Asm International N.v. · EURONEXT:ASM
Asm International — Q2 2015 Earnings Presentation
24 slides from Asm International's earnings presentation, Jul 30, 2015
Slide 1: Investor Presentation Q2 2015 Results
INVESTOR PRESENTATION Q2 2015 RESULTS April July24,30, 2015 2015 ASM proprietary information © 2015 ASM
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: 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 co
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 by 21% in 2014 and by 21% year-on-year in the first half of 2015 Outperforming the o
Slide 4: Q2 2015 Key Results
Q2 2015 KEY RESULTS EUR million Q2 2014 Q1 2015 Q2 2015 New orders 119.5 158.3 166.6 Net sales 148.4 162.0 201.0 Gross profit margin % 42.3% 43.3% 45.1% Operating results 27.4 28.5 42.1 Result from investments 15.8 13.4 20.7 Amortization intangible assets resulting from the (5.5) (6.6) (6.8) sale of
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments (US$) equipment › ASM has leadership positions in Assembly Test 4.0bn Lithography 3.9bn 9.6bn ALD and Plasma-Enhanced Other Wafer Processes ALD (PEALD) 2.5bn › Positions in Epitaxy, PECVD Etch and and Vertical Furna
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner forecasts Wafer Fab Wafer Fab Equipment spending Equipment spending to be flat in 2015, followed by a 4% 45 decrease in 2016 40 +9.0% +3.3% -0.2% -3.7% +9.4% › Investment in leading edge +16.3% 35 -7.7% 30 equipment remains the key 25 20 driver 15 10 5 0 2013 2014
Slide 7: Semiconductor Market
SEMICONDUCTOR MARKET SEMICONDUCTOR SALES BY KEY APPLICATION US$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
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn Share of 14m, 10nm and 7nm of total Equipment Wafer Fab Equipment by Node spending increasing in 2016-2018 40.0 35.0 30.0 25.0 20.0 7 nm and below 10 nm 15.0 14 nm 10.0 22 nm 32 nm 5.0 45 nm 65nm & above 0.0 2013 2014 2015 2016 2017 2018 2019 Gartner, Jul.
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, even on high aspect ratio structures Device scaling, new materials and 3D architectures increase demand for ALD
Slide 10: Estimated ALD Market Growth
ESTIMATED ALD MARKET GROWTH ALD market single wafer / minibatch › ALD market approximately doubling over the next US$m three to four years 1,400 1,200 › Key growth areas are patterning layers, high-k/ 1,000 metal gate and other 800 applications 600 400 200 0 2014 2018 Source: Gartner, VLSI, ASMI, Ju
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
Slide 12: Customer Concentration
CUSTOMER CONCENTRATION › Engaged with all top capex ASMI revenue 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 July 30, 2015 | ASM
Slide 13: Highlights
HIGHLIGHTS › Strong momentum ALD and PEALD ALD and PEALD further established as mainstream enabling technologies Bookings and revenue driven by combined ALD and PEALD business › Solid results in Q2 Revenue increased to a record high level in Q2, up 24% from Q1 Gross margin increased to 45.1%
Slide 14: ASMPT Results
ASMPT RESULTS Q2 2014 Q1 2015 Q2 2015 Sales ASMPT (HK$m) 3,434 3,056 3,752 Net profit ASMPT (EURm, 100% based) 40 34 53 Result from investments (including ASMI’s 40% share of ASMPT net profit) 15.8 13.4 20.7 Amortization intangible assets resulting from the sale of the 12% stake of ASMPT (5.5) (6.6)
Slide 15: Financial Overview
FINANCIAL OVERVIEW July 30, 2015 | ASM proprietary information | 15
Slide 16: Q2 2015 Highlights
Q2 2015 HIGHLIGHTS › Revenues up 24% q-o-q and up 35% y-o-y › Bookings up 5% q-o-q and up 39% y-o-y › Book-to-bill ratio of 0.8 › Q2 backlog of EUR 149m, down from EUR 190m at the end of Q1 2015 › EBIT margin of 21.0% compared to 17.6% in Q1 2015 and 18.5% in Q2 2014 › Cash flow from operations of E
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q3 we expect sales between €155 and €170 million, on a currency comparable level. The Q3 order intake, on a currency comparable level, is expected to be in the range of €130-150 million. Beyond Q3 the visibility on timi
Slide 18: Net Earnings
NET EARNINGS Q2 2015 vs Q2 2015 vs EUR million Q2 2014 Q1 2015 Q2 2015 Q1 2015 Q2 2014 New orders 119.5 158.3 166.6 5% 39% Backlog 109.1 190.3 148.5 (22)% 36% Book-to-bill 0.8 1.0 0.8 Net sales 148.4 162.0 201.0 24% 35% Gross profit 62.8 70.1 90.7 29% 44% Gross profit margin % 42.3% 43.3% 45.1% Sell
Slide 19: Cash Flow
CASH FLOW EUR million Q2 2014 Q1 2015 Q2 2015 Normalized net earnings 40.1 66.6 46.7 Depreciation and amortization 5.0 5.9 6.8 Result from investments (15.8) (13.4) (20.7) Other adjustments 3.5 (22.3) 6.2 Change in working capital (14.5) (0.4) (27.8) Net cash from operating activities 18.3 36.3 11.1
Slide 20: Balance Sheet
BALANCE SHEET Dec 31, 2014 Jun 30, 2015 EUR million Cash and cash equivalents 386 363 Accounts receivable 82 121 Inventories 124 133 Other current assets 27 34 Investments and associates 1,092 1,176 Property, plant and equipment 79 90 Other non-current assets 38 46 Total Assets 1,827 1,962 Accounts
Slide 21: Working Capital
WORKING CAPITAL EUR million Days 250 140 130 200 120 110 150 100 90 100 80 70 50 60 50 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 11 12 13 14 15 11 12 13 14 15 Days of working capital Working capital Quarterly sales July 30, 2015
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 09 10 11 12 13 14 15 Bookings Backlog July 30, 2015 | ASM proprietary information | 22
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 09 10 11 12 13 14 15 Net Sales (lhs) EBIT (rhs) July 30, 2015 | ASM proprietary information | 23
Slide 24: July 30, 2015 | ASM proprietary information | 24
July 30, 2015 | ASM proprietary information | 24