Nova Ltd. · NASDAQ:NVMI
Nova — Investor Presentation (February 2023)
32 slides from Nova's investor presentation, February 2023
Slide 1: Investor Presentation February 2023
Investor Presentation February 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: 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 >4800 | Active Systems >200 | Customer Sites R&D | Israel, USA, Germany 5 © Nova proprietary information
Slide 6: Proven Execution Ability and Industry Outperformance
5 Year $571 CAGR +22% 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: Nova $1B Plan (5 Years)
Nova $1B Plan (5 Years) Continuous Outperformance $1000M New Technologies Proliferation M&A $800M Chemical Analysis Growth $600M Materials Metrology Leadership $400M Diversified Markets Further M&A 2018 2022 Target 7 © Nova proprietary information
Slide 8: Target Financial 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 8 © Nova proprietary information
Slide 9: Semiconductor Value Chain and Process Control
Chip Design (Fabless) Front End Fabrication Process Control Process equipment Materials Packaging ( ) 9© Nova © Nova Proprietary proprietary information information
Slide 10: 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 10 © Nova proprietary information
Slide 11: Memory, Logic and Packaging 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 11 © Nova proprietary information
Slide 12: Addressing Multiple Markets
Addressing Multiple Advanced Packaging Markets New Materials Economics Performance Vertical Integration Expanding Material Efficiency Scaling Metrology Device to Chemical Scaling Metrology 12 © Nova proprietary information
Slide 13: Critical Dimensions, Materials, Chemistry
Critical Dimensions Materials Chemistry Integrated Metrology Normal & Multi-Channel Front End Chemistry Analysis Inline X-Ray Back End Chemistry Analysis Standalone Metrology Backend Chemistry Replenishment Spectral Inline Inline Interferometry SIMS Raman PCB Chemical Analysis Physical Machine Big D
Slide 14: Core and Disruptive Technology
Core Disruptive Technology Technology Spectral Reflectometry (SR) Spectral Interferometry (SI) Multi Channel Integrated Metrology X-Ray Photoelectron Spectroscopy (XPS) Machine Learning & Deep Tech X-Ray Fluorescence (XRF) Raman Spectroscopy Physical Modeling Secondary ion mass spectrometry HPLC, CV
Slide 15: 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 15 © Nova proprietary information Sources: Bloomberg, IDC, Statista, Gartner , Company Estimates
Slide 16: Automotive Exponential Growth
Automotive Exponential X6 Semiconductor Content Growth Combustion Engine vs. Autonomous Vehicle ICE L 4/5 Electrification and autonomous trends are key drivers $99B 17% $71B Automotive $40B Semiconductor Market ($B) 2020 2023 2026 16 © Nova proprietary information Source: McKinsey, Gartner
Slide 17: 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 Geo-centric strategy drives
Slide 18: 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 18 © Nova proprietary information Sources: Jef
Slide 19: Materials Metrology Intensity
Materials Metrology Intensity From 20 to 90 Steps Uniformity Control Intensity Contamination Logic X4 Broader Metrology Scope Residue Control Memory X3 Past Present Phases 21 62 Defectivity Crystallinity Stress & Strain Thin Films Thin Films Composition Composition Materials Diversity 19 © Nova prop
Slide 20: 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 20 © Nov
Slide 21: Why Do We PREVAIL?
Why Do We PREVAIL? Increasing Market Share while Expanding TAM Customers Diversification Tech Nodes Segments Technology Geography 21 © Nova proprietary information
Slide 22: Balanced Exposure
Balanced Exposure Segments Nodes Geographies 30% 35% 30% 50% China Taiwan Memory Trailing 2022 2022 2022 10% 70% 50% USA Logic Leading 15% Korea 10% Other 22 © Nova proprietary information Company Product Revenues, Leading logic <16nm & Leading memory
Slide 23: R&D Investment
XPS R&D Investment SI SIMS $87M OCD Raman Optical CD $56M Materials Dimensions $50M SW Chemical XPS HPLC Deep Tech PCGA 2018 2020 2022 23 © Nova proprietary information Non-GAAP Financials
Slide 24: TAM Growth
TAM Growth 360% Differentiated Technology $2.3B Innovative Metrology Raman, SIMS and Chemical Hybridization Nova $1B TAM $0.5B Physical and ML Algorithms Data-Driven Solutions 2015 2020 2025 Training and Prediction Capabilities 160% Service Revenue Extendibility & Enhancement Value Added Services $1
Slide 25: Installed base expected to surpass 5,000 systems
10000 140M 9000 8000 120M 7000 >$100 100M 6000 $79M 80M 5000 Installed base expected $60M 4000 $58M to surpass 5,000 systems 60M within 2023 3000 40M 2000 20M 1000 0 0M 2019 2020 2021 2022 Non-GAAP Financials 25 © Nova proprietary information
Slide 26: 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 26 © Nova p
Slide 27: Financial Performance: Annual Results
Financial Performance Annual Results Earnings Per Share (Non-GAAP) Continuous Revenue Growth +146% +112% 5.07 $571M $3.85 $416M $2.06 $269M 2020 2021 2022 2020 2021 2022 Non-GAAP Financials Non-GAAP Financials 27 © Nova Proprietary information
Slide 28: Financial Performance: Margins and Cash Reserves
Operating Margin Gross Margin Cash Reserves Financial 58% $553M 57% $428M Performance 30% 24% Annual Results 2020 2021 2022 2020 2021 2022 2020 2021 2022 Non-GAAP Financials *After acquisition of ancosys for ~$90M 28 © Nova proprietary information
Slide 29: Record annual product sales across all divisions
+25% Record annual product $151 $142 $144 sales across all divisions $134 $121M The proliferation of most advanced product portfolio; Chemical meteorology $1.30 $1.24 $1.24 $1.28 penetration to leading $1.08 front-end customers $100M in Service Revenues Q4 21 Q4 21 Q1 22 Q1 22 Q2 Q2 22 22 Q3 Q3 22 2
Slide 30: ESG
Ethics ESG Encourage workforce diversity Community Relations Support Youth at Risk Diversity Responsible & Ethical supply chain management Optimize waste management and energy consumption Inclusion Sustainable facilities across the globe Environment 30 © Nova proprietary information
Slide 31: Key Takeaways
Key Takeaways Financial Target Model Positioned for Continuous Growth Sales Growing demand for IC drives capacity & Increasing complexity Increasing need for advanced metrology solutions 1B$ Unique and disruptive technology portfolio Gross Margin Driving a stronger position and expanding TAM Solid o
Slide 32: Thank You
Thank You