Investor Presentation

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Transcription:

Investor Presentation > February / March 2015 1 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Industry Leader in Thin Film Equipment TurboDisc EPIK 700 GaN MOCVD System > Highly differentiated process equipment and technologies that enable the manufacturing of high-tech electronic devices > Operations in 10 countries on four continents NEXUS IBE-420Si Ion Beam Etching System > Based in Plainview, New York, with approximately 800 employees worldwide > $392 million in cash GENxplor R&D MBE System 2 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Veeco Businesses and Markets Metal Organic Chemical Vapor Deposition (MOCVD) LED Lighting LED Backlighting Power Electronics Solar Atomic Layer Deposition (ALD) Flexible OLED Displays Semiconductor Precision Surface Processing (PSP) MEMS Advanced Packaging Advanced Deposition and Etch (AD&E) Data Storage Optical MEMS Molecular Beam Epitaxy (MBE) Wireless Solar 3 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

MOCVD & MBE Technology 4 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

LED Lighting Adoption to Accelerate in 2014 and 2015 $35 Average Selling Price for Different Lamps 69% $30 $25 LED Value-Based Percent of Lighting Market** 45% $20 $15 9% 2020 CCFL $10 Fluorescent Incandescent 2012 2016 $5 LED $0 2009 2010 2011 2012 2013E 2014E 2015E 2016E Incandescent phase-outs Source *: ihs, Barclays Research estimates Utilities broaden subsidies LED bulb prices come down Source **: McKinsey Lighting Report 2012 5 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

MOCVD Industry Leader Veeco Market Share 51 % 62% 63% 44 % 24 % 29 % 2007 2008 2009 2010 2011 2012 Competitive Advantage: Lowest CoO and Superior Customer Connectivity 2013 2014 Note: Estimated comparative market share Veeco and Aixtron only 6 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

EPIK700 MOCVD: Pulling Ahead of the Competition > Highest productivity platform with up to 20% improved CoO compared to previous generations > Designed for best-in-class uniformity which provides greater wafer yield > Fastest to production with easy process transfer > Most efficient capital investment for maximum profitability > All betas accepted; quick process transfer of recipes in discussions for multi-unit orders with multiple customers Strategic Wins in 4 Key Geographic Regions 7 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Power Electronics: New Growth Opportunity for MOCVD GaN Power Device Market 2 ($M) 2011 2012 2013 2015 2018 2021 Power Electronics device market continues to grow 1 GaN-based power devices offer higher efficiency, switching speed and lower power consumption Veeco MOCVD is positioned at key customer sites around the globe to support this high growth segment Notes: 1) Yole Nov 2011, 2) IMS Research Feb 2012 8 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Precision Surface Processing 9 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

PSP: Great Fit to Support our Growth in 2015, Beyond Increased Access to High Growth Markets Complimentary Differentiated Technology Synergistic Combination to Drive Growth & Profitability 1 2 3 Extends Compound Semi and MEMS Footprint Stepping Stone to Advanced Packaging Market Soak and Spray Technology enables Single Wafer Control with Low Cost of Batch Processing Highly Configurable Platform Serves Multiple Applications and Wafer Sizes Significant Overlap in Business Opportunities Working to Accelerate Growth for a Robust, Highly Profitable Business 10 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

PSP Extends Footprint in Compound Semi ~Served Available Market (SAM)* End Markets 2014 SAM ~ $480M 2017 SAM ~ $740M SAM CAGR: > 15% Processes Veeco MOCVD MBE SSEC Metal Lift-Off (MLO) Thick Resist Removal Wet Etch *Veeco & SSEC Estimates/Systems Only Source: Yole Development 11 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

PSP Strengthens MEMS Opportunity ~Served Available Market (SAM)* Smartphone Application Example 2014 SAM ~ $65M 2017 SAM ~ $90M SAM CAGR: Processes Veeco Ion Beam Etch 10% Autofocus MEMs Actuator 15-17 MEMS in Red SSEC MLO Thick Resist Wet Etch Wafer Thinning 3D & Trench Cleaning *Veeco & SSEC Estimates/Systems only Source: Yole Development 12 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

PSP Adds New Advanced Packaging Growth Vector ~Served Available Market (SAM)* Market and Applications 2014 SAM ~ $145M 2017 SAM ~ $230M SAM CAGR: 18% SSEC Processes Wafer Thinning Through Silicon Via (TSV) Reveal & Clean Under Bump Metal (UBM) and Redistribution Layer (RDL) Resist Removal and Etch Flux Removal *Yole/ Veeco & SSEC Estimates/Systems only 13 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Growing Significance of Single Wafer Wet Processing for Advanced Packaging Today Today Today 2019 Today 2019 2019 Today 2019 2019 Wet Batch Dry Film / Resist Removal Single Wafer Wet Wet Batch TSV Resist Removal & Clean Single Wafer Wet Flux Removal & Clean Wet Batch Single Wafer Wet Wet Batch UBM / RDL Etch Single Wafer Wet Dry Wafer Thinning / Stress Relieve Single Wafer Wet Source: Yole 14 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Data Storage & Other Thin Film Technologies 15 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Exabyte Shipments Hard Disk Drives Will Continue to Dominate Storage It took Seagate 29 years to reach their first billion hard drives and only four years to reach their second billion 3,500 Over 85 % of exabytes in 2020 will be stored on HDDs Smart Phones/ Tablets Cloud SSD Cloud Personal Consumer Electronics Client SSD Client PC Source: Western Digital 2012 2016 2020 16 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Data Storage Business: More than Just HDDs High Performance Optical Coatings End Market CAGR ~ 5% From 1960-2010 approximately 1 billion terabytes of data was stored. In 2012, 1 billion terabytes were stored.* End Market Blended CAGR ~10% EUV Masks MEMS & Magnetic Sensors *Seagate DLC CVD PVD IBD IBE Lap & Dice 17 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Veeco IBD Required for EUV Mask Roadmap > $300B semiconductor market investing heavily in EUV to solve lithography challenges > Defect-free photomasks are a technical roadblock > We have 100% market share in Ion Beam Deposition for this application Currently engaged with key industry players on next-gen equipment solutions 18 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Financial Highlights 19 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

2014: Solid Execution in a Transition Year Improved Financial Performance Revenue up 18% Bookings up 54% Achieved EBITDA Profitability Generated $42M in Cash from Operations Gross Margin up 3 Percentage Points Successful Cost Reduction and Site Consolidation Activities 20 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Financial Performance Accelerating 250 Bookings ($M) 120 Revenue ($M) 200 100 150 100 50 80 60 40 20 0 Q413 Q114 Q214 Q314 Q414 0 Q413 Q114 Q214 Q314 Q414 50 Gross Margin % 50 Cash Flow from Operations ($M) 40 40 30 30 20 20 10 10 0-10 0 Q413 Q114 Q214 Q314 Q414-20 Q413 Q114 Q214 Q314 Q414 21 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Q4 2014 Bookings and Revenue Highlights Bookings Revenue $M Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 MOCVD 52 83 75 81 142 MBE 11 4 6 9 5 PSP NA NA NA NA 3 ALD 0 0 0 3 0 Data Storage 22 15 23 14 45 Total 85 103 104 107 196 $M Q4 13 Q1 14 Q2 14 Q3 14 Q41 4 MOCVD 50 64 67 71 78 MBE 6 7 10 6 5 PSP NA NA NA NA 8 ALD 0 0 0 0 0 Data Storage 16 20 18 16 23 Total 73 91 95 93 114 Note: Amounts may not calculate precisely due to rounding 22 February/March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.