Agenda. Introduction Financial results H Segment review Outlook 2004 Questions and answers

Transcription

1 Welcome to the Unaxis H Results Conference August 17, 2004, 2 pm CET Call Dial-in numbers: Switzerland +41 (0) UK +44 (0) Germany +49 (0) U SA (toll-free) Unaxis / August 17, 2004 H Results 1

2 Agenda Introduction Financial results H Segment review Outlook 2004 Questions and answers 2

3 Executive summary Orders received, Sales and EBIT increased Sales MCHF 1,007 (+33%, increase in all segments) Orders MCHF 1,090 (+43%) EBIT MCHF 37 (MCHF 1) Progress in strategy implementation and execution Development of Display Technology negatively affected result 3

4 Five segments the pillars of Unaxis Unaxis Semiconductor Equipment Data Storage Solutions Coating Services Vacuum Solutions Components and Special Systems Wafer Processing Assembly & Packaging Display Technology Optics Space Technology 4

5 Key figures H for Unaxis Corporation I Overall improvements, but still facing margin pressure in CHF million H H % change Orders received % Sales % Gross profit % Gross profit Margin 33% 38% -13% Overhead costs % Other operating income/costs % Operating result (EBIT) EBIT margin 4% 0% -- Net income/loss of period

6 EBIT impacted by restructuring efforts as well as by development and start-up costs for Displays Special cost items totaling CHF 36 million need to be considered when assessing the half-year results: Restructuring costs of CHF 10 million for closure of Optics in Geisenheim, Germany (Components and Special Systems segment) Integration of ESEC (Semiconductor Equipment segment) Scale down of Nimbus (Data Storage Solutions segment) Significant additional development and start-up costs for new Generation 6 and 7 in Display Technology lead to a current loss recognition of CHF 26 million for corresponding strategic sales contracts 6

7 Key figures H for Unaxis Corporation II Strong balance sheet and net liquidity in CHF million 06/30/04 12/31/03 % change Net assets % - Net working capital % - Goodwill % Total assets % Net liquidity % - in % of equity 37% 46% -- Shareholders equity % -Equity ratio 60% 58% -- 7

8 Key figures H by segment Improvements in activity and performance in CHF million Semiconductor Equipment Data Storage Solutions Coating Services Vacuum Solutions Components and Special Systems Total* Orders received H1 04 H Sales H1 04 H EBIT H1 04 H * Total includes Others not shown in this chart. 8

9 Strengthened position in target markets Semiconductor 1) Equipment Data Storage Solutions 2) Coating Services 2) Vacuum Solutions 2) Components and Special Systems 2) Wafer Processing Assembly & Packaging Display Technology Optics Space Technology AMAT K&S AKT 3) Singulus Balzers BOCE JDS/OCLI Dutch Space 3) TEL ASM-P Ulvac Unaxis Bekaert 3) Leybold Geomatec OBH Novellus Shinkawa Unaxis Marubeni Origin Ionbond 3) Varian Unaxis CS LAM ESEC Jusung Steag Hamatech Bodycote Alcatel 3) Nitto Denko Saab 4) Unaxis NEC-M Sulzer/Metaplas Eifeler 3) 3) Pfeiffer Busch 3) Source: Division Strategic Plan, Annual reports, 10k, VLSI research, Display Search 1) Rankings based on total market volume, 2): Rankings based on accessible market, 3) No public data available, 4) Others 9

10 Capacity utilization rates (Chip production/manufacturing capability, in % JAN SEPT 2001 JAN SEPT 2002 JAN SEPT 2003 JAN SEPT 2004 JAN F SEPT F F W.W. Front End Utilization W.W. Test Utilization W.W.Assembly Utilization 10

11 IC inventories JAN '99 SEP JAN '00 SEPT JAN '01 SEP JAN '02 SEP JAN '03 SEP JAN '04 F IC Inventory in $B I:B Ratio IC Inventory ($B) IC Inventory to Billings Ratio Copyright 2004 by VLSI Research Inc

12 Worldwide electronics shipments JAN '99 SEP JAN '00 SEPT JAN '01 SEP JAN '02 SEP JAN '03 SEP JAN '04 F SEP F F Shipments in $B MONTHLY SHIPMENTS ($B) 3-MONTH ROLLING AVERAGE Copyright 2004 by VLSI Research Inc. 12

13 Semiconductor Equipment challenging market Highlights High level of sales and orders in A&P Market share increase for die bonders (ESEC) Orders from customers for Displays Generation 6 and 7 Significant improvements at Wafer Processing Challenges Significant cost reduction Tsunami introduction Going Asia Technology race in Displays 13

14 The TFT market grows, but... WW surface area output by FPD technology (in km 2 ) TFT technology (PE-CVD/PVD use) CAGR (04-07) 39% Other µdisplay PMOLED PDP PMLCD AMOLED panel prices are too high, leading to: 20 Today Generation changes 10 AMLCD Increasing complexity Technology edge Note: AM=Active matrix, PM=Passive matrix Source: Display Search, Lit search, Mgmt. interviews, Bain Analysis 14

15 Data Storage Solutions with competitive edge Highlights Market position in metallizers remains high Qualification in DVD-R at major customers New formats DVD 9 (DL) Challenges Cyclicality Cost reductions for lines 80% of business in Asia 15

16 DVD R inventories expected to rise further Millions of Units Q4/03 Q1/04 Q2/04 Q3/04 Q4/ Months on Stock Production Sales Stock Months of Stock 16

17 Coating Services with accelerated growth Highlights Continued growth Seven new coating centers in 04 New G6 coating with very good results First mobile centers installed in Hungary Challenges Keep / expand the leading position Entering Automotive field with high capacity coaters Expanding in Asia 17

18 Vacuum Solutions in competitive environment Highlights Moderate market growth Higher sales / orders from Asia New screw line pump introduced New logistic center built in Cologne New factory in China under construction Challenges Price pressure Asian challenge Technology edge at low costs 18

19 Components and Special Systems Highlights Boom in projection displays (DLP) continued Reducing number of Optics sites to 3 Increase in lighting and BioChip substrates Delayed Ariane launch with impact on sales Challenges Reduction of costs / price erosion Expansion in Asia (Optics) Tighter space programs 19

20 Asia contributes half of Unaxis total sales Sales H by region Sales H by region 23% 31% 17% 48% 46% 34% Asia Europe Americas Asia Europe Americas 20

21 Outlook 2004 Unaxis expects sales and EBIT in second half of 2004 to be at level with first six months 2004 forecasts show continuous improvement in the market situation with strongest growth dynamic in Asia Temporary flattening of demand expected for Assembly & Packaging and Data Storage Solutions Positive development foreseen in other segments along with economic trend Further increase in sales and earnings expected for 2005 Markets remain cyclical, demanding high operational flexibility 21

22 Thank you for your attention Agenda October 21, 2004 Q interim report (sales and orders received) as at September 30, 2004 March 22, 2005 Q and annual report 2004 Media and analyst conference April 26, 2005 Annual General Meeting For information please contact: Nicolas Weidmann Head Corporate Communications Tel.: Dr. Philipp Gamper Head Investor Relations Tel.:

23 Disclaimer This presentation is based on information currently available to management. The forward-looking statements contained herein could be substantially impacted by risks and influences that are not foreseeable at present, so that actual results may vary materially from those anticipated, expected or projected. 23