Asm International N.v. · EURONEXT:ASM
Asm International — Shareholder Meeting (May 2020)
40 slides from Asm International's shareholder meeting presentation, May 18, 2020
Slide 1: Annual General Meeting of Shareholders 2020
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
Slide 3: Agenda
AGENDA BUSINESS AND RESUEFS REVIEW2019 > ~~ / ESG ANDO Rane EXCELLENCE ASM PERFORMANGE IN FHE PAST AZYEARS COVID=19-RESRONSE ANDIMPAGT. FINANCIAL HIGHLIGHTS 2019 Ye N/) —~ CURRENT MARKED TRENDS AND:OUTLOOK
Slide 4: COVID-19 Response and Impact
Slide 5: COVID-19 Response and Impact
COVID-19 RESPONSE AND IMPACT @ > Health and safety of our employees, families and business partners is our key priority. Necessary measures, e.g. enabling work from home and split-shift work, are taken > Strong commitment of ASM employees and business partners shown. We were able to ship nearly all
Slide 6: Business and Results Review 2019
EVIEW 2019 BUSINESS AND RESULTS =
Slide 7: Wafer Fab Equipment by Industry Segment
BUSINESS AND RESULTS REVIEW 2019 e WAFER FAB EQUIPMENT BY INDUSTRY SEGMENT (USS BILLION) e e e 70 — 60 — * ASMI estimates 2019 50 — WFE decreased high 40 — single digits % ¢ Strong growth in 30 — logic/foundry 20 — ¢* Memory spending weak in cyclical 10 — decline @® Other @ Memory ©® Logic/Foundry S
Slide 8: Business and Results Review 2019
BUSINESS AND RESULTS REVIEW 2019 eee0ee0 >w strongly and continued to account for over half equipment revenue ASM
Slide 9: Business and Results Review 2019
BUSINESS AND RESULTS REVIEW 2019 eee0ee0 oundry sales grew strongly in 2019, driven by solid estments in the advanced nodes whereby our share of wallet Onm logic and 5nm foundry nodes increased substantially M sales were flat in a sharply lower market, as we : ‘om a number of customer specific proje
Slide 10: Synergis ALD Increasing Market Penetration
BUSINESS AND RESULTS REVIEW 2019 SYNERGIS® ALD INCREASING MARKET PENETRATION : Expanding ALD Served Available Market with thermal ALD solutions for Logic/Foundry & Memory ¢ Synergis demand strong in 2019 following 2018 launch ¢ Wide range of films allows us to address more ALD applications ¢ Leverag
Slide 11: Intrepid ESA Epitaxy
BUSINESS AND RESULTS REVIEW 2019 INTREPID® ES” EPITAXY eee0ee0 We improved our Epi position in the foundry segment going from 7nm to 5nm ¢ ASM’s Epi market share increased in 2019 * Previum® pre-clean steps are critical to enable high-quality Epi film growth in S5nm devices and beyond * Continued he
Slide 12: A400 DUO Vertical Furnace Launched in 2019
BUSINESS AND RESULTS REVIEW 2019 A400™ DUO VERTICAL FURNACE LAUNCHED IN 2019 eee0ee0 Addressing growth in Power, Analog, RF, and MEMS ¢ Wide range of 200mm furnace applications * Qualified for production at multiple customers in Europe, US and Asia. Multiple penetrations in China
Slide 13: Financial Highlights 2019
Slide 14: Financial Highlights 2019
FINANCIAL HIGHLIGHTS 2019 159 215 ® Settlement proceeds 910 @ Spares & Service sales © Equipment sales e0eee0e0
Slide 15: Financial Highlights 2019
FINANCIAL HIGHLIGHTS 2019 e0eee0e0 159 ® Settlement proceeds 220 @ Result excl. settlement proceeds
Slide 16: Financial Highlights 2019
FINANCIAL HIGHLIGHTS 2019 e0eee0e0 @ Result from 325 investments @ Net result excl. ASMPT
Slide 17: Financial Highlights 2019: Net Cash
AMOUNTS IN € MILLION FINANCIAL HIGHLIGHTS 2019 e0eee0e0 Net cash Net cash end 2018 end 2019 Free Other cash flow Dividend received from ASMPT Share buybacks ‘Other’ includes €159 million . at in proceeds from settlements ZX ASM Ss Dividend to ASMI shareholders
Slide 18: Shareholder Remuneration
SHAREHOLDER REMUNERATION DIVIDEND PER SHARE IN € PAID OVER 3.5 — 3.0 — 2.5 — 2.0 — 1.5 — 1.0 — * $6d6656 FINANCIAL HIGHLIGHTS 2019 ail" * Proposed @ Regular dividend ©® Extra-ordinary dividend eeee0e0
Slide 19: Cumulative Cash Returned to Market
FINANCIAL HIGHLIGHTS 2019 CUMULATIVE CASH RETURNED TO MARKET ’10-’19 (€ MILLION) 2,000 — 1,500 — peereerety ® Buyback convertibles @ Return of capital @ Dividends ©® Share buybacks e0eee0e0
Slide 20: ESG and Operational Excellence
Slide 21: Global Injury Rates
ESG AND OPERATIONAL EXCELLENCE GLOBAL INJURY RATES - STRIVING FOR ZERO HARM! eeee0e0 0.9 — — Injury rate Improved from 2018: 0.6 — Rll oO nan 223% 0.3 — ; © ae 0.17 —— Recordable Injury rate* Improved from 2018: * @@6080 6.7% * Injuries requiring > first aid, restricted duty, or lost work days, rate
Slide 22: Global ASM Water Consumption
ESG AND OPERATIONAL EXCELLENCE GLOBAL ASM WATER CONSUMPTION * Phoenix water reuse plant functional, 5.5% absolute global reduction (from 2018) ¢ Normalized objective of 45% reduction from 2015 baseline maintained * Recognition awards received — Phoenix Utility (SRP) and SEAL award 200,000 — — 3,000
Slide 23: Long-Standing Commitment to Corporate Responsibility
ESG AND OPERATIONAL EXCELLENCE ASM LONG-STANDING COMMITMENT TO CORPORATE e RESPONSIBILITY 2012 Adopted Electronic Industry Citizenship Coalition (EICC) tenets 2014 Adopted EICC tenets as Supply Chain Code of Conduct - 100% of Strategic and Critical suppliers have formally committed 2016 Became membe
Slide 24: Customer Awards: Intel PQS
ESG AND OPERATIONAL EXCELLENCE CUSTOMER AWARDS eeee0eo Intel 2019 preferred quality supplier (PQS) award * The PQS award recognizes companies like ASMI that Intel believes have relentlessly pursued excellence and conducted business with resolute professionalism * To qualify for PQS status, suppliers
Slide 25: Customer Awards: TSMC Excellent Performance
CUSTOMER AWARDS TSMC Excellent Performance award 4% consecutive year The award was received by ASM in recognition of its technology collaboration with TSMC TSMC explained three points that contributed to the award: ) 2) 3) Outstanding development support Continuous efforts in productivity improvemen
Slide 26: Current Market Trends and Outlook
Slide 27: Semiconductor Sales by Key Application
CURRENT MARKET TRENDS AND OUTLOOK : SEMICONDUCTORS SALES BY KEY APPLICATION (USS BILLION) e Long term semi growth drivers are solid state drives, servers, automotive and industrial : 700 — 600 — ~ Consumer Electronics 500 — @ Compute (ex. Servers) ® Communication 400 — (ex. Smartphones) 300 — @ Smar
Slide 28: Wafer Fab Equipment by Technology Node
CURRENT MARKET TRENDS AND OUTLOOK WAFER FAB EQUIPMENT BY TECHNOLOGY NODE (USS BILLION) ® 7nm and below @ 14nm/10nm ® 32nm/22nm ~ 45nm and above Source: Gartner, April 2020 eo ---
Slide 29: Logic/Foundry and Memory Outlook
CURRENT MARKET TRENDS AND OUTLOOK IN LINE WITH OUR 97 2020 EARNINGS REPORT: Logic/Foundry ¢ Healthy spending environment driven by 10nm Logic and sub-10nm Foundry * Continued development engagements with customers on next nodes, 7nm in logic and 3nm in Foundry Memory ¢ Equipment spending remained mo
Slide 30: Analog and China Outlook
CURRENT MARKET TRENDS AND OUTLOOK IN LINE WITH OUR 97 2020 EARNINGS REPORT: Analog ¢ In this smaller segment, equipment demand is impacted by current weakening of end markets such as in Automotive China ¢ Spending by domestic customers in China strongly increased in Q1 2020 * Increasing part of spen
Slide 31: 2020 WFE Uncertainty and Long-Term Outlook
CURRENT MARKET TRENDS AND OUTLOOK IN LINE WITH OUR 97 2020 EARNINGS REPORT: Difficult to forecast full-year 2020 WFE given uncertainties ¢ Market demand held up well so far however COVID-19 related impact on WFE demand in second half 2020 still uncertain * Government measures to contain COVID-19 cau
Slide 32: Strategic Priorities
CURRENT MARKET TRENDS AND OUTLOOK STRATEGIC PRIORITIES Increase addressable market in ALD ¢ Maintain leadership in growing Logic/Foundry market ¢ Broaden reach and increase share of wallet in Memory markets Drive structurally higher sales in other product lines ¢ Broaden position and drive share gai
Slide 33: Well Positioned for Long Term Growth
CURRENT MARKET TRENDS AND OUTLOOK WELL POSITIONED FOR LONG TERM GROWTH * Strong traction new products and applications ¢ Strengthened position in Chinese market ¢ New R&D and manufacturing facility in Dongtan, South Korea, reflecting our strategic focus on this region ¢ Strong increase of manufactur
Slide 34: Q2 2020 ASM Guidance
CURRENT MARKET TRENDS AND OUTLOOK Q2 2020 ASM GUIDANCE For Q2 on a currency comparable level we now expect sales of €300-350 million. We slightly widened the range by reducing the lower end compared to the earlier indicated range of €330-350 million. The widening of the range is fully attributable t
Slide 35: ASM Performance in the Past Years
ASM PERFORMANCE IN THE PAST 12 YEARS
Slide 36: Revenue Outperformance versus WFE 2009-2019
ASM PERFORMANCE IN THE PAST 12 YEARS REVENUE OUTPERFORMANCE VERSUS WFE 2009-2019 INDEXED DEVELOPMENT @o0oCceco 800 — 700 — au —ASM 500 — revenue * 400 — 300 — == Wafer Fab 200 — Equipment ass = * Front-end only ‘000000000082 —v—
Slide 37: ASM Injury Rate Performance
ASM PERFORMANCE IN THE PAST 12 YEARS ASM INJURY RATE PERFORMANCE @e ->-0-0- 2.0 — 1.6 — — — Injury 14 = rate 0.8 — The number — of injuries 0.4 — per 100 employees "00000000000
Slide 38: Market Capitalization ASMI
ASM PERFORMANCE IN THE PAST 12 YEARS MARKET CAPITALIZATION ASMI (€ MILLION) 7,000 — 6,000 — 5,000 — 4,000 — 3,000 — 2,000 — 1,000 — ‘0000000000000 @#coCce
Slide 39: Value Stake ASMPT as % of Market Cap ASMI
ASM PERFORMANCE IN THE PAST 12 YEARS VALUE STAKE ASMPT AS % OF MARKET CAP ASMI 250 — 200 — 150 — 100 — 50 — 'OQO09000009000 @ecocec
Slide 40: Cumulative Total Return Since 2009
ASM PERFORMANCE IN THE PAST 12 YEARS CUMULATIVE TOTAL RETURN SINCE 2009 0% 500% 1,000% 1,500% 2,000% 2,500% 3,000% Normalized scale Direct peers is the average total return of Applied Materials, Lam Research and Tokyo Electron ° $ @ é