société de chimie presentation...adjusted pro forma ebitda $866m $198m $1,064m $311m 5%-7% cagr*...

Société de ChimiePRESENTATIONNovember 2019

©2019 Cabot Microelectronics Corporation

The information contained in and discussed during this presentation may include “forward-looking

statements” within the meaning of federal securities regulations. These forward-looking statements

involve a number of risks, uncertainties, and other factors, including those described in Cabot

Microelectronics’ filings with the Securities and Exchange Commission (SEC), that could cause actual

results to differ materially from those described by these forward-looking statements. Cabot

Microelectronics Corporation assumes no obligation to update this forward-looking information.

SAFE HARBOR STATEMENT

Semiconductors enabling technology everywhere

If the automotive industry had achieved similar improvements in performance and cost over the last 30 years, it would result in…

• A Rolls-Royce that cost only $40

• Could circle the globe eight times on one gallon of gas

• Have a top speed of 2.4 million miles per hour! Source: McKinsey


❯ Consumables based

business focused on

electronic materials

with industry

leading positions

❯ Quality and

innovation leader

serving virtually all

semiconductor

manufacturers in

the world

❯ Strong

participation in

high-growth

markets

❯ Demonstrated

track record

of growth above

industry and

expanding

profitability

❯ Superior financial

performance, strong

free cash flow

generation and focus

on creating

shareholder value

CABOT MICROELECTRONICSBUILDING STRATEGIC VALUE

$1.1B LTM PRO FORMA REVENUE

31% LTM ADJUSTED EBITDA MARGIN

©2019 Cabot Microelectronics Corporation4


80%ELECTRONIC

MATERIALSCMP Slurries

CMP Pads

Electronic Chemicals

20%PERFORMANCE

MATERIALS

Provides essential products

that constitute a small portion

of our customers’

end product cost

PORTFOLIOOVERVIEW


35% 29%

7%

200%

2016 2017 2018 2016-Present

TOTAL SHAREHOLDER RETURN

CCMP TOTAL RETURN VS. S&P 500

SINCE 2016, CMC HAS

DELIVERED SIGNIFICANT

TOTAL SHAREHOLDER RETURN

AND HAS CONSISTENTLY

OUTPERFORMED THE S&P

*

*As of November 15, 2019

6

>


The Microelectronics

Materials Division of

Cabot Corporation is

established

1995

MARCH

Opens R&D Center

in Aurora, IL

2002

2005OCTOBER

Opens Asia Pacific

Technology Center

in Geino, Japan

JUNE

Acquires QED

Technologies

2006

2008OCTOBER

Opens global pads

manufacturing center

in Aurora, IL

FEBRUARY

Acquires Epoch

Material, Taiwan

2009

2011AUGUST

Opens R&D and

manufacturing facility in

South Korea

DECEMBER

Announces leveraged

recapitalization with a

significant special cash

dividend

2015OCTOBER

Acquires NexPlanar

Corporation

JANUARY

Announces initiation

of quarterly cash

dividend program

2016

2017JANUARY

Increases quarterly

cash dividend by 11%

MARCH

Announces new Capital

Deployment Program and

doubles quarterly cash

dividend

NOVEMBER

Acquires

KMG Chemicals, Inc.

2018

Receives five consecutive

Supplier Continuous Quality

Improvement awards from

Intel, the most prestigious

award for Intel suppliers

2013 - 2017

2000APRIL

Initial Public Offering

~1,900 Employees

19 Global Locations

7

COMPANY HISTORY


GLOBAL FOOTPRINTAND PRODUCT DIVERSITY


PC & INTERNET

2016 2020

MOBILE

DATA CENTRIC AND

ARTIFICIAL INTELLIGENCE

Big Data

Virtual / Augmented Reality

Internet of Things

Artificial Intelligence

Autonomous Vehicles

❯ The emerging applications of the Data Centric

Environment require a wide range, and large

quantity of chips to deliver the myriad functions

and applications being designed

GROWTH DRIVERS OF IC DEMANDEND USE DRIVERS FOR THE IC INDUSTRY

2000

ONE PC PER

HOUSEHOLD

ONE MOBILE DEVICE

PER PERSON

100’s OF CHIPS PER HOUSEHOLD?

1000’s OF CHIPS PER FACTORY?

HOW MANY CHIPS PER CITY?

2010


ELECTRONIC MATERIALS COMPETITIVE ADVANTAGE

❯ Areas of highest growth and largest customer needs where we can

differentiate through innovation, quality and operational excellence

❯ Our experience, breadth of products, and global resources provide

smaller customers with worry free solutions

❯ CMC’s product portfolio provides the greatest breadth and depth

of Electronic Materials

❯ Our scale allows us to utilize a wide range of R&D talents to

address customer challenges

CMC’s unrivaled breadth of solutions

allows us to participate in essentially all

CMP applications


SEMICONDUCTOR FABRICATIONPROCESS OVERVIEW

AFTER CMP

BEFORE CMP

PadsSlurries

❯ Base

chemistry

materials

Our solutions help enable

the manufacture of

semiconductor devices

❯ Acids

❯ Solvents

❯ Bases

Implant

DepositionEtch / Clean / Dry

Photolithography

Chemical

Mechanical

Planarization

❯ Custom blends

❯ Performance products

❯ Oxidizers

❯ Adhesion promoters

❯ Developers

❯ Edge bead removers

❯ Photoresist solvents

❯ Photoresist strippers


LEADING POSITION A leading supplier of drag reducing agents (DRAs), valve

lubricants, cleaners and sealants

VALUE-ADDED PRODUCTS AND SERVICESSpecialty products that optimize pipeline efficiency, lower

operating costs and enhance safety; also provide valve

maintenance and safety training services

SMALL PORTION OF CUSTOMERS’ COSTProducts are critical to performance and safety, but represent a

minimal portion of overall operating costs; consumption has not

been correlated to oil prices

Leading provider of

performance products to

midstream oil and gas


PIPELINE MATERIALS, VALVE PRODUCTS & SERVICES

Fluid molecules Turbulent Flow Orderly flow with DRAs

Drag in pipelines is caused by

turbulent liquid flow

Increased turbulence can lead to energy

loss and reduced throughout of a pipeline

DRAs reduce drag

throughout the

turbulent fluid core

The additives align turbulent fluid molecules to linearize

the flow patterns

DRA polymers have no effect

on the composition of crude

oil and refined products

DRAs are injected at

multiple points along a

pipeline

DRAs OPTIMIZE PIPELINE FLOW


FY18 PRO FORMA

FY24

FIVE–YEARILLUSTRATIVE MODEL

Total Revenue

EBITDA

~$1.4B-$1.5B

~$480M-$520M

Electronic Materials Revenue

Performance Materials Revenue

Total Revenue

Adjusted Pro Forma EBITDA

$866M

$198M

$1,064M

$311M

5%-7% CAGR*

8%-10% CAGR

6%-8% CAGR*

~35% of Revenue

FY20-FY24

*Based on current estimated semiconductor industry growth outlook



INVESTMENT HIGHLIGHTS

15

Leading Electronic Materials Supplier

Consumables-Based Business Model

Growing Opportunities

Sustained Strong Financial Performance

Commitment to Return Value to Shareholders

> World’s largest supplier of chemical mechanical planarization (CMP) polishing slurries

> Leading global supplier of high purity process chemicals (HPPC)

> Second largest CMP pads supplier to the semiconductor industry

> Supply to virtually all semiconductor manufacturers in the world

> Robust product portfolio, serving all applications and technology nodes

> Approximately 97% of revenue derived from consumable materials

> Broad exposure across all types of semiconductor devices

> Historically less cyclical than semiconductor equipment suppliers

> Robust growth in memory and logic applications

> Increasing complexity of semiconductor devices

> Rising semiconductor content to support Virtual Reality (VR), Internet of Things (IoT), High

Performance Computing (HPC), Cloud, Automotive

> Increasing oil production, aging infrastructure and new pipeline construction

> High profitability

> Low capital intensity

> Strong free cash flow generation

> Ongoing balanced return of excess capital to shareholders with investment for growth

> Maintain stable and increasing dividends over time

> Maintain a prudent balance sheet and de-lever appropriately post-M&A

Thank you!

société de chimie presentation...adjusted pro forma ebitda $866m $198m $1,064m $311m 5%-7% cagr*...

Documents