Asm International N.v. · EURONEXT:ASM

Asm International — Shareholder Meeting (May 2014)

37 slides from Asm International's shareholder meeting presentation, May 21, 2014

  1. Slide 1: ASMI Annual Meeting of Shareholders

    ASMI ANNUAL MEETING OF SHAREHOLDERS Chuck del Prado, President & CEO May 21, 2014 ASMI Annual Meeting of Shareholders © 2014 ASMI

  2. 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

  3. Slide 3: Outline

    OUTLINE › Semiconductor equipment market in 2013 › Reduction of stake in ASMPT › ASMI results in 2013 › Corporate Responsibility › Status ASMI • Results • Products & Business highlights › Market outlook and conclusions May 21, 2014 | ASMI Annual Meeting of Shareholders | 3

  4. Slide 4: Outline

    OUTLINE › Semiconductor equipment market in 2013 › Reduction of stake in ASMPT › ASMI results in 2013 › Corporate Responsibility › Status ASMI • Results • Products & Business highlights › Market outlook and conclusions May 21, 2014 | ASMI Annual Meeting of Shareholders | 4

  5. Slide 5: Our industry declined further in 2013

    OUR INDUSTRY DECLINED FURTHER IN 2013 SEMI CAPITAL EQUIPMENT (USD billion) 50 +10,8% +142,1% 40 -16,1% -11,6% 30 20 -45,4% 10 0 2008 2009 2010 2011 2012 2013 Source: Gartner, April 2014 Semiconductor capital equipment was down in both 2012 and 2013 The market began to improve by the second half May

  6. Slide 6: Wafer fab equipment was down in 2013

    WAFER FAB EQUIPMENT WAS DOWN IN 2013 WAFER FAB EQUIPMENT BY DEVICE TYPE (USD billion) 40 +15% 35 +145% -18% 30 -8% -33% 25 20 Other 15 -47% Memory 10 Logic 5 0 Foundry 2008 2009 2010 2011 2012 2013 Source: Gartner, April 2014 2013 WFE spending decreased by 8% The Logic market declined while memory i

  7. Slide 7: Outline

    OUTLINE › Semiconductor equipment market in 2013 › Reduction of stake in ASMPT › ASMI results in 2013 › Corporate Responsibility › Status ASMI • Results • Products & Business highlights › Market outlook and conclusions May 21, 2014 | ASMI Annual Meeting of Shareholders | 7

  8. Slide 8: Impact 12% sale of ASMPT on ASMI results

    IMPACT 12% SALE OF ASMPT ON ASMI RESULTS › 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 projected at €22 million for full year 2014 EUR million Total 2013 Q1 2014 Sales ASMPT 1,055.5

  9. Slide 9: Outline

    OUTLINE › Semiconductor equipment market in 2013 › Reduction of stake in ASMPT › ASMI results in 2013 › Corporate Responsibility › Status ASMI • Results • Products & Business highlights › Market outlook and conclusions May 21, 2014 | ASMI Annual Meeting of Shareholders | 9

  10. Slide 10: Key highlights – 2013

    KEY HIGHLIGHTS – 2013 › ASMI revenues up 22% y-o-y › ASMI EBIT margin up from 0.4% in 2012 to 10.4% in 2013 › Cash flow from operations of €48 million in 2013  Proposal to ASMI 2014 AGM for dividend of €0.50 per share › Comparable net earnings of €45 million up from €7 million in 2012  Excluding €

  11. Slide 11: Net earnings – Group

    NET EARNINGS – GROUP comparable comparable comparable FULL YEAR FULL YEAR FULL YEAR FULL YEAR Q1 Q2 Q3 Q4 Q1 EUR million 2012 2012 2013 2013 2013 2013 2013 2013 2014 Front-end 370.4 370.4 452.0 452.0 80.0 128.6 116.4 126.9 150.7 Back-end 1,047.7 - 160.3 - - - - - - NET SALES 1,418.1 370.4 612.3 452.

  12. Slide 12: Balance sheet – Group

    BALANCE SHEET – GROUP comparable EUR million DEC 2012 DEC 2012 MAR 2013 JUN 2013 SEP 2013 DEC 2013 MAR 2014 Cash and cash equivalents 291 145 565 535 304 312 371 Other current assets 818 205 208 226 202 206 206 Property, plant and equipment, net 275 64 61 55 51 57 58 Goodwill, net 52 12 12 11 11 11

  13. Slide 13: Working capital – Group

    WORKING CAPITAL – GROUP VALUE (EUR MILLION) 600 500 400 300 200 100 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 11 12 12 12 12 13 13 13 13 14 Front-end Back-end DAYS 140 120 100 80 60 40 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 11 12 12 12 12 13 13 13 13 14 Front-end Back-end Group May 21, 2014 | ASMI Annual Meeting of Sh

  14. Slide 14: Cash flow – Group

    CASH FLOW – GROUP comparable comparable comparable FULL YEAR FULL YEAR FULL YEAR FULL YEAR Q1 Q2 Q3 Q4 Q1 EUR million 2012 2012 2013 2013 2013 2013 2013 2013 2014 Net result 40.4 7.1 1,049.3 1,049.3 1,410.2 (23.4) (0.9) (336.6) 27.1 Depreciation 56.9 18.8 28.5 20.7 4.8 5.1 5.1 5.7 5.1 Working Capita

  15. Slide 15: Total shareholder return in 2012 and 2013

    TOTAL SHAREHOLDER RETURN IN 2012 AND 2013 › Comparison same sector companies › Includes dividend payouts and redistribution of capital May 21, 2014 | ASMI Annual Meeting of Shareholders | 15

  16. Slide 16: Total shareholder return last years

    TOTAL SHAREHOLDER RETURN LAST 5 YEARS › Comparison same sector companies › Includes dividend payouts and redistribution of capital May 21, 2014 | ASMI Annual Meeting of Shareholders | 16

  17. Slide 17: Implied value

    IMPLIED VALUE › Strong improvement in implied value from negative EUR 400-500 million in May 2012 to more than EUR 400 million on May 15 2014 May 21, 2014 | ASMI Annual Meeting of Shareholders | 17

  18. Slide 18: Outline

    OUTLINE › Semiconductor equipment market in 2013 › Reduction of stake in ASMPT › ASMI results in 2013 › Corporate Responsibility › Status ASMI • Results • Products & Business highlights › Market outlook and conclusions May 21, 2014 | ASMI Annual Meeting of Shareholders | 18

  19. Slide 19: Corporate responsibility

    CORPORATE RESPONSIBILITY › ASMI follows Electronics Industry Citizenship Coalition (EICC) principles › ASMI conducted EICC self assessments in 2013, all were “Low Risk” › Current status:  Customer audits in 2013 on EICC compliance were satisfactory  ASMI’s Contract Manufacturers also committed to

  20. Slide 20: Health & safety

    HEALTH & SAFETY GLOBAL RECORDABLE CASE RATE (RCR)* 1,25 1 0,75 0,5 0,25 0 2010 2011 2012 2013 2013 2013 SEMI (US BOL Data) RCR Actual Target * Recordable cases per 100 employees › Achieved 2013 RCR of 0.30, lowest in ASM recorded history • We out-performed most of the industry peers › Underlying Man

  21. Slide 21: Environment

    ENVIRONMENT › Certified Global Environmental Management System in 2013 (ISO 14001) › Regional Scorecards implemented in 2014 › Key targets in line with SASB Semiconductor Industry › Progress made or target met in 3/4 of goals: ENVIRONMENT SCORECARD 2012 2013 OBJECTIVE UNIT BASELINE ACTUAL METRIC TON

  22. Slide 22: Outline

    OUTLINE › Semiconductor equipment market in 2013 › Reduction of stake in ASMPT › ASMI results in 2013 › Corporate Responsibility › Status ASMI • Results • Products & Business highlights › Market outlook and conclusions May 21, 2014 | ASMI Annual Meeting of Shareholders | 22

  23. Slide 23: Historical development – Front-end

    HISTORICAL DEVELOPMENT – FRONT-END € 160 € 40 EBIT in mln Net Sales in mln € 140 € 30 € 120 € 20 € 100 € 10 € 80 €0 € 60 -€ 10 € 40 € 20 -€ 20 Net Sales EBIT €0 -€ 30 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 08 09 10 11 12 13 14 May 21, 2014 | ASMI Annual Meeting of

  24. Slide 24: Summary 2013 – Front-end

    SUMMARY 2013 – FRONT-END FULL YEAR FULL YEAR Q1 Q2 Q3 Q4 Q1 EUR million 2012 2013 2013 2013 2013 2013 2014 Net Sales 370.4 452.0 80.0 128.6 116.4 126.9 150.7 GrossTITLE Margin 124.5 176.2 30.2 50.5 45.6 49.9 65.9 as % of sales 33.6% 39.0% 37.7% 39.3% 39.1% 39.3% 43.7% Research and development (58.7)

  25. Slide 25: Bookings & backlog – Front-end

    BOOKINGS & BACKLOG – FRONT-END 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 08 09 10 11 12 13 14 Bookings Backlog May 21, 2014 | ASMI Annual Meeting of Shareholders | 25

  26. Slide 26: Outline

    OUTLINE › Semiconductor equipment market in 2013 › Reduction of stake in ASMPT › ASMI results in 2013 › Corporate Responsibility › Status ASMI • Results • Products & Business highlights › Market outlook and conclusions May 21, 2014 | ASMI Annual Meeting of Shareholders | 26

  27. Slide 27: Products & business highlights

    PRODUCTS & BUSINESS HIGHLIGHTS › ASM focuses on deposition equipment › ASM has a leading position in ALD and PEALD: • ALD for High-k Metal Gates XP8 • PEALD spacers for Double Patterning PEALD, PECVD • Additional applications in qualification Pulsar XP ALD High-k › Positions in Epitaxy, PECVD and Ve

  28. Slide 28: What has changed in 2013?

    WHAT HAS CHANGED IN 2013? › ALD and PEALD further established as mainstream technologies  ALD and PEALD market outperformed the broader equipment market › Strong revenue momentum  ASMI grew revenue by 22% in 2013  Outperforming the overall equipment market, which declined 8% › Improved profitabil

  29. Slide 29: 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  Device scaling, new materials and vertical transistors › Strong growth of ALD market  Drivers are further deplo

  30. Slide 30: ASM's competitive advantages

    ASM’S COMPETITIVE ADVANTAGES ASM’s ALD films are deposited conformally on top of the Fin ALD metal gate electrode ALD high-k gate dielectric Source: Chipworks Fin FinFET cross section PEALD spacer ASM’s PEALD SiO films are deposited photoresist conformally on photoresist Source: ASM 2010 Cross secti

  31. Slide 31: Growing wallet share with top clients

    GROWING WALLET SHARE WITH TOP CLIENTS ASMI REVENUE › Wider adoption amongst 100% top capex customers 75% › Diversification of customer base from Logic to Memory 50% and Foundries 25% › Weight of Asia growing 0% 2009 2010 2011 2012 2013 Top 3 Nr 4-10 Rest Growing share of wallet with top clients May

  32. Slide 32: Outline

    OUTLINE › Semiconductor equipment market in 2013 › Reduction of stake in ASMPT › ASMI results in 2013 › Corporate Responsibility › Status ASMI • Results • Products & Business highlights › Market outlook and conclusions May 21, 2014 | ASMI Annual Meeting of Shareholders | 32

  33. Slide 33: Semiconductor growth drivers

    SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION (USD billion) CAGR ‘13-’18 160 Premium Smartphone 140 +6% Utility/Basic Smartphone 120 Traditional Mobile Phone 100 +14% Media Tablet, Utility/Basic 80 -20% Media Tablet, Premium 60 +18% +9% 40 PC, Ultramobile +22% 20 -8% PC, Notebo

  34. Slide 34: ASM markets

    ASM MARKETS WAFER FAB EQUIPMENT BY TECHNOLOGY NODE (USD billion) 40,0 +15% +11% 35,0 +145% -18% +13% 30,0 -8% 25,0 ≤ 10 nm 14 nm 20,0 22 nm 15,0 -47% 32 nm 10,0 45 nm 5,0 ≥ 65 nm 0,0 2009 2010 2011 2012 2013 2014 2015 Source: Gartner, April 2014 Forecast shows strong growth in advanced technology no

  35. Slide 35: Q2 2014 financial outlook ASMI

    Q2 2014 FINANCIAL OUTLOOK ASMI Based upon the current backlog and our current visibility: For Q2 2014 we expect for sales a low single digit decrease, on a currency comparable base. For the second half of 2014, the current visibility remains limited. After the very high order intake in Q1, the Q2 20

  36. Slide 36: Summary

    SUMMARY › Reduced shareholding in ASMPT from 52% to 40% in March 2013 › Revenue increased 22% compared to 2012, outperforming the overall wafer fab equipment market › ALD and PEALD strongly developed further traction in 2013 › Achieved strong gross margin improvements in 2013 › Company believes to b

  37. Slide 37: May 21, 2014 | ASMI Annual Meeting of Shareholders | 37

    May 21, 2014 | ASMI Annual Meeting of Shareholders | 37

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