Investor Overview November, 2008

Transcription

1 Investor Overview November, 2008

2 Safe Harbor Statement This presentation contains certain information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These forward-looking statements are based on current management expectations only as of the date of this presentation, which 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 which are modified by words such 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 which are difficult to predict. These risks include, but are not limited to, fluctuations in the market price of Entegris stock, future operating results of 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 the discussion described under the headings Risks Relating to our Business and Industry, Manufacturing Risks, International Risks, and Risks Related to Securities Markets and Ownership of Our Securities in Item 1A of our Annual Report on Form 10 K for the fiscal year ended December 31, 2007, 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. Page 2

3 Entegris At A Glance Sales of $626.2 million in ,800 employees worldwide Manufacturing facilities in U.S., Japan and Malaysia Sales and service centers in 11 countries Publicly traded on NASDAQ under ENTG 1966 Founded as Fluoroware, Inc IPO Entegris Milestones 2005 Merged with Mykrolis, previously part of Millipore 2007 Acquired the Surmet Semiconductor Coatings Division 2008 Acquired Poco Graphite Page 3

4 The Entegris Mission Our mission is to improve our customers' productivity, performance, and technology through innovative materials-science enabled solutions Page 4

5 Core Products and Technologies Contamination Control Microenvironments Specialty Materials Liquid Filtration Gas Filtration Sensing and Control Dispense/Pumps Systems Fluid handling Containers 300mm+ Wafer Processing 200mm Wafer/Reticle Processing Wafer Shipping Data storage Poco Graphite Entegris Specialty Coatings Entegris has more than 40 years of experience in applying polymer science Page 5

6 Serving Key High-Performance Markets IDMs/Foundries OEMs Wafer growers Materials Cos. Integrators Sales by Customer Market Other Flat Panel Data storage EDM Specialty Industrial Medical Aerospace Semiconductor Note: Pro forma reflecting acquisition of Poco Graphite Alt. Energy Cons. electronics Nearly 65% of Entegris Sales Are Recurring or Consumable Driven by Usage and Production Levels Page 6

7 Global Presence Strong local organizations leverage key growth geographies Page 7

8 Global Presence Drives Customer Intimacy Sales by Region FY07 Europe 15% North America 27% Japan 23% Asia 35% Manufacturing Centers: U.S. Japan Malaysia Sales and Service: U.S. Japan Taiwan Singapore China South Korea Malaysia France Germany Israel India Page 8

9 Entegris Core Strategies Drive growth through innovation Develop & leverage proprietary technology Rapid product development Drive demand through customer intimacy Effective market intelligence / customer roadmaps Integrated supply chain with customer, supplier Drive growth through diversification Increase materials science footprint Leverage existing technologies into new markets Acquire leading companies in attractive adjacent markets Drive productivity through operational excellence Cost, speed, flexibility optimized supply chain Entegris quality system Page 9

10 Entegris Strategic Vision Today Principally serves semiconductor market Primary materials science expertise in polymers Products: Microenvironments Filters, purifiers, systems Fluid handling components Coatings Future Markets include semi, healthcare, aerospace. Materials science expertise in polymers, graphite Products: Microenvironments Filters, purifiers, systems Fluid handling components Coatings Additional products Page 10

11 Page 11 Overview of Products

12 Core Products and Technologies Contamination Control Microenvironments Specialty Materials Liquid Filtration Gas Filtration Sensing and Control Dispense/Pumps Systems Fluid handling Containers 300mm+ Wafer Processing 200mm Wafer/Reticle Processing Wafer Shipping Data storage Poco Graphite Entegris Specialty Coatings Entegris has more than 40 years of experience in applying polymer science Page 12

13 Contamination Control Solutions Liquid Filtration Dispense/ Pumps Gas Filtration Systems Fluid Handling Sensing & Control Containers Page 13

14 Microenvironments (ME) Division 300mm+ Wafer Processing 200mmWafer & Reticle Handling Wafer Shipping Data Storage Key customers: Intel, Chartered, TSMC, Samsung Key customers: Intel, Chartered, TSMC, Samsung Key customers: Sumco, SEH, MEMC, Intel, SMIC, Inotera Key customers: Seagate, Western Digital, SDK Page 14

15 Specialty Materials Specialized Graphite POCO EDM chamber comp. substrates Graphite/ Silicon Carbide Coatings Electrostatic Chucks Silicon Carbide Supersic Hard Carbon Coatings UltraC-Diamond UltraC-EC UltraC-HT Solutions for wear, corrosion and lubricity problems and metal and particle contamination reduction Page 15

16 Entegris General Technology Roadmap ITRS DRAM ½ Pitch (nm) Logic (Flash) ½ pitch (nm) 78 (64) 59 (51) Critical Defect (nm) DRAM Wafer Handling PWP 17 9 Molecular Contaminants Airborne Wafer Level Critical Metal Ions (PPT) < 1.0 < 0.5 Electronics that are smaller, faster, cheaper and more functional Industry Entegris Technologies Liquid and Gas Filtration and Purification (40) 23 5 Molecules < nm Immersion Lithography High NA Liquid Immersion Litho EUV? 300 mm Wafer Processing 300 mm Prime 450 mm? (32) 18 3 Molecules < 0.5 Continuous Improvement in Filtration Products, Smaller Pore Size, Higher Flow, Higher Retention Continuous Improvement in Purification Products, Volatile Organics, AMC, Moisture, Degasification Wafer Handling 300 mm Prime Product Platforms 450 mm Prototypes Mask Handling Carriers to prevent reticle haze EUV mask carriers Liquid Systems Liquid Lens Subsystems High Liquid NA Liquid Lens Leveraging our core competencies of materials science, surface science and membrane science Page 16

17 Page 17 Key Financial Information

18 Third Quarter Reported Results Reflect Non-Cash Charges Goodwill impairment of $395.3 million Triggered by decline in our stock price No reflection on our operating performance Purchase accounting adjustments of $5.7 million Relates to how we accounted for the Poco inventory we acquired and then sold These adjustments will continue in Q4 and Q1 but do not affect our operations on a cash basis A $30.7 million write-off of deferred tax assets Because in the near-term we won t use these assets, we need to adjust them on the books We still will be able to use these assets if conditions improve in the future Page 18

19 Q3-08 Operating Results Excluding Charges GAAP Adjustment Non-GAAP Sales $145.8 $--- $145.8 Cost of Goods 90.4 (5.7) 84.7 Gross profit Operating Expenses Impairment of Goodwill (395.3) --- Restructuring charges Operating (loss) income (393.7) Interest/other (Loss) income before taxes (395.3) Income tax (benefit) expense 15.8 (16.5) (0.7) Equity in net loss of affiliates Net (loss) income (cont. ops) $(411.3) $417.5 $ 6.2 EPS (cont. ops) Diluted ($3.68) $3.73 $0.06 Page 19

20 Q3-08 Sales Included $10 million of Poco Sales $200 $180 $160 $140 Millions $120 $100 $80 $60 $40 $20 $0 1Q-06 2Q-06 3Q-06 4Q-06 1Q-07 2Q-07 3Q-07 4Q-07 Q1-08 Q2-08 Q3-08 1Q-06 2Q-06 3Q-06 4Q-06 1Q-07 2Q-07 3Q-07 4Q-07 Q1-08 Q2-08 Q3-08 Page 20

21 Financial Results Non GAAP Continuing Operations GAAP results in US$ millions, except per share amounts FY-07 Q1-07 Q2-07 a Q3-07 Q4-07 b Q1-08 c FY-08 Q2-08 Q3-08 d Revenue $159.6M $153.5M $151.8M $161.3M $148.2M $147.9M $145.8M GM 42.9% 42.7% 43.2% 41.4% 43.2% 40.5% 41.9% SGA R&D Amortization Op. margin 7.5% 7.5% 8.0% 5.0% 3.4% 5.3% 5.0% EPS $0.08 $0.11 $0.07 $0.09 $0.02 $0.04 $(4.36) Cash EPS e $0.11 $0.15 $0.11 $0.14 $0.07 $0.08 $0.05 a) Q2-07 results include a one-time gain from the sale of an equity investment. b) Q4-07 reflects tax benefit from intercompany dividend from Japanese subsidiary c) Q1-08 results restated; includes $3.8 million charge related to severance expense from headcount reduction d) Q3-08 results exclude goodwill impairment, impact of purchase accounting, and allowance on deferred tax assets e) Cash EPS equals EPS excluding one-time charges plus amortization Page 21

22 Sound Balance Sheet In millions Sept. 27, 2008 Dec. 31, 2007 Cash $74 $161 Working Capital, net of Cash $154 $96 Total Assets $722 $1,035 Debt $119 $47 Shareholders Equity $436 $852 Shares Outstanding million common shares repurchased since September 2006 $230 million revolving credit facility put in place in February 2008 Note: excludes impact of acquisition of Poco Graphite on August 11, 2008 Page 22

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