1 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc. Introduction to Veeco > 27 th Annual Roth Conference > March 9, 2015
1 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
Introduction to
Veeco
> 27th Annual Roth Conference
> March 9, 2015
2 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
Industry Leader in Thin Film Equipment
> Highly differentiated process equipment and
technologies that enable the manufacturing of
high-tech electronic devices
> Industry leader in MOCVD, MBE, IBD, IBE,
Single- Wafer Wet Etch and other advanced thin
film process technologies
> Operations in 10 countries on four continents
> Based in New York, with about 800 employees worldwide
TurboDisc® EPIK™700 GaN
MOCVD System
NEXUS® IBE-420Si™ Ion Beam
Etching System
WaferStorm® 3300 Single Wafer
Wet Etch Processing System
3 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
2014: Solid Execution in a Transition Year
Improved Financial Performance
Generated $42M in Cash from Operations
Revenue $392M, up 18% Bookings $510M, up 54%
Gross Margin up 3 Percentage Points
Achieved EBITDA Profitability
Successful Cost Reduction and Site Consolidation Activities
4 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
2014: Solid Execution in a Transition Year
EPIK700™ MOCVD Gained Traction in Multiple Regions
Data Storage Secured Sizeable Q4 Orders
Propel™ MOCVD Launched New Opportunity in GaN Power
GENxplor® MBE Gained Research Market Share
New Product and Business Wins
PSP Acquisition New Trajectory for Revenue & Profit Growth
5 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
Best Veeco Order
Rate since 2011
Fourth Quarter 2014 Highlights
Increase in MOCVD
and Data Storage
Generated ~$50M Cash
from Operations
Orders up >80% sequentially
to $196M
Cash and Short Term
Investments $392M
Revenue grew 22%
sequentially to $114M
6 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
MOCVD Revenue Expected to Grow in 2015
Backlighting trends
remain positive;
utilization rates recover
after seasonal downtick
LED Lighting (unit)
Penetration 5% in
2014 …
Forecasted
to be >25% by 2020
>800M LED Lamps
Shipped in 2014…
Forecasted to
grow 30% CAGR to
nearly 4B by 2020
Overall Market Trends Positive for Multi-Year MOCVD Growth
Source: LED Inside
7 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
EPIK700 MOCVD: Pulling Ahead of the Competition
> Highest productivity platform with up
to 20% improved CoO compared to
previous generations
> Designed for best-in-class uniformity
which provides greater wafer yield
> Fastest to production with easy
process transfer
> Most efficient capital investment
for maximum profitability
> All betas accepted; quick
process transfer of recipes –
in discussions for multi-unit
orders with multiple customers
Strategic Wins in 4 Key Geographic Regions
8 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
GaN Power Represents New MOCVD Growth Vector
More than 30 Industry Leaders Investing in GaN Power R&D
GaN Power Electronics Potential Customer Landscape
9 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
Power Electronics: New Growth Opportunity for MOCVD
Notes: 1) Yole Nov 2011, 2) IMS Research Feb 2012
Ga
N P
ow
er
De
vic
e M
ark
et2
($M
)
Power Electronics device market continues to grow
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
1
2011 2012 2013 2015 2018 2021
10 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
> Outstanding film uniformity, yield
and device performance
> Long campaign runs for process
development flexibility and best-in-
class low particle defects
> Modular design for ease of
configuration, operation and
maintenance…and best cost
of ownership
> Fast cycles of learning
Single Wafer 200MM System to Accelerate Industry Transition from
R&D to High Volume Manufacturing
Propel Enables Cost Effective, High Yield GaN Power Devices
11 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
“Soak and Spray” Technology
enables Single Wafer Control with
Low Cost of Batch Processing
Highly Configurable Platform
Serves Multiple Applications and
Wafer Sizes
Strong Position in Advanced
Packaging
Extends Footprint in Compound
Semi & MEMS
Significant
Overlap in Business
Opportunities
Working to Accelerate Growth
for a Robust, Highly
Profitable Business
Increased Access
to High
Growth Markets
Complimentary
Differentiated
Technology
Synergistic Combination
to Drive Growth
& Profitability
1 3
PSP: Great Fit to Support our Growth in 2015 & Beyond
2
12 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
Cleaning
Tool
Plasma
Etch
Equipment
Silicon
Thickness
Measurement
> Award received by
3DIncites as best
2.5D/3D manufacturing
equipment 2014
> Highest uniformity and
fast etch rates
CMP
4 in 1 System
Value Proposition – TSV Reveal
Veeco’s Position for Advanced Packaging Growth Opportunity
Lowest Cost of Ownership for Single Wafer Wet Processing
13 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
Single Wafer Wet Processing Gains Share in Advanced Packaging
TSV Resist
Removal &
Clean
Flux Removal &
Clean
UBM / RDL
Etch
Dry Film /
Resist Removal
Wafer Thinning
/ Stress Relieve
Today 2019
Today 2019
Today 2019
Today 2019
Today 2019
Wet
Batc
h
Dry
S
ingle
Wafe
r Wet
14 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
0
10
20
30
40
50
Q413 Q114 Q214 Q314 Q414
Gross Margin %
-20
-10
0
10
20
30
40
50
Q413 Q114 Q214 Q314 Q414
0
50
100
150
200
250
Q413 Q114 Q214 Q314 Q4140
20
40
60
80
100
120
Q413 Q114 Q214 Q314 Q414
Revenue ($M)
Veeco’s Accelerating Financial Performance
Bookings ($M)
Cash Flow from Operations ($M)
15 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
LED, Power Electronics
& Mobil Devices
Veeco’s Outlook: A Better 2015
Targeting Gross Margins
>40%
Expect EBITDA Every
Quarter of 2015
Drive Revenue Growth through Existing and New Market
Opportunities
Continued Bottom Line
Improvement
Focus on Differentiated Products & Lower Manufacturing Costs
Currently Forecasting Greater Than 30% Revenue Growth
16 | February/March 2015 Investor Overview | Copyright © 2015 Veeco Instruments Inc.
Safe Harbor
To the extent that this presentation discusses expectations or
otherwise makes statements about the future, such statements are
forward-looking and are subject to a number of risks and
uncertainties that could cause actual results to differ materially from
the statements made.
These items include the risk factors discussed in the Business
Description and Management's Discussion and Analysis sections of
Veeco's Annual Report on Form 10-K for the year ended December
31, 2013 and subsequent Quarterly Reports on Form 10-Q and
current reports on Form 8-K. Veeco does not undertake any
obligation to update any forward-looking statements to reflect future
events or circumstances after the date of such statements.