Asm International N.v. · EURONEXT:ASM

Asm International — Shareholder Meeting (May 2012)

49 slides from Asm International's shareholder meeting presentation, May 15, 2012

  1. Slide 1: Annual General Meeting of Shareholders

    Annual General Meeting of Shareholders May 15 2012 Chuck del Prado President & CEO © 2012 ASM Confidential and Proprietary Information

  2. Slide 2: Safe Harbor Statements

    Safe Harbor Statements 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 could cause actual results to differ materially from those in the forward-looking stateme

  3. Slide 3: Outline

    Outline • Semiconductor Equipment Market in 2011 • ASMI Results in 2011 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 3

  4. Slide 4: Outline

    Outline • Semiconductor Equipment Market in 2011 • ASMI Results in 2011 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 4

  5. Slide 5: Our Industry grew in 2011

    Our Industry grew in 2011 Semi Capital Equipment 50 $B 45 40 35 Semi Capital Equipment Year to 30 Year Growth 25 2007-2008 -31.7% 20 2008-2009 -45.4% 15 2009-2010 +142.7% 10 2010-2011 +8.4% Gartner Mar 2012 5 0 2006 2007 2008 2009 2010 2011 • After strong recovery in 2010, our industry grew in 2011

  6. Slide 6: Assembly and Packaging Equipment Market 2011

    Assembly and Packaging Equipment Market 2011 6 +140% 5 -12% +3% 4 -27% $B 3 -31% 2 1 0 2007 2008 2009 2010 2011 Assembly and Packaging Equipment spending declined in 2011 after a very strong 2010 Gartner March 2012 © 2009 ASM Confidential and Proprietary Information 6

  7. Slide 7: SMT Equipment Market 2011

    SMT Equipment Market 2011 Market Size $m – Q4 2011 SMT Equipment Market in 2011 flat compared to 2010 ASM SIPLACE Market Intelligence, Q4 2011 © 2009 ASM Confidential and Proprietary Information 7

  8. Slide 8: Wafer Fab Equipment grew in 2011

    Wafer Fab Equipment grew in 2011 Wafer Fab Equipment by device type 40.0 +10% +13% Other 35.0 Memory +145% Logic 30.0 Foundry -33% 25.0 WFE $B 20.0 -47% 15.0 10.0 5.0 0.0 2007 2008 2009 2010 2011 • 2011 WFE spending increased by 13% • Logic and Foundry grew in 2011 • Memory declined Gartner, March 2

  9. Slide 9: Outline

    Outline • Semiconductor Equipment Market in 2011 • ASMI Results in 2011 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 9

  10. Slide 10: Key Highlights – 2011

    Key Highlights – 2011 • Revenues up 34% • Front-end grew 55%, especially (PE)ALD and EPI • Back-end increased 27% • ASM Assembly Systems (SMT) contributed €444m • Q4 Backlog of €331m (0.9 X Q4 sales) • EBIT margin of 17% • Front-end EBIT margin of 14% for full year • Cash flow from operations of €21

  11. Slide 11: Historical development - Group

    Historical development - Group © 2009 ASM Confidential and Proprietary Information 11

  12. Slide 12: Net Earnings - Group

    Net Earnings - Group Full Year Full Year Q1 Q2 Q3 Q4 Q1 € million 2010 2011 2011 2011 2011 2011 2012 Front End 293.4 456.1 116.1 121.7 104.1 114.2 94.8 Back End 929.5 1,178.3 316.1 352.4 272.1 237.8 216.2 Net Sales 1,222.9 1,634.3 432.2 474.1 376.1 352.0 311.0 Front End 39.1% 37.8% 39.2% 39.0% 39.0%

  13. Slide 13: Working Capital - Group

    Working Capital - Group Decreasing working capital in Front-end and Back-end due to lower activity levels © 2009 ASM Confidential and Proprietary Information 13

  14. Slide 14: Cash Flow - Group

    Cash Flow - Group Full Year Full Year Q1 Q2 Q3 Q4 Q1 € million 2010 2011 2011 2011 2011 2011 2012 Net result 242.5 316.2 70.2 81.1 143.2 21.7 12.6 Depreciation 35.8 49.5 12.6 11.2 12.4 13.2 13.1 Working Capital (88.9) (39.2) 47.1 (97.9) (7.3) 18.9 21.9 Restructuring & impairments (7.4) 4.9 (1.7) (0.

  15. Slide 15: Balance Sheet - Group

    Balance Sheet - Group € million Dec 2010 Mar 2011 Jun 2011 Sept 2011 Dec 2011 Mar 2012 Cash and cash equivalents 340 445 358 351 390 405 Other current assets 594 802 844 829 806 773 Property, plant and equipment, net 198 210 224 250 260 259 Goodwill, net 51 48 48 50 52 51 Other Assets 31 52 56 67 74

  16. Slide 16: Bookings & Backlog - Group

    Bookings & Backlog - Group Book-to-bill ratio in 2011 of 0.8 (2010 was 1.2), book-to-bill ratio of 1.2 in Q1 2012 Backlog decreased from €500m at the end of 2010, to €331m at the end of 2011 but increased to €373m in Q1 2012 © 2009 ASM Confidential and Proprietary Information 16

  17. Slide 17: Use of ASM PT Dividends

    Use of ASM PT Dividends Convertible Dividends ASMI shares Bonds Dividend Balance € million Received Repurchased Repurchased pay outs 2007 49.1 -32.9 -5.4 10.8 2008 49.1 -36.5 -27.1 -14.5 2009 21.4 -27.0 -5.6 2010 65.6 -55.8 9.8 2011 87.2 -22.3 64.9 2012 (as per May 15) -13.4 -28.0 -41.4 Total 272.4

  18. Slide 18: ASMI Share Price in 2011

    ASMI Share Price in 2011 80% NVLS 60% 40% ASML 20% 0% -20% AMAT -40% ASMI -60% Nov-11 Sep-11 Feb-11 Feb-12 May-11 Oct-11 Aug-11 Jun-11 Apr-11 Apr-12 Jul-11 Mar-11 Mar-12 Dec-11 Jan-11 Jan-12 Source: google.com/finance • ASMI share price declined 19% in 2011, but recovered in Jan’12 • Comparison same

  19. Slide 19: ASMI Share Price last years

    ASMI Share Price last 5 years 125% ASMI 100% ASML 75% 50% 25% 0% -25% -50% NVLS -75% AMAT -100% Oct-10 Oct-07 Oct-08 Oct-09 Oct-11 Apr-07 Apr-08 Apr-11 Apr-09 Apr-10 Apr-12 Jul-07 Jul-08 Jul-11 Jul-09 Jul-10 Jan-08 Jan-09 Jan-10 Jan-12 Jan-07 Jan-11 Source: google.com/finance ASMI share price increa

  20. Slide 20: Global Sustainability

    Global Sustainability Health and Safety Environment ASM Front-end: Sustained Power Consumption Reductions Despite Increased Activity ASM Back-end Recycled Water: 2010= 35.7%, 2011=37.7% 2012-2013 Focus on Enhancing Design For ASM Front-end targets Global ISO14001 by EHS in ASM Front-end 2013; ASM Ba

  21. Slide 21: Global Sustainability

    Global Sustainability Sustainable Applications/Products Code Of Conduct 2011: 2011 Performance: Continued Progress • Front-end and Back-end supplier to LED market ASM Front-end: • ASM Front-end EPI for power management • Ethics Committee Established Q1 2012 solutions • Suppliers Identified for CY201

  22. Slide 22: Outline

    Outline • Semiconductor Equipment Market in 2011 • ASMI Results in 2011 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions Confidential and Proprietary Information © 2009 ASM 22

  23. Slide 23: Historical development – Back-end

    Historical development – Back-end • Sales impacted by ASM Assembly Systems (SMT) and decline of market • EBIT impacted by lower sales and mix changes © 2009 ASM Confidential and Proprietary Information 23

  24. Slide 24: Summary 2011 – Back-end

    Summary 2011 – Back-end 2011: Downward sales trend leading to lower EBIT% Full Year Full Year Q1 Q2 Q3 Q4 Q1 € million 2010 2011 2011 2011 2011 2011 2012 Net Sales 929.5 1,178.3 316.1 352.4 272.1 237.8 216.2 Gross Margin 435.0 409.8 120.0 132.4 90.1 67.4 65.3 as % of sales 46.8% 34.8% 38.0% 37.6% 33

  25. Slide 25: Bookings & Backlog – Back-end

    Bookings & Backlog – Back-end Book-to-bill ratio in 2011 was 0.8. Q1 2012 shows improved book-to-bill ratio of 1.3 Backlog declined 33% to €226m in 2011, but increased to €284m at the end of Q1 2012 © 2009 ASM Confidential and Proprietary Information 25

  26. Slide 26: ASM Products Back-end

    ASM Products Back-end IC manufacturing - LED manufacturing - Surface Mount Technology Market Application ASM Relative Positioning IC manufacturing • Die bonding • Flip chip bonding  #1 in the equipment market since 2002 • Assembly tools • Wire bonding  Qualified by most IDM’s and • Moulding Subcon

  27. Slide 27: GoCu Wire Bonder

    ASM Back-end Product Highlights • No loss of UPH in Au to Cu conversion • Dual wire clamper improves Mean Time Between Assistance (MTBA) • Auto Pattern Recognition (PR) & Auto Looping GoCu™ Wire Bonder © 2009 ASM Confidential and Proprietary Information 27

  28. Slide 28: SIPLACE DX Placement Machine

    ASM Back-end Product Highlights • Key Value Drivers for SIPLACE DX Placement Machine • Price/Performance • Low Cost-Of-Ownership • Robustness and Ease of Use • Widest Application on a Single Platform • Recently won a few Product Awards in Asia/China © 2009 ASM Confidential and Proprietary Informatio

  29. Slide 29: ASM Back-end What Has Changed in 2011?

    ASM Back-end What Has Changed in 2011? • Acquisition of SMT business raised ASMPT revenue to new record of €1,178m • Addition SMT business further contributes to ASMPT strength of diversified customer base • Strengthened product portfolio in the copper market • Grew Chengdu and added Munich R&D cent

  30. Slide 30: 2011 Highlights Surface Mount Technology

    ASM Back-end 2011 Highlights Surface Mount Technology • Integrated the former SEAS organisation (SMT) • Revenue of €444m million in 2011, growth 18% • Introduced DX series placement machine for Asian market © 2009 ASM Confidential and Proprietary Information 30

  31. Slide 31: ASM Back-end's Competitive Advantages

    ASM Back-end’s Competitive Advantages • #1 position in the IC Assembly & Packaging market since 2002 • Widest product portfolio, ASMPT the only total solution provider • ASMPT has the largest customer base in China • ASMPT has a leadership position in the LED market • SMT provides further growth opp

  32. Slide 32: Outline

    Outline • Semiconductor Equipment Market in 2011 • ASMI Results in 2011 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 32

  33. Slide 33: Historical development – Front-end

    Historical development – Front-end • Front-end strong year in 2011 • Positive EBIT from Q2 2010 onwards © 2009 ASM Confidential and Proprietary Information 33

  34. Slide 34: Summary 2011 – Front-end

    Summary 2011 – Front-end Stable quarterly performance during 2011, last quarters impacted by mix and efficiency Full Year Full Year Q1 Q2 Q3 Q4 Q1 € million 2010 2011 2011 2011 2011 2011 2012 Net Sales 293.4 456.1 116.1 121.7 104.1 114.2 94.8 Gross Margin 114.6 172.3 45.6 47.4 40.6 38.8 31.3 as % of

  35. Slide 35: Bookings & Backlog – Front-end

    Bookings & Backlog – Front-end Backlog decreased quarter over quarter to €89m in Q1 2012 Book-to-bill ratio in 2011 of 0.9 © 2009 ASM Confidential and Proprietary Information 35

  36. Slide 36: ASM Products – Front-end

    ASM Products – Front-end Market Requirements: 32nm→22nm →14nm and beyond Process Application ASM Relative Positioning ALD and PEALD  #1 in the served ALD market • ALD key for High-k Gate technology  Qualified by nearly all Logic • ALD solution (Hafnium oxide) • SDDP-application of PE-ALD manufactu

  37. Slide 37: ASM Front-end What Has Changed in 2011?

    ASM Front-end What Has Changed in 2011? • Front-end revenue grew by 55% • Reached milestone of shipping 500th atomic layer deposition (ALD) reactor for use in semiconductor manufacturing • Expanded the number of (PE)ALD applications qualified for High Volume Manufacturing • Seeded the market with sy

  38. Slide 38: ASM Products – Front-end: Growing Wallet Share

    ASM Products – Front-end Growing Wallet Share With Top Clients ASM Revenue % Key Developments:  Diversification of customer base from Logic to Memory and Foundries  Momentum Asia growing © 2009 ASM Confidential and Proprietary Information 38

  39. Slide 39: ASM Front-end's Competitive Advantages

    ASM Front-end’s Competitive Advantages • Established a leading position in ALD technology, since start in 1999 • Industry shift from Planar Logic to 3D FinFET will require more ALD/PEALD • Alternate Memory devices also likely to require more ALD/PEALD • ASMI is one of the two leading suppliers of Lo

  40. Slide 40: Outline

    Outline • Semiconductor Equipment Market in 2011 • ASMI Results in 2011 • Status ASMI Back-end • Results • Products & Business highlights • Status ASMI Front-end • Results • Products & Business highlights • Market Outlook and Conclusions © 2009 ASM Confidential and Proprietary Information 40

  41. Slide 41: Semi Capital Equipment Outlook

    Semi Capital Equipment Outlook 50 45 40 $B Semi Capital Equipment Year to 35 Year Growth 30 2007-2008 -31.7% 25 2008-2009 -45.4% 20 2009-2010 +142.7% 2010-2011 +8.4% 15 2011-2012 -11.6% 10 2012-2013 +10.5% Gartner Mar 2012 5 0 2006 2007 2008 2009 2010 2011 2012 2013 Market predicted to be down in 20

  42. Slide 42: Applications driving growth

    Applications driving growth • Mobile devices, smartphones, media tablets and Solid State drives • Growing worldwide consumer base using these mobile devices • General lighting for LED • 22nm technology node signifies important inflection • Alternate Memory devices being explored • 2.5D interposer pr

  43. Slide 43: ASM Back-end Markets (i)

    ASM Back-end Markets (i) Assembly and Packaging Equipment 6 +140% +19% 5 -12% 3% -7% 4 $B -27% 3 -31% 2 1 0 2007 2008 2009 2010 2011 2012 2013 Assembly and Packaging Equipment spending is expected to slightly decline in 2012, and to rebound in 2013 Gartner March 2012 © 2009 ASM Confidential and Prop

  44. Slide 44: ASM Back-end Markets (ii) SMT Tools

    ASM Back-end Markets (ii) SMT Tools Market Size ($M) SMT Equipment spending is expected to be down 14% in 2012, up 20% in 2013 ASM SIPLACE Market Intelligence, Q4 2011 © 2009 ASM Confidential and Proprietary Information 44

  45. Slide 45: ASM Back-end Markets (iii) LED

    ASM Back-end Markets (iii) LED – A High Growth Back End Key Growth Drivers: Market Segment (Not Equipment) $M 20,000 For LED Equipment: 2011-2014E CAGR  LEDs provide an energy 18,000 20% efficient, high quality and longer 16,000 life alternative to traditional light sources 14,000  Growth expected

  46. Slide 46: ASM Front-end Markets

    ASM Front-end Markets Wafer Fab Equipment Forecast by technology node 40.0 ≤14 nm +13% 22 nm +7% 35.0 Share of 28nm and 32 nm +145% -13% 22nm of total 30.0 45 nm Equipment spending -33% 65 nm increasing in 2012-2013 25.0 ≥90nm WFE $B 20.0 15.0 -47% 10.0 5.0 0.0 2008 2009 2010 2011 2012 2013 Market F

  47. Slide 47: Q2 2012 Financial Outlook ASMI

    Q2 2012 Financial Outlook ASMI Based upon the current backlog and our current visibility:  We expect in the current quarter our Front-end segment to show a single digit sales decrease and a strong order intake.  In our Back-end segment we foresee, based upon the current backlog, a sales increase i

  48. Slide 48: Summary

    Summary  Back-end continued #1 position in IC Assembly & Packaging market  Acquisition of SMT business raised Back-end revenue to new record of €1,178m in 2011  Front-end revenue growth of 55%, leading revenue growth amongst competitors  Front-end and Back-end net profitable in all quarters of 2

  49. Slide 49: © 2009 ASM Confidential and Proprietary Information

    © 2009 ASM Confidential and Proprietary Information

ASM International — Shareholder Meeting (May 2012) on 6ix