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First Quarter 2025 Financial Results Conference Call May 14, 2025 Supporting Slides
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Safe Harbor This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. For example, statements regarding expected (i) customer demand, (ii) utilization and cross utilization of our Fabs, (iii) demand from our end markets, (iv) market and technology trends, and (v) results regarding revenues, cash flow, margins and net profits are all forward-looking statements. Actual results may differ materially from those projected or implied by such forward-looking statements due to various risks and uncertainties applicable to Tower Semiconductor’s business as described in the reports filed by Tower Semiconductor Ltd. (“Tower”) with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority (“ISA”), including the risks identified under the heading "Risk Factors" in Tower’s most recent filings on Forms 20-F and 6-K. No assurances can be given that any of the events anticipated by the forward- looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations or financial condition of Tower Semiconductor. In addition, some of the financial information in this presentation, is non-GAAP financial measures, including, but not limited to, EBITDA, Cash, debt and Net Cash. These non-GAAP financial measures have the same definition as appear in our previously filed quarterly financial results related announcements and/ or other public filings. Tower Semiconductor is providing this information as of the date of this presentation and expressly disclaims any obligation to update any of the forward-looking statements or other information contained in this presentation as a result of new information, future events or otherwise. 2
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First Quarter 2025 Financial Results Highlights • Q1 2025 revenue: $358 million • Net profit: $40 million Outlook • Q2 2025 revenue guidance of $372 million, +/- 5%, represents ~6% year-over-year growth. • Affirming 2025 revenue target: year-over-year growth, with sequential quarter-over-quarter revenue growth. Q1'24 Q1'25 Q2'25* $327M $358M $372M* 3 * Q2’25 represents mid range guidance
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Q1 2025 Revenue Breakdown by Technology Q1’24 | $327M revenue Q1’25 | $358M revenue Automotive: 10% Automotive: 10% Sensors & Display 17% RF Mobile 19% RF Infrastructure 22% MS/ CMOS 6% Power 18% Discrete 16% Misc. 2% Sensors & Display 15% RF Mobile 37% RF Infrastructure, 14% MS/ CMOS 8% Power 10% Discrete 15% Misc. 2% 4
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Market for High Data Rate Optical Transceivers for DC/AI Source: Lightcounting TSEM Markets: RF Infrastructure Optical Fiber Transceivers HP SiGe and Si Photonics Artificial Intelligence, Datacom and Telecom - 10 20 30 40 50 60 70 80 90 2024 2029 Millions 1600 800 400 CAGR 12% CAGR 49% 5
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Envelope Tracker in an RF Transmitter • Requires combination of RF, digital, power: Tower 65nm BCD • Digital: works tightly with baseband and transceiver • RF: “Tracks” the desired signal to be transmitted • Power: Dynamically adjusts bias of the power amplifier • Reduce power to the amplifier when not needed • Maximize power to the amplifier when needed • Overall improves power efficiency and battery life. Source: Nujira 6
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Balance Sheets ($ in million) 7 March 31, December 31, 2025 2024 CURRENT ASSETS Cash and cash equivalents 275 272 Short-term deposits 906 946 Trade accounts receivable 219 212 Inventories 276 268 Other current assets 52 62 Total Current Assets 1,728 1,760 Property and equipment, net 1,346 1,287 Other long-term assets, net 35 33 TOTAL ASSETS 3,109 3,080 CURRENT LIABILITIES Short-term debt 27 48 Trade accounts payable 118 131 Customer prepayment and deferred revenue 17 22 Other current liabilities 87 84 Total Current Liabilities 249 285 Long-term debt 135 132 Other long-term liabilities 23 23 TOTAL LIABILITIES 407 440 SHAREHOLDERS’ EQUITY 2,702 2,640 TOTAL LIABILITIES & EQUITY 3,109 3,080
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Cash Reports ($ in million) 8 Q1’25 Q4’24 Q1’24 Cash opening balance, excluding securities & deposits 272 271 261 Cash from operating activities 94 101 110 Cap-Ex, net (111) (93) (98) Proceeds from (investments in) short- term deposits & investments, net 44 (4) (1) Debt repaid and others, net (24) (3) (12) Cash closing balance, excluding securities & deposits 275 272 260
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Q1‘25 P&L vs. Q4’24 and Q1’24 P&L (in thousands of $) 9
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Thank You Contact: Liat Avraham, Investor Relations Email: liatavra@towersemi.com