GTAT_Corporate_Overview

GT Advanced Technologies 

Corporate Overview 

January 2014 

©2013 GTAT Corporation. All rights reserved.

Forward Looking Statement 

• This presentation contains information about 

management’s future expectations, plans and 

prospects of our business that constitute forwardlooking 

statements for purposes of the safe harbor 

provisions under The Private Securities Litigation 

Reform Act of 1995. 

• Please see final slide for additional information 

regarding these statements. 

©2013 GTAT Corporation. All rights reserved. 

2

GT Advanced Technologies Overview 

Provider of advanced materials & innovative crystal growth equipment for a 

diversified set of high-growth markets 

Company Overview 

• GT Advanced Technologies (“GT”) is a 

diversified capital equipment maker 

supplying leading crystal growth 

technologies & process tools 

– Serves the high growth global LED, 

consumer electronics, power 

electronics and solar industries 

– A market share and technology 

leader in each of its served markets 

Significant Growth Forecast In 

Served Markets 

LED & 

Industrial 

Consumer 

Electronics & 

Non-LED 

Power 

Electronics 

• Building a sapphire materials business to 

drive recurring revenues and take 

advantage of industry leading cost 

structure 

Solar 

~100% of revenue 

in CY2010 

©2013 GTAT Corporation. All rights reserved. 3

GT’s Diversifying Product Portfolio 

New products are expected to further diversify the business & drive growth 

GT’s Equipment Products 

Select Applications 

Consumer 

Electronics 

& Non-LED 

ASF® Systems Inspection Inspection Sys. Annealing GaN HVPE 1 

ASF® Systems Inspection GaN HVPE 1 

Hyperion Ion 

Implant 1 

Display 

Applications 

LED & 

Industrial 

Low Cost LEDs 

Power 

Electronics 

Solar 

SiClone 

Silicon 

Carbide 

Systems 

SDR 

Reactors 

DSS 

HiCz 

Mono 

Systems 1 

Thin substrate 

solution targeted 

to deliver value 

across core and 

new markets 

Power Systems for 

Electric Vehicles 

High Efficiency 

Solar Panels 

Note 1. Annealing, GaN HVPE,, HiCz and Hyperion products in development 


4

Served Markets 

GT’s Evolving Business Model Drives Growth 

Combination of advanced equipment technology and new materials business to accelerate growth 

Consumer 

Electronics & 

Non-LED 

LED & 

Industrial 

• Opportunity to grow GT’s 

LED sapphire business 

• Potential to add other 

materials platforms 

Power 

Electronics 

Advanced Solar 

• Base equipment growth 

fueled by new products 

• Growing market opportunities 

Foundation of 

core products & 

equipment revenues 

• Market leading ASF ® platform 

• Large scale 

• Supply chain leverage 

• Expert team 

• Low cost structure 

Sapphire 

materials business 

New growth opportunities in 

LED sector and as a 

materials player in other 

segments 


Financial Overview 


$MM 

$MM 

Historical Financial Performance 

GT has established a foundation for future growth through its diversification strategy 

Revenue, 

Non-GAAP Gross Margin (%) 

Non-GAAP EPS Fully-Diluted, 

Net Income 

$1,000 

$900 

$800 

$700 

$600 

$500 

40% 

$488 

$822 

41% 

$874 

45% 

$734 

38% 

50% 

45% 

40% 

35% 

30% 

$200 

$180 

$160 

$140 

$120 

$164 

$1.13 

$182 

$1.41 

$88 

$2.00 

$1.50 

$1.00 

$400 

$300 

$200 

25% 

20% 

$100 

$80 

$60 

$79 

$0.54 

$0.73 

$0.50 

$100 

15% 

$40 

$0.00 

$0 

CY09 CY10 CY11 CY12 

10% 

$20 

Sapphire $0.0 $8.9 $54.7 $224.0 

Polysilicon $228.2 $194.9 $288.6 $460.6 

PV $259.9 $618.2 $530.2 $48.9 

$0 

CY09 CY10 CY11 CY12 

-$0.50 

Non-GAAP Gross 

Margin % 

40% 41% 45% 38% 

Non-GAAP Net Income 

Non-GAAP EPS Diluted 


Reported Backlog Profile (as of September 28, 2013) 

($ in millions) 

$800 

$700 

$600 

$500 

$658M Backlog 

$355 

Backlog Profile 

$62 

$90 

$4, Letters 

of Credit 

$400 

$300 

$502 

$200 

$100 

$0 

$301 

PV Poly Sapphire 

PV, $2 

Deferred Revenue (already shipped) 

Letters of Credit 

Non-Refundable Customer Deposits 

Balance of Unshipped Orders 

Note: Certain amounts in the above chart may not sum due to rounding 


Solid Balance Sheet, Continued Commitment to R&D 

Solid Balance Sheet 

Supports Targeted 

Investment 

Leaner Operations, 

Targeted M&A Program 

To Preserve Balance 

Sheet 

Focused R&D 

To Drive Organic 

Growth/Diversification 

$375 

$325 

$275 

$225 

$175 

$125 

$75 

$25 

-$25 

Cash Position 

($ millions) 

$258 $261 

As of Q3CY13 

Growth & 

Diversification 

Increased 

Shareholder Value 

$80 

$70 

$60 

$50 

$40 

$30 

$20 

$10 

$0 

R&D Spending 

($ millions) 

$78.7 

$70.6 

$42.6 

CY11 CY12 LTM 

Cash and Cash Equivalents 

Debt 

LTM as of September 28, 2013 


9

Sapphire Business 


Sapphire Business Snapshot 

Primary Products 

• Crystal Growth 

Technology: ASF®, KY 

• Automated sapphire 

inspection tools 

• Annealing technology 

• Sapphire materials 

Market Position 

• Market Leader; several 

hundred ASFs in the field 

• Establishing non-LED 

sapphire materials business 

• Driving technical 

innovation, cost reduction 

& new markets 

End Markets 

• LED backlighting and 

general illumination 

• Non-LED devices 

• Medical, Aerospace, 

Military, Industrial 

Select Segment 

Financials 

•Backlog 2 : $355M 

•LTM Revenue 2 : $35M 

1 –In development 2 - As of 9/30/13 


Sapphire Business Overview 

GT is a leading provider of sapphire production equipment solutions and 

sapphire materials for a growing number of end market applications 

Sapphire Equipment Business 

GT offers market-leading equipment solutions 

that increase yields and lower costs, including: 

• A variety of sapphire growth systems, 

including the market leading ASF® 

sapphire growth furnace 

• Automated sapphire inspection tools 

• Annealing furnace 

Sapphire Materials Business 

GT produces high-quality sapphire materials 

for a wide variety of markets including 

optical, photonics, POS and Ti:sapphire. 

• In Nov 2013, GT signed a multi-year 

sapphire materials supply agreement 

with a leading OEM which is expected to 

to provide GT with a platform for 

recurring sapphire materials revenues 


What is Sapphire? 

• Sapphire is a single crystal 

Al 2 O 3 (Alumina) 

• Recognized for its high optical 

performance and mechanical 

strength 

A boule of single crystal sapphire 

• Used in a wide range of 

applications: LED substrates, 

aerospace, armor, photonics, 

dental, lasers, non-LED 

electronics 

Because of its strength and optical purity sapphire is used 

in a wide range of applications 


13

The ASF ® Sapphire Growth Platform 

GT’s proprietary ASF solution is built upon 40+ years of technical innovation 

• GT’s ASF ® sapphire growth platform delivers 

high system throughput, high productivity and 

low cost of ownership 

• ASF technology can be used to grow high 

quality sapphire for use in a variety of markets 

including LED, industrial, medical & non-LED 

• GT is accelerating the development of its next 

generation, large capacity ASF furnaces to 

deliver low cost, high volume manufacturing of 

sapphire material 

Heat extraction 


Sapphire Business Drivers 

Sapphire business is expected to be a key driver of GT’s business in 2014 

• Overall sapphire market conditions have 

continued to improve 

• Sapphire demand/pricing has shown 

strength driven largely by LED general 

lighting and the emerging use of sapphire in 

new applications 

• GT’s ASF® customers continue to operate 

at high utilization rates 

• GT’s expanding sapphire materials 

business is expected to provide a recurring 

revenue stream and contribute to GT’s 

diversification 


Solar Businesses: PV and Polysilicon 


Photovoltaic (PV) Business Snapshot 



• DSS Ingot Growth Systems 

(DSSMonoCast, 

DSS450, DSS450HP, 

DSS650, DSS850) 

• HiCz Monocrystalline 

Growth Systems 1 

• Market Leader ≈3400 DSS 

in the field 2 

• Enabled top PV players in 

the world 

• Driving critical transition to 

Cz systems (HiCz) 

DSS650 

• Solar 

End Markets 


Financials 

•Backlog 2 : $2M 

•LTM Revenue 2 : $27M 

HiCz 



PV Business Overview 

Focused on enabling improved economics & efficiencies for PV manufacturing 

• Market Leader with >3300 DSS Systems in the field 

– Majority of the world’s multicrystalline silicon wafers 

are produced from ingots grown in GT’s DSS 

• Driving critical transition to higher efficiency, n-type 

monocrystalline materials with HiCz 

– HiCz is GT’s next-gen monocrystalline PV furnace 

– Optimized to produce N-type silicon wafers that 

enable high conversion efficiency cells 

– In development for availability in late 2014 

DSS450 

HiCz 


PV Business Q3CY13 Update 

• Encouraged by improving fundamentals in 

the solar market. However, GT believes 

the next major PV capital equipment cycle 

is not likely to begin until late 2014 at the 

earliest 

• Continue to advance HiCz n-type material 

solution 

– Demonstrated HiCz’s unique capability 

to grow high quality 10-meter long 

ingots (3-4x length of typical batch Cz 

process) 

HiCz puller (above) 

HiCz ingot (below) 

• HiCz market introduction targeted for late 

2H 2014 


Polysilicon Business Segment Snapshot 


• SDR reactors for 

polysilicon growth 

• Hydrochlorination, TCS & 

Silane Equipment 

• Engineering services 


• Market Leader; >300 

reactors in the field 2 

• Established merchant 

market in 2006 

• Enabled OCI Top 3 

polysilicon producer 

End Markets 

• Solar (primary) 

• Semiconductor 

• Chemicals 


Financials 

• Backlog 2 : $301M 

• LTM Revenue 2 : $307M 



Polysilicon Business Overview 

GT is the established polysilicon merchant market leader 

• GT is a leading provider of key polysilicon 

equipment and technologies including: 

– SDR Reactors (>300 shipped 1 ) 

– Hydrochlorination TCS equipment & 

services 

• GT’s best-in-class polysilicon 

solutions can enable profitable 

polysilicon operation of 60% energy savings 

compared to SDR100 

1- As of Sep 30, 2013 

*This is for informational purposes only and contains forward-looking statements for the purposes of the Safe Harbor provisions. The 

Company reserves the right to modify or delete elements of its development plan and is under no obligation to update such plans. 

©2012 ©2013 GTAT Corporation. All rights reserved. 

21

Polysilicon Business Q3CY13 Update 

• Remain optimistic about long term poly 

opportunities 

– Pipeline continues to develop 

– Supply and demand are coming into 

balance 

– Expect poly pricing to stabilize over 

next 6-9 months 

– China’s preliminary ruling on silicon 

tariffs favorable for GT’s largest 

customers 

• While polysilicon opportunities exist, GT 

does not expect increase in bookings until 

2015; polysilicon revenues likely to remain 

light through 2014 


Hyperion Ion Implanter Technology 

Targets production of thin substrates with negligible kerf loss and lower consumable cost 

Potential benefits of Hyperion Ion Implanter: 

• Reduced material costs 

• Elimination of grinding/thinning processes 

• Potential for creation of advanced multi-layered substrates 

Competitive Advantages: 

• Targeted to be highest power/throughput commercial ion implanter 

• Hyperion has 30 issued patents (US) and 30+ pending (US & Intl) 

Targeted Applications: 

• Thin sapphire laminates 

• Thin solar wafers 

• SiC exfoliates 


Hyperion Business Update 

• GT acquired the Hyperion technology in 

November 2012 

• GT has made significant progress across 

several applications, including: 

– Producing ultra-thin silicon wafers 

– Developing low cost composite glass 

and thin sapphire structures 

– Thin, relatively inexpensive, SiC wafer 

Pre-production Hyperion tool in Danvers, 

MA Development Lab 

• Pre-production Hyperion tool is in operation in GT’s development lab 

• Targeting Hyperion market availability in 2015 

• GT believes that the Hyperion business, once mature, could rival the 

size of GT’s PV business at its peak 


HVPE - Path to Low Cost LED Manufacturing 

HVPE positions GT to participate in downstream LED manufacturing process 

• HVPE equipment is expected to 

produce GaN templates w/ higher 

quality, lower cost 

• GT is developing a high-volume 

production tool HVPE process 

• GT has continued to receive very 

positive feedback on HVPE from 

market leaders, LED 

manufacturers 

• Targeting commercial availability at 

back end of 2014; expect revenue to 

ramp gradually starting in 2015 

Hydride Vapor Phase Epitaxy (HVPE) 

system currently in development 

Key differentiators: 

• >80% reduction in precursor 

costs vs. traditional MOCVD 

• Uniform multi-wafer via 

proprietary injector system 

• In-situ cleaning 

© 2013 GT AT Corporation. All Rights Reserved. 25

ASF® 

MOCVD 

HVPE – Breakthrough Value 

Current Process - MOCVD Only 

pGaN 

pAlGaN 

HVPE+MOCVD 

pGaN 

pAlGaN 

ASF® HVPE MOCVD 

MQWs 

MQWs 

SLS 

nGaN 

uGaN 

SLS 

nGaN 

Nucleation/Transition Layer 

Sapphire 

Sapphire 

Benefits of HVPE 

• Helps drive ~25% reduction in the Epi stack cost 

(Higher growth rates, lower consumable/precursor costs) 

• Increases LED quality (thicker/less defective nGaN layer) 

• Significantly increases throughput/ reduces Capex for MOCVDs 


HVPE Solution Lowers CAPEX Expense 

GT HVPE solution expected to lower CAPEX up to 25% 

HVPE 

With HVPE 

MOCVD 

Without HVPE 

MOCVD 


Silicon Carbide (SiC) Sublimation Technology 

• No other capable SiC merchant 

equipment suppliers 

• GT released its first generation silicon 

carbide sublimation furnace in Q2 2013 

and is developing differentiated process 

recipes that will provide a path to 

producing lower cost SiC 

– Targeting 4” solution release in 1H14; 

6” solution by end of 2014 

• Expect SiC business will ramp slowly 

given long design-in cycles for new 

power devices 

• Longer-term, growth opportunity is in 

pairing SiC with Hyperion technology 

SiC is a high-temperature 

semiconductor material used in 

power electronics devices 

GT SiClone sublimation furnace (above) 

GT-grown SiC boules (below) 


28

Next-Gen Solar Update 

• New technologies that drastically lower the cost of solar 

manufacturing are key to sustained solar industry recovery 

• In addition to HiCz, GT continues to work on advanced 

Polysilicon reactors & other technologies not yet disclosed 

• As solar industry returns to health, GT expects to play an 

important role in helping customers lower cost throughout 

the process of manufacturing solar cells 


GT’s Business Model 

SERVED MARKETS 

Potential Expansion Opportunities 

Thin Wafers , Composites, Consumables 

Materials Business 

Sapphire Materials 

Consumer 

Electronics 

LED Manufacturing 

Technology & Know-how Transfer 

Industrial/ Military 

Crystal Growth 

Si, SiC, GaN, Sapphire 

Thin Wafer Tech. 

Hyperion, Bonding 

Power Electronics 

Equipment Business 

Advanced Solar 

LED Mfg. Tools 

HVPE, PVD 

Process Tools 

Anneal, Inspect, etc. 


Thank You. 

Investor Relations Contact: 

Ryan.Flaim@gtat.com 

Media Contact: 

Jeff.Nestelpatt@gtat.com 


Forward Looking Statements 

Certain of the information in this presentation relates to the Company’s future expectations, plans and prospects for its business and industry that constitute "forward-looking 

statements" for the purposes of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to: the Company serves several highgrowth 

markets; Company is actively diversifying into new growth markets including next-gen solar, consumer electronics and power electronics; Company’s strong balance 

sheet supports targeted investment; Company is targeting leaner operations and targeted M&A program (to preserve balance sheet); Company will continue focused R&D (with 

intention to drive organic growth/diversification); Company intends to grow and diversify and increase shareholder value; Company positioned as the total solution for high 

volume sapphire manufacturing; potential future applications for sapphire material; LED market environment is improving; sapphire is expected to be the key driver of the 

Company’s business in 2H 2013 and through 2014; Company remains confident in ability to expand sapphire business into non-LED markets; Company confident that ASF 

shipments and orders will resume in second half of the year based on LED and non-LED opportunities; Company’s innovation in polysilicon business drives market leadership; 

future performance metrics for Gen 7 polysilicon reactor and targeting further future improvements (including with respect to output and energy consumption); the Company 

having good visibility with respect to polysilicon revenue for the second half of 2013; polysilicon business’ order pipeline and backlog will drive polysilicon revenues over next 

several years; there are projections of tightening polysilicon supply; China’s ruling on polysilicon imports will be favorable to the Company; Company’s PV business is driving 

critical transition to higher efficiency, n-type monocrystalline materials with HiCz; HiCz optimized to produce N-type silicon wafers that enable high conversion efficiency 

cells; HiCz in development and will be available in late-2014; Company has continued success in converting DSS inventory to cash, albeit at low gross margins; Company 

continues to make progress with HiCz tool; China’s commitment to increase domestic PV consumption; the next PV investment cycle will likely begin in late 2014/early 2015; 

Company expects SiC business to ramp slowly and, in the longer-term, the higher growth opportunity with SiC is in pairing it with Company’s Hyperion technology; Hyperion tool 

broadens potential applications by allowing high productivity at high film thickness; Company expects to take Hyperion technology to market in 2015; HVPE tool is expected to 

lower the cost of LED production; HVPE will allow producers to better utilize their existing MOCVD capital assets, lower consumable costs and reduce cycle times; Company is 

intending to grow based upon a diversified foundation; future product releases by the Company (and timing of product introductions); Company’s product roadmap; Hyperion is 

targeting to drive performance/value advancements in several applications; Company’s financial guidance (including expected ranges of financial results) related to the calendar 

year 2013 with respect to: revenue, gross margins, total operating expenses, R&D expenses, capital expenditures, non-GAAP earnings per share, and cash and cash 

equivalents (at December 31, 2013); Company is driving technical innovation, cost reductions and new markets in sapphire industry; HiCz is targeted to enable critical move to 

higher efficiency; cost per good kg Si produced and cell efficiency based on several technologies; and HiCz is targeted to enable 22%+ cell efficiencies which will be critical in 

reducing total system costs ($/watt). These forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many 

of which are outside the Company's control, which could cause actual events to differ materially from those expressed or implied by the forward looking statements. These 

factors may include the possibility that the Company is unable to recognize revenue on contracts in its order backlog. Although the Company's backlog is based on signed 

purchase orders or other written contractual commitments in effect as of the end of our fiscal quarter ended June 29, 2013, we cannot guarantee that our bookings or order 

backlog will result in actual revenue in the originally anticipated period or at all, which could reduce our revenue, profitability and liquidity. Other factors that may cause actual 

events to differ materially from those expressed or implied by our forward-looking statements include the impact of continued decreased demand and/or excess capacity in the 

markets for the output of our solar and sapphire equipment, general economic conditions and the tightening credit markets having an adverse impact on demand for the 

Company’s products, trade disputes involving China, limited sales of PV equipment products, the possibility that changes in government incentives may reduce demand for solar 

products, which would, in turn, reduce demand for our equipment, technological changes could render existing products or technologies obsolete, the Company may be unable to 

protect its intellectual property rights, competition from other manufacturers may increase, exchange rate fluctuations and conditions in the credit markets and economy may 

reduce demand for the Company's products and various other risks as outlined in GT Advanced Technologies Inc.'s filings with the Securities and Exchange Commission, 

including the statements under the heading "Risk Factors" in the company's quarterly report on Form 10-Q for the quarter ended June 29, 2013. Statements in this presentation 

should be evaluated in light of these important factors. The statements in this presentation represent GT Advanced Technologies Inc.'s expectations and beliefs as of the date 

hereof. GT Advanced Technologies Inc. anticipates that subsequent events and developments may cause these expectations and beliefs to change. GT Advanced Technologies 

Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, 

or otherwise. 


Non-GAAP Financial Measures 

GT Advanced Technologies Inc. 

Reconciliation of GAAP to non-GAAP results 

(In thousands, except per share data) 

(Unaudited) 

Non-GAAP Gross Profit and Gross Margin 

Twelve Months Ended 

December 31, December 31, January 1, December 26, 

2012 2011 2011 2009 

Revenue $733,536 $873,442 $822,033 $488,113 

Cost of revenue 527,132 482,106 487,831 302,742 

Gross profit 206,404 391,336 334,202 185,371 

Non-GAAP adjustments: 

Write-down of inventory and vendor advances 71,754 - - 11,587 

Accelerated depreciation for early retirement of fixed assets 2,520 - - - 

Non-GAAP gross profit $280,678 $391,336 $334,202 $196,958 

Non-GAAP gross margin 38.3% 44.8% 40.7% 40.4% 


Non-GAAP Financial Measures 

Non-GAAP Net Income & Earnings per Share 

Twelve Months Ended 

December 31, December 31, January 1, December 26, 

2012 2011 2011 2009 

Net income ($63,235) $156,218 $156,132 $65,743 

Non-GAAP adjustments: 

GT Advanced Technologies Inc. 

Reconciliation of GAAP to non-GAAP results 

(In thousands, except per share data) 

(Unaudited) 

Amortization of acquired intangible assets 10,165 6,630 4,313 3,163 

Share-based compensation expense 15,176 13,118 7,531 4,806 

Third party acquisition related expenses 1,550 3,574 785 - 

Write-down of inventory and vendor advances 71,754 - - 11,587 

Accelerated depreciation for early retirement of fixed assets 2,520 - - - 

Impairment of goodwill 57,037 - - - 

Restructuring charges and asset impairments 33,441 - - - 

Contingent consideration (income) expense (8,965) 5,193 1,000 - 

Non-cash portion of interest expense 3,799 9,942 652 360 

Income tax effect of non-GAAP adjustments (1) (35,349) (12,989) (6,900) (7,064) 

Non-GAAP net income $87,893 $181,686 $163,513 $78,595 

Non-GAAP earnings per diluted share ("Non-GAAP EPS") $0.73 $1.41 $1.13 $0.54 

Diluted weighted average shares outstanding 120,067 128,680 145,150 145,034 

(1) The Company utilized the with and without method to determine the income tax effect on non-GAAP adjustments. 


Use of Non-GAAP Financial Measures 

In addition to providing financial measurements based on generally accepted accounting principles in the United States of 

America (GAAP), GT Advanced Technologies is providing additional financial metrics that are not prepared in accordance with 

GAAP (non-GAAP). We believe that the inclusion of these non-GAAP financial measures helps investors to gain a meaningful 

understanding of our past performance and future prospects, consistent with how management measures and forecasts 

company performance, especially when comparing such results to previous periods or forecasts. Our management uses these 

non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and 

comparing our performance to prior periods and to the performance of our competitors. Management also uses these 

measures in its financial and operational decision-making. 

We define “non-GAAP gross profit” as GAAP gross profit excluding inventory and vendor advance write-downs and the 

accelerated depreciation for early retirement of fixed assets. We consider non-GAAP gross profit to be an important indicator of 

our operational strength and performance of our business because it eliminates the effects of events that are not part of the 

Company's core operations. 

We define "non-GAAP net income" as GAAP net income excluding share-based compensation expense, amortization of 

acquired intangible assets, acquisition and acquisition related expenses, contingent consideration, inventory and vendor advance 

write-downs, goodwill impairment, restructuring and asset impairment, and the non-cash portion of interest expense. We consider 

non-GAAP net income to be an important indicator of our operational strength and performance of our business because it 

eliminates the effects of events that are not part of the Company's core operations. 

We define "non-GAAP earnings per share on a fully-diluted basis" as our non-GAAP net income divided by our weighted average 

shares outstanding on a fully-diluted basis.

GTAT_Corporate_Overview

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