Asm International N.v. · EURONEXT:ASM
Asm International — Q2 2013 Earnings Presentation
24 slides from Asm International's earnings presentation, Jul 25, 2013
Slide 1: Investor presentation
Investor presentation 25 July 2013 © 2009 ASM Proprietary Information 1
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
Slide 3: Investment Highlights
Investment Highlights Strong offering in Front-end equipment Deposition represents a US$ 7.5bn market, growing to US$ 10.8bn in 2016 (VLSI Research) Leading position in our target market segments Technology enabling new materials and new device integration roadmaps Fast growth ALD / PEALD
Slide 4: Q2 Financial Highlights
Q2 Financial Highlights Pro-forma Pro-forma EUR million Q2 2012 Q1 2013 Q2 2013 New orders 85.5 105.9 128.4 Net sales 86.5 80.0 128.6 Gross profit margin % 33.0% 37.7% 39.3% Operating results (1.9) 1.1 16.2 Result from investments (excl. amortization and fair value purchase price allocation) 16.5 (0
Slide 5: Global Semiconductor Equipment Market
Global Semiconductor Equipment Market 2012 ($ 38.1 Billion) Etch & Clean Assembly $ 6.8 B $ 4.2 B Test $ 3.7 B Other Wafer Process $ 7.5 B Lithography Deposition $ 8.4 B $ 7.5 B Source: VLSI Research Inc., January, 2013 © 2009 ASM Proprietary Information 5
Slide 6: ASMI's Addressable Markets
ASMI’s Addressable Markets $M ASM addressable IC Deposition market by Sub-Segment 7000 Key Growth Drivers: 6000 Spending result of need to 5000 advance towards 20/14nm and beyond and by capacity 4000 Diffusion/Furnace increases Epitaxy 3000 PECVD Logic and Foundry spending to ALD remain healthy
Slide 7: Semi Capital Equipment Outlook
Semi Capital Equipment Outlook 50 45 40 $B 35 Semi Capital Equipment Year to Year Growth 30 2008-2009 -45.4% 25 2009-2010 +142.1% 20 2010-2011 +10.8% 15 2011-2012 -15.4% 2012-2013 -8.2% 10 Gartner Mar 2013 2013-2014 +18.6% 5 0 2008 2009 2010 2011 2012 2013 2014 Market predicted to be down in 2013 by
Slide 8: Semiconductor Market Through 2017: PC versus smartphones
Semiconductor Market Through 2017 PC versus smartphones Semiconductor Sales1 ($B) Semiconductor Dollars Per Unit1 ($) 180 160 Ultramobile PC 160 140 Notebook PC 140 PC 120 Desk-based PC 120 100 Utility/Basic Media Tablet 100 Premium Media Tablet 80 80 60 Premium Smartphone 60 Media Tablet 40 40 Smar
Slide 9: Key Market Drivers: Wafer Fab Equipment Forecast by node
Key market Drivers Wafer Fab Equipment Forecast by node Wafer Fab Equipment by Node 45,000 40,000 Opportunity for WFE 35,000 share increase 30,000 14 nm & Below 25,000 22 nm $M 32 nm 20,000 45 nm 65 nm 90 nm & Above 15,000 10,000 5,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Gartner Dec, 2012
Slide 10: ASMI's Competitive Advantages
ASMI’s Competitive Advantages Established a leading position in ALD technology, since start in 1999 Shift from Planar Logic to 3D FinFET will require more ALD/PEALD PEALD offered on high productivity platform ASMI is one of the two leading suppliers of PECVD Low-k films In the EPI market A
Slide 11: Growing Wallet Share With Top Clients
Growing Wallet Share With Top Clients ASMI Revenue % Key Developments: Diversification of customer base from Logic to Memory and Foundries (recently driven by ALD/PEALD) Strong relationships with the top manufacturers in the industry Momentum Asia growing © 2009 ASM Proprietary Information 11
Slide 12: ASMI Products
ASMI Products Market Requirements: 32nm→22nm →14nm and beyond Process Application ASM Relative Positioning ALD and PEALD • ALD key for High-k Metal Gate #1 in the served ALD market technology Qualified by nearly all Logic • ALD solution (Hafnium oxide) • 3D FinFET requires more manufacturers • P
Slide 13: ASMI Products: Two new high productivity platforms
ASMI Products Two new high productivity platforms have been introduced in 2012 High productivity XP cluster with 4 Epi reactors IntrepidTM XP Dragon® XP8 Epitaxy PECVD Eagle® XP8 PEALD High throughput, low CoO single wafer deposition tool © 2009 ASM Proprietary Information 13
Slide 14: Highlights
Highlights ALD and PEALD strongly developed further traction Manufacturing consolidated into 1 location in Singapore since 2010 Significantly streamlined R&D, Product Management and G&A Gross Margin improvement focus Inefficiency issues solved Several cost measures in implementation Fu
Slide 15: Financial Overview
Financial Overview © 2009 ASM Proprietary Information 15
Slide 16: Key Highlights – Q2 2013
Key Highlights – Q2 2013 • Revenues up 61% q-o-q and 49% y-o-y on a pro-forma basis • Bookings up 21% q-o-q and 50% y-o-y, book-to-bill ratio of 1.0 • Q1 Backlog of € 117m (0.9 X Q2 sales) • EBIT margin of 12.6% up from 1.4% pro-forma in Q1 2013 and -2.2% pro-forma in Q2 2012 • Cash flow from operat
Slide 17: Net Earnings Quarter
Net Earnings Quarter Change Change Q1 2013 Q2 2012 Pro-forma Q2 Pro-forma Q1 to to EUR million 2012 2013 Q2 2013 Q2 2013 Q2 2013 New orders 85.8 105.9 128.4 21% 50% Backlog 92.2 119.9 117.0 (2)% 27% Book-to-bill 1.0 1.3 1.0 Net sales 86.5 80.0 128.6 61% 49% Gross profit 28.5 30.2 50.5 67% 77% Gross
Slide 18: Balance Sheet
Balance Sheet Pro-forma Pro-forma June 30, December 31, June 30, EUR million 2012 2012 2013 Cash and cash equivalents 207.6 145.1 535.4 Accounts receivable 59.7 62.6 85.3 Inventories 125.8 122.1 122.7 Other current assets 24.3 20.3 17.5 Total current assets 417.4 350.0 761.0 Investments and associat
Slide 19: Cash Flow
Cash Flow Pro-forma Proforma EUR million Q2 2012 Q1 2013 Q2 2013 Net earnings 1.3 3.1 (23.4) Adjustments to cash from operating activities: Depreciation and amortization 4.7 4.8 5.1 Income tax (2.9) (3.0) 3.0 Amortization PPA intangibles and fair value adjustments — — 34.0 Other adjustments 2.0 1.6
Slide 20: Results ASMPT
Results ASMPT Pro-forma Q2 Pro-forma Q1 As of 15 March 2013, the back- 2012 2013 Q2 2013 end activities are deconsolidated. Sales ASMPT 291 207 283 Net profit ASMPT 32 0.4 23 As of then, our 40% share of Net profit ASMPT attributable to ASMI 16.5 (0.5) 9.2 ASMPT net profits is included in Remeasur
Slide 21: Historical development
Historical development © 2009 ASM Proprietary Information 21
Slide 22: Bookings & Backlog
Bookings & Backlog Backlog decreased 2% to €117m Book-to-Bill ratio decreased to 1.0 (Q1: 1.3) © 2009 ASM Proprietary Information 22
Slide 23: Financial Outlook
Financial Outlook Based upon the current backlog and our current visibility: Although Front-end sales in Q3 are expected to remain on a high level, we foresee a low double digit decrease as compared to Q2. Q3 order intake is expected to show a double digit decrease as compared to Q2. © 2009 ASM Prop
Slide 24: Selected Front-End Products
Selected Front-End Products Eagle® XP Pulsar® PECVD ALD ALD High-k leader PEALD Common Platform Epsilon® 3200 A412 Epitaxy Vertical Furnace Advanced Highest strain productivity layers © 2009 ASM Proprietary Information 24