Ionics Inc. · PSE:ION

Ionics — Investor Presentation (October 2004)

12 slides from Ionics's investor presentation, Oct 13, 2004

  1. Slide 1: Management Presentation October 2004

    EXHIBIT 99.1 Management Presentation October 2004 Safe Harbor Statement Under Private Securities Litigation Reform Act of 1995 Forward-looking statements in this presentation involve risk and uncertainty. These forward-looking statements are based on management’s current views and assumptions and ar

  2. Slide 2: Introduction to Ionics; New Management Team

    disavows any obligation to update or supplement those statements in the event of any changes in the facts, circumstances, or expectations that underlie th ose statements. 1 Introduction to Ionics Core Business Water treatment equipment and services Broad technology utilization Core Deep applications

  3. Slide 3: Realigned and Efficient Operating Structure

    VP, Strategy and Operations (1) Stephen Korn VP and General Counsel (15) “Skip” Dickerson Michael Routh Alan Crosby Edward Cichon VP, Water Systems VP, Instruments VP, Consumer VP, Special Projects (32) (26) (25) (23) Note: Parenthesis “( )” indicate years of experience in the industry 3 Realigned a

  4. Slide 4: Diversified Operations

    Diversified Operations Consumer 6% Microelectronics 6% Power 34% Municipal 20% Indu¢rial 34% : Latin leis America Australia 1% 6% Asia 7% USA Europe ‘7% 54%

  5. Slide 5: Patent Portfolio

    Patent Portfolio Ionics U.S. Patents and Applications by Type 1 Issued Patents Applications Membranes 21 1 Equipment 27 10 Instruments 20 3 Process/System 21 5 TOTAL 89 19 Note: 1 Excludes two US design patents having a scope not amenable to the listed four categories In addition to its U.S. patent

  6. Slide 6: Major Facilities Overview; Operations Segment

    7 Major Facilities Overview 16 20 3 9 21 18 23 15 5 25 6 12 13 10 8 22 14 19 11 21 26 4 17 24 7 Operations Equipment Consumer Instruments Watertown, MA Watertown, MA Watertown, MA 1 14 Fontana, CA 21 Phoenix, AZ 1 10 Kunshan, China 1 5 Boulder, CO (headquarters) (headquarters) (headquarters) 4 Bayto

  7. Slide 7: Highlights of BOO Plant Operations

    150 facilities Regeneration of ion-exchange resin for Service DI industrial customers—low capacity/high quality Production of sodium hypochlorite and Cloromats related chlor-alkali chemicals for industrial and municipal applications Leading supplier of desalinated water and mobile water treatment 9

  8. Slide 8: Examples of BOO Plant Operations

    1 2 100% 77-Ionics Own 138.6 182 — 3 70% 1 (Hamma -Algeria) Own 30.0 200 — 51% 1 (Barbados) Own 1.1 28 3.0 49% 1 (Magan -Israel) Own 1.3 24 4.3 40% 1 (Desalcott -Trinidad) Own 30.0 109 — 4 25% 1 (UDC-Kuwait) Own 16.3 375 — 0% 18 Operate — 41 — Total 217.3 959 7.3 Notes: 1 Excludes Ecolochem 2 Based

  9. Slide 9: Equipment Segment; Instruments Segment

    Equipment Segment Generated 40% of 2003 revenue Manufactures and sells water purification equipment Large municipal customer base, with strong microelectronics, power and petrochemical industrial presence Key contracts include Kuwait JV (reuse), City of Minneapolis (surface water) Leading positions

  10. Slide 10: Strategic Initiatives

    Semiconductor, Intel, ST Microelectronics, ExxonMobil 14 Strategic Initiatives Announced restructuring plan in September 2003 Initial organization structure simplification $15mm of cost savings 2003 Initiatives Consolidated manufacturing and purchasing Started portfolio management and divested certa

  11. Slide 11: Declining One-time Charges

    Real estate restructuring/closures + operating cost associated with facilities Rationalized medical benefits program 2004 Continued organization structure simplification Initiatives Reduced pension costs Integrated materials purchasing program reduces COGS by $15+ mm1 1 Based on estimated aggregate

  12. Slide 12: Ionics Is An Attractive Opportunity

    reputation experience Substantial skills/expertise seawater ultrapure water plant operations water services (mobile and fixed base) Significant profitability improvement potential cost reductions increasing percentage of plant operations Strong growth prospects Ionics is one of the few remaining pur

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