Slide 1: Investor Presentation Q2 2020 Results
INVESTOR PRESENTATION Q2 2020 RESULTS July 28, 2020
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 › COVID-19 update l The health and safety of our employees continues to be our key priority l
Slide 4: 2020 Q2 Key Results
2020 Q2 KEY RESULTS (restated) Q2 2019* Q1 2020 Q2 2020 2017 New orders 269.9 333.5 298.0 773.7 Net sales 260.2 325.1 341.8 730.9 Gross profit margin % 42.8% 44.5% 48.3% 41.3% Operating results 47.0 78.1 87.6 108.9 Operating margin 18.1% 24.0% 25.6% Normalized result from investments 2.0 0.7 10.7 11
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM is a market leader in ALD Equipment market segments 2019 (US$) › Positions in Epitaxy, PECVD Etch and Clean and Vertical Furnaces 14.9bn Lithography Deposition 14.3bn 13.2bn Assembly 3.0bn Test Process 5.5bn Other Diagnostics Wafer 6.7bn Processes 4.2bn VLSI Rese
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner expects a 9% decrease in WFE in 2020, followed by a 2% increase in 2021 (Jul ‘20) Wafer Fab Equipment spending › After downgrading to a drop of 7% last March, VLSI US$bn Research upgraded its forecast for WFE 2020 and 70 now expects an increase of 9% (Jul ‘20). For
Slide 7: Semiconductor Market Growth Drivers
SEMICONDUCTOR MARKET GROWTH DRIVERS Semiconductor sales by key application CAGR ‘17-24 US$b n 700 Consumer Electronics +4% 600 Compute (ex. Servers) -1% Communication (ex. +2% 500 Smartphones) Smartphones +6% 400 Servers +7% 300 Solid State Drives +15% 200 Industrial +4% 100 Automotive +7% 0 2017 20
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$bn Strongest growth in leading edge nodes 70 60 50 7nm and below 10nm 40 14nm 22nm 30 32nm 45nm 20 65nm and above 10 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Gartner, July 2020 › Advanced nodes: market segments with high expected growth › 45nm mainly dri
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 2019 › Engaged with all of the top-10 semiconductor capital equipment spenders Top 3 Nr 4-10 Rest Growing share of wallet with top clients July 28, 2020 | ASM proprietary information | 11
Slide 12: Key Points During the Quarter
KEY POINTS DURING THE QUARTER › COVID-19 update l Health and safety are key priority at ASM l ASM sales in Q2 reached the higher end of guidance, despite challenges in supply chain and logistics, which started to improve towards the end of the quarter › Solid sales momentum in the first half l Drive
Slide 13: ASMPT Results
ASMPT RESULTS Q2 2019 Q1 2020 Q2 2020 Net profit ASMPT (€ million, 100% based) 8 3 43 Normalized result from investments (including ASMI’s share of ASMPT net profit) 2.0 0.7 10.7 Amortization intangible assets resulting from the sale of ASMPT stake in 2013 (3.4) (3.5) (3.3) Results from investments
Slide 14: Financial Overview
FINANCIAL OVERVIEW July 28, 2020 | ASM proprietary information | 14
Slide 15: Q2 2020 Financial Highlights
Q2 2020 FINANCIAL HIGHLIGHTS › Revenue was up 5% q-o-q and up 32% y-o-y (excluding the €103m gain from the patent litigation settlement in Q2 2019) › Bookings down 11% q-o-q and up 10% y-o-y (excluding settlement in Q2 2019). Book-to-bill ratio of 0.9. Q2 backlog of €317m down from €365m in Q1 › Gro
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q3, on a currency comparable level, we expect sales of €300-320 million. Q3 bookings, on a currency comparable level, are expected to be in the range of €280-300 million. Based upon the current market developments we ex
Slide 17: Net Earnings
NET EARNINGS € million Q2 2019 Q1 2020 Q2 2020 New orders 373.1 333.5 298.0 Backlog 299.6 365.3 317.4 Book-to-bill 1.0 1.0 0.9 Net sales 363.3 325.1 341.8 Equipment sales 207.7 269.3 264.4 Spares & service 52.5 55.8 77.4 Patent litigation settlement 103.1 - - Gross profit 214.4 144.8 165.1 Gross pro
Slide 18: R&D Expenditure
R&D EXPENDITURE € million Q2 2019 Q1 2020 Q2 2020 R&D expenditure (37.4) (40.9) (42.2) Capitalized development expenditure 17.1 15.6 15.8 Amortization capitalized development expenditure (3.4) (5.5) (5.3) Impairment capitalized development expenditure - - (4.8) R&D expenses (23.8) (31.0) (36.5) July
Slide 19: Cash Flow
CASH FLOW € million Q2 2019 Q1 2020 Q2 2020 Net earnings 121.6 74.1 74.1 Depreciation, amortization and impairments 17.4 19.2 24.1 Result from investments 1.4 2.8 (7.4) Evaluation tools 1.4 (20.5) (5.8) Other adjustments 26.7 16.3 15.9 Change in working capital (35.3) (10.4) (65.5) Net cash from ope
Slide 20: Balance Sheet
BALANCE SHEET € million Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Cash and cash equivalents 498 529 432 Accounts receivable 200 188 244 Inventories 173 162 176 Other current assets 75 90 85 Right-of-use assets 28 26 28 Investments in associates 778 792 776 Property, plant and equipment 165 180 188 Good
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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q2* Q4* Q2* Q4* 16 17 18 19 20 16 17 18 19 20 Working capital Quarterly sales Days of working capital Numbers based on repo
Slide 22: Historical Development
HISTORICAL DEVELOPMENT € million € million 1.200 240 400 350 1.000 200 300 800 160 250 600 120 200 150 400 80 100 200 40 50 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q2*Q3Q4*Q1 Q2 15 16 17 18 19 20 Net Sales (lhs) EBIT (rhs) Bookings B
Slide 23: July 28, 2020 | ASM proprietary information | 23
July 28, 2020 | ASM proprietary information | 23