EX-99.2 8 b327616ex99-2.htm TRIKON INVESTOR PRESENTATION Prepared and Filed by St Ives Burrups

Exhibit 99.2

 

 

 

Safe Harbor Statement

To the extent that this presentation discusses expectations about market conditions or about market acceptance and future sales of the Company’s products and our bank lines of credit or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. Such forward looking statements or comments include or relate to, but are not limited to; Trikon’s ability to respond to economic, commercial and technical trends such as the market acceptance of Trikon’s products, ability to expand its sales and marketing efforts, management of its cost structure, our ability to return to profitability, the resolution of copper/low k integration and devise shrink development efforts at device companies, development efforts in the field of low k dielectrics, long implementation periods in the semiconductor industry, acceptance of new products by individual customers and by the marketplace, the availability of credit under its facility and other factors discussed in the Business Description and Management’s Discussion and Analysis sections of the Private placement memorandum, Company’s Report on Form 10-Q for the six months ended June 30 and Annual Report to Shareholders.

 

 

 

 

 

 

Introduction

 

 

 

 

 

 

PIPE Offering

     
  Offering size: 500,000 Units
    4 Common shares and 1 Warrant per Unit
    125,000 Unit over-allotment option
  Common shares post-Offering: 16.1 million
  Pricing: Mid-October
  Use of proceeds: Primarily working capital
  Registration rights      
    Filing in 30 days
    Effectiveness in 90 days
  NasdaqNM: TRKN
   Agent: Oppenheimer & Co.

 

 

 

Participants

       
  Jihad Kiwan, President & Chief Executive Officer
       
   
22 years in the semiconductor industry
       
   
President and CEO since March 30, 2003
       
   
Prior to Trikon, Senior Vice President and General Manager
of Amkor Technology, Inc., Wafer Fabrication Services and
previously, Hewlett Packard
       

   Bill Chappell, Chief Financial Officer

    CFO since 2001
    20 years of collective CFO and chartered accountant
      experience including PricewaterhouseCoopers

 

 

 

Investment Highlights

 

Mission

To continuously improve our customers’
competitiveness by providing them with advanced
technology etching and deposition solutions.

 

Growth Strategy

  Deliver niche applications to major customers
     
  Expand sales and marketing effort
       
    Asia
       
    “Top-20” semi companies
     
  Focus on R&D to remain technology leader

 

 

 

 

 

Semiconductor Equipment Market

 

 

 

 

 

Semiconductor Industry

 

 

 

 

 

Products

 

 

 

 

Revenue Mix by Product

 

 

Planar 300TM - dielectric CVD

  100mm- 300mm CVD tool
       
    In volume production since 1995 at LSI Logic
       
       
  Flowfill® process
       
    @ 90nm in pilot production
       
    @ <100nm Potential STI gap-fill solution
       
    Qualified for Inter-Metal and Pre-Metal Dielectric applications 
       
    Offers superior gap-fill and lower cost to Spin-on and HDP
       
    Can reduce/eliminate CMP budget
       
       
  Orion® process
       
    @ 65nm in on-site qualification at 2 top-ten semi companies
       
    Only CVD solution with achievable k values of <2.2 
       
    Integrated into 9LM and packaged at k = 2.5 and 2.2
     
     
  ASP of $3.0-5.0 million

 

 

Sigma 300TM and fxP - Metalization tool

 

  300mm and £200mm metalization tools in volume production since 1993 at Infineon
       
    30 tools at Infineon in production
       
    @ 110nm in production with ionized liners
       
    Long throw and ionized liners, barriers and seed layers
       
    MOCVD of TiN and Ti(Si)N  capability  demonstrated
       
    Ti and Co silicides
       
    Aluminum slab
       
    In place/on-their-way for FBAR development at Sony, Epcos and Infineon
       
       
  ASP of $2.5-4.0 million

 

 

Omega fxP- high aspect ratio etcher

 

 Newly launched £200mm etch tool entering volume production at Philips
     
  116 previous generation tools installed, 28 at Philips
     
  Current generation entering volume production at Philips and in evaluation at IR for power trench etching
     
  International SEMATECH set record high aspect ratio contact etch in 1999 at 30:1 aspect ratio, 25nm
     
  Infineon R&D have etched 27nm polysilicon gates with Omega
     
  Deep Silicon Etching in evaluation at Robert Bosch
     
ASP $2.0-3.5 million

 

 

Blue Chip Customer Base

 

Strong IP portfolio

  31 US and 56 foreign patents
     
  32 US and169 foreign patent applications
     
  Covering equipment and processes
       
    Barriers
       
    Low-k dielectrics
       
    STI
       
    Damascene processing
       
    FBAR
       
    Electrostatic chucks
       
    Plasma sources (M0RI)
       
    Showerheads
       
       Precursor delivery systems

 

 

Management and Resources

 

 

Management and Employees

Strong sales and marketing focus from new CEO, Dr. Jihad Kiwan
   
Experienced operational management led by new COO Richard Deep
   
  Best practices with advanced management tools
   
Employees

 

  Sales & Marketing 24      
           
  Customer support 77      
        One-Third are Degree Qualified
  Research & Development 62  
           
  Manufacturing 62   28 are PhDs
           
  Administration 35      
   
     
  Total 260      
         

 

Manufacturing Resources

First class 110,000 sq ft. facility within 2 hours of London/Heathrow
   
   Class 1000 Manufacturing area
   
Class 100 Engineering clean room
   
Class 10 Demonstration clean room
   
Purpose-built training suite with complete machines and computer-based training systems
   
ISO 9001:2000 (quality) and 14001 (Environmental) registered

 

 

Local Customer Support

Regional Centres     Local Offices  
           
USA
Dallas, TX  
Korea Portland, OR  
UK New Haven, CT  
Germany Manchester  
France Nijmegen  
Taiwan Migdael Haemek  
    Regensburg  
    Dresden  
    Toulouse  

 

Distributors

Fastgate – Japan
Hermes Epitek – Taiwan, China and Singapore
    

 

Financials

 

 

 

Financial Performance

($’Millions)

   

 

  Heavy exposure to telecoms
     
  Under exposure to Asia
   

 

2003 Performance to Date

($’Millions except per-share)

  Q1 2003   Q2  
 
 
 
2003            
           
             
Sales   5.1     6.0  
Gross Margin   0.8     1.2  
Operating Expenses   7.1     7.0  
             
Operating loss   6.3     5.3  
Loss per Share ( 0.50)   ( 0.35)  
Pension ( 0.06)   ( 0.15)  
One-off corp. costs       ( 0.06)  
RIFF       ( 0.04)  
Loss per Share (GAAP) ( 0.56)   ( 0.60)  
         
       

 

Operating Model

  Peak   Trough   Go-  
  2000   2002   Forward  
 
 
 
 
Revenue 100 %   100 %   100 %  
                   
                   
Gross Margin 48 %   25 %   50 %  
SG&A 21 %   40 %   18 %  
R&D 8 %   33 %   12 %  
                   
                   
EBITDA 23 %   (46 %)   24 %  
Operating Income 19 %   (66 %)   20 %  
           
         

 

New Credit Facility

   
£5 million ($8 million) revolver agreed July 2003
   
2 year facility to June 2005
   
Interest rate is 1.75% over LIBOR
   
Limited financial covenants
 

 

Balance Sheet @ June 30, 2003

 
($’millions)
  
     
     
Cash 30.3  
     
Working Capital 34.9  
     
Fixed Assets 18.0  
     
Long Term Debt 0.4  
     
Shareholders’ Equity 52.6