Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Oppenheimer 27th Annual Technology, Internet & Communications Conference 2024
17 slides from Veeco Instruments's conference presentation, August 2024
Slide 1: Oppenheimer 27th Annual Tech, Internet & Communications Conference
Oppenheimer 27th Annual Tech, Internet & Communications Conference August 2024 1 Oppenheimer 27th Annual Tech, Internet & Communications Conference Presentation Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,
Slide 3: Contents
Contents Overview Veeco at a Glance Who is Veeco? Served Available Market (SAM) Semiconductor SAM Nanosecond Annealing Ion Beam Deposition Artificial Intelligence Compound Semiconductor SAM Financials Revenue By End Market Historical Financials Executing Today & Well-Positioned for Long-Term Growth
Slide 4: Veeco at a Glance
Veeco at a Glance Employees Global provider of Solving customers high value semiconductor capital ~1,200 materials challenges equipment ~1200 2024 Revenue $710M* Differentiated technologies with Financial strength and flexibility opportunities to expand served available markets 4 Oppenheimer 27th An
Slide 5: Who is Veeco?
Who is Veeco? Strong History Semiconductor Solving materials challenges Compound Semiconductor 2019- Today Data Storage 2010 - Today Differentiated Laser 1990’s - Today MOCVD Technology Fabricated Annealing & Ion Beam Growth Focus Deposition technologies Ion Beam Technologies for 70%+ of LED’s globa
Slide 6: Served Available Market
Served Available Market Total Veeco SAM Veeco’s Served Available Market to grow to ~$4.3B ~4.3B Projected CAGR ~15% Semiconductor opportunity expected to ~$2.4B grow to ~$2.0B driven by Laser Spike Annealing, Nanosecond Annealing and Ion Beam Deposition equipment Compound Semiconductor opportunity 2
Slide 7: Semiconductor SAM Growth – Driven By Evaluation Program
Semiconductor SAM Growth – Driven By Evaluation Program Total SAM Key Drivers 2024 2028 ~$2.0B Laser Spike • PTOR at 3 Tier 1 logic and 1 HBM DRAM customer Projected ~20% CAGR Annealing • Targeting evaluation agreement in late 2024 & early ~$600M ~$750M (LSA) 2025 evaluation shipment to 2nd HBM cust
Slide 8: Nanosecond Annealing Opportunity
Nanosecond Annealing Opportunity 2000 NSA Future (nanosecond) Traditional • Scaling challenges driving the need for new annealing capabilities Temperature (°C) LSA Lamp Based 1000 (sub millisecond) (sub second) • NSA broadening Laser Annealing adoption to new leading edge Logic and Memory applicatio
Slide 9: IBD300– 300mm Front End Semi Opportunity
IBD300– 300mm Front End Semi Opportunity Illustration of grain size and distribution TODAY FUTURE Incumbent Technology IBD • Industry leader in Ion Beam Technology • Lower resistance metals essential for improved device performance & customer scaling • IBD achieving superior thin film properties vs
Slide 10: Veeco Technologies for Artificial Intelligence
Veeco Technologies for Artificial Intelligence GPU High-Bandwidth Memory (HBM) DRAM Advanced Packaging Current PTOR Current PTOR Current PTOR • Laser-Spike Annealing (LSA) • Laser-Spike Annealing (LSA) • Wet Processing for micro-bump flux • IBD for EUV mask blanks • IBD for EUV mask blanks clean Add
Slide 11: Compound Semiconductor SAM Growth
Compound Semiconductor SAM Growth Total SAM Key Drivers 2024 2028 ~$1.8B • Single wafer SiC CVD for 8 inch addresses high Projected ~15% CAGR SiC Power voltage and power applications such as EVs ~$350M ~$650M Electronics • Targeting evaluation agreements by end of ~$1.0B 2024 MicroLED • Single wafer
Slide 12: Financials
Financials 12 Oppenheimer 27th Annual Tech, Internet & Communications Conference Presentation Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 13: Revenue by End-Market
Revenue by End-Market $690M-$730M $646M $666M $583M $454M 2020 2021 2022 2023 2024 Semiconductor Compound Semiconductor Data Storage Scientific & Other Semiconductor CAGR of ~30% drives increase from 37% of total 2020 revenue to >60% in 2024 13 Oppenheimer 27th Annual Tech, Internet & Communications
Slide 14: Historical Financials & 2024 Outlook (Non-GAAP)
Historical Financials & 2024 Outlook (Non-GAAP) Revenue ($m) Gross Margin (%) ~800 ~690-730 ~45% 646 666 43% 44% ~43-44% 583 42% 42% 454 2020 2021 2022 2023 2024 Target 2020 2021 2022 2023 2024 Target Model Model Operating Income (%) Diluted EPS ($) ~20% 16% ~16-17% 1.69 ~1.65-1.85 15% 15% 1.57 1.43
Slide 15: Executing Today & Well-Positioned for Long Term Growth
Executing Today & Well-Positioned for Long Term Growth Today Future Semiconductor business on track to outperform WFE Semiconductor market well positioned to outperform growth for 4th consecutive year WFE growth, driven by existing and new products (LSA for memory, NSA, IBD300) Laser Spike Ann
Slide 16: Q&A
Q&A 16 Oppenheimer 27th Annual Tech, Internet & Communications Conference Presentation Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 17: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation $ millions 2023 2022 2021 2020 In millions, except per share amounts 2023 2022 2021 2020 Net sales $666.4 $646.1 $583.3 $454.2 GAAP Basic weighted average shares 53.8 49.9 49.1 48.4 GAAP gross profit 285.1 263.1 242.3 194.3 GAAP Diluted weight