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| 8-K - FORM 8-K - ENTEGRIS INC | d76618d8k.htm |
  The St. Regis San Francisco
Entegris 2015 Analyst Meeting
Entegris 2015 Analyst Meeting
July 14, 2015 July 14, 2015 Exhibit 99.1 |
 Entegris 2015 Analyst Meeting | 2
Agenda Agenda 1:30 PM Welcome, Agenda, Safe Harbor Steven Cantor VP, Corporate Relations 1:35 PM A Premier Materials and Solutions Provider Bertrand Loy President and CEO 1:50 PM A Platform for Growth and Stability Todd Edlund SVP and COO Differentiation in a Disruptive Environment James O’Neill CTO 2:15 PM Financial Perspective Greg Graves Executive VP and CFO Q&A 3:30 PM Meeting Close |
 Entegris 2015 Analyst Meeting | 3
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 are based on current
management expectations only as of the date of this presentation,
and involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements.
Statements that include such words as “anticipate,”
“believe,” “estimate,” “expect,” “forecast,” “may,” “will,” “should” or the negative thereof and similar expressions as they relate to Entegris
or our management are intended to identify such
forward-looking statements. These statements are not
guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks include, but are not limited to, fluctuations in the market price
of Entegris’ stock, Entegris’ future operating results, risks
relating to the integration of ATMI, Inc. into Entegris, other
acquisition and investment opportunities available to Entegris, general business and market conditions and other factors. Additional information concerning these and
other risk factors may be found in previous financial press releases issued by
Entegris and Entegris’ periodic public filings with the
Securities and Exchange Commission, including discussions
appearing under the headings “Risks Relating to our Business and Industry,” “Manufacturing Risks,” “International Risks,” and “Risks Related to Owning Our Securities” in
Item 1A of our Annual Report on Form 10-K for the fiscal year ended
December 31, 2014, as well as other matters and important factors
disclosed previously and from time to time in the filings of
Entegris with the U.S. Securities and Exchange Commission. Except as required
under the federal securities laws and the rules and regulations
of the Securities and Exchange Commission, we undertake no
obligation to update publicly any forward-looking statements contained herein. |
 Bertrand Loy President and CEO Bertrand Loy President and CEO A Premier Materials and Solutions Provider A Premier Materials and Solutions Provider |
 Entegris 2015 Analyst Meeting | 5
The ATMI acquisition has been a success and is creating
significant value for all stakeholders
IoT and new technology trends will continue to drive growth
in our end markets
Positioned to outperform market by leveraging our unique
combination of technology breadth, global capabilities and
customer relationships
Recurring, unit-driven sales across the ecosystem provides
stable business model
Proven execution, strong operating leverage and disciplined
capital allocation will drive significant EPS expansion
Key Takeaways Key Takeaways |
 Entegris 2015 Analyst Meeting | 6
*Trailing twelve months, as reported, Non-GAAP, ending 3/28/15
Entegris Today Entegris Today Revenues $1.1 Billion * EBITDA Margin 22% * EPS $0.78 * Unit-Driven Sales 77% |
 Entegris 2015 Analyst Meeting | 7
Enhanced scale and growth potential
Significant cost synergies
Efficient balance sheet
EPS expansion Transaction closed April 2014, one year later… ATMI – A Transformational Deal ATMI – A Transformational Deal We’re not just a bigger platform, we’re a better company Complementary platforms fully integrated $30 million annual synergies in place Lower cost of capital as a result of favorable debt structure Unlocking EPS growth in 2014-15 |
 Entegris 2015 Analyst Meeting | 8
Over time, unit growth (MSI) far exceeds industry capital spending
(WFE) MSI = millions of square inches of silicon; WFE = wafer fab
equipment Source: Gartner, April 2015
Positive Unit Growth in the Industry
Positive Unit Growth in the Industry
2001-2018 CAGR:
MSI 6.5% WFE 2.8%
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Normalized Growth: MSI and WFE 2001-2018 MSI WFE |
 Entegris 2015 Analyst Meeting | 9
Entegris will Benefit from the Internet of Things
Entegris will Benefit from the Internet of Things
Hyperconnectivity and big data are driving IC growth
Servers/Storage
More powerful and
ubiquitous server farms
PC | mobile | wearable
Infrastructure | health | auto
home | everywhere
Sensors Devices |
 Entegris 2015 Analyst Meeting | 10
MSI = millions of square inches of silicon; nm = nanometer
Source: Gartner, April 2015
A Unit-Driven Model + Sticky Solutions = Greater Stability
A Unit-Driven Model + Sticky Solutions = Greater Stability
Semiconductor Industry Year-End Capacity by Linewidth
(MSI/Year) Growth at the leading edge Stable recurring revenue at legacy nodes 0 500 1,000 1,500 2,000 2,500 3,000 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Year 0.5 micron - 130 nm 90 nm - 45 nm 32 nm - 22 nm 14 nm - 10 nm |
 Entegris 2015 Analyst Meeting | 11
Supplying solutions across the ecosystem
*Trailing twelve months, as reported, Non-GAAP, ending 3/28/15
Uniquely Diverse Customer Mix
Uniquely Diverse Customer Mix
Equipment Makers Device Makers Materials Suppliers 2 3 4 5 6-10 All others 57.0% 10% 5% 5% 6% 14% Customer Rank Top 10 Customers Comprise Approx. 43% of Sales* 1 3% |
 Entegris 2015 Analyst Meeting | 12
Customer Value Proposition:
Higher yields, improved performance, reduced costs
Leveraging technology, people and processes to address customer
needs The Three Pillars of Our Organic Growth Strategy
The Three Pillars of Our Organic Growth Strategy
Global Infrastructure
Operational Excellence
Technology Portfolio |
 Entegris 2015 Analyst Meeting | 13
Leveraging the Platform to Adjacent Markets
Leveraging the Platform to Adjacent Markets
*Trailing twelve months, as reported, ending 3/28/15
LED Data Storage Entegris Entegris Flat Panel Resource Efficiency Other Industrial Non-Semi 21% Solar Semiconductor 79% Life Sciences Revenue by Market* |
 Entegris 2015 Analyst Meeting | 14
Going Forward –
Creating Value for Stakeholders
Going Forward –
Creating Value for Stakeholders
Growth in excess of market
(100-200 bps)
Achieve target model
Pay down debt
EPS growth Growth in excess of market (100-200 bps) Achieve target model Pay down debt EPS growth Financial objectives Investment priorities R&D Internal capabilities New market development Superior profitability Financial discipline Target model |
  Todd Edlund SVP and COO Todd Edlund SVP and COO A Platform for Growth and Stability A Platform for Growth and Stability |
 Entegris 2015 Analyst Meeting | 16
Customer Value Proposition:
Higher yields, improved performance, reduced costs
Leveraging technology, people and processes to address customer
needs The Three Pillars of Our Organic Growth Strategy
The Three Pillars of Our Organic Growth Strategy
Global Infrastructure
Operational Excellence
Technology Portfolio |
 Entegris 2015 Analyst Meeting | 17
Breadth of Entegris Portfolio
Breadth of Entegris Portfolio
Market leadership positions across the entire IC wafer fabrication
process A leader in yield-enabling materials and solutions for
advanced manufacturing Lithography
Advanced Photoresist Packaging Advanced Photoresist Packaging Filtration and Dispense Filtration and Dispense Gas/Liquid Purification Gas/Liquid Purification Etch Gas Filters and Diffusers Gas Filters and Diffusers Gas Purification Gas Purification Specialty Materials Specialty Materials Deposition Copper Plating Copper Plating CVD and ALD Deposition Materials CVD and ALD Deposition Materials Gas Filtration and Purification Gas Filtration and Purification Clean Formulated Cleans Formulated Cleans Filtration Filtration Fluid Handling Fluid Handling Containers Containers CMP Formulated Cleans Formulated Cleans Filtration Filtration CMP Cleaning Brushes CMP Cleaning Brushes Implant Safe Gas Delivery Systems Safe Gas Delivery Systems Electrostatic Chucks Electrostatic Chucks Fab Facility Advanced FOUPs Advanced FOUPs AMC Filtration AMC Filtration Bulk Chemical Delivery Bulk Chemical Delivery Wafer Shippers Wafer Shippers Gas Purification Gas Purification Reticle Pods Reticle Pods Specialty Materials Specialty Materials Specialty Materials Specialty Materials Formulated Cleans Formulated Cleans Pad Conditioners Pad Conditioners TECHNOLOGY BREADTH/DEPTH |
 Entegris 2015 Analyst Meeting | 18
Direct engagement by
engineering teams
Pilot capability at most sites
Direct engagement by
engineering teams
Pilot capability at most sites
Growing our share
*NDAs and JDAs –
Entegris only prior to 2014
Deepening Our Collaboration with Strategic Customers
Deepening Our Collaboration with Strategic Customers
Relevant, Trusted Technology Partner Relevant, Trusted Technology Partner Application and Process Knowledge Application and Process Knowledge We Develop Relevant Final Solution We Develop Relevant Final Solution We Listen We Listen We Respond Quickly with Prototypes We Respond Quickly with Prototypes Expanded applications excellence Faster new product development 12 25 47 67 2011 2012 2013 2014 Joint Development Agreements* with Top IDMs and OEMs TECHNOLOGY BREADTH/DEPTH |
 Entegris 2015 Analyst Meeting | 19
6.4% 7.1% 8.0% 9.1% 9.8% 2011 2012 2013 2014 2015 YTD Entegris R&D/Sales* Half of increase focused on advanced research and core science Technical resources in Asia have grown by 30% Actively engaged with customers defining 10 nm processes – focus of our 2015 new product launches Maintained commitment to target model Entegris Has a Full Product Pipeline Entegris Has a Full Product Pipeline Shifting resources towards R&D to be the preferred partner for 1x nodes
*2011-14 as reported prior to acquisition of ATMI on April 30,
2014 TECHNOLOGY BREADTH/DEPTH |
 Entegris 2015 Analyst Meeting | 20
Gases and Gas-
Wetted Surfaces
Solids and Solid
Materials Delivery
Wet Chemistries and
Wetted Surfaces
Entegris has unique ability to “put the pieces together” in the
materials space Technology Breadth and Depth:
Unlocking the Power of the New Entegris
Technology Breadth and Depth:
Unlocking the Power of the New Entegris
Customers Care About:
Technology Performance
Process Yield
Device Cost Device Equipment Materials Co-optimized wet chemical handling solutions Material sensing and control Application-based clean gas delivery solutions Improved gas purifier capacity and efficiency New precursors Enabling delivery systems Feedgas monitoring and control TECHNOLOGY BREADTH/DEPTH |
 Entegris 2015 Analyst Meeting | 21
Taking advantage of our unique breadth of knowledge and product portfolio
to move faster for our customers
New Initiatives Beginning on Many Levels
New Initiatives Beginning on Many Levels
Value-added
cross-selling of
existing products
Value-added cross-selling of
optimized products
New product development projects to
produce a synergistic solution
Fully integrated combinations of technologies
2017 2018 2015 New Platform (Co-Marketing) Co-Optimization Co-Development Integrated Solutions 2016 TECHNOLOGY BREADTH/DEPTH |
 Entegris 2015 Analyst Meeting | 22
Invested in infrastructure to serve global customer base
Global Infrastructure with Local R&D, Manufacturing and Support
Global Infrastructure with Local R&D, Manufacturing and Support
Deep technical expertise and application
knowledge Unique capabilities to enhance speed, effectiveness and efficiency of material development process Differentiating Product Development Dedicated customer support organization focused on specific customer needs Collaborative customer engagements leverage global state-of-the-art infrastructure and tech centers Strong Customer Relationships Korea Tech Center Taiwan Tech Center Analytical Services Lab i2M Center Danbury Tech Center San Diego Tech Center Tokyo Applications Lab GLOBAL INFRASTRUCTURE |
 Entegris 2015 Analyst Meeting | 23
14 nm 100 nm 7 nm 32 nm Evolving Requirements for Operational Excellence Evolving Requirements for Operational Excellence ISO 14000 On-Time Delivery Cost Competitive Roadmap Alignment ISO 9001 EICC ISO 14000 On-Time Delivery Cost Competitive Roadmap Alignment ISO 16949 ISO 9001 EICC ISO 14000 Conflict Minerals On-Time Delivery Cost Competitive Cost of Ownership Roadmap Alignment Product Cleanliness Advanced Metrology Quality Standards Pushed to Suppliers Advanced Quality Systems Statistical Process Control ISO 16949 ISO 9001 Sustainability Availability Cost Technology Quality OPERATIONAL EXCELLENCE Requirements continue to grow |
 Entegris 2015 Analyst Meeting | 24
One of only 19 suppliers to receive this
award for 2014
“Intel recognizes Entegris’ dedication in
providing excellent performances across
cost, quality, availability, technology and
sustainability. We are looking forward to
Entegris’ continuing success and
partnership in 2015”
– Tim Hendry, Intel VP and Director of Fab Materials Operations Entegris Received Intel’s 2014 Preferred Quality Supplier Award Entegris Received Intel’s 2014 Preferred Quality Supplier Award OPERATIONAL EXCELLENCE |
 James A. O’Neill, Ph.D.
Chief Technology Officer
James A. O’Neill, Ph.D.
Chief Technology Officer
Differentiation in a Disruptive Environment
Differentiation in a Disruptive Environment
|
 Entegris 2015 Analyst Meeting | 26
Keeping on Moore’s Law has
required innovations in:
Lithography (Multi-patterning
and EUV) 3D Device Structures (3D NAND, FinFET) New materials (high k, cobalt, Ge, III-V, etc.) Technology Inflection Points Keep Moore’s Law Moving Ahead Technology Inflection Points Keep Moore’s Law Moving Ahead Increased complexity, shortening lead times, yield sensitivity |
 Entegris 2015 Analyst Meeting | 27
Why Materials Matter:
Advanced Electronics Require Advanced Materials
Why Materials Matter:
Advanced Electronics Require Advanced Materials
Increasing impact of materials innovation on chip performance
Source: Left –
Semico Research; right –
Entegris, Linx Consulting
Node in nm Positioned to benefit from increased reliance on formulated materials and growing complexity Chips Becoming More Reliant on Materials... Relevant Impact on Performance ...And More Complex Process Steps to Manufacture Chip 65 45/40 32/28 22/20 14 Scaling Design Materials Node in nm 0 400 800 1,200 1,600 2,000 2,400 2,800 65 45/40 32/28 22/20 14 10 |
 Entegris 2015 Analyst Meeting | 28
Insuring Contamination-Free Materials
From Production to Consumption
Insuring Contamination-Free Materials
From Production to Consumption
Contamination can occur at multiple points in a chemical’s journey to the
wafer Entegris has the technology to control contamination across
the fluidics stream –
from production to consumption
Materials + Contamination Control
= Yield, Cost, Performance
Manufacturing 14 days cycle time Transportation 45 days cycle time Inventory 60 days cycle time Sub-fab 7 days cycle time Tool 1 day cycle time |
 Entegris 2015 Analyst Meeting | 29
Litho 1 Right image: Intel High-k Penryn microchip 2009 Key Disruptive Technologies Below 14 nm Key Disruptive Technologies Below 14 nm Multi Patterning and EUV New Structures FinFET Device Metal gate Ge/Si S/D PMOS New Materials High-k metal gate transistor New defect sources, greater sensitivity to defects Challenging yield ramps Difficult product introduction schedules Fin Height Fin Width Gate Length Litho 2 Post Develop. Bake Etch for Line Control |
 Entegris 2015 Analyst Meeting | 30
Process Implications of Inflection Point Innovations
Process Implications of Inflection Point Innovations
Multi-patterning
Entegris’ broad portfolio of solutions helps our
customers address the challenge of multipatterning
Lithography Advanced Photoresist Packaging Advanced Photoresist Packaging Filtration and Dispense Filtration and Dispense Gas/Liquid Purification Gas/Liquid Purification Etch Gas Filters and Diffusers Gas Filters and Diffusers Gas Purification Gas Purification Specialty Materials Specialty Materials Deposition Copper Plating Copper Plating CVD and ALD Deposition Materials CVD and ALD Deposition Materials Gas Filtration and Purification Gas Filtration and Purification Clean Formulated Cleans Formulated Cleans Filtration Filtration Fluid Handling Fluid Handling Containers Containers CMP Formulated Cleans Formulated Cleans Filtration Filtration CMP Cleaning Brushes CMP Cleaning Brushes Implant Safe Gas Delivery Systems Safe Gas Delivery Systems Electrostatic Chucks Electrostatic Chucks Fab Facility Advanced FOUPs Advanced FOUPs AMC Filtration AMC Filtration Bulk Chemical Delivery Bulk Chemical Delivery Wafer Shippers Wafer Shippers Gas Purification Gas Purification Reticle Pods Reticle Pods Specialty Materials Specialty Materials Specialty Materials Specialty Materials Formulated Cleans Formulated Cleans Pad Conditioners Pad Conditioners Advanced Photoresist Packaging Filtration and Dispense CVD and ALD Deposition Materials Formulated Cleans Filtration Fluid Handling Containers Advanced FOUPs AMC Filtration Reticle Pods Formulated Cleans Gas Filters and Diffusers Gas Purification Specialty Materials |
 Entegris 2015 Analyst Meeting | 31
Process Implications of Inflection Point Innovations
Process Implications of Inflection Point Innovations
3D NAND Lithography Advanced Photoresist Packaging Advanced Photoresist Packaging Filtration and Dispense Filtration and Dispense Gas/Liquid Purification Gas/Liquid Purification Etch Gas Filters and Diffusers Gas Filters and Diffusers Gas Purification Gas Purification Specialty Materials Specialty Materials Deposition Copper Plating Copper Plating CVD and ALD Deposition Materials CVD and ALD Deposition Materials Gas Filtration and Purification Gas Filtration and Purification Clean Formulated Cleans Formulated Cleans Filtration Filtration Fluid Handling Fluid Handling Containers Containers CMP Formulated Cleans Formulated Cleans Filtration Filtration CMP Cleaning Brushes CMP Cleaning Brushes Implant Safe Gas Delivery Systems Safe Gas Delivery Systems Electrostatic Chucks Electrostatic Chucks Fab Facility Advanced FOUPs Advanced FOUPs AMC Filtration AMC Filtration Bulk Chemical Delivery Bulk Chemical Delivery Wafer Shippers Wafer Shippers Gas Purification Gas Purification Reticle Pods Reticle Pods Specialty Materials Specialty Materials Specialty Materials Specialty Materials Formulated Cleans Formulated Cleans Pad Conditioners Pad Conditioners CVD and ALD Deposition Materials Gas Filtration and Purification Formulated Cleans Filtration Fluid Handling Containers Safe Gas Delivery Systems Electrostatic Chucks Advanced FOUPs Gas Filters and Diffusers Gas Purification Specialty Materials Formulated Cleans Entegris solutions are integral to the implementation of advanced device structures like 3D NAND |
 Entegris 2015 Analyst Meeting | 32
Process Implications of Inflection Point Innovations
Process Implications of Inflection Point Innovations
Cobalt Lithography Advanced Photoresist Packaging Advanced Photoresist Packaging Filtration and Dispense Filtration and Dispense Gas/Liquid Purification Gas/Liquid Purification Etch Gas Filters and Diffusers Gas Filters and Diffusers Gas Purification Gas Purification Specialty Materials Specialty Materials Deposition Copper Plating Copper Plating CVD and ALD Deposition Materials CVD and ALD Deposition Materials Gas Filtration and Purification Gas Filtration and Purification Clean Formulated Cleans Formulated Cleans Filtration Filtration Fluid Handling Fluid Handling Containers Containers CMP Formulated Cleans Formulated Cleans Filtration Filtration CMP Cleaning Brushes CMP Cleaning Brushes Implant Safe Gas Delivery Systems Safe Gas Delivery Systems Electrostatic Chucks Electrostatic Chucks Fab Facility Advanced FOUPs Advanced FOUPs AMC Filtration AMC Filtration Bulk Chemical Delivery Bulk Chemical Delivery Wafer Shippers Wafer Shippers Gas Purification Gas Purification Reticle Pods Reticle Pods Specialty Materials Specialty Materials Specialty Materials Specialty Materials Formulated Cleans Formulated Cleans Pad Conditioners Pad Conditioners The effect of integrating cobalt ripples through other process modules where Entegris plays Copper Plating CVD and ALD Deposition Materials Formulated Cleans Filtration Fluid Handling Containers Formulated Cleans Filtration CMP Cleaning Brushes Advanced FOUPs AMC Filtration Gas Filtration and Purification Gas Filtration and Purification |
 Entegris 2015 Analyst Meeting | 33
Introduction of Cobalt Drives a New Product Cycle
Introduction of Cobalt Drives a New Product Cycle
Copper interconnect resistivity and reliability degrades as linewidth
decreases –
new metallurgy needed
Copper Interconnect
Copper Interconnect TaN/Ta Barrier Cobalt barrier, via, cap Cobalt contact Entegris Solutions Snorkel FOUPs ALD/CVD precursors Precursor delivery systems Post CMP clean formulations Cu and Co plating formulations Post Etch clean formulations Advanced filtration Wire Via IC Cross Section |
 Entegris 2015 Analyst Meeting | 34
What matters to the customer
Wet Process Sector Example
Wet Process Sector Example
Yield Metal contamination Organic contamination Particle contamination Wet Etch and Clean Performance Advanced process materials Device composition, geometry, properties Material compatibility Throughput Cost Lifetime Maintenance |
 Entegris 2015 Analyst Meeting | 35
Peroxide Monitor - - Bath Life 2016 Formulated Chemistry Cooptimized Filtration Peroxide Monitor Integrated capabilities roadmap: copper post-etch residue removal Entegris Wet Etch and Clean Roadmap Example Entegris Wet Etch and Clean Roadmap Example Customer Benefit Performance Yield Cost InVue™ CR-288 concentration monitor QuickChange® NX filters TitanKlean® 9c Future Regeneration Filtration Performance Driver Year Clean Chemistry Particle Filter TiN Removal 2014 Formulated Chemistry Independent Filtration Particle Reduction 2015 Formulated Chemistry Matched Filtration Regeneration Filter - - Impurity Removal |
 Entegris 2015 Analyst Meeting | 36
What these Inflection Point Technologies Mean for Entegris
What these Inflection Point Technologies Mean for Entegris
Technology Commentary Multi- patterning More process steps drives increased use of cleans and filtration Low temperature CVD precursors required for patterning films Increased need for general contamination control 3D NAND Challenging etch and deposition processes Fluorine-free tungsten is a key enabler FinFET Moderating need for implant gas delivery solutions offset by increased need for CVD/ALD precursors Specialty coatings required for high-temperature implant steps Cobalt Use of cobalt drives new product cycle Additional device metal layers drives incremental use of materials Key inflection point technologies represent an incremental revenue opportunity well in excess of $100M by 2018 |
 Greg Graves Executive Vice President and CFO Greg Graves Executive Vice President and CFO Financial Perspective Financial Perspective |
 Entegris 2015 Analyst Meeting | 38
Going Forward –
Creating Value for Stakeholders
Going Forward –
Creating Value for Stakeholders
Growth in excess of market
(100-200 bps)
Achieve target model
Pay down debt
EPS growth Growth in excess of market (100-200 bps) Achieve target model Pay down debt EPS growth Financial objectives Investment priorities R&D Internal capabilities New market development Superior profitability Financial discipline Target model |
 Entegris 2015 Analyst Meeting | 39
Our Scorecard Our Scorecard Financial Objectives FY14 Q115 Growth in excess of market Achieve target model Pay down debt EPS growth |
 Entegris 2015 Analyst Meeting | 40
Proven execution and leverage in the operating model
1 Represents range of adjusted operating margin based on respective quarterly revenue levels.
2 Adjusted for amortization of intangible assets and one-time charges and expenses, adjusted for unrealized synergies.
3 Assumes shares outstanding equal 140 million. Target Model and Historical Performance Target Model and Historical Performance 2010 2011 2012 2013 2014 2015 $0 $50 $100 $150 $200 $250 $300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue Operating Margin Target Model 0% 5% 10% 15% 20% 25% 30% Quarterly Revenue Level Revenue ($M) $250 $280 $310 Adjusted Operating Margin 2 14% - 16% 17% - 19% 20%+ Earnings Per Share 3 $0.14 - $0.16 $0.20 - $0.22 $0.26+ 1 |
 Entegris 2015 Analyst Meeting | 41
$ and share data in millions
Balance Sheet Balance Sheet $2.43 in cash per share Net leverage of 1.7x EBITDA $76 million in debt repayment since close of acquisition Commitment to repay an additional $75 million by end of Q3 March 28, 2015 December 31, 2014 Assets Cash and cash equivalents $341 $390 Accounts receivable $185 $154 Inventories $166 $163 Total Assets $1,733 $1,762 Liabilities and Equity Term loan B $382 $407 Notes $360 $360 Shareholders' equity $755 $748 Common shares outstanding 140 140 |
 Entegris 2015 Analyst Meeting | 42
ATMI acquisition has driven significant EPS growth
1 2012-2014 Revenue and Non-GAAP EPS as reported. 2015 and 2016 Revenue and Non-GAAP EPS based on analysts
estimates as of June 15, 2015. Non-GAAP EPS excludes
acquisition-related costs and integration expense. Entegris
Financial Results Entegris Financial Results
$0.00 $0.25 $0.50 $0.75 $1.00 $1.25 2012 2013 2014 2015 2016 Non-GAAP Revenue and EPS 1 EPS Revenue $0 $200 $400 $600 $800 $1,000 $1,200 |
 Entegris 2015 Analyst Meeting | 43
2014 Non-GAAP As Reported 2014 Pro Forma Combined Two-Year Industry Growth 3 2.4% Growth > Industry 1.25% Operating Leverage Interest Expense Reduction 4 Revenue $962 $1,076 $1,128 $1,156 $1,156 $1,156 Operating Income 1 $161 $222 $222 % of revenue 17% 19% 19% Interest expense $28 ($38) ($28) EPS 2 $0.69 $0.95 $1.00 Illustrative model – modest growth, operating leverage and debt reduction lead to $1 per share plus by 2016 1 Operating margin per revised target model including $30 million of synergies.
2 EPS assumes no other income/expense, 28% combined tax rate and 140 million shares outstanding.
3 Reflects two-year industry growth assumption based on Gartner two-year 2014-2016 CAGR estimates:
MSI +2.7% and WFE +1.0% and an 80%/20% MSI/WFE weighting.
4 Assumes term loan is reduced by $300 million. Each $100 million reduction in term loan is $0.016 per share annually.
EPS Growth Formula
EPS Growth Formula |
 Entegris 2015 Analyst Meeting | 44
By 2016, three-year cumulative cash from operations is estimated to reach
more than $465 million
Projected Cash From Operations and Free Cash Flow
Projected Cash From Operations and Free Cash Flow
2014 2015P 2016P Capex FCF Total Cash Flow From Operations ($ in millions) $126 $160 $180 Note: 2014 is as reported. 2015 and 2016 reflect company estimates. |
 Entegris 2015 Analyst Meeting | 45
Our strategy to date has been focused on debt repayment
Capital Allocation
Capital Allocation
Flexibility Buyback Shares Repurchase 6% Notes Repay 3.5% Term Loan Retain Cash; Build Liquidity Balancing Priorities M&A EPS Growth |
 Entegris 2015 Analyst Meeting | 46
The ATMI acquisition has been a success and is creating
significant value for all stakeholders
IoT and new technology trends will continue to drive growth
in our end markets
Positioned to outperform market by leveraging a unique
combination of technology breadth, global capabilities and
customer relationships
Recurring, unit-driven sales across the ecosystem provides
stable business model
Proven execution, strong operating leverage and disciplined
capital allocation will drive significant EPS expansion
Key Takeaways Key Takeaways |
 Entegris®,
the Entegris Rings Design® and Creating a Material Advantage® are trademarks of Entegris, Inc. ©2015 Entegris, Inc. All rights reserved. |