INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION Rafi Amit, CEO Moshe Eisenberg, CFO August 2017 Parts of almost all of today s latest devices have been made with the help of Camtek

2 SAFE HARBOR The information presented today contains forward-looking statements that relate to anticipated future operating results and performance. These statements are only predictions based on management s current expectations and assumptions, including with respect to market size, Total Available Market (or TAM ) and revenue targets, and necessarily involve risks and uncertainties. Moreover, our stated revenue targets are inspirational and should not be taken as projections of actual future results. We do not assume any obligation to update the information provided. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased competition in the industry, price reductions and other subsequent developments and business conditions, as well as due to risks and other important information identified in the documents filed with the Securities and Exchange Commission, including the Company s Annual Reports on Form 20-F and Reports on Form 6-K. The presentation includes non-gaap financial measures which are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-gaap measures when evaluating the business internally and therefore believes it is important to make these non-gaap measures available to the financial community. Reconciliations of non-gaap measures to the most relevant GAAP amounts are included in the Company press releases. This presentation includes the company s estimations on Market size and TAM, ( Total Available Market, or TAM ) these estimations can vary and may be differ materially from the reality and are based on internal estimations. TAM or market size is the company s estimation on the total yearly market size. Copyright of Camtek Ltd All rights reserved 2

3 INTRODUCTION TO CAMTEK CAMT $123/$86m 20% 500/270 $175m LTM* revenues H1 revenue growth rate* employees market cap* *Last twelve months ending June 30, 2017; H117 YoY revenue growth and market cap as of Aug 3, 2017 *With discontinued operations / Continuing operations only Camtek to become a pure-play Semiconductors company Develops and sells PRESENCE inspection IN and metrology systems to the Semiconductor 34 market COUNTRIES Focused on fast growing Advanced Packaging sector Global presence 3

4 OUR STRATEGY Focus on the Semiconductor industry Frequent technological changes Focus on the fast growing Advanced Packaging segment: increases the demand for higher levels of inspection and metrology capabilities Camtek has the knowledge, experience and expertise to keep pace with this fast changing market landscape and the demand Since this strategic decision in 2013, Camtek has doubled semiconductor revenues from $44M in 2013 to over $90M (expected 2017) Aim to double revenue again in 3-4 years (organically and through M&A) Complete development of FIT technology Looking for a strategic investor 4

5 WE ARE EXECUTING ON OUR STRATEGY Build and maintain a state of the art semiconductor products portfolio Eagle product family shows excellent performance in both inspection (2D) and metrology (2D and 3D) Sold PCB Business Unit for up to $35m $32 million we will receive in cash on closing and up to $3 million as an earn-out depending on the performance of the business in Recent improvement in the PCB market opened up the opportunity to divest this business Reached a settlement with Rudolph Technologies Paying Rudolph $13M; saving $2.5-3M/y in legal fees and the uncertainty of outcome Partnered with a world leading ink manufacturer for our Functional Inkjet Technologies Adjusting our FIT expense structure to between $100 to $125 thousand per quarter Copyright of Camtek Ltd All rights reserved 5

6 STRONG AND IMPROVING OPERATING PERFORMANCE Revenues in US$M E Semi Other Double Digit Growth in revenue expected in 2017 H growth of 20% YoY Profitability expected to improve in H Driven by: Semi growth - high margin & leverage Reduced legal expenses Adjusted FIT expense structure Expects to double semiconductor revenues from 2013 to 2017 Copyright of Camtek Ltd All rights reserved 6

7 MARKET DYNAMICS: THE OPPORTUNITY Consumer Demand Mobile Automotive Internet Of Things New Technologies Advanced Packaging Miniaturization Power efficiency Speed Increases production & quality More equipment Advanced equipment More Inspection tools Zero defects concept 100% inspection Human inspection phasing out 7

8 ADVANCED PACKAGING DRIVING INCREASED INSPECTION & METROLOGY CAPITAL SPENDING Advanced Packaging penetration expected to double mm equivalent wafers in millions 44% % 23% 19% 18% % 26 35% E 2017E 2018E Bumped wafers Total number of wafers...and is driving AOI spending growth much faster than overall semi cap Source: McLean 9

9 ADVANCED PACKAGING SEGMENTATION * * WLCSP* *FOWLP: Fan-Out Wafer Level Packaging WLCSP: Wafer Level Chip Scale Packaging 3DIC: 3D Integrated Circult Source: Yole 10

10 OUR TARGET SEGMENTS SHOW DOUBLE-DIGIT GROWTH Growth Rates of Semiconductor Segments % CAGR Camtek Semiconductor Install Base Based on 660 machines installed worldwide Advanced Packaging Fan-out 3D IC 17.0% 30.0% Others (15%) Sectors on which Camtek is focused RF MEMS 11.5% 10.9% 15% Advanced Packaging CIS MEMS 50% CIS 10.6% 20% Foundry 7.5% Semi total 5.0% In 2016, Advanced Packaging was ~58% Source: Yole, Gartner 11

11 CAMTEK: STRONG CUSTOMER BASE Systems installed at 22 out of the 25 top semiconductor spenders 12

12 SEMICONDUCTOR GROWTH STRATEGY Strong record of execution Revenue grew 76% over past 3 years $44m in 2013 to $79m in 2016, $44m in H Q revenue up 14% YoY; Q3 and Q4 expectations of continued growth #1 in 3D metrology Penetrate new strategic accounts Increase penetration into 2D inspection Introducing a new, highly competitive system Expand into new segments Potentially through M&A 13

13 OUR POTENTIAL MARKET MID & BACK END Macro Inspection Our Market (Mid End) Back End OQC Testing Bump inspection 2D&3D Surface Inspection Post Dicing Populated Packages Inspection Final Test $40M $230M ($360M in 2019) $150M Potential Growth Our Market Potential Growth 14

14 RECENT FINANCIAL HIGHLIGHTS Q Summary Revenues $22.7m, up 14% YoY; Camtek record for Semi non-gaap gross margin: 49.2% non-gaap operating income: $2.1m Strong cash flow generation: +$3.7m Q2-end cash at $27.1m; zero debt Guidance Q3 revenue guidance $23-24m (~+12% YoY) Q4 revenue continuous growth ~50% gross margin ~15% operating margin $30.0 $25.0 $20.0 Quarterly revenue US$ millions $16.8 $19.8 $21.0 $21.5 $21.1 $22.7 $23-24 Guidance $15.0 $10.0 $5.0 $- Q 116 Q 216 Q 316 Q 416 Q 117 Q 217 Q 317E Q 417E 15

15 INVESTMENT HIGHLIGHTS Pure-play Semiconductor company Focus on the fastest growing segments: AP, CIS, MEMS, RF Expects double digit growth rate with 15% operating margin by Q4-17 and further improvement in

16 Thank You

17 GAAP FINANCIAL RESULTS 19