Slide 1: Investor Presentation Q2 2017 Results
INVESTOR PRESENTATION Q2 2017 RESULTS October July 25,26,2017 2016 ASM proprietary information © 2017 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 › ALD is a key growth market ALD market expected to grow by double digits from ’15 to ’20-’21 ASMI has leadership position in ALD › Outperforming in 2011-2016 ASMI outperformed the WFE market in four of the last six years Following a drop in the single wafer ALD market
Slide 4: Q2 2017 Key Results
Q2 2017 KEY RESULTS Q2 2016 Q1 2017 Q2 2017 New orders 159.1 204.2 205.9 Net sales 138.7 144.5 202.0 Gross profit margin % 43.8% 43.5% 43.7% Operating results 16.7 14.8 37.7 Normalized result from investments 16.4 35.4 30.9 Amortization intangible assets resulting from the (6.7) (5.8) (7.3) sale of
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments (US$) equipment › ASM is a market leader in ALD Test Assembly 4.2bn Lithography 9.8bn › Positions in Epitaxy, PECVD 4.6bn Other Wafer Processes 3.6bn and Vertical Furnaces Etch and Clean Process 12.3bn Diagnostics 5
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner forecasts WFE spending to increase by 18% Wafer Fab Equipment Spending in 2017, followed by a stable US$bn development in 2018 50 › Investment in leading edge 45 +17.9% +0.1% -7.3% +2.0% +6.2% 40 +11.4% equipment remains the key 35 -1.0% 30 driver 25 20 15 10 5 0 2
Slide 7: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION US$bn CAGR ‘16-21 300 Servers +7% 250 Industrial Electronics +9% Automotive +7% 200 Solid State Drives +15% Smartphone Premium +1% 150 Smartphone Basic +4% 100 Tablet -2% PC / Tablet Hybrid +17% 50 PC Ultramobile Clamshell +7% PC De
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE Share of 14nm, 10nm US$bn and 7nm and below of 50 total Equipment spending increasing in 2017-2020 45 40 35 7nm and below 30 10nm 14nm 25 22nm 20 32nm 45nm 15 65nm and above 10 5 0 2015 2016 2017 2018 2019 2020 2021 Gartner, July 2017 › Advanced nodes: market seg
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, ability to deposit new materials 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 Developing ALD technology since 1999 Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION › Engaged with all of the top-10 ASMI revenue semiconductor capital equipment spenders 100% › Increase in contribution top-3 75% in 2016 driven by 50% Logic/Foundry 25% 0% 2011 2012 2013 2014 2015 2016 Top 3 Nr 4-10 Rest Growing share of wallet with top clients July 25, 2017 |
Slide 12: Highlights
HIGHLIGHTS › Solid growth expected for the ALD market For 2017, we expect a clear improvement in the single wafer ALD market We expect the single wafer ALD market to reach a size of approx. US$1.5 billion by 2020-2021 › First high volume manufacturing order intake Intrepid Broadening our Epita
Slide 13: Stake in ASMPT Reduced from 39% to 34%
STAKE IN ASMPT REDUCED FROM 39% TO 34% › On April 24, 2017, ASMI sold a 5% stake in ASMPT for proceeds of approximately €245 million 20 million shares in ASMPT were placed at a price of HK$105 per share through an accelerated bookbuild offering › Proceeds to be used for a new share buyback program
Slide 14: ASMPT Results
ASMPT RESULTS Q2 2016 Q1 2017 Q2 2017 Sales ASMPT (HK$m) 3,669 3,761 4,424 Net profit ASMPT excluding one-offs (EURm, 100% based) 51 64 88 Normalized result from investments (including ASMI’s share of ASMPT net profit) 16.4 35.4 30.9 Amortization intangible assets resulting from the sale of the 12%
Slide 15: Financial Overview
FINANCIAL OVERVIEW July 25, 2017 | ASM proprietary information | 15
Slide 16: Q2 2017 Highlights
Q2 2017 HIGHLIGHTS › Revenues up 40% q-o-q and up 46% y-o-y › Bookings up 1% q-o-q and up 29% y-o-y. Book-to-bill ratio of 1.0 › Q2 backlog of EUR 210m (currency comparable: EUR 222m) compared to EUR 218m at the end of Q1 › Operating margin of 18.7% in Q2 2017 vs. 10.3% in Q1 and 12.0% in Q2 2016 ›
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q3 we expect a sales level of €170-190 million, on a currency comparable level, while for the second half of 2017 as a whole we expect a sales level higher than in the first half of 2017. After the very strong orders in
Slide 18: Net Earnings Q2
NET EARNINGS Q2 Q2 2017 vs Q2 2017 vs EUR million Q2 2016 Q1 2017 Q2 2017 Q1 2017 Q2 2016 New orders 159.1 204.2 205.9 1% 29% Backlog 175.4 218.3 209.6 (4)% 20% Book-to-bill 1.1 1.4 1.0 Net sales 138.7 144.5 202.0 40% 46% Gross profit 60.8 62.9 88.2 40% 45% Gross profit margin % 43.8% 43.5% 43.7% Se
Slide 19: R&D Expenditure
R&D EXPENDITURE EUR million Q2 2016 Q1 2017 Q2 2017 R&D expenditure (24.5) (27.6) (29.1) Capitalized development expenditure 6.6 6.7 8.8 Amortization capitalized development expenditure (4.2) (3.6) (3.5) Impairment capitalized development expenditure - - (1.4) R&D expenses (22.1) (24.5) (25.1) July
Slide 20: Cash Flow
CASH FLOW EUR million Q2 2016 Q1 2017 Q2 2017 Normalized net earnings 42.3 41.6 55.6 Depreciation, amortization and impairments 12.1 11.9 13.6 Result from investments (16.4) (35.4) (30.9) Other adjustments (7.4) 1.4 (1.1) Change in working capital 1 (18.3) 14.0 (51.4) Net cash from operating activit
Slide 21: Balance Sheet
BALANCE SHEET EUR million Dec 31, 2016 Jun 30, 2017 Cash and cash equivalents 378 523 Accounts receivable 137 148 Inventories 112 150 Other current assets 23 27 Investments and associates 1,236 1,023 Property, plant and equipment 95 102 Capitalized development costs 88 90 Other non-current assets 79
Slide 22: Working Capital
WORKING CAPITAL EUR million Days 250 140 200 120 150 100 100 80 50 60 0 40 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 12 13 14 15 16 17 12 13 14 15 16 17 Working capital Quarterly sales Days of working capital July 25, 2017 | ASM proprietary information
Slide 23: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 250 50 250 40 200 30 200 20 150 150 10 0 100 100 -10 50 -20 50 -30 0 -40 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 10 11 12 13 14 15 16 17 10 11 12 13 14 15 16 17 Net Sale
Slide 24: July 25, 2017 | ASM proprietary information | 24
July 25, 2017 | ASM proprietary information | 24