Asm International N.v. · EURONEXT:ASM

Asm International — Q3 2015 Earnings Presentation

24 slides from Asm International's earnings presentation, Oct 29, 2015

  1. Slide 1: Investor Presentation Q3 2015 Results

    INVESTOR PRESENTATION Q3 2015 RESULTS October April 29, 2015 24, 2015 ASM proprietary information © 2015 ASM

  2. 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 press release, except for any historical data, are forward-looking statements. Forward- looking statements involve risks and uncertainties that could cause actual

  3. 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  Revenue increased 25% in the first nine months of 2015  Outperforming the overall equipment market › Im

  4. Slide 4: Q3 2015 Key Results

    Q3 2015 KEY RESULTS EUR million Q3 2014 Q2 2015 Q3 2015 New orders 156.2 166.6 148.1 Net sales 122.2 201.0 162.0 Gross profit margin % 43.2% 45.1% 43.7% Operating results 17.2 42.1 23.2 Result from investments 30.7 20.7 8.1 Amortization intangible assets resulting from the (5.7) (6.8) (6.7) sale of

  5. Slide 5: Semiconductor Equipment Market

    SEMICONDUCTOR EQUIPMENT MARKET Equipment market segments (US$) › ASM focuses on deposition equipment Assembly › ASM has leadership positions in Test 3.9bn 4.0bn Lithography 9.6bn ALD and Plasma-Enhanced Other Wafer Processes ALD (PEALD) 2.5bn › Positions in Epitaxy, PECVD Etch and and Vertical Furna

  6. Slide 6: Equipment Market Outlook

    EQUIPMENT MARKET OUTLOOK › Gartner forecasts Wafer Fab Wafer Fab Equipment spending Equipment spending to be slightly lower in 2015, followed 45 by a ~3% decrease in 2016 40 +8.1% +4.9% +9.2% 35 +16.3% -0.5% › Investment in leading edge 30 -7.7% -2.5% equipment remains the key 25 20 driver 15 10 5 0

  7. Slide 7: Semiconductor Market

    SEMICONDUCTOR MARKET SEMICONDUCTOR SALES BY KEY APPLICATION US$bn 160 Smartphone, Premium 140 Smartphone, Basic/Utility 120 Mobile Phone, Traditional 100 Hybrid PC/Tablet 80 60 Tablet 40 PC, Ultramobile Clamshell 20 PC, Traditional Notebook 0 PC, Desk-based 2013 2014 2015 2016 2017 2018 2019 Gartner

  8. Slide 8: Wafer Fab Equipment Spending by Node

    WAFER FAB EQUIPMENT SPENDING BY NODE US$bn Wafer Fab Equipment by Node Share of 14m, 10nm and 45 7nm of total Equipment spending increasing in 2016-2018 40 35 7 nm and below 10 nm 30 14 nm 25 22 nm $B 32 nm 20 45 nm 15 65nm & above 10 5 Gartner, Oct. 2015 0 2014 2015 2016 2017 2018 2019 Advanced nod

  9. 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 increase demand for ALD

  10. Slide 10: Estimated ALD Market Growth

    ESTIMATED ALD MARKET GROWTH ALD market single wafer / minibatch › ALD market approximately doubling over the next US$m three to four years 1,400 › Key growth areas are 1,200 patterning layers, high-k/ 1,000 metal gate and other 800 applications 600 400 200 0 2014 2018 Source: Gartner, VLSI, ASMI, Oc

  11. Slide 11: 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

  12. Slide 12: Customer Concentration

    CUSTOMER CONCENTRATION ASMI revenue › Engaged with all top capex customers 100% › Diversification of customer 75% base from Logic to Memory 50% and Foundries › Weight of Asia growing 25% 0% 2009 2010 2011 2012 2013 2014 Top 3 Nr 4-10 Rest Growing share of wallet with top clients October 29, 2015 | A

  13. Slide 13: Highlights

    HIGHLIGHTS › Strong momentum ALD  ALD/PEALD further established as mainstream enabling technologies  Bookings and revenue driven by combined ALD/PEALD business › Solid results in Q3  Revenue decreased 19% compared to record high level in Q2  Gross margin at 43.7%, EBIT margin at 14.3% › Sharehol

  14. Slide 14: ASMPT Results

    ASMPT RESULTS Q3 2014 Q2 2015 Q3 2015 Sales ASMPT (HK$m) 4,582 3,752 3,241 Net profit ASMPT (EURm, 100% based) 77 53 20 Result from investments (including ASMI’s 40% share of ASMPT net profit) 30.7 20.7 8.1 Amortization intangible assets resulting from the sale of the 12% stake of ASMPT (5.7) (6.8)

  15. Slide 15: Financial Overview

    FINANCIAL OVERVIEW October 29, 2015 | ASM proprietary information | 15

  16. Slide 16: Q3 2015 Highlights

    Q3 2015 HIGHLIGHTS › Revenues down 19% q-o-q and up 33% y-o-y › Bookings down 11% q-o-q and down 5% y-o-y › Book-to-bill ratio of 0.9 › Q3 backlog of EUR 135m, down from EUR 149m at the end of Q2 2015 › EBIT margin of 14.3% compared to 21.0% in Q2 2015 and 14.1% in Q3 2014 › Cash flow from operation

  17. Slide 17: Financial Outlook

    FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q4 we expect sales between €125 and €145 million, on a currency comparable level. Orders are expected to come in at a level of €120 to €140 million, also on a currency comparable level. Our current visibility is that eq

  18. Slide 18: Net Earnings

    NET EARNINGS Q3 2015 vs Q3 2015 vs EUR million Q3 2014 Q2 2015 Q3 2015 Q2 2015 Q3 2014 New orders 156.2 166.6 148.1 (11)% (5)% Backlog 146.9 148.5 134.9 (9)% (8)% Book-to-bill 1.3 0.8 0.9 Net sales 122.2 201.0 162.0 (19)% 33% Gross profit 52.9 90.7 70.7 (22)% 34% Gross profit margin % 43.2% 45.1% 43

  19. Slide 19: Cash Flow

    CASH FLOW EUR million Q3 2014 Q2 2015 Q3 2015 Normalized net earnings 60.2 46.7 42.4 Depreciation and amortization 5.3 6.8 7.0 Result from investments (30.7) (20.7) (8.1) Other adjustments (15.1) 6.2 (4.0) Change in working capital 2.6 (27.8) 25.8 Net cash from operating activities 22.4 11.1 63.1 Ne

  20. Slide 20: Balance Sheet

    BALANCE SHEET Dec 31, 2014 Sep 30, 2015 EUR million Cash and cash equivalents 386 428 Accounts receivable 82 94 Inventories 124 117 Other current assets 27 33 Investments and associates 1,092 1,156 Property, plant and equipment 79 86 Other non-current assets 38 52 Total Assets 1,827 1,965 Accounts p

  21. Slide 21: Working Capital

    WORKING CAPITAL EUR million Days 250 140 130 200 120 110 150 100 90 80 100 70 60 50 50 40 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 11 12 13 14 15 11 12 13 14 15 Working capital Quarterly sales Days of working capital October 29, 2015 | ASM pro

  22. Slide 22: 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 Q4 Q1 Q2 Q3 09 10 11 12 13 14 15 Bookings Backlog October 29, 2015 | ASM proprietary information | 22

  23. Slide 23: Historical Development

    HISTORICAL DEVELOPMENT EUR million 250 50 40 200 30 20 150 10 - 100 10- 50 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 Q4 Q1 Q2 Q3 09 10 11 12 13 14 15 Net Sales (lhs) EBIT (rhs) October 29, 2015 | ASM proprietary information | 23

  24. Slide 24: October 29, 2015 | ASM proprietary information | 24

    October 29, 2015 | ASM proprietary information | 24

ASM International — Q3 2015 Earnings Presentation on 6ix