Slide 1: Fourth Quarter and Fiscal Year 2021 Earnings Presentation
Fourth Quarter and Fiscal Year 2021 Earnings Presentation November 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 30 October 2022 OFFERING Display and Adjacent Markets 1972 $2.5 billion ~27,200* $23.1 billion ~14,300** TTM R&D employees TTM REVENUE INVESTMENTS active
Slide 4: Strong Demand, Constrained Supply
Q4F21 Summary Market Outlook Longer Term F2021 - record revenue, Customers continue Multi-year growth drivers operating margin, EPS making strategic capital firmly in place Record year-end backlog investments to support industry growth Semi and equipment Q4F21 revenue limited by markets growing supp
Slide 5: Investment Thesis
Investment Thesis Market Outlook = Innovation and Secular Growth Applied = PPACt Enablement Company Synergistic Subscription Unit process Unique Actionable insight / materials leadership and combinations time to market style engineering broadest portfolio of technologies acceleration revenue busines
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: FY2021 Non-GAAP Financial Results
FY2021 Non-GAAP Financial Results $M, except EPS FY2020 FY2021 Y/Y Revenue 17,202 23,063 34% Gross Margin* 45.1% 47.5% 240bps Operating Income* 4,529 7,322 62% EPS* $4.17 $6.84 64% Operating Cash Flow 3,804 5,442 43% Free Cash Flow** 3,382 4,774 41% * For reconciliation of GAAP to non-GAAP results,
Slide 8: Q4F21 Non-GAAP Financial Results
Q4F21 Non-GAAP Financial Results $M, except EPS Q4F20 Q3F21 Q4F21 Y/Y Q/Q Revenue 4,688 6,196 6,123 31% (1%) Gross Margin* 45.7% 48.0% 48.2% 250bps 20bps Operating Income* 1,325 2,029 2,029 53% Unchg EPS* $1.25 $1.90 $1.94 55% 2% Operating Cash Flow 1,315 1,686 1,148 (13%) (32%) Free Cash Flow** 1,1
Slide 9: FY2021 Segment Results
FY2021 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 39% 30% 20% 19% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 33% 27% 16,286 5,013 1,634 1,607 4,155 11,367 Revenue ($M) Revenue ($M) Revenue ($M) FY2020 FY2021 FY2020 F
Slide 10: Q4F21 Segment Results
Q4F21 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 39% 40% 40% 29% 29% 30% 31% 31% 23% 35% 36% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 20% 21% 18% 18% 1,369 4,454 4,307 1,286 3,972 1,203 1,155 485 1,106 3,553 431 41
Slide 11: Liquidity and Uses of Capital
Liquidity and Uses of Capital CASH AND INVESTMENTS ($M) Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Cash and cash equivalents 5,351 6,213 6,305 6,066 4,995 Short-term investments 387 410 460 444 464 Long-term investments 1,538 1,601 1,569 1,658 2,055 Total cash and investments 7,276 8,224 8,334 8,168 7,514 Long-t
Slide 12: Business Outlook
Business Outlook Total Revenue ~$6.16B ± $250M FIRST OUTLOOK* Non-GAAP EPS ~$1.85 ± $0.07 QUARTER Fiscal 2022 Semiconductor Systems ~$4.46B SEGMENT Applied Global Services ~$1.33B REVENUE Display and Adjacent Markets ~$350M Non-GAAP Gross Margin ~47.4% OTHER Non-GAAP Operating Expenses ~$970M Non-GA
Slide 13: 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 and PPACt engagements across 100% renewable energy broad engagement with ecosystem focus on energy-efficient in US by 2022 and
Slide 14: 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 14 |
Slide 15: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 15 | Applied Materials External
Slide 16: 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 17: Unaudited QTD Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QTD RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGE Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 2,130 $ 2,349 $ 2,653 $ 2,967 $ 2,945 Certain items associated with acquisitions 1 12 8 7 6 6 Certain inc
Slide 18: Unaudited QTD Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QTD RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT EPS Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Non-GAAP Adjusted Earnings Per Diluted Share Reported earnings per diluted share - GAAP basis $ 1.23 $ 1.22 $ 1.43 $ 1.87 $ 1.89 Certain items associated with acquisitions 0.02 0.0
Slide 19: 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 Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 1,059 $ 1,261 $ 1,542 $ 1,785 $ 1,723 Certain items associated wit
Slide 20: Unaudited Full Year Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGE FY2020 FY2021 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 7,692 $ 10,914 Certain items associated with acquisitions 1 37 27 Certain incremental expenses related to COVID-19
Slide 21: Unaudited Full Year Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT EPS FY2020 FY2021 Non-GAAP Adjusted Earnings Per Diluted Share Reported earnings per diluted share - GAAP basis $ 3.92 $ 6.40 Certain items associated with acquisitions 0.05 0.04 Acquisition integration and d
Slide 22: Unaudited Full Year Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGE FY2020 FY2021 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 3,714 $ 6.311 Certain items associated with acquisitions 1 41 38 Acquisition
Slide 23: Cll arenas.
Cll arenas. make possible