Asm International N.v. · EURONEXT:ASM
Asm International — Q4 2013 Earnings Presentation
23 slides from Asm International's earnings presentation, Feb 27, 2014
Slide 1: Investor Presentation Q4 2013 Results
INVESTOR PRESENTATION Q4 2013 RESULTS February 27, 2014 ASM proprietary information © 2014 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 the leadership positions in ALD and PEALD › Strong revenue momentum ASMI grew revenue by 22% in 2013 Outperforming the overall equipment market › Improved profitability
Slide 4: Q4 2013 Key Results
Q4 2013 KEY RESULTS Pro-forma Pro-forma Pro-forma EUR million Q4 2012 Q3 2013 Q4 2013 2012 2013 New orders 129.5 112.2 133.1 360.1 479.6 Net sales 93.1 116.4 126.9 370.4 452.0 Gross profit margin % 37.1% 39.1% 39.3% 33.6% 39.0% Operating results 1.2 11.6 15.8 0.5 44.7 Result from investments (excl.
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET Equipment market segments (US$) › ASM focuses on deposition equipment Assembly › ASM is the market leader in ALD Test 3.3bn 3.4bn Lithography 7.8bn and PEALD Other Wafer Processes › Positions in Epitaxy, PECVD 3.9bn and Vertical Furnaces Etch and Process Clean Diagnost
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK Capital equipment spending › Gartner forecasts a double digit market increase for 2014 US$bn › Driven by investment in leading 60 +11% 50 +16% edge equipment -16% +16% -6% 40 › Healthy investment levels in -9% 30 Foundry and Logic, capex 20 recovery in Memory segment 10 0 20
Slide 7: Mobility the Key End Market Driver
MOBILITY THE KEY END MARKET DRIVER M units 800 700 600 500 Feature phones 400 Smartphones Tablets 300 PCs 200 100 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 2009 2010 2011 2012 2013 2014 VLSI Research, January 2014 Smartphones the strongest growing end market Driver fo
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE Gartner, December 2013 Expanding opportunities for ALD and PEALD at 22nm, 14nm and below February 27, 2014 | ASM proprietary information | 8
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: 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 11: Customer Concentration
CUSTOMER CONCENTRATION ASMI revenue › Wider adoption number of top capex customers 100% › Diversification of customer 75% base from Logic to Memory and Foundries 50% › Weight of Asia growing 25% 0% 2009 2010 2011 2012 2013 Top 3 Nr 4-10 Rest Growing share of wallet with top clients February 27, 2014
Slide 12: Highlights
HIGHLIGHTS › Accelerated momentum ALD and PEALD ALD and PEALD further established as mainstream enabling technologies Expanding customer engagements and new applications › Strong financial results Revenue increased 22% in 2013 Gross margin increased to 39%, EBIT margin 9.9% › Further actions
Slide 13: ASMPT Results
ASMPT RESULTS › As of 15 March 2013, our 40% share of ASMPT net profits is included in ‘result from investments’ › PPA regular amortization charge of approximately € 5.5m per quarter › One-off PPA fair value adjustments of € 40m in 2013 › Realized and remeasurement gain on sale of ASMPT shares total
Slide 14: Financial Overview
FINANCIAL OVERVIEW February 27, 2014 | ASM proprietary information | 14
Slide 15: Q4 2013 Highlights
Q4 2013 HIGHLIGHTS › Revenues up 9% q-o-q and up 36% y-o-y on a pro-forma basis › Bookings up 19% q-o-q and up 3% y-o-y, book-to-bill ratio of 1.0 › Q4 backlog of € 115m, up from € 111m in Q3 › EBIT margin of 12.5% compared to 9.9% in Q3 2013 and 1.3% pro-forma in Q4 2012 › Cash flow from operations
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q1 2014 we expect a double digit sales increase compared to Q4 2013, on a currency comparable base. For Q2 2014 we also expect a double digit sales increase compared to Q4 2013, on a currency comparable basis. For the s
Slide 17: Net Earnings
NET EARNINGS Pro-forma Q4 2013 vs Q4 2013 vs EUR million Q4 2012 Q3 2013 Q4 2013 Q3 2013 Q4 2012 New orders 129.5 112.2 133.1 19% 3% Backlog 91.7 111.4 114.8 3% 25% Book-to-bill 1.4 1.0 1.0 Net sales 93.1 116.4 126.9 9% 36% Gross profit 34.6 45.6 49.9 9% 44% Gross profit margin % 37.1% 39.1% 39.3% S
Slide 18: Cash Flow
CASH FLOW Pro-forma EUR million Q4 2012 Q3 2013 Q4 2013 Net earnings (19.5) (0.9) (360.6) Depreciation and amortization 4.9 5.1 5.7 PPA amortization and adjustments - 17.2 369.8 Result from investments 0.8 (10.8) (1.5) Other adjustments 14.0 1.9 4.7 Change in working capital 2.9 21.8 (6.1) Net cash
Slide 19: Balance Sheet
BALANCE SHEET Pro-forma Dec 31, 2012 Dec 31, 2013 EUR million Cash and cash equivalents 145 312 Accounts receivable 63 81 Inventories 122 105 Other current assets 20 18 Investments and associates 374 950 Property, plant and equipment 64 57 Other non-current assets 46 33 Total Assets 833 1,557 Accoun
Slide 20: Working Capital
WORKING CAPITAL Days EUR million 160 140 140 130 120 120 110 100 100 80 90 60 80 70 40 60 20 50 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 11 12 13 11 12 13 Working capital Quarterly sales Days of working capital February 27, 2014 | ASM proprietary information | 20
Slide 21: Bookings and Backlog
BOOKINGS AND BACKLOG EUR million 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 09 10 11 12 13 Bookings Backlog February 27, 2014 | ASM proprietary information | 21
Slide 22: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 140 30 120 20 100 10 80 0 60 (10) 40 20 (20) 0 (30) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 09 10 11 12 13 Net Sales (lhs) EBIT (rhs) February 27, 2014 | ASM proprietary information | 22
Slide 23: February 27, 2014 | ASM proprietary information
February 27, 2014 | ASM proprietary information | 23