2018 Cabot Microelectronics Corporation 1

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2 Safe Harbor Statement 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. 2

3 Cabot Microelectronics Overview Leading Supplier Consumables Based Sustained Performance Delivery of Significant Value to Shareholders Leading supplier of CMP* slurries and second largest supplier of CMP pads Triple the revenue of next closest slurry supplier Growing supplier of polishing pads Supply virtually all semiconductor manufacturers in the world Robust product portfolio, serving all applications and technology nodes Primarily a consumables-based business Revenue driven by wafer starts Broad exposure across all types of semiconductor devices Inherently less cyclical than semi-cap equipment peers Financial strength Highly profitable Low capital intensity Strong cash flow Balanced capital deployment strategy In March, announced an eleven percent increase in regular quarterly cash dividend Active share repurchase program Special cash dividend in 2012 CMP Slurries CMP Polishing Pads *CMP Chemical Mechanical Planarization 3

4 Business Strategy FY17 Revenue (as a % of Total Revenue) Primary strategy to strengthen and grow our core CMP consumables business Growth opportunities CMP polishing pads New CMP slurry products for tungsten and dielectrics Slurry and pad consumable sets Also pursuing growth through acquisitions FY17 Revenue by Product Area Continue to advance our Engineered Surface Finishes (ESF) business and other areas Translate polishing expertise into new markets Opportunities include Precision optics polishing and metrology systems Silicon wafer polishing Hard disk drive polishing 4

5 IC CMP Slurries and Pads Market IC CMP consumables market is primarily driven by wafer starts Estimated 2016 Market: Slurry - $1,100M Pads - $650M Expect our revenue to grow faster than the IC CMP consumables market Sources: industry analysts and internal estimates. 5

6 End Use Drivers Memory Advanced Logic Mature Logic NAND, DRAM Processor Sensor, Application Specific IC Automotive Internet of Things / Sensors High Performance Computing Cloud / Big Data (Servers) Smartphone Key: indicates increasing magnitude of content or performance requirements. Source: internal data. Demand for CMP consumables is ultimately driven by electronic applications 6

7 Robust Product Portfolio We have a broad product portfolio, serving a wide range of applications and technology nodes to address performance and cost of ownership Our diverse solutions and global capabilities differentiate our company among leading suppliers of specialty materials to the semiconductor industry 7

8 Shift From 2D to 3D Memory Structures Source: internal data. New architectures for memory IC devices Roughly twice the number of CMP steps, in particular, tungsten Expect the industry transition from 2D NAND memory to advanced 3D NAND will continue over the next several years 8

9 Increasing Complexity in Advanced Logic Source: internal data. The most advanced logic IC devices require new materials to be polished CMP intensity increases 9

10 CMP Pads CMP polishing pad area continues to represent greatest organic growth opportunity for the company Leveraging global infrastructure, expertise and NexPlanar acquisition to supply CMP pads, which represents a large and very closely adjacent opportunity to slurries Strong customer pull since CMP pad area is dependent on one main supplier, and customers want choices Competing on product performance, speed of iteration and lower cost of ownership Expanding pad product offerings, including slurry and pad consumable sets NexPlanar acquisition provides innovative technology, complementing organic pad technologies and accelerating growth in CMP pads *FY16 benefited from the October, 2015 NexPlanar acquisition **Confident in our ability to grow revenue to over $100 million in FY19, reflecting compound annual growth of at least 20 percent Collaboration with KFMI* combines certain NexPlanar pad technology with KFMI s experience in materials manufacturing technology to better serve China s expanding semiconductor industry Have doubled participation in pads in the past two years *Konfoong Materials International Co., Ltd. 10

11 Extensive Global Infrastructure We have a particularly strong presence in the Asia Pacific region to serve our significant customer base there. Approximately 80 percent of our revenue and half of our fixed assets and global staff are in Asia 2017 facility expansion 2017 production expansion 2016 KFMI collaboration 2015 NexPlanar acquisition 11

12 Customer Awards We have earned a number of awards from customers over the years for delivering innovative, high-quality, high-performing and reliable CMP products and solutions 12

13 Financial Performance FY16 FY17 Revenue growth Strong margins Earnings per share growth 13

14 Gross Profit Margin, EBITDA and EPS Successful execution of our strategic initiatives, along with consistent, sustained productivity improvements, have resulted in strong gross profit margin, EBITDA and earnings per share (EPS) performance 60% 50% 40% $4.00 $3.50 $3.00 $2.50 $ % 20% 10% FY13 FY14 FY15 FY16* FY17 Diluted EPS, $, Right Axis Gross Profit Margin, % of Revenue, Left Axis EBITDA, % of Revenue, Left Axis $1.50 $1.00 $0.50 $0.00 *Includes adverse impact of NexPlanar acquisition-related costs and amortization expense. 14

15 Multi-Year Financial Objectives Revenue Grow faster than the CMP market Gross Profit, % of revenue Expand margin Operating Expenses, % of revenue Capture leverage Operating and EBITDA Margins, % of revenue Expand margins 15

16 Drivers for Achieving Financial Objectives Expected Impact On: Revenue Profitability Tungsten slurries with 3D NAND and FinFET Tailwind Tailwind Dielectrics slurries transformation with broad adoption across legacy and advanced applications Tailwind Tailwind Polishing pads with NexPlanar acquisition, slurry and pad sets, and KFMI collaboration Tailwind Headwind (tailwind on an absolute dollar basis) Plus cost discipline across all areas with sustained productivity improvements 16

17 $ Millions Strong Cash Flow Trend Our strong cash flow has enabled us to execute our growth and investment strategies and generate cash well in excess of our operational needs, providing value to our shareholders Net Cash Balance Cash From Operations Debt (1) (3) Special Cash Dividend NexPlanar Acquisition Initiation of Regular Quarterly Cash Dividend (2) FY Debt Drawdown / Repayment Capital Investments Share Repurchases Acquisitions Dividends (1) In 2012 we implemented a leveraged recapitalization with a $347 million special cash dividend ($15 per share). (2) In 2017 we increased the regular quarterly cash dividend by eleven percent. (3) As of September 30, 2017, our balance sheet reflected a cash balance of approximately $398 million and $144 million of debt outstanding. 17

18 Return on Invested Capital Since 2007 we have generated an average 17 percent return on invested capital, compared to a 10 percent weighted average cost of capital ROIC in excess of WACC Reflects acquisition of NexPlanar (1) ROIC = (Net Income excluding After-Tax Interest Income/Expense) / (Equity plus Debt less Cash) (2) Source: Bloomberg 18

19 Capital Deployment We have executed a balanced capital deployment strategy, including investments to support growth, dividends, acquisitions and share repurchases * Includes 2012 special cash dividend * Excludes 2012 special cash dividend Through a combination of dividends and share repurchases we have distributed approximately 95 percent of our cumulative net income to our shareholders 19

20 Cabot Microelectronics Highlights Consistent execution of our strategies has positioned us well for continued success Largest CMP slurry supplier, serving virtually all semiconductor manufacturers in the world Second largest CMP pad supplier Primarily a consumables-based business Significant growth opportunities in a number of areas CMP polishing pads New CMP slurry products for tungsten and dielectrics CMP slurry and pad consumable set offerings Highly profitable financial model and strong cash generator Track record of delivering value to shareholders Approximately $33 million paid to shareholders since the initiation of regular quarterly cash dividend program Total of $373 million in share repurchases $347 million special cash dividend in

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