Slide 1: Investor Presentation May 2023
Investor Presentation May 2023
Slide 2: Cautionary Statements
Use of Non-GAAP Adjusted Financial Measures This presentation provides financial measures that exclude amortization of Factors that may affect our results, performance, circumstances or acquired intangible assets, stock-based compensation expenses, acquisition related achievements include, but are n
Slide 3: Nova is a leading innovator and key provider of solutions for advanced semiconductor manufacturing
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 Listen
Dream Dare We measure ourselves by our ability to Listen Innovate transcend expectations and boundaries We partner with our customers to craft innovative process control solutions enhanced with unique value Execute Win 4 © Nova proprietary information
Slide 5: Key Facts
1993 | Date Founded | Dually Traded >1100 | Employees Presence | Israel HQ , Global Offices KEY Facts >4800 | Active Systems >200 | Customer Sites R&D | Israel, USA, Germany 5 © Nova proprietary information
Slide 6: Proven Execution Ability, Relative Industry Outperformance
5 Year $571M CAGR +21% Nova Proven Execution Ability +15% products WFE Relative Industry Outperformance $222M Revenue doubled every 5 years $96M $58M 2007 2012 2017 2022 Wide Metrology coverage New organic engines Diverse customer mix Differentiated portfolio Diverse technology mix Diverse territory
Slide 7: Process Control in the Chip Manufacturing Flow
Chip Design (Fabless) Front End Fabrication Process Control Process equipment Materials Packaging ( ) 7© Nova © Nova Proprietary proprietary information information
Slide 8: Innovative Technology
Innovative Technology LOGIC FLASH DRAM 300mm 20um 3nm 0.5Å Wafer Pad Node Precision [One ten-billionth of a meter] Optical / X-Ray / Chemical Semiconductor Dimensions / Materials Segments Parameters 8 © Nova proprietary information
Slide 9: Memory, Logic and Packaging Device Complexity
Memory Device X6 64 Layers 400 Dimensional Advanced SW Packaging Device X30 Flip-Chip Bump I/O 3D-SOC Materials Chemical Physical & Pitch <300µm <10µm Mathematical Algorithms Logic Device A4 X100 A15 Transistors 150M 16B 9 © Nova proprietary information
Slide 10: Addressing Multiple Markets
Addressing Multiple Advanced Packaging Markets New Materials Economics Performance Vertical Integration Expanding Material Efficiency Scaling Metrology Device to Chemical Scaling Metrology 10 © Nova proprietary information
Slide 11: Semi Demand
Digital Investment across broad Transformation range of IC Devices Architecture Technology transitions to support performance demand Smart Sensors Resume normal scaling cycles (EUV) below 7nm Metrology Semi Demand for increased Intensity Demand content in advanced devices Synergy between industry Da
Slide 12: Dimensional Metrology Intensity
Dimensional Metrology Intensity Metrology Intensity Logic Planar FinFET Nano Sheet 3D NAND Scaled Devices Single Stack Multi-deck Over Periphery 3D Profiles Multiple Design Steps DRAM Films Variety 1b 1c 3D DRAM Intricate Architecture Scale & Complexity 12 © Nova proprietary information Sources: Jef
Slide 13: Materials Metrology Intensity
Materials Metrology Uniformity Control Intensity Contamination Intensity Logic X4 Residue Control Broader Metrology Scope Memory X3 Phases Defectivity Crystallinity Stress & Strain Broader Metrology Scope from planar/single stack to GAA/Multi stack Thin Films Thin Films From 20 to 90 steps Compositi
Slide 14: Chemical Metrology Intensity
Chemical Intensity Metrology Intensity <150µm <60µm <40µm Back End: Advanced I/O Pitch Packaging Flip-Chip Fan-Out Hybrid 3D 8 13 17 Complexity New materials Front End: Interconnect Interconnect Layers New chemistries Stability and purity Planar FinFET GAA Tighter process control Complexity 14 © Nov
Slide 15: Why Do We PREVAIL?
Why Do We PREVAIL? Increasing Share while Expanding TAM Customers Diversification Tech Nodes Segments Technology Geography 15 © Nova proprietary information
Slide 16: R&D Investment
XPS R&D Investment SI SIMS $84M OCD Raman Optical $56M Materials Dimensions $51M SW Chemical XPS HPLC Deep Tech PCGA 2018 2020 2022 16 © Nova proprietary information Non-GAAP Financials
Slide 17: Core and Disruptive Technology
Core Disruptive Technology Technology Spectral Reflectometry (SR) Spectral Interferometry (SI) Multi-Channel Integrated Metrology X-Ray Photoelectron Spectroscopy (XPS) & X-Ray Fluorescence (XRF) Generative AI HPLC, CVS, Titration, Optical Spectroscopy Raman Spectroscopy Physical Modeling Secondary
Slide 18: Rich Metrology Portfolio
Dimensional Metrology • Critical Dimensions Software Integrated Integrated Multi Standalone Metrology channel Metrology Metrology Rich Metrology Materials Metrology Portfolio • Materials Properties • Physical & X-Ray - XPS, XRF Raman Spectroscopy SIMS Mathematical Modeling • Big Data Analytics Chemi
Slide 19: Balanced Exposure
Balanced Exposure Segments Nodes Geographies 30% 35% 30% 50% China Taiwan Memory Trailing 2022 70% 2022 2022 10% Foundry/ USA 15% 50% Logic Korea Leading 10% Other 19 © Nova proprietary information Company Product Revenues, Leading logic <16nm & Leading memory
Slide 20: Number of Customers
Number of Customers 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 20 © Nova proprietary information
Slide 21: TAM Growth
TAM Growth 170% Differentiated Technology $2.7B Innovative Metrology $2B Raman, SIMS and Chemical Hybridization Nova TAM $1B Physical and ML Algorithms Data-Driven Solutions 2020 2023 2027 Training and Prediction Capabilities 83% Service Revenue Extendibility & Enhancement Value Added Services $13.3
Slide 22: 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 22 © Nova proprietary information
Slide 23: 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 23 © Nova p
Slide 24: 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 25: 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 26: Nova $1B Plan
Nova $1B Plan Continuous Outperformance $1000M New Technologies Proliferation M&A $800M Chemical Analysis Growth Materials Metrology Leadership $600M Diversified Markets $400M Further M&A 500M Cash Reserves Supporting 2018 2022 Target Long-Term Growth 26 © Nova proprietary information
Slide 27: Long-Term Target Model
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 27 © Nova proprietary information
Slide 28: Key Takeaways
Financial Key Takeaways Long-Term Positioned for Continuous Growth Target Model Sales Growing demand for IC drives capacity & Increasing complexity Increasing need for advanced metrology solutions 1B$ Unique and disruptive technology portfolio Gross Margin Driving a stronger position and expanding T
Slide 29: Thank You
Thank You