Rudolph Technologies. Providing Customer and Shareholder Value. August 2018

Transcription

1 Rudolph Technologies Providing Customer and Shareholder Value August 2018

2 Building a Business for Sustainable Growth Increasing the pace of innovation while driving operational efficiencies Company NYSE Revenue (TTM*) Operating Income (TTM*) Cash Balance (June 2018) Employees (Worldwide) RTEC $278 million $67 million $183 million ~ % YoY +34% YoY +23% YoY On pace for FOURTH consecutive year of record revenue! * Trailing Twelve Months, as of June 30, 2018 Operating Income: non-gaap 2

3 Rudolph Technologies Corporate Strategy Providing Process Solutions for High Value Problems in High Growth Markets 3

4 Rudolph Value to Customers is Increasing Transforming from Tool Sales Into Solutions: Accelerating Growth SPECIFICATIONS MEET SPECIFICATION TOOL SALE Software + Experience SOLUTION SALE Improve Yield! AI Resolve High Value Problem Measure Software integrated with Rudolph Tools Optimizing Factories Integrated with OEM Analyze 4

5 Process Solutions for High Value Problems Solution! PRODUCT RELIABILITY Eliminate non-visual defects HETEROGENEOUS CHIP INTEGRATION Enable chip-to-chip connections (RDL) Artificial Intelligence Real Time Control Precise Data from Tools WAFER/PANEL FAN-OUT PACKAGING Optimize throughput for offset die positions HIGH DENSITY PILLAR BUMPS Ensure reliable interconnects ADVANCED MEMORY Plating and etch control, TSV, and micro bump metrology RF, MEMS, 3D IMAGING Piezo, mass load control, active pixel and precise wavelength control 5

6 What We Do Rudolph s Core Businesses Software Discover Software Equipment Sentinel Software Inspection Metrology Firefly System Dragonfly #1 #1 System New AWX Series NSX Series MetaPULSE Systems S3000 Series Lithography JetStep System #1 Yield Management Auto Defect Classification Fault Detection Advanced Process Control All surface inspection Unpatterned wafer inspection Combined inspection and metrology Metal films Under bump metallization Redistribution layers Wafers and panels (Gen 3.5) StepFAST Optimized T-put JetStep G for HD Displays 6

7 Rudolph s Diversified High Growth Drivers Sustainable growth from multiple end markets, all sharing: Mobility Sensing Advanced Packaging Communications Automotive Server Cloud Internet of Things Multiplier from the >20B IoT Devices predicted by 2020 Source: Gartner,

8 Rudolph s Balanced Market Position Diverse targeted markets with high growth 2017 Revenue by Market 12% 25% 19% ADV. PKG. FE MEMORY RF MEMS CIS FOUNDRY OTHER 28% 16% Core Markets Strategic Markets UNIT CAGR% FAN-OUT 3D / 2.5D All AP RF FILTERS MEMS MEMORY FOUNDRY All SEMI 44% 19% 11% 39% 25% 11% 11% 9% 0% 10% 20% 30% 40% 50% Source: Gartner, Tech Search 8

9 Strategic Market Positions Rudolph process control solutions are integral to top manufacturers Memory 1 Installed at 5 of 6 Top Producers Samsung Electronics SK Hynix Micron Toshiba Western Digital Intel Advanced Packaging 2 Installed at 6 of 6 Top Producers TSMC Samsung Electronics ASE JCET Intel PTI RF Wireless 1 Installed at 5 of 6 Top Producers Skyworks Solutions Qorvo Qualcomm Broadcom Murata Media Tek Installed at 6 of 6 Top Producers Bosch TI ST Micro Knowles NXP Infineon MEMS 2 Source: 1 Gartner 2017 Market Share; 2 IHS 2017; Company data shown in rank order 9

10 Digital Revolution Cycle of Growth Mobility & Connected Devices Cloud Today 355 TB every second! (nearly double the estimate last year) RF Filters MEMS Advanced Packaging HPC (high power computing) Adv. Memory Autonomous Car Tomorrow Multiple Growth Drivers AI Healthcare Source: Cisco Global Cloud Index, Feb 2018 Virtual Reality 10

11 Sustainable Results On pace for a fourth consecutive record year! RUDOLPH REVENUE $300 $280 $260 $240 $220 $200 Rudolph CAGR * 13 % * OPERATING INCOME (NON GAAP) $70,000 $60,000 $50,000 $40, % with 13% Revenue CAGR * * $180 $30,000 $160 $140 $20,000 $120 $10,000 $ * $ * More Improvements Ahead! * Analysts Consensus for FY

12 Free Cash Flow/Capital Allocation Priorities How we deploy our strong cash generation Free Cash Flow $70.0 $60.0 $50.0 $40.0 $30.0 Capital Priorities Fund organic growth initiatives Strategic M&A $20.0 $10.0 $- Return to shareholders $(10.0) $(20.0) Cash from Ops FCF CAPEX ~10 % of shares repurchased through buy backs 12

13 Long-Term Operating Financial Model $250M MODEL $300M MODEL $350M MODEL $400M MODEL Gross Margin 53% 54% 55% 55% Operating Margin 22% 25% 28% 30% Existing Operations Model excludes the impact of OLED Initiative which is expected to be accretive to operating margins. Source: Management estimates based on a Non-GAAP model 13

14 2020 Growth Potential: High Resolution Displays Rudolph developing a lithography solution for TFT backplanes* Backplane required to control pixels for any display Emitted light from display: AMOLED Quantum Dot MicroLED TFT Backplane ~$500M TAM *TFT Backplane: Thin Film Transistors that provide power for each R-G-B pixel segment Source: Company estimate based on China display fabs planned 14

15 Key Takeaways Value Solutions Combine Hardware and Software Products to Solve Leading Edge Challenges Market Growth Drivers Remain Healthy in 2018 Market Growth Drivers Remain Healthy in 2018 Strong Financial Model Profitable growth, fueling R&D & Cash for strategic M&A Display market potential to be transformative for RTEC 15

16 Thank You!