Slide 1: Earnings Summary Second Quarter 2023
Earnings Summary Second Quarter 2023 August 3, 2023
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. Thes
Slide 3: Summary – Consolidated Statement of Operations (GAAP)
Summary – Consolidated Statement of Operations (GAAP) $ in millions, except per share data 2Q23 2Q22 1Q23 2Q23 over 2Q22 2Q23 over 1Q23 Net Revenue $901.0 $692.5 $922.4 30.1% (2.3%) Gross Margin 42.6% 44.8% 43.5% Operating Expenses $116.6 $152.4 $388.2 (23.5)% (70.0%) Operating Income $267.6 $158.0
Slide 4: Summary – Consolidated Statement of Operations (Non-GAAP)
Summary – Consolidated Statement of Operations (Non-GAAP)1 $ in millions, except per share data 2Q23 2Q22 1Q23 2Q23 over 2Q22 2Q23 over 1Q23 Net Revenue $901.0 $692.5 $922.4 30.1% (2.3%) Adjusted Gross Margin – as a % of 42.6% 44.8% 44.3% Net Sales Non-GAAP Operating Expenses2 $183.2 $127.4 $204.3 4
Slide 5: Microcontamination Control (MC)
Microcontamination Control (MC) 2Q23 Highlights 2Q23 over 2Q23 over $ in millions 2Q23 2Q22 1Q23 2Q22 1Q23 Net Revenue $283.6 $274.1 $269.3 3.5% 5.3% Sales increase (SEQ) was driven by liquid filtration and gas purification solutions. Segment Profit $100.7 $100.1 $96.0 0.6% 4.9% –––––– Segment profi
Slide 6: Advanced Materials Handling (AMH)
Advanced Materials Handling (AMH) 2Q23 Highlights 2Q23 over 2Q23 over $ in millions 2Q23 2Q22 1Q23 2Q22 1Q23 Net Revenue $190.4 $224.1 $218.9 (15.0%) (13.0%) Sales decline (SEQ) was driven by FOUPs, partially offset by fluid handling products. Segment Profit $35.8 $46.9 $48.2 (23.7%) (25.6%) ––––––
Slide 7: Specialty Chemicals and Engineered Materials (SCEM)
Specialty Chemicals and Engineered Materials (SCEM)2 2Q23 Highlights 2Q23 over 2Q23 over $ in millions 2Q23 2Q22 1Q23 2Q22 1Q23 Net Revenue1 $200.1 $225.2 $198.0 (11.1)% 1.1% Sales increase (SEQ) was driven primarily by growth in etching chemistries. Segment Profit1 $173.3 $38.1 $3.3 354.9% 5151.5%
Slide 8: Advanced Planarization Solutions (APS)
Advanced Planarization Solutions (APS)2 2Q23 Highlights 2Q23 over 2Q23 over $ in millions 2Q23 2Q22 1Q23 2Q22 1Q23 Net Revenue $240.6 $305.3 $250.3 (21.2)% (3.9)% Sales decline (YOY) was primarily driven by the overall decline in the memory market Segment Profit (Loss)1 $42.4 $84.9 $(32.8) (50.1)% (
Slide 9: Summary – Balance Sheet Items
Summary – Balance Sheet Items $ in millions 2Q23 2Q22 1Q23 $ Amount % Total $ Amount % Total $ Amount % Total Cash, Cash Equivalents & Restricted Cash $567.0 5.7% $2,743.2 46.8% $709.0 7.0% Accounts Receivable, net $436.0 4.4% $381.3 6.5% $511.4 5.1% Inventories $740.4 7.5% $583.8 10.0% $830.9 8.3%
Slide 10: Cash Flows
Cash Flows $ in millions 2Q23 2Q22 1Q23 Beginning Cash Balance $709.0 $352.7 $563.4 Cash provided by operating activities 127.0 110.9 151.9 Capital expenditures (116.1) (107.7) (134.0) Proceeds from revolving credit facilities and debt — 2,527.3 117.2 Payments on revolving credit facilities and debt
Slide 11: Outlook
Outlook GAAP $ in millions, except per share data 3Q23 Guidance 2Q23 Actual 1Q23 Actual Net Revenue $875 - $900 $901.0 $922.4 Operating Expenses $241 - $245 $116.6 $388.2 Net Income (Loss) $34 - $42 $197.6 $(88.2) Diluted Earnings (Loss) per Common Share $0.23 - $0.28 $1.31 $(0.59) Operating Margin
Slide 12: Entegris trademarks notice
Entegris®, the Entegris Rings Design®, and other product names are trademarks of Entegris, Inc. as listed on entegris.com/trademarks. All product names, logos, and company names are trademarks or registered trademarks of their respective owners. Use of them does not imply any affiliation, sponsorshi
Slide 13: Appendix
Appendix Entegris
Slide 14: Summary Consolidated Statement of Operations - Proforma (Includes CMC results)
Summary Consolidated Statement of Operations - Proforma (Includes CMC results) $ in millions, except per share data 1Q22 2Q22 3Q22 4Q22 FY2022 1Q23 2Q23 Net Revenue $969.1 $1,011.9 $993.8 $946.1 $3,920.9 $922.4 $901.0 Gross Margin 45.2% 42.4% 37.4% 42.8% 41.9% 43.5% 42.6% Operating Expenses $218.2 $
Slide 15: Summary – Consolidated Statement of Operations (Non-GAAP)-Proforma
Summary – Consolidated Statement of Operations (Non-GAAP)-Proforma 1 (Includes CMC results) $ in millions, except per share data 1Q22 2Q22 3Q22 4Q22 FY2022 1Q23 2Q23 Net Revenue $958.2 $1,011.7 $993.8 $946.1 $3,909.8 $922.4 $901.0 Adjusted Gross Margin – as a % of 44.5% 42.0% 43.6% 42.8% 43.2% 44.3%
Slide 16: Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended Six months ended $ in millions July 1, 2023 July 2, 2022 April 1, 2023 July 1, 2023 July 2, 2022 Net sales $901.0 $692.5 $922.4 $1,823.4 $1,342.1 Gross profit-GAAP $384.2 $310.4 $401.7 $785.9 $620.2 Adjustments to gross
Slide 17: Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP
Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP Operating Expenses and Tax Rate Three months ended $ in millions July 1, 2023 July 2, 2022 April 1, 2023 GAAP operating expenses $116.6 $152.4 $388.2 Adjustments to operating expenses: Goodwill impairment a * — — 88.9 Deal and transa
Slide 18: Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA $ in millions Three Months Ended Six months ended July 1, 2023 July 2, 2022 April 1, 2023 July 1, 2023 July 2, 2022 Net sales $901.0 $692.5 $922.4 $1,823.4 $1,342.1 Net income (loss) 197.6 99.5 (88.2) 109.5 225.2 Net
Slide 19: Reconciliation of GAAP Net Income and Diluted EPS to Non-GAAP
Reconciliation of GAAP Net Income and Diluted Earnings per Common Share to Non-GAAP Net Income and Diluted Non-GAAP Earnings per Common Share $ in millions, except per share data Three months ended Six months ended July 1, 2023 July 2, 2022 April 1, 2023 July 1, 2023 July 2, 2022 GAAP net income (lo
Slide 20: Reconciliation of GAAP Outlook to Non-GAAP Outlook
Reconciliation of GAAP Outlook to Non-GAAP Outlook $ in millions Third-Quarter Outlook Reconciliation GAAP operating expenses to non-GAAP operating expenses GAAP operating expenses $241 - $245 Adjustments to net income: Deal, transaction and integration costs 12 Amortization of intangible assets 51
Slide 21: Reconciliation of GAAP Outlook to Non-GAAP Outlook (continued)
Reconciliation of GAAP Outlook to Non-GAAP Outlook (continued) $ in millions Third-Quarter Outlook Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted EBITDA Margin Net sales $875 - $900 GAAP - Operating income $118 - $133 Operating margin - as a % of net sales 13% - 15% D
Slide 22: Proforma Segment Trend Data Unaudited
Proforma Segment Trend Data Unaudited¹ ² $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Sales SCEM $ 221.4 $ 225.4 $ 224.2 $ 204.2 $ 875.2 $ 198.0 $ 200.1 $ 398.1 APS 299.1 305.3 293.9 253.8 1,152.1 250.3 240.6 490.9 MC 266.6 274.1 280.6 284.7 1,106.0 269.3 283.6 552.9 AMH 198.1 224.1
Slide 23: Proforma Segment Trend Data Unaudited (continued)
Proforma Segment Trend Data Unaudited¹ ² (continued) $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Total Segment Profit $ 279.4 $ 263.0 $ 262.4 $ 226.9 $ 1,031.7 $ 114.7 $ 352.2 $ 466.9 Amortization of intangible assets 28.5 28.3 65.3 53.5 175.6 57.6 54.7 112.3 Additional Amortization
Slide 24: Proforma Non-GAAP Segment Trend Data Unaudited
Proforma Non-GAAP Segment Trend Data Unaudited¹ ² $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Sales - Proforma SCEM $ 221.4 $ 225.4 $ 224.2 $ 204.2 $ 875.2 $ 198.0 $ 200.1 $ 398.1 APS 299.1 305.3 293.9 253.8 1,152.1 250.3 240.6 490.9 MC 266.6 274.1 280.6 284.7 1,106.0 269.3 283.6 55
Slide 25: Proforma Non-GAAP Segment Trend Data Unaudited (continued)
Proforma Non-GAAP Segment Trend Data Unaudited¹ ² (continued) $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Segment Profit - GAAP SCEM $ 52.2 $ 38.1 $ 39.3 $ 14.8 $ 144.4 $ 3.3 $ 173.3 $ 176.6 APS 81.9 77.9 75.7 56.7 292.2 (32.8) 42.4 9.6 MC 98.6 100.1 105.3 107.4 411.4 96.0 100.7 196
Slide 26: Proforma Non-GAAP Segment Trend Data Unaudited (continued)
Proforma Non-GAAP Segment Trend Data Unaudited¹ ² (continued) $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Adjusted Segment Profit AMH segment Profit $ 46.7 $ 46.9 $ 42.1 $ 48.0 $ 183.7 $ 48.2 $ 35.8 $ 84.0 Severance - Restructuring g * — — — — — 1.2 — 1.2 AMH adjusted segment profit
Slide 27: Reconciliation of Proforma Net Sales and Gross Profit to Non-GAAP
Reconciliation of Proforma Net Sales to Proforma Non-GAAP Net Sales $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Proforma net sales 1 $969.1 $1,011.9 $993.8 $946.1 $3,920.9 $922.4 $901.0 $1,823.4 Removal of Wood treatmentr * 10.9 0.2 — — 11.1 — — — Proforma Non-GAAP net sales $958.2
Slide 28: Reconciliation of Proforma Operating Expenses and Tax Rate to Non-GAAP
Reconciliation of Proforma Operating Expenses and Tax Rate to Proforma Non-GAAP Operating Expenses and Non-GAAP Tax Rate $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Proforma Operating Expense $218.2 $226.9 $356.8 $260.7 $1,062.6 $388.2 $116.6 $504.8 Goodwill impairment a * — — — — —
Slide 29: Reconciliation of Proforma Net Income to Adjusted Operating Income and Adjusted EBITDA
Reconciliation of Proforma Net Income to Proforma Adjusted Operating Income and Adjusted EBITDA $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Net sales $969.1 $1,011.9 $993.8 $946.1 $3,920.9 $922.4 $901.0 $1,823.4 Net income (loss) 160.3 140.1 (73.8) 57.5 284.1 (88.2) 197.7 109.5 Net
Slide 30: Reconciliation of Proforma Net Income to Adjusted Operating Income Non-GAAP and Adjusted EBITDA
Reconciliation of Proforma Net Income to Proforma Adjusted Operating Income Non-GAAP and Adjusted EBITDA Non-GAAP $ in millions Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Proforma Operating Income $219.9 $201.9 $14.9 $143.8 $580.5 $13.5 $267.6 $281.1 Proforma Operating Income - as a % of proform
Slide 31: Reconciliation of Proforma Net Income and Diluted EPS to Non-GAAP
Reconciliation of Proforma Net Income and Diluted EPS to Proforma Non-GAAP Net Income and Diluted Non-GAAP EPS $ in millions, except per share data Q122 Q222 Q322 Q422 FY 2022 Q123 Q223 YTD 2023 Proforma Net Income (Loss) $160.3 $140.1 $(73.8) $57.5 $284.1 $(88.2) $197.7 $109.5 Adjustments to Profor
Slide 32: Footnotes
Footnotes a. Non-cash impairment charges associated with goodwill. b. Non-recurring deal and transaction costs associated with the CMC acquisition and completed and announced divestitures. c. Represents professional and vendor fees recorded in connection with services provided by consultants, accoun