December Solar and Semiconductor Solutions

Transcription

1 December 2017 Solar and Semiconductor Solutions

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, forward-looking 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 forward-looking 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 forward-looking 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 Investment Highlights Market leader in developing and producing key manufacturing equipment used in the production of solar, semiconductor and electronics components Focused on manufacturing innovation in three end markets: Solar: equipment addresses over 50% of cell manufacturing process, with advanced and next generation solutions Successful development of solar PECVD, high density diffusion systems, n-pert and PERC cell solutions, and next generation solar N-type cell technologies Semiconductors and Electronics: equipment used in key thermal processes for packaging and assembly of chips Successful development of new generation reflow equipment / technologies Successful development of 300mm Analog/Power Chip diffusion furnace LEDs: consumables and equipment used in polishing and lapping Large and growing end markets; Technology driven upgrade cycle underway Solar: Multi-year technology driven capacity expansion and upgrade cycle in solar China is driving the technology expansion driven by government policies and subsidies favoring high efficiency Semiconductors and Electronics: steady global base growth with potential upside from Chinese buildout Strong financials and backlog $210 million of bookings in fiscal 2017 $102 million backlog at September 30 $51 million of unrestricted cash at September 30 $0.76 / share GAAP earnings in 2H of fiscal

4 Annual Orders In millions $250 Bookings $211 $200 $150 $138 $84 $100 $50 $0 $110 $62 $49 $60 $127 $41 $44 $21 $76 $20 $15 $61 $21 $28 $ Solar Semi / Polishing 4

5 Amtech Locations & Development Strategy Main office Tempe Arizona, USA Strategic Acquisition ATMOSCAN (from Intel) Increased stake in SoLayTec Gen 1 600MW n-pasha production Low cost Ion implanter Batch PECVD 1850w/h PID free PECVD Innovation Gen 2 100MW n-pasha production HD-POCl w/h production ALD/PECVD PERC PECVD 3600w/h 5

6 Amtech Markets Solar Semiconductor Electronics LED N-PERT / PERC Diffusion and PECVD Systems Furnace & Automation High Temp Custom and Belt Systems Spatial ALD for PERC Reflow Products Semi Packaging & SMT LED templates and carriers 6

7 Technology Solar Value Chain Integrated Offering Silicon Ingot / Wafer Solar Cell Module In solar, Amtech supplies equipment into 3 key areas AMTECH GROUP Products Integrated Offering Partnerships Cleaning Texturing Diffusion PSG Etching Removal ALD - AL 2 O 3 Passivation (n-type) PECVD (anti-reflective) Coating Screen Printing Metallization Edge Isolation Testing Sorting Amtech Brand = Quantum = InPassion = Spectrum 7

8 Products Serve All Solar Markets Tempress Spectrum (PECVD / Anti-Reflective Coating ) PECVD SiN x, SiO 2 LPCVD Poly PECVD launch SNEC May 2016 New platform Spectrum enables market share growth; target adoption to >20% MS LP-Poly launch SNEC April 2017 N-PERT IP position enables larger market share Tempress Quantum (Diffusion) HD POCL3 BBr3 Annealing, Oxidation POCl3 diffusion specialist BBr3 diffusion leaders Anneal/oxidation low market share Tempress InPassion (SoLayTec ALD) ALD Al 2 O 3 ALD Al2O3 specialist ALD based PERC enables higher efficiencies PERC technology know-how enables larger market share 8

9 SEMICONDUCTOR SOLAR Solar Technology Approach Taking semiconductor technologies and know-how in partnership with renowned solar institutes to solar high volume manufacturing DIFFUSION Oxide POCl3 BBr3 Solid source Doping Sintering / Alloying Annealing / Drive-In DEPOSITION Poly Silicon SIPOS PECVD Nitride, Oxy-Nitride LPCVD, LS Nitride, Oxy-Nitride TEOS LTO HTO Ta2O5 DIFFUSION POCl3 BBr3 Annealing/Oxidation DEPOSITION PECVD ARC Ox-Poly ALD Al 2 O 3 9

10 Amtech Technology in Solar Production Line SAM increased from 12% to 55% Standard multi cell efficiency 18% Innovation inspection Texture POCl3 Single side etch PECVD Print/fire/Flash Acquisition Technology PERC cell efficiency multi 19%, mono 21% inspection Texture POCl3 Single side etch ALD Al2O3 PECVD rear PECVD front Laser Print/fire/Flash N-type cell efficiency % inspection Texture BBr3 Single side etch Implant Ox-PolyAnneal Implant ox Anneal ALD Al2O3 ox ALD PECVD Al2O3 PECVD front front rear PECVD Print/fire/Flash Print/fire/Flash rear Amtech SAM=12% (2011) SAM=55% (2017) 10

11 Wafer Market Share Source: ITRPV 8 th edition 2017 report release and key findings 11

12 N-type Interest and Momentum Increasing Top Runner Program in China MUST have high efficiency - calls for N-type technology Advancement in mono wafer technology and expansion of such production has significantly reduced cost of mono wafers (both P and N) Price of P- and N-MONO wafers can be comparable in coming years NO LID effects for N-MONO N-type is better suitable for Bi-Facial Technology Tempress is a leader in N-type technology; strong customer base; only non-chinese vendor at recent strategic N-type China solar conference Bifacial N-type cells can collect energy on both sides, which allows for 20-30% more energy yield than single sided cells ITRPV 2017 Bifacial market share doubling every 2yrs to

13 Annual PV Installation (GW) China Market Outlook Through Cumulative 2020 Long-Term Target Annual - Conservative Conservative Scenario (Cumulative) Annual - Optimistic Optimistic Scenario - Cumulative E 2018E 2019E 2020E 2020 (Official Target) (Former Target) (New 2020 (New Guidance 07/2017) Guidance 07/ DG) Highlights: China installed record 24.4GW of solar in first-half of 2017 New guidance on solar installation targets to be GW at the end of the 13th Five-Year- Plan (including 8GW Top-Runner projects) Excludes 60GW distributed solar PV and poverty alleviation project targets from current Plan Source: EnergyTrend 13

14 Electronics Value Chain Where we Compete Semiconductor Packaging Assembly Wafer bumping Solder reflow Screen print fluxing Vision and placement Technology Placement Solder reflow Technology Solder reflow Test & inspect AMTECH GROUP Products Underfill and cure 14

15 BTU Thermal Products Pyramax The world s best performing reflow oven Thermal uniformity Atmosphere control Static pressure Top choice of semiconductor assembly and test subcontractors (SATS) companies Demanding thermal and atmosphere requirements Very high brand loyalty/reputation Thousands of systems installed worldwide High temp, fast fire High volume continuous thermal processing experts Serving Electronics, Automotive, and Medical markets Broad process experience solving critical process problems Multiple heating technologies including: IR, convection (high and low temp) 15

16 BTU s Diverse Customer Base 16

17 Semiconductor Analog / Power Chip Sector Serve top players in Analog, Power Chip and Sensor Sectors, including #1 Infineon, Texas Instruments (including TI Aizu and Miho), Analog Devices (ADI), Samsung, UMC, Vanguard, SEH, SUMCO, Dongbu- ANAM, Soitec Potential migration from 150mm (2/3 rd ) to 200mm (1/3 rd ) to 300mm wafers Future opportunities on fast growing China semiconductor industry 17

18 Semiconductor cont d Source: Transparency Market Research 18

19 LED LED & Optics Highlights Premier global brand since 1938 Market leader in LED and SEMI polishing and lapping LED consumable growth LED and Optics equipment opportunities 19

20 LED cont d 20

21 Financial Overview 21

22 Income Statement (in thousands, except per share data) Years Ended September 30, Three Months Ended /31/2016 3/31/17 6/30/2017 9/30/2017 Revenue, net of returns and allowances $ 104,883 $ 120,308 $ 164,516 $ 29,135 $ 32,944 $ 47,760 $ 54,677 Cost of sales 77,875 86, ,584 20,692 24,549 32,258 35,085 Gross profit 27,008 34,063 51,932 8,443 8,395 15,502 19,592 Selling, general and administrative 33,028 33,967 35,135 6,996 8,260 10,108 9,769 Research, development and engineering 6,918 8,004 6,372 1,627 1,535 1,423 1,787 Restructuring and impairment charges Operating income (loss) (13,521) (7,908) 10,425 (180) (1,400) 3,971 8,036 Gain on deconsolidation of Kingstone 8, Gain on sale of other assets - 2, (Loss) income from equity method investment (417) (143) 52 (110) (216) Interest expense and other income, net (100) (417) (178) 81 (197) (34) (27) Income (loss) before income taxes (4,807) (5,450) 9,830 (242) (1,545) 3,827 7,793 Income tax provision 1,910 3,100 1, Net income (loss) (6,717) (8,550) 8,086 (332) (1,739) 2,841 7,317 Add: Net loss (income) attributable to (1,054) 1,542 1, noncontrolling interest Net income (loss) attributable to ASYS $ (7,771) $ (7,008) $ 9,131 $ (53) $ (1,420) $ 3,287 $ 7,317 EPS - GAAP Diluted $ (0.65) $ (0.53) $ 0.68 $ - $ (0.11) $ 0.25 $

23 Balance Sheet Assets 9/30/2017 9/30/2016 Current Assets Cash and cash equivalents $ 51,121 $ 27,655 Restricted cash 24, Accounts receivable Trade (allowance of $866 22,519 17,642 and $3,730) Unbilled and other 14,275 8,634 Inventories 30,210 23,223 Refundable income taxes Vendor deposits 11,806 1,962 Other 2,542 2,655 Total current assets 157,113 82,924 Property, Plant and Equipment - Net 15,792 15,960 Intangible Assets - Net 3,495 4,100 Goodwill 11,405 11,119 Investments 2,615 3,032 Deferred Income Taxes - Long-Term Other Assets - Long-Term 1,003 1,095 Total Assets $ 191,623 $ 118,430 Liabilities and Stockholders Equity Current Liabilities 9/30/2017 9/30/2016 Accounts payable $ 21,555 $ 15,397 Accrued compensation and related ta 7,592 5,710 Accrued warranty expense 1, Other accrued liabilities 2,056 2,164 Customer deposits 48,784 7,055 Current maturities of long-term debt 361 1,134 Deferred profit 4,081 4,709 Income taxes payable 286 1,100 Total current liabilities 85,969 38,064 Long-term Debt 8,134 9,097 Income Taxes Payable Long-Term 7,037 5,930 Total liabilities 101,140 53,091 Stockholders' Equity Preferred stock; 100,000,000 shares authorized; none issued - - Common stock Additional paid-in capital 125, ,631 Accumulated other comprehensive lo (8,529) (8,876) Retained deficit (26,699) (35,830) Total stockholders' equity 90,483 67,057 Noncontrolling interest - (1,718) Total equity 90,483 65,339 Total Liabilities and Stockholders' Equity $ 191,623 $ 118,430 23

24 Investment Highlights Market leader in developing and producing key manufacturing equipment used in the production of solar, semiconductor and electronics components Focused on manufacturing innovation in three end markets: Solar: equipment addresses over 50% of cell manufacturing process, with advanced and next generation solutions Successful development of solar PECVD, high density diffusion systems, n-pert and PERC cell solutions, and next generation solar N-type cell technologies Semiconductors and Electronics: equipment used in key thermal processes for packaging and assembly of chips Successful development of new generation reflow equipment / technologies Successful development of 300mm Analog/Power Chip diffusion furnace LEDs: consumables and equipment used in polishing and lapping Large and growing end markets; Technology driven upgrade cycle underway Solar: Multi-year technology driven capacity expansion and upgrade cycle in solar China is driving the technology expansion driven by government policies and subsidies favoring high efficiency Semiconductors and Electronics: steady global base growth with potential upside from Chinese buildout Strong financials and backlog $210 million of bookings in fiscal 2017 $102 million backlog at September 30 $51 million of unrestricted cash at September 30 $0.76 / share GAAP earnings in 2H of fiscal