Asm International N.v. · EURONEXT:ASM
Asm International — Investor Presentation (April 2008)
39 slides from Asm International's investor presentation, Apr 30, 2008
Slide 1: Roadmap to Front-end Peer Group Profitability
Exhibit 99.3 Roadmap 28 © Proprietary 2008 AprilASM 2008 toInformation Front-end Peer Group Profitability
Slide 2: Safe Harbor
Safe All differ industry other time statements © Proprietary April 2 2008 matters Harbour toissues, 2008 materially time ASM cycles to discussed Information with commercial reflect Statements specifically, from thefuture U.S. in those this and Securities developments in currency document, economic t
Slide 3: Agenda
Current Introduction Agenda Roadmap Concluding FE Appendix Peer © Proprietary April 3 2008 and selection 2008 BE ASM situation toconvergence Information remarks peer criteria FE profitability FE in 2009
Slide 4: ASM Today: Focus on Front-end
ASM 53.1% 100.0% Front-end FTE: Focus Note: © 20082,116 International FE Total ofASM Today the ASM activities employment FTE: Roadmap Proprietary PT9,989 ASM Presentation asInformation Pacific of 31 December Technology April 2008 2007. / Back-end 4 activities
Slide 5: Past three years: built a strong focus on front-end
Built Past Regional Broad No Going Introduction Increase Focus Global Divest Three 1. 2. 3. Change © Proprietary April 5 Outgrow Expand Improve 2008 clear excellent 2008 clear on portfolio Forward product organisation ASM in market communicated organisation technology driving EBIT focus cash Informa
Slide 6: Agenda
Current Introduction Agenda Roadmap Concluding FE Appendix Peer © Proprietary April 6 2008 and selection 2008 BE ASM situation toconvergence Information remarks peer criteria FE profitability FE in 2009
Slide 7: Leading technology and strong IP portfolio
Leading •Strong Top Adjusted 1 5 4th 2 3 4 10 best Technology technology SemiCap ASML IP Adjusted semiconductor Portfolio… Holding KLA-Tencor Applied ASM Equipment with 2006 and 127 Materialsleading 297 U.S. capital 1.48 Manufacturers 2.81 369Pipeline patent equipment 1.16 2.45 1.74 2.881.92 Pipelin
Slide 8: Leading market positions in growing segments
…Atomic Leading #1 Strong ASM’s Worldwide 1. 2. ASM Market 2007E •(Hafnium 2007 US © 40% Asia 17% Japan Proprietary 8 Vertical Transistor Now Growing Epitaxy Plasma Of RTP VLSI 2008 with to Europe which ASM #3 FE To supplier 2012E potential Front-end Segment ASM Excellent research Research market in
Slide 9: Major improvements made since 2005
We Operational 2000-2005 Focus Cash Repositioning Investments Revenue Best-in-class Positive Commitment EBIT(2) €m (1.1%) 409.4 14.4% (4) (2.6%) (9) 0.3%€m Have outflow (16.0%) EBIT(2) (43) (45) (32) on 357.9 10.1% 2007 Revenue growth Profitability Made Major Improvements… inproduct (15.8%) (8.9%) o
Slide 10: 2007 results and targets for Front-end
…and Target Front- 2007 Excludes Includes EBITDA Result Gross Reduced •+1.5% © Proprietary April 10 Increase Reduce Positive Net Gross Customer Used Operating Not 2008 •earnings achieved 2008 margin Achieved •No ASM contributed margin ASM Gross discontinued working operating €17m the EBITDA net oper
Slide 11: Further improvement required to reach peer profitability
However, CY 25.0% 9.6% 15.0% 16.7% 20.0% 5.0% 5.2% 10.0% (5.0%) 0.0% Further We Source: © 2008 are 2007 9.4% 3.4% 23.5% (3.3%) confident improvement ASM Company EBIT Still Avg. 2.7% Proprietary ASM Less Margin peer achieving reports. Profitable FE EBIT required Varian Information margin: 2009 than N
Slide 12: Front-end peer selection criteria
Front-end €m 808 246 84 Not Peers Scale Product Source: 1. © Order 2008 183 Key 215 277 Similar and selected 1,308 ASM Financials Overlap Financials ofMarket Peer importance Very 1,074 Proprietary on Selection and Similar 4Leadership per Scale criteria 183 Product FactSet ranked 147 Market Informati
Slide 13: Agenda
Current Introduction Agenda Roadmap Concluding FE Appendix Peer © Proprietary April 13 2008 and selection 2008 BE ASM situation toconvergence Information remarks peer criteria FE profitability FE in 2009
Slide 14: Key value creation drivers
Key 1. 2. 3. 4. We © Proprietary April 14 Drive Expand Improve Change 2008 are FE 2008 committed ASM Value revenue operating organisational cash Information Creation conversion growth tomargin create Drivers structure shareholder and culture value
Slide 15: Key financial improvements to 2009
Key €m Outgrow Gross Expand Operating Total We © Proprietary April 15 2008 2007 commit Financial Net 2008 margin ASM Operating 2009 the Capex margin Information toRevenue % Improvements a 2009 32.2% of% expenses €30-35m 3.4% FE 451 37operating 11 440 – 130 39% for by – –13% 2008 114 2009 480margin –
Slide 16: EBIT bridge 2007A to 2009E
2009 EBIT (1) 80 €m 62BIT 60 55 40 16 E 0 We Note: 1. © EBIT Bridge Based 2008 13% +12 +26 48 +1 are onMargin 2007A 2007A Divestiture 11% 20 confident (1) ASM target RevenueRange – 2009E Proprietary to of revenue reach RTP of Gross and 11%-13% at Mid Information our range Margin NP 2009 of Point pro
Slide 17: Challenging wafer fab equipment market environment
1. Drive Challenging Wafer $bn 40 35 30 10.0% 25 20 15 (17.4% 10 5 © 2007 9.8% 10% 5% 0% (5%) (10%) 2007 (20%) WFE –($bn) Gartner Source: 2008 Fab 2009 )(15%) 2008 –Revenue 15% ASM2010 Equipment Market growth predicts Gartner 2009 growth GrowthGrowth Environment (9.3%) Market 4.6% Proprietary 14 mar
Slide 18: Drive market growth: outgrow the market
1. Drive Market We Aggressive ASM Growth Significant By Penetration Strong © Proprietary April 18 2008 strengthening Will expect 2008 has will positions technology expected ASM applies Outgrow Revenue established leverage aopportunity Information growth into revenue to Korea in to Global Growth the
Slide 19: Global sales organization and VP appointment
Sales 2. VP 3 19 1. Appointment Change Global Change Brings Drives Will Hire Organization External Focus Accelerate Key © Proprietary April Drive 2008 of Sales Initiatives initiatives drive and 2008 and & organization customer ASM sales Revenue candidate appoint higher focus Penetration Service Info
Slide 20: Expand operating margin: key elements
2. Expand Key €m 2007A Gross Operating EBIT © 11%—13% 3.4% Proprietary April 20 2008 Targets Elements 2008 Margin Margin 2009E ASM130 Operating Information 145 114-125 163-187 Margin Expenses Improvements 28.7% 26% 32.2% Reductions 37-39%
Slide 21: Appointment of global VP Operations and FEMS
2.andidate Appointment FEMS Responsibilities Lean Make Global Working Lead Worldwide Environmental, •C Current Managed Increased VP © Proprietary April 21 Expand 2008 Global manufacturing time 2008 / capacity sourcing Buy ASM GM capital move VF reduction Profile Operating Operations inventory qualit
Slide 22: Gross margin: FEMS history and breakdown
2. Expand Gross History Established Typically COGS Services Generics FEMS © Proprietary April 22 2008 2008 Margin is reduced Breakdown ASM of(20% our Final Generics Operating FEMS Information with hub –)and materials FEMS strong for (FE Before Other and low Margin Manufacturing Other support costs A
Slide 23: Gross margin: generics phase 1
Phase •Generics 2005: Results 2006: 2007: 2008: 2009: 2. Gross •2 23Fabrication Local Subassembly Expand Start 1Margin sourcing Design Engagement – in Further FEMS © Proprietary April Timing: Scope: 2008 Q2/Q3 2008 and Operating Eagle HVM of expectedOther –at for certain FEMS opportunity ASM Generic
Slide 24: Gross margin: merge phase and global sourcing
Merge Phase Final •1 24 – 2. Gross 32Margin Scope:in Accelerate Stronger One Overhead Cost Currency Roll Additional Global © Proprietary April Two Timing: Expand 2008 single out Merge Transit Assembly Scope Modules Start reductions 2008 categories Sourcing sourcing ASM of in –to bargainingin indepen
Slide 25: Gross margin: product standardization
2.Standardization Gross Single 3 •©Move Expand AL-CVD/Margin ProcessWafer A400/412 Divest Polygon Eagle 2009 Product Platform Dragon Note: 2008 all The Operating single Polygon, ASM Eagle/Dragon AlreadyPlatform – Epsilon, Technology SW SW Levitor Platform wafer used consolidation LP-CVD Batch 2010 M
Slide 26: Operating expenses reduction
2.Strongly Operating Opex 1 26 Expand Results 2 •budget © Efficiency Opex of Proprietary April 20082008 Expenses Operating reduction Streamline RTP Standardization Consolidation Central 3 approach Global of Improvement and and Margin SG&A NP disciplined allocation ASM of enabledDutch through will no
Slide 27: Summary of operating margin initiatives
2. Summary 1 Impact 2 Expand FEMS Key Operating Global Initiatives Continuation Margin • Material Cost-reduction expected by 2009 €15 – 20m Platform 3 •4 & 5 All 6 EFEMsingle Operations p.m. Dutch 8 Global Office Key © Proprietary April 27 2008 Move Divest initiatives 2008 ASM •Sourcing Consolidatio
Slide 28: Preliminary Q1 2008 results
2. Expand Results Preliminary €m Revenue Operating % Margin Q1 Comments 28% Gross EBIT Quarterly Clear Initiatives The Q4 © Proprietary April 28 2008 of2007 revenue Q1 numbers y-o-y Revenue 2008 commitment 0.2 positive margin 2008 % Q1 ASM gross 83.9 4.3 net expenses introduced 34.0% 0.3% Operating
Slide 29: Improve cash conversion
3. Improve Focus 1 End 2 29 Net Total © on ofnetWorking Proprietary April 2008 capex 2008Working 2009 ASMCash Capital capex not Conversion capital relativeCapital Information for exceed 2008 reduction toefficiency+ and working Capex ofcapital not towill depreciation 4% 2009 revenue be inexceed in 20
Slide 30: Change organisational structure and culture
4.Sales •Culture CFO businesses CEO GM CTO Europe account PE-VF RTP CP organisational Asia RM initiatives RS&S Old © Proprietary April 30Regionally Change 2008 Organisation structure RM GM TP ASM 2008 RS&S Regional organisation + America ASM From •management” RM GM EPI Operations are Organisational
Slide 31: New global organisation: key benefits
4.VP Culture ??Sales ??Enables CFO ??Ownership ??Streamlining ??Focus VP Global allocation ??Product PECVD •EPI New © Proprietary April 31 Focus Enables Establishes Supported Change 2008 •&VP Global Organisation global •2008 TP VP VP ASM of organisation …on & FE clear VF of strategy, Global true Org
Slide 32: Agenda
Current Introduction Agenda Roadmap Concluding FE Appendix Peer © Proprietary April 32 2008 and selection 2008 BE ASM situation toconvergence Information remarks peer criteria FE profitability FE in 2009
Slide 33: Concluding remarks
Concluding •Peer 3 structure Change © Proprietary April 33Achieve Create Continue •2008 Improve Group 2008 ASM in Front-end and operating focus to Information Profitability Remarks cash culture outgrow towards conversion value margin theby by stronger market 2009 at ••Capture top Unlock & More in co
Slide 34: Agenda
Current Introduction Agenda Roadmap Concluding FE Appendix Peer © Proprietary April 34 2008 and selection 2008 BE ASM situation toconvergence Information remarks peer criteria FE profitability FE in 2009
Slide 35: Why 3D integration?
Convergence Why Form Increases Reduction speed Performance 3D This © Proprietary April 35 2008 integration technologies requires 3D 2008 Factor and ASM Integration? functionality reduces ofInformation interconnect integrated ofisFE will less power and enable expensive per BE FE consumption length un
Slide 36: The convergence of front-end and back-end: examples
Convergence The Toshiba: Backed years, Samsung: Samsung wafer-interconnect ASM http://www.toshiba.com/taec/; http://www.eetasia.com/ART_8800462235_480300_NT_abf1ee89.HTM, © Proprietary April 36 2008 (R)evolution 2008 International inASM by the CIS, Electronics NAND Toshiba’s Information chip of Apri
Slide 37: Building ASM convergence
Convergence Building ASM Both Front-end Interface ALCVD Fab Die Back-end Wafer Low Packaging © Proprietary April 37 2008 level equipment cost groups 2008 isand to level ASM Best the focus and synergy chemistry process manufacturing equipment equipment die market Information only BEOL have Structured
Slide 38: Agenda
Current Introduction Agenda Roadmap Concluding FE Appendix Peer © Proprietary April 38 2008 and selection 2008 BE ASM situation toconvergence Information remarks peer criteria FE profitability FE in 2009
Slide 39: Front-end peer selection criteria
Front-end Midsize Ultratech Criteria © 2008 ASM Scale Product PeerProprietary Overlap Selection MarketLeadership Product Criteria Information Diversification April 2008 39Criteria
ASM International — Investor Presentation (April 2008) on 6ix