Photronics, Inc.Merchant Photomask Leader  20th Annual Needham Growth ConferenceJanuary 17, 2018 

 Safe Harbor Statement  This presentation and some of our comments may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions, and contain risks and uncertainties. Actual events or results may differ materially from those presented. These statements include words like “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “may”, “should” or the negative thereto. We cannot guarantee the accuracy of any forecasts or estimates, and we are not obligated 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 we file from time to time with the Securities and Exchange Commission, specifically our most recent Form 10K and Form 10Q.Non-GAAP Financial MeasuresThis presentation and some of our comments may reference non-GAAP financial measures. These non-GAAP financial measures exclude certain income or expense items, and are consistent with another way management internally analyzes our results of operations. Non-GAAP information should be considered to be 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” in this presentation.  2 

 Global merchant photomask market and technology leader#1 merchant market share positionDelivering high-end growth through technology leadershipInvestment strategy aligned with secular growth trendsChina industry expansionTechnology inflection from LCD to AMOLEDExpect +40% organic revenue growth over next 3 yearsStrategic investments bring top-line growthOperating leverage creates margin expansion  A Compelling Investment Thesis  3 

 BackgroundGrowth DriversFinancial Summary  Agenda  4 

 BackgroundGrowth DriversFinancial Summary  Agenda  5 

 Largest merchant photomask manufacturerExpanding global footprint to supply increasingly global customer baseInvesting to extend high end leadershipStrong and flexible balance sheet to fund growth  Photronics at a Glance  6  Key StatsMarket Symbol: PLABStock Exchange: NASDAQHeadquarters: Brookfield, CTFounded: 1969Employees: 1,475 

 All Electronic Devices Need Photomasks  7  Design  End User  Photomask  Manufacturing Process  SmartphoneTabletPCVirtual Reality Automotive TVIoTIndustrialAppliance  Transports component design to manufacturing process  Device manufacturing and end product assembly  Component Design  Unique, proprietary IC & FPD circuit design 

 BackgroundGrowth DriversFinancial Summary  Agenda  8 

 Extending Leadership ThroughHigh-End Investments  9  High-End30%  Mainstream70%  High-End68%  Mainstream32%  Growth Investment Cycle 

 Mobile devices moving from LCD to AMOLEDSuperior visual characteristicsLower power consumptionEnables flexible formatIncreases mask complexityMore mask layers per setTighter specs on each layerInstalling P-800 in H1181st to install this advanced mask writerProduces highest resolution AMOLED masks  Leveraging Technology Leadership for Mobile Display AMOLED Adoption  10  Source: Internal Estimates  iPhone X not the end of the story 

   G10.5+ Delivers Greater Glass Efficiency  11        65”  65”        75”  75”          65”  65”  65”                75”  75”  75”  75”  75”  75”                    65”  65”  65”  65”  65”  65”  65”  65”  3370 mm x 2940 mm  2200 mm x 2500 mm  1950 mm x 2250 mm  1500 mm x 1850 mm  73%  88%  64%  94%  95% 

 China represents fastest growing display region~40 fabs in production, under construction or being plannedExpected to be largest display producer within next few yearsPhotomask opportunities in China are attractiveWide range of technology, including AMOLED & G10.5+No strong merchant producer  “Made in China 2025” Driving Growth in FPD Market…  12  +17% CAGR  Source: Internal Estimates  G10.5+ CAGR +62% 

 China represents fastest growing semiconductor regionAccommodative government policy (Made in China 2025)Growing domestic producersInvestments by multi-nationalsPhotomask opportunities in China are attractiveWide range of nodes in logic and memoryNo strong domestic merchant mask producer  …and IC Market  13  18% CAGR  Source: IC Insights, May 2017 

 We already have meaningful business in ChinaStrong 5-year growth (IC +28% CAGR; FPD +73% CAGR)10% of 2017 revenue (8% of IC; 19% of FPD)Manufacturing presence in China should accelerate growthCustomer contracts will help quickly ramp facilitiesInvestment incentives reduce risk and improve returnsIC JV enables us to compete more effectively  Successfully Developing China Business  14  +39% CAGR 

   IC  FPD  Announced  August 2016  August 2017  Location  Xiamen  Hefei  Investment ($M)  $160M  $160M  Structure  Majority-owned JV  Wholly-owned  Investment time period  5 years  5 years  Technology  High-end, mainstream, logic, memory  Up to G10.5+, AMOLED  Production start  Early 2019  Spring 2019  Projected sales  $150M (total for both operations)    Investing in China Operations  15  PLAB well positioned for these investmentsGlobal merchant market and technology leaderStrong footprint in AsiaBalance sheet to support investment 

 Expanding Global Network to Serve Global Customers  16  ICFPD                            China plants under construction; plan to begin production in 2019   

 BackgroundGrowth DriversFinancial Summary  Agenda  17 

 Q4 best quarter of yearImproving customer demand trendsSequential growth in all high-end sectorsHigh-End IC +49%High-End FPD +2%Strong operating cash flow each quarterAnticipate trends to continue in 2018  Finished 2017 with Momentum  18 

 Tremendous operating leverage: 50% targetPositive Free Cash Flow since 2009Strong balance sheetSignificant net cash positionFinancial flexibility enables growth investments  Solid Financial Fundamentals  19 

 Generating Cash to Fund Investments  20  2018 capex:China IC & FPD expansionFPD P-800 mask writer~50% planned for Q418 

 Strong and Flexible Balance Sheet  21  Clear capital deployment prioritiesFund organic growthExplore strategic M&AReduce debt (converts become due in 2019)Anticipate minimum $75M net cash throughout China investment periodExcellent liquidity positionOperating cash generatorMay use credit facilities to borrow locally in China  *Net cash defined as cash and cash equivalents less long-term borrowings (including current portion) 

 Global merchant photomask market and technology leader#1 merchant market share positionDelivering high-end growth through technology leadershipInvestment strategy aligned with secular growth trendsChina industry expansionTechnology inflection from LCD to AMOLEDExpect +40% organic revenue growth over next 3 yearsStrategic investments bring top-line growthOperating leverage creates margin expansion  A Compelling Investment Thesis  22 

 Thank you for your interest!  For Additional Information:R. Troy Dewar, CFADirector, Investor Relations203.740.5610tdewar@photronics.com  

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