Asm International N.v. · EURONEXT:ASM
Asm International — Q1 2019 Earnings Presentation
24 slides from Asm International's earnings presentation, Apr 24, 2019
Slide 1: Investor Presentation Q1 2019 Results
INVESTOR PRESENTATION Q1 2019 RESULTS April 24, October 26,2019 2016 ASM proprietary information © 2019 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 long term growth prospects l ALD market expected to be a key growth market, ASMI has leadership position in ALD l Driving structurally higher sales in the other product lines l Solid momentum in the first part of 2019 driven by ASMI’s strong position in logic/foundry ›
Slide 4: 2019 Q1 Key Results
2019 Q1 KEY RESULTS (restated) Q1 2018 Q4 2018 Q1 2019 2017 New orders 206.5 301.6 235.0 773.7 Net sales 159.0 254.7 248.8 730.9 Gross profit margin % 37.8% 41.7% 41.3% 41.3% Operating results 11.8 46.2 47.0 108.9 Normalized result from investments 16.3 6.1 3.1 112.4 Amortization intangible assets r
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments 2018 (US$) equipment › ASM is a market leader in ALD Etch and Clean Deposition › Positions in Epitaxy, PECVD 16.4bn 14.5bn and Vertical Furnaces Process Diagnostics Lithography 6.8bn 13.8bn Other Wafer Processes Ass
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner expects 17% decrease in WFE in 2019, followed by 6% decrease in 2020 (Dec ’18) Wafer Fab Equipment spending › VLSI Research expects 20% decrease in WFE in US$bn 2019, followed by 8% increase in 2020 60 › Expected drop in WFE in 2019 is mainly caused 50 by a signifi
Slide 7: Semiconductor Market Growth Drivers
SEMICONDUCTOR MARKET GROWTH DRIVERS Semiconductor sales by key application CAGR 600 ‘16-23 Automotive +11% 500 Industrial +12% 400 Solid-State Drives +18% 300 Servers +12% 200 Smartphones +6% 100 Communication (ex. Smartphones) +4% 0 Compute (ex. Servers) +2% 2016 2017 2018 2019 2020 2021 2022 2023
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn 60 Strongest growth in leading edge nodes 50 40 7nm and below 10nm 14nm 30 22nm 32nm 45nm 20 65nm and above 10 0 2015 2016 2017 2018 2019 2020 2021 2022 Gartner, December 2018 › Advanced nodes: market segments with high expected growth › 45nm mainly driven
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 for
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 portfo
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION ASMI sales 2018 › Engaged with all of the top-10 semiconductor capital equipment spenders Top 3 Nr 4-10 Rest Growing share of wallet with top clients April 24, 2019 | ASM proprietary information | 11
Slide 12: Highlights
HIGHLIGHTS › Solid growth expected for the ALD market l We expect the single wafer ALD market to reach a size of approx. US$1.5 billion by ‘20-’21 l Focus on expanding our addressable market within the single wafer ALD space › ASMI outperformed WFE in 2018 and expects to outperform WFE in 2019 l ASM
Slide 13: ASMPT Results
ASMPT RESULTS Q1 2018 Q4 2018 Q1 2019 Sales ASMPT (HK$ million) 4,346 4,768 3,660 Net profit ASMPT (€ million, 100% based) 65 23 12 Normalized result from investments (including ASMI’s share of ASMPT net profit) 16.3 6.1 3.1 Amortization intangible assets resulting from the sale of ASMPT stake in 20
Slide 14: Financial Overview
FINANCIAL OVERVIEW April 24, 2019 | ASM proprietary information | 14
Slide 15: Q1 2019 Highlights
Q1 2019 HIGHLIGHTS › Revenue down 2% q-o-q and up 56% y-o-y › Bookings down 22% q-o-q and up 14% y-o-y. Book-to-bill ratio of 0.9 › Q1 backlog of €292 compared to €302m in Q4 › Gross margin of 41.3% in Q1 vs. 41.7% in Q4. The q-o-q decrease was mainly due to sales mix differences › Q1 OpEx decreased
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q2, on a currency comparable level, we expect sales of €230-250 million while bookings, on a currency comparable level, are expected to be in the range of €240-260 million. For 2019, general expectations are still that
Slide 17: Net Earnings
NET EARNINGS Q1 2019 vs Q1 2019 vs € million Q1 2018 Q4 2018 Q1 2019 Q4 2018 Q1 2018 New orders 206.5 301.6 235.0 (22)% 14% Backlog 217.9 301.5 292.0 (3)% 34% Book-to-bill 1.3 1.2 0.9 Net sales 159.0 254.7 248.8 (2)% 56% Gross profit 60.2 106.3 102.8 (3)% 71% Gross profit margin % 37.8% 41.7% 41.3%
Slide 18: R&D Expenditure
R&D EXPENDITURE € million Q1 2018 Q4 2018 Q1 2019 R&D expenditure (28.4) (36.1) (33.4) Capitalized development expenditure 10.1 15.1 15.3 Amortization capitalized development expenditure (2.8) (3.7) (3.0) Impairment capitalized development expenditure - (1.2) (0.8) R&D expenses (21.0) (25.8) (21.9)
Slide 19: Cash Flow
CASH FLOW € million Q1 2018 Q1 2019 Normalized net earnings 15.0 49.4 Depreciation, amortization and impairments 11.5 17.1 Result from investments (12.5) 0.3 Evaluation tools (14.0) (1.4) Other adjustments 6.1 (2.7) Change in working capital 27.4 (12.3) Net cash from operating activities 33.5 50.4 C
Slide 20: Balance Sheet
BALANCE SHEET € million Dec 31, 2018 Mar 31, 2019 Cash and cash equivalents 286 312 Accounts receivable 173 193 Inventories 172 174 Other current assets 49 42 Right-of-use Assets - net - 30 Investments in associates 790 802 Property, plant and equipment 149 150 Goodwill and other intangible assets 1
Slide 21: Working Capital
WORKING CAPITAL € million Days 300 140 250 120 200 100 150 80 100 60 50 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 13 14 15 16 17 18 19 13 14 15 16 17 18 19 Working capital Quarterly sales
Slide 22: Historical Development
HISTORICAL DEVELOPMENT € million € million 900 160 350 800 140 300 700 120 250 600 100 500 200 80 400 150 60 300 100 40 200 20 50 100 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 13 14 15 16 17 18 19 Net Sales (lhs) EBIT (rhs) Bookings Backlog
Slide 23: Breakdown Sales
BREAKDOWN SALES 18Q1 18Q2 18Q3 18Q4 FY18 19Q1 € million Equipment sales 120.3 160.7 148.7 201.7 631.5 196.8 Spares & service sales 38.6 48.0 47.0 53.0 186.6 51.9 Total net sales 159.0 208.7 195.7 254.7 818.1 248.8 April 24, 2019 | ASM proprietary information | 23
Slide 24: April 24, 2019 | ASM proprietary information | 24
April 24, 2019 | ASM proprietary information | 24