Onto Innovation Inc. · NYSE:ONTO
Onto Innovation — 11th Annual NYC Summit (December 2022)
20 slides from Onto Innovation's conference presentation, December 2022
Slide 1: Onto Innovation Investor Presentation
Onto Innovation Investor Presentation DECEMBER 2022
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 Top WFE Strategic Supplier Tier1 High tech capital equipment company specializing in optical process solutions for semiconductor and related markets Annual Revenue Growth (‘20-’22) $556M to $1.003B3 NOVEMBER 2019: RTEC-NANO MERGER Q1 2020 Gross Margin2 Q3 2022 Gross Margin2
Slide 4: Positioned for Sustainable Outperformance
Positioned for Sustainable Outperformance Why We WIN SERVING ENTIRE SEMICONDUCTOR BREADTH OF PRODUCTS FINANCIAL DISCIPLINE VALUE CHAIN As a result of our strategic supplier Our software technologies are We have demonstrated ongoing status and connected thinking with connecting multiple metrology and
Slide 5: Serving the Entire Semiconductor Value Chain
Serving the Entire Semiconductor Value Chain Three main semiconductor production facilities SILICON WAFER MANUFACTURING WAFER FABRICATION ADVANCED PACKAGING Separating wafers to individual chips, Raw material for chips Adding layers of printed circuitry connecting multiple chips into a single packag
Slide 6: Onto Innovation's Enabling Technologies
Onto Innovation’s Enabling Technologies High tech capital equipment company specializing in optical process solutions for semiconductor and related markets SILICON WAFER MANUFACTURING WAFER FABRICATION ADVANCED PACKAGING Separating wafers to individual chips, connecting Raw material for chips Raw ma
Slide 7: Revenue Distribution Across the Value Chain
Revenue Distribution Across the Value Chain VALUE CHAIN ONTO SEGMENTS SERVING INDUSTRY LEADERS BALANCED YTD 2022 REVENUE DISTRIBUTION ACROSS THE Silicon Wafer SEMICONDUCTOR VALUE CHAIN Manufacturing 17% Wafer 40% Fabrication 43% Specialty Devices & Advanced Packaging Advanced Nodes Advanced Packagin
Slide 8: The Strength of Our Products Across the Value Chain
The Strength of Our Products Across the Value Chain BREADTH ACROSS THE SEMICONDUCTOR VALUE CHAIN BARE WAFER ADV NODES SPECIALTY DEVICES ADV. PACKAGING DRAM | NAND | LOGIC POWER | CIS | 5G | MEMS WAFER PANEL DEPTH OF SYNERGISTIC PRODUCTS ELEMENT COMPOSITION METROLOGY ATLAS OCD METROLOGY ASPECT IRCD M
Slide 9: Expanding Onto Innovation's Served Markets
Expanding Onto Innovation’s Served Markets ~$350M* new market SAM with Onto’s new products Element™ Onto Innovation’s Product Portfolio FTIR metrology $119M $344M Aspect® OCD metrology for 3D NAND and high aspect ratio structures $156M Echo™ Acoustic film metrology Atlas® V Standalone thin film and
Slide 10: R&D Scale Propels Cadence of Product Introductions
R&D Scale Propels Cadence of Product Introductions IP and technology leverage to accelerate pace of innovation and new product share gains ~$2.6 BILLION SAM IN 2023* #1 OR #2 IN PROCESS CONTROL MARKETS $1,000M SPECIALTY DEVICE & $1,200M ADV. PACKAGING SAM METROLOGY SAM • 2D Defect Inspection $120M •
Slide 11: Semiconductor Market Transitioned From Cyclical to Growth
Semiconductor Market Transitioned From 20 Year Cyclical to 10 Year Growth Broader Demand $100 Improving Manufacturing Efficiency Transition 300MM, $80 Industry consolidation, WFE $ (Billions) Rise of foundry $60 $40 $20 $- Source: Historic WFE: Jeffries Semiconductor Report, January 2022 and 2022-20
Slide 12: Onto Growth Driver: Panel / Substrate Packaging
Onto Growth Driver: Panel / Substrate Packaging High performance compute, intelligent edge, AI, mobility GROWING DEMAND ONTO REVENUE GROWTH IN PANEL Comprehensive Solutions STEPFAST PROPRIETARY Lithography – Inspection SOLUTION - Control FOR PANELS $90 $80 FIREFLY® DISCOVER® INSPECTION SOFTWARE $70
Slide 13: Onto Growth Driver: Compound Semiconductors
Onto Growth Driver: Compound Semiconductors GROWING DEMAND ONTO REVENUE GROWTH IN COMPREHENSIVE SOLUTION TO COMPOUND SEMICONDUCTORS HIGHER YIELD, FASTER RAMP SUBSTRATE 5G $100M QUALITY SUBSTRATE QUALITY INCREASE ONTO REVENUE 2021-2026 Energy Electric Vehicles Infrastructure DISCOVER® 19% CAGR YIELD
Slide 14: Growth of Semiconductors in Automotive
Growth of Semiconductors in Automotive Transition from ICE to EV and Adoption of ADAS Technologies Automotive Technologies Forecast To Experience ~ 13% CAGR From 2022 to 2026 14 Source: Omdia, March 2022
Slide 15: Q4-2022 Quarter Guidance Recap
Q4-2022 Quarter Guidance Recap* Published October 27, 2022 REVENUE $244M to $256M Model Assumptions • Non-GAAP Operating Expenses: $60M -$62M • Effective Tax Rate: GROSS MARGIN 54% to 55% 12% - 13% • Diluted Share Count: 49.3 Million OPERATING MARGIN 29% to 31% DILUTED EPS $1.25 to $1.40 * Non-GAAP
Slide 16: 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 Long-term Ope
Slide 17: 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 >$550M cash, no debt, provides fuel for strategic M&A 17
Slide 18: Thank You
Thank You Onto Higher Yields 谢谢 | 謝謝 ありがとう Obrigado Onto Higher Margins Onto 감사합니다 DankeHigher Productivity Merci Onto Innovation info@ontoinnovation.com www.ontoinnovation.com
Slide 19: Appendix
Appendix innovatione Onto
Slide 20: 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
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