Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Cautionary Statements
Use of Non-GAAP Adjusted Financial Measures Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following: increased This presentation provides financial measures that exclude amortization of information technology security threats and
Slide 3: Nova is a leading innovator and key provider of solutions
Nova is a leading innovator and a key provider of solutions for advanced used in semiconductor manufacturing 3 © Nova proprietary information
Slide 4: Dream Dare Innovate
Dream Dare Innovate Listen We measure ourselves by our ability to transcend expectations and boundaries We partner with our customers to craft innovative process control solutions Execute enhanced with unique value Win 4 © Nova proprietary information
Slide 5: Revealing the Invisible
Revealing the Invisible Actionable Insight, Critical Foresight Advanced Logic (AI-Enabled) GM107 H100 x42 Logic DRAM NAND Advanced Software 1.9B Transistors 80B Packaging Dimensional Advanced Memory Materials x6 64 Tiers 400 Physical & Mathematical Advanced Packaging Chemical Algorithms 300mm 20um W
Slide 6: Solid Track Record
Solid Track Record Outperforming the WFE by >50% 5 Year CAGR Proven execution Annual $562M +16% Nova Revenues Outperforming the industry Doubling revenues every 5 years Resilient business model +10% WFE $251M Wide Metrology Coverage Differentiated Portfolio $112M Organic Growth Engines Diverse Marke
Slide 7: Quarterly Performance
Quarterly Performance $172 $157M Q2 24 Highlights $142M $134M Record Revenue and profitability $1.39 $1.61 $1.67 Record operating and free cash $1.36 flow Record revenue for chemical Q4 23 Q1 24 Q2 24 Q3 24 metrology Record booking for Materials metrology and advanced Company Guidance Revenue EPS pa
Slide 8: 3 R&D and Production Centers, 30 Offices
3 R&D and Production Centers 30 Offices Europe Korea Germany 4 offices 6 offices Japan 2 offices USA China California 2 offices 6 offices Israel Taiwan Rehovot; Ness Ziona 4 offices Corporate Offices Legend: Singapore R&D and Production 1 office Field Office: Sales & Service 8 © Nova proprietary inf
Slide 9: Multiple Drivers for Secular Growth
Multiple Drivers for Automotive AI Semi Industry Secular Growth 28% 5Y CAGR 24% 5Y CAGR +8% 5Y CAGR Semiconductor Revenue Forecast – $1T by 2030 Gen AI near-term drives data centers & HPC, longer-term: end-point devices; $1,000 Revenues to reach $159B by 2028 ADAS, EV/HEV, Auto-HPC to drive auto chi
Slide 10: Government Funding Drives Technology Advancement and Global Fabrication Footprint
Government Funding Drives Technology Advancement and Global Fabrication Footprint Korea t >$200B in Funding and Incentives by 2030 $20B >100 Fabrication Projects 7 Japan t $20B USA t 12 Europet China t $80B 23 $50B $30B 19 32 Taiwant $15B India $15B Legend: t 10 10 Government Funding/ incentives $15
Slide 11: Next-Gen Dimensions Driven Opportunities
Next-Gen Dimensions Driven Opportunities Scale and Complexity Drive Metrology Intensity Logic DRAM Scaled Devices, Multiple Design Steps Moving toward 3D architectures • GAA individual Nanosheets • High-Aspect Ratio Bottom (thickness, indent) gate parameters Higher count of interconnect layers • Bur
Slide 12: Next-Gen Materials Driven Opportunities
Next-Gen Materials Driven Opportunities Materials Diversity Drives Broader Metrology Scope On-Wafer In-Bath From 12 to 67 elements New materials, new chemistries Wafer Composition, purity, stability Plating solutions Copper Source Sustainability and waste management • Uniformity & Residues • Dielect
Slide 13: Increasing Complexity
Increasing Complexity Driving Higher Metrology Intensity Process Steps by Node - Logic Process Steps by Node - NAND Increasing complexity: 10% +30% more metrology steps 3X in GAA Cost of a large 3nm fab: 28nm 20nm 14nm 10nm 7nm 5nm 3nm 2nm Planar 3D single 3D double 3D triple deck deck deck ~ $25B,
Slide 14: Diversified Growth Engines
Diversified Growth Engines Increasing Share while Expanding TAM Markets ` Technology Towards $1B Service Products Inorganic 14 © Nova proprietary information
Slide 15: Addressing Multiple Markets: Nova TAM +50% by 2027
by Addressing Multiple Markets Advanced Advanced Logic Packaging Nova TAM +50% by 2027 $3B $2B $1B Advanced Legacy Memory Nodes & specialty devices 2020 2023 2027 15 © Nova proprietary information Source: Gartner, Company Estimations
Slide 16: Heterogenous Integration Driven Opportunities
Heterogenous Integration Driven Opportunities Continued Scaling Requires New Integrations Hybrid Bonding Through Silicon Via Top (Thick Wafer) Wide Adoption: Advanced Logic: Backside Power Delivery Logic, HBM, 3D NAND, 3D DRAM & advanced packaging CMP process control critical Bottom (Thick Wafer) DR
Slide 17: Diversifying Product Offering
Diversifying Product Offering R&D Investment (Net, $M) XPS SI 100 SIMS 80 OCD Optical Raman 60 Materials Dimensions SW Chemical 40 DMR 20 XPS Deep HPLC 0 Tech 2019 2021 2023 2024 PCGA Non-GAAP Financials. 2024- Forecast 17 © Nova proprietary information
Slide 18: Core Technology / Disruptive Technology
Core Disruptive Technology Technology Spectral Reflectometry (SR) Spectral Interferometry (SI) X-Ray Photoelectron Spectroscopy (XPS) & X-Ray Fluorescence (XRF) Generative AI HPLC, CVS, Titration, Optical Spectroscopy Constantly Raman Spectroscopy Pushing Physical Modeling Boundaries Secondary Ion M
Slide 19: Dimensional, Materials, Chemical Metrology and Software
Dimensional Software Metrology Critical Dimensions Integrated Metrology Standalone Metrology Standalone Metrology Materials Metrology Material Properties XPS, XRF Raman Spectroscopy SIMS Chemical Metrology • Physical & Mathematical Modeling Chemical • Big Data Analytics Analytics Front End Wafer Lev
Slide 20: Leveraging Technology Differentiation
Leveraging Technology Differentiation Dimensional Materials Chemical AncoScene® Ancolyzer® DMR® Integrated Stand alone Prism VeraFlex® Elipson® Metrion® Front-End Wafer level Direct Metal Optical CD Optical CD (XPS+SRF) (Inline Raman) (Inline SIMS) packaging Replenishment Gate-All-Around Advanced Me
Slide 21: Targeting Double-Digit Annual Growth
Targeting Double-Digit Annual Growth 140 16% 120 CAGR 100 >5900 Active installed base 80 >400 Customer sites 60 X2 in 4 years 40 20 0 2019 2020 2021 2022 LTM Non-GAAP Financials, Company service revenue Last Twelve Months, CAGR 2019-LTM 21 © Nova proprietary information
Slide 22: Inorganic Approach
Inorganic Approach Search Guidelines Early Access Complementary Top Line Synergy Technology Lab to Fab Technology Operational Diversification Materials Leverage Within Core Leadership (Accretion) Capabilities Adjacent Transformational Process Control Markets 22 © Nova proprietary information
Slide 23: Nova $1B Plan
Nova $1B Plan Continuous Outperformance New Technologies Proliferation $1000M M&A Chemical Analysis Growth $800M Materials Metrology Leadership $600M Diversified Markets $400M Further M&A $200M >$750M Gross Cash Reserves 2019 LTM Target Supporting Long-Term Growth Last Twelve Months Company revenues
Slide 24: Financial Target Model
Financial Target Model Organic R&D $1000M Revenue Investment Tax M&A $800M $1B 15%-18% 14% $600M Gross Margin SG&A Share Count $400M 57%-59% 13%-15% 32M $200M Operating Margin Earnings 27%-31% >7$ 2019 LTM Target 24 © Nova proprietary information Non-GAAP Financials, Company revenues Last Twelve Mon
Slide 25: Preparing For Next Cycle Opportunities
Preparing For Next Cycle Opportunities Increasing Manufacturing Tech Evaluations at R&D Plans On Track Capacity Customer Sites by 2025 Evaluations in Process of Annual Revenue - Last 3 Years Vs. 2022 capacity 25 © Nova proprietary information
Slide 26: Our Four Pillars
We believe in a pragmatic approach to interlace ESG practices across daily operations, including culture, products, business, supply chain, customers, R&D and manufacturing. Our four Pillars Our ESG strategy is built around four pillars- each with long-term goals and areas of focus. Annual planning
Slide 27: Governance, Social, Environment
Governance Social Environment • Governance compliance • Talent Attraction & Retention • Environmental management – • Data Privacy & cyber security • Diversity, Equity and Inclusion • Energy, water, waste • Ethical business practices • Human capital development • Carbon footprint and GHG • Product sa
Slide 28: Key Takeaways
Key Takeaways Positioned for Continuous Growth Process complexity, new markets and geopolitics drive investments Sales Increasing need for advanced metrology solutions Unique, disruptive technology portfolio 1B$ Stronger position, penetrating new segments. expanding TAM Gross Margin Solid operationa
Slide 29: Thank You
NOMS w= Thank You