Asm International N.v. · EURONEXT:ASM
Asm International — Q1 2021 Earnings Presentation
23 slides from Asm International's earnings presentation, Apr 20, 2021
Slide 1: Investor Presentation Q1 2021 Results
INVESTOR PRESENTATION Q1 2021 RESULTS April 20, 2021
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 › Strong long term growth prospects l ASM sales primarily driven by wafer fab equipment investments in the most advanced nodes l ALD is expected to be a key growth market, ASM has leadership positions in ALD l Driving structurally higher sales in the other product lines › Healt
Slide 4: 2021 Q1 Key Results
2021 Q1 KEY RESULTS (restated) Q1 2020 Q4 2020 Q1 2021 2017 New orders 333.5 378.7 410.6 773.7 Net sales 325.1 346.6 394.0 730.9 Gross profit margin % 44.5% 45.2% 49.5% 41.3% Operating result 78.1 77.5 124.5 108.9 Operating margin 24.0% 22.4% 31.6% Normalized result from investments 0.7 27.1 13.9 11
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM is a market leader in ALD Equipment market segments 2020 (US$) › Positions in Epitaxy, PECVD Etch and Clean and Vertical Furnaces 18.2bn Lithography Deposition 16.4bn 15.8bn Assembly 3.5bn Test Process 4.3bn Other Diagnostics Wafer 7.6bn Processes 5.6bn VLSI Rese
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner expects WFE to increase by 23% in 2021 (April 2021), up from +8% still predicted in Wafer Fab Equipment spending December 2020 US$bn › VLSI Research expects WFE to increase by 22% 100 in 2021 (April ’21), up from a previous forecast of 90 80 +12% last February 70 ›
Slide 7: Semiconductor Market Growth Drivers
SEMICONDUCTOR MARKET GROWTH DRIVERS Semiconductor sales by key application CAGR ‘18-25 700 Consumer Electronics +5% 600 Compute (ex. Servers) 1% 500 Commu nication (ex. +5% Smartphones) 400 Smartphones +5% 300 Servers +0% Solid State Drives +11% 200 Industrial +7% 100 Automotive +9% 0 2018 2019 2020
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn Strongest growth in leading edge nodes 100 90 80 70 7nm and below 10nm 60 14nm 50 22nm 40 32nm 30 45nm 65nm and above 20 10 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Gartner, April 2021 › Advanced nodes: market segments with high expected gro
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law l Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, ability to deposit new materials l 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 l Developing ALD technology since 1999 l Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION ASMI sales 2020 › Engaged with all of the top-10 semiconductor capital equipment spenders Top 3 Nr 4-10 Rest Growing share of wallet with top clients April 20, 2021 | ASM proprietary information | 11
Slide 12: Key Points During the Quarter
KEY POINTS DURING THE QUARTER › COVID-19 update l The health and safety of our employees continue to be our key priority › Strong sales momentum in Q1 2021 l Sales increased 21% year-on-year in Q1, including a 6% negative currency impact l Driven by continued strength in the logic/foundry segment, i
Slide 13: ASMPT Results
ASMPT RESULTS Q1 2020 Q4 2020 Q1 2021 Net profit ASMPT (€ million, 100% based) 3 110 56 Normalized result from investments (including ASMI’s share of ASMPT net profit) 0.7 27.1 13.9 Amortization intangible assets resulting from the sale of ASMPT stake in 2013 (3.5) (3.0) (3.0) Results from investmen
Slide 14: Financial Overview
FINANCIAL OVERVIEW April 20, 2021 | ASM proprietary information | 14
Slide 15: Q1 2021 Financial Highlights
Q1 2021 FINANCIAL HIGHLIGHTS › Q1 revenue was up 14% q-o-q and up 21% y-o-y. Currencies had a negative impact on Q1 revenue of 6% y-o-y › Bookings up 8% q-o-q and up 23% y-o-y with a book-to-bill ratio of 1.0. › Q1 backlog of €345m up from €324 in Q4 › Gross margin 49.5% in Q1 up from 45.2% in Q4, d
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q2, on a currency comparable level, we expect revenue of €390-€410 million. Q2 bookings, on a currency comparable level, are expected to be in the range of €420-€440 million. Based upon the current market developments,
Slide 17: Net Earnings
NET EARNINGS € million Q1 2020 Q4 2020 Q1 2021 New orders 333.5 378.7 410.6 Backlog 365.3 323.6 344.5 Book-to-bill 1.0 1.1 1.0 Net sales 325.1 346.6 394.0 Equipment sales 269.3 275.4 319.1 Spares & service 55.8 71.2 74.9 Gross profit 144.8 156.6 195.0 Gross profit margin % 44.5% 45.2% 49.5% Selling,
Slide 18: R&D Expenditure
R&D EXPENDITURE € million Q1 2020 Q4 2020 Q1 2021 R&D expenditure (40.9) (45.2) (42.7) Capitalized development expenditure 15.6 16.3 17.4 Amortization capitalized development expenditure (5.5) (5.4) (5.3) Impairment capitalized development expenditure - (3.0) - R&D expenses (31.0) (37.2) (30.6) Apri
Slide 19: Cash Flow
CASH FLOW € million Q1 2020 Q1 2021 Net earnings 74.1 122.5 Depreciation, amortization and impairments 19.2 19.9 Result from investments 2.8 (10.9) Evaluation tools (20.5) (11.4) Other adjustments 16.3 (43.1) Change in working capital (10.4) 38.6 Net cash from operating activities 81.4 115.6 Capital
Slide 20: Balance Sheet
BALANCE SHEET € million Dec 31, 2020 Mar 31, 2021 Cash and cash equivalents 435 498 Accounts receivable 280 307 Inventories 162 171 Other current assets 73 54 Right-of-use Assets - net 23 24 Investments in associates 743 782 Property, plant and equipment 214 216 Goodwill and other intangible assets
Slide 21: Working Capital
WORKING CAPITAL € million Days 450 120 400 350 100 300 250 80 200 150 100 60 50 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q4 Q1 Q2* Q4* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q4 Q1 Q2* Q4* 17 18 19 20 21 17 18 19 20 21 Working capital Quarterly sales Days of working capital Numbers based on report
Slide 22: Historical Development
HISTORICAL DEVELOPMENT € million € million 1.600 350 450 1.400 300 400 1.200 350 250 1.000 300 200 250 800 150 200 600 100 150 400 100 200 50 50 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2* Q3 Q4* Q1 Q2 Q3 Q4 Q1 17 18 19 20 21 Net Sales (lhs) EBIT (rhs
Slide 23: April 20, 2021 | ASM proprietary information | 23
April 20, 2021 | ASM proprietary information | 23