EX-99.5 6 brhc10038074_ex99-5.htm EXHIBIT 99.5

Exhibit 99.5
Q2 2022 Financial Results Conference Call May 25, 2022 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. 5/25/2022 2

Net income attributable to Photronics, Inc. shareholders of $29.8M ($0.49/share) Appointment of Frank Lee as CEO; 42+ years industry experience; 16+ years with PLAB Investing in mainstream IC capacity to capitalize on market growth trends IC: +12% Q/Q, +30% Y/Y FPD: -2% Q/Q, +23% Y/Y To China: +8% Q/Q; +58% Y/Y Committed to driving long-term, profitable growth through strategic investments $44M generated from operating activity $16M invested in capex $10M contribution from JV partner Cash balance $329M Revenue was a record $204.5M up 8%Q/Q up 28%Y/Y 5/25/2022 3 Q2 2022 Summary

Investment Strategy Revenue Growth Win lion’s share of “Made in China 2025” TAM growth Supplement new factories with point tool investments Capitalize on technology leadership in AMOLED to continue improving mix Leverage global footprint to exploit growth in “legacy foundry” business Margin Expansion Sustained pricing strength in mainstream IC Optimize asset tool set to match end-market demand Increasing benefit from operating leverage Explore Strategic Partnerships Targeting partnerships that extend market leadership position Building on successful history of M&A and joint ventures 5/25/2022 4

Delivering on Updated Target Model 5/25/2022 5 *Free Cash Flow is a non-GAAP term; see reconciliation included in this presentation

Income Statement Summary $M (except EPS) Q222 Q122 Q/Q Q221 Y/Y Revenue $ 204.5 $ 189.8 8% $ 159.8 28% Gross Profit $ 72.9 $ 59.9 22% $ 39.2 86% Gross Margin 35.7% 31.5% 420 bps 24.6% 1,110 bps Operating Income $ 52.1 $ 38.2 36% $ 20.8 150% Operating Margin 25.5% 20.1% 540 bps 13.0% 1,250 bps Other non-operating income (expense) $ 8.0 $ 4.7 $ 3.3 ($ 0.8) $ 8.8 Income tax provision $ 14.7 $ 11.2 $ 3.5 $ 3.7 $ 11.0 Minority interest $ 15.6 $ 8.7 $ 6.9 $ 5.8 $ 9.8 Net income* $ 29.8 $ 23.1 29% $ 10.5 184% Diluted EPS* $ 0.49 $ 0.38 $ 0.11 $ 0.17 $ 0.32 Days in quarter 91 91 - 91 - Margins improved on operating leverage, disciplined cost management, and IC price realization Other non-operating income/expense primarily due to unrealized FX gain/loss Minority interest from IC JVs in Taiwan and China 5/25/2022 6 *Net income attributable to Photronics, Inc. shareholders

$M Q222 Q122 Q/Q Q221 Y/Y High-End* $ 51.4 $ 46.5 10% $ 41.3 24% Mainstream $ 94.4 $ 83.2 13% $ 70.7 34% Total $ 145.8 $ 129.8 12% $ 112.0 30% IC Photomask Revenue 5/25/2022 High-end growth driven by strong demand in Asia and US and higher price Continued mainstream growth from chip proliferation in consumer products, IoT, 5G, and Crypto supporting higher ASPs Outlook Continued strength from remote work and education Regionalization driving investments for global chip capacity Mainstream demand strong, expanding ASPs *28nm and smaller Total may differ due to rounding 7

FPD Photomask Revenue 5/25/2022 High-end demand up Q/Q as mobile growth offset soft G10.5+ Mainstream demand remains solid, with Q/Q decline associated with Chinese New Year holiday Outlook Dynamic market environment Mobile demand strength and mainstream LCD recovery expected to continue Technology development drives demand for higher-value masks *≥G10.5, AMOLED and LTPS $M Q222 Q122 Q/Q Q221 Y/Y High-End* $ 46.6 $ 46.3 1% $ 39.4 18% Mainstream $ 12.1 $ 13.8 (12%) $ 8.4 45% Total $ 58.7 $ 60.1 (2%) $ 47.8 23% Total may differ due to rounding 8

Select Financial Data $M Q222 Q122 Q221 Cash $ 329 $ 314 $ 256 Debt $ 83 $ 97 $ 114 Net Cash* $ 247 $ 217 $ 142 Operating Cash Flow $ 44 $ 59 $ 32 Capital Expenditures $ 16 $ 19 $ 56 Share repurchase - $ 3 $ 10 Debt is US equipment lease and local China loans; reduced debt $29M YTD Capex mostly mainstream IC capacity & facility expansion Balance sheet able to fund investments, share repurchases, and strategic M&A opportunities Total share repurchases of $68M under current (Sep 2020) $100M plan 5/25/2022 *Net cash defined is a non-GAAP term; see reconciliation included in this presentation 9

Q3 2022 Guidance Revenue ($M) $205 - $215 Operating Margin 27% - 29% Taxes ($M) $13 - $15 Diluted EPS $0.45 - $0.55 Diluted Shares (M) ~61 Full-year Capex (M) ~$100 Incorporation of chips in IoT, 5G, Crypto and consumer products Remote work and learning Advanced display technologies Growing nationalism spurs investment Outlook clouded by geopolitical uncertainty, rising inflation and supply chain challenges Driving margin expansion and improved cash flows to hit long-term target model 5/25/2022 10

For Additional Information: John P. Jordan Executive Vice President & CFO 203.740.5671 jjordan@photronics.com Thank you for your interest!

Appendix

Total Revenue 5/25/2022 13 IC FPD Total may differ due to rounding

IC Photomask Revenue 5/25/2022 14 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding

FPD Photomask Revenue 5/25/2022 15 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; total may differ due to rounding

Non-GAAP Financial Measures 2/23/2022 16