Camtek Dec13 Presentation

8/13/2019 Camtek Dec13 Presentation

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Roy Porat, CEO | Moshe Eisenberg, CFO

INVESTORS PRESENTATION December 2013



Safe Harbor

The information presented today contains forward-looking statements that relate to anticipated future operating results and performance.

These statements are only predictions based on management’s current expectations and assumptions, including with respect to market

size, Total Available Market (or “TAM”) and revenue targets, and necessarily involve risks and uncertainties. Moreover, our stated revenuetargets are inspirational and should not be taken as projections of actual future results. We do not assume any obligation to update the

information provided. Actual events or results may differ materially from those projected, including as a result of changing industry and

market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased

competition in the industry, price reductions and other subsequent developments and business conditions, as well as due to ri sks and other

important information identified in the documents filed with the Securities and Exchange Commission, including the Company’s Annual

Reports on Form 20-F and Reports on Form 6-K.

The presentation includes non-GAAP financial measures which are not intended to be considered in isolation or as a substitute for the

financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures whenevaluating the business internally and therefore believes it is important to make these non-GAAP measures available to the financial

community. Reconciliations of non-GAAP measures to the most relevant GAAP amounts are set forth in the Appendices to this

presentation.

This presentation includes the company’s estimations on Market size and TAM, (“Total Available Market,” or “TAM”) these estimations can

vary and may be differ materially from the reality and are based on internal estimations. TAM or market size is the company’s estimation

on the total yearly market size.

2



Camtek at a Glance

*Market cap as of Nov, 2013.

NOTABLE FACTS

MARKET CAP

$120MREVENUE*

$84MOP. INCOME*

$5.3M

KEY METRICS* 2012

CAMT

PRESENCE IN

34COUNTRIES

500EMPLOYEES

ISRAELHEADQUARTED

2800INSTALLATIONS

CASH

$20M

3

Camtek provides automated solutions for yield and process

enhancement for the Semiconductor and PCB Industries



Our Business

• New product – GreenJet;

automated 3D printing of

SM on PCB

• Great Ink business –

recurring revenue stream

with high margin

3D

PRINTING

INSPECTION &

METROLOGY

• Capital equipment growth rate 7-8%/year

• Technology driven demand

• Camtek is a leading player in the industry’s higher growth

markets (LED, CMOS Image Sensor, MEMS, Advanced

Packaging)

INSPECTION

• Every major PCB

company in the world

has multiple systems

• #2 Position in the market

• Capacity driven Business,

mainly China

• New product offering

PRINTED CIRCUIT BOARDS SEMICONDUCTOR

TAM: $120-150m * TAM: $70-90m * TAM: $600-700m *(Ink & Tools)



Technological Trends in Our Favor

Camtek’s inspection and

metrology systems are

used in the manufacture

of the most advanced

semiconductor & PCBapplications

C h i p s l i k e l y t

o h a v e b e e n s c a n n e d b y C a m t e k

As technology increases

in complexity to smaller

nodes and multiple

layers, the need for

automated inspectiongrows exponentially

3D Printing technology

for deposition of solder

mask on PCB has the

potential to revolutionize

the PCB manufacturingprocess



Legacy Inspection Product Lines

6



Semiconductor Market Looks Positive

7

IC RECOVERY INDEX

IC REVENUE SHIPMENTS CYCLE FORECAST WORLDWIDEFORECAST OF THE BUSINESS CYCLE PATTEN, NOT $ SALES

71%

29%

CAMTEK TOOL SALES BY MARKETLAST FOUR QUARTERSThe IC Industry enters/exits

recession when indexdeclines/surpassed zero

SEMICONDUCTOR

PCB

Advanced Forecasting



The Segments We Serve in Semi

CMOS Image

Sensor

LED 3D IC Analog MEMS Memory



Semiconductor Backend Inspection

• Market size estimated at $120-150m

• #1/#2 leading player with systems installed at leadingsemiconductor manufacturers

• Rudolph Technology (RTEC) main competitor

• Semi market is growing

• Technology driven business

• Very segmented: 9-10 segments:

• #1 in bump and µ-bump technology

• #1 in LED

• #1 in CIS

• We expect even higher growth rates in the segments we focus

on: LED, CMOS & Packaging technology like 3DiC

9



Semi Growth Opportunity: LED

• The world is moving to LED lighting solutions

•Segment is expected to grow at ~20%/y in thenext 4 years

• Led by US energy department

• Detailed roadmap calls for supportive systems

and developments

• New WW regulations support transition

• Camtek dedicated LED systems are alreadyinstalled at 5 of the leading manufacturers

PACKAGED LED REVENUESPLIT BY APPLICATION

Source: Status of LED Industry Report, August 2012, Yole Development

10

Source: EF Schubert, Light Emiting Diodes (Cambridge Univ. Press)

http://www.ecse.rpi.edu/~schubert/Light-Emitting-Diodes-dot-org/chap23/F23-04%201300%20nm%20Communica%20LED.jpg

http://www.google.co.il/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=i4EU7tSPie7DDM&tbnid=qpcu9GdZfKaenM:&ved=0CAUQjRw&url=http://nickbugbee.wordpress.com/2011/01/11/l-e-d-home-lighting-saves-you-money/&ei=jlmLUt3OHoX40gW_soGYDw&bvm=bv.56643336,d.bGE&psig=AFQjCNEkeiJOEgiuz9dUCT-LmtbKSKWcUA&ust=1384950534994470

http://www.ecse.rpi.edu/~schubert/Light-Emitting-Diodes-dot-org/chap23/F23-04%201300%20nm%20Communica%20LED.jpg



Market Leader: CMOS Image Sensor

CMOS IMAGE SENSOR SALESSALES FORECAST BY APPLICATION (IN MILLION UNITS)

Source: Yole Development, October 2012



More functionality fits into a small space New generation of tiny but powerful devices

Why Advanced Packaging?

12

Need for small, powerful devices

Heterogeneous integration:

components optimization

Reduce power consumption by

10-100 times

Increased functionality

BREAKDOWN BY INDUSTRY12” WAFERS

Source: Yole Development, July 2012

More than Moore…

4K - 400K bumps / die



PCB & IC Substrate Inspection

• Every major PCB company has multiple

systems• #2 Position, main competitor is Orbotech with

a wider product offering

• Capacity driven Business – short lead-time

tools made for inventory

• Follows the Global economy 2-5%.• Chinese driven business – 90% in China

• Market Size estimated $70-90m

32%

57%

11%

OTHERS

CAMTEK

Orbotech

PCB & IC SUBSTRATE MARKET FY2012

MARKET SIZE ESTIMATED AT $70-90 MILLION

13



3D PRINTING OF SOLDER MASK

Technology risk is behind us

Growth Potential in front of us

DMD GreenJet



Cost of Operation

15

Coat Image DevelopBake

Plot film

Chemical Waste Treatment

Camtek GreenJetConventional / LDI

300ft² 3000ft² Fab Space

1 5 or 4 Labor

$300K $1000K Investment Cost

N/A $$$ Waste Treatment cost

$ $$$ Electricity / water

https://www.google.co.il/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=G8S11Lno64L9eM&tbnid=ifYWNqG2kH2vCM:&ved=0CAUQjRw&url=https://www.iconfinder.com/icons/41967/hand_man_mens_room_person_user_icon&ei=YGqLUoS1AuyX0AXi9oGgCQ&psig=AFQjCNFXsJM_uiVlzLPQhRVuJNmv_Nsrxw&ust=1384954801579710











Technology Problem Statement

16 D=½Goldx2+Green+2x Clearance D=½Goldx2+Green+2x Clearance

ALIGNMENT BETWEEN CIRCUITRY AND SOLDER MASK

CLEARANCE

SIZE OF BOARD

http://www.google.co.il/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=i3JsfjldBn7ZLM&tbnid=cSjwaw0jI7Ou0M:&ved=0CAUQjRw&url=http://www.eurocircuits.com/index.php/eurocircuits-printed-circuits-blog/tags/tag/design-rules&ei=z2GLUvOGKILC0QWwwIGYCA&bvm=bv.56643336,d.ZGU&psig=AFQjCNGfjsz5kJ51tD1v4lggXwRAI5y3KQ&ust=1384952378175984

http://www.google.co.il/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=bbLnbwlQKpmoFM&tbnid=ELl6nDOyaoEyFM:&ved=0CAUQjRw&url=http://pcdandf.com/cms/magazine/95/3931&ei=mGGLUvzuL8OQ0AW-n4DYBQ&bvm=bv.56643336,d.ZGU&psig=AFQjCNGfjsz5kJ51tD1v4lggXwRAI5y3KQ&ust=1384952378175984



3D Solder Mask Functional Printing

Total Available Market *

• Ink $500-600M

• Systems $100-150M ( current spending on Analog Technology)

Where are we

• Following delays, we overcame development and system related issues

• Stable working window of ink, heads and the application

• Current tasks are engineering in mature.

First beta testing will start in 6-7 weeks

• We control the technology

• We have Global qualification

• Started initial samples for customers.

Operational preparation for product launch

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* Camtek estimates



17.6 18.122.3 21.7

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013E

Financial Highlights

18

REVENUES LAST FOUR QUARTERS

US$ MILLIONS

Q4 Guidance

$23-25m

NET INCOME LAST FOUR QUARTERS

US$ MILLIONS

• Break even point reduced to $17-

19m/quarter

• Market direction is turning positive

•Growth expected in 2014

• Strong balance sheet and cash

generation in 2013

• Net cash of $20m at Q3-end.

-0.74

0.24

0.99

0.55

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013E



Strong Core with Significant Growth Opportunities

19

Investment Highlights

Expectations

for good 2014

in semi

Electronics

market growth

and new

technologies

3D printing

opportunity

Key Growth Drivers:

Market Cap: $120m

Net Cash: $20m

EV: $100m

Valuation Financials

‘12 Revenue: $85m

‘12 Op. Income: $5.3m

‘13 Revenue Exp.: ~$85m



Thank You



Appendix A: GAAP Results



Financial Results*

Copyright of Camtek Ltd. 2012 © All rights reserved

*On a GAAP basis

Annual Quarterly 2012 Quarterly 2013

FY Q1 Q2 Q3 Q4 Q1 Q2 Q3

(US $ in Millions) 2011

Revenues 107.1 18.2 25 23.7 17.6 18.1 22.3 21.7

Gross Profit 47.4 7.6 12.1 11.4 6 8.2 9.8 9.7

Gross Margin 44.3% 42% 48.2% 48.1% 33.8% 45.4% 44.1% 44.6%

R&D 14.1 3.3 3.3 3.2 3 3.6 3.6 3.5

13.2% 18.3% 13% 13.7% 17.2% 20.2% 16% 16.1%

SG&A 24.3 5.4 5.5 5.0 5.2 4.7 5.3 5.6

22.7% 29.9% 22% 21.2% 29.4% 26% 23.7% 25.7%

Operating

Profit (loss)9 (1.1) 3.3 3.1 (5.4) (0.2) 1.0 0.6

Operating Margin 8.4% (-6.2%) 13% 13.2% (-30.4%) (-0.8%) 4.46% 2.76%

Camtek Dec13 Presentation

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