Entegris, Inc. · NASDAQ:ENTG
Entegris — Investor Day (June 2014)
98 slides from Entegris's investor day presentation, Jun 19, 2014
Slide 1: Entegris: A Premier Materials and Solutions Provider
Bertrand Loy President and CEO Entegris: A Premier Materials and Solutions Provider Bertrand Loy President and CEO Entegris: A Premier Materials and Solutions Provider Exhibit 99.2
Slide 2: The New Entegris
The New Entegris The New Entegris Entegris provides yield-enhancing materials and solutions for the most advanced manufacturing environments
Slide 3: A Compelling Platform
A Compelling Platform Track record of financial discipline and execution Higher cash flow and earnings leverage Customer focused – uniquely positioned in the ecosystem Unit-driven model levered to growing demand in semiconductor and adjacent markets Market leadership with breadth and depth of techno
Slide 4: The New Entegris: A More Powerful Operating Platform
The New Entegris: A More Powerful Operating Platform $693 million $132 million Approx. 2/3 2,800 1,547 ATMI ACQUISITION $1.05 billion $248 million Approx. 4/5 3,400 2,981 1 2 The New Entegris: A More Powerful Operating Platform Note: Financial metrics exclude ATMI’s discontinued operations. Excludes
Slide 5: A Unit-Driven Model + Sticky Solutions = Greater Stability
A Unit-Driven Model + Sticky Solutions = Greater Stability 78% Unit Driven Consistency of cash flows Allows for sustained investment in R&D and in new markets In the “sweet spot” of industry growth More attractive to key talent Benefits of a unit-driven, recurring revenue model A Unit-Driven Model +
Slide 6: Growing Position Among Other Semiconductor Suppliers
Growing Position Among Other Semiconductor Suppliers Less than $1B $1B to $2B More than $2B Growing Position Among Other Semiconductor Suppliers Entegris ranks as one of the largest materials solutions providers among publically held companies focused on the semiconductor industry Note: Reflects 201
Slide 7: Broad Presence in Unit-Driven, High Value Applications
Broad Presence in Unit-Driven, High Value Applications Adjacent markets moving closer in process control and purity requirements Leveraging current Entegris technologies into adjacent markets Broad Presence in Unit-Driven, High Value Applications Leveraging current Entegris technologies into adjacen
Slide 8: Positive Underlying Market Dynamics
Positive Underlying Market Dynamics Wafer Starts to Resume Growth Advances in semiconductors enable new electronics, drive demand Key IC Growth Drivers Wearable electronics New generations of mobile phones and tablets with longer battery life Stabilization of PC sales The “internet of things” Positi
Slide 9: The Industry's Technology Challenges Require New Solutions
Industry and technology demands of customers continue to evolve putting Entegris solutions at sweet spot of demand Positive Underlying Market Dynamics The Industry’s Technology Challenges Require New Solutions Cost of technology and increased complexity of the process Increased number of materials S
Slide 10: Uniquely Positioned Across the Semiconductor Ecosystem
Uniquely Positioned Across the Semiconductor Ecosystem Equipment Makers Device Makers Materials Suppliers Uniquely Positioned Across the Semiconductor Ecosystem Combined Customers as % of Pro Forma Sales Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customers 6-10 10.5% 7.0% 6.8% 5.0% 2.3%
Slide 11: Capabilities to Support the Customer
Capabilities to Support the Customer North America 25% Europe 11% Asia Pacific 64% North America 51% 5% Asia Pacific 44% Capabilities to Support the Customer The scale and infrastructure to capitalize on global demand trends Pro Forma FY13 Sales by Region Employees Europe and Israel Asia Pacific Nor
Slide 12: Breadth of Entegris Portfolio
Breadth of Entegris Portfolio Advanced Photoresist Packaging Filtration Gas/Liquid Purification Gas Filters and Diffusers Gas Purification Specialty Materials Copper Plating Deposition Materials Gas Filtration and Purification Formulated Cleans Filtration Fluid Handling Containers Formulated Cleans
Slide 13: Our New Business Organization
Our New Business Organization Electronic Materials Advance Deposition Materials Gas Microcontamination Control Specialty Gases Surface Prep and Integration Liquid Microcontamination Control Fluid Management and Control Liquid Packaging Microenvironments Specialty Materials eVOLV™ BrightBlack® Critic
Slide 14: Foundation for the New Entegris
Foundation for the New Entegris Financial Objective Investment priorities R&D Internal capabilities New market development Pay down debt Cash flow Growth in excess of market Best in class among specialty materials companies Target model Foundation for the New Entegris Now Then Growth in excess of ma
Slide 15: Focused on Execution
Focused on Execution Focus on our customers Integrate ATMI platform successfully Achieve our target model Pay down our debt Build a high-performance organization Priorities for the next 12-18 months Focused on Execution
Slide 16: A Compelling Platform
A Compelling Platform Track record of financial discipline and execution Higher cash flow and earnings leverage Customer focused – uniquely positioned in the ecosystem Unit-driven model levered to growing demand in semiconductor and adjacent markets Market leadership with breadth and depth of techno
Slide 17: Trademark notice
Entegris ® , the Entegris Rings Design ® and Creating a Material Advantage® are trademarks of Entegris, Inc. ©2014 Entegris, Inc. All rights reserved.
Slide 18: Differentiation in a Disruptive Environment
James A. O’Neill, Ph.D. Chief Technology Officer Differentiation in a Disruptive Environment James A. O’Neill, Ph.D. Chief Technology Officer Differentiation in a Disruptive Environment
Slide 19: Key Takeaways: In the Right Place at the Right Time
Key Takeaways: In the Right Place at the Right Time Key Takeaways: In the Right Place at the Right Time Entegris is uniquely positioned to enable new paradigms within the materials ecosystem Our contamination control capabilities are critical to device yield in an increasingly complex manufacturing
Slide 20: The Industry's Endless Search for More
The Industry’s Endless Search for More Demand for electronics Improved performance Lower cost Less power The Industry’s Endless Search for More Advances in semiconductors enable new electronics which drive demand for new semiconductors Moore’s Law New technology nodes Disruptive technologies (patter
Slide 21: Disruptive Technologies Required to Achieve Moore's Law
Disruptive Technologies Required to Achieve Moore’s Law Metal gate Ge/Si S/D PMOS With advanced materials and critical handling technologies, Entegris is now the leading enabler for advanced nodes Litho 1 Center image: Intel High-k Penryn microchip 2009 Disruptive Technologies Required to Achieve Mo
Slide 22: Increasing Interdependency within Semiconductor Ecosystem
Increasing Interdependency within Semiconductor Ecosystem Increasing Interdependency within Semiconductor Ecosystem Entegris delivers yield-enhancing solutions across the entire semiconductor ecosystem Lithography, Etch, Deposition, Clean, CMP, Implant, Fab Facility Customer collaborations are key t
Slide 23: Leader in Materials and Materials Handling for Defect-Free Processing
Leader in Materials and Materials Handling for Defect-Free Processing Leveraging technology and infrastructure to address customer needs Leader in Materials and Materials Handling for Defect-Free Processing Developmental capability close to all customers Process and applications support skillset Com
Slide 24: Depth of Core Capabilities
Depth of Core Capabilities Application of fundamental science to robust product development Interfacial science and analytics Materials synthesis and formulation Material application engineering Membrane science and engineering Sub-10 nm liquid filtration Fluid handling, sensing, control and dispens
Slide 25: Broad Patent Portfolio
Broad Patent Portfolio North America 34% Asia 47% Europe 13% Broad IP portfolio with global protection in U.S. and key Asian regions 2,981 patents and patent applications Significant portion (~81%) of portfolio covers North America and Asia (South Korea, Taiwan and China) IP covers products and key
Slide 26: Industry Leading Capabilities Close to Customers
Industry Leading Capabilities Close to Customers Industry Leading Capabilities Close to Customers Strategically located technology centers to facilitate customer engagements Work locally on many pressing technology problems Hands-on approach to all development and customer application challenges Joi
Slide 27: Deepening Our Collaboration with Strategic Customers
Direct engagement by engineering teams Pilot capability at most sites Deepening Our Collaboration with Strategic Customers Relevant, Trusted Technology Partner Application and Process Knowledge We Develop Relevant Final Solution We Listen We Respond Quickly with Prototypes Growing our share *NDAs an
Slide 28: Breadth of Entegris Portfolio
Breadth of Entegris Portfolio Advanced Photoresist Packaging Filtration Gas/Liquid Purification Gas Filters and Diffusers Gas Purification Specialty Materials Copper Plating Deposition Materials Gas Filtration and Purification Formulated Cleans Filtration Fluid Handling Containers Formulated Cleans
Slide 29: Combination Enables New Paradigms
Combination Enables New Paradigms Gases and Gas- wetted Surfaces Solids and Solid Materials Delivery Wet Chemistries and Wetted Surfaces Combination Enables New Paradigms Application-based clean gas delivery solutions Gas manufacturing and packaging excellence Improved gas purifier capacity and effi
Slide 30: pCMP Clean Formulations and Brush Technology
pCMP Clean Formulations and Brush Technology Copper interconnect yield and reliability is a key concern for advanced node technologies (<20 nm) Integration of Planarcore® PVA brushes and PlanarClean® Technology could significantly reduce copper post polish defects (particles, organic residues and sc
Slide 31: Implant Gas Handling and Purification Technology
Implant Gas Handling and Purification Technology Gas impurity control to increasingly stringent contamination standards is a key concern for advanced node technologies Purifier Applications : Toxic gas packaging and filtration expertise enables tighter impurity control Purifier Media: Carbon adsorbe
Slide 32: Formulated Wet Chemistries and Point-of-Use Blending
Formulated Wet Chemistries and Point-of-Use Blending Concentration control and in-situ defect formation are increasing issues in formulated chemistries for advanced node applications Integrating concentration sensing, fluidic control and dispense expertise with formulation know- how could improve mi
Slide 33: Winning Strategy
Winning Strategy Unique Capability – Leverage strengths of combined Entegris to unlock new value Technical capability for rapid innovation Breadth of technologies Global reach, local support Unique Position – Enable new paradigms within the semiconductor ecosystem Wet chemistries and wetted surfaces
Slide 34: Trademark notice
Entegris ® , the Entegris Rings Design ® and Creating a Material Advantage ® are trademarks of Entegris, Inc. ©2014 Entegris, Inc. All rights reserved.
Slide 35: A Platform for Growth and Stability
Todd Edlund SVP, General Manager – Critical Materials Handling Business A Platform for Growth and Stability A Platform for Growth and Stability
Slide 36: A Platform for Growth and Stability
A Platform for Growth and Stability To be the first company customers call for solutions to improve their yields, throughput and cost- effectiveness when facing contamination or materials handling challenges. Unique breadth of technology in the industry Market leading positions in key segments Criti
Slide 37: Comprehensive Portfolio of Solutions
Comprehensive Portfolio of Solutions Wet Etch and Clean Lithography Chemical Distribution CMP Wafer Handling Implant Finished Wafer and Devices Data Storage Dry Etch Deposition Comprehensive Portfolio of Solutions Purify, deliver, handle and protect critical materials Life Sciences Flat Panel Displa
Slide 38: Liquid Microcontamination Control
Liquid Microcontamination Control Filtration is the largest, most rapidly growing product area 35% 28% Liquid Microcontamination Control Filters and purifiers that remove sub-micron sized particles, ions and microbubbles from process liquids Market Dynamics Contamination-caused yield loss as line wi
Slide 39: Fluid Management and Control
Fluid Management and Control The move to process automation is increasing the available market for Entegris solutions Fluid Management and Control Source: Entegris estimates Market Dynamics More precise blending for advanced chemistries Trend towards single-wafer tools Increasing requirements for pr
Slide 40: Liquid Packaging
Liquid Packaging More usage of high-value chemistries is driving new packaging needs and increasing market size Liquid Packaging Source: SEMI and Entegris analysis Ultrapure container and dispense solutions for highest performance lithography and WEC chemicals Semi Wafer Processing Chemicals Market
Slide 41: Microenvironments
Microenvironments Winning virtually all opportunities for new 300 mm FOUPs Microenvironments Products that protect and transport wafers, reticles and other critical substrates from damage and contamination Market Dynamics Increased impact of wafer contamination at advanced nodes – particles, moistur
Slide 42: Specialty Materials
Specialty Materials Platform for growth in diversified markets Specialty Materials Advanced graphite, silicon carbide, and specialty coatings for industrial and semiconductor manufacturing processes Market Dynamics Use of higher temperatures in processes Need for extended life and reduced process va
Slide 43: Entegris is Uniquely Positioned
Entegris is Uniquely Positioned Entegris is Uniquely Positioned Breadth of solutions from production to consumption Our technologies protect, transport, filter, control and dispense liquids Our microenviroments protect and transport the wafer from grower to chip
Slide 44: Competitive Landscape is Fragmented
Competitive Landscape is Fragmented Competitive Landscape is Fragmented Customers favor more capable supplier partners for their increasing demands Size of circles reflects approximate relative semiconductor sales, based on company estimates Global Footprint (# of employees – logarithmic scale) Larg
Slide 45: Challenges We are Solving
Increased need for purity Challenges We are Solving Increased need for process control New, expensive materials that are susceptible to contamination More demanding process requirements (e.g., temperatures) Challenges We are Solving Tighter filters that are cleaner More robust microenvironments Prec
Slide 46: Example #1: Increased Need for Purity
Example #1: Increased Need for Purity ArF-I High Concentration ArF-i DP/NTD Weaker Concentration ArF-i QP EUV/DSA Specialized Ultra- Cleaning Example #1: Increased Need for Purity 4X nm 3X nm – 2X nm <2X nm 20-10 nm filtration/ purification: DIW 50-30 nm filtration <10 nm filtration/purification: ch
Slide 47: Example #2: New, Expensive Materials that are Susceptible to Contamination
Example #2 New, Expensive Materials that are Susceptible to Contamination For advanced nodes, lithography-caused defects have the largest impact on yields, and microbubbles are the leading cause Example #2 New, Expensive Materials that are Susceptible to Contamination No headspace, indirect pressure
Slide 48: Example #2: New, Expensive Materials that are Susceptible to Contamination
Example #2 New, Expensive Materials that are Susceptible to Contamination Example #2 New, Expensive Materials that are Susceptible to Contamination Up to 99.9% utilization of expensive photo resist vs. 95% for rigid bottles
Slide 49: Platform for Continued Expansion into Adjacent Markets
Platform for Continued Expansion into Adjacent Markets Critical Materials Handling Platform for Continued Expansion into Adjacent Markets 30% of CMH sales are to markets outside of semiconductors Flat Panel Semi Solar Industrial Data Storage LED Aerospace Life Sciences
Slide 50: Summary – A Platform for Growth and Stability
Summary – A Platform for Growth and Stability Large, stable legacy business with clear pathways for growth Need for more process purity and control driving market growth and new product opportunities Growing share in key areas Platform for diversification Summary – A Platform for Growth and Stabilit
Slide 51: Trademark notice
Entegris ® , the Entegris Rings Design ® and Creating a Material Advantage ® are trademarks of Entegris, Inc. ©2014 Entegris, Inc. All rights reserved.
Slide 52: A Process Innovator
Chris Kramer SVP, General Manager – Electronic Materials Business A Process Innovator Chris Kramer SVP, General Manager – Electronic Materials Business A Process Innovator
Slide 53: A Process Innovator
A Process Innovator Leading global provider of critical performance materials that enable high yield, cost-effective manufacturing within the semiconductor industry. Growing importance of specialty materials Unique breadth of technology in the industry Track record of innovation Market-leading posit
Slide 54: A History of Innovation
A History of Innovation SDS® gas delivery systems Chambergard™ gas diffusers ViaForm® copper plating chemistry Copper post-etch cleans (ESC-784, ST-250) PlanarClean® advanced copper post-CMP cleans ProE-VAP® emerging node CVD, ALD precursors and vaporization technologies Planarcore® PVA brushes A Hi
Slide 55: You Use Entegris Materials Every Day
You Use Entegris Materials Every Day Electronic Materials Enable You Use Entegris Materials Every Day Entegris materials reside in your advanced electronic devices Safe and efficient delivery of highly toxic implant gases Low-contamination environments to manufacture advanced chips Complex circuitry
Slide 56: Why Materials Matter: Advanced Electronics Require Advanced Materials
Why Materials Matter: Advanced Electronics Require Advanced Materials Positioned to benefit from growing complexity and increased reliance on formulated materials Why Materials Matter: Advanced Electronics Require Advanced Materials Increasing impact of materials innovation on chip performance Sourc
Slide 57: Products that Span the Entire Integrated Stack
Products that Span the Entire Integrated Stack Copper Conductor Passivation Contacts Pre-Metal Dielectric Intermetal Dielectric and Caps Gate/Junction Region Memory Applications Integrated product portfolio offerings address critical customer needs Products that Span the Entire Integrated Stack Prec
Slide 58: Electronic Materials Key Product Areas
Electronic Materials Key Product Areas Positioning of Specialty Gases (ATMI) with Gas Microcontamination Control (Entegris) Better serve delivery of toxic gases Leverage carbon technology Adding CMP products (Entegris) to Surface Prep and Integration (ATMI) to optimize product development activities
Slide 59: The Broadest Array of Specialty Chemical Solutions
The Broadest Array of Specialty Chemical Solutions for Advanced Semiconductor Manufacturing Entegris Competitor A (Chem. Co.) Competitor B (Chem. Co.) Competitor C (Chem. Co.) Competitor D (Chem. Co.) Competitor E (Filtrat. Co.) The Broadest Array of Specialty Chemical Solutions for Advanced Semicon
Slide 60: Specialty Gases
Specialty Gases Advanced nodes create additional opportunities for specialty gases Market Dynamics Need for safe and efficient delivery of toxic gases Growing need for dopants and precision mixtures at advanced nodes Competitive Position Strong market share (~85%) Competitive technology less capable
Slide 61: Gas Microcontamination Control
Gas Microcontamination Control Leader in the measurement and control of gas phase contamination 10 ppt 100 ppq Gas Microcontamination Control Source: Entegris Leader for process critical gas and ambient contamination control GMC Smaller Concentration and More Critical Contaminants 1 ppm 100 ppb 10 p
Slide 62: Surface Prep and Integration
Surface Prep and Integration Well positioned to leverage integrated Entegris portfolio Surface Prep and Integration Industry-leading provider of solutions that enable advanced copper metallization SPI IC Cross Section Passivation Dielectric Etch Stop Layer Dielectric Capping Layer Copper Conductor w
Slide 63: Advanced Deposition Materials
Advanced Deposition Materials Logic and memory applications lead to future product line growth Advanced Deposition Materials CVD and ALD materials used in front- and back-end of line applications; and packaging and delivery solutions optimized for gases, liquids and solids New Deposition Opportuniti
Slide 64: Customer Engagement Key to Winning Advanced Nodes
Customer Engagement Key to Winning Advanced Nodes Differentiating Product Development Capabilities Intense Customer Relationships Invested in infrastructure to serve global customer base Customer Engagement Key to Winning Advanced Nodes Deep technical expertise and application knowledge Unique capab
Slide 65: Example #1 – Advancement in Cu Electroplating
Example #1 – Advancement in Cu Electroplating Ongoing interconnect scaling proves challenging for Cu electroplating process Large via arrays (10 contacts) require extremely low defect levels ViaForm Excel™ chemistry is industry-leading solution for 20 nm technology Extendibility to 16 nm/14 nm node
Slide 66: Example #2 – Advancement in Interconnect Cleans
Example #2 – Advancement in Interconnect Cleans Low -k TiN HM New interconnect materials drives stringent clean performance requirements: Highly efficient clean performance Compatibility with dielectric, hard mask and barrier metals TitanKlean™ family of formulations is industry-leading solution for
Slide 67: Summary – A Process Innovator
Summary – A Process Innovator Unique breadth of technology in the industry Track record of innovation Market-leading positions in key segments Unit-driven model Focus on customer engagement to win at leading nodes Formulated, performance materials for advanced electronic devices Summary – A Process
Slide 68: Trademark notice
Entegris ® , the Entegris Rings Design ® and Creating a Material Advantage ® are trademarks of Entegris, Inc. ©2014 Entegris, Inc. All rights reserved.
Slide 69: ATMI Integration and New Business Development
Corey Rucci VP, Business Development ATMI Integration and New Business Development Corey Rucci VP, Business Development ATMI Integration and New Business Development
Slide 70: Integration Strategy – Delivering on the Value
Integration Strategy – Delivering on the Value Preparation People Execution Began integration planning early in process (November 2013) Focus on customers, productivity and profitability during integration Emphasis on speed of integration Focus on retaining key talent from both organizations during
Slide 71: Integration Strategy and Planning
Integration Strategy and Planning Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 Step 12 Step 13 Step 14 Step 1 Integration Strategy and Planning Integration Strategy and Pre-Planning Detailed Integration Planning Cultural Integration Merger Implementation Process Optimizati
Slide 72: Integration Actions
Integration Actions Accomplished to Date Completed detailed integration planning phase Broad functional integration teams comprised of Entegris and ATMI Integration project plans and risk mitigation strategies established Completed staffing and retention plans Completed an effective “Day One” All em
Slide 73: Cost Synergies
Cost Synergies Corporate Back Office Field Ops Cost Synergies Tracking to $30M annualized synergy savings $9 million $13 million $8 million IT resources Finance resources IT Infrastructure Legal/HR Supply chain Executive SEC Board of Directors Audit fees Account teams Sales support Office consolidat
Slide 74: Timing of Projected Synergies
Timing of Projected Synergies Timing of Projected Synergies Annualized synergies ($ in millions) 2014 2015 $0 $10 $20 $30 $40 Q3 Q4 Q1 Q2 Q3 Q4
Slide 75: Fostering New Business Initiatives
Fostering New Business Initiatives Fostering New Business Initiatives
Slide 76: Leveraging Technology in Innovative Ways
Leveraging Technology in Innovative Ways Product Description eVOLV™ e-waste recycling system BrightBlack® precision carbon Key Features Leveraging Technology in Innovative Ways “Zero-waste” cost-effective and scalable process for recovering valuable metals and components from end-of-life electronic
Slide 77: Trademark notice
Entegris ® , the Entegris Rings Design ® and Creating a Material Advantage ® are trademarks of Entegris, Inc. ©2014 Entegris, Inc. All rights reserved.
Slide 78: Financial Perspective
Greg Graves Executive Vice President and CFO Financial Perspective Greg Graves Executive Vice President and CFO Financial Perspective ENTEGRIS PROPRIETARY AND CONFIDENTIAL
Slide 79: Entegris: The Next Chapter
Entegris: The Next Chapter CONFIDENTIAL | 2 Entegris: The Next Chapter Historical Perspective – Bringing Together Two Strong Performers The New Paradigm – A Significant Shift in Earnings Power Balance Sheet Management – Leveraged but Prudent Q2 Outlook – Positive Trends Near-Term
Slide 80: We Delivered in 2013
Sales $693 Million Operating Margin* 15% Cash from Operations $109 Million Earnings Per Share** $0.57 We Delivered in 2013 CONFIDENTIAL | 3 Strong performance *Adjusted operating margin,**Non-GAAP earnings. We Delivered in 2013 Declined 3% overall; contraction consistent with our markets and peers M
Slide 81: Bringing Together Two Strong Performers
Bringing Together Two Strong Performers $70 19.1% $66 18.2% $57 16.2% $113 15.8% $103 14.8% $136 18.2% $399 $688 $749 $716 $693 $231 $337 $352 $366 $361 CONFIDENTIAL | 4 Bringing Together Two Strong Performers $183 16.9% $169 16.0% $193 17.6% $1,082 $1,055 $1,101 $1,025 $629 Revenue $ in millions Op
Slide 82: Revenue Growth: Historical Performance vs. the Industry
Revenue Growth Historical Performance vs. the Industry CONFIDENTIAL | 5 Growth rate vs. industry (4 year CAGR) Revenue Growth Historical Performance vs. the Industry Outgrowing the industry benchmark through the cycle Note: All industry data per Gartner. Entegris industry benchmark is 65% millions o
Slide 83: Entegris: The Next Chapter
Entegris: The Next Chapter CONFIDENTIAL | 6 Entegris: The Next Chapter Historical Perspective – Bringing Together Two Strong Performers The New Paradigm – A Significant Shift in Earnings Power Balance Sheet Management – Leveraged but Prudent Q2 Outlook – Positive Trends Near-Term
Slide 84: The "New Entegris" Target Model
The “New Entegris” Target Model Existing ENTG Target Model ATMI Stand- Alone Target Model Synergies Interest Expense CONFIDENTIAL | 7 The “New Entegris” Target Model Major Assumptions: No change to Entegris base target model ATMI “Stand-alone” target model Synergies of $30 million consistent with cu
Slide 85: Quarterly Revenue Level "New Entegris" Target Model
Quarterly Revenue Level 1 “New Entegris” Target Model CONFIDENTIAL | 8 Revenue ($M) $250 $280 $310 Adjusted Operating Margin 14% - 16% 17% - 19% 20%+ Earnings Per Share $0.14 - $0.16 $0.20 - $0.22 $0.26+ “New Entegris” Target Model Represents range of adjusted operating margin based on respective qu
Slide 86: EPS Baseline Formula
EPS Baseline Formula Apply new target model CONFIDENTIAL | 9 Illustrative model – 2013 revenue at new target model Adjusted operating income per new target model. Combined EPS assumes no other income/expense, all existing debt remains outstanding, 28% combined tax rate and 139 million shares outstan
Slide 87: EPS Growth Formula
EPS Growth Formula 2013 Pro Forma Combined Three-Year Industry 3.0% Growth > Industry 1.5% Operating Leverage Interest Expense Reduction 4 3 Growth CONFIDENTIAL | 10 Illustrative model – modest industry growth and market outperformance, operating leverage and debt reduction Operating margin per revi
Slide 88: Projected Synergies
Projected Synergies Anticipate 2015 actual synergies of $25M, Exit 2015 with $30 million run rate CONFIDENTIAL | 11 $ in millions Projected Synergies 2015 2014 $0 $10 $20 $30 $40 $0.0 $2.5 $5.0 $7.5 $10.0 Q3 Q4 Q1 Q2 Q3 Q4
Slide 89: Combined Historical Capital Expenditures
Combined Historical Capital Expenditures Maintenance level of capital expenditures is approximately $50-55 million annually $32 $45 $53 $45 $48 $53 $50 $3 $25 $53 $9 CONFIDENTIAL | 12 $ in millions Source: Company filings, Entegris management. Combined Historical Capital Expenditures $32 $48 $78 $10
Slide 90: Strong Cash Flow Generator
Strong Cash Flow Generator Actual Free Cash Flow CONFIDENTIAL | 13 Free Cash Flow Capability ATMI and ENTG combined generated more than $500 million of free cash flow since the 2009 trough With major capital projects largely complete, free cash flow should re-accelerate Annual free cash flow generat
Slide 91: Entegris: The Next Chapter
Entegris: The Next Chapter CONFIDENTIAL | 14 Entegris: The Next Chapter Historical Perspective – Bringing Together Two Strong Performers The New Paradigm – A Significant Shift in Earnings Power Balance Sheet Management – Leveraged but Prudent Q2 Outlook – Positive Trends Near-Term
Slide 92: Balance Sheet: Leveraged, but Also Very Liquid
Balance Sheet Leveraged, but Also Very Liquid Following the transaction closing, Entegris still has $2.60 in cash per share CONFIDENTIAL | 15 Balance Sheet Leveraged, but Also Very Liquid $ and share data in millions May 31, 2014 Total Cash $362 U.S. Cash $95 Foreign Cash $267 Total Assets $1,755 To
Slide 93: Debt Structure
Debt Structure No maintenance covenants (i.e. financial performance test) Stress tested using a cyclical downside case Significant pro forma liquidity; maintain at least $125 million between domestic cash and ABL Balance Sheet Structured for Safety and Soundness CONFIDENTIAL | 16 Asset based loan/re
Slide 94: Balance Sheet Management: Focus on Debt Reduction
Balance Sheet Management Focus on Debt Reduction CONFIDENTIAL | 17 Reducing leverage increases financial flexibility Improves ability to complete additional strategic transactions Makes share repurchases a viable option Reducing leverage drives EPS growth Current interest costs of $38 million equate
Slide 95: Entegris: The Next Chapter
Entegris: The Next Chapter CONFIDENTIAL | 18 Entegris: The Next Chapter Historical Perspective – Bringing Together Two Strong Performers The New Paradigm – A Significant Shift in Earnings Power Balance Sheet Management – Leveraged but Prudent Q2 Outlook – Positive Trends Near-Term
Slide 96: Q2 Update Guidance Comparison to Initial View
Q2 Update Guidance Comparison to Initial View Entegris April 2014 Entegris Revised Entegris + ATMI Positive industry trends Revenue strength across the business 1 CONFIDENTIAL | 19 $ in millions, except per share data Includes two months of ATMI results. Includes estimated impact of purchase account
Slide 97: Key Takeaways
Key Takeaways CONFIDENTIAL | 20 Key Takeaways Our solutions are critical to yield improvement in advanced manufacturing processes We are combining two companies with track records of outperforming the market and delivering superior profitability The “new” Entegris has significant earnings power and
Slide 98: Trademark notice
Entegris ® , the Entegris Rings Design ® and Creating a Material Advantage ® are trademarks of Entegris, Inc. ©2014 Entegris, Inc. All rights reserved.