ASM International

BUSINESS & STRATEGY UPDATE

Includes 2003 annual results & NuTool acquisition proposal FORWARD-LOOKING STATEMENT

With the exception of historical information, the matters discussed are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to: economic conditions in the industry, currency fluctuations, the timing of significant orders, market acceptance of new products, competitive factors, risk factors related to litigation, commercial and economic disruption due to terrorist activity, armed conflict or political instability and other risks indicated in filings from time to time with the SEC and Stock Exchange Authorities.

2 ASM ASM INTERNATIONAL - INVESTMENT HIGHLIGHTS

„ Critical mass — one of the top global capital equipment manufacturers „ Outperformed industry over the past 6 years in both deposition and assembly markets „ Well positioned to gain further market share • Innovative technologies for new developing segments : Low-k and Copper, SiGe, Strained Silicon, New Technology, SOI, Atomic Layer CVD, Rapid Thermal Processing • Shift to 300 mm wafers, penetrating new accounts • 35 micron pitch in Wire Bonding • Integrated assembly and encapsulation solutions „ Penetration of all major semiconductor manufacturers ( top 16 ) „ Only company with major presence in FE and BE markets, reducing cyclicality effects and improving integration capabilities

3 ASM ASMI’s ORGANIZATIONAL STRUCTURE

ASMASM InternationalInternational HKSE

7433 100.0% 53.9%

ASMASM ASMASM Front-endFront-end Back-endBack-end

1164 ASMASM PacificPacific ASMASM ASMASM ASMASM ASMASM TechnologyTechnology EuropeEurope AmericaAmerica JapanJapan FarFar EastEast 435 394 254 81 6254

Total employment as of December 31, 2003 MalaysiaMalaysia SingaporeSingapore ChinaChina HongHong KongKong otherother ( excl. Temporary & Agency ) 205 874 4172 817 186 „ ASMI has a dual listing on NASDAQ (1981) and AEX (1996) „ Approximately equal trading volumes 4 ASM ADDRESSABLE MARKETS 2003

(Total $26.5 Billion) Other process $2.3 B Lithography Test $5.4 B $7.6 B

Etch & Clean Deposition $3.6 B $5.3 B Assembly

Source: VLSI Research, Jan 2004 $2.3 B 5 ASM ASMI’s MARKET LEADERSHIP

Market Segment Current Position Market estimate (US$ mill.)* Front-end 2002 2005 %/Yr •(Si, SiGe) 1 170 250 15 400* 33 • Vertical Furnace 2 ↑ 501 1069 29 (LPCVD/Diffusion/Oxidation) • Plasma Enhanced CVD 3 738 2016 40 (Low-k) 158 512 48 Advanced developments • Atomic Layer CVD strong position 58 571 113 •RTP emerging interest 277 882 47 • New Chemistry Back-end (overall) 1 ↑ 1815 4729 38 (equipment 80%, lead frames 20%)

•VLSI resear ch J an 2004 •AS MI for ecast 6 ASM ASMI HAS OUTPERFORMED THE INDUSTRY ASMI Revenue Growth vs. Market Growth ( 1997 level indexed at 100 )

350 350 329 300 300 249 250 221 250 188 200 175 200 175 149 138 180 133 150 119 178 150 100 100 92 87 100 122 100 100 104 100 98 86 86 77 80 77 50 70 50 61

7 8 9 0 1 2 3 7 8 9 0 1 2 3 9 9 9 0 0 0 0 9 9 9 0 0 0 0 9 9 9 0 0 0 0 9 9 9 0 0 0 0 1 1 1 2 2 2 2 1 1 1 2 2 2 2 Deposition market ASMI Assembly market ASMI

Source: VLSI Research and ASMI 7 ASM ASMI’s partnering strategy

„ Microchemistry, the industry leader in ALCVD, in 1999

„ Strategic investment in NanoPhotonics, a supplier of precision metrology equipment, in 1999

„ In October 2001 started a strategic alliance via 15% equity participation in NuTool, a leading developer of innovative copper deposition technologies In March 2004 expanded to a proposal for a 100% acquisition with final decisions in May 2004

„ Exclusive strategic technology and marketing agreement with Genitech, a supplier of Plasma Enhanced ALCVD equipment in Korea, in October 2001

„ R & D partnership with Soitec on advanced SOI and SsOI technology

8 ASM WAFER PROCESSING

( FRONT-END )

ASM ASMI Front-End Global Operations

USA Europe Asia

Business Units Business Units Business Unit Epitaxy Products Vertical Furnaces PECVD Products TCP Products RTP Products

US office and manufacturing HQ , Europe office and Asia office and manufacturing facilities manufacturing facilities facilities Phoenix, Arizona Bilthoven and Almere, Tama, Major Market & Service Major Research Centers in Units in Belgium and Finland , , Korea,

10 ASM FRONT-END TECHNOLOGY DRIVERS „ are becoming smaller and better performing • Faster switching and lower power • Line widths < 0.10 micron • Ultra thin films (smaller/faster gates: less than 5 atoms thick) • New materials (High-k & Low-k dielectrics, SiGe, Copper interconnects) „ ASMI’s response:

• PECVD • Superior Low-k chemistry High-k Gate Dielectrics •Epitaxy Cu Diffusion barrier SiGe Epi Deposition Cu Seed layer New Technology Strained Silicon

11 ASM WAFER PROCESSING SEGMENTATION FEOL „ Historical strength of ASM International •LPCVD •Oxydation •Diffusion •Epi deposition •ALCVD BEOL

„ Metallization •Low K intermetal dielectrics •Copper •ALCVD „ ASMI is active in interconnect dielectrics for many years. Now evolving to Low-K

„ With ALCVD™ ASMI pioneered in the third generation interconnect 12 ASM ATOMIC LAYER CVD bothboth forfor FEOL and BEOL

„ Response to Smaller Line Geometries „ Technology to control deposition atomic layer by atomic layer, resulting in ultra-thin films „ Proven down to 0.07 micron (70 nanometer) „ Design-in with top IC manufacturers „ Patent portfolio protects advantage over competition „ technology lead over competition

13 ASM SiGe EPI DEPOSITION NOW BREAKING THROUGH (FEOL)

„ Market leader in Silicon Germanium (and SiGeC) • New material in high frequency transistors for broadband wireless communications • ASM International is the market leader (70+%) „ New Activities • Strained Silicon • New Technologytm using Silcore • SOI applications

14 ASM ASMI develops breakthrough Rapid Thermal Anneal floating wafer technology (LEVITOR®) ( FEOL )

„ Paradigm Shift Rapid Thermal Processing (RTP) Concept • Conventional : Radiation • ASMI’s Levitor : Conduction „ Cost reduction: min. 30 % • Ten times more energy efficient - 20 kW versus 200 kW •Faster - double throughput • Low cost - No lamps to replace - Fewer test wafers needed „ Targeting 65 nm Technology

15 ASM Developments in back end Of Line (BEOL)

„ Higher speed, Lower cost •Copper •Low-K •Decrease CMP need

ASMI Solutions • Low-K PECVD • Cu Barrier ALCVD • Cu Seed ALCVD • Cu ECMD (NuTool) Back End of Line Interconnect Many Levels for Adequate Wireability

16 ASM Cu replacing Al in metallization (BEOL)

„ Copper • Requires low-k dielectric layers. Low-k: AURORA 2.7 in evaluation k=2.2 value demonstrated in our laboratory • Low-k versus hardness Aurora approx. twice as hard at comparable k- value. Higher tolerance for CMP • Requires Cu-diffusion barriers and Cu-seed layers: ALCVD solution • Integration of Front-end and Back-end copper requirements

17 ASM Cost Reduction: transition to 300mm

„ Leads to 30 - 40% lower production costs per device „ All ASMI product ranges ready for 300mm „ The shift to the 300mm wafer generation creates significant opportunities to gain market share E.g. ASMI Vertical furnaces ( Advance 400 / 412 series ) – ASMI has the largest installed base in 300mm vertical furnaces – Received the 2002 Semiconductor International Editors’ Best Product Award for A412 – Target future market share of 30 - 35 % – Smart Batch and Batch ALD configurations This is almost triple the historic overall market share in vertical furnaces

18 ASM STRATEGIC ALLIANCES — NUTOOL ( USA ) Acquisition

„ NuTool provides self planarizing electroplating of Copper „ Integrated Cu deposition and Cu removal „ 27 patents granted and 94 pending „ Strategic alliance on copper / low-k „ Process integration of ASMI’s low-k and ALCVD™ with NuTool’s ECMD™ offer outstanding solution

„ This leads to advanced third generation copper interconnect „ ASMI proposes to integrate NuTool in the ASM organization „ NuTool will benefit from ASMI’s financial, marketing and sales support

19 ASM STRATEGICSTRATEGIC ALLIANCESALLIANCES —— NUTOOLNUTOOL (( 22 ))

„„ TransactionTransaction • intention to buy the remaining 85% of NuTool • ASMI already owns preferred stock representing 15% of the fully-diluted common stock „„ PaymentPayment • Newly issued shares of ASMI. Number of new shares based on the market value of common stock at day of closing • Minimum dilution expected to be below 4% • Additional 2% dilution over the next 3 years in case NuTool achieves certain performance targets „„ TimingTiming • Announced on March 2, 2004 • Closing expected in May 2004 subject to NuTool stockholder approval and completion of Due Diligence

20 ASM STRATEGICSTRATEGIC ALLIANCESALLIANCES —— (( continuedcontinued ))

Genitech, Korea Technology, Sales and Marketing • Plasma Enhanced ALD equipment • Superfill CVD process

Soitec, France Research & Development • SOI Technology • Strained Silicon for SsOI

21 ASM Wafer Assembly & Encapsulation

( BACK-END )

ASM ASMI Back-End Global Operations

USA Europe Asia

Sales and Service Unit Sales and Service Unit Business Unit all Back-end products

US office San Jose, California European office HQ, office and manufacturing Bilthoven, Netherlands facilities

Major Manufacturing facilities in Singapore, Shenzhen (PRC), and Malaysia

23 ASM BACK-END DRIVERS

Technology Drivers: „ Size of packages • Fine pitch ball bonding capability „ Advanced technologies • Flip Chip, Chip Scale Packages, Ball Grid Array (BGA)

Cost Driver: „ Automation • Integration of assembly and packaging steps

24 ASM BACK-END PRODUCT STRATEGY

„ ASMI supplies equipment to the Back-end of the semiconductor manufacturing industry „ ASMI’s tools are used to assemble chips into its final package

Back-end Wire bonding Die Bonding Molding Trim & Form processes Flip Chip, BGA bonding

Die Wire BGA Moulding Trim & Form bonder bonder bonder ASMI’s tools*

25 ASM DEMAND BY PACKAGE TYPE

120

100 Direct Attach 80

60

40 Surface Mount

20

Total ICs Shipped (billions units) (billions Shipped ICs Total Through-hole 0 1996 2001 2006

Increasing complexity but continuously cost driven 26 ASM GOLD WIRE BONDER

Since 2000 35 micron pitch wire bonding

„ AB339 Eagle recently followed by Eagle 60

Eagle 60 Status

„ 35 micron pad pitch capability, < 65 ms per wire

„ Volume production since Q4 2002

27 ASM ASSEMBLY AUTOMATION

„ Assembly and packaging activities to be increasingly integrated and automated • Requirements for improved cleanliness • Cost reduction „ ASMPT - only company to manufacture equipment for all major steps • Die attach, wire bonding, molding, trim & form • Eliminates integration issues for customers

28 ASM ASMPT Operations

TS & PAR S HONG KONG BLIE EM CHINA ASS SUB P A S R U T B S AS & S CUSTOMERS EM B LI ES & SINGAPORE TS AR P ES BLI MALAYSIA EM SS BA SU

29 ASM ASMPT Performance

•As from mid 2002, ASMPT is the world’s Number 1 producer of Assembly and Packaging equipment •ASMPT outperforms its competitors in the 5-Year Cumulative 350 Net Profit 1999300 - 2003 250 200 US$ millions 316,1 150 100 50 0 41,7 38,4 -50 -100 -30,2 -150 -65,8 -200 -250 -300 -320,1 -350 ASM Shinkawa* ESEC** BESI Towa* K&S Source: Companies’ Annual Reports Notes: * 3 quarters figures up to Dec 31 2003 ** 1H/03 figures only 30 ASM FINANCIALFINANCIAL OVERVIEWOVERVIEW

ASM NET SALES (FRONT-END AND BACK-END) 1000 Euro in millions

750

556

500 224 295 252

233 250 149 135 169 155 380 337 267 287 164 182 155 153 133 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 Front-end Back-end

32 ASM Consolidated EARNINGS 250 Euro in millions 200 192

150

100 94

50 56 45 39 33 31 26 24 12 14 9 11 6 0 0

-6

-50 -30 -29 1995 1996 1997 1998* 1999 2000 2001 2002 2003 Earnings from operations Net earnings

* before one-time charges 33 ASM SALES BREAKDOWN — FY 2003

SalesSales byby ProductProduct lineline GeographicalGeographical SalesSales

12% 54% 22% 49% 51%

12%

Front-end Equipment Europe North and South America Back-end Equipment Japan SE Asia

34 ASM CONSOLIDATED STATEMENT OF OPERATIONS

Euro in millions (except per share)

FY 2001 FY 2002 FY 2003

Net Sales 561.1 518.8 581.8

Gross Profit 223.3 39.8% 190.7 36.8% 201.3 34.6%

Total Operating Expenses 199.1 35.5% 196.7 37.9% 187.1* 32.2%

Earnings from Operations 24.3 4.3% (6.0) -1.2% 14.2 2.4% Minority interest in subs. (13.4) (15.9) (24.6)

Net earnings 6.1 1.1% (29.9) -5.8% (29.3) -5.0%

Net earnings per share 0.12 (0.61) (0.59)

* Incl udi ng 6.5 milli on Euro restructuring charges

35 ASM Consolidated Statement of Operations ( per quarter )

Euro in millions Q4 2002Q3 2003 Q4 2003

Net Sales 137,3 147,4 163,6

Gross Profit 50,9 37,1% 48,7 33,0% 64,9 39,7% SGA (28,8) -21,0% (26,9) -18,2% (32,8) -20,0% R&D (24,5) -17,8% (18,8) -12,8% (21,6) -13,2%

Earnings from Op. (EBIT) (2 ,4) -1,7% 2,9 2,0% 10,5 6,4%

Net interest and finan. exp. (3,6) (4,0) (3,8) Inc ome t axes 0,7 (2,1) (3,6) Minority Interest (2,7) (6,1) (9,5)

Net earnings (6 ,7) -4,9% (9,2) -6,2% (5 ,5) -3,4%

Diluted Net earnings per share -0,14 -0,19 -0,11

36 ASM 500 6 months NET SALES ( FRONT-END and BACK-END )

Euro in millions

250 293 263 223 211

157 170 149 142 145 146 141 125 133 125 116 122 119 84 82 66 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 Front-end Back-end

37 ASM CONSOLIDATED BALANCE SHEET

Euro in millions 31-dec-02 30-sep-03 31-dec-03

Cash and cash equivalents 71 115 155 ¹ Other Current Assets 341 341 313 ² Property, Plant & Equipment 161 139 130 Goodwill 55 49 46 Other Assets 27 30 29 Total Assets 654 674 672

ST Bank Debt ( incl. Current LT Debt ) 29 14 29 Other Current Liabilities 143 163 148 LT Bank Debt / Convertible Subord. Bonds 118 183 179 Other Long Term Liabilities 1 1 2 Total Liabilities 291 361 370

Minority interest in subsidiary 97 83 87 Shareholders’ Equity 266 231 215 Total Equity & Liabilities 654 674 672

¹ € 102 million available for Front-End. ² Q4 versus Q3: FE working capital reduction of € 20 million, mainly by lower inventories. 38 ASM CONSOLIDATED CASH FLOW STATEMENTS (Summary)

Euro in millions FY 2002 Q3 2003 Q4 2003 FY 2003 Net Cash from Operations 16,4 19,8 38,3 61,6 Net Cash from Investments •CAPEX -31,7 -5,2 -11,8 -27,1 •Financial Assets 0,0 0,0 -2,5 -3,8 Subtotal from Investments -31,7 -5,2 -14,3 -30,9 Subtotal before Financing -15,3 14,6 24,0 30,7 Net Cash from Financing •Short Term Bank debt 11,4 3,7 12,1 -1,3 •Long Term Debt, incl. Convertibles -2,5 -0,5 13,7 87,5 •Dividends to Minority -24,5 -7,4 -20,4 •Other 2,1 3,0 0,3 4,2 Subtotal from Financing -13,5 -1,2 26,1 70,0 Exchange Rate Effects -7,8 -1,7 -10,4 -16,8 Net Change in Cash -36,6 11,7 39,7 83,9

39 ASM BACKLOG Euro in millions 450 400 350 300 BE 250 200 FE 150 Total 100 50 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 1998 1999 2000 2001 2002 2003

• Q4 2003 New orders : € 245.4 million, up 87.6% from last quarter. (Increases in FE as well as BE.) • Approx. 60% of Q4 orders booked in FE were for 300mm • Q4 2003 Book-to-Bill : 1.50, up from the 0.89 in the third quarter. ( with only small variations for both segments) • 2003 Full year Book-to-Bill: 1.10 • Ending Backlog : € 199.0 million 40 ASM OUTLOOK as per February 24, 2004

• Increased order activity as well as general signs indicate the long downturn is now behind us on entering 2004 • Although visibility is improved, semiconductor manufacturers remain cautious in placing new orders and require short lead times • We have a positive outlook for 2004, but still limited ability to provide full year projections given the volatility in order intake • Q1 2004 will be at higher consolidated net sales levels compared to the previous quarter • We expect to report positive consolidated net earnings for Q1 2004

41 ASM RestructuringRestructuring

InIn JulyJuly 20032003 ASMI ASMI announced announced a a 150 150 person person (10%) (10%) reduction reduction of of the the Front-End Front-End personnelpersonnel •• The The FEFE workforceworkforce reductionreduction programprogram isis wellwell onon tracktrack •• In In thethe secondsecond halfhalf ofof 20032003 wewe recordedrecorded €€ 6.5 6.5 mmillionillion inin restructuringrestructuring costscosts •• In In 20042004 aa furtherfurther €€ 1-2 1-2 millionmillion isis expectedexpected •• Total Total restructuringrestructuring costscosts thereforetherefore lowerlower thanthan thethe estimatedestimated €€ 10-15 10-15 millionmillion indicatedindicated earlierearlier InIn additionaddition ASMIASMI wwillill improveimprove itsits costcost structurestructure byby startingstarting itsits fully fully ownedowned Front-EndFront-End productionproduction facilityfacility inin SiSingaporengapore •• In In thisthis locationlocation wewe willwill manufacturemanufacture currentlycurrently outsourcedoutsourced subassembliessubassemblies BuildingBuilding hashas beenbeen acquiredacquired •• Volume Volume manufacturingmanufacturing capabilitycapability readyready earlyearly 20052005

42 ASM ASM International

2003 results