Slide 1: ASM Q3 2024 results
ASM Q3 2024 results October 29, 2024 ASM proprietary information | 1
Slide 2: 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 results to differ materially from those in the forward-
Slide 3: Contents
Contents 1 Investment highlights 2 Q3 2024 results 3 Business environment, strategy, and targets 4 Annex: detailed financials October 29, 2024 ASM proprietary information | 3
Slide 4: Investment highlights
Investment highlights October 29, 2024 ASM proprietary information | 4
Slide 5: Investment highlights
Investment highlights Strong long-term prospects • ASM is focused on enabling deposition technologies, with key strengths in innovation • Leader in the ALD market, which is expected to grow by a CAGR of 10%-14% from 2022 to 2027 • Expanding our position in the Si Epi market (CAGR of 10%-15% from 202
Slide 6: Q3 2024 results
Q3 2024 results October 29, 2024 ASM proprietary information | 6
Slide 7: Financial highlights
Financial highlights €815m €779m 49.4% New orders Revenue Adjusted gross margin(1) (+30% yoy at constant currencies) (+26% yoy at constant currencies) (48.9% in Q3 2023) €220m 28.2% €134m Adjusted operating profit(1) Adjusted operating margin(1) Adjusted net earnings(1) (€157m in Q3 2023) (25.3% in
Slide 8: Q3 2024 highlights
Q3 2024 highlights Orders and revenue • New orders of €815m in Q3 2024 up 30% at constant currencies, mainly driven by strong demand for gate-all-around (GAA) and high-bandwidth memory (HBM), including some pull-ins from Q4. • Revenue of €779m up 26% at constant currencies from Q3 of last year and a
Slide 9: New orders +30% yoy at cc driven by GAA & HBM
New orders +30% yoy at cc driven by GAA & HBM Orders and backlog (€m) Q3 2024 new orders came in at €815 million, 2,025 1.1 1.2 +30% yoy as reported and constant currencies (cc). 1.0 1.0 New orders were mainly driven by strong demand for 1.0 1,576 1,559 gate-all-around in advanced logic/foundry and
Slide 10: Revenue +26% yoy at cc, gross margin at 49.4%
Revenue +26% yoy at cc, gross margin at 49.4% Revenue Adjusted gross profit Revenue (€m) (€m) Q3 2024 revenue increased to €779 million, +26% yoy at cc (25% as reported) and increased 11% qoq (+10% as reported). 900 53.0% 779 800 49.8% 49.4% Revenue was driven by memory, followed by 706 48.9% 800 70
Slide 11: SG&A decreases; continued focus on R&D
SG&A decreases; continued focus on R&D Adjusted SG&A Adjusted R&D Adjusted SG&A (€m) (€m) Adjusted SG&A remained relatively flat yoy and qoq (excluding a one-off tax charge of €8.4m relating to accelerating vesting of previously granted performance 12.3% 12.4% shares) due to continued cost focus. 14
Slide 12: OM at 28.2% thanks to higher revenue and a one-off gain
OM at 28.2% thanks to higher revenue and a one-off gain Adjusted operating result Adjusted finance income (€m) Adjusted operating result (€m) The year-on-year improvement is primarily driven by higher revenue/gross profit and a positive one- Q3 23 Q2 24 Q3 24 28.2% off relating to the sale of a buil
Slide 13: Adjusted net earnings down due to FX loss
Adjusted net earnings down due to FX loss Adjusted net earnings Income taxes Income taxes in Q3 2024 amounted to an expense of (€m) €41 million, relatively stable compared to Q2 2024 and up from €22 million in Q3 2023. Q3 23 Q2 24 Q3 24 Net earnings Net earnings 130 159 128 Adjusted net earnings in
Slide 14: Solid cash of €747m and robust FCF
Solid cash of €747m and robust FCF Cash Free cash flow Cash (€m) (€m) Cash increased to €747 million at the end of September 2024, up from €637 million at the end of June 2024. 747 Free cash flow (FCF) 637 242 FCF increased to €242 million, up from €103 million in 547 Q2 24, thanks to higher profita
Slide 15: FY24-27 capex guidance is €100-180 m
FY24-27 capex guidance is €100-180 m Capital expenditures Working Capital Working capital (€m) (€m) Net working capital decreased to €412 million, mainly explained by higher levels of contract liabilities and accrued expenses and other payables, partly offset by 680 60 64 80 48 higher accounts recei
Slide 16: Financial outlook
Financial outlook As included in the Q3 2024 press release published on October 29, 2024: On a currency-comparable level, we project revenue of €770-810 million for Q4 2024. At constant currencies and taking into account the guidance for Q4, we project revenue in the second half of 2024 to increase
Slide 17: Business environment, strategy, and targets
Business environment, strategy, and targets October 29, 2024 ASM proprietary information | 17
Slide 18: Digital transformation drives structural growth
Digital transformation drives structural growth Megatrends driving the semiconductor market Semiconductor revenue (US$ billion) Source: TechInsights, October 2024 October 29, 2024 ASM proprietary information | 18
Slide 19: AI to drive increased capacity requirements
AI to drive increased capacity requirements AI semiconductor sales outlook* (US$b) What it means for ASM: 200 • Increased capacity • More datacenters with higher content 160 servers GPU, ASIC, communications, HB DRAM • More silicon content edge device (ex. 120 phone GPU, NPU, Auto ADAS systems) Mo
Slide 20: WFE spending expected to grow in 2024-2027
WFE spending expected to grow in 2024-2027 WFE market forecast WFE growth driven by secular trends of (US$b) AI, 5G, EV, edge computing, etc. • Longer-term trend supported by multi- 140 year investments • Further scaling, 3D transitions and GAA 120 driving investments in advanced CMOS • In recent ye
Slide 21: WFE by application & ASM customer concentration
WFE by application & ASM customer concentration WFE sales by ASM FY23 revenue by WFE market by application application customer Logic/foundry to account for more than half of total (US$b) concentration WFE sales in 2024. in % ASM FY2023 revenue by customer 120 concentration The 5 largest customers a
Slide 22: ASM is focused on deposition equipment
ASM is focused on deposition equipment WFE market segments in 2023 (US$b) • ASM’s focus is on deposition 9 • We are market leader in ALD (mid 50s% share). ALD accounts for more than half 13 30 of our total equipment revenue • Expanding our position in the Si Epi market and entered the high-growth Si
Slide 23: Growth through Innovation - strategy unchanged
Growth through Innovation - strategy unchanged Our purpose is to improve people’s lives through advancing technologies that unlock new potential Drive continued strong financial Maintain leading ALD share in performance logic/foundry, expand in memory Accelerating progress in Strategic Increase Si E
Slide 24: ALD market to increase to $4.2-5.0b by 2027
ALD market to increase to $4.2-5.0b by 2027 Single-wafer ALD market outlook Logic/foundry (US$b) • GAA transition • High-k gate & Vt tuning >55% • Sacrificial layers, HM, ESL >55% share • Metals share • Selective ALD 5 US$5.0bn >55% • High aspect ratio TSV share US$4.2bn 4 US$3.7bn Memory 3 US$2.6bn
Slide 25: Si epi market to reach $2.3-2.9b by 2027
Si epi market to reach $2.3-2.9b by 2027 Si epitaxy market outlook Leading-edge (US$b) • Continued growth in leading-edge driven by GAA and high-performance >30% DRAM >30% share Non-leading-edge share target 3 16% target • Wafer, power, analog share US$2.9bn • Continued growth in wafer, power, US$2b
Slide 26: Increased ALD and Epi SAM with move to GAA
Increased ALD and Epi SAM with move to GAA Increases served available market for ASM by ~ US$400 million per 100k wafer starts per month (WSPM) Single-wafer ALD • High-k gate & Vt tuning • Sacrificial layers, HM, ESL • Metals • Selective ALD • High aspect ratio TSV Epitaxy • GAA nanosheet stack • So
Slide 27: Logic GAA creates new ALD/Epi opportunities
Logic GAA creates new ALD/Epi opportunities New interconnect metals: MIM • Molybdenum replacing CVD Tungsten and PVD Copper Selective deposition processes for performance and Yield: Channel Epi Source/Drain Epi • DoD and MoD M1 Increasing embedded M0 functionality: a) additional memory with Epi Si M
Slide 28: ASM investing in capacity ahead of needs
ASM investing in capacity ahead of needs Indexed manufacturing capacity (2020=100) 400 370 330 330 300 2023 demand 2020 200 180 demand 170 100 100 0 2020 2021 2022 2023 2024 2025 Capacity in place for targeted growth through 2027 following Singapore second floor expansion, completed in 2023, and Kor
Slide 29: Target net zero by 2035
Target net zero by 2035 SBTi verified ASM Net Zero 2035 target, announced in August 2023 ASM launched its Climate Transition Plan (CTP) in March 2024 Target 100% renewable electricity (RE) by 2024 • Use of RE increased from 73% to 88% in 2023 Scope 3 use of our products is the majority of our GHG fo
Slide 30: Sustainability fully integrated into product development
Sustainability fully integrated into product development Our vision is to develop differentiated & eco-efficient tools & processes, while maximizing energy saving through product innovation. Our aim is to lower energy/precursor usage, emissions and cost per wafer October 29, 2024 ASM proprietary inf
Slide 31: FY25 & FY27 financial targets
FY25 & FY27 financial targets FY2022(1) FY2023(1) FY2025 FY2027 Revenue €2.4 billion €2.6 billion €3.2 - €3.6 billion* €4.0 - €5.0 billion 19 - 21% CAGR (FY20- 11 - 16% CAGR (FY22- Revenue growth 33% yoy(2) 9% yoy(2) FY25)* FY27) Gross margin % 47.5% 49.3% 46 - 50% (FY21-FY25) 46 - 50% (FY25-FY27) H
Slide 32: People are at the heart of our success
People are at the heart of our success Headcount growth Retention 5,000 4,542 4,258 All employees 4,000 3,312 2020 89.3% 3,000 2,583 2021 87.5% 2,000 1,453 1,146 730 2022 88.1% 1,000 Headcount 515 New hires 2023 90.8% 0 2020 2021 2022 2023 Culture Diversity 2023 engagement study Gender Nationalities
Slide 33: Annex: detailed financials
Annex: detailed financials October 29, 2024 ASM proprietary information | 33
Slide 34: (Estimated) amortization and earn-out expenses
(Estimated) amortization and earn-out expenses € million Q3 23A Q2 24A Q3 24A FY 24E FY 25E FY 26E FY 27E Cost of sales (5.2) - - - - - - Net research and development expenses (3.5) (3.5) (3.5) (14.0) (14.0) (14.0) (14.0) Selling, general and administrative expenses (1.2) (1.2) (1.2) (4.9) (4.9) (4.
Slide 35: Adjusted and reported P&L reconciliation
Adjusted and reported P&L reconciliation € million Q2 2024 reported Δ Q2 2024 adjusted Q3 2024 reported Δ Q3 2024 adjusted Revenue 706 - 706 779 - 779 Gross profit 352 - 352 384 - 384 Gross margin 49.8% 49.8% 49.4% 49.4% SG&A (89) 1 (87) (77) 1 (76) SG&A as a % of revenue 12.6% 12.4% 9.9% 9.8% Net R
Slide 36: Income statement (reported)
Income statement (reported) € million Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 New orders 627 678 698 755 815 Backlog 1,404 1,434 1,516 1,576 1,559 Book-to-bill ratio 1.0 1.1 1.1 1.1 1.0 Revenue 622 633 639 706 779 Cost of sales (323) (334) (301) (354) (394) Gross profit 299 299 338 352 384 Other inc
Slide 37: Balance sheet
Balance sheet € million Sep. 23 Dec. 23 Mar. 24 Jun. 24 Sep. 24 PP&E (incl. RoU assets) 420 420 435 449 458 Evaluation tools at customers 71 80 89 91 107 Goodwill 321 320 321 321 320 Other intangible assets 696 706 738 770 789 Investments in associates 886 862 880 892 859 Other non-current assets 26
Slide 38: Cash flow statement
Cash flow statement € million Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net earnings from operations 130 91 173 159 128 Adjustments to reconcile net earnings to net cash from operating 27 16 22 18 60 activities Depreciation, amortization and impairments 44 52 42 44 51 Income tax paid (28) (23) (21) (2
Slide 39: Gross and net R&D expenses (reported)
Gross and net R&D expenses (reported) € million Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Gross R&D expenses 102 111 109 118 118 Capitalization of development expenses (39) (42) (44) (45) (38) Amortization of capitalized development expenses 11 11 12 13 19 Impairment capitalized development expenses -
Slide 40: Working capital: historical development
Working capital: historical development (€m) 900 120 800 100 700 600 80 500 60 400 300 40 200 20 100 0 0 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 2019 2020 2021 2022 2023 2024 Working capital (lhs) Quarterly sales (lhs) Days of working capital (rhs) Numbers based on
Slide 41: Orders and backlog: historical development
Orders and backlog: historical development (€m) 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Backlog Orders Numbers based on reported financials Q4 2019 exclude the impact of patent litigation and arbitration
Slide 42: Revenue and operating result: historical development
Revenue and operating result: historical development (€m) 3,000 800 700 2,500 600 2,000 500 1,500 400 300 1,000 200 500 100 - - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue (lhs) Operating result (rhs) 2019 numbers exclude settlement gains of €159 m 2022 operating margin exclu
Slide 43: Cash returned to shareholders
Cash returned to shareholders Dividend per share Cumulative cash returned to market (€ paid over) (€m) 3,000 2,500 2,000 3.00 2.75 1,500 2.50 2.50 1.50 2.00 1,000 1.00 0.70 0.70 0.80 500 0.50 0.60 1.50 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 44: For more information visit asm.com
For more information visit asm.com October 29, 2024 ASM proprietary information | 44