Slide 1: Safe Harbor
Safe Harbor To the extent that this presentation discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These item
Slide 2: CEO Introduction
CEO Introduction John Peeler
Slide 3: Q2 2017 Highlights
Represents Veeco excluding Ultratech, Inc., which Veeco acquired on May 26, 2017 15¢ Non-GAAP EPS $115M Revenue Q2 2017 Highlights Bookings up sequentially; backlog building Revenue and Adjusted EBITDA* in line with guidance MOCVD & PSP System demand drove results in Lighting, Display & Power Comple
Slide 4: Ultratech At a Glance
Ultratech At a Glance Blue-chip customer base Lithography for Advanced Packaging Comprehensive portfolio, addressing critical A/P process steps Together with Veeco’s Ion Beam Deposition and Etch, addresses emerging opportunities with greater scale LSA and 3D Inspection for Semiconductor Manufacturin
Slide 5: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 6: Q2 2017 Revenue Breakdown by End Market and Geography
Q2 2017 Revenue Breakdown by End Market and Geography Lighting, Display & Power Electronics driven by continued roll-out of MOCVD and PSP systems into China Q2 2017 Revenue by End Market Q2 2017 Revenue by Geography Note: Amounts may not calculate precisely due to rounding 19% Advanced Packaging, ME
Slide 7: P&L Highlights ($M)
P&L Highlights ($M) Q1 17 Q2 17 Q1 17 Q2 17 Revenue $94.4 $115.1 $94.4 $115.1 Gross Profit 34.2 38.7 34.9 46.7 % 36.2% 33.6% 37.0% 40.6% R&D 15.0 18.6 14.6 17.9 SG&A & Other 20.4 22.7 15.9 19.2 Operating Income (5.8) (27.0) 4.4 9.6 Net Income 1.1 (18.4) 3.6 6.4 EPS $0.03 ($0.43) $0.09 $0.15 Adjusted
Slide 8: Financial Highlights
($M) Q4 16 Q1 17 Q2 17 Cash & Short-term Investments 344 682 303 Accounts Receivable 58 51 108 Inventories 77 65 120 Accounts Payable 23 31 46 Long-term Debt 0.8 268 270 Cash Flow from Operations 0.4 6.3 (15.9) Financial Highlights DSO 56 49 85 DOI 134 107 109 DPO 36 47 54 Note: Amounts may not calc
Slide 9: Q3 2017 Guidance
Q3 2017 Guidance Revenue $125M–$145M $125M–$145M Gross Margins 37%–39% 39%–41% Net Income (Loss) ($25M)–($16M) ($4M)–$5M Earnings Per Share ($0.53)–($0.34) ($0.09)–$0.09 Non-GAAP Operating Income $0M–$9M Non-GAAP GAAP Note: A reconciliation of GAAP to Non-GAAP financial measures is contained in the
Slide 10: Q3 2017 Guidance
Q3 2017 Guidance Revenue $125M-$145M — $125M-$145M Gross Margins 37%-39% 39%—-41% Net Income (Loss) ($25M)-{$16M) _—($4M)-$5M Earnings Per Share ($0.53)-($0.34) — ($0.09)-$0.09 Non-GAAP Operating Income SOM-$9M Tite: Areconciiation of GAAP to Non-GAAP fnanciameasures is contained the BackUp & Recone
Slide 11: Veeco MOCVD – Sustaining Our Leading Market Position
Veeco MOCVD – Sustaining Our Leading Market Position Demand driven by: Continued migration to larger sized TVs; - requiring more LEDs to backlight Growing adoption of Fine-pitch Display; - stadiums, lobbies, retail Market strength drawing competition from China Chinese competitors trying to close ga
Slide 12: Veeco Advanced Packaging, MEMS and RF
Veeco Advanced Packaging, MEMS and RF Booked multiple orders for Wafer Level Packaging (WLP), Cu Pillar, optical sensor and LED applications Achieved significant milestone with major memory manufacturer Advanced Packaging Lithography capacity expansion being moderated due to slower production of log
Slide 13: Ultratech Update – Integration on Track
Ultratech Update – Integration on Track Integration proceeding well Key milestones achievable over next 18-24 months ERP conversion Field integration Material cost reductions Focused R&D projects Synergies greater than originally anticipated Acquisition Closed May 26, 2017 Platform to Deliver Enhanc
Slide 14: Summary
Summary 2017 will be a transformative year for Veeco Backlog building – expect stronger 2H Ultratech integration on track Veeco executing on strategy to increase scale, diversify revenue and improve profitability
Slide 15: Summary
Summary 15 | Investor Presentation Veeco
Slide 16: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables
Slide 17: Note On Reconciliation Tables
Note On Reconciliation Tables These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: sh
Slide 18: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q1 17 Q2 17 GAAP Net Income (Loss) $1.1 $(18.4) Add: Share-Based Comp 4.2 9.6 Add: Amortization 2.9 6.4 Add: Restructuring 1.3 2.4 Add: Acquisition Related 1.4 9.9 Add: Release of inventory fair value step-up for purchase accounti
Slide 19: Q2 2017 GAAP to Non-GAAP Reconciliation
Q2 2017 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $115.1 $115.1 Gross Profit 38.7 0.5 7.5 46.7 Gross Margin 33.6% 40.6% Research and Development 18.6 (0.7) 17.9 Selling, General, and Adm
Slide 20: Q3 2017 Guidance GAAP to Non-GAAP Reconciliation
Q3 2017 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $125–$145 $125–$145 Gross Profit 46–56 1 — 3 50–60 Gross Margin 37%–39% 39%–41% Net Income (Loss) ($25)–($16) 5 13 3 ($4)–$5 In
Slide 21: Historical Revenue by Market (New Category vs. Old Category)
Historical Revenue by Market (New Category vs. Old Category) New Market Category Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Lighting, Display & Power Electronics 22.9 24.8 49.4 39.1 136.2 54.2 56.2 Advanced Packaging, MEMS & RF 23.3 17.0 12.1 15.9 68.3 11.6 21.4 Scientific & Industrial (includes Data
Slide 22: Historical Revenue by Market (New Category vs. Old Category)
sm sm Historical Revenue by Market (New Category vs. Old Category) NewMarketCategory Q116 @216 Q316 @416 FY16 Q117 Q217 Lighting, Display & Power eo 229 248 49.4 301) 1362 542 56.2 _— 233 170 124 159 683 116 214 Scientific & Industrial ce este 308 318 21.0 360, 1196 272 270 Froni-End Semiconduct (br