INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking...

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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

Transcript of INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking...

Page 1: INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking statements that relate to anticipated future operating results and performance. These statements

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

Page 2: INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking statements that relate to anticipated future operating results and performance. These statements

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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

Page 3: INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking statements that relate to anticipated future operating results and performance. These statements

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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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Page 4: INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking statements that relate to anticipated future operating results and performance. These statements

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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

Page 5: INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking statements that relate to anticipated future operating results and performance. These statements

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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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Page 8: INVESTOR PRESENTATION2 SAFE HARBOR The information presented today contains forward-looking statements that relate to anticipated future operating results and performance. These statements

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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

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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

More Functionality in Smaller SpaceCopyright of Camtek Ltd. 2017© All rights reserved

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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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