Kla Corporation · NASDAQ:KLAC
Kla — Investor Day (March 2026)
173 slides from Kla's investor day presentation, Mar 12, 2026
Slide 1: Welcome to Investor Day
Welcome to Investor Day March 12, 2026
Slide 2: Welcome and Agenda Overview
Welcome and Agenda Overview Bren Higgins, EVP, CFO and Global Operations March 12, 2026
Slide 3: Today's Agenda – March 12, 2026
Today’s Agenda – March 12, 2026 9:00 AM Welcome & Agenda Overview Bren Higgins| EVP, CFO and Global Operations 9:05 AM Compounding Sustainable Outperformance Rick Wallace | President and CEO 9:40 AM Process Control for the AI Era Ahmad Khan | President, Semiconductor Products and Customers 10:30 AM
Slide 4: Forward Looking Statements
Forward Looking Statements Statements in this presentation other than historical facts, such as statements pertaining to: (i) our financial guidance for the quarter ending March 31, 2026; (ii) the future size of the wafer equipment industry, including advanced packaging; (iii) the industry growth ra
Slide 5: Guidance for Q3 FY2026
Guidance for Q3 FY2026 – March 2026 Quarter March 2026 Quarter Guidance Macro Assumptions Revenue $3.35B +/- $150M Semi PC Revenue By End Market ▪ Foundry/Logic: ~60% Non-GAAP ▪ Memory: ~40% → DRAM ~85% | NAND ~15% 61.75% +/- 1% Gross Margin* Model Assumptions GAAP Diluted $8.85 +/- $0.78 ▪ Non-GAAP
Slide 6: March 12, 2026 Business Update
March 12, 2026 Business Update Industry ▪ CY26 business environment continues to strengthen across all segments; Foundry / Logic, Memory and Advanced Packaging ▪ Wafer Equipment, incl. Advanced Packaging, now expected to be in the range of $135-140B (up ~11 to 15% from CY25) ▪ CY27 visibility improv
Slide 7: March 12, 2026 Business Update
March 12, 2026 Business Update Industry ▪ CY26 business environment continues to strengthen across all segments; Foundry / Logic, Memory and Advanced Packaging ▪ Wafer Equipment, incl. Advanced Packaging, now expected to be in the range of $135-140B (up ~11 to 15% from CY25) ▪ CY27 visibility improv
Slide 8: Compounding Sustainable Outperformance
Compounding Sustainable Outperformance Rick Wallace, President & CEO March 12, 2026
Slide 9: Today's Key Themes
Today’s Key Themes Uniquely positioned for growth as technology 1 complexity and AI increases Deep customer relationships and our KLA Operating 2 Model driving sustainable outperformance Best-in-class technology compounder strategically 3 building on a strong track record of value creation 9 KLA Non
Slide 10: Agenda
Agenda 1 Who we are 2 Semiconductor landscape 3 Role of process control 4 KLA’s offerings 5 Measuring success 10 KLA Non-Confidential | Unrestricted
Slide 11: KLA at a Glance
KLA at a Glance Global Technology Leader Founded in Headquarters in Providing advanced 1976 Milpitas, CA inspection tools, metrology systems, process solutions and data analytics for manufacturing ~16,500 $12.74B semiconductors Employees CY2025 Revenue 11 KLA Non-Confidential | Unrestricted
Slide 12: Strong Leadership Team Driving Outperformance
Strong Leadership Team Driving Outperformance Leveraging the KLA Operating Model Rick Wallace Bren Higgins Ahmad Khan Brian Lorig President and EVP, Chief Financial Officer President, Semiconductor EVP, Chief Executive Officer & Global Operations Products & Customers KLA Global Services Joined: 1988
Slide 13: The Semiconductor Industry Hierarchy
The Semiconductor Industry Hierarchy Electronics + AI Data Centers Semiconductor Revenue Fabs + Equipment Equipment Front End & Packaging Process Control Inspection & Metrology 13 KLA Non-Confidential | Unrestricted
Slide 14: Agenda
Agenda 1 Who we are 2 Semiconductor landscape 3 Role of process control 4 KLA’s offerings 5 Measuring success 14 KLA Non-Confidential | Unrestricted
Slide 15: Semiconductor Growth Driven by Evolving End Markets
Semiconductor Growth Driven by Evolving End Markets More Players Designing Semiconductors $900 AI Acceleration $800 Semiconductor Revenue ($B) Ecosystems Driving Leading-Edge Growth $700 $600 Cloud & $500 Hyperscalers $400 Mobile & $300 Networking & Smartphone $200 Personal Internet Computing $100 $
Slide 16: GPUs in the AI Data Center – KLA Example
GPUs in the AI Data Center – KLA Example 2021 Last Generation Processor CPU based Algos Historical Code change Baseline Cost 1x Power 1x Switching Costs to GPU-Based Server Relatively High – Far Superior New Platform 16 KLA Non-Confidential | Unrestricted
Slide 17: GPUs in the AI Data Center – KLA Example
GPUs in the AI Data Center – KLA Example 2021 Last New Generation Generation (Option 1) Processor CPU based CPU based Algos Historical Historical Code change Baseline Minimal Cost 1x 1.8x Power 1x 1.5x Switching Costs to GPU-Based Server Relatively High – Far Superior New Platform 17 KLA Non-Confide
Slide 18: GPUs in the AI Data Center – KLA Example
GPUs in the AI Data Center – KLA Example 2021 Last New Generation New Generation Generation (Option 1) (Option 2) Processor CPU based CPU based GPU Based Algos Historical Historical New / Much Better Code Baseline Minimal Major change Cost 1x 1.8x 1.2x Power 1x 1.5x .7x Switching Costs to GPU-Based
Slide 19: The Unique Challenges of HPC / AI
The Unique Challenges of HPC / AI Logic Size & Memory Advanced Complexity Packaging If KLA Could Design a Market – This Would Be It 19 KLA Non-Confidential | Unrestricted
Slide 20: AI is the Primary Driver Behind More Designs
AI is the Primary Driver Behind More Designs by More Players Drivers for “Custom Silicon” ▪ PC / smartphone optimization ▪ Cloud compute optimization ▪ Silicon “systems” for AI ▪ Silicon “systems” for Gen AI 28nm 20nm 16nm 10nm 7nm 5nm 3nm 2nm Design Starts Sources: KLA Analysis, TechInsights Mar 26
Slide 21: Agenda
Agenda 1 Who we are 2 Semiconductor landscape 3 Role of process control 4 KLA’s offerings 5 Measuring success 21 KLA Non-Confidential | Unrestricted
Slide 22: KLA – Inspection & Metrology for 50 Years
KLA – Inspection & Metrology for 50 Years We Originally Thought it was About Finding Defects and Making Measurements – It’s Not Inspection Metrology Find Critical Defects Measure Critical Parameters Learning faster is the only sustainable competitive advantage in semiconductor manufacturing You can’
Slide 23: Defects and Variations Occur Throughout the Process
Defects and Variations Occur Throughout the Process Sources of Defects Variations 1. Wafer Manufacturing 1. Film Thickness Variations 2. Reticle Manufacturing 3. Starting Materials 2. Critical Dimension Variations 4. Particles 5. Lithography Process 3. Overlay Errors 6. Etch Process 4. Line Edge Rou
Slide 24: The Role of Sampling in Intensity
The Role of Sampling in Intensity Decisions of Where and How Much to Measure and Inspect Drive Intensity Wafers Wafer PHOTO - Repeat REPEAT Wafers Deposition Lithography LITHOGRAPHY Etch CMP PROCESS Packaging Quality Process Photomasks Reticle LITHOGRAPHY Reticles Quality QUALITY 24 KLA Non-Confiden
Slide 25: Complexity & Economics Drive Process Control Intensity
Complexity & Economics Drive Process Control Intensity 100.00% $100.0 $90.0 ▪ Technology transitions 80.00% $80.0 ▪ Shrinking process windows $70.0 ▪ More process steps ▪ More process flows Wafer Equipment $ 60.00% $60.0 PC Intensity % ▪ Increased # of designs $50.0 ▪ Larger chips 40.00% $40.0 ▪ Les
Slide 26: Agenda
Agenda 1 Who we are 2 Semiconductor landscape 3 Role of process control 4 KLA’s offerings 5 Measuring success 26 KLA Non-Confidential | Unrestricted
Slide 27: There is a KLA System for Each Need
There is a KLA System for Each Inspection & Measurement Need higher Inspection Offerings Measurement Offerings e-Beam ▪ Overlay ▪ Wafer Shape ▪ Films ▪ Reticle Pattern BBP ▪ Dimension ▪ In Situ Process Sensitivity Laser Scanning Current layer Overlay error Macro Bare Wafer Previous layer lower Top-d
Slide 28: KLA Services Enhance Life of Investment
KLA Services Enhance Life of Investment for Customers High Mix, High Complexity Drives Valuable Services Offerings 70000 Installed Base 60000 50000 ▪ Ramp management 40000 ▪ Lifecycle management ▪ Predictive maintenance 30000 ▪ Training ▪ Software applications 20000 ▪ Fab optimization & relocation ▪
Slide 29: Agenda
Agenda 1 Who we are 2 Semiconductor landscape 3 Role of process control 4 KLA’s offerings 5 Measuring success 29 KLA Non-Confidential | Unrestricted
Slide 30: The KLA Operating Model Guides Our Strategy
The KLA Operating Model Guides Our Strategy and Differentiation KLA Operating Model at Work ▪ Common language across multiple divisions ▪ BKMs implemented across acquired companies ▪ Operational rigor to prioritize performance ▪ Scorecard measurement against progress Scorecard Example by Business Gr
Slide 31: Driving Process Control Intensity
Driving Process Control Intensity ($M) Wafer Equipment vs. KLA Process Control ($M) $150,000 $10,000 Segment 19-25 CAGR $120,000 $8,000 Lithography 16% Process Control 16% KLA PC Revenue Wafer Equipment $90,000 $6,000 Deposition 15% $60,000 $4,000 Etch 10% Other Equipment 12% $30,000 $2,000 Wafer Eq
Slide 32: Technical Investments are Essential to Our Portfolio Strategy
Technical Investments are Essential to Our Portfolio Strategy R&D Investment1 1,600 1,400 1,200 1,000 $M 800 600 400 200 - CY19 CY20 CY21 CY22 CY23 CY24 CY25 Consistent Investment in R&D Drives Our Differentiated Portfolio Advantage 32 KLA Non-Confidential | Unrestricted 1 Numbers reflected are non-
Slide 33: Driving Market Leadership Through Technology Investment
Driving Market Leadership Through Technology Investment Illumination Sources broadband plasmas, lasers, LEDs, X-rays, electron beams Optics objectives, lenses, mirrors, polarizers, filters for DUV/UV/Vis/IR light, X-rays, electron-beams Sensors image sensors, photo multiplier tubes, CMOS sensors, ca
Slide 34: Long-Term Innovation Roadmaps Critical
Long-Term Innovation Roadmaps Critical for Competitive Advantage 2020 23xx 29xx 39xx Off-the-shelf objective First broadband UV 0.9 NA Broadband DUV objective SR-DUV objective, 300kg microscope objective in history 1984 1999 2005 2016 480 – 700nm 360 – 700nm 260 – 450nm 190 – 260nm 34 KLA Non-Confid
Slide 35: Market Leadership Over Time
Market Leadership Over Time #1 Market Position is Driven by Technology Differentiation and Strength in Execution Process Control Market Share 60% KLA 50% 40% 56.5% 30% KLA Share in 2024 20% ▪ Up 2% from 2021 Comp A 10% Comp B Comp C ▪ 6.5x nearest competitor Comp D Comp E 0% 2010 2012 2014 2016 2018
Slide 36: Services Revenue Continuous Growth
Services Revenue Continuous Growth as Installed Base Expands 3.50 Service Revenue ($B) 3.00 2.50 2.00 1.50 1.00 0.50 0.00 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 36 KLA Non-Confidential | Unrestricted Note: cal
Slide 37: Relentless Focus on Financial Performance
Relentless Focus on Financial Performance Product Differentiation Operational Excellence Measured by Gross Margin1 Measured by Operating Margin1 KLA Semi Cap Peers2 KLA Semi Cap Peers2 Collaboration, Innovation and Execution Drive KLA’s Differentiation and Industry-Leading Margins Source: Bloomberg;
Slide 38: KLA Focuses on Finding and Keeping Great Talent
KLA Focuses on Finding and Keeping Great Talent Attracting Engaging Retaining ▪ World class technology ▪ Strong culture ▪ Competitive compensation ▪ Global leadership ▪ World class problems ▪ Promote from within ▪ Critical industry ▪ Continuous learning opportunities ▪ Pride in being part of KLA 38
Slide 39: The Industry has Changed Since Our Investor Days
The Industry has Changed Since our 2019 & 2022 Investor Days Where We Are Now AI is driving the Process Control enables KLA will be successful semiconductor industry the advances needed for regardless of who wins and enabling KLA the AI buildout the rest of the AI stack 39 KLA Non-Confidential | Unr
Slide 40: 2030 Model Assumptions
2030 Model Assumptions Semi Market ~11% CAGR CY25-CY30 Capital Intensity Equipment growth slightly > Semi to $215B +/- $20B Process Control Market Growth > Wafer Equipment Growth at leading edge of core WFE KLA Share Advanced packaging augments growth Services Growth at 13-15% 40 KLA Non-Confidentia
Slide 41: Keep Looking Ahead
Keep Looking Ahead $26B Sustainable outperformance +/- $2.5B driven by KLA Operating Model Target 2030 Revenue 2030 Target Model powered by collaboration, innovation and execution $84 Optimizing total shareholder +/- $8.00 return with a focus on assertive Target 2030 capital allocation Diluted EPS*
Slide 42: Process Control for the AI Era
Process Control for the AI Era Ahmad Khan President, Semiconductor Products and Customers March 12, 2026
Slide 43: Key Messages
Key Messages Inflections, share gains and portfolio expansion 1 will increase KLA’s process control intensity from 7.4% (CY25) to ~9% (CY30) Strong customer collaboration enables a broad, 2 differentiated product portfolio, reinforcing KLA’s competitive advantage Unique, connected portfolio, driven
Slide 44: KLA – Inspection & Metrology for 50 Years
KLA – Inspection & Metrology for 50 Years We Originally Thought it was About Finding Defects and Making Measurements – It’s Not Inspection Metrology Find Critical Defects Measure Critical Parameters Learning faster is the only sustainable competitive advantage in semiconductor manufacturing You can’
Slide 45: KLA Supports Markets Across the Semiconductor Ecosystem
KLA Supports Markets Across the Semiconductor Ecosystem Our Comprehensive Solutions and Expertise Play a Crucial Role in Enabling AI Chips Wafer-Level Packaging Components Printed Circuit Boards Logic | Foundry Memory Specialty | Legacy Wafers Reticles Semiconductor OEMs Chemicals | Materials IC Sub
Slide 46: KLA's Indispensable Process Control Portfolio
KLA’s Indispensable Process Control Portfolio Provides Solutions for Manufacturing Success BBP Patterned Wafer Inspection LS Patterned Wafer Inspection Macro Patterned Wafer Inspection Systems and All-Surface Patterned Wafer Inspection Inspection Unpatterned Wafer Inspection Co-Intelligence e-Beam I
Slide 47: The KLA Operating Model Provides a Strategic Engine
The KLA Operating Model Provides a Strategic Engine for Product Differentiation and Competitive Advantage Strategy: Provide leading technologies, differentiated solutions and superior customer experiences by leveraging our operating model Collaboration Innovation Execution KLA builds strong customer
Slide 48: Systems Market-Leading Performance
Systems Market-Leading Performance Our Ability to Uniquely Solve Our Customers’ Critical Challenges Drives Success $9.8B $9.0B 19% 62.8% Systems Revenue1 Semi PC Revenue1 Semi PC Revenue CAGR KLA Gross Margin1 CY25 CY25 CY19 – CY25 CY25 $1.44B >65% 56.5% 7.4% R&D1 PhD/Master’s Among Process Control
Slide 49: KLA Semi PC Share of Wafer Equipment
KLA Semi PC Share of Wafer Equipment Multiple Device Segments in R&D and HVM Drive New +7% Baseline Wafer Equipment ($B) $60 $56 $65 $93 $101 $99 $109 $122 9.0% 8.0% 7.4% 7.4% 6.8% 6.9% 7.0% 7.0% 7.1% 6.7% 6.0% 5.7% 5.7% 5.8% 6.4% 5.5% Annualized 5.8% 5.6% 3 Year Rolling Average 5.0% 5.3% 5.4% 4.0%
Slide 50: KLA Continues to Decisively Lead the Industry
KLA Continues to Decisively Lead the Industry #1 Market Position is Driven by Technology Differentiation and Strength in Execution Process Control Market Share 60% 50% KLA 56.5% KLA Share in 2024 40% ▪ Up 2% from 2021 30% ▪ 6.5x nearest competitor 20% Comp A ▪ Gains in optical, e-beam, 10% Comp B ad
Slide 51: Multiple Process Control Segments Drive Intensity and Share
Multiple Process Control Segments Drive Intensity and Share Higher Cost of Failure in Today’s AI-Driven Semiconductor Landscape Reticle Inspection Unpatterned Inspection Optical Inspection e-Beam Inspection ▪ 100% defect capture is ▪ More process steps, ▪ More layers ▪ 3D architectures introduce man
Slide 52: The KLA Operating Model Drives Semi PC Success
The KLA Operating Model Drives Semi PC Success Customer Collaboration Product Innovation Execution Technology High-Volume Point Product Co-Intelligent 2030 Target Inflections Manufacturing Differentiation Solutions Model 52 KLA Non-Confidential | Unrestricted
Slide 53: The KLA Operating Model Drives Semi PC Success
The KLA Operating Model Drives Semi PC Success Customer Collaboration Technology Inflections AI-Based Inflections and Chip Complexity Drive Process Control Intensity and Share 53 KLA Non-Confidential | Unrestricted
Slide 54: Evolution of AI
Evolution of AI AI Growth Will Drive Significant Demand for Compute Resources Phase 1 Phase 2 Phase 3 Phase 4 Training Scale Up Inference at Scale Cognitive Leap Agentic Economy Foundation Simple Deep Autonomous Building Reasoning Reasoning Work 54 KLA Non-Confidential | Unrestricted
Slide 55: Semiconductor Enablers of AI Evolution
Semiconductor Enablers of AI Evolution AI Drives Growth in All Device Segments CPU GPU HBM DRAM Flash Orchestration AI Compute Weights Conversations Conversation Key-Value (KV) Cache History Logic Memory 55 KLA Non-Confidential | Unrestricted
Slide 56: AI Accelerates Semiconductor Innovation
AI Accelerates Semiconductor Innovation Multiple, Leading-Edge Chips Are Assembled to Form a Complete System AI Accelerator for Server Leading-edge logic GPUs Multiple HBM modules, 8 to 12 chip stacks Large, complex package using 2.5D/3D heterogeneous integration and ~100 chips 56 KLA Non-Confidenti
Slide 57: AI-Driven Inflections Accelerate Challenges for Our Customers
AI-Driven Inflections Accelerate Challenges for Our Customers Advanced Logic Memory Advanced Packaging ▪ More logic, less pattern ▪ Smaller pattern dimensions ▪ Chip stacking redundancy ▪ Larger chip size ▪ Larger chip size ▪ Rising package value ▪ 3D transistor architectures ▪ EUV ▪ Interconnect sc
Slide 58: Critical Defect Monitoring and Increased Variability Control
Critical Defect Monitoring and Increased Variability Control Logic Inflections are Required for Advanced Logic Manufacturing Smaller Pattern Dimensions Larger Chip Sizes ▪ Variability is inversely proportional to printed feature size ▪ Steep yield erosion on larger chip sizes 600 chips per wafer 1%
Slide 59: Complex Transistor Architectures Increase Demand for Logic
Complex Transistor Architectures Increase Demand for Logic Inflections Defect and Variability Control Inspection 3D Transistor Inflections Metrology find critical defects measure critical parameters Increase Yield Increase Performance Buried defectivity Work function metal and HKMG F thickness a. Sp
Slide 60: KLA's Products Deliver Solutions for Critical Logic Challenges
KLA’s Products Deliver Solutions for Critical Logic Challenges Collaboration Patterned Wafer Inspection ▪ Comprehensive BBP and e-beam inspection portfolio provides capture Print Check (EUV) Electrical 30% of all critical defect types at Buried | Subsurface Increase in Number of Inspection Layers op
Slide 61: DRAM and HBM Memory Chip Designs Drive Requirements
DRAM and HBM Memory Chip Designs Drive High Yield and Memory Inflections Reliability Requirements Higher Performing EUV Large Less Circuit Logic Circuitry Lithography Chips Redundancy Better logic Patterning More logic, more Percentage of cell area Technology performance is advancement for DRAM tran
Slide 62: DRAM and HBM Memory Chip Designs Drive Requirements
DRAM and HBM Memory Chip Designs Drive High Yield and Memory Inflections Reliability Requirements Memory Production Trends EUV Adoption: DRAM EUV Reticle Requal More process control is required to mitigate rising variability and the increased severity of defects associated with: ▪ Smaller pattern fe
Slide 63: DRAM and HBM Memory Chip Designs Drive Requirements
DRAM and HBM Memory Chip Designs Drive High Yield and Memory Inflections Reliability Requirements Memory Production Trends Less Redundancy, Larger Chip Size: HBM Percentage of Chip Area That is: More process control is required to mitigate Non-Memory rising variability and the increased severity of
Slide 64: KLA's Products Deliver Solutions for Critical Memory Challenges
KLA’s Products Deliver Solutions for Critical Memory Challenges Collaboration Increasing DRAM Intensity (% of Wafer Equipment) ▪ BBP optical and e-beam inspection synergy enables fast production ramp 1.4x $450M ▪ New Gen4 and Gen5 BBP optical inspection KLA Incremental Intensity platforms provide se
Slide 65: Advanced Packaging Compounds Integration Complexity
Advanced Packaging Compounds Integration Complexity and Packaging Inflections Potential Yield Loss 3D Stacking GPU logic 2 Yield HBM Wafer-Level 2.5D Assembly DRAM memory 1 Chip Yield Logic, Memory, Interposer 3 Yield CoWoS, SoIC, … INTERPOSER High Chip Content = $$$ >100 chips per package 65 KLA No
Slide 66: KLA's Products Deliver Solutions for Advanced Packaging Ramp
KLA’s Products Deliver Solutions for Advanced Packaging Ramp Packaging Inflections Patterned Inspection 2008 wafer, frame Kronos Puma Voyager® 29xx High Throughput High Sensitivity ▪ Technology and Continued platform experience from evolution and ICOS front end process Surfscan® CIRCL -AP eDR7380 Mi
Slide 67: Interconnect Scaling in Advanced Packaging Drives Intensity
Interconnect Scaling in Advanced Packaging Drives Packaging Inflections Process Control Intensity Microbump Hybrid Bond Interconnect Scaling Bump Pitch (µm) 20 – 50 <10 ▪ Smaller 2D and 3D pattern dimensions and Bump Height (µm) 10 – 25 -0.010* – 0 pitch require more sensitive inspection and more ac
Slide 68: KLA's Products Deliver Solutions for Advanced Packaging Ramp
KLA’s Products Deliver Solutions for Advanced Packaging Ramp Close Customer Partnerships Resulted in ~4x Increase in Market Share in Four Years 50% ~$950M Process Control Market Share (%) 40% KLA Advanced Packaging Revenue in 2025 30% 20% #1 Market 10% Share in Process Control 0% in 2025 2020 2021 2
Slide 69: The KLA Operating Model Drives Semi PC Success
The KLA Operating Model Drives Semi PC Success Customer Collaboration High-Volume Manufacturing Production Variability and Increased Design Starts Require More Intensive Process Control 69 KLA Non-Confidential | Unrestricted
Slide 70: Relentless Challenges Faced by a High-Volume Manufacturing Fab
Relentless Challenges Faced by a High-Volume Manufacturing Fab Control 100s of process Maintain yield and Fabricate complex tools that execute quality for production device structures with >1,000 process steps to of multiple designs nanoscale precision produce functional chips at 100,000 WSPM featur
Slide 71: Increased Sampling is Needed to Find and Monitor Yield Challenges
Increased Sampling is Needed to Find and Monitor Yield Challenges More Sampling Leads to Higher Adoption of Process Control What Process % of Lots? Wafers per Lot? % of Wafer? Sensitivity? Layers? Layer 1 Layer 2 50nm 25nm >1500 10nm Inflections HVM Variability HVM Variability Smaller Pixels, Multi-
Slide 72: KLA's Products Deliver Solutions for Leading-Edge HVM
KLA’s Products Deliver Solutions for Leading-Edge High-Volume Manufacturing Deep Collaboration | Process Control Expertise | Portfolio ▪ One process loop shown 1 2 3 4 5 6 7 Process Steps ▪ Many process loops make up >1,000 process steps 1. Process ▪ Determine defectivity Mapping level in loop 2. De
Slide 73: Process Control Improves Productivity, Predictability and Profitability of a Fab
Process Control Improves the Productivity, Predictability and Profitability of a Fab Throughout the Manufacturing Lifecycle Random Defect Types | Sources Detect Random: uncorrelated, non-predictable Stochastic ▪ Process particles Measure and Model ▪ Equipment wear-out (bearings, seals, valves) ▪ Spo
Slide 74: KLA's Products Deliver Solutions for High-Volume Manufacturing
KLA’s Products Deliver Solutions for High-Volume Manufacturing Process Control Spend Grows with Capacity at Smaller Design Nodes High-Volume Manufacturing Investment Profile $4X N Process Control Spend ($M) $3X N-1 $2X N-2 $X Capacity (K) 74 KLA Non-Confidential | Unrestricted Source: KLA internal a
Slide 75: Enabling Customer Success Drives Our Success
Enabling Customer Success Drives Our Success Semi PC Market Baseline Semi PC Relative Outperformance from 2018 – 2025 $8.5B Revenue ($B) Process Control Intensity and Share Drivers ▪ Architectural complexity and scaling in logic, memory and advanced packaging ▪ Variability control in HVM 2018 2019 2
Slide 76: The KLA Operating Model Drives Semi PC Success
The KLA Operating Model Drives Semi PC Success Product Innovation Point Product Differentiation Core technologies and AI produce world-class products 76 KLA Non-Confidential | Unrestricted
Slide 77: Our Products Require Best-in-Class Signal
Our Products Require Best-in-Class Signal Coupled with Fast, Accurate Processing of Large Data Sets Optical inspectors find critical defects with full wafer coverage Collection Processing Results scan full wafer real time image analysis report defects images 77 KLA Non-Confidential | Unrestricted
Slide 78: KLA's Core Technologies and Expertise
KLA’s Core Technologies and Expertise Optical Inspection Architecture light optics sensors pixels algorithms k factors 78 KLA Non-Confidential | Unrestricted
Slide 79: Gen5 BBP Optical Inspection Unique Technologies
Gen5 BBP Optical Inspection Unique Technologies Light Optics Sensor DUV broadband source 300kg catadioptric Massively parallel data that is >2x the brightness objective with CaF2 collection equivalent to of the surface of the sun crystal >2,000 smartphones simultaneously taking a photo every second
Slide 80: Best-in-Class Signal Required to Find Nanoscale Defects
Best-in-Class Signal Required to Find Nanoscale Defects / Variations Advancements in Core Technologies Improve Resolution and Contrast, and Reduce Noise contrast resolution contrast Pure Signal 80 KLA Non-Confidential | Unrestricted
Slide 81: Broadband Optical Inspection Delivers Unique Value
Broadband Optical Inspection Delivers Unique Value Gen4 and Gen5 provide the widest wavelength Full wafer inspection is critically important Sensitivity range to find all defect types and sizes Coverage as defects can occur anywhere Yield-impacting defects can occur anywhere on the wafer Yield-Criti
Slide 82: Framework for Extending System Performance
Framework for Extending System Performance Visible UV DUV Next Year 1990 1995 21xx 2000 2005 23xx 2010 28xx 2015 LEVERAGE CORE TECHNOLOGIES 2020 29xx 39xx 2025 Gen4 Gen5 2030 2035 Gen6 82 KLA Non-Confidential | Unrestricted
Slide 83: Fast, Accurate Processing of Data Required for Wafer Coverage
Fast, Accurate Processing of Data Required for Wafer Coverage An optical inspector collects 78 trillion pixels contained in 65 million frames per wafer One BBP tool generates: using ~125 TB/hour 40 GPPS image sensors ~1 PB in an 8 hour shift and GPU-based image 60 GB/s computers running AI-based alg
Slide 84: AI at KLA: Five Layers Form a Differentiated Solution
AI at KLA: Five Layers Form a Differentiated Solution 5 Applications Workflows for fab-wide process control 4 AI Models Models trained in optics, design and context 3 Software Infrastructure to manage high- volume, high data rate information in a production environment 2 High-Performance Compute GPU
Slide 85: KLA's AI Stack: Layer 2
KLA’s AI Stack: Layer 2 High-Performance Compute with CPU/GPU Infrastructure Optimizes System Performance and Cost Big Data Infrastructure High-Performance Compute Architecture Improved Inspection Sensitivity is Achieved through Smaller Pixels, Lead Compute Worker Cluster Storage Node Rack Enabling
Slide 86: KLA's AI Stack: Layer 4
KLA’s AI Stack: Layer 4 Models Trained in Optics, Design and Context Optics | Design Info Pixel-Level Learning Context Mapping DL-Based Detection ▪ Sub-pixel aligned optics ▪ Learn features at every pixel ▪ Learned segmentation from ▪ Enhanced defect capture and ▪ Design and e-beam images design nui
Slide 87: The KLA Operating Model Drives Semi PC Success
The KLA Operating Model Drives Semi PC Success Product Innovation Co-Intelligent Solutions Connected portfolio accelerates customer yield 87 KLA Non-Confidential | Unrestricted
Slide 88: Reticle Quality is Critical; Inspection Challenges are Many
Reticle Quality is Critical; Inspection Challenges are Many 100% Capture of Defects is Required Large Chip Size Reticle defect Repeater defect in every chip on the wafer: Unique reference catastrophic to yield needed for inspection EUV Prints Smaller Patterns, Smaller Defects Many Different Defect T
Slide 89: Reticle Quality is Critical in Both the Mask Shop and IC Fab
Reticle Quality is Critical in Both the Mask Shop and IC Fab Mask Shop – where reticles are made IC Fab – where reticles are used to make chips reticle blank patterned reticle patterned wafer IN OUT OUT clean etch implant wafer processing reticle processing litho dep dep resist, e-beam write, develo
Slide 90: Number and Mix of Reticles Used in Chip Production
Number and Mix of Reticles Used in Chip Production Drive the Need for a Reticle Portfolio Inspection Strategy Number of Reticles Lithography 193 | 193i EUV Technology 50+ Reticles 20+ Reticles = Advanced Number of Designs Logic Inspection DUV High Sensitivity x Technology 65+ Reticles 3-5 Reticles N
Slide 91: KLA's Reticle Product Portfolio has Evolved
KLA’s Reticle Product Portfolio has Evolved to Support Reticle Inspection Challenges Litho Wavelength Use Case Release Date Optical Teron 610/630/640 193/193i >70 nm 2009 Mask Shop Teron 640e/eS/eS2 EUV >3x nm 2017 TeraBeam® 8xx EUV 1x nm - 3x nm 2026 2x nm – 3x nm* Actinic 7xx EUV *Requires NA Chan
Slide 92: TeraBeam 8xx: High Resolution Reticle Pattern Inspection
TeraBeam® 8xx: High Resolution Reticle Pattern Inspection Critical for Finding the Smallest Defects Written on Reticle TeraBeam® 8xx Complex, Differentiated, Multi-Column e-Beam Technology Captures Critical Defects on Advanced Reticles 92 KLA Non-Confidential | Unrestricted
Slide 93: TeraBeam 8xx: High Resolution Reticle Pattern Inspection
TeraBeam® 8xx: High Resolution Reticle Pattern Inspection e-Beam: Ultimate Resolution for the Smallest Critical Defects Source: “High-resolution multi-column electron beam inspection for EUV reticle development and 93 KLA Non-Confidential | Unrestricted production,” SPIE Advanced Lithography + Patte
Slide 94: High-Volume Manufacturing Reticle Requalification Requires Co-Intelligent Solutions
High-Volume Manufacturing Reticle Requalification Requires Co-Intelligent Solutions No Escape Risk at Optimized Cost Significant Adoption Across Logic and DRAM Cumulative Units for Reticle Requal in IC Fab Defense 1 DUV Reticle Requal and Gen5 Wafer Print Check 1 inspection for every ~100-200 wafers
Slide 95: KLA's e-Beam Portfolio: Point Product Differentiation
KLA’s e-Beam Portfolio: Point Product Differentiation Supports Co-Intelligent Solutions 1 If you can detect with optical, you always use optical 1nm Range of Defect Sizes Covered by High Sensitivity Inspection 50nm 2 GAA Transistor Architecture 3 Co-Intelligent Solution: Optical and e-Beam ▪ New sub
Slide 96: KLA's e-Beam Portfolio: Point Product Differentiation
KLA’s e-Beam Portfolio: Point Product Differentiation Supports Co-Intelligent Solutions eSi50 eSV100 eDRX1 eM200 single beam inspection multi-beam inspection review metrology Discover Critical Defects Identify and Classify Measure Critical Defects Parameters Differentiated e-Beam Portfolio Supports
Slide 97: BBP and e-Beam Co-Intelligent Solution
BBP and e-Beam Co-Intelligent Solution: Fast Cycles | Higher Yield eSi50 single beam Gen4 | Gen5 BBP optical inspection eDRX1 review BBP Test Image e-beam inspection wafer-level monitoring e-beam baseline validation BBP Difference Image eSV100 multi-beam AI Compute eM200 metrology AI and e-Beam Syne
Slide 98: BBP Optical Inspection Success
BBP Optical Inspection Success ~$8.5B ~30% >600 >180 BBP Optical Inspection BBP Optical Inspection Gen4 Systems Gen5 Systems Revenue CAGR Shipped Shipped CY22 – CY25 CY19 – CY25 release to end of CY25 release to end of CY25 Gen4 Gen5 R90x | 29xx 39xx BBP Optical Inspection is Required for Yield, Rel
Slide 99: 2030 Systems Target Model
2030 Systems Target Model 99 KLA Non-Confidential | Unrestricted
Slide 100: Strategy Drives Outperformance
Strategy Drives Outperformance Strategy: Provide leading technologies, differentiated solutions and superior customer experiences by leveraging our operating model Collaborate Innovate Logic Memory Advanced High-Volume BBP Optical Reticle e-Beam Portfolio Inflections Demand Packaging Manufacturing I
Slide 101: KLA Systems 2030 Target Model
KLA Systems 2030 Target Model $3.1B $20.5B $7.6B 11% - 13% CAGR Market 15% - 17% CAGR $9.8B Systems Revenue Semi PC CAGR ~4.5% > Market CAGR CY25 Market Baseline Market Outperformance CY30E Achieving Our CY30 Targets through Continued Product Differentiation and Portfolio Solutions for R&D and HVM 1
Slide 102: 10-Minute Break
10-Minute Break 102 KLA Non-Confidential | Unrestricted
Slide 103: Growing a Durable Revenue Stream Through a Best-In-Class Service Business
Growing a Durable Revenue Stream Through a Best-In-Class Service Business Brian Lorig, EVP, Global Services March 12, 2026
Slide 104: Key Messages
Key Messages Enabling customer success with deep partnerships and 1 service excellence aligned with customer outcomes Depth of KLA data and rigorous KLA Operating Model 2 improves customer experience, drives productivity and enables AI-powered application development Industry-leading service model w
Slide 105: KLA Services Supports Customers with Global Infrastructure
KLA Services Supports Customers with Global Infrastructure Providing Critical Expertise and Parts to Maximize the Value of Customers’ KLA Tools >57,000 >4,000 >250,000 >3,500 >260,000 Tools in the Customer Annual Service Unique assemblies installed base facilities service calls engineers & spare par
Slide 106: KLA Portfolio: High Mix, High Complexity, Lower Redundancy, Long Life
KLA Portfolio: High Mix, High Complexity, Lower Redundancy, Long Life High Mix High Complexity Low Redundancy BBP RAPID eBeam LS Product Service SWIFT Surfscan ADE FaST Throughput @ Sensitivity + Availability @ Performance OMD SensArray LIS PCB Availability | Wafer Output Performance | System Peak S
Slide 107: KLA Product Portfolio Example: BBP
KLA Product Portfolio Example: BBP Every Division Contains Hundreds of Tool Options and Thousands of Parts BBP RAPID eBeam LS Broadband Plasma (BBP) tool family ~30 different product models SWIFT Surfscan ADE FaST ~150 tool model configurations OMD SensArray LIS PCB ~1,200 unique parts and sub assem
Slide 108: KLA Portfolio: Process Control Requires Different Service
KLA Portfolio: Process Control Requires Different Service High Complexity and Low Redundancy, Critical to Yield, Low Consumables High Process Control Process Control Process Installed Base Low Redundancy High Redundancy Tool Utilization ~Stable ~Variable Tool UT Process Part Content Proprietary Comm
Slide 109: Strong Track Record of Services Execution
Strong Track Record of Services Execution Tool Lifetime Attach Rate Service Revenue Per Tool Projected CAGR >24y >80% 13-15% 3X >14y >75% 12-14% >10y 9-11% >70% 2010 2020 2025 2019 2022 2025 Class of 2000 Class of 2010 Class of 2020 CY19 CY22 CY26E ▪ Median time to retirement of tools in ▪ Market in
Slide 110: Our Customer Challenges are Increasing
Our Customer Challenges are Increasing Yield Ramp and Optimization Geographic Expansion Device Complexity Skilled Talent Demands Fab Efficiency and Asset Unplanned Downtime Lifetime Extension 110 KLA Non-Confidential | Unrestricted
Slide 111: The KLA Operating Model is Foundational to Services Value
The KLA Operating Model is Foundational to Services Value COLLABORATE ▪ Fab lifecycle and optimization portfolio: development, ramp and global expansion ▪ Services designed to reduce variability and maximize asset return ▪ Modernize and extend long-lived installed base 111 KLA Non-Confidential | Unr
Slide 112: Services Value is Recognized by Customers
Services Value is Recognized by Customers Support network for greater availability @ performance Services infrastructure investment to support new fabs long before opening Hundreds of global recognitions, annually ▪ “Best Strategic Supplier" ▪ "Best Supplier of 2025" ▪ “Proactive Cooperation and Sup
Slide 113: Value of Contracts and Contract-Like Service Drives Share Over Time
Value of Contracts and Contract-Like Service Drives Share Over Time 100% 90% 95% of revenue is recurring: 80% inclusive of both contract and time- 70% and-materials % of service revenue 60% ~3-year average contract length: 50% fully comprehensive coverage for 40% maximum availability at performance
Slide 114: The KLA Operating Model is Foundational to Services Value
The KLA Operating Model is Foundational to Services Value INNOVATE ▪ Long service life results in rich data ▪ New models and applications to improve customer experience and increase productivity ▪ Roadmap to build and power new AI systems for proactive service delivery 114 KLA Non-Confidential | Unr
Slide 115: KLA Services AI-Powered Productivity Flywheel
KLA Services AI-Powered Productivity Flywheel Capturing and Leveraging Context in All Aspects of the Services Business People | Parts | Knowledge Tools in Fab KLA PRODUCTIVITY Training Tool Health Mixed learning distribution Parametric data monitoring Supply Chain KLA SERVICES Tool Performance Deman
Slide 116: KLA Services Applications Solve Customer Problems
KLA Services Applications Solve Customer Problems Customer Challenges Service Applications Portfolio IN T EL LI G E N ES CE Global remote support Yield Ramp and IC H Optimization Geographic Expansion RV UB SE Accelerated recipe deployment Predictive tool health insights Device Complexity Skilled Tal
Slide 117: Predictive Tool Health Insights: Reducing Unscheduled Downtime
Predictive Tool Health Insights: Reducing Unscheduled Downtime Old SPC Customer Experience Historical “Break & Fix” ▪ Unscheduled to scheduled ▪ Production management Sub-assembly ▪ Improved cost of ownership and cycle Today Autonomous time Health Assessment New SPC KLA Optimization Pre-position Exe
Slide 118: Autonomous Synchronization: 100% Performance 100% of the Time
Autonomous Synchronization: 100% Performance 100% of the Time After a service event, the tool must be Control matched to 25,000 configuration settings Reference Tool-to-Reference ~25,000 BEFORE: LIMITED VISIBILITY AFTER EVENT Customer Experience 40 Before After ▪ Reduced global fleet variability 35
Slide 119: On-Demand Agentic Expertise: Accelerating Time to Proficiency
On-Demand Agentic Expertise: Accelerating Time to Proficiency Extensive experience and training requirements Harvest Capture and aggregate >57,000 intelligence data from KLA Customer Experience High Mix Installed base: 24 years median network time to retirement ▪ Shared knowledge accelerates time to
Slide 120: The KLA Operating Model is Foundational to Services Value
The KLA Operating Model is Foundational to Services Value EXECUTE ▪ Deep and flexible global infrastructure delivers scale and high customer value, driving competitive advantage for KLA ▪ Service expertise supports customer investment across logic, memory and advanced packaging product lifecycle ▪ A
Slide 121: Services Revenue Growth Accelerates Across HBM Environments
Services Revenue Growth Accelerates Across HBM Environments Environment KLA Action Results HBM3 chip size: 3X mm2 Revenue growth ($M) DDR chip size: X mm2 Align on performance and availability 5x requirements Less redundancy, larger chip size Criticality and complexity driven product-based service p
Slide 122: Services Revenue Growth Accelerates Across Advanced Packaging
Services Revenue Growth Accelerates Across Advanced Packaging Environment KLA Action Results ▪ Technology and experience from front end process control systems ▪ Increasing device complexity and process control intensity Engineered outcome-based service models Revenue growth ($M) Patterned Inspectio
Slide 123: KLA Services Supports Global Expansion and Green Field Ramps
KLA Services Supports Global Expansion and Green Field Ramps Global Expansion ▪ Expertise in home country Customer Experience ▪ Hire and ramp local staff ▪ Faster yield ramp ▪ Global consistency in fab outcomes ▪ Follow-the-sun support ▪ Digital knowledge transfer KLA Advancements ▪ Scalable, cost-e
Slide 124: KLA Services Value and Revenue Span Tool Lifecycle
KLA Services Value and Revenue Span Tool Lifecycle ~5% Revenue from Leading-Edge ~65% Revenue from High-Volume ~30% Revenue from High-Volume Development Leading-Edge Manufacturing Legacy Node Manufacturing Output 𝑓(Capacity, Yield) R&D Ramp through HVM Legacy HVM Develop, ramp and rapidly Maximize…
Slide 125: Maximizing Customer ROI Through Tool Life Extension
Maximizing Customer ROI Through Tool Life Extension 30 Tool Lifetime Extending tool lifetime provides customers with the most 25 economic solution to producing older technologies, well beyond the standard industry depreciation time. 20 KLA Approach 15 ▪ Structural design and serviceability: Tools ar
Slide 126: Long Tool Life Drives Extended Customer Value and Service Durability
Long Tool Life Drives Extended Customer Value and Service Durability $6,000 A product line is assigned to a class based on the year it was introduced “Class of” Legend $5,000 2025 2020 $4,000 2015 2010 $3,000 $M 2005 2000 $2,000 1995 1990 $1,000 1989 and earlier $0 // Lifetime Service Revenue Exceed
Slide 127: 2030 Services Plan
2030 Services Plan 127 KLA Non-Confidential | Unrestricted
Slide 128: Our Commitments to Customers Deliver Commitments to Investors
Our Commitments to Customers Deliver Commitments to Investors Services Revenue Achieve over $5B in Services COLLABORATE 6.0 revenue in 2030 Enabling customer success with deep partnerships and service excellence aligned with customer outcomes 5.0 4.0 INNOVATE In 4 more years reached Depth of KLA dat
Slide 129: Path to 2030 Target Model
Path to 2030 Target Model Bren Higgins, EVP, CFO and Global Operations March 12, 2026
Slide 130: Key Messages | Path to 2030 Target Model
Key Messages | Path to 2030 Target Model KLA is well positioned to drive sustainable outperformance uniquely benefiting 1 from accelerating equipment growth fueled by high performance compute (HPC) infrastructure and AI, which is driving increasing process control intensity The KLA Operating Model f
Slide 131: Significant Progress Since 2022 Investor Day
Significant Progress Since 2022 Investor Day WHERE WE WERE WHERE WE ARE WHERE WE ARE GOING 2022 Investor Day 2026 Investor Day 2030 Target Model ▪ Target revenue of $14B +/- 500M and ▪ Delivered strong relative growth; Will exceed $14B ▪ Targeting 13-17% revenue growth CAGR EPS of $38 +/- $1.50 by 2
Slide 132: Sustainable Revenue Growth
Sustainable Revenue Growth Key Characteristics of Target Revenue Mix ~$26B ▪ Structural growth accelerating due to semiconductor revenue growth with flat to rising wafer equipment intensity ▪ Leading edge process roadmap and growing design starts drive node progression in foundry / logic ▪ Large hig
Slide 133: Strong Track Record of Execution Drives EPS Compounding
Strong Track Record of Execution Drives EPS Compounding Gross Margin1 Operating Margin1 Diluted EPS1 FCF Margin1 62% 63% 60% 43% 44% $35.44 34% 28% 33% $25.28 23% $8.73 CY19 CY22 CY25 CY19 CY22 CY25 CY19 CY22 CY25 CY19 CY22 CY25 ▪ GM% ranked among leaders in ▪ Superior operating margin profile vs. ▪
Slide 134: Long Standing History of Financial Performance
Long Standing History of Financial Performance KLA vs. the SOX Index Over Last 10 Years Gross Margin1 Operating Margin1 FCF Margin1 86th 86th 86th Percentile Percentile Percentile Ranked Ranked Ranked #5 #5 #5 Non-GAAP Gross Margin % Non-GAAP Operating Margin % Free Cash Flow Margin % Captures a com
Slide 135: Strong Free Cash Flow Enables Optimized Capital Structure & Allocation
Strong Free Cash Flow Enables Optimized Capital Structure & Allocation Among Top 8% of the S&P 500 60% Free Cash Flow as a % of Revenue 50% KLA ranked 92nd percentile among 40% S&P 500 companies 30% 20% 10% 0% KLA Corp S&P 500 Companies -10% 135 KLA Non-Confidential | Unrestricted Source: Bloomberg
Slide 136: Consistent Returns to Shareholders Across Both Share Repurchases & Dividends
Consistent Returns to Shareholders Across Both Share Repurchases & Dividends Share Repurchases - Last 5 Years1 Track Record of Dividend Increases Mar. 12, 2026 Mar. 12, 2026 9.20 Announced new $7 billion stock repurchase Announced 17th consecutive annual dividend increase, authorization to bring tot
Slide 137: 2030 Market
2030 Market 137 KLA Non-Confidential | Unrestricted
Slide 138: Semiconductor Growth is Accelerating
Semiconductor Growth is Accelerating AI Acceleration What is driving $M $1,500,000 Semi Revenue CY95 – CY10 CY11 – CY20 CY21 – CY30F growth? CAGR 4% 5% 9% - 11% ▪ AI HPC drives structural & $1,200,000 ASP growth Semiconductor Revenues ▪ Design mix broadening $900,000 ▪ Increased performance, cost an
Slide 139: The Market Segment Driving 2030 Growth Requires More Process Control
The Market Segment Driving 2030 Growth Requires More Process Control ~$1.3T - $1.5T 10% -12% —Industrial / Consumer / Other Automation, Robotics Semi Growth ▪ Semiconductor content growth Main Segments CY25 – CY30 CAGR —Automotive CAGR ▪ EV / HEV, Automation, Safety Server / Storage ~20% —Mobile Edg
Slide 140: Customer Semiconductor Revenue and Profitability at Record Levels
Customer Semiconductor Revenue and Profitability at Record Levels ($M) Top 5 Revenue ($M) Top 5 EBITDA % $1,000,000 2019 – 2025 CAGR: 11% $800,000 2019 – 2025 CAGR: 14% 100% $800,000 80% $600,000 $600,000 60% $400,000 $400,000 40% $200,000 $200,000 20% $0 $0 0% 2015 2016 2017 2018 2019 2020 2021 202
Slide 141: HPC / AI Era - KLA Uniquely Benefiting Across Segments
HPC / AI Era - KLA Uniquely Benefiting Across Segments Advanced Logic Memory Advanced Packaging ▪ More designs ▪ Increasing EUV layers ▪ Both memory & logic ▪ Leading edge process roadmap ▪ Increasing capacity needs ▪ Front end like processing ▪ Increasing capacity needs ▪ Larger chip sizes – capaci
Slide 142: Process Control Has Been One of the Fastest Growing Segments
Process Control Has Been One of the Fastest Growing Segments & HPC-Related Opportunities are Accelerating ($M) CAGRs Wafer Equipment vs. KLA Process Control PC ($M) $150,000 $10,000 Segment 18-25 19-25 20-25 Lithography 14% 16% 16% $120,000 $8,000 Process Control 13% 16% 16% Wafer Equipment KLA PC R
Slide 143: Advanced Packaging: Augmenting Traditional Wafer Fab Equipment Market
Advanced Packaging: Augmenting Traditional Wafer Fab Equipment Market $12,000 Segment Market Leaders 2023 – 2025 CAGR: 42% Lithography TEL, Suss, Canon, ASML $10,000 + Track Deposition AMAT, Lam, Naura, ASMP, KLA, Ulvac, Kokusai, Evatec Advanced Packaging $8,000 Etch and Clean LAM, Screen, AMEC, AMA
Slide 144: KLA Semi PC Share of Advanced Packaging
KLA Semi PC Share of Advanced Packaging 6.0% 5.6% 5.0% 4.0% 3.8% 3.0% 2.0% 2.0% 1.0% 1.0% 0.5% 0.6% 0.4% 0.4% KLA Packaging Intensity 0.0% 2018 2019 2020 2021 2022 2023 2024 2025 KLA Packaging Intensity = KLA Semi PC systems revenue in Advanced Packaging / Advanced Packaging Market 144 KLA Non-Confi
Slide 145: The KLA Operating Model Guides Our Strategy and Differentiation
The KLA Operating Model Guides Our Strategy and Differentiation COLLABORATE ▪ Work closely with customers in early process technology development ▪ Work closely with key suppliers' early technology development ▪ Work across KLA to reuse applicable technology INNOVATE ▪ Invest heavily in core technol
Slide 146: Technical Investments are Essential to Our Market Leadership
Technical Investments are Essential to Our Market Leadership R&D and Applications1 Support Investment 3,500 80% 70% 3,000 60% 2,500 50% 2,000 $M 40% 1,500 30% 1,000 20% 500 10% - 0% CY19 CY20 CY21 CY22 CY23 CY24 CY25 R&D Applications R&D + Applications % of Revenue R&D + Applications % of OpEx Inves
Slide 147: R&D Program Investment Scale Drives KLA Market Leadership
R&D Program Investment Scale Drives KLA Market Leadership Product Portfolio & Operating Model Uniquely Position KLA to Meet Customer Requirements 4.3x 2.3x 1.7x 1.4x 1.0x 1.0x # of Programs >$100M Avg Dev Spend per Program CY10-15 CY16-20 CY21-25 Investing in Innovation Across Portfolio to Meet Cust
Slide 148: KLA is a User and an Enabler of High-Performance Compute
KLA is a User and an Enabler of High-Performance Compute Transition / Benefits from CPU to GPU 2012 2015 2017 2018 TODAY NEXT Computer Vision Internal R&D Build First Utilized Across Optimized Task Force Kickoff AI Team AI Tool Portfolio Reasoning Image Computer GPU Benefit vs. CPU Baseline Data Rat
Slide 149: New Product Introduction is Fundamental to Our Market Leadership
New Product Introduction is Fundamental to Our Market Leadership 2018 2019 2020 2021 2022 2023 2024 2025 2026E Gen4 / Gen5 ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ Inline Monitoring ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ Inspection Tool Monitoring ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ and Review Reticle Qualification ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ e-Beam Inspection and Review ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫
Slide 150: Execution
Execution 150 KLA Non-Confidential | Unrestricted
Slide 151: Product Gross Margin Improvement
Product Gross Margin Improvement Incremental GM% +1.3% Product Differentiation ▪ Uniquely solve critical customer problems ▪ Portfolio enables customers to optimize capability vs. Fab productivity ▪ Discipline in understanding customer ROI CY22-25 CY25-30E ▪ Share in value created Mfg. Expense as %
Slide 152: Service Gross Margin Improvement
Service Gross Margin Improvement Service Incremental GM% Increasing Value of Service 1.3x ▪ Increasing system complexity / performance 1.2x ▪ Higher value services improving customer cost of 1.0x ownership (CoO) ▪ Extending lifetime of install base ▪ Delivering scale on infrastructure investments to
Slide 153: Case Study | Strategic Supply Chain Management
Case Study | Strategic Supply Chain Management Component Types Parts Category Long-term strategic partnerships Optics ▪ Decades-long relationships with >95% of key suppliers Low volume, sole sourced highly Sensors under contract complex components Lasers ▪ Engineering and supply chain closely integr
Slide 154: Bending the SG&A Curve and Driving R&D Efficiency
Bending the SG&A Curve and Driving R&D Efficiency OpEx Spend as a % of Revenue 3,000 15.5% 2,500 14.4% 13.1% 12.2% R&D 11.9% 12.1% 11.7% Driving productivity through growth 2,000 11.3% 11.0% 10.5% scale, platform extendibility and AI 8.9% 9.2% 8.7% $M 1,500 8.2% 8.0% SG&A 7.0% Gaining efficiencies w
Slide 155: Case Study | Pace of Customer Process Innovation and Scale
Case Study | Pace of Customer Process Innovation and Scale Enables Platform Extendibility and Lower R&D Intensity Revenue R&D % of Revenue ROI 3.3x 1x 1.8x 0.9x 0.7x 1.2x 1x 1.4x 1x CY11-15 CY16-20 CY21-25 CY11-15 CY16-20 CY21-25 CY11-15 CY16-20 CY21-25 ~30% R&D Intensity Decrease Drives Near 2X Ret
Slide 156: Case Study | BBP Gen5 Platform Meets Customer Process Technology Requirements
Case Study | BBP Gen5 Platform Meets Customer Process Technology Requirements while Enabling KLA R&D Efficiency R&D Investment System Revenue Pre-Revenue Investment CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22
Slide 157: Case Study | Laser Scanning Platform Meets Customer Process Technology Requirements
Case Study | Laser Scanning Platform Meets Customer Process Technology Requirements while Enabling KLA R&D Efficiency R&D Investment System Revenue Pre-Revenue Investment CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21
Slide 158: Case Study | Leveraging Front End Platform & R&D Investment for Advanced Packaging
Case Study |Leveraging Front End Platform & R&D Investment for Advanced Packaging R&D Investment Macro Inspection Revenue CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 Front-End R&D Packaging R&D Packaging Revenue Front-End Revenue Lower Incremen
Slide 159: Committed to Leveraging AI Across KLA
Committed to Leveraging AI Across KLA Machine Accelerating Intelligent Learning To Access To Process Accelerate Data Automation Decision Making Increasing Automation Leveraging AI to Drive Productivity, Employee Experience and Optimize Decision Making 159 KLA Non-Confidential | Unrestricted
Slide 160: AI Implementation in Business Operations Impacts Use Cases
AI Implementation in Business Operations Impacts Use Cases Inventory & Supply Chain Optimization Contract Management Non-Conformance Writing Assistant IT Help Desk Automation HR Assistant Training Assistant Cyber Insider Threat OpEx & Parts Expense Forecasting Anomaly Detections Procure to Pay Autom
Slide 161: 2030 Target Model
2030 Target Model 161 KLA Non-Confidential | Unrestricted
Slide 162: Wafer Equipment Intensity Remains Elevated Due to Leading-Edge Roadmap and HPC Demand
Wafer Equipment Intensity Remains Elevated Due to Leading-Edge Roadmap and HPC Demand 25 – 30 CAGR: ~12% at midpoint Wafer Equipment Intensity: ~15% $215B +/- $20B ($M) $250,000 18% Drivers of Wafer Equipment 16% Intensity $200,000 ▪ AI accelerating growth 14% Wafer Equipment Intensity ▪ Pace of tec
Slide 163: KLA Semi PC Share of Wafer Equipment: WFE + Advanced Packaging
KLA Semi PC Share of Wafer Equipment: WFE + Advanced Packaging 10% ~9.0% +/- 25 bps 9% 2025 – 2030E Wafer Equipment Intensity >150bps 8% 2021 – 2025 7% >150bps 2018 – 2021 6% >50bps KLA PC Intensity 5% 4% // 2018 2019 2020 2021 2022 2023 2024 2025 2030E KLA PC Intensity = KLA Semi PC systems revenue
Slide 164: Long-Term Target Revenue Growth Model Update
Long-Term Target Revenue Growth Model Update 2030E Model (from 3/12/26) Growth Drivers 2026E Model Industry Growth ~1% (presented 6/16/22) ▪ Accelerating High Performance Compute ▪ Diversification of end markets ~1% - 3% ▪ Flat to rising capital intensity Intensity Improvement / Share Gain ▪ > 60% f
Slide 165: KLA 2030 Target Model | Driving Sustainable Outperformance
KLA 2030 Target Model | Driving Sustainable Outperformance (14.0%CAGR) ~$2.7B (~14% CAGR) ~$26B+ (~15% (15.4%CAGR) CAGR) (Semi PC ~16.5% CAGR) ~$10.6B (~16% (15.8%CAGR) CAGR) $12.7B CY25 Systems Services CY30E Mid-Teens Revenue CAGR from Systems and Services from 2025 to 2030E 165 KLA Non-Confidenti
Slide 166: Consistent and Disciplined Capital Allocation Supports Target Model
Consistent and Disciplined Capital Allocation Supports Target Model Primary Capital Priorities 2022-2025 2026-2030E ▪ Fund investments to support collaboration and 7% innovation model 11% ▪ Invest in working capital to support customers 12% 10% and business execution 18% ▪ CapEx to support growth 19
Slide 167: Investment Grade Balance Sheet Supports Required Investments & Capital Allocation
Investment Grade Balance Sheet Supports Required Investments & Capital Allocation Long Term Balance Sheet Summary1 ($B) Target Range Capital Allocation Announcements Total Cash2 $5.2 $4B - $5B Revolver $1.5 Share Repurchases ▪ Announced $7B Additional Share Repurchased Authorization Working Capital
Slide 168: KLA 2030 Target Model Financial Framework
KLA 2030 Target Model Financial Framework Macro Assumptions 2026 2030 Ongoing Financial ▪ CY25-CY30E semiconductor industry Target Model Target Model Framework CAGR of ~11% ▪ Wafer Equipment grows ~1 pt. faster Revenue $14B +/- $500M $26B +/- $2.5B ~13% - 17% CAGR than Semi to $215B +/- $20B ▪ ~60%
Slide 169: Key Takeaways
Key Takeaways 1 2 3 4 KLA is a best-in-class KLA’s strong customer KLA’s operating model and 2030 target model builds outperformer uniquely intimacy and commitment focus on execution ensure on credible history of positioned for continued to collaboration, continuous improvement execution. Drives rel
Slide 170: 10-Minute Break
10-Minute Break 170 KLA Non-Confidential | Unrestricted
Slide 171: Q&A Session and Closing Remarks
Q&A Session and Closing Remarks 171 KLA Non-Confidential | Unrestricted
Slide 172: End of Webcast
End of Webcast Break & Lunch for In-Room Attendees 172 KLA Non-Confidential | Unrestricted
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