INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking...
Transcript of INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking...
INVESTORPRESENTATIONRafi Amit, CEO
Moshe Eisenberg, CFO
August 2017
Parts of almost all of today’s latest devices have been made with the help of Camtek
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SAFE HARBOR
The information presented today contains forward-looking statements that relate to anticipated future operatingresults and performance. These statements are only predictions based on management’s current expectations andassumptions, including with respect to market size, Total Available Market (or “TAM”) and revenue targets, andnecessarily involve risks and uncertainties. Moreover, our stated revenue targets are inspirational and should not betaken 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 andmarket trends, reduced demand for our products, the timely development of our new products and their adoption bythe market, increased competition in the industry, price reductions and other subsequent developments and businessconditions, as well as due to risks and other important information identified in the documents filed with the Securitiesand 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 asubstitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAPand non-GAAP measures when evaluating the business internally and therefore believes it is important to make thesenon-GAAP measures available to the financial community. Reconciliations of non-GAAP measures to the most relevantGAAP 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 ormarket size is the company’s estimation on the total yearly market size.
2Copyright of Camtek Ltd. 2017© All rights reserved
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PRESENCE IN
34 COUNTRIES
*Market Cap
$175m*Net Cash expected at Q3-end
~$45m*2017E revenues Q417E gross margin
$90m+ ~50%>+15% YoY
Employees Q417E op. margin
270 ~15%*Market cap as of Aug 3, 2017. Continuing operations only. Net cash estimate based on cash at Q2-end plus cash from sale of PCB business less payment to Rudolph
• 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
CAMT
INTRODUCTION TO CAMTEK
Sold PCB business• Stable business with current
positive momentum• Sale to close Q3-end• Sold for $32m cash+$3m earn out• 230 employees
Co
nti
nu
ing
Sem
ico
nd
uct
ors
TEL-AVIV STOCK EXCHANGE
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OUR MARKET
FE BE TestingRDL & Bump
Dicing Assembly
Front-End Our Market (Mid End) Back-End
Macro Inspection
Other players
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Our MarketPotential Growth
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LEADING PROVIDER FOR INSPECTION AND METROLOGY
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CMOS Image Sensors
Bumping
RDL
MEMS, RF
Advanced Packaging
Post Dicing
Memory
• 2D & 3D metrology• 2D inspection
• 2D & 3D metrology• 2D inspection
• 2D inspection & metrology
• 2D inspection & 3D metrology• 2D inspection &
metrology
• 2D inspection & metrology
• 2D Inspection & metrology
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Systems installed at 22 out of the 25 top semiconductor spenders
CAMTEK: STRONG CUSTOMER BASE
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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)
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SUCCESSFUL EXECUTION OF STRATEGY
Divested PCB business unit for $32-35mRecent improvement in the PCB market opened up opportunity for divestment
Reached settlement with Rudolph TechnologiesPaying Rudolph $13m in Q3
Saving of $2.5-3m/year in legal fees and uncertainty of outcome; removes distraction
Ink Jet TechnologyFocus our efforts on ink development
Partnered with Sun Chemical, a leading ink manufacturer
Reduced expense structure to $100 -$125k/quarter
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STRONG AND IMPROVING OPERATING PERFORMANCE
4455
6879
4133
31
31
0
20
40
60
80
100
120
2013 2014 2015 2016 2017 E
Revenues in US$ millions
~90
Double digit growth in revenue expected in 2017 H1 2017 growth of 20% YoY Q3 revenue guidance of $23-24m Q4 expected to be above Q3
Profitability improvements in H2 2017 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 2017
Sem
ico
nd
uct
or
PC
B &
oth
er
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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
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SEMICONDUCTOR MARKET GROWTH ENGINES
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Smartphones
AutomotivePC & Notebooks
Servers Ultramobile Storage
Smart TV Medical/HealthcareIoT End-points
0
5
10
15
20
25
30
-10 -5 0 5 10 15 20 25
Mobile
Devices
Data
Centers
Smart
Sensors
Smart Phones, Ultramobile
Storage, Servers
Automotive
Smart SensorsCAGR 2015 – 2020 [%]
Sm
art
Se
nso
rs[%
] o
f Se
mi M
arke
t in
20
20
12
13 15 18 21 2633
42
74 77 80 84 89 93 96
2012 2013 2014 2015 2016 2017 2018
Bumped wafers Total number of wafers
18%19%
23%
25%
29%
35%
44%
ADVANCED PACKAGINGDRIVING INCREASED INSPECTION & METROLOGY CAPITAL SPENDING
Source: McLean
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...and is driving AOI spending growth much faster than overall semi cap
Advanced Packaging penetration expected to double 2015-2018...
EEE
300mm equivalent wafersin millions
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WHY ADVANCED PACKAGING?
13Source: TechSearch
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OUR TARGET SEGMENTS SHOW DOUBLE-DIGIT GROWTH
Source: Yole, Gartner, IC Insights
Growth Rates of Semiconductor Segments % 2015-2020 CAGR
Advanced Packaging
Sectors on whichCamtek is focused
Camtek Semiconductor Install BaseBased on 660 machines installed worldwide
In 2
016
, Ad
van
ced
Packag
ing
was ~
58%
5%
7.30%
7.50%
11%
10.90%
11.54%
17%
30%
Semi total
Memory
Foundry
CIS
MEMS
RF
3D IC
Fan-out
*
50%
8%
8%
11%
11%
12%
Advanced Packaging Packaging Memory Foundry CIS MEMS RF
* Memory Growth in 2017 is ~30%
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RECENT FINANCIAL HIGHLIGHTS
Q2 2017 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-Q4 2017 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
$16.8
$19.8 $21.0 $21.5 $21.1
$22.7 $23-24
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
Q 1 1 6 Q 2 1 6 Q 3 1 6 Q 4 1 6 Q 1 1 7 Q 2 1 7 Q 3 1 7 E Q 4 1 7 E
Quarterly revenueUS$ millions
Guidance
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MID-LONG TERM TARGET OPERATING MODEL*
Double-digit
growth from semi
100%
50-52%
Gross
Margin
Revenue
13-15%
R&D
15-20%
Operating Margin
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*Illustrative Purposes Only
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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 executionExpected revenue growth of 100%+ from 2013 to 2017
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INVESTMENT HIGHLIGHTS
Pure-play Semiconductor company
Focus on the fastest growing segments: AP, CIS, MEMS, RF
Expect strong growth and margin improvement in H2 2017 and beyond into 2018
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Thank You
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GAAP FINANCIAL RESULTS
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