Introducing The SAES Getters Group Lainate, June 2005
Core Business The SAES Getters Group is the world leader in a variety of scientific and industrial applications where stringent vacuum conditions or ultra-high pure gases are required. 2
Core Business For nearly 60 years, our getter solutions have been supporting technological innovation in: The information display industry The lamp industry Ultra-high vacuum systems A wide range of electronic device-based applications Vacuum thermal insulation Semiconductors 3
Research & Innovation Average of 8% of net consolidated sales allocated to R&I activities every year State-of-the-art corporate laboratories covering a surface of over 3,300 sq.mt. Nearly 100 people committed to investigating problems, developing proposals and testing solutions 4
Intellectual Property: a Competitive Asset Over 300 inventions have been patented by the Group in 60 years of activity, in the following business segments: Alloys and Gettering Displays Lamps Vacuum Insulation Getter Pumps Gas Purification & Analysis Semiconductor Technology Catalysis Other 3,33% 2,42% 5.76% 5,45% 12,12% 10.61% 13,64% 19,09% 27,58% 5
Global Presence Colorado Springs CO USA Cleveland OH USA SAES Getters S.p.A. Group Headquarters Moscow RUSSIA Nanjing CHINA Seoul KOREA Daventry GREAT BRITAIN Tokyo JAPAN Shanghai CHINA Jincheon-kun KOREA San Luis Obispo CA - USA Cologne GERMANY Avezzano (AQ) ITALY SINGAPORE 6
Business Organization Information Displays Business Unit Components based on the getter technology and used in displays (cathode ray tubes and flat panel displays) Industrial Applications Business Unit Components based on the getter technology and used in a wide variety of industrial applications (lamps, electronic devices, vacuum systems) and capital equipment employed primarily in the semiconductor industry for pure gas handling Advanced Materials Business Development Unit Advanced materials supporting some of the most innovative technologies: optical crystals, shape memory alloys, getter thin films for wafer-level MEMS, catalytic diesel filters and metalorganic precursors 7
2004 Sales by Business Unit Industrial Applications 41% Information Displays 59% 8
Business Organization Information Displays BU Industrial Applications BU Cathode Ray Tubes BA Lamps BA Vacuum Systems & Thermal Insulation BA Flat Panel Displays BA Electronic Devices BA Semiconductors BA 9
Cathode Ray Tubes SAES Getters is the Cathode Ray Tube (CRT) industry s leading provider of getters: Yearly production capacity of 250 million barium getter pieces In-house vertically integrated manufacturing processes A large and consolidated customer base A controlled risk management policy based on total production distribution at 3 manufacturing facilities 1 st qt 2005 sales: 8.7 M 27% of total (45 M in 2004) 10
Flat Panel Displays As a strategic supplier of technology innovation, SAES Getters serves the flat panel display industry with getter, dryer and mercury dispensing solutions for: LCD backlighting Plasma displays Field Emission Displays (FEDs) Vacuum Fluorescent Displays (VFDs) Organic Light Emitting Diode displays (OLEDs) 1 st qt 2005 sales: 10.3 M 32% of total (38.2 M in 2004) 11
Lamps SAES Getters fully addresses key issues of the lamp industry related to vacuum purity maintenance, filling-gas purity and lamp processing for: Street lighting Industrial lighting Commercial lighting SAES green mercury dispensers support the most important fluorescent lamp manufacturers in complying with the stringent mercury dosing regulations and thus in ensuring minimal environmental impact of their products. 1 st qt 2005 sales: 2.9 M 9% of total (11.2 M in 2004) 12
Electronic Devices This Business Area offers solutions for an extremely diversified range of devices, whose functioning requires either vacuum or a high purity rare gas atmosphere. Among the targeted market segments: Avionics Medical Security & defense Telecom & datacom Automotive 1 st qt 2005 sales: 3 M 9% of total (11.6 M in 2004) 13
Vacuum Systems & Thermal Insulation Expertise in gas-surface interaction, vacuum technology, outgassing and permeation of materials has led the Group to the development of non-evaporable getter pumps and solutions for vacuum systems and vacuum thermally insulated devices: Vacuum systems for material characterization and processing Particle accelerators Cryogenic applications Solar energy collectors and pipes 1 st qt 2005 sales: 1.4 M 4% of total (5.8 M in 2004) 14
Semiconductors Development and marketing of advanced gas purification technologies supporting the semiconductors and other hi-tech industries is the mission of this Business Area. Providing purification for ultra-high purity bulk gases and specialty gases, SAES Pure Gas member company of the SAES Getters Group offers a product portfolio tailored to a wide range of flow rates and gas applications. 1 st qt 2005 sales: 5.9 M 18% of total (29.8 M in 2004) 15
Business Organization Advanced Materials BDU Getters for MEMS BDA Shape Memory Alloys BDA Optoelectronic Materials BDA Metalorganic Materials BDA Catalysis BDA 16
Getters for MEMS Mission of this Business Development Area is engineering and marketing of thin film getter products for: Wafer-level packaged Micro Electro Mechanical Systems (MEMS) Hydrogen-sensitive packages Getter films deposited onto MEMS cap-wafers improve the vacuum level and increase reliability and lifetime of the final device. 17
Shape Memory Alloys Mission of SAES Shape Memory Alloys (SMA) Business Development Area is to deliver state-of-the-art shape memory and superelastic components for industrial and niche high-technology applications, such as: Automotive Transportation Domotics Eyewear Medical In-house vertically integrated process, from ingot to SMA component manufacturing, is SAES Getters distinctive mark. 18
Optoelectronic Materials By delivering advanced optical crystals to the optoelectronic device and solid-state laser marketplace this Business Development Area offers customers a real competitive advantage as a reliable supplier of added-value photonic materials. With the plus of a multi-disciplinary know-how that allows the mastering of growth and manufacturing strategic processes. 19
Metalorganic Materials This Business Development Area aims at developing premium quality metalorganic precursors for a wide range of electronic and microelectronic metal organic chemical vapor deposition applications: Ferroelectric memories High-k dielectrics Electric-ceramic thin films Superconductors 20
Catalysis This Business Development Area aims at developing, in the frame of a partnership, a Catalytic Diesel Filter for the abatement of soot emissions from heavy-duty/stationary engines. We have developed an innovative technology to deposit a thin catalytic coating on metal fibers finalised at the filter performances improvement. 21
Consolidated Sales M 180 160 140 172.6 120 160.2 141.6 100 115.9 115.7 141.2 80 60 89.1 95.2 126.2 93.9 40 20 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 22
2004 Sales by Geographic Area Rest of Asia 41% Rest of the World 2% Italy 1% Rest of Europe 15% Japan 23% North America 18% 23
Consolidated Operating Income (% on net sales) M 35 33.8 30 25 22.1 19.6% 29.1 20 15 10 5 0 17.0 17.0 24.8% 13.4 13.7 20.5 10.0 14.7% 8.4 10.6% 14.2% 11.8% 7.1% 2.7 8.8% 2.1% 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004 * 2003 Consolidated Operating Income excluding one time costs: approx. 9M (7.1% on sales) 24
Consolidated Net Income (% on net sales) M 30 27.2 20 10 0 13.9 15.2% 9.3 9.7% 11.8 10.2% 8.7 9.2% 12.6 10.8% 15.8% 14.1 8.8% 6.5 4.6% -4.4% 16.1 11.4% -10-5.5 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004 * 2003 Consolidated Net Income excluding one time items: approx. 4M (3.2% on sales) 25
Thank you for your attention Web-site: www.saesgetters.com E-mail: investor_relations@saes-group.com