Asm International N.v. · EURONEXT:ASM
Asm International — Q4 2020 Earnings Presentation
23 slides from Asm International's earnings presentation, Feb 25, 2021
Slide 1: Investor Presentation Q4 2020 Results
INVESTOR PRESENTATION Q4 2020 RESULTS February 25, 2021
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 long term growth prospects ASM sales primarily driven by WFE investments in the most advanced nodes ALD expected to be a key growth market, ASM has leadership positions in ALD Driving structurally higher sales in the other product lines › COVID-19 update The he
Slide 4: 2020 Key Results
2020 KEY RESULTS € million Q4 2019* Q3 2020 Q4 2020 9 2019* 2020 New orders 373.0 303.4 378.7 1,169.7 1,313.6 Net sales 344.6 314.6 346.6 1,124.7 1,328.1 Gross profit margin % 43.6% 49.9% 45.2% 42.6% 47.0% Operating results 74.9 83.9 77.5 219.6 327.1 Operating margin % 21.7% 26.7% 22.4% 19.5% 24.6%
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET Equipment market segments 2020 (US$) › ASM is a market leader in ALD › Positions in Epitaxy, PECVD Etch and Clean and Vertical Furnaces 18.0bn Lithography Deposition 16.5bn 15.8bn Assembly 3.6bn Test Process 4.4bn Other Diagnostics Wafer 7.9bn Processes 4.7bn VLSI Rese
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner expects a 14% increase in WFE in ‘20, followed by a 8% increase in ‘21 (Dec ‘20). Last Wafer Fab Equipment spending October, Gartner still expected a 5% increase in ‘20 US$bn WFE 90 80 › VLSI Research currently estimates WFE to have 70 increased by 18% in 2020, up
Slide 7: Semiconductor Market Growth Drivers
SEMICONDUCTOR MARKET GROWTH DRIVERS Semiconductor sales by key application CAGR ‘17-24 700 $B Consumer Electronics 600 +5% Compute (ex. Servers) 0% 500 Communication (ex. +4% Smartphones) 400 Smartphones +6% 300 Servers +5% Solid State Drives +13% 200 Industrial +6% 100 Automotive +8% 0 2017 2018 20
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn Strongest growth in leading edge nodes 80 70 60 7nm and below 50 10nm 14nm 40 22nm 30 32nm 45nm 20 65nm and above 10 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Gartner, December 2020 › Advanced nodes: market segments with high expected growth › 45nm mai
Slide 9: 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, ability to deposit new materials Device scaling, new materials and 3D architectures drive increased demand for
Slide 10: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD Developing ALD technology since 1999 Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION ASMI sales 2020 › Engaged with all of the top-10 semiconductor capital equipment spenders Top 3 Nr 4-10 Rest Growing share of wallet with top clients February 25, 2021 | ASM proprietary information | 11
Slide 12: Key Points During the Quarter
KEY POINTS DURING THE QUARTER › COVID-19 update The health and safety of our employees continues to be our key priority Supply chain and logistical conditions largely normalized again in H2 › Solid sales momentum in 2020 Driven by the logic/foundry segment, solid growth in China and a strong i
Slide 13: ASMPT Results
ASMPT RESULTS Q4 2019 Q3 2020 Q4 2020 Net profit ASMPT (€ million, 100% based) 26 26 110 Normalized result from investments (including 6.4 6.3 27.1 ASMI’s share of ASMPT net profit) Amortization intangible assets resulting from the (3.5) (3.0) (3.0) sale of ASMPT stake in 2013 Results from investmen
Slide 14: Financial Overview
FINANCIAL OVERVIEW February 25, 2021 | ASM proprietary information | 14
Slide 15: Q4 2020 Financial Highlights
Q4 2020 FINANCIAL HIGHLIGHTS › Q4 revenue was up 10% q-o-q and up 1% y-o-y. Currencies had a negative impact on Q4 revenue of 5% y-o-y › Bookings up 25% q-o-q and up 2% y-o-y with a book-to-bill ratio of 1.1. Q4 backlog of €324m up from €299m in Q3 › Gross margin 45.2% in Q4 down from 49.9% in Q3, w
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q1, on a currency comparable level, we expect revenue of €380-€400 million, while we expect our revenue in Q2 to be at the same level. Q1 bookings, on a currency comparable level, are also expected to be in the range of
Slide 17: Net Earnings
NET EARNINGS € million Q4 2019* Q3 2020 Q4 2020 2019* 2020 New orders 429.0 303.4 378.7 1,328.9 1,313.6 Backlog 351.2 299.5 323.6 351.2 323.6 Book-to-bill 1.1 1.0 1.1 1.0 1.0 Net sales 400.6 314.6 346.6 1,283.9 1,328.1 Equipment sales 288.8 242.3 275.4 909.5 1,051.5 Spares & service sales 55.8 72.3
Slide 18: R&D Expenditure
R&D EXPENDITURE € million Q4 2019 Q3 2020 Q4 2020 R&D expenditure (41.4) (43.5) (45.2) Capitalized development expenditure 14.7 16.4 16.3 Amortization capitalized development expenditure (4.6) (5.0) (5.4) Impairment capitalized development expenditure (3.8) (2.2) (3.0) R&D expenses (35.1) (34.4) (37
Slide 19: Cash Flow
CASH FLOW € million 2019 2020 Net earnings 329.0 285.4 Depreciation, amortization and impairments 78.3 89.0 Result from investments (4.2) (32.0) Evaluation tools (13.7) (39.7) Other adjustments 63.5 64.4 Change in working capital 36.0 (102.8) Net cash from operating activities 488.9 264.4 Capital ex
Slide 20: Balance Sheet
BALANCE SHEET € million Dec 31, 2019 Sept 30, 2020 Dec 31, 2020 Cash and cash equivalents 498 430 435 Accounts receivable 200 255 280 Inventories 173 176 162 Other current assets 75 77 73 Right-of-use assets 28 26 23 Investments in associates 778 747 743 Property, plant and equipment 165 194 214 Goo
Slide 21: Working Capital
WORKING CAPITAL € million Days 400 120 350 300 100 250 200 80 150 100 60 50 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q4 Q2* Q4* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q4 Q2* Q4* 16 17 18 19 20 16 17 18 19 20 Working capital Quarterly sales Days of working capital Numbers b
Slide 22: Historical Development
HISTORICAL DEVELOPMENT € million € million 1,600 350 400 1,400 300 350 1,200 300 250 1,000 250 200 800 200 150 600 150 100 100 400 200 50 50 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 20182019*2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2* Q3 Q4* Q1 Q2 Q3 Q4 16 17 18 19 20 Net Sales (lhs) EBIT (
Slide 23: February 25, 2021 | ASM proprietary information | 23
February 25, 2021 | ASM proprietary information | 23