Asm International N.v. · EURONEXT:ASM
Asm International — Q1 2017 Earnings Presentation
24 slides from Asm International's earnings presentation, Apr 20, 2017
Slide 1: Investor Presentation Q1 2017 Results
INVESTOR PRESENTATION Q1 2017 RESULTS April 20, October 26,2017 2016 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 r
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS › ALD is a key growth market z ALD market expected to grow by double digits from ’15 to ’20-’21 z ASMI has leadership position in ALD › Outperforming in 2011-2016 z ASMI outperformed the WFE market in four of the last six years z Following a drop in the single wafer ALD market
Slide 4: Q1 2017 Key Results
Q1 2017 KEY RESULTS Q1 2016 Q4 2016 Q1 2017 2015 2016 New orders 163.8 176.9 204.2 608.4 622.3 Net sales 142.4 172.6 144.5 669.6 597.9 Gross profit margin % 43.9% 44.9% 43.5% 44.1% 44.2% Operating results 18.8 29.9 14.8 111.1 82.2 Normalized result from investments 6.3 18.4 35.4 43.3 67.7 Amortizati
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments (US$) equipment › ASM is a market leader in ALD Assembly 3.7bn Lithography 8.4bn › Positions in Epitaxy, PECVD Test 3.8bn Other Wafer and Vertical Furnaces Processes 2.9bn Etch and Process Clean Diagnostics 10.3bn 4
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner forecasts WFE spending to increase by 9% Wafer Fab Equipment Spending in 2017, followed by 5% US$bn increase in 2018 › Investment in leading edge 50 45 +5.2% +7.1% -2.2% -6.4% 40 +11.4% +8.9% equipment remains the key 35 -1.0% driver 30 25 20 15 10 5 0 2015 2016 20
Slide 7: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION US$bn CAGR ‘16-21 300 Servers +7% 250 Industrial Electronics +9% Automotive +7% 200 Solid State Drives +15% Smartphone Premium +1% 150 Smartphone Basic +4% 100 Tablet -2% PC / Tablet Hybrid +17% 50 PC Ultramobile Clamshell +7% PC De
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE Share of 14nm, 10nm US$bn and 7nm and below of total Equipment spending 45 increasing in 2017-2020 40 35 7nm and below 30 10nm 25 14nm 22nm 20 32nm 15 45nm 65nm and above 10 5 0 2015 2016 2017 2018 2019 2020 2021 Gartner, April 2017 › Advanced nodes: market segme
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law z Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, ability to deposit new materials z Device scaling, new materials and 3D architectures drive increased demand for
Slide 10: ALD Market Outlook
ALD MARKET OUTLOOK › Outlook 2017 z We continue to expect a clear year-on-year improvement in the single wafer ALD market in 2017, with demand in the Logic/Foundry segment remaining healthy and a strong increase in the 3D-NAND segment › Long term growth z We expect the single wafer ALD market to rea
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD z Developing ALD technology since 1999 z 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 equipment spenders 100% › Increase in contribution top-3 75% in 2016 driven by 50% Logic/Foundry 25% 0% 2011 2012 2013 2014 2015 2016 Top 3 Nr 4-10 Rest Growing share of wallet with top clients April 20, 2017
Slide 13: Highlights
HIGHLIGHTS › ALD market expected to resume growth z For 2017, a clear improvement in the single wafer ALD market is expected; long term outlook remains solid › First high volume manufacturing order intake Intrepid z Broadening our Epi presence to the mainstream CMOS market › Shareholder remuneration
Slide 14: ASMPT Results
ASMPT RESULTS Q1 2016 Q4 2016 Q1 2017 Sales ASMPT (HK$m) 2,862 3,521 3,761 Net profit ASMPT excluding one-offs (EURm, 100% based) 16 47 64 Normalized result from investments (including ASMI’s 39% share of ASMPT net profit) 6.3 18.4 35.4 Amortization intangible assets resulting from the sale of the 1
Slide 15: Financial Overview
FINANCIAL OVERVIEW April 20, 2017 | ASM proprietary information | 15
Slide 16: Q1 2017 Highlights
Q1 2017 HIGHLIGHTS › Revenues down 16% q-o-q and up 1% y-o-y › Bookings up 15% q-o-q and up 25% y-o-y. Book-to-bill ratio of 1.4 › Q1 backlog of EUR 218m, up from EUR 157m at the end of Q4 › Operating margin of 10.3% in Q1 2017 compared to 17.3% in Q4 and 13.2% in Q1 2016 › Free cash flow of EUR 20m
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q2 we expect a sales level of €180-200 million, on a currency comparable level. The order intake in Q2 is expected to remain at a high level of €190-210 million, also on a currency comparable level. April 20, 2017 | ASM
Slide 18: Net Earnings Q1
NET EARNINGS Q1 Q1 2017 vs Q1 2017 vs EUR million Q1 2016 Q4 2016 Q1 2017 Q4 2016 Q1 2016 New orders 163.8 176.9 204.2 15% 25% Backlog 146.8 156.7 218.3 39% 49% Book-to-bill 1.2 1.0 1.4 Net sales 142.4 172.6 144.5 (16)% 1% Gross profit 62.5 77.5 62.9 (19)% 1% Gross profit margin % 43.9% 44.9% 43.5%
Slide 19: R&D Expenditure
R&D EXPENDITURE EUR million Q1 2016 Q4 2016 Q1 2017 R&D expenditure (23.8) (26.5) (27.6) Capitalized development expenditure 7.1 6.8 6.7 Amortization capitalized development expenditure (4.1) (4.3) (3.6) Impairment capitalized development expenditure - - - R&D expenses (20.8) (24.0) (24.5) April 20,
Slide 20: Cash Flow
CASH FLOW EUR million Q1 2016 Q4 2016 Q1 2017 Normalized net earnings 12.2 68.5 41.6 Depreciation, amortization and impairments 11.8 15.1 11.9 Result from investments (6.3) (18.4) (35.4) Other adjustments 10.1 (15.8) 14.0 Change in working capital (8.6) (25.5) 1.4 Net cash from operating activities
Slide 21: Balance Sheet
BALANCE SHEET EUR million Dec 31, 2016 Mar 31, 2017 Cash and cash equivalents 378 379 Accounts receivable 137 102 Inventories 112 141 Other current assets 23 19 Investments and associates 1,236 1,248 Property, plant and equipment 95 97 Capitalized development costs 88 93 Other non-current assets 79
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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12 13 14 15 16 17 12 13 14 15 16 17 Working capital Quarterly sales Days of working capital April 2
Slide 23: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 250 50 250 40 200 30 200 20 150 150 10 0 100 100 -10 50 -20 50 -30 0 -40 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 10 11 12 13 14 15 16 17 10 11 12 13 14 15 16 17 Net Sales (l
Slide 24: April 20, 2017 | ASM proprietary information | 24
April 20, 2017 | ASM proprietary information | 24