Nova Ltd. · NASDAQ:NVMI

Nova — Investor Day (September 2022)

21 slides from Nova's investor day presentation, September 2022

  1. Slide 1: Financial Model & Profitable Growth

    Financial Model & Profitable Growth Dror David, CFO September 2022

  2. Slide 2: Dror David, CFO biography

    Joined Nova in 1998. Appointed as CFO in 2005. Beforehand, held positions of Company Controller, Vice President of Operations and Vice President of Resources in charge of finance, operations, IT and HR. Led Nova’s private placement in 2007, secondary public offering in 2010 and bond issuance in 2020

  3. Slide 3: On the Agenda Today

    Nova 500 Strategic Plan Realized On the Agenda Fundamentals for Profitable Growth Today Charting a Course Toward Nova 1B 19 © Nova proprietary information

  4. Slide 4: Nova 500 Financial Execution

    Nova 500 Financial Execution 20 © Nova proprietary information

  5. Slide 5: Nova 500 financial targets

    R&D Revenue Investment Tax $500M 17%-19% 15% Gross Margin SG&A Share Count 57%-59% 13%-15% 32M Operating Margin Earnings 26%-29% Power of $1 EPS Non-GAAP Financials 21 © Nova proprietary information

  6. Slide 6: Executing Nova 500

    Executing Nova 500 Revenue Operating Income EPS $510M $166M $4.78 $251M $269 $68M $65M $2.11 $2.06 2018 2020 TTM 2018 2020 TTM 2018 2020 TTM Operating Margin Gross Margin 33% 58% 58% 57% 27% 24% 2018 2020 TTM 2018 2020 TTM TTM – Twelve Months Trailing Q3 21 to Q2 22 22 © Nova proprietary information

  7. Slide 7: Gross Margin 59%, Operating Margin 33%

    Gross Margin 59% Operating Margin 33% Revenue +52% $276M Operating Income $234M $182M Earnings Per Share +72% $92 $74 $52 +59% $2.54 H1 2021 H2 2021 H1 2022 $2.24 $1.6 H1 2021 H2 2021 H1 2022 H1 2021 H2 2021 H1 2022 Non-GAAP Financials 23 © Nova proprietary information

  8. Slide 8: Investments and Gross Cash Reserves

    Gross Cash Investments Reserves Fixed Working $500M Assets Capital $50M $50M Convertible Debt Acquisitions $200M $100M $180M Share Repurchases 2018 Current $30M 24 © Nova proprietary information Non-GAAP Financials

  9. Slide 9: Nova $1B Fundamentals

    Nova $1B Fundamentals 25 © Nova proprietary information

  10. Slide 10: Greater Exposure

    Greater Exposure Segments Nodes Geographies 30% 30% 30% 55% China Taiwan Memory Trailing H1 H1 H1 2022 2022 15% 2022 20% 70% 45% USA Korea Logic Leading 5% Other 26 © Nova proprietary information Company Product Revenues, Leading logic <14nm & Leading memory

  11. Slide 11: Geopolitical implications

    Geopolitical implications ~ 50 Chip Acts drive localized investments ~ 30 New technology to new ~ 20 segments (Backend, Advanced Packaging) Advanced metrology penetration to new segments 2020 2021 2022 27 © Nova proprietary information

  12. Slide 12: Installed base expected to surpass 5,000 systems

    10000 140M 9000 8000 120M 7000 >$100 100M 6000 $79M 80M 5000 Installed base expected $60M 4000 $58M to surpass 5,000 systems 60M within 2023 3000 40M 2000 20M 1000 0 0M 2019 2020 2021 2022 Non-GAAP Financials 28 © Nova proprietary information

  13. Slide 13: Lab to Inline Cycle

    Lab to Inline Cycle From One to Many Near-Line R&D Qualification Evaluation Tools Laboratory 29 © Nova proprietary information

  14. Slide 14: Growing Overall TAM

    Overall TAM Growing Leverage Growth Diversification Installed-Base Market High Value Share of New Gains Technologies 30 © Nova proprietary information

  15. Slide 15: Headwinds

    Headwinds Supply chain constraints Interest Rate & Inflation Rate 10 8 Inflation rate (%) 6 4 2 Interest rate (%) 0 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 May-22 Source: NY Times 31 © Nova proprietary information

  16. Slide 16: Nova $1B Financial Plan

    Nova $1B Financial Plan 32 © Nova proprietary information

  17. Slide 17: Nova $1B financial targets

    R&D Revenue Investment Tax $1B 15%-18% 14% Gross Margin SG&A Share Count 57%-59% 13%-15% 32M Operating Margin Earnings 27%-31% >7$ Non-GAAP Financials 33 © Nova proprietary information

  18. Slide 18: Israel Cleanroom, Global IT Networks and investments

    2022 2022- 2022 2024 Israel US Innovation Chemical Metrology 2023- Center 2023- Cleanroom 2024 2024 Center Global IT Networks Global and Applications Offices 34 © Nova proprietary information

  19. Slide 19: Investment in Growth $1.5B

    Investment in Working Capital Share Growth Capital $100M Expenditures $100M Repurchases $100M $1.5B M&A Opportunities R&D Expenditures 35 © Nova proprietary information Non-GAAP Financials

  20. Slide 20: Inorganic Approach

    Inorganic Approach Search Guidelines Early Access Top Line Lab to Fab Technology Synergy Complementary Materials Technology Leadership Operational Leverage (Accretion) Diversification within Software Offering Core Capabilities Enhancement Transformational Adjacent Process Control Markets 36 © Nova P

  21. Slide 21: Thank You

    Thank You

Nova — Investor Day (September 2022) on 6ix