Electronic Technologies Business Overview David B. Miller Vice President & General Manager September 28, 2005
Forward Looking Statement During the course of this meeting we may make forward-looking statements. All statements that address expectations or projections about the future are forwardlooking statements. Some of these statements include words such as expects, anticipates, plans, intends, projects, and indicates. Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. We urge you to review DuPont s SEC filings, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, for a discussion of some of the factors which could cause actual results to differ materially. Regulation G The attached charts include company information that does not conform to generally accepted accounting principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the company and allows investors to better evaluate the financial results of the company. 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. This data should be read in conjunction with the company s earnings news release, dated July 26, 2005, for the second quarter which has been furnished to the SEC on Form 8-K, and which is available on the Investor Center of www.dupont.com. 1
Glossary 2 DuPont Electronic Technologies Businesses EP: Electronic Polymers EKC: EKC Technology HPM: High Performance Materials MCM: Microcircuit Materials PCM: Printed Circuit Materials DANM: DuPont Air Products Nanomaterials HDMS: HD Microsystems (Hitachi-DuPont) Technical Terms ARC: Anti-Reflective Coating BGA: Ball Grid Array CMP: Chemical Mechanical Planarization CSP: Chip Scale Package Cu: Copper FC: Flip Chip FED: Field Emission Display IC: Integrated Circuit; Semiconductor LCD: Liquid Crystal Display PDP: Plasma Display Panel PKG: Package PWB: Printed Wiring Board QFP: Quad Flat Pack TMT: Transfer Materials Technology
DuPont Electronic Technologies - Overview Microcircuit Materials Business Portfolio Printed Circuit Materials Business Description: Mission: Become Business a Description: leader in enabling the fabrication and connection of ICs to the outside world by extending from circuit materials into IC packaging and IC fabrication materials Industries Served: Communications, Computer, Automotive, Military, Consumer, Medical Employees 2250 Manufacturing Sites: 20 Technology Centers 11 Joint Ventures/Alliances 9 3 Semiconductor Fabrication Europe Americas High Performance Materials Asia Geographic Sales
DuPont Electronic Technologies - Global Reach 4 Manufacturing Site R&D Center
High Performance Materials 5 A leading supplier of polyimide film and flexible polyimide laminate used in flexible circuits, wire/cable, and specialty parts enabling portability and function in electronic systems. (Brands: Kapton, Pyralux, Microlux ) Segments: Consumer, telecom, computer, automotive, aerospace and military electronics.
Microcircuit Materials 6 A leading supplier of thick film compositions that enable miniaturization and improved functionality in electronics, displays and communication systems. (Brands: Fodel, Solamet, GreenTape, Birox ) Segments: Automotive Reliability and Safety, Telecom/ Wireless, Military, Displays, Solar Cells, Embedded Passives, and other specialty applications
Printed Circuit Materials 7 A leading supplier of dry film photoresist and photo-tooling film enabling high density printed wiring boards. (Brand: Riston ) Segments: Printed wiring boards for all electronic equipment applications, chemical milling.
Semiconductor Fabrication Materials 8 A leading supplier of removers, polymers for advanced photoresists, polyimide stress buffers, and CMP and silicon polishing slurries that enable advanced semiconductors. EKC Technology Electronic Polymers HD Microsystems DuPont-Air Products Nanomaterials Segments: Photoresist makers and semiconductor fabricators
Electronics Supply Chain 9 Semiconductor Design Semiconductor Manufacturing Semiconductor Packaging PWB Materials & Manufacturing Solutions PWB Subassemblies Electronic Assembly Note: Area of focus Electronic Equipment Systems
Electronic Industry Value Chain (2005) 10 Electronic Equipment $1312Bn Computers $415Bn Communications $270Bn Other Electronics $627Bn Electronic Components $519Bn IC/Semiconductors IC/Semiconductors Package & Test PWB/ Interconnect Substrates Passives Photonic Devices Data Storage Flat Panel Displays Batteries Connectors, Wires, Heat sinks, etc. Electronic Materials $86Bn Fab Materials Wafers, Bulk Gas, Spec Gas, Wet Chem, CMP, Trgt/Precursor, Resists, Ancillaries, Masks Packaging Materials Leadframes, Mold Comp, Die Attach, Encaps, Substrates Interconnect Materials Laminate, Resist and Ancillaries, Ceramic Modules, Solder Masks, Strip and Etch, Plating Chem Passive Materials Embedded Passives, Powders, Electrode Metals, Film, Foil, Separator Photonics Optical Fiber, Glass, Dielectrics, Substrates, Semi Materials Data Storage Disk Substrates, Film Substrates, Mag Materials, Record Heads Flat Panel Displays Glass, Color Filters, Films, Optical Element, Resists, Polymers, Precursors, Thick Film Mat Batteries Lithium, Carbon, NiCad, Film, Metal Can Assembly, Thermal, EMI Solder Paste, Interface Materials, Gaskets, Adhesives Industrial Materials $28Bn Metal Strip, Petrochemicals, Acids, Salts, Ferrosilicon, Oxide Powders, etc. Raw Materials $14Bn Source: Prismark 2005, Henderson Electronic Outlook, DuPont Internal Oil, Gases, Silica, Bauxite, etc. Red Text = DuPont Participation n83.034bes
Selected Materials & Components Markets 11 IC Fabrication WW Growth Circuits, IC Pkg, WW Growth Shipments (CAGR) Displays Shipments (CAGR) Silicon Wafers $8B 8% Flexible Circuits $7B 10% Wet Chemicals $800M 4% PWB Laminate $3B 4% Specialty Semi Gases $1B 5% PWB Dry Film Resist $600M 4% IC Photoresists $950M 8% LCD Displays $43B 16% Advanced IC Photoresists $500M 15% PDP Displays $5B 25% CMP Materials $600M 12% BGA Substrates $5B 8% Remover Chemistry $350M 8% IC Molding Compounds $1B 2% Bulk Gases $1B 4% Passive Components $39B 7% Sources: Dataquest, Prismark, DisplaySearch, SEMI, Techcet, Others Red Text = DuPont Participation
Market Direction (Last 12 Months/Current Trends) 12 End Markets & Systems Components Geography Cell Phones +/+ Integrated Circuits 0/+ Americas -/0 Telecom Infrastructure -/0 Circuits/Packaging +/+ Europe 0/0 Computers +/+ Flat Panel Displays +/+ Japan +/0 Auto +/0 SE Asia +/+ Military +/0 China +/+
Evolution of the Complexity of Integrated Circuit Packages Plastic Quad Flat Pack 13 Wire bonded to lead frame IC Ball Grid Array IC Wire bonded to circuitized substrate, leads replaced with solder bumps Flip Chip IC IC PKG Circuit Wire bonds replaced with solder bumps by flip clip technology, circuitized substrate that will include embedded passives devices in the future (e.g., resistors, capacitors)
Industry Trends are Continually Creating New Opportunities Key Device Trends New Capabilities Needed 14 Increasing Speed/bandwidth Drive toward personal portability (wireless, handheld) Increasing functionality, density, and miniaturization Continuing Cost Pressures More demanding thermal management Thin, Large Area Displays Semiconductor Fabrication Chemical Mechanical Planarization (CMP) Copper Interconnect Advanced Photolithography Systems (e.g., resist polymers, ARC polymers, immersion fluids) Semiconductor Packaging Embedded Passives High-Speed Substrates (low loss laminates) Microvia Dielectrics Thermal Solutions Flat Panel Displays Plasma Display Materials Next-Gen Technology (e.g., FEDs) MFG Shift to Asia
Strategy Summary 15 Leverage DuPont Science and our strong circuit materials position (and emerging IC fabrication materials position) into Semiconductor Fabrication, Semiconductor Packaging, and Large Area Displays Key Strategic Elements: Become more relevant to the semiconductor industry by leveraging DuPont science and M&A into select opportunities Develop/acquire critical products/ technology to enable next generation integrated IC packages Capture growth from the increasing complexity of ICs and packages and the interaction between the two Commercialize new technologies for large area displays (e.g., FED, TMT) Strengthen Asia Pacific capability Semiconductor Fabrication Applications Lab Production (e.g., Kapton, Microlux, Pyralux ) Displays Applications Lab 13% 1% 5% 16% 2001 Revenue Semiconductor P&C Displays Semiconductor Fab 94% 2005 Revenue Semiconductor P&C Displays Semiconductor Fab 71%
DuPont s Electronic Pipeline 16 Immersion Lithography Fluids Advanced Lithography for Packages FED Materials Advanced Photolithography Polymers Next-Generation Photovoltaic Conductors Advanced Laminate Materials Copper Remover Copper-Based CMP Slurries Embedded Passives Next-Generation PDP Conductors Early Development Adv. Development Early Launch Target Markets IC Fabrication IC Packaging & Interconnect Displays
Financial Performance History and Forecast 17 02-04 04-05 Revenue CAGR 28% 9% Sales ($MM) 2000 2001 2002 2003 2004 2005 Outlook