Onto Innovation Inc. · NYSE:ONTO
Onto Innovation — 23rd Annual Needham Growth Conference (January 2021)
19 slides from Onto Innovation's conference presentation, Jan 13, 2021
Slide 1: Onto Innovation Investor Presentation
Onto Innovation Investor Presentation JANUARY 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 Innovation WFE Market Share by Revenue
Onto Innovation 4 suppliers 64% Share ~1 year since the merger of Rudolph Technologies and Nanometrics • Double scope and scale • Technology aligned to multiple secular growth drivers 12 suppliers 23% Share • Significant revenue and cost synergies Wafer Fab Equipment (WFE) 15 suppliers Market Share
Slide 4: Onto Innovation Snapshot
Onto Innovation Snapshot High tech capital equipment company specializing in optical process solutions for semiconductor and related markets COMPANY CASH ON BALANCE SHEET (9/26/2020) NYSE >$340M Cash; (ONTO) No Debt REVENUE1 YOY GROSS MARGIN GROSS MARGIN5 IMPROVEMENT3 $551 Million 54% +10% COST YOY
Slide 5: Onto Innovation Achievements in 2020
Onto Innovation Achievements in 2020 Metrology Suite 4 new products for Advanced Nodes Integrated Metrology Atlas® V OCD 26% Macro Inspection YoY Aspect® IRCD Element™ Materials Q1 2020 +19% First Qtr. Growth in Q4 ONTO (GUIDANCE) $24M Annual Cost Synergies >$400M Identified Iris ™ TAM expansion in
Slide 6: More Opportunities in 2021!
More Opportunities 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® Acquisition of Inspectro
Slide 7: Research Points to Strong CapEx Growth Across Our Markets
Research Points to Strong CapEx Growth Across Our Markets CapEx growth provides tailwinds for Onto Innovation’s process control growth Analyst Equipment Growth Forecast: ‘20-’21 Bear - Mean - Bull ADVANCED 15% - 25% - 40% DRAM Memory Customers WFE1 NODES 3% - 10% - 15% NAND Memory Customers WFE1 0%
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: 5G and Cloud Contribute to Virtuous Cycle
5G and Cloud Contribute to Virtuous Cycle 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 Realit
Slide 10: 5G Enabled Handsets Drive Outsized Growth
5G Enabled Handsets Drive Outsized Growth ~90% of devices measured / inspected by Onto Innovation 5G Handset Multiplier Effect 2X More Memory 2X More RF Content >100 Advanced Packages Advanced Nodes Advanced Packaging Specialty Devices Atlas, IMPULSE, Aspect Dragonfly, Firefly, JetStep Dragonfly, Me
Slide 11: New Product Suite Measures the Most Challenging Dimensions
New Product Suite Measures the Most Challenging Dimensions Advanced logic and memory driven by high-performance computing, AI, IoT, autonomous driving 3nm GAA FET FinFET Channel Hole Etch Deposition repeating layer thickness GAA FET: Gate All Around Field Effect Transistor ADVANCED NODES PRODUCT SUI
Slide 12: Our Advantage? We Take Optical Metrology Beyond our Peers!
Our Advantage? We Take Optical Metrology Beyond our Peers! Achieve better results, faster, with optical vs X-ray NEW 256 Aspect 196 Onto 3D Optical! NAND 128 Layers 96 Optical Metrology is >10x faster than Traditional & Competitor X-Ray Metrology and the best Optical Metrology solution for HVM 64 NE
Slide 13: Top Semiconductor Manufacturers are Accelerating the Advanced Packaging Roadmaps
Top 5 Semiconductor Manufacturers are Accelerating the Advanced Packaging Roadmaps Onto Innovation’s inspection platforms lead the way Source: TSMC RDL Lines 10µm ~1µm Line Line Reduction Width Width 90% ~22% Bump Size 35µm Increase in Onto height 5µm Reduction 86% Cu Pillar Bump height Innovation S
Slide 14: Complete Suite of Technology for Packaging and Specialty Devices
Complete Suite of Technology for Packaging and Specialty Devices We print, measure, and inspect the most advanced process technologies in packaging COMPREHENSIVE PROCESS SOLUTIONS DIE LEVEL Interconnect reliability DRAM SOC Logic Bumps RDL Layers TSVs CUSTOMER SOLUTIONS SERVING A VARIETY OF SUBSTRAT
Slide 15: Expanding our Solution Suite with Overlay Metrology
Expanding our Solution Suite with Overlay Metrology Leading technology in a nascent but rapidly expanding market Compound Semi Revenue 2021 REVENUE SYNERGIES Growth1 $3,500 Discover APC $3,000 25% CAGR (2020-2025) Device Revenue ($M) $2,500 $2,000 ONTO >300 systems in use worldwide IVS 3rd Party $1,
Slide 16: 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 $340M Cash, No Debt, FCF
Slide 17: Thank You
Thank You Onto Higher Yields Onto Higher Margins Onto Higher Productivity Onto Innovation info@ontoinnovation.com www.ontoinnovation.com
Slide 18: Operating Model (Appendix)
Operating Model (Appendix) 18
Slide 19: Long-term Operating Model
Organic Growth Resulting from Share Gains & Potential to Enter New Addressable Markets Annual Revenue $600M Model $800M Model $1B Model Gross Margin 54% - 55% 55% - 56% 56% - 57% Long-term Operating Model* Operating Profit 24% - 25% 29% - 30% 32% - 33% Earnings per $2.40 - $2.50 $3.85 - $4.00 $5.05
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