Introduction to Veecos2.q4cdn.com/391606028/files/Veeco_Roth-Conference-Presentation_v...> Industry...

1 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.

Introduction to

Veeco

> 27th Annual Roth Conference

> March 9, 2015


Industry Leader in Thin Film Equipment

> Highly differentiated process equipment and

technologies that enable the manufacturing of

high-tech electronic devices

> Industry leader in MOCVD, MBE, IBD, IBE,

Single- Wafer Wet Etch and other advanced thin

film process technologies

> Operations in 10 countries on four continents

> Based in New York, with about 800 employees worldwide

TurboDisc® EPIK™700 GaN

MOCVD System

NEXUS® IBE-420Si™ Ion Beam

Etching System

WaferStorm® 3300 Single Wafer

Wet Etch Processing System


2014: Solid Execution in a Transition Year

Improved Financial Performance

Generated $42M in Cash from Operations

Revenue $392M, up 18% Bookings $510M, up 54%

Gross Margin up 3 Percentage Points

Achieved EBITDA Profitability

Successful Cost Reduction and Site Consolidation Activities


2014: Solid Execution in a Transition Year

EPIK700™ MOCVD Gained Traction in Multiple Regions

Data Storage Secured Sizeable Q4 Orders

Propel™ MOCVD Launched New Opportunity in GaN Power

GENxplor® MBE Gained Research Market Share

New Product and Business Wins

PSP Acquisition New Trajectory for Revenue & Profit Growth


Best Veeco Order

Rate since 2011

Fourth Quarter 2014 Highlights

Increase in MOCVD

and Data Storage

Generated ~$50M Cash

from Operations

Orders up >80% sequentially

to $196M

Cash and Short Term

Investments $392M

Revenue grew 22%

sequentially to $114M


MOCVD Revenue Expected to Grow in 2015

Backlighting trends

remain positive;

utilization rates recover

after seasonal downtick

LED Lighting (unit)

Penetration 5% in

2014 …

Forecasted

to be >25% by 2020

>800M LED Lamps

Shipped in 2014…

Forecasted to

grow 30% CAGR to

nearly 4B by 2020

Overall Market Trends Positive for Multi-Year MOCVD Growth

Source: LED Inside

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://inhabitat.com/archilede-led-street-lamp-cuts-energy-costs-by-40/&ei=oeb0VNHKN4ebNtPugYgO&bvm=bv.87269000,d.eXY&psig=AFQjCNGD9_par9ykbrwrgoxw78U-vlpAWA&ust=1425422348756399


EPIK700 MOCVD: Pulling Ahead of the Competition

> Highest productivity platform with up

to 20% improved CoO compared to

previous generations

> Designed for best-in-class uniformity

which provides greater wafer yield

> Fastest to production with easy

process transfer

> Most efficient capital investment

for maximum profitability

> All betas accepted; quick

process transfer of recipes –

in discussions for multi-unit

orders with multiple customers

Strategic Wins in 4 Key Geographic Regions


GaN Power Represents New MOCVD Growth Vector

More than 30 Industry Leaders Investing in GaN Power R&D

GaN Power Electronics Potential Customer Landscape


Power Electronics: New Growth Opportunity for MOCVD

Notes: 1) Yole Nov 2011, 2) IMS Research Feb 2012

Ga

N P

ow

er

De

vic

e M

ark

et2

($M

)

Power Electronics device market continues to grow

GaN-based power devices offer higher efficiency,

switching speed and lower power consumption

Veeco MOCVD is positioned at key customer sites

around the globe to support this high growth segment

1

2011 2012 2013 2015 2018 2021


> Outstanding film uniformity, yield

and device performance

> Long campaign runs for process

development flexibility and best-in-

class low particle defects

> Modular design for ease of

configuration, operation and

maintenance…and best cost

of ownership

> Fast cycles of learning

Single Wafer 200MM System to Accelerate Industry Transition from

R&D to High Volume Manufacturing

Propel Enables Cost Effective, High Yield GaN Power Devices


“Soak and Spray” Technology

enables Single Wafer Control with

Low Cost of Batch Processing

Highly Configurable Platform

Serves Multiple Applications and

Wafer Sizes

Strong Position in Advanced

Packaging

Extends Footprint in Compound

Semi & MEMS

Significant

Overlap in Business

Opportunities

Working to Accelerate Growth

for a Robust, Highly

Profitable Business

Increased Access

to High

Growth Markets

Complimentary

Differentiated

Technology

Synergistic Combination

to Drive Growth

& Profitability

1 3

PSP: Great Fit to Support our Growth in 2015 & Beyond

2


Cleaning

Tool

Plasma

Etch

Equipment

Silicon

Thickness

Measurement

> Award received by

3DIncites as best

2.5D/3D manufacturing

equipment 2014

> Highest uniformity and

fast etch rates

CMP

4 in 1 System

Value Proposition – TSV Reveal

Veeco’s Position for Advanced Packaging Growth Opportunity

Lowest Cost of Ownership for Single Wafer Wet Processing


Single Wafer Wet Processing Gains Share in Advanced Packaging

TSV Resist

Removal &

Clean

Flux Removal &

Clean

UBM / RDL

Etch

Dry Film /

Resist Removal

Wafer Thinning

/ Stress Relieve

Today 2019

Today 2019

Today 2019

Today 2019

Today 2019

Wet

Batc

h

Dry

S

ingle

Wafe

r Wet


0

10

20

30

40

50

Q413 Q114 Q214 Q314 Q414

Gross Margin %

-20

-10

0

10

20

30

40

50

Q413 Q114 Q214 Q314 Q414

0

50

100

150

200

250

Q413 Q114 Q214 Q314 Q4140

20

40

60

80

100

120

Q413 Q114 Q214 Q314 Q414

Revenue ($M)

Veeco’s Accelerating Financial Performance

Bookings ($M)

Cash Flow from Operations ($M)


LED, Power Electronics

& Mobil Devices

Veeco’s Outlook: A Better 2015

Targeting Gross Margins

>40%

Expect EBITDA Every

Quarter of 2015

Drive Revenue Growth through Existing and New Market

Opportunities

Continued Bottom Line

Improvement

Focus on Differentiated Products & Lower Manufacturing Costs

Currently Forecasting Greater Than 30% Revenue Growth


Safe Harbor

To the extent that this presentation discusses expectations or

otherwise makes statements about the future, such statements are

forward-looking and are subject to a number of risks and

uncertainties that could cause actual results to differ materially from

the statements made.

These items include the risk factors discussed in the Business

Description and Management's Discussion and Analysis sections of

Veeco's Annual Report on Form 10-K for the year ended December

31, 2013 and subsequent Quarterly Reports on Form 10-Q and

current reports on Form 8-K. Veeco does not undertake any

obligation to update any forward-looking statements to reflect future

events or circumstances after the date of such statements.

Introduction to Veecos2.q4cdn.com/391606028/files/Veeco_Roth-Conference-Presentation_v...> Industry...

Documents

Transcript of Introduction to Veecos2.q4cdn.com/391606028/files/Veeco_Roth-Conference-Presentation_v...> Industry...