-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PULeOmzUJz5+U6hk/ewT/x+U/p/W40SuBYWUo51ghhJYUjVr8piUGr4SmP111FFU rM1HcKI3REJzgVYWfOf8tQ== 0000950135-00-005339.txt : 20001207 0000950135-00-005339.hdr.sgml : 20001207 ACCESSION NUMBER: 0000950135-00-005339 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20001206 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: APPLIED SCIENCE & TECHNOLOGY INC CENTRAL INDEX KEY: 0000912842 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 042962110 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 333-71467 FILM NUMBER: 784485 BUSINESS ADDRESS: STREET 1: 90 INDUSTRIAL WAY CITY: WILMINGTON STATE: MA ZIP: 01887 BUSINESS PHONE: 6179335560 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: MKS INSTRUMENTS INC CENTRAL INDEX KEY: 0001049502 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823] IRS NUMBER: 042277512 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: SIX SHATTUCK RD CITY: ANDOVER STATE: MA ZIP: 01810 BUSINESS PHONE: 9789752350 MAIL ADDRESS: STREET 1: SIX SHATTUCK ROAD STREET 2: ATTN: CORPORATE ACCOUNTING CITY: ANDOVER STATE: MA ZIP: 01810 425 1 b37587mie425.txt MKS INSTRUMENTS INC. 1 Filed by: MKS Instruments, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Applied Science and Technology, Inc. Exchange Act File No. 0-22646 MKS Instruments, Inc. Around the Process... Around the World... Slide # 1 2 Safe Harbor Passage This presentation may contain forward-looking statements that are made under the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements are estimates which involve risks and uncertainties. Actual results may vary significantly from those stated in forward-looking statements. Further information regarding risks factors can be found in the Company's filings with the Securities and Exchange Commission. Slide # 2 3 Company Highlights - - Largest supplier of gas process control instruments to semiconductor OEMs and Fabs - - High-value, integrated product offerings for diverse markets - - World-class global infrastructure - - Strong financial results - - 30 years of consecutive profitability Slide # 3 4 Strong Progress as a Newly Public Company - - Grew 34% in 1999, compared to 19% for the semiconductor capital equipment industry - - Increasing revenues and earnings for 8 quarters - - Significant new products launched - - Completed four acquisitions: - Compact Instruments - Telvac - Spectra International - D.I.P. Inc. - - Announced acquisition of ASTeX - - Enhanced already strong management team Slide # 4 5 The MKS Growth Opportunity [Diagram showing MKS growth opportunities through - Secular market growth - Market share gains - New product development & acquisition and a total market of approximately ~$5.5B] [Graphical display of semiconductor capital equipment growth, as shown more fully in slide # 7] [Diagram of process chamber, as shown more fully in slide # 11] Slide # 5 6 Accelerating Industry Momentum Semiconductor Capital Equipment Growth [Graphical display of semiconductor capital equipment growth from $5b in 1991 to an estimated $40b in 2002] CAGR = 33% Source: Dataquest 07/00 Slide # 6 7 Complexity Drives Growth - - Sub 0.18um device geometry - Advanced Etch/CVD/PVD/Implant/Thermal - - New Materials for VLSI interconnects - Copper, Barriers, Low-k/High-k Dielectrics - - Higher Productivity - 300mm, Enhanced Yield, Throughput, Uptime - - Increased Automation - Process Monitoring, Digital Control [Photo of semiconductor processor chip omitted] Slide # 7 8 Supply Chain Evolution [Diagram showing Non-Core Technology migrating from Fab to OEM to MKS] - - Technology Roadmap Driven - - Preferred Supplier Slide # 8 9 Critical Process Technologies [First part of diagram shows the following processes: RTP Etch Epi Ion Implant SEM Diffusion Vacuum Processes Strip PVD CVD Clean "virtually every chip in the world is made with MKS' products"] [Second part of diagram shows applications, other than semiconductor, which are made using the same process, specifically Flat Panel Displays Micro-Machined Devices Magnetic/Optical Storage Media MRI Freeze Dried Pharmaceuticals LEDs Optical Filters & Fibers Sterilized Medical Instruments Solar Cells Lasers] [Third part of diagram shows the growing markets that use these products, specifically Telecommunications Internet Infrastructure Consumer Electronics Pharmaceutical & Medical PCs Automotive Electronics] Slide # 9 10 Other Thin Film Process Markets The explosion of communications and mobile devices is driving other rapidly growing thin film markets - - FPD Monitor Shipments [Graphical display of an estimated 40m units shipped in 2000 to an estimated 140m units shipped in 2005] Source: Display Search 07/00 - - Hard Disk Drive Shipments [Graphical display of 150m units shipped in 1998 to an estimated 400m units shipped in 2004] Source: Dataquest 07/00 - - Single Mode Fiber Productions [Graphical display of 55m Fiber-km produced in 1999 to an estimated 244m Fiber-km in 2004] Source: KMI 06/00 Slide # 10 11 MKS Core Products Around the Process [Diagram of process chamber including the following MKS products: Mass-Flo(R) Gas Panel Instruments Gas Box Instruments specialty gases flowing through Mass-Flo(R)Gas Panel Instruments Materials Delivery System Process Monitor Baratron(R)Pressure Measurement Control Valve Shut-off Valve Adaptive Controller HPS(R)Vacuum Components/Subsystems] [Diagram of process chamber described above, adding on each of the ASTeX products: Ozone Generator Reactive Gas Generators Power Generators] [Diagram of process chamber described above, adding on Digital Control Network] Slide # 11 12 Comprehensive Product Offerings [Photos of product from the following product groups omitted] - - Pressure Measurement and Control Products - - Materials & Analysis Products - - Vacuum Products - - D.I.P. Products - - ASTeX Products Integrated Subsystems Slide # 12 13 Integrated Products Around the Process [Diagram of process chamber including the following process: Wafer Backside Cooling Subsystem Flow Control Baratron(R) Pressure Measurement Adaptive Controller Photo of product omitted] [Diagram of process chamber described above, changing to the following process: Digital Pressure Control Subsystem Control Valve Baratron(R) Pressure Measurement Adaptive Controller Digital Control Network Photo of product omitted] [Diagram of process chamber described above, changing to the following process: TEOS Effluent Management Subsystem Flow Control Baratron(R)Pressure Measurement Adaptive Controller Control Valve Shut-Off Valve HPS(TM)Vacuum Components/Subsystems Photo of product omitted] [Diagram of process chamber described above, changing to the following process: Integrated Plasma Source Subsystem Digital Control Network Materials Delivery System Reactive Gas Generators Photo of product omitted] Slide # 13 14 Customer & Market Diversity 4,000+ Active Customers Worldwide
Semiconductor Capital Equipment Semiconductor Manufacturers ------------------------------- --------------------------- [ ] Applied Materials [ ] Lam Research [ ] AMD [ ] Mitsubishi [ ] ST Microelectronics [ ] ASM [ ] Novellus [ ] Fujitsu [ ] Motorola [ ] Siemens [ ] Axcelis [ ] Semitool [ ] Hitachi [ ] National Semi [ ] TI [ ] Gasonics [ ] Silicon Valley [ ] Hyundai [ ] NEC [ ] Toshiba [ ] Genus Group [ ] IBM [ ] Philips [ ] TSMC [ ] Hitachi [ ] Tokyo Electron [ ] Intel [ ] Samsung [ ] UMC [ ] ULVAC [ ] Micron [ ] Varian
Specialty Data Storage and FPD Gas Suppliers Diverse Vacuum Processes -------------------- ------------- ------------------------ [ ] AKT [ ] NEC [ ] Air Liquide [ ] Abbott Labs [ ] GE [ ] Alcatel [ ] Plasma Therm [ ] Air Products [ ] Delco [ ] Johnson & Johnson [ ] Anelva [ ] Seagate [ ] BOC [ ] Ford [ ] OSRAM [ ] CVC [ ] Sharp [ ] Kinetics [ ] Westinghouse [ ] Komag [ ] Toshiba [ ] Nippon Sanso [ ] Lucent [ ] Veeco [ ] Praxair
Slide # 14 15 Market Leader [Graphical display showing percentage of competitor responses of awareness and preference] [Pie chart showing total available market, served market and MKS and ASTeX shares of served market] Served Market ~$750M (1999) MKS ~25% Served Market ~$1450M (1999) [Pie chart indicates MKS and ASTeX portion of market] Total Market Around the Process ~$3.5bn (1999) ~$5.5bn (2000) est. [Pie chart indicates MKS and ASTeX portion of market] Source: Semiconductor International / Cahners Publication, AVEM, SEMI, Company Estimates Slide # 15 16 Unique Competitive Position
- ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- Vacuum Vacuum Sub- Digital Pressure Flow Monitor Comp Gauge systems Network - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- MKS X X X X X X X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- Aera X X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- Edwards X X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- Helix X X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- Inficon X X X X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- MDC X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- Millipore X X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- Nor-Cal X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- STEC X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- Unit X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- -------------- Varian X X - ------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
- ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- RF DC uW Reactive Sys. Ozone Liquozone Power Power Power Gas Integration - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- ASTeX X X X X X X X - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Aera - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Edwards - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Helix - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Inficon - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- MDC - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Millipore - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Nor-Cal - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- STEC - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Unit - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Varian - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- AE X X X - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Analogic X - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Daihen X X - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Ebara X X - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- ENI X X - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ---------------- Sumitomo X X - ------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Source: Company estimates of market participants with share >5%. Slide # 16 17 Opportunities for Continued Consolidation - - MKS is the largest supplier of instruments, components & subsystems in a fragmented industry - - Drive by OEMs & end users to reduce supplier base - - Completed four acquisitions in 2000: - Compact Instruments: Provides advanced technology for process gas analysis - Telvac: Provides vacuum product technology & European manufacturing base - Spectra International: Provides additional strength in process monitoring - D.I.P. Inc: Digital process control network products - - Announced Acquisition of ASTeX Slide # 17 18 Established Global Infrastructure [Diagram of world showing locations of MKS facilities] - 9 Manufacturing Facilities - 22 Customer Support Centers - Provides SG&A Leverage Slide # 18 19 MKS Management Team
Name Title MKS Years Career Years - --------------------- -------------------------------------------------- ---------------- --------------- John Bertucci Chairman, CEO 30 35 Peter Younger President, COO 1 25 Ronald Weigner Vice President, CFO 20 32 John Sullivan Executive VP, Technology 25 40 William Stewart Corporate VP/GM, Vacuum Products 13 30 Tom McNabb Corporate VP/GM, Pressure Measurement/Control <1 18 Robert Klimm Corporate VP/GM, Materials Delivery/Analysis <1 24 Leo Berlinghieri Corporate VP, Customer Support Operations 19 24 Jerry Colella Corporate VP, Business Operations 17 23 Donald Smith Corporate VP, Chief Technical Officer <1 13 Paul Blackborow Corporate VP, Marketing 2 18 George Manning Corporate VP, Human Resources 19 26 - --------------------- -------------------------------------------------- ---------------- --------------- Total 149 308
Slide # 19 20 Financial Overview Slide # 20 21 Financial Highlights - - 30 years of consecutive profitability - - Growing faster than the industry In 1999: - 19% growth in semiconductor equipment - 34% growth for MKS - - Record profits in 1999 - - Global infrastructure in place with an employee base of ~1400 - - 8 quarters of increased revenue and profit Slide # 21 22 Annual Revenue & Operating Income [Graphical display of Revenues of $157m in 1995 to $285m LTM and Operating Income of $24.1m in 1995 to $64.4m LTM] *Excluding amortization of intangibles Slide # 22 23 Increasing Quarterly Revenue & Net Income [Graphical display of Revenue of $29m in Q3 '98 to $88m in Q3 '00 and Net Income of $0.1m in Q3'98 to $12.4m in Q3 `00] Slide # 23 24 Diversified Revenue Mix [Pie chart showing Revenue by Industry as follows: - - Spares & Upgrades - 14% - - Semiconductor Equipment - 54% - - Other Thin Film Processes - 10% - - Pharm., Diverse, Vacuum - 22%] [Pie chart showing Revenue by Region as follows: - - Europe - 10% - - US - 69% - - Asia - 21%] *Calendar Year 1999 Slide # 24 25 Balance Sheet Highlights
($ Millions) Sept. 30, 2000 ------------ -------------- Cash and Investments $ 59.7 Total Debt $ 29.8 Stockholders' Equity $183.9 Days Sales Outstanding 62 Inventory Turnover 4.3x
Slide # 25 26 Target Business Model
1999 Q3 2000 Target Model ---- ------- ------------ Sales 100% 100% 100% Gross Margin 43% 46% 46-48% R&D 7% 7% 7% SG&A 21% 16% 14-15% Operating Income 15% 23% 24-27%
*Excluding amortization of intangibles Slide # 26 27 ASTeX Transaction Summary - - Exchange of 11M shares of MKS for 14.6M shares of ASTeX - - Ownership - 70% of MKS Instruments - 30% ASTeX - - Exchange Ratio - 0.7669 MKSI shares per ASTX common share - - Pooling of interests - - Expected Closing: December 2000 Slide # 27 28 Key Financial Statistics (LTM, Sept 30, 2000/$M)
MKS ASTeX Combined --- ----- -------- Revenue $285.2 $150.6 $435.8 EBIT 62.1 23.2 85.3 Pro Forma Net Income 40.3 14.7 55.0 Shareholder's Equity 183.9 162.7 346.6
- - Accretive without synergies Slide # 28 29 Combined Capitalization (Sept 30, 2000/$M)
MKS ASTeX Combined --- ----- -------- Debt $ 29.8 $ 9.3 $ 39.1 Equity 183.9 162.7 346.6 Cash & Investments 59.7 87.9 147.6
Source: Financials as of June 30, 2000 Slide # 29 30 The MKS Growth Opportunity [Diagram showing MKS growth opportunities through - Secular market growth - Market share gains - New product development & acquisition and a total market of approximately ~$5.5B] [Graphical display of semiconductor capital equipment growth, as shown more fully in slide # 7] [Diagram of process chamber, as shown more fully in slide # 11] Slide # 30 31 MKS Instruments, Inc. Around the Process... Around the World... Slide # 31 This document and other documents have or will be filed with the United States Securities and Exchange Commission in connection with the business combination transactions referenced in this presentation. You are advised to read this and other documents filed by us with the SEC, including the registration statement on form S-4 and the joint proxy statement/prospectus (when available), because they contain or will contain important information. When this and other documents are filed with the SEC, they may be obtained free at the SEC's web site at www.sec.gov. You may also obtain for free each of these documents (when available) from MKS by directing your request to Ronald C. Weigner, Vice President and Chief Financial Officer of MKS at (978) 975-2350. -----END PRIVACY-ENHANCED MESSAGE-----