Asm International N.v. · EURONEXT:ASM
Asm International — Shareholder Meeting (May 2015)
35 slides from Asm International's shareholder meeting presentation, May 21, 2015
Slide 1: ASMI Annual Meeting of Shareholders 2015
ASMI ANNUAL MEETING OF SHAREHOLDERS 2015 Chuck del Prado, President & CEO May 21, 2015 ASMI annual meeting of shareholders © 2015 ASMI
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: Outline
OUTLINE › Semiconductor capital spending in 2014 › ASMI results in 2014 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 21, 2015 I ASMI annual meeting of shareholders | 3
Slide 4: Outline
OUTLINE › Semiconductor capital spending in 2014 › ASMI results in 2014 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 21, 2015 I ASMI annual meeting of shareholders | 4
Slide 5: Our industry grew in 2014
OUR INDUSTRY GREW IN 2014 SEMICONDUCTOR CAPITAL SPENDING (USD billion) 80 +17.9% 70 +11.6% +118.4% 60 -16.1% -1.5% 50 40 30 20 -41.2% 10 0 2009 2010 2011 2012 2013 2014 Source: Gartner, April 2015 Semiconductor capex was healthy in 2014 – up 11.6% May 21, 2015 I ASMI annual meeting of shareholders |
Slide 6: Wafer fab equipment was up in 2014
WAFER FAB EQUIPMENT WAS UP IN 2014 WAFER FAB EQUIPMENT BY DEVICE TYPE (USD billion) 40 +15% 35 +145% +16% 30 -18% -8% 25 20 Other 15 -47% Memory 10 Logic 5 0 Foundry 2009 2010 2011 2012 2013 2014 Source: Gartner, April 2015 2014 WFE spending increased by 16% driven by memory May 21, 2015 I ASMI annu
Slide 7: Outline
OUTLINE › Semiconductor capital spending in 2014 › ASMI results in 2014 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 21, 2015 I ASMI annual meeting of shareholders | 7
Slide 8: Key highlights – 2014
KEY HIGHLIGHTS – 2014 › ASMI revenues up 21% y-o-y › Gross margin increased to 43% › ASMI EBIT margin up from 10.4% in 2013 to 16.6% in 2014 › Cash flow from operations of €110 million in 2014 €100 million share buyback program announced October 2014 Proposal to ASMI 2015 AGM for dividend of €0.
Slide 9: Net earnings 2014
NET EARNINGS 2014 FINANCIALS BASED ON US GAAP comparable FULL YEAR FULL YEAR FULL YEAR Q1 Q2 Q3 Q4 Q1 EUR million 2013 2013 2014 2014 2014 2014 2014 2015 Front-end 452 452 546 151 148 122 124 162 Back-end 160 - - - - - - - NET SALES 612 452 546 151 148 122 124 162 Front-end 39.0% 39.0% 43.1% 43.7% 4
Slide 10: Balance sheet
BALANCE SHEET FINANCIALS BASED ON US GAAP DEC MAR JUN SEP DEC MAR EUR million 2013 2014 2014 2014 2014 2015 Cash and cash equivalents 312 371 368 410 386 423 Other current assets 206 206 195 211 232 270 Property, plant and equipment, net 57 58 61 72 79 91 Goodwill, net 11 11 12 12 12 13 Investments
Slide 11: Working capital
WORKING CAPITAL VALUE (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 11 12 13 14 15 Working capital Quarterly sales DAYS 140 120 Days of working capital 100 80 60 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 11 12 13 14 15 May 21, 2015 I A
Slide 12: Cash flow
CASH FLOW FINANCIALS BASED ON US GAAP FULL YEAR FULL YEAR Q1 Q2 Q3 Q4 Q1 EUR million 2013 2014 2014 2014 2014 2014 2015 Net result 46 160 33 40 60 27 67 Depreciation and amortization 21 21 5 5 5 6 6 Working capital (9) 0 27 (15) 2 (15) (1) Result from investments (21) (61) (6) (16) (31) (9) (13) Oth
Slide 13: Historical development – ASMI (excl. ASMPT)
HISTORICAL DEVELOPMENT – ASMI (EXCL. ASMPT) (EUR million) 180 40 160 30 140 20 120 10 100 - 80 - 10- 60 40 - 20- 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 09 10 11 12 13 14 15 Net Sales (lhs) EBIT (rhs) May 21, 2015 I ASMI annual meeting of sharehold
Slide 14: Bookings & backlog – ASMI (excl. ASMPT)
BOOKINGS & BACKLOG – ASMI (EXCL. ASMPT) (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 09 10 11 12 13 14 15 Bookings Backlog May 21, 2015 I ASMI annual meeting of shareholders | 14
Slide 15: Shareholder remuneration
SHAREHOLDER REMUNERATION › Proposed dividend increases by 20% to €0.60 per share › €100 million share buyback announced in October 2014 • To be executed in 2014/2015 timeframe; nearly fully completed as of 15 May 2015 • As part of commitment to use excess cash for the benefit of ASMI’s shareholders
Slide 16: Total shareholder return in 2013-2014
TOTAL SHAREHOLDER RETURN IN 2013-2014 175% 150% 125% 100% AMAT 75% LAM 50% ASML 25% 0% ASMI -25% Jul-13 Jul-14 Oct-13 Oct-14 Apr-13 Apr-14 Apr-15 Jan-13 Jan-14 Jan-15 › Comparison of same sector companies › Includes dividend payouts and redistribution of capital May 21, 2015 I ASMI annual meeting of
Slide 17: Total shareholder return 2010-2014
TOTAL SHAREHOLDER RETURN 2010-2014 600% 500% ASML 400% 300% 200% ASMI 100% 0% LAM AMAT -100% Oct-11 Jul-10 Oct-10 Jul-11 Jul-12 Oct-12 Jul-13 Oct-13 Jul-14 Oct-14 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 › Comparison of same sector companies › Includes divi
Slide 18: Implied value front-end
IMPLIED VALUE FRONT-END (EUR million) 1,400 1,200 1,000 800 600 400 200 - (200) (400) (600) (800) Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Value ASMI minus value PT stake and adjusted for excess net cash (EUR million) › Strong increase in impl
Slide 19: Shareholding in ASMPT
SHAREHOLDING IN ASMPT › After the sale of 12% of the ASMPT shares on 15 March 2013, our 40% share of ASMPT net profits is included in ‘result from investments’ › PPA regular amortization amounted to €23 million for full year 2014 Full year Full year EUR million 2013 2014 Q1 2015 Sales ASMPT (HK$ mil
Slide 20: Outline
OUTLINE › Semiconductor capital spending in 2014 › ASMI results in 2014 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 21, 2015 I ASMI annual meeting of shareholders | 20
Slide 21: Corporate responsibility
CORPORATE RESPONSIBILITY › Released first annual Corporate Responsibility (CR) report › Electronics Industry Citizenship Coalition (EICC) Code of Conduct EICC Committee formed to drive continuous improvement and oversight - Q2 2014 Score of “Low Risk” in Risk Assessment process (official EICC sy
Slide 22: Health & safety
HEALTH & SAFETY GLOBAL INJURY AND RCR RATES 2.0 1.5 1.0 0.5 0.0 2011 2012 2013 2014 › Continued reduction in injuries, Recordable Case Rate remains flat › Safety Leadership engagement sessions within 2015 › Focused improvements in our Engineering Labs and Global Service May 21, 2015 I ASMI annual me
Slide 23: Environment
ENVIRONMENT 2013-2015 ENVIRONMENT SCORECARD * * * percentage towards target › Global Environmental Management System recertified, zero findings › Carbon Disclosure Project – Best Improver Benelux Region › On-target for achieving three of four 3-year objectives May 21, 2015 I ASMI annual meeting of s
Slide 24: Outline
OUTLINE › Semiconductor capital spending in 2014 › ASMI results in 2014 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 21, 2015 I ASMI annual meeting of shareholders | 24
Slide 25: ASM products
ASM PRODUCTS › ASM focuses on deposition equipment › ASM has a leading position in ALD and PEALD: • ALD for high-k metal gates Intrepid XP • PEALD spacers for double patterning epitaxy XP8 PEALD, PECVD • Additional applications, such as in advanced FinFET devices › Positions in epitaxy, PECVD and ve
Slide 26: What has changed in 2014?
WHAT HAS CHANGED IN 2014? › PEALD market further accelerated › Revenue contribution of memory segment further increased › Strengthened our position within the top-10 capex customers › 2014 another year in which ASMI outgrew the wafer fab equipment market May 21, 2015 I ASMI annual meeting of shareho
Slide 27: Growing wallet share with top clients
GROWING WALLET SHARE WITH TOP CLIENTS › Strengthened our position beyond the top-3 in the top-10 capex spenders in 2014 ASMI REVENUE 100% 75% 50% 25% 0% 2009 2010 2011 2012 2013 2014 Growing share of wallet with top clients Top 3 Nr 4-10 Rest May 21, 2015 I ASMI annual meeting of shareholders | 27
Slide 28: ALD becoming an important deposition equipment segment
ALD BECOMING AN IMPORTANT DEPOSITION EQUIPMENT SEGMENT › The CAGR ‘14-’18 of the ALD segment is highest within the deposition equipment market › ALD estimated to represent approximately 20% of the total deposition equipment market by 2018 › Drivers for growth: Strengths of ALD: (i) high-precision
Slide 29: Estimated ALD market growth
ESTIMATED ALD MARKET GROWTH ALD MARKET SINGLE WAFER / MINIBATCH (USD million) 1,400 1,200 1,000 800 600 400 200 0 2014 2018 Source: Gartner, VLSI, ASMI April 2015 › Approximately doubling over the next three to four years › Key growth areas are patterning layers, high-k/metal gate and other applicat
Slide 30: Outline
OUTLINE › Semiconductor capital spending in 2014 › ASMI results in 2014 › Corporate responsibility › Products & business highlights › Market outlook and conclusions May 21, 2015 I ASMI annual meeting of shareholders | 30
Slide 31: Semiconductor growth drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION (USD billion) CAGR ‘14-’19 160 +3% Smartphone, Premium 140 +12% Smartphone, Basic/Utility 120 -34% Mobile Phone, Traditional 100 +36% Hybrid PC/Tablet 80 60 +3% Tablet 40 +11% PC, Ultramobile Clamshell 20 -9% PC, Traditional Noteboo
Slide 32: ASM markets
ASM MARKETS WAFER FAB EQUIPMENT BY TECHNOLOGY NODE 40 +5% +9% 35 +16% -3% 30 -8% 7nm and below 25 10nm 14nm 20 22nm 32nm 15 45nm 65nm & above 10 5 0 2013 2014 2015 2016 2017 Advanced nodes: market segments with high Source: Gartner, April 2015 expected growth May 21, 2015 I ASMI annual meeting of sh
Slide 33: Q2 2015 financial outlook ASMI
Q2 2015 FINANCIAL OUTLOOK ASMI Based upon the current backlog and our current visibility: On a currency comparable level we expect Q2 sales to be between €180 and €200 million, while the Q2 order intake is expected to be in the range of €160-180 million. For the second half of 2015 the current visib
Slide 34: Summary
SUMMARY › Revenue increased 21% compared to 2013, outperforming the overall wafer fab equipment market › Strong traction in ALD (especially PEALD) continued in 2014 › Achieved strong gross margin improvements in 2014 › The Company believes to be well positioned for increased number of ALD applicatio
Slide 35: May 21, 2015 I ASMI annual meeting of shareholders
May 21, 2015 I ASMI annual meeting of shareholders | 35