GT Advanced Technologies Corporate Overview

Transcription

1 GT Advanced Technologies Corporate Overview February 2012

2 Forward Looking Statement This presentation contains information about management s future expectations, plans and prospects of our business that constitute forwardlooking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of Please see final slide for additional information regarding these statements. 2

3 GT Advanced Technologies Company Highlights Technology & market share leader in served markets Overview Founded in 1994 IPO in 2008 NASDAQ:GTAT (March Fiscal Year-end) Over 710 employees world-wide 1 $873 million LTM revenue 1 Three Business Segments: Polysilicon: SDR CVD Reactors & related equipment & services PV: Ingot production equipment (DSS, DSS MonoCast 2, HiCz 3 ) & HiCz materials Sapphire: ASF crystallization furnaces & sapphire materials (1) As of December 31, 2011, includes full time and contract employees (2) Commercial availability as of January 2012 (3) Product in development 3

4 GT Advanced Technologies Innovative technologies that drive cost reductions, advance industries served Solar Polysilicon production equipment SDR reactors PV ingot production equipment DSS, DSS MonoCast 1, HiCz 2 HiCz materials (limited quantities) Primarily an Equipment Supplier Leader in Served Markets Crystallization Experts LED Industrial Sapphire materials for non-led markets e.g. Ti- Sapphire, medical Track Record of Innovation Asia-Centric Operations Sapphire production equipment ASF Sapphire substrate materials (limited quantities for LED) Diversified Revenue Streams (1) Commercial availability as of January 2012 (2) Product in development 4

5 GT s Strategic Growth Initiatives Leveraging GT s core competencies to add stability and growth to the business Solar GT s Core Competencies: Equipment Supplier LED Industrial Crystallization Experts Innovators Asia Centric Operations Evaluating Other Opportunities in the LED Value Chain Power Electronics Current Areas of Interest Silicon Carbide (SiC) furnaces to produce substrates for energy and power management applications (New internal development initiative - targeting CY13/14) 5

6 Annual Demand (GW) M Units Growth Profiles of Primary Served Markets Delivering low COO equipment/technology targeted to enable solar/led industry growth Solar Demand Source: SolarBuzz, January 2012 LED Demand Source: IMS Research Sept GWs 80,000 70,000 60, GWs 23.5 GWs 50,000 40,000 30,000 20,000 10, E 2013E 2014E 2015E 2016E Historical Demand Solarbuzz - Balanced Energy (as of Jan-2012) Solarbuzz - Green World (as of Jan-2012) Solarbuzz - Production LED (as of Jan-2012) Key Solar Industry Growth Drivers: Government Policy/Subsidies (Historically) Cost Per Watt vs. Conventional Alternatives Key LED Industry Growth Drivers: General Illumination Adoption Cost vs. Alternatives 6

7 Leading Equipment Supplier to Solar & LED Markets Closely aligned with cost and quality leaders in Asia Revenue By Geography (LTM as of 12/31/11) 4% 2% Partial List of Customers 94% Asia Europe US & Other 7

8 Solar Business Overview 8

9 Technology that Enables Cost Reductions in the Solar Industry GT Products GT s Primary Solar Products: Polysilicon Production SDR Reactors (ASP $3-$5M) PV Crystallization Growth Furnaces (DSS ASP <$600K) Polysilicon Production Reactors PV Crystallization Furnaces Multicrystalline DSS (>3200 installed base) DSS 450 MonoCast Monocrystalline HiCz (In Development) HiCz Materials (limited quantities) Downstream Operations Polysilicon Multicrystalline Ingot Wafers Cells Panels PV Manufacturing Value Chain (Multicrystalline shown) 9

10 Polysilicon Business Overview Served primary role in establishing merchant polysilicon market in 2007 First customer, OCI, went from new entrant in 2007 to top 3 global producer in CY10 (1) Demonstrated history of providing high quality, commercially available SDR reactors GT has 70% share of installed and operating merchant market capacity (2) $1050M Polysilicon Backlog at end of Q3 FY12 (1) Source: Green World Investor (2) GT management estimate based on CY10 GT installed base production capacity as % of Solarbuzz estimation of total CY10 merchant market production capacity (adjusted by GT management to reflect actual installed operating capacity) 10

11 Polysilicon: Innovation Drives Market Leadership GTAT CVD Reactors have increased output by 6X since 2007 Output per GTAT CVD Reactor (MT/YR) present SDR100 SDR200 SDR300 SDR400 GEN5 *This is for informational purposes only and contains forward-looking statements for the purposes of the Safe Harbor provisions. The Company reserves the right to modify or delete elements of its development plan and is under no obligation to update such plans. 11

12 Polysilicon: Innovation Drives Market Leadership While reducing energy consumption by >50% Energy Consumption per GTAT CVD Reactor (kw-hr/kg) present SDR100 SDR200 SDR300 SDR400 Gen5 *This is for informational purposes only and contains forward-looking statements for the purposes of the Safe Harbor provisions. The Company reserves the right to modify or delete elements of its development plan and is under no obligation to update such plans. 12

13 Cost/kg GT Technology Enables All-In Poly Production Costs <$25/kg Low cost structures are critical for polysilicon producers to survive in today s market $30.00 $25.00 $20.00 All-In Costs SDR 400: <$25/kg GT SDR Cash Costs: <$18/kg SDR Gen 5 further $15.00 reduces allin cost/kg $10.00 by several $5.00 dollars $0.00 All-In Costs (SDR 400) Cash Costs Only (GT SDR) Interest & Insurance Raw Materials Energy Maintanence & Other Labor Other Depreciation Based on GT Solar management estimates. GT best-in-class assumptions: 10,000 MT/year plant with large reactors (>400 MT/Yr, hydrochlorination and heat recovery; 10-year depreciation, 6% interest rate. 13

14 PV Business Overview Best-in-class si-pv crystal growth solutions for multi, MonoCast & mono Innovative crystal growth equipment & materials designed to enable cost effective, high quality PV evolution Multicrystalline market share leader with DSS units WW (1) Providing DSS installed base with bridge to higher efficiencies, lower cost with DSS 450 MonoCast Enabling critical market shift to higher efficiencies with HiCz technology (tool in development) Selling HiCz materials to enable advanced PV cell technologies (shipping in limited quantities) $212M PV Backlog at end of Q3 FY12 Shown: Multicrystalline ingot produced in DSS furnace (1) GT Solar Management estimate; DSS units shipped as of 12/31/11 14

15 PV Product Development Roadmap GT is committed to new PV product introductions DSS 240 G4: kg DSS 450/HP G5: kg DSS 650 G5T: kg DSS 450 MonoCast HiCz (in development) *This is for informational purposes only and contains forward-looking statements for the purposes of the Safe Harbor provisions. The Company reserves the right to modify or delete elements of its development plan and is under no obligation to update such plans. 15

16 DSS 450 MonoCast Targeted to be the highest yielding, most productive, most reliable cast mono solution GT s DSS 450 MonoCast technology produces monocrystalline material in DSS cast furnaces at lower overall production cost than traditional batch Cz mono Delivered MonoCast beta product to Nexolon in Korea in September 11 Upgrade and new product available for order as of first quarter of CY12 Upgrade will be available to GT s installed base of over 3200 DSS units 1 (1) DSS units shipped as of 12/31/11 16

17 MonoCast Technology MonoCast Ingots produce three grades of wafers: Grade I Mostly mono Grade II Hybrid wafers mono>multi Grade III Mostly multi GT s MonoCast Delivers >95% Grade I & Grade II Wafers 17

18 MonoCast Can Rival Cz Mono Module Output MonoCast Cz Mono Full square Pseudo square MonoCast wafers/cells will have lower LID than batch Cz MonoCast full square wafers have ~1.8% more electric generating area vs. psuedo square 18

19 MonoCast COO & Yield Roadmap GT s MonoCast roadmap is targeting substantial gains in yields with significant reductions in cost of ownership 19

20 Cost($) per good kg Si produced MonoCast : Higher Efficiency, Better Cost per Kg Multi Batch Cz Mono GT MonoCast Based on current cell technologies GT s MonoCast is targeted to displace today s boron-doped batch Cz growth techniques by delivering higher efficiency at improved cost per kg Cell Efficiency MonoCast is available as an upgrade to GT s DSS installed base allowing GT customers to target new market opportunities that require higher performance 20

21 HiCz : Premium Performance & Low Cost HiCz TM Crystallization Furnace GT s Hi performance Czochralski crystal growth technology: Simultaneous feeding, growing, doping High-growth rates Continuous recharge HiCz pullers are in operation in GT s facility in St. Louis, MO GT is shipping samples of HiCz mono material HiCz materials business focused on enabling advanced cell performance, driving HiCz tool development GT plans to offer a highly competitive HiCz equipment offering early CY13 Targeted to deliver significant improvements in cost, yield and quality over today s boron doped Batch CZ tools 21

22 HiCz Continuous Cz Technology Schematics representative of continuous Cz process and are not specific to HiCz Start of ingot Intermediate stage End of ingot Continuous feeder - several ingots per run Stable hot zone & melt level Key Features of HiCz : Semi-continuous growth & feeding Stable hot zone, thermal conditions and melt level improve crystal properties Tight distribution of resistivity, oxygen & lifetime at optimal level 22

23 HiCz Targeted to Enable Critical Industry Step Function Cost($) per good kg Si produced Multi Batch Cz Mono GT MonoCast HiCz Ga-Doped HiCz Phosphorousdoped HiCz Gallium-doped and Phosphorousdoped material are expected to take mono to a new high in performance/efficiency Based on current cell technologies at lower cost than current Cz technologies. Cell Efficiency HiCz Initiative Aimed to Take Advantage of the Industry s Shift in Focus to Higher Cell Efficiency as the Key Driver of PV Growth 23

24 Significant Progress with HiCz Development HiCz tool operating in St. Louis factory Actively working with cell fabrication centers to demonstrate cell efficiency potential Expect to select HiCz beta partners in 2H CY12 HiCz product introduction targeted for 1H CY13 Customer interest from diverse geographies including Western Europe, Japan, Korea & Taiwan 24

25 Sapphire Business Overview 25

26 Sapphire Business Overview In July 2010, GT acquired Crystal Systems, a leading sapphire manufacturer with 40+ years of technical know-how & expertise GT has a state-of-the-art sapphire facility in Salem, MA with capacity of 6M TIE of annual capacity using ASF technology (shown here) GT has developed an industry-leading merchant sapphire equipment business with its ASF technology $908M Sapphire Backlog at end of Q3 FY12 26

27 Foundation of Deep Technical Expertise & Broad Customer Relationships GT s sapphire business is built on 40+ years of crystal growth experience, extensive technical know-how and well developed customer relationships Since 2000, GT Crystal Systems has sold sapphire to 900+ different customers, many of whom are leaders in: LED s Lasers Aerospace Energy Medical Advanced research centers GT Crystal Systems has been supplying sapphire to the LED industry for over a decade 27

28 Dual-Focus Sapphire Strategy in HB-LED Market GT Products Sapphire Crystal Growth Furnaces Equipment Supplier: GT sells the ASF, its sapphire crystal growth furnace, to sapphire growth manufacturers Materials Substrate: GT Crystal Systems sells sapphire cores into the LED market, primarily for high-brightness applications ASF Downstream LED Operations Sapphire Production Sawing/Lapping/ Polishing/Packaging MOCVD LED Fab/Die Dicing Finished LED Boule Growth Core Fabrication Epi-Ready Wafer Fabrication Epi Wafer Fabrication LED Chip Fabrication Assembly 28

29 GT Supplies Material to Top LED Wafer Makers GT Crystal Systems Supplies Sapphire to 6 of the top 10 LED Wafer Makers in the World Top 10 LED Wafer Makers in the World* 2011 Rank Company Country 1 CrystalOn Korea 2 Iljin Display Korea 3 Crystal Applied Tech Taiwan 4 Lanjing Science & Techniques China 5 Crystal Wise Taiwan 6 Monocrystal Russia 7 Tera Xtal Taiwan 8 Kyocera Japan 9 Namiki Japan 10 Silian China *Source: Yole Developpement, Sapphire Market 2010, Q4 Update Notable Recent GT Crystal Systems LED Orders/Activity Repeat order by Silian for 500k TIE of 6 cores GT material has been qualified by a leading high brightness device maker $2.3M order for 6 dia LED cores from a top 10 epi-ready wafer maker 29

30 Industrial Markets for GT s Sapphire Materials Business GT Crystal Systems supplies sapphire materials from cores to finished products to other industrial markets, many of which have much higher quality standards than the LED market. Notable Recent Contracts for GT Crystal Systems Large area C-axis (8 x10 ) windows shipped for leading electro-optical systems 3-yr contract w/ a leading supplier to aerospace industry for large A-axis windows Beat 8-year incumbent for C-axis 20in 2 material for aerospace navigation system 30

31 Building an Industry with GT s ASF Solution Leveraging the strengths of GT Advanced Technologies and GT Crystal Systems, GT has developed a market-leading sapphire growth furnace solution commercially available for large scale, high yielding sapphire production GT Advanced Technologies Established leader in crystallization equipment Strong Asian capabilities: Sales, Service, Support Strong equipment customer relationships GT Crystal Systems Deep technical expertise Proven material quality process technology Long and broad sapphire material customer relationships The ASF technology platform has been designed to deliver the advantage of high system throughput, high productivity and low cost per mm GT s Salem, MA sapphire factory is a unique asset that GT leverages to drive R&D and innovation for the ASF platform GT is working closely with its ASF customers to support the build out of their sapphire facilities 31

32 ASF : Proven to Grow Large Boules, Large Diameter Cores Pictured Above: 130kg and 100kg boule grown in GT s Salem, MA Factory At GT s Sapphire Factory in Salem, MA: GT is currently producing 100kg & 130kg boules Cycle times for 100kg and 130kg generally the same Boule diameters up to 15 ; height up to 13 Shipping 2, 4 and 6 sapphire cores Sampling 8 cores (1) GT Management Estimates 32

33 GT ASF Crystal Growth Method Seed Charge Melt Grow Seed is glued to the Crucible Heat extraction Charge is added then melted During growth both heat and extraction can be controlled independently Crystal is grown in A-Axis with low and stable thermal gradient Simple process, no moving parts. Scalable platform, 85 Kg on initial release, 100 Kg available as an upgrade 2012 GT Advanced Technologies, Inc. All rights reserved. 33

34 GT ASF High System Throughput ASF CHES Ky Simple In-Situ seeding Enables quick transition to growth increasing throughput Bottom Seeding A-axis is 2-3x faster then C-Axis growth A- Axis Growth Scalable charge size gives higher per run output Scalable Charge High System Throughput 34

35 GT ASF Productivity Advantage ASF CHES Ky Bottom-up growth designed to ensure quality crystal: Allows gas to escape Stationary Growth Process No moving parts Boule shape favorable to high core productivity Bottom-up growth Stationary Growth Process Productive Boule Shape Highly Productive Platform 35

36 mm- 2 core GT ASF Roadmap Targets Improved COO Platform approach allows ASF customers to improve productivity, lower cost $5.0/mm $4.0/mm ASF 85 <$5.2/mm ASF100 <$4.1/mm *This model includes costs for crystal growth to support 3.4M mm of 2 inch cores which is capable of producing 4M TIE wafers. ASF4000 <$2.9/mm $3.0/mm Beta Testing ASF6000< $2.4/mm $2.0/mm $1.0/mm C2011 C2012 C2013 *This is for informational purposes only and contains forward-looking statements for the purposes of the Safe Harbor provisions. The Company reserves the right to modify or delete elements of its development plan and is under no obligation to update such plans. 36

37 Recent ASF Customer Successes Received acceptance & recorded revenue for ASF units installed at Shangcheng in Q3 FY12 HTOT accepted ASF units in Q4 FY12; are producing 100kg boules OCI has received & installed complete order of ASF units Shown Here: Shangcheng ASF factory; highyielding boule produced by Shangcheng 37

38 Financial Highlights 38

39 Q3 FY12 and LTM Performance Measure Revenue Q3 FY12 Performance $153.0 Million Gross Margin 43.1% EPS Fully-Diluted $0.12 Cash & Cash Equivalents & Short Term Investments $303.1 Million (zero debt) (2) LTM Revenue (1) $873M LTM Gross Margin (1) 44.8% LTM Operating Margin (1) LTM Revenue Per Employee (1,3) 28.3% $1.2M (3) (1) Last twelve months ending December 31, Please see slides at end of presentation for reconciliation. (2) After the close of Q3FY12, on 1/31/12 GTAT entered into a $250M senior secured facility (3) Includes 711 full-time and contracted employees as of December 31,

40 Sustained, Strong Financial Performance Revenue, Gross Margin EPS-Fully Diluted, Net Income ($ in millions) ($ in millions) $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 45% 42% 40% 40% 40% 38% FY07A FY08A FY09A FY10A FY11A LTM Revenue Gross Margin 47% $200 45% $150 43% $100 41% $50 39% 37% $0 35% -$50 -$0.13 $1.24 $1.21 $0.61 $0.60 $0.25 FY07A FY08A FY09A FY10A FY11A LTM Net Income EPS $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 -$0.20 LTM as of December 31, 2011 Net Margin FY07 FY08 FY09 FY10 FY11 LTM (31%) 15% 16% 16% 19% 18% 40

41 Committed to Investing in R&D ($ in millions) $45 $40 $35 R&D Investment $43 $30 $25 $20 $18 $21 $24 $15 $10 $11 $5 $0 FY08A FY09A FY10A FY11A LTM LTM as of December 31,

42 GT Business Model Drives Strong Free Cash Flow, High ROE Outsourced Component Manufacturing/ Asia-centric Operations Customers Prepay Proprietary designs and components High % of final assembly at customer site Asia-centric sales, service & manufacturing Substantial non-refundable deposits received upon contract signing Receive cash or LC s equal to ~90% of purchase price prior to shipment Limited A/R risk LTM Revenue per Employee (1) ($1.2M/Head) Low CAPEX (6.3% of LTM Sales) Low Working Capital Investment (Negative 31% of LTM Sales) Strong LTM Free Cash Flow: $144M + High LTM ROE (81%) >$303M Net Cash Position (2) Note: All figures are 12 months as of December 31, 2011 (1) Employee number as of December 31, 2011 and includes full-time and contracted employees (2) Cash, cash equivalents and restricted cash less debt as of December 31,

43 Strong Cash Position ($) 400, , , ,000 0 Net Cash Q311 Q411 Q112 Q212 Q312 Net Cash Q3 FY12 Investments: $75M for ASR >$90M to pay down debt facility >$15M CAPEX In Q4 FY12 (on January 31, 2012), GTAT closed on a new $250 million senior-secured credit facility. 43

44 Backlog Profile (as of December 31, 2011) ($ in millions) $2,500 $2,000 $2.2B Backlog Backlog Profile Deferred revenue has already shipped $1, $431.1 $1,000 $500 $ PV Poly Sapphire 1 $1,309.8 $305.9 Deferred Revenue Non Refundable Customer Deposits Letters of Credit Balance of Unshipped Orders $123.2 Certain amounts in the above chart may not sum due to rounding 44

45 GT: A Differentiated Business Model Diversified Revenue Stream Cash Position Debt Margins Federal Subsidies/ Loan Guarantees Profile PV, Poly, LED/Industrial Sapphire Strong cash balance and FCF Low Double digit net margin, expanded gross margins, stable pricing with highly differentiated products None US based with strong presence in Asia, Market leader in every served segment 45

46 Summary Market leader in growth industries served Strong track record of innovation & technology leadership Enabler of improved performance and reduced costs GT s diversified revenue streams position the company for stable performance through industry cycles Strong cash generation & balance sheet provide strategic flexibility 46

47 Non-GAAP Reconciliation Working Capital Investment LTM Return on Equity LTM Free Cash Flow LTM Sales $873,442 Fiscal Year Ended 4/2/2011 $898,984 Plus: Nine Months Ended 12/31/ ,815 Less: Nine Months Ended 1/1/2011 (627,357) LTM Average Shareholders' Equity $193,869 LTM Cash From Operations $198,244 Shareholders' Equity as of 12/31/2011 $246,451 Shareholders' Equity as of 1/1/ ,286 Fiscal Year Ended 4/2/2011 $251,774 Plus: Nine Months Ended 12/31/ ,322 Less: Nine Months Ended 1/1/2011 (184,852) $873,442 $193,869 $198,244 Working Capital Investment ($268,720) LTM Net Income $156,218 Current Assets $880,212 Less: Cash & Cash Equivalents (206,878) Less: Short-term Investments - Fiscal Year Ended 4/2/2011 $174,755 Plus: Nine Months Ended 12/31/ ,324 Less: Nine Months Ended 1/1/2011 (122,861) Less: LTM Capital Expeditures ($54,653) Fiscal Year Ended 4/2/2011 $31,263 Plus: Nine Months Ended 12/31/ ,010 Less: Nine Months Ended 1/1/2011 (10,620) Less: Restricted Cash (96,202) $156,218 $54,653 Less: Current Liabilities (845,852) ($268,720) Working Capital Investment / (30.8%) LTM Net Income / 80.6% LTM Free Cash Flow $143,591 LTM Sales LTM Avg. Shareholder's Equity CAPEX as a % of LTM Sales 6.3% Revenue Per Employee LTM Sales $873,442 Fiscal Year Ended 4/2/2011 $898,984 Plus: Nine Months Ended 12/31/ ,815 Less: Nine Months Ended 1/1/2011 (627,357) $873,442 Employees as of 12/31/ LTM Revenue Per Employee $1,228 47

48 Forward-Looking Statements This presentation contains information about management s future expectations, plans and prospects of our business that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of Such statements are identified by words or phrases such as will, anticipate, estimate, expect, project, believe, target, guidance, forecast, and other words and terms of similar meaning. In particular, forward-looking statements include, but are not limited to, statements regarding: Company innovative technologies drive cost reductions and advances in industries served, future diversification of revenue streams, Company s growth initiatives, Company leveraging core competencies to add stability and growth, the areas of interest for Company are growth areas (including LED value chain), Company intent to commercialize silicon carbide furnaces, estimated annual solar demand through 2015 (by gigawatt), estimated annual LED demand through 2016, the anticipated drivers for solar and LED industry growth, Company equipment targeted to enable solar/led industry growth, Company technology enables cost reduction in solar industry, Company s innovation drives market leadership (including in the polysilicon segment), projected annual silicon output and energy consumption per Company polysilicon reactor, performance metrics and costs of operation of SDR Gen 5 reactor, MonoCast providing DSS installed base with bridge for higher efficiency materials at lower cost, HiCz to take advantage of shift to higher efficiencies (which will be a key driver for future growth), Company s innovative crystal growth equipment and materials enable cost effective and high quality PV evolution, the Company s product roadmap, Company committed to new PV product introductions, future product releases in CY12 and beyond (including MonoCast and HiCz equipment) and their expected improvements in throughput and efficiencies and power consumption, MonoCast targeted to be highest yielding and most productive and reliable cast mono solution, production metrics of MonoCast technology (including a lower overall production cost than traditional batch Cz mono), timing of availability of MonoCast technology (including upgrade from DSS equipment currently owned by customers), MonoCast grade 1 yield per ingot and cost per good kg through 2014, MonoCast expected to rival Cz mono module output, MonoCast roadmap is targeting substantial gains in yield with significant reductions in cost of ownership, MonoCast will offer higher efficiency at better cost per kg, cost per good kg Si produced and cell efficiency in future periods using certain technologies (including future Company product releases such as MonoCast and HiCz ), MonoCast targeted to displace today s boron doped batch Cz growth techniques by delivering higher efficiency at improved cost per kg, MonoCast upgrades will allow customers to target new market opportunities that require higher performance, Company to enable advanced cell performance by driving HiCz tool development, timing of commercial release of HiCz equipment, HiCz equipment will be competitive with other technologies, HiCz equipment targeted to deliver significant improvements in cost, yield and quality over today s batch CZ tools, HiCz gallium doped and phosphorous doped material expected to take Cz mono to a new high in performance/efficiency at lower cost (than current Cz technologies), HiCz initiative aimed to take advantage of industry s shift in focus to higher cell efficiency as a key driver of PV growth, Company expects to select HiCz beta partners in second half of CY12 and HiCz product introduction in first half of CY13, HiCz and MonoCast aim to take advantage of industry shift in focus to higher cell efficiency as key driver, ASF designed to deliver high system throughput and high productivity and low cost per mm, Company polysilicon solution to enable allin poly production cost of <$25/kg (<$18/kg for future polysilicon reactor product, the SDR Gen 5), platform approach will allow ASF customers to improve productivity and lower cost, estimated ASF cost per 2 core of sapphire through 2013 (including through the use of future ASF product releases), ASF roadmap targets improved COO, Company committed to investing in R&D, Company has limited accounts receivable risk, Company business model drives strong free cash flow and high return on equity (and strong cash position), Company has differentiated business model (with diversified revenue stream), Company serves growth industries, Company products enable improved performance at reduced costs, Company s diversified revenue stream positions the Company for stable performance through industry cycles, Company has a solid and growing cash position, Company will have strategic flexibility, timing of commercial release of silicon carbide furnaces (and industries sold to), and performance metrics and output of HiCz equipment. These statements are based on management s current expectations or beliefs. These forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside the Company s control, which could cause actual events to differ materially from those expressed or implied by the statements. These factors may include the possibility that the Company is unable to recognize revenue on contracts in its order backlog. Although the Company s backlog is based on signed purchase orders or other written contractual commitments in effect as of the end of our third fiscal quarter (or other date noted herein), we cannot guarantee that our bookings or order backlog will result in actual revenue in the originally anticipated period or at all, which could reduce our revenue, profitability and liquidity. Other factors that may cause actual events to differ materially from those expressed or implied by our forward-looking statements include the possibility that changes in government incentives may reduce demand for solar products, which would, in turn, reduce demand for our equipment, technological changes could render existing products or technologies obsolete, growth of competition in all business segments, the Company may be unable to protect its intellectual property rights, competition from other manufacturers may increase, exchange rate fluctuations and conditions in the credit markets and economy may reduce demand for the Company s products and various other risks as outlined in GT Advanced Technologies Inc. s filings with the Securities and Exchange Commission, including the statements under the heading Risk Factors in the Company s quarterly report on Form 10-Q for the fiscal quarter ended December 31, Statements in this presentation should be evaluated in light of these important factors. GT Advanced Technologies Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise GTAT Corporation. All rights reserved. 48

49 Thank You. Investor Relations Contact: Media Contact: