Solar and Semiconductor Solutions

Transcription

1 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: equipment used in polishing and lapping Large and growing end markets; Technology driven upgrade cycle underway Solar: Multi-year technology driven capacity 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 order momentum Four consecutive quarters of bookings and backlog growth F3Q 17 record backlog/bookings of $126mn (up 44% Q/Q and 97% Y/Y) / $79.9mn (up 17% Q/Q and 166% YoY) Amtech is seeing order strength for both its tools and "turn-key" lines; its largest turn-key customer is undergoing a 1GW expansion, of which only half has been booked to date Book-to-bill ratio of 1.7x in F3Q 17 3

4 $ millions Total Orders by Quarter FQ3'15 FQ4'15 FQ1'16 FQ2'16 FQ3'16 FQ4'16 FQ1'17 FQ2'17 FQ3'17 Solar Semi / Polishing 4

5 $ millions Total Backlog by Quarter FQ3'15 FQ4'15 FQ1'16 FQ2'16 FQ3'16 FQ4'16 FQ1'17 FQ2'17 FQ3'17 Solar Semi / Polishing * Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months 5

6 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 6

7 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 7

8 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 8

9 Products Serve All Solar Markets 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 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; strong adoption to >20% MS LP-Poly launch SNEC April 2017 N-PERT IP position enables larger market share 9

10 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 10

11 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) 11

12 Wafer Market Share Source: ITRPV 8 th edition 2017 report release and key findings 12

13 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) Lifespan of PERC-multi has become shorter: 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 N-type roadmap towards >22% 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

14 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) (New2020 (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 14

15 China 2017 Top Runner Program Efficiency Standards for 2017 Top Runner Program Cell Efficiency Wattage of Cell* Module Efficiency Wattage of Module** multi-si 19.5% 4.79 W 17.0% 280 W mono-si 21.0% 5.13 W 18.0% 295 W * per piece, M2-size ** 60-cell module Target for the third phase Top Runner Program for 2017, setting to add 8-10GW of solar projects under new efficiency standards The new standard will include technologies such as distributed generation, intelligent manufacturing, internet connection, and energy storage Each province (municipal, region) can apply for up to three Top Runner sites, total capacity up to 2GW (min 500MW-1GW) The ultimate goal of Top Runner Program is to reduce LCOE and make PV generation become grid parity by 2020 The new Top Runner Program will stimulate competition and tension between mono-si and multi-si PERC products Source: EnergyTrend 15

16 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 16

17 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) 17

18 BTU s Diverse Customer Base 18

19 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 19

20 Semiconductor cont d Source: Transparency Market Research 20

21 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 21

22 LED cont d 22

23 Financial Overview 23

24 Income Statement (in thousands, except per share data) Years ended September 30, Three Months Ended /31/2016 3/31/2017 6/30/2017 Revenues, net of returns and allowances 56, , ,308 29,135 32,944 47,760 Cost of sales 44,875 77,875 86,245 20,692 24,549 32,258 Gross profit 11,626 27,008 34,063 8,443 8,395 15,502 Selling, general and administrative 18,424 33,028 33,967 6,996 8,260 10,108 Research, development and engineering 6,291 6,918 8,004 1,627 1,535 1,423 Restructuring charges Operating income (loss) (13,089) (13,521) (7,908) (180) (1,400) 3,971 Gain on deconsolidation of Kingstone - 8, Gain on sale of other assets - - 2, Income (loss) from equity method investment (143) 52 (110) Interest expense and other income, net 40 (100) (417) 81 (197) (34) (Loss) income before income taxes (13,049) (4,807) (5,450) (242) (1,545) 3,827 Income tax provision 1,240 1,910 3, Net (loss) income (14,289) (6,717) (8,550) (332) (1,739) 2,841 Add: net loss (income) attributable to noncontrolling interest 1,242 (1,054) 1, Net (loss) income attributable to ASYS (13,047) (7,771) (7,008) (53) (1,420) 3,287 EPS GAAP Diluted $(1.34) $(0.65) $(0.53) $(0.00) $(0.11) $

25 Balance Sheet Assets (in thousands) 6/30/2017 9/30/2016 (Unaudited) Assets Current Assets Cash and cash equivalents 39,160 27,655 Restricted cash 4, Accounts receivable Trade (less allowance for doubtful accounts of $1,522 and $3,730 at June 30, 2017, and 24,685 17,642 September 30, 2016, respectively) Unbilled and other 12,157 8,634 Inventories 23,186 23,223 Refundable income taxes 260 Vendor deposits 7,626 1,962 Other 2,954 2,655 Total current assets 114,439 82,924 Property, Plant and Equipment - Net 15,080 15,960 Deferred Income Taxes - Long-Term Other Assets - Long-Term 1,026 1,095 Investments 2,831 3,032 Intangible Assets - Net 3,643 4,100 Goodwill - Net 11,220 11,119 Total Assets 148, ,430 Liabilities and Stockholders Equity (in thousands) 6/30/2017 9/30/2016 (Unaudited) Liabilities and Stockholders Equity Current Liabilities Accounts payable 22,484 15,397 Current maturities of long-term debt 817 1,134 Accrued compensation and related taxes 6,450 5,710 Accrued warranty expense Deferred profit 5,449 4,709 Customer deposits 25,180 7,055 Other accrued liabilities 1,863 2,164 Income taxes payable 996 1,100 Total current liabilities 64,092 38,064 Long-Term Debt 9,732 9,097 Income Taxes Payable - Long-Term 6,520 5,930 Total Liabilities 80,344 53,091 Commitments and Contingencies Stockholders Equity Preferred stock; 100,000,000 shares authorized; none issued Common stock; $0.01 par value; 100,000,000 shares authorized; shares issued and outstanding: 13,328,656 and 13,179,355 at June 30, 2017 and September 30, 2016, respectively Additional paid-in capital 113, ,631 Accumulated other comprehensive loss (8,834) (8,876) Retained deficit (34,018) (35,830) Total stockholders equity 70,782 67,057 Noncontrolling interest (2,687) (1,718) Total equity 68,095 65,339 Total Liabilities and Stockholders Equity 148, ,430 25

26 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: equipment used in polishing and lapping Large and growing end markets; Technology driven upgrade cycle underway Solar: Multi-year technology driven capacity 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 order momentum Four consecutive quarters of bookings and backlog growth F3Q 17 record backlog/bookings of $126mn (up 44% Q/Q and 97% Y/Y) / $79.9mn (up 17% Q/Q and 166% YoY) Amtech is seeing order strength for both its tools and "turn-key" lines; its largest turn-key customer is undergoing a 1GW expansion, of which only half has been booked to date Book-to-bill ratio of 1.7x in F3Q 17 26