Onto Innovation Inc. · NYSE:ONTO
Onto Innovation — Nanometrics — Merger or Acquisition (February 2006)
41 slides from Onto Innovation's merger presentation, Feb 21, 2006
Slide 1: Investor Presentation February 2006
Investor Presentation February 2006
Slide 2: Who is Nanometrics?
Who is Nanometrics? A leading provider of integrated and stand-alone metrology and process control technology to the global semiconductor manufacturing industry Who is Nanometrics?
Slide 3: What's Driving the Semiconductor Industry Today?
What’s Driving the Semiconductor Industry Today? What’s Driving the Semiconductor Industry Today? • • Consumer electronics surpassing PCs Consumer electronics surpassing PCs • • Accelerated development timeline Accelerated development timeline • • New chips require 300mm processing New chips require
Slide 4: Semiconductor Manufacturing in the 300mm Era
Semiconductor Manufacturing in the 300mm Era Semiconductor Manufacturing in the 300mm Era As market windows are collapsing… Manufacturing is increasingly expensive, more automated… …taking people out of the cleanroom altogether.
Slide 5: Increasing Importance of Process Control
Increasing Importance of Process Control Increasing Importance of Process Control Growing Share of Semiconductor Capital Spending Growing Share of Semiconductor Capital Spending Source: Dataquest
Slide 6: i ugk
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Slide 8: Larger Wafers Require More Metrology
Larger Wafers Require More Metrology Larger Wafers Require More Metrology - - More mask layers More mask layers - - More process steps More process steps - - More single-wafer processes More single-wafer processes - - More importance placed on each wafer ($$) More importance placed on each wafer ($$
Slide 9: Trends Driving Integrated Metrology
Trends Driving Integrated Metrology Trends Driving Integrated Metrology • • Accelerating ramp to production Accelerating ramp to production – Speed up the learning cycle • • Improved production economics Improved production economics – Throughput – Footprint – Transport • • Every wafer is valuable E
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Slide 13: Nanometrics Today
Nanometrics Today USA 34% Japan 26% Korea 25% Taiwan 11% Other 4% Integrated 38% Stand- Alone 56% Other 6% Nanometrics Today • • 30 years in the business 30 years in the business • • Leading provider of transparent thin film metrology Leading provider of transparent thin film metrology • • Market fl
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Slide 18: Constant Innovation, Expanding Product Line
Constant Innovation, Expanding Product Line Constant Innovation, Expanding Product Line 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 Metro
Slide 19: Who is Accent Optical?
Who is Accent Optical? Who is Accent Optical? • • Metrology company offering several technologies: Metrology company offering several technologies: – Overlay metrology – Thin film metrology (film characterization, wafer mapping) – Optical CD – Defect detection • • Serving diverse markets: Serving di
Slide 20: Accent Acquisition Expected to Strengthen Position
Accent Acquisition Expected to Strengthen Position Accent Acquisition Expected to Strengthen Position • • Huge customer cross-selling opportunities Huge customer cross-selling opportunities • • Stronger player with greater scale Stronger player with greater scale • • Complementary technologies Compl
Slide 21: Market Size in $millions
Market Size in $millions ONAND metnes
Slide 22: ONAN cS
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Slide 24: Expanding Presence in Key Markets
Expanding Presence in Key Markets Expanding Presence in Key Markets Non-Metal TF Integrated OCD/Profile Overlay Macro Defect Mask Tied for #2 with TWAV KLA #1, Rudolph #4, Accent #5 Leading Market Share Nova #2 KLA, TEL and Rudolph <$10M NANO a newer entrant; only one with integrated KLA and TWAV ha
Slide 25: ONAND metncs
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Slide 26: TOSHIBA
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Slide 27: TOSHIBA
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Slide 29: Positioned with Customers at the Forefront of 300mm
Positioned with Customers at the Forefront of 300mm Accent Top Customers Accent Top Customers Nanometrics Top Customers Nanometrics Top Customers Positioned with Customers at the Forefront of 300mm - Other major - Other major
Slide 30: Nanometrics' Growth Opportunities
Nanometrics’ Growth Opportunities Nanometrics’ Growth Opportunities • • Increase in semiconductor capital spending Increase in semiconductor capital spending • • Greater importance of process control as % of CapEx Greater importance of process control as % of CapEx • • Growing market for NAND/Flash
Slide 31: Financial Overview
Financial Overview Financial Overview Financial Overview
Slide 32: Creating Operating Leverage
Creating Operating Leverage Creating Operating Leverage • • Streamlined business in 2005 Streamlined business in 2005 – Focus on semiconductors; sold FPD business • • Upgraded financial team Upgraded financial team – CFO, Chief Accounting Officer and Corporate Controller – Increased controls, better
Slide 33: Scaling the Business
Scaling the Business $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Quarterly Revenues Annualized Scaling the Business 2002 2003 2004 2005
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Slide 35: Fourth Quarter 2005 Financials
Fourth Quarter 2005 Financials Fourth Quarter 2005 Financials Revenue $ 14.2 M Gross Margin 46% Operating Expenses $ 9.1 M Operating Loss ($ 2.5 M) Net Loss ($ 2.1 M) EPS ($ 0.16) Cash and Short-Term Investments $ 45.4 M Total Debt $ 3.0 M
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Slide 37: Significant Operating Leverage in the Model
Significant Operating Leverage in the Model Significant Operating Leverage in the Model Recent Results Target Model * Product Gross Margin 52% 60% Service Gross Margin (12%) 20% Blended Gross Margin 43% 55% SG&A 32% 21% R&D 18% 14% Operating Margin (7%) 20% Re-organize Engineering Leverage Service G
Slide 38: Conclusion: Nanometrics is in a Strong Position
Conclusion: Nanometrics is in a Strong Position Conclusion: Nanometrics is in a Strong Position • • Right market segment Right market segment • • Well positioned with customers that are spending Well positioned with customers that are spending money on 300mm money on 300mm • • Right complement of pr
Slide 39: Additional Information and Where to Find It
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 date
Slide 40: Additional Information and Where to Find It
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 th
Slide 41: Forward Looking Statements
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 opera