Asm International N.v. · EURONEXT:ASM
Asm International — Shareholder Meeting (May 2013)
44 slides from Asm International's shareholder meeting presentation, May 16, 2013
Slide 1: ASMI Annual Meeting of Shareholders
ASMI ANNUAL MEETING OF SHAREHOLDERS Chuck del Prado, President & CEO May 16 2013 Confidential and Proprietary ASMI Annual Meeting of Information Shareholders May 16 2013 Confidential and Proprietary Information
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: All matters discussed in this business and strategy update, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that co
Slide 3: Outline
OUTLINE › Semiconductor Equipment Market in 2012 › ASMI Results in 2012 › Status ASMI Back-end - Results - Products & Business highlights › Status ASMI Front-end - Results - Products & Business highlights › Market Outlook and Conclusions ASMI Annual Meeting of Shareholders May 16 2013 Confidential a
Slide 4: Our Industry Turned Down in 2012
OUR INDUSTRY TURNED DOWN IN 2012 Semi Capital Equipment (USD billion) 50 +10,8% 40 +142,1% -15,4% 30 20 -45,4% 10 0 2007 2008 2009 2010 2011 2012 After 2 years of growth, our industry declined in 2012 Source: Gartner, March 2013 ASMI Annual Meeting of Shareholders May 16 2013 Confidential and Propri
Slide 5: Assembly & Packaging Equipment Market 2012
ASSEMBLY & PACKAGING EQUIPMENT MARKET 2012 Assembly & Packaging equipment market 2012 (USD billion) 6 5 +140% -7% +3% -9% 4 3 -27% -31% 2 1 0 2007 2008 2009 2010 2011 2012 Assembly & Packaging equipment spending declined in 2012 Source: Gartner, March 2013 ASMI Annual Meeting of Shareholders May 16
Slide 6: SMT Equipment Market 2012
SMT EQUIPMENT MARKET 2012 SMT* equipment market 2012 (USD million) 6000 5000 +162% +3% 4000 +11% 0% -19% +37% +8% -12% 3000 +37% 2000 -50% 1000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SMT equipment market was down in 2012 Source: ASM SIPLACE market intelligence, February 2013 *SMT = Surf
Slide 7: Wafer Fab Equipment Declined in 2012
WAFER FAB EQUIPMENT DECLINED IN 2012 Wafer Fab Equipment by device type (USD billion) 40 +10% +15% 35 +145% -18% 30 25 -33% 20 15 -47% Other 10 Memory 5 Logic 0 Foundry 2007 2008 2009 2010 2011 2012 › 2012 WFE spending decreased by 18% › Logic & Foundry declined slightly in 2012 › Memory declined su
Slide 8: Outline
OUTLINE › Semiconductor Equipment Market in 2012 › ASMI Results in 2012 › Status ASMI Back-end - Results - Products & Business highlights › Status ASMI Front-end - Results - Products & Business highlights › Market Outlook and Conclusions ASMI Annual Meeting of Shareholders May 16 2013 Confidential a
Slide 9: Key Highlights – 2012
KEY HIGHLIGHTS – 2012 › Revenues down 13% y-o-y - FE sales decreased 19% y-o-y - BE sales decreased 11% y-o-y › EBIT margin of 6% - FE EBIT margin down from 14% in 2011 to 0.4% in 2012 - BE EBIT margin down from 18% in 2011 to 8% in 2012 › Cash flow from operations of €42m in 2012 - Proposal to ASMI
Slide 10: Net Earnings – Group
NET EARNINGS – GROUP FULL YEAR FULL YEAR Q1 Q2 Q3 Q4 Q1 (EUR million) 2011 2012 2012 2012 2012 2012 2013 Front-end 456.1 370.4 94.8 86.5 96.1 93.1 80.0 Back-end 1,178.3 1,047.7 216.3 291.4 313.2 226.8 160.3 NET SALES 1,634.3 1,418.1 311,1 377.9 409.3 319.9 240.3 Front-end 37.8% 33.6% 33.0% 33.0% 31.
Slide 11: Balance Sheet – Group
BALANCE SHEET – GROUP (EUR million) DEC 2011 MAR 2012 JUN 2012 SEP 2012 DEC 2012 MAR 2013 Cash and cash equivalents 390 405 334 297 291 565 Other current assets 806 773 917 901 804 208 Property, plant and equipment, net 260 259 279 275 275 61 Goodwill, net 52 51 54 52 52 12 Other assets 74 74 84 89
Slide 12: Working Capital – Group
WORKING CAPITAL – GROUP (EUR in million) Days 600 150 500 125 400 300 100 200 75 100 0 50 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 10 11 12 10 11 12 Front-end Back-end Front-end Back-end Group ASMI Annual Meeting of Shareholders May 16 2013 Confidential and Proprietary Information 12
Slide 13: Cash Flow – Group
CASH FLOW – GROUP FULL FULL Q1 Q2 Q3 Q4 (EUR million) YEAR YEAR 2012 2012 2012 2012 2011 2012 Net result 316.2 40.4 14.2 32.8 17.2 (23.8) Depreciation 49.5 56.9 13.1 13.7 15.1 15.0 Working capital (39.2) (60.8) 19.3 (62.2) (59.7) 41.8 Restructuring & impairments 4.9 0.1 0.1 - - - Others (114.7) 5.9
Slide 14: Bookings & Backlog - Group
BOOKINGS & BACKLOG - GROUP Bookings (EUR million) 600 500 400 Book to bill ratio 300 in 2012 of 1.0 (2011 200 was 0.8) 100 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 07 08 09 10 11 12 Back-end Front-end Backlog (EUR million) 700 600 Backlog decreased 500 from €331m at
Slide 15: Use of ASMPT Dividends
USE OF ASMPT DIVIDENDS Convertible Dividends ASMI shares Dividend Balance bonds received repurchased pay outs (EUR million) repurchased 2007 49.1 -32.9 -5.4 10.8 2008 49.1 -36.5 -27.1 -14.5 2009 21.4 -27.0 -5.6 2010 65.6 -55.8 9.8 2011 87.2 -22.3 64.9 2012 * -40.6 -27.5 -68.1 TOTAL 272.4 -77.1 -142.
Slide 16: ASMI Share Price in 2012
ASMI SHARE PRICE IN 2012 › ASMI share price increased 20% in 2012, but declined in March’13 following sale stake ASMPT › Comparison same sector companies Source: google.com/finance and Euronext ASMI Annual Meeting of Shareholders May 16 2013 Confidential and Proprietary Information 16
Slide 17: ASMI Share Price Last 5 Years
ASMI SHARE PRICE LAST 5 YEARS ASMI share price increased 49% (end of 2012) compared to 2008 Source: google.com/finance and Euronext ASMI Annual Meeting of Shareholders May 16 2013 Confidential and Proprietary Information 17
Slide 18: Commitment to Sustainability
COMMITMENT TO SUSTAINABILITY › We are committed to the Electronics Industry Citizenship Coalition (EICC) tenets to conduct our business responsibly in all areas of Environment, Health & Safety, Labor, Ethics and Supply Chain. › We strive to earn the trust of all stakeholders through responsible and
Slide 19: Health, Safety, Environment
HEALTH, SAFETY, ENVIRONMENT Recordable Case Rate (CY) Front-end S 1.2 › Among benchmark companies A 1 › Key customer recognition for EHS 0.8 F Back-end E 0.6 BE Goal=0.50 › RCR continues to outperform 0.4 Industry T 0.2 FE Goal=0.35 › Safety Training top-to-bottom 2009 2010 2011 2012 Y improvement A
Slide 20: Outline
OUTLINE › Semiconductor Equipment Market in 2012 › ASMI Results in 2012 › Status ASMI Back-end - Results - Products & Business highlights › Status ASMI Front-end - Results - Products & Business highlights › Market Outlook and Conclusions ASMI Annual Meeting of Shareholders May 16 2013 Confidential a
Slide 21: Back-end – What Has Changed in 2012?
BACK-END – WHAT HAS CHANGED IN 2012? › Assembly & Packaging revenue down 23% compared to 2011 › Record leadframe revenue, leadframe business profitable › SMT improved its market position and profit margin in 2012 ASMI Annual Meeting of Shareholders May 16 2013 Confidential and Proprietary Informatio
Slide 22: Historical Development – Back-end
HISTORICAL DEVELOPMENT – BACK-END Net sales in EUR mln EBIT in EUR mln 400 120 350 100 300 80 250 60 200 40 150 20 100 50 0 0 - 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 07 08 09 10 11 12 ASMI Annual Meeting of Shareholders May 16 2013 Confidential and Proprietary In
Slide 23: Summary 2012 – Back-end
SUMMARY 2012 – BACK-END FULL FULL Q1 Q2 Q3 Q4 YEAR YEAR (EUR million) 2012 2012 2012 2012 2011 2012 Net sales 1,178.3 1,047.7 216.3 291.4 313.2 226.8 Gross margin 409.8 315.9 65.3 102.0 95.3 53.3 as % of sales 34.8% 30.2% 30.2% 35.0% 30.4% 23.5% Selling, general and administrative (115.3) (137.6) (2
Slide 24: Bookings & Backlog – Back-end
BOOKINGS & BACKLOG – BACK-END Bookings (EUR million) 450 400 350 300 Book-to-Bill 250 200 ratio in 2012 150 100 was 1.0 50 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 07 08 09 10 11 12 ASMAS ASMPT Backlog (EUR million) 500 450 400 350 Backlog 300 250 declined 12% 200 to
Slide 25: Products – Back-end
PRODUCTS – BACK-END IC manufacturing - LED manufacturing - Surface Mount Technology MARKET APPLICATION ASM RELATIVE POSITIONING IC manufacturing • Die bonding Among the top 2 position • Wire bonding for most products › Assembly tools • Flip chip bonding / TCB Qualified by most IDM’s › Packaging
Slide 26: Back-end Product Highlights: Thermal Compression Bonding
BACK-END PRODUCT HIGHLIGHTS THERMAL COMPRESSION BONDING (TCB) PROCESS NCP Dispensing Alignment › Capable to address Bond head fine pitch flip chip Dispensing Die (Cu pillar) bonding NCP and 2.5D/3D package applications Substrate Substrate Heat › Popularity of mobile devices expected to Force + Heat
Slide 27: Back-end Product Highlights: Chip Assembly
BACK-END PRODUCT HIGHLIGHTS Chip Assembly (CA) solution for advanced packages › Expanding SMT equipment into non- traditional placement market › Ideal for WLFO (Wafer Level Fan Out), SiP (System-in-package), LED, Embedded PCB and flip chips › Enables the combination of flip-chip and SMT operations i
Slide 28: Outline
OUTLINE › Semiconductor Equipment Market in 2012 › ASMI Results in 2012 › Status ASMI Back-end - Results - Products & Business highlights › Status ASMI Front-end - Results - Products & Business highlights › Market Outlook and Conclusions ASMI Annual Meeting of Shareholders May 16 2013 Confidential a
Slide 29: Historical Development – Front-end
HISTORICAL DEVELOPMENT – FRONT-END Net sales in EUR million EBIT in EUR million 140 25 20 120 15 100 10 5 80 0 60 -5 40 - 10 - 15 20 - 20 0 - 25 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 07 08 09 10 11 12 13 ASMI Annual Meeting of Shareholders May 16 2013 Confidentia
Slide 30: Summary 2012 – Front-end
SUMMARY 2012 – FRONT-END Full Year Full Year Q1 Q2 Q3 Q4 Q1 (EUR million) 2011 2012 2012 2012 2012 2012 2013 Net sales 456.1 370.4 94.8 86.5 96.1 93.1 80.0 Gross margin 172.3 124.5 31.3 28.5 30.1 34.6 30.2 as % of sales 37.8% 33.6% 33.0% 32.9% 31.4% 37.1% 37.7% Selling, general and administrative (6
Slide 31: Bookings & Backlog – Front-end
BOOKINGS & BACLOG – FRONT-END Bookings & Backlog – Front-end Bookings Backlog 200 180 160 140 120 100 80 60 40 20 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 07 08 09 10 11 12 13 Book-to-Bill ratio in 2012 of 1.0 ASMI Annual Meeting of Shareholders May 16 2013 Confid
Slide 32: ASM Products – Front-end
ASM PRODUCTS – FRONT-END › Market requirements: 32nm → 22nm → 14nm and beyond › Strong IP protected portfolio PROCESS APPLICATION ASM RELATIVE POSITIONING • ALD key for High-k Metal Gate #1 in the served ALD market ALD and PEALD technology Qualified by nearly all Logic & › ALD solution (Hafnium
Slide 33: Front-end – What Has Changed in 2012? (I)
FRONT-END – WHAT HAS CHANGED IN 2012? (I) › ALD and PEALD strongly developed further traction in 2012 › Growing share of wallet with top clients › Two new high productivity platforms introduced in 2012 › Gross margin improvement focus - Inefficiency issues solved - Several cost measures in implement
Slide 34: Front-end – What Has Changed in 2012? (II)
FRONT-END – WHAT HAS CHANGED IN 2012? (II) Two new high productivity platforms IntrepidTM XP Epitaxy High productivity XP cluster with 4 Epi reactors Dragon® XP8 PECVD Eagle® XP8 PEALD High throughput, low CoO single wafer deposition tool ASMI Annual Meeting of Shareholders May 16 2013 Confidential
Slide 35: Products – Front-end: Growing Wallet Share with Top Clients
PRODUCTS – FRONT-END GROWING WALLET SHARE WITH TOP CLIENTS Key Developments: Customer Revenue (%) 100 › Diversification of customer base from Logic to Memory 75 and Foundries 50 › Weight of Asia growing › Wider adoption number of 25 top capex customers 0 2009 2010 2011 2012 2013E Top 3 Nr 4-10 Rest
Slide 36: Front-end's Competitive Advantages
FRONT-END’S COMPETITIVE ADVANTAGES › Established a leading position in ALD technology, since start in 1999 › Shift from Planar Logic to 3D FinFET will require more ALD/PEALD › PEALD offered on high productivity platform › ASMI is one of the two leading suppliers of PECVD Low-k films › In the EPI mar
Slide 37: Outline
OUTLINE › Semiconductor Equipment Market in 2012 › ASMI Results in 2012 › Status ASMI Back-end - Results - Products & Business highlights › Status ASMI Front-end - Results - Products & Business highlights › Market Outlook and Conclusions ASMI Annual Meeting of Shareholders May 16 2013 Confidential a
Slide 38: Semi Capital Equipment Outlook
SEMI CAPITAL EQUIPMENT OUTLOOK Semi capital equipment outlook (USD billion) 50 +10,8% +142,1% 40 +18,6% -15,4% 30 -8,2% 20 -45,4% 10 0 2008 2009 2010 2011 2012 2013 2014 Market predicted to be down in 2013 by approximately 8% and to grow in 2014 Source: Gartner, March 2013 ASMI Annual Meeting of Sha
Slide 39: Semiconductor Market Through 2017
SEMICONDUCTOR MARKET THROUGH 2017 Semiconductor Sales1 ($B) Semiconductor Dollars Per Unit1 ($) 160 180 Ultramobile PC 160 140 Notebook PC PC 140 120 Desk-based PC 120 100 Utility/Basic Media Tablet 100 Premium Media Tablet 80 80 60 Premium Smartphone 60 Media Tablet 40 40 Smartphone 20 Traditional
Slide 40: ASM Back-end Markets
ASM BACK-END MARKETS Assembly & Packaging equipment (USD billion) 5 +140% -7% 23% -9% 4 -13% 3 -28% -31% 2 1 0 2008 2009 2010 2011 2012 2013 2014 Assembly & Packaging equipment spending is expected to decline in 2013, and to rebound in 2014 Source: Gartner, March 2013 ASMI Annual Meeting of Sharehol
Slide 41: ASM Front-end Markets
ASM FRONT-END MARKETS Wafer Fab Equipment Forecast by technology node Share of 28nm, (USD billion) 22nm and 14nm of total Equipment spending 40 increasing in +15% 2013-2014 35 +17% +145% 30 -18% -8% -33% 25 ≤ 14 nm 20 22 nm 15 -47% 32 nm 10 45 nm 05 65 nm 00 ≥ 90 nm 2008 2009 2010 2011 2012 2013 201
Slide 42: Q2 Financial Outlook ASMI
Q2 FINANCIAL OUTLOOK ASMI › Based upon the current backlog and our current visibility: - Following the healthy book to bill ratios in Q4 2012 and Q1 2013 our Front-end operations are expected to show a strong double digit sales increase in Q2 compared to Q1. We also expect a double digit increase of
Slide 43: Summary
SUMMARY › Front-end revenue declined 19% compared to 2011 › Back-end revenue declined 11% compared to 2011 › ALD and PEALD strongly developed further traction in 2012 › Continued focus on Front-end Gross Margin improvement › Company believes to be well positioned to benefit from the semi industry en
Slide 44: ASMI Annual Meeting of Shareholders May 16 2013
ASMI Annual Meeting of Shareholders May 16 2013 Confidential and Proprietary Information 44