Onto Innovation Inc. · NYSE:ONTO
Onto Innovation — Investor Presentation (November 2020)
18 slides from Onto Innovation's investor presentation, November 2020
Slide 1: Onto Innovation November 2020 Update
Onto Innovation November 2020 Update Investor Presentation NOVEMBER 2020
Slide 2: Safe Harbor
• The information presented herein contains forward-looking statements that relate to anticipated future operating results and performance. These statements are only predictions based on management’s current expectations and assumptions, including market size and forecasted growth, Total Available M
Slide 3: Onto Innovation Snapshot
Onto Innovation Snapshot High tech capital equipment company specializing in process solutions for semiconductor and related markets COMPANY FREE CASH FLOW NYSE >$340 Million Cash; (ONTO)YTD No Debt YTD REVENUE YTD GROSS MARGIN1 $401.3 Million 53.2% DEVELOPMENT YTD R&D SPEND2 ENGINEERS 31% of Staff
Slide 4: Onto Innovation 2020 Highlights Since Merger of Equals
Onto Innovation 2020 Highlights Since Merger of Equals Strengthening business foundation for sustainable growth $24M Annual $15M Booked New Product Cost Synergies Growing Lithography Metrology Suite for Advanced Backlog (record) Nodes Q1 2020 First Quarter after NANO and RTEC Merged >$400M Identifie
Slide 5: Q3 Earnings Highlights & Outlook
Q3 • Gross margin improved to 54%, above previous guidance. • Net income increased to $19.6 million or $0.40 per share at the high-end of our guidance and above the Street estimate of $0.34. • Cash and marketable securities increased $28.3 million in the third quarter and cash from operations was 21
Slide 6: We Support the Entire Semiconductor Value Chain
We Support the Entire Semiconductor Value Chain Onto Innovation products from silicon manufacturing to advanced packaging ONTO YTD REVENUE MIX ADVANCED 37% 80% of WFE* NODES Logic, DRAM, 3DNAND ONTO YTD REVENUE MIX SPECIALTY DEVICES & 50% Faster Growth (1H20/1H19) 39% ADVANCED than WFE** PACKAGING P
Slide 7: "Data Era" Driving Multiple Secular Growth Industries
“Data Era” Driving Multiple Secular Growth Industries Advances in memory and transistor architectures enable growth in multiple industries Growth of Connected Devices Health 30 25 Billions of Devices Smart Environment Google AI 20 50% City processor 15 Growth +11 10 Billion! Mobile 5 Data 0 Smart Ho
Slide 8: We Measure the Most Challenging Dimensions
We Measure the Most Challenging Dimensions... Our value in advanced nodes VNAND Channel Hole Etch 3NM LOGIC Deposition repeating layer Advanced Nodes Product Suite thickness Atlas® Metrology Aspect® Metrology IMPULSE® Integrated Metrology Element™ FTIR 8
Slide 9: Our Advantage? We Take Optical Metrology Beyond our Peers
Our Advantage? We Take Optical Metrology Beyond our Peers! Achieve better results, faster, with optical vs X-ray 256 NEW Aspect 196 Onto 3D Optical! NAND 128 Layers 96 Optical Metrology is >10x faster Traditional & Competitor than X-Ray Metrology and the Optical Metrology best solution for HVM 64 NE
Slide 10: Optical Metrology Market Breakdown
Optical Metrology Market Breakdown NEW METROLOGY SUITE STANDALONE OCD MARKET INTEGRATED OCD MARKET Standalone OCD Integrated OCD IMPULSE V Atlas V IMPULSE V Atlas V Aspect #1 #2 Planar Films IRIS (Released Q4-20) Best in class sensitivity Best in class reliability and throughput 10x throughput advan
Slide 11: Comprehensive Eco-system
TEM PREDICTIVE YIELD Onto Innovation Product Synergies Atlas Metrology Result in Comprehensive AI-Diffract Eco-system Device test Software SEM IMPULSE Increases value to customer integrated Aspect metrology Metrology Expands competitive moat FLEET PRODUCTIVITY Process 3rd Party Data Lab 11
Slide 12: "Data Era" Enabled by Advances in Sensing and Connectivity
"Data Era" Enabled by Advances in Sensing and Connectivity Specialty devices and advanced packaging enable smarter and higher performing devices Sensors & Advanced Packaging Wafers SENSING COMMUNICATION PACKAGING (M Wafers, 300mm eq.) 18 LIDAR CMOS RF MEMs Technology Image 16 Other Sensors Sensor 14
Slide 13: Complete Suite
Complete suite We print, measure, and inspect the most advanced process technologies WAFER LEVEL DIE LEVEL COMPREHENSIVE PROCESS Bare wafer and patterned Interconnect reliability SOLUTIONS FROM ONTO INNOVATION defect detection FRONTSIDE DRAM Logic EDGE Bumps RDL Layers TSVs BACKSIDE SERVING A VARIET
Slide 14: Specialty and Packaging Markets Increasing Demand on Quality
Specialty and Packaging Markets Increasing Demand on Quality Macro Inspection Revenue Demand Increases for Panel Packaging Growth Growth Outperforms High-fidelity 3D Forecast Market Metrology $50 550x500mm Panel Forecast (M) 100% $45 80% >4X $40 22% Growth $35 CAGR 60% (YoY) $30 $15M 25% 40% record
Slide 15: Onto Fundamentals
Onto Fundamentals Building a strong financial foundation post merger • Driving Down Operating expenses 10% (3 Quarters) • YTD Free Cash Flow: $69.5 Million QUARTERLY OPERATING EXPENSES Cumulative Revenue & FCF (YTD) 54 $450 $70 $400 52 $60 >10% $350 Revenue ($ Millions) 50 $50 Reduction FCF ($ Milli
Slide 16: Pro Forma Financial Model
Organic Growth Resulting from Share Gains & Potential to Enter New Addressable Markets Annual Revenue $600M Model $800M Model $1B Model Gross Margin 54% - 55% 55% - 56% 56% - 57% Pro Forma Financial Model* Operating Profit 24% - 25% 29% - 30% 32% - 33% Earnings per $2.40 - $2.50 $3.85 - $4.00 $5.05
Slide 17: Why Invest in Onto Innovation?
Why Invest in Onto Innovation? >20% Growth in Wafer Metrology and Inspection Outperforming Industry TECHNOLOGY Lithography Backlog Suggests Record Revenue in 2021 New Metrology Suite + Iris Positioned for Growth in 2021 Operating Margin Improvement as $24M in Synergies Take Full Effect in 2021 OPERA
Slide 18: Thank You
Thank You Onto Higher Yields Onto Higher Margins Onto Higher Productivity Onto Innovation info@ontoinnovation.com www.ontoinnovation.com
Onto Innovation — Investor Presentation (November 2020) on 6ix