March. Roth Capital Partners 31 st Annual Growth Stock Conference. Investor Presentation

Transcription

1 March 2019 Roth Capital Partners 31 st Annual Growth Stock Conference Investor Presentation

2 Safe Harbor Statement This Presentation may contain certain statements or information that constitute forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). In some but not all cases, forwardlooking statements can be identified by terminology such as, for example, may, will, should, would, expects, plans, anticipates, intends, believes, estimates, predicts, potential, continue, or the negative of these terms or other comparable terminology. Examples of forwardlooking statements include statements regarding Amtech System, Inc. s (the Company ) future financial results, operating results, business strategies, projected costs, products under development, competitive positions and plans and objectives of the Company and its management for future operations. Such forward-looking statements and information are provided by the Company based on current expectations of the Company and reflect various assumptions of management concerning the future performance of the Company, and are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the control of the Company. Accordingly, there can be no guarantee that such forward-looking statements or information will be realized. Actual results may vary from any anticipated results included in such forward-looking statements and information and such variations may be material. No representations or warranties are made as to the accuracy or reasonableness of any expectations or assumptions or the forward-looking statements or information based thereon. Only those representations and warranties that are made in a definitive written agreement relating to a transaction, when and if executed, and subject to any limitations and restrictions as may be specified in such definitive agreement, shall have any effect, legal or otherwise. Each recipient of forwardlooking statements should make an independent assessment of the merits of and should consult its own professional advisors. Except as required by law, we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise. 2

3 Long-term Strategic Focus: Delivering Profitable Growth in Highly Selective Semiconductor Opportunities Where We Have Distinctive Capabilities

4 Investment Highlights for 2019 and Beyond A market leader in the high-end power chip market (SiC and 300mm Si HTR) Developing and supplying essential equipment and consumables used in semiconductor industry Premier semi brands with strong global footprint Serving large and growing end markets in a technology-driven up cycle Capitalize on fast growth, emerging SiC/Si power sector Strong 12/31/18 financials Cash of $56M Five consecutive years of semi revenue growth Three consecutive years of semi operating profit growth $25M of semi backlog 4

5 2018 Year-end Business Review to Reassess Long-term Objectives

6 2018 Year-end Business Review and Conclusions State of Amtech s solar and semi businesses at year end Solar business weak - severely challenged by non-controllable factors; little visibility of future potential Solar is quickly becoming a commoditized business Chinese local competition has caught up technically; tools are good enough for commoditized industry Margins under intense pressure due to lower cost, good enough offerings by locals Superior technology not enough to win in current CAPEX constrained market environment Semi business strong - opportunities to deliver attractive cash flow and profitable growth Conclusion: Unlike solar, semi captures high value for our efforts and investment Solar Semi (Power Chip) Operating Profit (millions)

7 Amtech Group s Forward Plan Solar Stopping losses is top priority Reduced investment in new business development Semi Increased focus and investment in semi business to participate in fast-growing power device industry and to deliver value-enhancing profitability and growth Strategic Focus is on Semi Businesses Foundational Strengths and Related Opportunities Emerging Growth: PR Hoffman SiC Substrate Consumables and Machines Fast emerging growth in SiC substrate and power devices Growth: Bruce Chip Fabrication Capitalize on Si power chip growth opportunity Core: BTU Packaging and SMT Solid foundation with complimentary growth in backend IC packaging and electronics SMT tracking semi industry cycles 7

8 The Building of Amtech s Thermal Process Expertise Strategic Acquisitions ATMOSCAN (from Intel)

9 Now Operating in Three Semi Value Chains Chip Substrate Chip Fabrication Chip Packaging and SMT Value Chain Brand Business Strategy Emerging Growth Growth Core Foundation Main Products Substrate lapping and polishing consumables and machines Horizontal thermal diffusion & CVD furnaces Advanced thermal processing equipment Key Customers Major SiC, Si, and sapphire wafer producers Top players in power chip, sensor, and analog sectors Chip packaging, SMT, and custom engineered high temperature belt furnace producer 9

10 Diverse Customer Base of Market Leaders 10

11 Positive Semiconductor Growth Outlook Worldwide semiconductor market expected to grow to $570B by 2022 Over 1 trillion units shipped in 2018 between IC and O-S-D semiconductor devices 11

12 Highly Leveraged to SiC Growth Premier global brand since 1938 Market share leader in SiC/GaN, Si, LED sapphire lapping and polishing consumables and machines Strong performance and continued growth potential benefiting from serving growing markets, particularly SiC power chip sector Key customers: Our top 2 customers account for approximately 90% market share in SiC substrates and we are their primary supplier 12

13 High Growth SiC Substrate Outlook SiC substrate capacity projected to grow from 263K units in 2018 to 1M units by

14 Premier Global Brand in Power Chip Fabrication Business Leading position in emerging 300mm thermal HTR diffusion furnace for power chips Serve top players in power chip, sensor, and analog sectors, including #1 power chip producer, Infineon (Thirty-four 300mm systems) Upgrade cycle opportunity for 150mm (2/3 rd ) to 200mm (1/3 rd ) to 300mm wafers Power electronics market outlook robust: Growth in xev and electronics content in automobiles Need for high power applications across all segments More companies will follow Infineon to 300mm production 14

15 Premier Global Brand in Power Chip Fabrication Business Semiconductor Unit Growth Power, Sensors, Analog devices represent ~70% of total semiconductor unit growth 15

16 Chip Packaging and Electronics SMT a Core Business Global premier brand Core semi business unit tracking industry growth cycles Semi Packaging Operate in three industry segments Semi packaging Surface mount technology (SMT) for electronics systems Custom engineered high-temp furnaces for growing automotive and other industrial applications Electronics PCB 16

17 Growth in Chip Packaging and Electronics SMT 17

18 Financial Overview

19 Semi Delivering Value-Driving Top and Bottom-line Growth Revenue Operating Profit 19

20 Seeing Rapid Growth in Semi Bookings $120 Bookings (millions) Tracking Semiconductor Growth Cycles $100 $80 $ $40 $20 $

21 Semi Delivering Value-Driving Earnings Growth Operating Profit (millions)

22 Operating Profit (Semi + Solar ) $15 $10 Consolidated Operating Proft (millions) 10 $5 2 $- $(5) $(10) $(15) (8) (13) (14)

23 Strong Balance Sheet (In Millions) December 31, 2018 Cash and cash equivalents $56.0 Total assets $140.9 Total debt $7.9 Strong balance sheet with ample liquidity for: Business development Innovation Select external opportunities Share repurchase Shareholders equity $90.3 Weighted average diluted shares outstanding

24 Summary

25 Investment Highlights for 2019 and Beyond A market leader in the high-end power chip market (SiC and 300mm Si HTR) Developing and supplying essential equipment and consumables used in semiconductor industry Premier semi brands with strong global footprint Serving large and growing end markets in a technology-driven up cycle Capitalize on fast growth, emerging SiC/Si power sector Strong 12/31/18 financials Cash of $56M Five consecutive years of semi revenue growth Three consecutive years of semi operating profit growth $25M of semi backlog 25

26 Appendix

27 New Silicon Carbide Power Device Growth Market SiC power devices have advantages such as: Higher temperature operation (>200 C) Higher voltage operation (>1000V) Higher speed operation Faster heat dissipation And smaller form factor compared to Si power devices. Fast-growing markets with increasing power chip demand include: Automotive (particularly EV and increasing electronics content) Communications (particularly 5G infrastructure), Industrial equipment Renewable energy 27

28 SiC Power Devices Total SiC based power devices expected to grow from $451M in 2018 to $1.5B in

29 Chip Substrate Growth Outlook for SiC Power and RF Devices SiC device market size expected to accelerate after 2020 due to greater industry adoption, from $685M in 2017 to $2.8B in 2023 Growth drivers in SiC expected from automotive and communications, primarily in 5G infrastructure 29

30 Automotive as a Power Chip Growth Opportunity Automotive expected to hold major share of the power electronics market between 2018 and 2023 with: Increasing adoption of electric vehicles An expanding charging infrastructure Market focus on ADAS and future AD SiC power devices address demand for higher performance with smaller form factor 30

31 Semiconductor Packaging Applications BTU provides equipment to the top 5 global OSAT subcontractors and OEMs Key application opportunities Flip chip SiP (system in package) Fan-out SiP 2.5 and 3D memory Pyramax platform is a well-established solution with sizable installed base BTU is well positioned for semiconductor packaging roadmap 31

32 Chip Packaging and Surface Mount Assembly Growth Projection Semi Packaging Electronics SMT 32