Applied Materials, Inc. · NASDAQ:AMAT
Applied Materials — Q2 2022 Earnings Presentation
18 slides from Applied Materials's earnings presentation, May 19, 2022
Slide 1: Second Quarter Fiscal 2022 Earnings Presentation
Second Quarter Fiscal 2022 Earnings Presentation May 19, 2022 Applied Materials External
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, ou
Slide 3: Applied Materials At-A-Glance
APPLIED MATERIALS AT-A-GLANCE REPORTING SEGMENTS FOUNDED Semiconductor Systems CURRENT FISCAL 1967 YEAR ENDS FIRST PUBLIC Applied Global Services 30 October 2022 OFFERING Display and Adjacent Markets 1972 $2.6 billion ~30,100* $24.8 billion ~15,700** TTM R&D employees TTM REVENUE INVESTMENTS active
Slide 4: Strong and Growing Demand, Constrained Supply
Q2F22 Summary Market Outlook Longer Term Revenue and EPS up 2022 WFE: Unconstrained Digital transformation of double digits Y/Y demand is $100B or more the economy built upon semiconductors Strong orders and Customers are providing growing backlog longer-term and more Semi and equipment detailed vis
Slide 5: Investment Thesis
Investment Thesis Market Outlook = Innovation and Secular Growth Applied = PPACt Enablement Company Synergistic Unit process Unique Actionable insight / Subscription materials leadership and combinations time to market revenue engineering broadest portfolio of technologies acceleration growth busine
Slide 6: Applied has broadest portfolio of products and technologies to accelerate new PPACt playbook
ENABLED BY KEY INFLECTIONS ▪ New ASICs and accelerators New architectures ▪ New memory / in-memory compute ▪ Specialty, CIS, power ▪ GAA transistors New structures / 3D ▪ Backside power distribution ▪ 3D NAND, 3D DRAM ▪ Gate New materials ▪ Contact ▪ Interconnect ▪ EUV enablement New ways to shrink
Slide 7: Q2F22 Non-GAAP Financial Results
Q2F22 Non-GAAP Financial Results $M, except EPS Q2F21 Q1F22 Q2F22 Y/Y Q/Q Revenue 5,582 6,271 6,245 12% 0% Gross Margin* 47.7% 47.3% 47.0% (70bps) (30bps) Operating Income* 1,768 1,985 1,913 8% (4%) EPS* $1.63 $1.89 $1.85 13% (2%) Operating Cash Flow 1,187 2,658 415 (65%) (84%) Free Cash Flow** 983
Slide 8: Q2F22 Segment Results
Q2F22 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 39% 40% 40% 39% 30% 31% 31% 31% 31% 23% 37% 21% 21% 22% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 1,383 1,369 18% 1,320 4,567 1,286 4,458 4,454 4,307 1,203 3,972 431
Slide 9: Liquidity and Uses of Capital
Liquidity and Uses of Capital CASH AND INVESTMENTS ($M) Q2F21 Q3F21 Q4F21 Q1F22 Q2F22 Cash and cash equivalents 6,305 6,066 4,995 5,264 3,331 Short-term investments 460 444 464 473 591 Long-term investments 1,569 1,658 2,055 2,026 2,102 Total cash and investments 8,334 8,168 7,514 7,763 6,024 Long-t
Slide 10: Business Outlook
Business Outlook Total Revenue ~$6.25B ± $400M THIRD OUTLOOK* Non-GAAP EPS ~$1.77 ± $0.18 QUARTER Fiscal 2022 Semiconductor Systems ~$4.48B SEGMENT Applied Global Services ~$1.43B REVENUE Display and Adjacent Markets ~$310M Non-GAAP Gross Margin ~46.0% OTHER Non-GAAP Operating Expenses ~$1.06B Non-G
Slide 11: 10-Yr Roadmap | Environmental and Social Responsibility
10-Yr Roadmap | Environmental and Social Responsibility APPLIED’S SEMI INDUSTRY’S GLOBAL OPERATIONS OPERATIONS ELECTRONICS 1x 100x 10,000x On-track for Significant momentum PPACt engagements across 100% renewable energy and broad engagement ecosystem focus on energy-efficient in US by 2022 and with
Slide 12: Additional Resources
Additional Resources Investor Relations Home Page LINK Latest News LINK Blog: Ideas, Actions & Technologies LINK 2021 Investor Meeting LINK 2021 Memory Master Class LINK 2021 Logic Master Class LINK 2021 ICAPS and Packaging Master Class LINK 2021 Process Control and AppliedPRO Master Class LINK 2022
Slide 13: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 13 | Applied Materials External
Slide 14: Use of Non-GAAP Adjusted Financial Measures
Use of Non-GAAP Adjusted Financial Measures Applied provides investors with certain non-GAAP adjusted financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges a
Slide 15: Unaudited QTD Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QTD RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGE Q2F21 Q3F21 Q4F21 Q1F22 Q2F22 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 2,653 $ 2,967 $ 2,945 $ 2,959 $ 2,927 Certain items associated with acquisitions 1 7 6 6 6 7 Other charge
Slide 16: Unaudited QTD Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QTD RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT EPS Q2F21 Q3F21 Q4F21 Q1F22 Q2F22 Non-GAAP Adjusted Earnings Per Diluted Share Reported earnings per diluted share - GAAP basis $ 1.43 $ 1.87 $ 1.89 $ 2.00 $ 1.74 Certain items associated with acquisitions 0.01 0.0
Slide 17: Unaudited QTD Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED QTD RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGE Q2F21 Q3F21 Q4F21 Q1F22 Q2F22 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 1,542 $ 1,785 $ 1,723 $ 1,771 $ 1,648 Certain items associated wit
Slide 18: Cll arenas.
Cll arenas. make possible