Asm International N.v. · EURONEXT:ASM
Asm International — Q4 2017 Earnings Presentation
24 slides from Asm International's earnings presentation, Feb 28, 2018
Slide 1: Investor Presentation Q4 2017 Results
INVESTOR PRESENTATION Q4 2017 RESULTS October February26, 2016 28, 2018 ASM proprietary information © 2018 ASM
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 growth prospects ALD market expected to grow by double digits, ASMI has leadership position in ALD ASMI sales grew at a CAGR of 14% since 2010 compared to 6%* for the WFE market In 2017 we benefited from clear improvement in the ALD market next to strong growth i
Slide 4: 2017 Key Results
2017 KEY RESULTS Q4 2016 Q3 2017 Q4 2017 2016 2017 New orders 176.9 160.4 203.2 622.3 773.6 Net sales 172.6 185.3 205.6 597.9 737.4 Gross profit margin % 44.9% 40.0% 39.3% 44.2% 41.5% Operating results 29.9 25.7 34.9 82.2 113.2 Normalized result from investments 18.4 32.1 14.0 67.7 112.4 Amortizatio
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments (US$) equipment › ASM is a market leader in ALD Test Assembly 4.4bn Lithography 10.5bn › Positions in Epitaxy, PECVD 4.7bn Other Wafer Processes and Vertical Furnaces 4.1bn Process Diagnostics 6.5bn Etch and Clean 1
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › WFE increased by 32% in 2017 according to Gartner Wafer Fab Equipment Spending › Investments in leading edge US$bn equipment remain the key 60 +32.4% -3.0% driver 50 +7.7% +11.4% -17.4% -2.0% 40 -1.0% 30 20 10 0 2015 2016 2017 2018 2019 2020 2021 Gartner, December 2017 Gar
Slide 7: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION US$bn CAGR ‘16-21 350 Servers +13% 300 Industrial Electronics +10% 250 Automotive +10% Solid State Drives +20% 200 Smartphone Premium +7% 150 Smartphone Basic +6% Tablet -1% 100 PC / Tablet Hybrid +18% 50 PC Ultramobile Clamshell +7
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn 60 Share of 14nm, 10nm and 7nm and below of total Equipment spending 50 increasing in 2017-2021 40 7nm and below 10nm 14nm 30 22nm 32nm 20 45nm 65nm and above 10 0 2015 2016 2017 2018 2019 2020 2021 Gartner, December 2017 › Advanced nodes: market segments w
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, ability to deposit new materials 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 Developing ALD technology since 1999 Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION › Engaged with all of the top-10 ASMI revenue semiconductor capital 100% equipment spenders 75% 50% 25% 0% 2012 2013 2014 2015 2016 2017 Top 3 Nr 4-10 Rest Growing share of wallet with top clients February 28, 2018 | ASM proprietary information | 11
Slide 12: Highlights
HIGHLIGHTS › Solid growth expected for the ALD market Single wafer ALD market showed a clear improvement in 2017 We expect the single wafer ALD market to reach a size of approx. US$1.5 billion by 2020-2021 › Growth in newly introduced products Epitaxy and PECVD showed strong growth in 2017 › S
Slide 13: Stake in ASMPT Reduced to 25%
STAKE IN ASMPT REDUCED TO 25% › On Nov 2, 2017, ASMI sold a 9% stake in ASMPT for proceeds of approx. €445 million 37 million shares in ASMPT were placed at a price of HK$111 per share through an accelerated bookbuild offering Part of proceeds will be used for a tax efficient capital return of €
Slide 14: ASMPT Results
ASMPT RESULTS Q4 2016 Q3 2017 Q4 2017 Sales ASMPT (HK$ million) 3,521 5,110 4,227 Net profit ASMPT excluding one-offs (€ million, 100% based) 45 95 49 Normalized result from investments (including ASMI’s share of ASMPT net profit) 18.4 32.1 14.0 Amortization intangible assets resulting from the sale
Slide 15: Financial Overview
FINANCIAL OVERVIEW February 28, 2018 | ASM proprietary information | 15
Slide 16: Q4 2017 Highlights
Q4 2017 HIGHLIGHTS › Revenues up 11% q-o-q and up 19% y-o-y › Bookings up 27% q-o-q and up 15% y-o-y. Book-to-bill ratio of 1.0 › Q4 backlog of €176m compared to €180m at the end of Q3 › Gross margin of 39.3% in Q4 was for 3%-points negatively impacted by initial costs related to new product introdu
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q1 and Q2, on a currency comparable level, we expect sales respectively of €155-175 million and €200-230 million. The broader range for Q2 reflects some uncertainty around the exact timing of individual tool shipments.
Slide 18: Net Earnings
NET EARNINGS Q4 2017 vs Q4 2017 vs EUR million Q4 2016 Q3 2017 Q4 2017 Q3 2017 Q4 2016 New orders 176.9 160.4 203.2 27% 15% Backlog 156.7 179.8 176.3 (2)% 12% Book-to-bill 1.0 0.9 1.0 Net sales 172.6 185.3 205.6 11% 19% Gross profit 77.5 74.1 80.7 9% 4% Gross profit margin % 44.9% 40.0% 39.3% Sellin
Slide 19: R&D Expenditure
R&D EXPENDITURE EUR million Q4 2016 Q3 2017 Q4 2017 R&D expenditure (26.5) (27.6) (29.5) Capitalized development expenditure 6.8 8.4 14.7 Amortization capitalized development expenditure (4.3) (3.3) (2.9) Impairment capitalized development expenditure - - (3.0) R&D expenses (24.0) (22.5) (20.7) Febr
Slide 20: Cash Flow
CASH FLOW EUR million 2016 2017 Net earnings 135.5 452.4 Depreciation, amortization and impairments 51.7 52.1 Result from investments (40.5) (374.5) Other adjustments 0.8 38.2 Change in working capital ( 56.0) (48.1) Net cash from operating activities 91.4 120.1 Capital expenditure (25.7) (47.4) Cap
Slide 21: Balance Sheet
BALANCE SHEET EUR million Dec 31, 2016 Dec 31, 2017 Cash and cash equivalents 378 836 Accounts receivable 137 163 Inventories 112 143 Other current assets 23 16 Investments and associates 1,218 731 Property, plant and equipment 95 111 Capitalized development costs 88 101 Other non-current assets 79
Slide 22: Working Capital
WORKING CAPITAL EUR million Days 250 140 200 120 150 100 100 80 50 60 0 40 Q1 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12 13 14 15 16 17 12 13 14 15 16 17 Working capital Quarterly sales Days of worki
Slide 23: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 800 160 250 700 140 200 600 120 500 100 150 400 80 100 300 60 50 200 40 100 20 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 0 0 2010 2011 2012 2013 2014 2015 2016 2017 12 13 14 15 16 17 Net Sales (lhs) EBIT (rhs) Bookings Backlog February 28, 2018
Slide 24: February 28, 2018 | ASM proprietary information | 24
February 28, 2018 | ASM proprietary information | 24