EX-99.5 6 ex99_5.htm EXHIBIT 99.5

Exhibit 99.5
Photronics, Inc. Q4 2019 Financial Results Conference CallDecember 11, 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”, “in our view” 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.

Record revenue, up 13% Q/Q and 8% Y/YRecord FPD revenue driven by mobile displays and Hefei production rampRecord IC revenue as China design activity acceleratesRecord revenue of products shipped to China, representing 33% of total revenueOperating margin expanded to 13.7% on operating leverage and cost controlNet income attributable to Photronics, Inc. shareholders of $9.7M ($0.15/share)Cash balance grew to $207M on strong operating cash flowRepurchased 1.0M shares for $11MChina production contributed $11M to revenue Q4 2019 Summary 3 Successfully repositioned the business; China investments driving long-term, profitable growth

$M (except EPS) Q419 Q319 Q/Q Q418 Y/Y Revenue $ 156.3 $ 138.1 13% $ 144.7 8% Gross Profit $ 38.2 $ 30.6 25% $ 35.4 8% Gross Margin 24.4% 22.1% 230 bps 24.5% (10 bps) Operating Income $ 21.5 $ 13.4 60% $ 18.0 19% Operating Margin 13.7% 9.7% 400 bps 12.5% 120 bps Other income (expense) ($ 6.1) ($ 0.3) ($ 5.8) $ 2.3 ($ 8.4) Income tax provision $ 2.3 $ 3.2 ($ 0.9) $ 3.6 ($ 1.2) Minority interest $ 3.3 $ 3.5 ($ 0.1) $ 4.3 ($ 0.9) Net Income* $ 9.7 $ 6.3 53% $ 12.5 (22%) Diluted EPS* $ 0.15 $ 0.10 $ 0.05 $ 0.18 ($ 0.03) Days in quarter 95 91 4 94 1 Gross and operating margin improved Q/Q on revenue growth, operating leverage and cost controlsChina operations were $4.1M negative impact to operating incomeOther income/expense primarily attributable to FX gain/lossMinority interest reflects Taiwan JV gain partially offset by China JV loss Income Statement Summary 4 *Net income attributable to Photronics, Inc. shareholders

Revenue grew with increase in broad-based design activityChina revenue rebounded as firms accelerate product development+72% Q/Q; +32% Y/YRepresents 22% of Q419 IC revenueOutlookExpect stable to improving high-end demandAnticipate production ramping in XiamenPotential impact from US-China trade discussionsSeasonal headwinds $M Q419 Q319 Q/Q Q418 Y/Y High-End* $ 45.0 $ 38.5 17% $ 39.4 14% Mainstream $ 67.6 $ 61.7 9% $ 71.4 (5%) Total $ 112.5 $ 100.2 12% $ 110.9 1% IC Photomask Revenue 5 *28nm and smaller Total may differ due to rounding

Record FPD revenue driven by mobile displays and China production ramp, including G10.5+China revenue +32% Q/Q; +118% Y/YRepresents 61% of Q419 FPD revenueOutlookMobile display demand expected to remain highLCD industry downturn continuesHefei shipments should continue to ramp $M Q419 Q319 Q/Q Q418 Y/Y High-End* $ 28.5 $ 25.9 10% $ 22.0 29% Mainstream $ 15.2 $ 12.0 27% $ 11.8 30% Total $ 43.7 $ 37.9 15% $ 33.8 29% FPD Photomask Revenue 6 *≥G8 and AMOLED Total may differ due to rounding

$M Q419 Q319 Q418 Cash $ 207 $ 197 $ 329 Debt $ 53 $ 49 $ 57 Net Cash* $ 154 $ 148 $ 272 Operating Cash Flow $ 48 $ 26 $ 44 Capital Expenditures $ 17 $ 20 $ 28 Share repurchase $ 11 - $ 16 Deploying cash balance to fund China investmentsDebt is local China borrowing to finance fixed assetsFY 2019 capex $177M; anticipate FY 2020 capex ~ $100M (includes 2019 carryover)Repurchased 1.0M shares for $11M (YTD 2.1M shares for $22M)Balance sheet able to fund planned investments, share repurchases, and strategic M&A opportunities 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) $146 - $154 Operating Margin 10% - 13% Taxes ($M) $3.5 - $4.5 EPS $0.13 - $0.18 Diluted Shares (M) ~66 FPD demand growing (AMOLED, G10.5+)High-end IC markets stable to improvingRamping China production (IC & FPD)Potential geopolitical headwindTypical seasonal softness in US and Europe, plus additional impact from Chinese New Year Q120 Guidance 8

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

Appendix

Total Revenue 11 IC FPD

IC Photomask Revenue 12 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding

FPD Photomask Revenue 13 Mainstream High-End High-End: ≥G8 and AMOLED; total may differ due to rounding