I N V E S T O R S P R E S E N T A T I O N - Camtek · INSPECTION AND METROLOGY •Increased demand...

February 2019

Rafi Amit, CEO

Moshe Eisenberg, CFO

I N V E S T O R S

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

Copyright of Camtek Ltd© 2017. All rightsreserved

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

SAFE HARBOR

Copyright of Camtek Ltd© 2017. All rightsreserved 3

CAMTEK ID

Market Cap

$334M*

Employees

295

Net Cash

$55M*

Develops, manufactures and sells inspection and metrology systems to the semiconductor market

*Market CAP as of Feb 18, 2019Net Cash as of Dec 31, 2018

GLOBAL

PRESENCE:

2017

44

55

68

79

93

2013 2014 2015 2016 2018E

ANNUAL REVENUE

Tripled

Semiconductors revenue

from 2013 to 2018

18% Operating Income

in 2018

Almost123


OUTPERFORMING THE INDUSTRY

~30%

~100%

~125%

Industry Wafer

Starts

Camtek’s

Installed Base

Camtek’s

Revenue

2014 – 2018 % Growth


THE CAMTEK-CHROMA COOPERATION

• Chroma is a leading provider of test & automation solutions

• HQ’ed in Taiwan with annual revenues of over $500M

• Acquiring 20.5% of Camtek at $9.50 (30% premium at time of deal &

total deal size of $74 million)

• ~15% to be acquired from Priortech

and 5% new shares issued by

Camtek

• Includes technological licensing & cooperation agreement

• Strengthens our position in Asia (Taiwan in particular)

• Expands our product portfolio as a result of the cooperation in development

• New potential revenue stream from licensing our technology for non-semi applications

• Strengthens our Balance Sheet


STRONG CUSTOMER BASE


TECHNOLOGY DRIVES MARKET GROWTH

Source: Cisco Global Cloud Index, Gartner, Camtek estimates

2010 2017 2020

PC + Internet Era

Mobile & Social Media Era

2000

• Memory

• Advanced Packaging

• Power

• MEMS

• CMOS Image Sensors


WE SERVE THIS GROWTH

US$

Bill

ion

Source: SEMI, July 2018

36.53

41.23

56.62

62.73

67.58

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018F 2019F

WW Semiconductor Equipment

Copyright of Camtek Ltd© 2017. All rightsreservedCopyright of Camtek Ltd© 2017. All rightsreserved 9

ADVANCED PACKAGING CRITICAL TO NEXT

GENERATION APPLICATIONS

Source: Yole, 2018

Copyright of Camtek Ltd© 2017. All rightsreservedCopyright of Camtek Ltd© 2017. All rightsreservedCopyright of Camtek Ltd© 2017. All rightsreserved 10

ADVANCE PACKAGING: MORE FUNCTIONALITY,

HIGHER EFFICIENCIES IN A SMALLER SPACE

DRAM Memory transition to Advanced Packaging

13% CAGR

(2016 – 2022) Known-Good-DieEnsuring each die in the package is good

100% inspection of all

dies in the package


ADVANCED PACKAGING KEEPS GROWING AND

GAINING MARKET SHARE

Currently 36% of wafers

use Advanced Packaging

The market is

expected to grow by

~50%In the next 5 years

Advanced Packaging Silicon Demand Growth & Market Share 2011 - 2022


TECHNOLOGY CHANGES DRIVE TAM GROWTH

MORE INSPECTION & METROLOGY

MEMS &

Sensors

CMOS Image

Sensors

Memory

transition to AP

RF

12%CAGR

12%CAGR

15%CAGR

15%CAGR

Increased

reliability, size

and resolution;

memory shift

into Advanced

Packaging

CAGR 2017 - 2023

Copyright of Camtek Ltd© 2017. All rightsreservedCopyright of Camtek Ltd© 2017. All rightsreserved 13

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


OUR AVAILABLE MARKET IS GROWING

Source: Yole, Gartner,

Camtek

100% INSPECTION,

Growth driven by demand

for higher reliability,

DEFECT-FREE PRODUCTS

HIGHER RELIABILITY

55

80

120

180

200

245

325

413

80

100

120

0 100 200 300 400 500 600 700 800

2015

2017

2019

2021

US$M

3D Bump Metrology ME 2D Inspection & Metrology New Apps.

Maintain leading position Penetrate New marketIncrease market share


EXECUTING ON OUR STRATEGY

50%

20%

14%

16%

Advanced Packaging Inspection and Metrology CIS RF/POWER/MEMS General Inspection

Installed Base

Based on 900 machines

installed worldwide

4650

33

73

0

20

40

60

80

100

120

140

2016 2018F

Increasing our 2D share in Revenue ($M)

3D 2D


COMPOUND SEMICONDUCTORS

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

VCSEL

iPhone X


GROWING WITH THE CHINESE MARKET

Camtek sales to the Chinese market grew

x10

Between

2013 - 2018

China semiconductor fab capacity to reach

20% worldwide share in 2020, says SEMI


CONTINUTED GROWTH:

• Q119 revenue guidance of $33.5-34.5m;

+25% YoY

Q4 2018:

RECORD RESULTS

• $33.2m revenue; +28% YoY

• GM of 50.6%

• operating income (non-GAAP): $6.9m; 20.7%

margin

ONGOING REVENUE GROWTH

16.8

19.821 21.5 21.1

22.723.8

25.8

27.3

30.5

32.333.2

34

10

15

20

25

30

35

40

Revenue ($M)


19

LEVERAGE IN THE MODEL

12.3%

14.8%15.4%

16.3%

19.2%

20.7%

1

2

3

4

5

6

7

8

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Operating Income & Margins

Operating income ($M) Operating Margin

Reducing OPEX as % of revenue resulting in improved profitability

OPEX % of Revenue

29%

31%

33%

35%

37%

39%

Q3-17Q4-17

Q1-18Q2-18

Q3-18Q4-18

37%

33% 33% 33%

31%

30%

Chart Title


STRATEGIC PLAN AHEAD

Double

Revenuein 3-5 years

Metrology industry

standardExpand Inspection

market share

New market

segments

Chinese market

expansion

Improved Profitability


PROGRESS TO MID-TERM MODEL

44.7%

46.7%

49.7%

50% - 52%

2016 2017 2018 Camtek @ $150M

Gross Margin

7.2%

11.1%

18.0%

20% - 22%

2016 2017 2018 Camtek @ $150M

Operating Margin


1

22

WHY ARE WE WINNING

Putting our

customers 1st

2

Technology

leader

3

Flexible

manufacturing

30% of employees are

customer support

25% of

employees are

R&D

~80% of our

systems are

customized


1

23

INVESTMENT HIGHLIGHTS

Healthy

Industry

2

Focused

strategy

3

Continued

outperforming

GOAL

Double Revenues

again within

3-5 years

T H A N K

Y O U !


GAAP FINANCIAL RESULTS

Annual 2018

FY FY Q1 Q2 Q3 Q4

(US $ in Millions) 2017 2018

Revenues 93.5 123.2 27 31 32 33

Gross Profit 45.5 60.8 13 15 16 17

Gross Margin 49% 49% 48% 49% 50% 50%

R&D 13.5 14.6 3.5 3.4 3.5 4.1

14% 12% 13% 11% 11% 12%

SG&A 22 26.2 5.9 6.8 7.1 6.4

15% 21% 22% 22% 22% 19%

Reorganisation - - - - - -

Loss from litigation 13 - - - - -

Operating Profit (Loss) -3 20 3.6 4.7 5.6 6.2

Operating Margin -3% 16% 13% 16% 17% 19%

Continuing Operations 1.7

Discontinued Operations 12.3 - - - - -

Net Profit (Loss) 14 18.8 3.5 4.3 5.1 5.8

I N V E S T O R S P R E S E N T A T I O N - Camtek · INSPECTION AND METROLOGY •Increased demand...

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