Aixtron Se · XETR:AIXA
Aixtron — Merger or Acquisition (July 2004)
45 slides from Aixtron's merger presentation, Jul 6, 2004
Slide 1: Aixtron Transaction Roadshow, 02 July 2004
Filed by Aixtron Aktiengesellschaft pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: Genus, Inc. Subject Company’s Exchange Act File No.: 0-17139 AIXTRON Thomas Swan TRANSACTION Scientific Equipm
Slide 2: Important information about the transaction and SEC filings
willSEC’s This Transaction registration holders AIXTRON. the Investor contain Drive, are Relations website urged statement Sunnyvale, impor- Investors toatthe read www.sec.gov. Kackertstr.15-17, on and SEC 2 Form the The security by proxy proxy F-4 Theholders with statement/prospectus proxy statemen
Slide 3: Additional information and participants in solicitation
Additional (408) Transaction executive Participants Genus Information statement 2004. 747-7120. available described the for information Aixtron and regarding its merger free Genus 2004 herein. of the transaction Annual the charge described filed solicitation Genus special with Meeting atand the desc
Slide 4: Forward-looking statements
and Aixtron results Information “intends,” AG “anticipates,” expresses The involve other achieved the cycles; being conditions Form Results assume is not financial market and forward-looking conditions 10- an less may difficulties any of certain provisions variations Genus, incorporation or Kan favo
Slide 5: Agenda
• Transaction Benefits Profile •Company • • • Customers / Thomas AIXTRON 5 Scientific AGENDA GENUSProfile Products / Transaction Financial Summary Overview Markets Swan Equipment Company Summary of
Slide 6: Transaction Overview
AIXTRON 6Overview Thomas Swan Scientific Equipment Transaction
Slide 7: Transaction Highlights
for“nano” (American AIXTRON closing in CEO Scientific Transaction one ofGenus price combined Equipment deposition Depository to Highlights atacquire share Julygroup, 1technologies Genus Premium Receipts) BillinElder stock-for-stock of onAccelerate 16% NASDAQ to join over AIXTRON 30 next-generation 7
Slide 8: Transaction Rationale
technologies consumer broad Transaction product and Rationale and portfolio wireless compelling products technology andThomas global roadmap deposition Swan Increase Scientific into scale multiple Equipment with broader attractive Unique strategic growth key enabling customer teams partnership techn
Slide 9: AIXTRON Company Profile
AIXTRON Thomas Swan Company Scientific Profile Equipment 9
Slide 10: AIXTRON highlights
in 2003, 40% Empowering MOCVD corporate visibility AIXTRON into ~and –global the expected 2005 research Material market 5 consecutive institution top-line Revolution share growth inquarters customers excess Gross forof of 10margins 60% globally growth $103Well MM) in historically Direct diversified
Slide 11: AIXTRON MOCVD technology and applications
SiC electronics Telecom/ Thomas LED screen Multipurpose lighting, Swan Datacom Equipment: signaling, Scientific diodes, fiberSiwireless giant Equipment integration MOCVD OLEDAIXTRON outdoor Consumer/ display,Technology screen Optoelectronics Ferro- / CD, Dielectrics DVD Laserprinter 8Gbit DRAM (Scho
Slide 12: Product and market area diversification
Silicon diodes, Significant 16% and Telecom/ lighting, AIXTRON 2005 &signaling, for Datacom Display growth Product GaN,SiC and 405 outdoor fiber Area electronics revenue diodes optics 2003 giant Revenues wireless diversification screen (Schottky MM 2003wireless) 7% 74% expected Order MMMM Intake 6%
Slide 13: Estimated TAM for equipment segments
CVD SiC YEAR 40 S 07 Compound DRAM 00 300 .9 99 5 0 06 TAM 05 04 03 02 01 OLED 98 Estimated 8iCAIXTRON 00 YEAR Technology Thomas 05400 & SiGe 99 500 30 07 04 98 06 01 00 200 250 Equipment CVD SSi 04 [Mio. 20 13 04 equip. Epitaxy 400 150 00 Equipment 200 300 10 05 TAM equipment Equipment Swan 300 100
Slide 14: Global MOCVD equipment market shares
Veeco 67 Group 2002 Emcore AIXTRON 58 14 2 4 E 8 Rest 57 2000 9 Global 001 mcore NAIXTRON SVLSI (Nov 721 iNa8Market S30 19 Sanso Total: 3, RESEARCH Total: Rest Group 2003) 7Shares, Group 2003 MM Total: Nippon MM n o61 npThomas MM MOCVD MOCVD AIXTRON oSanso Inc. s p 2004 n Swan i aEquipment equipment
Slide 15: AIXTRON customer base
Datacom, Customer Industrial Opto/Consumer BaseLED electronics 15 Oxides, OLEDs, others Thomas Swan Scientific Equipment
Slide 16: The AIXTRON network of representation
KK Tokyo, AIXTRON cshs Cambridge, AG 16 Inc. The Representation Network AIXTRON Japan Seoul, UK of AIXcellence AIXTRON SouthCo.,Ltd. Korea Aachen, AIXTRON AG Taiwan Lund, D Thomas Chicago, Sweden Swan USA AIXTRON Scientific AIXTRONShanghai, Equipment Los Angeles, P.R. China USA
Slide 17: Network of Knowledge
Kong ofInst. Showa (India) Magdeburg (Sweden) Thomson Equipment Pittsburgh University Meijo China) CSF, 17 Oklahoma Wisconsin-Madison IQE, HMI (Russia) (Scotland) University OrsayCNRS, University Wales Berlin University State University (F) FBH of Lab. University Tokyo Institut Valbonne Berlin) Aust
Slide 18: AIXTRON core strategies
Core Strategies 18 competency: improvement positioning: AIXTRON Equity Deposition ofEnabling technology strength: technology technology and ourmarket stakeholders engineering partner position in emerging Diversification delivering markets customized ofMaintain targetsystem applications: a strong sol
Slide 19: Genus Company Profile
CompanySwan Thomas Profile Scientific 19 Equipment
Slide 20: Genus highlights
• Genus (ALD) 20 and Film $1 Highlights is Leading next inproducts DRAM ofof MM Thin equipment out a semiconductors market market over facility MovingSwan ALD 5manufacturers of4 Thomas 3Equipment and$250 Large Scientific deposition manufacturers Experienced semiconductor execution 100,000 history of
Slide 21: Genus semiconductor and non-semiconductor markets
MEMs Thin CVD Genus’ Film based automotive Heads DRAMsData sensors (W-plug) storage optical 21 Other targeted MEMS emerging markets ALDALD based SEMICONDUCTOR markets DRAMs displays, Flash, Gate inkjet MARKETS Stack printing,NON photomasks SEMICONDUCTOR MARKETS Thomas Swan Scientific Equipment
Slide 22: Genus products and market positioning
Devices •improvements Gate (VLSI MM Semiconductor/ Capacitor/ 22 into Position to DRAM Genus Swan and $21.6 Data) MM Products Positioning generation of productivity $49.5 industry Genus Gate Semiconductor Markets: logic 44% = modules word 200 designed More sole Penetration: at Samsung Display mass f
Slide 23: ALD semiconductor market opportunity
• ALD 2007 2006 semiconductors R performance 7% for 67% technology key Market $900 Barrier market 2002 Swan Markets $800 Large US$ a Market Gate CAGR $700 Equipment billion –2008 VLSI Other $600 millions 6from a 2003 $500 2003-2008 Gis Capacitor A$400 Moving 23 high $300 2005 Thomas Rapidly after $2
Slide 24: Products, Markets, Customers
AIXTRON - Products/ Markets/ Customers Thomas Swan Scientific Equipment 24 GENUS
Slide 25: Faster + Better + Cheaper = Scaling
Faster + Better + Cheaper = Scaling Thomas Swan Scientific Equipment 25
Slide 26: Technology scaling and its limits
Theeffected be 2018 26 Today 2007 ITRS Critical 1995 Technology unique 2016 2006 Shrink 2009 Driver 2015 2004 by factor Node Thomas Roadmap fundamental for 2013 2003 that Scaling Swan 2012 2002 has 1999 made 400 Scientific limits 2010 2000 350 the of300 semiconductor the Equipment 250 materials 200
Slide 27: Where are today's nano engineering challenges
ITRS, Intel 2002 Challenges’? Engineering’ 27 solutions Where are Today’s ‘Nano These challenges require substantial ‘Material Thomas Swan Scientific Equipment
Slide 28: Intel's view of strained silicon and high-k
Already Thomas Intel Intel’s 2003 View emerging SwanofScientific the in Strained marketplace Equipment Silicon28& High-k Introduction Source:
Slide 29: Silicon and compound semiconductor convergence
rfGaN w iS Driven Si Thomas SiGe/Ge Convergence ecost 29 a Transition and by Swan Sineeds infrastructure wafer ofScientific layer Silicon/ and growth Si wafer Compound Equipment of consumer Semi electronics Strained Si*Increase - - - - the performance of Silicon (IT Chips) Functional integration: di
Slide 30: Technology entry and volume ramp-up window
200K First 24 M 0 Development -12 Production Alpha Opportunity Month) onths Two 20K Tool (Wafers/ (Parts/ 30Companies 2K Tool Ramp-Up Window Beta 200 Volume Volume 20 Tool for Reaching Model 2 Thomas Entry and100M Production Swan Technology 10M Scientific 1M 12Node 100K Equipment First 10KConf 1K Pa
Slide 31: Market segments addressed after the merger
FeRAM Sidewall Plug WSi current Overview trench High-k market High-k spacers ofDRAM 31 Market penetration Flash Pin-hole Segments interpoly Strained Metal free Addressed oxide gate OLED Silicon High-k encapsulation Before Thomas gate stack and oxide DRAM Swan After layer, Others: Scientific the RFMe
Slide 32: Strength of the combined new entity
semiconductor of 32 Leading stronger, years Strength Newsuccessful Entity supplier fewerUniquely processes suppliers track of enabling record positioned withof technology ability complex totoenable partner Multiple material scalability strategically/ deposition marketsrequirements provide align on a
Slide 33: Customer impact of the combination
Combination 33 independent portfolio Customer and Impact suppliers compelling, would allow withsynergistic increased strong technology and/or technology accelerated portfolios roadmappenetration and offinancial key accounts technologies strength Increased toaligned strategically scale towould strate
Slide 34: Integration plan
•Epigress Epigress and & successful Swan Plan on Genus Integration support GSO a•/•SE ALD Metal Thomas transaction Technology New LINKS Aixtron TFH, build Scientific Marketing integrations: CVD, CSTS Thomas Equipment CF Thomas StrataGem canMO Lynx Silicon Swan for DRAM, previous Systems ALD etc. Div
Slide 35: Combined product portfolio
HDD Thomas Silicon CVD Compound &ALD: MEMS Semiconductors StrataGem Swan ALD:Scientific Stratagem ALD MOCVD: Equipment CVD: ALD: Lynx G3, StrataGem AVD: CCS SiC CVD:SiGe Flat Product Panel35 Portfolio Displays Markets OVPD: Gen Products 1, 2 Genus Products AIXTRON
Slide 36: Near-term product strategy
Combination Integration CoO. = Near existing Termmarkets Product ofof Process unique targeted Strategy—into Modules source in near delivery Existing termsystem (12 ALD months with + Increasing prospective) G’s ALD, market RAD36 and share TMFin single Genus’wafer Thomas expertise Swan enables: Scient
Slide 37: Combination product concept: AVD plus Genus
Combination ebased = AVD 2 + Genus Concept .g. 00/300 PECVD module production IPBridge of AIXTRON New, module of Metal tool unique Flexible platform Gate (ready, WN AVD, 37 deposition Gate Large Brooks) ALD Stack technological &Thomas and RTPHigh-k technology Swan and Platform: Scientific engineerin
Slide 38: Existing customers and capital investment budgets
ExistingInvestment Capital 38 Genus silicon Budget customers in 2004Existing of top 20 Aixtron IDM’sSilicon Sources: Customers IC Insights, Aixtron/ Company Genus Reports non- silicon Thomas customers Swan Scientific / collaboration Equipment partners
Slide 39: Financial Summary
AIXTRON Thomas Swan Financial Scientific Summary Equipment 39
Slide 40: Pro-forma combined revenues by application
47% 5% by Revenues 55% 14% 4% Aixtron Pro-forma Application 5% 18% 74% 43% Consumer/Optoelectronic Total 7% PF-combined 40 Thomas Combined Total Revenues pre-transaction Revenues Swan2002 MM Scientific %MM25% ($142 2003 LED ($103 Equipment MM) 9% pre-transaction MM) &Total Display PF-combined Revenu
Slide 41: Pro-forma combined group balance sheet
31/12/2003 Cash 41 long-term million and Equivalents assets $ TotalMM Other Assets 98.7 current Total 86.4 Liabilities 94.7 assets 279.8 of which Total 65.1 Net 5.8 Financial 214.7 Assets214.7 Liabilities Equity 76.7% ratio Shareholders’ MM 78.3 68.5 equity 75.0Thomas 221.8 51.6 Swan4.6Scientific 17
Slide 42: Synergy benefits and cost savings
reduced Equipment Assessment •Improved group AVD Synergy utilization More “True” existing overlap to contacts Mainly Cost 42 entry Benefits through Revenue AIXTRON and to to access these (e.g. customer Genus’ hybrid customers Genuspower requirement ALD in offices, Cost hybrid strengthened Developmen
Slide 43: Market capitalization versus equipment vendors
<$500 FSI 221 135 463 Semitool 3 A Ph E 575 598 Genus 600 Holding 732 S V 3,386 >$1,000 4,495 will 32,195 500 Transforming 58 elected edc A xtron sk tnDupo aM 0coee acquire vand arche isllu ologynch on/ MM sa Aixtron s SEZ MM Semiconductor l omot iriatea $500—$1,000 310 aygRes US Transaction r40,000
Slide 44: Summary of Transaction Benefits
AIXTRONof44 Summary Transaction Benefits Thomas Swan Scientific Equipment
Slide 45: Main transaction benefits
deposition leadership Equipment shares Results SummaryAccelerates in of strong in technologies Creates Main multiple financial Transaction entry a leading attractive and Reduces position compelling player Benefits growth to Credible Business and and adds advantage Establishes Unit, knowledge allowin