Investors PresentationAugust 2020

2

Forward Looking StatementsCautionary Statement Regarding

his presentation includes statements that constitute forward-lookingstatements within the meaning of safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995 relating to future events or our

future performance, such as statements regarding, but are not limited to,anticipated growth opportunities and projections about our business and itsfuture revenues, expenses and profitability. Forward-looking statementsinvolve known and unknown risks, uncertainties and other factors that maycause our actual results, levels of activity, performance or achievements to bematerially different from any future results, levels of activity, performance orachievements expressed or implied in those forward- looking statements. Youshould not place undue reliance on forward-looking statements since theyinvolve known and unknown risks, uncertainties and other factors which are insome cases beyond our control. Factors that may affect our results,performance, circumstances or achievements include, but are not limited tothe following: our dependency on three product lines; our dependency on asmall number of large customers and small number of suppliers; the highlycyclical and competitive nature of the markets we target and we operate in;our inability to reduce spending during a slowdown in the semiconductorindustry; our ability to respond effectively on a timely basis to rapidtechnological changes;; our dependency on PEMs; risks related to exclusivityobligations and non-limited liability that may be included in our commercialagreements and arrangements; our ability to retain our competitive positiondespite the ongoing consolidation in our industry; risks related to ourdependence on our manufacturing facilities; risks related to changes in ourorder backlog; risks related to efforts to complete and integrate current and/orfuture acquisitions; risks related to the worldwide financial instabilities; risksrelated to our intellectual property; new product offerings from ourcompetitors; unanticipated manufacturing or supply problems; risks related to

government programs we participate in; risks related to taxation; changes incustomer demand for our products; risks related to currency fluctuations; risksrelated to technology security threats and changes in privacy laws; risksrelated to acquisitions we may pursue and risks related to our operations inIsrael. We cannot guarantee future results, levels of activity, performance orachievements. The matters discussed in this presentation also involve risksand uncertainties summarized under the heading “Risk Factors” in Nova’smost recent Annual Report on Form 20-F for the year ended December 31,2018 filed with the Securities and Exchange Commission on February 28,2019. These factors are updated from time to time through the filing ofreports and registration statements with the Securities and ExchangeCommission. Any forward-looking statements contained in this presentationare made as of the presentation date and Nova Measuring Instruments Ltd. isunder no obligation to revise or update these forward-looking statements.This following presentation includes financial measures that are not calculatedin accordance with generally accepted accounting principles (GAAP). Thepresentation of this non-GAAP financial information is not intended to beconsidered in isolation or as a substitute for the financial information preparedand presented in accordance with GAAP. Nova's earning release, including apresentation of the most directly comparable financial measures calculatedand presented in accordance with GAAP and a reconciliation of each GAAP tonon-GAAP financial measure discussed in the presentation is available at theInvestors section of the company’s website.Certain of the information contained herein concerning economic trends andperformance is based upon or derived from information provided by thirdparty consultants and other industry sources. We have not independentlyverified and cannot assure the accuracy of any data obtained by or from thesesources.

KEYFactsLeading

Metrology

Innovator for

Advanced

Process Insight

DUAL-LISTED

EMPLOYEES

GLOBAL PRESENCE

TECHNOLOGIES

METROLOGY

R&D SITES

PROFITABLE GROWTH

NASDAQ / TASE

700

World wide offices

Optical & X-Ray

Dimensions & Materials

USA & Israel

Revenue Growth5Y CAGR – 13%

Operating Income Growth5Y CAGR – 19%

Cash Reserves~$220M

*Non-GAAP Financials ** CAGR 2014-2019

3

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

$164

$225

2013 2016 2019

$45

$60

$77

2013 2016 2019

$14

$30

$46

2013 2016 2019

In Million $

In Million $

In Million $

• Non-GAAP Financials4

Innovative

Optical / X-Ray Semiconductor Segments

Dimensions / MaterialsParameters

10umPad

5nmPitch

0.5ÅPrecision

300mmWafer

5

Unique Complementary

SoftwarePhysical &Mathematical Models

Fleet Management

Hybrid Ecosystem

DimensionalIntegrated & Standalone

Optical CD

Film Thickness

MaterialsStandalone

Materials Metrology

ServicesInstall Base

Features and Upgrades

6

InterlacingHW & SWsolutions

CMP

Deposition ETCH

Lithography

FLEET MANAGEMENT

Hybrid Metrology

Physical Models

NOVA MARSComplementary Models

NOVA Fit

Inline

Monitor

Train & Retrain

Open Eco System

7

DigitalSemi Market

Wafer Capacity

2000 2010 2020 2025Internet Mobile Internet Connected World Data Economy

Connectivity Mobility Productivity Veracity

2017

60B GB 40% Human

8

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

9

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

10

Requirement Variety

Density

Scaling

storage (capacity)

Energy efficiency

Access speed

Powerful processing (speed)

10,000

100

1

0,01

0,0001

1,000

100

1

0,01

0,000

0,0001 0,01 1 100 10,000

PO

WER

(W

att

)

DA

TA S

TOR

AG

E (G

iga

by

te)

DATA RATE (Giga operations/sec)

HIGH PERFORMANCE

MOBILITY

IoT SENSORS

11

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

3D Profiles

Multiple Parameters

Thinner Films

12

Thickness

Composition

Stress

Strain

Doping

Chemical State

METROLOGY INTENSITY

Enables Scaling

13

48 Elements

13 Elements

Reduce Leakage

Increase Performance

Increase Efficiency

26 Elements

Enabled by Materials

Future NVM

MRAM

Xpoint

RRAM

FeRAM

BEYOND TRADITIONAL DIMENSIONAL SCALING14

Growth From Phase to Phase

New Applications With Every Phase

96L TLCChannel FilmsHAR etch control

Tod

ay

Futu

re

128L QLCNanolaminate channel filmsNew Hard Mask materials

V32 V48 V64 V96M

easu

rem

en

t Ste

ps

3D NAND Applications

Future Designs

Gate All Around

3D Transistors

CFETS

Enabled by Materials

BEYOND TRADITIONAL DIMENSIONAL SCALING15

Tod

ay

Futu

re

Measu

rem

en

t Ste

ps

Logic Applications

Growth With Every Node

Higher Sampling of Critical Layers

FinFETsMulti-VtDrive CurrentLeakage

NanowiresMore processing stepsMore materials

Future Designs

Enabled by Materials

BEYOND TRADITIONAL DIMENSIONAL SCALING16

Tod

ay

Futu

re

2018 2019 2020 2021 2022

Measu

rem

en

t Ste

ps

DRAM Applications

Stable Amount of Measurement Steps

Yield Demands Increases Sampling Rates

1X DRAMBWL Leakage Capacitor Dielectric ALD layers

1Y DRAMHigher aspect ratios New metallization

OXRAM

CBRAM

STT

300Reaching revenues

of $300M organically

ShareGains

TAM Expansion

Disruptive Innovation

M&A

Dimensional

Metrology

Services M&AMaterials

Metrology

$300M

$200M

$100M

Inorganic

Process Control > $50M

Organic

$300M

2012 2017 Target

17

Customers

Segments

Mix Nodes

Technology

Geography

Increasing Market Share while Expanding TAM

Diversification

Why do we CONTINUE GROWING?

18

Diversification -

2014 2019

Segment Mix

Memory versus foundry / Logic

Target Model

Segments Balance

Memory Growth

Foundry leadership

• Non-GAAP Financials

19

Diversification -

Target Model

Balanced Territoryexposure

3 Large Territories

Expansion in Korea

Strong position in China

Regional Mix

Taiwan

45%

USA

25%

Korea

10%

Other

20%

2014

TaiwanExposure

Korea

25%

Taiwan

35% China

20%

Other

20%

2019Diversified

Territory Mix

20

Diversification -

$30

$38

$49

2013 2016 2019

R&D Gross Investment (in Million)

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 CONVOLUTION

ADVANCED SW CAPABILITIES

LAB TO FAB TECHNOLOGIES

METROLOGY ECOSYSTEM

MATERIALS ENGINEERING

21

• Non-GAAP Financials

Growing Addressable Markets

Unique Value

Differentiated portfolio

Solid performance in all major territories

Wide exposure across device segments

New innovative technologies

4 new dimensions and materials metrology products

22Expanding TAM (In Million $)

$1,200

2014 2019 $300M model

5 Years CAGR (2014-2019)

• Non-GAAP Financials

5 Years Growth

Achieved 2X CAGR

over Process Control

Growing operating

income

~$170M in Operating

Cash Flow

Process Control Nova Revenue Nova Op Inc

23

$58

$87

$112

$164

$222

2007 2010 2013 2016 2019

Solid Track RecordRevenue Growth $M

Revenue Doubled

Every 6 Years

Expanded technology

base driving TAM increase

Diversified revenue

stream driving wider

market exposure

Solid operational model to

support investment

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