Asm International N.v. · EURONEXT:ASM
Asm International — Q1 2018 Earnings Presentation
26 slides from Asm International's earnings presentation, Apr 19, 2018
Slide 1: Investor Presentation Q1 2018 Results
INVESTOR PRESENTATION Q1 2018 RESULTS April 19, October 26,2018 2016 ASM proprietary information © 2018 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 › Strong growth prospects l ALD market expected to grow by double digits, ASMI has leadership position in ALD l ASMI sales grew at a CAGR of 14% since 2010 compared to 6%* for the WFE market l Additional growth opportunities in Epitaxy and PECVD l Order intake in Q1 remaine
Slide 4: 2018 Q1 Key Results
2018 Q1 KEY RESULTS (restated) (restated) (restated) Q1 2017 Q4 2017 Q1 2018 2017 New orders 204.2 203.2 206.5 773.7 Net sales 156.8 181.5 159.0 730.9 Gross profit margin % 43.0% 39.6% 37.8% 41.3% Operating results 19.4 26.0 11.8 108.9 Normalized result from investments 35.4 14.0 16.3 112.4 Amortiza
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET Equipment market segments (US$) › ASM focuses on deposition equipment › ASM is a market leader in ALD Test Assembly 4.4bn Lithography 10.5bn › Positions in Epitaxy, PECVD 4.7bn Other Wafer Processes and Vertical Furnaces 4.1bn Process Diagnostics 6.5bn Etch and Clean 1
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › WFE increased by 32% in 2017 according to Gartner Wafer Fab Equipment Spending › Investments in leading edge US$bn equipment remain the key 60 +32.4% -3.0% driver 50 +7.7% +11.4% -17.4% -2.0% 40 -1.0% 30 20 10 0 2015 2016 2017 2018 2019 2020 2021 Gartner, December 2017 Gar
Slide 7: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION US$bn CAGR ‘16-21 350 Servers +13% 300 Industrial Electronics +10% 250 Automotive +10% Solid State Drives +20% 200 Smartphone Premium +7% 150 Smartphone Basic +6% Tablet -1% 100 PC / Tablet Hybrid +18% 50 PC Ultramobile Clamshell +7
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn 60 Share of 14nm, 10nm and 7nm and below of total Equipment spending increasing in 2017-2021 50 7nm and below 40 10nm 14nm 30 22nm 32nm 20 45nm 65nm and above 10 0 2015 2016 2017 2018 2019 2020 2021 Gartner, December 2017 › Advanced nodes: market segments w
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 fo
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 port
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION ASMI revenue › Engaged with all of the top-10 semiconductor capital 100% equipment spenders 75% 50% 25% 0% 2012 2013 2014 2015 2016 2017 Top 3 Nr 4-10 Rest Growing share of wallet with top clients April 19, 2018 | ASM proprietary information | 11
Slide 12: Highlights
HIGHLIGHTS › Solid growth expected for the ALD market l Single wafer ALD market showed a clear improvement in 2017 l 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 l Epitaxy and PECVD showed strong growth in 2017
Slide 13: Stake in ASMPT Reduced to 25% Nov '17
STAKE IN ASMPT REDUCED TO 25% NOV ‘17 › On Nov 2, 2017, ASMI sold a 9% stake in ASMPT for proceeds of approx. €445 million l 37 million shares in ASMPT were placed at a price of HK$111 per share through an accelerated bookbuild offering l ASMI intends to distribute the proceeds through a new €250
Slide 14: ASMPT Results
ASMPT RESULTS Q1 2017 Q4 2017 Q1 2018 Sales ASMPT (HK$ million) 3,761 4,227 4,346 Net profit ASMPT (€ million, 100% based) 89 49 65 Normalized result from investments (including ASMI’s share of ASMPT net profit) 35.4 14.0 16.3 Amortization intangible assets resulting from the sale of ASMPT stake in
Slide 15: Financial Overview
FINANCIAL OVERVIEW April 19, 2018 | ASM proprietary information | 15
Slide 16: Q1 2018 Highlights
Q1 2018 HIGHLIGHTS › Revenues down 12% q-o-q and up 1% y-o-y › Bookings up 2% q-o-q and up 1% y-o-y. Book-to-bill ratio of 1.3 › Q1 backlog of €218m up 27% q-o-q › Gross margin of 37.8% in Q1 was for 2%-points negatively impacted by initial costs related to new product introductions (vs. 5% and 3% p
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q2, on a currency comparable level, we expect sales of €200-230 million, and we expect an order intake of €160-200 million. The broad ranges for Q2 reflect some uncertainty around the exact timing of individual tools. F
Slide 18: Net Earnings
NET EARNINGS (restated) (restated) Q1 2018 vs Q1 2018 vs EUR million Q1 2017 Q4 2017 Q1 2018 Q4 2017 Q1 2017 New orders 204.2 203.2 206.5 2% 1% Backlog 194.3 171.2 217.9 27% 12% Book-to-bill 1.3 1.1 1.3 Net sales 156.8 181.5 159.0 (12)% 1% Gross profit 67.4 71.8 60.2 (11.6) (7.2) Gross profit margin
Slide 19: R&D Expenditure
R&D EXPENDITURE EUR million Q1 2017 Q4 2017 Q1 2018 R&D expenditure (27.6) (29.5) (28.4) Capitalized development expenditure 6.7 14.7 10.1 Amortization capitalized development expenditure (3.6) (2.9) (2.8) Impairment capitalized development expenditure - (3.0) - R&D expenses (24.5) (20.7) (21.0) Apr
Slide 20: Cash Flow
CASH FLOW EUR million Q1 2017 Q1 2018 Normalized net earnings 35.9 15.0 Depreciation, amortization and impairments 11.9 11.5 Result from investments (29.7) (12.5) Other adjustments 1.0 6.1 Change in working capital 14.3 13.4 Net cash from operating activities 33.4 33.5 Capital expenditure (6.4) (8.3
Slide 21: Balance Sheet
BALANCE SHEET (audited) EUR million Dec 31, 2017 Mar 31, 2018 Cash and cash equivalents 836 741 Accounts receivable 163 128 Inventories 143 152 Other current assets 20 14 Investments and associates 731 726 Property, plant and equipment 107 108 Goodwill and other intangible assets 125 131 Other non-c
Slide 22: Working Capital
WORKING CAPITAL EUR million Days 250 140 200 120 150 100 100 80 50 60 0 40 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 13 14 15 16 17 18 13 14 15 16 17 18 Working capital Quarterly sales Days of working capital Numbers based on reported financ
Slide 23: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 800 160 250 700 140 200 600 120 500 100 150 400 80 100 300 60 50 200 40 100 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0 0 13 14 15 16 17 18 2010 2011 2012 2013 2014 2015 2016 2017 Net Sales (lhs) EBIT (rhs) Bookings Backlog Num
Slide 24: Breakdown Sales
BREAKDOWN SALES (restated) (restated) (restated) (restated) (restated) (restated) 17Q1 17Q2 17Q3 17Q4 FY17 18Q1 Equipment sales 119.4 172.5 136.9 138.5 567.3 120.3 Spares & services sales 37.4 42.0 41.2 43.0 163.6 38.6 Net sales 156.8 214.5 178.1 181.5 730.9 159.0 April 19, 2018 | ASM proprietary in
Slide 25: Restated Quarters 2017
RESTATED QUARTERS 2017 (restated) (restated) (restated) (restated) (restated) 17Q1 17Q2 17Q3 17Q4 FY17 18Q1 New orders 204.2 205.9 160.4 203.2 773.7 206.5 Net sales 156.8 214.5 178.1 181.5 730.9 159.0 Gross profit margin % 43.0% 43.4% 38.8% 39.6% 41.3% 37.8% Operating results 19.4 42.7 20.8 26.0 108
Slide 26: April 19, 2018 | ASM proprietary information | 26
April 19, 2018 | ASM proprietary information | 26