Asm International N.v. · EURONEXT:ASM

Asm International — Shareholder Meeting (May 2009)

24 slides from Asm International's shareholder meeting presentation, May 14, 2009

  1. Slide 1: AGM presentation 14 May 2009

    AGM presentation 14 May 2009 © ASM

  2. Slide 2: Safe Harbor Statements

    Safe Harbor Statements Front-End Operations All matters discussed in this statement, 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- looking stat

  3. Slide 3: Agenda

    AGENDA Front-End Operations • Introduction • Current status Front-end • PERFORM! Program • Concluding remarks © ASM

  4. Slide 4: Focus of this Presentation

    Focus of this Presentation Front-End Operations ASM International 100.0% 52.87% ASM FE ASM PT Front-end activities ASM Pacific Technology / Back-end activities FTE: 1,576 FTE: 9,556 Focus of Today Note: Total employment as of 31 March 2009, including temporary workers. © ASM

  5. Slide 5: April 2008: Roadmap to profitability

    April 2008: Roadmap to profitability Front-End Operations €M €m 2007 2009 Outgrow the Revenue 451 440 – 480 market Gross margin % 32.2% 37 – 39% Expand Operating expenses 130 114 – 125 operating margin Operating margin % 3.4% 11 – 13% Based on market assumptions in April 2008 © ASM

  6. Slide 6: Agenda: Current status Front-end

    AGENDA Front-End Operations • Introduction • Current status Front-end 1. Revenue 2. Gross margin% 3. Operating expenses 4. Organizational structure and culture • PERFORM! Program • Concluding remarks © ASM

  7. Slide 7: The World Changed: Wafer Fab Equipment Market

    1. Revenue The World Changed Front-End Operations WFE Year to Year Growth April '08 FC March '09 FC 2007-2008 -17.4% -31.4% (Act) 50000 2008-2009 9.8% -46.1% 2009-2010 15.3% 17.1% Wafer Fab Equipment Marketsize ($M) 2010-2011 -7.8% 45.0% 40000 30000 20000 10000 Gartner (March 2009) Gartner (April 20

  8. Slide 8: Revenue drop 2008/2007 in line with most competitors

    1. Revenue Revenue drop 2008/2007 in line with most competitors Front-End Operations Aixtron Veeco Semitool Ulvac Lam TEL (Silicon) ASM Front-end Applied (Silicon) Aviza Novellus Hitachi Kokusai Varian Axcelis Mattson -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 2008 Calendar Year over 2007 Calendar

  9. Slide 9: Quarterly Revenue dropped less than most competitors

    1. Revenue Quarterly Revenue dropped less than most competitors Front-End Operations Aixtron Veeco ASM Front-end TEL (All) Applied (All) Semitool TEL (Silicon) Novellus Axcelis Lam Varian Applied (Silicon) Mattson -100.0% -80.0% -60.0% -40.0% -20.0% 0.0% Latest Quarter/Year Ago Quarter Revenue Chang

  10. Slide 10: Gross Margin: Framework on schedule

    2. Gross Margin Framework on schedule Front-End Operations • Transfer of Manufacturing to FEMS • Generics and other Materials ; In 2008 started the Eagle XP (PECVD) generic at FEMS ; In 2008 started HVM of Pulsar at FEMS • Final assembly & testing ; Roll-out is starting in 2009, as communicated in A

  11. Slide 11: Gross Margin: Single Wafer Platform consolidation

    2. Gross Margin Framework on schedule Front-End Operations • Single Wafer Platform consolidation • Move all single wafer applications to one single product platform by 2010 ; The Eagle/Dragon platform has been selected, already used by PE-CVD and CP products ; Transition from Polygon platform to Eag

  12. Slide 12: Operating expenses: Reduced our cost base

    3. Operating expenses Reduced our cost base Front-End Operations • 2009 Roadmap-target was range of € 114-125 million on revenue of € 440-480 million • Actual operating expenses • 2007: € 130 million • 2008: € 116 million • 2009 Q1: € 26 million or € 104 million annualized • Reduced headcount from 2

  13. Slide 13: Established stronger and global FE management team

    4. Organizational structure & culture Established stronger and global FE management team Front-End Operations CEO Chuck del Prado CFO a.i. Front End Strategy Rob Ruijter Han Westendorp • Controlling • CTO • Treasury • Strategy • Audit • Corporate Marketing • Legal • Investor Relations Global Sales&S

  14. Slide 14: We improved our Sales infrastructure

    4. Organizational structure & culture We improved our Sales infrastructure Front-End Operations Change of • Changed from region based to a global organization Sales & regional reporting to the CEO 1 Service • Strengthened its staff in several areas around the world. Organization Appointment 2 VP Glo

  15. Slide 15: Where are we now and what action needed?

    Where are we now and what action needed? Front-End Operations • Forecasts still show uncertainty whether the market will bottom out in 2009 • ASM remains strongly committed to improve Front End Profitability • However we are taking a realistic approach: • not expecting sales growth in 2009 and 2010

  16. Slide 16: Agenda: PERFORM! Program

    AGENDA Front-End Operations • Introduction • Current status Front end • PERFORM! Program • Concluding remarks © ASM

  17. Slide 17: PERFORM! is focused on

    PERFORM! is focused on Front-End Operations 1. Further reduction of our Cost Base by 30% 2. Reduction of Working Capital by € 43 million 3. Revalidation of our strategic priorities in Front End 4. Increase effectiveness of our organization © ASM 17

  18. Slide 18: PERFORM! has project driven approach to drive progress

    PERFORM! has project driven approach to drive progress Front-End Operations Overall Responsible for Execution: ASM FE Management team 1. Short term 2. Create conditions for future success 3. Increase effectiveness Reduce Achieve Install Reduce Validate FE Move to global working customer performance

  19. Slide 19: PERFORM! Short Term Projects deliverables

    PERFORM! some ‘Short Term Projects’-deliverables Front-End Operations 1. Short term Reduce working capital Reduce Cost Base • Free up cash by reducing working • Achieve EBIT break even at € 55M per capital from € 143 M to around € 100 M quarter in 2H 2010 by end of 2009 • Reduce Cost Base by 30%,com

  20. Slide 20: PERFORM! Future Success Projects deliverables

    PERFORM! some ‘Future Success Projects’-deliverables Front-End Operations 2. Create conditions for future success Move to Global Operations Validate strategy Achieve Customer Penetration • Project Global Operations will • Ensure full alignment of R&D accelerate worldwide consolidation programs with

  21. Slide 21: PERFORM! will further strengthen our organization and culture

    PERFORM! will further strengthen our organization and company culture Front-End Operations 3. Increase effectiveness Install performance culture • New org structure and senior management team • New global business processes, supported by SAP, to enhance visibility and improve decision making • Globa

  22. Slide 22: Agenda: Concluding remarks

    AGENDA Front-End Operations • Introduction • Current status Front end • PERFORM! Program • Concluding remarks © ASM

  23. Slide 23: Product Highlights

    Product Highlights Front-End Operations ALD • ASM’s Pulsar® is the single wafer industry choice for advanced high-k gate materials • ASM is the only manufacturer in high volume manufacturing for ALD high-k gates • ASM is successfully building a position in Plasma Enhanced ALD for new memory & foundr

  24. Slide 24: Conclusions

    Conclusions Front-End Operations • Still unclear whether the market will bottom out in 2009 • Roadmap to Profitability of 2008 set the stage for improved financial performance • Current financial performance Front-end demands additional strong measures • PERFORM! is our 2009-2010 execution program f

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