Slide 1: Q4 2024 Financial Results Conference Call
Q4 2024 Financial Results Conference Call December 11, 2024 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: Q4 2024 Summary
Q4 2024 Summary $68.4M $640.7M $222.6M 25.1% $0.54 $0.59 Operating Cash Cash2 and Short- Revenue Operating Margin EPS Non-GAAP EPS1 Flow term investments (2%) Y/Y (340) bps Y/Y (25%) Y/Y (2%) Y/Y (36%) Y/Y 25% Y/Y 6% Q/Q 40 bps Q/Q (2%) Q/Q 16% Q/Q (9%) Q/Q 6% Q/Q Revenue improved sequentially with
Slide 4: 2024 Summary
2024 Summary $261.4M $640.7M $866.9M 25.6% $2.09 $2.05 Operating Cash Cash2 and Short- Revenue Operating Margin EPS Non-GAAP EPS1 Flow term investments (3%) Y/Y (280) bps Y/Y 3% Y/Y 1% Y/Y (14%) Y/Y 25% Y/Y Revenue lower due to general semiconductor industry softness following a record fiscal 2023.
Slide 5: Revenue by Product Line
Revenue by Product Line IC FPD $M Q424 Q/Q Y/Y $M Q424 Q/Q Y/Y High-End* 60.1 21% 4% High-End* 48.4 Flat (9%) Mainstream 103.7 (3%) (3%) Mainstream 10.5 57% 8% High-End* 37% High-End* 82% Total 163.7 5% (1%) Mainstream 63% Total 58.9 7% (7%) Mainstream 18% High-end sales improved on higher foundry d
Slide 6: Balance Sheet and Cash Flow Metrics
Balance Sheet and Cash Flow Metrics $M Q424 Y/Y Q/Q Actively controlling cash, cash equivalents, and short-term investments to maintain liquidity and optimize returns, while also reducing Debt Cash, cash equivalents and (comprised of US equipment leases). 640.7 25% 6% Short-term investments Continue
Slide 7: Q1 2025 Guidance
Q1 2025 Guidance Revenue ($M) 208 – 216 Reflects typical Q1 seasonality, including Operating Margin 23% - 25% Chinese New Year beginning in late January. Incorporation of chips in AI, IoT, 5G, and consumer products. Taxes ($M) 17 – 19 • New designs to capture market share. • Advanced display technol
Slide 8: Corporate Overview
Corporate Overview PHOTRONICS, INC.
Slide 9: Photronics Overview
Photronics Overview (Nasdaq: PLAB) $867M $222M $261M $1.6B ~1,900 ~675 1969 Revenue Operating Operating Cash Market Cap Employees Customers Founded Income Flow 12/3/2024 Unmatched Global Footprint 11 STRATEGICALLY LOCATED MANUFACTURING FACILITIES Revenue By Region Revenue By Product Group 5% PHOTRON
Slide 10: Phases of Photronics Revenue Growth
Phases of Photronics Revenue Growth Phase IV: 2018 and Beyond Leverage China 1st Mover Advantage Long-Term Purchase Agreements Extend Technology Leadership 1,000 Increase Market Share Phase III: 2003 – 2017 Strategic Capital Allocation 900 Phase I: 1969 – 1986 Enter High-End Market Technology Startu
Slide 11: Compelling Investment Thesis
Compelling Investment Thesis GLOBAL LEADER POSITIVE DEMAND TRENDS SOLID EXECUTION INVESTMENT STRATEGY in the merchant drive strategic growth driven by a culture of To deliver sustainable cash photomask industry investments sustainable performance flow generation Trusted supplier due to Semiconductor
Slide 12: Core Competencies Serve as Competitive Advantages
Core Competencies Serve as Competitive Advantages Operational Commercial Technology Global Excellence Excellence Leader Footprint Responsive delivery Customer first Process know-how Close to customer PHOTRONICS, INC. High yields Trusted partner Advanced Process-of- Aligned with end markets Record Co
Slide 13: Long-Term Trends Driving Photomask Demand
Long-Term Trends Driving Photomask Demand Semiconductor: growing capacity and design activity 1. More extensive use of semiconductors across multiple applications, driven by megatrends such as AI and IoT. 2. Supply chain regionalization supported by governments globally driving investments in semico
Slide 14: Supply Chain Regionalization Driving Global Semiconductor Investments
Supply Chain Regionalization Driving Global Semiconductor Investments Our IC Manufacturing Footprint Aligns with Global Semiconductor Production Concerns around national security and supply chain reliability are driving regional investments in semiconductor manufacturing. Semiconductor fabs are capi
Slide 15: Advanced Displays are Driving Innovation
Advanced Displays are Driving Innovation AMOLED displays continue to gain market share in mobile displays, including smartphones, tablets, and PC. Emerging panel makers releasing new AMOLED displays to gain market share against established incumbents. Panel makers incorporating additional functional
Slide 16: Clear Capital Deployment Priorities Supported by Strong Balance Sheet
Clear Capital Deployment Priorities Supported by Strong Balance Sheet Fund organic growth $M 2024 Increase IC capacity Maintain technical leadership Cash and Short-term Expand capacity to support customer demand 641 Investments Financial discipline to improve ROIC Share repurchase Debt 18 Repurchase
Slide 17: Strategic Investment Strategy Sustains Profitable Growth
Strategic Investment Strategy Sustains Profitable Growth STRATEGIC APPROACH TO CAPITAL INVESTMENTS Organic growth through high-return targeted capacity expansion Enter LTPAs to mitigate investment risk and quickly ramp revenues GROW REVENUE IN MARGIN EXPANSION WINNING THROUGH EXCESS OF MARKET IMPROV
Slide 18: Appendix
PHOTRONICS, INC. Appendix
Slide 19: Revenue by Product Group ($M)
Revenue by Product Group ($M) Total Revenue IC Revenue FPD Revenue 892.1 651.3 866.9 638.2 824.5 593.0 27% 26% 30% 240.8 240.8 36% 231.5 28% 228.8 194.9 228.8 231.5 33% 228.5 195.3 81% 83% 200.8 85% 187.0 195.4 73% 74% 72% 70% 651.3 638.2 67% 64% 456.3 PHOTRONICS, INC. 593.0 397.7 409.7 19% 17% 15%
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP fina
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures PHOTRONICS, INC. Reconciliation of GAAP Net income attributable to Photronics, Inc. shareholders to Non-GAAP Net income and GAAP Diluted Earnings Per Share to Non-GAAP Diluted Earnings Per Share (in thousands) (Unaudited) Three Months ended Year Ended October 31, July 28,