Slide 1: Investors Presentation
Investors Presentation Gabi Seligsohn, President & CEO Dror David, CFO January 2012
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation includes statements that constitute forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future financial performanc
Slide 3: Business Highlights
Business Highlights — Pure player in the semiconductors optical metrology market, enjoying strong business fundamentals: — Nova is exposed to the highest growing semiconductor applications — Optical Metrology continuously outperforms the industry — Nova is entering the emerging market of 3D intercon
Slide 4: Company Overview
Company Overview — Founded in 1993 - IPO in 2000 (NASDAQ - NVMI) — Headquarters: Rehovot, Israel — Global presence: — Asia Pacific - Taiwan, Korea, Singapore, China — United States, Japan and Europe — Employees: 350 — Active installed base >1000 systems — Listed on NASDAQ and Tel-Aviv Stock Exchange
Slide 5: Optical CD - Leading and emerging technology
Optical CD - Leading and emerging technology Semiconductor Wafer Cross-Section View Using Electron Microscope Same View Using Optical CD Scatterometry View Integrated Circuit Die
Slide 6: Nova's Products Portfolio Starting 2012
Nova’s Products Portfolio Starting 2012 NEXT i500 SA NEXT T500 T600 SW NOVAMars SW Packages Multiple products across technologies 3D-IC IM Process control for current and future technologies
Slide 7: Well positioned in most critical segments
Well positioned in most critical segments 7 Memory: NAND +5% DRAM +3% Foundry: -8% Est. 12/11 WFE Growth: Source: Average Barclays Cap, SEMI, Needham
Slide 8: Strong SA position at multiple leading accounts
Strong SA position at multiple leading accounts Nova Optical CD Differentiation Cluster Providing an excellent platform for further growth At Year End # Standalone Customers Best Reliability Best Solution Quality Highest Throughput Best Tool-to-Tool Matching Shortest Time to Solution
Slide 9: Nova's Addressable Market Expansion Within the Fab
Nova’s Addressable Market Expansion Within the Fab Process control needs expand as geometries shrink Wafer In Wafer Out 2011 Opportunity (<45nm) $80-$100M Million Opportunity Implant Litho Etch CVD/EP CMP 2009 Opportunity (<65nm) $30-$40M Million Opportunity Implant Litho Etch CVD/EP CMP Notes: Comp
Slide 10: Unification of the Metrology Market
Unification of the Metrology Market Expecting a further SAM increase of ~$250M for 3D/IC starting 2013* $284M - - Expansion of Nova’s Addressable Market Thin Film Metrology Copper Metrology CD Metrology Source: Gartner, Yole Research and Company Estimates *Numbers reference expected metrology and in
Slide 11: Optical CD - Growing Adoption Rate
Optical CD - Growing Adoption Rate Source: Gartner
Slide 12: Main achievements during 2011
Main achievements during 2011 — Successful launch of Next Gen for Integrated and stand alone metrology: — NovaT600 - selected for 11nm/14nm/20nm at multiple foundries — Nova i500 - selected for 11nm/14nm/20nm/30nm at multiple memory and foundries — New product introduction: — 3D/IC product going thr
Slide 13: Investments focused on growth
Investments focused on growth Track record of aligning R&D spending with opportunities ahead * 2011 Estimated Revs. based on Q4 11 Guidance: Revenues of $16M-$19M and net profitability of 1%-8%.
Slide 14: Industry Review - 2011 and Beyond
Industry Review - 2011 and Beyond
Slide 15: Excellent Exposure to growing markets
Excellent Exposure to growing markets Tablet Semiconductor Content % of Tablet BOM NAND Flash Memory 7% P Mobile DDR DRAM 7% P App Processor 5% P Baseband / RF 4% P Wi-Fi / BT 2% P Power Management 2% P Accelerometer 1% P Memory Controller 1% P Touch Controller 1% P GPS <1% P Touch Screen Driver <1%
Slide 16: Mobile revolution
Mobile revolution Continuation depends on new designs Source: Intel, Sandisk, KPCB
Slide 17: Mixed expectations for WFE in 2012
Mixed expectations for WFE in 2012 WFE 2012 forecast - different baseline and different expectations Source: Barclays Capital, 1/12 Source: Gartner Dec 11 Source: Needham Average expectation: -13%
Slide 18: Nova - partnering for process control
N<OVA partnering for process control
Slide 19: Strategy for taking Nova to the next level
Strategy for taking Nova to the next level — Nova’s strong end market position coupled with excellent technological collaboration with leading OEM’s, offer significant opportunities for further growth: — Short term: — 28nm ramp up at foundries and 20nm at NAND production sites - adding Optical CD co
Slide 20: 3D Technology Driving Nova Application Growth
3D Technology Driving Nova Application Growth The need: Low power high performance 3D Devices 3D IC Integration Single Chip Multi-Chip Packaging with TSV 2012 onwards Planar Transistor 3D Transistor Nova introducing novel TSV metrology solution in time for transition to production Requires significa
Slide 21: Leveraging Nova's Position to expand addressable market
Leveraging Nova’s Position to expand addressable market New Process Steps 3D Interconnect Performance & bandwidth Form Factor & Power Consumption SOC Horizontal Shrink “More Moore” 3D Vertical Integration “More Than Moore” 3D Gates enable: Run almost 50% faster with lower voltage and consume 50% les
Slide 22: 3D IC main process steps
3D IC main process steps — The transition to 3D IC depends on several factors: — Making the process production worthy — Low Cost of manufacturing - no more than $100 cost added per wafer — Standards to enable alignment of chips coming for different manufacturers — As a result: — 3D IC production ram
Slide 23: Financial Model
Financial Model Long-term tax rate - ~15%. * 2011E - based on Q4/11 guidance
Slide 24: Ability to continue growth is well founded
Ability to continue growth is well founded Further Growth Mid cycle behavior Well positioned where money will be spent Turning penetrations into multi-tool accounts Outpacing industry growth rate Expanding Fab footprint Litho Etch CVD/EP CMP Focus on 3D-IC market 450mm New products and features Expa