Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Merger or Acquisition (December 2014)
20 slides from Veeco Instruments's merger presentation, Dec 5, 2014
Slide 1: Investor Conference Call: Veeco Acquires Solid State Equipment Holdings LLC
December 5, 2014 Investor Conference Call Veeco Acquires Solid State Equipment Holdings LLC
Slide 2: Safe Harbor
Safe Harbor To the extent that this presentation discusses expectations 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. These fact
Slide 3: Introduction
Introduction Veeco has acquired Solid State Equipment Holdings LLC (SSEC), a leading innovator in single wafer wet etch, clean and surface preparation equipment (“Precision Surface Processing”) SSEC strengthens Veeco’s position in Compound Semi (LED, Power Electronics & Wireless) and MEMS, and adds
Slide 4: Acquisition Rationale
Acquisition Rationale Increased Access to High Growth Markets SSEC extends our compound semiconductor and MEMS footprint and is a stepping stone to the high growth Advanced Packaging market Complementary, Differentiated Technology SSEC’s “Soak and Spray” technology enables single wafer control with
Slide 5: SSEC Overview
SSEC Overview Leading innovator in single wafer wet etch, clean and surface prep equipment Key Facts and Figures Markets Addressed Primary Applications Corporate Headquarters: Horsham, PA Employees Sq. Ft. Facility Years of Consecutive Profitability Customer Installations 21 ~3,000 115 50,000 Metal
Slide 6: Configurable Platform Serves Multiple Applications
SSEC Configurable Platform Serves Multiple Applications 50mm 450mm 1 Platform, Multiple Substrate Sizes Photoresist Strip Si Etch Spin Coat Strip Metal Lift Off Metal Etch Flux Clean Develop Compound Etch Clean SSEC WaferEtch
Slide 7: Increased Access to High Growth Markets
Increased Access to High Growth Markets 1
Slide 8: Expands Veeco's Served Markets
SSEC Expands Veeco’s Served Markets Display Data Storage Expands Veeco’s footprint in Compound Semiconductor & MEMS Stepping Stone to Fast-Growing Advanced Packaging Market Compound Semiconductor (LED, Power Electronics & Wireless) MEMS
Slide 9: Extends our Already Large Footprint in Compound Semiconductor
SSEC Extends our Already Large Footprint in Compound Semiconductor ~Served Available Market (SAM)* End Markets 2014 SAM ~ $480M 2017 SAM ~ $740M SAM CAGR: > Processes Veeco MOCVD MBE SSEC Metal Lift-Off (MLO) Thick Resist Removal Wet Etch *Veeco & SSEC Estimates/Systems Only Source: Yole Development
Slide 10: Strengthens our Emerging MEMS Opportunity
SSEC Strengthens our Emerging MEMS Opportunity ~Served Available Market (SAM)* Smartphone Application Example 2014 SAM ~ $65M 2017 SAM ~ $90M SAM CAGR: Processes Veeco Ion Beam Etch SSEC MLO Thick Resist *Veeco & SSEC Estimates/Systems only Autofocus MEMs Actuator 15-17 MEMS in Red Wet Etch Wafer Th
Slide 11: Adds New Advanced Packaging Growth Vector
SSEC Adds New Advanced Packaging Growth Vector ~Served Available Market (SAM)* Market and Applications 2014 SAM ~ $145M 2017 SAM ~ $230M SAM CAGR: SSEC Processes Wafer Thinning Through Silicon Via (TSV) Reveal & Clean Under Bump Metal (UBM) and Redistribution Layer (RDL) Resist Removal and Etch Flux
Slide 12: Why SSEC Wins in Compound Semiconductor
Why SSEC Wins in Compound Semiconductor Metal Lift Off Unique soak and spray architecture Batch process throughput with single wafer process performance Etch Low capital cost, front end quality process, end point detection Batch Soak Wet Transfer Single Wafer Spray WaferEtch
Slide 13: Why SSEC is Well Positioned to Win in MEMS
Why SSEC is Well Positioned to Win in MEMS Highly customizable single wafer wet processing solutions No wet processing equipment company yet strategically positioned in MEMS Metal Lift-Off Thick Film Remover Resist Development Trench Cleaning SSEC WaferStorm
Slide 14: Why SSEC Wins in Advanced Packaging
Why SSEC Wins in Advanced Packaging Cleaning Tool Plasma Etch Equipment Silicon Thickness Measurement Award received by 3DIncites as best 2.5D/3D manufacturing equipment 2014 Highest uniformity and fast etch rates Value Proposition – TSV Reveal Lowest Cost of Ownership for Single Wafer Wet Processin
Slide 15: Synergistic and Accretive Combination
Synergistic and Accretive Combination 3
Slide 16: Details of the Transaction
Details of the Transaction Veeco has completed the acquisition of SSEC, a privately held company Veeco paid ~$150 million cash at closing, no earn-outs or contingencies SSEC’s management team will continue to run the business as a unit of Veeco Transaction 2015 SSEC Forecast: Revenue $65 million Adj
Slide 17: Key Acquisition Synergy: Expanded Customer Access for SSEC
Key Acquisition Synergy: Expanded Customer Access for SSEC SSEC Approximate Annual Sales by Region Veeco Will Help Accelerate Growth For A Robust, Highly Profitable Business Veeco key account relationships with many of SSEC current and target customers Veeco Asia and Europe Sales and Service network
Slide 18: Veeco Provides SSEC with Greater Access to Universe of Target Customers
Advanced Packaging Compound Semiconductor MEMS Veeco Provides SSEC with Greater Access to Universe of Target Customers SSEC Serves 5 of 5 Top OSATs SSEC Serves 4 of 5 Top Players in Mobility; 3 of 7 Top Suppliers in LED SSEC Serves Top 3 MEMS Companies; 13 of Top 20 Note: Universe of target companie
Slide 19: Precision Surface Processing Aligns with Our Three Mega Trend Strategy
SSEC Precision Surface Processing Aligns with Our “Three Mega Trend” Strategy LED Lighting & Power Electronics (MOCVD, SSEC) Wireless Chips (MBE, SSEC) Semiconductor Research (MBE) Hard Disk Drives (IBE, IBD, PVD, SSEC) Build on Existing Leadership Advancing Thin Film Technologies MEMS Devices (IBE,
Slide 20: Q & A
Q & A
Veeco Instruments — Merger or Acquisition (December 2014) on 6ix