Pierre Brondeau Vice President, Business Group Executive Electronic Materials Regional Director - Europe Lehman Brothers Conference Call November

Transcription

1 Pierre Brondeau Vice President, Business Group Executive Electronic Materials Regional Director - Europe Lehman Brothers Conference Call November 2006

2 Forward Looking Statement The presentation today may include forward-looking statements as that term is defined in securities law, including but not limited to anticipated plans, litigation and environmental matters, currency effects, profitability, and other commitments or goals. Such statements are subject to a number of risks and uncertainties, many of which are listed in Rohm and Haas 10-K filing with the Securities and Exchange Commission. Copies of all recent SEC filings, and additional information about Rohm and Haas, are available through our web site: 2

3 Regulation G The presentation today may include the display of some company data that do not directly conform to generally acceptable accounting principles, or GAAP. Management believes that the presentation of some non-gaap data provides investors with additional insight into the ongoing operations of the business. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies. All non-gaap data in the presentation are indicated by a footnote. Tables showing the reconciliation between the GAAP and non-gaap measures are available, with today s presentation, on the investor section of our web site at 3

4 Agenda Recent Performance Profile 2010 Strategy Highlights Electronic Materials Franchise 4

5 Q Performance.Another Strong Quarter Q3 06 Chg vs Q3 05 Net Sales $2.065 B 7% Gross Margin 29.2% 40bp Earnings from continuing operations $189 MM 16% Earnings Margin 9.2% 70bp EPS (1) $ % Cash from Operations YTD $682 MM $16 MM (1) Diluted earnings per share (in dollars) from continuing operations 5

6 Rohm and Haas Today We Serve a Broad Set of End Markets Food & Retail 2% Building & Construction 29% Paper 4% Packaging 11% Water 7% Automotive & Transportation 9% Electronics 17% Industrial & Other 14% Household and Personal Care 7% 6

7 Organized for the Future 2005 Sales by Segment Current Business Structure Future Business Structure Salt 12% Monomers* 9% Coatings 32% Primary Materials* 11% Salt 12% Paint & Coatings Materials 24% Performance Chemicals 21% Adhesives & Sealants 9% Performance Materials 13% Packaging & Building Materials 23% Electronic Materials 17% Electronic Materials 17% * External Sales 7

8 Strategic Plan 2010 Position Portfolio for Accelerated Growth Build Value Creating Business Models in Emerging Markets Innovate with Market/Customer Focus Operational Excellence/Continuous Improvement Deploy Right Talent in Right Places 8

9 Electronic Materials

10 Electronic Materials Business 2005: Sales $1,332 MM $371 28% $206 15% $755 57% Sales by Segment MM$ Circuit Board Technologies $297 $297 Semiconductor Technologies Packaging and Finishing Technologies

11 Rohm and Haas Electronic Materials Business Profile WAFER SEMICONDUCTOR DEVICE INTERCONNECT/ PACKAGING PCB/ ASSEMBLY END-USE DEVICE Photoresists Anti-reflectants Electroplated Copper Chemistries Low-k Dielectrics (ILD) CMP CMP Ancillary Chemicals Metal Finishes for Connectors & Electronic Devices Electroplated Bump Processes Solderable Finishes Thick Photoresists Dielectrics Microfabrications and Optoelectronic packages Imaging Metallization Embedded Passives Ancillary Chemistries Optoelectronics Lead-free IC lead frames Laptops/PCs Smart Homes Cell Phones Appliances Game Centers Automobiles Mobile Entertainment And thousands of others! 11

12 Rohm and Haas Electronic Materials Global Trends and Business Strengths Trends Growing Demand Rohm and Haas Strengths Manufacturing Migration to Asia Drive for Efficiency (COO) Aggressive Technology Roadmaps Environmental Compatibility Broad portfolio leader in enabling technologies Broad innovation capabilities in advanced materials Robust integration knowledge New growth platforms in flat panel displays and optoelectronics Strong footprint/organization in Asia Commitment to sustainability Customer Value 12

13 Asia-Pacific Region Broad and Growing Presence Sales/Support, Manufacturing, and R&D/Technical Facilities in the Asia-Pacific Region China Dongguan Shanghai S M S R Hong Kong Fanling S M R Taiwan Hsinchu City Taoyuan Hsien S R M R S M R Japan Mie Kyoto Niigata Ohmiya Osaka Tokyo Korea Seoul Cheonan S M R S M R S M R R S S S S M R Malaysia Penang Philippines Manila S Indonesia Jakarata Singapore Thailand S S S S Key S = Sales/Service Facility M = Manufacturing Site R = Research and Development/ Technical Center 13

14 Circuit Board Technologies Global leader in products/processes for printed circuit boards Core strengths in metallization and imaging Leverage innovation to enable enhanced performance High-density interconnect technologies High-throughput technologies Green chemistry portfolio Global operation and talent footprint positioned for growth 14

15 Circuit Board Technologies 2005 Sales - $297 Million HISTORICAL PERFORMANCE ( ) Drivers Migration to Asia Smaller, higher density capacity boards POSITIONING FOR GROWTH ( ) Drivers Smaller, higher density capacity boards Continued migration and growth in Asia DEMAND CAGR 2% Actions Downsized infrastructure in Europe and United States Divestment of marginal product lines/ Dry Film Business Focus on technology differentiated segment (metallization) Build infrastructure and talent in Asia Business performance raised to levels comparable to the rest of Electronic Materials portfolio DEMAND CAGR 6% to 8% Actions R&D/ selectively expand product lines Accelerate technology shift to Asia Continued investment in Asian infrastructure Talent development in Asia RESULTS Growth EBITDA% ROCE RESULTS Growth EBITDA% ROCE 15

16 Transformed Circuit Board Technologies CAGR 2% CAGR 65% E Earnings Sales 16

17 Semiconductor Technologies Innovation Focused on Advanced Semiconductors 160 Advanced Technology Nodes 140 Millions of Wafer Starts Year >350 nm 250 nm 180 nm 130 nm 90 nm 65 nm 45 nm Source: Semico 17

18 Semiconductor Technologies World-class leader in enabling products and processes for semiconductor and related industries. Advanced pad and slurry technologies for planarization and polishing semiconductors, wafer substrates, and storage media. Wide range of innovative material solutions for semiconductor manufacturers: Advanced photoresists, anti-reflectants, developers, electroplating chemistries, low-k dielectrics. Global network of research, technical service, manufacturing, and supply chain. 18

19 Semiconductor Technologies 2005 Sales - $757 million HISTORICAL PERFORMANCE ( ) Drivers Strong growth in electronics industry Less cyclicality/industry beyond computers Positive market trends Migration to Asia DEMAND CAGR 13% Actions Advanced technology products Broadened product line Market share gains (Advanced Technologies) Strong infrastructure and Talent (particularly Asia) RESULTS Growth EBITDA% ROCE POSITIONING FOR GROWTH ( ) Drivers Continued growth and diversification of end-use markets for semiconductors DEMAND CAGR 13% to 15% (excl. M&A) Actions Accelerate investment Broaden product offerings RESULTS Growth EBITDA% ROCE Continued migration to Asia Enhance Asian infrastructure High technology products Build a fast growth flat panel display platform 19

20 Packaging and Finishing Technologies Innovations in advanced packaging, plating, and finishes Solderable Lead-free Finishes for conventional IC packaging. Solderable Lead-free Finishes for fixed capacitors. Decorative Finishes Corrosion resistant finishes for automotive. Protective tin plating for steel. Green alternatives to chrome. Durable Finishes for fixed and removable connectors. New Materials for IC Packaging Chip size packages. Wafer level packaging. 20

21 Packaging and Finishing Technologies 2005 Sales - $278 million HISTORICAL PERFORMANCE ( ) Drivers Growth across a broad range of electronic applications Migration to Asia Demand for advanced packaging technology DEMAND CAGR 10% (excl. Precious Metals) Actions Broad range of product lines Strength in lead-free technology Downsized European and North American infrastructure Build a strong infrastructure and talent base in Asia Leverage core technology capabilities (e.g. metallization) RESULTS Growth EBITDA% ROCE POSITIONING FOR GROWTH ( ) Drivers Continued Migration to Asia Environmentally friendly technologies Need for advanced products DEMAND CAGR 10% TO 12% (excl. Precious Metals) Actions Continued investment in Asian technical and commercial organization Increase Asian Manufacturing footprint as needed Retain leadership in areas such as lead/heavy metal free technologies Retain technology leadership in advanced packaging; develop optoelectronic packaging RESULTS Growth EBITDA% ROCE 21

22 Flat Panel Display Technologies Enabling the Perfect Picture Electronic Materials Core Technologies Electrochemistry Particle Engineering Photochemistry Polymer Technology Surface Science Product Families Photolithography TFT Photoresists ITO & Chrome Etch Resists MVA Patterning Resists CMP LCD glass polishing pads Color Filter Pads & Slurry Ancillaries Resist Developer Resist Strip Polymer Removers Polymers Backlight Diffuser Particles 22

23 Rohm and Haas Electronic Materials Strategy and Focus R&D Driving Advanced Technology Semiconductor, Circuit Board, Packaging & Finishing, and Flat Panel Display Healthy pipeline Advantage of integration knowledge Participate in Roadmap Development Drives integration knowledge and builds partnerships Joint development alliances Determines future market share percentage and value Asia Talent, infrastructure, and technology Further our position in Asia-Pacific Region Growth in China and surrounding countries 23

24 Thank you.