Asm International N.v. · EURONEXT:ASM
Asm International — Q3 2017 Earnings Presentation
24 slides from Asm International's earnings presentation, Nov 8, 2017
Slide 1: Investor Presentation Q3 2017 Results
INVESTOR PRESENTATION Q3 2017 RESULTS October October 26,31, 2016 2017 (updated on November 8, 2017) ASM proprietary information © 2017 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 r
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS › ALD is a key growth market ALD market expected to grow by double digits from ’15 to ’20-’21 ASMI has leadership position in ALD › Outperforming in 2011-2016 Sales grown at a CAGR of 11% in last six years, outperforming broader equipment market Single wafer ALD market
Slide 4: Q3 2017 Key Results
Q3 2017 KEY RESULTS Q3 2016 Q2 2017 Q3 2017 New orders 122.6 205.9 160.4 Net sales 144.2 202.0 185.3 Gross profit margin % 44.2% 43.7% 40.0% Operating results 16.8 37.7 25.7 Normalized result from investments 26.7 30.9 32.1 Amortization intangible assets resulting from the (6.7) (7.3) (5.4) sale of
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments (US$) equipment › ASM is a market leader in ALD Test Assembly 4.5bn Lithography 10.7bn › Positions in Epitaxy, PECVD 4.7bn Other Wafer Processes and Vertical Furnaces 4.1bn Process Diagnostics 6.2bn Etch and Clean 1
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner forecasts WFE spending to increase by 26% Wafer Fab Equipment Spending in 2017, followed by a slight US$bn increase in 2018 › Investment in leading edge 50 45 +25.9% +0.4% -9.8% -1.0% +7.3% +11.4% 40 equipment remains the key -1.0% 35 driver 30 25 20 15 10 5 0 2015
Slide 7: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION US$bn CAGR ‘16-21 350 Servers +11% 300 Industrial Electronics +10% 250 Automotive +9% Solid State Drives +15% 200 Smartphone Premium +5% 150 Smartphone Basic +5% Tablet -1% 100 PC / Tablet Hybrid +18% 50 PC Ultramobile Clamshell +7%
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE Share of 14nm, 10nm US$bn and 7nm and below of total Equipment spending 50 increasing in 2017-2020 45 40 35 7nm and below 30 10nm 14nm 25 22nm 20 32nm 45nm 15 65nm and above 10 5 0 2015 2016 2017 2018 2019 2020 2021 Gartner, October 2017 › Advanced nodes: market
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, ability to deposit new materials Device scaling, new materials and 3D architectures drive increased demand for
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 Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION › Engaged with all of the top-10 ASMI revenue semiconductor capital equipment spenders 100% › Increase in contribution top-3 75% in 2016 driven by 50% Logic/Foundry 25% 0% 2011 2012 2013 2014 2015 2016 Top 3 Nr 4-10 Rest Growing share of wallet with top clients October 31, 201
Slide 12: Highlights
HIGHLIGHTS › Solid growth expected for the ALD market For 2017, we expect a clear improvement in the single wafer ALD market We expect the single wafer ALD market to reach a size of approx. US$1.5 billion by 2020-2021 › Growth in newly introduced products Q3 sales included strongly increased E
Slide 13: Stake in ASMPT Reduced to 25%
STAKE IN ASMPT REDUCED TO 25% › On Nov. 2, 2017, ASMI sold a 9% stake in ASMPT for proceeds of approx. €450 million 37 million shares in ASMPT were placed at a price of HK$111 per share through an accelerated bookbuild offering Part of proceeds will be used for a tax efficient capital return, pr
Slide 14: ASMPT Results
ASMPT RESULTS Q3 2016 Q2 2017 Q3 2017 Sales ASMPT (HK$ million) 4,197 4,424 5,110 Net profit ASMPT excluding one-offs (€ million, 100% based) 68 88 95 Normalized result from investments (including ASMI’s share of ASMPT net profit) 26.7 30.9 32.1 Amortization intangible assets resulting from the sale
Slide 15: Financial Overview
FINANCIAL OVERVIEW October 31, 2017 | ASM proprietary information | 15
Slide 16: Q3 2017 Highlights
Q3 2017 HIGHLIGHTS › Revenues down 8% q-o-q (down 3% q-o-q on a currency comparable basis) and up 28% y-o-y › Bookings down 22% q-o-q and up 31% y-o-y. Book-to-bill ratio of 0.9 › Q3 backlog of €180m compared to €210m at the end of Q2 › Gross margin of 40.0% in Q3 was for 5%-points negatively impact
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: We continue to expect a clear year-on-year improvement in the single wafer ALD market in 2017, with demand in the Logic/Foundry segment remaining healthy and a strong increase in the 3D-NAND segment. For Q4, on a currency c
Slide 18: Net Earnings Q3
NET EARNINGS Q3 Q3 2017 vs Q3 2017 vs EUR million Q3 2016 Q2 2017 Q3 2017 Q2 2017 Q3 2016 New orders 122.6 205.9 160.4 (22)% 31% Backlog 154.4 209.6 179.8 (14)% 16% Book-to-bill 0.9 1.0 0.9 Net sales 144.2 202.0 185.3 (8)% 28% Gross profit 63.7 88.2 74.1 (16)% 16% Gross profit margin % 44.2% 43.7% 4
Slide 19: R&D Expenditure
R&D EXPENDITURE EUR million Q3 2016 Q2 2017 Q3 2017 R&D expenditure (26.7) (29.1) (27.6) Capitalized development expenditure 6.8 8.8 8.4 Amortization capitalized development expenditure (4.3) (3.5) (3.3) Impairment capitalized development expenditure - (1.4) - R&D expenses (24.2) (25.1) (22.5) Octob
Slide 20: Cash Flow
CASH FLOW EUR million Q3 2016 Q2 2017 Q3 2017 Normalized net earnings 39.8 55.6 47.6 Depreciation, amortization and impairments 12.8 13.6 11.3 Result from investments (26.7) (30.9) (32.1) Other adjustments 2.9 (1.1) (1.2) Change in working capital 2.4 (51.4) 8.3 Net cash from operating activities 31
Slide 21: Balance Sheet
BALANCE SHEET EUR million Dec 31, 2016 Sept 30, 2017 Cash and cash equivalents 378 525 Accounts receivable 137 129 Inventories 112 150 Other current assets 23 21 Investments and associates 1,236 1,005 Property, plant and equipment 95 101 Capitalized development costs 88 92 Other non-current assets 7
Slide 22: Working Capital
WORKING CAPITAL EUR million Days 250 140 200 120 150 100 100 80 50 60 0 40 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 12 13 14 15 16 17 12 13 14 15 16 17 Working capital Quarterly sales Days of working capital October 31, 2017 | ASM proprietary info
Slide 23: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 250 50 250 40 200 200 30 20 150 150 10 0 100 100 -10 50 -20 50 -30 0 -40 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 10 11 12 13 14 15 16 17 10 11 12 13 14 15 16 17 Net
Slide 24: October 31, 2017 | ASM proprietary information | 24
October 31, 2017 | ASM proprietary information | 24