EX-99.5 6 brhc10034340_ex99-5.htm EXHIBIT 99.5

Exhibit 99.5
Q1 2022 Financial Results Conference CallFebruary 23, 2022 Photronics, Inc.

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 documents the Company files from time to time 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. These certain factors can be found at www.photronics.com/riskfactors. 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. 2/23/2022 2

Net income attributable to Photronics, Inc. shareholders of $23.1M ($0.38/share)Updating long-term target model based upon improving performance and positive demand outlookInvesting in mainstream IC capacity to capitalize on market growth trends IC (+3% Q/Q, +24% Y/Y) and FPD (+8% Q/Q, +27% Y/Y) both achieved record revenueRecord revenue to China, up 6% Q/Q and 69% Y/Y Strategic investments driving long-term, profitable growth $59M generated from operating activity$19M invested in capex$3M returned to investors through share repurchases Cash balance $314M Revenue was a record $189.8M up 5%Q/Q up 25%Y/Y 2/23/2022 3 Q1 2022 Summary

Investment Strategy Revenue GrowthWin lion’s share of “Made in China 2025” TAM growthSupplement new factories with point tool investmentsCapitalize on technology leadership in AMOLED to continue improving mixLeverage global footprint to exploit growth in “legacy foundry” businessMargin ExpansionSustained pricing strength in mainstream IC going into 2022Optimize asset tool set to match end-market demandIncreasing benefit from operating leverageExplore Strategic PartnershipsTargeting partnerships that extend market leadership positionBuilding on successful history of M&A and joint ventures 2/23/2022 4

Growth in Legacy Foundry = Dynamic Mainstream Mask Market Rebirth of the ASIC mask marketMoore’s law inefficient for many applicationsMask intensity higher than over-all semiconductor marketIndustry demand exceeds supplyDelivery times expanding from days to monthsWe are investing in incremental capacity to meet customer demandLow industry capacity creating pricing leverageDouble digit increases implemented in Taiwan and ChinaActively raising prices in Europe and Korea 2/23/2022 5

Delivering on Commitments and Updating Target Model $M (except EPS) 2019 2020 2021 Q1 2022 LTM Illustrative Target Model 2-Year Horizon Revenue $551 $610 $664 $702 $7759% CAGR $80010% CAGR $85011% CAGR Gross Margin 22% 22% 25% 28% 31-33% 32-34% 34-36% Operating Margin 9% 10% 14% 17% 20-22% 22-24% 24-26% Operating Cash Flow $68 $143 $151 $184 $225-250 $260-275 $290-300 Free Cash Flow* ($83) $77 $47 $78 $125-150 $160-175 $190-200 Diluted EPS $0.44 $0.52 $0.89 $1.14 $1.40-1.45 $1.55-1.65 $1.90-2.00 2/23/2022 6 *Free Cash Flow is a non-GAAP term which represents Operating Cash Flow less Capital Expenditures, which are reported under GAAP

Income Statement Summary $M (except EPS) Q122 Q421 Q/Q Q121 Y/Y Revenue $ 189.8 $ 181.3 5% $ 152.1 25% Gross Profit $ 59.9 $ 51.9 15% $ 30.5 96% Gross Margin 31.5% 28.7% 280 bps 20.1% 1,140 bps Operating Income $ 38.2 $ 33.5 14% $ 11.8 225% Operating Margin 20.1% 18.5% 160 bps 7.7% 1,240 bps Other non-operating income (expense) $ 4.7 $ 3.8 $ 0.9 $ 0.7 $ 4.0 Income tax provision $ 11.2 $ 8.7 $ 2.5 $ 2.9 $ 8.2 Minority interest $ 8.7 $ 8.8 ($ 0.2) $ 1.5 $ 7.2 Net income* $ 23.1 $ 19.8 16% $ 8.0 187% Diluted EPS* $ 0.38 $ 0.33 $ 0.05 $ 0.13 $ 0.25 Days in quarter 91 91 - 92 (1) Margins improved on leverage from higher revenue (IC & FPD) and better mainstream IC pricingOther non-operating income (expense) primarily due to FX gain (loss)Minority interest is IC JVs in Taiwan and China 2/23/2022 7 *Net income attributable to Photronics, Inc. shareholders

$M Q122 Q421 Q/Q Q121 Y/Y High-End* $ 46.5 $ 42.6 9% $ 36.8 27% Mainstream $ 83.2 $ 82.9 1% $ 68.2 22% Total $ 129.8 $ 125.4 3% $ 105.0 24% IC Photomask Revenue 2/23/2022 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 ASPsNew capacity coming online end of Q2 *28nm and smaller Total may differ due to rounding 8

FPD Photomask Revenue 2/23/2022 High-end demand improving for mobile AMOLED and G10.5+Mainstream recovery continues, with slight Q/Q decline due to capacity dedicated to high-end productsOutlookDynamic market environmentMobile demand strength and mainstream LCD recovery expected to continueTechnology development drives demand for higher-value masks *≥G10.5, AMOLED and LTPS $M Q122 Q421 Q/Q Q121 Y/Y High-End* $ 46.3 $ 41.0 13% $ 34.6 34% Mainstream $ 13.8 $ 14.9 (7%) $ 12.5 11% Total $ 60.1 $ 55.8 8% $ 47.1 27% Total may differ due to rounding 9

Select Financial Data $M Q122 Q421 Q121 Cash $ 314 $ 277 $ 279 Debt $ 97 $ 112 $ 102 Net Cash* $ 217 $ 165 $ 177 Operating Cash Flow $ 59 $ 38 $ 26 Capital Expenditures $ 19 $ 17 $ 18 Share repurchase $ 3 $ 13 $ 13 Debt is US equipment lease and local China loansTotal share repurchases of $68M under current (Sep 2020) $100M planCapex mostly mainstream IC capacity & facility expansionBalance sheet able to fund investments, share repurchases, and strategic M&A opportunities 2/23/2022 *Net cash defined as cash and cash equivalents less long-term borrowings (including current portion), as reported in accordance with GAAP 10

Q2 22 Guidance Revenue ($M) $188 - $196 Operating Margin 20% - 22% Taxes ($M) $9 - $10 Diluted EPS $0.32 - $0.38 Diluted Shares (M) ~61 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 flows 2/23/2022 11

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

Appendix

Total Revenue 2/23/2022 14 IC FPD Total may differ due to rounding

IC Photomask Revenue 2/23/2022 15 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding

FPD Photomask Revenue 2/23/2022 16 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; total may differ due to rounding

Non-GAAP Financial Measures 2/23/2022 17

Non-GAAP Financial Measures 2/23/2022 18