Photronics, Inc. · NASDAQ:PLAB
Photronics — Smith Barney 11th Annual Global Technology Conference 2004
19 slides from Photronics's conference presentation, Sep 8, 2004
Slide 1: Smith Barney 11th Annual Global Technology Conference
Smith Barney 11th Annual Global Technology Conference September 8, 2004
Slide 2: Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this presentation that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to d
Slide 3: Today's Business Environment
Today’s Business Environment ¾ Excess capacity and signs of recessionary Technology, economics economy are not evident and time-to-market forces are driving ¾ Increased willingness to release 180nm node global semiconductor designs companies to become increasingly more ¾ 130nm transition proceeding
Slide 4: Key Global Objectives
Key Global Objectives ¾ Differentiate from competitors through core values – TECHNOLOGY, SERVICE, SPEED & COST ¾ Consolidate high-end market share gains • 130nm – aggressive market penetration • 90nm – accelerate PoR quals to match customer transitions ¾ Improve prototype efficiency – reduce cycle t
Slide 5: Key Regional Objectives
Key Regional Objectives Asia: ¾ Expand foundry penetration in Korea, Taiwan & Singapore • Provide seamless support for customers in Europe, Japan and North America ¾ Expand presence in China Europe: ¾ Leverage strategic position at Crolles Alliance • One of two mask suppliers • Leverage early role i
Slide 6: Technology Overview
Technology Overview
Slide 7: Immersion Lithography - What does it mean for masks?
Immersion Lithography- What does it mean for masks? ¾ Immersion lithography enables improved feature resolution of sub-wavelength features on the wafer • Requires using a fluid (water) to increase the numerical aperture of a lens to a factor greater than 1 • Highest numerical aperture today is about
Slide 8: Lithography Technology Landscape
Lithography Technology Landscape ¾ Extension of 193nm assured with Immersion • Replacing 157nm for 45nm and 32nm nodes ¾ Design complexity creating opportunities to proactively address Yield , Time-to-Market and Cost • All data intensive systems need to be fully integrated with high levels of automa
Slide 9: Corporate Technology as a Differentiator
Corporate Technology as a Differentiator… ¾ Masks are pivotal to the Design-to-Silicon realization flow • Need to compensate for process margin eroding effects throughout the process from layout to wafer build ¾ Customers increasingly rely on mask suppliers to define the best Reticle Enhancement Tec
Slide 10: Corporate Technology Group - A Photronics Competitive Advantage
Corporate Technology Group- A Photronics Competitive Advantage ¾ 90nm process transferred to manufacturing ahead of volume ramp/demand curve for this node ¾ Accelerating 65nm programs with customer focused RET implementation ¾ Initiated advanced 45nm and 32nm research for 193nm immersion lithography
Slide 11: Financial Overview
Financial Overview
Slide 12: Photronics Financial Highlights
Photronics Financial Highlights ¾ Strategically scaled infrastructure • Intense focus on profitability across all levels of the organization ¾ Benefit from technology driven demand ¾ Multiple sources of margin leverage • Improving mix shift & stable pricing • Global presence ¾ Increased global marke
Slide 13: Quarterly Revenue & High-End Mix
Quarterly Revenue & High-End Mix $120.0 40% 35% $100.0 30% $80.0 25% $60.0 20% 15% $40.0 10% $20.0 5% $0.0 0% Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Quarterly Revenue $M % High End (180nm & below)
Slide 14: Operating Income..Most Recent Quarters
Operating Income..Most Recent Quarters (excludes consolidation & restructuring charges) $20.0 $15.0 $103.7 $103.1 $10.0 $5.0 $0.0 -$5.0 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04
Slide 15: Improving Liquidity
Improving Liquidity Solid Financial Position $ in millions August 1, Fiscal Year 2004 Ended 2003 Cash and Short Term Investments $250 $232 Working Capital $288 $258 Current Ratio 4.6:1 4.2:1 Total Assets $882 $865 Long Term Debt $356 $368 Equity $330 $308
Slide 16: Cash Flow
Cash Flow $ in millions YTD 04 Fiscal Year August 1, 2004 Ended 2003 Operations $ 81 $83 Capital Expenditures (53) (47) Free Cash Flow 28 36 Net Issuance of Convertible Debt - 145 Net Repayment of Debt (14) (87) Other, Net 4 6 Increase in Cash and Investments $18 $100
Slide 17: Free Cash Flow – Rolling Four Quarters
Free Cash Flow – Rolling Four Quarters $70 $ 63 $60 Goal $50 $40 $30 $36 $20 $10 $0 $3 -$10 -$20 -$30 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04
Slide 18: Photronics…Strategically Positioned
Photronics…Strategically Positioned ¾ Leverage global & knowledge infrastructure • Critical in differentiating suppliers at 130nm & 90nm • Emerging Nanotechnology applications (Microfluidics, photonics, diffractive optics) ¾ Commercialize 65nm & 45nm technology by establishing PLAB as the supplier w
Slide 19: Smith Barney 11th Annual Global Technology Conference
Smith Barney 11th Annual Global Technology Conference September 8, 2004
Photronics — Smith Barney 11th Annual Global Technology Conference 2004 on 6ix