Asm International N.v. · EURONEXT:ASM
Asm International — Q3 2020 Earnings Presentation
23 slides from Asm International's earnings presentation, Oct 28, 2020
Slide 1: Investor Presentation Q3 2020 Results
INVESTOR PRESENTATION Q3 2020 RESULTS October 28, 2020
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this presentation, except for any historical data, are forward-looking statements. Forward- looking statements involve risks and uncertainties that could cause actual r
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS › Strong long term growth prospects l ASM sales primarily driven by WFE investments in the most advanced nodes l ALD expected to be a key growth market, ASM has leadership positions in ALD l Driving structurally higher sales in the other product lines › COVID-19 update l The he
Slide 4: 2020 Q3 Key Results
2020 Q3 KEY RESULTS (restated) Q3 2019 Q2 2020 Q3 2020 2017 New orders 291.8 298.0 303.4 773.7 Net sales 271.2 341.8 314.6 730.9 Gross profit margin % 42.4% 48.3% 49.9% 41.3% Operating results 50.7 87.6 83.9 108.9 Operating margin 18.7% 25.6% 26.7% Normalized result from investments 6.5 10.7 6.3 112
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM is a market leader in ALD Equipment market segments 2019 (US$) › Positions in Epitaxy, PECVD Etch and Clean and Vertical Furnaces 14.9bn Lithography Deposition 14.3bn 13.2bn Assembly 3.0bn Test Process 5.5bn Other Diagnostics Wafer 6.7bn Processes 4.2bn VLSI Rese
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner expects a 5% increase in WFE in 2020, followed by a 4% increase in 2021 (Oct ‘20). Last July, Wafer Fab Equipment spending Gartner still expected a 9% drop in WFE in 2020. › VLSI Research now expects WFE to increase by 11% US$bn 80 in 2020, up from a forecast of +9
Slide 7: Semiconductor Market Growth Drivers
SEMICONDUCTOR MARKET GROWTH DRIVERS Semiconductor sales by key application CAGR ‘17-24 700 $B Consumer Electronics +6% 600 Compute (ex. Servers) 0% 500 Communication (ex. +3% Smartphones) 400 Smartphones +5% 300 Servers +5% Solid State Drives +16% 200 Industrial +6% 100 Automotive +8% 0 2017 2018 20
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn Strongest growth in leading edge nodes 70 60 50 7nm and below 10nm 40 14nm 22nm 30 32nm 45nm 20 65nm and above 10 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Gartner, October 2020 › Advanced nodes: market segments with high expected growth › 45nm mainly
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law l Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, ability to deposit new materials l Device scaling, new materials and 3D architectures drive increased demand for
Slide 10: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD l Developing ALD technology since 1999 l Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION ASMI sales 2019 › Engaged with all of the top-10 semiconductor capital equipment spenders Top 3 Nr 4-10 Rest Growing share of wallet with top clients October 28, 2020 | ASM proprietary information | 11
Slide 12: Key Points During the Quarter
KEY POINTS DURING THE QUARTER › COVID-19 update l The health and safety of our employees continues to be our key priority l Supply chain and logistical conditions largely normalized again in Q3 › Solid sales momentum in the first nine months of 2020 l Driven by the logic/foundry segment, solid growt
Slide 13: ASMPT Results
ASMPT RESULTS Q3 2019 Q2 2020 Q3 2020 Net profit ASMPT (€ million, 100% based) 25 43 26 Normalized result from investments (including ASMI’s share of ASMPT net profit) 6.5 10.7 6.3 Amortization intangible assets resulting from the sale of ASMPT stake in 2013 (3.5) (3.3) (3.0) Results from investment
Slide 14: Financial Overview
FINANCIAL OVERVIEW October 28, 2020 | ASM proprietary information | 14
Slide 15: Q3 2020 Financial Highlights
Q3 2020 FINANCIAL HIGHLIGHTS › Revenue was down 8% q-o-q (half of which due to negative currency impact) and up 16% y-o-y › Bookings up 2% q-o-q and up 4% y-o-y. Book-to-bill ratio of 1.0. Q3 backlog of €300m down from €317m in Q2 › Gross margin 49.9% in Q3 vs. 48.3% in Q2, again driven by exception
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q4, on a currency comparable level, we expect revenue of €330 - €350 million. Q4 bookings, on a currency comparable level, are expected to be in the range of €340 - €360 million. Supported by a continued healthy market
Slide 17: Net Earnings
NET EARNINGS € million Q3 2019 Q2 2020 Q3 2020 New orders 291.8 298.0 303.4 Backlog 330.4 317.4 299.5 Book-to-bill 1.1 0.9 1.0 Net sales 271.2 341.8 314.6 Equipment sales 216.2 264.4 242.3 Spares & service 55.0 77.4 72.3 Patent litigation settlement - - - Gross profit 114.9 165.1 157.0 Gross profit
Slide 18: R&D Expenditure
R&D EXPENDITURE € million Q3 2019 Q2 2020 Q3 2020 R&D expenditure (38.4) (42.2) (43.5) Capitalized development expenditure 13.1 15.8 16.4 Amortization capitalized development expenditure (4.6) (5.3) (5.0) Impairment capitalized development expenditure (0.1) (4.8) (2.2) R&D expenses (30.1) (36.5) (34
Slide 19: Cash Flow
CASH FLOW € million Q3 2019 Q2 2020 Q3 2020 Net earnings 53.5 74.1 58.1 Depreciation, amortization and impairments 19.1 24.1 21.2 Result from investments (3.1) (7.4) (3.3) Evaluation tools (9.7) (5.8) (8.9) Other adjustments 4.9 15.9 10.8 Change in working capital 27.4 (65.5) (25.9) Net cash from op
Slide 20: Balance Sheet
BALANCE SHEET € million Dec 31, 2019 Jun 30, 2020 Sept 30, 2020 Cash and cash equivalents 498 432 430 Accounts receivable 200 244 255 Inventories 173 176 176 Other current assets 75 85 77 Right-of-use assets 28 28 26 Investments in associates 778 776 747 Property, plant and equipment 165 188 194 Goo
Slide 21: Working Capital
WORKING CAPITAL € million Days 400 120 350 300 100 250 200 80 150 100 60 50 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q2* Q4* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q2* Q4* 16 17 18 19 20 16 17 18 19 20 Working capital Quarterly sales Days of working capital Numbers based o
Slide 22: Historical Development
HISTORICAL DEVELOPMENT € million € million 1.200 240 400 350 1.000 200 300 800 160 250 600 120 200 150 400 80 100 200 40 50 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q2*Q3Q4*Q1 Q2 Q3 16 17 18 19 20 Bookings Backlog Net Sales (lhs) EBIT (rhs) * 201
Slide 23: October 28, 2020 | ASM proprietary information | 23
October 28, 2020 | ASM proprietary information | 23