INVESTOR PRESENTATION

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1 INVESTOR PRESENTATION August 2016 THE LANGUAGE OF ELECTRONICS

2 Disclaimer Private Securities Litigation Reform Act of 1995 Safe Harbor and Industry Information Except for historical information, the matters discussed in this presentation are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties. The words anticipate, believe, could, will, plan, expect and would and similar terms and phrases, including references to assumptions, have been used in this press release to identify forward-looking statements. These forward-looking statements are made based on management s expectations and beliefs concerning future events affecting Orbotech and are subject to uncertainties and factors relating to Orbotech s operations and business environment, all of which are difficult to predict and many of which are beyond the Company s control. Many factors could cause the actual results to differ materially from those projected including, without limitation, cyclicality in the industries in which the Company operates, the Company s production capacity, timing and occurrence of product acceptance (the Company defines bookings and backlog as purchase arrangements with customers that are based on mutually agreed terms, which, in some cases for bookings and backlog, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix, within and among divisions, worldwide economic conditions generally, especially in the industries in which the Company operates, the timing and strength of product and service offerings by the Company and its competitors, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate, including as a result of the so-called Brexit process, or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis, the level of consumer demand for sophisticated devices such as smartphones, tablets and other electronic devices as well as automobiles, the Company s global operations and its ability to comply with varying legal, regulatory, exchange, tax and customs regimes, the Company s ability to achieve strategic initiatives, including related to its acquisition strategy, the Company s debt and corporate financing activities; the final timing and outcome (each, expected in mid-to-late 2016), and impact of the criminal matter and ongoing investigation in Korea, including any impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Company s customers, which may result in monetary judgments or settlements, expenses associated with the Korean Matter, ongoing or increased hostilities in Israel and the surrounding areas, and other risks detailed in the Company s SEC reports, including the Company s Annual Report on Form 20-F for the year ended December 31, 2015, and subsequent SEC filings. The Company assumes no obligation to update the information in this press release to reflect new information, future events or otherwise, except as required by law. 2 Investor Presentation

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4 Mission Make smart, digital production a reality through continuous technology innovation for a better tomorrow Vision Be the global leader in advanced micro manufacturing solutions for electronics and adjacent markets that ensure greater production efficiencies for sustainable profitability 4 Investor Presentation

5 Orbotech Key Facts Printed Circuit Boards Flat Panel Display MEMS, RF, Power Advanced Packaging Solar ~$765M Revenues * ~ 2,400 Employees 50 Offices 3 Divisions Multiple Industries * TTM THE LANGUAGE OF ELECTRONICS 5 Investor Presentation

6 At a Glance We enable the transformation of the electronics industry with innovative manufacturing processes & solutions 6 Investor Presentation

7 Our Markets Our sales TAM is expected to grow at CAGR of ~11% vs. total electronics market expects CAGR of ~4% PCB $400M FPD $300M TAM ~$1.3B Advanced Packaging $200M MEMS, RF, Power $390M Expected TAM ~$2.2B 7 Source: Company estimates, partially based on Yolé, Prismark Partners, IHS *Micro-Electro-Mechanical Systems Investor Presentation

8 Key Growth Drivers Increasing uptake of smart mobile devices Internet of Things becomes a reality Mobile TVs Networked Devices Automotive Ever more sensors in smart cars 8 Investor Presentation

9 Continuous Technology Innovation Drives Sustainable Growth 9 Investor Presentation 9 Investor Presentation

10 Key Strengths Leading technology and innovation Large installed base with close relationships Repeatedly first to market Global infrastructure 10 Investor Presentation

11 Our Positions Serving Leadership Position In all the markets we serve Over 80% New purchases from the Top 50 Printed Circuit Boards makers in the past 3 years Every major Display panel manufacturer Serving 28 of the top 30 MEMS manufacturers Serving the world Top 5 OSATs* *Outsourced Semiconductor Assembly and Testing 11 Investor Presentation

12 Strategic Focus I Organic growth through product development and market share expansion I Entering adjacent markets I Further penetration into advanced packaging I Moving up the value chain I Becoming a process innovator I Growing in Additive Manufacturing Innovation Drivers Designer Vision Consumer Demand Manufacturing Capabilities 12 Investor Presentation

13 Financial Overview

14 Financial Highlights $ Q $583 $ % 45.2% $ % $340 $253 $ % 15.2% 14.5% $143 $88 $64 $1.10 $1.48 $299 $240 $110 $191 $200 $162 Revenue Gross profit Adjusted EBITDA Non-GAAP EPS Gross debt Cash and equivalents All in US Dollars in millions, except per share data XXX Profit Margin 14 Investor Presentation

15 Base Line for Long Term Growth Model Quarterly Revenue ($M) LTM Jun-16 Revenues by Division * SDD 36% Other 3% PCB 36% Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Quarterly Non-GAAP EPS ($) FPD 25% LTM Jun-16 Revenues by Geography * North America 12% Asia- Pacific 46% Europe 12% Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 China 30% *SPTS is consolidated from 7 August EPS for Q3 14 include a positive impact of $0.17 related to the timing of the acquisition closing. 15 Investor Presentation

16 Consistently Growing Service Revenues Organic CAGR of 7% * 2014 PF** 2015 Generated by a large installed base, including: ~12,800^ Systems at Printed Circuit Board customers ~1,700 Systems at Flat Panel Display customers ~ 2,300 Systems at Semiconductor Device customers * The 2014 results reflect consolidation of SPTS as of the closing date of 7 August ** The proforma figure represents service revenues as if the closing date was 1 January ^ Including systems under warranty. 16 Investor Presentation

17 Capital Structure and Cash Generation Gross Debt and Cash Balance ($M) Gross Debt Cash Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Jun 16 Debt refinanced during June 16, decreased leverage and interest expenses. With a robust balance sheet, Orbotech is well prepared for external growth opportunities. Operating Cash Flow ($M) and as % of Adj. EBITDA 61% 70% 71% 59% 62% % Q % 60% 40% 20% 0% -20% -40% -60% -80% -100% Debt Facility Key Terms: I $110 mil facilities agreement I $20 mil repayment each year I 2020 Maturity (option to extend by 1 year) I Libor % 17 Investor Presentation

18 Mid Term Financial Goals < $900 Million 48% - 50% ~30% Service revenues 12% - 14% 21% - 23% 17% - 19% Revenues Gross Margin Net R&D Adjusted EBITDA Margin Non-GAAP Net Income Margin 18 Investor Presentation

19 Summary Growth Leadership Diversified driven by increasing complexity and functionality of electronics through technology and innovation product portfolio, customer base, end markets and geographic exposure We enable the transformation of the electronics industry with innovative manufacturing processes & solutions 19 Investor Presentation

20 Appendices

21 Product Portfolio - Printed Circuit Boards Automated Optical Inspection (AOI) Inspection and identification of defects in the artwork design master, production phototools and PCBs at various stages of production Automated Optical Repair (AOR) Automatic repair of defects known as shorts and excess copper Laser Direct Imaging (LDI) Transfer of digital image data directly from electronic media on to the photoresist Inkjet (IJ) PCB legend printing and die marking and other advanced production applications UV Drilling (UV) Generation of the interconnection between different layers in interconnect substrates advanced packaging applications 21 Investor Presentation

22 Outlook - Printed Circuit Boards I Historically outperformed the market growth I Main growth drivers: Smart Mobile Devices Automotive 4G in China Wearable Electronics 22 Investor Presentation

23 Product Portfolio - Flat Panel Displays Array Checker Detection, location, quantification and characterization of electrical, contamination and other defects Automated Optical Inspection (AOI) Automatic detection of flaws and defects Array Saver Repair of short defects during and after array fabrication 23 Investor Presentation

24 Outlook - Flat Panel Displays Main growth drivers: China TVs (large panel displays) New display technologies - drives more inspection, testing and repair demands 24 Investor Presentation

25 Product Portfolio - Semiconductor Devices Physical Vapor Deposition (PVD) Deposition of thin layers of metals that are used as interconnects, barrier layers or functional layers Chemical Vapor Deposition (CVD) Low temperature deposition of insulators for the MEMS and packaging markets Plasma Etch Removal of material to form a pattern or a shape in a substrate or layer, using plasma containing reactive gases Vapor Release Etch Removal of material to release flexures or other MEMS devices) from a substrate, using gasses 25 Investor Presentation

26 Outlook - Semiconductor Devices Increasing consumer product functionality in various industries drives demand for MEMS, RF and Power devices Staying on Moore s Law and More than Moore curves drive demand for Advanced Packaging Strong long-term growth drivers in: Reducing energy consumption Renewable power Automotive Industrial automation Wireless communication Smart mobile devices 26 Investor Presentation

27 Operating Leverage Gross Profit ($M) and Margin (%) Adjusted EBITDA ($M) and Margin (%) % 44.2% 43.0% 45.0% 45.4% 45.3% 45.0% 45.0% 45.9% % 40% 30% % 19.1% % % 19.4% 19.5% 18.9% 18.5% % 39 28% 18% 8% 40 20% % 20 10% 10-12% 5 0 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 0% 0 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q % Leveraging core technologies and global infrastructure 27 Investor Presentation

28 Thank You