Nova Ltd. · NASDAQ:NVMI
Nova — Investor Presentation (February 2021)
31 slides from Nova's investor presentation, February 2021
Slide 1: Investors Presentation February 2021
Investors Presentation February 2021 1 © Nova Proprietary information
Slide 2: Forward Looking Statements
This presentation includes statements that constitute forward-looking risks related to taxation; changes in customer demand for our products; risks statements within the meaning of safe harbor provisions of the Private related to currency fluctuations; risks related to technology security threats, S
Slide 3: Nova is a leading innovator in solutions for 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 720 | Employees Presence | Israel HQ . Global Offices KEY Facts 3000 | Active Systems 150 | Customer Sites R&D | USA & Israel 5 © Nova Proprietary information
Slide 6: Growth
123% Sustainable Profitable $269M Growth $121M $222M Revenue 2014 2017 2020 2020 Performance 75% 13% 24% Revenue CAGR Operating Income CAGR $56M $42M $32M R&D Investment $269M 24% 2014 2017 2020 (Gross) Revenue Operating Margin 242% $63M $65M CAGR – 2015-2020 Operating $19M Non-GAAP Financials Incom
Slide 7: Strong Fundamentals
Unique Portfolio Dimensional and Materials Disruptive Technology X-Ray and Optical, HW and SW Diversified Exposure Strong Segments, Customers, Territories Fundamentals Solid Operational Model Agility, Efficiency, Profitability Cultural Advantage Business, Values, Social Responsibility 7 © Nova Propr
Slide 8: Investing in Talent
Investing in Talent Wide Diversity 70% 50% 20% Tech Oriented Employee Referral PhDs, MSc. Top Universities Internal & Global Mobility Breadth of Knowledge 8 © Nova Proprietary information
Slide 9: Share Gains and Revenue Growth
$269M Share Gains $222M Disruptive Innovation Diversified Revenue $121M TAM Expansion $103M Inorganic Contribution $39 2008 2011 2014 2017 2020 Non-GAAP Financials Revenue Growth 9 © Nova Proprietary information
Slide 10: 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 10 © Nova Proprietary information
Slide 11: IC Industry Eco System
IC Industry Wafer Fabrication Eco System Eco System (Fabless) (FAB) (OSAT) 11 © Nova Proprietary information
Slide 12: 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 12 © Nova Proprietary information
Slide 13: Measuring the Invisible Transistor
Transistor Optical/X-Ray Measuring Physical & Mathematical Algorithms The Invisible Transistor 13 © Nova Proprietary information
Slide 14: Rich Metrology Portfolio
Dimensional Metrology • Optical Critical Dimensions Integrated Metrology Integrated Metrology Standalone Metrology Services Rich Metrology Materials Productivity Metrology Performance Portfolio • Materials Properties X-Ray (XPS, XRF) Raman Spectroscopy Extendibility & Enhancement Software • Physical
Slide 15: Core Disruptive Technology
Core Disruptive Technology Technology Spectral Reflectometry Spectral Interferometry Multi Channel Integrated Metrology X-Ray Photoelectron Spectroscopy (XPS) Raman Spectroscopy X-Ray Fluorescence (XRF) Deep Technology Physical Modeling More Ahead…. Fleet Management 15 © Nova Proprietary information
Slide 16: Data growth and mega trends
Smart World AI AR / VR Data Autonomous 5G Industry 25% Centers 4.0 Vehicle 40% CAGR 77% 77% CAGR CAGR 30% 30 TB CAGR CAGR 1PT Per Car Daily Per day 2010 2015 2020 2025 Mobile Internet Data Augmentation Enhanced Connectivity Data Efficiency Mobility Productivity Resiliency Veracity 16 © Nova Propriet
Slide 17: Growing Demand
Growing 1 2 Demand Semiconductors enable Connected Sensors advanced digitization Architecture Data Management Smartphone Gaming Cryptonomy & Video Semi COVID Growth Acceleration Scaling 5G AR/VR Wearables Network Infrastructure Cloud Robots Smart Data World Portable Devices Cost AI Automotive IOT Se
Slide 18: 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 18 © Nova Proprietary information
Slide 19: 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 20: Outperforming Process Control
Outperforming Process Control CAGR by ~18% Operating Income Grows at Double the Rate of Revenue >$200M in Operating Cash Flow in 5 years Process Control Nova Revenue Nova Oprerating Income Source: Gartner research and company information Non-GAAP Financials 20 © Nova Proprietary information
Slide 21: Why Do We Continue Growing?
Why Do We CONTINUE GROWING? Increasing Market Share while Expanding TAM Customers Diversification Tech Nodes Segments Technology Geography 21 © Nova Proprietary information
Slide 22: Target Model: Segment Mix Memory vs Foundry/Logic
Target Model Segment Mix: Memory versus Foundry / Logic Segments Balance 50% 30% Memory Memory Memory Growth 2019 2020 Foundry Leadership 50% 70% Logic Logic Source: company financial information Non-GAAP Financials 22 © Nova Proprietary information
Slide 23: Target Model: Regional Mix
Target Model Regional Mix 21% 22% China China Balanced Exposure 34% 32% Taiwan Taiwan 3 Large Territories 8% 12% USA 10% 2019 Taiwan USA 6% 2020 Diversified Expansion in Korea Exposure Territory Mix Other Other Strong Position in China 26% 30% Korea Korea Source: company financial information (Produ
Slide 24: Target Model: Trailing vs. Advanced
Target Model Trailing vs. Advanced (Memory & Logic) Balanced Mix 35% 35% Trailing Trailing Trailing Led by China, Image Sensors & IOT 2019 2020 Advanced Led by Big 5 65% 65% Advanced Advanced Source: company financial information Non-GAAP Financials 24 © Nova Proprietary information
Slide 25: Target Model
Target model $400M Growing Beyond $350M Inorganic M&A Revenue Organically Process Control > $50M Services $300M Share Gains TAM Expansion Materials $200M Metrology Disruptive Innovation Organic $300M M&A $100M Dimensional Metrology 2015 2020 Target Source: company financial information 25 © Nova Pro
Slide 26: Total Organic Addressable Market
Total Organic Addressable Market $300M New TAM $1,100M $920M Differentiated Technology Innovative Metrology $500M X-Ray-Optical Convolution 2015 2020 2023 Physical and ML Algorithms Data-Driven Solutions Investment in New Technologies Training and Prediction Capabilities (of Total R&D, Gross) $56M S
Slide 27: Inorganic Approach
Inorganic Approach Search Guidelines Early Access Lab to Fab Technology Top Line Synergy Materials Complementary Leadership Technology Operational Software Offering Leverage (Accretion) Enhancement Diversification within Adjacent Core Capabilities Process Control Markets 27 © Nova Proprietary inform
Slide 28: Financial Performance
Financial Operating Margin Performance 22% Revenue ($M) 19% 24% 15% $117M $108M H1 19 H1 20 H2 19 H2 20 $21mm $26mm Note: Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated fin
Slide 29: Enabling Inorganic Growth
Enabling Inorganic Growth Cash Reserves on Balance Sheet Facilitating Continuous R&D Investment $200M Convertible debt due 2025 $178M $191M 2018 2019 2020 Non-GAAP Financials 29 © Nova Proprietary information
Slide 30: Key Takeaways
Market Cap $2.0B Key Takeaways Positioned for Continuous Growth $0.30B 2015 2020 Growing Demand for IC Drives capacity & Increasing Complexity Increasing need for advanced metrology solutions EPS $2.06 Unique, Disruptive Technology Portfolio $0.71 Driving a stronger position and expanding TAM Solid
Slide 31: Thank You
Thank You 31 31 © Nova Proprietary information