Asm International N.v. · EURONEXT:ASM
Asm International — Shareholder Meeting (May 2010)
42 slides from Asm International's shareholder meeting presentation, May 20, 2010
Slide 1: ASMI Annual Meeting of Shareholders
ASMI Annual Meeting of Shareholders May 20 2010 Chuck del Prado President & CEO © ASM
Slide 2: Safe Harbor Statements
Safe Harbor 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 results to differ materially from those in the forward- looking statements. These incl
Slide 3: Outline
Outline • Semiconductor Equipment Market • ASMI Results in 2009 • Status ASMI Back-end • Market dynamics • Product update • Status ASMI Front-end • Restructuring Program • Technology & Penetration update • ASMI Financing • Market Outlook and Conclusions © ASM 3
Slide 4: Our Industry experienced Steep Drop and is now in Fast Recovery
Our Industry experienced Steep Drop and is now in Fast Recovery 50 45 40 Semi Capital Equip ($B) 35 30 Semi Capital Equipment Year to Year Growth 25 April ’08 FC March ’10 FC 20 2007-2008 -17.1% -31.6% 15 2008-2009 +12.2% -45.6% 2009-2010 +13.8% +76.0% 10 Gartner Apr '08 2010-2011 -8.7% +23.8% 5 Gar
Slide 5: In Front-end the Key Market Drivers of the recovery are
In Front-end the Key Market Drivers of the recovery are….. Wafer Fab Equipment Capex by device Other Memory 40 +10% Logic 35 Foundry 30 -33% +77% 25 WFE $B +64% 20 -46% +87% 15 -54% 10 -58% +41% 5 -45% +118% +8% 0 2007 2008 2009 2010 • Spending in 2009 down compared to 2008 (-46%) • Foundry only seg
Slide 6: Outline
Outline • Semiconductor Equipment Market • ASMI Results in 2009 • Status ASMI Back-end • Market dynamics • Product update • Status ASMI Front-end • Restructuring Program • Technology & Penetration update • ASMI Financing • Market Outlook and Conclusions © ASM 6
Slide 7: ASMI Revenue climbed out of trough in 2H of 2009
ASMI Revenue climbed out of trough in 2H of 2009 • Company-wide • FY09: down 21 % versus FY08 • 1H09: down 49 % versus 1H08 • 2H09: up 12 % versus 2H08 and up 83% versus 1H09 • 1Q10: up 146% versus 1Q09 • For Back-end: • Recovery started as of Q2 2009 • For Front-end: • Recovery started as of Q3 200
Slide 8: Consolidated Results ASMI M€
Consolidated Results ASMI M€ FY Q1 Q2 Q3 Q4 Q1 09 09 09 09 09 10 Sales* 591 89 120 180 202 219 Gross Margin %* 34.8 23.9 28.2 38.3 40.4 42.2 R&D and SG&A* 170 42 40 43 45 44 EBIT* 34 (21) (7) 26 36 48 Net result** (107) (23) (56) (16) (12) 4 Cash Flow from operations 63 6 (6) 32 31 26 * Before impai
Slide 9: ASMI Working Capital M€
ASMI Working Capital M€ 300 250 200 Working capital ASMI Working capital Front-end 150 Working capital Back-end 100 50 0 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 © ASM 9
Slide 10: 2009 Highlights for Back-end and Front-End
2009 Highlights for Back-end and Front-End are…. • Back-end • Bookings reached new records in 2H 2009 • Strong growth in LED besides IC • Front-end • Achieved significant reduction in cost base • Strategic additional ALD-customer penetrations made © ASM 10
Slide 11: ASMI Share Price in 2009
ASMI Share Price in 2009 May 14 2010: ASMI € 17.83 ($ 22.51) ASMI ASML NVLS AMAT Source: Yahoo! • ASMI share price increases 2.5x in 2009 • Comparison same sector companies • ASMI received Euronext award for best performing Midcap-company in 2009 © ASM 11
Slide 12: ASMI Share Price last 5 years
ASMI Share Price last 5 years May 14 2010: ASMI € 17.83 ($ 22.51) ASMI ASML AMAT NVLS Source: Yahoo! ASMI share price increases 50% over 5 year period © ASM 12
Slide 13: Global Sustainability
Global Sustainability • ASMI is committed to • High standards for employee and product safety • High standards for energy conservation and environmental quality This commitment is part of ASMI’s Code of Ethics • ASMI Global Health & Safety program • Pro-active Management of Safety • Use of global Ke
Slide 14: Outline
Outline • Semiconductor Equipment Market in 2009 • ASMI Results in 2009 • Status ASM Back-end • Market dynamics • Product update • Status ASM Front-end • Restructuring Program • Technology & Penetration update • ASMI Financing • Market Outlook and Conclusions © ASM 14
Slide 15: Operations Back-end M€
Operations Back-end M€ Q1 Q2 Q3 Q4 Q1 09 09 09 09 10 Sales 43 92 142 153 165 Gross Margin % 21.2 36.2 43.8 44.5 45.1 OPEX* 16 17 21 23 25 EBIT (7) 16 41 45 50 Net result (8) 15 37 40 43 Cash Flow from operations 1 14 44 30 25 * Opex includes R&D and SG&A © ASM 15
Slide 16: ASM Back-End Record Quarterly Bookings as of Q3-09
ASM Back-End Record Quarterly Bookings as of Q3-09 US$ (M) 384 400 350 284 300 234 250 208 207 197 188 180 183 176 200 164 161 150 150 124 120 100 63 35 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2008 2009 2010 © ASM 16
Slide 17: ASM Back-End 2009 Market Dynamics
ASM Back-End 2009 Market Dynamics • Revenue • 1H 2009: growth in China market and LED • 2H 2009: broad recovery from all application markets and geographical areas • Solid and diversified customer base • Product offerings and market penetration • Total solution approach continues to help in winning
Slide 18: ASM Back-End Introduced Eagle Xtreme
ASM Back-End Introduced Eagle Xtreme Multi-tier Looping Eagle Xtreme - Wire Bonder Stacked Die Cu Wire Bonding for highly Integrated Products Ultra fine pitch capability of 30 µm Bond placement control of 2 µm @ 3 sigma Capable of process wires from 15 µm to 50 µm in diameter Fine Pitch 30 µm
Slide 19: ASM Back-End Total Solution for LED Packaging Process
ASM Back-End Total Solution for LED Packaging Process Material Die Sorting Die Bonding Curing - Leadframe & Wafer Post Curing Encapsulation / Phosphor Application Wire Bonding Lens Attach / Jetting Lens Molding Singulation Testing, Sorting and Taping Finished © ASM 19
Slide 20: ASM Back-End Power Applications
ASM Back-End Power Applications eClip Automatic Clip Bonding System HA501 Automatic Heavy Aluminum Bonding System © ASM 20
Slide 21: Outline
Outline • Semiconductor Equipment Market in 2009 • ASMI Results in 2009 • Status ASMI Back-end • Market dynamics • Product update • Status ASMI Front-end • Restructuring Program • Technology & Penetration update • ASMI Financing • Market Outlook and Conclusions © ASM 21
Slide 22: ASM Front-End Restructuring Program PERFORM!
ASM Front-End Restructuring Program PERFORM! PERFORM! is about: • Improving Front-End’s financial performance through the cycles • Changing organizational structure from Regional to Global • Strengthening Commercialization • Execution & Operational Excellence • Focus and stronger Accountability • En
Slide 23: PERFORM! measures taken (sales, service, operations)
ASM Front-End PERFORM! measures taken…….. • Established Global Sales and Service • From Technical/Product focus to Customer focus (“Commercialization”) • Voice of the Customer now at the highest level of organization • Accelerated penetration into Memory and Foundry development lines in 2009 • Estab
Slide 24: PERFORM! measures taken (R&D, G&A)
ASM Front-End PERFORM! measures taken…….. • R&D and Product Management • Disciplined prioritization of R&D-programs • All single wafer applications to one product platform by 2010 • New Platform Group that owns single wafer product platform • Allows Product Lines to focus • Merged product lines into
Slide 25: PERFORM! resulting into
ASM Front-End PERFORM! resulting into…… • Significant Reduction of Cost Base and Restructuring of the Company • Significant Reduction of Working Capital by year end 2009 • On schedule in reducing our cost base by mid 2010 by 40% versus the Q4 2008 runrate • At end of Q1 2010 Cost Base reduced by 33%
Slide 26: Operations Front-end M€
Operations Front-end M€ Q1 Q2 Q3 Q4 Q1 09 09 09 09 10 Sales* 46 28 38 49 54 Gross Margin %* 26.5 1.7 17.7 27.7 33.4 OPEX*/** 34 30 28 27 25 EBIT* (14) (22) (15) (8) (1) Net result (19) (64) (35) (34) (19) Cash Flow from operations 7 (20) (12) 1 1 * Before impairment inventories and restructuring exp
Slide 27: ASM Technologies focused on extending Moore's Law
ASM Front-End ASM Technologies focused on extending Moore’s Law 1990 1995 2000 2005 2010 2015 2020 2025 Scaling enabled by Litho Scaling enabled by Materials Low-k Scaling enabled by 3D Strained Si High-k SDDP ASM Key Technologies are FinFETs required for device scaling 3D SIC © ASM 27
Slide 28: ASM has broad ALD Portfolio
ASM Front-End ASM has broad ALD Portfolio Precise film control for high-k metal gate Thermal ALD transistors Original ASM Innovations Batch Thermal ALD Lowest cost ALD deposition method Plasma Enhanced ALD (PEALD) Low temperature conformal dielectric films ASM is very well positioned and the only co
Slide 29: Key Customer ALD Penetrations in 2009 and Q1-10
ASM Front-End We made Key Customer ALD Penetrations in 2009 and Q1-10 Customer Penetration Site • 12 Key customer penetrations in last 15 months • All for 32nm, 22nm nodes and beyond • Memory, Foundry and Logic segment • Applications ALD high-k, ALD metal, PEALD SDDP, PEALD spacer © ASM 29
Slide 30: Front-End Products
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 © ASM 30
Slide 31: Outline
Outline • Semiconductor Equipment Market in 2009 • ASMI Results in 2009 • Status ASMI Back-end • Market dynamics • Product update • Status ASMI Front-end • Restructuring Program • Technology & Penetration update • ASMI Financing • Market Outlook and Conclusions © ASM 31
Slide 32: New Debt Financing
New Debt Financing What • Renewed € 50 mln standby facility, subsequently raised to € 90 mln. • New issue of € 150 mln senior unsecured convertible bonds due November 2014 Why • To provide financial security to weather the cycle and allow for the ongoing restructuring • To have adequate level of Wor
Slide 33: Consolidated Cash Flow Statement M€
Consolidated Cash Flow Statement M€ FY 2008 FY 2009 Net Cash Flow from Operations 137 63 Net Cash Flow from Investments (33) (15) Net Cash Flow before Financing 104 48 Net Cash Flow used for Financing (121) 91 Net Change in Cash (11) 136 Ending Cash Balance 157 293 Net debt (3) (23) © ASM 33
Slide 34: Use of ASMPT Dividends
Use of ASMPT Dividends • Received ASMPT dividend € 49 million – Purchase of treasury shares ~ € 36 million (before 2008 dividend withholding tax) Buy back of convertible debt ~ € 30 million • Received ASMPT dividend € 21 million Surplus spending, 2008 ~ € 17 million 2009 Buy back of convertibl
Slide 35: Outline
Outline • Semiconductor Equipment Market in 2009 • ASMI Results in 2009 • Status ASMI Back-end • Market dynamics • Product update • Status ASMI Front-end • Restructuring Program • Technology & Penetration update • Market Outlook and Conclusions © ASM 35
Slide 36: Applications Driving Market Growth Through 2014
Applications Driving Market Growth Through 2014 50 (%) Solid-State Drive 40 2009-2014 CAGR 10% of high CAGR or high revenue apps outside of the box drive >40% of semiconductor revenue 30 IP Set-Top Box LED Smartphone Mini-notebook — Professional 20 Mini-notebook — Home PC, Mobile — Home Other DP LCD
Slide 37: Applications Driving Growth Through 2014
Applications Driving Growth Through 2014 50 PEALD, Back-end (%) Solid-State Drive 40 2009-2014 CAGR 30 Back-end ALD, Epi, Low-k Back-end ALD, Epi, low-k IP Set-Top Box LED Smartphone Mini-notebook — Professional 20 Mini-notebook — Home Back-end PC, Mobile — Home Other DP LCD TV ALD, Epi, Low-k PC, M
Slide 38: Back-End Market Forecast looks healthy
Back-End Market Forecast looks healthy Packaging and Assembly Equipment Forecast 6 -2% +14% +20% 5 +76% -25% 4 $B 3 -40% 2 1 0 Gartner Mar. 12, 2010 2007 2008 2009 2010 2011 2012 • 2010 Packaging and Assembly Equipment spending is expected to be up • Growth expected next 3 years © ASM 38
Slide 39: Back-End Our current outlook
Back-End Our current outlook • Very strong demand • Across all segments, products and geographical areas • Fundamentals: long term prospect of the market look promising despite concern on 2H 2010 • No immediate sign of slowing down yet • Driver for growth • LED • Robust growth of Asian economy (will
Slide 40: Front End Market Forecast shows growth in new technology nodes
Front End Market Forecast shows growth in new technology nodes Wafer Fab Equipment Forecast by node 40 ≤22 nm +10% 32 nm +19% 35 45 nm 65 nm -15% 30 ≥90nm +26% -2% -33% 25 +77% WFE $B 20 15 -46% 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 • Share of 32nm and 22nm of total Equipment spending is in
Slide 41: Summarizing
Summarizing…. • Experienced strongest drop in history of our industry • Back-end 2009 • Bookings reached new records in 2H • Strong growth in LED besides IC • Front-end 2009 • Achieved significant reduction in cost base • Strategic additional ALD-customer penetrations made • Outlook © ASM 41
Slide 42: Thank You
THANK YOU © ASM 42