Qnity Electronics (Q) investor relations material

Strategic Vision and Market Positioning

• Positioned as a pure-play technology leader in the semiconductor value chain, with over 65% of the portfolio tied to semiconductor applications and a focus on advanced nodes and packaging.

• Emphasizes deep, long-term customer relationships, serving ~80% of the market through partnerships averaging 35 years.

• Operates a global, local-for-local model with manufacturing and R&D centers near customers, enhancing supply chain resiliency and customer intimacy.

• Differentiates through a broad, integrated portfolio and system-level engineering expertise, holding leadership in CMP, advanced packaging, and EMI shielding.

• Sees secular growth driven by high-performance computing, AI, and advanced connectivity, with a focus on enabling next-generation technologies.

Financial Guidance and Growth Outlook

• Projects 2025 net sales of ~$4.6B and adjusted EBITDA margin of ~30%, with 7% organic sales growth year-over-year.

• Targets 6–7% organic net sales CAGR and 7–9% adjusted EBITDA growth through 2028, outperforming expected 4–5% market growth by ~2%.

• Expects to generate over $600M in adjusted free cash flow in 2025, maintaining net debt leverage below 3x.

• Capital allocation priorities: 6% of sales to CapEx, 7% to R&D, 10% of adjusted net income to dividends, and disciplined M&A focused on advanced packaging, thermal management, and complementary consumables.

• Strong balance sheet with ~$3.5B net debt and annualized interest expense of ~$255M post-spin.

Innovation and Business Segment Development

• Maintains a robust innovation pipeline, investing in R&D even during downturns, with over 100 customer wins and dozens of new products launched in recent years.

• Focuses on early customer engagement and tailored solutions, with most products customized to specific process technologies.

• Advanced packaging and CMP are key growth drivers, with high teens growth in advanced packaging and strong market leadership.

• Accelerating innovation through data science and AI, reducing product development cycles by 35%.

• R&D investments are directed 60% to top programs, 30% to customer support, and 10% to breakthrough technologies, with AI and digital tools accelerating product development.