Asm International N.v. · EURONEXT:ASM
Asm International — Q1 2013 Earnings Presentation
32 slides from Asm International's earnings presentation, Apr 24, 2013
Slide 1: Investor presentation
Investor presentation 24 April 2013 © 2009 ASM Proprietary Information
Slide 2: Safe Harbor Statements
Safe Harbor Statements All matters discussed in this business and strategy update, 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-looking stateme
Slide 3: Investment Highlights
Investment Highlights Strong offering in Front End equipment Deposition represents a US$ 7.5bn market, growing to US$ 10.8bn in 2016 (VLSI Research) Leading position in our target market segments Technology enabling new materials and new device integration roadmaps Fast growth ALD / PEALD
Slide 4: Semiconductor Market Through 2017
Semiconductor Market Through 2017 PC versus smartphones Semiconductor Sales1 ($B) Semiconductor Dollars Per Unit1 ($) 180 160 Ultramobile PC 160 140 Notebook PC 140 PC 120 Desk-based PC 120 100 Utility/Basic Media Tablet 100 Premium Media Tablet 80 80 60 Premium Smartphone 60 Media Tablet 40 40 Smar
Slide 5: Global Semiconductor Equipment Market
Global Semiconductor Equipment Market 2012 ($ 38.1 Billion) Etch & Clean Assembly $ 6.8 B $ 4.2 B Test $ 3.7 B Other Wafer Process $ 7.5 B Lithography Deposition $ 8.4 B $ 7.5 B Source: VLSI Research Inc., January, 2013 © 2009 ASM Proprietary Information Monday, April 29, 2013 5
Slide 6: ASM Front-end Markets
ASM Front-end Markets $M ASM addressable IC Deposition market by Sub-Segment 7000 Key Growth Drivers: 6000 Spending result of need to 5000 advance towards 20/14nm and beyond and by capacity Diffusion/Furnace 4000 increases Epitaxy PECVD Logic and Foundry spending to 3000 ALD remain healthy in 20
Slide 7: Key market Drivers: Wafer Fab Equipment Forecast by node
Key market Drivers Wafer Fab Equipment Forecast by node Wafer Fab Equipment by Node 45,000 40,000 Opportunity for WFE 35,000 share increase 30,000 14 nm & Below 25,000 22 nm $M 32 nm 20,000 45 nm 65 nm 90 nm & Above 15,000 10,000 5,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Gartner Dec, 2012
Slide 8: ASM Products – Front-end
ASM Products – Front-end Market Requirements: 32nm→22nm →14nm and beyond Process Application ASM Relative Positioning ALD and PEALD • ALD key for High-k Metal Gate #1 in the served ALD market technology Qualified by nearly all Logic • ALD solution (Hafnium oxide) • 3D FinFET requires more manufa
Slide 9: ASM Products – Front-end
ASM Products – Front-end Two new high productivity platforms have been introduced in 2012 High productivity XP cluster with 4 Epi reactors IntrepidTM XP Dragon® XP8 Epitaxy PECVD Eagle® XP8 PEALD High throughput, low CoO single wafer deposition tool © 2009 ASM Proprietary Information 9
Slide 10: Growing Wallet Share With Top Clients
Growing Wallet Share With Top Clients ASMI Revenue % Key Developments: Diversification of customer base from Logic to Memory and Foundries (recently driven by ALD/PEALD) Momentum Asia growing © 2009 ASM Proprietary Information 10
Slide 11: ASMI Front-end's Competitive Advantages
ASMI Front-end’s Competitive Advantages ASMI Front-end started ALD technology in 1999 and has a strong time advantage over competition. The ALD (and PEALD) technology is strongly patented ALD is now mainstream and there is no strong competition until now Further miniaturization will require
Slide 12: What Has Changed – Front-end
What Has Changed – Front-end Manufacturing consolidated into 1 location in Singapore since 2010 Adjacent to ASMPT facility Significantly streamlined R&D, Product Management and G&A functions New cost cutting measures recently undertaken leading towards further improved margins Further rest
Slide 13: ASMPT markets
ASMPT markets $M IC Assembly and Packaging Market 6000 Key Growth Drivers: 5000 4000 For IC equipment IC Dicing Increasing unit volume 3000 Increasing share of the Asia Pacific 2000 ASM Served region benefiting regional ties of Available Market IC Equipment ASMPT 1000 CAGR 2010-2016 1.5% 0 2007
Slide 14: ASMPT markets (cont'd)
ASMPT markets (cont’d) Surface Mount Technology (SMT) market development Key Growth Drivers: For SMT Improve market position in SE Asia Add Low-end tools to product portfolio Source: ASM SIPLACE Market Intelligence, February 2013 © 2009 ASM Proprietary Information Monday, April 29, 2013 14
Slide 15: Turnover distribution by products
Turnover distribution by products ASMPT 36.2% 2012 48.0% 15.8% 16.8% 2010 37.8% Back-end EQT 2011 50.5% 83.2% Lead frame 11.7% SMT EQT © 2009 ASM Proprietary Information Monday, April 29, 2013 15
Slide 16: ASMPT Products
ASMPT Products IC manufacturing - LED manufacturing - Surface Mount Technology Market Application ASMPT Relative Positioning IC manufacturing • Die bonding • Wire bonding #1 in the market • Assembly tools • Moulding Qualified by most IDM’s • Packaging tools and Subcontractors’ • Trim & Form St
Slide 17: ASMPT Chip Assembly Solution for Advanced Packages
Chip Assembly Solution for Advanced Packages ASMPT Expanding SMT equipment into non- traditional placement market Ideal for WLFO (Wafer Level Fan Out) , SiP(System-in-package), LED, Embedded PCB and flip chips Enables the combination of flip-chip and SMT operations in a single pass Supports
Slide 18: ASMPT's Competitive Advantages
ASMPT’s Competitive Advantages Back-end industry continues to move to SE Asia/China ASMPT the only large BE company fully located in SE Asia has the largest part of its operations in China/Hong Kong Cost is the most important topic in Back-end. ASMPT provides the lowest cost solutions to cus
Slide 19: What Has Been Achieved – ASMPT
What Has Been Achieved – ASMPT ASMPT has broadened its portfolio and expanded into new markets Continued its #1 position in the Assembly & Packaging market, in IC’s, LED’s and CMOS image sensors Profitable leadframe business SMT improved its market position and profitability in 2012: Cross
Slide 20: Response to Challenging Times – ASMPT
Response to Challenging Times – ASMPT Tightly control cost and expenses to cope with the short term challenges Drive for structural cost reduction Bring down overhead cost Raise productivity through innovation and automation Supplement internal manufacturing with outsourcing Strike a bet
Slide 21: Financial Overview
Financial Overview © 2009 ASM Proprietary Information
Slide 22: Key Highlights – Q1 2013
Key Highlights – Q1 2013 • Reported revenues down 25% q-o-q and 23% y-o-y • In FE sales declined with 14% q-o-q and 16% y-o-y • In BE sales declined with 29% q-o-q and 26% y-o-y • Q1 Book-to-Bill ratio of 1.3 for Front-end • Q1 Backlog of € 120m (1.5 X Q1 sales) for Front-end • EBIT margin of -1% st
Slide 23: Net Earnings Quarter - Group
Net Earnings Quarter - Group reported comparable reported reported Q1 Q1 Q4 Q1 Q1 '13/ Q1 '13/ € million 2013 2013 2012 2012 Q4' 12 Q1 '12 Front End 80.0 80.0 93.1 94.8 -14% -16% Back End 160.3 206.7 226.8 216.2 -9% -4% Net Sales 240.3 286.7 319.9 311.0 -10% -8% Gross Margin 68.6 83.1 87.8 96.6 -5%
Slide 24: Balance Sheet - Group
Balance Sheet - Group € million Dec 2012 Mar 2013 Cash and cash equivalents 291 565 Other current assets 807 208 Property, plant and equipment, net 275 61 Goodwill, net 52 12 Associates - 1,346 Other Assets 75 35 Total Assets 1,500 2,226 ST debt (incl current LT debt) 68 - Other current liabilities
Slide 25: Cash Flow - Group
Cash Flow - Group Q1 Q4 Q1 € million 2013 2012 2012 Net earnings (loss) 1,407.6 (23.8) 14.3 Depreciation 13.3 15.0 13.1 Working Capital (8.0) 41.8 19.9 PPA, restructuring & impairments (0.3) (0.9) 0.1 Associates (1,409.9) - - Others (1.0) 18.0 (7.2) Net cash from operating activities 1.7 50.1 40.2 N
Slide 26: Historical development - FE
Historical development - FE © 2009 ASM Confidential and Proprietary Information Monday, April 29, 2013 26
Slide 27: Bookings & Backlog - FE
Bookings & Backlog - FE Backlog increased 31% to €120m Book-to-Bill ratio decreased to 1.3 (Q4: 1.4) © 2009 ASM Confidential and Proprietary Information Monday, April 29, 2013 27
Slide 28: Financial Outlook
Financial Outlook Based upon the current backlog and our current visibility: Following the healthy book to bill ratio's in Q4 2012 and Q1 2013 our Front-end operations are expected to show a strong double digit sales increase in Q2 compared to Q1. We also expect a double digit increase of our order
Slide 29: Back-up slides
Back-up slides © 2009 ASM Proprietary Information
Slide 30: Selected Front-End Products
Selected Front-End Products Eagle® XP Pulsar® PECVD ALD ALD High-k leader PEALD Common Platform Epsilon® 3200 A412 Epitaxy Vertical Furnace Advanced Highest strain productivity layers © 2009 ASM Proprietary Information Monday, April 29, 2013 30
Slide 31: ASMPT: Full Range of Advanced Flip Chip Solutions
ASMPT: Full Range of Advanced Flip Chip Solutions High Pin count – High End High Pin count – Mid Range Low Pin count (TCB) (C4/TS) (C4) AD8312FC AD9312 AD9212/IS9012TS AD838FC CPU Application Processor RF chips SoC GPU Wireless chips ± 2 µm ± 10 µm ± 15 µm Placement Accuracy © 2009 ASM ASM Pacific T
Slide 32: ASMPT: Solutions for Fast Growing LED Packaging Market
ASMPT: Solutions for Fast Growing LED Packaging Market Material Die Sorting Die Bonding Curing - Leadframe & Wafer Post Curing Encapsulation / Phosphor Application Wire Bonding Lens Attach / Jetting Lens Molding Singulation Testing, Sorting and Taping Finished © 2009 ASM Proprietary Information Mond