Applied Materials, Inc. · NASDAQ:AMAT
Applied Materials — Q1 2022 Earnings Presentation
18 slides from Applied Materials's earnings presentation, Feb 16, 2022
Slide 1: First Quarter Fiscal 2022 Earnings Presentation
First Quarter Fiscal 2022 Earnings Presentation February 16, 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 $2.5 billion ~28,500* $24.2 billion ~15,700** TTM R&D employees TTM REVENUE INVESTMENTS active
Slide 4: Strong and Growing Demand, Constrained Supply
Q1F22 Summary Market Outlook Longer Term Revenue and EPS Customers investing to Digital transformation of in upper end of support secular industry the economy built upon guidance range growth semiconductors Record orders, backlog 2021 WFE: Semi and equipment and revenue Mid-$80B range markets growin
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: PPACt Enabled by Key Inflections
ENABLED BY KEY INFLECTIONS ▪ New ASICs and accelerators New architectures ▪ New memory / in-memory compute ▪ Specialty, CIS, power PERFORMANCE ▪ GAA transistors New structures / 3D ▪ Backside power distribution ▪ 3D NAND, 3D DRAM ▪ Gate New materials ▪ Contact ▪ Interconnect PPACt ▪ EUV enablement N
Slide 7: Q1F22 Non-GAAP Financial Results
Q1F22 Non-GAAP Financial Results $M, except EPS Q1F21 Q4F21 Q1F22 Y/Y Q/Q Revenue 5,162 6,123 6,271 21% 2% Gross Margin* 45.9% 48.2% 47.3% 140bps (90bps) Operating Income* 1,496 2,029 1,985 33% (2%) EPS* $1.39 $1.94 $1.89 36% (3%) Operating Cash Flow 1,421 1,148 2,658 87% 132% Free Cash Flow** 1,300
Slide 8: Q1F22 Segment Results
Q1F22 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 39% 40% 40% 39% 29% 30% 31% 31% 31% 23% 36% 21% 21% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 18% 18% 1,369 1,320 4,567 1,286 4,454 4,307 1,203 1,155 3,972 3,553 431
Slide 9: Liquidity and Uses of Capital
Liquidity and Uses of Capital CASH AND INVESTMENTS ($M) Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Cash and cash equivalents 6,213 6,305 6,066 4,995 5,264 Short-term investments 410 460 444 464 473 Long-term investments 1,601 1,569 1,658 2,055 2,026 Total cash and investments 8,224 8,334 8,168 7,514 7,763 Long-t
Slide 10: Business Outlook
Business Outlook Total Revenue ~$6.35B ± $300M SECOND OUTLOOK* Non-GAAP EPS ~$1.90 ± $0.15 QUARTER Fiscal 2022 Semiconductor Systems ~$4.60B SEGMENT Applied Global Services ~$1.35B REVENUE Display and Adjacent Markets ~$380M Non-GAAP Gross Margin ~47.0% OTHER Non-GAAP Operating Expenses ~$1.02B Non-
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 12 |
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 Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 2,349 $ 2,653 $ 2,967 $ 2,945 $ 2,959 Certain items associated with acquisitions 1 8 7 6 6 6 Certain incr
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 Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Non-GAAP Adjusted Earnings Per Diluted Share Reported earnings per diluted share - GAAP basis $ 1.22 $ 1.43 $ 1.87 $ 1.89 $ 2.00 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 Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 1,261 $ 1,542 $ 1,785 $ 1,723 $ 1,771 Certain items associated wit
Slide 18: Make Possible
Cll arenas. make possible