37 slides from Asm International's shareholder meeting presentation, May 20, 2019
Slide 1: Taking the Next Leap Forward
Annual General Meeting of Shareholders 2019 Chuck del Prado, President & CEO May 20, 2019 TAKING THE NEXT LEAP FORWARD
Slide 2: 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 results to differ materially from those in the forward-
Slide 3: Agenda
BUSINESS BUSINESS AGENDA ENVIRONMENT AND 2019 OUTLOOK AND RESULTS 2018 NON-FINANCIAL FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS 2018
Slide 4: Business Environment and Results 2018
BUSINESS ENVIRONMENT AND RESULTS 2018
Slide 5: Wafer Fab Equipment by Industry Segment
BUSINESS ENVIRONMENT AND RESULTS 2018 WAFER FAB EQUIPMENT BY INDUSTRY SEGMENT (US$ BILLION) 60 • ASMI estimates 2018 50 WFE increased slightly 40 above 10% • Strong growth in 30 memory, but slowed 20 in second half • Logic/foundry healthy, 10 strongly increasing 0 late in the year 2012 2014 2014 201
Slide 6: ASM revenue grew 17%
BUSINESS ENVIRONMENT AND RESULTS 2018 ASM revenue grew 17% (based on US$) • We believe we outperformed the WFE market in 2018 • ALD continues as our main driver with revenue over half of our total equipment revenue • Solid sales increases for Epitaxy, PECVD and Vertical Furnace
Slide 7: Logic/foundry is the largest part of our business
BUSINESS ENVIRONMENT AND RESULTS 2018 Logic/foundry is the largest part of our business, and we are increasing share of wallet with our customers in their advanced nodes, 10nm logic and 5nm foundry Further strengthened R&D engagements with key customers
Slide 8: Synergis ALD Introduced July 2018
BUSINESS ENVIRONMENT AND RESULTS 2018 SYNERGIS ALD INTRODUCED JULY 2018 ® Expanding ALD SAM with high productivity thermal ALD memory and logic solutions • Wide range of films allows us to address more ALD applications • Leverages HVM proven XP8 platform • New dual chamber thermal ALD reactor techno
Slide 9: XP8 QCM Introduced January 2019
BUSINESS ENVIRONMENT AND RESULTS 2018 XP8 QCM INTRODUCED JANUARY 2019 Expanding plasma opportunities on the successful XP8 platform • High productivity PEALD & PECVD applications • Quad Chamber Module enables processing up to 16 wafers at a time • XP8 QCM is in high-volume manufacturing at multiple
Slide 10: Intrepid ES Epitaxy
BUSINESS ENVIRONMENT AND RESULTS 2018 INTREPID ES EPITAXY ® ™ Intrepid addresses advanced node CMOS Epi market • We improved our Epi position in the foundry segment going from 7nm to 5nm • ASM’s Epi market share increased in 2018 • Continued healthy contribution from analog and power • Epi steps for
Slide 11: A412 Vertical Furnace
BUSINESS ENVIRONMENT AND RESULTS 2018 A412 VERTICAL FURNACE Continued innovation in Vertical Furnace • Niche focus on selected customers and markets such as analog • Solid sales increase in 2018
Slide 12: Financial Highlights 2018
FINANCIAL HIGHLIGHTS 2018
Slide 13: Net Sales
FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS 2018 818 737 NET SALES + 11% EUR million 2017 2018 2018 +17% on US$ basis
Slide 14: Operating Result
FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS 2018 124 113 OPERATING + 10% RESULT EUR million 2017 EUR million 2018
Slide 15: Operating Result and Net Result
FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS 2018 452 OPERATING NET 157 RESULT EUR million 2017 EUR million 2018
Slide 16: Operating Result and Net Result
FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS 2018 285 Book profit ASMPT share sales Result from 89 OPERATING NET 48 investments 78 RESULT 109 Net result excl. ASMPT EUR million 2017 EUR million 2018
Slide 17: Cash Flow Bridge
FINANCIAL HIGHLIGHTS 2018 Net cash Net cash 836 end ‘17 end ‘18 286 CASH Other Capital -209 repayment FLOW 29 BRIDGE Dividend from ASMPT -44 Dividend to ASMI 29 shareholders Share -355 buybacks
Slide 18: Shareholder Remuneration
FINANCIAL HIGHLIGHTS 2018 SHAREHOLDER RENUMERATION DIVIDEND PER SHARE (EUR) 1.0 0.8 0.6 0.4 0.2 0.0 2012 2013 2014 2015 2016 2017 2018 2019* * Proposed
Slide 19: Cumulative Cash Returned to Market 2010-2018
FINANCIAL HIGHLIGHTS 2018 CUMULATIVE CASH RETURNED TO MARKET ’10-’18 (EUR MILLION) 2,000 1,500 1,000 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Buyback convertibles Return of capital Dividends Share buybacks
Slide 20: Non-Financial Highlights 2018
NON-FINANCIAL HIGHLIGHTS 2018
Slide 21: Striving for Zero Harm!
NON-FINANCIAL HIGHLIGHTS 2018 STRIVING FOR ZERO HARM!
Slide 22: Reduced Injury Rates and Water Consumption
NON-FINANCIAL HIGHLIGHTS 2018 STRIVING FOR ZERO HARM! FURTHER REDUCED OUR INJURY RATES SIGNIFICANTLY REDUCED GLOBAL WATER CONSUMPTION AND CONTINUED POSITIVE CONTRIBUTIONS TO SOCIETY
Slide 23: Global Injury Rates
NON-FINANCIAL HIGHLIGHTS 2018 GLOBAL INJURY RATES 1.0 Injury rate 0.8 Improved from 2017: 0.6 0.59 4.8% 0.4 0.23 Recordable Injury rate* 0.2 Improved from 2017: 0.0 2014 2015 2016 2017 2018 11.5% * Injuries requiring > first aid, restricted duty, or lost work days, rate per 100 employees
Slide 24: Global ASM Water Consumption
NON-FINANCIAL HIGHLIGHTS 2018 GLOBAL ASM WATER CONSUMPTION (M ) 3 • Phoenix water reuse plant functional, 28% absolute global reduction (from 2017) • Reset normalized objective from 10% to 45% reduction from 2015 baseline 250,000 3,500 1,886 200,000 2,500 150,000 1,500 1,030 1,037 100,000 500 2014 2
Slide 25: Non-Financial Highlights 2018
NON-FINANCIAL HIGHLIGHTS 2018
Slide 26: Korea facility completed; Singapore groundbreaking
NON-FINANCIAL HIGHLIGHTS 2018 Korea facility completed in 2018, fully occupied since January 2019 Groundbreaking of new Singapore manufacturing Facility in April 2019 Further supporting the next stages of our growth
Slide 27: TSMC Excellent Performance Award
NON-FINANCIAL HIGHLIGHTS 2018 TSMC EXCELLENT PERFORMANCE AWARD 3RD CONSECUTIVE YEAR
Slide 28: Business Agenda and 2019 Outlook
BUSINESS AGENDA AND 2019 OUTLOOK
Slide 29: Semiconductor Sales by Key Application
BUSINESS AGENDA AND 2019 OUTLOOK SEMICONDUCTORS SALES BY KEY APPLICATION (US$ BILLION) Long term semi growth drivers are solid state drives, servers, automotive and industrial 600 Automotive 500 Industrial 400 Solid-State Drives Servers 300 Smartphones 200 Communication 100 (ex. Smartphones) Compute
Slide 30: Wafer Fab Equipment
BUSINESS AGENDA AND 2019 OUTLOOK WAFER FAB EQUIPMENT (US$ Billion) 70 60 50 40 30 20 10 0 Source Gartner 2016 2017 2018 2019 2020 2021 2022 2023 May 2019
Slide 31: Markets: Overall WFE and Memory
BUSINESS AGENDA AND 2019 OUTLOOK MARKETS Overall WFE down mid to high teens ASM benefits of current market segment dynamics Memory Substantial drop in equipment spending, no recovery expected throughout 2019
Slide 32: Markets: Analog and Logic/Foundry
BUSINESS AGENDA AND 2019 OUTLOOK MARKETS Analog H1 healthy, but spending in H2 2019 expected to decrease Logic/foundry Robust spending driven by 10nm logic and 5nm foundry nodes
Slide 33: Growth: Increase Addressable Market in ALD
BUSINESS AGENDA AND 2019 OUTLOOK GROWTH Increase addressable market in ALD • Broaden reach and increase share of wallet in memory markets • Maintain leadership in growing logic/foundry market Drive structurally higher sales in other product lines • Broaden position in Epi • Targeted investments in F
Slide 34: Growth: Expand R&D Engagements
BUSINESS AGENDA AND 2019 OUTLOOK GROWTH Expand R&D engagements • Focus on continued strengthening of R&D engagements with key customers Preparing for next stage of growth • Healthy pipeline of new products and applications • New expanded Singapore manufacturing facility
Slide 35: Q2 2019
BUSINESS AGENDA AND 2019 OUTLOOK Q2 2019 For Q2, on a currency comparable level, we expect sales of €230-250 million while bookings, on a currency comparable level, are expected to be in the range of €240-260 million.
Slide 36: For 2019
BUSINESS AGENDA AND 2019 OUTLOOK FOR 2019 For 2019, general expectations are that the wafer fab equipment (WFE) market will decline with a mid to high teens percentage. Logic and foundry, as compared to the memory segment, are expected to stay healthy in 2019. Based upon this current market view, we
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