Slide 1: Investor Presentation Q2 2016 Results
INVESTOR PRESENTATION Q2 2016 RESULTS July July 28,28, 2016 2015 ASM proprietary information © 2016 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 z ALD market expected to double in the next three to four years z ASMI has leadership position in ALD › Strong revenue performance z Revenue increased by a CAGR of 18% since 2010, clearly outperforming the overall equipment market › Structurally imp
Slide 4: Q2 2016 Key Results - IFRS
Q2 2016 KEY RESULTS - IFRS Q2 2015 Q1 2016 Q2 2016 New orders 166.6 163.8 159.1 Net sales 201.0 142.4 138.7 Gross profit margin % 45.1% 43.9% 43.8% Operating results 45.4 18.8 16.7 Result from investments 20.0 6.3 16.4 Amortization intangible assets resulting (6.8) (6.8) (6.7) from the sale of the 1
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments (US$) equipment Assembly › ASM is a market leader in ALD Test 3.6bn 3.3bn Lithography 8.1bn › Positions in Epitaxy, PECVD Other Wafer Processes and Vertical Furnaces 2.2bn Etch and Process Clean Diagnostics 8.1bn 3.
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner forecasts WFE spending to decrease by 1% Wafer Fab Equipment Spending US$bn in 2016, followed by 6% 45 increase in 2017 40 +4.4% › Investment in leading edge 35 +16.3% -1.3% -1.3% +5.8% +8.0% -7.7% equipment remains the key 30 25 driver 20 15 10 5 0 2013 2014 2015
Slide 7: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION US$bn CAGR ‘15-20 250 Industrial Trans, Automation, Security +12% 200 Automotive +6% Solid State Drives +15% 150 +1% Smartphone Premium Smartphone Basic +7% 100 Tablet -2% PC / Tablet Hybrid +26% 50 PC Ultramobile Clamshell +12% PC
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE Share of 14nm, 10nm US$bn Wafer Fab Equipment by Node and 7nm of total Equipment spending 40 increasing in 2016-2018 35 7 nm and below 30 10 nm 25 14 nm 22 nm $B 20 32 nm 45 nm 15 65nm & above 10 5 0 2014 2015 2016 2017 2018 2019 2020 Gartner, July 2016 Advanced
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: Estimated ALD Market Growth
ESTIMATED ALD MARKET GROWTH ALD MARKET SINGLE WAFER / MINIBATCH › Long term growth 2015-2019 • Single wafer ALD market ~$750m in 2015 US$bn • Expected to double to approximately ~$1.5bn 1,600 in the next 3-4 years 1,400 1,200 › Key market growth drivers 1,000 • In Logic/Foundry a strong rise in the
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD z Developing ALD technology since 1999 z Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 12: Customer Concentration
CUSTOMER CONCENTRATION › Engaged with all of the top-10 ASMI revenue semiconductor capital 100% equipment spenders › Diversification of customer 75% base from Logic to Memory 50% and Foundries 25% › Strong momentum with 0% 2010 2011 2012 2013 2014 2015 customers beyond the Top 3 Nr 4-10 Rest traditi
Slide 13: Highlights
HIGHLIGHTS › ALD market outlook z Strong Logic/Foundry demand in 2016 not expected to offset lower Memory demand, leading to a double digit decrease in the single wafer ALD market z For 2017, a strong improvement in the ALD market is expected; long term outlook remains solid › Shareholder remunerati
Slide 14: ASMPT Results
ASMPT RESULTS Q2 2015 Q1 2016 Q2 2016 Sales ASMPT (HK$m) 3,752 2,862 3,669 Net profit ASMPT excluding one-offs (EURm, 100% based) 53 16 51 Result from investments (including ASMI’s 40% share of ASMPT net profit) 20.0 6.3 16.4 Amortization intangible assets resulting from the sale of the 12% stake of
Slide 15: Financial Overview
FINANCIAL OVERVIEW July 28, 2016 | ASM proprietary information | 15
Slide 16: Q2 2016 Highlights
Q2 2016 HIGHLIGHTS › Revenues down 3% q-o-q and down 31% y-o-y › Bookings down 3% q-o-q and down 5% y-o-y. Book-to-bill ratio of 1.1 › Q2 backlog of EUR 175m, up from EUR 147m at the end of Q1 › EBIT margin of 12.0% compared to 13.2% in Q1 and 22.6% in Q2 2015 › Free cash flow of negative EUR 3m in
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: 2015 has shown a strong growth of the single wafer ALD market. We estimate this growth to continue whereby the single wafer ALD equipment market will double in the period 2015-2018/2019. We however expect the single wafer A
Slide 18: Net Earnings Q2
NET EARNINGS Q2 Q2 2016 vs Q2 2016 vs EUR million Q2 2015 Q1 2016 Q2 2016 Q1 2016 Q2 2015 New orders 166.6 163.8 159.1 (3)% (5)% Backlog 148.5 146.8 175.4 19% 18% Book-to-bill 0.8 1.2 1.1 Net sales 201.0 142.4 138.7 (3)% (31)% Gross profit 90.5 62.5 60.8 (3)% (33)% Gross profit margin % 45.1% 43.9%
Slide 19: R&D Expenditure
R&D EXPENDITURE EUR million Q2 2015 Q1 2016 Q2 2016 R&D expenditure (23.4) (23.8) (24.5) Capitalized development expenditure 6.7 7.1 6.6 Amortization capitalized development expenditure (3.3) (4.1) (4.2) R&D expenses (19.9) (20.8) (22.1) July 28, 2016 | ASM proprietary information | 19
Slide 20: Cash Flow
CASH FLOW EUR million Q2 2015 Q1 2016 Q2 2016 Normalized net earnings 48.6 12.2 42.3 Depreciation and amortization 10.1 11.8 12.1 Result from investments (20.0) (6.3) (16.4) Other adjustments 6.9 9.9 (7.4) Change in working capital (27.7) (8.6) (18.3) Net cash from operating activities 17.9 19.0 12.
Slide 21: Balance Sheet
BALANCE SHEET EUR million Dec 31, 2015 Jun 30, 2016 Cash and cash equivalents 447 370 Accounts receivable 90 112 Inventories 114 103 Other current assets 19 17 Investments and associates 1,181 1,167 Property, plant and equipment 92 96 Capitalized development costs 73 81 Other non-current assets 60 7
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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 12 13 14 15 16 12 13 14 15 16 Working capital Quarterly sales Days of working capital July 28, 2016 | ASM proprietary
Slide 23: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 200 250 50 180 40 160 200 30 140 20 120 150 10 100 0 80 100 -10 60 50 -20 40 20 -30 0 0 -40 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 10 11 12 13 14 15 16 10 11 12 13 14 15 16 Bookings Back
Slide 24: Comparable Results US GAAP
COMPARABLE RESULTS US GAAP Q2 2016 vs Q2 2016 vs EUR million Q2 2015 Q1 2016 Q2 2016 Q1 2016 Q2 2015 Net sales 201.0 142.4 138.7 (3)% (31)% Gross profit 90.7 62.4 60.8 (3)% (33)% Gross profit margin % 45.1% 43.8% 43.8% Selling, general and administrative expenses (24.7) (22.5) (21.0) (7)% (15)% Rese
Slide 25: July 28, 2016 | ASM proprietary information | 25
July 28, 2016 | ASM proprietary information | 25