Onto Innovation Inc. · NYSE:ONTO
Onto Innovation — 12th Annual CEO Summit (December 2020)
16 slides from Onto Innovation's conference presentation, Dec 16, 2020
Slide 1: Onto Innovation December 2020 Update
Onto Innovation December 2020 Update Investor Presentation DECEMBER 2020
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 Snapshot
Onto Innovation Snapshot High tech capital equipment company specializing in process solutions for semiconductor and related markets COMPANY FREE CASH FLOW NYSE (ONTO) >$340 Million Cash; YTD No Debt YTD REVENUE YTD GROSS MARGIN1 $401.3 Million 53% YTD EPS YTD R&D SPEND2 $1.21 20% of Revenue Note 1-
Slide 4: Onto Innovation in 2020
Onto Innovation in 2020 New company, COVID-19, and Pace of Innovation! Strengthening business foundation for sustainable growth Metrology Suite 5 new products for Advanced Nodes Integrated Metrology Atlas V OCD 26% Aspect IRCD Macro Inspection YoY Element Materials AI Diffract Q1 2020 +19% First qtr
Slide 5: We Support the Entire Semiconductor Value Chain
We Support the Entire Semiconductor Value Chain Onto Innovation serves high-growth advanced markets from silicon manufacturing to advanced packaging Growth: ‘20-’21 ADVANCED 17% Memory Customers’ CapEx NODES Flat Logic/Foundry Customers’ CapEx 37% of revenue SPECIALTY DEVICES & 36% Adv. Packages (FO
Slide 6: 5G Contributes to Virtuous Cycle
5G Contributes to Virtuous Cycle Driving Multiple Onto Innovation Markets Specialty Devices Memory Advanced & Logic Packaging Adv. Nodes Mobile: Smartphones, Tablets, Wearables 5G Massive IOT: More Complex Data 1M Devices per Km2 Devices Center Growth (data) Beyond Mobile Infrastructure: cities, veh
Slide 7: Mobile Devices Drive ONTO Growth
Mobile Devices Drive ONTO Growth ~90% of devices measured / inspected by Onto Innovation Onto Growth Drivers • 5G Mobile Drives 35%- 40% of Revenue • Unit Volume Growth of Phones, Tablets, Advanced Nodes Advanced Packaging Specialty Devices Wearables Atlas, IMPUSE, Aspect Dragonfly, Firefly, JetStep
Slide 8: Billions of Devices
“Data Era” Driving Multiple Secular Growth Industries High-Performance Computing Drives 30% of Revenue Growth of Connected Devices Health 30 25 Billions of Devices Smart Environment Google AI 20 50% City processor 15 Growth +11 10 Billion! Mobile 5 Data 0 Smart Home Center 2019 2023 Global avg devic
Slide 9: New Products Measure the Most Challenging Dimensions
New Products Measure the Most Challenging Dimensions Advanced Logic and Memory driven by High-Performance Computing, AI, IoT, Autonomous Driving Channel Hole Etch 3nm GAA FET FinFET Deposition repeating layer thickness GAA FET: Gate All Around Field Effect Transistor ADVANCED NODES PRODUCT SUITE Our
Slide 10: 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 256 NEW Aspect 196 Onto 3D Optical! NAND 128 Layers 96 Optical Metrology is >10x faster Traditional & Competitor than X-Ray Metrology and the Optical Metrology best solution for HVM 64 NE
Slide 11: Advanced Packaging Customers Need High Fidelity Inspection Data for Logic-Memory Integration
Advanced Packaging Customers Need High Fidelity Inspection Data for Logic-Memory Integration • TSMC expected to introduce CoWoS for up to 8 HBM + 2 logic die in 2021 • Defect inspection and reliability inspection are critical to ensure high yields for very expensive packages! Source: TSMC 11
Slide 12: Complete Suite
Complete Suite We print, measure, and inspect the most advanced process technologies WAFER LEVEL DIE LEVEL COMPREHENSIVE PROCESS Bare wafer and patterned Interconnect reliability SOLUTIONS FROM ONTO INNOVATION defect detection FRONTSIDE DRAM SOC Logic EDGE Bumps RDL Layers TSVs BACKSIDE SERVING A VA
Slide 13: Onto Fundamentals
Onto Fundamentals Building a strong financial foundation post merger • Driving Down Operating Expenses • YTD Free Cash Flow: $69.5 Million 10% (3 Quarters) QUARTERLY OPERATING Gross Margin % Cumulative Revenue & FCF EXPENSES (YTD) $54 55% $450 $70 $52 >10% $400 $60 Reduction 53% $350 Revenue ($ Mill
Slide 14: Pro Forma Financial 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% Pro Forma Financial Model* Operating Profit 24% - 25% 29% - 30% 32% - 33% Earnings per $2.40 - $2.50 $3.85 - $4.00 $5.05
Slide 15: Why Invest in Onto Innovation?
Why Invest in Onto Innovation? >20% Growth in Inspection Outperforming Industry growth TECHNOLOGY Lithography Backlog Suggests Record Revenue in 2021 New Metrology Suite + Element + Iris Positioned for Growth in 2021 Operating Margin Improvement as $24M in Synergies Take Full Effect in 2021 OPERATIO
Slide 16: Thank You
Thank You Onto Higher Yields Onto Higher Margins Onto Higher Productivity Onto Innovation info@ontoinnovation.com www.ontoinnovation.com
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