EX-99.5 6 ex99_5.htm EXHIBIT 99.5

Exhibit 99.5
Photronics, Inc. Q2 2019 Financial Results Conference CallMay 22, 2019

Safe Harbor Statement 2 This presentation and some of our comments 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. Actual events or results may differ materially from those presented. These statements include words like “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “may”, “plan”, “project” or the negative thereto. 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. If you would like more information on the risks involved in forward-looking statements, please see the documents we file from time to time with the Securities and Exchange Commission.Non-GAAP Financial MeasuresThis presentation and some of our comments may reference non-GAAP financial measures. These non-GAAP financial measures exclude certain income or expense items, and are consistent with another way management internally analyzes our results of operations. Non-GAAP information should be considered to be a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Please see the “Reconciliation of GAAP to Non-GAAP Financial Information” in this presentation.

Revenue up 6% Q/Q and 1% Y/YSequential IC growth on high-end memory recoveryFPD growth driven by mobile display (AMOLED and LTPS LCD)Record revenue to China, representing 26% of total revenueNet income attributable to Photronics, Inc. shareholders of $8.5M ($0.13/share)Capex of $34M ($140M YTD) to support China investmentsRepaid $57.5M convertible debt; eliminated 5.5M potentially dilutive sharesChina grand opening ceremonies were held week of April 22Hefei shipped first G10.5+ mask in Q2; working to quickly complete customer qualificationsCompleting tool fine-tuning in Xiamen; qualifications to begin soonOn track for 2020 targets: $630M revenue & $0.80 EPS Q2 2019 Summary 3 Successfully repositioned the business; China investments driving long-term, profitable growth

$M (except EPS) Q219 Q119 Q/Q Q218 Y/Y Revenue $ 131.6 $ 124.7 6% $ 130.8 1% Gross Profit $ 26.0 $ 26.1 ─ $ 32.8 (21%) Gross Margin 19.8% 20.9% (110 bps) 25.1% (530 bps) Operating Income $ 9.2 $ 8.0 14% $ 15.4 (40%) Operating Margin 7.0% 6.5% 50 bps 11.7% (470 bps) Other income $ 3.9 $ 1.1 $ 2.8 $ 3.3 $ 0.6 Income tax $ 3.3 $ 1.4 $ 1.9 $ 3.5 ($ 0.2) Minority interest $ 1.4 $ 2.5 ($ 1.1) $ 4.5 ($ 3.2) Net Income* $ 8.5 $ 5.3 61% $ 10.7 (20%) Diluted EPS* $ 0.13 $ 0.08 $ 0.05 $ 0.15 ($ 0.02) Days in quarter 91 88 3 91 - Gross margin lower on China startupOperating expense down due primarily to completion of certain IC qualification activityChina startup activity was $4.1M negative impact to operating incomeOther income primarily attributable to FX gainMinority interest reflects Taiwan gain partially offset by China loss Income Statement Summary 4 *Net income attributable to Photronics, Inc. shareholders

Revenue grew Q/Q on high-end memory recoveryChina revenue +21% Q/Q; +68% Y/YRepresents 18% of Q219 IC revenueNew long-term purchase agreement increases sustainability of China businessOutlookExpect stable to improving high-end demandInitial shipments planned from Xiamen $M Q219 Q119 Q/Q Q218 Y/Y High-End* $ 38.4 $ 34.6 11% $ 41.5 (7%) Mainstream $ 60.2 $ 60.3 ─ $ 60.8 (1%) Total $ 98.6 $ 94.9 4% $ 102.3 (4%) IC Photomask Revenue 5 *28nm and smaller Total may differ due to rounding

High-end driven by growth in AMOLED for mobile displaysDemand for mobile LTPS LCD displays remains strong; drives Q/Q mainstream growthChina revenue +20% Q/Q; +58% Y/YRepresents 47% of Q219 FPD revenueShipped first G10.5+ plate from HefeiOutlookAMOLED technology remains in high demandPlan to increase Hefei shipments $M Q219 Q119 Q/Q Q218 Y/Y High-End* $ 23.0 $ 21.5 7% $ 18.2 26% Mainstream $ 10.0 $ 8.4 20% $ 10.3 (2%) Total $ 33.0 $ 29.8 11% $ 28.5 16% FPD Photomask Revenue 6 *≥G8 and AMOLED Total may differ due to rounding

$M Q219 Q119 Q218 Cash $ 167 $ 232 $ 321 Debt $ 36 $ 86 $ 59 Net Cash* $ 131 $ 146 $ 262 Operating Cash Flow $ 17 ($ 19) $ 7 Capital Expenditures $ 34 $ 107 $ 33 Share repurchase - $ 11 - LTM EBITDA $ 148 $ 156 $ 138 Deploying cash balance to fund China investmentsYTD capex $140M; still anticipate FY capex ~ $210MReduced debt and dilutive share count with repayment of $57.5M convertible; remaining debt is local China borrowingBalance sheet able to fund planned investments, strategic M&A opportunities, and potential share repurchases Select Financial Data 7 *Net cash defined as cash and cash equivalents less long-term borrowings (including current portion), as reported in accordance with GAAP

Revenue ($M) $132 - $142 Taxes ($M) $2 - $3 EPS $0.05 - $0.14 Diluted Shares (M) ~66 Anticipate sequential growth in Q3High-end IC markets stable to improvingLegacy FPD expected to remain at capacity with Hefei ramping productionPotential macro headwind & impact from trade policyExpect margin headwinds from China startupAnticipate Q319 EPS impact of $0.03 - $0.06Plan to be profitable in China by end of 2019 Q319 Guidance 8

Thank you for your interest! For Additional Information:R. Troy Dewar, CFAVice President, Investor Relations203.740.5610tdewar@photronics.com

Appendix

IC Photomask Revenue 11 Mainstream$253.1M61% High-End$158.5M39% High-End: 28nm and smaller; total may differ due to rounding Mainstream$255.7M61% High-End$160.3M39%

FPD Photomask Revenue 12 Mainstream$42.3M34% High-End$83.5M66% High-End: ≥G8 and AMOLED; total may differ due to rounding Mainstream$43.1M36% High-End$76.1M64%

Non-GAAP Reconciliation

14