Asm International N.v. · EURONEXT:ASM
Asm International — Shareholder Meeting (May 2016)
35 slides from Asm International's shareholder meeting presentation, May 25, 2016
Slide 1: ASMI Annual Meeting of Shareholders 2016
ASMI ANNUAL MEETING OF SHAREHOLDERS 2016 Chuck del Prado, President & CEO May 25, 2016 ASMI annual meeting of shareholders © 2016 ASMI
Slide 2: Cautionary Note Regarding Forward-Looking Statements
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 re
Slide 3: Outline
OUTLINE › Semiconductor capital spending in 2015 › ASMI results in 2015 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 25, 2016 | ASMI annual meeting of shareholders | 4
Slide 4: Outline
OUTLINE › Semiconductor capital spending in 2015 › ASMI results in 2015 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 25, 2016 | ASMI annual meeting of shareholders | 5
Slide 5: Our Industry Was Slightly Down in 2015
OUR INDUSTRY WAS SLIGHTLY DOWN IN 2015 SEMICONDUCTOR CAPITAL SPENDING (USD billion) 80 70 +18% +12% 60 -1% +118% -16% -2% 50 40 30 20 10 0 2010 2011 2012 2013 2014 2015 Source: Gartner, April 2016 Semiconductor capex was down in 2015 by 1% May 25, 2016 | ASMI annual meeting of shareholders | 6
Slide 6: Wafer Fab Equipment Was Slightly Down in 2015
WAFER FAB EQUIPMENT WAS SLIGHTLY DOWN IN 2015 WAFER FAB EQUIPMENT BY DEVICE TYPE (USD billion) 40 +15% 35 +145% +16% -1% -18% 30 -8% 25 20 Other 15 Memory 10 Logic 5 0 Foundry 2010 2011 2012 2013 2014 2015 Source: Gartner, April 2016 › 2015 WFE spending decreased by 1% › Memory was strong, Logic was
Slide 7: Outline
OUTLINE › Semiconductor capital spending in 2015 › ASMI results in 2015 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 25, 2016 | ASMI annual meeting of shareholders | 8
Slide 8: Key Highlights – 2015 (Based on IFRS)
KEY HIGHLIGHTS – 2015 (BASED ON IFRS) › ASMI revenues up 23% and up 14% at constant currencies › Gross margin further increased to 44% › ASMI EBIT margin 16.6% in 2015 compared to 17.1% in 2014 z Excluding impairments 450 mm, margin improved from 17.3% in 2014 to 19.0% in 2015 › Free cash flow up 33
Slide 9: Net Earnings 2015
NET EARNINGS 2015 FINANCIALS BASED ON IFRS FULL YEAR FULL YEAR Q1 Q2 Q3 Q4 Q1 EUR million 2014 2015 2015 2015 2015 2015 2016 NET SALES 546 670 162 201 162 145 142 GROSS PROFIT 235 296 70 91 70 65 63 Gross margin 43.1% 44.1% 43.1% 45.0% 43.4% 44.8% 43.9% Selling, general and administrative (81) (93)
Slide 10: Balance Sheet
BALANCE SHEET FINANCIALS BASED ON IFRS DEC DEC MAR 2014 2015 2016 EUR million Cash and cash equivalents 386 447 416 Other current assets 234 223 232 Property, plant and equipment, net 79 92 91 Goodwill, net 11 11 11 Other intangible assets 65 82 85 Investments & associates, and other assets 1,093 1,
Slide 11: Working Capital
WORKING CAPITAL VALUE (EUR million) 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12 13 14 15 16 Working capital Quarterly sales DAYS 140 120 100 80 60 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12 13 14 15 16 Days of working capital May 25, 2016 | ASMI annual me
Slide 12: Cash Flow
CASH FLOW FINANCIALS BASED ON IFRS FULL YEAR FULL YEAR Q1 Q1 EUR million 2014 2015 2015 2016 Normalized net result 164 185 68 12 Depreciation and amortization 33 54 9 12 Working capital 0 3 0 (9) Result from investments (62) (44) (13) (6) Other adjustments (10) (23) (22) 10 Net cash from operating a
Slide 13: Historical Development – ASMI
HISTORICAL DEVELOPMENT – ASMI (EUR million) 250 50 40 200 30 20 150 10 0 100 -10 50 -20 -30 0 -40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 10 11 12 13 14 15 16 Net Sales (lhs) EBIT (rhs) May 25, 2016 | ASMI annual meeting of shareholders | 14
Slide 14: Bookings & Backlog – ASMI
BOOKINGS & BACKLOG – ASMI (EUR million) 200 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 10 11 12 13 14 15 16 Bookings Backlog May 25, 2016 | ASMI annual meeting of shareholders | 15
Slide 15: Shareholder Remuneration
SHAREHOLDER REMUNERATION › Proposed dividend increases by 17% to €0.70 per share › Second €100 million share buyback announced in October 2015 • To be executed in 2015/2016 timeframe; 57% completed as of May 23, 2016 • As part of commitment to use excess cash for the benefit of shareholders DIVIDEND
Slide 16: Total Shareholder Return in 2014-2015
TOTAL SHAREHOLDER RETURN IN 2014-2015 100% ASMI 75% LAM 50% 25% ASML 0% AMAT -25% Jul-14 Jul-15 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Jan-14 Jan-15 Jan-16 › Comparison of same sector companies › Includes dividend payouts and redistribution of capital May 25, 2016 | ASMI annual meeting of shareholders |
Slide 17: Total Shareholder Return 2011-2015
TOTAL SHAREHOLDER RETURN 2011-2015 500% 400% ASML 300% 200% ASMI 100% 0% LAM AMAT -100% Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Apr-11 Jul-11 Apr-12 Jul-12 Apr-13 Jul-13 Apr-14 Jul-14 Apr-15 Jul-15 Apr-16 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 › Comparison of same sector companies › Includes dividend
Slide 18: Implied Value Front-End
IMPLIED VALUE FRONT-END (EUR million) 1,400 1,200 1,000 800 600 400 200 - (200) (400) (600) (800) Value ASMI minus value PT stake and adjusted for excess net cash (EURm) › Strong increase in implied value to €1.0 billion positive up from €400-500 million negative in May 2012 May 25, 2016 | ASMI annu
Slide 19: Shareholding in ASMPT
SHAREHOLDING IN ASMPT › As of 15 March 2013, our share of approximately 40% of ASMPT’s net earnings is included in ‘result from investments’ › Amortization intangible assets resulting from the sale of the 12% stake in ASMPT amounted to €27 million in 2015 Full year Full year EUR million 2014 2015 Q1
Slide 20: Outline
OUTLINE › Semiconductor capital spending in 2014 › ASMI results in 2014 › Corporate Responsibility › Products & Business highlights › Market outlook and conclusions May 25, 2016 | ASMI annual meeting of shareholders | 21
Slide 21: Corporate Responsibility
CORPORATE RESPONSIBILITY › Second Annual Corporate Responsibility (CR) Report • In reference to Global Reporting Initiative (GRI) G4 Standard • Reported Materiality Assessment and Stakeholder Engagement › Electronics Industry Citizenship Coalition (EICC) Code of Conduct • Continued “Low Risk” rankin
Slide 22: Health & Safety
HEALTH & SAFETY GLOBAL INJURY AND RECORDABLE RATES 2013 › Injury rate declines for 5th year in a row › Safety Leadership engagement sessions almost complete › Global Service Safety Manager added › Further strengthened high risk area strategic safety plans • Service, Engineering Lab and Manufacturing
Slide 23: Environment
ENVIRONMENT › Completed three-year plan (2013-2015) › 2016-2020 Targets • Reduce GHG emissions by 5% / R&D spend below 2015 levels by 2020 • Reduce water use by 10% / R&D spend below 2015 levels by 2020 • Less than 10% of all waste to landfill by 2020 • New construction projects exceed energy effici
Slide 24: Outline
OUTLINE › Semiconductor capital spending in 2015 › ASMI results in 2015 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 25, 2016 | ASMI annual meeting of shareholders | 25
Slide 25: ASM Products – Focus on Deposition
ASM PRODUCTS – FOCUS ON DEPOSITION › ASM has a leading position in ALD • ALD for high-k metal gates • ALD spacers for multiple patterning (Memory & Logic) › ASM Epitaxy strong position in Analog & Power Intrepid XP Epitaxy XP8 ALD, PECVD › PECVD › Low-k supplier for 7th consecutive Logic device node
Slide 26: What Has Changed in 2015?
WHAT HAS CHANGED IN 2015? › Further broadening of single wafer ALD applications › Revenue contribution of Memory segment further increased › Further strengthened position within the top-10 capex customers › 2015 another year in which ASMI outgrew the wafer fab equipment market May 25, 2016 | ASMI an
Slide 27: Growing Wallet Share with Top Clients
GROWING WALLET SHARE WITH TOP CLIENTS › Further grew our position beyond the top-3 in the top-10 capex spenders in 2015 ASMI REVENUE 100% 75% 50% 25% 0% 2010 2011 2012 2013 2014 2015 Top 3 Nr 4-10 Rest Growing share of wallet with top clients May 25, 2016 | ASMI annual meeting of shareholders | 28
Slide 28: ALD Becoming an Important Deposition Equipment Segment
ALD BECOMING AN IMPORTANT DEPOSITION EQUIPMENT SEGMENT › The CAGR ‘15-’19 of the ALD segment is highest within the deposition equipment market › ALD estimated to represent between 20 and 25% of the total deposition equipment market by 2019 › Drivers for growth: z Strengths of ALD: (i) high-precision
Slide 29: Estimated ALD Market Growth
ESTIMATED ALD MARKET GROWTH ALD MARKET SINGLE WAFER / MINIBATCH › Long term growth 2015-2019 (USD million) z Single wafer ALD market ~$750m in 2015 1,600 z Expected to double to approximately ~$1.5bn in 1,400 1,200 the next 3-4 years 1,000 800 › Key market growth drivers 600 z In Logic/Foundry a str
Slide 30: Outline
OUTLINE › Semiconductor capital spending in 2015 › ASMI results in 2015 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 25, 2016 | ASMI annual meeting of shareholders | 31
Slide 31: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION (USD billion) CAGR 250 ‘15-20 Industrial Trans, Automation, Security +12% 200 Automotive +6% Solid State Drives +15% 150 Smartphone Premium +1% Smartphone Basic +7% 100 -2% Tablet PC / Tablet Hybrid +26% 50 PC Ultramobile Clamshell
Slide 32: ASM Markets
ASM MARKETS WAFER FAB EQUIPMENT BY TECHNOLOGY NODE 45 40 35 30 7nm and below 10nm 25 14nm 22nm 20 32nm 45nm 15 65nm and above 10 5 0 2014 2015 2016 2017 2018 2019 Advanced nodes: market segments with high Source: Gartner, April 2016 expected growth May 25, 2016 | ASMI annual meeting of shareholders
Slide 33: Q2 2016 Financial Outlook ASMI
Q2 2016 FINANCIAL OUTLOOK ASMI Based upon the current backlog and our current visibility: For Q2 we expect sales between €130-€140 million, while we expect an order intake of €145-€165 million, both on a currency comparable level. Based upon the current visibility, we expect a much stronger second h
Slide 34: Summary
SUMMARY › Revenue increased 23% in 2015 and 14% at constant currencies, again outperforming the overall wafer fab equipment market › Solid traction in ALD continued in 2015 › Strong improvement in free cash flow › The Company believes to be well positioned for an increased number of ALD applications
Slide 35: May 25, 2016 | ASM proprietary and confidential information
May 25, 2016 | ASM proprietary and confidential information | 36