Slide 1: Investor Presentation June 2006
Investor Presentation June 2006
Slide 2: Introduction to Nanometrics
Introduction to Nanometrics Who is Nanometrics? A leading provider of integrated and stand-alone metrology and process control technology to the global semiconductor manufacturing industry What sets NANO apart? Compelling growth story Outstanding market position Executing on its plan
Slide 3: Industry Trends Driving NANO Growth
Industry Trends Driving NANO Growth Consumer-driven siliconization Flash, SOC More complicated lithography Drives overlay and OCD spending New opportunities emerge for integrated metrology e.g., track: AMAT-Screen JV Energy applications driving next wave of materials USJ and material engineering Ado
Slide 4: Acquisitions are Key to Nanometrics' Growth
Acquisitions are Key to Nanometrics’ Growth Acquired Soluris in March $7 million cash purchase Created immediate impact on NANO share of Overlay market Announced proposed acquisition of Accent Optical in January Stock deal valued at ~$60 million * Expect to close at mid-year Accent receives 28% of N
Slide 5: Who is Soluris?
Who is Soluris? IVS Division of NANO Serving several markets Silicon, MEMS, GaAs, Inkjet and bump Robust technology Overlay and CD measurement in the same recipe High reliability, low COO solution 150+ systems in the field Strong history and financials 20 years in the business; buyout of Schlumberge
Slide 6: Who is Accent Optical?
Who is Accent Optical? Metrology company offering several technologies Overlay metrology Thin film metrology (film characterization, wafer mapping) Optical CD Defect detection Serving diverse markets Semiconductor photolithography process control Bare wafers/substrates: SSi, SOI… Wireless/HBLEDs Imp
Slide 7: Acquisitions Complement Nanometrics Products
Acquisitions Complement Nanometrics Products Stand-Alone Integrated Core Products with Leading Market Share Atlas/FLX Transparent Film Thickness 9010/BOLTS Dielectric CMP, CVD New Products and Expanding Markets Orion Advanced Overlay Control Atlas-M Mask and Reticle Metrology NanoOCD Optical CD Meas
Slide 8: Combination Provides Enhanced Channel
Combination Provides Enhanced Channel Nanometrics Accent Soluris
Slide 9: NANO Today: Outstanding Market Position
NANO Today: Outstanding Market Position Only metrology company with solutions for both integrated and stand-alone solutions Leveraged by acquisitions Enhanced channel Greater scale Unique market strengths Memory Complex litho apps Wireless/HBLED MEMS * Japan * Korea * Taiwan * USA * Europe * USA
Slide 10: Nanometrics Addresses Large and Growing Markets
Nanometrics Addresses Large and Growing Markets Source: Dataquest Market Size in $millions $1,200 $1,000 $800 $600 $400 $200 $0 $340 million $600 million $800 million 51% CAGR 22% CAGR 2003 2005 2009 Non-Metal Thin Film Metrology Integrated Metrology Mask Metrology Overlay Metrology Macro Defect Ins
Slide 11: Strong Position in Core Markets
Strong Position in Core Markets Source: Dataquest Non-Metal Thin Film Integrated #1 KLAC #1 NANO #2 NANO / TWAV #2 Nova #4 RTEC #5 Accent RTEC, TEL, KLAC <$5M OCD Overlay #1 KLAC #1 KLAC #2 NANO #2 Nikon (exiting) #3 TWAV #3 Accent #4 NANO-IVS
Slide 12: Well Positioned in Overlay Market
Well Positioned in Overlay Market Source: Company data GaAs MEMS/Inkjet Silicon ICs 2” to 6” wafers ASP $450-600k Accent Nano-IVS 4” to 8” wafers ASP $450-600k Accent Nano-IVS Nano-IVS Accent 200mm – 120nm + ASP $450-600k 300mm – 110nm and under ASP $750k-$1.1M KLAC Accent Nano-Orion Hitachi Wafer S
Slide 13: Double Exposure for Mainstream IC Production
Double Exposure for Mainstream IC Production Source: Semiconductor International Attractive option for extending 193nm lithography Companies looking to double exposure as mainstream Had been used only on most critical layers Timing window may be realized sooner; Less costly than implementing new tec
Slide 14: Double Exposure and Metrology
Double Exposure and Metrology Primary path for minimum feature resolution: 2002 2004 2006 2008 Scanner 248nm 193nm 193nm Immersion Mask OPC/RET Phase Shift (PSM) Double Exposure Mask Cost $ $ $$ Overlay budget 15nm 12nm 10nm Double Exposure is in addition to the previous technology Increases over
Slide 15: Compound Semiconductor Opportunity
Compound Semiconductor Opportunity Accent Business $30M $20M $10M ZnO SiC GaN FET HD-DVD laser UV-LED Green LED Blue LED DVD laser InP Opto GaAs Opto GaAs IC 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 High Speed GaAs ICs. CD lasers. GaAs is “The material of the future” Internet Dot Com B
Slide 16: What Sets Nanometrics Apart?
What Sets Nanometrics Apart? Compelling growth story Outstanding market position Executing on its plan Be a consolidator Improve the team Create operating leverage
Slide 17: First Quarter 2006 Financials
First Quarter 2006 Financials GAAP Net I23R Revenue $19.0 M $19.0 M Gross Margin 44.9% 45.4% Operating Expenses $10.2 M $9.4 M Operating Loss ($1.7 M) ($0.8 M) Net Loss ($1.3 M) ($0.5 M) EPS ($0.10) ($0.04) Cash and S-T Investments $33.5 M Total Debt $2.2 M
Slide 18: Unique Product Mix, Regional Strengths
Unique Product Mix, Regional Strengths Sales by Geography Sales by Product Taiwan Other 11% 4% USA 34% Korea 25% Japan 26% Stand-Alone 56% Other 6% Integrated 38% 2005 Q1 2006 Korea 30% * Taiwan 3% USA 42% * Japan 23% Stand-Alone 49% Other 2% Integrated 49% * Adjusted to reflect $4.3 million of reve
Slide 19: Improving Trend Toward Profitability
Improving Trend Toward Profitability Quarterly Revenue ($M) 24 22 20 18 16 14 12 10 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% % of Revenue Q1 ‘05 Q2 ‘05 Q3 ‘05 Q4 ‘05 Q1‘06 adj Revenue Product GM Service GM Blended GM Operating Margin
Slide 20: Significant Operating Leverage in the Model
Significant Operating Leverage in the Model GAAP Non-GAAP 2005 Q106 Target Cash Basis* Product Gross Margin 52% 50% 58% 60% Service Gross Margin (12%) 15% 19% 20% Blended Gross Margin 43% 45% 53% 55% SG&A 32% 40% 27% 23% R&D 18% 13% 13% 12% Operating Margin (7%) (9%) 13% 20% * Excludes non-cash expe
Slide 21: Final Thoughts
Final Thoughts Several growth drivers in the business Memory + 300mm spending Acquisitions Market share gains Integrated adoption New markets (overlay, track, wireless/HBLED, etc) A new Nanometrics Consolidator Enhanced channel Improved team Driving operating leverage
Slide 22: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the planned merger (the “Merger”) between Nanometrics, Inc. (“Nanometrics”) and Accent Optical Technologies, Inc. (“Accent”) pursuant to the Agreement and Plan of Merger and Reorganization dated January 25, 2006 (the “Merger Agreement”),
Slide 23: Additional Information and Where to Find It
Additional Information and Where to Find It Nanometrics and its executive officers and directors may be deemed to be participants in the solicitation of proxies from Nanometrics’ and Accent’s shareholders with respect to the transactions contemplated by the Merger Agreement. Information regarding su
Slide 24: Forward Looking Statements
Forward Looking Statements This communication contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, such as statements regarding the expected cost savings, impact of the Merger on operating results of the combine
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