Asm International N.v. · EURONEXT:ASM
Asm International — Shareholder Meeting (May 2017)
35 slides from Asm International's shareholder meeting presentation, May 22, 2017
Slide 1: ASMI Annual Meeting of Shareholders 2017
ASMI ANNUAL MEETING OF SHAREHOLDERS 2017 May 22, 2017 ASMI annual meeting of shareholders © 2017 ASMI | 1
Slide 2: Chuck del Prado, President & CEO
ASMI ANNUAL MEETING OF SHAREHOLDERS 2017 Chuck del Prado, President & CEO May 22, 2017 ASMI annual meeting of shareholders © 2017 ASMI | 2
Slide 3: 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 4: Outlook
OUTLOOK › Semiconductor capital spending in 2016 › ASMI results in 2016 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 22, 2017 | ASMI annual meeting of shareholders | 4
Slide 5: Outline
OUTLINE ›! Semiconductor capital spending in 2016 ›! ASMI results in 2016 ›! Corporate responsibility ›! Products & business highlights ›! Market outlook and conclusions May 22, 2017 | ASMI annual meeting of shareholders | 5
Slide 6: Wafer Fab Equipment Was Up in 2016
WAFER FAB EQUIPMENT WAS UP IN 2016 WAFER FAB EQUIPMENT BY DEVICE TYPE (USD billion) +16% +11% 40,0 +16% -1% 35,0 -18% -8% •! 2016 WFE spending 30,0 increased by 11% 25,0 •! Logic/Foundry strong 20,0 •! Within memory, 15,0 NAND was strong, 10,0 DRAM was weak 5,0 0,0 2011 2012 2013 2014 2015 2016 Foun
Slide 7: Outline
OUTLINE ›! Semiconductor capital spending in 2016 ›! ASMI results in 2016 ›! Corporate responsibility ›! Products & business highlights ›! Market outlook and conclusions May 22, 2017 | ASMI annual meeting of shareholders | 7
Slide 8: Key Highlights – 2016
KEY HIGHLIGHTS – 2016 ›!ASMI revenues down 11% to approximately !600 million ›!Gross margin stable at 44% ›!ASMI EBIT margin 13.8% in 2016 compared to 16.6% in 2015 !! Driven by lower activity level !! Operating expenses under control ›!Normalized net earnings of !163 million down from !185 million
Slide 9: Net Earnings 2016
NET EARNINGS 2016 FINANCIALS BASED ON IFRS FULL YEAR FULL YEAR Q1 Q2 Q3 Q4 Q1 2015 2016 2016 2016 2016 2016 2017 EUR million NET SALES 670 598 142 139 144 173 145 GROSS PROFIT 296 265 63 61 64 78 63 Gross margin 44.1% 44.2% 43.9% 43.8% 44.2% 44.9% 43.5% Selling, general and administrative (93) (88)
Slide 10: Balance Sheet
BALANCE SHEET FINANCIALS BASED ON IFRS DEC DEC MAR 2015 2016 2017 EUR million Cash and cash equivalents 447 378 379 Other current assets 223 272 262 Property, plant and equipment, net 92 95 97 Capitalized development costs 72 86 93 Investments & associates, and other assets 1,181 1,236 1,248 Other n
Slide 11: Working Capital
WORKING CAPITAL VALUE (EUR million) 250 200 150 100 50 Working capital Quarterly sales 0 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 DAYS 140 120 100 80 60 Days of working capital 40 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
Slide 12: Cash Flow
CASH FLOW FINANCIALS BASED ON IFRS FULL YEAR FULL YEAR Q1 Q1 2015 2016 2016 2017 EUR million Normalized net result 185 163 12 42 Depreciation, amortization and impairments 54 52 12 12 Working capital 3 (56) (9) 14 Result from investments (44) (68) (6) (35) Other adjustments (23) - (2) - Net cash fro
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 Q2 Q3 Q4 Q1 10 11 12 13 14 15 16 17 Net Sales (lhs) EBIT (rhs) May 22, 2017 | ASMI annual meeting of shareholders | 13
Slide 14: Bookings & Backlog – ASMI
BOOKINGS & BACKLOG – ASMI (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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 10 11 12 13 14 15 16 17 Bookings Backlog May 22, 2017 | ASMI annual meeting of shareholders | 14
Slide 15: Shareholder Remuneration
SHAREHOLDER REMUNERATION ›!Proposed dividend stable at !0.70 per share ›!Third share buyback announced last October, increased to !100 million last March • To be executed in 2016/2017 timeframe; 61% completed as of May 19, 2017 • As part of commitment to use excess cash for the benefit of shareholde
Slide 16: Total Shareholder Return in 2015-2016
TOTAL SHAREHOLDER RETURN IN 2015-2016 120% 100% ASMI 80% ASML 60% AMAT LAM 40% 20% 0% -20% -40% -60% Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 ›! Comparison of same sector companies ›! Includes dividend payouts and redistribution of capital May 22, 2017 | ASMI annual meeting of shareholders | 16
Slide 17: 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 ASMPT 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 22, 2017 | ASMI
Slide 18: Shareholding in ASMPT Reduced from 39% to 34%
SHAREHOLDING IN ASMPT REDUCED FROM 39% TO 34% ›!On April 24, 2017, ASMI sold a 5% stake in ASMPT for proceeds of approximately !248 million 20 million shares in ASMPT were placed at a price of HK$105 per share through an accelerate bookbuild offering ›!Proceeds will be used for a new share buyback p
Slide 19: Shareholding in ASMPT
SHAREHOLDING IN ASMPT FULL FULL Q1 2017 YEAR 2015 YEAR 2016 Sales ASMPT (HK$ million) 12,977 14,249 3,761 Gross margin ASMPT 36.3% 37.6% 39.9% Reported net results ASMPT (HK$ million) 953 1,438 729 ASMI’s share of ASMPT’s net results* (EUR million) 44 68 35 * Excluding amortization resulting from th
Slide 20: ASMPT: Business Well on Track
ASMPT: BUSINESS WELL ON TRACK ›!ASMPT’s multiple applications strategy pays off !! Further increased number 1 position in Back-end market in last few years !! Leading positions in attractive growth markets such as CMOS image sensor equipment, LED and Automotive ›!SMT Solutions transformed into secon
Slide 21: Outline
OUTLINE ›! Semiconductor capital spending in 2016 ›! ASMI results in 2016 ›! Corporate responsibility ›! Products & business highlights ›! Market outlook and conclusions May 22, 2017 | ASMI annual meeting of shareholders | 21
Slide 22: Corporate Responsibility
CORPORATE RESPONSIBILITY ›!Published third annual Corporate responsibility (CR) report, showing a strong improvement in the Transparency Benchmark ›!Safety: good progress recognized by Intel award Transparency " ASMI website ›!Environmental performance: new 5-year goals defined, strong + progress in
Slide 23: Health & Safety
HEALTH & SAFETY GLOBAL INJURY AND RECORDABLE RATES ›!2016 Injury rates equal 2015 record lows, defining further actions in our goal to achieve Zero Harm! ›!Safety design significantly strengthened ›!Identified and structurally reduced key risks across the Service, Engineering Lab and Manufacturing o
Slide 24: Environment
ENVIRONMENT ›!Commenced five-year plan (2016-2020) against 2015 baseline ›!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 •! Divert more than 90% of all waste from landfill through recycle or reus
Slide 25: Outline
OUTLINE ›! Semiconductor capital spending in 2016 ›! ASMI results in 2016 ›! Corporate responsibility ›! Products & business highlights ›! Market outlook and conclusions May 22, 2017 | ASMI annual meeting of shareholders | 25
Slide 26: 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) • ALD liner films for Logic/Foundry and 3DNAND ASM Epitaxy Intrepid XP Epitaxy XP8 ALD, PECVD • New Epi business for advanced node transistors (Fou
Slide 27: Headlines Since the Last AGM
HEADLINES SINCE THE LAST AGM ›!In 2016, the single wafer ALD market showed a drop as lower demand in Memory was only partially offset by strong Logic/Foundry demand ›!Our penetration in Logic/Foundry substantially increased with ramp of 10nm node ›!Received TSMC ALD equipment and technology supplier
Slide 28: Growing Wallet Share with Top Clients
GROWING WALLET SHARE WITH TOP CLIENTS ASMI REVENUE 100% 75% Growing share of wallet with 50% top clients 25% Rest Nr 4-10 0% Top 3 2011 2012 2013 2014 2015 2016 ›!Engaged with all of the top-10 semiconductor capital equipment spenders ›!Increase in contribution top-3 in 2016 driven by Logic/Foundry
Slide 29: ALD Is an Essential Deposition Equipment Segment
ALD IS AN ESSENTIAL DEPOSITION EQUIPMENT SEGMENT ›!Following a decrease in 2016, the company expects a clear year-on-year improvement in the single wafer ALD market for 2017 ›!The company expects the single wafer ALD market will grow to reach a size of approximately US$1.5 billion in 2020-2021 ›!Dri
Slide 30: Outline
OUTLINE ›! Semiconductor capital spending in 2016 ›! ASMI results in 2016 ›! Corporate responsibility ›! Products & business highlights ›! Market outlook and conclusions May 22, 2017 | ASMI annual meeting of shareholders | 30
Slide 31: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION US$bn CAGR ‘16-21 Source: Gartner, Mar 2017 300 Servers +7% Industrial Electronics +9% 250 Semiconductor drivers Automotive +7% are mobile devices, but 200 Solid State Drives +15% long term growth rate is slowing. Smartphone Premium
Slide 32: ASM Markets
ASM MARKETS WAFER FAB EQUIPMENT BY TECHNOLOGY NODE 45 Logic/Foundry 10nm ramp in 40 2017-2018 and then transition to 7nm 35 30 DRAM expansion in 2018 for 2X and 1X/1Y nodes 25 20 3D-NAND expansion continues 15 2017-2018 10 5 0 2015 2016 2017 2018 2019 2020 2021 65nm & above 45nm 32nm 22nm 14nm 10nm
Slide 33: Q2 2017 Financial Outlook ASMI
Q2 2017 FINANCIAL OUTLOOK ASMI 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. May
Slide 34: Summary
SUMMARY ›! Due to a drop in the single wafer ALD market our revenue decreased by 11% in 2016 For 2017, a clear improvement in the single wafer ALD market is expected ›! Gross margin stable at 44%, operating expenses under control ›! Strategic achievements during the year !! Strong expansion with Log
Slide 35: May 22, 2017 | ASMI annual meeting of shareholders
May 22, 2017 | ASMI annual meeting of shareholders | 35