Onto Innovation Inc. · NYSE:ONTO
Onto Innovation — Investor Presentation (August 2022)
19 slides from Onto Innovation's investor presentation, August 2022
Slide 1: Onto Innovation Investor Presentation
Onto Innovation Investor Presentation AUGUST 2022
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 Snapshot
Onto Innovation Snapshot Top WFE Strategic Supplier Tier1 High tech capital equipment company specializing in optical process solutions for semiconductor and related markets Annual Revenue Growth (‘20-’22) $556M to $1.006B3 NOVEMBER 2019: RTEC-NANO MERGER Q1 2020 Gross Margin2 Q2 2022 Gross Margin2
Slide 4: Revenue Distribution Across the Value Chain
Revenue Distribution Across the Value Chain SOFTWARE AND SERVICE CUSTOMERS ADVANCED NODES SPECIALTY & ADVANCED PACKAGING CUSTOMERS Balanced H1 2022 CUSTOMERS Revenue Distribution Wafer Bare Wafer Specialty Devices & across the Fabrication Manufacturing Advanced Packaging Semiconductor Value Chain 17
Slide 5: New SAM Contributes to Market Outperformance
New SAM Contributes to Market Outperformance New products open new growth markets for Onto Innovation Panel Packaging Common Films $650M2 SAM Specialty1 >$100M Expansion REVENUE PROJECTED FROM NEW SAM IN 2022 2021 2022 Note 1: Specialty includes CMOS Image Sensors + overlay for compound semiconducto
Slide 6: Semiconductor Market Transitioning From Cyclical to Growth
Semiconductor Market Transitioning From Cyclical to Growth DRIVEN BY MULTIPLE Broadening SECULAR GROWTH DRIVERS Demand $100 Improving Manufacturing Efficiency Cloud AI Computing Transition 300MM, $80 Industry consolidation, WFE $ (Billions) Rise of foundry $60 ALL GROWING >25% CAGR $40 $20 Virtual R
Slide 7: Innovation Across the Value Chain for Semiconductors
Onto Innovation Across the Value Chain for Semiconductors More complex devices generate more data, monetized in the cloud, creating demand for more devices…. Image Sensors, Power, New 5G Packaging Compute & 2.5D Memory 3D Data More Complex Data Center Data Generation Devices Monetization 7
Slide 8: Growth Driver: High Performance Logic Devices
Onto Growth Driver: High Performance Logic Devices ONTO QUALIFIED OR COLLABORATING GROWING DEMAND INCREASE IN PROCESS CONTROL AT ALL GAA CUSTOMERS Advanced Logic Wafer Starts Optical Metrology Sampling Rates Measuring additional features requires more unique signals ONTO PATENTED SE TECHNOLOGY NO. O
Slide 9: Growth Driver: Panel / Substrate Packaging
Onto Growth Driver: Panel / Substrate Packaging High performance compute, intelligent edge, AI, mobility Comprehensive Solutions PANEL MARKET GROWTH STEPFAST– PROPRIETARY SURGING DEMAND FOR ONTO Lithography Inspection - Control SOLUTION FOR PANELS SOLUTIONS $100 18,000 FIREFLY® INSPECTION DISCOVER®
Slide 10: New JetStep X500 Adds Process Tool to Onto Portfolio
New JetStep X500 Adds Process Tool to Onto Portfolio Tool Margin with Connected Solution and Support Contracts Result: Above Corporate Average GM% TOOL & PANEL SOLUTION GROSS MARGIN IMPROVEMENTS Support1 CORPORATE AVERAGE GM% IN LTOM Firefly Above Corporate GM% Inspection + Software GROSS MARGIN % L
Slide 11: Growth Driver: Advanced Packaging (Wafer Drivers)
Onto Growth Driver: Advanced Packaging (Wafer Drivers) High Performance Compute, Intelligent Edge, AI, Mobility INTERCONNECTS SHRINK IN SIZE SCALING DRIVEN BY IDM ADVANCED PACKAGING AND INCREASE IN DENSITY >200M TOP 5 IDMS INSPECTION MARKET SHARE BUMPS PER WAFER 250 20 AP Technology Scaling 18 200 1
Slide 12: Growth Driver: Memory
Onto Growth Driver: Memory UNIQUE HYBRID DRAM Evolution METROLOGY SUITE Roadmap COMPLEX GEOMETRIES MEASURED WITH HIGHER ACCURACY 50 Add text labels 40 >5X Residual films 30 accuracy 20 10 HORIZONTAL VERTICAL 3D STACKING TRANSISTOR TRANSISTOR TRANSISTORS 0 Baseline Orbit Hybrid Metrology NAND Evoluti
Slide 13: Growth Driver: Compound Semiconductor
Onto Growth Driver: Compound Semiconductor GROWING DEMAND ONTO REVENUE GROWTH IN COMPREHENSIVE SOLUTION TO COMPOUND SEMICONDUCTORS HIGHER YIELD, FASTER RAMP SUBSTRATE Security $100M QUALITY SUBSTRATE QUALITY INCREASE ONTO REVENUE 2021-2026 Robotics DISCOVER® 19% CAGR YIELD FAB PROCESS MANAGEMENT CON
Slide 14: Revenue Growth History and Expectation
Revenue Growth History and Expectation 10 Quarters of History as Onto Innovation with Strong 2022 Outlook QUARTERLY REVENUE + 2H 2022 CONSENSUS 83% $260 QUARTERLY GROWTH First 10 Quarters of ONTO $240 P&L $220 (From $139.9M to $256.3M) $200 28% $ MILLIONS $180 FY22 OVER FY21 $160 EXPECTED FY22 Analy
Slide 15: Long-term Operating Model
Organic Growth Resulting from Share Gains & Potential to Enter New Addressable Markets Annual Revenue $1B Model $1.2B Model $1.4B Model Gross Margin 56% - 57% 57% - 58% 58% - 59% Operating Profit 31% - 32% 33% - 34% 35% - 36% Earnings per Share $5.20 - $5.35 $6.08 - $7.00 $8.10 - $8.35 Long-term Ope
Slide 16: Why Invest in Onto Innovation?
Why Invest in Onto Innovation? TEAM Culture of innovation and collaboration TECHNOLOGY Outperforming in multiple high growth segments FINANCIAL Long term financial model with >$8 per share earnings power PERFORMANCE BALANCE SHEET >$540M cash, no debt, provides fuel for strategic M&A 16
Slide 17: Thank You
Thank You Onto Higher Yields 谢谢 | 謝謝 ありがとう Obrigado Onto Higher Margins Onto 감사합니다 DankeHigher Productivity Merci Onto Innovation [email protected] www.ontoinnovation.com
Slide 18: Appendix
Appendix innovatione Onto
Slide 19: Onto Innovation's Major Products
Onto Innovation’s Major Products Atlas® V Element™ JetStep® Standalone thin film and FTIR metrology Litho for Advanced Packaging and FPD OCD metrology Aspect® AWX™ FSI Discover® Software OCD metrology for 3D NAND and Unpatterned frontside inspection Inline yield and defect management high aspect rat
Onto Innovation — Investor Presentation (August 2022) on 6ix