Slide 1: Q4 2022 Financial Results Conference Call
Q4 2022 Financial Results Conference Call December 13, 2022 Photronics, Inc.
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 contai
Slide 3: 2022 Summary
Fifth consecutive year of record revenue, as customers continue to trust us for their photomask needs Gross and operating margins in target model range during second half of 2022 Net income attributable to Photronics, Inc. shareholders of $118.8M ($1.94/share) IC: +29% FPD: +14% To China: +55% 5th c
Slide 4: Q4 2022 Summary
Net income attributable to Photronics, Inc. shareholders of $37.1M ($0.60/share) Investing in mainstream IC capacity to capitalize on market growth trends IC: -3% Q/Q, +25% Y/Y FPD: -8% Q/Q, -3% Y/Y To China: +8% Q/Q; +39% Y/Y Committed to driving long-term, profitable growth through strategic inves
Slide 5: Investment Strategy
Investment Strategy Revenue Growth Win lion’s share of the impressive growth in TAM for China IC and FPD Supplement capacity with point tool investments and targeted expansions Capitalize on technology leadership in AMOLED to continue improving mix Leverage global footprint to exploit growth in “leg
Slide 6: Delivering on Updated Target Model
Delivering on Updated Target Model $M (except EPS) 2020 2021 2022 Illustrative FY 24 Target Model Revenue $610 $664 $825 $900 $950 $975 Gross Margin 22% 25% 36% 38-40% 40-42% 42-43% Operating Margin 10% 14% 26% 28-30% 30-32% 32-33% Operating Cash Flow $143 $151 $275 $350-375 $365-380 $375-400 Free C
Slide 7: Income Statement Summary
Income Statement Summary $M (except EPS) Q422 Q322 Q/Q Q421 Y/Y Revenue $ 210.3 $ 219.9 (4%) $ 181.3 16% Gross Profit $ 80.3 $ 83.9 (4%) $ 51.9 55% Gross Margin 38.2% 38.1% 10 bps 28.7% 950 bps Operating Income $ 60.5 $ 63.7 (5%) $ 33.5 81% Operating Margin 28.8% 29.0% (20 bps) 18.5% 1,030 bps Non-o
Slide 8: IC Photomask Revenue
$M Q422 Q322 Q/Q Q421 Y/Y High-End* $ 44.3 $ 52.7 (16%) $ 42.6 4% Mainstream $ 111.9 $ 108.6 3% $ 82.9 35% Total $ 156.2 $ 161.3 (3%) $ 125.4 25% IC Photomask Revenue 12/13/2022 High-end declined Q/Q on lower foundry/logic demand in Asia Continued mainstream growth from chip proliferation in consume
Slide 9: FPD Photomask Revenue
FPD Photomask Revenue 12/13/2022 Lower Q/Q high-end demand for mobile displays and G10.5+ for ultra-large screen TVs Mainstream increased sequentially as we filled capacity from high-end decline Outlook Mobile demand should recover with rollout of new designs Technology development drives demand for
Slide 10: Select Financial Data
Select Financial Data $M Q422 Q322 Q421 Cash $ 359 $ 381 $ 277 Debt $ 42 $ 57 $ 112 Net Cash* $ 316 $ 324 $ 165 Operating Cash Flow $ 79 $ 93 $ 38 Capital Expenditures $ 66 $ 12 $ 17 Share repurchase - - $ 13 Cash includes cash equivalents and short-term investments. Debt primarily comprised of US e
Slide 11: Q1 2023 Guidance
Q1 2023 Guidance Revenue ($M) $203 - $213 Operating Margin 25% - 29% Taxes ($M) $12 - $15 Diluted EPS $0.40 - $0.48 Diluted Shares (M) ~61 Full-year Capex (M) ~$130 Incorporation of chips in IoT, 5G, Crypto and consumer products Remote work and learning Advanced display technologies Growing national
Slide 12: For Additional Information
For Additional Information: Please contact John P. Jordan Executive Vice President & CFO 203.740.5671 jjordan@photronics.com Thank you for your interest!
Slide 13: Appendix
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Slide 14: Total Revenue
Total Revenue 12/13/2022 14 IC FPD Total may differ due to rounding
Slide 15: IC Photomask Revenue
IC Photomask Revenue 12/13/2022 15 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding
Slide 16: FPD Photomask Revenue
FPD Photomask Revenue 12/13/2022 16 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; total may differ due to rounding
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 12/13/2022 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures 12/13/2022 18