Slide 1: Corporate Overview Following Q1 2014 Results
Corporate Overview Following Q1 2014 Results May 15, 2014
Slide 2: Disclaimers
2 Disclaimers Forward Looking Statement s 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
Slide 3: Financial Highlights
Financial Highlights
Slide 4: Q1 2014 Financial Highlights
Q1 2014 Financial Highlights § Revenues of $132.7 § EBITDA of $27.5 million § GAAP net profit of $39 million
Slide 5: Q1 2014 Financial Highlights
Q1 2014 Financial Highlights § Revenues of $132.7 million as compared with $112.6 million in the first quarter of 2013, an increase of 18% – Organic (non Micron) growth of 27% § EBITDA of $27.5 million or 21% of revenues, an increase of 84% as compared with $15 million or 13% of revenues in Q1’13 §
Slide 6: Customer and Market vectors
Q1 & 2014 Customer and Market vectors
Slide 7: Only customers exceeded 4%: biggest customer 12%
Only 2 customers exceeded 4%: biggest customer 12% * Data excludes Micron contract, expiring mid 2014 and any Panasonic revenues TowerJazz revenue growth from top 10 customers
Slide 8: Market Growth
Market Growth § Pure play foundry Y/Y market weighted average growth in Q1’14: ~10% § TowerJazz Q1’14 Y/Y growth: 18%, organic growth 27%
Slide 9: Customer mask sets entering our foundries
Customer mask sets entering our foundries
Slide 10: A Revolutionary Foundry Concept
A Revolutionary Foundry Concept
Slide 11: Enabling at least $1B of annual revenues
11 Enabling at least $1B of annual revenues TowerJazz Announces Completion and Kick-off of its Joint Venture with Panasonic Corporation Joint Venture to include three Semiconductor Factories in Japan, Manufacturing of Panasonic and Additional Products Will Enable Greater than $900 Million Revenue An
Slide 12: Highlights of the Deal
12 Highlights of the Deal • TowerJazz to hold 51% of the TowerJazz Panasonic Semiconductor Company (“TPSC”) • Provides TowerJazz with incremental annual revenues of approximately $400 million, initially can vary quarterly from approximately $90-105 million • Substantial capacity for additional found
Slide 13: Corporate Ownership Structure
13 Corporate Ownership Structure Ceasing by the end of 2014
Slide 14: Ceasing Nishiwaki Operations
14 Ceasing Nishiwaki Operations § TPSC provides more available CMOS capacity than the Nishiwaki factory § TPSC comes with strong and long term supply agreement with Panasonic § Ceasing Nishiwaki operations will reduce ~$130 million of annualized fixed costs § All continuing business deals are being
Slide 15: Corporate Ownership Structure
15 Corporate Ownership Structure
Slide 16: TPSC management team
CEO G. Eristoff VP Sales T. Notsu Y. Kiri-Dembo CFO coo H. Matsuda Y. Nagano
Slide 17: Mr. Yoshihisa Nagano, COO, TPSC
Mr. Yoshihisa Nagano, COO, TPSC
Slide 18: TowerJazz Panasonic Locations
18 TowerJazz Panasonic Locations * Location chosen due to very clean water and geologic stability
Slide 19: TowerJazz Panasonic Plants Overview
Toyama Prefecture Niigata Prefecture Sea of Japan 19 TowerJazz Panasonic Plants Overview Toyama Prefecture Niigata Prefecture Arai Uozu Sea of Japan Tonami 22K WSPM* 45nm-65nm - 45-65LP CMOS - 65 RFCMOS - MOS Image Sensor * 200mm equivalent 15K WSPM 110nm-130nm - 110nm Analog IC/SLSI - MOS Image Sen
Slide 20: TowerJazz Panasonic Strong Offering Serving Many Device Applications
Various technologies including power devices with 1.2V-600V drive voltage. TowerJazz Panasonic Strong Offering Serving Many Device Applications
Slide 21: Very strong offerings tailored to meet variety of end system integration applications
Very strong offerings tailored to meet variety of end system integration applications Image Sensor Power Device/PMIC MCU､LSI､DSP System LSI Analog IC Optical Devices Mobile Comm Automotive Infocomm, PC Peripherals Security Healthcare AV Multiple Innovative Technologies and Process Solutions to suppo
Slide 22: TowerJazz Panasonic Combined Portfolio
22 TowerJazz Panasonic Combined Portfolio
Slide 23: Why did we want this?
Why did we want this? § Multiple world leading technology platforms § 300mm best in the world CIS Smart-FSI § High Capacity § Best of the best in quality § Analog system leader § Cost effective low mask count flows § Large CIS customer base, desiring Panasonic QE and low DC for their designs § Diver
Slide 24: Financial Statements
Financial Statements
Slide 25: TowerJazz - Balance Sheet
25 March 31, 2014 December 31, 2013 CURRENT ASSETS Cash, deposits & designated deposits 183 123 Trade accounts receivable 83 80 Other receivables 13 11 Inventories 94 65 Other current assets 60 11 Total Current Assets 433 290 Long-term investments 14 14 Property and equipment, net 484 350 Intangible
Slide 26: History and Horizon
History and Horizon
Slide 27: 2005 2013 Current Run Rate Capacity
1200 1000 800 = 600 400 200 , 2005 2013 Current Run Existing Incremental Rate Capacity models Capability
Slide 28: Predominantly a digital nd / rd source
Predominantly a digital 2 nd / 3 rd source
Slide 29: 2010-2013 established analog leadership
2010-2013 established analog leadership; growing revenues above $500M; acquire new 1 st - tier business (e.g. Samsung, Skyworks, Avago) Incremental new business models outside of std capacity (infra red commercial cameras in specialty annex, high margin service contracts (India)
Slide 30: Joined with Panasonic, an undisputed analog systems leader
Joined with Panasonic, an undisputed analog systems leader: Expanded offering Best in the world high end camera performance Substantial added capacity to fulfill over demand of organic growth, including state-of-the-art 300mm facility
Slide 31: Strong organic growth and capability to fulfill TowerJazz factories
Strong organic growth and capability to fulfill TowerJazz factories Substantial customer engagements in TPSC, towards capacity fulfillment within the coming years
Slide 32: India consortium; additional 300mm capacity; infra red potential
India consortium; Possibility of additional 300mm capacity at low cost; Infra red commercial potential; New knocking opportunities
Slide 33: TowerJazz www.towerjazz.com
TOW=R/Al www.towerjazz.com