Asm International N.v. · EURONEXT:ASM
Asm International — Shareholder Meeting (May 2023)
36 slides from Asm International's shareholder meeting presentation, May 15, 2023
Slide 1: Growth through innovation
Growth through innovation Annual General Meeting of Shareholders 2023 Benjamin Loh, President and CEO May 15, 2023 Growth through innovation | 1
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 Environment, social and governance Business and (ESG) results review 2022 Key takeaways Mid-term outlook and priorities Outlook 2023 May 15, 2023 | Growth through innovation | 3
Slide 4: Key takeaways
Key takeaways 1 2022 was another record-breaking year, marked sixth consecutive year of double-digit 5 Continue to be confident of meeting 2025 mid-term targets of €2.8 – 3.4 billion growth, and grew more than three times as fast revenue, operating margin of 26 – 31%. as WFE. (2022 achievements at €
Slide 5: Business and results review 2022
Agenda Business and results review 2022 May 15, 2023 | Growth through innovation | 5
Slide 6: 2022 in review
2022 in review Semiconductor demand slowed in 2H due to geopolitical instability, higher inflation, tightening monetary conditions and lower demand as the pandemic ended resulting in overall growth of 0.2% for 2022 (Gartner). Outlook for 2022 growth of the Wafer Fab Equipment market gradually reduce
Slide 7: A record-breaking year
A record-breaking year Total Equipment Spares & Combined Memory revenue revenue services logic/foundry sales €2.4 billion, +38% at constant +11% YOY Key growth driver 19% of equipment +33% YOY at currencies with at constant supported by revenue and constant record sales currencies driven investments
Slide 8: Financial performance
Financial performance ASM is building its future on strong growth figures and a consistently solid financial performance Bookings Revenue(1) Normalized gross margin(2) 4.000 3.000 60% 3.153 2.411 47,9% 47,5% 3.000 2.196 2.000 1.730 40% 2.000 1.000 20% 1.000 - - 0% 2018 2019 2020 2021 2022 2018 2019
Slide 9: Acquisitions in 2022 - LPE and Reno
Acquisitions in 2022 - LPE and Reno LPE - Silicon Carbide epitaxy systems • SiC epitaxy is an attractive, high growth market, highly synergistic with ASM’s silicon epitaxy business. • Transportation has highest reliance on fossil fuels1 → Consumers/governments driving EV adoption. • Strong demand fo
Slide 10: New products 2022
New products 2022 SONORA® Vertical furnace launched in 2022 • New 300mm furnace addresses logic/foundry, memory and analog/power markets. • Dual-batch reactors for high volume manufacturing of LPCVD, diffusion and oxidation applications. • SONORA achieves 30% higher productivity and a 50% lower cycl
Slide 11: Customer awards
Customer awards TSMC Intel Samsung Excellent Performance EPIC Valued Supplier Best Collaboration Award for Excellent Award for Technology Awards 2022 Production Support May 15, 2023 | Growth through innovation | 11
Slide 12: ASM WFE rank #7
ASM WFE rank #7 Source: TechInsights 2.500 #1 • ASM WFE rank is rising – now the #7 largest #3 2.000 equipment supplier #5 1.500 #7 • Growing from 12th position just 10 years ago 1.000 #9 500 # 11 # 13 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ASM Equipment revenue ($M) ASM WFE rank M
Slide 13: Indexed total return ASM vs AEX and SOX index since 2019
Indexed total return ASM vs AEX and SOX index since 2019 1.400 1.200 1.000 800 600 400 200 0 01-Jan-2019 01-Jan-2020 01-Jan-2021 01-Jan-2022 01-Jan-2023 ASM SOX AEX May 15, 2023 | Growth through innovation | 13
Slide 14: Outlook 2023
Agenda Outlook 2023 May 15, 2023 | Growth through innovation | 14
Slide 15: After a drop in 2023, market researchers expect WFE to resume growth
After a drop in 2023, market researchers expect WFE to resume growth in the coming years WFE Market forecast TechInsights 2023: WFE decline due to inventory corrections and lower (US$ billion) demand mainly caused by macroeconomic conditions. 150 • Logic/foundry likely only a modest decline given ne
Slide 16: WFE by technology node
WFE by technology node Source: Gartner, Apr 2023 (US$ billion) 45nm and above 7nm and below 2023 32nm/22nm 14nm/10nm In 2023 7nm and below largest segment of WFE May 15, 2023 | Growth through innovation | 16
Slide 17: Guidance provided with Q1 2023 results
Guidance provided with Q1 2023 results Wafer fab equipment (WFE) is expected to drop by a high teens percentage in 2023, down from a previous forecast of a mid to high teens percentage drop. We expect to again outperform the WFE market this year. Memory WFE is expected to decline by a significant do
Slide 18: Continue expansion of R&D and manufacturing
Continue expansion of R&D and manufacturing • Signed in February 2023 an MOU with the Completion Ministry of Trade, Industry and Energy of South of second Korea, and announced investment of around manufacturing $100 million for expansion of manufacturing floor in FEMS and innovation center in Dongta
Slide 19: Environment, social and governance (ESG)
Agenda Environment, social and governance (ESG) May 15, 2023 | Growth through innovation | 19
Slide 20: ASM sustainability focus areas
ASM sustainability focus areas Responsible Supply People Planet Chain We focus on creating ASM aims to be a Our suppliers are key Sustainability Innovation a home for talent in the Net Zero GHG company partners in our efforts Governance We are incorporating semiconductor industry. across its value c
Slide 21: Net Zero by 2035 progress update
Net Zero by 2035 progress update SBTi validation expected → H2 2023 Climate Transition Plan → H2 2023 (after SBTi validation) Semiconductor Climate Consortium: Founding member and first chair of governing council 2021 Baseline Year* Scope 3 = 99%; 72% is Customer Use of Product Scope 1 and 2 combine
Slide 22: Water and waste
Water and waste - 5% 86% Absolute water withdrawal • 31% reduction normalized to revenue +109% Packaging material reuse Landfill diversion rate • Focused efforts on water stressed regions • Focus on structurally lowering withdrawals • Value chain packaging reuse increasing landfill diversion • New w
Slide 23: Safety, people, and a responsible supply chain
Safety, people, and a responsible supply chain 17% 51% 0.55 Female Strategic suppliers 84% Total injury employees 5% Disclosed to CDP Supplier RBA Increase in self-assessment with rate • 50% Supervisory • Supply Chain = 23% engagement score low/medium risk board of ASM’s Scope 3 (from 43% 2021) GHG
Slide 24: Improving ESG ratings
Improving ESG ratings Top 13.1 25 69 AEX ESG Index (2021: 15.3) Top 25 ‘Best-in- (2021: 58) Class’ ESG Sustainalytics practices S&P CSA ‘Yearbook’ B Improved risk rating to 13.1 And ‘Industry Mover’ Improved score to 69 AA (same as 2021) (2021: ‘A’) CDP Climate Change/ Water Security MSCI ESG AA Rat
Slide 25: ASM's Employee Value Proposition (EVP)
ASM’s Employee Value Proposition (EVP) ASM aspires to be the Employer of Choice for our existing and future talents. Our Employee Value Proposition is supporting this ambition by empowering our people, enabling them to develop and unlocking their full potential to become the best they can be, while
Slide 26: EVP – focus on people and culture
EVP – focus on people and culture Total headcount Total hires Female hires % Female all employees 2021 3,312 1,220 14% 15% 4,258 1,520 2022 (29%) (record high) 19% 17% Average remuneration Voluntary attrition Gender pay ratio CEO ratio employees 2021 11.1% 95% 87 29 2022 10.2% 98% 99 27 May 15, 2023
Slide 27: Core values, purpose, mission, and strategy
Core values, purpose, mission, and strategy Core values Our values are We Care, We Innovate, We Deliver. Purpose Our purpose is to improve people’s lives through advancing technologies that unlock new potential. Mission Our mission is to enable our customers’ success by creating leading-edge semicon
Slide 28: The principles that guide us
The principles that guide us We are helping to solve complex We Care challenges in an ever-changing world. That’s why our core values are the cornerstones of who we are, what we believe, and how we act. We Innovate In 2022 we increased our focus on action-planning with our managers and teams, priori
Slide 29: Mid-term outlook and priorities
Agenda Mid-term outlook and priorities May 15, 2023 | Growth through innovation | 29
Slide 30: Strategic objectives
Strategic objectives Maintain leading ALD share in Drive continued strong financial logic/ foundry, expand in memory performance Increase Epi market share Strategic Accelerating progress in sustainability objectives Selective growth in vertical furnace Grow spares and services and PECVD niches busin
Slide 31: Strategy enablers
Strategy enablers To realize our strategy and strategic objectives we identified five critical enablers Best Leading Early Flawless Strong people edge customer operational financial innovation engagements excellence position Our employees are Our growth strategy By strengthening our Our aim is to pr
Slide 32: Long term semi growth drivers are servers, solid state drives, automotive and industrial
Long term semi growth drivers are servers, solid state drives, automotive and industrial Semiconductor Sales by Key Application ($B) 800 Accelerated digitalization is 700 driving strong long-term growth in the semiconductor 600 industry. 500 The global semiconductor 400 end market was flat in 2022 a
Slide 33: Longer term outlook is solid
Longer term outlook is solid Structural drivers for our industry are still intact. Semiconductor end market continuing to grow with strong digitalization trends, and expectations to reach US$1 trillion in early 2030s. Data-intensive end-market applications, such as AI, cloud computing and EV, will d
Slide 34: Financial targets towards FY 2025
Financial targets towards FY 2025 FY 2020 FY 2022 FY 2025 Revenue €1.3 billion €2.4 billion €2.8 to €3.4 billion1 22% CAGR 16 - 21% CAGR Revenue growth (FY16-FY20) 33% YOY1 (FY20-FY25) 46 - 50% Gross margin % 47.0% 47.5%2 (FY21-FY25) High single digit SG&A % revenue 11.9% 11.4%2 (FY25) High single d
Slide 35: Key takeaways
Key takeaways 1 2022 was another record-breaking year, marked sixth consecutive year of double-digit 5 Continue to be confident of meeting 2025 mid-term targets of €2.8 – 3.4 billion growth, and grew more than three times as fast revenue, operating margin of 26 – 31%. as WFE. (2022 achievements at €
Slide 36: Thank you
Thank you May 15, 2023 | Growth through innovation | 36