Applied Materials, Inc. · NASDAQ:AMAT
Applied Materials — Q3 2022 Earnings Presentation
17 slides from Applied Materials's earnings presentation, Aug 18, 2022
Slide 1: Third Quarter Fiscal 2022 Earnings Presentation
Third Quarter Fiscal 2022 Earnings Presentation August 18, 2022 Applied Materials External
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, ou
Slide 3: Applied Materials At-A-Glance
APPLIED MATERIALS AT-A-GLANCE REPORTING SEGMENTS FOUNDED Semiconductor Systems CURRENT FISCAL 1967 YEAR ENDS FIRST PUBLIC Applied Global Services 30 October 2022 OFFERING Display and Adjacent Markets 1972 $2.7 billion ~31,900* $25.2 billion ~15,700** TTM R&D employees TTM REVENUE INVESTMENTS active
Slide 4: Incremental Supply Chain Improvements
Q3F22 Summary Market Outlook Longer Term Record revenue in 2022 WFE: Mid-ninety- Digital transformation of Semi Systems and AGS billion-dollar range the economy built upon semiconductors Strong orders and Leading-edge growing backlog foundry/logic strong, Semi and equipment driven by new markets gro
Slide 5: Investment Thesis
Investment Thesis Market Outlook = Innovation and Secular Growth Applied = PPACt Enablement Company Synergistic Subscription materials Unit process Unique Actionable insight / leadership and combinations time to market services engineering broadest portfolio of technologies acceleration revenue busi
Slide 6: Broadest portfolio of products and technologies to accelerate new PPACt playbook
ENABLED BY KEY INFLECTIONS ▪ New ASICs and accelerators New architectures ▪ New memory / in-memory compute ▪ Specialty, CIS, power ▪ GAA transistors New structures / 3D ▪ Backside power distribution ▪ 3D NAND, 3D DRAM ▪ Gate New materials ▪ Contact ▪ Interconnect ▪ EUV enablement New ways to shrink
Slide 7: Q3F22 Non-GAAP Financial Results
Q3F22 Non-GAAP Financial Results $M, except EPS Q3F21 Q2F22 Q3F22 Y/Y Q/Q Revenue 6,196 6,245 6,520 5% 4% Gross Margin* 48.0% 47.0% 46.2% (180bps) (80bps) Operating Income* 2,029 1,913 1,953 (4%) 2% EPS* $1.90 $1.85 $1.94 2% 5% Operating Cash Flow 1,686 415 1,469 (13%) 254% Free Cash Flow** 1,549 20
Slide 8: Q3F22 Segment Results
Q3F22 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 40% 40% 39% 31% 31% 31% 31% 31% 23% 37% 36% 22% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 21% 21% 21% 1,420 1,383 1,369 1,320 4,734 1,286 4,567 4,458 4,454 4,307 431
Slide 9: Liquidity and Uses of Capital
Liquidity and Uses of Capital CASH AND INVESTMENTS ($M) Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Cash and cash equivalents 6,066 4,995 5,264 3,331 2,956 Short-term investments 444 464 473 591 592 Long-term investments 1,658 2,055 2,026 2,102 2,047 Total cash and investments 8,168 7,514 7,763 6,024 5,595 Long-t
Slide 10: Business Outlook
Business Outlook Total Revenue ~$6.65B ± $400M FOURTH OUTLOOK* Non-GAAP EPS ~$2.00 ± $0.18 QUARTER Fiscal 2022 Semiconductor Systems ~$4.93B SEGMENT Applied Global Services ~$1.43B REVENUE Display and Adjacent Markets ~$250M Non-GAAP Gross Margin ~46.4% OTHER Non-GAAP Operating Expenses ~$1.08B Non-
Slide 11: 10-Yr Roadmap | Environmental and Social Responsibility
10-Yr Roadmap | Environmental and Social Responsibility APPLIED’S SEMI INDUSTRY’S GLOBAL OPERATIONS OPERATIONS ELECTRONICS 1x 100x 10,000x On-track for Significant momentum PPACt engagements across 100% renewable energy and broad engagement ecosystem focus on energy-efficient in US by 2022 and with
Slide 12: Additional Resources
Additional Resources Investor Relations Home Page LINK Latest News LINK Blog: Ideas, Actions & Technologies LINK 2021 Investor Meeting LINK 2021 Memory Master Class LINK 2021 Logic Master Class LINK 2021 ICAPS and Packaging Master Class LINK 2021 Process Control and AppliedPRO Master Class LINK 2022
Slide 13: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 13 | Applied Materials External
Slide 14: Use of Non-GAAP Adjusted Financial Measures
Use of Non-GAAP Adjusted Financial Measures Applied provides investors with certain non-GAAP adjusted financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges a
Slide 15: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGE Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 2,967 $ 2,945 $ 2,959 $ 2,927 $ 3,006 Certain items associated with acquisitions 1 6 6 6 7 7 Non-GA
Slide 16: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGE Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 1,785 $ 1,723 $ 1,771 $ 1,648 $ 1,701 Certain items associat
Slide 17: Cll arenas.
Cll arenas. make possible