Asm International N.v. · EURONEXT:ASM
Asm International — Investor Day (September 2023)
140 slides from Asm International's investor day presentation, Sep 26, 2023
Slide 1: Growth through Innovation
Investor Day 2023 Growth through Innovation Benjamin Loh, President and CEO
Slide 2: Forward-looking statements
Forward-looking statements Cautionary note regarding forward-looking statements: This presentation contains “forward-looking statements”. All statements in ASM’s Investor Day 2023 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements invo
Slide 3: Key takeaways
Key takeaways Semiconductor growth continues despite a downturn in 2023; long-term secular trends remain solid and 1 in the case of AI and electrification of vehicles, even accelerating. ASM’s Growth through Innovation strategy showing results. Revenue increased with a CAGR of 35% 2 in 2020 - 2022 a
Slide 4: ASM Executive Committee leadership team
ASM Executive Committee leadership team Benjamin Loh Hichem M’Saad Kent Rossman President and Chief Chief Technology Senior Vice Executive Officer Officer President Global Operations Chairman of the Paul Verhagen Member of the Brian Birmingham Edyta Jakubek Management Board Chief Financial Officer M
Slide 5: Key achievements since Investor Day 2021
Key achievements since Investor Day 2021 Singapore Revenue CAGR 35% Invested in growth Operating profit CAGR expansion completed in ’20-’22 & innovation 40% in ’20-’22 January ’23 Outperforming WFE R&D headcount FCF more than tripled Manufacturing capacity despite supply chain +54% in ’20-’22 from ’
Slide 6: ASM growing twice as fast as WFE in 2016-2022
ASM growing twice as fast as WFE in 2016-2022 Indexed development, 2016=100%, ASM equipment sales (in US$ million), WFE (in US$ billion) 500 400 300 200 00 0 WF ASM e uipment sales WFE source: TechInsights, September 2023 Investor Day 2023 | 6
Slide 7: Digital transformation drives structural growth
Digital transformation drives structural growth Megatrends driving the semiconductor market Semiconductor revenue (US$ billion) Doubling to US$1 trillion by 2030 Source: TechInsights July 2023 Investor Day 2023 | 7
Slide 8: WFE spending expected to grow in 2024-2027
WFE spending expected to grow in 2024-2027 WFE market forecast (US$ billion) WFE growth driven by secular trends 140 of AI, 5G, EV, edge computing etc. • Multi-year investments announced across all 120 market segments • Further scaling, 3D transitions and GAA driving 100 investments in advanced CMOS
Slide 9: The growth of AI will drive increased capacity requirements
The growth of AI will drive increased capacity requirements for the semiconductor industry AI semiconductor sales outlook What it means for ASM: (US$ billion) • Increased capacity 120 • More datacenters with higher content servers – GPU, ASIC, communications, 100 HB DRAM 80 • More silicon content ed
Slide 10: Growth through Innovation - strategy unchanged
Growth through Innovation - strategy unchanged Our purpose is to improve people’s lives through advancing technologies that unlock new potential Drive continued strong financial Maintain leading ALD share in performance logic/foundry, expand in memory Accelerating progress in Strategic Increase Si E
Slide 11: Mergers & acquisitions adding to ASM's growth
Mergers & acquisitions adding to ASM’s growth First M&A activities in 2022 after 18 years M&A is an opportunistic part of our strategy and will mainly target semiconductor deposition equipment or technologies that enhance our deposition equipment Technology acquisition – Reno Sub-Systems Deposition
Slide 12: Acquisition of LPE addresses high-growth market
Acquisition of LPE addresses high-growth market The power electronics market is ripe for disruptions by SiC An attractive, high-growth market, highly synergistic with ASM, both technology and operations Transport highest reliance on fossil → Consumers/governments driving EV adoption SiC also address
Slide 13: Expanding portfolio of state-of-the-art deposition equipment
Expanding portfolio of state-of-the-art deposition equipment ASM key products Synergis® ALD XP8® QCM PEALD Intrepid® ES epitaxy XP8® PECVD Sonora® vertical furnace PE106 SiC epitaxy Investor Day 2023 | 13
Slide 14: Double-digit growth in spares & services
Double-digit growth in spares & services Spares & services revenue CAGR 2020-2022 of 17% driven by growing installed base and successful adoption of outcome-based services • Target continued healthy growth in 2023-2027 Spares & services revenue 2020 – 2022 Number of systems 2013 – 2023 (€ million) 8
Slide 15: Growth increasingly driven by outcome-based services
Growth increasingly driven by outcome-based services Sustaining Transactional Outcome Based Services Benefits of outcome-based services Outcome: For the customer: Delivering • Improved on-wafer performance – Outcome: on-wafer control e.g. through surface technology Delivering productivity • Increase
Slide 16: Capacity in place for 2027 revenue target
Capacity in place for 2027 revenue target Dongtan, South Korea (completion early 2025) Met customer commitments despite Singapore (completed) significant supply chain headwinds Supply chain and operations more resilient Current internal manufacturing capacity >3x increase compared to 2020. Sufficien
Slide 17: People are at the heart of our success
People are at the heart of our success Headcount growth Retention 5,000 4,423 4,258 All employees 4,000 3,000 2,583 3,312 2020 89.3% High performers 97% 2021 87.5% 2,000 1,453 550 1,000 515 1,146 Headcount New hires 2022 2023 H1 88.1% >90% Talents 94% 0 2020 2021 2022 2023 YtD Culture Diversity 2023
Slide 18: ASM sustainability focus areas
ASM sustainability focus areas Our Focus - Deliver long-term sustainable value creation for all of our stakeholders and make a positive impact in the world We Address - Key topics and opportunities informed by our stakeholder priorities and aligned with our strategy: Innovation People Planet Respons
Slide 19: Key takeaways
Key takeaways Semiconductor growth continues despite a downturn in 2023; long-term secular trends remain solid and 1 in the case of AI and electrification of vehicles, even accelerating. ASM’s Growth through Innovation strategy showing results. Revenue increased with a CAGR of 35% 2 in 2020 - 2022 a
Slide 20: Market outlook & growth opportunities
Growth through Innovation Investor Day 2023 Market outlook & growth opportunities Dr. Han Westendorp Corporate VP Global Marketing
Slide 21: Forward-looking statements
Forward-looking statements Cautionary note regarding forward-looking statements: This presentation contains “forward-looking statements”. All statements in ASM’s Investor Day 2023 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements invo
Slide 22: Key takeaways
Key takeaways We see continued digitization, growth in AI and electric vehicle adoption trends that are 1 expected to continue to drive growth in the semiconductor and Wafer Fab Equipment market. The market for single-wafer ALD is expected to outgrow the WFE market, and to grow 2 • to a range of US$
Slide 23: Market outlook
Market outlook Investor Day 2023 | 23
Slide 24: Mega trends
Industry 4.0 AI Security Edge computing Mega trends Smartphone Smarthome Autonomous vehicles & EV Investor Day 2023 | 24
Slide 25: Digital transformation drives structural growth
Digital transformation drives structural growth Megatrends driving the semiconductor market Semiconductor revenue (US$ billion) Doubling to US$1 trillion by 2030 Mega trends Source: TechInsights July 2023 Investor Day 2023 | 25
Slide 26: Nearly every facet of the economy is expected to be positively impacted by AI
Nearly every facet of the economy is expected to be positively impacted by AI All enabled by SEMICONDUCTORS Machine learning Generative AI Autonomous vehicles Edge devices US$ trillions Smarter smartphones Industry 4.0 in GDP growth + Products yet to be invented Investor Day 2023 | 26
Slide 27: The growth of AI will drive increased capacity requirements
The growth of AI will drive increased capacity requirements for the semiconductor industry AI semiconductor sales outlook What it means for ASM: (US$ billion) • Increased capacity 120 • More datacenters with higher content servers – GPU, ASIC, communications, 100 high-bandwidth DRAM 80 • More silico
Slide 28: WFE spending expected to grow in 2024-2027
WFE spending expected to grow in 2024-2027 WFE market forecast WFE growth driven by secular trends (US$ billion) of AI, 5G, EV, edge computing etc. 140 • Multi-year investments announced across all market segments 120 • Further scaling, 3D transitions and GAA 100 driving investments in advanced CMOS
Slide 29: GAA investment is a big part of that growth
GAA investment is a big part of that growth WFE market forecast (US$ billion) Other NAND 140 120 DRAM GAA - L/F 100 ~US$50B 80 Other L/F 60 GAA transition beginning in 2024 40 GAA expected to grow to >40% by 2027 20 Focus on high performance compute, new smartphone capabilities 0 2020 2021 2022 2023
Slide 30: Growth opportunities
Growth opportunities Investor Day 2023 | 30
Slide 31: Example applications expected to drive ASM growth
Example applications expected to drive ASM growth ALD high-k gate and Vt tuning ALD dielectric gap-fill ALD metal 1 Increase of total # of V s t GAA structure 2 Seam-free gap-fill 3 Dielectric liners for Better conductors 5 Multiple work function High-k, dipole layers for multi-Vt, supporting ALD in
Slide 32: 2021 single-wafer ALD market outlook: US$3.1-3.7 billion by 2025
2021 single-wafer ALD market outlook: US$3.1-3.7 billion by 20251 Single-wafer ALD market outlook (US$ billion) Logic/foundry • GAA transition >55% • High-k gate & Vt tuning 5 share • Sacrificial layers, HM, ESL 4 • Metals US$3.7bn • Selective ALD 3 US$3.1bn • High aspect ratio TSV 2 US$1.5bn Memory
Slide 33: 2023 single-wafer ALD market outlook maintained at US$3.1-3.7 billion by 2025
2023 single-wafer ALD market outlook maintained at US$3.1-3.7 billion by 20251 Single-wafer ALD market outlook (US$ billion) Logic/foundry • GAA transition >55% • High-k gate & Vt tuning 5 share • Sacrificial layers, HM, ESL >55% • Metals 4 share US$3.7bn • Selective ALD US$3.1bn 3 US$2.6bn • High a
Slide 34: 2023 single-wafer ALD market outlook: US$4.2-5.0 billion by 2027
2023 single-wafer ALD market outlook: US$4.2-5.0 billion by 20271 Single-wafer ALD market outlook (US$ billion) Logic/foundry >55% share • GAA transition >55% • High-k gate & Vt tuning 5 share US$5.0bn • Sacrificial layers, HM, ESL >55% US$4.2bn • Metals 4 share US$3.7bn • Selective ALD US$3.1bn 3 U
Slide 35: 2021 Si epitaxy market outlook: US$1.5-1.8 billion by 2025
2021 Si epitaxy market outlook: US$1.5-1.8 billion by 20251 Si epitaxy market outlook (US$ billion) Leading-edge • Logic/foundry • Memory 3 >30% share Non-leading-edge target • Non-leading-edge foundry 2 US$1.8bn • Wafer, power, analog US$1.5bn 1 US$0.8bn -0 2020 2020 2022 2025 2025 2027 Historical
Slide 36: Si epitaxy market historical segment mix
Si epitaxy market historical segment mix Si epitaxy market outlook (US$ billion) Leading-edge • Growth in investment 2020-2022 Non-leading-edge consists of: 3 16% • Wafer, power, analog share • Healthy growth for wafer & power segments US$2bn • Strong momentum driven by Intrepid ESA 2 • Non-leading-
Slide 37: 2023 Si epitaxy market outlook: US$1.9-2.3 billion by 2025
2023 Si epitaxy market outlook: US$1.9-2.3 billion by 20251 Si epitaxy market outlook (US$ billion) Leading-edge • Structural growth in leading-edge as we move to GAA and high-performance DRAM >30% 2025 Epi share Non-leading-edge market size 3 16% target now increased • Wafer, power, analog share to
Slide 38: 2023 Si epitaxy market outlook: US$2.3-2.9 billion by 2027
2023 Si epitaxy market outlook: US$2.3-2.9 billion by 20272 Si epitaxy market outlook Leading-edge (US$ billion) • Continued growth in leading-edge driven by GAA and high-performance DRAM >30% share >30% target Non-leading-edge share 3 16% target • Wafer, power, analog share US$2.9bn • Continued gro
Slide 39: Increased ALD and Epi SAM with move from FinFET to GAA
Increased ALD and Epi SAM with move from FinFET to GAA Increases served available market for ASM by ~ US$400 million per 100k wafer starts per month (WSPM) Single-wafer ALD • High-k gate & Vt tuning • Sacrificial layers, HM, ESL • Metals • Selective ALD • High aspect ratio TSV Epitaxy • GAA nanoshee
Slide 40: SiC Epitaxy
SiC Epitaxy Investor Day 2023 | 40
Slide 41: Power SiC device market expected to grow strongly
Power SiC device market expected to grow strongly in the near term, and reaching nearly US$9 billion by 2028 Power SiC device market outlook (US$ billion) >30% Key drivers for SiC investment : 10 CAGR • EV adoption accelerating • Electric vehicle accelerating adoption 8 of SiC • Power efficiency, tr
Slide 42: Key takeaways
Key takeaways We see continued digitization, growth in AI and electric vehicle adoption trends that are 1 expected to continue to drive growth in the semiconductor and Wafer Fab Equipment market. The market for single-wafer ALD is expected to outgrow the WFE market, and to grow 2 • to a range of US$
Slide 43: Technology and products
Growth through Innovation Investor Day 2023 Technology and products Dr. Hichem M’Saad CTO
Slide 44: Forward-looking statements
Forward-looking statements Cautionary note regarding forward-looking statements: This presentation contains “forward-looking statements”. All statements in ASM’s Investor Day 2023 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements invo
Slide 45: Key takeaways
Key takeaways 1 ASM products and R&D portfolio are well positioned to capture growth opportunities in logic and memory. 2 Trends towards new materials and 3D scaling driving further adoption of ALD. • Molybdenum is the ALD metal of choice and is replacing CVD Tungsten and PVD Cu. • Rapid adoption of
Slide 46: 3D scaling accelerating in logic and memory technologies
3D scaling accelerating in logic and memory technologies Logic DRAM FLASH 1xxx 4xx 32/28nm 3xx HK/MG 140 60 2xx 40 20nm 110 CTF, 1xx 22nm FinFET DPT 2x Mold Stack (# of layers) 1x 14nm FinFET 1x QPT Stack (# of layers) Design rule (nm) Design rule (nm) 10nm Design rule (nm) 92 6x Planar NAND 2nm 7nm
Slide 47: Logic GAA creates new ALD/Epi opportunities
Logic GAA creates new ALD/Epi opportunities New interconnect metals: MIM • Molybdenum replacing CVD Tungsten and PVD Copper Selective deposition processes for performance and Yield: Channel Epi Source/Drain Epi • DoD and MoD M1 Increasing embedded M0 functionality: a) additional memory with Epi Si M
Slide 48: Increasing ALD and Epi opportunities in DRAM
Increasing ALD and Epi opportunities in DRAM New ALD and epi processes for continued scaling of 6F2 architecture • Low resistance word line metals • Low-k spacers and airgaps to reduce parasitic capacitance • High quality gate oxide for cell transistor • Epi layers to enable low resistance contacts
Slide 49: Well-positioned, with leading innovations, to address these technology inflections
Well-positioned, with leading innovations, to address these technology inflections Investor Day 2023 | 49
Slide 50: ASM is market leader in ALD
ASM is market leader in ALD Core strengths >30 years of ALD precursors and materials research Deep precursor chemistry, materials and plasma expertise in geographically diverse R&D teams Long term strategic external R&D partnerships Largest product portfolio to meet diverse needs Strong impactful IP
Slide 51: ASM is market leader in ALD
ASM is market leader in ALD Core strengths >30 years of ALD precursors and materials research Deep precursor chemistry, materials and plasma expertise in geographically diverse R&D teams Long term strategic external R&D partnerships Largest product portfolio to meet diverse needs Strong impactful IP
Slide 52: ASM is market leader in ALD
ASM is market leader in ALD Core strengths >30 years of ALD precursors and materials research Deep precursor chemistry, materials and plasma expertise in geographically diverse R&D teams Long term strategic external R&D partnerships Largest product portfolio to meet diverse needs Strong impactful IP
Slide 53: ASM is market leader in ALD
ASM is market leader in ALD Core strengths >30 years of ALD precursors and materials research 2003 2013 2023 3 to 4 layers 20+ layers 80+ layers Deep precursor chemistry, Al2O3, ZrO2 HfO2, ZrO2, ZAZ, SiO2, SiN, PSG, HfAlO, ZrAlO, IGZO, WN, Mo... materials and plasma expertise BSG…TiC, TiN, TaN UHD,
Slide 54: ASM is market leader in ALD
ASM is market leader in ALD Core strengths >30 years of ALD precursors and materials research ASM has the strongest patent portfolio in ALD Deep precursor chemistry, materials and plasma expertise in geographically diverse R&D teams Long term strategic external R&D partnerships Largest product portf
Slide 55: Metal ALD
Metal ALD Investor Day 2023 | 55
Slide 56: Mo metal is replacing W and some Cu in logic technology
Mo metal is replacing W and some Cu in logic technology Molybdenum simplifies process flow and lowers resistance ASM engaged in all applications for Mo inflection DD Cu Cu Cu Cu Cu Mo Lower BEOL Mo Cu Cu Low Relative Via Resistance Via R Mo Cu Cu Moly Via W Mo MOL + Cu Line W W 4 6 8 10 12 14 16 Cur
Slide 57: Selective ALD
Selective ALD Investor Day 2023 | 57
Slide 58: Selective ALD helps overcome Interconnect scaling challenges
Selective ALD helps overcome Interconnect scaling challenges Selective Metal on Dielectric (MoD) Selective Dielectric on Dielectric (DoD) Vx Vx Copper Area Blanket CDB Al2O3 EPE Barrier/Lines Mx Reduced Mx Low k Low k Low k Low k Contact area Scaling Copper Area Resistance Al2O3 Al2O3 Copper Area Sc
Slide 59: Selective deposition process – DoD and MoD
Selective deposition process – DoD and MoD Cu Cu Cu Cu Cu Cu Cu Cu DoD Low k Low k Low k Low k Surface preparation Inhibitor selective ALD Selective ALD DoD Al2O3 Inhibitor removal ASM Enabled MoD Process Flow Legacy Copper technology extended MoD Low k Low k Low k Low k Low k Low k Low k Low k Low
Slide 60: Expanding the HVM proven XP8 to sequential and clustered deposition processes
Expanding the HVM proven XP8 to sequential and clustered deposition processes Investor Day 2023 | 60
Slide 61: ALD Gapfill in VHAR enabled by new plasma technology
ALD Gapfill in VHAR enabled by new plasma technology Investor Day 2023 | 61
Slide 62: ALD plasma sources evolving to meet dielectric liner and gap-fill applications
ALD plasma sources evolving to meet dielectric liner and gap-fill applications in advanced technologies Channel hole gap-fill TSV liner Plasma density vs frequency Ion energy vs frequency 5.00E+17 14.0 4.50E+17 12.0 AVERAGE ION ENERGY (EV) 4.00E+17 PLASMA DENSITY (1/M3) 3.50E+17 10.0 3.00E+17 8.0 2.
Slide 63: New ALD plasma sources for complex GAA applications
New ALD plasma sources for complex GAA applications Liners and gap-fill for lateral cavities in GAA devices drive new ALD capabilities ICP ALD ICP ALD Reactor AS Deposited After Wet Etch ASM Internal work ASM’s ICP ALD provides higher radical density at ALD process pressure regimes while maintaining
Slide 64: New Epi opportunities in GAA and DRAM
New Epi opportunities in GAA and DRAM Investor Day 2023 | 64
Slide 65: Epi layers growing in numbers and complexity across market segments
Epi layers growing in numbers and complexity across market segments 1st Gen GAA 2nd Gen GAA 1st Gen CFET 3-4x Si/SiGe Channel Superlattice 12-16x Si/SiGe Channel Superlattice Advanced SiAs/SiAsP NMOS S/D LT NMOS S/D LT NMOS S/D Logic and SiGe:B PMOS S/D LT PMOS S/D LT PMOS S/D Foundry LT SiP Contact
Slide 66: Advanced Epi films for logic and memory technologies
Advanced Epi films for logic and memory technologies Logic Memory LT NMOS S/D LT PMOS S/D >100x Si/SiGe Superlattice for 3D-DRAM CFET Si/SiGe Superlattice High-quality, low-defect, strained Epi superlattice Total thickness > 8 μm ASM internal work ASM internal work Investor Day 2023 | 66
Slide 67: Turino-CL: extreme uniformity and productivity
Turino-CL: extreme uniformity and productivity Edge Pyrometer Middle Pyrometer Center Pyrometer Intrepid® mono layer control Faster ramps for productivity Energy consumption reduction 105 Wafer temperature (°C) Si THK ~35%↓ Susceptor control kWh/wafer SiGe THK Thickness (Å) 100 Turino-CL ~25% reduct
Slide 68: Selective growth in PECVD and VF
Selective growth in PECVD and VF Investor Day 2023 | 68
Slide 69: PECVD carbon gap-fill process simplifying process integration
PECVD carbon gap-fill process simplifying process integration and providing cost benefits Spin-on-Carbon (SOC) SOC out of capability for many levels • Workaround required to minimize overburden • Cost increase • Limited scalability PECVD Carbon A scalable, self planarizing PECVD carbon gap-fill. Inv
Slide 70: Vertical Furnace platforms
Vertical Furnace platforms SONORA 300mm Reactor Installed ase Growth A4 A400DUO DUO &SO ORA SONORA Official release: 2022 S RA A400D A400 DUO A4 DUO ≤ mm 3 Official release: New high throughput platforms offer lower cost of ownership 2019 A400 DUO is the leading platform in SiC, GaN, Power, and MEMS
Slide 71: LPE for SiC
LPE for SiC Investor Day 2023 | 71
Slide 72: ASM has best-in-class SiC Epi reactor
ASM has best-in-class SiC Epi reactor Triangle defects increase leakage and degrade yield SiC Epi process performance: cross flow vs perpendicular Defects (Triangles) Defects (Downfalls) Thickness NU% Cross flow (ASM) Doping NU% Perpendicular flow 0 0,5 1 1,5 2 ASM’s single wafer cross flow reactor
Slide 73: Opportunities in advanced packaging
Opportunities in advanced packaging Investor Day 2023 | 73
Slide 74: Advanced packaging presents several opportunities in areas of strength for ASM
Advanced packaging presents several opportunities in areas of strength for ASM Through Silicon Via (TSV) oxide liner ALD high-k films and metals for MIMCAPs Chiplet isolation gap-fill and deep-trench capacitors Tech Insights Dielectric liners and Mo metal fill for backside Epi photodetectors Functio
Slide 75: Key takeaways
Key takeaways 1 ASM products and R&D portfolio are well positioned to capture growth opportunities in logic and memory. 2 Trends towards new materials and 3D scaling driving further adoption of ALD. • Molybdenum is the ALD metal of choice and is replacing CVD Tungsten and PVD Cu. • Rapid adoption of
Slide 76: Delivering on customers' growth needs
Growth through Innovation Investor Day 2023 Delivering on customers’ growth needs Kent Rossman, Senior VP Operations
Slide 77: Forward-looking statements
Forward-looking statements Cautionary note regarding forward-looking statements: This presentation contains “forward-looking statements”. All statements in ASM’s Investor Day 2023 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements invo
Slide 78: Key takeaways
Key takeaways ASM significantly increased revenue in 2020-2022, meeting customer commitments, 1 despite supply chain headwinds. Actions have been taken to make ASM and our supply chain more resilient in 2 the “new reality”. Recently completed expansion in Singapore combined with upcoming expansion 3
Slide 79: Introducing ASM Global Operations
Introducing ASM Global Operations Parts supply mostly Asia based, ~60% contract manufacturing Asia-based Main manufacturing facility in Singapore, additional manufacturing in South Korea, Italy, and the Netherlands Flexible outsourced assembly model >1,400 operations employees >80% higher output sin
Slide 80: Supply chain shocks became a new reality
Supply chain shocks became a new reality COVID Texas iced-out Heat & drought Historic floods Suez canal Lockdowns War Nordstream 2 Trade war Rolling blackouts Chip shortage Butterfly effect Investor Day 2023 | 80
Slide 81: Supply chain plans of the past are insufficient
Supply chain plans of the past are insufficient Supply chain professional Circa 2020 – mid-2022 Investor Day 2023 | 81
Slide 82: Supply chain resiliency of the now
Supply chain resiliency of the now Learning to “Float like a butterfly” in the new reality — special thanks to Muhammed Ali Investor Day 2023 | 82
Slide 83: Increased supply chain complexity requires end-to-end focus & depth: Past
Increased supply chain complexity requires end-to-end focus & depth Past: Parts & Semi subassembly equipment manufacturers manufacturers Customers Investor Day 2023 | 83
Slide 84: Increased supply chain complexity requires end-to-end focus & depth: Present
Increased supply chain complexity requires end-to-end focus & depth Example of ASM tool part supply chain Present: Key risks/concerns • SG compliance • Geopolitical risks • Tariffs / export bans • Capacity concerns Mining Bauxite Refining Alumina Smelting Casting Alumina parts Parts suppliers Semi e
Slide 85: Actions taken to improve parts cost, manufacturability, and reliability
Actions have been taken to improve parts cost, manufacturability, and reliability since 2021 “First time right” Product Development Engineering Centers of Excellence Team Suppliers Part designers, suppliers, and a new “Centers of xcellence” team work together focusing on cost, manufacturability, and
Slide 86: Supply chain health improved significantly
Supply chain health improved significantly Part family Jun. 2022 Dec. 2022 Sept. 2023 Ongoing ASM actions taken Machining, sheet metal, Supplier & capacity adds, yield improvements, power, pedestals, and long-term supply agreements added chemical processes Multi-source, efficiency improvements, and
Slide 87: ASM investing in capacity ahead of needs
ASM investing in capacity ahead of needs Normalized manufacturing capacity 400 370 ASM onlined ample forward-looking 330 330 capacity in 2023 300 • Analysis of where to expand manufacturing to be started mid 2024 200 170 180 • Decisions to be made in 2025 • Possibility to bring more capacity 100 100
Slide 88: ASM investing in capacity ahead of needs
ASM investing in capacity ahead of needs Woodlands L4 move Normalized manufacturing capacity 400 370 330 330 300 200 170 180 100 100 0 2020 2021 2022 2023 2024 2025 – 2027 2025 Singapore expansion first manufacturing floor (L4) facilitated strong revenue increases in 2021 and beyond Investor Day 202
Slide 89: ASM investing in capacity ahead of needs
ASM investing in capacity ahead of needs LPE acquisition Normalized manufacturing capacity 400 370 330 330 300 200 170 180 100 100 0 2020 2021 2022 2023 2024 2025 – 2027 2025 Singapore expansion first manufacturing floor (L4) facilitated strong revenue increases in 2021 and beyond LPE acquisition br
Slide 90: ASM investing in capacity ahead of needs
ASM investing in capacity ahead of needs Woodlands L3 completed Normalized manufacturing capacity 400 370 330 330 300 200 170 180 100 100 0 2020 2021 2022 2023 2024 2025 – 2027 2025 Singapore expansion first manufacturing floor (L4) facilitated strong revenue increases in 2021 and beyond LPE acquisi
Slide 91: ASM investing in capacity ahead of needs
ASM investing in capacity ahead of needs Dongtan expansion Normalized manufacturing capacity 400 370 330 330 300 200 170 180 100 100 0 2020 2021 2022 2023 2024 2025 – 2027 2025 Singapore expansion first manufacturing floor (L4) facilitated strong revenue increases in 2021 and beyond LPE acquisition
Slide 92: ASM investing in capacity ahead of needs
ASM investing in capacity ahead of needs Dongtan expansion Normalized manufacturing capacity 400 370 2023 330 330 300 demand 2020 demand 170 180 200 100 100 0 2020 2021 2022 2023 2024 2025 – 2027 2025 Singapore expansion first manufacturing floor (L4) facilitated strong revenue increases in 2021 and
Slide 93: Increased focus on manufacturing innovation
Increased focus on manufacturing innovation Investor Day 2023 | 93
Slide 94: Technology roadmap to drive manufacturing improvements
Technology roadmap to drive manufacturing improvements AI assisted fully automated Full modular testing operation Increased factory automation AI system finger printing Electronic procedures & tracking Deploying software-based Manufacturing Efficiency Solutions (MES) to improve learning AI-assisted
Slide 95: Sustainable supply chain
Sustainable supply chain Investor Day 2023 | 95
Slide 96: Engaging our supply chain on sustainability
Engaging our supply chain on sustainability Target Net Zero by 2035 Responsible Resilient Supplier capacity Supplier collaboration opportunities - 2024 Cybersecurity Collaborate with suppliers to accelerate their Strengthening supplier resiliency and foster Net Zero journey Safety strong relationshi
Slide 97: Strengthening our human rights due diligence
Strengthening our human rights due diligence Today Strengthening 2024 and beyond Setting clear expectations Supplier due diligence • >99% acknowledge Code of Business Conduct last 5 years • Increase risk evaluation during supplier selection and sustaining • Major update to Human Rights Policy in pro
Slide 98: Key takeaways
Key takeaways ASM significantly increased revenue in 2020-2022, meeting customer commitments, 1 despite supply chain headwinds. Actions have been taken to make ASM and our supply chain more resilient in 2 the “new reality”. Recently completed expansion in Singapore combined with upcoming expansion 3
Slide 99: ASM products sustainability
Growth through Innovation Investor Day 2023 ASM products sustainability Dr. Hichem M’Saad CTO
Slide 100: Forward-looking statements
Forward-looking statements Cautionary note regarding forward-looking statements: This presentation contains “forward-looking statements”. All statements in ASM’s Investor Day 2023 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements invo
Slide 101: Key takeaways
Key takeaways 1 ASM target of Net Zero by 2035 for all scopes was verified by SBTi. 2 Majority of our GHG emission is attributed to Scope 3, in particular from our sold products. 3 Accordingly, ASM strongly focuses on products sustainability innovation. Sustainability innovation is an integral part
Slide 102: Emission segmentation at ASM
Emission segmentation at ASM Scope 1 Zooming in on Scope 3 emissions (tCO2e) Direct emissions from <0.1% company-owned facilities 59% Scope 2 Indirect emissions from 0.5% offsite utility-purchases 33% Scope 3 Indirect emissions from upstream/downstream >99% peripheral activities 2% 1% Use of Purchas
Slide 103: Sustainability fully integrated into product development
Sustainability fully integrated into product development Our vision is to develop differentiated & eco-efficient tools & processes, while maximizing energy saving through product innovation. Our aim is to lower energy/precursor usage, emissions and cost per wafer Investor Day 2023 | 103
Slide 104: Product sustainability contributors
Product sustainability contributors* Air emission Consumables Energy consumption sources Electricity ASM product(s) HTF Process chemistry Chiller Heat-transfer-fluid heat Cooling liquid Process modules exchanger & platform N2 / Ar / He / CDA Exhaust (unused gas/chemicals) Abatement (sub-fab) Pump Ex
Slide 105: Sustainability scope covers product & sub-fab
Sustainability scope covers product & sub-fab Sustainability scope Product level Sub-fab level Process module Platform Sub-fab Design foundation Design foundation Components selection Components selection Components selection Recycling/renewable Process optimization Operation optimization Synchroniz
Slide 106: Product Sustainability Strategy
Product Sustainability Strategy More efficient More efficient use More efficient thermal Plasma sources of chemistries technologies Key energy • RF power • Precursors selection • Heating technology • On-tool RF matching network • Precursors utilization efficiency • Heating efficiency driver • Remote
Slide 107: SONORA sustainability benefit
SONORA sustainability benefit Higher throughput provides less energy consumption per wafer Energy consumption kJ/wafer • Platform throughput • Optimized process with increased load size 5,000 -34% 40% N2-purge consumption reduction per wafer -40% • Reactor design → reduced volume, leak tight mini en
Slide 108: SONORA energy sources
SONORA energy sources Oxidation SiN Poly Si 2% 2% 6% 4% 5% 7% 7% 7% Electricity 4% Nitrogen Exhaust 83% 87% Cooling water 85% Heating Top 3 electricity consumption element 67% Oxidation SiN Poly Si 50% 41% 29% 25% 20% 18% 15% Heating element Vacuum pump Blowers Investor Day 2023 |108
Slide 109: Sustainability focus around product development
Sustainability focus around product development Reduction Monitoring Digitization Traceability Synchronization PFAS, PIP, roadmap & synergy F-Gases Screening Continue SEMI- Define & set-up Set-up a digital Trace facility Develop sub-fab Identify impact S23 baseline for sustainability data-base for u
Slide 110: Key takeaways
Key takeaways 1 ASM target of Net Zero by 2035 for all scopes was verified by SBTi. 2 Majority of our GHG emission is attributed to Scope 3, in particular from our sold products. 3 Accordingly, ASM strongly focuses on products sustainability innovation. Sustainability innovation is an integral part
Slide 111: Creating sustainable value for all stakeholders
Growth through Innovation Investor Day 2023 Creating sustainable value for all stakeholders Paul Verhagen, CFO
Slide 112: Forward-looking statements
Forward-looking statements Cautionary note regarding forward-looking statements: This presentation contains “forward-looking statements”. All statements in ASM’s Investor Day 2023 presentations, other than statements of historical fact, are forward-looking statements. Forward-looking statements invo
Slide 113: Key takeaways
Key takeaways ASM Growth through Innovation strategy is creating significant value for all stakeholders. 1 ASM increases 2025 mid-term revenue targets to €3.0 - €3.6 billion with target range of gross and operating 2 margins maintained. ASM provides new updated mid-term guidance for 2027: 3 • ASM ta
Slide 114: Growth through Innovation strategy is creating significant value over FY20 - FY22
Growth through Innovation strategy is creating significant value over FY20 - FY22 Annualized total Total cash returned Accumulated Average shareholder return to shareholders free cash flow ROIC 34.2% € .5 billion € million1,2 26.1%3 12% of revenue Revenue Average gross Average operating Renewable CA
Slide 115: Financial performance FY20-FY22 versus 2021 guidance
Financial performance FY20-FY22 versus 2021 guidance Investor Day 2023 | 115
Slide 116: Strong total shareholder return
Strong total shareholder return Total cumulative shareholder return 1,600 1,400 1,200 1,000 800 600 400 200 0 ASM SOX AEX Indexed total return ASM vs. AEX and SOX as of January 2019 up to September 13, 2023 Investor Day 2023 | 116
Slide 117: Excess cash returned to shareholders
Excess cash returned to shareholders Dividend per share Cumulative cash returned to market (in € paid over) (€ million) 3.5 2,500 Extra-ordinary dividend Return of capital 3.00 3.0 Regular dividend Dividends 2,000 2.50 2.50 Share buybacks 2.5 1.50 2.00 1,500 2.0 1.5 1,000 1.00 1.0 0.80 0.70 0.70 1.5
Slide 118: Strong revenue growth outgrowing WFE
Strong revenue growth outgrowing WFE Revenue WFE market forecast (€ million) (US$ billion) Source: TechInsights (September 2023) and Gartner (July 2023) 35% CAGR 16-21% 23% CAGR CAGR 4,000 250 3,400 9% 200 CAGR 3,000 2,800 2,411 150 2,000 1,730 ~100 91 98 1,328 100 65 1,000 50 0 0 FY20 FY21 FY22 FY2
Slide 119: Sustained healthy margin and earnings
Sustained healthy margin and earnings Gross margin Operating margin (%) (%) 46-50% 50 47.0 47.9 47.5 50 26-31% 40 40 28.4 30 30 24.6 26.6 20 20 10 10 0 0 FY20 FY21 FY22 FY25 FY20 FY21 FY22 FY25 Gross margin key drivers: Operating margin key drivers: • Application mix • Development gross margin • (Li
Slide 120: SG&A leveling off after investments in 2021-2022
SG&A leveling off after investments in 2021-2022 SG&A (annual) (€ million) SG&A (half yearly) (€ million) 500 300 15.0% 15.0% 12.2% 11.9% 11.9% 250 11.5% 11.2% 11.0% 400 11.0% 11.4% 10.7% 10.4% 300 10.0% 200 10.0% 275 147 144 150 128 200 190 157 5.0% 103 100 77 81 86 5.0% 100 50 0 0.0% FY20 FY21 FY2
Slide 121: Continued R&D investments to support growth opportunities
Continued R&D investments to support growth opportunities High-single R&D expenses (annual) digit to Gross R&D expenses (half yearly) (€ million) low teens (€ million) 500 15.0% 13.0% 250 13.4% 13.8% 15.0% 11.9% 12.3% 12.5% 12.6% 12.5% 12.1% 400 Low teens 11.2% 191 10.5% 200 9.5% 167 8.7% 10.0% 10.0
Slide 122: Increased working capital due to supply chain challenges
Increased working capital due to supply chain challenges and market environment Working capital days 55-75 100 days Working capital well managed despite severe supply chain challenges 90 • Conscious (temporary) increase of inventory due 80 75 to advanced purchases and increased strategic 70 63 buffe
Slide 123: LPE and Reno: value-creating bolt-on acquisitions
LPE and Reno: value-creating bolt-on acquisitions LPE acquisition closed on October 3, 2022, Reno Sub-Systems acquisition closed on with purchase price of €4 m and earn-out March 12, 2022, with purchase price of of up to € m approximately €42m Strategic rationale: Strategic rationale: • Address the
Slide 124: 2021 mid-term targets FY21-FY25
2021 mid-term targets FY21-FY25 Investor Day 2023 | 124
Slide 125: On track to previously communicated mid-term targets for 2025
On track to previously (in 2021) communicated mid-term targets for 2025 FY2025 On track Revenue From €2.8 to €3.4 billion Revenue growth 16 - 21% CAGR (FY20-FY25) Gross margin % 46 - 50% (FY21-FY25) SG&A % revenue High single digit (FY25) R&D (net) % revenue High single digit to low teens (FY25) Ope
Slide 126: Updated mid-term targets FY23-FY27
Updated mid-term targets FY23-FY27 Investor Day 2023 | 126
Slide 127: Updated financial targets FY25 and introducing FY27
Updated financial targets FY25 and introducing FY27 FY2022(1) FY2025 Old: €2.8 - €3.4 billion Revenue €2.4 billion ew €3. - €3. billion Revenue growth 33% yoy(2) 16 - 21% CAGR (FY20-FY25) Gross margin % 47.5% 46 - 50% (FY21-FY25) SG&A % revenue 11.4% High single digit (FY25) R&D (net) % revenue 9.5%
Slide 128: Updated financial targets FY25 and introducing FY27
Updated financial targets FY25 and introducing FY27 FY2022(1) FY2025 FY2027 Old: €2.8 - €3.4 billion Revenue €2.4 billion €4.0 - €5.0 billion ew €3. - €3. billion Revenue growth 33% yoy(2) 16 - 21% CAGR (FY20-FY25) 11 - 16% CAGR (FY22-FY27) Gross margin % 47.5% 46 - 50% (FY21-FY25) 46 - 50% (FY25-FY
Slide 129: Revenue target of €4.0 – €5.0B, outgrowing WFE market
Revenue target of €4.0 – €5.0B, outgrowing WFE market Revenue WFE market forecast (€ million) 11-16% (US$ billion) 4% CAGR CAGR Source: TechInsights (September 2023) and Gartner (July 2023) 5,000 150 5,000 ~120 4,000 4,000 98 100 91 3,000 2,411 65 2,000 1,730 1,328 50 1,000 0 0 FY20 FY21 FY22 FY27 F
Slide 130: Sustained healthy gross margin to support investment
Sustained healthy gross margin to support investment in technology and innovation Gross margin Factors affecting gross margin: (%) 46-50% FY23-FY27 Sales price increase 50 47.0 47.9 47.5 Application mix 40 30 Cost efficiencies: • Supply chain improvements 20 • Value engineering 10 Operating leverage
Slide 131: Projected gradual decrease of SG&A as % of revenue and increased R&D
Projected gradual decrease of SG&A as % of revenue and increased investments in R&D SG&A Net R&D expenses High- (as % of revenue) (as % of revenue) single digit High- to low single digit teens 15 15 FY25-FY27 FY25-FY27 11.9 11.4 11.0 10.5 10 10 9.5 8.7 5 5 0 0 FY20 FY21 FY22 FY27 FY20 FY21 FY22 FY27
Slide 132: Operating margin guidance maintained with upward trend expected
Operating margin guidance maintained with upward trend expected in outer years Operating margin (as % of revenue) 26-31% FY23-FY27 Key drivers for operating margin: 35 • Gross margin development 30 28.4 • SG&A operating leverage 26.6 24.6 • Productivity improvement 25 20 15 10 5 0 FY20 FY21 FY22 FY2
Slide 133: Tax rate to gradually increase over time
Tax rate to gradually increase over time Effective tax rate1 High teens (ETR, %) to low twenties 20 20 18 ETR gradually increasing to high teens/low twenties: 16 • The allocation of taxable profits moves in sync with ASM’s business 15 developments • Global minimum taxation aims at a minimum 15% tax
Slide 134: Increased working capital and capex to support growth
Increased working capital and capex to support growth Working capital days Capital expenditure (€ million) € -180m FY24-FY27 55-75 100 days 200 150 63 58 62 95 101 50 100 72 50 0 0 FY20 FY21 FY22 FY27 FY20 FY21 FY22 FY27 We expect working capital days to range Future capital expenditure spend increa
Slide 135: Capital allocation strategy unchanged
Capital allocation strategy unchanged Priority 1: Priority 2: Priority 3: Priority 4: Invest to support Maintain a strong Sustainable dividend Return of excess future growth balance sheet payments cash to shareholders • R&D • Minimum cash through share • Capex position around buybacks €600 million •
Slide 136: Net Zero targets
Net Zero targets Investor Day 2023 | 136
Slide 137: ASM targets Net Zero by 2035
ASM targets Net Zero by 2035 ASM’s strategy addresses these challenges Semi technology Innovations The industry must ~40% of emissions critical to increase compute accelerate its are upstream of addressing climate power & efficiency decarbonization device makers Investor Day 2023 | 137
Slide 138: Target Net Zero by 2035
Target Net Zero by 2035 SBTi verified ASM Net Zero 2035 target in July 2023 • SBTi verified Net Zero target Target 100% renewable electricity (RE) by 2024 • Already 100% RE at 5 key sites Scope 3 use of our products is the majority of our GHG footprint • Product sustainability fully incorporated in
Slide 139: Key near-term Net Zero actions
Key near-term Net Zero actions Scope 1 and 2 Scope 1 and 2 emissions (<1% of footprint) <0.1% • Continue RE sourcing to reach 100% by 2024 – estimate 90% absolute Scope 1 and 2 reduction • Q3 2023 energy audits of key sites to maximize energy efficiency Downstream emissions – Customers (59%* of foot
Slide 140: Key takeaways
Key takeaways ASM Growth through Innovation strategy is creating significant value for all stakeholders. 1 ASM increases 2025 mid-term revenue targets to €3.0 - €3.6 billion with target range of gross and operating 2 margins maintained. ASM provides new updated mid-term guidance for 2027: 3 • ASM ta