Slide 1: Investors Presentation August 2022
Investors Presentation August 2022
Slide 2: Cautionary Statement Regarding Forward Looking Statements
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 not limited to, the following: catastrophic e
Slide 3: Nova is a leading innovator and key provider of solutions for advanced 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 >4700 | Active Systems >200 | Customer Sites R&D | Israel, USA, Germany 5 © Nova Proprietary information
Slide 6: Sustainable Profitable Growth
180% Sustainable Profitable Growth $416 $251 $148M Revenue 2015 2018 2021 2021 Performance 65% 20% 33% Revenue CAGR Operating Income CAGR $66M $50M $40M R&D Investment $416M 30% 2015 2018 2021 (Gross) Revenue Operating Margin 472% $126M $68M Operating $22M Income CAGR – 2016-2021 Non-GAAP Financials
Slide 7: Share Gains, Differentiated Portfolio, Disruptive Innovation
Product Revenue Growth (2019-2021) 102% 69% $416M Share Gains Differentiated Portfolio $251M Process Control Nova Disruptive Innovation $164M Diversified Revenues 5Y Products CAGR (2016-2021) TAM Expansion 22% 17% 2016 2018 2021 Nova Revenue Growth Process Control Nova 7 © Nova Proprietary informati
Slide 8: Revenue and EPS
+45% Record Optical CD SA revenue $134M $142M Revenue Actual $121M $113M $137M Mid- Guidance Four major territories $98M contributing >15% each $1.3 $1.24 EPS $1.16 $1.08 Actual $0.9 Proliferation of Nova $1.16 Mid- Guidance METRION® - selected by advanced logic manufacturer Q2 21 Q3 21 Q4 21 Q1 22
Slide 9: Financial Performance H1 2022 Results
Financial Performance H1 2022 Results Earnings Per Share (Non-GAAP) +59% Continuous Revenue Growth +52% $2.54 $1.6 $276M H1 2021 H1 2022 $182M Non-GAAP Financials Note: Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be rea
Slide 10: A strong metrology leader with a differentiated portfolio for advanced process control
Expanded portfolio Increases TAM Cross markets synergy Dimensional, By $300M Front-end, Back-end Materials, Chemical & Advanced Packaging Cultural Strength Adapting to Global Potential tech synergy high-end technology and Dynamics Better process insight cultural synergy Operations center in Europe A
Slide 11: Deal Financial Rational
Nova acquires 100% of ancosys GmbH, a privately held company for ~$80 million USD Deal in cash, including $10 million USD performance based earnout Financial The combined company is expected to generate Rational over $500M in annual Deal expected to be accretive within revenues 12 months of closing
Slide 12: Strong Fundamentals
Unique Portfolio Dimensional, Materials & Chemical Disruptive Technology X-Ray, Optical, Chemical Analytics, HW & SW Strong Fundamentals Diversified Exposure Products, Segments, Customers, Territories Solid Operational Model Agility, Resiliency, Profitability Cultural Advantage Unique DNA, Social Re
Slide 13: We Are in Your Pocket
NAND Flash Serial Flash NOR Flash Bluetooth Mobile DDR DRAM RF Power Amplifiers Baseband A-GPS Power Management IC Jack Skeens / Anjar G / Shutterstock.com We Are in Your Pocket Advanced devices measured by Nova tools 13 © Nova Proprietary information
Slide 14: Semiconductor Value Chain: Process Control
Chip Design (Fabless) Front End Fabrication Process Control Process equipment Materials Packaging ( ) 14 © Nova © Nova Proprietary Proprietary information information
Slide 15: 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 15 © Nova Proprietary information
Slide 16: Revealing The Invisible
Revealing The Invisible Memory Transistor Dimensional Advanced SW Packaging Device Materials Chemical Physical & Mathematical Algorithms Logic Transistor 16 © Nova Proprietary information
Slide 17: Addressing Multiple Markets
Addressing Multiple Markets Advanced Economics Packaging Performance Materials Engineering Efficiency Scaling Vertical Integration Device Scaling 17 © Nova Proprietary information
Slide 18: Rich Metrology Portfolio
Dimensional Metrology • Critical Dimensions Software Integrated Metrology Integrated Multi Standalone Metrology channel Metrology Rich Metrology Materials Metrology Portfolio • Materials Properties • Physical & X-Ray - XPS, XRF Raman Spectroscopy SIMS Mathematical Modeling • Big Data Analytics Chemi
Slide 19: 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 20: Megatrends Driving Semiconductor Demand
Robotic Process Automation AI VR Cloud Autonomous 5G 25% Computing Industrial Vehicle 42% 36% IoT 37% 25% 20 TB CAGR CAGR CAGR CAGR CAGR 23% Per Car Daily CAGR 2010 2015 2020 2025 Mobile Internet Data Augmentation Enhanced Connectivity Data Efficiency Mobility Productivity Resiliency Veracity 20 © N
Slide 21: Growing Demand
Growing 1 2 Demand Semiconductors enable Connected Sensors advanced digitization Data COVID Architecture Management Effect Smartphone Gaming Cryptonomy & Video Semi Growth 5G IOT Sensors Wearables Network Trade Materials Infrastructure Effect Cloud Data AI Automotive Mobile Devices Acceleration Expl
Slide 22: Dimensional Metrology Intensity
Dimensional Metrology Logic Intensity Planar FinFET Nano Sheet 3D NAND Scaled Devices Single Stack Multi-deck Over Periphery 3D Profiles Multiple Parameters DRAM Thinner Films 1a 1b 1c Packaging 22 © Nova Proprietary information
Slide 23: Materials Engineering
Materials Engineering Beyond Moore’s Law Broader Metrology Scope X4 Inline In-Die HVM (Composition, Thin Films , Stress, Strain) X3 Past Present 21 62 R&D/ Qualification Single Stack / Planar 23 © Nova Proprietary information
Slide 24: Chemical Metrology Intensity
Chemical <150µm <60µm <40µm I/O Pitch Metrology Intensity Back End: Advanced Packaging Flip-Chip Fan-Out Hybrid 3D 8 13 17 Interconnect Layers complexity New materials Front End: Interconnect New chemistries Planar FinFET GAA Stability and purity Tighter process control 24 © Nova Proprietary informa
Slide 25: Why Do We Continue Growing?
Why Do We CONTINUE GROWING? Increasing Market Share while Expanding TAM Customers Diversification Tech Nodes Segments Technology Geography 25 © Nova Proprietary information
Slide 26: Greater Exposure
Greater Exposure 30% 30% 55% China Memory 30% Trailing Taiwan H1 H1 H1 2022 2022 15% 2022 45% USA 20% 70% Leading Korea Logic 5% Other 26 © Nova Proprietary information
Slide 27: Total Addressable Market
Total Addressable Market XPS SI $500M New SIMS Materials OCD Raman Optical CD Materials Dimensions CD & $1,700M Films SW Chemical $980M HPLC Deep Tech $500M PCGA 2015 2020 2023 27 © Nova Proprietary information Source: Gartner Research & company financial information
Slide 28: TAM Growth
TAM Growth 340% Differentiated Technology $2.2B Innovative Metrology Raman, SIMS and Chemical Hybridization Nova $0.98B TAM $0.5B Physical and ML Algorithms Data-Driven Solutions 2015 2020 2025 Training and Prediction Capabilities 176% Service Revenue Extendibility & Enhancement Value Added Services
Slide 29: Inorganic Approach
Inorganic Approach Search Guidelines Early Access Lab to Fab Technology Top Line Synergy Materials Complementary Leadership Technology Operational Software Offering Leverage (Accretion) Enhancement Diversification within Adjacent Core Capabilities Process Control Markets 29 © Nova Proprietary inform
Slide 30: Corporate Social Responsibility
Ethics 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 and Financial Target Model
Key Takeaways Financial Target Model Positioned for Continuous Growth Gross Margin Growing demand for IC drives capacity & Increasing complexity Increasing need for advanced metrology solutions 56%-59% Unique and disruptive technology portfolio R&D Investment Driving a stronger position and expandin
Slide 32: Thank You
Thank You