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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...
Slide # 1
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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 risks factors can be found in the Company's filings with
the Securities and Exchange Commission.
Slide # 2
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Company Highlights
- Largest supplier of gas process control instruments to semiconductor OEMs and
Fabs
- High-value, integrated product offerings for diverse markets
- World-class global infrastructure
- Strong financial results
- 30 years of consecutive profitability
Slide # 3
<PAGE> 4
Strong Progress as a Newly Public Company
- Grew 34% in 1999, compared to 19% for the semiconductor capital equipment
industry
- Increasing revenues and earnings for 8 quarters
- Significant new products launched
- Completed four acquisitions:
- Compact Instruments
- Telvac
- Spectra International
- D.I.P. Inc.
- Announced acquisition of ASTeX
- Enhanced already strong management team
Slide # 4
<PAGE> 5
The MKS Growth Opportunity
[Diagram showing MKS growth opportunities through
- Secular market growth
- Market share gains
- New product development & acquisition
and a total market of approximately ~$5.5B]
[Graphical display of semiconductor capital equipment growth, as shown more
fully in slide # 7]
[Diagram of process chamber, as shown more fully in slide # 11]
Slide # 5
<PAGE> 6
Accelerating Industry Momentum
Semiconductor Capital Equipment Growth
[Graphical display of semiconductor capital equipment growth from $5b in 1991 to
an estimated $40b in 2002]
CAGR = 33%
Source: Dataquest 07/00
Slide # 6
<PAGE> 7
Complexity Drives Growth
- Sub 0.18um device geometry
- Advanced Etch/CVD/PVD/Implant/Thermal
- New Materials for VLSI interconnects
- Copper, Barriers, Low-k/High-k Dielectrics
- Higher Productivity
- 300mm, Enhanced Yield, Throughput, Uptime
- Increased Automation
- Process Monitoring, Digital Control
[Photo of semiconductor processor chip omitted]
Slide # 7
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Supply Chain Evolution
[Diagram showing Non-Core Technology migrating from Fab to OEM to MKS]
- Technology Roadmap Driven
- Preferred Supplier
Slide # 8
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Critical Process Technologies
[First part of diagram shows the following processes:
RTP
Etch
Epi
Ion Implant
SEM
Diffusion
Vacuum Processes
Strip
PVD
CVD
Clean
"virtually every chip in the world is made with MKS' 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]
Slide # 9
<PAGE> 10
Other Thin Film Process Markets
The explosion of communications and mobile devices is driving other rapidly
growing thin film markets
- FPD Monitor Shipments
[Graphical display of an estimated 40m units shipped in 2000 to an estimated
140m units shipped in 2005]
Source: Display Search 07/00
- Hard Disk Drive Shipments
[Graphical display of 150m units shipped in 1998 to an estimated 400m units
shipped in 2004]
Source: Dataquest 07/00
- Single Mode Fiber Productions
[Graphical display of 55m Fiber-km produced in 1999 to an estimated 244m
Fiber-km in 2004]
Source: KMI 06/00
Slide # 10
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MKS Core Products
Around the Process
[Diagram of process chamber including the following MKS products:
Mass-Flo(R) Gas Panel Instruments
Gas Box Instruments
specialty gases flowing through Mass-Flo(R)Gas Panel Instruments
Materials Delivery System
Process Monitor
Baratron(R)Pressure Measurement
Control Valve
Shut-off Valve
Adaptive Controller
HPS(R)Vacuum Components/Subsystems]
[Diagram of process chamber described above, adding on each of the ASTeX
products:
Ozone Generator
Reactive Gas Generators
Power Generators]
[Diagram of process chamber described above, adding on
Digital Control Network]
Slide # 11
<PAGE> 12
Comprehensive Product Offerings
[Photos of product from the following product groups omitted]
- Pressure Measurement and Control Products
- Materials & Analysis Products
- Vacuum Products
- D.I.P. Products
- ASTeX Products
Integrated Subsystems
Slide # 12
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Integrated Products
Around the Process
[Diagram of process chamber including the following process:
Wafer Backside Cooling Subsystem
Flow Control
Baratron(R) Pressure Measurement
Adaptive Controller
Photo of product omitted]
[Diagram of process chamber described above, changing to the following process:
Digital Pressure Control Subsystem
Control Valve
Baratron(R) Pressure Measurement
Adaptive Controller
Digital Control Network
Photo of product omitted]
[Diagram of process chamber described above, changing to the following process:
TEOS Effluent Management Subsystem
Flow Control
Baratron(R)Pressure Measurement
Adaptive Controller
Control Valve
Shut-Off Valve
HPS(TM)Vacuum Components/Subsystems
Photo of product omitted]
[Diagram of process chamber described above, changing to the following process:
Integrated Plasma Source Subsystem
Digital Control Network
Materials Delivery System
Reactive Gas Generators
Photo of product omitted]
Slide # 13
<PAGE> 14
Customer & Market Diversity
4,000+ Active Customers Worldwide
<TABLE>
<CAPTION>
Semiconductor Capital Equipment Semiconductor Manufacturers
------------------------------- ---------------------------
<S> <C> <C> <C> <C>
[ ] Applied Materials [ ] Lam Research [ ] AMD [ ] Mitsubishi [ ] ST Microelectronics
[ ] ASM [ ] Novellus [ ] Fujitsu [ ] Motorola [ ] Siemens
[ ] Axcelis [ ] Semitool [ ] Hitachi [ ] National Semi [ ] TI
[ ] Gasonics [ ] Silicon Valley [ ] Hyundai [ ] NEC [ ] Toshiba
[ ] Genus Group [ ] IBM [ ] Philips [ ] TSMC
[ ] Hitachi [ ] Tokyo Electron [ ] Intel [ ] Samsung [ ] UMC
[ ] ULVAC [ ] Micron
[ ] Varian
</TABLE>
<TABLE>
<CAPTION>
Specialty
Data Storage and FPD Gas Suppliers Diverse Vacuum Processes
-------------------- ------------- ------------------------
<S> <C> <C> <C> <C>
[ ] AKT [ ] NEC [ ] Air Liquide [ ] Abbott Labs [ ] GE
[ ] Alcatel [ ] Plasma Therm [ ] Air Products [ ] Delco [ ] Johnson & Johnson
[ ] Anelva [ ] Seagate [ ] BOC [ ] Ford [ ] OSRAM
[ ] CVC [ ] Sharp [ ] Kinetics [ ] Westinghouse
[ ] Komag [ ] Toshiba [ ] Nippon Sanso
[ ] Lucent [ ] Veeco [ ] Praxair
</TABLE>
Slide # 14
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Market Leader
[Graphical display showing percentage of competitor responses of awareness and
preference]
[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: Semiconductor International / Cahners Publication, AVEM, SEMI, Company
Estimates
Slide # 15
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Unique Competitive Position
<TABLE>
<CAPTION>
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
Vacuum Vacuum Sub- Digital
Pressure Flow Monitor Comp Gauge systems Network
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
MKS X X X X X X X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
Aera X X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
Edwards X X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
Helix X X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
Inficon X X X X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
MDC X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
Millipore X X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
Nor-Cal X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
STEC X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
Unit X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
Varian X X
------------------- ------------ ------------ ------------- -------------- ------------- --------------- --------------
</TABLE>
<TABLE>
<CAPTION>
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
RF DC uW Reactive Sys.
Ozone Liquozone Power Power Power Gas Integration
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASTeX X X X X X X X
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Aera
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Edwards
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Helix
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Inficon
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
MDC
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Millipore
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Nor-Cal
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
STEC
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Unit
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Varian
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
AE X X X
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Analogic X
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Daihen X X
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Ebara X X
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
ENI X X
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
Sumitomo X X
------------------- ---------- -------------- ------------- -------------- ------------- ------------- ----------------
</TABLE>
Source: Company estimates of market participants with share >5%.
Slide # 16
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Opportunities for Continued Consolidation
- MKS is the largest supplier of instruments, components & subsystems in a
fragmented industry
- Drive by OEMs & end users to reduce supplier base
- Completed four acquisitions in 2000:
- Compact Instruments: Provides advanced technology for process gas
analysis
- Telvac: Provides vacuum product technology & European manufacturing
base
- Spectra International: Provides additional strength in process
monitoring
- D.I.P. Inc: Digital process control network products
- Announced Acquisition of ASTeX
Slide # 17
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Established Global Infrastructure
[Diagram of world showing locations of MKS facilities]
- 9 Manufacturing Facilities
- 22 Customer Support Centers
- Provides SG&A Leverage
Slide # 18
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MKS Management Team
<TABLE>
<CAPTION>
Name Title MKS Years Career Years
--------------------- -------------------------------------------------- ---------------- ---------------
<S> <C> <C> <C>
John Bertucci Chairman, CEO 30 35
Peter Younger President, COO 1 25
Ronald Weigner Vice President, CFO 20 32
John Sullivan Executive VP, Technology 25 40
William Stewart Corporate VP/GM, Vacuum Products 13 30
Tom McNabb Corporate VP/GM, Pressure Measurement/Control <1 18
Robert Klimm Corporate VP/GM, Materials Delivery/Analysis <1 24
Leo Berlinghieri Corporate VP, Customer Support Operations 19 24
Jerry Colella Corporate VP, Business Operations 17 23
Donald Smith Corporate VP, Chief Technical Officer <1 13
Paul Blackborow Corporate VP, Marketing 2 18
George Manning Corporate VP, Human Resources 19 26
--------------------- -------------------------------------------------- ---------------- ---------------
Total 149 308
</TABLE>
Slide # 19
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Financial Overview
Slide # 20
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Financial Highlights
- 30 years of consecutive profitability
- Growing faster than the industry
In 1999:
- 19% growth in semiconductor equipment
- 34% growth for MKS
- Record profits in 1999
- Global infrastructure in place with an employee base of ~1400
- 8 quarters of increased revenue and profit
Slide # 21
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Annual Revenue & Operating Income
[Graphical display of Revenues of $157m in 1995 to $285m LTM and Operating
Income of $24.1m in 1995 to $64.4m LTM]
*Excluding amortization of intangibles
Slide # 22
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Increasing Quarterly Revenue & Net Income
[Graphical display of Revenue of $29m in Q3 '98 to $88m in Q3 '00 and Net Income
of $0.1m in Q3'98 to $12.4m in Q3 `00]
Slide # 23
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Diversified Revenue Mix
[Pie chart showing Revenue by Industry as follows:
- Spares & Upgrades - 14%
- Semiconductor Equipment - 54%
- Other Thin Film Processes - 10%
- Pharm., Diverse, Vacuum - 22%]
[Pie chart showing Revenue by Region as follows:
- Europe - 10%
- US - 69%
- Asia - 21%]
*Calendar Year 1999
Slide # 24
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Balance Sheet Highlights
<TABLE>
<CAPTION>
($ Millions) Sept. 30, 2000
------------ --------------
<S> <C>
Cash and Investments $ 59.7
Total Debt $ 29.8
Stockholders' Equity $183.9
Days Sales Outstanding 62
Inventory Turnover 4.3x
</TABLE>
Slide # 25
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Target Business Model
<TABLE>
<CAPTION>
1999 Q3 2000 Target Model
---- ------- ------------
<S> <C> <C> <C>
Sales 100% 100% 100%
Gross Margin 43% 46% 46-48%
R&D 7% 7% 7%
SG&A 21% 16% 14-15%
Operating Income 15% 23% 24-27%
</TABLE>
*Excluding amortization of intangibles
Slide # 26
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ASTeX Transaction Summary
- Exchange of 11M shares of MKS for 14.6M shares of ASTeX
- Ownership
- 70% of MKS Instruments
- 30% ASTeX
- Exchange Ratio
- 0.7669 MKSI shares per ASTX common share
- Pooling of interests
- Expected Closing: December 2000
Slide # 27
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Key Financial Statistics
(LTM, Sept 30, 2000/$M)
<TABLE>
<CAPTION>
MKS ASTeX Combined
--- ----- --------
<S> <C> <C> <C>
Revenue $285.2 $150.6 $435.8
EBIT 62.1 23.2 85.3
Pro Forma Net Income 40.3 14.7 55.0
Shareholder's Equity 183.9 162.7 346.6
</TABLE>
- Accretive without synergies
Slide # 28
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Combined Capitalization
(Sept 30, 2000/$M)
<TABLE>
<CAPTION>
MKS ASTeX Combined
--- ----- --------
<S> <C> <C> <C>
Debt $ 29.8 $ 9.3 $ 39.1
Equity 183.9 162.7 346.6
Cash & Investments 59.7 87.9 147.6
</TABLE>
Source: Financials as of June 30, 2000
Slide # 29
<PAGE> 30
The MKS Growth Opportunity
[Diagram showing MKS growth opportunities through
- Secular market growth
- Market share gains
- New product development & acquisition
and a total market of approximately ~$5.5B]
[Graphical display of semiconductor capital equipment growth, as shown more
fully in slide # 7]
[Diagram of process chamber, as shown more fully in slide # 11]
Slide # 30
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MKS Instruments, Inc.
Around the Process...
Around the World...
Slide # 31
This document and other documents have or will be filed with the United States
Securities and Exchange Commission in connection with the business combination
transactions referenced in this presentation. You are advised to read this and
other documents filed by us with the SEC, including the registration statement
on form S-4 and the joint proxy statement/prospectus (when available), because
they contain or will contain important information. When this 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.
