Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — Piper Sandler Growth Frontiers Conference 2024
29 slides from Skywater Technology's conference presentation, Sep 10, 2024
Slide 1: Piper Sandler Growth Frontiers Conference
Piper Sandler Growth Frontiers Conference September 10, 2024 NASDAQ: SKYT
Slide 2: SkyWater Technology Forward-Looking Statements
SkyWater Technology Forward-Looking Statements 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 Compan
Slide 3: SkyWater Opportunity
SkyWater Opportunity Domestic semiconductor trends and next-generation technologies fuel growth HIGH OPERATING UNIQUE TECH PORTFOLIO LEVERAGE BUSINESS MARGIN EXPANSION GROWTH MODEL FOUNDRY MODEL “Tech ETF” - USG and customer Demonstrated financial High-growth In-demand technology unique exposure to
Slide 4: America's Foundry at-a-Glance
America’s Foundry at-a-Glance $300M+ SKYT $300M Quality Revenue Traded on NASDAQ Customer Funded (last 12 months through Q2 2024) since 2021 Capex Certified (expected for 2020-2026) • IATF16949 (Auto) • AS9100 (Aero/Aviation) Front-end Wafer • ISO 9001 Processing • ISO 4001 • ISO 13485 (Medical) 35%
Slide 5: SkyWater Minnesota and SkyWater Florida
SkyWater SkyWater Minnesota Florida BLOOMINGTON, MN KISSIMMEE, FL FOCUS FOCUS • Advanced Technology Development • Advanced Packaging • Chip Fabrication OPERATION OPERATION • 200mm and 300mm equipment • Most advanced lithography for 200mm production • Three advanced packaging platforms • 130nm and 90
Slide 6: We streamline the concept to production journey
We streamline the concept to production journey. TECHNOLOGY AS A SERVICE (TaaS) ADVANCED TECHNOLOGY WAFER SERVICES SERVICES Enable co-creation of differentiated Supply customers with ICs and solutions which are the unique microdevices for commercial or expression of the combined mission ready produc
Slide 7: Chip Technologies
Chip Technologies Mixed-Signal CMOS Rad-Hard MEMS Superconducting Photonics CONNECTED DEVICES, SENSORS ADVANCED COMPUTING & SENSOR INTEGRATION & ARTIFICIAL INTELLIGENCE Flexible Solutions Leading Strategic Microfluidics Foundry service Capabilities for for Commercial Rad-Hard Solutions Microbolomete
Slide 8: Advanced Packaging Technologies
Advanced Packaging Technologies • $120M in DoD program funding for 300mm wafer fan- out initiative • Support for development and manufacturing Fan-Out Wafer- Hybrid Wafer Level Packaging Si Interposer Bonding • Targeting High Performance AI PROCESSORS, HETEROGENOUS SYSTEMS, Compute and AI Processors
Slide 9: TaaS: Concept to Production Services
TaaS: Concept to Production Services Advanced Technology CONCEPT & FEASIBILITY Services (ATS) TECHNOLOGY DEMONSTRATION Wafer Services PROCESS DEVELOPMENT Technology DEVICE DESIGN as a Service: Efficient R&D Accelerated DEVICE QUALIFICATION Time-to-Market Volume Manufacturing VOLUME MANUFACTURI
Slide 10: Life of a SkyWater Wafer
Life of a SkyWater Wafer Cycles of learning through Advanced Technology Services (ATS) development enable customers to demonstrate and scale new ideas ATS CoL 3a Value is created through Cycles of Learning Learning and IP (CoL); end state product CoL 1 CoL 2 CoL 3b Prototype Generation, Process Wafe
Slide 11: Macro Trends Driving SkyWater's Business
Macro Trends Driving SkyWater’s Business AEROSPACE & DEFENSE MARKET COMMERCIAL MARKETS • Rising semiconductor content • More than Moore innovation • Onshore supply • Next-gen Biomed, Advanced Compute, Industrial 11 ©2024 All Rights Reserved. Proprietary & Confidential
Slide 12: A&D Growth Drivers
A&D Growth Drivers Thermal Imaging High Reliability CMOS Trusted/Secure Technology CATEGORY DRIVERS CATEGORY DRIVERS CATEGORY DRIVERS • Expanded use cases for infrared • Nuclear refresh • Assured domestic supply cameras • Commercialization of space • Technology innovation • Transition to higher reso
Slide 13: Targeting High-Potential Commercial Markets
Targeting High-Potential Commercial Markets NEXT-GENERATION MEDICAL ADVANCED COMPUTE INDUSTRIAL CATEGORY DRIVERS CATEGORY DRIVERS CATEGORY DRIVERS • Increasing societal healthcare • Accelerating AI adoption • Sensorization of everything expenditure rates • Rise of chiplet technology • Edge computing
Slide 14: Meeting Demand for Innovation and Trusted Supply
Meeting Demand for Innovation and Trusted Supply ENABLING DEVELOPMENT OF AN CUSTOMIZING EXISTING TECHNOLOGY PROVIDING TRUSTED SUPPLY ENTIRELY CUSTOM TECHNOLOGY END MARKET: END MARKET: END MARKET: AI-enabled sensors Quantum Computing Secure A&D WHY SkyWater WINS: WHY SkyWater WINS: WHY SkyWater WINS:
Slide 15: Production Ramp, Recent ATS & WS Programs
Production Ramp, Recent ATS WS Programs BioMEMS CMOS + X (MEMS) BioMEMS/Photonics END MARKET: END MARKET: END MARKET: Proteomics 3D sensing, solid-state LIDAR Proteomics WHY SkyWater WINS: WHY SkyWater WINS: WHY SkyWater WINS: • Ability to process high aspect ratio • Flexibility to combine CMOS wi
Slide 16: Significant Growth Opportunities
Significant Growth Opportunities Expand Capacity and Pursue M&A Create Opportunities Co-Develop Unique IP Next-Generation Expand Markets: Technologies Advanced Grow Advanced Packaging Technology & Other High Services Growth Diversify Customer Base 16 ©2024 All Rights Reserved. Proprietary & Confiden
Slide 17: Financials
skywater 2024 INVESTOR IP Rule fe IN| 7 ee FINANCIALS
Slide 18: Revenue Trend
Revenue Trend Q2 2024 Results Demonstrate Continued ATS Strength and Record Customer Co-Investment in USD $ millions * Q4 2022 and Q2 2023 ATS development revenue excludes impact of modified customer contracts † Q1 2022 wafer services revenue excludes impact of modified customer contracts 18 ©2024 A
Slide 19: Adjusted EBITDA and Non-GAAP Net Income (Loss)
Adjusted EBITDA and Non-GAAP Net Income (Loss) Profitable Results for Q2 a Result of Record Revenues for ATS + Wafer Services and Cost Controls 19 ©2024 All Rights Reserved. Proprietary & Confidential
Slide 20: Benefits of Customer-Funded CapEx Model
Benefits of Customer-Funded CapEx Model CO-INVESTMENT YIELDS MULTIPLE BENEFITS MULTI-YEAR PERIOD OF ELEVATED CO-INVESTMENT • Creates high-value and unique capabilities Customer-Funded Tooling ($Ms) Tool funding incorporated in contract awards ◦ State-of-the-art 200mm lithography through 2023 $ 76 ◦
Slide 21: Business Outlook for 2024
Business Outlook for 2024 REVENUE PROFILE EXPECTATIONS: • ATS development growth in the range of 10-20% over 2023 • Tools revenue expected to increase to approximately $80 million • Wafer Services revenue expected to decline 60% - 65% year-over-year SPECIFIC TO OUR OUTLOOK FOR Q3: • Forecasting anot
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We provide supplemental, non-GAAP financial information that our management regularly evaluates to provide additional insight to investors as supplemental information to our results reported using U.S. generally accepted accounting principles (GAAP). We provide non-GA
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 GAAP revenue $ 48,121 $ 47,407 $ 52,326 $ 65,087 $212,941 $ 66,094 $ 69,811 $ 71,624 $ 79,154 $286,682 $ 79,636 $ 93,329 GAAP cost of revenue $ 49,061 $ 45,327 $ 44,049 $ 48,536 $186,973 $ 49,626 $ 53,144 $ 57,477 $ 67,143 $227,
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 GAAP selling, general and administrative expense $ 11,690 $ 10,795 $ 10,778 $ 13,040 $ 46,303 $ 14,895 $ 17,820 $ 16,105 $ 15,092 $ 63,911 $ 11,169 $ 12,332 Equity-based compensation (1,866) (1,444) (1,128) (995) (5,433) (1,178)
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Equity-based compensation allocation in the consolidated statements of operations: Cost of revenue $ 1,125 $ 546 $ 456 $ 452 $ 2,578 $ 513 $ 291 $ 438 $ 313 $ 1,555 $ 455 $ 504 Research and development expense 225 128 115 126 59
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Net loss to shareholders $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) Interest expense 1,029 1,040 1,331 2,895 6,295 2,471 2,950 2,507 2,898 10,826
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 GAAP EPS Numerator: Net loss attributable to SkyWater Technology, Inc. $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) $ (1,897) Denominator: Weighted-average co
Slide 29: Thank You
skywater 2024 INVESTOR IP Rule fe IN| 7 ee THANK YOU
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