EX-99.7 8 brhc20053410_ex99-7.htm EXHIBIT 99.7

Exhibit 99.7
Q2 2023 Financial Results Conference Call May 24, 2023 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. 5/24/2023 2

Committed to driving long-term, profitable growth through strategic investments 5/24/2023 3 Q2 2023 Summary Strong demand trends across markets and regions as design activity remains high Net income* was $39.9M ($0.65/share); non-GAAP was $32.9M ($0.54/share) Investing in mainstream IC capacity to capitalize on market growth trends IC: +7% Q/Q, +15% Y/Y FPD: +14% Q/Q, +6% Y/Y Revenue was a record $229.3M +9%Q/Q +12%Y/Y $82M generated from operating activity $27M invested in capex $28M total debt Cash balance $367M $45M Short-term investments *Net income attributable to Photronics, Inc. shareholders

CEO: First Year Observations Photronics wins with… A dedicated team laser focused on customer service Leading edge technology and process know-how to deliver top-quality photomasks Great market position as the leading photomask merchant Strong balance sheet to fund growth that creates differentiatingCore Competencies 5/24/2023 4 Operational Excellence Commercial Excellence Technology Leader Core Values

Clear Strategy for Sustainable, Long-Term Profitable Growth 5/24/2023 5 Revenue Growth Win lion’s share of the growth in TAM for IC and FPD Supplement capacity with point tool investments and targeted expansions Capitalize on technology leadership in AMOLED to continue improving mix Leverage global footprint to exploit expansion of “legacy foundry” business Margin Expansion Improved pricing environment in high-end and mainstream IC Optimizing asset tool set to match end-market demand Increasing benefit from operating leverage Explore Strategic Partnerships Long-term Purchase Agreements Joint-ventures and strategic alliances

Delivering on Updated Target Model $M (except EPS) 2021 2022 Q2 2023 LTM Illustrative FY 24 Target Model Revenue $664 $825 $871 $900 $950 $975 Gross Margin 25% 36% 38% 38-40% 40-42% 42-43% Operating Margin 14% 26% 28% 28-30% 30-32% 32-33% Operating Cash Flow $151 $275 $282 $350-375 $365-380 $375-400 Free Cash Flow* $42 $163 $146 $250-275 $235-280 $275-300 Diluted EPS $0.89 $1.94 $1.99 $2.35-2.45 $2.50-2.55 $2.60-2.65 5/24/2023 6 *Free Cash Flow is a non-GAAP term; see reconciliation included in this presentation

Income Statement Summary GAAP Non-GAAP1 $M (except EPS) Q223 Q123 Q222 Q223 Q123 Q222 Revenue 229.3 211.1 204.5 Gross Profit 88.4 76.1 70.2 Gross Margin 38.6% 36.0% 34.3% Operating Income 67.0 56.0 49.4 Operating Margin 29.2% 26.5% 24.2% Non-operating income 13.6 (14.4) 8.0 2.9 2.5 0.2 Income tax provision 21.3 12.6 14.4 18.5 17.1 12.5 Minority interest 19.3 15.0 15.6 18.4 17.0 14.1 Net income2 39.9 14.0 27.4 32.9 24.4 23.1 Diluted EPS2 0.65 0.23 0.45 0.54 0.40 0.38 Days in quarter 91 90 91 5/24/2023 7 1See reconciliation included in this presentation 2Net income attributable to Photronics, Inc. shareholders Margins improved due to volume leverage, sustained better pricing, and improved mix GAAP Non-operating income primarily consists of unrealized FX gain/loss Q2 benefitted from a $28M FX tailwind Q/Q Non-GAAP presentation removes effect of FX gain/loss Minority interest reflects strong net income of IC JVs in Taiwan and China

$M Q223 Q123 Q/Q Q222 Y/Y High-End* $ 43.9 $ 48.0 (9%) $ 51.4 (14%) Mainstream $ 123.1 $ 108.6 13% $ 94.4 30% Total $ 167.1 $ 156.6 7% $145.8 15% IC Photomask Revenue 5/24/2023 High-end decreased on lower foundry/logic demand in Asia Mainstream demand resumed at a high level during the quarter Outlook New designs by customers to gain market share and support technology roadmap contributed to improved high-end orders toward end of the quarter Regionalization driving investments for global chip capacity ASPs continue to expand, reflecting the demand/supply balance *28nm and smaller Note: Totals may differ due to rounding 8

FPD Photomask Revenue 5/24/2023 High-end grew as mobile display sustained high AMOLED demand Mainstream expanded with additional write capacity. Outlook Technology development drives demand for higher-value masks Mobile demand is expected continue strong with rollout of new designs *≥G10.5, AMOLED and LTPS Note: Totals may differ due to rounding. $M Q223 Q123 Q/Q Q222 Y/Y High-End* $ 51.9 $ 45.7 14% $ 46.6 11% Mainstream $ 10.4 $ 8.8 18% $ 12.1 (14%) Total $ 62.3 $ 54.5 14% $ 58.7 6% 9

Select Financial Data $M Q223 Q123 Q222 Cash $ 367 $ 335 $ 329 Short-term Investments $ 45 $ 39 - Debt $ 28 $ 34 $ 83 Net Cash* $ 339 $ 301 $ 247 Operating Cash Flow $ 82 $ 28 $ 44 Capital Expenditures $ 27 $ 31 $ 16 Continued strong operating cash flow from income generation and working capital management Debt primarily comprised of US equipment leases Capex targets growth in IC capacity & facility expansion Balance sheet resilient to economic contraction and able to fund investments, share repurchases, and strategic opportunities 5/24/2023 10 *Net cash defined is a non-GAAP term; see reconciliation included in this presentation

Q3 2023 Guidance Revenue ($M) $224 - $234 Operating Margin 28% - 30% Taxes ($M) $15 - $17 Diluted non-GAAP EPS $0.48 - $0.54 Diluted Shares (M) ~61 Full-year Capex (M) ~$130 Incorporation of chips in IoT, 5G, Crypto and consumer products New designs to capture market share Advanced display technologies Outlook clouded by geopolitical uncertainty, macro-economic headwinds and supply chain challenges Driving margin expansion and cash flows to achieve long-term target model 5/24/2023 11

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

Appendix

Total Revenue ($M) 5/24/2023 14 IC FPD Total may differ due to rounding

IC Photomask Revenue ($M) 5/24/2023 15 Mainstream High-End High-End: 28nm and smaller; Total may differ due to rounding

FPD Photomask Revenue ($M) 5/24/2023 16 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; Total may differ due to rounding

Non-GAAP Financial Measures Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share, Free Cash Flow, LTM Free Cash Flow, and Net Cash are "non-GAAP financial measures" as such term is defined by the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our future on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not intended to represent funds available for our discretionary use and are not intended to represent, or be used as a substitute for, gross profit, operating income, net income, cash and cash equivalents, or cash flows from operations, as measured under GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated balance sheets and statement of cash flows and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations on the following pages. 5/24/2023 17

Non-GAAP Financial Measures 5/24/2023 18

Non-GAAP Financial Measures 5/24/2023 19