Slide 1: May 2025 Investor Presentation
May 2025 Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and some of our comments during this presentation may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions and contain
Slide 3: Corporate Overview
Corporate Overview
Slide 4: Photronics Overview
Photronics Overview (Nasdaq: PLAB) All data reflects TTM figures unless otherwise noted | IC: Integrated Circuit | FPD: Flat Panel Display Revenue By Product Group Revenue By Region Unmatched Global Footprint 11 STRATEGICALLY LOCATED MANUFACTURING FACILITIES IC FPD IC & FPD $857M $216M $253M $1.24B
Slide 5: Photomasks: Critical Enabler for IC and FPD Manufacturing
Photomasks: Critical Enabler for IC and FPD Manufacturing Photomasks carry design information into an exposure system where light transfers the pattern to the wafer Integrated Circuit (IC) photomasks are used to transfer circuit patterns onto semiconductor wafers during the fabrication of integrated
Slide 6: Historical Phases of Photronics Revenue Growth
Historical Phases of Photronics Revenue Growth Phase I: 1969 – 1986 Technology Startup Organic Growth U.S. Concentration Pre-IPO Phase II: 1986 – 2002 M&A Growth Merchant Consolidation Global Expansion Phase IV: 2018 and Beyond Leverage China 1st Mover Advantage Long-Term Purchase Agreements Extend
Slide 7: Profitability Improvement
Profitability Improvement CAGR: 7% (2014 – 2024) CAGR: 12% (2014 – 2024) Gross Profit ($ in millions) Annual Revenue ($ in millions) Operating Profit ($ in millions) CAGR: 23% (2014 – 2024)
Slide 8: Compelling Investment Thesis
Compelling Investment Thesis Industry expansion driving design activity across all nodes Broad technology suite and geographicpresence has led to trusted supplier status Deliver operational excellence through premier quality and rapid response times Delivers sustainable cash flow for capital allocat
Slide 9: Core Competencies Serve as Competitive Advantages
Core Competencies Serve as Competitive Advantages Global Footprint Close to customer Aligned with end markets Flexible supply chain Technology Leader Process expertise Advanced Process-of-Record High barriers to entry Commercial Excellence Customer first Trusted partner Wafer yield enhancement Techn
Slide 10: Long-Term Trends Driving Photomask Demand
Semiconductor: design activity is leading driver of mask demand Continued semiconductor industry growth and differentiation of semiconductor designs Reshoring to the U.S. and regional diversification of semiconductor production throughout the world Captives outsourcing trailing edge nodes as they fo
Slide 11: Supply Chain Regionalization Driving Global Semiconductor Investments
Supply Chain Regionalization Driving Global Semiconductor Investments Concerns around national security and supply chain reliability are driving regional investments in semiconductor manufacturing Semiconductor fabs are capitalizing on government incentives to build capacity in US, Europe, and Asia
Slide 12: Advanced Displays are Driving Innovation
Advanced Displays are Driving Innovation Photronics Technological Leadership Enables Customers Innovation and Design Complexity AMOLED displays increasingly being utilized in mobile displays, including smartphones, tablets, and PCs Emerging panel makers releasing new AMOLED displays to gain market s
Slide 13: Strategic Investment Strategy Sustains Profitable Growth
Strategic Investment Strategy Sustains Profitable Growth 13 Proven Approach to Profitably Grow Revenue, Capture Market Share, and Improve ROIC Win market share in growing IC and FPD markets Leverage global footprint to benefit from IC regionalization trends Capitalize on FPD technology leadership to
Slide 14: Fiscal Q2 2025 Financial Results
Fiscal Q2 2025 Financial Results May 28, 2025
Slide 15: FQ2 2025 Summary
FQ2 2025 Summary Opportunistically accelerated cash returned to shareholders through stock repurchases in FQ2 $211.0M Revenue 26.4% Operating Margin $0.15 Diluted EPS $0.40 Non-GAAP Diluted EPS1 $31M Operating Cash Flow $558.4M Cash2 and Short-term investments (3%) Y/Y (1%) Q/Q 60 bps Y/Y 180 bps Q/
Slide 16: Revenue by Product Line
Revenue by Product Line $M 2Q25 Q/Q Y/Y High-End* 59.3 (1%) 2% Mainstream 96.6 3% (6%) Total 155.9 1% (3%) Recognized continued high-end node migration to 22nm and 28nm in Asia associated with JVs Mainstream also experiencing node migration to smaller IC geometries Logic strength in mobile communica
Slide 17: Balance Sheet and Cash Flow Metrics
Balance Sheet and Cash Flow Metrics $M 2Q25 2Q24 1Q25 Cash, cash equivalents and Short-term investments 558.4 559.9 642.2 Debt 0.03 21.8 2.7 Operating Cash Flow 31.5 76.5 78.5 Capital Expenditures 60.5 20.0 35.2 FQ2 operating cash flow reflects income generation led by China & Taiwan JVs FQ2 capex e
Slide 18: FQ3 2025 Guidance
FQ3 2025 Guidance Revenue ($M) 200 – 208 Operating Margin 20% - 22% Diluted non-GAAP EPS $0.35 - $0.41 Diluted Shares (M) ~59 Full-year Capex ($M) ~200 Assumptions: Cautious demand environment and tariff uncertainty Continued node migration towards higher end Weighted average diluted shares reflects
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures