Slide 1: Q2 Fiscal 2024 Earnings
Q2 Fiscal 2024 Earnings Quarter Ended December 31, 2023 • Reported January 25, 2024 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) utilization rates of the installed base; (iii) our market position for the future and timing for the resumption of gro
Slide 3: Calendar 2023 – A Year In Review
Calendar 2023 – A Year In Review -8% 6% Revenue Growth FCF Growth* Revenue $9,671M FCF $3,168M 62% 32% Gross Profit Margin* Net Income Margin* Gross Profit* $5,972M EPS* $22.77** 39% Voyager 1035 inline defect monitor for advanced $2,499M Operating Profit Margin* logic and memory chip manufacturing
Slide 4: Semiconductor Industry Demand Environment
Semiconductor Industry Demand Environment Long-Term Secular Drivers Demonstrate Strategic Value of Semiconductors The semiconductor industry is expected to grow over the long term due to new enabling technologies and the continued proliferation of semiconductors into more industries. Industry region
Slide 5: December Quarter and Calendar 2023 Business Highlights
December Quarter and Calendar 2023 Business Highlights KLA’s Consistency Led By Market Leadership and Execution 1 Market leadership in some of the most critical and fastest-growing segments of WFE over the long-term drives KLA’s business. KLA and Process Control’s critical role in customers’ technol
Slide 6: KLA's 2024 Priorities
KLA’s 2024 Priorities KLA Non-Confidential | Unrestricted 6
Slide 7: 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 8: December Quarter 2023 Income Statement Highlights
December Quarter 2023 Income Statement Highlights $2,487M 62.6% 40.7% $839M Revenue Gross Margin* Operating Margin* Net Income* (Right) The C205 broadband $6.16 plasma optical patterned wafer inspection system provides high- Diluted EPS* sensitivity discovery and binning of critical defects, helping
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 Quarterly Revenue CY23 Q2-FY24: Q2-FY24 Growth Growth Revenue % CY23 Growth Semi Process Control End Market Semiconductor System Revenue Process Control $2,194 -17% +3% 88% $8,599 -6% (Systems + Services) Specialty Semicondu
Slide 10: Breakdown of Revenue by Major Product and Regions
Breakdown of Revenue by Major Product and Regions Q2-FY24 Revenue Y/Y Q/Q Quarterly Revenue CY23 Q2-FY24 Growth Growth Revenue % CY23 Growth Revenue by Region Wafer Inspection $1,167 -7% +15% 47% $4,154 -5% 15% 11% 5% Patterning $430 -50% -21% 17% $2,169 -20% 12% Specialty Semi Process $136 -6% +22%
Slide 11: Strong Investment Grade Balance Sheet
Strong Investment Grade Balance Sheet Balance Sheet Summary 1 ($M) Bond Maturity Profile Investment Grade Credit Ratings Total Cash2 $ 3,343 Bonds Outstanding $5.95B Moody’s A2 Working Capital $ 4,178 Weighted Average Total Assets $ 14,281 4.64% S&P A- Interest Rate Debt3 $ 5,893 Weighted Average 18
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 Leadership and $3.2 in Growth and $3.0 New Products Differentiated Solutions $2.5 Value $1.8 Creation $1.3 $1.2 33% Capital Returns Strong Margins 30% 31% and FCF 23% 29% to Shareholder
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 September 2023: Announced 14th consecutive annual dividend increase, up 12% to $1.45/share from $1.30/share 5.80 5.35 4,483 ~$282 ~15% 3.90 4.70 Avg price per share Dividend CAGR 3
Slide 14: Free Cash Flow and Capital Returns Highlights
Free Cash Flow and Capital Returns Highlights $438M $545M December Quarter Share Buyback December Quarter Free Cash Flow* $1,760M CY23 Share Buyback 22% December Quarter FCF Margin* $197M December Quarter Dividends Paid 65% December Quarter FCF Conversion* (Above) The latest-generation Archer™ overl
Slide 15: Guidance for Q3 FY2024 – March 2024 Quarter
Guidance for Q3 FY2024 – March 2024 Quarter March 2024 Quarter Guidance Macro Assumptions Revenue $2.3B +/- $125M Semi PC Revenue By End Market Foundry/Logic: 60% Non-GAAP 61.5% +/- 1% Memory: 40% DRAM 85% | NAND 15% Gross Margin* Model Assumptions GAAP Diluted Non-GAAP Operating Expenses*:
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 17
Slide 18: Reconciliation of Free Cash Flow and Related Metrics
Reconciliation of Free Cash Flow and Related Metrics KLA Non-Confidential | Unrestricted 18
Slide 19: Reconciliation of Guidance
Reconciliation of Guidance Q3 FY2024 Guidance Range: KLA Non-Confidential | Unrestricted 19
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 20
Slide 21: KLA Non-Confidential | Unrestricted
KLA Non-Confidential | Unrestricted 21