Axcelis Technologies, Inc. · NASDAQ:ACLS
Axcelis Technologies — Q2 2023 Earnings Presentation
29 slides from Axcelis Technologies's earnings presentation, Aug 2, 2023
Slide 1: Investor Presentation
Investor Presentation August 2, 2023 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 45 years • Serving the greater than $2.5B ion implant systems market • Based in Beverly, MA with headcount greater than 1575 worldwide • Global custo
Slide 4: Axcelis Business Thesis
Axcelis Business Thesis Mature markets represent greater than 60% of the implant TAM The Implant TAM has more than Electric Vehicle adoption is key to growth in these semiconductor segments doubled in the last few years $50 to $60 Billion annually in CAPEX is being spent on the mature markets Mature
Slide 5: Q2 2023 Highlights & Summary
Q2 2023 Highlights & Summary ◼ Axcelis expects to achieve annual revenue of greater than $1.1B in 2023 and $1.3B within one to two years ◼ Strong second quarter 2023 financial performance • Revenue of $274.0M and EPS of $1.86 • System revenue of $215.2M and CS&I revenue of $58.8M • Gross margin of 4
Slide 6: Q2 2023 Financial Results and Outlook (GAAP)
Q2 2023 Financial Results and Outlook (GAAP) Q2 2023 Q3 2023 Outlook Revenue $274.0M ~$280M Gross Margin 43.7% ~44% Combined R&D and SG&A Expenses 20.4% ~21% Operating Profit $63.7M ~$64M Net Income $61.6M EPS $1.86* ~$1.72 Cash, cash equivalents and $452.9M short-term investments Debt $0 Inventory
Slide 7: Purion Continues to Drive Axcelis Growth
Purion Continues to Drive Axcelis Growth ▪ Unprecedented opportunity in power devices ▪ Increased ion implant TAM ▪ Differentiated product portfolio ▪ Continuous innovation ▪ Strong balance sheet ▪ Strong manufacturing capability ▪ Strong customer relationships ▪ Quality focused ▪ Great employees 7
Slide 8: Target Business Model (GAAP)
Target Business Model (GAAP) Axcelis expects financial growth through the industry downturn and to exceed $1.1B in revenue in 2023 and targets ~$1.3B in revenue within 1 to 2 years $442.6M $343.0M $474.6M $662.4M $920.0M >$1.1B ~$1.3B Revenue 2018(A) 2019(A) 2020(A) 2021(A) 2022(A) Model* Model* Gro
Slide 9: Fundamentals Supporting Axcelis Growth Remains Strong
Fundamentals Supporting Axcelis Growth Remains Strong Fundamental growth drivers for long-term cycle ▪ Electrification of the automotive industry with ADAS (Driver Assist) – “Computer on Wheels” • Power devices, image sensors and general mature devices ▪ Communications - 5G, phones, Internet of Thin
Slide 10: Ion Implant TAM has More Than Doubled Over the Last 3 Years
Ion Implant TAM has More Than Doubled Over the Last 3 Years Ion Implant Annual TAM Estimates ($B) ◼ Step function in TAM driven by $3.0 • Increased overall wafer starts across all segments • Rapid growth of implant capital intensive mature $2.5 nodes and specialty devices (implant $/wafer start) — P
Slide 11: Ion Implant TAM Segment Breakdown
Ion Implant TAM Segment Breakdown ◼ The mature process technology segment accounts for greater than 60% of the ion implant TAM Mature Process Technology – 66% Memory – 22% Advanced Logic - 12% • Mature process technology growing based on increases in wafer starts, high implant capital intensity, and
Slide 12: Axcelis Strong Systems Growth Driven by Targeted Market Segments
Axcelis Strong Systems Growth Driven by Targeted Market Segments ◼ The mature process technology segment remained strong in 2022, accounting for 82% Mature Process Technology – 82% Memory – 17% Advanced Logic - 1% of Axcelis shipped system revenues ◼ The mature process technology segment is expected
Slide 13: SiC Device Market Growing at Greater than 30% CAGR
SiC Device Market Growing at Greater than 30% CAGR Driven by the Electrification of the Automotive Industry SiC Device Market Growth Dominated by Automotive SiC Wafer Starts Projected to Double Every 3 Years 7,000 2,500 150mm Equivalent SiC Wafer Volume (K/yr) 6,000 SiC Market TAM ($1,000) 2,000 5,0
Slide 14: Axcelis Power Device Revenue Growth: SiC Growth Accelerates
Axcelis Power Device Revenue Growth* SiC Growth Accelerates Fueled by Automotive ◼ Implant TAM for SiC devices will continue to grow within the power device segment, driven by strong demand from the automotive market ◼ Si IGBT devices designed in by several automakers for first generation EV, but ma
Slide 15: Purion Power Series Revenue Growth
Purion Power Series Revenue Growth* Driving Customer Success in Manufacturing SiC Power Devices Purion Power Series • Providing full recipe coverage for all power device applications • Enabling high volume manufacturing and device optimization • Reducing customer Cost of Ownership Purion M SiC Purio
Slide 16: Purion Power Series Optimizing SiC and Si Power Device Performance
Purion Power Series Optimizing SiC and Si Power Device Performance SiC Trench MOSFET Power Device Purion H200, Purion H200 SiC Purion H200 SiC Purion M Purion M SiC Purion M SiC Purion XE/EXE SiC Purion H Si IGBT Power Device Purion H200 Trend Purion M Purion XE, EXE Purion XE SiC, EXE SiC Purion H
Slide 17: 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 17
Slide 18: Multiple Initiatives Will Accelerate Purion Growth Across All Markets
Multiple Initiatives Will Accelerate Purion Growth Across All Markets ◼ Continued focus on the growing power device market opportunity • New customers and expanding footprint with existing customers to support ramp to high volume manufacturing ◼ Geographic expansion • China emphasis on mature proces
Slide 19: Accelerated Purion Systems Evaluation Activity
Accelerated Purion Systems Evaluation Activity ◼ Nine Purion evaluation systems currently in the field • Located at strategic customer sites in key market segments ◼ Continued successful evaluations of new products in key markets will drive Axcelis growth • Purion Dragon to R&D fab at leading memory
Slide 20: Key Purion Placements in Target Segments
Key Purion Placements in Target Segments Supporting Long Term Revenue Growth and Margin Expansion AXCELIS WINS THE TEXAS INSTRUMENTS 2022 AXCELIS ANNOUNCES FOLLOW-ON SHIPMENTS OF SUPPLIER EXCELLENCE AWARD PURION H™ HIGH CURRENT IMPLANTERS TO AXCELIS ANNOUNCES SHIPMENT OF 500th PURION ION IMPLANTER A
Slide 21: Rapid Manufacturing and Supply Chain Growth
Rapid Manufacturing and Supply Chain Growth Enabled by Smart Capacity Planning and Execution ◼ Capacity Expansion • Added additional clean manufacturing capacity at our Beverly factory • Axcelis Asia Operations Center in South Korea ramping production • Numerous capital projects and kaizen events in
Slide 22: Methodical Program-Driven Gross Margin Improvement
Methodical Program-Driven Gross Margin Improvement 2023 and beyond Expanding low cost sourcing to capture additional material savings 2019-2022 Shipping a higher mix of Purion Product extensions Value engineering enables supply Driving margin accretive revenue chain savings growth from CS&I 2015-201
Slide 23: Margin Improvement of Purion Products Improves Overall Gross Margin
Margin Improvement of Purion Products Improves Overall Gross Margin and Reduces Mix-Induced Variability Purion System Margin 2021(A) 2022(A) >$1.1B Model ~$1.3B Model High Current Medium Current High Energy 43.2% 43.7% ~44% >45% Corporate Gross Margin 23
Slide 24: Continued Work on Supply Chain will Further Ease Challenges in 2023
Continued Work on Supply Chain will Further Ease Challenges in 2023 ◼ Focus on “Customer Satisfaction” • 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 shippi
Slide 25: Customer Solutions & Innovation (CS&I) Drives Margin Growth
Customer Solutions & Innovation (CS&I) Drives Margin Growth and Customer Satisfaction ◼ Significant contributor to Axcelis financials • Expected to contribute approximately 25% of total revenues • Accretive to Axcelis corporate gross margins ◼ CS&I business revenues comprised of • Contracts, time &
Slide 26: 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 27: Axcelis Capital Allocation Strategy
Axcelis Capital Allocation Strategy ◼ The company will continue to maintain a strong and healthy Quarterly Diluted Share Count balance sheet while investing in initiatives that are expected to 35 drive strong revenue growth and gross margin expansion ◼ Cash will be used to offset dilution • Board ap
Slide 28: Axcelis Business Thesis
Axcelis Business Thesis Mature markets represent greater than 60% of the implant TAM The Implant TAM has more than Electric Vehicle adoption is key to growth in these semiconductor segments doubled in the last few years $50 to $60 Billion annually in CAPEX is being spent on the mature markets Mature
Slide 29: Axcelis Technologies, Inc Nasdaq - ACLS
Axcelis Technologies, Inc Nasdaq - ACLS 29