EX-99.5 6 brhc10031620_ex99-5.htm EXHIBIT 99.5

Exhibit 99.5
Q4 2021 Financial Results Conference CallDecember 8, 2021 Photronics, Inc.

Safe Harbor Statement 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. 12/8/2021 2

2021 Summary Revenue was a record $663.8M, up 9%IC and FPD both achieved record revenue, up 10% and 6%, respectivelyRecord revenue to China, up 20%Net income attributable to Photronics, Inc. shareholders of $55.4M ($0.89/share)Cash balance $277M100% of free cash flow returned to investors through share repurchases$151M generated from operating activity$109M invested in capex ($103M net of government incentives)Completed FPD capacity expansion ahead of schedule 12/8/2021 3 Another year with record revenue and improved performance in a challenging environment

Q4 2021 Summary Revenue was a record $181.3M, up 6% Q/Q and 21% Y/YIC (+7% Q/Q, +18% Y/Y) and FPD (+6% Q/Q, +29% Y/Y) both achieved record revenueRecord revenue to China, up 26% Q/Q and 55% Y/YNet income attributable to Photronics, Inc. shareholders of $19.8M ($0.33/share)Cash balance $277M$38M generated from operating activity$17M invested in capex$13M returned to investors through share repurchasesInvesting in mainstream IC capacity to capitalize on market growth trendsReceived 2021 UMC Excellent Collaboration and Partnership Award 12/8/2021 4 Strategic investments driving long-term, profitable growth

Next phase of investment strategy Revenue growthWin lion’s share of “Made in China 2025” TAM growthSupplement new factories with point tool investmentsCapture captive outsourcing opportunity created by EUVCapitalize on technology leadership in AMOLED to continue improving mixMargin expansionSustained pricing strength in mainstream IC going into 2022Optimize asset tool set to match end-market demandIncreasing benefit from operating leverageExplore strategic partnerships 12/8/2021 5

Illustrative Target Model $M (except EPS) 2019 2020 2021 12/2020 Illustrative FY2023 Target Model Revenue $551 $610 $664 $7005% CAGR $7256% CAGR $7507% CAGR Gross Margin 22% 22% 25% 24-26% 26-28% 27-29% Operating Margin 9% 10% 14% 13-15% 15-17% 17-19% Operating Cash Flow $68 $143 $151 $150-160 $160-170 $175-185 Free Cash Flow ($83) $77 $47 $80-90 $90-100 $100-110 EPS $0.44 $0.52 $0.89 $1.00-1.05 $1.15-1.25 $1.25-1.35 12/8/2021 6

Income Statement Summary $M (except EPS) Q421 Q321 Q/Q Q420 Y/Y Revenue $ 181.3 $ 170.6 6% $ 149.3 21% Gross Profit $ 51.9 $ 45.3 15% $ 31.9 63% Gross Margin 28.7% 26.6% 210 bps 21.4% 730 bps Operating Income $ 33.5 $ 28.5 18% $ 15.0 124% Operating Margin 18.5% 16.7% 180 bps 10.0% 850 bps Other non-operating income (expense) $ 3.8 $ 3.7 $ 0.1 ($ 2.9) $ 6.7 Income tax provision $ 8.7 $ 7.8 $ 0.9 $ 3.5 $ 5.2 Minority interest $ 8.8 $ 7.3 $ 1.5 $ 2.1 $ 6.7 Net Income* $ 19.8 $ 17.1 16% $ 6.5 207% Diluted EPS* $ 0.33 $ 0.28 $ 0.05 $ 0.10 $ 0.23 Days in quarter 91 91 - 90 1 Margins improved on higher revenue (IC & FPD), better mainstream IC pricing and high-end mixAsia price increases already in placeRolling out price increases in other marketsQ321 operating income includes $3.5M gain on sale of fixed assetOther non-operating income (expense) primarily due to FX gain (loss)Minority interest is IC JVs in Taiwan and China 12/8/2021 7 *Net income attributable to Photronics, Inc. shareholders

$M Q421 Q321 Q/Q Q420 Y/Y High-End* $ 42.6 $ 42.4 1% $ 38.2 12% Mainstream $ 82.9 $ 75.4 10% $ 67.8 22% Total $ 125.4 $ 117.8 7% $ 105.9 18% IC Photomask Revenue 12/8/2021 8 High-end growth driven by strong logic demand in AsiaMainstream up on proliferation of chips in IoT, 5G, Crypto and consumer products creating support for higher ASPsOutlookContinued strength from remote work and educationMainstream demand strong, expanding ASPs *28nm and smaller Total may differ due to rounding

FPD Photomask Revenue 12/8/2021 9 High-end improved on mobile demandMainstream recovery continues Full quarter benefit of new litho toolsOutlookDynamic market environmentMobile demand strength and mainstream LCD recovery expected to continueTechnology development drives demand for higher-value masks *≥G10.5, AMOLED and LTPS $M Q421 Q321 Q/Q Q420 Y/Y High-End* $ 41.0 $ 40.6 1% $ 31.3 31% Mainstream $ 14.9 $ 12.2 21% $ 12.1 23% Total $ 55.8 $ 52.9 6% $ 43.4 29% Total may differ due to rounding

Select Financial Data $M Q421 Q321 Q420 Cash $ 277 $ 283 $ 279 Debt $ 112 $ 118 $ 69 Net Cash* $ 165 $ 165 $ 210 Operating Cash Flow $ 38 $ 55 $ 65 Capital Expenditures $ 17 $ 19 $ 34 Share repurchase $ 13 $ 13 $ 18 Debt is US equipment lease and local China loansFull-year net 2021 capex was $104MTotal share repurchases of $66M under current (Sep 2020) $100M planBalance sheet able to fund investments, share repurchases, and strategic M&A opportunities 12/8/2021 10 *Net cash defined as cash and cash equivalents less long-term borrowings (including current portion), as reported in accordance with GAAP

Q122 Guidance Revenue ($M) $178 - $186 Operating Margin 18% - 20% Taxes ($M) $9 - $10 EPS $0.27 - $0.34 Diluted Shares (M) ~60 Full-year Capex (M) ~$100 Incorporation of chips in IoT, 5G, Crypto and consumer products Remote work and learningAdvanced display technologiesGrowing nationalism spurs investmentOutlook clouded by geopolitical uncertainty and supply chain challengesDriving margin expansion and improved cash flowsCapex mostly mainstream IC capacity & facility expansion 12/8/2021 11

For Additional Information:John P. JordanExecutive Vice President & CFO203.740.5671jjordan@photronics.com Thank you for your interest!

Appendix

Total Revenue 12/8/2021 14 IC FPD Total may differ due to rounding

IC Photomask Revenue 12/8/2021 15 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding

FPD Photomask Revenue 12/8/2021 16 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; total may differ due to rounding