Applied Materials, Inc. (NASDAQ:AMAT) Q1 2023 Results Conference Call February 16, 2023 4:30 PM ET Company Participants Michael Sullivan - Corporate VP Gary Dickerson - President and CEO Brice Hill - CFO Conference Call Participants C.J. Muse - Evercore ISI Stacy Rasgon - Bernstein Vivek Arya - Bank of America Krish Sankar - Cowen Atif Malik - Citi Toshiya Hari - Goldman Sachs Timothy Arcuri - UBS Harlan Sur - JP Morgan Joe Quatrochi - Wells Fargo Sidney Ho - Deutsche Bank Quinn Bolton - Needham Mehdi Hosse ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark one) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-06920 Applied Materials, Inc. (Exact name of registrant as specified in its charter) Delaware 94-1655526 (State or o ...

Applied Materials, Inc. (NASDAQ:AMAT) Wells Fargo 6th Annual TMT Summit Conference November 30, 2022 12:20 PM ET Company Participants Brice Hill - CFO Conference Call Participants Joe Quatrochi - Wells Fargo Joe Quatrochi Great. So we'll go ahead and started. I'm Joe Quatrochi, the semi cap equipment analyst here at Wells Fargo. Excited to have Brice Hill, CFO of Applied Materials with us for this fireside chat. Brice, thanks for joining us. Brice Hill Awesome. Thanks for inviting me, and glad to be here. Q ...

Financial Data and Key Metrics Changes - Applied Materials reported record annual revenue of $25.8 billion, a nearly 12% increase year-over-year [35] - Non-GAAP gross margin decreased by approximately 90 basis points to 46.6% [35] - Non-GAAP operating profit grew over 7% to $7.86 billion, while non-GAAP operating margin decreased by 120 basis points to 30.5% [35] - Non-GAAP EPS increased nearly 13% to $7.70 [35] - The company generated about $5.4 billion in operating cash flow and over $4.6 billion in free cash flow, returning 151% of free cash flow to shareholders [35] Business Line Data and Key Metrics Changes - Semi Systems revenue grew more than 6% sequentially to $5.04 billion, with segment non-GAAP operating margin increasing 80 basis points to 36.9% [39] - AGS revenue was flat quarter-over-quarter at $1.42 billion, with segment non-GAAP operating margin declining to 28.3% [39] - Display revenue declined to $251 million, with segment non-GAAP operating margin also declining to 13.5% [40] Market Data and Key Metrics Changes - The total ending backlog increased 62% to $19 billion, with semi systems backlog increasing 90% to nearly $12.7 billion [36] - AGS backlog increased 30% to over $5.6 billion, reflecting a large increase in long-term service agreements [36] - The company expects a pullback in overall wafer fab equipment spending next year, but believes its business will be more resilient due to a significant backlog and strong customer demand for leadership products [28][17] Company Strategy and Development Direction - The company is focused on mitigating supply chain constraints and building a more resilient supply chain [9] - Applied Materials is making strategic investments in R&D and infrastructure to support industry growth and position itself for future success [26] - The long-term growth thesis remains unchanged, with the semiconductor market expected to reach $1 trillion by the end of the decade [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds, including inflation and softening consumer demand, but emphasized strong demand in leading-edge foundry/logic and robust automotive and industrial markets [12][15] - The company expects to close supply gaps over the next few quarters and is focused on improving manufacturing and logistics [9] - Management remains optimistic about the long-term growth outlook for the semiconductor industry and believes Applied is well-positioned to capitalize on future opportunities [26][19] Other Important Information - The company anticipates that the unmitigated impact of new U.S. export regulations could be up to $2.5 billion in fiscal 2023, with efforts to reduce this impact to between $1.5 billion and $2 billion [11][42] - The installed base of systems grew 8% and the number of tools under comprehensive long-term service contracts grew 16%, with a renewal rate of over 90% [18] Q&A Session Summary Question: Clarification on China impact and WFE outlook for 2023 - Management clarified that the impact from China was less than initially estimated due to better execution and logistics [50] - They noted that it is too early to provide a precise estimate for WFE in 2023, but the backlog remains strong [52] Question: Mitigated vs unmitigated impact from China - Management explained that the unmitigated impact refers to orders from affected customers, while mitigation depends on obtaining licenses and customer adjustments [57] Question: Memory customer spending cuts - Management acknowledged pushouts and reductions in memory demand but emphasized that the backlog remains solid [66] Question: Sustainability of AGS operating margins - Management indicated that AGS margins are supported by increased efficiency and repair capabilities, despite some headwinds [100] Question: Gross margin impact from China restrictions - Management discussed that the gross margin impact is due to smaller customers and the profitability of those customers [102] Question: WFE intensity and future growth - Management expressed confidence that WFE intensity will continue to rise due to increasing process complexity and technology inflections [108]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-06920 Applied Materials, Inc. (Exact name of registrant as specified in its charter) Delaware 94-1655526 (State ...

but will be in a listen-only mode. Afterwards, you'll be invited to participate in a question-and-answer session. I will turn the conference over to Michael Sullivan, Corporate Vice President. Please go ahead, sir. Good afternoon, everyone, and thank you for joining Applied's third quarter of Fiscal 2022 Earnings Call. Joining me are Gary Dickerson, our President and CEO, and Bryce Hill, our Chief Financial Officer. Before we begin, I'd like to remind you that today's call contains forward-looking statement ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 1, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-06920 Applied Materials, Inc. (Exact name of registrant as specified in its charter) Delaware 94-1655526 (State o ...

Welcome to the Applied Materials Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question and answer session. I would now like to turn the conference over to Michael Sullivan, Corporate Vice President. Please go ahead, sir. Good afternoon, everyone, and thank you for joining Applied's second quarter of Fiscal 2022 Earnings Call. Joining me are Gary Dickerson, our President and CEO, and Bryce Hill, our Chie ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-06920 Applied Materials, Inc. (Exact name of registrant as specified in its charter) Delaware 94-1655526 (St ...