Photronics, Inc. · NASDAQ:PLAB
Photronics — Shareholder Meeting (March 2005)
21 slides from Photronics's shareholder meeting presentation, Mar 22, 2005
Slide 1: Annual Shareholders Meeting March 22, 2005
Annual Shareholders Meeting March 22, 2005
Slide 2: Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this presentation that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to d
Slide 3: What is a Photomask?
What is a Photomask? ¾ Photomasks, or reticles, are a critical enabling technology in the fabrication of high performance semiconductors, flat panel displays, and various Nanotechnology (i.e. – MEMS) applications ¾ Photomask demand is being driven by: • Integrated circuit design activity that emphas
Slide 4: Today's Business Environment
Today’s Business Environment ¾ Increased willingness to release 180nm node designs Technology, economics and time-to-market ¾ 130nm transition complete forces are driving global semiconductor ¾ 90nm demand accelerating – 65nm development companies to become continuing increasingly more selective in
Slide 5: Key Global Objectives
Key Global Objectives ¾ Differentiate from competitors through core values – TECHNOLOGY, SERVICE, SPEED & COST ¾ Consolidate high-end market share gains • 130nm – aggressive market penetration • 90nm – accelerate quals to match customer transitions • 65nm – improve timing and design win opportunity
Slide 6: Photronics' Global Network
Photronics’ Global Network Company Sites Under Construction
Slide 7: Key Regional Objectives
Key Regional Objectives ¾ North America: • Accelerate 90nm penetration • Leverage 65nm manufacturing line and early learning cycles • Gain market share at high-end and in mainstream technology nodes ¾ Europe: • Accelerate 90nm penetration • Mix and Match to support global customers • Gain market sha
Slide 8: Second Quarter Guidance
Second Quarter Guidance ¾ Revenue: • $102- $107 million ¾ EPS: • $0.17 - $0.22 ¾ Tax Rate: • $1.8mn to $2.3mn • 20% to 25% for FY05 ¾ 2005 Cap Ex: • $105 - $125 million
Slide 9: Photronics Financial Highlights
Photronics Financial Highlights ¾ Matching the infrastructure to the market opportunity • Intense focus on profitability across all levels of the organization ¾ Benefit from technology driven demand ¾ Multiple sources of margin leverage • Improving mix shift & stable pricing • Global presence ¾ Incr
Slide 10: Global Shift in Demand
Global Shift in Demand 2003 Q1 FY05 42% 41% 32% 50% 17% 2004 18% 33% North American Europe Asia 50% 17%
Slide 11: 5 Year Revenue Trend
5 Year Revenue Trend Revenues $M $400.0 $350.0 $300.0 $250.0 2000 2001 2002 2003 2004
Slide 12: Quarterly Revenue
Quarterly Revenue $M 105 $103.7 $104.2 100 $101.2 95 $97.1 90 $91.5 $90.5 $90.5 85 $85.5 80 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05
Slide 13: Operating Income
Operating Income Goal 20% 16% 16% 15% 12% 13% 11% 8% 9% 9% 8% 4% 1% 0% Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05
Slide 14: Strong Liquidity
Strong Liquidity Solid Financial Position $ in millions Q1-FY 05 January Fiscal Year 30, 2005 Ended 2004 Cash and Short Term Investments $149 $227 Working Capital $190 $255 Current Ratio 3.3:1 3.8:1 Total Assets $831 $873 Long Term Debt $273 $316 Equity $361 $349
Slide 15: Improving Balance Sheet
Improving Balance Sheet $ in millions FY ended 2004 2003 2002 Cash and Short Term Investments $227 $232 $129 Total Debt $319 $374 $307 Net Cash ($92) ($142) ($178) Working Capital $255 $259 $142
Slide 16: Cash Flow
Cash Flow $ in millions Q1- FY05 January 30, 2005 FY Ended 2004 Operations $27 $126 Capital Expenditures (18) (80) Free Cash Flow 9 46 Net Issuance of Convertible Debt - - Net Repayment of Debt (44) (55) Increased ownership in PKL (40) - Other, Net (3) 4 Increase/Decrease $(78) $(5) in Cash and Inve
Slide 17: Free Cash Flow – Rolling Four Quarters
Free Cash Flow – Rolling Four Quarters $70 $60 $50.2 $50 Goal $40 $30 $20 $10 $0 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05
Slide 18: Short-Term Financial Goals
Short-Term Financial Goals Increase shareholder value Generate free cash flow Maximize liquidity De-lever balance sheet Improve gross and operating margins Increase high-end mix Sustainable profitability
Slide 19: Long-Term Financial Goals
Long-Term Financial Goals Free Cash flow $50mn Debt-to-Equity 25% Return on Invested Capital 10% Operating Margin 20%+ Gross Margin 40%+ Annual Revenue Growth 10%-15%
Slide 20: Photronics…Strategically Positioned
Photronics…Strategically Positioned ¾ Expect fiscal 2005 to be a growth year • North America & Europe gain share at both high-end and in mainstream technologies • Asian growth driven by expanding semiconductor mask market and share gains • FPD – an emerging market ¾ Increase profitability & generate
Slide 21: Annual Shareholders Meeting March 22, 2005
Annual Shareholders Meeting March 22, 2005