Upload
uc-berkeley
View
34
Download
2
Tags:
Embed Size (px)
Citation preview
Nick GutweinPresident, CMP TechnologiesGoldman Sachs “Exhilarated by Electronics” Forum -July 12, 2005
2
Forward Looking Statement
The presentation today may include forward-looking statements as that term is defined in securities law, including but not limited to anticipated plans, litigation and environmental matters, currency effects, profitability, and other commitments or goals. Such statements are subject to a number of risks and uncertainties, many of which are listed in Rohm and Haas’ 10-K filing with the Securities and Exchange Commission.
Copies of all recent SEC filings, and additional information about Rohm and Haas, are available through our web site: http://www.rohmhaas.com.
3
Regulation G
The presentation today may include the display of some company data that do not directly conform to generally acceptable accounting principles, or GAAP. Management believes that the presentation of some non-GAAP data provides investors with additional insight into the ongoing operations of the business. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies.
All non-GAAP data in the presentation are indicated by a footnote. Tables showing the reconciliation between the GAAP and non-GAAP measures are available, with today’s presentation, on the investor section of our web site at http://www.rohmhaas.com.
4
• Rohm and Haas Today
• Focus Areas
• Electronic Materials
• Semiconductor & CMP Technologies
Agenda
5
Rohm and Haas Today2004 Performance
$2.22 (+76%)Earnings per Share
$882 MMCash from Operations
6.8%Net Earnings Margin
29.2%Gross Margin
$497 MillionNet Earnings
$7.3 B (+14%)Net Sales
2004
6
Rohm and Haas TodayWe have a Diverse Portfolio
2004: Sales $7.3 Bn
Salt$829
PerformanceChemicals
$1,590
Adhesives & Sealants$693
Coatings$2,395
Monomers*$543
Electronic Materials$1,250
*External Sales
7
Rohm and Haas Today We Serve a Broad Set of End Markets
End Markets Served
Food & Retail2%
Paper4% Building & Construction
29%
Electronics17%
Industrial and Other**13%
Packaging11%
Automotive/Transportation^
10%
Water*7%
Household &Personal Care
7%
* Water includes water softeners (salt & equipment)
** Other includes Biocides, Healthcare, Oil Additives
^ Automotive/Transportation includes ice control salt and road marking
8
Rohm and Haas’ Focus
• Sales Growth & Margin Expansion– Innovation– Sales and Marketing– Geographic Expansion– Efficiency
• Cash Generation & Deployment
• Strong Governance
Electronic Materials Business Overview
10
Global Electronics Market
$950 Billion
Computers38%
Military9%
Telecom Infrastructure17%
Medical & Industrial11%
Auto7%
Wireless/Handset8%
Consumer Electronics10%
Source : IC Insights 2003 and ROH estimates
11
Electronic Materials Business ProfileSemiconductor
DeviceInterconnect/
PackagingPWB/
AssemblyEnd-UseDevicesSilicon
CMP Metal Finishes for Connectors & Electronic Devices
Electroplated BumpProcesses
Solderable Finishes
ThickPhotoresists
Dielectrics
Microfabrication Series and Optoelectronic Packages
Imaging
Metallization
Embedded Passives
Solder Masks
Optoelectronics
Specialty High-end Laminate/Copper Lamination Foils
• Laptops/PCs• Smart Homes• Cell Phones• Appliances• Game Centers• Automobiles
Photoresists
CMP
Anti-reflectants
Electroplated Copper Chemistries
Low-k Dielectrics (ILD)
Ancillaries
12
Electronic Materials Business
195239Packaging and Finishing Technologies614714Semiconductor Technologies
$270$297Circuit Board Technologies20032004MM $
Sales by Segment
13
Some of Our Partners
A few of our relationships that support our growth and product development
14
Circuit Board Technologies
• Global leader in products/processes for printed wiring boards
• Core strengths in metallization and imaging
• Driving innovation to enable enhanced performance
– Low k dielectrics; embedded passives; optoelectronics
• Global footprint positioned for growth
15
Packaging and Finishing Technologies
Electronic Materials Markets
Solderable finishes for Conventional IC packaging
Durable finishes for Fixedand removable connectors.
Solderable finishes for Fixed capacitors.
New materials for advanced IC Packaging• Chip size packages • Wafer level packaging
16
Semiconductor Technologies
Global Photoresist Market $770 Million
Major Manufacturers End Use
Deep UV41%
193nm DUV6%
G Line18%
JSR21%
TOK22%
Others21%
ROH19%
Sumitomo9%
I Line35%
ShinEtsu8%
Source: Company and Industry estimate 04
17
Polishing by CMP
• Smoothing out layers to make them flatter
Si Wafer
Polishing Pad
InterconnectsOxide
Polishing slurry
Load
Travel
horizontal deformation lengthvertical
deformation length
Benefits of CMP
No CMP With CMP
Printing over rough terrain means lower focus depth so printing can’t be fine
Removing the “hills and valleys” lets printing be finer
40% of all Chips made now use CMP!
19
Semiconductor Technologies
Global CMP Market $837 Million
Other8% Cabot
36%
Planar/Arch3%Hitachi
6%Fujimi4%
Freudenberg2%
ROH41%
Source: Corporate TAM Model (2004.11.29)
20
Growth: Semiconductor Materials*
Sales Index
ROH CAGR = 12.1%
Global MarketCAGR = 9.8%
*Materials : Worldwide Photoresist , Pad & Slurry SalesSource: Gartner Dataquest, SIA and Company estimates
21
Semiconductor TechnologiesWorld Wide Wafer Starts, by Node
Mill
ions
of W
afer
Sta
rts,
200
mm
Nor
mal
ized
Source: SIA
22
Semiconductor Outlook
WW Semiconductor Revenue13
7
126 14
9
204
139
141 16
6 213 232
230 25
6 292
-8.5%
18.9%
1.2%
18.3%
28.0%
8.9%
(0.7%)
11.1%14.2%
-32.0%
36.8%
0
50
100
150
200
250
300
350
400
450
500
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Year
$Bill
ions
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%Average Pessimistic Optimistic % Change - Avg.
• Slowdown in wafer starts began in early Q404, continued thru Q105
• Logic and Asian foundries hit hardest
• Memory and IDMs remain stable to growing
• Excess inventory in semi chain from $1.6bn in Q4 to $1.0bn by start of Q105
• Inventory now ‘in balance’ and recovery has started in Q2
• Expectation of stronger demand in second half
23
1
10
100
1000
10000
100000
1000000
Month 1 12 24 30 36 42 48 54 60 66 72 78
Time (months)
Waf
er s
tart
s/m
onth
Development Production
Production equipment buy decision
Process/equipment design freeze
Process development begins
Volume production begins
Downselect for suppliers
Prodn. Maturity(yield >99%
Semiconductor Device Node Timeline
Source: 2003 ITRS roadmap executive section
24
R & D Focus: Led by RoadmapsEvolution of Circuit Boards IC Packaging Technology Roadmap
Roadmap for Tomorrow’s Chips
Smallest Feature Size in Chip
(microns)
All three roadmaps help guide our R&D efforts.
25
Electronic Materials Strategy and Focus• R&D Driving Advanced Technology
– Circuit Board, Packaging & Finishing, Semiconductor– Healthy Pipeline– Advantage of Integration Knowledge
• Participate in Roadmap Development– Drives Integration Knowledge and Close Partnerships– Joint Development Alliances– Determines Future Market Share % and Value
• Asia– Talent and Infrastructure– Further Our Position in Japan, Taiwan and Korea– Growth in China
26