I N V E S T O R S P R E S E N T A T I O N - Camtek• Q318 revenue guidance of $31-32m; +30% YoY •...

August 2018

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

GLOBAL

PRESENCE:

China, Taiwan, Korea,

Singapore, Hong Kong,

USA, Europe

Market Cap

$304M*

Q2 2018 revenues

$30.5M+34% YoY

2017 revenues

$93M+18% YoY

Employees

280

Net Cash

$41M*

Q2 2018 net income

$4.6M (15%)

+134% YoY

2017 net income

$10M+315% YoY

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

*Market CAP as of July 30, 2018Net Cash as of June 30, 2018


WHAT WE DO

INSPECTION METROLOGY SOFTWARE SOLUTIONS

Bumping MemoryRDLAdvanced Packaging

PostDicing

MEMS,RF

CMOSImage Sensors


STRONG CUSTOMER BASE


STRONG AND IMPROVING

OPERATING PERFORMANCE

Camtek semiconductor

revenue and operating

income ($m)

2017

44

55

68

79

93

DOUBLEDSemi revenue

organically from

2013 to 2017

More than

2013 2014 2015 2016 2018E

REVENUE

double

digit

growth

310 ~15% OI

Growth from

leverage


LOOKING AHEAD:

• Highest ever level of backlog

• Q318 revenue guidance of $31-32m;

+30% YoY

• +30% YoY growth for the fist 9m of

2018

• Improved profitability

Q2 2018:

RECORD RESULTS

• $30.5m revenue; +34% YoY

• GM of 49.0%, approaching target model

• operating income (non-GAAP): $5.0m;

16.3% margin

ONGOING REVENUE GROWTH

16.8

19.8

21.0 21.5

21.1

22.7

23.8

25.8

27.3

30.5

15.0

17.0

19.0

21.0

23.0

25.0

27.0

29.0

31.0

Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18

Camtek Quarterly Revenue Growth (US$) since Q1 2016


PERFORMANCE HIGHLIGHTS

• Doubled semiconductor revenues 2013-2017

• Momentum continues into 2018

• Successfully improved profitability to 16% operating margin

• Significant margin improvement: expect to continue

Growth engines:

• Positioned well in a growing market

• Penetrating new market segments: 2D, FE

• China

• New products: ICI, s/w

Again in next

DOUBLE

REVENUES

3-5 years


SEMICONDUCTOR MARKET

GROWTH ENGINES

Source: Cisco Global Cloud Index, Gartner, Camtek estimates

Mobility &Connected Devices

(5G)

Cloud BlockchainTechnologies

Digital

Healthcare

Artificial Intelligence& Machine Learning

Autonomous

Car

Augmented &

Virtual Reality

Multiple Growth Drivers

RF Filters MEMS Advanced Packaging Data Centers & Storage Processing Power


AUTOMOTIVE INDUSTRY TRENDS

Today

~70electronics modulesWith 4-8k chips

~100+electronics modulesexpected

by 2020

Audio system

Transmission

control

Connectivity

TV module

Trunklatches

LED lighting

Bus interface protection

Engine control

unit

Airbag

Powersteering

HID, LEDlighting

Diagnosis unit

Climate control

Dashboard

Telematics, multimedia, infotainment, GPS, navigation, E-call, tracking & car alarm system

Keyless entry,Central lock,immobilizer

ABS, ESP, TPMS,electro-hydraulic brake,

traction control

Electrical drives(e.g. mirror, seat, sun roof, wiper, window)

ADAS(e.g. ACC, parking

sensor,blind spot detection,

radar,lane change assistance)


ADVANCED PACKAGING - 3D IC


WW SEMICONDUCTOR EQUIPMENT


ADVANCED PACKAGING

Driving Increased

Inspection & Metrology

Capital Spending

Advanced Packaging

penetration expected to

DOUBLE2016-2020...

Advanced Packaging wafer forecast x1000 wspy 300 mm eq.

Co

un

t (x

10

00

wsp

y3

00

mm

eq

.)

45,000

40,000

35,000

30,000

20,000

20,000

15,000

10,000

5,000

0

2014 2015 2016 2017 2018 2019 2020 CAGR

FC 13,256 15,415 16,455 18,626 21,501 24,902 29,062 14%

FO WLP 428 593 1,968 3,037 3,880 4,882 5,817 54%

FI WLP 3,587 3,892 4,134 4,512 4,910 5,327 5,756 8%

2.5D / 3D 1,350 1,798 2,268 2,853 3,463 4,239 5,900 26%

TOTAL 17,271 19,901 22,557 26,176 30,290 35,111 40,635 15%

And # of bumps / wafer

is growing

Driving AOI spending

growth much faster


THE MEMORY PACKAGING MARKET

Source: Yole, 2017

33.5

44.5

5

6

7

0

2

4

6

8

10

12

14

16

18

20

2016 2017 2018 2019 2020 2021 2022

Pagaging Advanced Packaging

AP includes: WLCSP, FC and TSV

Rev

enu

es (

$B

)

AP CAGR 12.87%


OUR TARGET SEGMENTS

SHOW DOUBLE-DIGIT GROWTH

Source: Yole, Gartner, IC Insights % 2016-2022 CAGR

Memory will grow in 2017 by 60%

7%

7.6%

7.6%

11%

12%

12%

19%

21%

Semi total

Foundry

Memory

RF

MEMS

CIS

3D IC

Fan-out

Ad

va

nce

d

Pa

cka

gin

g

CA

MT

EK

FO

CU

S

50%

20%

14%

16%

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

Installed Base

Based on 800 machines

installed worldwide


STRATEGIC PLAN AHEAD

Double

Revenuein 3-5 years

Metrology industry

standardKeep leadership position in

Metrology

Expand Inspection

market share• Leverage on 3D strength

• Innovative technology

solutions: Side Wall Crack,

multi-level RDL

• Increase Software sales

New market

segments• Front-end Macro inspection

• Compound Semiconductors

Chinese market

expansion• Well positioned to leverage on

this market growth

Improved ProfitabilityOperating leverage

Lower ongoing expenses

Increased software component


INNER CRACK DETECTION (ICI)

Normal – 1.7um / pix ICI – 4.9um / pix IR-2.3um/pix focus on metal FIB cross section

20

• Most cost effective solution for cracks detection that cause field failures

• More than 90% correlation to IR Inspection


SOFTWARE SOLUTIONS

Map Analysis Pattern

SOFTWARE

SOLUTIONS

Automatic Defect Classification

• Fully automated inspection process

• Deep Learning based algorithms

Yield Analysis

• Yield enhancement

• Process control

• Enhanced data visualization

Defect classification


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 Macro Inspection

Maintain leading position New marketIncrease market share


PROGRESS TO LONG-TERM OPERATING MODEL*

*Illustrative Purposes Only

Rafi Amit, CEO

we expect double-digit revenue

growth in 2018, and combined

with our strong operating

leverage, we expect to enjoy

a strong year of profitability.

‘‘ ‘‘

Revenue

100%

double digit

growth from

semi

2014(inc. PCB)

Gross Margin

drivers – software sales, leverage

50-52%

2017 49%

46%

Operating Margin

drivers – efficiencies, leverage

15-20%

2014(inc. PCB)

6%2017 11%

2017 15%


1

25

INVESTMENT HIGHLIGHTS

End markets

continue to

grow quickly

2

Focus on the

fastest growing

segments and

increasing TAM

3

Continued

improvement

in margins &

profitability

GOAL

Double Revenues

again within

3-5 years

T H A N K

Y O U !


GAAP FINANCIAL RESULTS

Annual Annual 2018 2018

FY FY Q1 Q2

(US $ in Millions) 2016 2017

Revenues 79.2 93.5 27.3 30.5

Gross Profit 32.5 45.5 13 14.9

Gross Margin 41% 49% 48% 49%

R&D 12.7 13.5 3.5 3.4

16% 14% 13% 11%

SG&A 21.9 22 5.9 6.8

28% 15% 22% 22%

Reorganisation -4.1 - - -

Loss from litigation - 13 - -

Operating Profit (Loss) 30.5 -3 3.6 4.7

Operating Margin 39% -3% 13% 16%

Continuing Operations 0.9 1.7 3.5 4.3

Discontinued Operations 3.9 12.3 - -

Net Profit (Loss) 4.7 14 3.5 4.3

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