Slide 1: First Quarter Fiscal 2021 Earnings Presentation
First Quarter Fiscal 2021 Earnings Presentation February 18, 2021 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 31 October 2021 OFFERING Display and Adjacent Markets 1974 $2.3 billion ~24,200 $18.2 billion ~14,300* TTM R&D employees TTM REVENUE INVESTMENTS active pa
Slide 4: Strong Market and Business Outlook
Q1 Fiscal 2021 2021 Outlook Longer Term Record quarterly revenue Robust demand for semi Multi-year growth drivers and non-GAAP earnings equipment and services for semi firmly in place Foundry-logic investment – Digital transformation of Continued acceleration of economy accelerating demand for silic
Slide 5: COVID-19 Guiding Principles and Status
COVID-19 GUIDING PRINCIPLES 1. Maintain trust of employees, customers, suppliers and partners RESPONSE 2. Drive actions that allow us to emerge stronger over the long term Q1F21 STATUS ▪ Stringent protocols in place to keep workplaces safe and healthy ▪ Recovered pre-COVID productivity levels in R&D
Slide 6: PPACt
ENABLED BY PERFORMANCE New architectures New structures / 3D PPACt New materials New ways to shrink POWER AREA-COST Advanced packaging Applied has broadest portfolio of products and technologies to accelerate new PPACt playbook (PPACt = Power, Performance, Area-cost and Time-to-market) 6 | Applied M
Slide 7: Q1F21 Non-GAAP Financial Results
Q1F21 Non-GAAP Financial Results $M, except EPS Q1F20 Q4F20 Q1F21 Y/Y Q/Q Revenue 4,162 4,688 5,162 24% 10% Gross Margin* 44.9% 45.7% 45.9% 100bps 20bps Operating Income* 1,068 1,325 1,496 428 171 EPS* $0.98 $1.25 $1.39 $0.41 $0.14 Operating Cash Flow 987 1,315 1,421 434 106 Free Cash Flow** 885 1,1
Slide 8: Q1F21 Segment Results
Q1F21 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 36% 28% 29% 29% 33% 34% 35% 27% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 31% 26% 21% 21% 20% 3,553 1,155 1,106 18% 1,034 3,070 1,018 997 2,916 2,814 12% 2,567 485 42
Slide 9: Liquidity and Uses of Capital
Liquidity and Uses of Capital CASH AND INVESTMENTS ($M) Q1F20 Q2F20 Q3F20 Q4F20 Q1F21 Cash and cash equivalents* 3,424 5,281 4,350 5,351 6,213 Short-term investments 536 423 406 387 410 Long-term investments 1,713 1,678 1,538 1,538 1,601 Total cash and investments 5,673 7,382 6,294 7,276 8,224 Short
Slide 10: Business Outlook
Business Outlook OUTLOOK Total Revenue ~$5.39 billion ± $200 million SECOND Non-GAAP EPS ~$1.50 ± $0.06 QUARTER Fiscal 2021 SEGMENT Semiconductor Systems ~$3.85 billion REVENUE Applied Global Services ~$1.14 billion Display and Adjacent Markets ~$370 million OTHER Non-GAAP Gross Margin ~47.0% Non-GA
Slide 11: 10-Yr Roadmap | Environmental and Social Responsibility
10-Yr Roadmap | Environmental and Social Responsibility 1x 100x 10,000x Our direct impact Our industry’s impact, How our technology can be and how we run including that of our designed and used to advance our business customers and suppliers sustainability on a global scale Make Possible a Better Fu
Slide 12: 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 13: Appendix: Non-GAAP to GAAP Reconciliations
Appendix Non-GAAP to GAAP Reconciliations 13 | Applied Materials External
Slide 14: Unaudited QTD Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QTD RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT EPS AND PERCENTAGE Q1F20 Q2F20 Q3F20 Q4F20 Q1F21 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 1,858 $ 1,749 $ 1,955 $ 2,130 $ 2,349 Certain items associated with acquisitions 1 9 8 8 12 8 Cer
Slide 15: Unaudited QTD Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED QTD RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGE Q1F20 Q2F20 Q3F20 Q4F20 Q1F21 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 915 $ 782 $ 958 $ 1,059 $ 1,261 Certain items associated with acqu
Slide 16: Cll arenas.
Cll arenas. make possible