I N V E S T O R S P R E S E N T A T I O N - camtek.com investors august 2… · a result of...

August 2020

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” as defined in the Private Securities Litigation Reform

Act of 1995. Such forward-looking statements are based on the beliefs, expectations and assumptions of Camtek’s

management that represent Camtek’s views only as of the date they are made, 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 aspirational 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 as well as other risks and

uncertainties identified from time to time in Camtek’s Annual Report on Form 20-F and Camtek’s other filings with the SEC.

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. 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

$612M*

Employees

340

Net Cash

$101.5M*

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

*Market CAP as of Aug. 11,, 2020Net Cash as of June 30, 2020

GLOBAL

PRESENCE:

4455

6879

93

123134

67

2013 2014 2015 2016 2017 2018 2019 2020

Annual Revenue

Forecast

H1

H2Semiconductors revenue

from 2013 to 2019

18.7% Operating Income

in 2019

Expects strong H2-20

Tripled


CAMTEK’S PROGRESS

2016 2018

Revenues$123m

Revenues$79m

Op. income: $22m 18% margin

Op. income: $3m 4% margin

Gross margin: 47%

Gross margin: 50%

Year-end net cash

$20m

Year-end net cash

$55mStrategic steps to improve our business

Focused Sold Resolved Shut down Partnered

on fast growing

segments:

Advanced

packaging,

CIS …

PCB business

for $35 millionpatent dispute inkjet technology

activityChroma

Strong sales growth Improved profitability Significant increase in cash


1

5

OUR KEY SUCCESS FACTORS

Putting our

customers 1st

2Technology

leader

3Flexible

manufacturing

30% of employees are

customer support

25% of

employees are

R&D

~80% of our

systems are

customized

Strong and diversified customer base: ~100 active customers


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 & RF

• MEMS

• CMOS Image Sensors


SEMI EQUIPMENT FORECAST

• Increased CAPEX spending to support the growth

• ~80% of Camtek’srevenue is from China, Korea and Taiwan.

Copyright of Camtek Ltd© 2017. All rightsreservedCopyright of Camtek Ltd© 2017. All rightsreservedCopyright of Camtek Ltd© 2017. All rightsreserved 8

ADVANCED PACKAGING: MORE FUNCTIONALITY,

HIGHER EFFICIENCIES IN A SMALLER SPACE

Economic advantage of silicon scaling is gone ->Heterogeneous integration

Known-Good-DieEnsuring each die in the package is good

100% inspection of all

dies in the package

I n t e r p o s e r

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

WHY ADVANCED PACKAGING IS APPLIED IN MOST

ADVANCED TECHNOLOGY PRODUCTS

• Low profile

• Lower power consumption

• Higher bandwidth

• Lower latency

Smartphone

Automotive

Data Centers

IoT

Wearables

Medical Devices

50%

20%

14%

16%

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

Camtek’s Installed BaseBased on over 1,000

machines installed worldwide

Advanced Packaging


ADVANCED PACKAGING MARKET DRIVERS

No economic

advantage of silicon

scaling

Smart Packaging –

known good parts is

key

Smart phones sales

represent large

volume driving WLP,

CIS

Connectivity trends:

IoT → more sensors

5G → New RF

modules design

Big data analytics

requires high

performance

packaging & HBM

1 2 3 4 5


5G PENETRATION

Smartphone Semiconductor Revenue by Generation, 2019-2023

Source: IDC


CMOS IMAGE SENSORS

Source: IC Insights

CMOS image sensors to resume record run in 2021• Increased # of cameras

in smartphones and

smaller pixel size

requiring new equipment

• CMOS image sensor was

the largest this quarter

• Orders for 50

systems since Jan

2020


WHY DO WE CONTINUE GROWING?

1

Addressable

markets

continue to

grow

2

Demand for

more

inspection

tools

3Continuous growth

of Advanced

Packaging

Continuous growth

of the Chinese

Semiconductor

industry

4

Higher accuracies

+ Smaller Geometries

--------------------------

More inspection

technology enabler

New

manufacturing

facilities → more

equipment

5G

Big Data

AI


COVID-19 OPPORTUNITIES

• Connectivity trends and 5G drive changes in

packaging

• IoT drives demand for sensors

• 5G drives new RF module designs

• Big data analytics drives high performance

packaging

• Government investments to propel economy during

COVID-19 times

• Camtek’s market keeps growing

$ Down $ Up

Mobile phones

Automobile

Consumer electronics

Data centers

Communication

Notebooks


H2/20 - EXPECT CONT. GROWTH

• Good visibility

• Q3 guidance - $38-39m

• Q4 – encouraging backlog for continued revenue growth and improved profitability

Q2/20 - RECORD REVENUE

• $37m revenue;

• GM of 46.1%

• Operating income (non-GAAP): $6.4m; 17.2% margin

ONGOING REVENUE GROWTH

Leverage in our business model


OUTPERFORMING THE INDUSTRY

0%

25%

55%

80%

111%

180%

205%

0%11% 11% 11% 34% 52% 36%

0%

50%

100%

150%

200%

250%

2013 2014 2015 2016 2017 2018 2019

Growth in Revenues vs Growth in Semiconductor Market 2013-

2019Revenues Global semiconductor market (YOLE)

Inspection and

metrology

equipment is

key factor in

adopting new

technologies and

products to

achieve high yield

and stability in

production

Gaining Market Share


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

18

SUMMARY

✓ Growth drivers

✓ Focused strategy

2 3Goal

Double Revenues every

3-5 years

✓ Profitability

✓ Strong balance sheet

Industry Performance

Expand our TAM and win market share from competition

T H A N K

Y O U


FINANCIAL RESULTS - GAAP

2020

FY 2017 FY 2018 FY 2019 Q1 Q2

(US $ in Millions)

Revenues 93.5 123.2 134.0 30.2 37.0

Gross Profit 45.5 60.8 64.8 13.6 16.9

Gross Margin 49% 49% 48% 45% 46%

R&D 13.5 14.6 16.3 4.1 4.7

SG&A 22.0 26.2 26.5 6.6 6.7

Loss from litigation 13.0 - - -

Operating Profit (Loss) -3.0 20.0 22.0 2.9 5.4

Operating Margin -3% 16% 16% 10% 17%

Net Income from Continuing Operations 1.7 18.8 20.8 2.8 5.3

Net Income from Discontinued Operations 12.3 - 1.2 -

Annual 2020

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