Entegris, Inc. · NASDAQ:ENTG
Entegris — Investor Day (June 2013)
104 slides from Entegris's investor day presentation, Jun 6, 2013
Slide 1: 2013 Analyst Day
NASDAQ® MarketSite June 4, 2013 2013 Analyst Day
Slide 2: Safe Harbor
Safe Harbor 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 results to differ
Slide 3: Agenda
Agenda Wired for Growth and Excellence Bertrand LoyPresident and CEO Capturing Growth in Semiconductor Market Wenge YangVice President of Marketing Growing Beyond Semiconductors Stuart TisonVice President, Industrial Solutions Financial Perspective Greg GravesExecutive Vice President and CFO Q&A All
Slide 4: Bertrand Loy: Wired for Growth and Excellence
Bertrand Loy President and CEO Wired for Growth and Excellence
Slide 5: Key Points
Key Points Strategy to be best-in-class among our peers We’ve delivered superior execution: outperformed the market; delivered superior profitability and excellent cash flow Clear growth paths in semiconductor and adjacent markets Deploying capital to increase shareholder value
Slide 6: Three-year Financial Objectives
Three-year Financial Objectives Relentlessly Pursuing Excellence to Serve Our Stakeholders To Deliver Best-In-Class Performance and Superior Shareholder Value Grow 3% Faster Than Our Markets Deliver Superior Profitability: 20%+ Operating Margin Generate > $100M Annual Cash Flow Create Shareholder Va
Slide 7: Strong Performance
Strong Performance We Delivered in 2012 Sales $716 Million Operating Margin* 16% Cash from Operations $115 Million Earnings Per Share** $0.55 *Adjusted operating margin **Non-GAAP earnings Grow 3% Faster Than Our Markets Deliver Superior Profitability: 20%+ Operating Margin Generate > $100M Annual C
Slide 8: Outperformance
Outperformance Over the Past Four Years 1Blend of Semiconductor wafer fab equipment spending and wafer production in millions of square inches of silicon 2Peer group comprised of ATMI, CCMP, AEIS and MKSI Entegris Industry1 Entegris (Semi only) 2006-2009 -18.7% -21.0% -12.9% 2009-2012 21.4% 24.2% 17
Slide 9: Growth: Building on a Strong Platform
Growth: Building on a Strong Platform
Slide 10: Entegris
Entegris Contamination Control Technologies Advanced Materials 10% The Contamination Control Experts for Advanced Manufacturing Contamination particles inorganics bubbles Airborne molecules ions gels Microenvironments 26% Filtration and Purification 44% Fluid Handling 20% Maximized Yields % 2012 Sal
Slide 11: Semiconductor and Beyond
Semiconductor and Beyond *2012 market share for key filtration and wafer handling products approx. 50-60% Source: Company estimates; 2015 SAM share excludes M&A Semiconductor Semiconductor Adjacent Markets $1,900 M $2,250 M CAGR = 10.1% CAGR = 5.8% Entegris average approximate share in served availa
Slide 12: Industry to outperform worldwide GDP
Industry to outperform worldwide GDP driven by end market demand for electronics MSI = millions of square inches of silicon Source: Gartner, March 2013 Continued Steady Growth Expected in Semiconductor Units (CHART) Estimated 3-yr. CAGR = 6.0% 3-yr. CAGR = 3.0%
Slide 13: Mobile and Tablet Growth Drives Semiconductor Demand
Mobile and Tablet Growth Drives Semiconductor Demand ICs used in tablets expected to offset low-end PCs Source: Left – Prismark, March 2013; Right – Goldman Sachs (CHART) (CHART) Significant Smartphone and Tablet Manufacturing Growth Units in millions IC Value by Platform $US
Slide 14: The Industry's Endless Search For More
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 More process steps Disruptive technologies EUV and 450 mm More difficult contamination issues Demand for electronics Improved performanc
Slide 15: Semi Makers Face Intense Pressure to Maximize Yields Quickly
Semi Makers Face Intense Pressure to Maximize Yields Quickly Source: Entegris estimates. Capex projection assumes no EUV or 450 mm adoption; based on public statements by key IDMs and OEMs Cost of semiconductor technology is rising at unprecedented rate More complex processes with more steps Declini
Slide 16: Portfolio of Adjacent Markets Offer Seeds for Long-Term Growth
Portfolio of Adjacent Markets Offer Seeds for Long-Term Growth What’s Beyond Semiconductor? Mature Emerging Contamination Control Requirements Low High Semiconductor PV Solar LIB LED Industrial Life Sciences TFT-LCD Data Storage
Slide 17: A Portfolio of Stable and Growth Markets
1Display Bank; 2TechNavio; 3NPD DisplaySearch; 4Evaluate Pharma A Portfolio of Stable and Growth Markets Industrial Aerospace LED PV/Solar Life Sciences LIB Pharmaceutical processing to grow 8% annually 4 Global market for metal cutting tools to grow 10.1% CAGR from 2012-2016 2 AMOLED display market
Slide 18: Building a Best-In-Class Business Model
Building a Best-In-Class Business Model
Slide 19: Consolidating Customer Base Requires New Business Model
Consolidating Customer Base Requires New Business Model For Strategic Suppliers Localized infrastructure and support Rapid Innovation Breadth of relevant technologies
Slide 20: Breadth and Depth of Technology
Breadth and Depth of Technology Contamination Control Solutions Microenvironments Specialty Materials 2012 Sales $462 M $182 M $72 M Technology Filtration, Purificationand Fluid Handling Wafer and Critical Substrate Handling Advanced Materials Product Platforms Liquid filters and purifiersGas filter
Slide 21: Strategically Augmenting Capabilities Close to Customers
*Includes manufacturing engineers Strategically Augmenting Capabilities Close to Customers Europe and Israel Asia and Japan North America Germany Israel France Singapore Malaysia China Korea Japan California Colorado Minnesota Texas Massachusetts Taiwan FY12 Sales by Region North America 31% Asia 39
Slide 22: Global Footprint and Breadth of Technology Provide Unique Competitive Position
Global Footprint and Breadth of Technology Provide Unique Competitive Position Size of circles reflects approximate relative semiconductor sales, based on company estimates Global Footprint (# of employees – logarithmic scale) Large Broad Narrow Breadth of Semiconductor Contamination Control Technol
Slide 23: Growing Our Share
Growing Our Share *NDAs and JDAs Deepening Our Collaboration with Strategic Customers (CHART) Direct engagement by engineering teams Pilot capability at most sites Customer shares information Customer enters relationship Customer provides feedback Relationship grows stronger Relevant, Trusted, Techn
Slide 24: Investment Priorities
Investment Priorities Analyst Day 2013 | 28 Entegris
Slide 25: Investment Priorities
Investment Priorities i2M Center 450 mm Product Manufacturing Jetalon Solutions $50 M Share Repurchase Nodes 450 mm EUV Technology/ Infrastructure Focused Acquisitions Returning Cash to Shareholders R&D
Slide 26: New Products: Sustained Investment Yielding Results
New Products: Sub-10 nm filtration Advanced flow control CMP pad conditioners Advanced 300 mm carriers EUV reticle pods 450 mm carriers and shippers 450 mm E-chucks Sustained Investment in New Products Yielding Results *For CCS and ME divisions; products produced in the last three years Focused Acqu
Slide 27: Technology Infrastructure to Expand Market Leadership
Advanced Technology Center Location: Colorado Springs, CO 450 mm and EUV pod manufacturing Final phase of preparing for volume production capability i2M Center Location: Bedford, MA New England’s most advanced membrane and coatings center Customer qualifications to begin Q1 2014 Technology Infrastru
Slide 28: Highly Focused M&A: Filling Technology Gaps
Highly Focused M&A: Filling Technology Gaps Focused M&A Purpose Criteria Product/Technologyacquisitions Fill technology gapsto expand share in existing semi markets Synergies with existing productsServe existing markets Established businesses and product lines in adjacent markets Build scale inadjac
Slide 29: Jetalon Acquisition Expands Sensing and Control Capabilities
A small technology company based in California; acquired April 1, 2013 Innovative technology for measuring chemical concentrations in real-time process flows Applications in semiconductor, life sciences and other markets Adds to our sensing and control technology “toolbox” Jetalon Acquisition Expand
Slide 30: Returning Cash to Shareholders
Goal: return excess cash to shareholders $50 million share buyback in place Sustained repurchases Long-term objective to reduce share count meaningfully Returning Cash to Shareholders Buy backs Replenish (CHART) Minimum Cash to Run Business Acquisition “Dry Powder” $125 $200 Cumulative Free Cash Flo
Slide 31: Trademarks
Entegris®, the Entegris Rings Design®and Creating a Material AdvantageSM are trademarks of Entegris, Inc. ©2013 Entegris, Inc. All rights reserved.
Slide 32: Wenge Yang: Capturing Growth in Semiconductor Market
Wenge Yang Vice President of Marketing Capturing Growth in Semiconductor Market
Slide 33: Key Takeaways: In the Right Place at the Right Time
Key Takeaways: In the Right Place at the Right Time Entegris is the “last line of defense” for the wafer against defects; our contamination control is critical to device yield Our top three applications align with the fastest growing segments in industry Wins at the leading edge drive revenues for t
Slide 34: Yield-Enhancing Solutions Across the Semi Ecosystem
Yield-Enhancing Solutions Across the Semi Ecosystem Advanced Materials 10% Filtration/ Purification 44% Micro- environments 26% Fluid Handling 20% OEMs 26% Materials Suppliers 16% Foundries Logic Memory OEM Tool Companies Wafer Growers Chemical Companies R&D Consortia Eng. Contractors Device Makers
Slide 35: Entegris: The Last Line of Defense Against Defects
Entegris: The Last Line of Defense Against Defects Diffusion CVD Ion Implant Metrology Overhead Transport System Wet Etch and Clean CMP Dry Etch Lithography Fab HVAC System FOUP Incoming Supply Chain Wafer Growers Chemical Suppliers Filtration Fluid Handling Wafer Handling Purification Advanced Mate
Slide 36: Focusing on Key Contamination Control Challenges
Wet Etch and Clean (WEC) Liquid filters Chemical containers Fluid management Fab microenvironments (Fab) Advanced FOUPs Advanced wafer shippers Reticle pods Lithography (Litho) Photoresist filters Photoresist pumps Liquid filters for immersion systems Focusing on Key Contamination Control Challenges
Slide 37: Biggest Challenge in Semi: Increasing Costs and Lower Yields
Source: Entegris estimates Biggest Challenge in Semi: Increasing Costs and Lower Yields Capex 5x 90 nm ? 22 nm Process Steps 4x 90 nm ? 22 nm Mature Yield -15% 90 nm ? 22 nm
Slide 38: Near-Term Solution: Reduce Defects and Improve Yield
Annual revenue impact from 1% yield change (60,000 wpm fab) Source: Entegris estimates Near-Term Solution: Reduce Defects and Improve Yield Defect reduction for yield improvement is the central focus of semi manufacturing (Assumption) CPU APU 2 Gb DRAM Die size (mm2) 200 100 30 ASP $45 $20 $1.70
Slide 39: Defect Reduction Driving Revenue Growth for Entegris
Source: Gartner; Entegris estimates Defect Reduction Driving Revenue Growth for Entegris 65 nm Downturn 45 nm 32 nm 28 nm Entegris Liquid Filtration Revenue Growth vs. MSI (CHART)
Slide 40: Long Term: 450 mm Drives Refresh of Microenvironment Products
Long Term: 450 mm Drives Refresh of Microenvironment Products Pilot line 2015, production line 2017 Increasing SAM for our microenvironment products Recent wins: No.1 IDM, No.1 OEM, G450C 1975 1980 1990 2001 2017 300 mm 450 mm 100 mm 150 mm 200 mm
Slide 41: EUV Provides New Product Platform Opportunities
EUV Provides New Product Platform Opportunities Pilot line 2015, production line 2017-2018 Added opportunity for Entegris beyond resist processing Recent wins: 100% share for EUV reticle pod, single supplier for several key components EUV Reticle Pod EUV Filter Mirror Coatings
Slide 42: Entegris is Focused on the Most Rapidly Growing Segments
Source: Gartner; Entegris (CHART) Entegris is Focused on the Most Rapidly Growing Segments WFE average -4% Application Segment Growth 5 Year CAGR (2007-2012)
Slide 43: Focus in Growth Segments: Wet Etch and Clean
Focus in Growth Segments: Wet Etch and Clean (WEC) (CHART)
Slide 44: Entegris WEC Solutions: Equipment and Consumables
Entegris WEC Solutions: Equipment and Consumables Valves | Fittings | Liquid filters | Flow control | Containers | Manifolds | Tubing | Pumps Valve Manifold Box Chemical Mixing System AMC Spray/Single Wafer Processing Immersion/Batch Wafer Processing Chemical Delivery
Slide 45: Entegris WEC Solutions: Equipment and Consumables
Entegris WEC Solutions: Equipment and Consumables Valves | Fittings | Liquid filters | Flow control | Containers | Manifolds | Tubing | Pumps Liquid filters Valve Manifold Box Chemical Mixing System AMC Spray/Single Wafer Processing Immersion/Batch Wafer Processing Chemical Delivery
Slide 46: WEC Market Trend No. 1: Single Wafer Clean Growth
WEC Market Trend No. 1: Single Wafer Clean Growth Source: VLSI Research 2012-2015 units = +13.2% annual 2012-2015 ASP = + 1.6% annual 2012-2015 equipment revenue from $1.5B to $2.3B = +15% annual 2012-2015 equipment revenue from $1.5B to $2.3B = +15% annual 2012-2015 equipment revenue from $1.5B to
Slide 47: WEC Market Trend No. 1: Revenue and SAM per System
Entegris Normalized Revenue and SAM per System WEC Market Trend No. 1: Entegris Revenue 5-6x per System Source: Entegris estimates Key Entegris Components per System per System per System per System per System
Slide 48: WEC Market Trend No. 2: Higher ASP, Shorter Replacement Cycle
WEC Market Trend No. 2: Higher ASP, Shorter Replacement Cycle Source: Entegris estimates 2X ASP Filter Replacement Interval Shortened by 30% 2.2 2.0 1.8 1.6 1.4 1.2 1.0 Normalized ASP Trend Advanced Filter 45 nm 28 nm Relative Price per Filter Replacement time
Slide 49: Entegris Products Continue to Push the Limit
Entegris Products Continue to Push the Limit QuickChange® ATM/ATE Symmetric PTFE Media Asymmetric PTFE Media Asymmetric Hollow Fiber + + + + + + + + + 20-15 nm Filtration Metal Ion Removal – DIW 50-30 nm Filtration <10 nm Filtration Metal Ion Removal – Chemicals Torrento® AT3 Protego® Plus LTX POU N
Slide 50: Focus in Growth Segments: Photolithography
(CHART) Focus in Growth Segments: Photolithography
Slide 51: Photolithography Solutions: Equipment and Consumables
Entegris Photolithography Solutions: Equipment and Consumables Resist filters | Dispense systems | Liquid filters | Air/gas filtration | Air/gas purification | Wafer handling | Reticle pods Laser Stocker AMC Track Scanner Aeronex® XCDA Gas Purification System Chemical Air Filter Housing for Scanner
Slide 52: Photolithography Solutions: Equipment and Consumables
Entegris Photolithography Solutions: Equipment and Consumables Resist filters | Dispense systems | Liquid filters | Air/gas filtration | Air/gas purification | Wafer handling | Reticle pods Liquid filters Laser Stocker AMC Track Scanner Aeronex® XCDA Gas Purification System Chemical Air Filter Housi
Slide 53: Litho Market Trend No. 1: More Steps, More Resist Usage
2012-2015 process step increase: 1,500 at 28 nm to 3,300 at 10 nm (without EUV) Critical photolithography steps from 20 to 45, more than 2x Resist usage +7%/yr. overall, 193 nm +50%/yr. Source: SEMI Litho Market Trend No. 1: More Steps, More Resist Usage Annual Industry Resist Consumption $ in milli
Slide 54: Litho Market Trend No. 2: Double Patterning Drives Filter Needs
Double patterning (DP) is starting at Intel (22 nm) in 2012, TSMC and Samsung (20 nm) in 2013 Big three are forecasting 2x consumption of 193 nm resist from 2012 to 2014 Entegris should see 40-50% growth in advanced resist filter needs Source: ASML Litho Market Trend No. 2: Double Patterning Drives
Slide 55: Litho Market Trend No. 3: Defect Reduction Drives Filtration
0.4 0.6 0.8 1 1.2 1.4 1.6 Litho Market Trend No. 3: Defect Reduction Drives Filtration Source: Entegris estimates Lithography: #1 defect source in leading edge Solution: better filters in fab and filtration at chemical makers End result: jump in leading-edge resist filtration demand End result: jump
Slide 56: Entegris Filtration Delivering Higher Value to Customers
1.5X ASP 1.6 1.5 1.4 1.3 1.2 1.1 1.0 Entegris Filtration Delivering Higher Value to Customers Advanced Nodes Grew >44% Older Nodes 2010 2012 Photochemical Filter Revenues Normalized ASP Trend Advanced Photochemical Filter
Slide 57: Entegris Products Continue to Push the Limit
Entegris Products Continue to Push the Limit + + + + + + + + + 3 and 5 nm UPE/Duo Filtration 50 nm UPE Symmetric Membrane Selective Nano Filtration/ Purification Impact® 2 UPE Impact 8G UPE/DUO Impact SNFP
Slide 58: Focus in Growth Segments: Advanced Wafer Microenvironments
(CHART) Focus in Growth Segments: Advanced Wafer Microenvironments
Slide 59: Front Opening Unified Pod (FOUP) Technology
Protect wafer from outside contaminants: particles, gases, moisture Protect wafer from on wafer contaminants: etch outgassing Anti-shock, anti-vibration Entegris 300 mm market share: > 80%+ at leading edge Front Opening Unified Pod (FOUP) Technology
Slide 60: Contamination Control is Critical
*Source: T. Kamoshima, et al., “Controlling ambient gas in slot-to-slot space inside FOUP to suppress Cu-loss after dual damascene patterning,” IEEE Trans. Semicon. Manufact., vol. 21 (Renesas & Hitachi). ©2008 IEEE – all rights reserved. Contamination Control is Critical O2 + H2O Induced Cu Erosion
Slide 61: Three Entegris Technology Breakthroughs
Three Entegris Technology Breakthroughs New Materials Innovative Purging Design Added Purification Advanced On-wafer Purge Entegris Barrier Material Active Clarilite® Wafer Purification
Slide 62: Significant Improvement in Wafer Protection
Significant Improvement in Wafer Protection Source: Entegris Source: Entegris Source: Entegris Number of Particles Technology Node In-Fab Test Results Time within Particle Spec
Slide 63: Extending Our 300 mm Experience to Win at 450 mm
Applying three 300 mm technology breakthroughs to 450 mm Fastener/screw-free for improved particle performance Redesigned wafer support to prevent wafer sagging New shock/vibration damping system Positioned for substantial market share gains for 450 mm shippers Extending Our 300 mm Experience to Win
Slide 64: Our Winning Strategy in Semiconductor
Our Winning Strategy in Semiconductor Particle removal by filtration Contamination removal by purification Wafer protection by microenvironment WEC is the number one growth segment in semi cap, and the top application for Entegris Litho is the largest segment in semi cap, and the second largest appl
Slide 65: Entegris: Creating a Material Advantage
CO Entegris creating a material advantage Entegr (©2013 Ent eating a Material Advantage™ are trademarks of Entegris, Inc.
Slide 66: Stuart Tison: Growing Beyond Semiconductors
Stuart Tison Vice President, Industrial Solutions Growing Beyond Semiconductors
Slide 67: Attractive Adjacent Markets
Entegris serves multiple stable and growing markets adjacent to the semiconductor industry Portfolio of products served by all three Entegris divisions Portfolio of markets enables a stable revenue base with opportunities for growth Blend of equipment sales and recurring revenue Attractive Adjacent
Slide 68: Adjacent Markets are a Stable Revenue Platform for Growth
Adjacent Markets are a Stable Revenue Platform for Growth Adjacent Markets are a Stable Revenue Platform for Growth Growth of 7.7% CAGR (2008-2011) driven by emerging segments of LED and Photovoltaics Slowdown in LED and Photovoltaics led to decline in 2012
Slide 69: Semiconductor and Beyond
Semiconductor and Beyond *2012 market share for key filtration and wafer handling products approx. 50-60% Source: Company estimates; 2015 SAM share excludes M&A Semiconductor Semiconductor Adjacent Markets $1,900 M $2,250 M CAGR = 10.1% CAGR = 5.8% Entegris average approximate share in served availa
Slide 70: Leveraging our Technology in Adjacent Markets
Leveraging our Technology in Adjacent Markets Established Microelectronics 30% Emerging and Growth 20% Industrial and Other 50% Displays Data storage Consumer electronics PV solar LED Lithium ion battery Life sciences Electron discharge machining (EDM) Aerospace Others
Slide 71: What Do These Markets Have in Common?
What Do These Markets Have in Common? Similar manufacturing processes to semiconductor Uses Entegris’ core materials sciences expertise Applications require increasingly stringent contamination control and materials handling Established Microelectronics 30% Emerging and Growth 20% Industrial and Oth
Slide 72: Sales to Established Microelectronics Markets Driven by Units
Filtration Fluid handling Substrate handling Sales to Established Microelectronics Markets Driven by Units TFT-LCD Displays, Data Storage and Consumer Electronics Source: Gartner, March 2013 What We Provide: Key Revenue Drivers: Mobile devices Large screen TV demand PCs and Servers Inkjet printing I
Slide 73: Display Performance Requires High Purity Chemistries
Display Performance Requires High Purity Chemistries Active Matrix Organic Light Emitting Diodes (AMOLED) Entegris filtration is used to ensure high purity fluid delivery in both the manufacture of the chemicals and for direct application during display production Manufacture of AMOLEDs requires hig
Slide 74: Sales to Industrial Markets Driven by Economic Demand
Sales to Industrial Markets Driven by Economic Demand Source: Gartner, March 2013 (CHART) Global GDP $ in Trillions CAGR 2012-2015: 3.0% Graphite Silicon carbide Coatings Global manufacturing production output Automobile production Precision molds for consumer products Aircraft engine production Wha
Slide 75: A Cleaner Alternative to Lubricants is Needed
A Cleaner Alternative to Lubricants is Needed Industrial Molding UltraC™ Diamond coating eliminates the need for lubricants Higher purity Increased tool uptime Cost savings Many industrial molding processes use grease or lubricants to reduce friction and prevent sticking, which can lead to unaccepta
Slide 76: Higher Engine Temperatures Require New Materials
Higher Engine Temperatures Require New Materials Aerospace Entegris POCO graphite gives best- in-class heat transfer and strength properties Higher temperature operation Improved lifetime Propulsion efficiency is a large focus for the aerospace industry Higher temperatures are required for higher ef
Slide 77: Sales to Emerging Markets Driven By Need for Purity
Sales to Emerging Markets Driven By Need for Purity PV Solar, LED, Energy Storage, Life Sciences (CHART) Worldwide Photovoltaic Installation Forecast 2013 in Gigawatts CAGR 2012-2015: 10.7% Filtration and purification systems Fluid handling, sensing and control Substrate handling Unit expansion for
Slide 78: Extreme Purity Process Gases Enable High Brightness LED
Entegris AGPS systems purify process gases to better than 1 ppb while maximizing equipment uptime HBLED Extreme Purity Process Gases Enable High Brightness LED
Slide 79: Increasingly Stringent Contamination Control Requirements
Ensures high purity chemical delivery for bioprocesses Prevents cross contamination Enables high-accuracy sensing for optimal chemical delivery Ensures purity of drug production lines Prevents loss of drug product due to contamination events Increasingly Stringent Contamination Control Requirements
Slide 80: Advanced Sensing for Bioprocessing
Broad applications in life sciences Chemical mixing is critical for protein recovery Ensures optimum protein purification for drug discovery and production Reduces risks from process variations and yields Advanced Sensing for Bioprocessing Jetalon Concentration Sensor Technology Pure protein Sample
Slide 81: Advanced Sensing for Bioprocessing
Broad applications in life sciences Chemical mixing is critical for protein recovery Ensures optimum protein purification for drug discovery and production Reduces risks from process variations and yields Advanced Sensing for Bioprocessing Jetalon Concentration Sensor Technology Pure protein Sample
Slide 82: Strategy for Growth in Adjacent Markets
Strategy for Growth in Adjacent Markets Leverage our existing products and technologies into new applications in adjacent markets Focus on markets we understand which increasingly require contamination control solutions Enables additional growth opportunities in emerging markets which require new so
Slide 83: Trademarks
Entegris®, the Entegris Rings Design®and Creating a Material AdvantageSM are trademarks of Entegris, Inc. ©2013 Entegris, Inc. All rights reserved.
Slide 84: Greg Graves: Financial Perspective
Greg Graves Executive Vice President and CFO Financial Perspective
Slide 85: Historical View
Historical View – Strong Relative Performance The Path Forward – Reaching $1.00 in EPS Capital Allocation – Capital Investment, M&A, Return to Shareholders
Slide 86: Strong Performance: We Delivered in 2012
Sales $716 Million Operating Margin* 16% Cash from Operations $115 Million Earnings Per Share** $0.55 Strong Performance We Delivered in 2012 Declined 4.5% overall; semiconductor down just 2.6% Contraction less than our markets and peers Margin consistent with our target model Cash balance of almost
Slide 87: Strong Relative Revenue Growth
(CHART) Growth Rate vs. Peers* Strong Relative Revenue Growth Outgrowing the peer group over the duration of a cycle 2012 3 Year CAGR 2011 2010 *Peer group includes ATMI, CCMP (unit-driven, weighted 65%); AEIS and MKSI (capital-driven, weighted 35%)
Slide 88: Strong Relative Profitability Throughout the Cycle
(CHART) Strong Relative Profitability Throughout the Cycle Operating Margin (EBITA) vs. Peers (CHART) Peak (Q2 2011) Trough (Q1 2013) Capital-Driven Peers Unit-Driven Peers Capital-Driven Peers Unit-Driven Peers Top quartile profitability at both the industry peak and trough
Slide 89: Best-in-Class Return on Invested Capital
(CHART) 2012 ROIC* vs. Peers *ROIC = Operating profit net of taxes divided by average invested capital Best-in-Class Return on Invested Capital Capital-Driven Peers Unit-Driven Peers
Slide 90: Well Positioned to Continue to Perform: Division Portfolio
(CHART) Well Positioned to Continue to Perform: Division Portfolio CCS High growth driven by increasing contamination control requirements 23%—28% High investment to sustain superior growth and margins High-profit growth engine ME Mature market. Gains at larger diameters, offset by declines in 200 m
Slide 91: The Path Forward
Historical View – Strong Relative Performance The Path Forward – Reaching $1.00 in EPS Capital Allocation – Capital Investment, M&A, Return to Shareholders
Slide 92: Our Target Model Provides Flexibility and Drives Performance
Quarterly Revenue Level1 Quarterly Revenue Level1 Quarterly Revenue Level1 Revenue ($ in millions) $170 $190 $220 Adjusted Operating Margin2 13%—15% 16%—18% 20%+ Earnings Per Share3 $0.11—$0.13 $0.15—$0.17 $0.22+ Our Target Model Provides Flexibility and Drives Performance 1Represents range of adjus
Slide 93: Delivering on the Target Model
Delivering on the Target Model Delivering on the Target Model Revenue 2010 2011 2012 2013 Target model Operating margin
Slide 94: Illustrative Model: EPS Growth Formula
Revenue $716 $865 $940 $940 Operating Income $113 $197 16% 21% EPS $.55 $1.04 EPS Growth Formula 1Gartner, March 2013; projected CAGR for the period 2012 to 2015 Assumptions: No M&A, tax rate constant at 27%, share count constant at 138 million Illustrative Model Three-Year Industry Growth1 Units: 6
Slide 95: Capital Allocation
Historical View – Strong Relative Performance The Path Forward – Reaching $1.00 in EPS Capital Allocation – Capital Investment, M&A, Return to Shareholders
Slide 96: Balance Sheet Continues to Strengthen
Balance Sheet Continues to Strengthen $ and Share Data in Millions March 30, 2013 March 31, 2012 Cash $339 $267 Total Assets $806 $736 Total Debt $0 $0 Shareholders’ Equity $703 $628 Common Shares Outstanding 140 137 At March 30, 2013 Entegris had a debt-free balance sheet and $2.42 in cash per shar
Slide 97: Strong Cash Flow Generator
Estimated Generated more than $400 million in free cash flow since 2007 Strong cash flow capability even with major capital projects underway Strong Cash Flow Generator 1 Free cash flow capability assumes no M&A activity or change in capital structure Free Cash Flow Capability1 (CHART) Actual Free C
Slide 98: Investing to Extend Technology Leadership
Investing to Extend Technology Leadership Entegris Capital Spending Plan Some equipment investment may shift to 2014 $ in millions i2M Center for Advanced Material Science Location: Bedford, MA Investment: $50-$55 million Research, development and manufacturing of filtration media and specialty coat
Slide 99: Acquisition Criteria
Acquisition Criteria Strategic Fit Complement existing markets or capabilities Return Profile Return on invested capital greater than 15% Scale acquisitions immediately accretive Smaller technology buys accretive by year two Financial Profile Growth profile greater than base business Operating margi
Slide 100: Broaden Markets: Strategic Acquisition Model
Broaden Markets Strategic Acquisition Model Existing New Markets New Existing Deepened Extended Capabilities Poco Graphite PureLine Jetalon Solutions Extraction Systems Specialty Coatings Broaden Capabilities
Slide 101: Creating Value Through M&A
Pretax Return on Investment* – Companies Acquired Since 2005 *Average operating profit for 2011 and 2012 divided by invested capital Creating Value Through M&A 30%+ 16%+ 6%+ 40%+
Slide 102: Goal: return excess cash to shareholders
Goal: return excess cash to shareholders Share repurchase – current approach $50 million share buyback in place Sustained repurchases Long-term objective to reduce share count meaningfully Dividend option reviewed annually at board level Returning Cash to Shareholders Buy backs Replenish (CHART) Min
Slide 103: Key Takeaways
Key Takeaways Our results demonstrate our ability to outperform the market and deliver superior profitability and excellent cash flow Our core technologies are critical in solving the industry’s most difficult contamination issues We are expanding the breadth of our technology through sustained and
Slide 104: Entegris: Creating a Material Advantage
Entegris Creating a material advantage