Slide 1: The Next Wave of Purion Innovation
Axcelis Technologies The Next Wave of Purion Innovation 1 August 4, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and discussion contain forward-looking statements, including our expectations for future revenues, expense reductions, profits, and other results that are forward-looking statements under the SEC’s safe harbor provision. These forward-looking statements are ba
Slide 3: Axcelis is Uniquely Positioned to Solve Ion Implantation Challenges
Axcelis is Uniquely Positioned with the Capability, DNA, and Unwavering Focus to solve customers’ high value, high impact, ion implantation challenges. 3
Slide 4: Q2 Highlights & Summary
Q2 Highlights & Summary Strong Q2 financial performance during a difficult period • Revenue of $123M and EPS of $0.39 • Gross margins 42.2% • CS&I revenues of $46.2M driven by used tool shipments • Quarter end cash balance of $197M Near term focus on protecting the health and safety of our emplo
Slide 5: 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 an estimated $1B ion implant systems market • Based in Beverly, MA with headcount of approximately 1000 worldwide • Global in
Slide 6: The Purion Platform: The Core of Our Growth Strategy
The Purion Platform The Core of Our Growth Strategy Innovative scanned spot beam architectures with advanced energy filters Common endstation and control system Advanced source technology 6
Slide 7: Purion – Fueling Axcelis' Growth
Purion – Fueling Axcelis’ Growth KEY TAKEAWAYS New product introductions New target business model Impact of segment targeted products THE BEGINNING OF PURION Created the organization required to develop the common platform and base products FOCUSED MARKET SEGMENTATION Established differen
Slide 8: Purion Growth Initiatives
Purion Growth Initiatives Geographic expansion • China is the fastest growing region typically accounting for ~30% of Axcelis’ revenue – Large geography with many new customers – Investing in sales and service personnel and support infrastructure • Japan represents 15% of the overall $1B ion impla
Slide 9: Why Customers Choose Purion – Advanced Technology
Why Customers Choose Purion – Advanced Technology 9
Slide 10: Axcelis Purion Platform: Most Innovative Ion Implant Products Available
Axcelis Purion Platform Most Innovative Ion Implant Products Available Three Unique and Enabling Beamlines + Common Endstation Enhanced Scanned Spot Beam Technology Common Purion Platform • 500WPH End Station • Vector Control SystemTM • Eterna ELS4 SourceTM Purion H RF Linear Accelerator Technology
Slide 11: Growing the Purion Product Family in Targeted Market Segments
Growing the Purion Product Family in Targeted Market Segments 11
Slide 12: Why Customers Choose Purion – Focused Segment Differentiation
Why Customers Choose Purion – Focused Segment Differentiation 12
Slide 13: Develop Purion Product Line Extensions Based on Market Segmentation
Develop Purion Product Line Extensions Based on High Level Market Segmentation and Analysis of Advanced and Emerging Technologies Segment by process technology Work with customers and industry peers to identify implant opportunities Segment by device type Work with device engineers to identify i
Slide 14: Power Device Market
Power Device Market – Strong Market Growth with Increasing Implant Capital Intensity Power device market comprised of multiple device technologies • Multiple device structures, including MOSFET, IGBT, and Bipolar devices • Multiple material types – Si, SiC, GaN Selected Device technology of choi
Slide 15: SiC Power Device Market
SiC Power Device Market – Very High Growth Rate with High Implant Capital Intensity SiC devices have emerged as a leader in markets requiring high power with high operating frequency • Strong adoption for EV/HEV market and renewable energy Driving the need for an expanding set of new implant cap
Slide 16: Purion Power Series
Purion Power Series – Optimized for the Growing Power Device Market 16
Slide 17: Purion XE SiC
Purion XE SiC – New High Energy Extension Targeting Advanced Power Device Applications Built off industry leading Purion XE product RF Linear Accelerator technology delivers industry’s highest productivity and reliability Leverages proven Purion M SiC technology • Hot implant wafer processing
Slide 18: Purion H200
Purion H200 – New Extension to the Purion H Family Targeting Power Device Applications A unique high current architectural solution for emerging high dose, higher energy applications High current architecture enables a large productivity/CoO advantage versus competitive medium current based solu
Slide 19: Image Sensors – Strong Market Growth
Image Sensors – Strong Market Growth with High Implant Capital Intensity Image sensor market continues to thrive with CAGR of >9% through 2023 • High growth in most segments including automotive, security and industrial • Volume to continue to be driven by mobile as more sensors added to smart pho
Slide 20: Image Sensors – Emerging Device Fabrication Technical Requirements
Image Sensors – Emerging Device Fabrication Technical Requirements Drive towards ever improving image sensor (CIS) performance in the deep red to infra-red regions Transfer Gate Pinning Diode n+ Floating Diffusion Longer wavelengths associated STI STI with the red to infra-red region of + = p- w
Slide 21: Purion Image Sensor Series
Purion Image Sensor Series Optimized for the Image Sensor Device Market Max Energy 4.5 MeV Max Energy 5.25 MeV Max Energy 8 MeV Max Energy >12 MeV LINAC Technology Boost Technology Advanced Metals Control (Boost Technology) 200mm/300mm Wafer Handling Field Upgradeable 2
Slide 22: Purion XEmax
Purion XEmax – New High Energy Extension Targeting Advanced Image Sensor Applications Patented Boost TechnologyTM Filters out energetic metals for reduced dark current and white pixel count levels Enables energy capability for emerging high performance image sensors Strong CoO performance •
Slide 23: Advanced Memory and Logic/Foundry Devices Emerging Implant Requirements
Advanced Memory and Logic/Foundry Devices Emerging Implant Requirements Overall scaling objectives being accomplished through strategies beyond traditional scaling • Ever increasing use of 3D architectures • Expanding use of new or modified materials Implications for ion implant include • Increa
Slide 24: Purion Dragon
Purion Dragon – Revolutionary New High Current Implanter Architecture Purion Dragon orthogonal beam optics advances high current productivity to the next level Focuses on low energy, high dose applications for advance memory & logic devices System’s advanced spot beam technology delivers best
Slide 25: Why Customers Choose Purion – The Innovation Benefit
Why Customers Choose Purion – The Innovation Benefit 25
Slide 26: Financials
Financials arxrcelis
Slide 27: Financial Results and Outlook (GAAP)
Financial Results and Outlook (GAAP) Q2 2020 Q3 2020 Outlook Revenue $123M ~$110M Gross Margin 42.2% ~42.5% Combined R&D and SG&A Expenses $35.5M ~$36M Operating Profit $16.4M $10.5M - $11.5M Net Income $13.3M EPS $0.39 ~$0.24 Total Cash $197M Debt $0 Inventory $149.2M 27
Slide 28: Gross Margin Provides the Fuel for Investment and Profitability
Gross Margin Provides the Fuel for Investment and Profitability PRICING Product extensions New products 44-45% High value upgrades SUPPLY CHAIN Pillars of Gross Margin Improvement Make vs Buy decision Leverage volume and Purion commonality Global sourcing SUPPLY CHAIN LEAN Cycle improv
Slide 29: Systems Margin Improvement
Gross Margins Driven by Product Maturity, Volume and Cost Out Initiatives Cost Out Initiatives Fueling Steady Margin Improvement 4 Quarter Average Impacted by 3 Evaluation Systems Margin Point Improvement Closures in Q1/20 (4 Quarter Rolling Average) Systems Margin Improvement 20% 18% 16% 14% 12% 10
Slide 30: Target Business Model (GAAP)
30 Target Business Model (GAAP) The Path to Market Share Leadership Revenue $301.5M $267.0M $410.6M $442.6M $343.0M $550M $650M 2015(A) 2016(A) 2017(A) 2018(A) 2019(A) Model* Model* Gross Margin 33.7% 37.3% 36.6% 40.6% 42.0% 42-43% 44-45% Total OPEX 26.8% 31.1% 24.9% 27.0% 35.0% ~25% ~24% Operating
Slide 31: Axcelis Capital Strategy
Axcelis Capital Strategy Our stock repurchase program remains on hold in light of the economic uncertainty relating to the COVID-19 pandemic. As of June 30, 2020, we had approximately $24.8 million remaining under the Board authorized program In late May we filed a “well-known seasoned issuer” F
Slide 32: Axcelis is Uniquely Positioned to Solve Ion Implantation Challenges
Axcelis is Uniquely Positioned with the Capability, DNA, and Unwavering Focus to solve customers’ high value, high impact, ion implantation challenges. 32