Slide 1: Q3 2022 Financial Results Conference Call
Q3 2022 Financial Results Conference Call August 30, 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: Q3 2022 Summary
Net income attributable to Photronics, Inc. shareholders of $31.2M ($0.51/share) Investing in mainstream IC capacity to capitalize on market growth trends IC: +11% Q/Q, +37% Y/Y FPD: Flat Q/Q, +11% Y/Y To China: +13% Q/Q; +63% Y/Y Committed to driving long-term, profitable growth through strategic i
Slide 4: 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 5: Delivering on Updated Target Model
Delivering on Updated Target Model $M (except EPS) 2020 2021 Q3 2022 LTM Illustrative 2-Year Target Model (Updated 5/25/2022) Revenue $610 $664 $796 $900 $950 $975 Gross Margin 22% 25% 33% 38-40% 40-42% 42-43% Operating Margin 10% 14% 23% 28-30% 30-32% 32-33% Operating Cash Flow $143 $151 $234 $350-
Slide 6: Income Statement Summary
Income Statement Summary $M (except EPS) Q322 Q222 Q/Q Q321 Y/Y Revenue $ 219.9 $ 204.5 8% $ 170.6 29% Gross Profit $ 83.9 $ 70.2 19% $ 45.3 85% Gross Margin 38.1% 34.3% 380 bps 26.6% 1,150 bps Operating Income $ 63.7 $ 49.4 29% $ 28.5 124% Operating Margin 29.0% 24.2% 480 bps 16.7% 1,230 bps Non-op
Slide 7: IC Photomask Revenue
$M Q322 Q222 Q/Q Q321 Y/Y High-End* $ 52.7 $ 51.4 3% $ 42.4 24% Mainstream $ 108.6 $ 94.4 15% $ 75.4 44% Total $ 161.3 $ 145.8 11% $ 117.8 37% IC Photomask Revenue 8/30/2022 High-end growth driven by strong demand in Asia and US and better pricing Continued mainstream growth from chip proliferation
Slide 8: FPD Photomask Revenue
FPD Photomask Revenue 8/30/2022 Strong high-end demand for mobile AMOLED displays and G10.5+ for ultra-large screen TVs Mainstream production lower as we prioritized higher-margin high-end demand Outlook Mobile demand strength should continue Technology development drives demand for higher-value mas
Slide 9: Select Financial Data
Select Financial Data $M Q322 Q222 Q321 Cash $ 381 $ 329 $ 283 Debt $ 57 $ 83 $ 118 Net Cash* $ 324 $ 247 $ 165 Operating Cash Flow $ 93 $ 44 $ 55 Capital Expenditures $ 12 $ 16 $ 19 Share repurchase - - $ 13 Debt primarily comprised of US equipment leases and local China loans; reduced debt $54M YT
Slide 10: Q4 2022 Guidance
Q4 2022 Guidance Revenue ($M) $205 - $215 Operating Margin 25% - 29% Taxes ($M) $12 - $15 Diluted EPS $0.44 - $0.52 Diluted Shares (M) ~61 Full-year Capex (M) ~$100 Incorporation of chips in IoT, 5G, Crypto and consumer products Remote work and learning Advanced display technologies Growing national
Slide 11: 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 12: Appendix
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Slide 13: Total Revenue
Total Revenue 8/30/2022 13 IC FPD Total may differ due to rounding
Slide 14: IC Photomask Revenue
IC Photomask Revenue 8/30/2022 14 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding
Slide 15: FPD Photomask Revenue
FPD Photomask Revenue 8/30/2022 15 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; total may differ due to rounding
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures 8/30/2022 16
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 8/30/2022 17