Applied Materials, Inc. · NASDAQ:AMAT
Applied Materials — Merger or Acquisition (July 2019)
10 slides from Applied Materials's merger presentation, Jul 1, 2019
Slide 1: Applied Materials to Acquire Kokusai Electric
Applied Materials to Acquire Kokusai Electric JULY 1, 2019 External Use
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including those regarding Applied's proposed acquisition of Kokusai Electric; the impact on Applied’s earnings, gross and operating margins, strategic position, product and service offerings in semiconductor and servic
Slide 3: Kokusai Electric | Transaction Summary
Kokusai Electric | Transaction Summary DEAL Applied Materials to acquire all outstanding shares of Kokusai Electric Corporation SUMMARY (“Kokusai Electric”), a portfolio company of KKR, for $2.2 billion in cash Following closing, Kokusai Electric will operate as a business unit of Applied Materials’
Slide 4: Strategic Rationale
Strategic Rationale Complementary leadership products and services Increases exposure to growing batch processing applications Expands offerings for strategically important memory market Strengthens customer support and supply chain capabilities in Asia Pacific Region Leadership technology at an att
Slide 5: Kokusai Electric | Overview
Kokusai Electric | Overview Leading supplier of batch processing HISTORICAL REVENUE ($M) technology Established service business with >10,000 tools in installed base +42% CAGR $1,486 Strong presence in memory $1,182 ~1,900 employees worldwide Headquartered in Tokyo, Japan $733 $962 $1,189
Slide 6: Batch Processing | Historical Growth
Batch Processing | Historical Growth Kokusai Electric Batch Processing Portfolio Batch Processing WFE CAGR TAM CAGR 26% 35% Quixace AdvancedAce TSURUGI-C2 Strong market demand for batch processing technology Kokusai Electric has leadership technology CY16 to CY18 CAGR High productivity platfor
Slide 7: Strengthens Customer Support Capabilities in Asia Pacific Region
Strengthens Customer Support Capabilities in Asia Pacific Region Toyama Technology and Manufacturing Center Major Manufacturing and Service Locations Cheonan Toyama Pyeongtaek Tokyo China Taiwan Singapore Manufacturing Service HQ Note: Additional Distribution and Service locations in San Jose, Germa
Slide 8: Kokusai Electric | Financial Highlights
Kokusai Electric | Financial Highlights TRANSACTION FINANCIAL CAPITAL CONSIDERATION IMPACT STRUCTURE Total purchase price Expected to be No change to overall of $2.2 billion immediately accretive capital return philosophy to non-GAAP EPS o Attractive valuation upon closing Committed to maintaining c
Slide 9: Strategic Rationale
Strategic Rationale Complementary leadership products and services Increases exposure to growing batch processing applications Expands offerings for strategically important memory market Strengthens customer support and supply chain capabilities in Asia Pacific Region Leadership technology at an att
Slide 10: Cll fareniais.
Cll fareniais. make possible
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