INVESTORS PRESENTATION December Roy Porat, CEO Moshe Eisenberg, CFO

Transcription

1 INVESTORS PRESENTATION December 2013 Roy Porat, CEO Moshe Eisenberg, CFO

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 set forth in the Appendices to this presentation. 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

3 Camtek at a Glance Camtek provides automated solutions for yield and process enhancement for the Semiconductor and PCB Industries KEY METRICS* 2012 MARKET CAP $120M REVENUE* $84M OP. INCOME* $5.3M CASH $20M NOTABLE FACTS CAMT PRESENCE IN 34 COUNTRIES 2800 INSTALLATIONS ISRAEL HEADQUARTED 500 EMPLOYEES *Market cap as of Nov,

4 Our Business SEMICONDUCTOR PRINTED CIRCUIT BOARDS INSPECTION & METROLOGY INSPECTION 3D PRINTING TAM: $ m * TAM: $70-90m * TAM: $ m * (Ink & Tools) Capital equipment growth rate 7-8%/year Technology driven demand Camtek is a leading player in the industry s higher growth markets (LED, CMOS Image Sensor, MEMS, Advanced Packaging) Every major PCB company in the world has multiple systems #2 Position in the market Capacity driven Business, mainly China New product offering New product GreenJet; automated 3D printing of SM on PCB Great Ink business recurring revenue stream with high margin

5 Chips likely to have been scanned by Camtek Technological Trends in Our Favor Camtek s inspection and metrology systems are used in the manufacture of the most advanced semiconductor & PCB applications As technology increases in complexity to smaller nodes and multiple layers, the need for automated inspection grows exponentially 3D Printing technology for deposition of solder mask on PCB has the potential to revolutionize the PCB manufacturing process 5

6 Legacy Inspection Product Lines 6

7 Semiconductor Market Looks Positive IC RECOVERY INDEX The IC Industry enters/exits recession when index declines/surpassed zero CAMTEK TOOL SALES BY MARKET LAST FOUR QUARTERS PCB IC REVENUE SHIPMENTS CYCLE FORECAST WORLDWIDE FORECAST OF THE BUSINESS CYCLE PATTEN, NOT $ SALES 29% 71% SEMICONDUCTOR Advanced Forecasting 7

8 The Segments We Serve in Semi CMOS Image Sensor LED 3D IC Analog MEMS Memory

9 Semiconductor Backend Inspection Market size estimated at $ m #1/#2 leading player with systems installed at leading semiconductor manufacturers Rudolph Technology (RTEC) main competitor Semi market is growing Technology driven business Very segmented: 9-10 segments: #1 in bump and µ-bump technology #1 in LED #1 in CIS We expect even higher growth rates in the segments we focus on: LED, CMOS & Packaging technology like 3DiC 9

10 Semi Growth Opportunity: LED The world is moving to LED lighting solutions Segment is expected to grow at ~20%/y in the next 4 years Led by US energy department Detailed roadmap calls for supportive systems and developments New WW regulations support transition Camtek dedicated LED systems are already installed at 5 of the leading manufacturers PACKAGED LED REVENUE SPLIT BY APPLICATION Source: Status of LED Industry Report, August 2012, Yole Development Source: EF Schubert, Light Emiting Diodes (Cambridge Univ. Press) 10

11 Market Leader: CMOS Image Sensor CMOS IMAGE SENSOR SALES SALES FORECAST BY APPLICATION (IN MILLION UNITS) Source: Yole Development, October 2012

12 Why Advanced Packaging? More functionality fits into a small space New generation of tiny but powerful devices Need for small, powerful devices BREAKDOWN BY INDUSTRY 12 WAFERS Heterogeneous integration: components optimization Reduce power consumption by times Increased functionality More than Moore 4K - 400K bumps / die Source: Yole Development, July

13 PCB & IC Substrate Inspection Every major PCB company has multiple systems #2 Position, main competitor is Orbotech with a wider product offering Capacity driven Business short lead-time tools made for inventory Follows the Global economy 2-5%. Chinese driven business 90% in China Market Size estimated $70-90m PCB & IC SUBSTRATE MARKET FY2012 MARKET SIZE ESTIMATED AT $70-90 MILLION Orbotech OTHERS 11% 57% 32% CAMTEK 13

14 3D PRINTING OF SOLDER MASK Technology risk is behind us Growth Potential in front of us DMD GreenJet

15 Cost of Operation Plot film Coat Image Develop Bake Chemical Waste Treatment Fab Space Labor Investment Cost Waste Treatment cost Electricity / water Conventional / LDI 3000ft² 5 or 4 $1000K $$$ $$$ Camtek GreenJet 300ft² 1 $300K N/A $ 15

16 Technology Problem Statement ALIGNMENT BETWEEN CIRCUITRY AND SOLDER MASK CLEARANCE SIZE OF BOARD D=½Goldx2+Green+2x Clearance D=½Goldx2+Green+2x Clearance 16

17 3D Solder Mask Functional Printing Total Available Market * Ink $ M Systems $ M ( current spending on Analog Technology) Where are we Following delays, we overcame development and system related issues Stable working window of ink, heads and the application Current tasks are engineering in mature. First beta testing will start in 6-7 weeks We control the technology We have Global qualification Started initial samples for customers. Operational preparation for product launch * Camtek estimates 17

18 Financial Highlights REVENUES LAST FOUR QUARTERS US$ MILLIONS Q4 Guidance $23-25m Q Q Q Q Q4 2013E NET INCOME LAST FOUR QUARTERS US$ MILLIONS Break even point reduced to $17-19m/quarter Market direction is turning positive Growth expected in 2014 Strong balance sheet and cash generation in 2013 Net cash of $20m at Q3-end. Q Q Q Q Q4 2013E

19 Investment Highlights Valuation Financials Market Cap: $120m Net Cash: $20m EV: $100m 12 Revenue: $85m 12 Op. Income: $5.3m 13 Revenue Exp.: ~$85m Key Growth Drivers: Expectations for good 2014 in semi Electronics market growth and new technologies 3D printing opportunity Strong Core with Significant Growth Opportunities 19

20 Thank You

21 Appendix A: GAAP Results

22 Financial Results* Annual Quarterly 2012 Quarterly 2013 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 (US $ in Millions) 2011 Revenues Gross Profit Gross Margin 44.3% 42% 48.2% 48.1% 33.8% 45.4% 44.1% 44.6% R&D % 18.3% 13% 13.7% 17.2% 20.2% 16% 16.1% SG&A % 29.9% 22% 21.2% 29.4% 26% 23.7% 25.7% Operating Profit (loss) 9 (1.1) (5.4) (0.2) Operating Margin 8.4% (-6.2%) 13% 13.2% (-30.4%) (-0.8%) 4.46% 2.76% *On a GAAP basis Copyright of Camtek Ltd All rights reserved