Camtek Ltd. · NASDAQ:CAMT
Camtek — Investor Presentation (July 2022)
26 slides from Camtek's investor presentation, July 2022
Slide 1: Camtek Investor Presentation
Camtek Investor Presentation • Rafi Amit, CEO • Moshe Eisenberg, CFO • Ramy Langer, COO July 2022
Slide 2: Disclaimer
Disclaimer Confidentiality This presentation is confidential and may not be reproduced or distributed to others at any time without our While we believe that we have a reasonable basis for each forward-looking statement contained in this prior written consent. presentation, we caution you that these
Slide 3: Camtek at a Glance
CAMTEK AT A GLANCE (Nasdaq & TASE: CAMT) Leading provider of high-end inspection and metrology systems to the semiconductor market REVENUE (*) NET PROFIT (*) x3 2021 x7 2021 2017 2017 $79.6M / 156.7M $438 M +18% / +26% (YoY) Revenue Cash & deposits NET CASH (*) SHARE PRICE (*) As of 06/30/22(1) x10
Slide 4: Company Highlights
Company Highlights Addressing high-end inspection and metrology in key growth markets o Strong presence in fast growing advanced packaging and compound semiconductors markets o End-market applications includes 5G, AI . Electric and Autonomous Vehicles, IoT Revenue outperforming market growth o ~X4 r
Slide 5: Outperforming the Industry
Outperforming the Industry Camtek Revenue Growth vs. Growth in Semiconductor Market 2015-2021(1) Inspection and metrology equipment is 350% 297% key factor in adopting new technologies 300% and products to achieve high yield and 250% stability in production 200% 150% 129% 97% 100% 81% 50% 37% 16% 72
Slide 6: Why We Are Winning
Why We Are Winning TOP 6 Putting our High Strong R&D Dedicated Excellent Flexible customers 1st performance Solutions sales and CS operation systems & organization technologies
Slide 7: Camtek to Benefit from Market Trends
Camtek to Benefit from Market Trends Increased Strategic demand for industry components Certain countries Building new expanding fabs to support manufacturing demand capacity 7 Copyright of Camtek Ltd© 2021. All rights reserved
Slide 8: Inspection & Metrology Solutions for New Applications
Inspection & Metrology Solutions for New Applications Automotive 5G Networks Internet of Artificial Memory Things Intelligence More power More RF silicon, more More computing devices and High-End Advanced More sensors, More power → more more electronic Packaging, more CIS more MEMS, Heterogeneous CP
Slide 9: Overview of Camtek's Market
Overview of Camtek’s Market Our systems provide inspection & metrology of 100% of the dice on the wafer, ensuring Known-Good-Die Camtek’s Segments(1) Advanced Packaging Other players Front-End Camtek’s Market (Mid End) Back-End CMOS Image Sensors, Front End, Compound Semi, RF and Power Front End EoL
Slide 10: Advanced Packaging: Fan out and Heterogeneous Integration
ADVANCED PACKAGING Fan out and Heterogeneous Integration are growing at a fast pace Source: Yole, 2021 10 Copyright of Camtek Ltd© 2021. All rights reserved
Slide 11: More Advanced Packaging
More Advanced Packaging = # of packages 105 89 44 29 25 22 15 7 4 2 iPhone iPhone 3GSiPhone 4s iPhone 5 iPhone 5s iPhone 6 iPhone 6s iPhone 7 iPhone 11 Pro Max iPhone 12 Pro Max 2007 2009 2011 2012 2013 2014 2015 2016 2019 2020 (1) Source: TechSearch International Inc. 11 Copyright of Camtek Ltd© 20
Slide 12: Inspection is Paramount to Heterogeneous Integration
Inspection is Paramount to Heterogeneous Integration Manufacturing Challenges System in Package DRAM Extremely Complex Structures DRAM Bumps and pillars, through- DRAM silicon vias, under bump metallization layer Missing Bumps DRAM Small DRAM Bumps Shrinking Form Factors DRAM Bump pitches becoming D
Slide 13: CMOS Image Sensors Market
CMOS IMAGE SENSORS Worldwide CMOS Image Sensors Market(1) Increased # of cameras in smartphones ($ in billions) $30 2010–2019 CAGRs Unit Shipments (billions) 14 Sales = 16.9% Units = 15.2% $25 12 2019–2024F CAGRs Smaller pixel size requiring $20 Sales = 7.2% Units = 11.5% 10 new equipment 8 $15 6 $1
Slide 14: By 2023 more than 50% of smartphones sold will be 5G
5G By 2023 more than 50% of the Growth in number of smartphones sold will be 5G(1) packages using 76% 71% Advanced Packaging 66% 59% $360 $420 $476 $711 $576 Growth in CMOS Image $766 Sensors 48% $978 43% 22% $1,120 $940 $1,015 $820 Growth of x2-3 in $580 $660 RF components $276 2020 2021 2022 2023
Slide 15: Financial Overview
Financial Overview 15 Copyright of Camtek Ltd© 2021. All rights reserved
Slide 16: Track Record of Growth and Profitability
Track Record of Growth and Profitability Revenue Operating Income and Margin* Net Income per Diluted Share* ($ in millions) ($ per share) ($ in millions) 28% +~70% 19% 18% 17% $1.59 $270 $77 11% $156 $123 $134 $0.62 $0.64 $22 $25 $27 $0.57 $93 $10 $0.27 2017 2018 2019 2020 2021 2017 2018 2019 2020 2
Slide 17: Strong Quarterly Performance (Non-GAAP)
Strong Quarterly Performance (NON-GAAP) Revenue ($M) Gross Margin 80 77 52.1% 52.0% 50.9% 50.9% 50.9% 74 71 67 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3 Operating Margin Guidance: HC $81-83m 414 423 30.6% 29.9% 404 28.2% 28.8% 378 27.4% 370 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3
Slide 18: Q2 Highlights
Q2 Highlights Sales by Application R&D Investment in $M Sales by Geography $7.00 $6.00 +22% US & Europe, 21% $5.00 $4.00 Other $3.00 $6.60 Asia, $5.40 CIS (~10%) $2.00 79% Advanced Front End + $1.00 Packaging $0.00 compound (>50%) Q2 2021 Q2 2022 (>20%) Q2 Revenue Q2 Op. Profit (*) Order Flow $79.6m
Slide 19: Progress to Target Model
Progress to Target Model Revenue ($ millions) Gross Margin Operating Margin 400 52-53% 27-29% 50-52% 24-26% 300 18.7% 48.6% 47.8% 11.1% 134 93 2017 2019 $300M $400M 2017 2019 $300M $400M 2017 2019 $300M $400M Continue to benefit from the leverage in the model (*) Disclaimer: All of the information p
Slide 20: Selected Balance Sheet Data
Selected Balance Sheet Data ($ in millions) 6/30/22 12/31/21 (Unaudited) (Audited) Cash & Deposits (1) $438 $430 Trade Account Receivables, net 73 58 Inventory 75 64 Fixed Assets 30 25 Current Liabilities 86 90 Convertible Notes, Net 195 195 Total Balance Sheet 625 584 (1) Includes cash and cash equ
Slide 21: Our Growth Strategy
Our Growth Strategy Pursue strategic 04 synergistic acquisitions 03 Introduce new products to address evolving customer needs and emerging applications Capitalize on Maintain and grow growth in Camtek 01 02 technology leadership target markets through best-in-class innovation (AP, FE, CS, CIS, RF) 2
Slide 22: Investment Takeaways
Investment Takeaways Strong presence in fast-growing markets with several growth drivers Positioning Provider of equipment to leading semi IDMs, Foundries and OSATs Technology Increasing market share due to technological superiority and leadership ~1,500 systems installed base worldwide serving over
Slide 23: Thank You
Thank You info@camtek.com www.camtek.com Copyright of Camtek Ltd© 2021. All rights reserved
Slide 24: Appendix
Appendix 24 Copyright of Camtek Ltd© 2021. All rights reserved
Slide 25: Reconciliation from GAAP to Non-GAAP
Reconciliation from GAAP to Non-GAAP $ in millions (except per share data) FY2018A FY2019A FY2020A FY2021 Revenue $123.2 $134.0 $155.90 $269.70 (1) In February 2022, the Company reached a settlement with the Israeli Tax Authorities and recorded a one-time tax expense in respect of its historical exe
Slide 26: Reconciliation from GAAP to Non-GAAP (cont'd)
Reconciliation from GAAP to Non-GAAP (cont’d) $ in millions (except per share data) FY2018A FY2019A FY2020A FY2021 Gross profit (GAAP) $60.8 $64.8 $73.3 $137.3 % of revenue 49.40% 48.30% 47.00% 50.9% Share based compensation 0.2 0.3 0.4 0.6 Effect of FIT reorganization (2) 0.2 - - - Gross profit (no