Slide 1: Camtek Presentation
Camtek Presentation • Rafi Amit, CEO • Moshe Eisenberg, CFO • Ramy Langer, COO October 2021
Slide 2: Disclaimer
Disclaimer Confidentiality This presentation is confidential and may not be reproduced or distributed to others at any time without our prior written consent. Safe Harbor This presentation contains projections or other forward-looking statements regarding future events or the future performance of t
Slide 3: Camtek at a Glance
CAMTEK AT A GLANCE Leading provider of high-end inspection and metrology systems to the semiconductor market CAMT Quick Facts Performance Highlights Tripled Semiconductor revenue from 2014 to 2020 $245M $215M Revenue Cash & deposits 51% Gross Margin in Q3/21 LTM As of 9/30/21(1) 31% operating margin
Slide 4: Q3 Highlights
Q3 Highlights Key applications: Increasing capacity to support growth • Advanced packaging ~50% • Expanding manufacturing facilities • Compound Semi ~20% • Increasing inventory level Revenue Op. income • Front-end ~15% • Managing supply chain 76+% (YoY) +186% (YoY) Continue our R&D investment • Rele
Slide 5: Outperforming the Industry
Outperforming the Industry Camtek Revenue Growth vs Growth in Semiconductor Inspection and metrology Market 2015-2020 equipment is Revenues Global semiconductor market key factor in adopting 140% 129% new technologies and products to achieve high 120% 97% yield and stability in 100% 81% production 8
Slide 6: Inspection & Metrology Solutions for Leading Applications
Inspection & Metrology Solutions for Leading Applications Electric & Autonomous 5G Networks Internet of Things Artificial Intelligence Big Data Vehicle More power devices More RF silicon, HBM, More sensors, more More Heterogeneous More computing power and more electronic more High-End MEMS, more WLP
Slide 7: Camtek to Benefit from Market Trends
Camtek to Benefit from Market Trends Strategic Shortage in industry components Leading countries Building new expanding fabs to support manufacturing growth capacity Copyright of Camtek Ltd© 2021. All rights reserved 7
Slide 8: Overview of Camtek's Market
Overview of Camtek’s Market Camtek’s Segments(1) Advanced Packaging Inspection and Metrology 56% CMOS Image Sensors Other players 20% Front-End Camtek’s Market (Mid End) Back-End General 2D 24% Front End EoL Wafer Level Packages Dicing Assembly (1) Based on solutions sold from Q1’2016 to YTD 2020 8
Slide 9: Intel CEO quote on system-on-package
“The world will move from system-on- chip to system-on-package, and Intel’s unquestioned leadership in packaging technologies becomes even more valuable.” March 23, 2021, Intel CEO Pat Gelsinger Copyright of Camtek Ltd© 2021. All rights reserved 9
Slide 10: More Advanced Packaging
More Advanced Packaging = # of packages 105 89 44 29 25 22 15 7 4 2 iPhone iPhone 3GS iPhone 4s iPhone 5 iPhone 5s iPhone 6 iPhone 6s iPhone 7 iPhone 11 Pro Max iPhone 12 Pro Max 2007 2009 2011 2012 2013 2014 2015 2016 2019 2020 Copyright of Camtek Ltd© 2021. All rights reserved 10
Slide 11: Inspection is Paramount to Advanced Packaging
Inspection is Paramount to Advanced Packaging Representative manufacturing Challenges Representative Advanced Packaging Architecture Extremely Complex Structures Bumps and pillars, through- silicon vias, under bump metallization layer Shrinking Form Factors Bump pitches becoming extremely fine High-
Slide 12: Advanced Packaging inspection and metrology of 100% of the dies
ADVANCED PACKAGING WHY AP: No economic advantage of silicon scaling THE MARKET: Smart phones (5G) THE MARKET 2: Big data analytics sales represent large volume requires high performance packaging driving WLP & HBM WHY CAMTEK: known good parts is key inspection and metrology of 100% of the dies in a
Slide 13: The transition to 5G has just begun
5G MULTIPLE GROWTH DRIVERS Growth in Advanced By 2023 more than 50% of the smartphones sold will be 5G Packaging Growth in CMOS Image Sensors The transition to 5G has just begun… Demand for new phones Source: Yole 2021 Growth in RF Copyright of Camtek Ltd© 2021. All rights reserved 13
Slide 14: CMOS Image Sensors
CMOS IMAGE SENSORS Worldwide CMOS Image Sensors Market Increased # of cameras in smartphones ($ in billions) $30 2010–2019 CAGRs Unit Shipments (billions) 14 Sales = 16.9% Units = 15.2% $25 12 2019–2024F CAGRs Smaller pixel size requiring $20 Sales = 7.2% Units = 11.5% 10 new equipment 8 $15 6 $10 4
Slide 15: Our Growth Strategy
Our Growth Strategy Pursue strategic synergistic 04 acquisitions 03 Introduce new products to address evolving customer needs and emerging applications Capitalize on Maintain and grow growth in Camtek 01 02 technology leadership target markets through best in class innovation (AP, CIS, RF) Copyright
Slide 16: Financial Overview
Financial Overview Copyright of Camtek Ltd© 2021. All rights reserved 18
Slide 17: Track Record of Growth and Profitability
Track Record of Growth and Profitability Revenue Operating Income and Margin(1) EPS(1) ($ in millions) ($ in millions) ($ per share) 11% 18% 19% 17% $156 $134 $123 $27 $0.62 $0.64 $25 $0.57 $22 $93 $0.27 $10 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 Rapidly growing with significant
Slide 18: Strong Quarterly Performance
Strong Quarterly Performance Revenue ($M) Gross Margin(1) 71 68 57 49 52.1% 50.7% 50.9% 40 48.8% 48.2% 5.2% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Record Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3’21 Operating Margin(1) EPS(1) 0.45 30.6% 27.2% 27.4% 0.38 0.33 19.0% 18.9% 0.21 0.18 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 Q
Slide 19: Progress to target model
Progress to target model Revenue ($M) Gross Margin Operating Margin 400 51-53% 27-29% 50-52% 24-26% 300 18.7% 48.6% 47.8% 134 11.1% 93 2017 2019 $300M $400M 2017 2019 $300M $400M 2017 2019 $300M $400M Continue to enjoy leverage in the model Copyright of Camtek Ltd© 2021. All rights reserved 21
Slide 20: Investment takeaways
Investment takeaways Strong presence in fastest-growing market segments with several growth drivers. Positioning Strong position in Asia where our market segments are growing faster. Technology Increasing market share due to technological superiority and leadership ~1,500 systems installed base worl
Slide 21: Thank You
Thank You info@camtek.com www.camtek.com
Slide 22: Appendix
Appendix Copyright of Camtek Ltd© 2021. All rights reserved 24
Slide 23: Reconciliation from GAAP to Non-GAAP
Reconciliation from GAAP to Non-GAAP $ in millions (except per share data) FY2017A FY2018A FY2019A FY2020A Revenue $93.5 $123.2 $134.0 $155.9 Net income (GAAP) $14.0 $18.7 $22.0 $21.8 % of revenue 14.9% 15.2% 16.4% 14.0% Share based compensation 0.4 1.7 2.9 4.2 Chroma transaction expenses (1) - - 0.
Slide 24: Reconciliation from GAAP to Non-GAAP (cont'd)
Reconciliation from GAAP to Non-GAAP (cont’d) RECONCILIATION FROM GAAP TO NON $ in millions (except per Q3 2020A Q4 2020A Q1 2021A Q2 2021A Q3 2021A share data) Revenue $ 40.1 $ 48.6 $ 57.4 $ 67.5 $ 70.7 Net income (GAAP) $ 6.0 $ 7.7 $ 13.4 $ 15.7 $ 18.5 % of revenue 15.0% 15.8% 23.3% 23.2% 26.2% Sh