Slide 1: Investor Presentation Q4 2018 Results
INVESTOR PRESENTATION Q4 2018 RESULTS February October 21, 2019 26, 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 second half 2018 driven by ASMI’s strong position in logic/foundry › Healt
Slide 4: 2018 Key Results
2018 KEY RESULTS (restated) (restated) € million Q4 2017 Q3 2018 Q4 2018 2017 2018 New orders 203.2 258.0 301.6 773.6 942.1 Net sales 181.5 195.7 254.7 730.9 818.1 Gross profit margin % 39.6% 40.9% 41.7% 41.3% 40.9% Operating results 26.0 28.0 46.2 108.9 124.3 Normalized result from investments 14.0
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments 2018 (US$) equipment › ASM is a market leader in ALD Etch and Clean Deposition › Positions in Epitaxy, PECVD 15.7bn 15.1bn and Vertical Furnaces Process Diagnostics Lithography 6.5bn 13.5bn Other Wafer Processes Ass
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › WFE to decrease by 17% in 2019 according to Gartner, mainly due to a Wafer Fab Equipment spending drop in memory investments US$bn › Investments in leading edge 60 equipment remain the key driver 50 › Note that ASMI’s statement on the 40 WFE outlook is as follows: “For 201
Slide 7: Semiconductor Market Growth Drivers
SEMICONDUCTOR MARKET GROWTH DRIVERS Semiconductor sales by key application CAGR ‘16-22 600 US$bn Automotive +11% 500 Industrial +13% 400 Solid-State Drives +20% 300 Servers +14% 200 Smartphones +6% 100 Communication (ex. +4% Smartphones) Compute (ex. Servers) +2% 0 2016 2017 2018 2019 2020 2021 2022
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE US$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 February 21, 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$1.5 billion by ‘20-’21 l Focus on driving the addressable market within the single wafer ALD space › With sales growth of 17% on a US$ basis, ASMI outperformed WFE in 2018 l AS
Slide 13: ASMPT Results
ASMPT RESULTS Q4 2017 Q3 2018 Q4 2018 Sales ASMPT (HK$ million) 4,227 5,167 4,768 Net profit ASMPT (€ million, 100% based) 49 66 23 Normalized result from investments (including ASMI’s share of ASMPT net profit) 14.0 16.8 6.1 Amortization intangible assets resulting from the sale of ASMPT stake in 2
Slide 14: Financial Overview
FINANCIAL OVERVIEW February 21, 2019 | ASM proprietary information | 14
Slide 15: Q4 2018 Highlights
Q4 2018 HIGHLIGHTS › Revenues up 30% q-o-q and up 40% y-o-y › Bookings up 17% q-o-q and up 48% y-o-y. Book-to-bill ratio of 1.2 › Q4 backlog of €302m compared to €252m in Q3 › Gross margin of 41.7% in Q4 vs. 40.9% in Q3. The q-o-q increase was mainly due to a better sales mix › Increase in OpEx in Q
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q1, on a currency comparable level, we expect sales of €225-245 million, while we expect sales in Q2 to be at the €200-230 million level. For Q1, on a currency comparable level, bookings are expected in the range of €20
Slide 17: Net Earnings
NET EARNINGS (restated) Q4 2018 vs Q4 2018 vs € million Q4 2017 Q3 2018 Q4 2018 Q3 2018 Q4 2017 New orders 203.2 258.0 301.6 17% 48% Backlog 171.2 251.8 301.5 20% 76% Book-to-bill 1.1 1.3 1.2 Net sales 181.5 195.7 254.7 30% 40% Gross profit 71.8 80.0 106.3 26.3 34.5 Gross profit margin % 39.6% 40.9%
Slide 18: R&D Expenditure
R&D EXPENDITURE € million Q4 2017 Q3 2018 Q4 2018 R&D expenditure (29.5) (30.7) (36.1) Capitalized development expenditure 14.7 11.7 15.1 Amortization capitalized development expenditure (2.9) (2.8) (3.7) Impairment capitalized development expenditure (3.0) (0.1) (1.2) R&D expenses (20.7) (21.8) (25
Slide 19: Cash Flow
CASH FLOW € million 2017 2018 Net earnings 452.4 157.1 Depreciation, amortization and impairments 52.1 55.4 Result from investments (374.5) (48.4) Evaluation tools (4.9) (23.0) Other adjustments 38.2 10.1 Change in working capital (47.2) (14.4) Net cash from operating activities 116.1 136.8 Capital
Slide 20: Balance Sheet
BALANCE SHEET € million Dec 31, 2017 Dec 31, 2018 Cash and cash equivalents 836 286 Accounts receivable 163 194 Inventories 143 172 Other current assets 20 29 Investments in associates 721 765 Property, plant and equipment 107 149 Goodwill and other intangible assets 125 161 Evaluation tools at cust
Slide 21: Working Capital
WORKING CAPITAL € million Days 300 140 250 120 200 100 150 80 100 60 50 0 40 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 13 14 15 16 17 18 13 14 15 16 17 18 Working capital Quarterly sales Days of working capital Numbers ba
Slide 22: Historical Development
HISTORICAL DEVELOPMENT € million € million 900 160 350 800 140 300 700 120 250 600 100 200 500 80 400 150 60 300 100 40 200 50 100 20 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 2015 2016 2017 2018 13 14 15 16 17 18 Net Sales (lhs) EBIT (rhs
Slide 23: Breakdown Sales
BREAKDOWN SALES (restated) (restated) (restated) (restated) (restated) 17Q1 17Q2 17Q3 17Q4 FY17 18Q1 18Q2 18Q3 18Q4 FY18 € million Equipment sales 119.4 172.5 136.9 138.5 567.3 120.3 160.7 148.7 201.7 631.5 Spares & service sales 37.4 42.0 41.2 43.0 163.6 38.6 48.0 47.0 53.0 186.6 Total net sales 15
Slide 24: Restated Quarters 2017
RESTATED QUARTERS 2017 (restated) (restated) (restated) (restated) (restated) € million 17Q1 17Q2 17Q3 17Q4 FY17 New orders 204.2 205.9 160.4 203.2 773.7 Net sales 156.8 214.5 178.1 181.5 730.9 Gross profit margin % 43.0% 43.4% 38.8% 39.6% 41.3% Operating results 19.4 42.7 20.8 26.0 108.9 Normalized
Slide 25: February 21, 2019 | ASM proprietary information | 25
February 21, 2019 | ASM proprietary information | 25