Slide 1: Corporate Overview
Corporate Overview June 2013
Slide 2: Disclaimers
2 Disclaimers The information presented herein contains forward-looking statements that relate to anticipated future operating results. Those statements are based on management’s current expectations and assumptions, which may be affected by subsequent developments and business conditions, and neces
Slide 3: Outline
3 Outline § Company Introduction § Industry Mega Trends § Specific Requirements/ TowerJazz Solutions § Growth drivers to the $1B and net profit targets – SOI, Power, India, CIS, MEMS § Financial Review § Summary
Slide 4: Company Introduction
4 Company Introduction
Slide 5: Internal Fab / Pure Play Foundry
5 Internal Fab Pure Play Foundry Foundry Fab TowerJazz WW Design Center Digital “Moore’s law” foundries Specialty Analog Foundry Assembly & Test Packaged Device
Slide 6: TowerJazz
TowerJazz WW Design Center pas ; Specialty Analog abless Quatcomm Y Foundry id & ne Ne 1. Processed Wafer Packaged Device Digital “Moore’s a law” foundries Internal Fab
Slide 7: Total 8" Equivalent Capacity of up to ~1.7M WPY
7 Total 8” Equivalent Capacity of up to ~1.7M WPY
Slide 8: All major flows cross qualified
All major flows cross qualified ie | F — Me 7 1m I ‘en == eer (il | Newport Beach, CA, USA = idalHieenek: sree I = | era eS ab and 6" Fab <
Slide 9: Delivered Strong Revenue Annual Growth 2005-2012
9 Delivered Strong Revenue Annual Growth 2005-2012
Slide 10: Foundry Revenue Landscape: Consistent superior performance
10 Note 1. Source: IC Insights, Company reports, SemiMD January 2012 Foundry Revenue Landscape: Consistent superior performance
Slide 11: Source: IC Insights, EE Times, Company Reports
11 Source: IC Insights, EE Times, Company Reports
Slide 12: Orders Summary, Full-Mask-Sets - 2009 vs. 2012
Orders Summary, Full-Mask-Sets - 2009 vs. 2012
Slide 13: Q1 - All Fabs, # of Masks Y over Y
Q1 - All Fabs, # of Masks Y over Y
Slide 14: TowerJazz
14 Wireless RF / HPA CMOS Image Sensor Power Management TOPS IDM Transfer Service TOPS External Service MEMS TowerJazz § #1 pure-play specialty foundry* – $639M Revenue in 2012 – Fastest growth foundry over the past 7 years § Growth fueled by innovation * Source: IC Insights, EE Times
Slide 15: Mega Trends
15 Mega Trends (1) ”Green” Energy (2) Seamless Connectivity (3) Multi-function Systems
Slide 16: Megatrend 1: Green Everything (Energy Efficiency)
16 Megatrend 1: Green Everything (Energy Efficiency) Everything in the Future will Require Power Management for Efficiency, Portability and Power Density Source: TI
Slide 17: Megatrend 2: Wireless Everything (Seamless Connectivity)
17 Megatrend 2: Wireless Everything (Seamless Connectivity) Everything in the Future will Require Wireless Connectivity to Other Device(s) Source: New Paradigm Resources, 2012
Slide 18: Multiple Embedded Functions to Impart Smartness to Systems
18 Everything in the Future will Require Multiple Embedded Functions to Impart Smartness to Systems Source: smart-systems-integration.org Example from Healthcare (STMicro)
Slide 19: Analog Market Segment is Expected to Grow Rapidly
Segment 2009 ($ Mil) (TowerJazz Born) 2015 ($Mil) Y-to-Y Growth Rate Total Semiconductor 230,194 400,806 74% Sensors/Actuators 3,970 9,832 148% Optical 17,463 35,988 106% Discretes 15,454 31,253 102% Analog 36,073 72,113 100% Microcomponents 48,463 80,243 66% Memory 44,189 73,068 65% Logic 64,582 98
Slide 20: Specific Requirements/ TowerJazz Solutions
20 Specific Requirements/ TowerJazz Solutions
Slide 21: RF/HPA Growth Driver: Our Solutions
Best-in-class SiGe, RF CMOS, RF models and Design Enablement 21 SiGe BiCMOS and RF CMOS § Mature technologies for high reliability § Wide range of options for integration § Design Enablement fast time-to-market High Performance SiGe § Strong market presence § Best SiGe performance RF Front-End Techn
Slide 22: Front-End Module Case Study: Smartphones
PA GaAs -> SiGe PA Control RF CMOS Switch GaAs or SOS, -> SOI CMOS Antenna 22 Front-End-Module Case Study: Smartphones (and 4G) multiply the needed FEM chips Front End Module Transceiver: RF CMOS 3G iPhone FEM: The heart of every mobile communication platform
Slide 23: Front-End Module Growth Significantly Outpacing Semi Industry
23 Front-End Module Growth Significantly Outpacing the Semi Industry Average
Slide 24: TowerJazz Engaged with FEM Market Leaders
PA GaAs or SiGe PA Control RF CMOS Switch GaAs or SOS, or SOI CMOS Transceiver: RF CMOS Antenn a 24 TowerJazz Engaged with FEM Market Leaders Front End Module 3G iPhone Example: Skyworks o “Foundry and/or Supplier of the Year” 2008, 2009, 2010 & 12 o 2011 Innovation Award o 2012 “Quality Iron Man Aw
Slide 25: Recognized by Skyworks as 2012 Foundry Supplier of the Year
TowerJazz Recognized by Skyworks Solutions as 2012 Foundry Supplier of the Year, Receives Quality Iron Man Partner Award Skyworks is a FEM market leader and a top 5 customer of TowerJazz MIGDAL HAEMEK, Israel, and NEWPORT BEACH, Calif., March 11, 2013 - TowerJazz, the global specialty foundry leader
Slide 26: Gaining Sizeable Share of Front-End Module Market
TowerJazz Gaining Sizeable Share of Multi-Billion Dollar Front-End Module (FEM) Market; Silicon Radio Platform Replacing GaAs Customer engagements with over 50 design wins; TowerJazz poised to manufacture major portion of devices serving multi-billion dollar FEM market Handset FEM market is forecast
Slide 27: Power Markets: Our Solutions
27 Modular power management platform with best-in class performance and design enablement (scalable models, PDK, IP and Design Services) Power Markets: Our Solutions Flat Panel TV / Display / Audio Driving the need for power components Automotive and Communication Driving the need for more integrate
Slide 28: Modular 0.18um Power Platform Case Study
Power Metal Options Thick Al, 3.3um Cu 28 “Isolated Platform” (TS18PM-SI/DI) N+ Buried Layer, EPI growth and Sinkers (3-4 additional layers + EPI) Higher Performance Case Study: modular 0.18um Power Platform to efficiently serve a wide range of markets from Components to PMICs Higher Power PMICs
Slide 29: Samsung Selects TowerJazz's 700V Power Technology
29 Samsung Selects TowerJazz’s “unrivaled” 700V Power Technology Platform for its Next Generation High Voltage Products Power Management IC Market Estimated at $14.6B in 2013 according to iSuppli Samsung Electro-Mechanics Vice President Dr. Jae Shin Lee and TowerJazz Chief Executive Officer, Mr. Rus
Slide 30: Specialty CIS Market and Tech Requirements
Requirements: high dynamic range, low dark current (metallic contamination), large-die stitching, low optical stack height, global shutter operation, high frame rate 30 Specialty CIS Market and Tech Requirements § Cinematography § Broadcasting § Full Frame DSLR § Mirror-less DSLR Professional Photog
Slide 31: Specialty CIS Growth Markets
31 Specialty CIS Growth Markets Technology, Flexibility, Experience and Commitment allows our customers to bring to the market the best in class products § Best in class pixels § Low dark current § Accurate stitching Professional Photography § Excellent flexible pixels § Stitching for 1 DPW § Very h
Slide 32: Cameras application range
32 4/3” 1” 35 mm APS (3:2) 2/3” 1/4” 1/3” 1/2” 1/10” 48x36 Consumer Prosumer Photography Professional Photography Studio & High End Photography Large Industrial, Scientific, Space Industrial, Machine Vision, Bar-Code “Cameras” application range 8” wafer size Small Medical Medical (X-ray) 6” Wafer Si
Slide 33: Enabling Customer Innovation
33 Enabling Customer Innovation
Slide 34: Customer Technology Transfer: Needs & Solution
CULTURE and TRUST Ensure the sustainability of customer’s IP ENGINEERING Short time to revenue with reduced risk & uncertainty 34 Dedicated Business Unit Strong base with multiple platforms for transfer synergies Secure Fab / Process IP protection Process and integration expertise/ Program Managemen
Slide 35: Chosen by Vishay for High Volume Manufacturing Through 2018
35 TowerJazz Was Chosen by Vishay Intertechnology for High Volume Manufacturing Engagement Through 2018
Slide 36: India Fab Project
36 India Fab Project § Advanced 0.18 Semi Lab – Transition a 150mm to a 200mm factory – Transfer 0.18um technology – Train and establish flow § $135M revenue @ high margins
Slide 37: 37
37
Slide 38: India Government Sponsored 300mm Factory
38 India Government Sponsored 300mm Factory § Signed binding MOU with Jaypee Group, leading Indian infrastructure conglomerate, to build and operate a 300mm facility in India. – Roadmap to long term 300mm wafer size, 90nm analog technology – Enables companion chips in deep submicron technologies (90
Slide 39: Recent Press Releases
39 Recent Press Releases
Slide 40: TowerJazz and CMOSIS Announce Ramp to Volume Production
40 TowerJazz and CMOSIS Announce Ramp to Volume Production for CMOSIS’ 12-megapixel CMV12000 ANTWERP, Belgium and MIGDAL HAEMEK, Israel, June 11, 2013 - CMOSIS, a leading independent developer and supplier of high end CMOS image sensors for professional imaging applications, and TowerJazz, the globa
Slide 41: TowerJazz and Cavendish Kinetics Collaborate on RF MEMS
41 TowerJazz and Cavendish Kinetics Collaborate to Deliver High Volume Tunable RF MEMS Products for Fast Growing 4G Mobile Market Industry analyst forecasts MEMS market to reach $21 billion by 2017; predicts some new MEMS devices such as RF MEMS for mobile devices could see CAGR > 90% NEWPORT BEACH,
Slide 42: New 700V Technology Cuts Die Size in Half
42 TowerJazz Announces New 700V Technology, Cuts Die Size in Half for Drivers in Fast Growth LED Lighting Market New device with on-resistance of 17 ohm-mm2 at 750V helps lower IC costs in the $13.3B LED lighting market NISHIWAKI, Japan, May 28, 2013 - TowerJazz , the global specialty foundry leader
Slide 43: Recognized by International Rectifier as 2012 Foundry Supplier of the Year
43 TowerJazz Recognized by International Rectifier as 2012 Foundry Supplier of the Year MIGDAL HAEMEK, Israel and EL SEGUNDO, Calif., May 23, 2013 - TowerJazz, the global specialty foundry leader, today announced it has received a Foundry Supplier of the Year 2012 Award from International Rectifier,
Slide 44: Gaining Sizeable Share of Front-End Module Market
44 TowerJazz Gaining Sizeable Share of Multi-Billion Dollar Front-End Module (FEM) Market; Silicon Radio Platform Replacing GaAs Customer engagements with over 50 design wins; TowerJazz poised to manufacture major portion of devices serving multi-billion dollar FEM market Handset FEM market is forec
Slide 45: Financials
45 Financials
Slide 46: TowerJazz Balance Sheets
46 March 31, 2013 Dec. 31, 2012 March 31, 2012 CURRENT ASSETS Cash, short-term deposits & designated deposits Trade accounts receivable Other receivables Inventories Other current assets 120 80 8 61 17 133 79 5 66 15 158 88 4 63 17 Total Current Assets Long-term investments Property and equipment, n
Slide 47: Financial Highlights
47 Financial Highlights § Net current assets continued its positive trend and increased from $125 million as of the end of March 2012 and $129 million as of December 31, 2012, to $141 million as of March-end 2013. § Current ratio has increased from 1.61 times as of March 31, 2012, to 1.76 times as o
Slide 48: Financial Highlights (Cont.)
48 Financial Highlights (Cont.) § Net debt to EBITDA ratio , based on 2012 full year results, is 2.2X. § Shareholders’ equity was $190 million at the end of the quarter and our cash balance as of this date includes $120 million of cash and deposits, and after the currently executed rights offering,
Slide 49: Ordinary Shares: Million
49 Ordinary Shares: 39 Million
Slide 50: Ordinary Shares & Banks Capital Notes: Million
50 Ordinary Shares & Banks Capital Notes : 48 Million
Slide 51: Cash closing balance, March 31, 2013: $121 million
Cash closing balance, March 31, 2013: $121 million 51 TowerJazz Debt | As of March 2013 Bonds Debt Summary Banks Debt Summary
Slide 52: Future Debt Payment
52 Future Debt Payment Assuming no conversion of any bond series
Slide 53: Future Debt Payment
53 Future Debt Payment Assuming conversion of all bond series
Slide 54: Assuming conversion of all bond series
Assuming conversion of all bond series 54 Future Debt Payment
Slide 55: Summary
55 Summary
Slide 56: Summary
56 Summary § Connectivity, Energy Efficiency and Multi-Function systems are key industry trends and served to a great part through analog technology. § Normal foundry model within the analog space can be well served within the TowerJazz manufacturing family. § Wafer based revenue forecasted to incre
Slide 57: Thank You
Thank You www.TowerJazz.com
Slide 58: Purchase rights on TASE trading day
Purchase rights on June 24 th on TASE trading day Exercise your rights by June 27, 2013 6 series 8 Warrants @ $5 each by July 22, 2013 For $20 you will get: 4 shares @ $5 each 5 series 9 Warrants @ $7.33 each by June 27, 2017 Any rights not sold or any rights purchased on June 24 th may be exercised