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. 2

3 Continuing Semiconductors INTRODUCTION TO CAMTEK TEL-AVIV STOCK EXCHANGE CAMT *Market Cap $175m *Net Cash expected PRESENCE at Q3-endIN ~$45m34 COUNTRIES *2017E revenues Q417E gross margin $90m+ ~50% >+15% YoY Employees Q417E op. margin 270 ~15% Sold PCB business Stable business with current positive momentum Sale to close Q3-end Sold for $32m cash+$3m earn out 230 employees Camtek (from Q417): a pure-play Semiconductors company Develops and sells Automatic inspection and metrology systems for the Semiconductor market Focused on fast growing Advanced Packaging sector Global presence *Market cap as of Aug 3, Continuing operations only. Net cash estimate based on cash at Q2-end plus cash from sale of PCB business less payment to Rudolph 3

4 OUR MARKET Other players Front-End Our Market (Mid End) Back-End FE BE Testing RDL & Bump Dicing Assembly Macro Inspection Potential Growth Our Market 4

5 LEADING PROVIDER FOR INSPECTION AND METROLOGY CMOS Image Sensors 2D Inspection & metrology Advanced Packaging 2D & 3D metrology 2D inspection Bumping 2D & 3D metrology 2D inspection MEMS, RF 2D inspection & metrology Post Dicing 2D inspection & metrology Memory RDL 2D inspection & metrology Copyright of Camtek Ltd All rights reserved 2D inspection & 3D metrology 5

6 CAMTEK: STRONG CUSTOMER BASE Systems installed at 22 out of the 25 top semiconductor spenders 6

7 WHY FOCUS ON SEMI Many growth engines within the space: cloud, automotive, mobile Higher margins Focus on the fast growing Advanced Packaging segment: increased demand for higher levels of inspection and metrology capabilities Positioned for growth with our state-of-the-art semi product portfolio Camtek has deep knowledge, experience and expertise in the sector Since 2013, semiconductor revenue doubled from $44m to over ~$90M (expected) Aim to double revenue again in 3-4 years (organically and through M&A) 7

8 SUCCESSFUL EXECUTION OF STRATEGY Divested PCB business unit for $32-35m Recent improvement in the PCB market opened up opportunity for divestment Reached settlement with Rudolph Technologies Paying Rudolph $13m in Q3 Saving of $2.5-3m/year in legal fees and uncertainty of outcome; removes distraction Ink Jet Technology Focus our efforts on ink development Partnered with Sun Chemical, a leading ink manufacturer Reduced expense structure to $100 -$125k/quarter 8

9 STRONG AND IMPROVING OPERATING PERFORMANCE Semiconductor PCB & other 41 Revenues in US$ millions ~ E Double digit growth in revenue expected in 2017 H growth of 20% YoY Q3 revenue guidance of $23-24m Q4 expected to be above Q3 Profitability improvements in H driven by: Semi growth - high margin & leverage Significantly reduced legal expenses Lower FIT expense structure New operating model H217 gross margins at ~50% Double digit operating margins increasing to 15% by Q4 and continuing improvement into 2018 Expects to double semi revenue from 2013 to

10 OUR STRENGTHS AND CORPORATE CULTURE High performance systems based on our own proprietary technology Strong R&D that can quickly develop new features Flexible operation organization that can build systems in short time Excellent sales and CS coverage worldwide Dedicated employees that can work 24/7 Putting our customers FIRST 10

11 Smart Sensors [%] of Semi Market in 2020 SEMICONDUCTOR MARKET GROWTH ENGINES Smartphones Mobile Devices 20 Smart Phones, Ultramobile 15 Data Centers 10 PC & Notebooks Automotive Storage, Servers 5 Smart TV Servers Ultramobile Storage Medical/Healthcare IoT End-points Smart Sensors CAGR [%] Smart Sensors Automotive Copyright of Camtek Ltd All rights reserved 11

12 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 Source: McLean...and is driving AOI spending growth much faster than overall semi cap 12

13 WHY ADVANCED PACKAGING? Source: TechSearch More Functionality in Smaller Space 13

14 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 Sectors on which Camtek is focused Fan-out 3D IC RF MEMS CIS Foundry Memory * 11.54% 10.90% 11% 7.50% 7.30% 17% 30% 11% 11% 8% 12% 8% 50% In 2016, Advanced Packaging was ~58% Semi total 5% Advanced Packaging Packaging Memory Foundry CIS MEMS RF * Memory Growth in 2017 is ~30% Source: Yole, Gartner, IC Insights 14

15 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 9.4% operating margin Strong cash flow generation: +$3.7m Q2-end cash at $27.1m; zero debt Q3-Q Guidance Q3 revenue: $23-24m (~+12% YoY) Q4 revenue: continuous growth ~50% gross margin ~15% operating margin by Q4 $32m cash from sale of PCB less $13m settlement-> increase cash position by $19m $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

16 MID-LONG TERM TARGET OPERATING MODEL* *Illustrative Purposes Only 100% 50-52% Double-digit growth from semi 13-15% 15-20% Revenue Gross Margin R&D Operating Margin 16 16

17 STRATEGY Achieve $200M revenues by 2021 #1 in 3D metrology Penetrate new strategic accounts Continue penetration into 2D inspection & metrology Introducing a new, highly competitive system Comprehensive Software Solution for yield enhancement & data analysis Expand into new adjacent segments Given strong cash position, potential synergistic M&A Strong record of execution Expected revenue growth of 100%+ from 2013 to

18 INVESTMENT HIGHLIGHTS Pure-play Semiconductor company Focus on the fastest growing segments: AP, CIS, MEMS, RF Expect strong growth and margin improvement in H and beyond into

19 Thank You

20 GAAP FINANCIAL RESULTS 20