Veeco Instruments : Q3 2023 Earnings Call Slides

Veeco Instruments

Q3 2023 Financial Results Conference Call - November 6th, 2023

1	Q3 2023 Financial Results Conference Call
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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," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar

expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those

regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation:

global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; the

level of demand for our products; global economic and industry conditions; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; the effects of regional or global health epidemics, including the effects of the COVID- 19 pandemic on the Company's operations and on those of our customers and suppliers; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-

markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our

indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K,10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management's expectations, estimates, projections and assumptions as of the date of this presentation. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this presentation.

2 Q3 2023 Financial Results Conference Call

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CEO Overview

and Business

Update

Bill Miller, Ph.D.

3	Q3 2023 Financial Results Conference Call
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Q3 Financial & Business Highlights

Revenue

Non-GAAP

Operating Income

Diluted

Non-GAAP EPS

$177M

$33M

0.53¢

• Top and bottom-line results above high-end of guidance
• Semiconductor revenue remains elevated
• Sequential growth in Data Storage
• Shipped LSA systems to Tier 1 Logic and Memory customers
• New application wins:
• • LSA in automotive
  • LDD IBD for EUV pellicles
• Further progress with new NSA and IBD products

Robust results driven by Semiconductor strength and sequential growth in Data Storage

		LDD - Low Defect Density	LSA - Laser Spike Annealing
4	Q3 2023 Financial Results Conference Call	IBD - Ion Beam Deposition	NSA - Nanosecond Spike Annealing
EUV - Extreme Ultraviolet
	Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.

Market Update

Semiconductor strength driven by broad demand for LSA systems. LSA adoption for new applications expected to drive future growth.

Compound Semiconductor opportunity driven by demand for epitaxy equipment for power electronics and photonics applications

Data Storage core technologies providing significant value for advanced node semiconductor applications. Expect year-over-year growth in 2023.

Core Technologies

LaserWet

Annealing Ion Beam Processing Lithography

Wet

Epitaxy Processing

Ion Beam

5 Q3 2023 Financial Results Conference Call

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Veeco Technologies for Artificial Intelligence

GPU	High-Bandwidth Memory (HBM) DRAM
Current PTOR	Current PTOR
•	Laser-Spike Annealing (LSA)	•	Laser-Spike Annealing (LSA)
•	IBD for EUV mask blanks	Additional Future Opportunities
Additional Future Opportunities
•	Nanosecond Annealing (NSA)
•	Nanosecond Annealing (NSA)	•	IBD for low resistivity metals

• IBD for low resistivity metals

Illustration of typical AI chip

6 Q3 2023 Financial Results Conference Call

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Advanced Packaging

Current PTOR

• Wet Processing for micro-bump flux clean
• Lithography for Cu bumps

Additional Future Opportunities

• Wet Processing for temporary bond clean

PTOR = Production Tool of Record

TSV = Through Silicon Via

GPU = Graphics Processing Unit

HBM - High-Bandwidth Memory

Nanosecond Annealing Opportunity

	2000	NSA
(°C)		(nanosecond)
	LSA
Temperature
1000	(sub millisecond)	Lamp based
			(sub second)

100

Time

• Shipped 1st NSA500TM eval system to Tier 1 logic customer

• Solidifies Veeco's leadership in advanced laser annealing

technology and helps drive the Semi industry roadmap

• Opportunity to expand SAM in Logic and Memory

• Low thermal budget steps like Backside Power Delivery

and Contact Anneal for advanced nodes

• Material Modification steps like void removal,

recrystallization and grain growth

Heating Depth

Very

shallow

Heats full

wafer

Illustration of Wafer Cross Section

NSA		Lamp based
LSA
10nm-100nm	Full wafer
	~100 μm

• Planning 2nd eval shipment to Tier 1 customer in Q4 & initial

HVM orders in late 2024 or 2025

Enabling technology with strong customer pull

		SAM - Served Available Market
7	Q3 2023 Financial Results Conference Call	HVM - High Volume Manufacturing
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Ion Beam Deposition- Advanced Node Semi Opportunity

Illustration of grain size and distribution

PVD

IBD

Non-uniform, randomly	Uniformly oriented large
oriented grains of small	grains = lowest resistivity
size

• Leveraging decades of experience and core IBD technology in Semiconductor market
• Innovative technology addresses gaps with traditional technologies
• Lower resistance metals essential for device speed and performance
• Promising Tier 1 customer data displaying significant advantages vs PVD
• On track to ship two evaluations to Tier 1 customers

Adapting IBD technology for advanced node wafer level semiconductor applications

8	Q3 2023 Financial Results Conference Call	PVD - Physical Vapor Deposition
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CFO Financial Review

John Kiernan

9 Q3 2023 Financial Results Conference Call

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Q3 2023 Revenue by Market & Region

Revenue by Market

Revenue by Region

Data Storage

19%

APAC

Semiconductor		Compound
56% $177M
14%	Semiconductor
	11%
	Scientific &
	Other
	Revenue Trend ($M)	Q3 22	Q2 23	Q3 23
	Semiconductor	100	106	98
	Compound Semi	28	24	26
	Data Storage	28	14	34
	Scientific & Other	16	17	20
	Total		172	162	177

United States	29%
33%

EMEA China

15% 23%

ROW is negligible

10	Q3 2023 Financial Results Conference Call
	Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.	Amounts may not calculate precisely due to rounding.