Entegris, Inc. · NASDAQ:ENTG
Entegris — Investor Day (July 2016)
39 slides from Entegris's investor day presentation, Jul 12, 2016
Slide 1: Entegris Analyst Meeting
Entegris Analyst Meeting JULY 12, 2016 Exhibit 99.1
Slide 2: Agenda
2 | Analyst Meeting 2016 01 Welcome, Agenda, Safe Harbor Steven Cantor, VP, Corporate Relations 02 A World Class Specialty Materials Company Bertrand Loy, President and CEO 03 Leveraging Technology Breadth To Drive Key Opportunities James O’Neill, CTO 04 Strong Financial Discipline To Grow Sharehold
Slide 3: Safe Harbor
3 | Analyst Meeting 2016 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 resul
Slide 4: A World Class Specialty Materials Company
Bertrand Loy President and CEO A World Class Specialty Materials Company JULY 12, 2016
Slide 5: Creating Compelling Long-Term Value for Shareholders
ENTEGRIS: CREATING COMPELLING LONG-TERM VALUE FOR SHAREHOLDERS Mission Critical Supplier Stable, Recurring Revenue, Strong Cash Flow, and Earnings Leverage Above-Market Growth Electronic Materials | Analyst Meeting 2016
Slide 6: Years of Providing Mission Critical Solutions
50 YEARS OF PROVIDING MISSION CRITICAL SOLUTIONS Note: Entegris founded as Fluoroware in 1966. Company became Entegris in 2000. All data is as reported. 1966 Fluoroware Founded 1981 EMPAK Founded 1999 EMPAK and Fluoroware merged; Entegris founded 2000 Entegris IPO 2005 Entegris merges with Mykrolis
Slide 7: Successfully Transforming Entegris
SUCCESSFULLY TRANSFORMING ENTEGRIS With the acquisition of ATMI in 2014, Entegris significantly increased its profitability, cash generation, and value creation potential Note: Adjusted operating margin, EPS, and EBITDA margin are Non-GAAP. $694M $1,085M Sales R&D % Sales Adj. Op. Margin EPS EBITDA
Slide 8: Yield-Enhancing Materials and Solutions
Entegris provides yield-enhancing materials and solutions for the most advanced manufacturing environments through a unique combination of technology breadth and market focus that is unmatched in its industry YIELD-ENHANCING MATERIALS SOLUTIONS Advanced Chemicals | Analyst Meeting 2016 Selected peer
Slide 9: Leveraging the Platform Across a Range of Vertical Markets
LEVERAGING THE PLATFORM ACROSS A RANGE OF VERTICAL MARKETS FY2015 sales of $1.1 billion Non-Semi Data Storage Life Sciences Solar Display Other Industrial Environmental Sustainability Semiconductor | Analyst Meeting 2016
Slide 10: High-Value Business Model
1 Non-GAAP HIGH-VALUE BUSINESS MODEL | Analyst Meeting 2016 Recurring Revenue Investment-driven Revenue Top 10 Customers All Others Fabs Semi Materials OEMs Non-semi
Slide 11: Path to Continue to Outpace Markets
Entegris is leveraging its technology breadth, global infrastructure and operational expertise to drive growth PATH TO CONTINUE TO OUTPACE MARKETS | Analyst Meeting 2016 3 to 5 year CAGR 4% to 5% expected annual growth 1-2% GROWTH from Entegris initiatives GROWTH from key trends (IoT, “Big Data” and
Slide 12: Making Entegris the Supplier of Choice
Customer Value Proposition Enabling higher yields, improved performance, reduced cost of ownership MAKING ENTEGRIS THE SUPPLIER OF CHOICE Global Responsiveness Operational Excellence Technology Portfolio Creating value by leveraging best-in-class technology with global infrastructure close to custom
Slide 13: A Robust New Product Pipeline
1 Technology/Breakthrough projects (i.e., new products) represent $75+ million of potential incremental revenue by 2018 Strong discipline around managing R&D spending and project performance tracking A ROBUST NEW PRODUCT PIPELINE Technology/Breakthrough Platform Derivatives
Slide 14: New Capacity Coming Online to Meet Growing Demand
Investing in our: Process capability Metrology capability Technology centers Attracting key talent Key capacity to meet growing demand Strategic investments in global infrastructure provide competitive advantages NEW CAPACITY COMING ONLINE TO MEET GROWING DEMAND | Analyst Meeting 2016 Shortens suppl
Slide 15: Achieving World-Class Quality
Entegris’ quality levels are approaching six sigma best in class Note: Index reflects numbers of customer complaints ACHIEVING WORLD-CLASS QUALITY | Analyst Meeting 2016
Slide 16: Path to Continue to Outpace Markets: Three Key Growth Paths
Entegris is leveraging its technology breadth, global infrastructure and operational expertise to drive growth PATH TO CONTINUE TO OUTPACE MARKETS | Analyst Meeting 2016 Three Key Growth Paths Market Share Gains New Applications SAM Expansion Customer shares information Customer enters relationship
Slide 17: Leveraging Technology Breadth To Drive Key Opportunities
James A. O’Neill, Ph.D. Chief Technology Officer Leveraging Technology Breadth To Drive Key Opportunities JULY 12, 2016
Slide 18: Increased Importance of Specialty Materials
INCREASED IMPORTANCE OF SPECIALTY MATERIALS Increasing Numbers of Materials are Being Used to Make Semiconductors Node in nm Relative Impact on Device Performance Device Performance Drivers Use of new innovative materials are having a greater impact on device performance | Analyst Meeting 2016 1980s
Slide 19: Why What We Do Matters
Next generation semiconductor manufacturing requires purity levels measured in parts per quadrillion (PPQ) Helping to achieve the most demanding levels of purity possible WHY WHAT WE DO MATTERS San Francisco bay has ~6.165 billion cubic meters of water A PPQ would be equal to finding 1 minnow in the
Slide 20: Broadest Technology Portfolio in Our Industry
BROADEST TECHNOLOGY PORTFOLIO IN OUR INDUSTRY Liquid Filtration Advanced Cleans Specialty Gases Gas Purification Deposition Materials Fluid Handling Wafer Handling Specialty Materials | Analyst Meeting 2016
Slide 21: Comprehensive, Complementary Technologies to Solve Complex Yield Issues
COMPREHENSIVE, COMPLEMENTARY TECHNOLOGIES TO SOLVE COMPLEX YIELD ISSUES Entegris has a unique combination of technology, deep applications knowledge and critical materials science know-how Advanced Chemicals Filtration and Purification | Analyst Meeting 2016 Materials Handling Implant Lithography De
Slide 22: Unmatched Combination of Breadth of Solutions and Industry Focus
Entegris has the broadest solutions set of specialty chemicals, filtration and materials handling solutions in its markets UNMATCHED COMBINATION OF BREADTH OF SOLUTIONS AND INDUSTRY FOCUS Selected Competitors Liquid Filtration Advanced Cleans Deposition Materials Specialty Gases Gas Purification Spe
Slide 23: Ensuring Purity Across the Supply Chain
Contamination can occur at multiple points in a chemical’s journey to the wafer Example: Entegris has solutions to achieve purity of photochemicals – from production to consumption ENSURING PURITY ACROSS THE SUPPLY CHAIN Manufacturing 14 days cycle time Inventory 60 days cycle time Sub-fab 7 days cy
Slide 24: Key Opportunities to Expand Share and Served Market
Top growth opportunities represent $70M in revenue opportunity in 2018 Entegris has a rich pipeline of development projects KEY OPPORTUNITIES TO EXPAND SHARE AND SERVED MARKET Top 5 Representative Opportunities Market Share Next Application SAM Expansion Bulk photochemical filtration Boron mixtures
Slide 25: Bulk Photochemical Filtration
Market/Technology need: Sub-14 nm technologies require high-value materials with increased levels of purity Maintaining material integrity throughout the supply steam is an increasing challenge Entegris solution: New generation of advanced UPE filters for high-volume photochemicals Additional demand
Slide 26: Boron Gas Mixtures for Implant
Market/Technology need: Ion implant tool uptime is dictated by the ion source lifetime which is affected by contamination from attack of tungsten parts Entegris solution: Introduction of Hydrogen with the BF3 dopant reduces tungsten ion source contamination Gas mixture enables 30-40% longer source l
Slide 27: Specialty Coatings Reduce Defects in Etch Processes
Entegris’ new specialty coatings can improve etch process reliability Market/Technology need: Use of advanced halogen chemistries leads to degradation of etch/CVD chamber components Existing plasma-spray coatings of etch chamber components are porous and prone to disintegration which contaminates th
Slide 28: CMP Pad Conditioner Extends Pad Life
Market/Technology need: Pad conditioners “re-energize” the polish pad surface, ensuring CMP process consistency and stability New generations of slurries and pads require greater precision of pad conditioners Entegris solution: Entegris’ pad conditioners use Entegris silicon carbide material and coa
Slide 29: Development and Delivery of New Solid Precursors
Market/Technology need: Highly conformal dielectric and metal films are required for FinFET and GAA structures in logic as well as 3D NAND memory devices An increasing number of CVD and ALD precursors that yield conformal films with low carbon content are solids. These materials pose new handling an
Slide 30: Strong Financial Discipline To Grow Shareholder Value
Greg Graves EVP, Chief Financial Officer Strong Financial Discipline To Grow Shareholder Value JULY 12, 2016
Slide 31: Our Scorecard
OUR SCORECARD Financial Objectives FY15 1Q16 | Analyst Meeting 2016 Growth in excess of market Achieve target model Reduce net debt EPS growth
Slide 32: Achieving Relative Growth
1 Market index defined as 80% Millions of Sq. Inches of Silicon produced (MSI) and 20% Wafer Fab Equipment (WFE); Data source is Gartner (WFE) and SEMI (MSI) 2 Impact of foreign currency, primarily from the Yen, Euro and Korean Won, based on average rates for 2014 and 2015. Growth of 3.4% is against
Slide 33: Target Model and Historical Performance
Proven execution and leverage in the operating model 1 Represents range of adjusted operating margin based on respective quarterly revenue levels. 2 Adjusted for amortization of intangible assets, one-time charges and expenses, and unrealized synergies. 3 Assumes shares outstanding equal 140 million
Slide 34: Sound Balance Sheet with Growing Cash Balance
February 2014 ratio is estimate at time of announcement of transaction, which closed on April 30, 2014 SOUND BALANCE SHEET WITH GROWING CASH BALANCE | Analyst Meeting 2016 As of 1Q16, $344 million of cash on balance sheet $128 million in the U.S. Long-term debt is comprised of: $360M of HY 6% notes
Slide 35: Earnings Per Share Grew 23% in FY2015
Note: Non-GAAP EPS for 2014 and 2015 adjusted for transaction costs and integration expense related to April 30, 2014 acquisition of ATMI EARNINGS PER SHARE GREW 23% IN FY2015 +23% 2012 2013 2014 2015 | Analyst Meeting 2016 1Q16 +19%
Slide 36: Projected Cash from Operations and Free Cash Flow
By 2018, three-year cumulative cash from operations is estimated to reach more than $500 million 1 EBITA adjusted for transaction and integration expenses PROJECTED CASH FROM OPERATIONS AND FREE CASH FLOW | Analyst Meeting 2016 Adjusted EBITDA EBITDA Margin Operating Cash Flow Capex Free Cash Flow
Slide 37: Capital Allocation Framework
Increase domestic liquidity Well-targeted M&A Opportunistic share buy-backs Ongoing debt repayments Current priority CAPITAL ALLOCATION FRAMEWORK Highly opportunistic, modest share buy-backs Debt Repayment Well targeted M&A | Analyst Meeting 2016
Slide 38: Creating Compelling Long-Term Value for Shareholders
ENTEGRIS: CREATING COMPELLING LONG-TERM VALUE FOR SHAREHOLDERS | Analyst Meeting 2016 Mission Critical Supplier Stable, Recurring Revenue, Strong Cash Flow, and Earnings Leverage Above-Market Growth Electronic Materials
Slide 39: Entegris® and the Entegris Rings Design® are trademarks of Entegris, Inc. All rights reserved.
Entegris® and the Entegris Rings Design® are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved. | Analyst Meeting 2016