Asm International N.v. · EURONEXT:ASM
Asm International — Q3 2021 Earnings Presentation
36 slides from Asm International's earnings presentation, Oct 26, 2021
Slide 1: ASMI Q3 2021 Results
ASMI Q3 2021 RESULTS October 26, 2021
Slide 2: 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 results to differ materially from those in the forward-l
Slide 3: Contents
CONTENTS Investment highlights p. 4 Q3 2021 results p. 6 Business environment, strategy, and targets p. 17 Annex: detailed financials p. 28 October 26, 2021 | ASMI proprietary information | 3
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS Strong long-term prospects: • ASM is focused on enabling deposition technologies, with key strengths in innovation • Leader in the ALD market, which is expected to grow by a CAGR of 16%-20% from ‘20 to ‘25 • Expanding our position in the Epi market (CAGR of 13%-18% from ’20 to
Slide 6: Q3 2021 Results
Q3 2021 RESULTS
Slide 7: Q3 2021 Key Takeaways
Q3 2021 KEY TAKEAWAYS Q3 new orders increased to €625m, driven by continued strength in the logic/foundry segment, and above previous guidance as already pre-announced on September 28, 2021 Q3 revenue slightly exceeded the high end of the guidance despite continued tight supply chain conditions Curr
Slide 8: Q3 2021 Financial Highlights
Q3 2021 FINANCIAL HIGHLIGHTS € mln, year-on-year comparisons +106% +38% €525m Orders: €625m Revenue: €433m Cash position 47.2% 27.1% €98m Gross margin Operating margin Free Cash Flow(1) (49.9% in Q3 2020) (26.7% in Q3 2020) +€21m +115% €45m Normalized(2) result Normalized(2) net Cash spent on from i
Slide 9: New Orders and Backlog
NEW ORDERS AND BACKLOG New orders Backlog €m €m 1.4 1.3 648 625 1.0 516 446 303 299 Q3 2020 Q2 2021 Q3 2021 Q3 2020 Q2 2021 Q3 2021 Book-to-bill ratio • Q3 new orders up 106% year-on-year to a new quarterly high of €625m • Orders were led by logic, foundry, and then power/analog October 26, 2021 | A
Slide 10: Revenue and Gross Profit
REVENUE AND GROSS PROFIT Revenue Gross profit €m €m 49.9% 48.1% 433 47.2% 412 78 77 315 198 204 72 157 335 354 242 Q3 2020 Q2 2021 Q3 2021 Q3 2020 Q2 2021 Q3 2021 Spares & services revenue Equipment revenue Gross profit margin • Q3 revenue up 38% year-on-year both at constant currencies and as repor
Slide 11: R&D
R&D Gross and net R&D R&D expenses €m €m 13.8% 12.0% 11.5% 10.9% 8.8% 8.2% Q3 2020 Q2 2021 Q3 2021 Gross R&D expenses 44 47 52 52 47 Capitalization of development expenses (16) (20) (20) 44 Amortization of capitalized development 5 6 6 expenses Impairment of capitalized development 34 34 38 2 1 - ex
Slide 12: SG&A and Operating Result
SG&A AND OPERATING RESULT SG&A Operating result €m €m 12.3% 28.7% 26.7% 27.1% 11.1% 11.3% 49 118 117 46 39 84 Q3 2020 Q2 2021 Q3 2021 Q3 2020 Q2 2021 Q3 2021 SG&A as % of revenue Operating margin • Q3 2021 operating margin was 27.1%, up 0.4% pts • SG&A increased 26% year-on-year and 6% quarter- vs Q
Slide 13: Normalized Result from Investments and Net Earnings
NORMALIZED RESULT FROM INVESTMENTS AND NET EARNINGS Normalized result from investments Normalized net earnings €m €m 132 3 111 3 61 3 129 108 28 19 3 3 58 6 25 3 16 3 Q3 2020 Q2 2021 Q3 2021 Q3 2020 Q2 2021 Q3 2021 Amortization intangible assets(1) Result from investments (reported) Amortization int
Slide 14: Cash Position and Free Cash Flow
CASH POSITION AND FREE CASH FLOW Cash position Free Cash Flow(1) €m €m 98 525 15 465 435 69 22 83 24 8 47 17 Dec. 2020 Jun. 2021 Sept. 2021 Q3 2020 Dec-20 Q2 2021 Jun-21 Q3 2021 Sep-21 Dividend received from associates • Increase in cash position driven by strong FCF in • Significant increase in FCF
Slide 15: Capex and Working Capital
CAPEX AND WORKING CAPITAL Capex Working capital €m €m 63 55 55 266 243 252 19 17 13 Q3 2020 Q2 2021 Q3 2021 Dec. 2020 Jun. 2021 Sept. 2021 Days of working capital • The absolute increase in working capital vs. Q2 • Capex in FY 2021 driven by expansion and 2021 was explained by the higher activity le
Slide 16: Financial Outlook
FINANCIAL OUTLOOK As included in the Q3 2021 earnings press release published on October 26,2021: For Q4, on a currency comparable level, we expect sales of €470-500 million. Q4 bookings, on a currency comparable level, are expected to be around €600 million. Starting 2022, we will stop providing gu
Slide 17: Business Environment, Strategy, and Targets
BUSINESS ENVIRONMENT, STRATEGY, AND TARGETS
Slide 18: Digital Transformation Drives Structural Growth
DIGITAL TRANSFORMATION DRIVES STRUCTURAL GROWTH Global semiconductor revenue (US$ billion) Megatrends driving the semiconductor market 700 600 Security Smart 500 home 400 Smart- Industry phones 4.0 300 200 Edge Autonomous computing vehicles 100 AI 0 2018 2019 2020 2021 2022 2023 2024 2025 Automotive
Slide 19: WFE Market by Technology Node
WFE MARKET BY TECHNOLOGY NODE US$ bn 100 90 7nm and below 80 10nm 14nm 70 22nm 60 32nm 50 45nm 40 >65nm 30 20 10 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 • Strongest growth in leading edge nodes • Spending on 7nm and below expected to grow from ~25% of WFE in 2020 to ~46% of WFE in 2
Slide 20: Single-Wafer ALD Market Outlook
SINGLE-WAFER ALD MARKET OUTLOOK As presented in ASMI’s Investor Day on September 28, 2021 Outlook in 2021: Growth to US$3.1 - US$3.7 billion by 20251 Logic/foundry (~US$1.2 billion growth2) • High-k gate & Vt tuning • Metals • Patterning spacers & EUV layers • High aspect ratio gap-fill Memory (~US$
Slide 21: Epitaxy Market Outlook
EPITAXY MARKET OUTLOOK As presented in ASMI’s Investor Day on September 28, 2021 Outlook in 2021: Growth to US$1.5 - US$1.8 billion by 20251 Logic/foundry • Channel • Source/drain contact Memory • High Performance DRAM Power, Analog, Wafer 1 Range based on $90-110 billion WFE Center is ~ $1.7 billio
Slide 22: ALD and Epi Market Growth in Advanced Logic
ALD AND EPI MARKET GROWTH IN ADVANCED LOGIC As presented in ASMI’s Investor Day on September 28, 2021 Growth largely driven by node progression and move to gate-all-around ALD High-k gate & Vt tuning ALD Metal ALD patterning spacers & EUV layers CMOS Epi ASMI internal market data October 26, 2021 |
Slide 23: Strengths and Innovation
STRENGTHS AND INNOVATION As presented in ASMI’s Investor Day on September 28, 2021 Strengths Market leader in Focus on deposition especially ALD and Epi single-wafer ALD Strong history in Expanded market innovation position in Epi Leading products ASMI growing 1.5x and applications faster than WFE m
Slide 24: Strategy
STRATEGY As presented in ASMI’s Investor Day on September 28, 2021 Strategic objectives: How: Maintain leading ALD share in Increase R&D investments especially in logic/foundry, expand in memory fastest growing segments – ALD and Epi Increase Epi market share Continue enabling customer roadmaps with
Slide 25: Accelerating Progress in Sustainability
ACCELERATING PROGRESS IN SUSTAINABILITY As presented in ASMI’s Investor Day on September 28, 2021 Sustainability targets Net zero Addressing climate change Reduce environmental is imperative footprint of our operations Fostering inclusion and 100% renewable diversity in our employee base electricity
Slide 26: Financial Targets Towards FY25
FINANCIAL TARGETS TOWARDS FY25 As presented in ASMI’s Investor Day on September 28, 2021 FY16 FY20 FY25 Revenue €598 million €1.3 billion €2.8 to €3.4 billion1 13% CAGR 22% CAGR 16-21% CAGR Revenue growth (FY16-FY20) (FY12-FY16) (FY20-FY25) 46-50% Gross margin % 44% 47% (FY21-FY25) High single digit
Slide 27: Non-Financial Targets
NON-FINANCIAL TARGETS As presented in ASMI’s Investor Day on September 28, 2021 Category Targets GHG emissions Net zero by 2035, including scope 1, 2 and 3 emissions Renewable electricity 100% renewable electricity by 2024 Safety Recordable overall injury rate less than 0.1 cases per 100 employees b
Slide 28: Annex: Detailed Financials
ANNEX: DETAILED FINANCIALS
Slide 29: Income Statement
INCOME STATEMENT €m Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 New orders 303 379 411 516 625 Backlog 299 324 345 446 648 Book-to-bill ratio 1.0 1.1 1.0 1.3 1.4 Revenue 315 347 394 412 433 Cost of sales (158) (190) (199) (214) (229) Gross profit 157 157 195 198 204 Selling, general and administrative e
Slide 30: Balance Sheet
BALANCE SHEET €m Sept. 2020 Dec. 2020 Mar. 2021 Jun. 2021 Sept. 2021 Cash and cash equivalents 430 435 498 465 525 Accounts receivable 255 280 307 324 371 Inventories 176 162 171 173 187 Other current assets 77 73 54 79 76 Right-of-use Assets - net 26 23 24 23 22 Investments in associates 747 743 78
Slide 31: Cash Flow Statement
CASH FLOW STATEMENT €m Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Net earnings 58 79 122 108 129 Depreciation, amortization and impairments 21 25 20 25 24 Result from investments (3) (24) (11) (16) (25) Evaluation tools (9) (5) (11) (5) (4) Other adjustments 11 21 (43) 11 8 Change in working capital (2
Slide 32: Working Capital: Historical Development
WORKING CAPITAL: HISTORICAL DEVELOPMENT €m 500 120 Working capital 450 Quarterly sales 100 Days of working capital (rhs) 400 350 80 300 250 60 200 40 150 100 20 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2* Q3 Q4* Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Numbers based on reported financials; *excludes
Slide 33: Orders and Backlog: Historical Development
ORDERS AND BACKLOG: HISTORICAL DEVELOPMENT €m 700 Orders 650 Backlog 600 550 500 450 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2* Q3 Q4* Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 Numbers based on reported financials; *excludes the impact of patent litigation and arbitration se
Slide 34: Revenue and Operating Result: Historical Development
REVENUE AND OPERATING RESULT: HISTORICAL DEVELOPMENT €m 1,600 350 Revenue (lhs) 1,400 300 Operating result (rhs) 1,200 250 1,000 200 800 150 600 100 400 200 50 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020 *excludes settlement gains of €159m October 26, 2021 | ASMI proprietary informat
Slide 35: Excess Cash Returned to Shareholders
EXCESS CASH RETURNED TO SHAREHOLDERS Dividend per share Cumulative cash returned to market € paid over €m 3.00 2,000 1,800 1,600 1.50 2.00 1,400 1,200 1,000 800 1.00 0.60 0.70 0.70 0.80 600 1.50 0.40 0.50 0.50 0.50 400 200 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013
Slide 36: For more information, please visit: www.asm.com
For more information, please visit: www.asm.com