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Filed by: MKS Instruments, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 of the
Securities Exchange Act of 1934
Subject Company: Applied Science and Technology, Inc.
Exchange Act File No. 0-22646
MKS Instruments, Inc.
Around the Process...
Around the World...
Strategic Acquisition of ASTeX, October, 2000
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Safe Harbor Passage
This presentation may contain forward-looking statements that are made under the
safe harbor provisions of the Securities Litigation Reform Act of 1995. Such
statements are estimates which involve risks and uncertainties. Actual results
may vary significantly from those stated in forward-looking statements. Further
information regarding risk factors can be found in the Company's filings with
the Securities and Exchange Commission.
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John Bertucci
Chairman & CEO
MKS Instruments
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Transaction Summary
[ ] $300M acquisition of ASTeX
[ ] 100% Stock and assumption of debt/cash
[ ] Ownership
[ ] 70% MKS Instruments
[ ] 30% ASTeX
[ ] Exchange Ration
[ ] 0.7669 MKSI shares per ASTeX common share
[ ] Pooling of interests
[ ] Expected Closing: December 2000
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Complementary Technologies ... Integrated Solutions
[MKS logo omitted]
[ ] #1 supplier of gas process control instruments to semiconductor OEMs
and Fabs
[ ] Market Value ~$700M
[ ] 30 years of consecutive profitability, revenue CAGR 18% for 20 years
[ ] World-class global infrastructure
[ASTeX logo omitted]
[ ] #1 supplier of reactive gas solutions to semiconductor OEMs
[ ] Market Value ~$210M
[ ] 5-years revenue CAGR 48% (3x industry growth rate)
[ ] Broad, deep, technically experienced management team
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Strong Strategic Fit
Around the Process
[Diagram of process chamber including the following MKS products:
Specialty gases flowing through Mass-Flo(R) Gas Panel Instruments
Gas Box Instruments
Materials Delivery System
Control Valve
Shut-off Valve
Process Monitor
Baratron(R) Pressure Measurement
Adaptive Controller
HPS(R) Vacuum Components/Subsystems]
[Diagram of process chamber described above, adding on each of the ASTeX
products:
Power Generators
ASTRON Reactive Gas Generators
Ozone Generator]
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Strategic Rationale
[ ] One-stop Solution Leader
[ ] Most comprehensive product offering
[ ] Strengthens Competitive Positioning
[ ] Integrated solutions leader
[ ] Most comprehensive offering
[ ] Enhanced critical mass
[ ] Combines complementary core technologies
[ ] Builds on leading global infrastructure
[ ] Revenue Synergy Upside
[ ] 100% complementary product offerings
[ ] Cross-selling opportunities
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Strategic Rationale
[ ] Strong Financial Position
[ ] $388 million in revenues (Combined companies, LTM)
[ ] $157 million cash (Combined companies, June 30, 2000)
[ ] Positioned for additional acquisitions
[ ] Accretive to MKS' earnings (without synergies)
[ ] Cost Synergy Upside
[ ] Leverage global infrastructure
[ ] Leverage MKS' lean manufacturing
[ ] Leverage supply chain management
[ ] Leverage R&D investment
[ ] Enhanced Growth Platform
[ ] Depth of combined management team and technology
[ ] Complementary core competencies
[ ] Strong geographical and cultural fit
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Clinical Process Technologies
[First part of diagram shows the following semiconductor processes:
RTP Etch
Epi Ion Implant
SEM Diffusion
Vacuum Processes Strip
PVD CVD]
'virtually every chip in the world is made with MKS products'
[Diagram shows the following semiconductor processes:
RTP Etch
Ion Implant Strip
CVD Clean]
'virtually every chip in the world is made with ASTeX products'
[Second part of diagram shows applications, other than semiconductor, which are
made using the same process, specifically
Flat Panel Displays
Micro-Machined Devices
Magnetic/Optical Storage Media
MRI
Freeze Dried Pharmaceuticals
LEDs
Optical Filters & Fibers
Sterilized Medical Instruments
Solar Cells
Lasers]
[Third part of diagram shows the growing markets that use these products,
specifically
Telecommunications
Internet Infrastructure
Consumer Electronics
Pharmaceutical & Medical
PCs
Automotive
Electronics]
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MKS Core Products
Around the Process
[Diagram of process chamber including the following MKS products:
Specialty gases flowing through Mass-Flo(R) Gas Panel Instruments
Gas Box Instruments
Materials Delivery System
Control Valve
Shut-off Valve
Process Monitor
Baratron(R) Pressure Measurement
Adaptive Controller
HPS(R) Vacuum Components/Subsystems]
[Diagram of process chamber described above, adding on each of the ASTeX
products:
Power Generators
ASTRON Reactive Gas Generators
Ozone Generator]
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Product Integration
Around the Process
[Diagram of process chamber including the following integrated products:
Integrated Vapor delivery
Digital control network
Integrated wafer power & cooling
Integrated vacuum foreline cleaning]
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Comprehensive Product Offerings
[Pictures of the following products omitted
[ ] Pressure Measurement and Control Products
[ ] Vacuum Products
[ ] Materials Delivery & Analysis Products
[ ] ASTeX Products
[ ] Integrated Subsystems]
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Customer & Market Diversity
4,000+ Active Customers Worldwide
<TABLE>
<CAPTION>
Semiconductor Capital Equipment Semiconductor Manufacturers
--------------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C>
[ ] Applied [ ] Lam Research [ ] AMD [ ] Mitsubishi [ ] ST
Materials Microelectronics
[ ] ASM [ ] Novellus [ ] Fujitsu [ ] Motorola [ ] Siemens
[ ] Axcelis [ ] PSK [ ] Hitachi [ ] National Semi [ ] TI
[ ] Gasonics [ ] Quester [ ] Hyundai [ ] NEC [ ] Toshiba
[ ] Genus [ ] Semitool [ ] IBM [ ] Philips [ ] TSMC
[ ] Hitachi [ ] SVS [ ] Intel [ ] Samsung [ ] UMC
[ ] Jusung [ ] Tokyo Electron [ ] Micron
[ ] ULVAC
[ ] Varian
</TABLE>
<TABLE>
<CAPTION>
Specialty
Data Storage and FPD Gas Suppliers Diverse Vacuum Processes
---------------------------- ----------------- ------------------------------------
<S> <C> <C> <C> <C>
[ ] AKT [ ] NEC [ ] Air Liquide [ ] Abbott [ ] GE
Labs
[ ] Alcatel [ ] Seagate [ ] Air [ ] Delco [ ] Johnson & Johnson
Products
[ ] Anelva [ ] Sharp [ ] BOC [ ] Ford [ ] OSRAM
[ ] CVC [ ] Toshiba [ ] Kinetics [ ] Westinghouse
[ ] Komag [ ] Unaxis [ ] Nippon
Sanso
[ ] Lucent [ ] Veeco [ ] Praxair
</TABLE>
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Top 10 Customers (LTM)
MKS ASTeX Combined
-------------------------------------------------------------------
Applied Materials Applied Materials Applied Materials
Axcelis Chipbond Chipbond
Hitachi FSI Gasonics
Intel Gasonics Lam
Lam J & J Novellus
Motorola Lam Philips Med.
Novellus Philips Med. SVG
Samsung SVG TEL
TEL Ulvac Ulvac
Ulvac Varian Varian
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Leaders in Growing Market
[Pie chart showing total available market, served market and MKS and ASTeX
shares of served market]
Served Market ~$750M (1999)
MKS ~25%
Served Market ~$1450M (1999)
[Pie chart indicates MKS and ASTeX portion of market]
Total Market Around the Process
~$3.5bn (1999)
~$5.5bn (2000) est.
[Pie chart indicates MKS and ASTeX portion of market]
Source: AVEM, SEMI, Company Estimates
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Competition
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
Pressure
Measurement & Vacuum Reactive Gas Power
Control Materials Delivery and Analysis Products Generators Generators
<S> <C> <C> <C> <C> <C>
--------------- ------------------------------- ------------- ------------- ----------------
Flow Control Gas Analysis
--------------- --------------- -------------- ------------- ------------- ----------------
[ ] MKS [ ] MKS [ ] MKS [ ] MKS [ ] ASTeX [ ] ASTeX
--------------- --------------- -------------- ------------- ------------- ----------------
[ ] Millipore [ ] Aera [ ] Inficon [ ] Edwards [ ] AE [ ] AE
--------------- --------------- -------------- ------------- ------------- ----------------
[ ] Millipore [ ] * Spectra [ ] Helix [ ] Ebara [ ] Analogic
--------------- --------------- -------------- ------------- ------------- ----------------
[ ] STEC [ ] Inficon [ ] Sumitomo [ ] Daihen
--------------- --------------- -------------- ------------- ------------- ----------------
[ ] Unit [ ] MDC [ ] ENI
Instruments
--------------- --------------- -------------- ------------- ------------- ----------------
[ ] Nor-Cal
--------------- --------------- -------------- ------------- ------------- ----------------
[ ] Varian
--------------- --------------- -------------- ------------- ------------- ----------------
</TABLE>
* Acquired by MKS
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Established Global Infrastructure
[Diagram of world showing locations of MKS and ASTeX facilities.]
[ ] 12 Manufacturing Facilities
[ ] 22 Customer Support Centers
[ ] Provides SG&A Leverage
[ ] ASTeX Locations
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Richard Post, Ph.D
Chairman & CEO
ASTeX
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ASTeX Growth Drivers
[ ] Increased customer reliance on suppliers for value-add
[ ] Higher level of integration
[ ] Increased outsourcing by semiconductor equipment OEMs
[ ] New etch and deposition systems increase available market
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ASTeX semiconductor equipment subsystems
[ ] Reactive gas products for deposition, etch and cleaning
[ ] RF, DC and microwave power sources
[ ] Semiconductor
[ ] Medical
[ ] Lasers/Optoelectronics
[Pictures of the following ASTeX subsystems omitted
ASTRON(R)
Ozone
Microwave
RF]
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ASTeX product line expansion accelerates revenue growth
[Graphical display of revenue growth from $8.4m FY in 1993 to $140m (LTM) in
2000 indicating the year in which the following products were introduced
RF generator
Orbital planetary PVD
PVD system
Single chamber etch/CVD
Batch reactor etch
Microwave match
Microwave applicator set
CPS microwave
Microwave OEM
Microwave
ASTRON abatement
ASTRON chamber clean
4 channel RF/microwave
300 mm ozone generator
Low dopant ozone
Dissolved ozone
Integrated ozone delivery
Semozon
Ozone generator]
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ASTeX expanding customer base
[Graphical display of the years 1992 to 2000 in which the development and
production of products occurred for the following major customers
DNS
TEL
ASM, JuSung, others
PSK
Novellus
Lam
SVG, Quester
Ulvac
GaSonics
Applied Materials]
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Case study: ASTeX Penetration at Applied Materials
[Graphical display of the years 1992 to 2000 in which development and production
occurred for Applied Materials relative to the following chambers
Chamber #1
Chamber #2
300 mm
Chamber Clean
Deposition
Chamber #3
Chamber Clean
Deposition
Chamber #4
Chamber #5
Chamber Clean
Deposition
Chamber #6
Chamber #7
Chamber #8]
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Ron Weigner
VP & CFO
MKS Instruments
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Key Financial Statistics
(LTM, June 30, 2000/$M)
<TABLE>
<CAPTION>
---------------------- ------------ ------------- ---------------
MKS ASTeX Combined
---------------------- ------------ ------------- ---------------
<S> <C> <C> <C>
Revenue $248.2 $139.9 $388.1
---------------------- ------------ ------------- ---------------
EBIT 50.7 19.4 70.0
---------------------- ------------ ------------- ---------------
Pro Forma Net Income 33.1 14.0 47.1
---------------------- ------------ ------------- ---------------
Shareholder's Equity 154.3 159.1 313.4
---------------------- ------------ ------------- ---------------
</TABLE>
[ ] Slightly accretive without synergies
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Combined Capitalization
(June 30, 2000/$M)
<TABLE>
<CAPTION>
---------------------- ------------- -------------- ------------
MKS ASTeX Combined
---------------------- ------------- -------------- ------------
<S> <C> <C> <C>
Debt $29.3 $9.6 $38.9
---------------------- ------------- -------------- ------------
Equity 154.3 159.1 313.4
---------------------- ------------- -------------- ------------
Cash 65.8 91.2 157.0
---------------------- ------------- -------------- ------------
Current Market Value 700 210 910
---------------------- ------------- -------------- ------------
</TABLE>
Source: Financials as of June 30, 2000, Market Value as of September 29, 2000
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Combined Management Strength
<TABLE>
<CAPTION>
Career Years
------------------ -----------------------------------------------------------
<S> <C> <C>
John Bertucci Chairman, CEO 35
Peter Younger President, COO 25
Ronald Weigner Vice President, CFO 32
William Stewart Corporate VP/GM, Vacuum Products 30
Joseph Maher Corporate VP/GM, Pressure Measurement/Control 26
Robert Klimm Corporate VP/GM, Materials Delivery/Analysis 24
Leo Berlinghieri Corporate VP, Customer Support Operations 24
Donald Smith Corporate VP, Chief Technical Officer 13
Gerald Colella Corporate VP, Business Operations 23
Paul Blackborow Corporate VP, Marketing 18
------------------ -----------------------------------------------------------
Dick Post Chairman, CEO 27
John Ross President, COO 30
Bill Hurley Sr. Vice President, CFO 32
Jack Schuss Vice President, Engineering 23
Stanley Burg Sr. Vice President, Systems 35
</TABLE>
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Summary
[ ] One-stop Solution Leader
[ ] Strengthens Competitive Positioning
[ ] Revenue Synergy Upside
[ ] Strong Financial Position
[ ] Cost Synergy Upside
[ ] Enhanced Growth Platform
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MKS Instruments, Inc.
Around the Process...
Around the World...
These documents and amendments to these documents have or will be filed with the
United States Securities and Exchange Commission. When these and other documents
are filed with the SEC, they may be obtained free at the SEC's web site at
www.sec.gov. You may also obtain for free each of these documents (when
available) from MKS by directing your request to Ronald C. Weigner, Vice
President and Chief Financial Officer of MKS at (978) 975-2350, or from John
Tarrh, Vice President and Treasurer of ASTeX at (978) 284-4135.
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