Slide 1: Second Quarter Fiscal 2021 Earnings Presentation
Second Quarter Fiscal 2021 Earnings Presentation May 20, 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 $2.4 billion ~24,200 $19.8 billion ~14,300* TTM R&D employees TTM REVENUE INVESTMENTS active pa
Slide 4: Strong Market and Business Outlook
Q2 Fiscal 2021 2021 Outlook Longer Term Record quarterly Strong demand for semi Multi-year growth revenue and non-GAAP equipment and services drivers for semi firmly earnings in place Foundry-logic and DRAM Strong execution and markets growing fastest Digital transformation margin expansion Strong d
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: Q2F21 Non-GAAP Financial Results
Q2F21 Non-GAAP Financial Results $M, except EPS Q2F20 Q1F21 Q2F21 Y/Y Q/Q Revenue 3,957 5,162 5,582 41% 8% Gross Margin* 44.6% 45.9% 47.7% 310bps 180bps Operating Income* 976 1,496 1,768 792 272 EPS* $0.89 $1.39 $1.63 $0.74 $0.24 Operating Cash Flow 635 1,421 1,187 552 (234) Free Cash Flow** 564 1,3
Slide 8: Q2F21 Segment Results
Q2F21 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 39% 29% 29% 30% 36% 27% 34% 35% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 26% 21% 21% 31% 3,972 20% 1,203 1,155 18% 18% 1,106 3,553 1,034 1,018 3,070 2,916 2,567 485
Slide 9: Liquidity and Uses of Capital
Liquidity and Uses of Capital CASH AND INVESTMENTS ($M) Q2F20 Q3F20 Q4F20 Q1F21 Q2F21 Cash and cash equivalents* 5,281 4,350 5,351 6,213 6,305 Short-term investments 423 406 387 410 460 Long-term investments 1,678 1,538 1,538 1,601 1,569 Total cash and investments 7,382 6,294 7,276 8,224 8,334 Short
Slide 10: Third Quarter Fiscal 2021 Business Outlook
Business Outlook THIRD OUTLOOK Total Revenue ~$5.92 billion ± $200 million QUARTER Non-GAAP EPS ~$1.76 ± $0.06 Fiscal 2021 Semiconductor Systems ~$4.25 billion SEGMENT REVENUE Applied Global Services ~$1.23 billion Display and Adjacent Markets ~$415 million Non-GAAP Gross Margin ~47.7% OTHER Non-GAA
Slide 11: 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 12: Additional Resources
Additional Resources Investor Relations Home Page LINK Latest News LINK Blog: Ideas, Actions & Technologies LINK 2021 Investor Meeting LINK 2021 Master Class – Memory LINK 12 | Applied Materials External
Slide 13: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 13 | Applied Materials External
Slide 14: 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 15: Unaudited QTD Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QTD RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGE Q2F20 Q3F20 Q4F20 Q1F21 Q2F21 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 1,749 $ 1,955 $ 2,130 $ 2,349 $ 2,653 Certain items associated with acquisitions 1 8 8 12 8 7 Certain inc
Slide 16: Unaudited QTD Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QTD RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT EPS Q2F20 Q3F20 Q4F20 Q1F21 Q2F21 Non-GAAP Adjusted Earnings Per Diluted Share Reported earnings per diluted share - GAAP basis $ 0.82 $ 0.91 $ 1.23 $ 1.22 $ 1.43 Certain items associated with acquisitions 0.01 0.0
Slide 17: 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 Q2F20 Q3F20 Q4F20 Q1F21 Q2F21 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 782 $ 958 $ 1,059 $ 1,261 $ 1,542 Certain items associated with ac
Slide 18: Make Possible
Cll arenas. make possible