26
Nick Gutwein President, CMP Technologies Goldman Sachs “Exhilarated by Electronics” Forum - July 12, 2005

CMP Dow Goldman7 12 05

Embed Size (px)

Citation preview

Page 1: CMP Dow Goldman7 12 05

Nick GutweinPresident, CMP TechnologiesGoldman Sachs “Exhilarated by Electronics” Forum -July 12, 2005

Page 2: CMP Dow Goldman7 12 05

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.

Page 3: CMP Dow Goldman7 12 05

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.

Page 4: CMP Dow Goldman7 12 05

4

• Rohm and Haas Today

• Focus Areas

• Electronic Materials

• Semiconductor & CMP Technologies

Agenda

Page 5: CMP Dow Goldman7 12 05

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

Page 6: CMP Dow Goldman7 12 05

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

Page 7: CMP Dow Goldman7 12 05

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

Page 8: CMP Dow Goldman7 12 05

8

Rohm and Haas’ Focus

• Sales Growth & Margin Expansion– Innovation– Sales and Marketing– Geographic Expansion– Efficiency

• Cash Generation & Deployment

• Strong Governance

Page 9: CMP Dow Goldman7 12 05

Electronic Materials Business Overview

Page 10: CMP Dow Goldman7 12 05

10

Global Electronics Market

$950 Billion

Computers38%

Military9%

Telecom Infrastructure17%

Medical & Industrial11%

Auto7%

Wireless/Handset8%

Consumer Electronics10%

Source : IC Insights 2003 and ROH estimates

Page 11: CMP Dow Goldman7 12 05

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

Page 12: CMP Dow Goldman7 12 05

12

Electronic Materials Business

195239Packaging and Finishing Technologies614714Semiconductor Technologies

$270$297Circuit Board Technologies20032004MM $

Sales by Segment

Page 13: CMP Dow Goldman7 12 05

13

Some of Our Partners

A few of our relationships that support our growth and product development

Page 14: CMP Dow Goldman7 12 05

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

Page 15: CMP Dow Goldman7 12 05

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

Page 16: CMP Dow Goldman7 12 05

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

Page 17: CMP Dow Goldman7 12 05

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

Page 18: CMP Dow Goldman7 12 05

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!

Page 19: CMP Dow Goldman7 12 05

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)

Page 20: CMP Dow Goldman7 12 05

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

Page 21: CMP Dow Goldman7 12 05

21

Semiconductor TechnologiesWorld Wide Wafer Starts, by Node

Mill

ions

of W

afer

Sta

rts,

200

mm

Nor

mal

ized

Source: SIA

Page 22: CMP Dow Goldman7 12 05

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

Page 23: CMP Dow Goldman7 12 05

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

Page 24: CMP Dow Goldman7 12 05

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.

Page 25: CMP Dow Goldman7 12 05

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

Page 26: CMP Dow Goldman7 12 05

26