Intevac Investor Presentation Stifel 2020 Virtual Cross Sector Insight Conference June 8, 2020 Wendell T. Blonigan James P. Moniz Chief Executive Officer Chief Financial Officer POWERING INNOVATION. DELIVERING VALUE. PROPRIETARY PROPRIETARY Stifel 2020 Investor Presentation_ 1
Cautionary Disclaimer During the course of this presentation, we will comment upon future events and may make projections about our future financial performance, including statements related to strategies, our expected sales, product shipments and acceptance, gross margin, operating expense, profit, cash flow, income tax expense, and capital allocation. We will discuss our business strategy, our products, the markets our products address, our position in those markets, expected market acceptance of those products and production capacity. We wish to caution you that these are forward looking statements that are based upon our current expectations, and that actual results could differ materially as a result of various risks and uncertainties, including, without limitation, the following: inability to develop and deliver new products as planned; inability to accurately forecast the demand for our products and services; the possibility that orders in backlog may be cancelled, delayed or rescheduled; inability to achieve gross margin and expense goals; and other risk factors discussed in documents filed by us with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to update the forward-looking statements made during this presentation. PROPRIETARY Stifel 2020 Investor Presentation_ 2
Providing Enabling Technology to Important Markets Intevac is an Essential Business with a Solid Financial Foundation Thin-Film Equipment Photonics Integrated Digital Night Digital Night Mobility Clean Energy Cloud Night Vision Vision for Vision and the for Gen 5 Individual & Advanced Computing Cameras for Internet of Heads Up Ground Semi. Pkg. and Storage Aviation Things Displays Soldier Critical Supplier of Digital Vision Systems Addressing Multiple Large Growth Industries Both Photonics and TFE are Essential Businesses Serving the Critical Defense and IT Industries PROPRIETARY Stifel 2020 Investor Presentation_ 3
Photonics: Intevac’s Proprietary Digital Night Vision Intevac’s Digital Night Vision High-Definition Night Technology Enables: Vision - High-Definition Night Imagery - Complete Augmented Reality Capability - Information Overlay - Image Enhancement and Transmission - Fused Infrared and Low Light Imagery Analog Point Source - Low-Halo Operation “Halo” Augmented Reality Overlay Warfighter View, Image Enhancement, and Fused Night Vision and IR Transmission PROPRIETARY Stifel 2020 Investor Presentation_ 4
Beneficiary of Major Contract Award for IVAS Program US Army’s IVAS: Integrated Visual Augmentation System • First Dismounted Soldier System that Requires Digital Night Vision • Body-Worn Sensors Support Soldier Performance in All-Digital Day/Night System Awards for 2 Night Vision Camera Development Programs • CMOS Development Award is a Low-Cost/Small Form Factor Low Light Level Camera System • CMOS with Gain Development Award Provides State of the Art Intensified Night Vison Capability • Both Development Programs Leverage Intevac’s ISIE-19 Sensor Currently Under Development Significant Program to be Delivered Through 2021 • $31.5 Million Award Includes Development and Camera Module Units • Over 200,000 Camera Unit Potential Once Fielded to the Dismounted Soldier (100,000 IVAS Systems) PROPRIETARY Stifel 2020 Investor Presentation_ 5
Photonics: Solid Core Business, Significant Growth Opportunities, No Impact from COVID-19 Aviation Night Vision Cameras Integrated Night Vision Ground Soldier Night Vision Apache Helicopter Dismounted Ground Soldier F-35 HMD Joint Strike Fighter “IVAS” Digital Night Vision LIVAR F-16 Falcon Eurofighter BAE STRIKER II HMD Aviation Night Vision >$350M Ground Soldier NV >$500M Integrated Night Vision >$500M $2 $37 $90 $69 $173 $39 $224 $372 $428 Last 5 Yrs. Revenue (2014-2018) Next 5 Yrs. Revenue (2019E-2023E) Revenue Opportunity Beyond 2023 PROPRIETARY Stifel 2020 Investor Presentation_ 6
IVAS Program Potential Can Double 5-Year Revenues Photonics Revenue Drivers ~60% of Revenue Over Last 5 Years $350 Driven by Apache and Funded R&D $300 Continued Revenue Pipeline Contribution from Avionics Programs over Next 5 Years $250 • Apache Upgrades and FMS PHOTONICS REVENUE ($M) • LIVAR Program Sustainment and Upgrades $200 • Growing Joint Strike Fighter Program • Increased Contribution from BAE/EVA/NAVAIR $150 Significant Incremental Revenue Opportunity with IVAS $100 • Provides Potential to Double Photonics Revenues over Next 5 Year Time Window $50 $1B of Long-Range Revenue Opportunity Identified Beyond 2023 $- • Together Comprising ~$1.4 Billion of Revenue 2014-2018 2019-2023 Opportunity Last 5 Years Next 5 Years Contract R&D & Other Apache LIVAR JSF BAE/EVA/NAVAIR Ground Forces PROPRIETARY Stifel 2020 Investor Presentation_ 7
Thin Film Equipment: Solid Core Business, Significant Growth Opportunities Common Core Technologies: • High-Productivity Systems Adjacent Adjacent • Small Substrate Processing Markets Markets • High Precision Films with Low CoO MATRIX Advanced Semi Packaging, Advanced Semi Packaging, Solar PVD and Implant, and Emerging Solar PVD and Implant, and Emerging Markets Currently Serving: Markets Offer Additional Growth Potential Markets Offer Additional Growth Potential • HDD Media • Display Cover Panel Display Cover Panel Market Display Cover Panel Market • Solar Cell VERTEX Future Markets Include: • Advanced Packaging Protective and Decorative Coatings Protective and Decorative Coatings • Protective Coatings • EMI Shielding • MRAM Large Incremental Revenue Opportunity Addressing Large Incremental Revenue Opportunity Addressing Demand for More Robust, More Durable, and More Demand for More Robust, More Durable, and More Visually Differentiated Mobile Handsets and Other Visually Differentiated Mobile Handsets and Other Devices Devices 200 Lean Hard Disk Drive Media Market Hard Disk Drive Media Market Stable, Profitable Business Serving Ongoing Technology and Stable, Profitable Business Serving Ongoing Technology and Future Capacity Needs Supporting the Growth of Cloud-Based Future Capacity Needs Supporting the Growth of Cloud-Based Data Storage Data Storage PROPRIETARY Stifel 2020 Investor Presentation_ 8
HDD Media: Growth is Driven by Nearline Storage Storage Shipped on HDDs in 2024 will Triple from 2019 Levels Total Industry Exabyte Shipments: HDDs+SSDs 3,000 2,500 2,000 32% CAGR 1,500 1,000 500 - 2019 2020E 2021E 2022E 2023E 2024E Desktop HDD Mobile HDD CE HDD Traditional Enterprise HDD Nearline HDD Client SSD Enterprise SSD PROPRIETARY Stifel 2020 Investor Presentation_ 9 Source – TrendFocus Feb. 2020
Q1’20 Data Center/Nearline Demand Drove Record Tie Ratio Strong Data Center in COVID-19 Era Driving Sharp Increase in Media Units YoY Average # of Disks per Drive Total Industry Exabyte Shipments vs. Forecasted Media Units 3.5 3,000 1,300 1,200 3.0 2,500 Additional Additional Exabytes Shipped on HDDs and SSDs 1,100 2.5 Capacity Capacity Required Required >80% >80% 2,000 Capacity Capacity 1,000 by Q4 by Q4 HDD Media Units 2.0 1,500 900 1.5 800 1,000 1.0 700 500 0.5 600 - - 500 2014 2015 2016 2017 2018 2019 Q1 2020 2019 2020E 2021E 2022E 2023E 2024E Actual Total HDD Exabytes Total SSD Exabytes Media Forecast Current Media Capacity Source – 2020 media unit est. from TrendFocus May 8, 2020. Long-Range media unit estimates, and HDD and SSD exabytes, from TrendFocus February 2020. PROPRIETARY Stifel 2020 Investor Presentation_ 10
Display Cover Panel: Mobile Device Trends Breakage reduction Glass / PET / Ceramic 3D contoured front and back Foldable Phones but easy to scratch cover – all-glass look Backside with decorative coatings Market Needs • Enhanced scratch resistance along with improved breakage performance • Differentiated and uniquely patterned decorative coatings • 3D Edge coverage for all coatings • Scratch protection for plastic display • High film performance-to-cost ratios PROPRIETARY Stifel 2020 Investor Presentation_ 11
Display Cover Panel: VERTEX Protective Coatings Next-Generation Optical Diamond-Like Carbon: Mobile Phones Auto - DiamondClad ™ Infotainment Tablets • Sapphire-like scratch performance at a fraction of the DiamondClad ™ price Applications - Passes Mohs 7 Scratch Testing vs Mohs 5 for Glass + AF • >10x improved scratch resistance High-Volume / High-Growth Markets - vs Glass + AF • No scratching under 150 Grit Sandpaper 10N load testing • Lowest cost anti-scratch solution Wearables POS Stations Relative Scratch Protection 350 300 # Passes to Scratch 250 200 150 100 50 0 Glass + AF Glass + oDLC + AF Glass + Scratch profile measured after scratching with 150 grit sandpaper under 10N load DiamondClad + AF Stainless Steel Ball @ 7.5N Force – 10 cycles / min PROPRIETARY Stifel 2020 Investor Presentation_ 12
Recommend
More recommend
