Onto Innovation Inc. · NYSE:ONTO
Onto Innovation — Investor Presentation (January 2023)
23 slides from Onto Innovation's investor presentation, January 2023
Slide 1: Onto Innovation Investor Presentation
Onto Innovation Investor Presentation JANUARY 2023
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: Semiconductor Transition From Cyclical to Growth
Semiconductor Transition From 20 Year Cyclical to 10 Year Growth Auto, Smart Home, IoT, Streaming, PCs, Servers, IT Smartphones, Tablets, Mobility Transportation Logistics $100 IMPROVING MANUFACTURING EFFICIENCY Transition 300MM, $80 Industry consolidation, WFE $ (BILLIONS) Rise of foundry $60 $40 $
Slide 5: ONTO: Positioned for Sustainable Outperformance
ONTO: Positioned for Sustainable Outperformance Why We WIN SERVING ENTIRE SEMICONDUCTOR PACE OF INNOVATION FINANCIAL DISCIPLINE VALUE CHAIN Product portfolio is Product innovations Organic, long-term across the entire value expand served markets operating model chain serving multiple and opportuniti
Slide 6: Serving the Entire Semiconductor Value Chain
Serving the Entire Semiconductor Value Chain SILICON WAFER WAFER WAFER ADVANCED PACKAGING MANUFACTURING Separating wafers to individual FABRICATION FABRICATION chips, connecting multiple chips into Raw material for chips Advanced Nodes Specialty Nodes a single package MARKET DRIVER: MARKET DRIVERS:
Slide 7: Serving the Entire Semiconductor Value Chain
Serving the Entire Semiconductor Value Chain SILICON WAFER WAFER WAFER ADVANCED PACKAGING MANUFACTURING Separating wafers to individual FABRICATION FABRICATION chips, connecting multiple chips into Raw material for chips Advanced Nodes Specialty Nodes a single package Physical Defect 3D Metrology 3D
Slide 8: Revenue Distribution Across the Value Chain
Revenue Distribution Across the Value Chain VALUE CHAIN ONTO SEGMENTS MARKET 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 Packaging & Specia
Slide 9: 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
Slide 10: Hedged Product Portfolio Results in Historic Company Outperformance
WFE ONTO 75% 55% Hedged Product Portfolio Results in 35% Historic Company Outperformance 15% Year over year growth % -5% -25% 2021 2022 2023 Company percentage change in revenue YoY vs. WFE percentage change YoY. 2023 is current analyst estimates and Company revenue forecast. 10
Slide 11: Broad Market Exposure for Company Outperformance in 2023
Broad Market Exposure for Company Outperformance in 2023 Specialty / advanced packaging / bare wafer offset reduced CapEx in logic/memory* 2023 PRODUCT FORECAST WFE Forecast -22% Total Company Revenue -15% Power Bare Wafer Adv. Substrate Litho. Logic/Memory *Company sales forecast by application for
Slide 12: Markets Originating from Optics and Software Technologies
Markets Originating from Optics and Software Technologies IP and technology leverage to accelerate pace of innovation and new product share gains #1 OR #2 IN PROCESS CONTROL MARKETS $850M INSPECTION & ACOUSTIC $1,100M METROLOGY METROLOGY SAM • 2D Defect Inspection $120M • 3D Metrology TOOL & FAB • P
Slide 13: Advanced Packaging Technologies
Advanced Packaging Technologies Growing our share of the booming advanced IC substrate market through advanced lithography and inspection $400 Over 43% $350 HIGH PERFORMANCE DEEP LEARNING / A.I. CLOUD COMPUTING SAM Growth COMPUTING (HPC) $300 $250 SAM ($M) MULTICHIP ARCHITECTURE REVOLUTION $200 $150
Slide 14: Onto Growth Driver: Panel / Advanced Substrate Packaging
Onto Growth Driver: Panel / Advanced Substrate Packaging High performance compute, intelligent edge, AI, mobility GROWING MARKET DEMAND JETSTEP REVENUE GROWTH IN PANEL LITHOGRAPHY $90 $80 $70 $60 Hyperscale Data AR/VR Centers $50 2021-2025 11% CAGR $40 $30 $20 $10 $0 Mobility AI & Big Data 2020 2021
Slide 15: Onto Growth Driver: Planar Films Metrology
Onto Growth Driver: Planar Films Metrology Growth from Tier II power, LED, CIS markets GROWING MARKET DEMAND PLANAR FILMS GROWTH IN POWER & SPECIALTY Energy Electric Vehicles Infrastructure BROAD APPLICATIONS DRIVE ONTO GROWTH Lighting Camera Sensors 2020 2021 2022 2023 (Forecast) * Company Films Re
Slide 16: Compound Semi Technologies for Power Markets
Compound Semi Technologies for Power Markets Engaging the right customers at the right time to seize the growth opportunities in the power market $500 $400 Over 55% SAM Growth SAM ($M) $300 $200 $100 $0 2023 2024 2025 2026 2027 CREATING GROWTH OPPORTUNITIES ACROSS THE PORTFOLIO Thin Film Unpatterned
Slide 17: Growth of Semiconductors in Automotive
Growth of Semiconductors in Automotive Transition from ICE to EV and adoption of ADAS technologies ICE Control, Entertainment Sensors, Infotainment EV, ADAS $91.4B 2X $42.1B 2X 2X $20.2B $10.5B 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 18: 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 G
Slide 19: Long-term Operating Model
Long-term Operating Model* Organic Growth Resulting from Share Gains & Profitability Improvement Initiatives Potential to Enter New Addressable Markets Annual $1.2B $1.4B • Material cost reductions and part number rationalization $1B Model Revenue Model Model • Improving gross margin profile for our
Slide 20: 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 20
Slide 21: 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 22: Appendix
Appendix innovatione Onto
Slide 23: Onto Innovation's Major Products
Onto Innovation’s Major Products Atlas® V Firefly® Element™ Standalone thin film and Sub-micron panel inspection FTIR metrology OCD metrology Aspect® AWX™ FSI JetStep® OCD metrology for 3D NAND and Litho. for Advanced Packaging and FPD Unpatterned frontside inspection high aspect ratio structures No
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