Slide 1: Q2 2022 Financial Results Conference Call
Q2 2022 Financial Results Conference Call May 25, 2022 Photronics, Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and some of our comments 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 contain risks and uncertainties.
Slide 3: Q2 2022 Summary
Net income attributable to Photronics, Inc. shareholders of $29.8M ($0.49/share) Appointment of Frank Lee as CEO; 42+ years industry experience; 16+ years with PLAB Investing in mainstream IC capacity to capitalize on market growth trends IC: +12% Q/Q, +30% Y/Y FPD: -2% Q/Q, +23% Y/Y To China: +8% Q
Slide 4: Investment Strategy
Investment Strategy Revenue Growth Win lion’s share of “Made in China 2025” TAM growth Supplement new factories with point tool investments Capitalize on technology leadership in AMOLED to continue improving mix Leverage global footprint to exploit growth in “legacy foundry” business Margin Expansio
Slide 5: Delivering on Updated Target Model
Delivering on Updated Target Model 5/25/2022 5 *Free Cash Flow is a non-GAAP term; see reconciliation included in this presentation
Slide 6: Income Statement Summary
Income Statement Summary $M (except EPS) Q222 Q122 Q/Q Q221 Y/Y Revenue $ 204.5 $ 189.8 8% $ 159.8 28% Gross Profit $ 72.9 $ 59.9 22% $ 39.2 86% Gross Margin 35.7% 31.5% 420 bps 24.6% 1,110 bps Operating Income $ 52.1 $ 38.2 36% $ 20.8 150% Operating Margin 25.5% 20.1% 540 bps 13.0% 1,250 bps Other
Slide 7: IC Photomask Revenue
$M Q222 Q122 Q/Q Q221 Y/Y High-End* $ 51.4 $ 46.5 10% $ 41.3 24% Mainstream $ 94.4 $ 83.2 13% $ 70.7 34% Total $ 145.8 $ 129.8 12% $ 112.0 30% IC Photomask Revenue 5/25/2022 High-end growth driven by strong demand in Asia and US and higher price Continued mainstream growth from chip proliferation in
Slide 8: FPD Photomask Revenue
FPD Photomask Revenue 5/25/2022 High-end demand up Q/Q as mobile growth offset soft G10.5+ Mainstream demand remains solid, with Q/Q decline associated with Chinese New Year holiday Outlook Dynamic market environment Mobile demand strength and mainstream LCD recovery expected to continue Technology
Slide 9: Select Financial Data
Select Financial Data $M Q222 Q122 Q221 Cash $ 329 $ 314 $ 256 Debt $ 83 $ 97 $ 114 Net Cash* $ 247 $ 217 $ 142 Operating Cash Flow $ 44 $ 59 $ 32 Capital Expenditures $ 16 $ 19 $ 56 Share repurchase - $ 3 $ 10 Debt is US equipment lease and local China loans; reduced debt $29M YTD Capex mostly main
Slide 10: Q3 2022 Guidance
Q3 2022 Guidance Revenue ($M) $205 - $215 Operating Margin 27% - 29% Taxes ($M) $13 - $15 Diluted EPS $0.45 - $0.55 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: John P. Jordan Executive Vice President & CFO 203.740.5671 jjordan@photronics.com Thank you for your interest!
Slide 12: Appendix
Appendix g s g é fe 6 2 is
Slide 13: Total Revenue
Total Revenue 5/25/2022 13 IC FPD Total may differ due to rounding
Slide 14: IC Photomask Revenue
IC Photomask Revenue 5/25/2022 14 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding
Slide 15: FPD Photomask Revenue
FPD Photomask Revenue 5/25/2022 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 2/23/2022 16
Slide 17: Non-GAAP Financial Measures
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