Photronics : Presentatio

Photronics, Inc.

Q3 2023 Financial Results Conference Call

September 6, 2023

INC.

PHOTRONICS,INC.

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.

INC.

PHOTRONICS,INC.

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Q3 2023 Summary

$224.2M Revenue

-2%	+2%	IC: -2% Q/Q, +1% Y/Y
Y/Y	FPD: -2% Q/Q, +4% Y/Y
Q/Q

$448.5MCashbalance

$27.3M Short-term investments

$85.9M generated from operating activity $21.1M invested in capex

$26.7M total debt

PHOTRONICS,INC. INC.

• Maintaining margins and strong cash flow as demand softens Q/Q; favorable long-term demand drivers remain
• GAAP Net income* was $27.0M, or $0.44/share; non-GAAP was $31.6M, or $0.51/share
• Investing in IC capacity to capitalize on market growth trends

Committed to driving long-term, profitable growth through strategic investments

*Net income attributable to Photronics, Inc. shareholders

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PHOTRONICS,INC. INC.

Favorable Long-term Photomask Demand Drivers

• On pace for record year in 2023 with continued growth in 2024
• Drivers in place for continued growth in photomask demand
• • IC industry forecast to reach $1T by 2030
  • New IC designs across high-end and mainstream for secular forces such as AI, data centers, IoT, automotive, industrial, and ML
  • Display innovation in mobile applications with integrated technologies (e.g., biometric identification) and foldable screens
• On-shoringtrends support additional investments in global semiconductor manufacturing capacity
• Ongoing resurgence in legacy IC demand and limited growth in reticle supply supports price and investment in point tools
• As largest merchant photomask provider with expansive geographic footprint, Photronics uniquely positioned to benefit from these trends
• Capital allocation strategy and prudent balance sheet management support growth initiatives while increasing ROIC and resilience

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PHOTRONICS,INC. INC.

Clear Strategy for Sustainable, Long-Term Profitable Growth

Revenue Growth

• Win lion's share of the growth in TAM for IC and FPD
• Continue targeted expansion of IC capacity, including mainstream point tool investments
• Leverage global footprint to exploit expansion of IC foundry business
• Capitalize on FPD technology leadership in AMOLED to continue improving mix

Margin Expansion

• Improved pricing environment in high-end and mainstream IC
• Optimize asset tool set to match end-market demand
• Increasing benefit from operating leverage

Explore Strategic Partnerships

• Long-termPurchase Agreements

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