Slide 1: #1 Specialty Foundry and Growing
#1 Specialty Foundry and Growing TASE Conference | September 2012 Russell Ellwanger, CEO
Slide 2: Safe Harbor and Disclaimers
Safe Harbor and Disclaimers This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of ris
Slide 3: Past, Present, Future
Past, Present, Future
Slide 4: PAST
PAST
Slide 5: Past: $94M annual revenue, debt and negative cash flow
5 ∞ • $94M annual revenue • $560M debt due from 2006 • Less than $20M cash • Negative EBITDA • Negative cash flow from operations • 1 site • 1 customer in Fab2 which was unrelated party • Negative CF at full utilization (low capacity)
Slide 6: Past
Past • Low Value Add • 2 nd/ 3 rd Source • Q/Q price negotiations • No Specialty (mainly digital)
Slide 7: Past to Present
Past to Present • 2008 - major shift from digital 2 nd source to analog value add provider – fueled by the Jazz merger
Slide 8: Present
Present • 2010 - breaking $500 million of revenues, became #1 specialty, giving us different brand in the eyes of premier 1 st tier customers (such as Samsung).
Slide 9: Foundry Revenue Landscape: Consistent superior performance
Note 1. Source: IC Insights, Company reports, SemiMD January 2012 Foundry Revenue Landscape: Consistent superior performance
Slide 10: Samsung Selects TowerJazz's "unrivaled" 700V Power Technology
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. Russel
Slide 11: Over $640M revenue run-rate
11 ∞ • Over $640M revenue run-rate • Positive $170M EBITDA • 3 sites with 4 manufacturing facilities • 120 customers in volume production, all are unrelated parties • 50 customers in Fab2
Slide 12: Present
Present • 2010 - breaking $500 million of revenues, gave us different brand in the eyes of premier 1 st tier customers (such as Samsung). • We now supply to the top market leaders in every one of our chosen business segments, e.g. FEM and X-ray
Slide 13: Multiple Drivers of Strong Long Term TAM Growth
$7.5 4 Gu (Tablets seo | & _ ° RA WLAN vy a 45 VA xe s were = Core Mobile F $3.0 Market $1.5 | $0.0 r 2010 2014 Multiple Drivers of Strong Long Term TAM Growth
Slide 14: Front-End-Module Business Growth
PA GaAs or SiGe PA Control RF CMOS Switch GaAs or SOS, or SOI CMOS Transceiver: RF CMOS Antenna Front-End-Module Business Growth Front End Module 3G iPhone FEM: The heart of every mobile communication platform
Slide 15: Front-End-Module Business Growth
PA GaAs or SiGe PA Control RF CMOS Switch GaAs or SOS, or SOI CMOS Transceiver: RF CMOS Antenna Front-End-Module Business Growth Front End Module 3G iPhone Skyworks (#1 at ~50% market share) o TowerJazz chosen as “Foundry Supplier of the Year” 2008, 2009, 2010, and 2011 Innovation Award TowerJazz Re
Slide 16: Potential FEM Market Growth for TJ
Potential FEM Market Growth for TJ Increase in served market with establish customers
Slide 17: Cameras application range
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 Size
Slide 18: Cameras application range
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 Size
Slide 19: Dental X-Ray CMOS Sensors
Dental X-Ray CMOS Sensors • Market Leader for dental x-ray CMOS sensors – Sole supplier to 4 of top 5 providers protected with strong IP – Non seasonal, high margins, growth market • Intra-Oral / Panoramic / Coned Beam CT (CBCT) / Cephallography • Global Customer base: US, Europe and Asia Panoramic
Slide 20: Present
Present of premier 1 st tier customers (such as Samsung). • Nishiwaki factory, purchased with a sound business model, provides capacity for large customer growth.
Slide 21: Japan Acquisition
Japan Acquisition • Micron 3 years take-or-pay • Already gained business from multiple Japanese IDMs • 47 Active Customers from Korea
Slide 22: Future
Future • Continue market growth within FEM, power management, high end image sensor, IDM transfer and JDPs and within specific MEMS opportunities.
Slide 23: H1'12 - # of masks entering the factories
H1’12 - # of masks entering the factories
Slide 24: MEMS
MEMS
Slide 25: MEMS driving innovation across diverse product categories
MEMS are a major driving innovation across a broad new diverse set of product categories in contrast to rapid commoditization occurring in Digital/CMOS world P P P P P
Slide 26: MEMS
MEMS • Entered multiple engagements with organic growth potential of $100M per annum. • One recently qualified customer now entering dual site special engagement model.
Slide 27: Future
Future • Continue market growth within FEM, power management, high end image sensor, IDM transfer and JDPs and within specific MEMS opportunities. • Entrance into 300mm with the presented India deal or other such initiatives. Awaiting government approval. • Continued focus to achieve the $1B annual
Slide 28: TowerJazz Chosen by Vishay Intertechnology for High Volume Manufacturing
TowerJazz Was Chosen by Vishay Intertechnology for High Volume Manufacturing Engagement Through 2018 The Agreement Includes: • Two Product Families to be Manufactured at TowerJazz’s Japanese Factory; • Additional New Product Families to be Manufactured at both TowerJazz Israeli Factories; • Super Ju
Slide 29: Summary
Summary • We have been the #1 growth foundry over the past 5 years AND became the #1 specialty foundry by revenue in 2010 and expanded the lead in 2011. • We target to continue to lead the specialty market over the next years by 1. Growing specialized capabilities in sync with our customers immediat
Slide 30: Summary
Summary • A major shareholder, Hevra LeIsrael, has voiced continued belief and support in the company and activities for long term strategic holding. • Back to trade in Nasdaq main list with large US funds being interested in the company and increasing position – Set for a NDR in NY and Boston by th
Slide 31: Thank You
Thank You