Asm International N.v. · EURONEXT:ASM
Asm International — Q1 2020 Earnings Presentation
23 slides from Asm International's earnings presentation, Apr 21, 2020
Slide 1: Investor Presentation Q1 2020 Results
INVESTOR PRESENTATION Q1 2020 RESULTS April 21, October 26,2020 2016 ASM proprietary information © 2020 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 long term growth prospects l ALD market expected to be a key growth market, ASMI has leadership position in ALD l Driving structurally higher sales in the other product lines › COVID-19 update l Key priority is the health and safety of our employees and families, and o
Slide 4: 2020 Q1 Key Results
2020 Q1 KEY RESULTS (restated) Q1 2019 Q4 2019* Q1 2020 2017 New orders 235.0 373.0 333.5 773.7 Net sales 248.8 344.6 325.1 730.9 Gross profit margin % 41.3% 43.6% 44.5% 41.3% Operating results 47.0 74.9 78.1 108.9 Operating margin 18.9% 21.7% 24.0% Normalized result from investments 3.1 6.4 0.7 112
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM is a market leader in ALD Equipment market segments 2019 (US$) › Positions in Epitaxy, PECVD Etch and Clean and Vertical Furnaces 14.9bn Lithography Deposition 14.3bn 13.2bn Assembly 3.0bn Test Process 5.5bn Other Diagnostics Wafer 6.7bn Processes 4.2bn VLSI Rese
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner expects 1% decrease in WFE in 2020, followed by a 5% increase in 2021 (Dec 2019) Wafer Fab Equipment spending › In March 2020, VLSI Research downgraded its US$bn forecast for WFE in 2020 to a decrease of 7% due to the market impact of COVID-19. In February 2020, 70
Slide 7: Semiconductor Market Growth Drivers
SEMICONDUCTOR MARKET GROWTH DRIVERS Semiconductor sales by key application CAGR ‘17-24 700 Consumer Electronics +4% 600 Compute (ex. Servers) 0% 500 Communication (ex. +1% Smartphones) 400 Smartphones +6% 300 Servers +3% 200 Solid-State Drives +15% 100 Industrial +3% 0 Automotive +7% 2017 2018 2019
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn Strongest growth in leading edge nodes 70 60 50 7nm and below 10nm 40 14nm 22nm 30 32nm 45nm 20 65nm and above 10 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Gartner, December 2019 › Advanced nodes: market segments with high expected growth › 45nm mainly
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 for
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 portfo
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION ASMI sales 2019 › Engaged with all of the top-10 semiconductor capital equipment spenders Top 3 Nr 4-10 Rest Growing share of wallet with top clients April 21, 2020 | ASM proprietary information | 11
Slide 12: Key Points During the Quarter
KEY POINTS DURING THE QUARTER › COVID-19 update l Health and safety are key priority at ASM. All appropriate actions taken to protect our staff and to maintain business operations for customers in a safe manner l Despite challenges in supply chain and logistics due to lockdowns and travel restrictio
Slide 13: ASMPT Results
ASMPT RESULTS Q1 2019 Q4 2019 Q1 2020 Net profit ASMPT (€ million, 100% based) 12 25 3 Normalized result from investments (including ASMI’s share of ASMPT net profit) 3.1 6.4 0.7 Amortization intangible assets resulting from the sale of ASMPT stake in 2013 (3.4) (3.5) (3.5) Results from investments
Slide 14: Financial Overview
FINANCIAL OVERVIEW April 21, 2020 | ASM proprietary information | 14
Slide 15: Q1 2020 Financial Highlights
Q1 2020 FINANCIAL HIGHLIGHTS › Revenue was up 31% y-o-y and down 6% q-o-q (excluding the €56m gain from the arbitration settlement in Q4 2019) › Bookings up 42% y-o-y and down 11% q-o-q (excluding settlement in Q4). Book- to-bill ratio of 1.0. Q1 backlog of €365m up from €351m in Q4 › Gross margin 4
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q2 on a currency comparable level we now expect sales of €300-350 million. We slightly widened the range by reducing the lower end compared to the earlier indicated range of €330-350 million. The widening of the range i
Slide 17: Net Earnings
NET EARNINGS € million Q1 2019 Q4 2019 Q1 2020 New orders 235.0 429.0 333.5 Backlog 292.0 351.2 365.3 Book-to-bill 0.9 1.1 1.0 Net sales 248.8 400.6 325.1 Equipment sales 196.8 288.8 269.3 Spares & service 51.9 55.8 55.8 Patent litigation settlement - 56.0 - Gross profit 102.8 206.3 144.8 Gross prof
Slide 18: R&D Expenditure
R&D EXPENDITURE € million Q1 2019 Q4 2019 Q1 2020 R&D expenditure (33.4) (41.4) (40.9) Capitalized development expenditure 15.3 14.7 15.6 Amortization capitalized development expenditure (3.0) (4.6) (5.5) Impairment capitalized development expenditure (0.8) (3.8) - R&D expenses (21.9) (35.1) (31.0)
Slide 19: Cash Flow
CASH FLOW € million Q1 2019 Q1 2020 Net earnings 49.4 74.1 Depreciation, amortization and impairments 17.1 19.2 Result from investments 0.3 2.8 Evaluation tools (1.4) (20.5) Other adjustments (2.5) 16.3 Change in working capital (10.7) (10.4) Net cash from operating activities 52.1 81.4 Capital expe
Slide 20: Balance Sheet
BALANCE SHEET € million Dec 31, 2019 Mar 31, 2020 Cash and cash equivalents 498 529 Accounts receivable 200 188 Inventories 173 162 Other current assets 75 90 Right-of-use Assets - net 28 26 Investments in associates 778 792 Property, plant and equipment 165 180 Goodwill and other intangible assets
Slide 21: Working Capital
WORKING CAPITAL € million Days 400 120 350 300 100 250 200 80 150 100 60 50 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2* Q4* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2* Q4* 15 16 17 18 19 20 15 16 17 18 19 20 Working capital Quarterly sales Days of working capit
Slide 22: Historical Development
HISTORICAL DEVELOPMENT € million € million 1.200 240 400 350 1.000 200 300 800 160 250 600 120 200 400 80 150 100 200 40 50 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q2*Q3Q4*Q1 15 16 17 18 19 20 Net Sales (lhs) EBIT (rhs) Bookings Back
Slide 23: April 21, 2020 | ASM proprietary information | 23
April 21, 2020 | ASM proprietary information | 23