Onto Innovation Inc. · NYSE:ONTO
Onto Innovation — B. Riley Securities Live Summer Summit 2021
17 slides from Onto Innovation's conference presentation, Aug 17, 2021
Slide 1: Onto Innovation Investor Presentation
Onto Innovation Investor Presentation AUGUST 2021
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: Serving the Semiconductor Industry End-to-End
Onto Innovation: Serving the Semiconductor Industry End-to-End 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 in
Slide 4: 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, Raw material for chips Adding layers of
Slide 5: 5G and Cloud Contribute to Virtuous Cycle Growth
5G and Cloud Contribute to Virtuous Cycle Growth Leading to growth in multiple Onto Innovation markets in 2021 Specialty Devices Adv. Advanced Nodes Packaging 5G Cloud More Complex Data Servers 2X 5G Devices Center AI Handsets (data) Edge Compute 2020- 20211 Streaming ADAS & EV AI Healthcare Virtual
Slide 6: "Data Era" Driving Multiple Secular Growth Industries
“Data Era” Driving Multiple Secular Growth Industries Advances in memory and transistor architectures enable growth in multiple industries Growth of Connected Devices 30 Health 25 Billions of Devices Smart Environment Google AI 20 50% City processor 15 Growth +11 10 Billion! Mobile 5 Data 0 Smart Ho
Slide 7: Our Served Markets
Our Served Markets* Total Process Control Market + AP Lithography Market $9,086 Million S&S AP&SD Advanced Nodes Optical Metrology (3D, Films) $1,170 Million Other Thin Film Metrology $200 Million Adv Nodes Adv. Packaging & Specialty Devices $2,333 SAM Macro Defect Inspection (FE + BE) $533 Million
Slide 8: More Opportunities in 2021!
More Opportunities in 2021! Foundation laid in 2020 expands served markets by over 20% +$400M TAM +21% +$100M SAM +$100M SAM +$80M SAM IRIS +SHARE Panel Packaging TAM Expansion ($200M SAM Overlay Metrology Record backlog for $2.3B Expansion) panel steppers SAM CIS / Dragonfly® Acquisition of $1.9B I
Slide 9: Onto Innovation's Global Supplier Size
Onto Innovation’s Global Supplier Size Why we matter to the largest manufacturers (strategic partner) • Top 2 tiers are viewed as critical/strategic TIER 1 suppliers for top tier customers 4 Suppliers CUSTOMERS • Big customers enter VPAs with these suppliers SPEND ~90% OF WFE SPEND WITH (ONTO has tw
Slide 10: Why Invest In Onto Innovation?
Why Invest In Onto Innovation? MARKET AND PRODUCT EXPAND GROSS AND M&A TEAM TO INCREASE DIVERSITY OPERATING MARGINS SHAREHOLDER VALUE EXPANDING MARKET LEADING MARGINS ~ $411 MILLION CASH, SHARE WITH NEW 55% GROSS MARGIN 26% OPERATING MARGIN NO DEBT PRODUCTS 10
Slide 11: Financial Highlights and Trends
Financial Highlights and Trends YoY gross profit and operating income growth outperform revenue growth REVENUE, GROSS PROFIT, OPERATING INCOME YOY CHANGE Balanced YTD Revenue Distribution 200 +43% +54% 180 +21% 20% 160 37% 140 MILLIONS $ 120 +46% +56% 100 +25% 43% 80 +122% 60 +83% +105% Advanced Nod
Slide 12: Onto Innovation's Long-Term Growth Drivers
Onto Innovation’s Long-Term Growth Drivers 2020 NEW PRODUCT INCREASED SCALE INTRODUCTIONS • Onto Scale now viewed as a • Increase 2021 SAM strategic supplier to leading • Enable customers’ 3nm manufacturers Advanced Nodes and • VPAs 25-30% higher than Advanced Packaging in previous year purchases 20
Slide 13: Long-term Operating Model
Organic Growth Resulting from Share Gains & Potential to Enter New Addressable Markets Annual Revenue $800M Model $1B Model Gross Margin 55% - 56% 56% - 57% Operating Profit 29% - 30% 32% - 33% Earnings per Share $3.85 - $4.00 $5.05 - $5.25 Long-term Operating Model* Reduce Comprehensive Carbon Foot
Slide 14: Why Invest in Onto Innovation?
Why Invest in Onto Innovation? Strong adoption of new products expanding our markets. TECHNOLOGY Further supported by projected growth across our markets. Global operations supporting diverse ~150 customer base. OPERATIONS Long term financial model with $5 per share earnings power $411M Cash, No Deb
Slide 15: Thank You
Thank You Onto Higher Yields Onto Higher Margins Onto Higher Productivity Onto Innovation info@ontoinnovation.com www.ontoinnovation.com
Slide 16: Appendix
Appendix Long-Term Operating Model: Organic Growth Major Products Portfolio
Slide 17: Onto Innovation's Major Products
Onto Innovation’s Major Products Atlas® V AWX™ FSI JetStep® Standalone thin film and Unpatterned frontside inspection Litho for Advanced Packaging and FPD OCD metrology Aspect® NovusEdge® Discover® Software OCD metrology for 3D NAND and Automated all-surface defect inspection Inline yield and defect
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