Slide 1: Q3 2023 Financial Results Conference Call
Q3 2023 Financial Results Conference Call September 6, 2023 Photronics, Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and some of our comments during this presentation 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
Slide 3: Q3 2023 Summary
Committed to driving long-term, profitable growth through strategic investments 9/6/2023 3 Q3 2023 Summary Maintaining margins and strong cash flow as demand softens Q/Q; favorable long-term demand drivers remain GAAP Net income* was $27.0M, or $0.44/share; non-GAAP was $31.6M, or $0.51/share Invest
Slide 4: Favorable Long-term Photomask Demand Drivers
Favorable Long-term Photomask Demand Drivers On pace for record year in 2023 with continued growth in 2024 Drivers in place for continued growth in photomask demand IC industry forecast to reach $1T by 2030 New IC designs across high-end and mainstream for secular forces such as AI, data centers, Io
Slide 5: Clear Strategy for Sustainable, Long-Term Profitable Growth
Clear Strategy for Sustainable, Long-Term Profitable Growth 9/6/2023 5 Revenue Growth Win lion’s share of the growth in TAM for IC and FPD Continue targeted expansion of IC capacity, including mainstream point tool investments Leverage global footprint to exploit expansion of IC foundry business Cap
Slide 6: Income Statement Summary
Income Statement Summary GAAP Non-GAAP1 $M (except EPS) Q323 Q223 Q322 Q323 Q223 Q322 Revenue 224.2 229.3 219.9 Gross Profit 86.8 88.4 83.9 Gross Margin 38.7% 38.6% 38.1% Operating Income 65.3 67.0 63.7 Operating Margin 29.1% 29.2% 29.0% Non-operating income (loss) (0.9) 13.6 3.6 3.6 2.9 (0.2) Incom
Slide 7: IC Photomask Revenue
$M Q323 Q223 Q/Q Q322 Y/Y High-End* 45.3 43.9 3% 52.7 (14%) Mainstream 117.8 123.1 (4%) 108.6 9% Total 163.1 167.1 (2%) 161.3 1% IC Photomask Revenue 9/6/2023 High-end increased Q/Q on stronger foundry/logic demand in Asia Mainstream softness Q/Q more than offset better high-end demand Outlook New d
Slide 8: FPD Photomask Revenue
FPD Photomask Revenue 9/6/2023 *≥G10.5, AMOLED and LTPS Note: Totals may differ due to rounding. 8 $M Q323 Q223 Q/Q Q322 Y/Y High-End* 50.0 51.9 (4%) 50.7 (1%) Mainstream 11.1 10.4 7% 8.0 39% Total 61.1 62.3 (2%) 58.7 4% High-end down Q/Q as strong AMOLED sales offset by lower G10.5+ and LTPS demand
Slide 9: Select Financial Data
Select Financial Data $M Q323 Q223 Q322 Cash 448.4 367.5 380.8 Short-term Investments 27.3 45.4 - Debt 26.7 28.3 57.3 Net Cash* 421.8 339.1 323.5 Operating Cash Flow 85.9 82.0 92.6 Capital Expenditures 21.1 26.6 11.5 Continued strong operating cash flow from income generation and working capital man
Slide 10: Q4 2023 Guidance
Q4 2023 Guidance Revenue ($M) 222 – 232 Operating Margin 29% - 31% Taxes ($M) 15 – 17 Diluted non-GAAP EPS $0.51 - $0.59 Diluted Shares (M) ~62 Full-year Capex (M) ~130 Incorporation of chips in IoT, 5G, Crypto and consumer products New designs to capture market share Advanced display technologies O
Slide 11: For Additional Information
For Additional Information: Please contact John P. Jordan Executive Vice President & CFO 203.740.5671 jjordan@photronics.com Thank you for your interest!
Slide 12: Appendix
PHOTRONICS Appendix J = gq = < i} <4 & iS} = =
Slide 13: Total Revenue ($M)
Total Revenue ($M) 9/6/2023 13 IC FPD Total may differ due to rounding
Slide 14: IC Photomask Revenue ($M)
IC Photomask Revenue ($M) 9/6/2023 14 Mainstream High-End High-End: 28nm and smaller; Total may differ due to rounding
Slide 15: FPD Photomask Revenue ($M)
FPD Photomask Revenue ($M) 9/6/2023 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 Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share, Free Cash Flow and Net Cash are "non-GAAP financial measures" as such term is defined by the Securities and Exchange Commission and may differ from similarly named non-GAAP
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 9/6/2023 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures 9/6/2023 18