Asm International N.v. · EURONEXT:ASM
Asm International — Q4 2021 Earnings Presentation
34 slides from Asm International's earnings presentation, Feb 22, 2022
Slide 1: ASMI Investor Day 2021
ASMI INVESTOR DAY 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 4 Q4 2021 and FY 2021 results 6 Business environment, strategy, and targets 20 Annex: detailed financials 26 February 22, 2022 | 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: Q4 and FY 2021 Results
Q4 AND FY 2021 RESULTS
Slide 7: Q4 2021 Key Takeaways
Q4 2021 KEY TAKEAWAYS Q4 new orders increased to a new record of €645 million (+70% YOY), driven by continued strength in the logic/foundry segment Q4 revenue of €491 million came in towards the higher end of the guidance of €470-500 million, despite continuing challenging supply chain conditions €5
Slide 8: FY 2021 Financial Highlights
FY 2021 FINANCIAL HIGHLIGHTS €, year-on-year comparisons +30% 47.9% €492m Revenue: €1.7b Gross margin Cash position (+34% at constant currencies) (47.0% in FY20) +20% 28.4% €266m Gross R&D: €206m Operating margin Free cash flow(1) (24.6% in FY20) +93% +70% €140m Normalized(2) result from Normalized(
Slide 9: Record-High New Orders and Backlog
RECORD-HIGH NEW ORDERS AND BACKLOG New orders Backlog € million € million 1.4 1.3 1.1 645 811 625 648 379 324 Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021 Book-to-bill ratio • Record-high new orders in Q4 2021, up 70% YOY, were led by foundry, logic, and then memory • Backlog up from €648 million
Slide 10: Strong Revenue Growth Driven by Logic/Foundry
STRONG REVENUE GROWTH DRIVEN BY LOGIC/FOUNDRY Quarterly Annual € million € million 1,730 491 322 1,328 433 92 78 277 347 71 1,408 400 1,051 354 275 Q4 2020 Q3 2021 Q4 2021 FY 2020 FY 2021 Spares & services revenue Equipment revenue Spares & services revenue Equipment revenue • FY 2021 revenue increa
Slide 11: FY 2021 Gross Margin Improved
FY 2021 GROSS MARGIN IMPROVED Quarterly Annual € million € million 47.9% 47.2% 47.0% 47.0% 45.2% 828 231 204 624 157 Q4 2020 Q3 2021 Q4 2021 FY 2020 FY 2021 Gross profit margin Gross profit margin • Q4 2021 gross profit increased 13% QOQ and 48% • FY 2021 gross profit margin increased by 0.9% pt YOY
Slide 12: SG&A Expenses
SG&A EXPENSES Quarterly Annual € million € million 12.1% 11.9% 11.3% 11.2% 11.0% 190 157 55 49 42 Q4 2020 Q3 2021 Q4 2021 FY 2020 FY 2021 SG&A as % of revenue SG&A as % of revenue • Q4 2021 SG&A expenses increased 13% QOQ and 31% YOY • FY 2021 SG&A expenses decreased as a % of • The increase is expl
Slide 13: Increased Investments in R&D
INCREASED INVESTMENTS IN R&D Quarterly Annual € million 13.0% € million 12.9% 12.0% 13.0% 11.9% 10.7% 8.8% 9.9% 10.5% 8.7% 206 64 172 52 45 139 151 49 37 38 Q4 2020 Q3 2021 Q4 2021 FY 2020 FY 2021 Gross R&D as % of revenue Net R&D as % of revenue Gross R&D as % of revenue Net R&D as % of revenue Gro
Slide 14: Improved Operating Profitability
IMPROVED OPERATING PROFITABILITY Quarterly Annual € million € million 28.4% 27.1% 26.7% 491 24.6% 22.4% 131 117 327 78 Q4 2020 Q3 2021 Q4 2021 FY 2020 FY 2021 Operating margin Operating margin • Q4 2021 operating margin increased 4.3% pt YOY • FY 2021 operating result increased 50% to record- but wa
Slide 15: Result from Investments
RESULT FROM INVESTMENTS Quarterly Annual € million € million 87 12 45 27 28 26 3 3 13 74 3 24 25 23 32 Q4 2020 Q3 2021 Q4 2021 FY 2020 FY 2021 Amortization intangible assets(1) Result from investments (reported) Amortization intangible assets(1) Result from investments (reported) • Normalized result
Slide 16: Net Earnings
NET EARNINGS Quarterly Annual € million € million 507 12 138 132 3 3 298 82 13 3 495 129 135 285 79 Q4 2020 Q3 2021 Q4 2021 FY 2020 FY 2021 Amortization intangible assets(1) Net earnings (reported) Amortization intangible assets(1) Net earnings (reported) • Q4 2021 normalized net earnings increased
Slide 17: A Solid Cash Position and a Healthy Free Cash Flow
A SOLID CASH POSITION AND A HEALTHY FREE CASH FLOW Cash position Free cash flow(1) € million € million 525 492 266 435 120 Dec. 2020 Sept. 2021 Dec. 2021 FY 2020 FY 2021 • FY 2021 free cash flow up 122% YOY thanks to increased profitability and partly offset by higher tax • Cash position in Q4 2021
Slide 18: Capex and Working Capital
CAPEX AND WORKING CAPITAL Capex(1) Working capital € million € million 63 55 58 316 95 266 243 79 FY 2020 FY 2021 Dec. 2020 Sept. 2021 Dec. 2021 Days of working capital • FY 2021 capex mainly driven by expansion and • Q4 2021 working capital increased as a result of upgrading of R&D labs higher acti
Slide 19: Financial Outlook
FINANCIAL OUTLOOK As included in the Q4 2021 earnings press release published on February 22,2021: “Supported by a record high order backlog at the end of Q4, ASM has started the year on a strong footing. Looking at the first half of the year of 2022, supply chain conditions are expected to remain t
Slide 20: Business Environment, Strategy, and Targets
BUSINESS ENVIRONMENT, STRATEGY, AND TARGETS
Slide 21: WFE Spending
WFE SPENDING WFE spending WFE by technology node US$ billion US$ billion 120 100 90 100 80 ≤7nm 70 80 10nm 60 14nm 60 50 22nm 40 40 32nm 30 45nm 20 20 10 >65nm 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 Source: VLSI, January 2022 Source: Gartner, January 2022
Slide 22: Single-Wafer ALD and Epitaxy Market Outlook
SINGLE-WAFER ALD AND EPITAXY MARKET OUTLOOK Single-wafer ALD market Epi market US$ billion 3.1 - 3.7 US$ billion CAGR 16-20% 1.5 - 1.8 1.5 CAGR 13-18% 0.8 2020 2025 2020 2025 Source: ASMI • ALD and Epi expected to be the fastest growing segments in the deposition market driven by increasing device c
Slide 23: Our Strategy Is Growth Through Innovation
OUR STRATEGY IS GROWTH THROUGH INNOVATION 6 STRATEGIC OBJECTIVES 5 KEY STRATEGY ENABLERS Grow ALD business by maintaining leadership in Best people logic/foundry and expanding in memory Increase Epi market share Leading-edge innovation Selective growth in VF and PECVD niches Early customer engagemen
Slide 24: Accelerating Our Sustainability Commitment
ACCELERATING OUR SUSTAINABILITY COMMITMENT Our Net Zero target: 2021 achievements include: Reduce environmental footprint of our operations Transitioned most of our key sites to renewable energy in 2021 100% renewable electricity by 2024 CDP Climate and Water Security scores improved from C to B Aim
Slide 25: Financial Targets Towards FY 2025
FINANCIAL TARGETS TOWARDS FY 2025 FY 2020 FY 2021 FY 2025 Revenue €1.3 billion €1.7 billion €2.8 to €3.4 billion1 22% CAGR 16-21% CAGR Revenue growth 34% YOY1 (FY16-FY20) (FY20-FY25) 46-50% Gross margin % 47.0% 47.9% (FY21-FY25) High single digit SG&A % revenue 11.9% 11.0% (FY25) High single digit R
Slide 26: Annex: Detailed Financials
ANNEX: DETAILED FINANCIALS
Slide 27: Income Statement
INCOME STATEMENT € million Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2020 FY 2021 New orders 379 411 516 625 645 1,314 2,196 Backlog 324 345 446 648 811 324 811 Book-to-bill ratio 1.1 1.0 1.3 1.4 1.3 1.0 1.3 Revenue 347 394 412 433 491 1,328 1,730 Cost of sales (190) (199) (214) (229) (260) (705) (
Slide 28: Balance Sheet
BALANCE SHEET € million Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Cash and cash equivalents 435 498 465 525 492 Accounts receivable 280 307 324 371 447 Inventories 162 171 173 187 212 Other current assets 73 54 79 76 70 Right-of-use assets - net 23 24 23 22 27 Investments in associates 743 782 769 808 849
Slide 29: Cash Flow Statement
CASH FLOW STATEMENT € million Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2020 FY 2021 Net earnings 79 122 108 129 135 285 495 Depreciation, amortisation and impairments 25 20 25 24 27 89 96 Net loss (gain) from sale of PP&E - - - - (4) - (4) Result from investments (24) (11) (16) (25) (23) (32) (74)
Slide 30: R&D Breakdown
R&D BREAKDOWN € million Q4 2020 Q3 2021 Q4 2021 FY 2020 FY 2021 Gross R&D expenses 45 52 64 172 206 Capitalization of development expenses (16) (20) (24) (64) (82) Amortization of capitalized development exp. 5 6 8 21 25 Impairment of capitalized development exp. 3 - 1 10 2 Net R&D expenses 37 38 49
Slide 31: Historical Development
HISTORICAL DEVELOPMENT Orders and backlog Working capital € million € million 900 600 120 800 500 100 700 600 400 80 500 300 60 400 300 200 40 200 100 20 100 - - 0 Q4 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q2¹ Q4¹ Q2¹ Q4¹ 2017 2018 20
Slide 32: Revenue and Operating Result: Historical Development
REVENUE AND OPERATING RESULT: HISTORICAL DEVELOPMENT € million 2,000 600 Revenue (lhs) Operating result (rhs) 1,800 500 1,600 1,400 400 1,200 1,000 300 800 200 600 400 100 200 0 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019¹ 2020 2021 (1) Excluding settlement gains of €159m February 22, 2022 |
Slide 33: Excess Cash Returned to Shareholders
EXCESS CASH RETURNED TO SHAREHOLDERS Dividend per share Cumulative cash returned to market € paid over € million 2,500 3.00 2,000 (1) 2.50 1,500 1.50 2.00 1,000 1.00 0.80 0.70 0.70 500 0.60 1.50 0.50 0.50 0.50 0.40 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2010 2011 2012 2013 201
Slide 34: For more information please visit www.asm.com
For more information please visit www.asm.com