oerlikon components –enabling information technology 2008-09-26 · (russia, india, vietnam)...

Oerlikon Components – Enabling Information Technology

Kurt Trippacher, CEO Oerlikon Components & Head of Oerlikon Esec

Oerlikon Capital Market Days 2008Zurich, September 25-26, 2008

Oerlikon Capital Market Days 2008

Disclaimer

This presentation is based on information currently available tomanagement. The forward-looking statements contained herein could be substantially impacted by risks and influences that are not foreseeable at present, so that actual results may vary materially from those anticipated, expected or projected.


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Agenda

§ Overview Components

§ Oerlikon Esec at a Glance

§ Markets & Strategy

§ Key Take Aways


Segment Oerlikon Components

The business activities of Oerlikon Components include applications and technologies,fulfilling the requirements of highest precision and accuracy.

Provider of payload fairings for launch vehicles, spacecraft structures, mechanisms and electro-optical systems.

Provider of system solutions and equipment for theback-end market of the chip manufacturing industry.


Agenda




§ Key Take Aways


Oerlikon Esec at a glance

§ Leading in epoxy and soft solder die bonder, one of the top providers of wire bonder and flip chip bonder

§ Approx. 580 employees within its global footprint

§ Organization– Product lines: Die Attach (Epoxy, Soft Solder, Flip Chip and Wire Bonder) – Strong global functions:

Sales and Services, Operations, Global Sourcing and R&D

– Complemented by dedicated management support functions

§ Asia represents the largest market for Oerlikon Esec (approx. 80%),Europe and the US remain strategically important


Agenda




§ Key Take Aways


Touching your life for more than 40 years...


Think about all the products you use today….

Oerlikon Esec is present in many areas of your life!

CONSUMER ELECTRONICS• Cell Phones• Gaming• Televisions• Digital Camera’s• MP3 Players• Home Appliances

COMPUTERS• Lap Tops• Workstations• Mainframes• Peripherals

INDUSTRIAL/MEDICAL• CAT Scans• Hearing Aids• Pace Makers• Radar• Satellites

AUTOMOTIVE• Transmissions• Climate Controls• Cruise Controls• ABS• GPS• On-Board Diagnosis


Where is Oerlikon Esec positioned in market?

Electronics: USD 1,560 billion

SemiconductorsUSD 217 billionSemiconductorEquipmentUSD 56.9 billion

Wafer Fab & TestEquipment USD 53.1 billion

Assembly & PackagingEquipmentUSD 3.8 billion

Addressed MarketUSD 1.65 billion

(Source: VLSI Research, figures for 2007)


What do we do?

WaferFab

WaferMount,

Dice

Die Attach Cure Wire

Bond

encaps.mold

singu-late

trim &form

test,burn-inpack,ship

boardassembly

MoldTrim

& Form

Semiconductor Assembly Steps

Oerlikon Capital Market Days 20082001 2002 2003 2004 2005 2006 2007 2008

COMPUTERS• Lap Tops• Workstations• Mainframes• Peripherals

CONSUMER ELECTRONICS• Cell Phones• Gaming• Televisions• Digital Camera’s• MP3 Players• Home Appliances

AUTOMOTIVE• Transmissions• Climate Controls• Cruise Controls• ABS• GPS• On-Board Diagnosis

INDUSTRIAL/MEDICAL• CAT Scans• Hearing Aids• Pace Makers• Radar• Satellites

• It is estimated that the average person used products containing less than 15 semiconductors 25 years ago.

• Today, the average person uses products which will contain over 150 semiconductors every day!

Existing Semiconductor drivers

Mill

ions

Sem

icon

duct

or U

nits

DOUBLE DIGIT CAGR


2001 2002 2003 2004 2005 2006 2007 2008 2009

Future drivers of semiconductor industry

Mill

ions

Sem

icon

duct

or U

nits

DOUBLE DIGIT CAGR

EXISTING MARKETS

§ Consumer§ Computer§ Automotive§ Industrial

EMERGING MARKETS

Hybrid Automotive

• Pocket Computing• Mobile Computing

• Photovoltaics• Solar Concentrators


Market dynamics

§ Semiconductor Equipment Industryis Highly Cyclical, but Positive CAGR

MarketVolatility

§ Smaller Consumer Goods Demands Smaller Semiconductor Packages withHigher Levels of Performance

iPod Nano

PackagingTrends

§ Customer’s strive toDouble Performance at Equalto Less Cost Every Two Years

PerpetualNeed for NewTechnology


Market dynamics

§ Equipment Suppliers are Forced to Rapid Development Cycles to Meet Market Demands & to Stay Ahead ofCompetition § Innovation and Cost Reduction is Vital

Highly Competitive

§ High Volume Manufacturing in Asia§ Strategic Alliances & New Technology

from US and Europe§ New Emerging Markets

(Russia, India, Vietnam)

Globalization

§ Fluctuations Will Impact Top Line &Bottom Line Performance

Exchange Rate Fluctuations


How is Oerlikon Esec ready for the market challenges?

MarketVolatility

PackagingTrends

Perpetual Need forNew Technology

Globalization Exchange Rate Fluctuations

Highly Competitive

GLOBAL FOOTPRINT OPERATIONAL EXCELLENCE

INNOVATION & TECHNOLOGY PRODUCTS


Innovation & technology – Example die attach

ϕPick

Bond

y

Pick & Place

Innovation

Customer benefit

Company benefit

Parallel moves: Phi (swing) and Y

Highest UPH (units per hour)

Unique selling proposition, IP protected


Innovation & technology – Example wire bonding

Rotative and Air Beared Bond Head

Innovation

Customer benefit

Company benefit

Frictionless, low weight & high acceleration at same time

Maintenance free, high productivity & accuracy

Unique selling proposition, IP protected


• Unsurpassed speed at 20um accuracy• Reliable working horse with highest uptime • Highest flexibility due to fastest product

change over

Die Bonder 2100

Most modern fleet in the market – 3 platform strategy

Introduction of new Flip Chip Version in Q1/09

• Best available DB for advanced power packages

• Highest productivity for Matrix application• Best Soft Solder Process Control

Soft Solder DB

• Highest available process repeatability• One platform for all applications• Maintenance free, unique bond head design

Wire Bonder 3200

Introduction of new Soft-Solder in Q4/08

Introduction of Copper Bonding process in Q4/08


Operational excellence – Example “Lean Manufacturing”

Lean Manufacturing Program expands scope into supply chain and R&D

Cycle Time

Inventory

Production lead time reduction by 50-80%

Inventory reduction of 25-50%

Productivity Productivity improvement up to 20%

Enter ThetaBox

Y-coilPCB’sCablingTest

bench 2

Test bench 1

Final test

Test bench 3

Test bench 4

Main flow

• Box• Sensor• T-Motor• Scale• MTC

• T-bearing top• T-bearing bottom T-axis

• Rotary carrier (single parts)• Reset Z-axis (single parts)• Z-stator• Y-encoder

Optic-carrier

• Air bearing focus assy.• PSD LED• Theta-scale holder• Optic carrier• VS tread assembly• Side light• ….

Cabling• Coupling mass (single parts)

• Coil

• Left cable harness (single parts)• Right cable harness (single parts)• Cable fixture• Cross bar

Opt

ics

• Z-axis (single parts)

Z-axis

Gluing Service

ESUS

demand-driven production


Global Footprint – Transformation into a balanced set-up

Increased customer proximity

R&DOperations & Global Sourcing

Product line Management

Innovations made in CH with R&D expanding to AsiaLean processes and operations; driving natural hedge increases and total cost reductions

Leading edge products and excellent customer support levels

Sales & Service Manufacturing HQ

Sales & Service High expertise level close to our customers.Product installation, application and process support


Customer and market recognitions in last two years

ST Microelectronics (Shenzhen) 2007 Best Supplier

VLSI 2007 Best Equipment Supplierin China

Infineon (Malaysia) 2007 Top Supplier AwardAsia Pacific

ST Microelectronics (Shenzhen) 2006 Best Service Support

Spansion (USA) 2006 Spansion Spotlight Award(World Class Supplier)

Offered by For year CategoryImage


Agenda




§ Key Take Aways


Long term improvement pathShipments & Forex

§ Significant natural hedge improvementsand capability build up in Asia

§ Market downturn and unfavourableFX impact in 2008

§ Requires acceleration of restructuringand transformation measures

2005 2011 E2008

LCC HCC

2005 2008 E 2010 E

Natural Hedge II: LCC Sourcing

Natural Hedge I: Regional Workforce

50100150200250300350400450500550600650700

2004 2005 2006 2007 2008E 2009E 2010E

-26%

Asia: +33%

2005 2006 2007 2008 E 2009 E 2010 E

Uni

t Shi

pmen

ts

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

1.30

USD

-CH

F Ex

chan

ge R

ate

HCC LCC

Europe: -46%

2005 2006 2007 2008 E 2009 E 2010 E

LCC sourcing and design-to-costlower COGS by 8-10% p.a.


Due to market downturn and FX impact:Acceleration of restructuring measures and transformation

Product portfolio improvements & product offensive – „3 platform strategy“

New Die Bonder Epoxy 05/08New Soft Solder Q4/08Wire Bonder 3200 Copper Q4/08

New Flip Chip Q1/09

Continuous releases ofnew applications and processes 2009

ü

Fixed cost reductions, natural hedge, organizational simplifications and improvements

2008 2009 - 2010

Capacity adjustments 16%Workforce Asia (from 26% to) 45%Fixed cost reduction 14%LCC sourcing content 30%

Further org. developments and adj. ~10%Increase share >50% Additional fixed cost reduction ~10%LCC sourcing content >60%

üüüü


Oerlikon Esec: Key take aways

-30%-20%-10%

0%10%20%30%

2008 2009 2010

Assembly Packaging Market Growth FC

VLSI Research (September 2008)

SEMI (July 2008)

Gartner (September 2008)

2005 - 2008

New competitive, flexible global footprintestablished and product fleet renewal implemented

Positioned to minimize external influences andprofitably grow above market growth, due to:

§ Leading edge products and technology§ Combined with flexible and optimized

cost structures§ Customers demand fulfilment with

below market response time

2009 - 2010

oerlikon components –enabling information technology 2008-09-26 · (russia, india, vietnam)...

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