Photronics, Inc. ANALYST / INVESTOR DAY MARCH 26, 2015 PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 2015 Safe Harbor Statement During this presentation, some of our comments may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company and/or the industry.We wish to caution you that such statements are predictions and contain risks and uncertainties and actual events or results may differ materially.Although we believe that the expectations are reasonable, Photronics cannot guarantee the accuracy of any forecasts or estimates, and we do not plan to update any forward-looking statements if our expectations change.If you would like more information on the risks involved in forward-looking statements, please see the documents the Company files from time to time with the Securities and Exchange Commission, specifically the Companys most recent Form 10K and Form 10Q.PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 20151 Some of our comments may reference Non-GAAP financial measures. Non-GAAP financial results referenced in this presentation exclude charges, other expenses and benefits that management believes are not directly related to our ongoing operations. These Non-GAAP results are consistent with another way management internally analyzes Photronics results of operations. Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Please see the Reconciliation of GAAP to Non-GAAP Financial Information for a reconciliation of GAAP to Non-GAAP. Non-GAAP Results PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 20152 Analyst / Investor Day Agenda Welcome, Introductions,Opening Remarks Deno Macricostas, Chairman & CEO Investment Highlights, Strategic DirectionDr. Peter Kirlin, President Technology UpdateIC& FPD Dr. Chris Progler, VP, CTO and Strategic Planning FPD UpdateSamuel Jung, VP, FPD Operations PDMC UpdateDr. Frank Lee, President, GM, PDMC Mainstream IC UpdatePeter Broadbent, VP, Marketing & IR Financials & OutlookSean Smith, SVP, CFO Q & AAll PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 20153 Welcome Constantine Deno Macricostas Chairman and CEO PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 20154 World Class Management Team Significant Industry Experience Name Title Yearswith Photronics Years inIndustry Experience Constantine Macricostas Chairman and CEO 4655 Peter Kirlin, Ph.D. President 730 S.H. Jeong, Ph.D. President, Asia 1534 Frank Lee, Ph.D. President, GM, PDMC 935 Chris Progler, Ph.D. VP, CTO, and Strategic Planning 1527 Sean Smith, CPA SVP, CFO 1515 Samuel Jung VP, Operations, FPD 1530 Peter Broadbent VP, Marketing & Investor Relations 22 PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 20155 Investment Highlights, Strategic DirectionPeter S. Kirlin CEO PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 20156 Merchant Market leader Poised to outpace industry growth rate Multiple growth drivers High operating leverage to deliver strong earnings growth Strong balance sheet with lean and flexible business model Investment Thesis PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 20157 Agenda Background Growth Drivers Strategic Direction PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 20158 Photomasks: Critical enabler for IC & FPD Manufacturing IC (Integrated Circuit) photomasks are used to transfer circuit patterns onto semiconductor wafers during the fabrication of integrated circuits FPD (Flat panel display) photomasks are used in the fabrication of flat screen televisions, PC monitors, Tablet, Mobile screens and other flat panel displays Photomasks carry design information into an exposure systemwhere light transfers the pattern to the wafer (or glass)FPDIC PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 20159 Global High-End Manufacturing Network IC:High-End anchored lines in Korea, US, Taiwan FPD:High-End anchored lines in Korea and supporting lines in Taiwan PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201510 IC Merchant Market Leader 18% 22% 24% 25% 33% 32% 31% 29% 28%28% 26% 27% 2010 2011 2012 2013 w/JV30% 27% 24% Source: SEMI 2013 Semiconductor Photomask Characterization Study (March, 2014);Photronics estimates of incremental JV annual revenues ($80M) PLAB DNPToppan PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201511 FPD Technology Leader 20% 22% 25% 25% 2010 2011 2012 2013Source: Photronics estimates High-end (G8 and AMOLED) First to acquire the latest High-end lithography writing tool2014: $103 MMainstream $37 M (35%) High-End $66 M (65%) Market Share(Korea and Taiwan) PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201512 Agenda Background Growth Drivers Strategic Direction PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201513 Mobile and IoT driving new designs > IC Photomasks Display Innovation + Variety of panel sizes > FPD Photomasks Shorter product lifecycles drive new designs New Designs = New Photomask Units Every New Chip / Display Requires New Mask Set Desktop PCs Notebook PCs Smartphones Tablets 05001,0001,5002,0002010 2011 2012 2013 2014 2015Shipments (Millions) 2013Estimate PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201514 Expected to increase in usage through 10 nm node Multiple Patterning IC Driving Increased Mask ASPs Mask 1 Mask 2 Device Layer Design Double Patterning HVM 201120132015 Technology Node 45nm28nm14nm Litho Process Single Patterning Double Patterning (DP) Multiple Patterning (MP) Mask Layers 30 40 40+50 70 PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201515 Higher resolution displays LCD:Full HD UHD Mobile: 450ppi>700ppi Production Technologies (AMOLED, LTPS) driving Mask ASPs AMOLED = 5 or 6 transistors per pixel vs 2 in LCD displays LTPS = 9-12 photomask steps vs 5-6 for standard a-SiIncreasing Resolution driving FPD Mask ASPs PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201516 %WW Semiconductor Capital Spending High-End Customer Drivers ICFPD 46% 37% 17% Source: Photronics compilation from Published Reports, Analyst Reports and Company Reports 29% 27% 73% Samsung, Intel,Micron, UMCOther Top 10Remaining2003 2005 2013 2015 (F) PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201517 Investing aligned to High-End Customer Drivers 82 72 64 91 16%16% 15% 20% 2011 2012 2013 2014Photronics Cash CapexCash Capex %RevenuePHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201518 Agenda Background Growth Drivers Strategic Direction PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201519 IC photomasks Focus on logic and foundry memory markets Migrate from mix-match manufacturing to global virtual factory Drive technology development partnerships to POR status FPD photomasks Extend technology leadership by being first to market with next generation tool set in Korea Continue to drive cost out to be low cost producer in Taiwan Develop China business Strategic Direction:High End Growth PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201520 IC Photomask Growth Opportunities PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201521 Logic 28 nm:UMC, ST, GF, SMIC now ramping 14nm:Samsung, Intel, UMC, ST, GF and SMIC Taiwan Memory Taiwan migrating to Micron/Elpida bit cell where we are POR Inotera ramping 100 Series Powerchip is qualifying 90 Series Nanya just received funding to install capacity for 100 series Growth Opportunities PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201522 Photronics Boise:NFT8000 + NFT9000(1) Taiwan:NFT8000 + NFT7000 Korea:NFT8000 DNP Japan: NFT8000 Agrate: JEOL 3200 Toppan NFT7500 x 2; one each in Japan and Taiwan Litho write times on 8000 for critical layers 28 nm logic or 2X nm DRAM: approximately 6 days 14 nm logic: approximately 22-24 days Key Competitive Factors at 28 nm and Beyond (1) Capable down to 10nm production, 7nm R&D PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201523 Use mix and match down to 32 nm node Critical layers build in Boise with semi-critical and non-critical layers built locally with repell support Leverage global production control and internally developed manufacturing engineering system (MES) to maximize capacity loading At 28 nm logic and 2X DRAM All layers built locally with sister site(s) cross qualified to provide capacity back-up to manage spikes in demand Implementing now for our largest customers Process harmonization underway at 14 nm to expedite global factory qualification Manufacturing Strategy ShiftPHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201524 10 nm logic and 1Y memory development already well underway Matching will be to within 1 nm Requires Trusted Partner status to execute Technology Development PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201525 Effective May 5, 2016 at the conclusion of the initial 10 year term of the MP Mask operating agreement, Micron and Photronics intend to: Transition the MP Mask Joint Venture to a 100% owned unit of Micron and enter into Supply and Technology Transfer Agreements that enable a seamless continuation of our longstanding business relationship We Recently Announced: PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201526 Micron and Photronics both at very different places relative to when the joint venture was entered into 10 years ago External factors such as the strength of the memory market, shift to 3D FLASH and the Elpida acquisition have slowed Microns node transitions which diminishes the size of their reticle business Shifts in Si manufacturing technology, in particular finFET and multiple patterning, have pushed logic reticle technology ahead of memory diminishing the value of jointly developed technology in MP to Photronics Micron:What has Changed? PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201527 Strong relationships with Micron at the executive and working levels that enables the business to run smoothly benefits both parties

Value of process transfer (POR) for Micron and affiliated business high for Photronics Dual source model allows more efficient CAPEX model and business continuity protection for Micron Micron:What is Staying the Same?PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201528 TechnologyLicenseAgreement which should carry us 5 years beyond the end of the joint venture Outsourcing Agreement that guarantees Photronics majority market share Our equity in MP will be returned ($93M) positioning Photronics to pursue other strategic opportunities Micron gains freedom of action to operate MP Micron:Our Relationship Beyond May 2016 PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201529 Inotera ramping 100 Series Primary source of Micron wafers Powerchip qualifying 90 Series DRAM Foundry Reticle intensive business relative to standard memory Customers throughout AP Nanya Migrating to 100 Series Presently running 80 series volume DRAM as well and foundry memory Have existing license to Micron 100 Series Recently raised capital to equip new fab Downstream Value of Micron POR PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201530 FPD Photomask Growth Opportunities PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201531 AMOLED Higher resolution smart phones, UHD, QHD driving product differentiation New Samsung A3 line utilizes new generation of scanner requiring photomask with specifications only achievable with the new generation of mask writer (P80) China Rapidly expanding customer base Focused on G8 andlarger displays Service and price key to business success Growth Opportunities PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201532 High-end (G8 and AMOLED)AMOLED Growth Strategy Q1 2015: $22.0 MMainstream $7 M (30%) High-End $15 M (70%) Mainstream $10 M (38%) High-End $16 M (62%) Continue to leverage technology leadership: be first to install P80First in to achieve POR status with Samsung A3 line Supply LG with next photomasks Expect to ramp to full utilization within two quarters PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201533 Presently developing business with local rep and supply from Korea and Taiwan using mix and match Initiated process to open local sales and customer support office in China Migrate inspection capability from Korea to Taiwan Target G6 and G8 business with low cost supply from Taiwan factory China Growth Strategy PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201534 Technology Dr. Chris Progler VP, CTO and Strategic Planning PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201535 IC Customer Advanced Roadmap HVM 20142015201620172018 Logic Foundry28/20 nm14/16 nm10 nm7 nm Logic MPU22/14 nm10 nm7 nm DRAM25/20 nm1X nm1Y nm NAND16nm3D Gen 13D Gen 23D Gen 3 Mask Technology and Opportunity Drivers Advanced Logic Foundry drives mask cycle time, consistency, units Logic MPU and System on Chip (SoC) drives mask set complexity, chip size DRAM memory drives layout packing density NAND 3D memory less lithography intensive but new technology adoption Photronics QualifiedPhotronics Pilot Photronics Pathfinding PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201536 Photronics Technology Organization Regional R&DRegional R&DRegional R&D 14nm Ramp14nm Ramp 1X Memory Initialize 14nm Initialize Process customization and regional applications Corporate R&D 10 nm development, 7 nm path finding, multi-beam, EUV Advanced process matching and process extensions PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201537 IC Customer Advanced Mask Types DesignLine Cut Lithography Approach PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201538 Logic Node Multi-Patterning Layer Count Scaling 2 masks per device layer 3+ masks per device layer 1 mask per device layer PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201539 Photronics Delivers Differentiated Capability Mask Pattern Mask Pattern 1 Mask Pattern 2 40% reduction in mask overlay from 14nm to 10nm PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201540 Driven by cycle time, consistency and yield under variable design Photronics advanced process matching and writer capacity beats competition First merchant to deliver 14nm class foundry logic masks to customer Largest merchant volume producer of 28 nm foundry logic masks Foundry 28nm expansion and 14nm ramp represent key opportunities Logic Foundry Mask Technology 1.5nm Process Consistency Triple Patterning Dimension in nm DNA Scale Resolution !! Device Layer PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201541 Driven by tightest specs, highest layer count and large chip size Photronics developed unique mask overlay capability to meet multi-pattern needs Advanced defect control delivers yield for large chip sizes MPU and SoC Mask Technology PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201542 Driven by tightly packed 2D mask shapes and pattern quality Photronics process capability for packed 2D shapes yields direct DRAM wafer benefit Memory bit cell mask process of record has wide deployment opportunity Proprietary process know-how difficult for competitor to reproduce DRAM Mask Technology Process B vs. A: 30% improvement in mask 2D feature 35% on-wafer contact hole improvement With New Mask Process B Wafer showing undersized contact with Mask Process A PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201543 Leading Merchant to 10 nm Node Process Partnering for Yield Photronics 10nm Node Pilot Vehicle #1 Wafer Imaging Yield Mask Process A MaskProcess B Mask Process Upgrades PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201544 Photronics Infrastructure Advancements EUV Alpha Class Masks Mirror Type MaskWith Thick FilmsPhotronics delivering EUV masks since 2011 Implementing novel and cost effective mask validation technologyPHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201545 Photronics Infrastructure Advancements Multi-Beam High Speed Mask Writing Patterning for 10/7 nm node complex IC PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201546 Customer Partnering with Leadership Largest & Most Advanced Writer Base Process Differentiation Through 10/7 nm Harmonized Manufacturing Network Process Design and Development Partner Rapid Wafer Manufacturing Yield Curve Consistency, Capacity and Cycle Time Only Photronics has merchant capability and scale to lead through 10/7 nm Serving foundry and IDM logic, DRAM, NAND including 3D Photronics Customer Benefit PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201547 First Merchant to Market with 14nm Logic Product In production at two locations entering third site in 2016 At cutting edge of 14nm industry ramp expanding customer base First Merchant to Market with 20nm DRAM Product Product shipments to 3 key regions US, Taiwan, Japan Proprietary capability and capacity to deliver for wafer volume ramp Aggressive move to next nodes with low incremental capex 10 nm logic node process :> 20% performance improvement over 14 nm 1x nm DRAM node: PoR transfer underway Continue to Widen Gap From Competition Leading process capability, capacity and global support Key technologies for consistent advanced manufacturing Critical infrastructure programs Photronics IC Technology Opportunity Landscape PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201548 FPD Roadmap Entering Advanced Mask Period AMOLED transistor complexity and high definition display introduce need for advanced FPD masks Phase shifting mask allows higher resolution display pixel Mask pattern treatment improves display image printing Advanced tool set drives down all specification Increase in FPD lithography process window for better panel yield IC Advanced Mask Introduction PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201549 A) Complex TransistorB) More MasksC) Higher Resolution FPD Mask Complexity and Value Increasing PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201550 As in IC Mask The Writer Drives Roadmap Only Photronics has access PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201551 Global Pattern Placement Fine Feature Placement Pattern Size Control Significant Improvement Over Previous Generation Advanced FPD Writer Delivers Increased Capability PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201552 First to Market with Advanced Mask Writer Capability to meet advanced mask requirements Speed to enhance productivity and cycle time Leading way in IC type technology for FPD masks Phase shifting masks, pattern compensation, improved mask uniformity Enables next generation display tech:4K, AMOLED HD, flexible Continue to widen gap from competition Capacity to lead in key regions:Korea, Taiwan, China Capability to deliver most advanced FPD mask specifications Photronics FPD Technology OpportunityLandscape PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201553 Flat Panel Display Samuel Jung VP, Operations, FPD PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201554 Accelerating larger TV sizes and UHD Migration to 50+ and resolution to 4K Supply and demand tightening for displays in 2015 UHD and Large format production consumes capacity 1st Tier brands converting to more complex process flow (a-Si Oxide) further consuming capacity Flexible AMOLED fab investments Samsung and LG continue to invest in flexible display fabs Wearable andSmartphone (Gen 1) adoption in CY2015 China Expansion: Samsung, LG, BOE, CSOT Industry Forecasting and Key Trends PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201555 Display Tech Roadmap Next generation process 100PPI326PPI800PPI400~600PPI (IGZO) 8K4K 800PPI Wearable Increasing Mask Complexity and ASPs Leading Edge Backplane PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201556 UHD TV demand will continuously increase, taking 29% of overall LCD TV market by 2019. UHD TV penetration rate in 50 and larger size LCD TV market will likely to reach 60% by 2019. UHD TV Higher Pixel Count = More Complex Mask and Higher ASP PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201557 AMOLED Mobile Driver Needs higher resolution and accuracy Mycronic P-80 extends technology to next generation Flexible - All Format Driver Extension of AMOLED technology New opportunity for high-end displays Oxide LCD TV Driver Additional opportunity high-end photomask production LCD TV transition 4K to 8K Tighter specifications Technology Growth DriversPhotomask Complexity Increasing Significantly Mycronic P-80 PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201558 Nikon FX NikonNew Canon Resolution2.0 Line & Space 2.5 Contact Hole 1.5 ~ 2.0 Line/ Space 2.0 ~ 2.5 Contact Hole A2 LineA3 Line Advanced Mask Compatible (Phase Shift) New AMOLED Scanner Lines = Tighter Specs New Canon(2ea) + Nikon PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201559 China Growth Opportunity China makers are investing in LCD G8 and high-end mobile capacity Serving effectively from Taiwan and Korea Expanding sales presence and targeting business opportunities LocationGen.Production SDC Suzhou G8.5Q413 / 16 LGD Guangzhou G8.5Q214 / Q215 BOE B5-Hefei B7-Chengdu B8-Chungqing B9-Hefei G8.5 G6 G8.5 G10.5 Q114 Q217 Q215 TBD CSOT T2-Shenzhen T3-Wuhan G8.5 G6 Q215 Q216 CEC Nanjing Chengdu G8.5 G8.5 Q215 TBD PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201560 First and only Merchant with the equipment (writing and inspection), and the process technology, to Match Customer next generation displays AMOLED Flexible 4K 8K Targeting China growth opportunity with expanded local presence and increased capacity in Taiwan Photronics InvestmentsCapture Near Term Growth OpportunitiesPHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201561 PDMC Dr. Frank LeePresident, GM, PDMC PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201562 New Photomask Company in Taiwan Structure Stock-for-stock merger of subsidiary of Photronics (PSMC) and subsidiary of DNP (DPTT) Ownership 50.01% Photronics; 49.99% DNP Management Senior leadership from PSMC and company managed by Photronics. General Manager - Frank Lee (President, PSMC) Vice General Manager - Hideyuki Tanaka (DNP) Other senior managers from PSMC & DPTT PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201563 Deliver a sustainable high-end solution for our customers Large economic scale, more efficient & strategic capital investment , strong R&D resources Accelerate growth in both high-end & mainstream markets in Taiwan and Asia regions Leading logic & DRAM technologies, large production capacity Strengthen our competitiveness in the industry Strategic Rationale PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201564 Create a photomask hub in Taiwan, providing the largest merchant capacity in the world to service our Asian logic & memory customers with a comprehensive local/global solution Build a solid organization, with commitment from parent companies for technology and capital investment, and to become the long-term partner of customers Impact to Customers PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201565 + Building local leadership of both logic and memory mask technology Advanced mask technology transfer Advanced mask technology transfer Technology Transfer PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201566 Hsin-Chu 1A Tai-Chung 1B Hsin-Chu 1D Quality, Capabilities, Capacity, Cycle Time, & Customer ServicePDMC Fab Sites PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201567 SiteTechnologyWriterCapacity/month PDMC 1A 90nmeBeam x 5Laser x 33000 1B 40nmeBeam x 2Laser x 31500 1D 14nmeBeam x 4Laser x 31400 Hsin-Chu 1A Hsin-Chu 1DTai-Chung 1B ++ Photomask Hub in Taiwan PDMC Mask Capacity PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201568 Successfully completed all JV PMI actions of legal, finance, HR, logistics, QA, sales, operation, facility, etc.. System integration is ongoing and to be completed by middle 2015; Maintain a stable working force by integrating the PSMC and DPTT teams; Sustain a strong and growing business partnership with UMC, which is the largest IC customer of Photronics; Conduct cost reduction activities, particularly in the saving of material, maintenance, logistics costs; Post Merger Integration (PMI)PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201569 2014/2015 PDMC Monthly Revenue PSMCPDMC PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201570 28nm logic technology in volume production using EBM-7K writer EBM-8000 writer under installation. Capable of 14nm logic and 20nm memory production 2014 2015 PDMC Writer TechnologyPHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201571 20142015 Tech. Node1Q2Q3Q4Q1Q2Q3Q4Q Logic 40nm 28nm 14nm DRAM 42nm 25nm 20nm Development (Partial spec)Qualification PhaseVolume production PDMC Technology Roadmap PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201572 Hsinchu Science Park, where PDMC fabs 1A & 1D are located, manufactures the largest numbers of IC wafers in the world PDMC has over 300 customers, including wafer fabs and IC design houses. Most of these customers are in the fast growing Taiwan or China regions Within 1 year, the JV has exceeded our business goals With more high-end business in both logic and memory foundry, PDMC will continue to grow in revenue and profit in 2015 Summary PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201573 Mainstream IC Peter Broadbent VP, Marketing & IR PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201574 Stable, healthy environment Photronics #1 Merchant (ex-Japan) 46 Years leveraged strengths in Quality, Cost, Customer Service to grow share Emerging Growth Potential Mainstream IC Business 59 58 63 60 56 59 61 64 60 59 64 66 65 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15Mainstream Revenues ($M) Increased Units, Market Share, with ASP declines PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201575 End market demand leading to increased wafer pricing, growth and stability IoT expected to drive further new design activity and node migrations (180nm, 130nm trend) Consolidation strengthens customers China market expanding Mainstream IC Growth Drivers Source: Global Semiconductor Alliance (GSA) 2015 Source: IC Insights 2015 IC Sales Leaders 2014Growth Top 50 IC Sales Leaders10% Top 109% Mainstream (ex-Japan)15% 2014 IC Growth by Product: Auto-Logic +19%, Auto Analog +15% Wireless Analog +15% Power Analog +16% 540560580600620640660Q12013Q22013Q32013Q42013Q12014Q22014Q32014Q42014Avg Price Per Wafer 200mm/ CMOS / Production ($) PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201576 Adding capacity to meet increasing demand Acquiring captive equipment Competitors not investing, closing facilities Continued execution on cost and service strategy Increased customer share Customer consolidation opportunities Capacity commitment opportunities with market growth Mainstream IC Execution PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201577 Healthy market with growth opportunities led by the IoT Benefit from #1 Position (ex-Japan) High-end mainstream capacity and market growth Poised with capability, capacity and operating model to capture additional share gains and revenue growth Opportunity to continue to invest and expand share as market gains momentum Further consolidation opportunities with customers and others Mainstream Summary PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201578 Financials Outlook Sean Smith SVP, CFO & PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201579 Financial fundamentals 2015 Outlook Long-Term Opportunity and Targets Summary Agenda PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201580 Financial Fundamentals PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201581 Strong and improving Balance Sheet; Net cash position Tremendous operating leverage greater than `50% targeted margin onincremental revenue Continuously evaluate all global costs for reductions and avoidance Maximize free Cash Flow; FCF since 2009 Reduce cost of capital and debt Maintain financial flexibility Exceed financial goals and targets Photronics Financial Fundamentals PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201582 Building Solid Financial Foundation ($ in millions) 9 32 41 22 51 127 173 135 110 117 87 209 234 214 197 448 517 549 554 598 2010 2011 2012 2013 2014Net Cash EBITDA Working Capital Tangible Book ValuePHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201583 Strong EBITDA Margins $361 $426 $512 $450 $423 $456 $83 $127 $173 $135 $110 $11723% 30% 34% 30% 26% 26% 0%5%10%15%20%25%30%35%01002003004005006002009 2010 2011 2012 2013 2014Revenue EBITDA EBITDA Margin$ millions PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201584 Capitalization ($ in millions) Y/E-13Y/E-14Q1-15 Cash$216$193$169 Senior unsecured 3.25% convertible(50% due Apr. 2016, 50% due Apr. 2019) $115 $115 $115 Capital lease 3.09% due 20161176 Capital lease 2.77% due 2018252019 $50 million revolving credit agreement 1.7% (due Dec. 2018) --- $25 million term loan 2.69% (due Mar. 2017, paid off Dec. 2013)21-- Senior unsecured 5.5% convertible (due Oct. 2014, converted)22-- Total Debt$194$142$140 Net cash $22$51$29 LTM EBITDA$110$117$126 Total leverage1.76x1.21x1.11x PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201585 2015 Outlook PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201586 Q1 Sales of $123.5 million (guidance of $121 - $126 million) IC photomask sales of $101.5 million, up 2% sequentially High-end sales (45 nm and below) of $36.4 million, up 8% sequentially Mainstream sales of $65.1 million, (1%) sequentially FPD photomask sales of $22 million, (11%) sequentially Gross Margin 22.8%, Operating Margin 9.4%; both up sequentially Non-GAAP Diluted EPS of $0.07 (guidance of $0.02 - $0.07 per share) Non-GAAP EBITDA of $34 million Q1 Financial Results PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201587 Q/Q IC Revenue High-end (45 nm and below) 2015: $101.5 MMainstream $65 M (64%) High-End $36 M (36%) Mainstream $60 M (78%) High-End $17 M (22%) 2014: $76.2 MPHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201588 High-end (G8 and AMOLED)Q/Q FPD Revenue 2015: $22.0 M 2014: $25.3 MMainstream $7 M (30%) High-End $15 M (70%) Mainstream $10 M (38%) High-End $16 M (62%) PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201589 Q2-2015 Guidance(in millions, except EPS) Q2 Revenues$121 - $128 Taxes: Q2-2015$2.7 - $3.7 FY-2015$12 - $15 Cash Cap Ex FY 2015$100 - $110 Diluted Shares67 78 (1) Q2 EPS $0.04 - $0.09 (1) Convertible shares become dilutive at net income of $6.5 million PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201590 Expect top and bottom line improvement in 2015 Expect EBITDA to grow in 2015 Cash Cap Ex of $100 - $110 million Post 2015 expect cash Cap Ex to be down to $50 - $75 million Expect to build on momentum established as a leader in advanced photomask technology 2015 Outlook PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201591 Long-Term Opportunity and Targets PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201592 Strong Operating Leverage 494 522 600 136 150 192 $18.9 $29 $55 $0.28 $0.42 $0.82Q1-2015 Annualized 2015 AnalystConsensusLong TermOpportunityRevenueEBITDANet Income $MEPSPHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201593 Annual revenues of $600 million Gross and Operating Margin targets of 30% and 17%, respectively EBITDA of at least $ 192 million Minimum Net Cash of $75 million EPS $0.82 + Long-Term Financial Targets PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201594 Foundry Logic (UMC, Samsung, Intel, SMIC, GF) Memory/Flash ( Micron, Inotera, PowerChip, Nanya) FPD (Samsung, LG and China) Mainstream (IOT and Market Share) Potential consolidation Multiple Growth Drivers PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201595 Global Merchant Market leader Poised to outpace industry growth rate Multiple growth drivers-foundry logic, memory, FPD, IOT, potential consolidation High operating leverage to deliver strong earnings growth Strong balance sheet with lean and flexible business model Investment Summary PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201596 Q & A PHOTRONICS ANALYST INVESTOR DAY - MARCH 26, 201597