Pdf Solutions, Inc. · NASDAQ:PDFS
Pdf Solutions — Investor Day (October 2019)
27 slides from Pdf Solutions's investor day presentation, Oct 15, 2019
Slide 1: S1.5A – PDF Overview
2019 PDF Solutions Analyst Day S1.5A – PDF Overview October 15, 2019 Kimon Michaels, EVP, Director, & co-founder
Slide 2: Forward-looking statements
This presentation contains forward-looking statements regarding PDF Solutions’ future products and business prospects that involve risk and uncertainty. Actual results could differ materially from those discussed. You should review PDF Solutions’ SEC filings, including its annual report on Form 10-K
Slide 3: PDF Solutions
PDF Solutions o PDF is an analytics company that improves process efficiency and product reliability for the semiconductor supply chain o PDF uniquely provides: – An end-to-end big data analytics solution designed to meet the needs of the semiconductor value chain – Differentiated data obtained duri
Slide 4: Value Shifting to Mass Production
Value Shifting to Mass Production Foundries on Leading Edge Foundry Market By Node 25 20 15 10 5 0 www.techrepublic.com/article/moores-law-is-dead-three-predictions-about-the-computers-of-tomorrow node o Trends: – Moore’s Law is slowing down, and foundry business is consolidating due to process comp
Slide 5: OSAT Role in Supply Chain Increasing
OSAT Role in Supply Chain Increasing Move to chiplets … Increases risk of security and counterfeits o Increase in analytics need at OSATs due to growth in system-in-package (SiP) and chiplet usage o Growing need for – Process control – Traceablilty for security, quality and reliability monitoring /
Slide 6: Market Growth is with Fabless/System, Asia
Market Growth is with Fabless/System, Asia o Foundry growth and capex spend continues its shift to Semi equipment by market region Reliability: growing fabless/system issue Asia, particularly China o More responsibility for good die lies with fabless / system companies – Increase in failures due to
Slide 7: Value Shift to Analytics
Value Shift to Analytics KLA 2020 (1984) Software-aided metrology In fab analytics Cross-supply chain analytics siliconvalleyhistorical.org www.jawoollam.com/resources/ellipsometry-tutorial Time Complexity of scaling has driven increased need and value in analytics o Yesterday: – Hardware first dire
Slide 8: PDF Has Invested Ahead to Serve The Industry
PDF Has Invested Ahead to Serve The Industry o Since 2015 PDF has increased investment to be PDF R&D Investment well positioned for the Post- 35 Moore’s Law era 30 Since 2015 25 o Investment & acquisitions in analytics to span the Millions $ 20 15 4 acquisitions supply chain with advanced capability
Slide 9: Today PDF Bridges the Supply Chain Stack
Today PDF Bridges the Supply Chain Stack o PDF analytics and data implemented broadly across the supply chain o PDF continues to increase our established relationships with critical industry members o PDF is the only commercial analytics-focused provider with breadth and scale required by our custom
Slide 10: Investment Results in Strong Patent Position
Investment Results in Strong Patent Position o Our investments in analytics & differentiated data result in a strong and growing patent position 160 Issued Patents o Patents based on 28 years of know-how in semiconductor development and mass production o Key patents in areas of: – Design for inspect
Slide 11: Broadest Integration With Leading Manufacturing Tools
Broadest Integration With Leading Manufacturing Tools 20K 15K >24K process #1 commercial, 10K tools under PDF comprehensive process control solution for 5K across the manufacturing ecosystem yield and control 2005 2010 2015 2020 Process tools are continually added to this list based on customer dema
Slide 12: Leading Commercial Solution for Single Die Traceability
Leading Commercial Solution for Single Die Traceability Assembly and Packaging Equipment Wire Bonding Die Attach Die Feeder Leading commercial Singulation ~50 vendors Stud Bumper >150 equipment models solution for Laser Mark semiconductor die Strip Test traceability through the Inspection supply cha
Slide 13: Robust Support for Manufacturing Test Operations Equipment
Robust Support for Manufacturing Test Operations Equipment Support for all major tester, prober and handler vendors Test operations vendors/tools are continually added to this list based on customer demand PDF Solutions, All Rights Reserved 13
Slide 14: PDF Business Models
PDF Business Models Gainshare model value o PDF has always provided solutions combining advanced analytics and differentiated data o PDF has two business models to capture the value of our solutions o Gainshare model: when value is time to volume – In competitive foundry market, time to mass product
Slide 15: Data and Analytics Growing in Importance
Data and Analytics Growing in Importance High-tech sectors will see a greater percentage of cost reductions than average and represent nearly a fourth Companies moving to faster decision speed with of the total revenue reductions tracked. greater sophistication, especially in tech. sector. Only half
Slide 16: Shift In Predominant Business Model
Shift In Predominant Business Model Revenue not including Gainshare o As value shifts from foundry yield ramp to mass 2014 LTM thru Q2 2019 production … o … PDF’s business has shifted to the subscription business model Analytics IYR Analytics IYR PDF Solutions, All Rights Reserved 16
Slide 17: Migrating Usage of PDF IP and Business Model
Migrating Usage of PDF IP and Business Model o Example: Former IYR customer o Historical yield ramp – Stopped leading node development at 28nm customers are now – Present analytics customer analytics customers on subscription model o Bookings since 2014: >$15M o Applying more PDF IP over Exensio® Ex
Slide 18: Shift In Customer Base
Shift In Customer Base o As challenges shift to mass production and electrical Geographic Distribution Pct. Customers that are Foundries issues … o Fabless / design & system companies responsibilities and analytics requirements increase o PDF’s customer base has North America EMEA Foundry Other shif
Slide 19: PDF Growth Within Clients
PDF Growth Within Clients o Example fabless customer: o As value and need for analytics increases across the semiconductor supply 2015 Today chain … Products: • Exensio® Yield • Exensio® Yield • Advanced Analytics o PDF is positioned to • Exensio® Test increase products and • ALPS traceability solut
Slide 20: Analytics Growth From PDF Investment
Analytics Growth From PDF Investment Inline Wafer Sort Final Test / Burn-in In-System Data DFI™ CV® Core xScribe CV® Front End Optimization+Control Back End Optimization+Control In-Field Optimization+Control Software Exensio® Enterprise Analytics Semantic model and AI-Enabled analytics PDF will cont
Slide 21: PDF Acquisitions Have Been Key Component to Expansion
PDF Acquisitions Have Been Key Component to Expansion Yield Ramp Focus Supply Chain-wide Analytics AISS IDS Si Automation Fabbrix Triant Salland Syntricity Kinesys StreamMosaic • Layout Software • FDC • Si IP for • FDC • Test, • Hosted yield • Assembly & • AI & ML for semi analysis • Yield DFM packa
Slide 22: Return on M&A
Return on M&A o PDF’s ecosystem enables us to distribute new capabilities to our customers o M&A can enable us to grow our subscription business and provide a good return on our assets o Examples (total bookings vs. purchase price): – Salland ( 2015) return on investment: 4,100% – Kinesys (2017) ret
Slide 23: Machine Learning – Necessary, Not Sufficient
Machine Learning – Necessary, Not Sufficient MacPaint did not make everyone a successful artist … nor does ML make every model successful Train Predict Kimon Michaels o Machine learning (ML) aides in determining associative relationships in data sets o ML alone is insufficient to solve challenges in
Slide 24: Investment Focus
Investment Focus 3. Leverage cloud scalability Exensio® Core Platform o PDF continues to invest as Cloud-based big data, semantic model, user interface the leader in semiconductor analytics System Data 1. Differentiated data Learning Decision Engine sources – PDF electrical AIM Solutions characteriz
Slide 25: Disciplined Capital Allocation
Disciplined Capital Allocation o Capex investments include DFI, CVi, IP, DEX network, and Return Capital to Invest in Organic Invest in M&A to Shareholders through infrastructure Growth Enhance Growth Stock Buyback & Stock Appreciation o Cash balance has stayed relatively constant while we o Invest
Slide 26: PDF Solutions – Total Available Market
PDF Solutions – Total Available Market o Today, PDF provides the PDF Solutions TAM only commercial, supply- 1400 chain-wide analytics system 1200 1000 o Growth in analytics TAM Millions $ 800 being driven from 600 400 – Move to cloud and increased data volumes 200 0 – Additional opportunities 2016 T
Slide 27: Thank You
Thank You pdf-solutions pdfsolutionsinc pdfs.inc pdf_solutions pdf_cn