Kla Corporation · NASDAQ:KLAC

Kla — Q4 2023 Earnings Presentation

19 slides from Kla's earnings presentation, Jul 27, 2023

  1. Slide 1: Q4 Fiscal 2023 Earnings

    Q4 Fiscal 2023 Earnings Quarter Ended June 30, 2023 • Reported July 27, 2023 KLA Non-Confidential | Unrestricted 1

  2. 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 and WFE; (ii) future development of regulatory landscape; (iii) our market position for the future; (iv) our forecast of financial m

  3. Slide 3: Semiconductor Industry Demand Environment

    Semiconductor Industry Demand Environment Long-Term Secular Drivers Demonstrate Strategic Value of Semiconductors There are many fundamental drivers propelling long-term growth of the Semiconductor industry, underscoring the strategic importance of semiconductors and the semiconductor supply chain.

  4. Slide 4: June Quarter 2023 Business Highlights

    June Quarter 2023 Business Highlights KLA’s Consistency Led By Execution and Market Leadership 1 KLA’s market leadership in some of the most critical and fastest growing areas of WFE continues to fuel our growth, and we continue to execute at a high level to meet customer requirements and deliver on

  5. 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

  6. Slide 6: June Quarter 2023 Income Statement Highlights

    June Quarter 2023 Income Statement Highlights $2,355M 61.2% 38.1% $743M Revenue Gross Margin* Operating Margin* Net Income* $5.40 The Voyager 1035 inspector delivers higher throughput and better sensitivity for lower Diluted EPS* dose inspection of delicate photoresist layers in applications such as

  7. 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 Q4-FY23: Semi Process Control Revenue % Q4-FY23 ($M) Growth Growth % End Market System Revenue Semiconductor Process Control $2,097 -1% -3% 88% (Systems + Services) 70% Specialty Semiconductor Process $129 +4% 0% 6% (Systems

  8. Slide 8: Breakdown of Revenue by Major Product and Region

    Breakdown of Revenue by Major Product and Region Revenue Y/Y Q/Q Q4-FY23 Revenue % Q4-FY23 ($M) Growth Growth % Revenue by Region Wafer $950 -14% -7% 40% Inspection 13% Patterning $585 +19% -4% 25% 21% 6% Specialty $117 +6% +2% 5% Semi Process 18% PCB, Display and $65 -64% -6% 3% 30% Comp. Inspectio

  9. Slide 9: Strong Balance Sheet With No Material Near-Term Maturities

    Strong Balance Sheet With No Material Near-Term Maturities Balance Sheet Summary 1 ($M) Bond Maturity Profile Investment Grade Credit Ratings Total Cash2 $ 3,243 Bonds Outstanding $5.95B Moody’s A2 Working Capital $ 4,629 Total Assets $ 14,072 Weighted Average Rate 4.64% S&P A- Debt3 $ 5,891 Weighte

  10. 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 $3.3 in Growth and Leadership and $3.0 New Products Differentiated Solutions $2.5 Value $1.8 Creation $1.3 $1.2 32% Capital Returns Strong Margins 30% 31% and FCF 23% 29% to Shareholder

  11. 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: Announced 13th consecutive annual dividend increase to $1.30/share quarterly from $1.05 (24% increase) 5.20 4.70 4,483 ~$242 ~15% 3.50 3.90 Avg price per share Dividend

  12. Slide 12: Free Cash Flow and Capital Returns Highlights

    Free Cash Flow and Capital Returns Highlights $389M $880M June Quarter Share Buyback June Quarter Free Cash Flow* $1,312M LTM Share Buyback1 37% June Quarter FCF Margin* $180M June Quarter Dividends Paid 119% $733M The 8 Series patterned wafer inspection systems detect a wide variety of defect types

  13. Slide 13: Guidance for Q1 FY2024 – September 2023 Quarter

    Guidance for Q1 FY2024 – September 2023 Quarter September 2023 Quarter Guidance Macro Assumptions Revenue $2.35B +/- $125M Semi PC Revenue By End Market  Foundry/Logic: 70% Non-GAAP 61% +/- 1%  Memory: 30% Gross Margin* Model Assumptions GAAP Diluted  Non-GAAP Operating Expenses*: ~$535M $5.02 +/

  14. Slide 14: Appendix

    Appendix Reconciliation of Financial Results

  15. Slide 15: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 15

  16. Slide 16: Reconciliation of Free Cash Flow and Related Metrics

    Reconciliation of Free Cash Flow and Related Metrics KLA Non-Confidential | Unrestricted 16

  17. Slide 17: Reconciliation of Guidance

    Reconciliation of Guidance Q1 FY2024 Guidance Range: KLA Non-Confidential | Unrestricted 17

  18. Slide 18: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 18

  19. Slide 19: KLA Non-Confidential | Unrestricted

    KLA Non-Confidential | Unrestricted 19

KLA — Q4 2023 Earnings Presentation on 6ix