Entegris, Inc. · NASDAQ:ENTG
Entegris — Investor Day (May 2012)
87 slides from Entegris's investor day presentation, May 24, 2012
Slide 1: 2012 Analyst Day
May 23, 2012 2012 Analyst Day May 23, 2012 2012 Analyst Day Exhibit 99.1
Slide 2: Safe Harbor
Safe Harbor Safe Harbor Certain information contained in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve substantial risks and uncertainties that could cause actual result
Slide 3: Agenda
Agenda Agenda The Path to $1B Gideon Argov President and CEO What Node Transitions Mean for Entegris Bertrand Loy Executive Vice President and COO Delivering Higher Value at Advanced Nodes Todd Edlund Vice President and General Manager, CCS Division Why We Are Winning in the Market Greg Morris Vice
Slide 4: The Path to $1B
Gideon Argov President and CEO The Path to $1B Gideon Argov President and CEO The Path to $1B
Slide 5: 2011: Another Record Year
2011: Another Record Year 2011: Another Record Year We achieved record sales, earnings and cash flow in 2011 We out-performed our markets Strong contribution from new products New emerging markets did well, despite challenging environment We delivered on our operating model
Slide 6: Proven Strategies in Place to Achieve Superior Growth and Profitability
Proven Strategies in Place to Achieve Superior Growth and Profitability 1. Macro Industry Growth 2. Semi Market Initiatives 3. Adjacent Market Expansion Proven Strategies in Place to Achieve Superior Growth and Profitability Growth Strategies Concentrating on the highest growth fab processes Increas
Slide 7: Our Strategy is Working: We're Growing Faster than Our Markets
Our Strategy is Working: We’re Growing Faster than Our Markets Our Strategy is Working: We’re Growing Faster than Our Markets Source: Gartner, March 2012; Entegris Entegris vs. Industry (CAGR) 3-yr. CAGR = 14% 3-yr. CAGR = 4% (65% MSI + 35% WFE) *In millions of square inches of silicon Semiconductor
Slide 8: Why the Industry Will Continue to Grow
Why the Industry Will Continue to Grow 26% 38% 7% 23% 4% 17% 29% 7% 42% 4% Growing middle class will continue to purchase electronics Why the Industry Will Continue to Grow Source: Organization for Economic Cooperation and Development (OECD), 2010 Billions of 2005 PPP$ 100% 100% 1% 1% 12-yr. CAGR =
Slide 9: Why the Industry Will Continue to Grow
Why the Industry Will Continue to Grow Why the Industry Will Continue to Grow Semiconductor market drivers remain strong Source: Gartner, December 2011 and March 2012 Annual Unit Growth 2011 to 2015 79% 71% 33% 16% 6% Smartphones Tablets IPTV Set-Tops Mobile PCs Automotive
Slide 10: Why the Industry Will Continue to Grow
Why the Industry Will Continue to Grow Why the Industry Will Continue to Grow MSI = millions of square inches of silicon Source: Gartner, March 2012 Industry outperforms worldwide GDP Estimated 5-yr. CAGR = 5.1% 5-yr. CAGR = 3.3% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 11: Why the Industry Will Continue to Grow
Why the Industry Will Continue to Grow Why the Industry Will Continue to Grow Source: Gartner, March 2012 Year-End Capacity by Linewidth (MSI/Quarter) Worldwide capacity increases through advanced technologies; maintains strong base at legacy nodes WW capacity has only contracted twice 1,000 1,500 2
Slide 12: Revenue Drivers: The Path to $1 Billion
Revenue Drivers The Path to $1 Billion The Path to $1 Billion Industry growth less ASP erosion. Based on $35B annual WFE Spend and 12.6B MSI market size in 2014 Semi Market initiatives in Wet Etch and Clean, Lithography, CMP and 450 mm Incremental growth from market share gains in Solar, Life Scienc
Slide 13: When Will We Reach $1 Billion?
When Will We Reach $1 Billion? We believe we can achieve a $1 Billion run rate in 2014 organically When Will We Reach $1 Billion? Need strong industry environment Unit production of 12.6 billion in MSI (5-yr. CAGR = 5.1%) $35 billion in capital investment Continued strong execution New differentiate
Slide 14: What Makes Entegris Unique
What Makes Entegris Unique What Makes Entegris Unique Importance of what we do in the industry Increasing need for contamination control in advanced manufacturing Entegris is uniquely positioned in the industry Fully engaged with the industry market and technology leaders on key technologies includi
Slide 15: What Node Transitions Mean for Entegris
Bertrand Loy Executive Vice President and COO What Node Transitions Mean for Entegris Bertrand Loy Executive Vice President and COO What Node Transitions Mean for Entegris
Slide 16: Key Points
Key Points Key Points We are gaining share due to increased customer focus We are expanding the breadth and depth of our technology Our “seat at the table” is becoming bigger as our customers expect us to do more Increasing costs of next generations of technology are creating Darwinian pressure on t
Slide 17: Breadth and Depth of Technology
Breadth and Depth of Technology Wafer/Reticle Handling Advanced Materials Filtration Purification Fluid Handling Breadth and Depth of Technology Microenvironments $182 M Wafer and Reticle Handling Specialty Materials $83 M Ion Implant, Dry Etch Contamination Control Solutions $484 M Lithography, WEC
Slide 18: Contamination Control Solutions
Contamination Control Solutions 28% 29% 12% Contamination Control Solutions Focused on three rapidly growing process areas Wet etch and clean Lithography Chemical mechanical planarization $1.2B served available market Largest, rapidly growing, most profitable division Liquid Filtration Dispense/Pump
Slide 19: Microenvironments
Microenvironments 21% 16% 2% Reticle Pods Carriers and shippers for handling wafers, reticles and other critical substrates Investing in advanced process carriers $400M served available market Solid cash generator Microenvironments 450 mm HVM MAC Products 300 mm+ Wafer Shipping 300 mm+ Wafer Handlin
Slide 20: Specialty Materials
Specialty Materials 16% 22% 9% 0% 5% 10% 15% 20% 25% Focused on high-temperature applications in semiconductor and adjacent markets $300M served available market Newest division with diversified opportunities for growth Specialty Materials Premium Graphite and Silicon Carbide E-chucks Products/Techn
Slide 21: Technology Advances Drive Demand
Technology Advances Drive Demand Technology Advances Drive Demand Mobile apps, 3D TV 140 million active Twitter users Predictive safety systems OLED screens widespread HD video conferencing Cloud computing USB flash drives Broadband Streams to HDTVs China plans moon rover launch 3D technologies are
Slide 22: Technology Advances Drive Demand
Technology Advances Drive Demand Technology Advances Drive Demand
Slide 23: Technological Advancements are Now More Costly
Technological Advancements are Now More Costly Cost per gate increases at 20 nm Technological Advancements are Now More Costly Source: International Business Strategies Inc 2012 2008 2006 2002 Wrong Trend Future Cost per Million Gates ($) 90 nm 65 nm 40 nm 28 nm 20 nm 14 nm .0636 .0521 .0362 .0267 .
Slide 24: A Massive Technology Shift Ahead
A Massive Technology Shift Ahead 450 mm 300 mm A Massive Technology Shift Ahead Transistor Cost Scaling Factor Yield Optimization Wafer Cost EUV Litho Contamination Control 450 mm 90%
Slide 25: Our Business Model: Increasing Customer Intimacy – How It Works
Our Business Model: Increasing Customer Intimacy – How It Works Relevant, Trusted, Technology Partner Application and Process Knowledge We Develop Relevant Final Solution We Listen We Respond Quickly with Prototypes Direct Engagement by Engineering Teams Faster New Product Development Expand Applica
Slide 26: Strategically Augmenting Capabilities Close to Customers
Strategically Augmenting Capabilities Close to Customers Asia 38% Europe 14% Japan 19% Strategically Augmenting Capabilities Close to Customers FY11 Sales by Region North America 29% R&D, manufacturing, sales and labs close to customers around the world Europe and Israel Asia and Japan North America
Slide 27: Strategically Augmenting Capabilities Close to Customers
Strategically Augmenting Capabilities Close to Customers Europe and Israel Germany Israel France Strategically Augmenting Capabilities Close to Customers Europe COATINGS MANUFACTURING FACILITY Lyon, France
Slide 28: Strategically Augmenting Capabilities Close to Customers
Strategically Augmenting Capabilities Close to Customers Asia and Japan Singapore Malaysia China Korea Japan Taiwan TAIWAN SCIENCE PARK BRANCH Taiwan Strategically Augmenting Capabilities Close to Customers Asia PURELINE CO., LTD. An Entegris Company Korea
Slide 29: Strategically Augmenting Capabilities Close to Customers
Strategically Augmenting Capabilities Close to Customers Strategically Augmenting Capabilities Close to Customers North America North America California Colorado Minnesota Texas Massachusetts i2M CENTER FOR ADVANCED MATERIALS SCIENCE Massachusetts ADVANCED TECHNOLOGY CENTER Colorado
Slide 30: R&D Leveraged to Key Technology Trends
R&D Leveraged to Key Technology Trends Filtration Purification Fluid Handling Wafer/Reticle Handling Advanced Materials/Coatings R&D Leveraged to Key Technology Trends EUV 3D New Materials 450 mm Entegris Technologies Key Technology Trends Increasing focus on JDAs and partnerships
Slide 31: Entegris' Technologies Touch All Fab Critical Processes
Entegris’ Technologies Touch All Fab Critical Processes Entegris’ Technologies Touch All Fab Critical Processes Filtration Fluid Handling Wafer Handling Purification Advanced Materials Diffusion CVD Ion Implant Metrology Overhead Transport System Wet Etch and Clean CMP Dry Etch Lithography Analyst D
Slide 32: Leveraging Entegris Technologies into Adjacent Markets
Leveraging Entegris Technologies into Adjacent Markets Adjacent markets moving closer in process control and purity requirements Leveraging current Entegris technologies into adjacent markets 70% 70% Leveraging Entegris Technologies into Adjacent Markets Semi Flat Panel PV Solar Data Storage Compoun
Slide 33: A Portfolio of Opportunities in Adjacent Markets
A Portfolio of Opportunities in Adjacent Markets Comp Semi/LED PV Solar Aerospace A Portfolio of Opportunities in Adjacent Markets
Slide 34: A Portfolio of Opportunities in Adjacent Markets
A Portfolio of Opportunities in Adjacent Markets Gas purification systems for the MOCVD process Comp Semi/LED PV Solar Aerospace A Portfolio of Opportunities in Adjacent Markets Entegris Solution Process gas purity has been shown to increase yields in HBLEDs Customer Issue
Slide 35: A Portfolio of Opportunities in Adjacent Markets
A Portfolio of Opportunities in Adjacent Markets Gas and liquid filtration combined with ultra-high purity components Gas purification systems for the MOCVD process Comp Semi/LED PV Solar Aerospace A Portfolio of Opportunities in Adjacent Markets Process gas purity has been shown to increase yields
Slide 36: A Portfolio of Opportunities in Adjacent Markets
A Portfolio of Opportunities in Adjacent Markets Gas and liquid filtration combined with ultra-high purity components Specialized graphite bushings, rings and air seals replace existing materials Gas purification systems for the MOCVD process Comp Semi/LED PV Solar Aerospace A Portfolio of Opportuni
Slide 37: Positioned for Growth
Positioned for Growth Positioned for Growth The technology changes facing our industry over the next five years are massive Contamination control is becoming even more critical to the industry We are working more closely than ever with our customers We are investing to fully realize both our near-te
Slide 38: Delivering Higher Value at Advanced Nodes
Todd Edlund Vice President and General Manager, CCS Division Delivering Higher Value at Advanced Nodes Todd Edlund Vice President and General Manager, CCS Division Delivering Higher Value at Advanced Nodes
Slide 39: Contamination Control Solutions Division – Focus on Growth
Contamination Control Solutions Division – Focus on Growth Contamination Control Solutions Division – Focus on Growth Bring greater value and additional product solutions to growing semi processes Wet Etch and Clean Lithography CMP Apply solutions to other challenging markets Growth Drivers CCS is u
Slide 40: Entegris' Technologies Touch All Fab Critical Processes
Entegris’ Technologies Touch All Fab Critical Processes Entegris’ Technologies Touch All Fab Critical Processes Filtration Fluid Handling Wafer Handling Purification Advanced Materials Diffusion CVD Ion Implant Metrology Overhead Transport System Wet Etch and Clean CMP Dry Etch Lithography Analyst D
Slide 41: Three Key Process Areas for Entegris
Three Key Process Areas for Entegris Three Key Process Areas for Entegris Lithography Wet Etch and Clean CMP 26% CCS Revenue 28% CCS Revenue 7% CCS Revenue Filtration Fluid Handling Wafer Handling Purification Advanced Materials Analyst Day 2012 | 41
Slide 42: Advancing Technology Nodes Drive Our Product Demands
Advancing Technology Nodes Drive Our Product Demands 193 nm 193 nm Immersion Double Patterning Multiple Patterning 193 nm/DSA EUV/DSA High Concentration Recirculation / Batch Weaker Concentration Mixed Batch / Single Wafer Ultra Dilute Specialized Cleaning Single Wafer Glass (oxide) Tungsten Glass (
Slide 43: Photolithography Solutions: Blanketing the Process
Photolithography Solutions: Blanketing the Process Photolithography Solutions: Blanketing the Process Valves Fittings Pumps POU filters Gas filters Chemical filters HUGs Reticle pods UPW purification systems Scanning mirrors
Slide 44: Litho Technology Driving Gas Contamination Control Solutions
Litho Technology Driving Gas Contamination Control Solutions 193 nm 193 nm Immersion Double Patterning Multiple Patterning 193 nm/DSA EUV/DSA ArF Immersion ppt detection CO gas purification Many contaminants Multi-gas purification systems Asymmetric AMC filters Litho Technology Driving Gas Contamina
Slide 45: Dispense and Filtration Combination: Increasing Throughput and Yield
Dispense and Filtration Combination: Increasing Throughput and Yield and Decreasing Waste 193 nm 193 nm Immersion Double Patterning Multiple Patterning 193 nm/DSA EUV/DSA Dispense and Filtration Combination: Increasing Throughput and Yield and Decreasing Waste Combining two-stage filtration/dispense
Slide 46: Photochemical Filtration Challenges and Solutions
Photochemical Filtration Challenges and Solutions 193 nm 193 nm Immersion Double Patterning Multiple Patterning 193 nm/DSA EUV/DSA Photochemical Filtration Challenges and Solutions 3 and 5 nm UPE/Duo Filtration 50 nm UPE Symmetric Membrane Selective Nano Filtration/ Purification Impact 2 UPE Impact
Slide 47: Photochemical Filtration Delivering Higher Value to Customers
Photochemical Filtration Delivering Higher Value to Customers Photochemical Filtration Delivering Higher Value to Customers Advanced Nodes Grew >44% Older Nodes 1.5X ASP
Slide 48: Wet Etch and Clean Solutions: Production to Consumption
Wet Etch and Clean Solutions: Production to Consumption Wet Etch and Clean Solutions: Production to Consumption Valves Fittings Liquid filters Flow control Containers Manifolds Analyst Day 2012 | 48
Slide 49: Evolving Challenges for Wet Etch and Clean Applications
Evolving Challenges for Wet Etch and Clean Applications High Concentration Recirculation / Batch Weaker Concentration Mixed Batch / Single Wafer Ultra Dilute Specialized Cleaning Single Wafer Dilute Chemistries/ Etch Control Process Flexibility In-line Mixing Particle Generation Higher Temperatures
Slide 50: Wet Etch and Clean Revenue: Sensing and Control
Wet Etch and Clean Revenue: Sensing and Control Wet Etch and Clean Revenue: Sensing and Control Entegris benefits from WEC move to sophisticated flow control 0.0 0.5 1.0 1.5 2.0 2.5 2006 2007 2008 2009 2010 2011 Normalized Sensing and Control Revenues
Slide 51: Evolving Contamination Control Challenges for WEC Applications
Evolving Contamination Control Challenges for WEC Applications High Concentration Recirculation / Batch Weaker Concentration Mixed Batch / Single Wafer Ultra Dilute Specialized Cleaning Single Wafer Evolving Contamination Control Challenges for WEC Applications QuickChange ATM/ATE Symmetric PTFE Med
Slide 52: WEC Filtration Value Growing with Advanced Technology
WEC Filtration Value Growing with Advanced Technology <0.1 um >20 nm 0.1 um and larger 20 nm and below WEC Filtration Value Growing with Advanced Technology 2X ASP 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2006 2008 2010 2012 2006 2007 2008 2009 2010 2011 Normalized ASP Advanced Filters Advanced Solutions Impact
Slide 53: Total CMP Solutions: Room to Grow our SAM
Total CMP Solutions: Room to Grow our SAM Total CMP Solutions: Room to Grow our SAM Filters Flow control PVA brushes Valves Fittings Containers Coatings
Slide 54: Post CMP Clean Brush: Establishing New SAM
Post CMP Clean Brush: Establishing New SAM Glass (oxide) Tungsten Cu, STI Polysilicon Cu LK Cap LK Glass (oxide) Tungsten Cu, STI Polysilicon Cu LK Cap LK Metal Gates Glass (oxide) Tungsten Cu, STI Polysilicon Cu LK Cap LK Metal Gates High K 3D packaging TSV ... Advanced production line Ultraclean m
Slide 55: CMP Pad Conditioner: Combining Capabilities to Expand our SAM
CMP Pad Conditioner: Combining Capabilities to Expand our SAM Inside 2000°C CVD Reactor Glass (oxide) Tungsten Cu, STI Polysilicon Cu LK Cap LK Glass (oxide) Tungsten Cu, STI Polyilicon Cu LK Cap LK Metal Gates Glass (oxide) Tungsten Cu, STI Polysilicon Cu LK Cap LK Metal Gates High K 3D packaging T
Slide 56: Entegris R&D Infrastructure Serves Our Diverse Solution Set
Entegris R&D Infrastructure Serves Our Diverse Solution Set IMEC, IBM, several universities and customer joint developments address emerging needs and work on yield and efficiency improvements Entegris R&D Infrastructure Serves Our Diverse Solution Set Partnerships
Slide 57: The New i2M Center for Advanced Materials Science
The New i2M Center for Advanced Materials Science The New i2M Center for Advanced Materials Science Bedford, MA $55M to $60M investment 100 employees Purpose-built for coming generation of nano level capabilities Advanced membrane/separation media manufacturing and R&D – liquid and gas applications
Slide 58: Advancing Customer Demands Play to Our Strengths
Advancing Customer Demands Play to Our Strengths Advancing Customer Demands Play to Our Strengths Challenging contamination control demands at advanced nodes are driving up the value of what we do Entegris is already delivering solutions that are being quickly adopted for use in key semiconductor pr
Slide 59: Why We Are Winning in the Market
Greg Morris Vice President and General Manager, Global Field Operations Why We Are Winning in the Market Greg Morris Vice President and General Manager, Global Field Operations Why We Are Winning in the Market
Slide 60: Across the Semiconductor Ecosystem
Across the Semiconductor Ecosystem Foundries Logic Memory OEM Tool Co’s Wafer Growers Chemical Co’s R&D Consortia Eng. Contractors Across the Semiconductor Ecosystem Device Makers OEMs Materials Suppliers Materials Suppliers 18% Device Makers 53% OEMs 26% Semiconductor-related sales by key customer
Slide 61: Only a Handful of Companies Can Afford to Drive Industry Technology Roadmap
Only a Handful of Companies Can Afford to Drive Industry Technology Roadmap Device makers are managing their technology roadmaps and supply chains more globally Only a Handful of Companies Can Afford to Drive Industry Technology Roadmap Source: Gartner, March 2012 Fewer fabs can afford cost of next
Slide 62: Our Changing Market Dynamics – Consolidation of OEMs
Our Changing Market Dynamics – Consolidation of OEMs Our Changing Market Dynamics – Consolidation of OEMs Source: Gartner, March 2012 and April 2007 Market Share of Top 2 Lithography Tool OEMs Market Share of Top 2 Etch/CMP Tool OEMs Market Share of Top 2 RTP/Diffusion Tool OEMs Market Share of Top
Slide 63: Focusing Our Resources On the Most Strategic and Critical Customers
Focusing Our Resources On the Most Strategic and Critical Customers Tier 2 Tier 1 Strategic and Critical Tier 3 Focusing Our Resources On the Most Strategic and Critical Customers Unclear commitment to ITRS Regional powerhouses “Opportunity enablers” General Sales Force Companies committed to ITRS F
Slide 64: Entegris is Leveraged Throughout the Fab Life Cycle
Entegris is Leveraged Throughout the Fab Life Cycle Entegris is Leveraged Throughout the Fab Life Cycle Our solutions have a critical role in volume ramp and fab upgrades Entegris Sales Opportunity by Product Advanced Materials and Coatings Purification Filtration Fluid Handling Wafer Handling: Ship
Slide 65: Our Business Model: Increasing Customer Intimacy to Increase Share
Our Business Model: Increasing Customer Intimacy to Increase Share We Respond Quickly with Prototypes Relevant, Trusted, Technology Partner Relevant Final Solution We Develop We Listen Process Knowledge Application and Our Business Model: Increasing Customer Intimacy to Increase Share Pilot Capabili
Slide 66: Global Footprint and Breadth of Technology Provide Unique Competitive Position
Global Footprint and Breadth of Technology Provide Unique Competitive Position Global Footprint and Breadth of Technology Provide Unique Competitive Position Infrastructure/Footprint Global Regional SAES GEMU Miraial Pall Parker SEP
Slide 67: Market Share Wins: The Right Technology at the Right Time
Market Share Wins: The Right Technology at the Right Time Cross contamination, moisture control and particle reduction at 32 nm created new technical requirements We demonstrated our understanding of problem with our ongoing work with OEMs, consortia and technology leaders Our investments through th
Slide 68: Market Share Wins: Offering the Most Pure Solutions
Market Share Wins: Offering the Most Pure Solutions Leading fabs consulted with Entegris regarding yield issues occurring during ramp of 32 nm and 28 nm processes We quickly delivered our Torrento® filter for wet etch and clean processes Torrento uses Entegris’ membrane and surface modification expe
Slide 69: Market Share Wins: Understanding Customer Needs Enables Share Gains
Market Share Wins: Understanding Customer Needs Enables Share Gains in Other Areas Advanced ion implant processes require chamber components and materials that can withstand high temperature and corrosion We used our proprietary coatings technology to develop the market-leading cleaning and coating
Slide 70: Market Share Wins: Offering the Most Pure Solutions
Market Share Wins: Offering the Most Pure Solutions Higher levels of purity of all chemicals is required for 2X technology nodes Chemical suppliers require that new container solutions also seamlessly fit with existing fab connections Entegris offers the most pure container solutions By meeting all
Slide 71: In Summary
In Summary In Summary Customer consolidation in our markets is providing opportunities to leverage technology and product breadth and global footprint We’ve aligned our field operations to focus on the most impactful customers We’re winning in the market by increasing our intimacy with key customers
Slide 72: What This Means for Investors
Greg Graves Executive Vice President and CFO What This Means for Investors Greg Graves Executive Vice President and CFO What This Means for Investors
Slide 73: The 2011 Scorecard: Building on Another Great Year
The 2011 Scorecard: Building on Another Great Year Strengthened Financial Position Superior Profitability Superior Growth Record sales of $749M in 2011 Grew faster than our markets and our peers Record operating profit Achieved target model Record cash flow from operations The 2011 Scorecard: Buildi
Slide 74: Strong Relative Revenue Growth
Strong Relative Revenue Growth Strong Relative Revenue Growth 2011 revenue growth vs. peers *Comparable weighted average growth rate based on 65% unit-driven and 35% capital-driven Capital-Driven Peers Unit-Driven Peers -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Entegris Comp Avg* Company A Company B Co
Slide 75: Strong Relative Profitability
Strong Relative Profitability Strong Relative Profitability 2011 operating margin (EBITA) vs. peers Capital-Driven Peers Unit-Driven Peers 5% 10% 15% 20% Entegris Company A Company B Company C Company D
Slide 76: Best-in-Class Return on Invested Capital
Best-in-Class Return on Invested Capital Best-in-Class Return on Invested Capital 2011 ROIC vs. peers Capital-Driven Peers Unit-Driven Peers
Slide 77: Strong Performance Continues in 2012
Strong Performance Continues in 2012 Q1-12 Revenue Growth vs. Peers Strong Performance Continues in 2012 *Comparable weighted average growth rate based on 65% unit-driven and 35% capital-driven Capital-Driven Peers Unit-Driven Peers Q1-12 Operating Margin (EBITA) vs. Peers Capital-Driven Peers Unit-
Slide 78: Achieved Target Model Every Quarter Since Introduction
Achieved Target Model Every Quarter Since Introduction Achieved Target Model Every Quarter Since Introduction Percent Sales 0% 5% 10% 15% 20% 25% Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Target Operating Model % Actual Operating Margin (EBITA)
Slide 79: Well Positioned to Continue to Perform: Division Portfolio
Well Positioned to Continue to Perform: Division Portfolio $484 $331 $74 $83 $182 $191 Well Positioned to Continue to Perform: Division Portfolio CCS High growth driven by increasing contamination control requirements 23% - 28% High investment to sustain superior growth and margins High-Profit Growt
Slide 80: Well Positioned to Continue to Perform: Largely Unit-Driven Business
Well Positioned to Continue to Perform: Largely Unit-Driven Business Provides a Stable, Growing Base Capex-Driven Sales Unit-Driven Sales Well Positioned to Continue to Perform: Largely Unit-Driven Business Provides a Stable, Growing Base Source: Gartner March 2012 Entegris Quarterly Revenue Contrib
Slide 81: Well Positioned to Continue to Perform: Customer and Product Diversification
Well Positioned to Continue to Perform: Customer and Product Diversification Contribute to Stability Well Positioned to Continue to Perform: Customer and Product Diversification Contribute to Stability Our largest customers are typically only 5% to 7% of total revenue Our top ten customers are less
Slide 82: Investing to Insure Future Growth
Investing to Insure Future Growth 300 Leveraged Infrastructure Enhanced Capabilities New Technologies Investing to Insure Future Growth Enhancement of 300 mm wafer shipping and process products Market-leading 450 mm solutions Advanced filtration for Wet Etch and Clean i2M Center for Advanced Materia
Slide 83: Updated Target Earnings Model at Various Revenue Levels
Updated Target Earnings Model at Various Revenue Levels Goal of $1 EPS at $1 billion run rate remains intact Increased investment levels will be staged over the next several quarters Operating margins are attractive and remain above most comparable companies Increased spending at lower revenue level
Slide 84: Strong Cash Flow Across the Cycle
Strong Cash Flow Across the Cycle Free Cash Flow Capability ¹ Actual Free Cash Flow Strong Cash Flow Across the Cycle Generated $127 million of free cash flow in 2011 Cumulative free cash flow of $387 million since 2007 During the worst downturn in the industry’s history, free cash flow was only $9
Slide 85: Balance Sheet Continues to Strengthen
Balance Sheet Continues to Strengthen At December 2011, Entegris had debt-free balance sheet and $2 in cash per share Balance Sheet Continues to Strengthen $ and share data in millions Total debt equals long-term debt, current maturities of long-term debt, and short-term borrowings March 31, 2012 De
Slide 86: In Summary
In Summary In Summary Our results in the past two years demonstrate our ability to out-grow the market and deliver superior profitability and excellent cash flow Our core technologies are critical in solving the industry’s most difficult contamination issues We are expanding the breadth of our techn
Slide 87: Entegris
CO Entegris creating a material advantage