Kla Corporation · NASDAQ:KLAC
Kla — Investor Day (June 2022)
22 slides from Kla's investor day presentation, Jun 16, 2022
Slide 1: 2022 KLA Investor Day
2022 KLA Investor Day New York City • June 16, 2022 1
Slide 2: Disclaimer
Disclaimer Statements in this presentation other than historical facts, including but not limited to: (i) future trend of digitization, semiconductor and EPC industry growth and evolution; (ii) geographic breakdowns of future global semiconductor production; (iii) our results of operations and finan
Slide 3: Growing a Durable Revenue Stream Through Best-in-Class Services Business
Growing a Durable Revenue Stream Through Best-in-Class Services Business Brian Lorig EVP, Global Services
Slide 4: Key Messages | Services
Key Messages | Services Strong customer value proposition: partner with customers to maximize the 1 value of their Fab Uniquely positioned to support High Complexity, High Mix, Lower Volume, 2 Long-Lived installed base Evolving data and analytics platform: moving Services’ delivery from reactive 3 t
Slide 5: KLA Services at a Glance
KLA Services at a Glance 1 ~$1.8B >99% >75% >95% >3 yr 4.5x Revenue Purity of Reported Subscription-Like Renewal Rate Length of Revenue Growth Services Revenue2 Service Contracts Service Contract Over Install Base Growth Rate 1 year ahead of 2019 plan New from 2019 Up from 70% in 2019 Up from 90% in
Slide 6: Well Aligned to Benefit from Industry Megatrends
Well Aligned to Benefit from Industry Megatrends Artificial Virtual High Performance 5G Connectivity Mobile Data Center Automotive Intelligence Interaction Computing Market Type Customer Goal KLA Strategy Results Develop, ramp & transfer New product introduction & Customers accelerate Leading-Edge D
Slide 7: Power of KLA Portfolio: High Mix, High Complexity, Lower Volume
Power of KLA Portfolio: High Mix, High Complexity, Lower Volume High Mix High Complexity Lower Volume 1000s BBP RAPID e-Beam LS chambers per fab SWIFT Surfscan ADE FaST 100s tools per fab OMD SensArray Instruments PCB SPTS ICOS FPD Frontline Creates high barrier to entry for service 7
Slide 8: Longevity of Installed Base Enhances Customer Productivity
Longevity of Installed Base Enhances Customer Productivity Semi PC and EPC Installed Base 50,000 Highlights 45,000 >50% of our installed base is older than 18 years old 40,000 35,000 Average peak installed base per class year is achieved in ~12 years Installed base units 30,000 25,000 >80% of
Slide 9: Successfully Implementing the KLA Operating Model Across Services
Successfully Implementing the KLA Operating Model Across Services Collaboration KLA Services teams embedded with customers, supporting achievement of customer goals Deep supplier relationships ensure supply continuity and higher quality Closely coordinated with KLA design and manufacturing ope
Slide 10: Successfully Implementing the KLA Operating Model Across Services
Successfully Implementing the KLA Operating Model Across Services Collaboration KLA Services teams embedded with customers, supporting achievement of customer goals Deep supplier relationships ensure supply continuity and higher quality Closely coordinated with KLA design and manufacturing ope
Slide 11: Contract Services Adoption Rate Continues Increasing
Contract Services Adoption Rate Continues Increasing Highlights Semi PC Revenue Increasing complexity of manufacturing process and 100% KLA equipment Record-level factory utilization % of service revenue Customers geographic footprint expanding Inter-Fab technology transfers Renewed emphas
Slide 12: Case Study: Legacy Node Customer Spend With KLA Services
Case Study: Legacy Node1 Customer Spend With KLA Services Environment Results 2013 – 2018: Factory utilization 70-80%, stable manufacturing processes, and less stringent end-customer requirements Legacy node customer spend with KLA Services Customer Approach: Harvesting parts from older tools, l
Slide 13: Successfully Implementing the KLA Operating Model Across Services
Successfully Implementing the KLA Operating Model Across Services Collaboration KLA Services teams embedded with customers, supporting achievement of customer goals Deep supplier relationships ensure supply continuity and higher quality Closely coordinated with KLA design and manufacturing ope
Slide 14: Multi-Faceted Services Innovation Strategy
Multi-Faceted Services Innovation Strategy Human Capital Attract and retain innovative talent Onboarding new skill sets and capabilities Mixed Reality Support Developing augmented reality-based Expedited Delivery solutions for remote services that allow for Augmented localized teams to allow for
Slide 15: Service Innovation Drives Customer Value
Service Innovation Drives Customer Value Evolution of KLA Digital Twin Third generation of complex parametric and configuration data gathering Analyze parameters for install validation, customer matching requirements, and recipe development, driving faster time-to-scale and frictionless integrat
Slide 16: KLA Services Roadmap Improving Customer Value
KLA Services Roadmap Improving Customer Value Continuous Real-time Feedback Global Fab Loop Analytics Self Advanced Calibration & CSE Assisted Customer-selected Service Level Repair System Actionable Insights Resourcing Smart Order Insights and Dispatch Driven by KLA In-Fab Real-time Network Cloud-b
Slide 17: Successfully Implementing the KLA Operating Model Across Services
Successfully Implementing the KLA Operating Model Across Services Collaboration KLA Services teams embedded with customers, supporting achievement of customer goals Deep supplier relationships ensure supply continuity and higher quality Closely coordinated with KLA design, manufacturing and op
Slide 18: Talent & Culture Underpin KLA Services Execution
Talent & Culture Underpin KLA Services Execution Technical Training Regionalized Parts and Customized Service Install & Support Engineering Services Customer Experience Logistics Outcome Services Foundation Depth Experience Education >3,000 Services employees Comprehensive 9-18 month training proces
Slide 19: Case Study: Integrating Services from Acquired Businesses
Case Study: Integrating Services from Acquired Businesses Environment Pre-Acquisition Results Primary focus is on new tool penetration and adoption Limited investment in inventory to support just-in-time delivery of spare parts Services revenue per EPC service revenue Significant incremental i
Slide 20: Revenue Increasing at Faster Pace: Exceeding $3B by 2026
Revenue Increasing at Faster Pace: Exceeding $3B by 2026 KLA Services Revenue 1 Highest percentage 3,000 of pure service revenue 3,500 in the industry 2,000 3,000 $M 1,000 2,500 12%-14% CAG R Resilient and predictable 2,000 0 40 Years to +4 years +4 years $M Achieve 1,500 1,000 Strong generator of F
Slide 21: Services | Driving Sustainable Outperformance
Services | Driving Sustainable Outperformance ~$0.2B ~$3.3B ~$1.3B $1.8B CY21 Semi Process Electronics, Packaging CY26CY26E Estimate Control & Components 21
Slide 22: Services | Key Takeaways
Services | Key Takeaways 1 2 3 4 5 Strong customer Uniquely positioned Evolving data and Proven Operating Industry-leading value proposition: to support High analytics program: Model powers scale, service model with partner with Complexity, High Mix, moving Services’ efficiency, and >75% of revenue