Slide 1: Investor Presentation Q3 2014 Results
INVESTOR PRESENTATION Q3 2014 RESULTS October 30, 2014 ASM proprietary information © 2014 ASM
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: 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 co
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS › ALD is a key growth market ALD market expected to outperform the broader equipment market ASMI has leadership positions in ALD and PEALD › Strong revenue performance ASMI grew revenue by 22% in 2013 and by 30% in the first nine months of 2014 Outperforming the overall
Slide 4: Q3 2014 Key Results
Q3 2014 KEY RESULTS EUR million Q3 2013 Q2 2014 Q3 2014 New orders 112.2 119.5 156.2 Net sales 116.4 148.4 122.2 Gross profit margin % 39.1% 42.3% 43.2% Operating results 11.6 27.4 17.2 Result from investments (excl. amortization and 10.8 15.8 30.7 fair value purchase price allocation) Remeasurement
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET Equipment market segments (US$) › ASM focuses on deposition equipment Assembly › ASM is the market leader in ALD Test 3.6bn 3.5bn Lithography 9.3bn and PEALD Other Wafer Processes › Positions in Epitaxy, PECVD 2.6bn and Vertical Furnaces Etch and Process Clean Diagnost
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK Capital equipment spending › Gartner forecasts a double digit market increase for 2014, front US$bn 60 end loaded in the first half year +11% › Driven by investment in leading 50 +11% -16% +17% -7% 40 edge equipment -12% 30 20 10 0 2011 2012 2013 2014 2015 2016 Gartner, Octo
Slide 7: Mobility the Key End Market Driver
MOBILITY THE KEY END MARKET DRIVER SEMICONDUCTOR SALES BY KEY APPLICATION (USD billion) 160 Premium Smartphone 140 Utility/Basic Smartphone 120 Traditional Mobile Phone 100 Media Tablet, Utility/Basic 80 Media Tablet, Premium 60 40 PC, Ultramobile 20 PC, Notebook 0 PC, Desk-based 2011 2012 2013 2014
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE 7 nm and below Wafer Fab Equipment by Node 45.0 10 nm 14 nm 40.0 22 nm 32 nm 35.0 45 nm 65nm & above 30.0 Share of 22nm and 14nm 25.0 of total Equipment spending increasing in $B 20.0 2014-2015 15.0 10.0 5.0 0.0 2012 2013 2014 2015 2016 2017 2018 Gartner, April 2
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, even on high aspect ratio structures Device scaling, new materials and 3D architectures increases demand for AL
Slide 10: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD Developing ALD technology since 1999 Largest player in both single wafer ALD and PEALD › Close cooperation with the leading IC manufactur
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION ASMI revenue › Wider adoption number of top capex customers 100% › Diversification of customer 75% base from Logic to Memory and Foundries 50% › Weight of Asia growing 25% 0% 2009 2010 2011 2012 2013 Top 3 Nr 4-10 Rest Growing share of wallet with top clients October 30, 2014
Slide 12: Highlights
HIGHLIGHTS › Strong momentum ALD and PEALD ALD and PEALD further established as mainstream enabling technologies Bookings and revenues in the first nine months of 2014 driven by ALD and PEALD › Solid results in Q3 Revenue dropped 18% compared to Q2, bookings increased 31% Gross margin at 43.
Slide 13: ASMPT Results
ASMPT RESULTS › As of 15 March 2013, our 40% share of ASMPT net profit is included in ‘result from investments’ › PPA regular amortization projected at € 22m for full year 2014 Q3 2013 Q2 2014 Q3 2014 Sales ASMPT (HK$m) 3,102 3,438 4,852 Net profit ASMPT (EURm, 100% based) 26.8 39.5 77.0 ASMI’s 40%
Slide 14: Financial Overview
FINANCIAL OVERVIEW October 30, 2014 | ASM proprietary information | 14
Slide 15: Q3 2014 Highlights
Q3 2014 HIGHLIGHTS › Revenues down 18% q-o-q and up 5% y-o-y › Bookings up 31% q-o-q and up 39% y-o-y › Book-to-bill ratio of 1.3 › Q3 backlog of EUR 147m, up from EUR 109m in Q2 2014 › EBIT margin of 14.1% compared to 18.5% in Q2 2014 and 9.9% in Q3 2013 › Cash flow from operations of EUR 22m in Q3
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q4 we expect a flat to single digit sales increase (on a currency comparable level), while our new orders are expected to be in the EUR 130-150 million range. This would bring new orders for the second half of the year
Slide 17: Net Earnings
NET EARNINGS Q3 2014 vs Q3 2014 vs EUR million Q3 2013 Q2 2014 Q3 2014 Q2 2014 Q3 2013 New orders 112.2 119.5 156.2 31% 39% Backlog 111.4 109.1 146.9 35% 32% Book-to-bill 1.0 0.8 1.3 Net sales 116.4 148.4 122.2 (18)% 5% Gross profit 45.6 62.8 52.9 (16)% 16% Gross profit margin % 39.1% 42.3% 43.2% Se
Slide 18: Cash Flow
CASH FLOW EUR million Q3 2013 Q2 2014 Q3 2014 Net earnings (0.9) 34.6 54.6 Depreciation and amortization 5.1 5.0 5.3 PPA amortization and adjustments 17.2 5.5 5.7 Result from investments (10.8) (15.8) (30.7) Other adjustments 1.9 3.5 (15.1) Change in working capital 21.8 (14.5) 2.6 Net cash from ope
Slide 19: Balance Sheet
BALANCE SHEET Dec 31, 2013 Sep 30, 2014 EUR million Cash and cash equivalents 312 410 Accounts receivable 83 78 Inventories 105 111 Other current assets 18 23 Investments and associates 944 1,056 Property, plant and equipment 57 72 Other non-current assets 33 35 Total Assets 1,551 1,783 Accounts pay
Slide 20: Working Capital
WORKING CAPITAL EUR million Days 160 140 140 130 120 120 110 100 100 80 90 60 80 70 40 60 20 50 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 11 12 13 14 11 12 13 14 Working capital Quarterly sales Days of working capital October 30, 2014 | ASM propri
Slide 21: Bookings and Backlog
BOOKINGS AND BACKLOG EUR million 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 Q2 Q3 09 10 11 12 13 14 Bookings Backlog October 30, 2014 | ASM proprietary information | 21
Slide 22: Historical Development
HISTORICAL DEVELOPMENT EUR million 160 40 140 30 120 20 100 10 80 - 60 10- 40 20- 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 09 10 11 12 13 14 Net Sales (lhs) EBIT (rhs) October 30, 2014 | ASM proprietary information | 22
Slide 23: October 30, 2014 | ASM proprietary information
October 30, 2014 | ASM proprietary information | 23