Entegris, Inc. · NASDAQ:ENTG

Entegris — Q3 2018 Earnings Presentation

21 slides from Entegris's earnings presentation, Oct 25, 2018

1. Slide 1: Earnings Summary Third Quarter 2018

   EXHIBIT 99.2 Earnings Summary Third Quarter 2018 October 25, 2018

2. Slide 2: Safe Harbor

   SAFE HARBOR This presentation contains, and management may make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the n

3. Slide 3: 3Q18 Highlights

   3Q18 HIGHLIGHTS Year-to-date1 sales of $1.1 billion million grew 16% from the same period in 2017 3Q18 sales of $399 million grew 15% from same quarter a year ago and 4% from 2Q18 Specialty Chemicals and Engineered Materials sales grew 5% from prior year and declined 2% sequentially Microcontaminati

4. Slide 4: Summary – Consolidated Statement of Operations (GAAP)

   SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (GAAP) $ in millions, except per share 3Q18 3Q18 over 3Q18 over data 3Q18 Guidance 2Q18 3Q17 3Q17 2Q18 Net Revenue $398.6 $395 to $410 $383.1 $345.6 15.3% 4.0% Gross Margin 45.6% 47.6% 45.0% Operating Expenses $113.7 $108 to $110 $107.4 $94.8 19.9% 5.9%

5. Slide 5: Summary – Consolidated Statement of Operations (Non-GAAP)

   SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP)1 $ in millions, except per share 3Q18 3Q18 over 3Q18 over data 3Q18 Guidance 2Q18 3Q17 3Q17 2Q18 Net Revenue $398.6 $395 to $410 $383.1 $345.6 15.3% 4.0% Adjusted Gross Margin2 46.4% 47.7% 46.2% Non-GAAP Operating $91.1 $89.1 $78.4 16.2% 2.2%

6. Slide 6: Summary – Consolidated Statement of Operations (GAAP) – Year to Date

   SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (GAAP) – YEAR TO DATE Nine Months Nine Months Ended Ended $ in millions, except per share September 29, September 30, data 2018 2017 Year-over-Year Net Revenue $1,148.9 $992.0 15.8% Gross Margin 47.0% 44.9% Operating Expenses $318.7 $274.6 16.1% Operati

7. Slide 7: Summary – Consolidated Statement of Operations (Non-GAAP) – Year to Date

   SUMMARY – CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP) – YEAR TO DATE1 Nine Months Nine Months Ended Ended $ in millions, except per share September 29, September 30, data 2018 2017 Year-over-Year Net Revenue $1,148.9 $992.0 15.8% Adjusted Gross Margin2 47.3% 45.5% Non-GAAP Operating Expenses3 $2

8. Slide 8: Earnings Per Share

   EARNINGS PER SHARE1 EPS: 3Q18 vs. 3Q17 EPS: 3Q18 vs. 2Q18 $0.49 $0.50 $0.50 $0.46 $0.46 $0.45 $0.45 $0.40 $0.40 $0.40 $0.38 $0.34 $0.34 $0.35 $0.35 $0.30 $0.28 $0.30 $0.25 $0.25 $0.20 $0.20 $0.15 $0.15 $0.10 $0.10 $0.05 $0.05 $0.00 $0.00 3Q17 3Q18 2Q18 3Q18 GAAP Non-GAAP GAAP Non-GAAP 1. Represents

9. Slide 9: Results by Segment

   RESULTS BY SEGMENT1 Specialty Chemicals Microcontamination Advanced and Engineered Control Segment3 Materials Handling 2 Materials Segment Segment4 $ in millions 40% 40% 40% $150 $150 $150 $120 30% $120 30% $120 30% $90 $90 $90 20% 20% 20% $60 $60 $60 10% 10% 10% $30 $30 $30 $0 0% $0 0% 3Q17 4Q17 1Q

10. Slide 10: Revenue by Geography: Strong Growth in N. America, Korea, Japan, China and Europe

    REVENUE BY GEOGRAPHY: STRONG GROWTH IN N. AMERICA, KOREA, JAPAN, CHINA AND EUROPE YTD18 Revenue by Geography YTD18 vs. YTD17 Growth Rate Revenue = $1,148.9 million Taiwan -5% Taiwan N. America 20% N. America $211.1M South Korea 19% $255.8M Southeast Japan 32% Asia $87.0M $104.2M China 37% Europe $18

11. Slide 11: Summary – Balance Sheet Items

    SUMMARY – BALANCE SHEET ITEMS $ in millions 3Q18 2Q18 3Q17 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $294.9 14.0% $257.1 12.4% $435.2 24.8% Accounts Receivable, net $212.7 10.1% $200.4 9.7% $183.4 10.4% Inventories $264.1 12.6% $265.4 12.8% $193.3 11.0% Net PP&E $393

12. Slide 12: Adjusted EBITDA Margin

    ADJUSTED EBITDA MARGIN1 Adjusted EBITDA and EBITDA Margin Adjusted TTM EBITDA 28.2% 28.9% 28.5% 27.7% 27.7% 400 $423 27.7% 25.4% $109 $110 $106 350 $96 $97 300 $330 80 250 200 150 40 100 50 0 0 3Q17 4Q17 1Q18 2Q18 3Q18 TTM-3Q17 TTM-3Q18 Adj. EBITDA in $M Adj. EBITDA as % of Sales Adj. EBITDA in $M A

13. Slide 13: Cash Flows

    CASH FLOWS $ in millions 3Q18 2Q18 3Q17 Beginning Cash Balance $257.1 $550.2 $405.6 Cash from operating activities $84.1 $98.3 $89.0 Capital expenditures ($27.9) ($26.4) ($25.4) Acquisition of business - ($342.6) - Payments on long-term debt - ($2.0) ($25.0) Repurchase and retirement of common ($10.

14. Slide 14: Outlook

    OUTLOOK GAAP $ in millions, except per share data 4Q18 Guidance 3Q18 Actual 4Q17 Actual Net Revenue $380 to $400 $398.6 $350.6 Operating Expenses $111 to $114 $113.7 $92.5 Net Income $43 to $53 $48.1 ($28.3) Earnings Per Diluted Share $0.30 to $0.37 $0.34 ($0.20) Non-GAAP $ in millions, except per s

15. Slide 15: Trademarks notice

    Entegris®, the Entegris Rings Design™ and Pure Advantage™ are trademarks of Entegris, Inc. ©2016 Entegris, Inc. All rights reserved. 15

16. Slide 16: 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 Nine months ended $ in thousands September 29, September 30, June 30, September 29, September 30, 2018 2017 2018 2018 2017 Net Sales $398,597 $345,591 $383,059 $1,148,855 $991,970 Gross prof

17. Slide 17: 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 Nine months ended September 29, September 30, September 29, September 30, Segment profit-GAAP 2018 2017 June 30, 2018 2018 2017 Specialty Chemicals and Engineered Materi

18. Slide 18: 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 Nine months ended $ in thousands September 29, September 30, September 29, September 30, 2018 2017 June 30, 2018 2018 2017 Net sales $398,597 $345,591 $383,059 $1,148,855 $991,970

19. Slide 19: Reconciliation of GAAP to Non-GAAP Earnings Per Share

    NON-GAAP RECONCILIATION TABLE RECONCILIATION OF GAAP TO NON-GAAP EARNINGS PER SHARE Three months ended Nine months ended $ in thousands, except per share data September 29, September 30, September 29, September 30, 2018 2017 June 30, 2018 2018 2017 GAAP net income $48,060 $40,902 $54,349 $159,971 $1

20. Slide 20: GAAP Segment Trend Data

    GAAP SEGMENT TREND DATA $ in thousands Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Sales SCEM $ 101,107 $ 111,782 $ 104,494 $ 110,945 $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 MC 77,619 91,584 94,738 98,717 100,055 104,407 116,113 115,650 118,637 124,681 151,34

21. Slide 21: Non-GAAP Segment Trend Data

    NON-GAAP SEGMENT TREND DATA $ in thousands Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Sales SCEM $ 101,107 $ 111,782 $ 104,494 $ 110,945 $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 MC 77,619 91,584 94,738 98,717 100,055 104,407 116,113 115,650 118,637 124,681 15

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