Asm International N.v. · EURONEXT:ASM
Asm International — Shareholder Meeting (May 2011)
49 slides from Asm International's shareholder meeting presentation, May 23, 2011
Slide 1: ASMI Annual Meeting of Shareholders
ASMI Annual Meeting of Shareholders May 23 2011 Chuck del Prado President & CEO © 2006 ASM Confidential and Proprietary Information
Slide 2: Safe Harbor Statements
Safe Harbor Statements All matters discussed in this business and strategy update, 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-looking stateme
Slide 3: Outline
Outline • Semiconductor Equipment Market in 2010 • ASMI Results in 2010 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 3
Slide 4: Outline
Outline • Semiconductor Equipment Market in 2010 • ASMI Results in 2010 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 4
Slide 5: Our industry experienced a steep drop, and has recovered fast
Our Industry experienced a steep drop, and has recovered fast 50 45 Semi Capital Equip ($B) 40 35 30 25 Semi Capital Equipment Year to Year Growth 20 2007-2008 -31.6% 15 2008-2009 -45.8% 10 2009-2010 +137.1% Gartner Mar '11 5 2010-2011 +12.4% 0 2005 2006 2007 2008 2009 2010 2011 • Global recession s
Slide 6: Wafer Fab Equipment recovered strongly in 2010
Wafer Fab Equipment recovered strongly in 2010 • 2010 WFE spending increased 140% • Foundry only segment with growth in 2009 • In 2010, growth led by foundry and memory Gartner, March 2011 © 2009 ASM Confidential and Proprietary Information 6
Slide 7: Assembly and Packaging Equipment recovery in 2010
Assembly and Packaging Equipment recovery in 2010 • 2010 Assembly and Packaging Equipment spending increased 124% • Growth occurred in both IDMs and Subcons/SATS • LED-market was very strong in 2nd half 2009 and 2010 Gartner March 2011 © 2009 ASM Confidential and Proprietary Information 7
Slide 8: Outline
Outline • Semiconductor Equipment Market in 2010 • ASMI Results in 2010 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 8
Slide 9: Key Highlights – 2010
Key Highlights – 2010 • Revenues up 107% y-o-y • In FE sales grew 83% y-o-y, driven by inroads in Foundries and Memory and increased orders for especially (PE)ALD and EPI • In BE sales increased 116% y-o-y, in both IC/Discrete and LED • Q4 Back log Euro 499 M at the end of 2010 (1.4 X Q4 sales) • EB
Slide 10: Historical development - Group
Historical development - Group € 500 € 110 EBIT in mln Net Sales in mln € 450 Net Sales EBIT € 90 € 400 € 350 € 70 € 300 € 50 € 250 € 30 € 200 € 150 € 10 € 100 -€ 10 € 50 €0 -€ 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 06 07 08 09 10 11 © 2009 ASM Confidential and Proprietary
Slide 11: Net Earnings - Group
Net Earnings - Group Full Year Full Year Q1 Q2 Q3 Q4 Q1 € million 2009 2010 2010 2010 2010 2010 2011 Front End 160.4 293.4 54.0 66.1 73.8 99.6 116.1 Back End 430.4 929.5 165.1 236.4 275.4 252.7 316.1 Net Sales 590.7 1,222.9 219.1 302.4 349.2 352.2 432.2 Gross Margin 208.0 549.6 93.1 133.4 161.8 161.
Slide 12: Working Capital - Group
Working Capital - Group Increasing working capital in Front End and Back End due to higher activity levels € 350 in mln 125 days Back End Front End Front End Back End Group € 300 100 € 250 € 200 75 € 150 50 € 100 25 € 50 €0 0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 ©
Slide 13: Cash Flow - Group
Cash Flow - Group Full Year Full Year Q1 Q2 Q3 Q4 Q1 € million 2009 2010 2010 2010 2010 2010 2011 Net earnings (loss) (68.3) 242.5 24.7 79.4 75.3 63.2 70.2 Depreciation 36.4 35.8 8.2 8.8 9.2 9.5 12.2 Working Capital 36.2 (88.9) (18.2) (24.7) (7.8) (38.1) (4.9) Restructuring & impairments 55.5 1.9 0.
Slide 14: Bookings & Backlog - Group
Bookings & Backlog - Group Bookings (in mln) € 600 All time high bookings in € 500 2010 in both Front end € 400 Back End Front End and Back end. Book to € 300 Bill ratio in 2010 of 1.2, € 200 Book-to-Bill ratio of 1.0 € 100 in Q1 2011. €0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 15: Dividends PT fully repaid to ASMI shareholders
Dividends PT fully repaid to ASMI shareholders Convertible Usage of Dividends Dividends ASMI shares Bonds Dividend Balance ASMPT(Euro M) Received Repurchased Repurchased pay outs 2007 49.1 -32.9 -5.4 10.8 2008 49.1 -36.5 -27.1 -14.5 2009 21.4 -27.0 -5.6 2010 65.6 -55.8 9.8 Total 185.2 -36.5 -142.8 -
Slide 16: ASMI Share Price in 2010
ASMI Share Price in 2010 100% ASMI NVLS 80% 60% 40% 20% 0% ASML -20% AMAT -40% May-10 May-11 Jan-10 Aug-10 Oct-10 Nov-10 Dec-10 Mar-10 Jan-11 Apr-10 Jun-10 Mar-11 Apr-11 Feb-10 Jul-10 Sep-10 Feb-11 Source: google.com/finance • ASMI share price increased 36% in 2010 • Comparison same sector companies
Slide 17: ASMI Share Price last years
ASMI Share Price last 5 years 175% 150% ASMI 125% ASML 100% 75% 50% 25% 0% -25% -50% -75% NVLS AMAT -100% Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Source: google.com/finance ASMI share pr
Slide 18: Global Sustainability in 2010
Global Sustainability in 2010 Front-End Operations Health and Safety • Active safety programs in Front-end on Lock-out Tag-out of hazardous energies and Ergonomics • Health and Safety management at Front-end Manufacturing Singapore to next level • Continued low Recordable Case Rate (per 100 FTEs): F
Slide 19: Outline
Outline • Semiconductor Equipment Market in 2010 • ASMI Results in 2010 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 19
Slide 20: Historical development – Back-end
Historical development – Back-end BE Sales and Profit reached top levels in 2010, EBIT decrease in Q1 2011 due to seasonality of existing business and mix € 350 € 120 Net Sales in mln EBIT in mln € 300 € 100 € 250 € 80 € 200 € 60 € 150 € 40 € 100 € 20 Net Sales EBIT € 50 €0 €0 -€ 20 Q1 Q2 Q3 Q4 Q1 Q
Slide 21: Summary 2010 – Back-end
Summary 2010 – Back-end 2010: Quarter on quarter EBIT% improvements Full Year Full Year Q1 Q2 Q3 Q4 Q1 € million 2009 2010 2010 2010 2010 2010 2011 Net Sales 430.4 929.5 165.1 236.4 275.4 252.7 316.1 Gross Margin 172.8 435.0 74.5 107.3 132.4 120.7 120.0 as % of sales 40.1% 46.8% 45.1% 45.4% 48.1% 47
Slide 22: Bookings & Backlog – Back-end
Bookings & Backlog – Back-end Bookings (in mln) € 450 Book-to-Bill ratio in 2010 € 400 ASM AS ASM PT € 350 was 1.2. Q1 2011 shows a € 300 Book to Bill ratio of 1.0 € 250 € 200 € 150 € 100 € 50 €0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 06 07 08 09 10 11 Backlog (in mln) € 500
Slide 23: Back-end Surface Mount Technology-Acquisition
Back-end Surface Mount Technology-Acquisition • ASM acquired SMT (SEAS) activities, re-named ASM-AS, from Siemens by January 7, 2011 • ASM-AS immediately EBIT accretive in Q1, albeit at lower level than existing PT activities • Purchase price accounting (PPA) approach, will lead to one off profit ex
Slide 24: ASM Products Back-end
ASM Products Back-end IC manufacturing - LED manufacturing - Surface Mount Technology Market Application ASM Relative Positioning IC manufacturing • Die bonding ! #1 in the equipment market • Assembly tools • Wire bonding ! Qualified by most IDM’s and • Moulding Subcontractors’ • Packaging tools • T
Slide 25: ASM Back-end Product Highlights: LED BLU Solution
ASM Back-end Product Highlights LED BLU Solution BLU Lead Frame LED Package Map Sorter LED Phosphors Sorter & Taping (optical / electrical LED Die Bonder Wire Bonder Dispensing (optical / electrical ) © 2009 ASM Confidential and Proprietary Information
Slide 26: ASM Back-end Product Highlights: Power Electronics Applications
ASM Back-end Product Highlights Power Electronics Applications eClip Automatic Clip Bonding System HA501 Automatic Heavy Aluminum Bonding System © 2009 ASM Confidential and Proprietary Information
Slide 27: ASM Back-end Product Highlights: Memory Cards Solution
ASM Back-end Product Highlights Memory Cards Solution Micro SD card SD card © 2009 ASM Confidential and Proprietary Information
Slide 28: ASM Back-end: What Has Changed in 2010?
ASM Back-end What Has Changed in 2010? • ASMPT continued growing faster than market • Continued its #1 position in the IC Assembly & Packaging market • Successfully expanded in LED market and now the only supplier to offer a total solution • Entered adjacent market (Surface Mount Technology), advant
Slide 29: Back End's Competitive Advantages
Back End’s Competitive Advantages • Cost is the most important topic in Back-end industry • ASMPT provides the lowest cost solutions to customers • China is the fastest growing market in Back-end • ASMPT has the largest customer base in China • LED is a strongly growing market with highest future gr
Slide 30: Outline
Outline • Semiconductor Equipment Market in 2010 • ASMI Results in 2010 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 30
Slide 31: ASM Front-end: PERFORM! Finalized in 2010
ASM Front-end PERFORM! FINALIZED in 2010 PERFORM! was about: • Improving Front-End’s financial performance through the cycles • Changing organizational structure from Regional to Global • Strengthening Commercialization • Execution & Operational Excellence • Focus and stronger Accountability • Enhan
Slide 32: ASM Front-end: What Has Changed?
ASM Front-end What Has Changed? • Significantly reduced the operating break-even level • PERFORM! reduced cost level by 40% versus the Q4 2008 runrate • Manufacturing consolidated to 1 location in Singapore • Adjacent to Back End facility • Reduction/closures took place in a market environment which
Slide 33: ASM Front-end: And finalized at lower costs
ASM Front-end And finalized at lower costs…. Restructuring expenses (in M Euro) 2009 2010 Total Originally Communicated Employee related 19.5 4.5 24.0 Contract terminations 2.8 0.8 3.6 Transition expenses 4.4 3.8 8.2 Other out of pocket costs 4.4 2.1 6.5 Total out of pocket costs 31.1 11.2 42.3 50.0
Slide 34: Historical development – Front-end
Historical development – Front-end FE continues profitability improvement with substantial reduction of Break even point € 140 € 25 EBIT in mln Net Sales in mln € 20 € 120 € 15 € 100 € 10 €5 € 80 €0 € 60 -€ 5 € 40 -€ 10 -€ 15 € 20 Net Sales EBIT -€ 20 €0 -€ 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 35: Summary 2010 – Front-end
Summary 2010 – Front-end Strong quarter on quarter improvements Full Year Full Year Q1 Q2 Q3 Q4 Q1 € million 2009 2010 2010 2010 2010 2010 2011 Net Sales 160.4 293.4 54.0 66.1 73.8 99.6 116.1 Gross Margin 32.9 114.6 18.7 26.0 29.3 40.6 45.6 as % of sales 20.5% 39.1% 34.6% 39.4% 39.8% 40.7% 39.2% S,
Slide 36: Bookings & Backlog – Front-end
Bookings & Backlog – Front-end Backlog increased in 2010 from €50m to €162m and remained stable in Q1 2011 Book-to-Bill ratio in 2010 of 1.4 and 1.0 in Q1 2011 € 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 06 07 08 09 10 11
Slide 37: ASM Products – Front End
ASM Products – Front End Market Requirements: 45nm→32nm →22nm → beyond Process Application ASM Relative Positioning ALD and PEALD • ALD key for High-k Gate technology ! #1 in the ALD market • ALD solution (Hafnium based oxide) • Enables further miniaturisation of chips ! Qualified by nearly all Logi
Slide 38: ASM Products – Front End: Key Customer ALD Penetrations
ASM Products – Front End Key Customer ALD Penetrations Customer Penetration Site • 16 Key customer penetrations • Applications like ALD high-k, ALD metal, PEALD SDDP, PEALD spacer • Memory, Foundry and Logic segment © 2009 ASM Confidential and Proprietary Information 38
Slide 39: ASM Products – Front End: Growing Wallet Share With Top Clients
ASM Products – Front End Growing Wallet Share With Top Clients Revenue as % Of Sales Key Developments: 100% ! Diversification of customer base from Logic to Memory and 75% Foundries ! Weight of Asia growing 50% ! No customer above 20% of revenues 25% ! Wider adoption by larger number of customers 0%
Slide 40: Front End's Competitive Advantages
Front End’s Competitive Advantages • ASMI Front-end started ALD technology in 1999 and has a strong time advantage over competition • The ALD (and PEALD) technology is strongly patented • Further miniaturization will require more and more ALD/PEALD solutions • ASMI is one of the two leading supplier
Slide 41: Outline
Outline • Semiconductor Equipment Market in 2010 • ASMI Results in 2010 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 41
Slide 42: Applications Driving Growth Through 2015
Applications Driving Growth Through 2015 60 Semiconductor CAGR, 2010-2015 (%) Media Tablet 50 40 30 Solid State Drive IP Set Top Box Smartphone 20 LED Fiber Broadband 10 Most Categories < 10% CAGR, < $10B Mobile PC (Inc. mini notebook) Entry-level Server LCD TV 0 0 10 20 30 40 50 60 2015 Semiconduct
Slide 43: Applications Driving Growth Through 2015
Applications Driving Growth Through 2015 ALD, Epi, low-k 60 Back- end Semiconductor CAGR, 2010-2015 (%) Media Tablet 50 40 PEALD, Back- end 30 Solid State Drive ALD, Epi, low-k Back- end IP Set Top Box LED Smartphone 20 ALD, Epi, Low-k Back- end Fiber Broadband ALD, Epi, Low-k Most Categories < 10%
Slide 44: ASM Back-end Markets (i)
ASM Back-end Markets (i) For IC equipment • Market growth in 2011 5% • Equipment for LED may not be fully reflected in Gartner forecast For SMT (not shown in chart) • Adds $ 4 billion Served Available Market to ASM Back- end • Improve market position in SE Asia • Gross margin improvement plans • Add
Slide 45: ASM Back-end Markets (ii)
ASM Back-end Markets (ii) $M 30000 LED – A High Growth Back End Market Segment Key Growth Drivers: 25000 For LED Equipment • LEDs provide an energy efficient, 20000 high quality and longer life alternative to traditional light sources • LEDs replacing fluorescent lamps in 15000 backlighting of TVs a
Slide 46: ASM Front-end Markets
ASM Front-end Markets CAGR 2010-2014 $M ASM products 7.5% IC Deposition Market by Sub-Segments ALD 13% Epi 25% Diff/Furn Key Growth Drivers: ALD • Spending is result of need to advance towards 32/28nm and +196% EPI beyond and by capacity increases +216% +100% PECVD • Foundry spending expected to inc
Slide 47: ASM Front-end Markets
ASM Front-end Markets Market Forecast shows growth in advanced technology nodes Share of 32nm and 22nm of total Equipment spending strongly increasing in 2011-2012 Gartner March, 2011 © 2009 ASM Confidential and Proprietary Information 47
Slide 48: Q2 Financial Outlook ASMI
Q2 Financial Outlook ASMI • Based upon the current backlog and our current visibility: • For our Front-end operations we expect a single digit growth in the second quarter of 2011 at constant FX-rates, compared to the first quarter of 2011. We expect lower bookings for Q2 than in Q1, 2011. Despite t
Slide 49: Summary
Summary • Unique semiconductor equipment vendor providing both Front End and Back End equipment • Front End growth driven by leading positions in fast growth ALD, PEALD, EPI market segments • Significant improvement in Front End profitability after successful implementation of PERFORM! • Proposal to