company update - cvd equipment corporation€¦ · market for tantalum surface treatment. global...

enabling tomorrow’s technologies™© 2018 CVD Equipment Corporation | All rights reserved

Company UpdateAugust 2018NASDAQ: CVV


Safe Harbor Statement

Certain statements in the following presentation relate to future results that are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those noted in our forms 10-K, 10-Q, and other filings with the SEC.

This presentation includes historical and forward-looking ProForma information. The Company assumes no responsibility to update the information contained in this presentation.

enabling tomorrow’s technologies™

© 2018 CVD Equipment Corporation | All rights reserved

enabling tomorrow’s technologies™

At a GlanceNASDAQ:CVV

FOUNDED1982

HEADQUARTERSCentral Islip, NY

I. Infrastructural activities to

support growth

II. Product line expansion in

equipment and materials

groups

III. Market and application focus


Innovation leader since 1982 Equipment, Thin Films, Coatings, and Surface

Modification Equipment Design and Development Production Scale Manufacturing Installation, Start-up, and Operational Service

Material Coating & Surface Treatment Robust coatings and treatments for corrosive

and demanding applications Carbon and Ceramic Matrix Composite bulk

material Process, Applications, Research & Development

Nanomaterial Research Equipment Optimization Customer Process Development Services Funded Research Collaboration

How we enable tomorrow’s technologies


Our Company, Products, and ServicesR&D CVD Process

Systems

Corporate Headquartersand Parent Company

Equipment Operations

Ultra High Purity (UHP) Gas & Chemical Delivery Systems

Anti-Corrosion Tantalum Surface Treatment

Advanced R&D, Pilot, and Volume Production CVD

Process Systems

Electronic Materials

Advanced Industrial Manufacturing CVD Process Systems Wholly Owned Subsidiary of

CVD Equipment CorporationMaterials & Services

Operations

Direct Write Thermal Spray (DWTS) Technology

Ceramic/Carbon Composites

Quartzware Fabrication

AIM

Growth focus in each product group and service area


CVD Heading into the FutureLeveraging know-how and expanding customer base to accelerate growth

1982

1999

2001/2

2005

2006

2013

2016

2017

2017

Surface Mount

Technology (SMT)

Facilities156,500 ft2

Company Owned

ApplicationLaboratory

Opens

PILOT & PRODUCTION EQUIPMENT

GAS & CHEMICAL DELIVERY SYSTEMS

RESEARCH & DEVELOPMENT

EQUIPMENT

PROCESS DEVELOPMENT

SERVICES

TANTALUMSURFACE

TREATMENT SERVICES

DIRECT WRITE PRINTED

ELECTRONICS

Additional 184,000 ft2

Facility In Contract

Growth in Equipment and Material Services through Organic Innovation

2018


Infrastructure Activities Supporting Growth

Implemented new Enterprise Resource Planning system in late 2017 for CVD Equipment Corporation providing efficiency improvement opportunities.

We plan to roll out ERP for CVD Material in late 2018. Assisting CVD to support the growth in organic product lines and acquisitions.

Advance Dynamic and Gas modeling enables simulation and development of complex equipment.

Functional in Q2 2018, yielding critical design parameter conditions and considerations.

Allow for increase effectivity of engineering designs.

ERP System Advance Design Modeling

Dedicated 180,000 to support the growth of CVD Materials Corporation.

Operational readiness in 2019

Electronic Materials, Ceramic matrix composites, for aerospace medical implant applications, carbon composites & graphene, MesoScribe™, Tantaline®

Dedicated Material Group Building

Addition of senior management in Operations/Engineering/Sales & Marketing


Product Line Expansion: Equipment GroupHVPE400CVDVP200 Carbon+150

CVD production of tantalum and other metals for

corrosion resistance and biocompatibility

CVD production of GaN for electronic materials and other metals

Production carbon nanotube system for miniature mechanical devices

Three production systems launched in 2018


Product Line Incubation: Materials Group

Gaining market adoption with increase in repeat orders.

Internally developed proprietary Tantaline+™ treatment for Nickel based Alloys allows for expansion into new applications and material systems

New facility planned for 2019 in Central Islip NY

MesoScribe’s MesoPlasma™ Direct Write Technology enables new markets for Thermal Spray technology, providing high performance products

Turbine Engine Component Monitoring: Diagnostic Sensing

Multifunctional Structures: Embedded Sensing

Integrated Heating: High Performance Satellite Products

Conformal Antennas: Structurally-integrated within UAVs

Miniature mechanical and electrotechnical devices.

Providing both applications and process support to CVD Equipment system customers as well as direct product sales to customers.

Focus on Organic and Post Acquisition growth.


Tantalum is an element •Exotic refractory metal with melting point of 5463 °F

•Most corrosion resistant metal commercially available

•Biocompatibility and osteoconductivity higher than Ti

Why Tantalum?


Markets for Tantaline® TreatmentIndustrial EquipmentChemical Processing Industry (CPI)

Active Pharmaceutical Ingredients (API)

Global industrial valves market expected growth at 4% CAGR to $84B in 2023.

Tantaline® current global served market size of ~$110M.

Concentrated high-temperature acids like HCl, H2SO4 and H3PO4 increasingly used in global chemical production.

Industry needs solution for expensive machinery routinely destroyed and replaced which increases process downtime and reduces profitability.

Tantalum substantially increases product lifetime and reduces maintenance cycles and machinery failure occurrence.

Product Applications Control Valves Instrumentation (pressure/temp/flow) Tube fittings Seal rings Pump systems Glass Lined Vessel (GLV) equipment


Expanding the Tantaline®Brand Instrumentation fittings are a growing product application for Tantaline® technology

$1.65B instrumentation tube fittings market (estimated 2017) with an expected CAGR of 4.9% to 2025

Tantaline® served market size of $8.5M

Tylok® Alloy Interchangeability Solutions (AIS) has evaluated and has adopted the Tantaline® technology. Tylok® now actively sells and promotes Tantaline® treated fittings through it’s major distribution network throughout North America

Tylok International, Inc. (Cleveland, OH) is an industrial fittings producer with a product line comparable with Swagelok®.

Tylok® is a registered trademark of Tylok International, Inc.


Developing products and global presence

CVD Materials Corporation’s applications lab has developed superior coating and treatment technology for specialty metals to expand market for tantalum surface treatment.

Global expansion of Tantaline® brand through strategic OEM customers

Established key distribution networks in growth regions Europe, APAC and Latin America.

Established regional operations in New York to support North American business

Planned production reactors to scale technology


Why MesoScribe? Market Opportunities MesoScribe’s MesoPlasma™ Direct Write Technology enables

new market opportunities for Thermal Spray technology, providing high performance products Gas Turbine Engine Component Monitoring: Diagnostic Sensing

Multifunctional Structures: Embedded Sensing

Integrated Heating: High Performance Satellite Products

Conformal Antennas: Structurally-integrated within UAVs

Global Thermal Spray Market in 2017: $8.09B(1)

Aerospace has largest market share with approx. 34%

Emerging Structural Electronics Market: Estimated to be $60B by 2025(2)

Aircraft Health Monitoring Market: 2.35B(3)

MesoScribe’s addressable market is project to be : $100M+

In applications development and adoption phase of product (1) Technavio, Global Thermal Spray Market 2017-2021, (2017).(2) Structral Electronics 2015-2025, Applications, Technologies, & Forecasts,

P.Harrop, IDTechEx.(3) www.intelligent-aerospace.com

http://www.intelligent-aerospace.com/


MesoPlasma™ Electronics Direct Write:Pioneering the transformation of established conventional plasma spray technology

Conventional plasma spray deposition High Definition MesoPlasma™ Printing

Traditional Plasma Spray Booth MesoPlasma™ Printing Cell


Products, Services & Markets

SENSORSTemperature | Heat Flux | Cracking

CONFORMAL ANTENNASAerodynamic | Robust

HEATERSIntegrated – ConformalHigh Heat Flux (500 W/cm2)

ELECTRONICSFlexible | High Performance

The Write Technology for Demanding Applications™

A CVD Materials Company | © 2018 CVD Materials Corporation | All rights reserved

Opportunities for Aerospace ManufacturingStructural Integration of High Performance Instrumentation

Damage detectionDistributed sensing Antennas, ISRSignal RoutingHeating / De-Icing

Competitive Advantages

Ability to withstand high strainsAbility to print onto

conformal parts, large components & films

Printed Products

FAA qualification and sole source manufacturing of commercial aircraft productAntenna products in

qualification for GA MQ-9

Ice-detection / De-IcingPrinted Sensors onto Parts

Printed Conductorsonto Films

Link 16 Antennas



Conformal & Integrated Antennas Replace bulky

antennas that disrupt airflow with low-profile antenna structures

High quality copper patterns printed conformally onto part or structurally-integrated using surfacing films

Robust and structurally integrated

Flight Tested

Production qualification in progress

IntegratedIntrusive

Conformal antenna patterning onto fiberglass nose cone

Printed UHF/VHF & GPS antenna onto Dakota UAV (30-512 MHz & L1/L2 band)



Printing onto Polymer Films

Benefits Most film materials:

Kapton™, LCP, Tedlar™, Surface Master™, etc.

No length limitation with roll-to-roll processing

Applications Distributed

temperature sensing & damage detection

Structurally integrated antennas

Wiring, signal routing Heating/deicing

Antenna pattern printed using MesoPlasma™ technology

10 feet long!

Quadratic bow-tie, 135 MHz onto wing-to-body fairing

Composite lay-up of printed film produces multifunctional composite structures

Printed L-Band Antenna on LCP film


Specialty Products Expansion: AIM Group

Expertise in application of continuous substrate transport management including Tow Transport, ribbon, and foil web. Wide range of substrate formats from fiber to foil web Instantaneous tension feedback and control - breakage Precise speed control – related to tension response and ringer formation Roller tribological surface coatings to reduce TOW fraying Independent localized multiple axis control Available as standalone transport handling system integrated at customer’s facility or integrated with our

process reactors

Leveraging CVD Equipment engineering talent to expand markets served and customer base


Market Solutions Focus: In all Company Products

Biomedical

Industrial

Aerospace& Defense

Semiconductor& Electronic

• Launched CVDVP150™ system for biocompatible coatings • Developed proprietary Tantaline+™ treatment for advanced implants

• MesoScribe™ shipments for airplane and satellite applications• CVD Equipment tow transport systems Ceramic Matrix Composites and

other applications

• Secured fittings OEM for Tantaline® line of products• Developed proprietary Tantaline+™ treatment for Ni

Alloy industrial components

• Developed proprietary carbon composite for miniature mechanical devices

• Launched HVPE400™ for bulk electronic material

• Launched Carbon +150™ for CNT production

company update - cvd equipment corporation€¦ · market for tantalum surface treatment. global...

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