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Copyright of Camtek Ltd© 2017. All rightsreserved
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 revenue targets 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 risks 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 when evaluating 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 included in the Company press releases.
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
SAFE HARBOR
Copyright of Camtek Ltd© 2017. All rightsreserved 3
CAMTEK ID
GLOBAL
PRESENCE:
China, Taiwan, Korea,
Singapore, Hong Kong,
USA, Europe
Market Cap
$304M*
Q2 2018 revenues
$30.5M+34% YoY
2017 revenues
$93M+18% YoY
Employees
280
Net Cash
$41M*
Q2 2018 net income
$4.6M (15%)
+134% YoY
2017 net income
$10M+315% YoY
Develops, manufactures and sells inspection and metrology systems to the semiconductor market
*Market CAP as of July 30, 2018Net Cash as of June 30, 2018
Copyright of Camtek Ltd© 2017. All rightsreserved 4
WHAT WE DO
INSPECTION METROLOGY SOFTWARE SOLUTIONS
Bumping MemoryRDLAdvanced Packaging
PostDicing
MEMS,RF
CMOSImage Sensors
Copyright of Camtek Ltd© 2017. All rightsreserved 6
STRONG AND IMPROVING
OPERATING PERFORMANCE
Camtek semiconductor
revenue and operating
income ($m)
2017
44
55
68
79
93
DOUBLEDSemi revenue
organically from
2013 to 2017
More than
2013 2014 2015 2016 2018E
REVENUE
double
digit
growth
310 ~15% OI
Growth from
leverage
Copyright of Camtek Ltd© 2017. All rightsreserved 7
LOOKING AHEAD:
• Highest ever level of backlog
• Q318 revenue guidance of $31-32m;
+30% YoY
• +30% YoY growth for the fist 9m of
2018
• Improved profitability
Q2 2018:
RECORD RESULTS
• $30.5m revenue; +34% YoY
• GM of 49.0%, approaching target model
• operating income (non-GAAP): $5.0m;
16.3% margin
ONGOING REVENUE GROWTH
16.8
19.8
21.0 21.5
21.1
22.7
23.8
25.8
27.3
30.5
15.0
17.0
19.0
21.0
23.0
25.0
27.0
29.0
31.0
Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18
Camtek Quarterly Revenue Growth (US$) since Q1 2016
Copyright of Camtek Ltd© 2017. All rightsreserved 8
PERFORMANCE HIGHLIGHTS
• Doubled semiconductor revenues 2013-2017
• Momentum continues into 2018
• Successfully improved profitability to 16% operating margin
• Significant margin improvement: expect to continue
Growth engines:
• Positioned well in a growing market
• Penetrating new market segments: 2D, FE
• China
• New products: ICI, s/w
Again in next
DOUBLE
REVENUES
3-5 years
Copyright of Camtek Ltd© 2017. All rightsreserved 9
SEMICONDUCTOR MARKET
GROWTH ENGINES
Source: Cisco Global Cloud Index, Gartner, Camtek estimates
Mobility &Connected Devices
(5G)
Cloud BlockchainTechnologies
Digital
Healthcare
Artificial Intelligence& Machine Learning
Autonomous
Car
Augmented &
Virtual Reality
Multiple Growth Drivers
RF Filters MEMS Advanced Packaging Data Centers & Storage Processing Power
Copyright of Camtek Ltd© 2017. All rightsreserved 10
AUTOMOTIVE INDUSTRY TRENDS
Today
~70electronics modulesWith 4-8k chips
~100+electronics modulesexpected
by 2020
Audio system
Transmission
control
Connectivity
TV module
Trunklatches
LED lighting
Bus interface protection
Engine control
unit
Airbag
Powersteering
HID, LEDlighting
Diagnosis unit
Climate control
Dashboard
Telematics, multimedia, infotainment, GPS, navigation, E-call, tracking & car alarm system
Keyless entry,Central lock,immobilizer
ABS, ESP, TPMS,electro-hydraulic brake,
traction control
Electrical drives(e.g. mirror, seat, sun roof, wiper, window)
ADAS(e.g. ACC, parking
sensor,blind spot detection,
radar,lane change assistance)
Copyright of Camtek Ltd© 2017. All rightsreserved 14
ADVANCED PACKAGING
Driving Increased
Inspection & Metrology
Capital Spending
Advanced Packaging
penetration expected to
DOUBLE2016-2020...
Advanced Packaging wafer forecast x1000 wspy 300 mm eq.
Co
un
t (x
10
00
wsp
y3
00
mm
eq
.)
45,000
40,000
35,000
30,000
20,000
20,000
15,000
10,000
5,000
0
2014 2015 2016 2017 2018 2019 2020 CAGR
FC 13,256 15,415 16,455 18,626 21,501 24,902 29,062 14%
FO WLP 428 593 1,968 3,037 3,880 4,882 5,817 54%
FI WLP 3,587 3,892 4,134 4,512 4,910 5,327 5,756 8%
2.5D / 3D 1,350 1,798 2,268 2,853 3,463 4,239 5,900 26%
TOTAL 17,271 19,901 22,557 26,176 30,290 35,111 40,635 15%
And # of bumps / wafer
is growing
Driving AOI spending
growth much faster
Copyright of Camtek Ltd© 2017. All rightsreserved 15
THE MEMORY PACKAGING MARKET
Source: Yole, 2017
33.5
44.5
5
6
7
0
2
4
6
8
10
12
14
16
18
20
2016 2017 2018 2019 2020 2021 2022
Pagaging Advanced Packaging
AP includes: WLCSP, FC and TSV
Rev
enu
es (
$B
)
AP CAGR 12.87%
Copyright of Camtek Ltd© 2017. All rightsreserved 16
OUR TARGET SEGMENTS
SHOW DOUBLE-DIGIT GROWTH
Source: Yole, Gartner, IC Insights % 2016-2022 CAGR
Memory will grow in 2017 by 60%
7%
7.6%
7.6%
11%
12%
12%
19%
21%
Semi total
Foundry
Memory
RF
MEMS
CIS
3D IC
Fan-out
Ad
va
nce
d
Pa
cka
gin
g
CA
MT
EK
FO
CU
S
50%
20%
14%
16%
Advanced Packaging Inspection and Metrology CIS RF/POWER/MEMS General Inspection
Installed Base
Based on 800 machines
installed worldwide
Copyright of Camtek Ltd© 2017. All rightsreserved 17
STRATEGIC PLAN AHEAD
Double
Revenuein 3-5 years
Metrology industry
standardKeep leadership position in
Metrology
Expand Inspection
market share• Leverage on 3D strength
• Innovative technology
solutions: Side Wall Crack,
multi-level RDL
• Increase Software sales
New market
segments• Front-end Macro inspection
• Compound Semiconductors
Chinese market
expansion• Well positioned to leverage on
this market growth
Improved ProfitabilityOperating leverage
Lower ongoing expenses
Increased software component
Copyright of Camtek Ltd© 2017. All rightsreserved
INNER CRACK DETECTION (ICI)
Normal – 1.7um / pix ICI – 4.9um / pix IR-2.3um/pix focus on metal FIB cross section
20
• Most cost effective solution for cracks detection that cause field failures
• More than 90% correlation to IR Inspection
Copyright of Camtek Ltd© 2017. All rightsreserved 21
SOFTWARE SOLUTIONS
Map Analysis Pattern
SOFTWARE
SOLUTIONS
Automatic Defect Classification
• Fully automated inspection process
• Deep Learning based algorithms
Yield Analysis
• Yield enhancement
• Process control
• Enhanced data visualization
Defect classification
Copyright of Camtek Ltd© 2017. All rightsreserved 22
OUR AVAILABLE MARKET IS GROWING
Source: Yole, Gartner,
Camtek
100% INSPECTION,
Growth driven by demand
for higher reliability,
DEFECT-FREE PRODUCTS
HIGHER RELIABILITY
55
80
120
180
200
245
325
413
80
100
120
0 100 200 300 400 500 600 700 800
2015
2017
2019
2021
US$M
3D Bump Metrology ME 2D Inspection & Metrology Macro Inspection
Maintain leading position New marketIncrease market share
Copyright of Camtek Ltd© 2017. All rightsreserved 23
PROGRESS TO LONG-TERM OPERATING MODEL*
*Illustrative Purposes Only
Rafi Amit, CEO
we expect double-digit revenue
growth in 2018, and combined
with our strong operating
leverage, we expect to enjoy
a strong year of profitability.
‘‘ ‘‘
Revenue
100%
double digit
growth from
semi
2014(inc. PCB)
Gross Margin
drivers – software sales, leverage
50-52%
2017 49%
46%
Operating Margin
drivers – efficiencies, leverage
15-20%
2014(inc. PCB)
6%2017 11%
2017 15%
Copyright of Camtek Ltd© 2017. All rightsreserved
1
25
INVESTMENT HIGHLIGHTS
End markets
continue to
grow quickly
2
Focus on the
fastest growing
segments and
increasing TAM
3
Continued
improvement
in margins &
profitability
GOAL
Double Revenues
again within
3-5 years
Copyright of Camtek Ltd© 2017. All rightsreserved 27
GAAP FINANCIAL RESULTS
Annual Annual 2018 2018
FY FY Q1 Q2
(US $ in Millions) 2016 2017
Revenues 79.2 93.5 27.3 30.5
Gross Profit 32.5 45.5 13 14.9
Gross Margin 41% 49% 48% 49%
R&D 12.7 13.5 3.5 3.4
16% 14% 13% 11%
SG&A 21.9 22 5.9 6.8
28% 15% 22% 22%
Reorganisation -4.1 - - -
Loss from litigation - 13 - -
Operating Profit (Loss) 30.5 -3 3.6 4.7
Operating Margin 39% -3% 13% 16%
Continuing Operations 0.9 1.7 3.5 4.3
Discontinued Operations 3.9 12.3 - -
Net Profit (Loss) 4.7 14 3.5 4.3