EX-99.2 3 a50578730-ex992.htm EXHIBIT 99.2

Exhibit 99.2

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Investor Financial Summary (dollars in millions)Q1 CY11Q2 CY11Q3 CY11Q4 CY11Q1 CY12Q2 CY12Q3 CY12Q4 CY12CY2011CY2012Revenue by Segment272$ 231$ 218$ 153$ 354$ 167$ 110$ 102$ 873$ 734$ Photovoltaic (PV)186$ 199$ 111$ 34$ 31$ 9$ 2$ 7$ 530$ 49$ Polysilicon79$ 24$ 98$ 87$ 154$ 122$ 96$ 89$ 289$ 461$ Sapphire 6$ 9$ 8$ 31$ 169$ 36$ 13$ 6$ 55$ 224$ Revenue by Geography272$ 231$ 218$ 153$ 354$ 167$ 110$ 102$ 873$ 734$ Asia267$ 226$ 187$ 149$ 348$ 164$ 106$ 100$ 829$ 718$ U.S.3$ 4$ 2$ 2$ 3$ 2$ 2$ 2$ 11$ 10$ Europe/ROW2$ 1$ 28$ 1$ 3$ 1$ 2$ 1$ 33$ 6$ Gross Profit117$ 113$ 95$ 66$ 152$ 60$ 35$ (41)$ 391$ 206$ Gross Margin %43%49%44%43%43%36%32%-40%45%28%Non-GAAP Gross Margin %43%49%44%43%43%36%32%32%45%38%Operating Expenses34$ 35$ 41$ 34$ 36$ 36$ 30$ 135$ 144$ 237$ Research and Development8$ 11$ 10$ 13$ 15$ 14$ 19$ 23$ 43$ 71$ Sales and Marketing6$ 6$ 7$ 4$ 3$ 4$ 3$ 5$ 23$ 15$ General and Administrative18$ 16$ 20$ 14$ 15$ 15$ 15$ 14$ 67$ 60$ Operating Income83$ 79$ 54$ 32$ 116$ 25$ 5$ (176)$ 247$ (31)$ Net Income52$ 52$ 37$ 15$ 79$ 15$ 2$ (159)$ 156$ (63)$ Earnings per Share (Diluted)0.41$ 0.41$ 0.29$ 0.12$ 0.65$ 0.12$ 0.02$ (1.34)$ 1.21$ (0.53)$ Non-GAAP EPS*0.43$ 0.44$ 0.35$ 0.19$ 0.71$ 0.16$ 0.01$ (0.15)$ 1.41$ 0.73$ 15.937-Certain amounts in the table above may not sum or recalculate due to rounding of individual componentsCY 2012 Revenue Mix Sapphire 30% Polysilicon 63% Photovoltaic 7% 43% 49% 44% 43% 43% 36% 32% 32% 0% 10% 20% 30% 40% 50% 60% $- $50 $100 $150 $200 $250 $300 $350 $400 Q1 CY11 Q2 CY11 Q3 CY11 Q4 CY11 Q1 CY12 Q2 CY12 Q3 CY12 Q4 CY12 Revenue and Non- GAAP Gross Margin (revenue in millions) Revenue Non-GAAP Gross Margin % CY 2011 Revenue Mix Polysilicon Photovoltaic 61% Sapphire 6% -$0.75 -$0.25 $0.25 $0.75 $1.25 100 105 110 115 120 125 130 135 Q1 CY11 Q2 CY11 Q3 CY11 Q4 CY11 Q1 CY12 Q2 CY12 Q3 CY12 Q4 CY12 Non-GAAP EPS Diluted shares Outstanding Non-GAAP EPS* $8 $11 $10 $13 $15 $14 $19 $23 $6 $6 $7 $4 $3 $4 $3 $5 $18 $16 $20 $14 $15 $15 $15 $14 $- $5 $10 $15 $20 $25 $30 $35 $40 $45 Q1 CY11 Q2 CY11 Q3 CY11 Q4 CY11 Q1 CY12 Q2 CY12 Q3 CY12 Q4 CY12 R&D and SG&A Expenses Trend (in millions) Research and Development Sales and Marketing General and Administrative $3 $529 $716 Q4 CY 2012 Backlog (in millions) PV POLY SAPPHIRE $1.2 Billion Total $122 $181 $6 $940 Q4 CY 2012 Backlog: $1.2 Billion (in millions) Deferred Revenue Letters of Credit Non Refundable Customer Deposits Unshipped Orders


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Investor Financial Summary(dollars in millions)Q1 CY11Q2 CY11Q3 CY11Q4 CY11Q1 CY12Q2 CY12Q3 CY12Q4 CY12Cash, Cash Equivalents, Restricted Cash & Short-Term Investments363$ 473$ 494$ 303$ 351$ 332$ 479$ 418$ 1,254 - Restricted Cash-$ -$ 10$ 96$ -$ -$ -$ -$ 35 Non-Restricted Cash, Cash Equivalents & Short-Term Investments363$ 473$ 484$ 207$ 351$ 332$ 479$ 418$ 1,219 Debt & Convertible Notes120$ 96$ 91$ -$ 75$ 145$ 298$ 297$ 245 Non-Restricted Cash, Cash Equivalents & Short-Term Investments, net of debt242$ 378$ 393$ 207$ 276$ 187$ 181$ 121$ Vendor Advances20$ 25$ 35$ 55$ 85$ 84$ 100$ 53$ 104 Customer Deposits144$ 264$ 301$ 308$ 334$ 274$ 252$ 183$ 645 Deferred Revenue446$ 396$ 461$ 431$ 196$ 149$ 93$ 122$ 1,452 Deferred COGS255$ 229$ 247$ 230$ 101$ 72$ 41$ 55$ 823 Capital Expenditures21$ 9$ 9$ 16$ 14$ 15$ 7$ 4$ 31 Accounts Receivable87$ 55$ 68$ 51$ 66$ 41$ 11$ 24$ 296 Inventory128$ 162$ 156$ 199$ 193$ 203$ 216$ 167$ 442 Accounts Payable63$ 40$ 52$ 70$ 34$ 51$ 44$ 45$ 213 MetricsROIC (TTM)87%80%67%63%55%42%28%-26%2 ROE (TTM)92%92%70%81%69%48%32%-26%3 ROA (TTM)25%28%24%19%22%18%12%-8%DIO (TTM)69 81 92 121 111 128 145 127 DSO (TTM)28 17 26 32 29 20 19 19 DPO (TTM)30 24 32 55 34 32 37 40 Cash Conversion Cycle (TTM)67 74 86 97 106 116 126 106 Inventory Turns4.9 2.9 3.1 1.8 4.2 2.1 1.4 3.4 Inventory DOH75 126 116 208 87 173 263 106 Notes-Certain amounts in the table above may not sum or recalculate due to roundingDefintion/FormulasTTM = Trailing 12 MonthsDSO: Days Sales Outstanding = (TTM avg. A/R)/(TTM sales per day)ROIC: Return on Invested Capital = (TTM Net Inco DPO: Days Payable Outstanding = (TTM avg. A/P)/(TTM cost of sales per day)ROE: Return on Equity = (TTM Net Income)/(TTM Cash Conversion Cycle: (DIO + DSO - DPO)ROA: Return on Assets = (TTM Net Income)/(TTM Inventory Turns: (Current Period COGS x 4)/(Current Period Inventory Balance)DIO: Days Inventory Outstanding = (TTM avg. inv Inventory DOH: Inventory Days on Hand = (365/inventory turns) $363 $473 $494 $303 $351 $332 $479 $- $100 $200 $300 $400 $500 Q1 CY11 Q2 CY11 Q3 CY11 Q4 CY11 Q1 CY12 Q2 CY12 Q3 CY12 Q4 CY12 Cash, Cash Equivalents, Restricted Cash & Short-Term Investments (in millions) Non-Restricted Cash, Cash Equivalents & Short-Term Investments, net of debt Restricted Cash Debt & Convertible Notes 87% 80% 67% 63% 55% 42% 28% -26% -40% -20% 0% 20% 40% 60% 80% 100% Q1 CY11 Q2 CY11 Q3 CY11 Q4 CY11 Q1 CY12 Q2 CY12 Q3 CY12 Q4 CY12 Return on Invested Capital (TTM) 92% 92% 70% 81% 69% 48% 32% -26% -40% -20% 0% 20% 40% 60% 80% 100% 120% Q1 CY11 Q2 CY11 Q3 CY11 Q4 CY11 Q1 CY12 Q2 CY12 Q3 CY12 Q4 CY12 Return on Equity (TTM) $418


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Non-GAAP Financial MeasuresUse of Non-GAAP Financial Measures In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), GT Advanced Technologies is providing additional financial metrics that are not prepared in accordance with GAAP (non-GAAP). We believe that the inclusion of these non-GAAP financial measures helps investors to gain a meaningful understanding of our past performance and future prospects, consistent with how management measures and forecasts company performance, especially when comparing such results to previous periods or forecasts. Our management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing our performance to prior periods and to the performance of our competitors. Management also uses these measures in its financial and operational decision-making. We define "non-GAAP net income" as GAAP net income excluding share-based compensation expense, contingent consideration, amortization of acquired intangible assets, acquisition and acquisition related expenses, and the non-cash portion of interest expense. We consider non-GAAP net income to be an important indicator of our operational strength and performance of our business because it eliminates the effects of events that are not part of the Company's core operations. We define " non-GAAP earnings per share on a fully-diluted basis" as our non-GAAP net income divided by our weighted average shares outstanding on a fully-diluted basis. April 2,July 2,October 1,December 31,March 31,June 30,September 29,December 31,December 31,December 31,2011 2011 20112011 2012 2012 2012 2012 2011 2012Non-GAAP Net Income & Earnings per ShareNet income$51,894$52,069$36,915$15,340$79,073$14,757$2,344($159,409)$156,218($63,235)Non-GAAP adjustments:Amortization of acquired intangible assets978 1,070 1,760 2,822 2,546 2,547 2,538 2,534 6,630 10,165 Share-based compensation2,562 3,120 3,776 3,660 4,171 4,103 4,818 2,084 13,118 15,176 Third party acquisition related expenses114 130 3,090 240 223 246 136 945 3,574 1,550 Write-down of inventory and vendor advances- - - - - - - 71,754 - 71,754 Accelerated depreciation for early retirement of fixed asse- - - - - - - 2,520 - 2,520 Impairment of goodwill- - - - - - - 57,037 - 57,037 Restructuring charges and asset impairments- - - - - - - 33,441 - 33,441 Contingent consideration (income) expense1,262 680 2,787 464 527 155 (9,943) 296 5,193 (8,965) Non-cash portion of interest expense525 2,214 843 6,360 177 238 342 3,042 9,942 3,799 Income tax effect of non-GAAP adjustments (1)(1,801) (2,662) (3,399) (5,127) (742) (2,710) 457 (32,354) (12,989) (35,349) Non-GAAP net income $55,534 $56,621 $45,772 $23,759 $85,975 $19,336$692($18,110)$181,686$87,893Non-GAAP earnings per diluted share ("Non-GAAP EPS")$0.43$0.44$0.35$0.19$0.71$0.16$0.01($0.15)$1.41$0.73Diluted weighted average shares outstanding127,881128,561129,075124,946120,738119,379119,874119,109128,680120,067(1) The Company utilized the with and without method to determine the income tax effect on non-GAAP adjustments.(Unaudited)Twelve Months EndedThree Months Ended


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Non-GAAP Financial MeasuresUse of Non-GAAP Financial Measures In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), GT Advanced Technologies is providing additional financial metrics that are not prepared in accordance with GAAP (non-GAAP). We believe that the inclusion of these non-GAAP financial measures helps investors to gain a meaningful understanding of our past performance and future prospects, consistent with how management measures and forecasts company performance, especially when comparing such results to previous periods or forecasts. Our management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing our performance to prior periods and to the performance of our competitors. Management also uses these measures in its financial and operational decision-making. We define “non-GAAP gross profit” as GAAP gross profit excluding inventory and vendor advance write-downs and the accelerated depreciation for early retirement of fixed assets. We consider non-GAAP gross profit to be an important indicator of our operational strength and performance of our business because it eliminates the effects of events that are not part of the Company's core operations. April 2,July 2,October 1,December 31,March 31,June 30,September 29,December 31,December 31,December 31,2011201120112011201220122012201220112012Non-GAAP Gross Profit and Gross MarginRevenue271,627$ 231,096$ 217,691$ 153,028$ 353,890$ 167,252$ 110,061$ 102,333$ $873,442$733,536Cost of revenue154,763 117,707 122,606 87,030 201,562 107,046 75,033 143,491 482,106 527,132 Gross Profit116,864 113,389 95,085 65,998 152,328 60,206 35,028 (41,158) 391,336 206,404 Non-GAAP adjustments:Write-down of inventory and vendor advances- - - - - - - 71,754 - 71,754 Accelerated depreciation for early retirement of fixed assets- - - - - - - 2,520 - 2,520 Non-GAAP gross profit$116,864$113,389$95,085$65,998$152,328$60,206$35,028$33,116$391,336$280,678Non-GAAP gross margin43.0%49.1%43.7%43.1%43.0%36.0%31.8%32.4%44.8%38.3%GT Advanced Technologies Inc.Reconciliation of GAAP to non-GAAP results(In thousands, except per share data)(Unaudited)Three Months EndedTwelve Months Ended $271,627 $231,096 $153