Nova Ltd. · NASDAQ:NVMI
Nova — Investor Day (September 2022)
20 slides from Nova's investor day presentation, September 2022
Slide 1: Growth Engines & Market Drivers
Growth Engines & Market Drivers Zohar Gil, CMO September 2022
Slide 2: Zohar Gil, CMO biography
Joined Nova in 2011. Appointed as CMO in 2016. Beforehand, held senior positions of marketing and business development at Nova and in Israeli high-tech companies. Engineering and Executive MBA from Tel Aviv and Northwestern Universities. 39 © Nova proprietary information
Slide 3: Framework for $1B Growth Plan
Framework for $1B Growth Plan Innovation & Market Diversification Leading Portfolio Multiple Secular Capital Demand Growth Investment Drivers 40 © Nova proprietary information
Slide 4: Places, People, Things
Cloud Autonomous Computing AI Vehicle 24% 39% 23% Robotic Process Industrial VR 5G Automation IoT 38% 36% 28% 23% Places People Things Millions Billions Trillions 41 © Nova proprietary information Source: Bloomberg, IDC, Statista, Gartner , Company Estimates
Slide 5: Automotive
Automotive X6 Electrification and Autonomous Trends are Driving Exponential Semiconductor Content Growth Internal Combustion Engine vs. Autonomous Vehicle ICE L 4/5 Autonomous chips revenue- $29B by 2030 $99B The main current growth in driver ADAS 17% $71B High-performance chips $40B will grow faste
Slide 6: AI Semiconductor Market
AI Semiconductor Market ($B) $86B 26% $55B By 2026 $22B • 5x growth in data center servers using AI 2020 2023 2026 • Over 50% of basic smartphones utilize AP with AI Key Markets • Mobile • Automotive • Data Centers • Security, Surveillance Source: IBM, Gartner 43 © Nova proprietary information
Slide 7: Cloud-related data is exploding
181 Cloud-related data is exploding 28% 120 79 41 26 16 2015 2017 2019 2021 2023 2025 Cloud semiconductor market 11% expected to $142B follow $120B $76B IoT connectivity will drive double-digit growth in cloud-related semiconductors 2020 2023 2026 44 © Nova proprietary information Source: Gartner, S
Slide 8: Market size and CAGR by segment
CAGR 2018-2022 CAGR 2022-2026 Size 2022 [$B] 0% 10% 20% Size 2026 [$B] 0% 10% 20% SSD 50 SSD 19% AI 86 18% Servers 60 Servers 13% Automotive 99 12% Smartphone 166 Smartphone 10% SSD 66 7% PC 68 PC 8% Smartphone 170 1% Total Market Total Semi 639 Market 8% Total Market 782 6% 45 © Nova proprietary in
Slide 9: Drivers for Intensified Capital and Equipment Spending
Drivers for Intensified Capital and Equipment Spending 46 © Nova proprietary information
Slide 10: Increase in Advanced Processor Chip Size
Increase in Global Annual IC Wafer Capacity (M) (300mm Equivalents) Advanced +6.9% 126 141 Processor 108 93 85 Chip Size 2017 2019 2021 2023E 2025E Driving Need for More Wafer Capacity Shift to Parallel Processing chips causes an increase in chip size: • Data Center CPU (2X) and GPU (50%) • PC/Noteb
Slide 11: More Process Steps
More Process Steps Driven by Increased Complexity in Advanced Logic and 3D Memory Process Steps by Node - Logic Process Steps by Node - NAND 10% 27% 90% 5% 90nm 65nm 45nm 28nm 20nm 14nm 10nm 7nm 5nm Planar 3D single deck 3D double deck 3D triple deck 48 © Nova proprietary information Source: Source:
Slide 12: Capital Investment Intensity
Capital Investment Intensity Rising Complexity in Advanced Nodes, Drives Increase in Capital Investment per Wafer 15.1% 500% Nova Products Capital Investment 16,000 2010-2021 CAGR Per Wafer 400% 13.6% Optical Metrology 12,000 2010-2021 CAGR 300% 10.2% 8,000 WFE 200% 2010-2021 CAGR 4,000 100% 50% 0 2
Slide 13: Trailing Nodes Foundry CAPEX Growth
MCUs, analog, connectivity ICs • Driven by investment in IoT, sensors for multiple 18 vertical markets 16 Trailing Nodes Foundry CAPEX Growth • Trend to continue in 14 coming years with the 12 transition to 4th Tectonic 10 X2/3 shift in computing 8 6 • Driven by leading 4 foundries worldwide 2 0 201
Slide 14: Advanced Packaging
Advanced Packaging Industry Evolving to FC/FO and 3D Packages with Higher I/O Density and Enhanced Performance Hybrid Bonding enables near monolithic performance Advanced Packaging CAPEX Breakdown HPP - 19% CAGR, 70% Revenue [$B] Trend of CAPEX 100% 10% 57 30% OSAT Investment Transition to 60% 45 ID
Slide 15: $150B Local Incentives
$150B Micron Local USA EU China Incentives $12B $15B $10B fuel Global $106B SK Hynix Investment Surge $150B Samsung Taiwan Japan Korea India $1.3B $0.3B $45B $10B Intel $115B $100B TSMC Annualized CAPEX Plans 52 © Nova proprietary information Source: Jefferies, Companies quarterly reports
Slide 16: Differentiated Portfolio
Differentiated Portfolio 53 © Nova proprietary information
Slide 17: Integrated Metrology
Integrated Metrology Normal & Multi-Channel Front End Chemistry Analysis Inline X-Ray Standalone Metrology Back End Chemistry Analysis Spectral Inline Inline Backend Interferometry SIMS Raman Chemistry Replenishment Physical Machine Big Data Modeling Learning Management 54 © Nova proprietary informa
Slide 18: Outperforming the market
Outperforming the market Differentiation and innovation Sustain Market New Applications Leadership High R&D investment From R&D to New technologies New Inline New Materials Segments M&A Dimensions More Layers/Applications Broaden Customer Coverage Extend HVM Expand to Adoption Interconnect Materials
Slide 19: Summary
Summary Nova $1 Billion Engines and Drivers in Place Market Capital Nova Drivers Investments Portfolio • Healthy market in • Wafer capacity demand • Unique portfolio Nova 1 billion increase plan horizon • Markets diversification • Complexity driving rise in • Driven by Multiple CAPEX for leading-edg
Slide 20: Thank You
Thank You