Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — 14th Annual CEO Summit 2022
30 slides from Skywater Technology's conference presentation, Jul 13, 2022
Slide 1: SkyWater Technology Investor Presentation
SkyWater Technology (Nasdaq: SKYT) Investor Presentation 14 th Annual CEO Summit July 13, 2022
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure This presentation and the accompanying oral presentation, including answers to questions, contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that are based on the Company’s current expectations
Slide 3: Investment Highlights
Investment Highlights 01 High-Margin ATS Combined with Wafers Services Creates a Scalable Business Model 02 Uniquely Positioned to Serve Megatrends: Artificial Intelligence, Electrification, Medical Implants, Rapid Disease Screening, 5G/6G Communications, Commercialization of Space 03 Seasoned Manag
Slide 4: SkyWater's Unique Model Accelerates Disruption
SkyWater’s Unique Model Accelerates Disruption WHO WE ARE Technology as a Service (TaaS) SM SM Innovation as a Service Manufacturing as a Service Advanced Technology Services (ATS) Wafer Services enable co-creation of differentiated solutions supply customers with ICs and which are the unique expres
Slide 5: We are the only U.S.-owned pure-play foundry
We are the only U.S.-owned pure-play foundry. Extending a legacy of manufacturing excellence to meet the industry’s needs in a post-Moore’s Law reality Cypress SkyWater 2005 2008 2017 2018 2019 2020 2021 SkyWater SkyWater and $170 M rad-hard 3-year anniversary Florida $112M IPO closed 65 nm qualifie
Slide 6: SkyWater Minnesota and SkyWater Florida
Fab SkyWater Minnesota SkyWater Florida Bloomington, MN Kissimmee, FL OPERATION OPERATION 200 mm equipment 200 mm equipment 91,000 ft² Cleanroom Size: 109,000 ft2 total Class 10 + SMIF 26,000 ft2 of class 1000 10,000 30 ML CMOS wafers or 50,000 MOSFET 9,400 ft2 of class 10,000 wafers per month 90 nm
Slide 7: SkyWater is Defining a New Category
SkyWater is Defining a New Category Ability to Transition “Frictionless Productization” to Volume Manufacturing Technology Foundry Specialty Conventional/ Advanced Technology Foundry Services Specialty Foundry Conventional + Target Foundry Wafer Services Minimal Moderate High customization cus
Slide 8: Model Enables Early Foundry Engagement
Model Enables Early Foundry Engagement Technology as a Service Advanced Technology Services (ATS) Wafer Services Concept & Technology Process Product Volume Product Design Feasibility Demonstration Development Qualification Manufacturing Mixed-Signal Custom Product Process Flows Design Kits Supercon
Slide 9: Partnership Pathways: Prototype to Production
Partnership Pathways: Prototype to Production Research Commercialization Advanced Wafer Technology Qualification Services Services R&d: r&D: r&d: Primary Activity Proof of Concept Maturing & Qualifying Volume Tech Demonstration Capabilities, Process Flows, and Production Process Development Products
Slide 10: MRLs and Development Phases
MRLs and Development Phases Technology Demonstration / Process Development Manufacturability & High Volume Proof of Concept & Base Process Qual Product Qual Production Scoping Project Kickoff Development MFG Integration Production Ramp Low Rate Full Rate Scoping and business Kickoff meeting to Execu
Slide 11: TaaS Accelerates Concepts to Market
TaaSSM Accelerates Concepts to Market Technology as a Service Advanced Technology Services Wafer Services Scientific Research Technology Development Product Development Manufacturing Expanding boundaries of Co-dependent device and process Products designed on mature Qualified products produced curre
Slide 12: Diverse Vertical Markets Served by Differentiated Platforms
Diverse Vertical Markets Served by Differentiated Platforms Aerospace Industrial Bio-Health Automotive & Advanced Consumer & Defense and IoT Transportation Computing TaaSSM model supports disruptive trends across markets TaaSSM feeds recurring revenue through differentiated engagements Advanced Tech
Slide 13: Diverse Markets and Technologies Enable Rapid Growth
Diverse Markets and Technologies Enable Rapid Growth Aerospace & Advanced Automotive & Platform Bio-Health Consumer Industrial / IoT Defense Computing Transportation Mixed Signal ● ● ● ● ● Rad-Hard ● ● Discrete Power ● ● ● ● Advanced Packaging ● ● ● ● ● ● Superconducting ● ● 3DSoCs ● ● ● ● ● ● Silic
Slide 14: Technology Categories
Technology Categories Mixed-Signal Rad-Hard MEMS Power Superconducting Photonics Carbon Advanced CMOS Leading Microfluidics Discrete Foundry service Capabilities for Nanotubes Packaging & Flexible Solutions Strategic Rad- MOSFET provider for quantum passive photonic CNT enabled Interposers for Comme
Slide 15: Select Partners & Customers
Select Partners & Customers Strategic Technology Partners Customers Proprietary 15
Slide 16: Financial Summary
Financial Summary Proprietary 16
Slide 17: Demonstrated ATS Growth
Demonstrated ATS Growth ATS Revenue by Customer • ATS revenues grew 19% in 2021 (each color band is a distinct customer) • 11% excluding tool sales • ATS revenues exceeded Wafer Services revenues for first time in 2020 • 43% Revenue growth in 2020 2017 2018 2019 2020 2021 Proprietary 17
Slide 18: Increasing Revenue Diversity Reflects TaaS Adoption
Increasing Revenue Diversity Reflects TaaSSM Adoption Advanced Technology Services (ATS) Revenue Trend More customers developing technology and existing programs expanding in scope Wafer Services Stronger mix of customers, full capacity and higher margin products in production Infrastructure Custome
Slide 19: TaaS Model Addresses Strong Demand
TaaSSM Model Addresses Strong Demand 2017 2021 At time of spin off ATS Wafer 1% Services 33% Wafer Services ATS 99% 67% Proprietary 19
Slide 20: Q1 2022 Financial Summary
Q1 2022 Financial Summary Revenue • Total revenue flat YoY In USD millions Q1 22 Q1 21 Y/Y • Comparable YoY revenue growth of 19%, after excluding: ◦ Episodic tool revenues, which were $1.0M in Q1’22 compared to ATS Revenue $26.6 $38.1 (30)% record high $15.4M in Q1’21 ◦ $8.2M pull-in of WS revenue
Slide 21: Revenue Trajectory
Revenue Trajectory in USD $ millions +6% (3)% * Q1 2022 wafer services amount excludes impact of new contract with significant customer Proprietary 21
Slide 22: 2022 Business Outlook
2022 Business Outlook • Improved pricing and revenue recognition terms with largest historical customer enables greater confidence in achieving full-year revenue growth near long-term model of 25% • Investments in RadHard and Heterogenous Integration Platforms in preparation for upcoming revenue ram
Slide 23: Multiple Drivers of Future Revenue and Margin Growth
Multiple Drivers of Future Revenue and Margin Growth Extreme Environment Point of Care Diagnostics High Performance Power Advanced Packaging Microelectronics & Genetic Sequencing Management & IoT Execute on 90 nm FDSOI Execute existing programs; Increase penetration with TaaS Enable leading-edge pow
Slide 24: Investment Highlights
Investment Highlights 01 High-Margin ATS Combined with Wafers Services Creates a Scalable Business Model 02 Uniquely Positioned to Serve Megatrends: Artificial Intelligence, Electrification, Medical Implants, Rapid Disease Screening, 5G/6G Communications, Commercialization of Space 03 Seasoned Manag
Slide 25: SkyWater
S SKywater
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We provide supplemental non-GAAP financial information that our management utilizes to evaluate our ongoing financial performance and provide additional insight to investors as supplemental information to our U.S. GAAP results. We provide non-GAAP gross profit, non-GA
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 2022 (In thousands) GAAP revenue $ 36,904 $ 30,759 $ 33,003 $ 39,772 $ 140,438 $ 48,101 $ 41,189 $ 35,025 $ 38,533 $ 162,848 $ 48,121 Estimated impact of additional operating week — — — (2,491) (2,491) — — — — — — Tool revenue (3,1
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 2022 (In thousands) GAAP net loss to shareholders $ (1,372) $ (5,293) $ (1,654) $ (12,298) $ (20,617) $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) Inventory write-down — — — — — — — — 13,442 13,442 — Paycheck Pro
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 2022 (In thousands) Net loss to shareholders $ (1,372) $ (5,293) $ (1,654) (12,298) $ (20,617) $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) Interest expense 1,462 1,322 1,303 1,412 5,499 1,058 912 733 839 3,542 1
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 2022 (In thousands) GAAP EPS Net loss attributable to SkyWater Technology, Inc. $ (1,372) $ (5,293) $ (1,654) $ (12,298) $ (20,617) $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) Undistributed preferred return to C