Onto Innovation Inc. · NYSE:ONTO
Onto Innovation — Stifel's 2021 Cross Sector Insight Conference
13 slides from Onto Innovation's conference presentation, Jun 9, 2021
Slide 1: Onto Innovation Investor Fireside Chat
Onto Innovation Investor Fireside Chat JUNE 2021
Slide 2: Safe Harbor
• The information presented herein contains forward-looking statements that relate to anticipated future operating results and performance. These statements are only predictions based on management’s current expectations and assumptions, including market size and forecasted growth, Total Available M
Slide 3: ONTO: Serving the Semiconductor Industry's Three Facilities
ONTO: Serving the Semiconductor Industry’s Three Facilities SILICON WAFER MANUFACTURING WAFER FABRICATION ADVANCED PACKAGING Separating wafers to individual chips, Raw material for chips Adding layers of printed circuitry connecting multiple chips into a single package Onto Innovation Enables Leadin
Slide 4: Diverse Product Portfolio and Strong Financial Model
Diverse Product Portfolio and Strong Financial Model MARKET AND PRODUCT EXPAND GROSS AND POTENTIAL M&A TO DIVERSITY OPERATING MARGINS INCREASE SHAREHOLDER VALUE EXPANDING MARKET ~ $400 MILLION CASH, NO LEADING MARGINS SHARE WITH NEW 54% GROSS MARGIN DEBT PRODUCTS 25% OPERATING MARGIN 4
Slide 5: Why We Matter to the Largest Manufacturers
Onto Innovation 4 suppliers 65% Share Why We Matter to the largest Manufacturers (Strategic Partner) • Doubled scope and scale in last 18 months 12 suppliers • Technology aligned to multiple secular growth drivers 24% Share Wafer Fab Equipment (WFE) 15 suppliers Market Share by Revenue 7% Share 15 (
Slide 6: Onto Innovation Snapshot
Onto Innovation Snapshot High tech capital equipment company specializing in optical process solutions for semiconductor and related markets CASH FLOW FROM COMPANY CASH ON BALANCE OPRERATIONS SHEET (3/27/2021) NYSE $393M Cash 30% of Revenue3 (ONTO) No Debt TTM REVENUE1 YOY GROSS MARGIN GROSS MARGIN5
Slide 7: 5G and Cloud Contribute to Virtuous Cycle Growth
5G and Cloud Contribute to Virtuous Cycle Growth Leading to growth in multiple Onto Innovation markets in 2021 Specialty Devices Adv. Advanced Nodes Packaging 5G Cloud More Complex Data Servers 2X 5G Devices Center AI Handsets (data) Edge Compute 2020- 20211 Streaming ADAS & EV AI Healthcare Virtual
Slide 8: Data Era Driving Multiple Secular Growth Industries
“Data Era” Driving Multiple Secular Growth Industries Advances in memory and transistor architectures enable growth in multiple industries Growth of Connected Devices 30 Health 25 Billions of Devices Smart Environment Google AI 20 50% City processor 15 Growth +11 10 Billion! Mobile 5 Data 0 Smart Ho
Slide 9: Opportunities to Grow Above Secular Drivers in 2021
Opportunities to Grow Above Secular Drivers in 2021! Foundation laid in 2020 expands both total available and served markets by over 20% +21% +$400M TAM +$100M SAM +$100M SAM +$80M SAM IRIS TAM Expansion +23% +SHARE Panel Packaging Overlay Metrology Record backlog for panel steppers CIS / Dragonfly®
Slide 10: Revenue Growth
Revenue Growth ONTO REVENUE OUTLOOK1 $400 26% YoY 1H 2021 Analyst Growth Outlook $350 ~ 30% YoY 2H Analyst Growth Outlook $300 FY21 Analysts Consensus: $250 29% YoY $200 1H19 2H19 1H20 2H20 1H21 2H21 Note 1- 1H19, 2H19: Consolidated NANO+RTEC 1H20: Actual 1H21: 1Q21 Actual + 2Q21 Analyst Consensus (
Slide 11: Long-term Operating Model
Organic Growth Resulting from Share Gains & Potential to Enter New Addressable Markets Annual Revenue $800M Model $1B Model Gross Margin 55% - 56% 56% - 57% Long-term Operating Model* Operating Profit 29% - 30% 32% - 33% Earnings per $3.85 - $4.00 $5.05 - $5.25 Share *Non-GAAP Long Term Financial Mo
Slide 12: Why Invest in Onto Innovation?
Why Invest in Onto Innovation? Strong adoption of new products expanding our markets. TECHNOLOGY Further supported by projected across our markets. Global operations supporting diverse ~150 customer base. OPERATIONS Long term financial model with $5 per share earnings power $390M Cash, No Debt, Cash
Slide 13: Thank You
Thank You Onto Higher Yields Onto Higher Margins Onto Higher Productivity Onto Innovation info@ontoinnovation.com www.ontoinnovation.com
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