Entegris, Inc. · NASDAQ:ENTG

Entegris — Q3 2019 Earnings Presentation

19 slides from Entegris's earnings presentation, Oct 24, 2019

1. Slide 1: Earnings Summary Third Quarter 2019

   Exhibit 99.2 Earnings Summary Third Quarter 2019 October 24, 2019

2. 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

3. Slide 3: 3Q19 Summary

   3Q19 SUMMARY o Third-quarter revenue of $394.1 million, decreased 1% from prior year o GAAP net income per diluted share of $0.30, decreased 12% from prior year o Non-GAAP net income per diluted share of $0.50, increased 9% from prior year o Acquired Hangzhou Anow Microfiltration in September 3

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

   Summary – Consolidated Statement of Operations (GAAP) 3Q19 over 3Q19 over $ in millions, except per share data 3Q19 3Q19 Guidance 2Q19 3Q18 3Q18 2Q19 Net Revenue $394.1 $385 -$400 $378.9 $398.6 (1.1%) 4.0% Gross Margin 43.2% 43.9% 45.6% Operating Expenses $117.6 $115 - $117 $111.4 $113.7 3.4% 5.6% O

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

   Summary – Consolidated Statement of Operations (Non-GAAP)1 3Q19 over 3Q19 over $ in millions, except per share data 3Q19 3Q19 Guidance 2Q19 3Q18 3Q18 2Q19 Net Revenue $394.1 $385 - $400 $378.9 $398.6 (1.1%) 4.0% Adjusted Gross Margin2 44.6% 44.1% 46.4% Non-GAAP Operating $87.6 $92 - $94 $90.2 $91.1

6. Slide 6: Results by Segment

   RESULTS BY SEGMENT1 Specialty Chemicals Microcontamination Advanced and Engineered Control Segment3 Materials Handling 2 Materials Segment 4 $ in millions Segment $160 40% $160 40% $160 40% $140 $140 $140 $120 30% $120 30% $120 30% $100 $100 $100 $80 20% $80 20% $80 20% $60 $60 $60 $40 10% $40 10% $

7. Slide 7: Revenue by Geography: Strong growth in Taiwan and N. America

   REVENUE BY GEOGRAPHY: Strong growth in Taiwan and N. America YTD19 Revenue by Geography YTD19 vs. YTD18 Growth Rate Revenue = $ million Taiwan 5% Taiwan N. America 10% N. America $222.2M $280.3M South Korea 1% Southeast Japan -6% Asia $74.2M $98.9M Europe China 3% $190.0M Europe -5% $148.1M Japan So

8. Slide 8: Summary – Balance Sheet Items

   Summary – Balance Sheet Items $ in millions 3Q19 2Q19 3Q18 $ Amount % Total $ Amount % Total $ Amount % Total Cash & Cash Equivalents $282.7 11.5% $521.4 21.5% $294.9 14.0% Accounts Receivable, net $261.3 10.6% $218.7 9.0% $212.7 10.1% Inventories $290.3 11.8% $261.9 10.8% $264.1 12.6% Net PP&E $470

9. Slide 9: Adjusted EBITDA Margin

   ADJUSTED EBITDA MARGIN1 Adjusted EBITDA and EBITDA Margin 28.9% 27.7% 27.7% 27.7% 28.5% 27.5% 27.8% 26.8% 27.3% $109 $106 $110 25.2% 23.9% $110 $109 $108 $96 $97 $95 80 $88 $76 40 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Adj. EBITDA in $M Adj. EBITDA as % of Sales 1. See Reconciliati

10. Slide 10: Cash Flows

    Cash Flows $ in millions 3Q19 2Q19 3Q18 Beginning Cash Balance $521.4 $342.4 $257.1 Cash provided by operating activities $25.3 $230.9 $84.1 Capital expenditures ($26.3) ($25.6) ($27.9) Acquisition of business ($217.1) $0.5 - Payments on long-term debt - ($1.0) - Repurchase and retirement of common

11. Slide 11: Outlook

    Outlook GAAP $ in millions, except per share data 4Q19 Guidance 3Q19 Actual 3Q18 Actual Net Revenue $420 -$435 $394.1 $398.6 Operating Expenses $109 - $111 $117.6 $113.7 Net Income $51 - $58 $40.8 $48.1 Earnings (Per Diluted Share) $0.38 - $0.43 $0.30 $0.34 Non-GAAP $ in millions, except per share d

12. Slide 12: Trademarks

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

13. Slide 13: 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 September 28, September 29, September 28, September 29, 2019 2018 June 29, 2019 2019 2018 Net Sales $394,147 $398,597 $378,874 $1,164,068 $1,148,855 Gross profit-GAAP $170,

14. Slide 14: 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 28, September 29, September 28, September 29, Segment profit-GAAP1 2019 2018 June 29, 2019 2019 2018 Specialty Chemicals and Engineered Materia

15. Slide 15: 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 September 28, September 29, September 28, September 29, $ in thousands 2019 2018 June 29, 2019 2019 2018 Net sales $394,147 $398,597 $378,874 $1,164,068 $1,148,8

16. Slide 16: 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 Nine months ended September 28, September 29, September 28, September 29, $ in thousands, except per share data 2019 2018 June 29, 2019 2019 2018 GA

17. Slide 17: 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) Fourth-Quarter Outlook Reconciliation GAAP net income to non-GAAP net income December 31, 2019 GAAP net income $51 - $58 Adjustments to net income: Charge for fair value write-up of

18. Slide 18: GAAP Segment Trend Data

    GAAP Segment Trend Data1 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 $ in thousands Sales SCEM $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 $ 133,928 $ 124,470 $ 127,552 $ 127,750 MC 100,195 104,587 116,229 115,801 118,923 124,937 151,478 158,500 157,706 150,185 1

19. Slide 19: Non-GAAP Segment Trend Data

    NON-GAAP Segment Trend Data1 $ in thousands Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Sales SCEM $ 114,435 $ 121,174 $ 124,522 $ 125,339 $ 130,743 $ 134,336 $ 131,234 $ 133,928 $ 124,470 $ 127,552 $ 127,750 MC 100,195 104,587 116,229 115,801 118,923 124,937 151,478 158,500 157,706 150,1

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