Slide 1: Earnings Summary Fourth Quarter 2019
Exhibit 99.2 Earnings Summary Fourth Quarter 2019 February 4, 2020
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar
Slide 3: 4Q19 and FY 2019 Financial Highlights
4Q19 AND FY 2019 FINANCIAL HIGHLIGHTS • Fourth-quarter revenue of $427.0 million, increased 6% from prior year • Fiscal 2019 revenue of $1.6 billion, increased 3% • Fiscal 2019 GAAP diluted EPS of $1.87, increased 11% • Fiscal 2019 Non-GAAP diluted EPS of $1.93, increased 2% 3
Slide 4: Summary – Consolidated Statement of Operations (GAAP)
Summary – Consolidated Statement of Operations (GAAP) 4Q19 over 4Q19 over $ in millions, except per share data 4Q19 4Q19 Guidance 3Q19 4Q18 4Q18 3Q19 Net Revenue $427.0 $420 -$435 $394.1 $401.6 6.3% 8.3% Gross Margin 46.3% 43.2% 44.8% Operating Expenses $113.6 $109 - $111 $117.6 $108.4 4.8% (3.4%) O
Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)
Summary – Consolidated Statement of Operations (Non-GAAP)1 4Q19 over 4Q19 over $ in millions, except per share data 4Q19 4Q19 Guidance 3Q19 4Q18 4Q18 3Q19 Net Revenue $427.0 $420 -$435 $394.1 $401.6 6.3% 8.3% Adjusted Gross Margin2 46.3% 44.6% 45.7% Non-GAAP Operating $93.2 $90 - $92 $87.6 $90.1 3.4
Slide 6: Summary – Consolidated Statement of Operations (GAAP) Fiscal Year
Summary – Consolidated Statement of Operations (GAAP) Fiscal Year Ended Fiscal Year Ended $ in millions, except per share data December 31, 2019 December 31, 2018 Year-over-Year Net Revenue $1,591.1 $1,550.5 2.6% Gross Margin 44.7% 46.4% Operating Expenses $472.4 $427.1 10.6% Operating Income $239.3
Slide 7: Summary – Consolidated Statement of Operations (Non-GAAP) Fiscal Year
Summary – Consolidated Statement of Operations (NON-GAAP)1 Fiscal Year Ended Fiscal Year Ended $ in millions, except per share data December 31, 2019 December 31, 2018 Year-over-Year Net Revenue $1,591.1 $1,550.5 2.6% Adjusted Gross Margin2 45.3% 46.9% Non-GAAP Operating Expenses3 $358.7 $356.2 0.7%
Slide 8: Results by Segment
RESULTS BY SEGMENT1 Specialty Chemicals Microcontamination Advanced and Engineered Control Segment3 Materials Handling 2 Materials Segment 4 $ in millions Segment $180 40% $180 40% $180 40% $160 35% $160 35% $160 35% $140 $140 $140 30% 30% 30% $120 $120 $120 25% 25% 25% $100 $100 $100 20% 20% 20% $8
Slide 9: Revenue by Geography
REVENUE BY GEOGRAPHY 2019 Revenue by Geography 2019 vs. 2018 Growth Rate Revenue = $ million Taiwan 7% Taiwan N. America 10% N. America $309.8M $380.9M South Korea 1% Southeast Japan -2% Asia $103.6M $132.2M Europe China 5% $244.4M Europe -4% $205.5M Japan Southeast Asia -12% South Korea $214.7M Chi
Slide 10: Summary – Balance Sheet Items
Summary – Balance Sheet Items $ in millions 4Q19 3Q19 4Q18 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $351.9 14.0% $282.7 11.5% $482.1 20.8% Accounts Receivable, net $234.4 9.3% $261.3 10.6% $222.1 9.6% Inventories $287.1 11.4% $290.3 11.8% $268.1 11.6% Net PP&E $479.
Slide 11: Adjusted EBITDA Margin
ADJUSTED EBITDA MARGIN1 Adjusted EBITDA and Adjusted EBITDA Margin 130 29.3% 28.9% 28.5% 27.7% $125 120 27.7% 27.7% 27.5% 27.8% 27.3% 26.8% 110 $109 $110 $110 $109 25.2% $106 $108 100 23.9% $96 $97 90 $95 $88 80 $76 70 60 50 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Adj. EBITDA in
Slide 12: Cash Flows
Cash Flows $ in millions 4Q19 3Q19 4Q18 Beginning Cash Balance $282.7 $521.4 $294.9 Cash provided by operating activities $128.6 $25.3 $91.3 Capital expenditures ($25.9) ($26.3) ($34.8) Proceeds from long-term debt - - $400.0 Acquisition of business ($11.0) ($217.1) - Payments on long-term debt ($2.
Slide 13: Outlook
Outlook GAAP $ in millions, except per share data 1Q20 Guidance 4Q19 Actual 4Q18 Actual Net Revenue $415 -$430 $427.0 $401.6 Operating Expenses $111 - $113 $113.6 $108.4 Net Income $56 - $63 $57.4 $80.8 Earnings (Per Diluted Share) $0.41 - $0.46 $0.42 $0.57 Non-GAAP $ in millions, except per share d
Slide 14: Thoughtful and balanced capital allocation
Thoughtful and balanced capital allocation More than $3.5 billion allocated over the past 6 years1 (More than $630 million in 2019) Acquisition of ATMI in 2014 ($810M net of cash acquired), PSS, 2019 Saes Pure Gas, DSC, MPD, Anow continued “bolt on” $277M $1.5B Acquisitions acquisitions broadened ca
Slide 15: Entegris Capital Allocation Principles
Entegris Capital Allocation Principles Capital Structure Targets Capital Allocation Priorities • Minimum cash balance of approximately $200 million 1. Investments in R&D and CAPEX (globally) • ER&D: 8% of sales target • A debt rating of Ba1 or better • CAPEX: 7% of sales target 2. Value Accretive Ac
Slide 16: Trademark notice
Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved.
Slide 17: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT Three months ended Twelve months ended December 31, December 31, September 28, December 31, December 31, 2019 2018 2019 2019 2018 Net Sales $426,998 $401,642 $394,147 $1,591,066 $1,550,497 Gross profit-GAAP $1
Slide 18: Reconciliation of GAAP Segment Profit to Adjusted Operating Income
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP SEGMENT PROFIT TO ADJUSTED OPERATING INCOME in thousands Three months ended Twelve months ended December 31, December 31, September 28, December 31, December 31, Segment profit-GAAP1 2019 2018 2019 2019 2018 Specialty Chemicals and Engineered Mate
Slide 19: Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO ADJUSTED OPERATING INCOME AND ADJUSTED EBITDA Three months ended Twelve months ended December 31, December 31, September 28, December 31, December 31, $ in thousands 2019 2018 2019 2019 2018 Net sales $426,998 $401,642 $394,147 $1,591,066 $1,55
Slide 20: Reconciliation of GAAP Net Income and EPS to Non-GAAP
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP NET INCOME AND EARNINGS PER SHARE TO NON-GAAP NET INCOME AND EARNINGS PER SHARE Three months ended Twelve months ended December 31, December 31, September 28, December 31, December 31, $ in thousands, except per share data 2019 2018 2019 2019 2018
Slide 21: Reconciliation of GAAP Outlook to Non-GAAP Outlook
NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP OUTLOOK TO NON-GAAP OUTLOOK (In millions, except per share data) First-Quarter Outlook Reconciliation GAAP net income to non-GAAP net income March 28, 2020 GAAP net income $56 - $63 Adjustments to net income: Restructuring and integration costs 2
Slide 22: GAAP Segment Trend Data
GAAP Segment Trend Data1 $ in thousands Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Sales SCEM $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 $ 133,928 $ 124,470 $ 127,552 $ 127,750 $ 146,747 MC 100,195 104,587 116,229 115,801 118,923 124,937 151,478 158,500 15
Slide 23: Non-GAAP Segment Trend Data
NON-GAAP Segment Trend Data1 $ in thousands Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Sales SCEM $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 $ 133,928 $ 124,470 $ 127,552 $ 127,750 $ 146,747 MC 100,195 104,587 116,229 115,801 118,923 124,937 151,478 158,50