Applied Materials : Q2F21 Earnings Presentation 1.4 MB

Second Quarter Fiscal 2021

Earnings Presentation

May 20, 2021

Applied Materials External

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, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, our business outlook for the third quarter of fiscal 2021 and beyond, the impact of the ongoing COVID-19 pandemic and responses thereto on our operations and financial results, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; the effects of regional or global health epidemics, including the severity and duration of the ongoing COVID-19 pandemic; global trade issues and changes in trade and export license policies, including the recent rules and interpretations promulgated by U.S. Department of Commerce expanding export license requirements for certain products sold to certain entities in China; consumer demand for electronic products; the demand for semiconductors; customers' technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; the concentrated nature of our customer base; acquisitions, investments and divestitures; changes in income tax laws; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; and other risks and uncertainties described in our SEC filings, including our recent Forms 10-Q and 8-K. All forward-looking statements are based on management's current estimates, projections and assumptions, and we assume no obligation to update them.

2 | Applied Materials External

APPLIED MATERIALS AT-A-GLANCE

REPORTING SEGMENTS

Semiconductor Systems	CURRENT FISCAL
	YEAR ENDS

Applied Global Services	31 October 2021

Display and Adjacent Markets

$19.8 billion		$2.4 billion		~24,200
		employees
	TTM R&D
TTM REVENUE
	INVESTMENTS		in 19* countries

*As of fiscal year ended 10/25/20. TTM is trailing twelve months

3 | Applied Materials External

FOUNDED

1967

FIRST PUBLIC OFFERING

1974

~14,300* active patents

Q2 Fiscal 2021

Record quarterly revenue and non-GAAP earnings

Strong execution and margin expansion

Buyback authorization and dividend rate increased; buyback program resumed

2021 Outlook

Strong demand for semi equipment and services

Foundry-logic and DRAM markets growing fastest

Strong demand for Applied's leadership products

Strength in ICAPS* and advanced packaging

Longer Term

Multi-year growth drivers for semi firmly in place

Digital transformation of economy accelerating

Semiconductor and equipment industries being driven structurally higher

STRONG MARKET AND BUSINESS OUTLOOK

• IoT, communications, automotive, power and sensors applications 4 | Applied Materials External

Investment Thesis

Market Outlook = Innovation and Secular Growth

Applied = PPACt Enablement Company

			Subscription	Synergistic
Unit process	Unique	Actionable insight /	materials
style
leadership and	combinations	time to market	engineering
revenue
broadest portfolio	of technologies	acceleration	business with

growth	high FCF

High ROI Financial Model + Attractive Shareholder Returns

5 | Applied Materials External