resiliency, we'll be able to supply them out of Malaysia as well. Comprehensive footprint that responds to customer need on the commercial side. Aerospace and defense, we have each of our facilities has a charter.
They are involved in specific program needs and technology needs for the customers that can range from rigid printed circuit boards to flexible printed circuit boards into advanced technologies or into the non-PCB area where we do assembly, sub-assemblies, integration work for the customers. A nice set of facilities to meet customer needs here. And then finally wanted to touch on the financial discipline side. If you look at our performance here over the course of the last several years, starting with revenues, we did sell our mobility business in 2020, and we closed down a couple of our commercial facilities, commercial assembly facilities. Most recently, we've announced some additional consolidation. We are closing down two small facilities in California, bringing that capability into the balance of our footprint.
Uh, we have been investing in our North America footprint, uh, to be ready, uh, for this kind of consolidation. So we'll be moving out of these, uh, smaller facilities that are in, uh, high-cost areas, uh, moving those into some of our larger North America facilities. We'll also be closing our Hong Kong, uh, facility and moving that capability into China. Uh, so that's-- those are, uh, critical moves. And then finally, we, we announced last week the sale of our Shanghai backplane, uh, facility to a China assembly, uh, manufacturer. We're putting that business into the right home, taking care of our employees and our customers. Uh, and it's a move that really completes our exit from commercial assembly, where we really did not have, have critical mass, uh, as a supplier.
That's part of our portfolio transition and really critical steps that we've been taking early this year. That will have a slight dampening effect on revenue, but slight and the really the focus on accretion to our operating margin. You can see we've been on a nice march-In terms of improving our operating margin, with a focus on continuing to do so, going forward. Translates into a strong EPS performance. If you look at cash flow from operations, really strong history here of generating strong-- of cash, continuing to generate cash. We have returned a portion of that to shareholders with our buyback program.
We also do have a Term Loan B debt structure, and we've been, I think reliably, repaying that debt as well. Strong cash flow from operations. You can see our debt to EBITDA ratio also improving over time. We like to operate in the 1.5x-2x ratio, in that area. Right now, we're at 1.4. Great position here to weather whatever comes our way in terms of the economy. Strong balance sheet position. If you look at our capital allocation strategy, we will continue to invest in differentiation. I've highlighted a few of the areas that we'll be focused on.
One, in aerospace and defense, filling in that space between our radar position, and strengthening our RF position in support of radar. microelectronics being a second area that we are going to continue to build in aerospace and defense. On the commercial side of our business, looking at our RF component position and strengthening that area, as well as our footprint, which still has a gap, at least in some geographical areas, particularly Europe. We'll continue to build out that product portfolio and the differentiation that I talked about. Repaying debt, obviously critical. We do have, are looking at Term Loan B that matures in September of 2024. Again, looking at our options there in terms of refinancing.
Returning capital to shareholders, again, always a priority for us as we look at how to use our cash and how to balance our position there. Going forward, TTM's focus continue to be on markets with the right growth characteristics and the mega trends that support that growth, particularly aerospace and defense, as we build our differentiation position there, that's oriented around our engineered product capabilities, RF capabilities, as well as the manufacturing footprint and building on that manufacturing footprint. Finally, strong balance sheet management. We have historically generated strong cash flows. We'll continue to focus there, and continue to work our working capital, improve our working capital metrics, which is a core part of this. Practicing that discipline that I talked about.
That's what we have today in terms of presentation. I'd be glad to answer any questions that you might have. Okay.
Thank you. Okay, good. you know, we have the folks on the line. you show the slide in terms of your operating margin improvement over the last, you know, few years. Like, where do you think that can go longer term?
Right.
You mentioned the, that, you know, in terms of buying, like, you know, buying back debt, like paying down your debt rather, you know, is the idea that later this year into next year will be more of a focus on returning, you know, buying back stock and where can that go? I think you mentioned $100 million.
Right
...for your completed buyback.
Yeah. If you look at our priorities, as a company, and particularly, we're in a year I would call a transition year. I talked about the consolidation of our facilities. That's going to happen as we go through the course of this year. We've announced the consolidation, now we need to implement that consolidation. That will be going on through the course of this year. Penang, investment, and the build of Penang going on through the course of this year. Telephonics integrating into TTM, delivering on the synergies I talked about. That's happening during the course of this year. By the way, we have an economic backdrop that we need to weather through the course of this year as well and build our position.
As we start talking about our operating margin goals, keep that in mind. We're positioning this year for what I think will be a strengthening TTM portfolio, and should be a strengthening economic backdrop as we go into next year. As we look at what is potential, so we've put out a model of with a target of 12%-14%, in terms of potential. Our strategy has been deliberately to build towards that by adding the value in terms of product solutions. Certainly the potential is there as we deliver on the synergies, make these transitions, to improve on operating margin and continue to improve with that goal in mind. Okay?
From a cash management standpoint, priority for us right now is making sure that we've got the right amount of cash on our balance sheet. We have the Term Loan B that we need to take care of. We need to settle into the to the debt structure here, that ongoing debt structure that is supportive of the business. Again, I think we've done very well on that on that side. As we look at a Term Loan B that will come due, you know, we're looking forward to continuing to enhance that balance sheet structure that we have in place. Those are two priorities. Then, yes, M&A, I talked about. That will continue to be an ongoing priority.
I don't think the backdrop there is as favorable this year. We'll see how it develops. We have an active pipeline that we always are working on the M&A side. Then we'll look at shareholder return, what we need to do with vis-à-vis the shareholders as well. It's always a balance. What I can tell you is cash generation continues to be strong. That's a focus for us. We'll have a number of options for the cash that we're generating.
Okay.
Any other questions I can answer?
I'll ask a quick one. First, the company put out a number of press releases. One regarding a contract on SPY-6 with Raytheon. Can you talk about that and what that means for the company? Also, the sale of the Shanghai BPA facility.
Sure. Yeah, in this last quarter, we actually built on that announcement. We were able to announce as we looked at our bookings level in aerospace and defense, SPY-6 win, a big SPY-6 win there. Also an MH-60 win, which is our one of the helicopter platforms for Telephonics. That was our first announceable win on the telephonic side. That was exciting too. What we released on SPY-6, this is a Raytheon program. A program that is worth upwards of $400 million to TTM over the course of time.
What I'd say the real critical point about this is, number one, it's evidence of our growing position, portfolio position in terms of RF and specifically enabling customer radar work, as active electronically scanned array transitions occur. It's great evidence. Secondly, the fact that the customer supported the press release itself is meaningful and unusual in that they really wanted to also emphasize our role in their platform. And it's a nice demonstration of the kind of core customer relationships that we have with our customers. Really happy to see that. I think it's great evidence of the kind of building of momentum behind our platform. Thank you for the question. Okay. I think we're done. Thank you very much, everyone.
I appreciate your time.