Onto Innovation Inc. · NYSE:ONTO

Onto Innovation — 24th Annual Needham Growth Conference 2022

20 slides from Onto Innovation's conference presentation, Jan 12, 2022

  1. Slide 1: Onto Innovation Investor Presentation

    Onto Innovation Investor Presentation JANUARY 2022 Mike Plisinski, CEO

  2. 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

  3. Slide 3: Onto Innovation Snapshot

    Onto Innovation Snapshot Top 15 WFE High tech capital equipment company specializing Strategic Supplier Tier1 in optical process solutions for semiconductor and related markets Annual Revenue Growth $556M to $778M2 NOVEMBER 2019: RTEC-NANO MERGER 2020 Gross Margin3 2021 Gross Margin3 A 52% 55% 1,400

  4. Slide 4: New Product Innovations Set Foundations for Stronger Future

    New Product Innovations Set Foundations for Stronger Future From: 2020 to 2021E +8 +49% +$40M +$650M NEW NEW SYSTEM REVENUE SAM in PRODUCTS REVENUE1 SYNERGIES1 2022 FRESHWATER RENEWABLE LANDFILL USAGE ENERGY WASTE Note 1: 2021 ONTO Estimated YoY Results 4

  5. Slide 5: New SAM Contributes to Market Outperformance

    New SAM Contributes to Market Outperformance New products open new growth markets for Onto Innovation Panel Packaging $650M2 SAM Common Films Specialty1 >$100M Expansion REVENUE PROJECTED FROM NEW SAM IN 2022 2020 2022 Note 1: Specialty includes CMOS Image Sensors + overlay for compound semiconducto

  6. Slide 6: Semiconductor Market Transitioning From Cyclical to Growth

    Semiconductor Market Transitioning From Cyclical to Growth DRIVEN BY MULTIPLE Broadening SECULAR GROWTH DRIVERS Demand $100 Improving Manufacturing Efficiency Cloud AI Computing Transition 300MM, $80 Industry consolidation, WFE $ (Billions) Rise of foundry $60 ALL GROWING >25% CAGR $40 $20 Virtual R

  7. Slide 7: Innovation Across the Value Chain for Semiconductors

    Onto Innovation Across the Value Chain for Semiconductors More complex devices generate more data, monetized in the cloud, creating demand for more devices…. Image Sensors, Power, New 5G Packaging Compute & 2.5D Memory 3D Data More Complex Data Center Data Generation Devices Monetization 7

  8. Slide 8: Significant Year-over-Year Outperformance in High-Growth Segments

    Significant Year-over-Year Outperformance in High-Growth Segments Onto YoY Growth% Outperformed WFE% Growth ONTO YOY GROWTH RATES IN HIGH GROWTH SEGMENTS Logic 77% Specialty Devices 65% Advanced Packaging 68% Overall 49% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% ONTO% WFE% 2021/2020 Industry Growth Rat

  9. Slide 9: Growth Driver: High Performance Logic Devices

    Onto Growth Driver: High Performance Logic Devices ONTO QUALIFIED OR COLLABORATING GROWING DEMAND INCREASE IN PROCESS CONTROL AT ALL GAA CUSTOMERS Advanced Logic Wafer Starts Optical Metrology Sampling Rates Measuring additional features requires more unique signals ONTO PATENTED SE TECHNOLOGY NO. O

  10. Slide 10: Growth Driver: Panel / Substrate Packaging

    Onto Growth Driver: Panel / Substrate Packaging High performance compute, intelligent edge, AI, mobility Comprehensive Solutions PANEL MARKET GROWTH STEPFAST– PROPRIETARY SURGING DEMAND FOR ONTO Lithography Inspection - Control SOLUTION FOR PANELS SOLUTIONS $100 18,000 FIREFLY® INSPECTION DISCOVER®

  11. Slide 11: Growth Driver: Advanced Packaging (Wafer Drivers)

    Onto Growth Driver: Advanced Packaging (Wafer Drivers) High Performance Compute, Intelligent Edge, AI, Mobility INTERCONNECTS SHRINK IN SIZE SCALING DRIVEN BY IDM ADVANCED PACKAGING AND INCREASE IN DENSITY >200M TOP 5 IDMS INSPECTION MARKET SHARE BUMPS PER WAFER 250 20 AP Technology Scaling 18 200 1

  12. Slide 12: Growth Driver: Memory

    Onto Growth Driver: Memory UNIQUE HYBRID DRAM Evolution METROLOGY SUITE Roadmap COMPLEX GEOMETRIES MEASURED WITH HIGHER ACCURACY 50 Add text labels 40 >5X Residual films 30 accuracy 20 10 HORIZONTAL VERTICAL 3D STACKING TRANSISTOR TRANSISTOR TRANSISTORS 0 Baseline Orbit Hybrid Metrology NAND Evoluti

  13. Slide 13: Growth Driver: Compound Semiconductor

    Onto Growth Driver: Compound Semiconductor GROWING DEMAND ONTO REVENUE GROWTH IN COMPREHENSIVE SOLUTION TO COMPOUND SEMICONDUCTORS HIGHER YIELD, FASTER RAMP SUBSTRATE Security $100M QUALITY SUBSTRATE QUALITY INCREASE ONTO REVENUE 2021-2026 Robotics DISCOVER® 19% CAGR YIELD FAB PROCESS MANAGEMENT CON

  14. Slide 14: New Long-term Operating Model

    Organic Growth Resulting from Share Gains & Potential to Enter New Addressable Markets Annual Revenue $1B Model $1.2B Model $1.4B Model Gross Margin 56% - 57% 57% - 58% 58% - 59% Operating Profit 31% - 32% 33% - 34% 35% - 36% Earnings per Share $5.20 - $5.35 $6.08 - $7.00 $8.10 - $8.35 New Long-term

  15. Slide 15: Why Invest in Onto Innovation?

    Why Invest in Onto Innovation? TEAM Culture of innovation and collaboration TECHNOLOGY Outperforming in multiple high growth segments FINANCIAL Long term financial model with >$8 per share earnings power PERFORMANCE BALANCE SHEET >$460 M cash, no debt, provides fuel for strategic M&A 15

  16. Slide 16: Thank You

    Thank You Onto Higher Yields Onto Higher Margins Onto Higher Productivity Onto Innovation info@ontoinnovation.com www.ontoinnovation.com

  17. Slide 17: Appendix

    Appendix on innovation

  18. Slide 18: Onto Innovation's Major Products

    Onto Innovation’s Major Products Atlas® V Element™ JetStep® Standalone thin film and FTIR metrology Litho for Advanced Packaging and FPD OCD metrology Aspect® AWX™ FSI Discover® Software OCD metrology for 3D NAND and Unpatterned frontside inspection Inline yield and defect management high aspect rat

  19. Slide 19: Strong Financial Execution Fuels Growth

    Strong Financial Execution Fuels Growth YoY gross profit and operating income growth outperform YoY revenue growth REVENUE, GROSS PROFIT, OPERATING INCOME YOY CHANGE Balanced YTD* +38% Revenue Distribution +58% 200 +43% +21% 20% 36% 150 MILLIONS $ +42% +46% +60% 100 +26% 44% +147% +61% 50 +83% +107%

  20. Slide 20: ONTO 10 Year Stock History

    ONTO 10 Year Stock History Lowest: 02 Oct'15 - 11.91 Highest: 03 Jan '22 - 104.41 Date Range: 10 Jan '12 to 10 Jan '22 2,500,000 100 a0 2,000,000 70 ~ 60 g 50 = 2 a % 1,500,000 < 40 g © ® 30 5 1,000,000 2 3 a 20 ~ od iin vv 0 10 42 43 14 45 16 47 18 49 ‘20 ‘21 20 onto

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