Applied Materials : Q2 Earnings Q2 2024 Earnings Presentation

Second Quarter Fiscal 2024 Earnings Presentation

May 16, 2024

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 2024 and beyond, 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, political and industry conditions, including rising inflation and interest rates; the implementation and interpretation of export regulations and license requirements, and their impact on our ability to export products and provide services to customers and on our results of operations; global trade issues and changes in trade and export license policies; our ability to obtain licenses or authorizations on a timely basis, if at all; the effects of geopolitical turmoil or conflicts; 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; our ability to meet customer demand, and our suppliers' ability to meet our demand requirements; the concentrated nature of our customer base; 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 effects of regional or global health epidemics; acquisitions, investments and divestitures; changes in income tax laws; 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; our ability to ensure compliance with applicable law, rules and regulations; 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.

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UPCOMING

Events

MAY 30

JUNE 6

JULY 9

Bernstein Strategic Decisions Conference

Bank of America Global Technology Conference

Applied Materials Technology Breakfast at SEMICON West

3 | Applied Materials External

Gary Dickerson

President and Chief Executive Officer

Applied Materials External

Overview

• Delivering near-term performance and well positioned for long-term growth
• Enabling global technology megatrends
• Accelerating key semiconductor inflections from R&D to high-volume manufacturing
• Generating more value in our service business

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Tectonic Shifts in Technology Are Built on Semiconductors

DATA CENTER AI		EDGE AI AND		ELECTRIC AND		GLOBAL ENERGY
	INTERNET OF THINGS		AUTONOMOUS VEHICLES		TRANSFORMATION

Advanced AI Chips Enabled by:

• Leading-edgelogic
• Compute memory (high-performance DRAM)
• High-BandwidthMemory (DRAM stacking)
• Advanced packaging to create a "system in a package"

Applied is #1 in materials engineering in each area

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Enabling Customer Roadmap Inflections: Gate-All-Around

Frontside

Wiring

Transistor

Backside Wiring

Applied has longstanding leadership

in transistors and wiring

TRANSISTORS

• Shift from FinFET to Gate-All-Around (GAA) grows
  Applied's transistor SAM from ~$6B to ~$7B*
• On track for >50% SAM share

WIRING

• Introduction of Backside Power Delivery (BPD) grows Applied's wiring SAM from ~$6B to ~$7B*
• On track for >50% SAM share

Expect >$2.5B in Revenue from GAA Nodes in CY2024,

with Potential to More than Double in CY2025

• Per 100k wafer starts per month capacity. SAM = Served Addressable Market 7 | Applied Materials External

Enabling Customer Roadmap Inflections

DRAM

• #1 in DRAM materials engineering
• DRAM adopting our logic technologies in periphery I/O
• ~40% SAM share in DRAM patterning
• Co-optimizedhardmask solutions

HIGH-BANDWIDTH MEMORY

• #1 in HBM materials engineering
• Serve ~3/4 of materials engineering steps in HBM packaging
• Now expect HBM packaging revenue to grow ~6X in FY24 to >$600M
• Expect ~50% HBM SAM share

ADVANCED PACKAGING

• #1 in advanced packaging
• Industry's broadest advanced packaging portfolio
• Now expect to grow to ~$1.7B in FY24 with opportunity to double over several years
• Expect ~50% SAM share

HBM packaging revenue is a subset of Applied's Advanced Packaging revenue. Advanced Packaging revenue is included in Applied's DRAM, NAND and foundry/logic revenue.

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Applied Materials Technology Portfolio

Heterogeneous

Materials Engineering

Create and deposit

Epitaxy Metal Dielectric

deposition deposition

Shape and remove

EtchPlanarization

Modify

ImplantThermal

Process Control

Analyze

Optical inspection

Defect review

PlatingALD Selective deposition

Selective removal

Pattern shaping

Treatments

eBeam metrology	CD-SEM
and inspection

Integration

Digital lithography

Panel-level PVD

Connect

Hybrid bonding

eBeam Test

Learn more: "How do you make a chip" video

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Translating R&D Investments to Outperformance

• Applied outperformed WFE in each of past 5 years
• Materials engineering ~1/2 of WFE market; Applied is #1 in materials engineering
• Expect materials engineering to become a larger portion of WFE over time
• Applied expects to outgrow the WFE market through materials engineering leadership

Applied Materials Share of WFE

		21.7%	22.0%	21.6%
			20.6%
		19.5%		19.9%
			21.2%
18.2%		20.0%		20.5%
19.6%	19.3%

15.9%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Gartner (2011-19), TechInsights (2020-23), Applied Materials analysis.

Baseline year of 2011 is when Applied Materials acquired Varian Semiconductor Equipment Associates, Inc.

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