INVESTORS PRESENTATION

December 2013

Roy Porat, CEO | Moshe Eisenberg, CFO

Safe Harbor
The information presented today contains forward-looking statements that relate to anticipated future operating results and performance. These statements are only predictions based on managements current expectations and assumptions, including with respect to m arket size, Total Available Market (or TAM) and revenue targets, and necessarily involve risks and uncertainties. Moreover, our stated revenue targets are inspirational and should not be taken as projections of actual future results. We do not assume any obligation to update the information provided. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased competition in the industry, price reductions and other subsequent developments and business conditions, as well as due to risks and other important information identified in the documents filed with the Securities and Exchange Commission, including the Companys Annual Reports on Form 20-F and Reports on Form 6-K. The presentation includes non-GAAP financial measures which are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore believes it is important to make these non-GAAP measures available to the financial community. Reconciliations of non-GAAP measures to the most relevant GAAP amounts are set forth in the Appendices to this presentation. This presentation includes the companys estimations on Market size and TAM, (Total Available Market, or TAM) these estim ations can vary and may be differ materially from the reality and are based on internal estimations. TAM or market size is the company s estimation on the total yearly market size.

Camtek at a Glance
Camtek provides automated solutions for yield and process enhancement for the Semiconductor and PCB Industries
KEY METRICS* 2012
MARKET CAP REVENUE* OP. INCOME* CASH

$120M

$84M

$5.3M

$20M

NOTABLE FACTS

PRESENCE IN

CAMT
*Market cap as of Nov, 2013.

34
COUNTRIES

2800
INSTALLATIONS

ISRAEL
HEADQUARTED

500
EMPLOYEES
3

Our Business
SEMICONDUCTOR
INSPECTION & METROLOGY

PRINTED CIRCUIT BOARDS

INSPECTION 3D PRINTING

TAM: $120-150m *
Capital equipment growth rate 7-8%/year Technology driven demand Camtek is a leading player in the industrys higher growth markets (LED, CMOS Image Sensor, MEMS, Advanced Packaging)

TAM: $70-90m *
Every major PCB company in the world has multiple systems #2 Position in the market Capacity driven Business, mainly China New product offering

TAM: $600-700m *
(Ink & Tools) New product GreenJet; automated 3D printing of SM on PCB Great Ink business recurring revenue stream with high margin

Technological Trends in Our Favor

Chips likely to have been scanned by Camtek

Camteks inspection and metrology systems are used in the manufacture of the most advanced semiconductor & PCB applications

As technology increases in complexity to smaller nodes and multiple layers, the need for automated inspection grows exponentially

3D Printing technology for deposition of solder mask on PCB has the potential to revolutionize the PCB manufacturing process

Legacy Inspection Product Lines

Semiconductor Market Looks Positive

IC RECOVERY INDEX

CAMTEK TOOL SALES BY MARKET

The IC Industry enters/exits recession when index declines/surpassed zero

LAST FOUR QUARTERS

PCB

29%

IC REVENUE SHIPMENTS CYCLE FORECAST WORLDWIDE

FORECAST OF THE BUSINESS CYCLE PATTEN, NOT $ SALES

71%
SEMICONDUCTOR

Advanced Forecasting

The Segments We Serve in Semi

CMOS Image Sensor

LED

3D IC

Analog

MEMS

Memory

Semiconductor Backend Inspection

Market size estimated at $120-150m #1/#2 leading player with systems installed at leading semiconductor manufacturers Rudolph Technology (RTEC) main competitor Semi market is growing Technology driven business Very segmented: 9-10 segments:
#1 in bump and -bump technology #1 in LED #1 in CIS

We expect even higher growth rates in the segments we focus on: LED, CMOS & Packaging technology like 3DiC

Semi Growth Opportunity: LED

The world is moving to LED lighting solutions Segment is expected to grow at ~20%/y in the next 4 years Led by US energy department Detailed roadmap calls for supportive systems and developments New WW regulations support transition Camtek dedicated LED systems are already installed at 5 of the leading manufacturers PACKAGED LED REVENUE
SPLIT BY APPLICATION

Source: Status of LED Industry Report, August 2012, Yole Development

Source: EF Schubert, Light Emiting Diodes (Cambridge Univ. Press)

10

Market Leader: CMOS Image Sensor

CMOS IMAGE SENSOR SALES
SALES FORECAST BY APPLICATION (IN MILLION UNITS)

Source: Yole Development, October 2012

Why Advanced Packaging?

More functionality fits into a small space New generation of tiny but powerful devices
Need for small, powerful devices

BREAKDOWN BY INDUSTRY
12 WAFERS

Heterogeneous integration: components optimization Reduce power consumption by 10-100 times Increased functionality

More than Moore 4K - 400K bumps / die

Source: Yole Development, July 2012

12

PCB & IC Substrate Inspection

Every major PCB company has multiple systems #2 Position, main competitor is Orbotech with a wider product offering Capacity driven Business short lead-time tools made for inventory Follows the Global economy 2-5%. Chinese driven business 90% in China Market Size estimated $70-90m
PCB & IC SUBSTRATE MARKET FY2012
MARKET SIZE ESTIMATED AT $70-90 MILLION

OTHERS

11%

32%

CAMTEK

Orbotech

57%

13

3D PRINTING OF SOLDER MASK

Technology risk is behind us Growth Potential in front of us DMD GreenJet

Cost of Operation
Plot film Coat Bake Image Develop

Chemical Waste Treatment

Conventional / LDI Fab Space Labor Investment Cost Waste Treatment cost Electricity / water 3000ft 5 or 4 $1000K $$$ $$$

Camtek GreenJet 300ft 1 $300K N/A $

15

Technology Problem Statement

ALIGNMENT BETWEEN CIRCUITRY AND SOLDER MASK

CLEARANCE

SIZE OF BOARD

D=Goldx2+Green+2x Clearance

D=Goldx2+Green+2x Clearance

16

3D Solder Mask Functional Printing

Total Available Market *
Ink $500-600M Systems $100-150M ( current spending on Analog Technology)

Where are we
Following delays, we overcame development and system related issues
Stable working window of ink, heads and the application Current tasks are engineering in mature.

First beta testing will start in 6-7 weeks

We control the technology We have Global qualification Started initial samples for customers.

Operational preparation for product launch

* Camtek estimates

17

Financial Highlights
REVENUES LAST FOUR QUARTERS
US$ MILLIONS Q4 Guidance

$23-25m

17.6

18.1

22.3

21.7

Break even point reduced to $1719m/quarter Market direction is turning positive

Q4 2013E

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Growth expected in 2014

Strong balance sheet and cash generation in 2013 Net cash of $20m at Q3-end.

NET INCOME LAST FOUR QUARTERS

US$ MILLIONS

0.99 0.24
Q4 2012 Q1 2013 Q2 2013

0.55
Q3 2013 Q4 2013E

-0.74

18

Investment Highlights
Valuation
Market Cap: $120m Net Cash: $20m EV: $100m

Financials
12 Revenue: $85m 12 Op. Income: $5.3m 13 Revenue Exp.: ~$85m

Key Growth Drivers:

Expectations for good 2014 in semi Electronics market growth and new technologies

3D printing opportunity

Strong Core with Significant Growth Opportunities

19

Thank You

Appendix A: GAAP Results

Financial Results*
Annual Quarterly 2012 Quarterly 2013

(US $ in Millions)

FY 2011
107.1 47.4
44.3%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Revenues
Gross Profit
Gross Margin

18.2 7.6
42%

25 12.1
48.2%

23.7 11.4
48.1%

17.6 6
33.8%

18.1 8.2
45.4%

22.3 9.8
44.1%

21.7 9.7
44.6%

R&D SG&A

14.1
13.2%

3.3
18.3%

3.3
13%

3.2
13.7%

3
17.2%

3.6
20.2%

3.6
16%

3.5
16.1%

24.3
22.7%

5.4
29.9%

5.5
22%

5.0
21.2%

5.2
29.4%

4.7
26%

5.3
23.7%

5.6
25.7%

Operating Profit (loss)

Operating Margin

9
8.4%

(1.1)
(-6.2%)

3.3
13%

3.1
13.2%

(5.4)
(-30.4%)

(0.2)
(-0.8%)

1.0
4.46%

0.6
2.76%

*On a GAAP basis Copyright of Camtek Ltd. 2012 All rights reserved