Asm International N.v. · EURONEXT:ASM
Asm International — Q4 2012 Earnings Presentation
34 slides from Asm International's earnings presentation, Mar 6, 2013
Slide 1: Investor presentation
Investor presentation 6 March 2013 © 2009 ASM Proprietary Information
Slide 2: Safe Harbor Statements
Safe Harbor Statements All matters discussed in this business and strategy update, 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-looking stateme
Slide 3: Investment Highlights
Investment Highlights One of the few companies offering both Front End and Back End equipment $11.7 B market in 2012 rising to $15.8 B in 2016 ( deposition and IC assembly only, VLSI Research) Challenging market development in LED equipment and healthy SMT market development Leading position
Slide 4: Semiconductor Market Through 2017
Semiconductor Market Through 2017 Semiconductor Sales1 ($B) Semiconductor Dollars Per Unit1 ($) 180 160 Ultramobile PC 160 140 Notebook PC 140 PC 120 Desk-based PC 120 100 Utility/Basic Media Tablet 100 Premium Media Tablet 80 80 60 Premium Smartphone 60 Media Tablet 40 40 Smartphone 20 20 Tradition
Slide 5: ASM's Addressable Markets
ASM’s Addressable Markets IC manufacturing 2012 ($ 38.1 Billion) 2016 ($55.3 Billion) Etch & Clean Assembly Assembly $ 6.8 B $ 4.2 B $ 5.0 B Test $ 3.7 B Other Wafer Process Deposition $ 7.5 B Lithography $ 10.8 B Deposition $ 8.4 B $ 7.5 B Source: VLSI Research Inc., January, 2013 © 2009 ASM Propri
Slide 6: ASM Front End Markets
ASM Front End Markets $M ASM addressable IC Deposition market by Sub-Segment 7000 Key Growth Drivers: 6000 Spending result of need to 5000 advance towards 20/14nm and beyond and by capacity 4000 Diffusion/Furnace increases Epitaxy 3000 PECVD Logic and Foundry spending to ALD remain healthy in 20
Slide 7: Key Market Drivers: Wafer Fab Equipment Forecast by Node
Key market Drivers Wafer Fab Equipment Forecast by node Wafer Fab Equipment by Node 45,000 40,000 Opportunity for WFE 35,000 share increase 30,000 14 nm & Below 25,000 22 nm $M 32 nm 20,000 45 nm 65 nm 90 nm & Above 15,000 10,000 5,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Gartner Dec, 2012
Slide 8: ASM Products – Front-end
ASM Products – Front-end Market Requirements: 32nm→22nm →14nm and beyond Process Application ASM Relative Positioning ALD and PEALD • ALD key for High-k Metal Gate #1 in the served ALD market technology Qualified by nearly all Logic • ALD solution (Hafnium oxide) • 3D FinFET requires more manufa
Slide 9: Two new high productivity platforms introduced in 2012
ASM Products – Front-end Two new high productivity platforms have been introduced in 2012 High productivity XP cluster with 4 Epi reactors IntrepidTM XP Dragon® XP8 Epitaxy PECVD Eagle® XP8 PEALD High throughput, low CoO single wafer deposition tool © 2009 ASM Proprietary Information 9
Slide 10: Growing Wallet Share With Top Clients
ASM Products – Front-end Growing Wallet Share With Top Clients ASM Revenue % Key Developments: Diversification of customer base from Logic to Memory and Foundries (recently driven by ALD/PEALD) Momentum Asia growing © 2009 ASM Proprietary Information 10
Slide 11: Front End's Competitive Advantages
Front End’s Competitive Advantages ASMI Front-end started ALD technology in 1999 and has a strong time advantage over competition. The ALD (and PEALD) technology is strongly patented ALD is now mainstream and there is no strong competition until now Further miniaturization will require more
Slide 12: What Has Changed – Front End
What Has Changed – Front End Manufacturing consolidated into 1 location in Singapore since 2010 Adjacent to Back End facility Significantly streamlined R&D, Product Management and G&A functions New cost cutting measures recently undertaken leading towards further improved margins Further r
Slide 13: ASM Back End Markets
ASM Back End Markets $M IC Assembly and Packaging Market 6000 Key Growth Drivers: 5000 4000 For IC equipment IC Dicing Increasing unit volume 3000 Increasing share of the Asia Pacific 2000 ASM Served region benefiting regional ties of Available Market IC Equipment ASMPT 1000 CAGR 2010-2016 1.5%
Slide 14: ASM Back End Markets (cont'd)
ASM Back End Markets (cont’d) Surface Mount Technology (SMT) market development Key Growth Drivers: For SMT Improve market position in SE Asia Add Low-end tools to product portfolio Source: ASM SIPLACE Market Intelligence, February 2013 © 2009 ASM Proprietary Information Monday, March 11, 2013 1
Slide 15: Turnover distribution by products
Turnover distribution by products ASM Back End Markets 2012 2010 Back-end EQT 2011 Lead frame SMT EQT © 2009 ASM Proprietary Information Monday, March 11, 2013 15
Slide 16: ASM Products – Back End
ASM Products – Back End IC manufacturing - LED manufacturing - Surface Mount Technology Market Application ASM Relative Positioning IC manufacturing • Die bonding • Wire bonding #1 in the market • Assembly tools • Moulding Qualified by most IDM’s • Packaging tools and Subcontractors’ • Trim & Fo
Slide 17: Chip Assembly Solution for Advanced Packages
Chip Assembly Solution for Advanced Packages Back End Expanding SMT equipment into non- traditional placement market Ideal for WLFO (Wafer Level Fan Out) , SiP(System-in-package), LED, Embedded PCB and flip chips Enables the combination of flip-chip and SMT operations in a single pass Suppor
Slide 18: Back End's Competitive Advantages
Back End’s Competitive Advantages Back-end industry continues to move to SE Asia/China ASMPT the only large BE company fully located in SE Asia has the largest part of its operations in China/Hong Kong Cost is the most important topic in Back-end. ASMPT provides the lowest cost solutions to
Slide 19: What Has Been Achieved – Back End
What Has Been Achieved – Back End ASMPT has broadened its portfolio and expanded into new markets Continued its #1 position in the Assembly & Packaging market, in IC’s, LED’s and CMOS image sensors Profitable leadframe business SMT improved its market position and profitability in 2012: Cr
Slide 20: Response to Challenging Times – Back End
Response to Challenging Times – Back End Tightly control cost and expenses to cope with the short term challenges Drive for structural cost reduction Bring down overhead cost Raise productivity through innovation and automation Supplement internal manufacturing with outsourcing Strike a
Slide 21: Financial Overview
Financial Overview © 2009 ASM Proprietary Information
Slide 22: Key Highlights – Q4 2012
Key Highlights – Q4 2012 • Revenues down 22% q-o-q and 9% y-o-y • In FE sales declined with 3% q-o-q and 18% y-o-y • In BE sales declined with 15% q-o-q and grew 12% y-o-y • Q4 Book-to-Bill ratio of 1.0 • Front End 1.4, Back End 0.8 • Q4 Back log € 289m (0.9 X Q4 sales) • EBIT margin of -1% down 9%
Slide 23: Net Earnings Quarter - Group
Net Earnings Quarter - Group Q4 Q3 Q4 Q4 '12/ Q4 '12/ € million 2012 2012 2011 Q3 '12 Q4 '11 Front End 93.1 96.1 114.2 ‐3% ‐18% Back End 266.8 313.2 237.8 ‐15% 12% Net Sales 319.9 409.3 352.0 ‐22% ‐9% Gross Margin 87.8 125.4 106.2 ‐30% ‐17% as % of sales 27.5% 30.6% 30.2% Selling, general and admini
Slide 24: Net Earnings Year - Group
Net Earnings Year - Group Full Year Full Year 2012/ € million 2012 2011 2011 Front End 370.4 456.1 ‐19% Back End 1,047.7 1,178.3 ‐11% Net Sales 1,418.1 1,634.3 ‐13% Gross Margin 440.4 582.2 ‐24% as % of sales 31.1% 35.6% Selling, general and administrative (202.1) (176.5) 15% Research and developmen
Slide 25: Balance Sheet - Group
Balance Sheet - Group € million Dec 2011 Mar 2012 Jun 2012 Sep 2012 Dec 2012 Cash and cash equivalents 390 405 334 297 291 Other current assets 806 773 917 901 804 Property, plant and equipment, net 260 259 279 275 275 Goodwill, net 52 51 54 52 52 Other Assets 74 74 84 89 75 Total Assets 1,582 1,561
Slide 26: Cash Flow - Group
Cash Flow - Group Q4 Q3 Q4 Full Year Full Year € million 2012 2012 2011 2012 2011 Net earnings (loss) (23.8) 17.2 21.7 40.4 316.2 Depreciation 15.0 15.1 12.8 56.9 47.0 Working Capital 41.7 (59.7) 19.8 (60.9) (61.4) PPA, restructuring & impairments (0.9) ‐ 8.0 (0.8) (89.8) Others 18.1 7.6 (22.3) 6.9
Slide 27: Historical development - Group
Historical development - Group © 2009 ASM Confidential and Proprietary Information Monday, March 11, 2013 27
Slide 28: Bookings & Backlog - Group
Bookings & Backlog - Group Book-to-Bill ratio increased to 1.0 (Q3: 0.7) Backlog decreased to €289m © 2009 ASM Confidential and Proprietary Information Monday, March 11, 2013 28
Slide 29: Financial Outlook
Financial Outlook Based upon the current backlog and our current visibility: Sales in the Front-end are expected to show a double digit decline in Q1, as compared to Q4 2012. However, we expect our Front-end operation to show an order intake in Q1, strongly above the expected sales level for Q1. Bas
Slide 30: Back-up slides
Back-up slides © 2009 ASM Proprietary Information
Slide 31: Selected Front End Products
Selected Front End Products Eagle® XP Pulsar® PECVD ALD ALD High-k leader PEALD Common Platform Epsilon® 3200 A412 Epitaxy Vertical Furnace Advanced Highest strain productivity layers © 2009 ASM Proprietary Information Monday, March 11, 2013 31
Slide 32: Full Range of Advanced Flip Chip Solutions
Full Range of Advanced Flip Chip Solutions High Pin count – High End High Pin count – Mid Range Low Pin count (TCB) (C4/TS) (C4) AD8312FC AD9312 AD9212/IS9012TS AD838FC CPU Application Processor RF chips SoC GPU Wireless chips ± 2 µm ± 10 µm ± 15 µm Placement Accuracy © 2009 ASM ASM Pacific Technolo
Slide 33: Innovative Solutions for Fast Growing LED Packaging Market
Innovative Solutions for Fast Growing LED Packaging Market Material Die Sorting Die Bonding Curing - Leadframe & Wafer Post Curing Encapsulation / Phosphor Application Wire Bonding Lens Attach / Jetting Lens Molding Singulation Testing, Sorting and Taping Finished © 2009 ASM Proprietary Information
Slide 34: ASM in Surface Mount Technology
ASM in Surface Mount Technology SIPLACE provides unique capabilities to allow customized processes, utilize leading edge technologies, and establish build-to-order concepts! © 2009 ASM Proprietary Information Monday, March 11, 2013 34