Qnity Electronics, Inc. · NYSE:Q
Qnity Electronics — Investor Presentation (October 2025)
48 slides from Qnity Electronics's investor presentation, October 2025
Slide 1: To Make Tomorrow's Technologies Possible
TM To Make Tomorrow’s Technologies Possible Investor Meetings October 2025
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures Forward Looking Statements Non-GAAP Financial Measures On January 15, 2025, DuPont de Nemours, Inc. ("DuPont") announced it is targeting November 1, 2025, to complete the intended separation of its This presentation includes information that d
Slide 3: Executive Leaders Overview and Agenda
Executive Leaders Overview Agenda Jon Kemp Chief Executive Officer Qnity At-A-Glance 15+ years Electronics Experience Qnity Investment Highlights Qnity in the Semiconductor Supply Chain • Previously President of Electronics & Industrials division • Held variety of roles including M&A, Strategy, Busi
Slide 4: Qnity At-a-Glance: A Premier Global Technology Solutions Provider
Qnity At-a-Glance: A Premier Global Technology Solutions Provider for the Semiconductor Value Chain Making Tomorrow’s Technologies Possible End-Markets Regions • Innovative portfolio built on decades of leading-edge Net Sales 2024 Net Sales 2024 products and solutions Communication • Mission-critica
Slide 5: Qnity: A Broad Pure-Play Technology Leader for the Fast-Growing Semiconductor Market
Qnity: A Broad Pure-Play Technology Leader for the Fast-Growing Semiconductor Market End-to-end portfolio breadth for solutions to the semiconductor value chain; >65% of portfolio tied directly to semiconductors1 Leading the transition to advanced nodes with 90% unit-based consumables Decades-long p
Slide 6: Strong Secular Growth Trends Are Expected to Continue
Strong Secular Growth Trends Are Expected to Continue $1.3T Global Semiconductor Sales $1.1T $1.0T $0.73T $0.54T Growth Drivers $0.50T Artificial Intelligence High Performance Computing $0.35T Connectivity / IoT/ 5G Auto Electrification / ADAS 2015 2020 2023 2025 20302030 Source: SEMI, McKinsey & Co
Slide 7: Powering the Next Leap in Electronics
Powering the Next Leap in Electronics High-Performance Computing Advanced Connectivity Demand Drivers AI & Cloud Data Device Edge Autonomous Driving Machine Learning Computing Proliferation Interconnectivity Computing Systems Technology More than Moore’s Law 3D Stacking Heterogeneous Integration Min
Slide 8: Qnity Portfolio Providing Critical Integrated Solutions Across the Value Chain
Qnity Portfolio Providing Critical Integrated Solutions Across the Value Chain Chip Advanced PCB Assembly & Fabrication1 Packaging Building Display Design & Encase and Design and Embed Manufacture Connect the Produce Printed Circuit Boards Semiconductor Chip to Circuitry Circuit Boards into Devices
Slide 9: Bringing Solutions Across the Circuit Board
Bringing Solutions Across the Circuit Board Value Chain Our Product Solutions CMP Pads CMP Slurries Chip Fabrication Advanced Cleans Lithographic Solutions Metallization Substrates Advanced Packaging Dielectrics Thermal Interface Materials Circuit Metallization PCB Photoresists PCB Building Laminate
Slide 10: Qnity Stands out with Leading Positions
Qnity Stands out with Leading Positions Market Position U.S.-Based Peers Diversified or Non-U.S. Based Materials Peers Peer 1 Peer 2 Peer 3 Peer4 Peer 5 Peer 6 Peer 7 Lithographic Materials Advanced Cleans & Slurries1 Semiconductor Technologies CMP Pads Technologies Advanced Display Materials Semico
Slide 11: Large and Growing Addressable Market
Large and Growing Addressable Market % of Market CAGR Current 2024 Net Sales (2024 – 2029) TAM1, 2 ~50% Chip Fabrication MSD $15B ~10% Advanced Packaging HSD $4B ~20% PCB Building LSD – MSD $6B ~20% Assembly & Display MSD $8B 3 ~4-5% >$30B Sources: Prismark and Yole NOTE: LSD = Low single digits; MS
Slide 12: Partner of Choice to Many of the World's Most Innovative Companies
Partner of Choice to Many of the World’s Most Innovative Companies Customer Segmentation ~35 Years Average top 10 customer tenure Significant presence with leading companies, representing ~80% of total market1 Remaining Customers Top 10 Customers 43% 34% 7 of top 10 customers buy from both Semicondu
Slide 13: Partnering with Customers in High Growth End-Markets
Partnering with Customers to Accelerate Innovation in Attractive, High Growth End-Markets End Consumer Industrials / AI / Automotive Communication Market Electronics Other1 Data Center Infrastructure Key Edge Automation Cloud Autonomous driving Internet and Drivers computing and robotics computing s
Slide 14: Delivering Customized Solutions that Improve Customer Value
Delivering Customized Solutions that Improve Customer Value As customers scale Customers depend on new technologies… partners who can… …small increases in yield Co-innovate with R&D and drive big increases in value engineers through development and scale-up process Execute with exceptionally high co
Slide 15: Strategic Global Network with a Strong Local-for-Local Presence
Strategic Global Network with a Strong Local-for-Local Presence Network Advantages APAC Americas EMEA Customer Intimacy and Speed • Global production and R&D footprint close to customer facilities Supply Chain Resiliency • >80% production sourced in region • >70% raw material spend purchased in regi
Slide 16: Customer Centric Innovation with a Seat at the Design Table
Customer Centric Innovation with a Seat at the Design Table Customer Development Process Strategy of Highly Strategy Customized of Highly Solutions Customized Solutions Early Engagement Customer Engagement Customer Engagement Early understanding Early of of understanding customer roadmap customer 2-
Slide 17: Two Segments Delivering Leading End-to-End Solutions
Two Segments Delivering Leading End-to-End Solutions Across the Manufacturing Cycle Semiconductor Interconnect Technologies Solutions Deposition Chemical Mechanical Advanced PCB Building Planarization Packaging Patterning Building (CMP) Displays Semi Equipment Cleaning Blank Chip Fabrication Silicon
Slide 18: Core Semiconductor Products Positioned for Growth
Core Semiconductor Products Positioned for Growth CMP CMP Cleans & Lithographic Specialty Seals Display Pads Slurries Materials (Kalrez®) Materials Strategic Role Enables precision wafer Critical to defect control Supports patterning for Specialized seals for Specialty play in polishing for advanced
Slide 19: Composition of Semiconductor Technologies Portfolio as Compared with Industry
Composition of Semiconductor Technologies Portfolio as Compared with Industry Global Market Composition4 2019 2024 2024 Memory1 Memory1 Memory 29% 20% 28% Logic1 Logic1 Logic 71% 80% 72% Advanced1,2 Advanced2 Advanced1,2 Legacy1,3 31% 35% 65% 31% Legacy1,3 Legacy3 69% 69% 2030+ Anticipated Trend ~45
Slide 20: Broad Solutions and Deep Expertise as Trusted OEM Design Partner
Broad Solutions and Deep Expertise as Trusted OEM Design Partner Advanced Circuit Thermal Management Advanced Flex and Packaging and EMI (Laird ) Technologies Strategic Role Leading solutions to support advanced Critical solutions for thermal Leading solutions for smart devices and packaging and min
Slide 21: Executing with a Best-in-Class Operating Model
Executing with a Best-in-Class Operating Model Innovation Depth Operations Excellence Commercial Leadership • Prioritize high-impact R&D aligned with • Global supply chain executed locally • Long standing customer relationships customer roadmaps for speed, quality, and resiliency leading to increase
Slide 22: Financial Outlook
Financial Outlook 2 Qnity.
Slide 23: Strong Foundation of Financial Performance
Strong Foundation of Financial Performance Net Sales ($M) Adjusted Pro Forma Adjusted Free Cash Flow2 ($M) Operating EBITDA1 ($M) ~$4,600 ~26% ~29% ~30% $600+ $4,335 $598 $4,035 ~$1,400 $1,252 $1,038 $388 2023 2024 2025E 2023 2024 2025E 2023 2024 2025E Note: 2025E guidance as of Qnity Investor Day,
Slide 24: 3-Year Financial Objectives Through 2028
3-Year Financial Objectives Through 2028 ~6-7% ~2% Above-Market Strong ~7-9% Organic Net Sales Growth Profitability Adj. EBITDA CAGR Growth CAGR Organic Growth Disciplined Opportunistic M&A Capital Solid Free Cash <3.0x Capital Returns Flow Generation Target Net Debt Leverage1 Allocation Targets are
Slide 25: Solid Free Cash Flow Supports Balanced Capital Deployment
Solid Free Cash Flow Supports Balanced Capital Deployment Organic Reinvestment R&D and ongoing capital investments to support growth Capital Returns Target dividend payout ratio ~10%1 Leverage Management Target net leverage <3.0x Opportunistic M&A Selective, focused acquisitions with high return pro
Slide 26: Qnity's Industry Leading Financial Profile
Qnity’s Industry Leading Financial Profile Net Sales Growth1,2 EBITDA Margin2,3 FCF Conversion2,3,4,5 (FY23 – FY25E CAGR) (FY25E) (FY25E) ~7% ~83% 77% ~30% 65% 26% 25% 2% 1% U.S.-Based Competitors Diversified or Non-U.S. Based Materials Competitors Source: FactSet market data and Internal Company An
Slide 27: Primed to Capture Significant Value from Spin-Off
Primed to Capture Significant Value from Spin-Off Growth Deliver strong, above-market growth Outperformance Sharpened Drive leadership position for technology Strategic Focus inflections Optimized Right-size for cost, complexity Operating Model and impact Calibrate Centered around customers, innovat
Slide 28: Appendix
APPENDIX 2 Qnity.
Slide 29: Established Track Record of Delivering Innovative, Breakthrough Technologies
Established Track Record of Delivering Innovative, Breakthrough Technologies 1960 – 2000 2000 – 2020 Today and Beyond CMP Pads & Slurry Polymide films CMP Pad OLED Materials Advanced Node Micro Bumps for SUBA and IC 1000 Kapton® and Pyralux Ikonic and Vision Gracel CMP Materials Advanced Packaging L
Slide 30: Our Top Innovation Programs Drive Future Growth
Our Top Innovation Programs Drive Future Growth Chip Fabrication Advanced Packaging PCB Building Assembly & Display Yield-Enhancing Pads Adv. Node Photoresists High-Res Metallization, Low- Fineline Metallization Thermal/EMI Management and Sublayers Loss Dielectrics for Wafer- Chemistries Solutions L
Slide 31: Integrated Solutions with Leading Portfolio Breadth
Integrated Solutions with Leading Portfolio Breadth Assembly & Chip Fabrication Advanced Packaging PCB Building Display Light Thermal Assembly EMI Leading Edge Connectors Materials Shielding Reticle Mask Lithography Materials Passive Component Focusing Optics (inductors) Photoresist Coated Wafer The
Slide 32: Semiconductor Technologies: Building on a Strong Foundation
Semiconductor Technologies: Building on a Strong Foundation Net Sales Estimated Net Sales by End Market $2,450 ~$2,600 $2,251 ~12% Communication Infrastructure ~42% Consumer Electronics 2023 2024 2025E ~15% Automotive Adjusted Pro Forma Operating EBITDA and Margin1 ~35% ~36% ~36% $882 $900+ $785 ~19
Slide 33: New Architectures Create Significant Opportunities for CMP Portfolio
New Architectures Create Significant Opportunities Customer Win for CMP Portfolio Logic and Memory Volume (MSI) Qnity pads improve fab yield, critical in high-CMP layer architectures Background Customers require ultra-precise pad innovation to reliably produce cutting edge nodes <3nm Number of CMP L
Slide 34: Interconnect Solutions: Enabling AI through Advanced Packaging and Thermal Solutions
Interconnect Solutions: Enabling AI through Advanced Packaging and Thermal Solutions Net Sales Estimated Net Sales by End Market $1,885 ~$2,000 $1,784 ~3% Communication Infrastructure ~17% ~42% 2023 2024 2025E Automotive Consumer Electronics Adjusted Pro Forma Operating EBITDA and Margin1 ~11% AI /
Slide 35: Technology Leadership in Fast Growing Advanced Packaging
Technology Leadership in Fast Growing Partnering with Advanced Packaging Leading-Edge Customers Advanced Packaging at Intersection of Global Advanced Packaging Semiconductor and Interconnects Technology Background End-Market, USD1 Roadmap Generative AI requires high bandwidth memory (HBM) ~11% ~$75B
Slide 36: Innovation Breakthroughs in Thermal Management for AI-Optimized Servers
Innovation Breakthroughs in Thermal Management Customer Case Study for AI-Optimized Servers Global Server End-Market1 Background (shipment units) OEMs require solutions to address excessive Innovation Leader in heat generation in Deep Application data centers Thermal Management Engineering Expertise
Slide 37: 2025 Full Year Positioned for Continued Growth Momentum
2025 Full Year Positioned for Continued Growth Momentum 2024A 2025E Change Drivers Strength in AI driven applications across Net Sales $4.3B ~$4.6B ~7% advanced nodes, advanced packaging, and thermal management Adjusted Pro Forma ~$1.25B ~$1.4B ~11% Operating EBITDA1 Higher net sales and cost produc
Slide 38: Our Strategy to Outperform the Underlying Market
Our Strategy to Outperform the Underlying Market ~6-7 % Targeted Annualized Organic Net Sales CAGR through 2028 OUTPERFORM MARKET TAM Expansion Content Customer % Growth Gain ~2 + ~4-5% End Market Digitization / New Underlying Demand Connectivity Technologies Market Tailwinds NOTE: All growth rates
Slide 39: Strategic Capital Investments Aligned with Customer Roadmaps
Strategic Capital Investments Aligned with Customer Roadmaps Future R&D Investments Future Capex Investments ~7% 60% Top 30% Supporting 10% Break-through ~6% 70% Growth 30% Maintenance Programs Existing Technologies of net sales Customers of net sales Full support for top programs in advanced nodes,
Slide 40: M&A to be Part of Our Future for Accelerating Long-Term Shareholder Returns
M&A to be Part of Our Future for Accelerating Long-Term Shareholder Returns Potential Focus Areas Strategic Criteria Advanced Packaging and Expands portfolio in fast-growing Thermal Management adjacencies Leading technologies in next-generation electronics Accelerates technology leadership with Comp
Slide 41: Balance Sheet Strength Underpins Financial Flexibility for Future Growth
Balance Sheet Strength Underpins Financial Flexibility for Future Growth Senior Secured Term Loan $4.1B B Facility $2.35B Gross Debt (7 year, ~6%1,2) $4.1B Gross Debt ~$3.5B Net Debt Senior Senior Unsecured Note Secured Note $750M $1B (8 year, 6.250%) (7 year, 5.750%) ~2.5x 2025E Net Leverage4 NOTE:
Slide 42: On-Track for November 2025 Spin
On-Track for November 2025 Spin Jan Apr June June-Oct Aug Sep 18 Nov 1 Nov 3 Nov Nov-Dec Qnity spin-off Initial SEC Completes Form 10 Debt Inaugural Targeted NYSE regular Business NDRs / accelerated to Form 10 leadership amendments financing Investor spin way trading update conferences November 1, f
Slide 43: Reconciliations
Reconciliations 2 Qnity.
Slide 44: 2025E: ElectronicsCo Segment to Qnity Adjusted Pro Forma Operating EBITDA Bridge
2025E: ElectronicsCo Segment to Qnity Adjusted Pro Forma Operating EBITDA Bridge ($ Millions) ~ $1,520 ElectronicsCo ~ $1,450 Segment Operating Qnity ~ $1,400 EBITDA Adjusted (DuPont)* Qnity Carve Out Operating Adjusted EBITDA** Pro Forma Operating EBTIDA ** Segment FY Corp Costs Depr Adj Other Carv
Slide 45: Adjusted Operating EBITDA – Carve Out Operating EBITDA
Adjusted Operating EBITDA – Carve Out Operating EBITDA ($M) Note: 2025E guidance as of Qnity Investor Day, 2023 2024 ~ 2025E September 18, 2025. 1) Qnity Carve-Out Adjusted Operating EBITDA is a Carve Out Net Sales $4,035 $4,335 $4,600 non-GAAP financial measure and is defined as earnings (i.e., “In
Slide 46: Adjusted Operating EBITDA – Pro Forma Operating EBITDA
Adjusted Operating EBITDA – Pro Forma Operating EBITDA ($M) Note: 2025E guidance as of Qnity Investor Day, 2023 2024 ~ 2025E September 18, 2025. 1) Pro forma Other Expenses includes Carve Out Net Sales $4,035 $4,335 $4,600 litigation/environmental/legal costs, and non- operating pension credit. Semi
Slide 47: Adjusted Free Cash Flow - Pro Forma & Recurring Management Adjusted
Adjusted Free Cash Flow - Pro Forma & Recurring Management Adjusted ($M) Note: 2025E guidance as of Qnity Investor Day, 2023 2024 ~ 2025E September 18, 2025. 1) Indirect legacy costs relate to cost sharing arrangements executed between DuPont Cash Provided by Operating Activities (GAAP) $882 $1,061
Slide 48: Investor Relations Contact
Qnity , the Qnity Node Logo, and all products, unless otherwise noted, denoted with TM or ® are trademarks, trade names or registered trademarks of affiliates of Qnity Electronics, Inc. *The intended separation of Qnity Electronics, Inc., targeted for completion on November 1, 2025, is subject to sa
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