Slide 1: Investor Presentation August 2023
Investor Presentation August 2023
Slide 2: Cautionary Statements
Use of Non-GAAP Adjusted Financial Measures This presentation provides financial measures that exclude amortization of Factors that may affect our results, performance, circumstances or acquired intangible assets, stock-based compensation expenses, acquisition related achievements include, but are n
Slide 3: Nova is a leading innovator and key provider of solutions for semiconductor manufacturing
Nova is a leading innovator and a key provider of solutions for advanced used in semiconductor manufacturing 3 © Nova proprietary information
Slide 4: Dream Dare Listen
Dream Dare We measure ourselves by our ability to Listen Innovate transcend expectations and boundaries We partner with our customers to craft innovative process control solutions enhanced with unique value Execute Win 4 © Nova proprietary information
Slide 5: Key Facts
1993 | Date Founded | Dually Traded >1100 | Employees Presence | Israel HQ , Global Offices KEY Facts >5000 | Active Systems >200 | Customer Sites R&D | Israel, USA, Germany 5 © Nova proprietary information
Slide 6: Proven Execution Ability, Relative Industry Outperformance
5 Year $571M CAGR +21% Nova Proven Execution Ability +15% products WFE Relative Industry Outperformance $222M Revenue doubled every 5 years $96M $58M 2007 2012 2017 2022 Wide Metrology Coverage New Organic Engines Diverse Customer Mix Differentiated Portfolio Diverse Technology Mix Diverse Territory
Slide 7: Chip Design, Fabrication and Process Control
Chip Design (Fabless) Front End Fabrication Process Control Process equipment Materials Packaging ( ) 7© Nova © Nova Proprietary proprietary information information
Slide 8: The New Market Drivers
The New Market Drivers 20% 12% 8% 8% CAGR 2022-2027 AI Automotive Cloud/DC Industrial AI server is 5X content and 8X memory AI Server EV Data Center 30B IoT By 2026, Evs/HEVs >50% Content content Processor connected revenue devices by 2030 of unit production Data centers transition to parallel proce
Slide 9: Innovative Technology
Innovative Technology LOGIC FLASH DRAM 300mm 20um 3nm 0.5Å Wafer Pad Node Precision [One ten-billionth of a meter] Optical / X-Ray / Chemical Semiconductor Dimensions / Materials Segments Parameters 9 © Nova proprietary information
Slide 10: Memory, Logic and Packaging Device Complexity
Memory Device X6 64 Layers 400 Dimensional Advanced SW Packaging Device X30 Flip-Chip Bump I/O 3D-SOC Materials Chemical Physical & Pitch <300µm <10µm Mathematical Algorithms Logic Device A4 X100 A15 Transistors 150M 16B 10 © Nova proprietary information
Slide 11: Addressing Multiple Markets
Addressing Multiple Advanced Packaging Markets New Materials Economics Performance Vertical Integration Expanding Material Metrology to Efficiency Scaling Device Chemical Scaling Metrology 11 © Nova proprietary information
Slide 12: Semi Demand
Digital Investment across broad Transformation range of IC Devices Architecture Technology transitions to support performance demand Smart Sensors Resume normal scaling cycles (EUV) below 7nm Metrology Semi Demand for increased Intensity Demand content in advanced devices Synergy between industry Da
Slide 13: Dimensional Metrology Intensity
Dimensional Metrology Intensity Metrology Intensity Logic Planar FinFET Nano Sheet 3D NAND Scaled Devices Single Stack Multi-deck Over Periphery 3D Profiles Multiple Design Steps DRAM Films Variety 1b 1c 3D DRAM Intricate Architecture Scale & Complexity 13 © Nova proprietary information Sources: Jef
Slide 14: Materials Metrology Intensity
Materials Metrology Uniformity Control Intensity Contamination Intensity Logic X4 Residue Control Broader Metrology Scope Memory X3 Phases Defectivity Crystallinity Stress & Strain Broader Metrology Scope from planar/single stack to GAA/Multi stack Thin Films Thin Films From 20 to 90 steps Compositi
Slide 15: Chemical Metrology Intensity
Chemical Intensity Metrology Intensity <150µm <60µm <40µm Back End: Advanced I/O Pitch Packaging Flip-Chip Fan-Out Hybrid 3D 8 13 17 Complexity New materials Front End: Interconnect Interconnect Layers New chemistries Stability and purity Planar FinFET GAA Tighter process control Complexity 15 © Nov
Slide 16: Increasing Complexity: Logic Process Steps 3X Since 28nm Node
Process Steps by Node - Logic Process Steps by Node - NAND 10% 3X Planar 3D single 3D double 3D triple 45nm 28nm 20nm 14nm 10nm 7nm 5nm 3nm deck deck deck Increasing complexity: Logic Capital Investment Per 20,000 Wafer process steps 3X since 28nm node 3X 16,000 12,000 WFE cost of a large 3nm fab: ~
Slide 17: Why Do We PREVAIL?
Why Do We PREVAIL? Increasing Share while Expanding TAM Customers Diversification Tech Nodes Segments Technology Geography 17 © Nova proprietary information
Slide 18: R&D Investment
R&D Investment (Net) XPS SI SIMS $84M OCD Raman $62M Optical Materials Dimensions $44M $42M SW Chemical XPS HPLC Deep Tech PCGA 2018 2020 2022 H1 2023 18 © Nova proprietary information Non-GAAP Financials
Slide 19: Core and Disruptive Technology
Core Disruptive Technology Technology Spectral Reflectometry (SR) Spectral Interferometry (SI) X-Ray Photoelectron Spectroscopy (XPS) Multi-Channel Integrated Metrology & X-Ray Fluorescence (XRF) Generative AI HPLC, CVS, Titration, Optical Spectroscopy Raman Spectroscopy Physical Modeling Secondary
Slide 20: Rich Metrology Portfolio
Dimensional Metrology • Critical Dimensions Software Integrated Integrated Multi Standalone Metrology channel Metrology Metrology Rich Metrology Materials Metrology Portfolio • Materials Properties • Physical & X-Ray - XPS, XRF Raman Spectroscopy SIMS Mathematical Modeling • Big Data Analytics Chemi
Slide 21: Balanced Exposure
Balanced Exposure Segments Nodes Geographies 30% 30% 20% 50% China Taiwan Memory Trailing LTM 80% LTM LTM 15% Foundry/ West 20% 50% Logic Korea Leading 5% Other LTM: Q3 22-Q2 23 21 © Nova proprietary information Company Product Revenues, Leading logic <16nm & Leading memory
Slide 22: Number of Customers
Number of Customers ~ 50 Regionalization driving investments ~ 30 New technology and advanced metrology ~ 20 penetration to new segments 2020 2021 2022 22 © Nova proprietary information
Slide 23: Nova $1B Plan
Nova $1B Plan Continuous Outperformance $1000M New Technologies Proliferation M&A $800M Chemical Analysis Growth Materials Metrology Leadership $600M Diversified Markets $400M Further M&A 500M Cash Reserves Supporting 2018 2022 Target Long-Term Growth 23 © Nova proprietary information
Slide 24: Long-Term Target Model
R&D Revenue Investment Tax $1B 15%-18% 14% Gross Margin SG&A Share Count 57%-59% 13%-15% 32M Operating Margin Earnings 27%-31% >7$ Non-GAAP Financials 24 © Nova proprietary information
Slide 25: TAM Growth
TAM Growth +50% by 2027 Innovative Metrology $3B Raman, SIMS, SI $2B Nova TAM $1B Advanced Packaging Hybrid Bonding, CMP, Composition 2020 2023 2027 Dimensional, Chemical, Materials Service Revenue $13B Extendibility & Enhancement $11B Process $7.3B Control Value Added Services Sector Lab to Fab 202
Slide 26: >5000 Active Installed-Base, >200 Customer Sites
10000 140M 9000 8000 120M 7000 >$100 100M 6000 $79M 80M 5000 $60M 4000 $58M 60M 3000 40M 2000 >5000 Active Installed-Base 20M 1000 >200 Customer Sites 0 0M 2019 2020 2021 2022 2023 Non-GAAP Financials 26 © Nova proprietary information
Slide 27: Semiconductor Market Revenue and WFE
Semiconductor Semiconductor Market Revenue, $B WFE, $B -9% +15% -16% +8% 588 615 95 87 534 80 2022 2023E 2024F 2022 2023E 2024F Source: Average market revenue forecast by Gartner, Evercore, Needham, IC Insight Average WFE by Gartner, Evercore, Needham, SEMI org. July 2023 27 © Nova proprietary infor
Slide 28: Tech Evaluations at Customer Sites
Tech New R&D Plans Evaluations Markets On Track at Customer Sites Agile Increasing Operational Manufacturing Model Capacity 28 © Nova proprietary information
Slide 29: Inorganic Approach
Inorganic Approach Search Guidelines Early Access Top Line Lab to Fab Technology Synergy Complementary Materials Technology Leadership Operational Leverage (Accretion) Diversification Within Software Offering Core Capabilities Enhancement Transformational Adjacent Process Control Markets 29 © Nova p
Slide 30: Our Four Pillars
We believe in a pragmatic approach to interlace ESG practices across daily operations, including culture, products, business, supply chain, customers, R&D and manufacturing. Our four Pillars Our ESG strategy is built around four pillars- each with long-term goals and areas of focus. Annual planning
Slide 31: Governance, Social, Environment
Governance Social Environment • Governance compliance • Talent Attraction & Retention • Environmental management – • Data Privacy & cyber security • Diversity, Equity and Inclusion • Energy, water, waste • Ethical business practices • Human capital development • Carbon footprint and GHG • Product sa
Slide 32: Key Takeaways
Financial Key Takeaways Long-Term Positioned for Continuous Growth Target Model Sales Growing demand for IC drives capacity & Increasing complexity Increasing need for advanced metrology solutions 1B$ Unique and disruptive technology portfolio Gross Margin Driving a stronger position and expanding T
Slide 33: Thank You
N O YA INSIGHT Thank You