Slide 1: Q1 Fiscal 2023 Earnings
Q1 Fiscal 2023 Earnings Quarter Ended September 30, 2022 • Reported On October 26, 2022 KLA Non-Confidential | Unrestricted 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors; (ii) WFE for 2023; (iii) future shareholder returns as a percentage of free cash flows; (iv) dividend levels over the next twelve m
Slide 3: Semiconductor Industry Demand Environment
Semiconductor Industry Demand Environment Slowing Consumer Electronics Markets and Supply Chain Challenges Impacting Semiconductor Demand The Semiconductor industry is facing a combination of factors impacting demand growth, including inflation, COVID-related disruptions in China, and ongoing supply
Slide 4: September Quarter 2022 Business Highlights
September Quarter 2022 Business Highlights KLA’s Consistency Led by Execution and Market Leadership KLA continues to deliver strong relative outperformance versus peers, as our market leadership in some of the largest and fastest-growing markets in WFE supports our growth. As 1 a result, KLA is posi
Slide 5: The KLA Operating Model
The KLA Operating Model Consistent Strategy and Execution Application of common processes and discipline Cascades throughout the organization Strong focus on talent development Management By Metrics Culture of performance and accountability Expectation of continuous improvement Superior
Slide 6: September Quarter 2022 Income Statement Highlights
September Quarter 2022 Income Statement Highlights $2,724M 63.4% 44.1% $1,007M Revenue Gross Margin* Operating Margin* Net Income* $7.06 392x or “Gen5”: The market Non-GAAP Diluted EPS* leading broadband plasma (BBP) optical patterned wafer inspection system $7.20 GAAP Diluted EPS * Non-GAAP metric
Slide 7: Breakdown of Revenue by Reportable Segments and End Markets
Breakdown of Revenue by Reportable Segments and End Markets Revenue Y/Y Q/Q Q1-FY23: Semi Process Control Revenue % Q1-FY23 ($M) Growth Growth % End Market System Revenue Semiconductor Process Control $2,398 +35% +13% 88% (Systems + Services) 63% Specialty Semiconductor Process $128 +25% +3% 5% (Sys
Slide 8: Breakdown of Revenue by Major Product and Regions
Breakdown of Revenue by Major Product and Regions Revenue Y/Y Q/Q Q1-FY23 Revenue % Q1-FY23 ($M) Growth Growth % Revenue by Region Wafer $1,103 +24% +0% 41% Inspection 9% Patterning $733 +67% +49% 27% 27% 6% Specialty $114 +23% +3% 4% Semi Process PCB, Display and 31% $134 -2% -25% 5% 15% Comp. Insp
Slide 9: Strong Balance Sheet With No Bond Maturities Until 2024
Strong Balance Sheet With No Bond Maturities Until 2024 Balance Sheet Summary 1 ($M) Bond Maturity Profile Investment Grade Credit Ratings Total Cash2 $ 2,954 Bonds Outstanding $5.95B Moody’s A2 Working Capital $ 4,505 Total Assets $ 13,124 Weighted Average Rate 4.64% S&P A- Debt3 $ 6,313 Weighted A
Slide 10: FCF Generation Fuels Consistent Capital Return to Shareholders
FCF Generation Fuels Consistent Capital Return to Shareholders Free Cash Flow 1 and FCF Margin 2 Investment Market in Growth and Leadership and 3.1 New Products Differentiated Solutions 2.5 Value 1.8 Creation 1.3 1.2 32% Strong Margins 31% Capital Returns 30% 23% 29% to Shareholders and FCF CY18 CY1
Slide 11: Return to Shareholders Across Both Share Repurchases & Dividends
Return to Shareholders Across Both Share Repurchases & Dividends Share Repurchases 1 Track Record of Dividend Increases June 2022: New $6B June 2022: Announced 13th consecutive annual dividend repurchase authorization increase to $1.30/share quarterly from $1.05 (24% increase) 5.20 4.70 3,000 ~3,000
Slide 12: Free Cash Flow and Capital Returns Highlights
Free Cash Flow and Capital Returns Highlights $927M $90M Sept Quarter Share Buyback Free Cash Flow* $4,558M 34% LTM Share Buyback 1 FCF Margin* $188M Sept Quarter Dividends Paid 92% $664M FCF Conversion* Surfscan SP-7: The latest generation in KLA’s market- leading unpatterned wafer inspection portf
Slide 13: Guidance for Q2 FY2023 – December 2022 Quarter
Guidance for Q2 FY2023 – December 2022 Quarter December 2022 Quarter Guidance Macro Assumptions Revenue $2,650M to $2,950M Semi PC Revenue By End Market Foundry/Logic: 76% Non-GAAP 61.5% to 63.5% Memory: 24% Gross Margin* Model Assumptions GAAP Diluted Non-GAAP Operating Expenses*: ~$550M $5.9
Slide 14: Appendix
Appendix Reconciliation of Financial Results
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 16
Slide 16: Reconciliation of Free Cash Flow and Related Metrics
Reconciliation of Free Cash Flow and Related Metrics KLA Non-Confidential | Unrestricted 17
Slide 17: Reconciliation of Guidance
Reconciliation of Guidance Q2 FY2023 Guidance Range: Note Regarding Reconciliations of Long-term Forecasts: KLA Non-Confidential | Unrestricted 18
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 19
Slide 19: KLA Non-Confidential | Unrestricted
KLA Non-Confidential | Unrestricted 20