Photronics : PLAB Investor Presentation February 2025

Published: 2025-02-26 08:48:05 ET PLAB

Investor Presentation

PHOTRONICS, INC.

February 2025

PHOTRONICS, INC.

Fiscal Q1 2025 Financial Results

February 26, 2025

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 risks and uncertainties. We refer you to the risk factors in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause the actual results for the Company to differ materially from those contained in our projections or forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee the accuracy of any forecasts or estimates, and we are not obligated to update any forward- looking statements if our expectations change.

PHOTRONICS, INC.

INC.PHOTRONICS, 4

FQ1 2025 Summary

$212.1M

24.6%

$0.68

$0.52

$78.5M

$642.2M

Non-GAAP

Operating Cash

Cash2 and Short-

Revenue

Operating Margin

Diluted EPS

Diluted EPS1

Flow

term investments

(2%) Y/Y

(200) bps Y/Y

62% Y/Y

8% Y/Y

89% Y/Y

23% Y/Y

(5%) Q/Q

(50) bps Q/Q

26% Q/Q

(12%) Q/Q

15% Q/Q

0% Q/Q

Revenue declined on sequential seasonality, as expected, in both IC and FPD; maintain long-term demand driven by megatrends such as AI, node migration, and supply chain regionalization

Operating margin reflects lower gross margin due to lower sales volumes; opex declined Q/Q / increased Y/Y; after adjusting for FX, non-GAAP Diluted EPS was $0.52, above the high end of guidance

Strengthened balance sheet through solid cash flow generation and debt reduction, providing flexibility to support capital allocation strategy, including planned expansion of U.S. IC manufacturing capacity

Capital allocation strategy based upon investing in growth, returning cash to shareholders, and potential business development initiatives, all focused on increasing shareholder value

Capex investment endorsed by customers to support long-term growth trends of A.I., node migration, and

regionalization

1See reconciliation included in this presentation; 2Includes cash equivalents

Revenue by Product Line

FPD

1Q25

Q/Q

Y/Y

High-End*

60.1

(1%)

Mainstream

93.9

(9%)

(3%)

Total

154.0

(6%)

(2%)

High-End* 39% Mainstream 61%

1Q25

Q/Q

Y/Y

High-End*

49.7

(2%)

Mainstream

8.5

(19%)

Total

58.1

(1%)

High-End* 85%

Mainstream 15%

INC.PHOTRONICS, 5

High-end node migration to 22nm and 28nm in Asia

Older geometries seeing softness, which tend to be associated with Auto and Industrial end markets

Long-term growth drivers:

Technological capabilities drives high-end market leadership and captured share

Broad demand from customers in China Long-term growth drivers:

*IC: 28nm and smaller; FPD: G10.5+, AMOLED and LTPS Totals may differ due to rounding

INC.

Balance Sheet and Cash Flow Metrics

1Q25

Y/Y

Q/Q

Cash, cash equivalents and

642.2

23%

Short-term investments

Debt

2.7

(88%)

(85%)

Operating Cash Flow

78.5

89%

15%

Actively controlling cash, cash equivalents, and short-term investments to maintain liquidity and optimize returns; remaining debt to be paid off in Q2 (maturing US equipment leases)

Continued strong operating cash flow from income generation and working capital management

Capex targets growth in IC capacity, facility expansion, & end-of-life tool replacement

Strong balance sheet allows us to fund growth investments, return cash to shareholders, consider business development initiatives, and remain

PHOTRONICS,

Capital Expenditures

35.2

(19%)

resilient to effects of industry downturns

Balance Sheet Provides Resilience, Enables Growth Strategy and Shareholder Value Creation

FQ2 2025 Guidance

Revenue ($M)

208 - 216

Operating Margin

23% - 25%

Diluted non-GAAP EPS

$0.44 - $0.50

INC.

PHOTRONICS,

Diluted Shares (M)

~62

Full-year Capex ($M)

~200

Reflects strength in higher end offset by weakness in older geometries

A.I. exposure tied to:

Leveraging IC technical expertise into FPD to drive market leadership

Disciplined cost controls and managing cash to maximize returns and deliver long-term shareholder value

PHOTRONICS, INC.

Corporate Overview

INC.PHOTRONICS, 9

Photronics Overview (Nasdaq: PLAB)

$867M

$222M

$261M

$1.4B

~1,900

~675

1969

Revenue

Operating

Operating Cash

Market Cap

Employees

Customers

Founded

Income

Flow

2/20/2025

Unmatched Global Footprint

11 STRATEGICALLY LOCATED MANUFACTURING FACILITIES

Revenue By Region

Revenue By Product

Group

17%

33%

23%

26%

18%

27%

47%

Taiwan

China

Korea

High-End IC

Mainstream IC

FPD

Europe

High-End FPD

Mainstream FPD

IC & FPD

All data reflects Fiscal 2024 unless otherwise noted | IC: Integrated Circuit | FPD: Flat Panel Display

Photomasks: Critical Enabler for IC and FPD Manufacturing

Photomasks carry design information into an exposure system where light transfers the pattern to the wafer

Integrated Circuit (IC) photomasks are used to transfer circuit patterns onto semiconductor wafers during the fabrication of integrated circuits.

Flat Panel Display (FPD) photomasks are used in the fabrication of flat screen televisions, PC monitors, tablets, mobile devices and other flat panel displays.

PHOTRONICS, INC.

Disclaimer

Photronics Inc. published this content on February 25, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 26, 2025 at 13:47:03.591.