Asm International N.v. · EURONEXT:ASM
Asm International — Q2 2021 Earnings Presentation
24 slides from Asm International's earnings presentation, Jul 27, 2021
Slide 1: Investor Presentation Q2 2021 Results
INVESTOR PRESENTATION Q2 2021 RESULTS July 27, 2021
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 wafer fab equipment investments in the most advanced nodes l ALD is expected to be a key growth market, ASM has leadership positions in ALD l Driving structurally higher sales in the other product lines › Healt
Slide 4: 2021 Q2 Key Results
2021 Q2 KEY RESULTS (restated) Q2 2020 Q1 2021 Q2 2021 2017 New orders 298.0 410.6 515.7 773.7 Net sales 341.8 394.0 411.7 730.9 Gross profit margin % 48.3% 49.5% 48.1% 41.3% Operating result 87.6 124.5 118.4 108.9 Operating margin 25.6% 31.6% 28.7% Normalized result from investments 10.7 13.9 19.3
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM is a market leader in ALD Equipment market segments 2020 (US$) › Positions in Epitaxy, PECVD Etch and Clean and Vertical Furnaces 18.2bn Lithography Deposition 16.4bn 15.8bn Assembly 3.5bn Test Process 4.3bn Other Diagnostics Wafer 7.6bn Processes 5.6bn VLSI Rese
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner expects WFE to increase by 28% in 2021 (July 2021), up from +23% still predicted last Wafer Fab Equipment spending April US$bn › VLSI Research expects WFE to increase by 33% 100 90 in 2021 (July 2021), up from a previous forecast 80 of +22% last April 70 › ASMI’s s
Slide 7: Semiconductor Market Growth Drivers
SEMICONDUCTOR MARKET GROWTH DRIVERS Semiconductor sales by key application (in US$bn) CAGR 700 ‘18-25 Consumer Electronics +6% 600 Compute (ex. 1% 500 Servers) Communication (ex. +5% 400 Smartphones) Smartphones +5% 300 Servers +1% 200 Solid State Drives +13% Industrial +7% 100 Automotive +10% 0 201
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE Strongest growth in US$bn leading edge nodes 100 90 80 70 7nm and below 10nm 60 14nm 50 22nm 40 32nm 30 45nm 65nm and above 20 10 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Gartner, July 2021 › Advanced nodes: market segments with high expected grow
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 2020 › Engaged with all of the top-10 semiconductor capital equipment spenders Top 3 Nr 4-10 Rest Growing share of wallet with top clients July 27, 2021 | 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 continue to be our key priority › Strong sales momentum in Q2 2021 l Sales increased year-on-year in Q1 by 29% at constant currency and 20% as reported l Driven by continued strength in the logic/foundry segment
Slide 13: New Manufacturing Facility in Singapore
NEW MANUFACTURING FACILITY IN SINGAPORE › Construction completed in Q4 2020 › Transition of activities completed in Q1 2021 › Substantial expansion of our manufacturing capacity › Increased flexibility to meet customer demands › Designed with sustainability in mind March 5, 2015 | ASM proprietary an
Slide 14: ASMPT Results
ASMPT RESULTS Q2 2020 Q1 2021 Q2 2021 Net profit ASMPT (€ million, 100% based) 43 56 79 Normalized result from investments (including ASMI’s share of ASMPT net profit) 10.7 13.9 19.3 Amortization intangible assets resulting from the sale of ASMPT stake in 2013 (3.3) (3.0) (3.0) Results from investme
Slide 15: Financial Overview
FINANCIAL OVERVIEW July 27, 2021 | ASM proprietary information | 15
Slide 16: Q2 2021 Financial Highlights
Q2 2021 FINANCIAL HIGHLIGHTS › Q2 revenue was up 29% y-o-y at constant currencies and up 20% as reported. Compared to Q1 2021 revenue was up 4% as reported › Q2 bookings up 73% y-o-y and up 26% q-o-q with a book-to-bill ratio of 1.3 › Q2 backlog of €446m up from €345m in Q1 › Gross margin 48.1% in Q
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q3, on a currency comparable level, we expect sales of €400-430 million. Q3 bookings, on a currency comparable level, are expected to be in a range of €510-530 million, and also include orders that are planned to be shi
Slide 18: Net Earnings
NET EARNINGS € million Q2 2020 Q1 2021 Q2 2021 New orders 298.0 410.6 515.7 Backlog 317.4 344.5 445.6 Book-to-bill 0.9 1.0 1.3 Net sales 341.8 394.0 411.7 Equipment sales 264.4 319.1 334.9 Spares & service 77.4 74.9 76.8 Gross profit 165.1 195.0 197.9 Gross profit margin % 48.3% 49.5% 48.1% Selling,
Slide 19: R&D Expenditure
R&D EXPENDITURE € million Q2 2020 Q1 2021 Q2 2021 R&D expenditure (42.2) (42.7) (47.3) Capitalized development expenditure 15.8 17.4 20.3 Amortization capitalized development expenditure (5.3) (5.3) (5.7) Impairment capitalized development expenditure (4.8) - (1.1) R&D expenses (36.5) (30.6) (33.7)
Slide 20: Cash Flow
CASH FLOW € million Q2 2020 Q1 2021 Q2 2021 Net earnings 74.1 122.5 108.4 Depreciation, amortization and impairments 24.1 19.9 25.0 Result from investments (7.4) (10.9) (16.4) Evaluation tools (5.8) (11.4) (4.9) Other adjustments 15.9 (43.1) 10.9 Change in working capital (65.5) 38.6 (42.6) Net cash
Slide 21: Balance Sheet
BALANCE SHEET € million Dec 31, 2020 Jun 30, 2021 Cash and cash equivalents 435 465 Accounts receivable 280 324 Inventories 162 173 Other current assets 73 80 Right-of-use Assets - net 23 23 Investments in associates 743 769 Property, plant and equipment 214 216 Goodwill and other intangible assets
Slide 22: Working Capital
WORKING CAPITAL € million Days 450 120 400 350 100 300 250 80 200 150 100 60 50 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q2* Q4* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q2* Q4* 17 18 19 20 21 17 18 19 20 21 Working capital Quarterly sales Days of working capital Numbers based on
Slide 23: Historical Development
HISTORICAL DEVELOPMENT € million € million 1.600 350 550 1.400 500 300 450 1.200 250 400 1.000 350 200 800 300 150 250 600 200 100 400 150 200 50 100 50 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2* Q3 Q4* Q1 Q2 Q3 Q4 Q1 Q2 17 18 19 20 21 Net Sales (lhs
Slide 24: July 27, 2021 | ASM proprietary information | 24
July 27, 2021 | ASM proprietary information | 24