Jerry Ermentrout

VP & GM, Electronics Division

Air Products and Chemicals, Inc.

www.airproducts.com

CSFB Chemical Industry Conference

2-4 October 2001
 Forward-Looking Statements
The forward-looking statements contained in this release are based on
current expectations regarding important risk factors. Actual results may
differ materially from those expressed. Factors that might cause forward-
looking statements to differ materially from actual results include, among
other things, overall economic and business conditions; demand for the
goods and services of Air Products; competitive factors in the industries in
which it competes; whether prices of natural gas and other raw materials fall
in the second half of fiscal 2001; the ability to recover increased energy and
raw material costs from customers; the availability of utilities, particularly in
California, to provide electrical power; changes in government regulation;
success of implementing cost reduction programs; the timing, impact and
other uncertainties of future acquisitions or divestitures; fluctuations in
interest rates and foreign currencies; the impact of tax and other legislation
and regulations in the jurisdictions in which Air Products and its affiliates
operate; and the timing and rate at which tax credits can be utilized.

Presentation copyright 2001. All rights reserved.

2
 Agenda

! About Air Products

! Electronics Division

! Other Growth Opportunities

! Our Focus

becoming the best company to invest in

3
 Air Products At A Glance
FY00 Revenues ~ $5.5 Billion

Chemicals
32% ($1.8B)

Equipment Gases
5% ($0.2B) 63% ($3.5B)

Markets Served
Chemical and Process Industries Electronics Polyurethanes
Medical and Home Care Foods Coatings/Adhesives/Sealants
Metals Agriculture Glass Paper Other

4
 the
Air Products
Difference
! Gases and Chemicals . . . One Company
! Growth Oriented Portfolio
! Producing More Value-Added Products
! Embedded Services
! Relationships / Franchises / Leverage
! Highly-Trained, Motivated Talent Pool to Deliver It

5
 Positioning for the Recovery
- Setting our Growth Trajectory
! Electronics and Hydrogen
The two most attractive gases markets to be in
APD has the leading global market position in each

! We have the product and regional strengths to

leverage market positions
Examples: Specialty Gases, Asia
! We are well positioned for growth in newer markets
with long-term growth prospects
Optoelectronics, Energy, Medical
6
 Electronics
Systemically Integrated . . .

Gas/chemical
Customer Process Development & Key Turnkey MEGASYS TM
Requirements Development Manufacturing Partner UHP Fab And Beyond
Planning With OEMs Alliances Systems

. . . to capitalize on the IT revolution

Internet Access PCs and Cell Phones And Digital Games and Displays
And Infrastructure Servers Hand-held Photography Entertainment And Other
Devices
7
 Electronics Offerings
GASES SERVICES
FAB WALL Toxic Gas Monitoring
Systems Operation
Cryo N2 and N2/O2 Plant (MDA)
Liquid Assist Plants MMMSTM
Non-Cryo Plants
Pipeline Supply QMACTM (Megasys Materials
Management System)

APIMS

CLEAN ROOM
N2 Purifiers

Piping Construction

Spec Gas: CF4, NH3,

Bulk Gases Supply HF, Etc. Solid Waste
Bulk Gas Purifiers NF3
GASGUARDTM Management
Helium Recovery Unit SiH4
Gas Cabinets WAFERS
WF6 GASGUARD
Network GIB Analytical
HBr
Services
BCl3
N2O DIFFUSION TUBE
HCl
GASGUARD VMBTM
(Valve Manifold Box)

Environmental Systems
Chemical Valve
Bulk Specialty Gas TO PROCESS - Scrubbers
Box
Supply Wet Chemicals
TOOLS - PFC Recovery
Bulk Spec Gas
LITHO PLANAR Liquid Waste
Delivery System Management
ETCH & CLEAN CMP
- Acid Waste Mgnt
CHEMICALS Water - Cyanide Destruction
System
Chemical Delivery - HF Treatment
Gas-to-Chemical System
Totes Generation
Spec Gases
Drums

Slurry Valve Box

Slurry
TCM/TGM
ISO Network

8 Slurry Distribution Equiment.

 Current Situation in Electronics

! Worst-Ever Downturn

! Managing in the Current Environment

! The Good News

! Outlook

9
 Focused Strategy to Grow
Electronics
! APD FY00 electronics sales, 100% basis = $809MM (15% CAGR 93-00)
! FY01 F/C a Billion Dollar business
! High portfolio weight vs. industry
! Electronics is a long-term, high CAGR market

Worldwide Gases Worldwide Air Products

Industry Profile Gases Profile
Electronics 10%
Paper 1% Electronics Paper 1%
Medical 10% 19% Medical 8%
CPI
16% Foods 7% Foods 4%
Glass 1% Glass 2%

CPI
23% Other
Metals General
15% Industries
Other General
Industries Metals 28%
40%
15%

On a 100% basis excluding gas production/processing equipment and cutting & welding supplies.
10
 Silicon Valley

Ni
Auto Mall Parkway

m
itz
Fr
e
ew
ay
Nitrogen Gas
Cushman Road

Pipeline

Warm S

Highway
Air
AirProducts
ProductsNitrogen
Nitrogen

prings B
Production
ProductionLocations
Locations

680
Existing
ExistingPipeline
Pipeline

lvd.
East Bay
Roads
Roads Extension

East
EastBay
BayExtension
Extension
10
10Parallel
ParallelLine
Line 880 Nimitz
Freeway

APMC
APMC Milpitas
Milpitas

Lawrence Expressway
Backup
Backup System
System

Mountain
Mountain View
View Facility
Facility

Bays
hore
Fr eewa
y

Tie in
6 * 10 *8

Santa
Santa Clara
Clara Facility
Facility
550M
550M N
N22;; 540
540 M
MNN22/7
/7 T/D
T/D CLAR
CLAR
Sunnyvale
Sunnyvale (Expansion)
(Expansion)
Facility
Facility -- 290M
290M N
N22

11
 Electronics Extending
Leadership Position
Market Share - Total Bulk and Specialty Gases
2000**
1998*
Nippon Sanso
BOC Gases 17%
Nippon Sanso 21% Praxair
17% Praxair 8%
BOC Gases 10%
21% Others
Others
5% 3%

Air Liquide Air Products Air Liquide

22%
25% 22% Air Products
29%

North America #1; Europe #1; Asia ex-Japan #1

* From Rose Associates
** From The Information Network, June 2001 (SEMI data)
12
 Electronics High Growth
Elements 2001-2005
! Silicon Devices
300mm (12 inch) wafer diameter fabrication
Trend toward fabless and foundries
! Optoelectronics
Compound semiconductor devices
LED displays
Fiber optic networks
! Advanced gas and chemical product needs

Wireless handheld Interactive Optical

devices digital TV products
Corporate Internet
ERP systems commerce
13
 2000 Top 10 Capital Spenders
2000 Rank 1999 Rank Company 1999 2000 % change
1 1 Intel $3,300 $6,000 82%
2 2 TSMC $1,846 $4,693 154%
3 6 ST $1,348 $2,500 85%
4 3 Samsung $1,800 $2,400 33%
5 4 UMC $1,700 $2,400 41%
6 9 TI $1,200 $2,350 96%
7 5 Motorola $1,540 $2,300 49%
8 8 Hitachi $1,300 $1,715 32%
9 7 NEC $1,315 $1,665 27%
10 11 Hyundai $965 $1,500 55%
Total $16,314 $27,523 69%

APD has strong business relationships with the companies highlighted in green.

IC Insights
14
 Chip Making Process
Packaging
CMP
Diffusion
CVD
Passivation Schumacher
Drying Specialty
Stripping Chemicals
Etching
Photolithography
Wafer Cleaning
Wafer Polishing
Bulk
Gases
Specialty
Process Gases
Chemicals

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 Electronics Positioned for
Superior Growth Materials!
Interlayer Dielectrics Metallization Chamber Cleaning Gases Dielectric Etching Gases Etch Stop and Barrier Layers
Silane (SiH4) Tungsten Hexafluoride (WF6) Nitrogen Trifluoride (NF3) Halocarbon-14 (CF4) Dichlorosilane (SiH2Cl2)
TEOS CupraSelect (CVD Cu) Halocarbon-14 (CF4) Halocarbon-23 (CHF3) Silane (SiH4)
Dichlorosilane (SiH2Cl2) Hydrogen (H2) Halocarbon-116 (C2F6) Perfluorocyclobutane (c-C4F8) Ammonia (NH3)
TOMCATS Silane (SiH4) Chlorine Trifluoride (ClF3) Octafluoropropane (C3F8) Trimethylamine (N(CH3)3)
LTO-410 Octafluoropropane (C3F8) Sifren-46 (C4F6) New
BPSG Dopants (B2H6, PH3, TEPO, Zeorora ZFL-58 (C5F8) New
TMPI, TMPO, TMB, TEB) Barrier Metals Carbon Monoxide (CO) High- Dielectrics
Oxygen (O2) TiCl4 (CVD TiN) Oxygen (O2) TAETO
Nitrous Oxide (N2O) TDMAT (CVD TiN) Hydrogen (H2) TAT-DMAE (Ta2O5)
Silicon Tetrafluoride (SiF4) [FSG] New TDEAT Ammonia (NH3)
Methylsilane (SiH3CH3) [Low-] New
Z3MS (SiH(CH3)3) [Low-] New Epitaxial Silicon Layer Spacer Nitride
Oxide Passivation
4MS (SiH(CH3)4) [Low-] New Silane (SiH4) BTBAS (LPCVD
TCA
MesoELK (Porous Silica) New Dichlorosilane (SiH2Cl2) Si3N4)
Trans-LC
Silicon Tetrachloride (SiCl4)
Arsine (AsH3) Anneals
Planarization (CMP) Hard Masks and Gates
Diborane (B2H6) Hydrogen (H2)
Syton(New) Silane (SiH4)
Phosphine (PH3) Deuterium (D2)
Ascend(New) Oxygen (O2)
Hydrogen Chloride (HCl) Ammonia (NH3)
Nitrous Oxide (N2O)
Deuterated Ammonia (ND3)
Silicon Ingot Poly Doping Forming Gas Blends
Argon (Ar) Arsine (AsH3) (H2/N2 Blends)
Polysilicon Etching of Gate
Nitrogen (N2) Boron Trichloride (BCl3)
Hydrogen Bromide (HBr)
Dopants (e.g., AsH3, PH3) Boron Trifluoride (BF3) Gettering
Chlorine (Cl2)
Diborane (B2H6) Hydrogen Chloride (HCl)
Halocarbon-14 (CF4)
Phosphine (PH3) Chlorine (Cl2)
CFC-13 (CF3Cl) Photolithography
POCl3
Nitrogen Trifluoride (NF3) Excimer Laser Gas Blends
Red Phospherous
Haolocarbon-116 (C2F6) [Fluorine, Krypton or Argon, in Neon Blends]
As
Sulfur Hexafluoride (SF6) UHP Optics Purge Gases
BBr3
Developer (TMAH) (New)
Sb2O3
16
 Electronics Portfolio -
Specialties Drive High Growth
Compound Growth Rate (96 00) APD Electronics Portfolio
2000
Electronics Air Products 24.5%
Industry Electronics

15.5% Bulk
13.5% Gases and
10.7% Specialty Services
8.8% Gases and ~35%
Chemicals
~55%
3.2%
Enabling
Equipment
~10%

Revenue Capital Total Bulk Enabling Specialty

Spending Revenue Gases Equipment Gases
and and
Services Chemicals

17
 Low-k Dielectric Materials
Roadmap
97 99 01 03 05 07

CVD FSG =3.8

CVDFSG =3.8with
withSiF4
SiF4

CVD =2.7
CVD =2.7with
with3MS
3MS

CVD =2.7
CVD =2.7with
with4MS/TOMCATS
4MS/TOMCATS

Spin-On MesoELK<=2.2
Spin-OnMesoELK <=2.2

0.18
0.13
0.10
0.007

Participating in All Technologies

18
 APD Electronics Division
Hit Rate

! FY99-FY01 Hit Rate >50%

! FY01 Hit Rate >50%
9 New Silicon Facilities
9 New Optoelectronic Facilities
! 300 MM Hit Rate >50%
5 Facilities Onstream
15 New Projects Under Way

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 APD Electronics Growth
Perspectives

Revenue 14%-16% CAGR

Capital Intensity 1.6~1.7 Assets/Sales
Operating Profit 16%+ CAGR

Investing Globally in
Customer Supply Systems
Infrastructure/Pipelines
Specialty Product Production Capacity

20
 Other Leading Businesses

Energy
Hydrogen/LNG/Methanol/Gasification/Fuel Cells

Medical
Respiratory Homecare/Institutional/MRI Services

Asia
Leading Positions/China Expansion/Focused Strategy

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 Delivering
the [add logo]
Difference

Our Focus . . .
! Improve Return on Capital
! Leverage Our Strategies
! Invest in Growth
! Accelerate Productivity
! Our People

Strategies in Place Leadership Positions Shareholder Value

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www.airproducts.com