Asm International N.v. · EURONEXT:ASM
Asm International — FY2024 Earnings Presentation
48 slides from Asm International's earnings presentation, Feb 25, 2025
Slide 1: ASM Q4 and FY 2024 results
ASM Q4 and FY 2024 results February 25, 2025 ASM proprietary information | 1
Slide 2: 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 results to differ materially from those in the forward-
Slide 3: Contents
Contents 1 Investment highlights 2 Q4 2024 and FY 2024 results 3 Business environment, strategy, and targets 4 Annex: detailed financials February 25, 2025 ASM proprietary information | 3
Slide 4: Investment highlights
Investment highlights February 25, 2025 ASM proprietary information | 4
Slide 5: Investment highlights
Investment highlights Strong long-term prospects • ASM is focused on enabling deposition technologies, with key strengths in innovation • Leader in the ALD market, which is expected to grow by a CAGR of 10%-14% from 2022 to 2027 • Expanding our position in the silicon epitaxy (Si Epi) market (CAGR o
Slide 6: Q4 and FY 2024 results
Q4 and FY 2024 results February 25, 2025 ASM proprietary information | 6
Slide 7: FY 2024 financial highlights
FY 2024 financial highlights €731m €2,933m 50.5% New orders (Q4 2024) Revenue Adjusted gross margin(1) (8% yoy at constant currencies) (+12% yoy at constant currencies) (49.3% in 2023) €821m 28.0% €709m Adjusted Adjusted Adjusted operating profit(1) operating margin(1) net earnings(1) (€699m in 2023
Slide 8: Q4 and FY 2024 financial highlights
Q4 and FY 2024 financial highlights Orders and revenue • Q4 2024 orders of €731 million with the increase driven by gate-all-around (GAA) and high-bandwidth memory (HBM) • Q4 2024 revenue of €809 million, at the upper end of our guidance of €770-810 million • FY 2024 revenue came in at €2,933 millio
Slide 9: Q4 orders led by GAA & HBM
Q4 orders led by GAA & HBM Orders and backlog (€m) Q4 2024 new orders came in at €731m, 1,900 1.1 1.0 1.2 +8% yoy at constant currencies (cc) and as 0.9 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 reported. 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1
Slide 10: FY24 revenue up 12% at cc, outperforming WFE
FY24 revenue up 12% at cc, outperforming WFE Quarters Annuals Q4 2024 (€m) (€m) Revenue increased to €809 million, up 27% yoy at cc and 2% qoq at cc. Revenue was driven by foundry, followed by logic, and memory. Combined logic/foundry 1,300 1,200 2,933 continued to account for the majority of sales,
Slide 11: GAA & HBM were the key drivers in 2024
GAA & HBM were the key drivers in 2024 Revenue by customer segment as % of ASM equipment revenue • Momentum in leading-edge logic/foundry accelerated in the course of 2024, driven by GAA • Memory as percentage of equipment sales 2023 2024 increased to 25% in 2024 from a relatively low level of 11% i
Slide 12: Gross margin increased due to strong mix
Gross margin increased due to strong mix Quarters Annuals Q4 2024 (€m) (€m) Adjusted gross profit increased to 50.3%, largely 800 54.0% due to product mix, including solid sales to 50.3% 50.5% China, which were however lower than the same 49.4% 47.9% 49.3% quarter last year. 50.7% 1,800 700 1,740 49
Slide 13: SG&A: Continued focus on cost control
SG&A: Continued focus on cost control Quarters Annuals Q4 2024 (€m) (€m) Adjusted SG&A decreased by 10% yoy (both at cc and as reported), reflecting ongoing focus on 13.2% 11.5% cost control 9.8% 10.6% 11.3% 9.3% 320 FY 2024 136 10.5% 10.0% 312 Adjusted SG&A increased by 3% yoy at cc and 9.7% 116 31
Slide 14: R&D: Investments in growth opportunities
R&D: Investments in growth opportunities Quarters Annuals Q4 2024 (€m) (€m) Adjusted gross R&D increased 7% qoq and increased by 14% yoy as reported. 12.1% 11.2% 12.0% Adjusted net R&D expenses increased 34% yoy 13.0% 14.1% 12.3% 500 12.5% 456 11.0% at cc and 33% as reported, ahead of the 200 12.1%
Slide 15: FY24 operating margin at 28.0%
FY24 operating margin at 28.0% Quarters Annuals Q4 2024 (€m) (€m) Adjusted operating result margin increased to 28.1%, compared to 22.3% in Q4 2023. 28.2% 28.1% 30.0% 28.0% 30.5% 450 950 26.6% FY 2024 Adjusted operating result increased 17% year- 821 400 25.5% 22.3% 25.0% on-year supported by higher
Slide 16: Net earnings at €709 million
Net earnings at €709 million Interest expense, investment in associates, net earnings Adjusted income from investments in (€m) associates (25% shareholding in ASMPT) FY 2024 adjusted income from investments in Q4 23 Q3 24 Q4 24 FY 2023 FY 2024 associates dropped from €21 million to €10 million. Adju
Slide 17: Capex in line with target; working capital improved
Capex in line with target; working capital improved Capital expenditures Capital expenditures Working capital Capex increased to €168 million in 2024, in line (€m) (€m) with our guidance of €100-180 million per annum. 60 189 60 168 Key capex projects in 2024 included the 50 154 48 169 590 50 progres
Slide 18: Solid cash of €927m, FCF up 23% yoy
Solid cash of €927m, FCF up 23% yoy Cash Free cash flow Cash (€m) (€m) Cash position increased to €927 million Free cash flow 927 600 548 FY24 free cash flow improved 23% yoy, driven 500 by improved profitability, and despite higher 747 447 capex and working capital. 637 400 300 200 100 - Dec. 23 Se
Slide 19: Financial outlook
Financial outlook As included in the Q4 2024 earnings press release published on February 25, 2024: Market conditions continue to be mixed looking into 2025, with WFE spending expected to increase slightly. Leading-edge logic/foundry is expected to show the highest growth in 2025. There have been so
Slide 20: Business environment, strategy, and targets
Business environment, strategy, and targets February 25, 2025 ASM proprietary information | 20
Slide 21: Digital transformation drives structural growth
Digital transformation drives structural growth Megatrends driving the semiconductor market Semiconductor revenue (US$ billion) 1400 1200 1000 800 600 400 200 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Source: TechInsights December 2024 February 25, 2025 A
Slide 22: AI to drive increased capacity requirements
AI to drive increased capacity requirements AI semiconductor sales outlook (US$b) What it means for ASM: 200 • Increased capacity • More datacenters with higher content servers GPU, ASIC, communications, HB DRAM 150 • More silicon content edge device (ex. phone GPU, NPU, Auto ADAS systems) More fa
Slide 23: WFE spending expected to grow in 2024-2027
WFE spending expected to grow in 2024-2027 WFE market forecast WFE growth driven by secular trends of AI, (US$b) 5G, EV, edge computing, etc. 140 • Longer-term trend supported by multi- year investments 120 • Further scaling, 3D transitions and GAA driving investments in advanced CMOS 100 • In recen
Slide 24: WFE by application & ASM customer concentration
WFE by application & ASM customer concentration WFE market by ASM FY24 revenue: WFE market by application application customer Logic/foundry to account the larger part of the total (US$b) WFE sales in 2025 (TechInsights) concentration in % ASM FY 2024 revenue: customer concentration 120 The 5 larges
Slide 25: ASM is focused on deposition equipment
ASM is focused on deposition equipment WFE market segments in 2024 (US$b) • ASM’s focus is on deposition • We are market leader in ALD (mid 9 50s% share) and we have a growing 29 14 position in Si Epi. • Selective growth in vertical furnace, PECVD, and SiC Epi and healthy growth in spares and servic
Slide 26: 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 27: ALD market to increase to $4.2-5.0b by 2027
ALD market to increase to $4.2-5.0b by 2027 Single-wafer ALD market outlook Logic/foundry (US$b) • GAA transition • High-k gate & Vt tuning >55% • Sacrificial layers, HM, ESL >55% share • Metals share • Selective ALD 5 US$5.0bn >55% • High aspect ratio TSV share US$4.2bn 4 US$3.7bn Memory 3 US$2.6bn
Slide 28: Si Epi market to reach $2.3-2.9b by 2027
Si Epi market to reach $2.3-2.9b by 2027 Si epitaxy market outlook Change in market mix towards leading edge (US$b) expected in 2024-2027 with move to GAA CAGR Si epitaxy market ‘22-’27 3-8%, with >30% leading-edge segment outgrowing epi >30% share share target market with CAGR ‘22-’27 of 10-15% 3 1
Slide 29: Increased ALD and Epi SAM with move to GAA
Increased ALD and Epi SAM with move 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 nanosheet stack • So
Slide 30: 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 31: ASM investing in capacity ahead of needs
ASM investing in capacity ahead of needs Indexed manufacturing capacity (2020=100) 400 370 330 330 300 2023 demand 2020 200 demand 180 170 100 100 0 2020 2021 2022 2023 2024 2025 Capacity in place for targeted growth through at least 2027 following Singapore second floor expansion, completed in 2023
Slide 32: Accelerating sustainability for a better tomorrow
Accelerating sustainability for a better tomorrow Responsible Sustainability Innovation People Planet supply chain governance Driving towards a more Our people drive our We are on a journey Our work has impacts far We are committed to sustainable future. success. Through our core towards a greener,
Slide 33: Target Net Zero by 2035
Target Net Zero by 2035 ASM launched its Climate Transition Plan (CTP) in March 2024 • Detailing how we aim to achieve our Net Zero by 2035 target As an important milestone, we achieved our target of 100% renewable electricity in 2024 • Driving a 52% year-over-year reduction in Scope 1 + 2 GHG emiss
Slide 34: 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 February 25, 2025 ASM proprietary in
Slide 35: Investor Day targets FY25* & FY27 targets
Investor Day targets FY25* & FY27 targets FY 2023(1) FY 2024(1) FY 2025 FY 2027 Revenue € 2.6 billion € 2.9 billion €3.2 - €3.6 billion* €4.0 - €5.0 billion Revenue growth 9% yoy(2) 12% yoy(2) 16 - 21% CAGR (FY20-FY25) 11 - 16% CAGR (FY22-FY27) Gross margin % 49.3% 50.5% 46 - 50% (FY21-FY25) 46 - 50
Slide 36: Annex: detailed financials
Annex: detailed financials February 25, 2025 ASM proprietary information | 36
Slide 37: (Estimated) amortization and earn-out expenses
(Estimated) amortization and earn-out expenses Q4 2024 FY 2024 FY 2025 FY 2026 FY 2027 € million Estimate Estimate Actual Actual Estimate Cost of sales - - - - - Net research and development expenses (3.5) (14.0) (14.0) (14.0) (14.0) Selling, general and administrative expenses (1.2) (4.9) (4.9) (4.
Slide 38: Adjusted and reported P&L reconciliation
Adjusted and reported P&L reconciliation Q4 2024 Q4 2024 FY 2024 FY 2024 € million Δ Δ reported adjusted reported adjusted Revenue 809 809 2,933 2,933 Gross profit 407 407 1,481 1,481 Gross margin 50.3% 50.3% 50.5% 50.5% Other income 0 0 7 7 SG&A (77) 1 (75) (317) 5 (312) SG&A as a % of revenue 9.5%
Slide 39: Income statement (reported)
Income statement (reported) € million Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 New orders 678 698 755 815 731 2,438 3,000 Backlog 1,434 1,516 1,576 1,559 1,566 1,434 1,566 Book-to-bill ratio 1.1 1.1 1.1 1.0 0.9 0.9 1.0 Revenue 633 639 706 779 809 2,634 2,933 Cost of sales (334) (301)
Slide 40: Balance sheet
Balance sheet € million Dec. 23 Mar. 24 Jun. 24 Sep. 24 Dec. 24 PP&E (incl. RoU assets) 420 435 449 458 519 Evaluation tools at customers 80 89 91 107 110 Goodwill 320 321 321 320 321 Other intangible assets 706 738 770 789 816 Investments in associates 862 880 892 859 904 Other non-current assets 3
Slide 41: Cash flow statement
Cash flow statement € million Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Net earnings from operations 91 173 159 128 226 752 686 Adjustments to reconcile net earnings to net cash from operating 16 22 18 60 35 (123) 135 activities Depreciation, amortization and impairments 52 42 44 51 59
Slide 42: Gross and net R&D expenses (reported)
Gross and net R&D expenses (reported) € million Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2023 FY 2024 Gross R&D expenses 111 109 118 118 126 410 470 Capitalization of development expenses (42) (44) (45) (38) (40) (147) (166) Amortization of capitalized development expenses 11 12 13 19 22 44 66 Imp
Slide 43: Quarterly impact of the modified reporting definition of spares & service revenues
Quarterly impact of the modified reporting definition of spares & service revenues € million Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 2024 reported Equipment revenue 534 583 624 645 2,385 Spares & service revenue 105 123 155 164 547 Total revenue 639 706 779 809 2,933 Installation & qualification rev
Slide 44: Working capital: historical development
Working capital: historical development €m 900 120 800 100 700 600 80 500 60 400 300 40 200 20 100 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 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 2023 2024 Working capital (lhs) Quarterly sales (lhs) Days of working capital (rhs) Numb
Slide 45: Orders and backlog: historical development
Orders and backlog: historical development €m 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 2024 Backlog Orders Numbers based on reported financials Q1 and Q4 2019 exclude the impact of patent litigati
Slide 46: Revenue and operating result: historical development
Revenue and operating result: historical development €m 3,500 900 800 3,000 700 2,500 600 2,000 500 1,500 400 300 1,000 200 500 100 - - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue (lhs) Operating result (rhs) 2019 numbers exclude settlement gains of €159m 2022 and 2023 o
Slide 47: Cash returned to shareholders
Cash returned to shareholders Dividend per share Cumulative cash returned to (€ paid over) market (€m) 2,500 2,000 1,500 3.00 3.00 2.75 2.50 2.50 1,000 1.50 2.00 1.00 500 0.80 0.60 0.70 0.70 1.50 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2015 2016 2017 2018 2019 2020 2021 2022 2023 2
Slide 48: For more information visit asm.com
For more information visit asm.com February 25, 2025 ASM proprietary information | 48