Slide 1: Q2 Fiscal 2023 Earnings
Q2 Fiscal 2023 Earnings Quarter Ended December 31, 2022 • Reported On January 26, 2023 KLA Non-Confidential | Unrestricted 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this letter other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors and WFE; (ii) future development of regulatory landscape; (iii) our market position for the future; (iv) our forecast of financial measure
Slide 3: Semiconductor Industry Demand Environment
Semiconductor Industry Demand Environment Long-Term Secular Drivers Demonstrate Strategic Value of Semiconductors There are many fundamental drivers propelling long-term growth of the Semiconductor industry, underscoring the strategic importance of semiconductors and the semiconductor supply chain.
Slide 4: December Quarter and Calendar 2022 Business Highlights
December Quarter and Calendar 2022 Business Highlights KLA’s Strong Relative Performance in CY22 Driven by Execution and Market Leadership KLA continues to deliver strong relative outperformance versus peers, as market leadership in some of the largest and fastest-growing markets in WFE fuels growth
Slide 5: KLA's Priorities in Calendar 2023
KLA’s Priorities in Calendar 2023 Stabilize our spending levels Support our Develop and customers train our workforce KLA Non-Confidential | Unrestricted 6
Slide 6: The KLA Operating Model
The KLA Operating Model Consistent Strategy and Execution Application of common processes and discipline Cascades throughout the organization Strong focus on talent development Management By Metrics Culture of performance and accountability Expectation of continuous improvement Superior
Slide 7: A Year In Review – CY22 Marked 7th Consecutive Year of Growth
A Year In Review – CY22 Marked 7th Consecutive Year of Growth 28% 18% Revenue Growth FCF Growth* Revenue $10,484M FCF $2,986M 28% 37% Gross Profit Growth* DilutedEPS Growth* Gross Profit $6,540M EPS $25.28 31% Voyager 1035 inline defect monitor for advanced $5,172M Op. Profit Growth* logic and memor
Slide 8: December Quarter 2022 Income Statement Highlights
December Quarter 2022 Income Statement Highlights $2,984M 61.0% 42.4% $1,048M Revenue Gross Margin* Operating Margin* Net Income* $7.38 392x or “Gen5”: The market Diluted EPS* leading broadband plasma (BBP) optical patterned wafer inspection system $6.89 GAAP Diluted EPS * Non-GAAP metric – please r
Slide 9: Breakdown of Revenue by Reportable Segments and End Markets
Breakdown of Revenue by Reportable Segments and End Markets Revenue Y/Y Q/Q Revenue Revenue CY22 Q2-FY23: Q2-FY23 Growth Growth % CY22 Growth Semi Process Control End Market Semiconductor System Revenue Process Control $2,657 +29% +11% 89% $9,144 +32% (Systems + Services) 77% Specialty Semiconductor
Slide 10: Breakdown of Revenue by Major Product and Regions
Breakdown of Revenue by Major Product and Regions Revenue Y/Y Q/Q Revenue Revenue CY22 Q2-FY23 Q2-FY23 Growth Growth % CY22 Growth Revenue by Region Wafer $1,257 +14% +14% 42% $4,382 +27% Inspection 12% 26% 6% Patterning $861 +69% +17% 29% $2,696 +52% Specialty Semi Process $146 +39% +27% 5% $477 +3
Slide 11: Strong Balance Sheet With No Bond Maturities Until 2024
Strong Balance Sheet With No Bond Maturities Until 2024 Balance Sheet Summary 1 ($M) Bond Maturity Profile Investment Grade Credit Ratings Total Cash2 $ 2,866 Bonds Outstanding $5.95B Moody’s A2 Working Capital $ 4,650 Total Assets $ 13,729 Weighted Average Rate 4.64% S&P A- Debt3 $ 6,114 Weighted A
Slide 12: FCF Generation Fuels Consistent Capital Return to Shareholders
FCF Generation Fuels Consistent Capital Return to Shareholders Free Cash Flow 1 and FCF Margin 2 Investment Market in Growth and Leadership and 3.0 New Products Differentiated Solutions 2.5 Value 1.8 Creation 1.3 1.2 Strong Margins 31% Capital Returns 30% 23% 29% to Shareholders and FCF 28% CY18 CY1
Slide 13: Return to Shareholders Across Both Share Repurchases & Dividends
Return to Shareholders Across Both Share Repurchases & Dividends Share Repurchases 1 Track Record of Dividend Increases June 2022: Announced 13th consecutive annual dividend increase to $1.30/share quarterly from $1.05 (24% increase) 5.20 4.70 4,483 ~$228 ~15% 3.50 3.90 Avg price per Dividend CAGR 3
Slide 14: Free Cash Flow and Capital Returns Highlights
Free Cash Flow and Capital Returns Highlights $355M $595M Dec Quarter Share Buyback Dec Quarter Free Cash Flow* $4,483M LTM Share Buyback 1 20% Dec Quarter Free FCF Margin* $184M Dec Quarter Dividends Paid 57% Dec Quarter Surfscan SP-7: The latest generation in KLA’s market- $689M FCF Conversion* le
Slide 15: Guidance for Q3 FY2023 – March 2023 Quarter
Guidance for Q3 FY2023 – March 2023 Quarter March 2023 Quarter Guidance Macro Assumptions Revenue $2,200M to $2,500M Semi PC Revenue By End Market Foundry/Logic: 85% Non-GAAP 60.5% to 62.5% Memory: 15% Gross Margin* Model Assumptions GAAP Diluted Non-GAAP Operating Expenses*: ~$545M $4.06 to $
Slide 16: Appendix
Appendix Reconciliation of Financial Results
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 18
Slide 18: Reconciliation of Free Cash Flow and Related Metrics
Reconciliation of Free Cash Flow and Related Metrics KLA Non-Confidential | Unrestricted 19
Slide 19: Reconciliation of Guidance
Reconciliation of Guidance Q3 FY2023 Guidance Range: KLA Non-Confidential | Unrestricted 20
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 21
Slide 21: KLA Non-Confidential | Unrestricted
KLA Non-Confidential | Unrestricted 22