Slide 1: Investor Presentation Q3 2016 Results
INVESTOR PRESENTATION Q3 2016 RESULTS October October 26, 26, 20162016 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: Q3 2016 Key Results - IFRS
Q3 2016 KEY RESULTS - IFRS Q3 2015 Q2 2016 Q3 2016 New orders 148.1 159.1 122.6 Net sales 162.0 138.7 144.2 Gross profit margin % 43.4% 43.8% 44.2% Operating results 30.6 16.7 16.8 Result from investments 8.6 16.4 26.7 Amortization intangible assets resulting (6.7) (6.7) (6.7) from the sale of the 1
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET Equipment market segments (US$) › ASM focuses on deposition equipment Assembly › ASM is a market leader in ALD Test 3.6bn 3.3bn Lithography 8.1bn › Positions in Epitaxy, PECVD Other Wafer Processes and Vertical Furnaces 2.2bn Etch and Process Clean Diagnostics 8.1bn 3.
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner forecasts WFE spending to increase by 7% Wafer Fab Equipment Spending US$bn in 2016, followed by 6% increase in 2017 45 +8.2% › Investment in leading edge 40 35 +16.3% -1.3% +6.6% +6.4% +2.1% -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 and 7nm of total 45 Equipment spending increasing in 2016-2018 40 35 30 7nm and below 10nm 25 14nm 22nm 20 32nm 15 45nm 65nm and above 10 5 0 2014 2015 2016 2017 2018 2019 Gartner, October 2016 Advanced nodes: market segments with high e
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 ~$1.5bn 1,600 in the next 3-4 years 1,400 1,200 › Key market growth drivers 1,000 • In Logic/Foundry a strong rise in the
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD z Developing ALD technology since 1999 z Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 12: Customer Concentration
CUSTOMER CONCENTRATION ASMI revenue › Engaged with all of the top-10 semiconductor capital 100% equipment spenders › Diversification of customer 75% base from Logic to Memory 50% and Foundries 25% › Strong momentum with 0% 2010 2011 2012 2013 2014 2015 customers beyond the Top 3 Nr 4-10 Rest traditi
Slide 13: Highlights
HIGHLIGHTS › ALD market outlook z Strong Logic/Foundry demand in 2016 is not expected to offset lower Memory demand, leading to a double digit decrease in the single wafer ALD market z For 2017, a clear improvement in the single wafer ALD market is expected; long term outlook remains solid › Shareho
Slide 14: ASMPT Results
ASMPT RESULTS Q3 2015 Q2 2016 Q3 2016 Sales ASMPT (HK$m) 3,241 3,669 4,197 Net profit ASMPT excluding one-offs (EURm, 100% based) 20 51 68 Result from investments (including ASMI’s 39% share of ASMPT net profit) 8.6 16.4 26.7 Amortization intangible assets resulting from the sale of the 12% stake of
Slide 15: Financial Overview
FINANCIAL OVERVIEW October 26, 2016 | ASM proprietary information | 15
Slide 16: Q3 2016 Highlights
Q3 2016 HIGHLIGHTS › Revenues up 4% q-o-q and down 11% y-o-y › Bookings down 23% q-o-q and down 17% y-o-y. Book-to-bill ratio of 0.9 › Q2 backlog of EUR 154m, down from EUR 175m at the end of Q2 › EBIT margin of 11.7% compared to 12.0% in Q2 and 18.9% in Q3 2015 › Free cash flow of positive EUR 19m
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: After its strong growth in the previous years, and as also communicated with our Q2-results in July, the single wafer ALD market is expected to show a double-digit decline in 2016, caused by a significant decrease in Memory
Slide 18: Net Earnings Q3
NET EARNINGS Q3 Q3 2016 vs Q3 2016 vs EUR million Q3 2015 Q2 2016 Q3 2016 Q2 2016 Q3 2015 New orders 148.1 159.1 122.6 (23)% (17)% Backlog 134.9 175.4 154.4 (12)% 14% Book-to-bill 0.9 1.1 0.9 Net sales 162.0 138.7 144.2 4% (11)% Gross profit 70.3 60.8 63.7 5% (9)% Gross profit margin % 43.4% 43.8% 4
Slide 19: R&D Expenditure
R&D EXPENDITURE EUR million Q3 2015 Q2 2016 Q3 2016 R&D expenditure (23.2) (24.5) (26.7) Capitalized development expenditure 11.8 6.6 6.8 Amortization capitalized development expenditure (4.0) (4.2) (4.3) R&D expenses (15.4) (22.1) (24.2) October 26, 2016 | ASM proprietary information | 19
Slide 20: Cash Flow
CASH FLOW EUR million Q3 2015 Q2 2016 Q3 2016 Normalized net earnings 49.5 42.3 39.8 Depreciation and amortization 10.9 12.1 12.8 Result from investments (8.6) (16.4) (26.7) Other adjustments (3.2) (7.2) 2.9 Change in working capital 26.3 (18.4) 2.4 Net cash from operating activities 74.9 12.3 31.2
Slide 21: Balance Sheet
BALANCE SHEET EUR million Dec 31, 2015 Sep 30, 2016 Cash and cash equivalents 447 363 Accounts receivable 90 107 Inventories 114 116 Other current assets 19 17 Investments and associates 1,181 1,168 Property, plant and equipment 92 103 Capitalized development costs 73 87 Other non-current assets 60
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 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 12 13 14 15 16 12 13 14 15 16 Working capital Quarterly sales Days of working capital October 26, 2016 | ASM pr
Slide 23: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 250 50 200 40 180 200 30 160 140 20 150 120 10 100 0 100 80 -10 60 50 -20 40 -30 20 0 0 -40 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 10 11 12 13 14 15 16 10 11 12 13 14 15 16 Net Sales
Slide 24: Comparable Results US GAAP
COMPARABLE RESULTS US GAAP Q3 2016 vs Q3 2016 vs EUR million Q3 2015 Q2 2016 Q3 2016 Q2 2016 Q3 2015 Net sales 162.0 138.7 144.2 4% (11)% Gross profit 70.7 60.8 63.7 5% (10)% Gross profit margin % 43.7% 43.8% 44.1% Selling, general and administrative expenses (24.0) (21.0) (21.4) 2% (11)% Research a
Slide 25: October 26, 2016 | ASM proprietary information | 25
October 26, 2016 | ASM proprietary information | 25