Asm International N.v. · EURONEXT:ASM
Asm International — Q4 2016 Earnings Presentation
25 slides from Asm International's earnings presentation, Mar 2, 2017
Slide 1: Investor Presentation Q4 2016 Results
INVESTOR PRESENTATION Q4 2016 RESULTS October March26, 2,2016 2017 ASM proprietary information © 2017 ASM
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: Investment Highlights
INVESTMENT HIGHLIGHTS › ALD is a key growth market ALD market expected to grow by double digits from ’15 to ’20-’21 ASMI has leadership position in ALD › Outperforming in 2011-2016 ASMI outperformed the WFE market in four of the last six years A double digit drop in the single wafer ALD mark
Slide 4: Q4 2016 Key Results
Q4 2016 KEY RESULTS Q4 2015 Q3 2016 Q4 2016 2015 2016 New orders 135.4 122.6 176.9 608.4 622.3 Net sales 144.7 144.2 172.6 669.6 597.9 Gross profit margin % 44.8% 44.2% 44.9% 44.1% 44.2% Operating results 4.0 16.8 29.9 111.1 82.2 Normalized result from investments 1.6 26.7 18.4 43.3 67.7 Amortizatio
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments (US$) equipment › ASM is a market leader in ALD Assembly 3.7bn Lithography 8.4bn › Positions in Epitaxy, PECVD Test 3.8bn Other Wafer Processes and Vertical Furnaces 2.9bn Etch and Process Clean Diagnostics 10.3bn 4
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › WFE spending increased by 8% in 2016, driven by 3D Wafer Fab Equipment Spending NAND and Logic/Foundry › Gartner forecasts a 6% US$bn 50 increase in 2017 45 +8.4% -5.1% 40 +8.1% +5.7% +0.7% 35 +16.3% -1.3% 30 25 20 15 10 5 0 2014 2015 2016 2017 2018 2019 2020 Gartner, Dece
Slide 7: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION US$bn CAGR ‘15-20 250 Industrial Trans, Automation, Security +11% 200 Automotive +7% Solid State Drives +14% 150 +1% Smartphone Premium Smartphone Basic +9% 100 Tablet -3% PC / Tablet Hybrid +20% 50 PC Ultramobile Clamshell +8% PC D
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE Share of 14nm, 10nm US$bn and 7nm of total Equipment spending 45 increasing in 2017-2019 40 35 30 7nm and below 10nm 25 14nm 22nm 20 32nm 15 45nm 65nm and above 10 5 0 2015 2016 2017 2018 2019 2020 Gartner, December 2016 Advanced nodes: market segments with high
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, ability to deposit new materials Device scaling, new materials and 3D architectures drive increased demand for
Slide 10: ALD Market Outlook
ALD MARKET OUTLOOK › Outlook 2017 We continue to expect a clear improvement in the single wafer ALD market in 2017: • Demand in the Logic/Foundry segment is expected to remain healthy • We believe the 3D-NAND contribution to the single wafer ALD market will show a strong increase in 2017, leading
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD Developing ALD technology since 1999 Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 12: Customer Concentration
CUSTOMER CONCENTRATION › Engaged with all of the top-10 ASMI revenue semiconductor capital 100% equipment spenders › Increase in contribution top-3 75% 50% in 2016 driven by 25% Logic/Foundry 0% 2011 2012 2013 2014 2015 2016 Top 3 Nr 4-10 Rest Growing share of wallet with top clients March 2, 2017 |
Slide 13: Highlights
HIGHLIGHTS › ALD market expected to resume growth For 2017, a clear improvement in the single wafer ALD market is expected; long term outlook remains solid In 2016, single wafer ALD market showed a double digit drop as lower sales in Memory were only partially offset by strong Logic/Foundry dema
Slide 14: ASMPT Results
ASMPT RESULTS Q4 2015 Q3 2016 Q4 2016 Sales ASMPT (HK$m) 2,928 4,197 3,521 Net profit ASMPT excluding one-offs (EURm, 100% based) 10 68 47 Normalized result from investments (including ASMI’s 39% share of ASMPT net profit) 1.6 26.7 18.4 Amortization intangible assets resulting from the sale of the 1
Slide 15: Financial Overview
FINANCIAL OVERVIEW March 2, 2017 | ASM proprietary information | 15
Slide 16: Q4 2016 Highlights
Q4 2016 HIGHLIGHTS › Revenues up 20% q-o-q and up 19% y-o-y › Bookings up 44% q-o-q and up 31% y-o-y. Book-to-bill ratio of 1.0 › Q4 backlog of EUR 157m, up slightly from EUR 154m at the end of Q3 › EBIT margin of 17.3% compared to 11.7% in Q3 and 2.7% in Q4 2015 (including EUR 16.2m impairment char
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: We project a year-on-year sales increase for the first half of 2017, whereby we expect a sales level of €135-145 million for Q1 and €160-200 million for Q2, both on a currency comparable level. The order intake in Q1 is exp
Slide 18: Net Earnings Q4
NET EARNINGS Q4 Q4 2016 vs Q4 2016 vs EUR million Q4 2015 Q3 2016 Q4 2016 Q3 2016 Q4 2015 New orders 135.4 122.6 176.9 44% 31% Backlog 127.8 154.4 156.7 1% 23% Book-to-bill 0.9 0.9 1.0 Net sales 144.7 144.2 172.6 20% 19% Gross profit 64.8 63.7 77.5 22% 20% Gross profit margin % 44.8% 44.2% 44.9% Sel
Slide 19: R&D Expenditure
R&D EXPENDITURE EUR million Q4 2015 Q3 2016 Q4 2016 R&D expenditure (25.0) (26.7) (26.5) Capitalized development expenditure 5.4 6.8 6.8 Amortization capitalized development expenditure (1.2) (4.3) (4.3) Impairment capitalized development expenditure (16.2) - - R&D expenses (36.9) (24.2) (24.0) Marc
Slide 20: Cash Flow
CASH FLOW EUR million Q4 2015 Q3 2016 Q4 2016 Normalized net earnings 17.9 39.8 68.5 Depreciation, amortization and impairments 24.3 12.8 15.1 Result from investments (1.6) (26.7) (18.4) Other adjustments (5.3) 3.0 (15.8) Change in working capital 4.3 2.5 (25.5) Net cash from operating activities 39
Slide 21: Balance Sheet
BALANCE SHEET EUR million Dec 31, 2015 Dec 31, 2016 Cash and cash equivalents 447 378 Accounts receivable 90 141 Inventories 114 112 Other current assets 19 19 Investments and associates 1,181 1,236 Property, plant and equipment 92 101 Capitalized development costs 73 88 Other non-current assets 61
Slide 22: Working Capital
WORKING CAPITAL EUR million Days 250 140 200 120 150 100 100 80 50 60 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12 13 14 15 16 12 13 14 15 16 Working capital Quarterly sales Days of working capital March 2, 2017 | ASM
Slide 23: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 250 50 200 40 200 30 150 20 150 10 100 0 100 -10 50 50 -20 -30 0 0 -40 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 10 11 12 13 14 15 16 10 11 12 13 14 15 16 Net Sales (lhs) EBIT (rhs)
Slide 24: Comparable Results US GAAP
COMPARABLE RESULTS US GAAP Q4 2016 vs Q4 2016 vs EUR million Q4 2015 Q3 2016 Q4 2016 Q3 2016 Q4 2015 Net sales 144.7 144.2 172.6 20% 19% Gross profit 64.8 63.7 77.7 22% 20% Gross profit margin % 44.8% 44.1% 45.0% Selling, general and administrative expenses (23.0) (21.4) (23.1) 8% - Research and dev
Slide 25: March 2, 2017 | ASM proprietary information | 25
March 2, 2017 | ASM proprietary information | 25