Slide 1: Investor Presentation
Investor Presentation November 2, 2022 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and discussion contain forward-looking statements, including our expectations for the future market for our products, revenues, profits, and other results that are forward-looking statements under the SEC’s safe harbor provision. These forward-looking statemen
Slide 3: Axcelis at a Glance
Axcelis at a Glance ◼ Global leader in technology development and manufacturing of ion implant systems and services for the semiconductor industry for over 40 years • Serving the greater than $2.25B ion implant systems market • Based in Beverly, MA with headcount greater than 1300 worldwide • Global
Slide 4: Recent Axcelis Technologies Recognition
Recent Axcelis Technologies Recognition Axcelis Named to Forbes’ List of America’s Best Mid-Size Companies - Ranking #38 Out of 100 Companies 4
Slide 5: Q3/FY2022 Highlights & Summary
Q3/FY2022 Highlights & Summary ◼ Axcelis expects to achieve annual revenue greater than $885M in 2022 and realize additional revenue growth in 2023 ◼ Strong third quarter financial performance • Revenue of $229.2M and EPS of $1.21 • System revenue of $171.1M and CS&I revenue of $58.1M • Gross margin
Slide 6: Q3/FY 2022 Financial Results and Outlook (GAAP)
Q3/FY 2022 Financial Results and Outlook (GAAP) Q3 2022 Q4 2022 Outlook FY 2022 Outlook Revenue $229.2M $232M - $240M >$885M Gross Margin 45.1% 40% - 41% >43% Combined R&D and SG&A Expenses 21.9% ~22% ~21% Operating Profit $53.2M $41M - $45M ~22% Net Income $40.3M EPS $1.21 $1.00 - $1.10 • Expect to
Slide 7: Target Business Model (GAAP)
Target Business Model (GAAP) Axcelis expects to achieve ~$1B in revenue over the next couple of years $442.6M $343.0M $474.6M $662.4M >$885M ~$1B Revenue 2018(A) 2019(A) 2020(A) 2021(A) 2022(F) Model* Gross Margin 40.6% 42.0% 41.8% 43.2% >43% 45-46% Total OPEX 27.0% 35.0% 29.6% 24% ~21% 20-21% Opera
Slide 8: Market Environment Supporting Axcelis Growth Remains Strong
Market Environment Supporting Axcelis Growth Remains Strong Fundamental growth drivers for long-term cycle • Electrification of the automotive industry with ADAS (Driver Assist) – “Computer on Wheels” • Power devices, image sensors and general mature devices • Communications - 5G, phones, Internet o
Slide 9: Ion Implant TAM Has More Than Doubled Over the Last Years
Ion Implant TAM has More Than Doubled Over the Last 3 Years Ion Implant Annual TAM Estimates ($B) ◼ Step function in TAM driven by 3 • Increased overall wafer starts across all segments • Rapid growth of implant capital intensive mature ~$2.25B nodes and specialty devices (implant $/wafer start) Ion
Slide 10: Ion Implant TAM Segment Breakdown
Ion Implant TAM Segment Breakdown ◼ The mature process technology segment accounts for greater than 60% of the ion implant TAM • Mature process technology growing Mature Process Technology – 62.5% Memory – 22.5% Advanced Logic - 15% based on increases in wafer starts, high implant capital intensity,
Slide 11: Axcelis Strong Systems Growth Driven by Targeted Market Segments
Axcelis Strong Systems Growth Driven by Targeted Market Segments ◼ The mature process technology segment saw significant growth in 2021, accounting Mature Process Technology – 82% Memory – 17% Advanced Logic - 1% for 82% of Axcelis system revenues ◼ The mature process technology segment is expected
Slide 12: SiC Device Market Growing at Greater than 30% CAGR
SiC Device Market Growing at Greater than 30% CAGR Driven by the Electrification of the Automotive Industry SiC Device Market Growth Dominated by Automotive SiC Wafer Starts Projected to Double Every 3 Years 7,000 2,500 150mm Equivalent SiC Wafer Volume (K/yr) 6,000 SiC Market TAM ($1,000) 2,000 5,0
Slide 13: Axcelis Power Device Revenue Growth – Fueled by Automotive
Axcelis Power Device Revenue Growth* – Fueled by Automotive ◼ SiC power devices will grow from approximately 30% of the implant power device TAM to 50% over the next few years driven by automotive ◼ Si IGBT devices designed in by several automakers for first generation EV, but many will switch to Si
Slide 14: Purion Continues to Drive Axcelis Growth
Purion Continues to Drive Axcelis Growth ▪ Unprecedented opportunity in power devices ▪ Growing implant TAM ▪ Differentiated product portfolio ▪ Continuous innovation ▪ Strong balance sheet ▪ Strong manufacturing capability ▪ Strong customer relationships ▪ Quality focused ▪ Great employees 14
Slide 15: Purion – The Core of Our Growth Strategy
Purion – The Core of Our Growth Strategy Targeted Market Segments Purion products targeted at high value applications and market segments 15
Slide 16: Purion Power Series – Enabling Advanced Power Device Technology
Purion Power Series – Enabling Advanced Power Device Technology 16
Slide 17: Purion Image Sensor Series – Enabling Advanced CIS Device Technology
Purion Image Sensor Series – Enabling Advanced CIS Device Technology 17
Slide 18: Multiple Initiatives Will Accelerate Purion Growth Across All Markets
Multiple Initiatives Will Accelerate Purion Growth Across All Markets ◼ Continued focus on the growing power device market opportunity • New customers and expanding footprint with existing customers to support ramp to high volume manufacturing ◼ Geographic expansion • China emphasis on mature proces
Slide 19: Accelerated Purion Systems Evaluation Activity
Accelerated Purion Systems Evaluation Activity ◼ Five Purion evaluation systems currently in the field with additional systems expected to ship in 2023 • Located at strategic customer sites in key market segments ◼ First Purion XEmax evaluation closed and in production for advanced image sensors ◼ C
Slide 20: Key Purion Placements in Target Segments
Key Purion Placements in Target Segments Supporting Long Term Revenue Growth and Margin Expansion AXCELIS ANNOUNCES MULTIPLE PURION M SHIPMENTS AXCELIS ANNOUNCES MULTIPLE SHIPMENTS OF INCLUDING FOLLOW-ON ORDERS AND THREE NEW AXCELIS ANNOUNCES MANUFACTURING RAMP AT THE PURION H200 Si and SiC POWER SE
Slide 21: Rapid Manufacturing and Supply Chain Growth
Rapid Manufacturing and Supply Chain Growth Enabled by Smart Capacity Planning and Execution ◼ Capacity Expansion • Added additional clean manufacturing capacity at our Beverly factory • Axcelis Asia Operations Center in South Korea ramping production • Numerous capital projects and kaizen events ha
Slide 22: Methodical Program-Driven Gross Margin Improvement
Methodical Program-Driven Gross Margin Improvement ~43% to 46% 2023 and beyond ~41% to 43% Expanding low cost sourcing to capture additional material savings 2019-2022 Shipping a higher mix of Purion Product extensions ~34% to 40% Value engineering enables supply Driving margin accretive revenue cha
Slide 23: Margin Improvement of Purion Products Improves Overall Gross Margin
Margin Improvement of Purion Products Improves Overall Gross Margin and Reduces Mix-Induced Variability Purion System Margin 2021(A) 2022(F) ~$1B High Current Medium Current High Energy 43.2% >43% 45% to 46% Corporate Gross Margin 23
Slide 24: Near Term Supply Chain Considerations
Near Term Supply Chain Considerations ◼ Focus on “Customer Satisfaction” • Continuing to closely work with supply chain partners to ensure on time delivery. Added additional resources and qualified new suppliers in bottleneck areas • Working with freight providers to add extra shipping lanes. Will t
Slide 25: Customer Satisfaction & Innovation (CS&I) Drives Margin Growth
Customer Satisfaction & Innovation (CS&I) Drives Margin Growth and Customer Satisfaction ◼ Significant contributor to Axcelis financials • Expected to contribute revenues of ~$250M to the $1B financial models • Accretive to Axcelis corporate gross margins ◼ CS&I business revenues comprised of • Cont
Slide 26: Investing in Products, Infrastructure and Employees to Drive Growth
Investing in Products, Infrastructure and Employees to Drive Growth ◼ Axcelis has heavily focused R&D spending on Purion product development. Many new products and extensions have been released and shipped to numerous first time and existing customers ◼ We will continue to invest R&D dollars on new
Slide 27: Axcelis Capital Strategy
Axcelis Capital Strategy ◼ The company will continue to maintain a strong and healthy balance sheet while investing in initiatives that are expected to drive strong revenue growth and gross margin expansion ◼ Board approved a new $100M dollar share repurchase program starting March 2022 ◼ Repurchase
Slide 28: Axcelis Technologies, Inc Nasdaq - ACLS
Axcelis Technologies, Inc Nasdaq - ACLS 28