Slide 1: Investor Presentation Q1 2016 Results
INVESTOR PRESENTATION Q1 2016 RESULTS April April 24,21, 2016 2015 ASM proprietary information © 2016 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 press release, except for any historical data, are forward-looking statements. Forward- looking statements involve risks and uncertainties that could cause actual
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS › ALD is a key growth market z ALD market expected to outperform the broader equipment market z ASMI has leadership position in ALD › Strong revenue performance z Revenue increased 23% in 2015 and by 14% at constant currencies z Outperforming the overall equipment market › Impr
Slide 4: Q1 2016 Key Results - IFRS
Q1 2016 KEY RESULTS - IFRS Q1 2015 Q4 2015 Q1 2016 2014 2015 New orders 158.3 135.4 163.8 602.1 608.4 Net sales 162.0 144.7 142.4 545.6 669.7 Gross profit margin % 43.1% 44.8% 43.9% 43.1% 44.1% Operating results 31.1 4.0 18.8 93.4 111.1 Result from investments 13.0 1.6 6.3 61.9 43.2 Amortization int
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments (US$) equipment Assembly › ASM is a market leader in ALD Test 3.6bn 3.3bn Lithography 8.1bn › Positions in Epitaxy, PECVD Other Wafer Processes and Vertical Furnaces 2.2bn Etch and Process Clean Diagnostics 8.1bn 3.
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner forecasts WFE Wafer Fab Equipment spending spending to decrease by 2% in 2016, followed by 7% increase 45 in 2017 40 +5.0% › Investment in leading edge +16.3% -1.3% -2.0% +6.8% +7.6% 35 30 -7.7% equipment remains the key 25 20 driver 15 10 5 0 2013 2014 2015 2016 2
Slide 7: Semiconductor Market Drivers
SEMICONDUCTOR MARKET DRIVERS 2016 semiconductor market growth contribution by electronic application Share of growth in 2016 Smartphone 79% SSD 50% Industrial 31% Automotive 29% Wearables 12% Ultramobile 10% Consumer ex. Wearables -1% Traditional Phone -22% Traditional PC -64% Other -25% -6 -4 -2 0
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE Share of 14nm, 10nm US$bn and 7nm of total Equipment spending 40 increasing in 2016-2018 35 30 7nm and below 25 10nm 14nm 20 22nm 32nm 15 45nm 65nm and above 10 5 0 2014 2015 2016 2017 2018 2019 Gartner, Apr 2016 Advanced nodes: market segments with high expected
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law z Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, even on high aspect ratio structures z Device scaling, new materials and 3D architectures increase demand for ALD
Slide 10: Estimated ALD Market Growth
ESTIMATED ALD MARKET GROWTH ALD market single wafer / mini-batch › ALD market approximately doubling in three to four US$m years, compared to 2014 1,400 1,200 › Key growth areas are patterning layers, high-k/ 1,000 metal gate, liners and 800 spacers, and other 600 applications 400 200 0 2014 2018 So
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD z Developing ALD technology since 1999 z Leading market share in ALD › Close cooperation with the leading IC manufacturers › Strong IP portfo
Slide 12: Customer Concentration
CUSTOMER CONCENTRATION › Engaged with all of the top-10 ASMI revenue semiconductor capital 100% equipment spenders › Diversification of customer 75% base from Logic to Memory 50% and Foundries 25% › Strong momentum with 0% 2010 2011 2012 2013 2014 2015 customers beyond the Top 3 Nr 4-10 Rest traditi
Slide 13: Highlights
HIGHLIGHTS › Strong momentum ALD z ALD further established as mainstream enabling technology z Bookings and revenue continued to be driven by ALD › 2016 started with healthy order momentum z Revenue in Q1 decreased 2% sequentially, but order intake increased 21% z Gross margin relatively stable at 4
Slide 14: ASMPT Results
ASMPT RESULTS Q1 2015 Q4 2015 Q1 2016 2014 2015 Sales ASMPT (HK$m) 3,056 2,928 2,862 14,229 12,977 Net profit ASMPT excluding one-offs (EURm, 36 10 16 179 120 100% based) Result from investments (including ASMI’s 40% share of ASMPT net profit) 13.0 1.6 6.3 61.9 43.2 Amortization intangible assets re
Slide 15: Financial Overview - IFRS
FINANCIAL OVERVIEW - IFRS April 21, 2016 | ASM proprietary information | 15
Slide 16: Q1 2016 Highlights
Q1 2016 HIGHLIGHTS › Revenues down 2% q-o-q and down 12% y-o-y › Bookings up 21% q-o-q and up 3% y-o-y. Book-to-bill ratio of 1.2 › Q1 backlog of EUR 147m, up from EUR 128m at the end of Q4 2015 › EBIT margin of 13.2% compared to 2.7% in Q4 2015 and 19.2% in Q1 2015 › EBIT in Q4 2015 included impair
Slide 17: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q2 we expect sales between €130-€140 million, while we expect an order intake of €145-€165 million, both on a currency comparable level. Based upon the current visibility, we expect a much stronger second half as compar
Slide 18: Net Earnings Q1 - IFRS
NET EARNINGS Q1 – IFRS Q1 2016 vs Q1 2016 vs EUR million Q1 2015 Q4 2015 Q1 2016 Q4 2015 Q1 2015 New orders 158.3 135.4 163.8 21% 3% Backlog 190.2 127.8 146.8 15% (23)% Book-to-bill 1.0 0.9 1.2 Net sales 162.0 144.7 142.4 (2)% (12)% Gross profit 69.6 64.8 62.5 (4)% (11)% Gross profit margin % 43.1%
Slide 19: R&D Expenditure
R&D EXPENDITURE EUR million Q1 2015 Q4 2015 Q1 2016 R&D expenditure (20.4) (25.0) (23.8) Capitalized development expenditure 6.2 5.4 7.1 Amortization capitalized development expenditure (3.3) (1.2) (4.1) Impairment capitalized development expenditure - (16.2) - R&D expenses (17.5) (36.9) (20.8) › Im
Slide 20: Cash Flow
CASH FLOW EUR million Q1 2015 Q4 2015 Q1 2016 Normalized net earnings 68.4 17.9 12.2 Depreciation and amortization 9.2 24.3 11.8 Result from investments (13.0) (1.6) (6.3) Other adjustments (22.0) (5.3) 10.1 Change in working capital (0.1) 4.3 (8.6) Net cash from operating activities 42.6 39.5 19.0
Slide 21: Balance Sheet
BALANCE SHEET EUR million Dec 31, 2015 Mar 31, 2016 Cash and cash equivalents 447 416 Accounts receivable 90 100 Inventories 114 109 Other current assets 19 22 Investments and associates 1,181 1,134 Property, plant and equipment 92 91 Capitalized development costs 73 75 Other non-current assets 60 6
Slide 22: Working Capital
WORKING CAPITAL EUR million Days 250 140 200 120 150 100 100 80 50 60 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12 13 14 15 16 12 13 14 15 16 Working capital Quarterly sales Days of working capital April 21, 2016 | ASM proprietary info
Slide 23: Historical Development
HISTORICAL DEVELOPMENT EUR million EUR million 200 250 50 180 40 160 200 30 140 20 120 150 10 100 80 0 100 60 -10 40 50 -20 20 -30 0 0 -40 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 10 11 12 13 14 15 16 10 11 12 13 14 15 16 Net Sales (lhs) E
Slide 24: Change to IFRS Reporting in 2016
CHANGE TO IFRS REPORTING IN 2016 › On Febuary 23, 2016, ASMI announced that as of 2016 it will report results based on IFRS instead of US GAAP. › The main difference is in R&D expenses. Under IFRS R&D costs are expensed as incurred, while under IFRS those development costs that meet certain criteria
Slide 25: Comparable Results US GAAP
COMPARABLE RESULTS US GAAP Q1 2016 vs Q1 2016 vs EUR million Q1 2015 Q4 2015 Q1 2016 Q4 2015 Q1 2015 Net sales 162.0 144.7 142.4 (2)% (12)% Gross profit 70.1 64.8 62.4 (4)% (11)% Gross profit margin % 43.3% 44.8% 43.8% Selling, general and administrative expenses (21.3) (23.0) (22.5) (2)% 6% Researc
Slide 26: April 21, 2016 | ASM proprietary information | 26
April 21, 2016 | ASM proprietary information | 26