Photronics, Inc. · NASDAQ:PLAB
Photronics — CSFB Annual Technology Conference 2004
27 slides from Photronics's conference presentation, Dec 2, 2004
Slide 1: CSFB Annual Technology Conference
CSFB Annual Technology Conference December 2, 2004
Slide 2: Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this presentation that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to d
Slide 3: What is a Photomask?
What is a Photomask? ¾ Photomasks, or reticles, are a critical enabling technology in the fabrication of high performance semiconductors ¾ Photomask demand is being accelerated by: • New design activity • Rapidly changing IC performance requirements • Shorter IC life cycles • Increased outsourcing &
Slide 4: Photomask Technology is Critical to Supporting Wafer Lithography
Photomask Technology is Critical to Supporting Wafer Lithography ... ¾ Advanced wafer lithography strategies put photomasks into critical path • Wafer lithography drives semiconductor fab strategy ¾ High-end photomasks are essential in resolving shrinking features • As well as being critical to maxi
Slide 5: Today's Business Environment
Today’s Business Environment Technology, economics ¾ Increased willingness to release 180nm and time-to-market node designs forces are driving global semiconductor companies to become ¾ 130nm transition proceeding steadily ¾ Cross over to 90nm for leading-edge increasingly more selective in choosing
Slide 6: Mask Cost only Represents 8% of Development Cost
Mask Cost only Represents 8% of Development Cost But it is a critical enabling technology. Software Logic Design 28% 34% Wafers 1% Boards 2% Masks Apps I/O Design Test Product 8% 3% 5% Engineering Engineering 7% 12% The only way to bring the development cost down is to have all involved work togethe
Slide 7: Key Global Objectives
Key Global Objectives ¾ Differentiate from competitors through core values – TECHNOLOGY, SERVICE, SPEED & COST ¾ Consolidate high-end market share gains • 130nm – aggressive market penetration • 90nm – accelerate PoR quals to match customer transitions ¾ NTL Mix & Match capability offers local (regi
Slide 8: Key Regional Objectives
Key Regional Objectives Asia: ¾ Expand foundry penetration in Korea, Taiwan & Singapore • Provide seamless support for customers in Europe, Japan and North America ¾ Expand presence in China Europe: ¾ Leverage strategic position at Crolles Alliance • One of two mask suppliers • Leverage early role i
Slide 9: Technology Overview
Technology Overview
Slide 10: Immersion Lithography - What does it mean for masks?
Immersion Lithography- What does it mean for masks? ¾ Immersion lithography enables improved feature resolution of sub-wavelength features on the wafer • Requires using a fluid (water) to increase the numerical aperture of a lens to a factor greater than 1 • Highest numerical aperture today is about
Slide 11: Lithography Technology Landscape
Lithography Technology Landscape ¾ Extension of 193nm assured with Immersion • Replacing 157nm for 45nm and 32nm nodes ¾ Design complexity creating opportunities to proactively address Yield , Time-to-Market and Cost • All data intensive systems need to be fully integrated with high levels of automa
Slide 12: Corporate Technology as a Differentiator
Corporate Technology as a Differentiator… ¾ Masks are pivotal to the Design-to-Silicon realization flow • Need to compensate for process margin eroding effects throughout the process from layout to wafer build ¾ Customers increasingly rely on mask suppliers to define the best Reticle Enhancement Tec
Slide 13: Design Vector
Vector Tool Write Time Impact Design No OPC Rule-Based OPC Model-Based OPC Vector 2 Shots 12 Shots 27 Shots
Slide 14: Impact of Model-Based OPC
Impact of Model-Based OPC Nominal design is shaded. OPC version is fractured into rectangles. Up to 10× increase in shape count when OPC applied. Several hundred billion geometries on mask at 100 nm node.
Slide 15: Corporate Technology Group - A Photronics Competitive Advantage
Corporate Technology Group- A Photronics Competitive Advantage ¾ 90nm process transferred to manufacturing ahead of volume ramp/demand curve for this node ¾ Accelerating 65nm programs with customer focused RET implementation ¾ Initiated advanced 45nm and 32nm research for 193nm immersion lithography
Slide 16: What Is the Lithography Plane?
What Is the Lithography Plane? Logical Physical Wafer Image Design Mask Design Formation Design Capture Place & Route Data Fracture Illumination Strategy Simulation/ Verification, Mask write Emulation Extraction and Resist Analysis Defect Inspect Synthesis Etch Resolution Repair Enhancement High K1
Slide 17: Integrating for Low K1 Environment
Integrating for Low K1 Environment •Eliminate “throw over the wall” mentality •Increase communication between vested interests •Eliminate the silos Logical Physical Wafer Image Design Mask Design Formation Design Capture Place & Route Data Fracture Illumination Wafer Logical Physical Strategy Simula
Slide 18: Low K1 Environment Increases Feedback Need
Low K1 Environment Increases Feedback Need Wafer Logical Physical Tested Mask Image Design Design Devices Formation
Slide 19: Financial Overview
Financial Overview
Slide 20: Photronics Financial Highlights
Photronics Financial Highlights ¾ Strategically scaled infrastructure • Intense focus on profitability across all levels of the organization ¾ Benefit from technology driven demand ¾ Multiple sources of margin leverage • Improving mix shift & stable pricing • Global presence ¾ Increased global marke
Slide 21: Quarterly Revenue & High-End Mix
Quarterly Revenue & High-End Mix $120.0 40% 35% $100.0 30% $80.0 25% $60.0 20% 15% $40.0 10% $20.0 5% $0.0 0% Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Quarterly Revenue $M % High End (180nm & below)
Slide 22: Operating Income..Most Recent Quarters
Operating Income..Most Recent Quarters (excludes consolidation & restructuring charges) $20.0 $103.7 $15.0 $103.1 $10.0 $5.0 $0.0 -$5.0 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04
Slide 23: Improving Liquidity
Improving Liquidity Solid Financial Position $ in millions August 1, Fiscal Year 2004 Ended 2003 Cash and Short Term Investments $250 $232 Working Capital $288 $258 Current Ratio 4.6:1 4.2:1 Total Assets $882 $865 Long Term Debt $356 $368 Equity $330 $308
Slide 24: Cash Flow
Cash Flow $ in millions YTD 04 Fiscal Year August 1, 2004 Ended 2003 Operations $ 81 $83 Capital Expenditures (53) (47) Free Cash Flow 28 36 Net Issuance of Convertible Debt - 145 Net Repayment of Debt (14) (87) Other, Net 4 6 Increase in Cash and Investments $18 $100
Slide 25: Free Cash Flow – Rolling Four Quarters
Free Cash Flow – Rolling Four Quarters $70 $ 63 $60 Goal $50 $40 $30 $36 $20 $10 $0 $3 -$10 -$20 -$30 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04
Slide 26: Photronics…Strategically Positioned
Photronics…Strategically Positioned ¾ Leverage global & knowledge infrastructure • Critical in differentiating suppliers at 130nm & 90nm • Emerging Nanotechnology applications (Microfluidics, photonics, diffractive optics) ¾ Commercialize 65nm & 45nm technology by establishing PLAB as the supplier w
Slide 27: CSFB Annual Technology Conference
CSFB Annual Technology Conference December 2, 2004