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Exhibit 99.7
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide1.jpg)
February 21, 2024 Q1 2024 Financial Results Conference Call
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide2.jpg)
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.
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide3.jpg)
Q1 2024 Summary Year-over-year Growth in Earnings and Cash Flow as we Effectively Manage Costs and Working Capital 1Net income attributable to Photronics, Inc. shareholders. 2Adjusted EPS is a non-GAAP measure; see reconciliation included in this presentation. $216.3M Revenue 26.6% Operating Margin $0.42 EPS1 $0.48 Adjusted2 EPS1 $41.5M OCF $508.5M Cash +2% Y/Y (5%) Q/Q +10 bps Y/Y (190) bps Q/Q +83% Y/Y (42%) Q/Q +20% Y/Y (20%) Q/Q +50% Y/Y (61%) Q/Q +52% Y/Y +2% Q/Q Revenue improved Y/Y and down Q/Q; slow start to quarter for IC; demand strengthened during the quarter, positioning for stronger Q2 Adjusted EPS improved Y/Y on operating leverage; lower Q/Q on decreased volume and higher operating expense Balance sheet fortified due to strong free cash flow generation, debt reduction, and effective management of working capital Investing in IC capacity to capitalize on market growth trends
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide4.jpg)
Income Statement Summary GAAP Non-GAAP1 $M (except EPS) Q124 Q/Q Y/Y Q124 Q/Q Y/Y Revenue 216.3 (5%) 2% Gross Profit 79.3 (7%) 4% Gross Margin 36.6% (70) bps 60 bps Operating Income 57.5 (11%) 3% Operating Margin 26.6% (190) bps 10 bps Non-operating (loss) income (3.7) (22.4) 10.7 5.2 (0.3) 2.6 Income tax provision 14.7 (28%) 17% 16.9 0% (1%) Minority interest 12.9 (30%) (14%) 15,8 (2%) (7%) Net income2 26.2 (41%) 87% 29.9 (20%) 23% Diluted EPS2 0.42 (0.30) 0.19 0.48 (0.12) 0.08 Days in quarter 89 (4) (1) 1See reconciliation included in this presentation. 2Net income attributable to Photronics, Inc. shareholders. Gross margins down Q/Q and up Y/Y on operating leverage and change in revenue Opex increased due to higher SG&A driven by higher compensation expense GAAP Non-operating income primarily consists of unrealized FX gain/loss; Non-GAAP removes effect of FX gain/loss Minority interest reflects net income of IC JVs in Taiwan and China
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide5.jpg)
Revenue by Product Line $M Q124 Q/Q Y/Y High-End* 60.9 6% 27% Mainstream 96.7 (9%) (11%) Total 157.6 (4%) 1% High-end increased on strong demand from Asia foundries; Y/Y also saw contribution from US Mainstream softness primarily in Asia Growth drivers: New designs by customers to gain market share and support technology roadmap Regionalization driving investments for global chip capacity Able to maintain pricing in favorable supply / demand dynamic *IC: 28nm and smaller; FPD: ≥G10.5, AMOLED and LTPS. Totals may differ due to rounding. High-end grew Y/Y on strong AMOLED demand; Q/Q softer due to premium smartphone seasonality Mainstream lower due to soft demand at beginning of Q1 Growth drivers: Technology development drives demand for higher-value masks Mobile demand is expected to remain strong with rollout of new designs and emerging panel makers winning market share $M Q124 Q/Q Y/Y High-End* 50.6 (5%) 11% Mainstream 8.1 (16%) (8%) Total 58.7 (7%) 8% IC FPD
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide6.jpg)
Balance Sheet and Cash Flow Metrics *Net cash is a non-GAAP term; see reconciliation included in this presentation. Balance Sheet Provides Resilience, Enables Growth Strategy and Shareholder Value Creation $M Q124 Y/Y Q/Q Cash 508.5 52% 2% Short-term Investments 13.0 (67%) 1% Debt 23.4 (31%) (5%) Net Cash* 485.1 61% 2% Operating Cash Flow 41.5 50% (61%) Capital Expenditures 43.3 39% (17%) Continued strong operating cash flow from income generation and working capital management Debt comprised of US equipment leases Capex targets growth in IC capacity & facility expansion Strong balance sheet able to fund investments, share repurchases, and strategic opportunities and remain resilient to effects of industry downturns
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide7.jpg)
Q2 2024 Guidance Revenue ($M) 226 – 236 Operating Margin 27% - 29% Taxes ($M) 17 – 19 Diluted non-GAAP EPS $0.50 - $0.58 Diluted Shares (M) ~62 Full-year Capex ($M) ~140 Incorporation of chips in IoT, 5G, Crypto and consumer products New designs to capture market share Advanced display technologies Outlook clouded by geopolitical uncertainty and macro-economic headwinds Driving margin expansion and cash flows to deliver long-term shareholder value
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide8.jpg)
Appendix
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide9.jpg)
Revenue by Product Group ($M) Total may differ due to rounding. IC FPD Mainstream High-End Mainstream High-End Total Revenue IC Revenue FPD Revenue High-End: 28nm and smaller High-End: ≥G10.5, AMOLED and LTPS
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide10.jpg)
Non-GAAP Financial Measures Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share, 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.
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide11.jpg)
Non-GAAP Financial Measures
![](https://capedge.com/proxy/8-K/0001140361-24-008676/ef20022070_ex99-7slide12.jpg)
Non-GAAP Financial Measures