Investors PresentationAugust 2018

2

Forward Looking Statements

Cautionary Statement Regarding

3

KEYFactsLeading

Metrology

Innovator for

Advanced

Process Insight

DUAL-LISTED

EMPLOYEES

GLOBAL PRESENCE

TECHNOLOGIES

METROLOGY

R&D SITES

PROFITABLE GROWTH

NASDAQ / TASE

650

World wide offices

Optical & X-Ray

Dimensions & Materials

USA & Israel

Revenue Growth5Y CAGR – 18%

Operating Income Growth5Y CAGR – 37%

Cash Reserves$169M

* Non-GAAP Financials

4

Success Tied to

Customers’ partnershipDiversified Portfolio

Disruptive technologies Solid financial model

X-ray & Optical

Dimensions & Materials

Coupling SW & HW

Emerging Metrology

Operational efficiency

Growth by investment

Development to Manufacturing

Joint development programs

Revenue

Operatingexpenses

Operatingincome

$112

$149

$222

2013 2015 2017

$45

$59

$69

2013 2015 2017

$14

$22

$63

2013 2015 2017

In Million $

In Million $

In Million $

* Non-GAAP Financials

Q1

$54

Q1

$63

Q2

$56

Q2

$62

Q3

$54

Q3

$61

Q4

$57

$121

$149

$164

$221

2014 2015 2016 2017 2018

5

Track Record

18% CAGR 5 Years

H1 2018 Highlights

Revenue Growth

+13% YoY

Elevated R&D Investment

Operating Income - 27%

Revenue Diversification:

Memory China

2017: 35% 2017: 20%

50% 40%

In Million $

*NON GAAP FINANCIAL

* Non-GAAP Financials

6

Innovative

Optical / X-Ray Semiconductor Segments

Dimensions / MaterialsParameters

10umPad

5nmPitch

0.5ÅPrecision

300mmWafer

7

Unique Complementary

SoftwarePhysical &Mathematical Models

Fleet Data Management

Hybrid Ecosystem

DimensionalIntegrated & Standalone

Critical Dimensions

Film Thickness

MaterialsStand Alone

Materials Properties

ServicesInstall Base

Features and Upgrades

8

InterlacingHW & SWsolutions

CMP

Deposition ETCH

Lithography

FLEET MANAGEMENT

Hybrid

Eco System

Physical Models

NOVA MARSComplementary Models

NOVA Fit

Inline

Monitor

Retrain

9

DigitalSemi Market

CAPEX

2000 2010 2020 2025Internet Mobile Internet Connected World Data Economy

Connectivity Mobility Productivity Veracity

2017

60B GB 40% Human

10

Multi Catalysts for Semiconductors Demand

SmartCities

25%CAGR

SmartSensors

30%CAGR

AI

50%CAGR

Cryptonomy

30%CAGR

SmartIndustry

1 PBPer day

AutonomousVehicle

4 TBPer Car

Per Day

AR / VR

70%CAGR

11

GROWING Demand for Data Management & Computing Power

Data Management

Network Infrastructure

Beyond Capacity

Connected Sensors

SemiGrowth

Smart Sensors

Smart Industry

Smart City

Automotive

AIAR / VR

5GCloud

Cryptonomy Smartphones

Wearables RobotsContinuous demand for improvementPerformance Density Scaling Cost

Mobile Devices

12

Technology INFLECTION Points

CostEconomics

Performance

Scaling

Efficiency

MaterialsEngineering

Complex 3D structures

Scaled Devices

Metrology Growth Drivers

Density

13

Growth Beyond DemandM

etr

olo

gy In

ten

sity

Complexity

Planar FinFet Nano-Wires

Planar NAND VNAND Gen-1 VNAND Gen-x

DRAM Gen-1 DRAM Gen-X DRAM Gen-Y

METROLOGY INTENSITY

Scaled Devices

Complex Structures

3D Profiles

Materials Properties

Multiple Parameters

14

FromNova200 to

300Reaching revenues

of $300M organically

ShareGains

TAM Expansion

Disruptive Innovation

Intensity growth

Dimensional

Metrology

Services M&AMaterials

Metrology

$300M

$200M

$100M

Inorganic

Process Control > $50M

Organic

$300M

2012 2017 Target$25MNew Technology

15

Customers

Segments

Mix nodes

Technology

Geography

Growing Market Share in Growing TAM

Diversification

Why do we CONTINUE GROWING?

16

Diversification -Customer Mix

Target Model

5 Large Customers

Additional Memory

Customers

IDM Penetration

Others

36%

GLOBAL

FOUNDRIES

25%

TSMC

39%

2014

Foundry Exposure2 major customers

Others

26%

Samsung

27%

Hynix

10%

GLOBAL

FOUNDRIES

14% TSMC

23%

2017

Memory Growth4 major customers

17

Diversification -

2014 2017

Segment Mix

Memory versus foundry / Logic

Target Model

Segments Balance

Memory Growth

Foundry leadership

18

Diversification -

Target Model

Balanced Territory mix - Taiwan, Korea, China

3 Large Territories

Regional Mix

Others

14%

USA

24%

Korea

11%

Taiwan

47%

China

4%

2014

TaiwanExposure

Others

5%

USA

15%

Korea

30%Taiwan

29%

China

21%

2017

DiversifiedTerritory Mix

19

ExposureChina Contribution

(In Million $)

% of total revenue

2014 2017 $300M

(Model)

2014 2017 $300M

(Model)

Accelerating Growth

Tool of Record Position

Dimensional and Materials Metrology

Logic and Memory

Domestic and global customers

20

Diversification -

84%

232%

Revenues Operating

Income

$70

$150

2011-2013 2014-2016

R&D Investmentand Acquisition

(in Million $)

2014-2017Growth

From single tool to Fleet approach -infrastructure

Invest in Sustainingand Disruptiveinnovation

Compete with unique Coupled HW & SW solutions

lead the Emerging Metrology markets

X-RAY OPTICAL CONVERSION

ADVANCED DATA ANALYTICS

LAB TO FAB TECHNOLOGY

METROLOGY ECOSYSTEM

MATERIALS ENGINEERING

Advanced Nodes - 62%

Nova Performance by Tech-Node$M

2014 2017

71

114

27

51

MIX nodesTrailing & Advanced

Diversification –

21

22

Share in Growing Markets

Unique Value

Displacing OtherMetrology

Emerging Applications

Disruptive Innovation

Addressable Market(In Million $)

Market Share

Expanding TAM Gaining Market Share

$1,200

2014 2017 $300M

model

25%

2014 2017 $300M

model

>

23

Resilient Model

2014 2016 2017

Revenue($M)

* Non-GAAP Financials

Operating Profit($M)

Earnings PerShare ($)

2014 2016 2017 2014 2016 2017

24

Financial

2017

Achieved 2X the Peer Group Growth Rate

Grew Operating Income at 3X Revenue

Delivered >76% EPS Growth Year Over Year

Generated >$55M Free Cash Flow(25% of revenue)

* Non-GAAP Financials ** Peer Group: KLAC; NANO; Other Metrology

2017 YoY Growth Rate

Peer Group Nova Revenue Nova Op Inc

25

Historical Outperformance

5 Years CAGR (2012-2017)

* Non-GAAP Financials ** Peer Group: KLAC; NANO; Other Metrology

2012 - 2017

Achieved >3X

Process Control

CAGR

Grew operating

income at >2X

Revenue CAGR

Delivered 30%

Non-GAAP EPS

CAGR

Generated >$120M

in Operating

Cash Flow

Process Control Nova Revenue Nova Op Inc

26

& Operating Margins

2014 2017

Gross Margin (%) Operating Margin(%)

Nova300 Model Nova300 Model

2014 2017

* Non-GAAP Financials

27

Investment

R&D Investment plans: M&A plans:

25% invested in new technologies

Increased TAM of $200M by 2020

Multiple Betas: EO2018/BO2019

Revenue contribution - 2019

Distinct market segments:

Criteria’s:

Nova’s multiples

Immediate accretion(6-12 months)

Targeting >$50M revenuecontribution by 2020

Synergies

2018-2020 Investments ~$250M(plan)

R&D Investment and Acquisitions

From 2 main technologies to >4 main technologies

28

Solid Track RecordRevenue Growth $M

Revenue Doubled

Every 5 Years

Expanded technology

base driving TAM increase

Diversified revenue

stream driving wider

market exposure

Solid operational model

$20

$58

$96

$222

2002 2007 2012 2017