Asm International N.v. · EURONEXT:ASM
Asm International — Q2 2018 Earnings Presentation
25 slides from Asm International's earnings presentation, Jul 24, 2018
Slide 1: Investor Presentation Q2 2018 Results
INVESTOR PRESENTATION Q2 2018 RESULTS July 24, October 26,2018 2016 ASM proprietary information © 2018 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 › Strong growth prospects l ALD market expected to grow by double digits, ASMI has leadership position in ALD l ASMI sales grew at a CAGR of 14% since 2010 compared to 6%* for the WFE market l Additional growth opportunities in Epitaxy and PECVD › Healthy profitability l Gr
Slide 4: 2018 Q2 Key Results
2018 Q2 KEY RESULTS (restated) (restated) Q2 2017 Q1 2018 Q2 2018 2017 New orders 205.9 206.5 175.9 773.7 Net sales 214.5 159.0 208.7 730.9 Gross profit margin % 43.4% 37.8% 42.1% 41.3% Operating results 42.7 11.8 38.3 108.9 Normalized result from investments 30.9 16.3 21.6 112.4 Amortization intang
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET Equipment market segments 2018 (US$) › ASM focuses on deposition equipment › ASM is a market leader in ALD Etch and Clean Deposition › Positions in Epitaxy, PECVD 16.6bn 16.0bn and Vertical Furnaces Process Diagnostics Lithography 6.4bn 12.2bn Other Wafer Processes Ass
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › WFE to increase by 10% in 2018 according to Gartner Wafer Fab Equipment Spending › Investments in leading edge equipment remain the key driver US$bn › Note that ASMI’s statement on the 60 +36.7% +10.1% -9.5% +6.5% 50 -9.6% WFE outlook is as follows: “For +11.4% 40 2018, ge
Slide 7: Semiconductor Growth Drivers
SEMICONDUCTOR GROWTH DRIVERS SEMICONDUCTOR SALES BY KEY APPLICATION US$bn CAGR ‘16-21 400 Server +15% 350 Industrial Electronics +12% 300 Automotive +12% 250 200 Solid State Drive +22% 150 Smartphone +7% 100 Hybrid PC & Tablet +5% 50 PC Desktop, Notebook & +1% 0 Mobile 2015 2016 2017 2018 2019 2020
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn Strongest growth in 60 leading edge nodes 50 40 7nm and below 10nm 30 32-14nm 45nm 20 65nm and above 10 0 2015 2016 2017 2018 2019 2020 2021 Gartner, July 2018 › Advanced nodes: market segments with high expected growth › 45nm mainly driven by 3D NAND spend
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law l Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, ability to deposit new materials l Device scaling, new materials and 3D architectures drive increased demand fo
Slide 10: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD l Developing ALD technology since 1999 l Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP port
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION ASMI revenue › Engaged with all of the top-10 semiconductor capital 100% equipment spenders 75% 50% 25% 0% 2012 2013 2014 2015 2016 2017 Top 3 Nr 4-10 Rest Growing share of wallet with top clients July 24, 2018 | ASM proprietary information | 11
Slide 12: Highlights
HIGHLIGHTS › Solid growth expected for the ALD market l Single wafer ALD market showed a clear improvement in 2017 l We expect the single wafer ALD market to reach a size of approx. US$1.5 billion by ‘20-’21 › Introduction of Synergis ALD tool l Combining ALD capabilities of Emerald and Pulsar to
Slide 13: ASMPT Results
ASMPT RESULTS Q2 2017 Q1 2018 Q2 2018 Sales ASMPT (HK$ million) 4,424 4,346 5,270 Net profit ASMPT (€ million, 100% based) 88 65 85 Normalized result from investments (including ASMI’s share of ASMPT net profit) 30.9 16.3 21.6 Amortization intangible assets resulting from the sale of ASMPT stake in
Slide 14: Financial Overview
FINANCIAL OVERVIEW July 24, 2018 | ASM proprietary information | 14
Slide 15: Q2 2018 Highlights
Q2 2018 HIGHLIGHTS › Revenues up 31% q-o-q and down 3% y-o-y › Bookings down 15% q-o-q and y-o-y. Book-to-bill ratio of 0.8 › Q2 backlog of €189m compared to €218m in Q1 › Gross margin of 42.1% in Q2 vs. 37.8% in Q1. The impact of new product introductions moderated from 2% points in Q1 to 1% point
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q3, on a currency comparable level, we expect sales of €180-200 million and an order intake of € 200-230 million. Q3 reflects still some uncertainty around the exact timing of individual tools. For 2018, general expecta
Slide 17: Net Earnings
NET EARNINGS (restated) Q2 2018 vs Q2 2018 vs EUR million Q2 2017 Q1 2018 Q2 2018 Q1 2018 Q2 2017 New orders 205.9 206.5 175.9 (15)% (15)% Backlog 173.2 217.9 189.1 (13)% 9% Book-to-bill 1.0 1.3 0.8 Net sales 214.5 159.0 208.7 31% (3)% Gross profit 93.2 60.2 87.9 27.7 (5.3) Gross profit margin % 43.
Slide 18: R&D Expenditure
R&D EXPENDITURE EUR million Q2 2017 Q1 2018 Q2 2018 R&D expenditure (29.1) (28.4) (29.8) Capitalized development expenditure 8.8 10.1 12.7 Amortization capitalized development expenditure (3.5) (2.8) (2.8) Impairment capitalized development expenditure (1.4) - - R&D expenses (25.1) (21.0) (19.9) Jul
Slide 19: Cash Flow
CASH FLOW EUR million Q2 2017 Q2 2018 Normalized net earnings 60.6 62.4 Depreciation, amortization and impairments 13.6 13.1 Result from investments (30.9) (21.6) Other adjustments 14.6 (1.0) Income tax paid (0.0) (0.5) Change in working capital (51.5) (57.7) Net cash from operating activities 1.3 (
Slide 20: Balance Sheet
BALANCE SHEET EUR million Dec 31, 2017 Jun 30, 2018 Cash and cash equivalents 836 651 Accounts receivable 163 170 Inventories 143 167 Other current assets 20 26 Investments and associates 731 764 Property, plant and equipment 107 124 Goodwill and other intangible assets 125 143 Other non-current ass
Slide 21: Working Capital
WORKING CAPITAL EUR million Days 250 140 200 120 150 100 100 80 50 60 0 40 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 13 14 15 16 17 18 13 14 15 16 17 18 Working capital Quarterly sales Days of working capital Numbers based on reported financials July 2
Slide 22: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 800 160 250 700 140 200 600 120 500 100 150 400 80 100 300 60 200 40 50 100 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 0 2010 2011 2012 2013 2014 2015 2016 2017 13 14 15 16 17 18 Net Sales (lhs) EBIT (rhs) Bookings Backlog
Slide 23: Breakdown Sales
BREAKDOWN SALES (restated) (restated) (restated) (restated) (restated) 17Q1 17Q2 17Q3 17Q4 FY17 18Q1 18Q2 Equipment sales 119.4 172.5 136.9 138.5 567.3 120.3 160.7 Spares & services sales 37.4 42.0 41.2 43.0 163.6 38.6 48.0 Net sales 156.8 214.5 178.1 181.5 730.9 159.0 208.7 July 24, 2018 | ASM prop
Slide 24: Restated Quarters 2017
RESTATED QUARTERS 2017 (restated) (restated) (restated) (restated) (restated) 17Q1 17Q2 17Q3 17Q4 FY17 New orders 204.2 205.9 160.4 203.2 773.7 Net sales 156.8 214.5 178.1 181.5 730.9 Gross profit margin % 43.0% 43.4% 38.8% 39.6% 41.3% Operating results 19.4 42.7 20.8 26.0 108.9 Normalized result fr
Slide 25: July 24, 2018 | ASM proprietary information | 25
July 24, 2018 | ASM proprietary information | 25