Applied Materials, Inc. · NASDAQ:AMAT
Applied Materials — Q4 2022 Earnings Presentation
23 slides from Applied Materials's earnings presentation, Nov 17, 2022
Slide 1: Fourth Quarter Fiscal 2022 Earnings Presentation
Fourth Quarter Fiscal 2022 Earnings Presentation November 17, 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 $2.8 billion ~33,300* $25.8 billion ~15,700** TTM R&D employees TTM REVENUE INVESTMENTS active
Slide 4: Record Performance, Incremental Supply Chain Improvement
Q4F22 Summary Market Outlook Longer Term Delivered strong finish to Expected pull-back in Digital transformation of fiscal year with record overall WFE in 2023 the economy built upon performance semiconductors Foundry/logic: Leading-edge Record backlog, notably in strong, driven by new Semi and equi
Slide 5: Investment Thesis
Investment Thesis Market Outlook = Innovation and Secular Growth Applied = PPACt Enablement Company New and Growth in adjacent Unit process Co-optimized Actionable insight / leadership and and integrated time to market subscriptions materials broadest portfolio solutions acceleration and services en
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: FY2022 Non-GAAP Financial Results
FY2022 Non-GAAP Financial Results $M, except EPS FY2021 FY2022 Y/Y Revenue 23,063 25,785 12% Gross Margin* 47.5% 46.6% (90bps) Operating Income* 7,322 7,861 7% EPS* $6.84 $7.70 13% Operating Cash Flow 5,442 5,399 (1%) Free Cash Flow** 4,774 4,612 (3%) * For reconciliation of GAAP to non-GAAP results
Slide 8: Q4F22 Non-GAAP Financial Results
Q4F22 Non-GAAP Financial Results $M, except EPS Q4F21 Q3F22 Q4F22 Y/Y Q/Q Revenue 6,123 6,520 6,749 10% 4% Gross Margin* 48.2% 46.2% 46.0% (220bps) (20bps) Operating Income* 2,029 1,953 2,010 (1%) 3% EPS* $1.94 $1.94 $2.03 5% 5% Operating Cash Flow 1,148 1,469 857 (25%) (42)% Free Cash Flow** 942 1,
Slide 9: FY2022 Segment Results
FY2022 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 39% 30% 30% 20% 37% 20% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 5,543 18,797 1,634 5,013 16,286 1,331 Revenue ($M) Revenue ($M) Revenue ($M) FY2021 FY2022 FY2021 F
Slide 10: Q4F22 Segment Results
Q4F22 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 40% 39% 31% 31% 31% 31% 37% 36% 37% 28% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 21% 21% 22% 21% 1,420 1,420 5,038 1,383 1,369 4,734 1,320 4,567 4,458 4,307 14% 417
Slide 11: Liquidity and Uses of Capital
Liquidity and Uses of Capital CASH AND INVESTMENTS ($M) Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Cash and cash equivalents 4,995 5,264 3,331 2,956 1,995 Short-term investments 464 473 591 592 586 Long-term investments 2,055 2,026 2,102 2,047 1,980 Total cash and investments 7,514 7,763 6,024 5,595 4,561 Long-t
Slide 12: Business Outlook
Business Outlook Total Revenue ~$6.70B ± $400M FIRST OUTLOOK* Non-GAAP EPS ~$1.93 ± $0.18 QUARTER Fiscal 2023 Semiconductor Systems ~$5.15B SEGMENT Applied Global Services ~$1.33B REVENUE Display and Adjacent Markets ~$170M Non-GAAP Gross Margin ~46.1% OTHER Non-GAAP Operating Expenses ~$1.16B Non-G
Slide 13: 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 Strong collaboration with PPACt engagements with customers’ 100% renewable energy leading customers on customers focus on energy-efficient in US by
Slide 14: 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 15: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 15 | Applied Materials External
Slide 16: 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 17: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT EPS AND PERCENTAGE Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 2,945 $ 2,959 $ 2,927 $ 3,006 $ 3,101 Certain items associated with acquisitions 1 6 6 7 7
Slide 18: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Operating Expenses
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES IN MILLIONS Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Operating Expenses (GAAP Basis) $ 931 $ 983 $ 1,033 $ 1,082 $ 1,107 Certain items associated with acquisitions (5) (3) (3) (3) (4) Acquisition integration and deal costs (5) (4) (9) (1
Slide 19: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGE Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 1,723 $ 1,771 $ 1,648 $ 1,701 $ 1,849 Certain items associat
Slide 20: Unaudited Full Year Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGE FY2021 FY2022 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 10,914 $ 11,993 Certain items associated with acquisitions 1 27 26 Certain incremental expenses related to COVID-19
Slide 21: Unaudited Full Year Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS FY2021 FY2022 Non-GAAP Adjusted Earnings Per Diluted Share Reported earnings per diluted share - GAAP basis $ 6.40 $ 7.44 Certain items associated with acquisitions 0.04 0.04 Acquisition integration and deal costs 0.04 0.03 Cert
Slide 22: Unaudited Full Year Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGE FY2021 FY2022 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 6.311 $ 6.969 Certain items associated with acquisitions 1 38 31 Acquisition
Slide 23: Make Possible
Cll arenas. make possible