Axcelis Technologies, Inc. · NASDAQ:ACLS
Axcelis Technologies — Q4 2021 Earnings Presentation
24 slides from Axcelis Technologies's earnings presentation, Feb 7, 2022
Slide 1: Investor Presentation
Investor Presentation February 7, 2022 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and discussion contain forward-looking statements, including our expectations for the future market for our products, revenues, profits, and other results that are forward-looking statements under the SEC’s safe harbor provision. These forward-looking statemen
Slide 3: Axcelis at a Glance
Axcelis at a Glance ◼ Global leader in technology development and manufacturing of ion implant systems and services for the semiconductor industry for over 40 years • Serving the approximately $2B ion implant systems market • Based in Beverly, MA with headcount of greater than 1100 worldwide • Globa
Slide 4: Recent Axcelis Technologies Recognition
Recent Axcelis Technologies Recognition Axcelis Named to Forbes’ List of America’s Best Small-Cap Companies for Second Consecutive Year - Ranking #21 Out of 100 Companies 4
Slide 5: Q4/FY2021 Highlights & Summary
Q4/FY2021 Highlights & Summary ◼ Strong financial performance with record annual revenue, operating profit and gross margin since becoming an independent public company in 2001 • Revenue of $205.7M/$662.4M and EPS of $1.05/$2.88 • Systems revenue of $147.3M/$454.6M • Gross margins 43.5%/43.2% • CS&I
Slide 6: Q4 and Year End 2021 Financial Results and Outlook (GAAP)
Q4 and Year End 2021 Financial Results and Outlook (GAAP) Q4 2021 FY 2021 Q1 2022 Outlook Revenue $205.7M $662.4M ~$193M Gross Margin 43.5% 43.2% ~43% Combined R&D and SG&A Expenses 20.9% 24% ~22% Operating Profit $46.6M $127.3M ~$41M Net Income $35.7M $98.7 EPS $1.05 $2.88 ~$0.92 Total Cash $295.7M
Slide 7: Target Business Model (GAAP)
Target Business Model (GAAP) New Models take Axcelis to ~$1B over the next several years $410.6M $442.6M $343.0M $474.6M $662.4M ~$850M ~$1B Revenue 2017(A) 2018(A) 2019(A) 2020(A) 2021(A) Model* Model* Gross Margin 36.6% 40.6% 42.0% 41.8% 43.2% 43-45% 45-46% Total OPEX 24.9% 27.0% 35.0% 29.6% 24% 2
Slide 8: Strong Market Conditions Expected to Continue
Strong Market Conditions Expected to Continue ◼ Semiconductor golden age continues • All segments continue to grow • High fab utilization is required to support these overall strong market conditions, driving significant systems capacity additions and a very strong service business • Unprecedented C
Slide 9: Purion Continues to Drive Axcelis' Growth
Purion Continues to Drive Axcelis’ Growth Unprecedented market conditions Growing implant TAM Differentiated product portfolio Continuous innovation Strong balance sheet Strong manufacturing capability Strong customer relationships Quality focused Great employees 9
Slide 10: Purion – The Core of Our Growth Strategy
Purion – The Core of Our Growth Strategy Targeted Market Segments Purion products targeted at high value applications and market segments 10
Slide 11: Purion Power Series – Enabling Advanced Power Device Technology
Purion Power Series – Enabling Advanced Power Device Technology 11
Slide 12: Purion Image Sensor Series – Enabling Advanced CIS Device Technology
Purion Image Sensor Series – Enabling Advanced CIS Device Technology 12
Slide 13: Axcelis will Experience Strong Systems Growth in Targeted Market Segments again in 2022
Axcelis will Experience Strong Systems Growth in Targeted Market Segments again in 2022 ◼ The mature process technology segment saw significant growth in 2021, accounting for 82% Mature Process Technology – 82% Memory – 17% Advanced Logic - 1% of Axcelis systems revenues ◼ Expect to further penetrat
Slide 14: Multiple Initiatives will Accelerate Purion Growth across All Markets
Multiple Initiatives will Accelerate Purion Growth across All Markets ◼ Geographic expansion • China emphasis on mature process technology and memory applications for large, diverse group of both domestic and multinational customers • Japan focus on power devices, image sensors and NAND ◼ Purion foo
Slide 15: Accelerated Purion Systems Evaluation Activity
Accelerated Purion Systems Evaluation Activity ◼ Three Purion evaluation systems currently in the field with additional systems expected to ship in 2022 • Located at strategic customer sites in key market segments ◼ Closed 4 evaluations in Q4 2021 • Purion Dragon – DRAM • 2 Purion H – Advanced Logic
Slide 16: Key Purion Placements in Target Segments
Key Purion Placements in Target Segments Supporting Long Term Revenue Growth and Margin Expansion AXCELIS ANNOUNCES MULTIPLE SHIPMENTS OF PURION AXCELIS ANNOUNCES INTRODUCTION OF THE AXCELIS ANNOUNCES SUCCESSFUL CLOSURE HIGH CURRENT AND HIGH ENERGY IMPLANTERS TO ‘GSD OVATION’ HIGH CURRENT AND HIGH E
Slide 17: Rapid Manufacturing and Supply Chain Growth Enabled by Smart Capacity Planning and Execution
Rapid Manufacturing and Supply Chain Growth Enabled by Smart Capacity Planning and Execution ◼ Capacity Expansion • Added additional clean manufacturing capacity at our Beverly factory • Opened the Axcelis Asia Operations Center in South Korea on November 1, 2021 — Shipped 1st Purion XE in January 2
Slide 18: Methodical Program-Driven Gross Margin Improvement
Methodical Program-Driven Gross Margin Improvement ~43% to 46% 2022 and beyond ~41% to 43% Expanding low cost sourcing to capture additional material savings 2019-2021 Shipping a higher mix of Purion Product extensions ~34% to 40% Value engineering enables supply Driving margin accretive revenue cha
Slide 19: Margin Improvement of Purion Products Improves Overall Gross Margin
Margin Improvement of Purion Products Improves Overall Gross Margin and Reduces Mix-Induced Variability Purion Systems Margin 2021 ~$850M ~$1B High Current Medium Current High Energy 43.2% 43% to 45% 45% to 46% Corporate Gross Margin 19
Slide 20: Near Term Supply Chain Considerations
Near Term Supply Chain Considerations ◼ Focus on “On time material availability” • Continuing to closely work with supply chain partners to ensure on time delivery. Added additional resources and qualified new suppliers in bottleneck areas • Working with freight providers to add extra shipping lanes
Slide 21: Customer Satisfaction & Innovation (CS&I) Drives Margin Growth and Customer Satisfaction
Customer Satisfaction & Innovation (CS&I) Drives Margin Growth and Customer Satisfaction ◼ Significant contributor to Axcelis financials • Expected to contribute revenues of ~$225M to the $850M and ~$250M to the $1B financial models • Accretive to Axcelis corporate gross margins ◼ CS&I business reve
Slide 22: Investing in Products, Infrastructure and Employees to Drive Growth
Investing in Products, Infrastructure and Employees to Drive Growth ◼ Axcelis has heavily focused R&D spending on Purion product development. Many new products and extensions have been released and shipped to numerous first time and existing customers ◼ We will continue to invest R&D dollars on new
Slide 23: Axcelis Capital Strategy
Axcelis Capital Strategy ◼ The company will continue to maintain a strong and healthy balance sheet while investing in initiatives that are expected to drive strong revenue growth and gross margin expansion ◼ Have returned over $75M of cash to shareholders since 2019 through our share repurchase pro
Slide 24: Axcelis Technologies, Inc Nasdaq - ACLS
Axcelis Technologies, Inc Nasdaq - ACLS 24