Nova Ltd. · NASDAQ:NVMI
Nova — Investor Presentation (January 2022)
32 slides from Nova's investor presentation, January 2022
Slide 1: Investors Presentation
Investors Presentation January 2021 1 © Nova Proprietary information
Slide 2: Forward Looking Statements
This presentation contains forward-looking statements within the meaning of safe The matters discussed in this presentation also involve risks and uncertainties harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to summarized under the heading “Risk Factors” in Nova’s
Slide 3: Nova is a leading innovator and key provider of solutions
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 1000 | Employees Presence | Israel HQ . Global Offices KEY Facts >4000 | Active Systems Installed-Base >200 | Customer Sites R&D | Israel, USA, Germany 5 © Nova Proprietary information
Slide 6: Sustainable Profitable Growth
179% Sustainable Profitable Growth $413M $251 $148M Revenue 2015 2018 2021 2021 Performance 56% 20% 33% Revenue CAGR Operating Income CAGR $63M $51M $41M R&D Investment $413M 30% 2015 2018 2021 (Gross) Revenue Operating Margin 468% $125M $68M Operating CAGR – 2016-2021 Non-GAAP Financials $22M Incom
Slide 7: 2Y Revenue Growth $413M Share Gains
2Y Revenue Growth (2019-2021) 100% 66% $413M* Share Gains Disruptive Innovation $251M Process Control Nova Diversified Revenue $164M 5Y CAGR TAM Expansion (2016-2021) Lab to Fab 22% 16% 2016 2018 2021 Nova Revenue Growth Process Control Nova Non-GAAP Financials, Product revenue, 7 © Nova Proprietary
Slide 8: Investing in Talent
Investing in Talent Wide Diversity 64% 55% 20% Tech Oriented Employee Referral PhDs, MSc. Top Universities Internal & Global Mobility Breadth of Knowledge 8 © Nova Proprietary information
Slide 9: A strong metrology leader with a differentiated portfolio
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 10: Deal Financial Rational
Nova acquires 100% of ancosys GmbH, a privately held company for ~$100 million USD in cash including $10 million USD performance based earnout Deal Deal closing expected by Q1 2022 The combined company Financial is expected to generate over $500M in annual Rational revenues Deal expected to be accre
Slide 11: Strong Fundamentals
Unique Portfolio Dimensional, Materials & Chemical Disruptive Technology X-Ray, Optical, Chemical, HW and SW Strong Fundamentals Diversified Exposure Segments, Customers, Territories Solid Operational Model Agility, Resiliency, Profitability Cultural Advantage Partnership, Values, Social Responsibil
Slide 12: 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 12 © Nova Proprietary information
Slide 13: Process Control in IC Fabrication
Fabless FE IC Fabrication Process Control Process equipment Materials Packaging ( ) 13 13 13© Nova © Nova Proprietary Proprietary information© Nova confidential & proprietary information information
Slide 14: Innovative Technology
Innovative Technology LOGIC FLASH DRAM 300mm 20um 3nm 0.5Å Wafer Pad Node Precision [One ten-billionth of a meter] Semiconductor Dimensions / Materials Optical / X-Ray Segments Parameters 14 © Nova Proprietary information
Slide 15: Transistor Device
Transistor Device Optical Advanced SW X-ray Chemical Physical & Mathematical Algorithms Transistor 15 © Nova Proprietary information
Slide 16: Expanding Into New Markets
Expanding Into New Markets Expanding Nova’s reach to BE, Advanced Packaging and Chemical/Material Suppliers Advanced Packing New Materials Cost Economics Vertical Integration Efficiency Device Scaling 16 16 © Nova © Nova Proprietary Proprietary information information
Slide 17: Rich Portfolio
Dimensional Metrology • Optical Critical Dimensions Software Integrated Metrology Integrated Metrology Standalone Metrology Rich Metrology Materials Metrology Portfolio • Materials Properties • Physical & X-Ray (XPS, XRF) Raman Spectroscopy SIMS Mathematical Modeling • Big Data Analytics Chemical Me
Slide 18: Core Disruptive Technology
Core Disruptive Technology Technology Spectral Reflectometry (SR) Spectral Interferometry (SI) Multi Channel Integrated Metrology X-Ray Photoelectron Spectroscopy (XPS) Raman Spectroscopy X-Ray Fluorescence (XRF) Secondary ion mass spectrometry Physical Modeling High-Performance Liquid Chromatograph
Slide 19: Robotic Process Automation, AI, Cloud, 5G
Robotic Process Automation AI VR Cloud Autonomous 5G 25% Computing Industrial Vehicle 42% CAGR 36% IoT 37% CAGR CAGR 25% 20 TB CAGR CAGR 23% Per Car Daily CAGR 2010 2015 2020 2025 Mobile Internet Data Augmentation Enhanced Connectivity Data Efficiency Mobility Productivity Resiliency Veracity 19 © N
Slide 20: Growing Demand
Growing 1 2 Demand Semiconductors enable advanced digitization Architecture Smartphone Gaming Cryptonomy & Video 5G IOT Sensors Wearables Materials Cloud Data AI Automotive Acceleration Explosion Enablement 20 © Nova Proprietary information
Slide 21: Dimensional Metrology Intensity
Dimensional Metrology Intensity Planar FinFet Nano Sheet Logic 3D NAND Single Stack Multi-deck Over Periphery Scaled Devices 3D Profiles Multiple Parameters DRAM 1Y 1a 1b Thinner Films Packaging 21 © Nova Proprietary information
Slide 22: Materials Engineering
Materials Engineering Beyond Moore’s Law Growth in IC Embedded Materials Broader Metrology Scope (Composition, Stress, Strain) Ternary & up Alloys Binary Alloys Past Present Future Dielectrics 21 62 66 Binary Alloys Dielectrics Metals Dielectrics 2D Materials Metals Metals Semiconductors Semiconduct
Slide 23: Driving Forces for Chemical Metrology
Driving Forces for Chemical Metrology Front End 2015 2022 Packaging 2015 2022 # of interconnect steps 6 18 Device Complexity Flip-Chip 3D-IC Material purity (PPM) 5 <=1 Organics to control 3 10 Monitoring frequency Hrs. Min. Analytic methods X 2X Global Trends Rising cost of chemicals Tighter enviro
Slide 24: Outperforming Process Control CAGR
Outperforming Process Control CAGR by ~25% Operating Income Outgrows Revenue >$300M in Operating Cash Flow in 5 years Estimated gross cash reserves by end of 2021 $550M Process Control Nova Revenue Nova Oprerating Income Source: Gartner research and company information Non-GAAP Financials; Nova reve
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: Diversification Across the Board
Diversification Across the Board 25% 30% 66% China Memory Leading 35% 34% Taiwan 5% Trailing Other 2021 2021 2021 10% 70% 25% USA Logic Korea Company Product Revenues 26 © Nova Proprietary information Based on company estimations for 2021 results
Slide 27: Total Addressable Market
Total Addressable Market Differentiated Technology New $200M Innovative Metrology Materials TAM X-Ray-Optical Convolution $1,500M Physical and ML Algorithms Data-Driven Solutions $975M Training and Prediction Capabilities $500M Service Revenue Extendibility & Enhancement 2015 2020 2023 Value Added S
Slide 28: 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 28 © Nova Proprietary inform
Slide 29: Continuous Revenue Growth
Continuous Revenue Growth Operating Margin Gross Margin Cash Reserves +55% $113M $118* $98M 56% $428M $84M $76M 22% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 2020 2021 2020 2021 2020 2021 Non-GAAP Financials *Mid-guidance Q4 2021 Note: Our non-GAAP measures are not meant to be considered in isolation or as a su
Slide 30: Financial Performance 2021 Annual Results
Financial Performance 2021 Annual Results Earnings Per Share (Non-GAAP) +94% Continuous Revenue Growth +53% $3.79* $2.06 $413M* 2020 2021 $269M *Including Mid-guidance Q4 2021 Non-GAAP Financials Note: Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparabl
Slide 31: Key Takeaways
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 32 © Nova Proprietary information