Nova Ltd. · NASDAQ:NVMI
Nova — Nova Measuring Instruments — Investor Presentation (January 2013)
24 slides from Nova's investor presentation, Jan 15, 2013
Slide 1: Investors Presentation
Investors Presentation Gabi Seligsohn, President & CEO Dror David, CFO January 2013
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation includes statements that constitute forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future financial performanc
Slide 3: Business highlights
Business highlights — Pure player in the semiconductors optical metrology market, enjoying strong business fundamentals: — Nova is exposed to the highest growing semiconductor applications serving industry leading manufacturers — Nova continuously outperforms the industry — Nova is entering the emer
Slide 4: Company overview
Company overview — Founded in 1993 - IPO in 2000 (NASDAQ - NVMI) — Headquarters: Rehovot, Israel — Global presence: — Asia Pacific - Taiwan, Korea, Singapore, China — United States, Japan and Europe — Employees: 370 — Active installed base >1200 systems — Listed on NASDAQ and Tel-Aviv Stock Exchange
Slide 5: Optical CD - leading and emerging technology
Optical CD - leading and emerging technology Semiconductor Wafer Cross-Section View Using Electron Microscope Same View Using Optical CD Scatterometry View Integrated Circuit Die
Slide 6: Nova's products portfolio
Nova’s products portfolio SW SA NovaMARS SW Packages Fleet Management NEXT T500 T600 3D-IC IM TSV NEXT i500 Process control for current and future technologies
Slide 7: Well positioned in most critical segments
Well positioned in most critical segments 7 Memory: NAND: Design win 1Y (<10nm) DRAM: < 30nm Foundry: Ramping 28 nm. Design wins: 20,14,11 nm Source: Barclays, Needham 2012/3 Semi Market - Capital Spending Strong position with leading market spenders
Slide 8: Well positioned in the right sectors
8 Well positioned in the right sectors Source: Gartner Foundry Revenue Source: Micron, Gartner NAND Outlook Capitalize on strong presence in memory once spending resumes Foundry revenues and spending will continue to grow
Slide 9: Nova's winning strategy
Nova’s winning strategy Nova Optical CD Differentiation Cluster Best Reliability Highest Throughput Shortest Time to Solution Best Solution Quality Best Tool-to- Tool Matching Excellent Global Services Providing an excellent platform for further growth * Process Equipment Manufacturers
Slide 10: Unification of the metrology market
Unification of the metrology market $800M-$900M Source: Gartner, Yole Research & Company Estimates * Expected metrology and inspection SAM for 3D Integration Expecting a further SAM increase of ~ $100M for 3D-IC starting in 2013/14* $284M - - Expansion of Nova’s Addressable Market Thin Film Metrolog
Slide 11: Optical CD - growing adoption rate
Optical CD - growing adoption rate Disruptive Technology to meet the industry’s most difficult challenges Source: Gartner
Slide 12: Nova's TAM more than tripled 2009-2012
Nova’s TAM more than tripled 2009-2012 2013 Opportunity (<28nm) Implant Litho Etch CVD/EP CMP Notes: Company data. Based on Foundry with 100,000 wafer starts per month (updated 1/2013) <65nm $30-40 M Process control needs expand as geometries shrink Wafer In Wafer Out $150M - $200M Opportunity
Slide 13: Nova Continuously Exceeds Industry Performance
13 Nova Continuously Exceeds Industry Performance Nova significantly outperforms industry’s 5 year CAGR (2011/2012: Nova -8% vs. Industry -17%) Source: * Nova Q4/2012 mid point guidance, Gartner Q4/2012, Needham & Co. Foundry
Slide 14: Recent achievements
Recent achievements Will continue to enhance our development and support capabilities for an expanding SAM — Successful launch of Integrated and stand alone metrology: — NovaT600 - selected for 11nm/14nm/20nm at multiple foundries — Nova i500 - selected for 11nm/14nm/20nm/30nm at multiple memory and
Slide 15: Industry Review: 2012 and Beyond
Industry Review: 2012 and Beyond
Slide 16: Excellent exposure to growing markets
Excellent exposure to growing markets Source: Jeffries & Company, iSuppli Source: Gartner Q3/12 Tablet Semiconductor Content % of Tablet BOM NAND Flash Memory 7% P Mobile DDR DRAM 7% P App Processor 5% P Baseband / RF 4% P Wi-Fi / BT 2% P Power Management 2% P Accelerometer 1% P Memory Controller 1%
Slide 17: Capacity increase needed for 28nm at foundries in 2013
70-100K WSPM* needed capacity increase for 28nm at foundries in 2013 Mobile Device Capacity needs for 2x Tech Nodes * WSPM - Wafer Starts Per Month
Slide 18: Mobile revolution continues to gain traction
Mobile revolution continues to gain traction OCD - the only way to measure and control Source: Intel, IDC, Company records High performance low power - new chip designs are the enablers 3D Gates for foundries 3D Gates for Flash
Slide 19: Nova: partnering for process control performance
performance N<OVA partnering for process control
Slide 20: 3D technology driving Nova application growth
3D technology driving Nova application growth 2010 2012 onwards Nova introducing novel TSV metrology solution in time for transition to production The need: Low power high performance 3D Devices Planar Transistor 3D Transistor Requires significant increase in number of Etch and CMP layers Multi-Chip
Slide 21: Strategy for taking Nova to the next level
Strategy for taking Nova to the next level Nova will continue its strategy of investing in creating future growth opportunities Short Term Mid Term Long Term Continue to enhance infrastructure and customer technology Strong end market position and excellent technological collaboration with leading P
Slide 22: Financial performance
Financial performance Continuously adding feature and functionality for customer benefit Product strategy drives high margins
Slide 23: Financial model: revenues and margins
23 Revenues FY2011 $103M 2012F* $94M Target Model Total Revenues 100% 100% Products Revenues 83% 80% Services Revenues 17% 20% 15% - 20% Total Gross Margins 56% 54% 55% Products Gross Margins 61% 60% 58%+ Services Gross Margins 36% 30% 30%+ Total Operating Expenses 32% 42% 30% - 35% R&D, net 18% 26%
Slide 24: Ability to continue growth is well founded
Ability to continue growth is well founded Litho Etch CVD/EP CMP Further Growth Accelerating Op CD Adoption Industry New strategic Initiatives Expanded Customer Base Providing an excellent platform for further growth Outpacing industry growth rate Expanding Fab footprint Mid cycle behavior Well posi
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