Tower Semiconductor Ltd. · NASDAQ:TSEM
Tower Semiconductor — Investor Presentation (May 2016)
35 slides from Tower Semiconductor's investor presentation, May 18, 2016
Slide 1: Strategy/Performance: Stable Growth
May 2016 Strategy/ Performance: Stable Growth
Slide 2: Disclaimers: Forward Looking Statements
** TowerJazz Proprietary Information ** Disclaimers Forward Looking Statements 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 expectat
Slide 3: The Global Specialty Analog Foundry
** TowerJazz Proprietary Information ** The Global Specialty Analog Foundry Proprietary Process Technology Analog-Accurate Design Kits Design Services Global manufacturing capacity Specialty Analog IC Manufacturing Fabless IDM *
Slide 4: Specialty Foundry Advantages
** TowerJazz Proprietary Information ** Capacity Capex High Low Technology Capex High Low Product Lifetime Short Long Customer Engagement Typically multi-source Sole or limited source Technology Differentiation At leading edge only Across process technologies Segment Sizes Large Many niches through
Slide 5: Foundry Landscape
** TowerJazz Proprietary Information ** Foundry Landscape Source: IC Insights, EE Times, Company Reports Digital Deep Sub Micron Specialty Analog The fastest growing foundry in the world *
Slide 6: Turnaround Financials: 2005 to Present Run Rate
** TowerJazz Proprietary Information ** * 10 Years Turnaround Financials 2005 Present Run Rate Revenues $M 100 1,200 Net Debt $M 550 65 Operations 2005 Present Run Rate # of Fabs 2 7 Locations 1 3 continents/ 6 locations Capacity KWPY 290 2,350 Employees 900 4,500 Customers ~30 >300
Slide 7: TowerJazz & TPSCo Worldwide Manufacturing Facilities
** TowerJazz Proprietary Information ** TowerJazz & TPSCo Worldwide Manufacturing Facilities Over 2.3 million wafers per year! Midgal HaEmek, Israel 8″, 200mm CMOS, CIS, Power, Discrete, MEMS 0.18μm to 0.13μm Cu 8″, 200mm CMOS, CIS, MEMS, RF Analog 0.5 μm to 0.13μm 6″, 150mm CMOS, CIS, Power, Discre
Slide 8: Annual Revenues
** TowerJazz Proprietary Information ** * Annual Revenues
Slide 9: How we have built revenue stability
** TowerJazz Proprietary Information ** How we have built revenue stability $800M under contract or special supply agreement Strong commitment through sole sourcing *
Slide 10: First Quarter 2016 Financial Highlights
** TowerJazz Proprietary Information ** First Quarter 2016 Financial Highlights Strong and continuous revenue growth Record revenues of $278 million (23% YoY growth, 9% QoQ) Strong Q2 2016 mid range revenue guidance of $300 million (27% YoY growth; 8% QoQ) Substantial net profit and margins increase
Slide 11: Continuous Quarterly Revenue Growth
** TowerJazz Proprietary Information ** Continuous Quarterly Revenue Growth * mid-range guidance *
Slide 12: Key Financial Metrics
** TowerJazz Proprietary Information ** Key Financial Metrics *
Slide 13: Key Financial Metrics
** TowerJazz Proprietary Information ** Key Financial Metrics *
Slide 14: Financial Performance ($ in millions)
Financial Performance ($ in millions) ** TowerJazz Proprietary Information ** Financial Performance ($ in millions) * One time items included (i) for Q1’15, $85 million non-cash bonds F conversion effect and $10 million tax non-cash income; (ii) for Q1’14, $151 million TPSCo net acquisition gain and
Slide 15: Q1'16 Results – Balance Sheet
** TowerJazz Proprietary Information ** * Q1’16 Results – Balance Sheet ($ in thousands)
Slide 16: Q1'16 Results – P&L Report
** TowerJazz Proprietary Information ** Q1’16 Results – P&L Report ($ in thousands) *
Slide 17: Q1'16 Results – Adjusted Net Profit and EBITDA
** TowerJazz Proprietary Information ** Q1’16 Results – Adjusted Net Profit and EBITDA ($ in thousands) *
Slide 18: Q1'16 Results – Cash Flow Report
** TowerJazz Proprietary Information ** Q1’16 Results – Cash Flow (Sources & Uses) Report ($ in thousands) *
Slide 19: Debt Summary
** TowerJazz Proprietary Information ** Debt Summary As of March 31, 2016 (as of December 31, 2014) Bonds Debt Summary Banks Debt Summary Total Debt as of March 31, 2016 is $310M vs. $505M as of December 31, 2014: Net debt is $65M Reflecting < 0.3X Net Debt to EBITDA ratio *
Slide 20: 2016 Focuses
** TowerJazz Proprietary Information ** 2016 Focuses Continued revenue growth Special focus on SA new fab and TPSCo 3rd party business Maximized free cash flow Increasing net profit Margins growth Cap-Ex investments for growth to meet excess customer demand: Customer funded programs for capacity res
Slide 21: TowerJazz Business Units – Specialty Technology Leader
** TowerJazz Proprietary Information ** TowerJazz Business Units – Specialty Technology Leader RF & HPA Power CIS MS CMOS TOPS Aerospace & Defense *
Slide 22: RF HPA Markets and Solutions
** TowerJazz Proprietary Information ** * RF HPA Markets and Solutions High Performance SiGe RF SOI and SiGe LNA/PA Complementary BiCMOS Wireless Front-Ends Wireline Front-Ends High Performance Analog High Growth driven by Smartphones and IoT High Growth driven by video, data internet traffic Steady
Slide 23: Power Markets and Solutions
** TowerJazz Proprietary Information ** * Power Markets and Solutions 0.18um BCD + NVM and digital 0.18um BCD Technology High Power Modules Display, Audio, Touch, Power Management Automotive & Communication Industrial & Infrastructure 700V Power Technology LED Lighting High Volume driven by consumer
Slide 24: Specialty CIS Key Markets and Solutions
Specialty CIS Key Markets and Solutions ** TowerJazz Proprietary Information ** Specialty CIS Key Markets and Solutions Professional Photography Medical X-Ray Industrial & High Speed Automotive & Security Highest requirements for image quality Large sensors, very high resolution, demanding frame rat
Slide 25: Market Megatrends driven by Internet of Things
** TowerJazz Proprietary Information ** Market MEGATRENDS driven by Internet of Things Key megatrends driving rapid growth in Analog/Mixed-Signal applications Analog/Mixed-Signal Applications High-Performance Analog Power Management RF Sensors (Imaging, MEMS) Energy Efficiency Seamless Connectivity
Slide 26: Leadership and learning: aligning roadmaps with customers
** TowerJazz Proprietary Information ** "Leadership and learning are indispensable to each other” - John F. Kennedy To maintain number one analog foundry – we learn best from our customers. By edict, all business units roadmaps are to be aligned with 1st tier customer. *
Slide 27: Analog Market Opportunity
** TowerJazz Proprietary Information ** Analog Market Opportunity * * LOGIC/MEMORY Apps Processor + DRAM NAND Flash NOR Flash Quad Baseband 4 Power Audio Display PA Switch Controller ESD Discretes Gyroscopes Compass … Many ANALOG FEM
Slide 28: Wireless FEM content example
** TowerJazz Proprietary Information ** Wireless FEM content example TowerJazz FEM Solutions: RF SOI (Switches), SiGe (LNA/PA), RF CMOS (control) FEM content from ifixit teardown: Skyworks 77802-23 Low Band LTE PAD Skyworks 77803-20 Mid Band LTE PAD Skyworks 77356-8 Mid Band PAD Avago A8020 High Ban
Slide 29: Press Release: Front-End Module on a Chip RF Platform
Press Release | May 17 th , 2016 ** TowerJazz Proprietary Information ** Press Release | May 17th, 2016 TowerJazz Begins Mass Production of a New Integrated SiGe Based “Front-End Module on a Chip” RF Platform Tailored to Meet the Challenges of the Internet of Things TowerJazz has partnered with indu
Slide 30: Sell Price Increase From New Products/Technologies
** TowerJazz Proprietary Information ** Sell Price Increase From New Products/ Gen’s/ Technologies # of years Sell price Specific technology generation / product sell price Blended / average Sell Price Gen1 Gen2 Gen3 Gen4 *
Slide 31: Low cost, low risk, WIN WIN capacity acquisition
** TowerJazz Proprietary Information ** Low cost, low risk, WIN WIN capacity acquisition $$ Utilization Revenue Fixed + Variable Cost 50-60% Fixed Cost Cash Breakeven Point *
Slide 32: Low cost, low risk, WIN WIN capacity acquisition
** TowerJazz Proprietary Information ** Low cost, low risk, WIN WIN capacity acquisition $$ Utilization Revenue Fixed + Variable Cost 50-60% Fixed Cost *
Slide 33: Company Highlights
** TowerJazz Proprietary Information ** Company Highlights Manufacture analog IC in growing markets such as consumer, automotive, medical, industrial, and aerospace & defense Offer advanced specialty process technologies including RF/HPA, PM, CIS, MS/CMOS, and MEMS capabilities Strong performance &
Slide 34: Summary
** TowerJazz Proprietary Information ** * Summary Well Positioned in Growth Markets RF SOI and SiGe for wireless smartphone, IoT, and data networks CMOS Image Sensor and 3D Gesturing Power management and conversion Strong available capacity in TPSCo and San Antonio and investing in additional capaci
Slide 35: TowerJazz
TOWER/AL www.towerjazz.com
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