I N V E S T O R S P R E S E N T A T I O N

Transcription

1 I N V E S T O R S P R E S E N T A T I O N Rafi Amit, CEO Moshe Eisenberg, CFO November 2018

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 rightsreserved 2

3 CAMTEK ID Develops, manufactures and sells inspection and metrology systems to the semiconductor market Market Cap $300M* Net Cash $48M* Employees 290 GLOBAL PRESENCE: ANNUAL REVENUE >120 Almost Tripled Semiconductors revenue from 2013 to 2018 ~17% Operating Income in E *Market CAP as of Nov 1, 2018 Net Cash as of Sep 30, 2018 Copyright of Camtek Ltd All rightsreserved 3

4 OUTPERFORMING THE INDUSTRY Camtek s Revenue Camtek s Installed Base ~125% ~100% Industry Wafer Starts ~30% % Growth Copyright of Camtek Ltd All rightsreserved 4

5 STRONG CUSTOMER BASE Copyright of Camtek Ltd All rightsreserved 5

6 TECHNOLOGY DRIVES MARKET GROWTH Memory Advanced Packaging Power Mobile & Social Media Era MEMS CMOS Image Sensors PC + Internet Era Source: Cisco Global Cloud Index, Gartner, Camtek estimates Copyright of Camtek Ltd All rightsreserved 6

7 US$ Billion WE SERVE THIS GROWTH 80 WW Semiconductor Equipment F 2019F Source: SEMI, July 2018 Copyright of Camtek Ltd All rightsreserved 7

8 ADVANCED PACKAGING CRITICAL TO NEXT GENERATION APPLICATIONS Source: Yole, 2018 Copyright of Camtek Ltd All rightsreserved 8

9 ADVANCE PACKAGING: MORE FUNCTIONALITY, HIGHER EFFICIENCIES IN A SMALLER SPACE DRAM Memory transition to Advanced Packaging 13% CAGR ( ) Known-Good-Die Ensuring each die in the package is good 100% inspection of all dies in the package Copyright of Camtek Ltd All rightsreserved 9

10 ADVANCED PACKAGING KEEPS GROWING AND GAINING MARKET SHARE Advanced Packaging Silicon Demand Growth & Market Share Currently 36% of wafers use Advanced Packaging The market is expected to grow by ~50% In the next 5 years Copyright of Camtek Ltd All rightsreserved 10

11 TECHNOLOGY CHANGES DRIVE TAM GROWTH MEMS & Sensors Memory transition to AP 12% 12% Increased reliability, size RF 15% and resolution; memory shift into Advanced Packaging CMOS Image Sensors 15% CAGR MORE INSPECTION & METROLOGY Copyright of Camtek Ltd All rightsreserved 11

12 LEADING MARKET TRENDS ASSURE: MORE INSPECTION AND METROLOGY Increased demand for inspection and metrology driven by Growing number of wafers Strict requirements for 100% inspection and metrology Higher accuracies & smaller geometries -> more tools for production Advanced Packaging Increasingly adopted memory transition to AP CMOS Image Sensor Number of cameras in smartphones 5 cameras Higher resolution Copyright of Camtek Ltd All rightsreserved 12

13 OUR AVAILABLE MARKET IS GROWING Maintain leading position Increase market share Penetrate New market D Bump Metrology ME 2D Inspection & Metrology New Apps Growth driven by demand for higher reliability, HIGHER RELIABILITY 100% INSPECTION, DEFECT-FREE PRODUCTS US$M Source: Yole, Gartner, Camtek Copyright of Camtek Ltd All rightsreserved 13

14 EXECUTING ON OUR STRATEGY Installed Base Based on 900 machines installed worldwide Increasing our 2D share in Revenue ($M) % 16% 50% % 20 Advanced Packaging Inspection and Metrology CIS RF/POWER/MEMS General Inspection F 3D 2D Copyright of Camtek Ltd All rightsreserved 14

15 COMPOUND SEMICONDUCTORS VCSEL Compound Semiconductors requires inspection expertise: Non Pattern wafer: Wafer alignment, accurate defect position reporting Accurate defect classification and Yield prediction Main Application: VCSEL VERTICAL-CAVITY SURFACE- EMITTING LASER a semiconductor-based laser diode that emits a highly efficient optical beam vertically from its top surface iphone X Copyright of Camtek Ltd All rightsreserved 15

16 GROWING WITH THE CHINESE MARKET Camtek sales to the Chinese market grew China semiconductor fab capacity to reach 20% worldwide share in 2020, says SEMI x10 Between Copyright of Camtek Ltd All rightsreserved 16

17 ONGOING REVENUE GROWTH Q3 2018: RECORD RESULTS $32.3m revenue; +35% YoY GM of 50.4% operating income (non-gaap): $6.2m; 19.2% margin CONTINUTED GROWTH: Q418 revenue guidance of $ m; +30% YoY % YoY growth in Revenue ($M) Copyright of Camtek Ltd All rightsreserved 17

18 LEVERAGE IN THE MODEL OPEX % of Revenue Operating Income & Margins 20.0% 7 38% 36% 34% 32% 30% 28% 37% Q3-17 Q % 33% 33% Q1-18 Q2-18 Q % 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 12.3% 14.8% 15.4% 16.3% 19.2% % Q3 17 Q4 17 Q1 18 Q2 18 Q Operating income ($M) Operating Margin Reducing OPEX as % of revenue resulting in improved profitability Copyright of Camtek Ltd All rightsreserved 18

19 STRATEGIC PLAN AHEAD Double Revenue in 3-5 years Improved Profitability Metrology industry standard Expand Inspection market share New market segments Chinese market expansion Copyright of Camtek Ltd All rightsreserved 19

20 PROGRESS TO MID-TERM MODEL $150M 50% -52% Gross Margin 46.7% 49.3% $150M 20% -22% Operating Margin 17.1% 12.5% 44.7% 7.2% (Q1-3) (Q1-3) Copyright of Camtek Ltd All rightsreserved 20

21 WHY ARE WE WINNING Putting our customers 1st Technology leader Flexible manufacturing 30% of employees are customer support 25% of employees are R&D ~80% of our systems are customized Copyright of Camtek Ltd All rightsreserved 21

22 INVESTMENT HIGHLIGHTS GOAL Healthy Industry Focused strategy Continued outperforming Double Revenues again within 3-5 years Copyright of Camtek Ltd All rightsreserved 22

23 T H A N K Y O U!

24 GAAP FINANCIAL RESULTS Annual Annual 2018 FY FY Q1 Q2 Q3 (US $ in Millions) Revenues Gross Profit Gross Margin 41% 49% 48% 49% 50% R&D % 14% 13% 11% 11% SG&A % 15% 22% 22% 22% Reorganisation Loss from litigation Operating Profit (Loss) Operating Margin 39% -3% 13% 16% 17% Continuing Operations Discontinued Operations Net Profit (Loss) Copyright of Camtek Ltd All rightsreserved 24

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