Slide 1: Q3 Fiscal 2023 Earnings
Q3 Fiscal 2023 Earnings Quarter Ended March 31, 2023 • Reported April 26, 2023 KLA Non-Confidential | Unrestricted 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation 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 m
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: KLA's Steady Market Share Expansion Continued in 2022
KLA’s Steady Market Share Expansion Continued in 2022 KLA’s Process Control Market Share Eclipsed 57% in 2022, steady upward Semiconductor Process Control 1 trajectory since 2004, demonstrating the power of the portfolio Market Share 70% 60% Process Control was the fastest growing WFE market segment
Slide 5: March Quarter 2023 Business Highlights
March Quarter 2023 Business Highlights KLA’s Consistency Led By Execution and Market Leadership 1 KLA’s market leadership in some of the most critical and fastest growing areas of WFE continues to fuel our growth, and we continue to execute at a high level to meet customer requirements and deliver o
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: March Quarter 2023 Income Statement Highlights
March Quarter 2023 Income Statement Highlights $2,433M 60.8% 38.8% $761M Revenue Gross Margin* Operating Margin* Net Income* $5.49 KLA’s new, high-performance Diluted EPS* Teron™ SL670e XP reticle inspection systems are used during chip manufacturing to $5.03 identify yield-critical defects on EUV r
Slide 8: Breakdown of Revenue by Reportable Segments and End Markets
Breakdown of Revenue by Reportable Segments and End Markets Revenue Y/Y Q/Q Q3-FY23: Semi Process Control Revenue % Q3-FY23 ($M) Growth Growth % End Market System Revenue Semiconductor Process Control $2,172 +10% -18% 90% 86% (Systems + Services) Specialty Semiconductor Process $129 +10% -18% 5% (Sy
Slide 9: Breakdown of Revenue by Major Product and Regions
Breakdown of Revenue by Major Product and Regions Revenue Y/Y Q/Q Q3-FY23 Revenue % Q3-FY23 ($M) Growth Growth % Revenue by Region Wafer $1,027 +12% -18% 42% Inspection 14% Patterning $612 0% -29% 25% 20% 9% Specialty $115 +9% -21% 5% Semi Process 19% PCB, Display and $69 -44% -36% 3% Comp. Inspecti
Slide 10: Strong Balance Sheet With No Bond Maturities Until 2024
Strong Balance Sheet With No Bond Maturities Until 2024 Balance Sheet Summary 1 ($M) Bond Maturity Profile Investment Grade Credit Ratings Total Cash2 $ 2,890 Bonds Outstanding $5.95B Moody’s A2 Working Capital $ 4,600 Total Assets $ 13,684 Weighted Average Rate 4.64% S&P A- Debt3 $ 5,890 Weighted A
Slide 11: 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 Leadership and $3.2 in Growth and $3.0 New Products Differentiated Solutions $2.5 Value $1.8 Creation $1.3 $1.2 Capital Returns Strong Margins 30% 31% 30% and FCF 23% 29% to Shareholder
Slide 12: 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 4,397 ~$237 ~15% 3.50 3.90 Avg price per Dividend
Slide 13: Free Cash Flow and Capital Returns Highlights
Free Cash Flow and Capital Returns Highlights $478M $926M Mar Quarter Share Buyback Mar Quarter Free Cash Flow* $4,397M LTM Share Buyback 38% Mar Quarter Free FCF Margin* $181M Mar Quarter Dividends Paid 122% $711M 392x or “Gen5”: The market-leading broadband plasma (BBP) optical patterned wafer ins
Slide 14: Guidance for Q4 FY2023 – June 2023 Quarter
Guidance for Q4 FY2023 – June 2023 Quarter June 2023 Quarter Guidance Macro Assumptions Revenue $2.250B +/- $125M Semi PC Revenue By End Market Foundry/Logic: 77% Non-GAAP 60.75% +/- 1% Memory: 23% Gross Margin* Model Assumptions GAAP Diluted Non-GAAP Operating Expenses*: ~$540M $4.47 +/- $0.6
Slide 15: Appendix
Appendix Reconciliation of Financial Results
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 17
Slide 17: Reconciliation of Free Cash Flow and Related Metrics
Reconciliation of Free Cash Flow and Related Metrics KLA Non-Confidential | Unrestricted 18
Slide 18: Reconciliation of Guidance
Reconciliation of Guidance Q4 FY2023 Guidance Range: KLA Non-Confidential | Unrestricted 19
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 20
Slide 20: KLA Non-Confidential | Unrestricted
KLA Non-Confidential | Unrestricted 21