ASMI Investor presentation Q3-2013 1November2013.pptx [Read … · 2014-11-05 · new products,...
Transcript of ASMI Investor presentation Q3-2013 1November2013.pptx [Read … · 2014-11-05 · new products,...
© 2009 ASM Proprietary Information
Investor presentation
1 November 2013
1
© 2009 ASM Proprietary Information 22
Safe Harbor Statements
All matters discussed in this business and strategy update, except forany historical data, are forward-looking statements. Forward-lookingstatements involve risks and uncertainties that could cause actualresults to differ materially from those in the forward-lookingstatements. These include, but are not limited to, economic conditionsand trends in the semiconductor industry generally and the timing ofthe industry cycles specifically, currency fluctuations, the success ofrestructurings, the timing of significant orders, market acceptance ofnew products, competitive factors, litigation involving intellectualproperty, shareholder and other issues, commercial and economicdisruption due to natural disasters, terrorist activity, armed conflict orpolitical instability, epidemics and other risks indicated in theCompany's filings from time to time with the U.S. Securities andExchange Commission. All statements are made as of the dateprovided and we assume no obligation nor intend to update or reviseany forward-looking statements to reflect future developments orcircumstances.
© 2009 ASM Proprietary Information 33
Investment Highlights
Strong offering in Front-end equipment Deposition represents a US$ 7.4bn market, growing to US$ 10.0bn in 2017 (VLSI Research)
Leading position in our target market segments
Technology enabling new materials and new device integration roadmaps Fast growth ALD / PEALD markets
Enabling technology for 3D transistor formation (FinFet)
Mobile devices for high performance and / or lower power
Customer expansion from Logic to Foundries and Memory
Attractive value proposition Strong growth opportunities
Consistent profitable Front-end operations
Front-end Gross Margin in line with peers
Strong balance sheet
40% stake in ASMPT, leader in the back-end equipment market
Dividend of Euro 0.50 per share paid over 2012
© 2009 ASM Proprietary Information 44
Q3 Financial Highlights
Pro-formaEUR million Q3 2012 Q2 2013 Q3 2013
New orders 64.3 128.4 112.2 Net sales 96.1 128.6 116.4 Gross profit margin % 31.4% 39.3% 39.1%Operating results (1.6) 16.2 11.6 Result from investments (excl. amortization and fair value purchase price allocation) 13.3 9.2 10.8 Remeasurement gain, realized gain on sale of ASMPT shares, amortization and fair value adjustments - (40.8) (17.2) Net earnings 4.9 (23.4) (0.9)
Normalized net earnings (excl. remeasurement gain, realized gain on sale of ASMPT shares, amortization and fair value adjustments) 4.9 17.4 16.3
© 2009 ASM Proprietary Information 55
Global Semiconductor Equipment Market
Test$ 3.6 B
Etch & Clean$ 5.9 B
Assembly$ 3.8 B
Deposition$ 7.4 B
Lithography$ 7.6 B
Other Wafer Process$ 7.3 B
2013 ($ 35.6 Billion)
Source: VLSI Research, September 2013
© 2009 ASM Proprietary Information 66
ASMI’s Addressable Markets
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Source: VLSI Research, September 2013
Key Growth Drivers: Spending result of need to
advance towards 20/14nm and beyond and by capacity increases
Logic and Foundry spending remain healthy in 2013, Memory in recovery
ASM’s leading ALD technology required for miniaturization of chips
Critical in enabling processing power in mobile devices while improving energy efficiency
$M ASM addressable IC Deposition market by Sub-Segment
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2010 2012 2014 2016
Furnaces
PECVD
Epitaxy
ALD
© 2009 ASM
Semi Capital Equipment Outlook
• Market predicted to be up in both 2014 and 2015
7
05,000
10,00015,00020,00025,00030,00035,00040,00045,00050,000
2009 2010 2011 2012 2013 2014 2015
$M
Semi Capital Equipment
2009-2010 142.0%2010-2011 11.3%2011-2012 -16.1%2012-2013 -8.5%2013-2014 15.8%2014-2015 17.0%
Semi Capital Equipment Y-Y Growth
Proprietary Information
Source: Gartner, September 2013
© 2009 ASM Proprietary Information 8
Semiconductor Market Through 2017PC versus smartphones
Source: Gartner (September 2013), ASM
Source: Gartner (March 2011), ASM
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
Ultramobile PC
Notebook PC
Desk-based PC
Utility/Basic Media Tablet
Premium Media Tablet
Premium Smartphone
Utility/Basic Smartphone
Traditional Mobile Phone
Semiconductor Sales1 ($B)
0
20
40
60
80
100
120
140
160
180
2009 2010 2011 2012 2013 2014 2015 2016 2017
PC
Smartphone
Media Tablet
Traditional Phone
Semiconductor Dollars Per Unit1 ($)
1 - excludes SSD / ODD / RDD / Ethernet / graphics cards
© 2009 ASM
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2009 2010 2011 2012 2013 2014 2015 2016 2017
$B
Wafer Fab Equipment by Node
14 nm & Below
22 nm
32/28 nm
45 nm
65 nm
90 nm & Above
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Key market DriversWafer Fab Equipment Forecast by node
Opportunity for WFE share increase
• Share of 22nm and 14nm estimated to grow from 2013 with expected increased demand for ALD, PEALD
Proprietary Information
Source: Gartner, September 2013
© 2009 ASM Proprietary Information 10
ASMI’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 market ASMI is one of only two global suppliers
© 2009 ASM Proprietary Information 1111
Growing Wallet Share With Top Clients
ASMI Revenue % Key Developments:
Diversification of customer base from Logic to Memory and Foundries (recently driven by ALD/PEALD)
Strong relationships with the top manufacturers in the industry
Momentum Asia growing
© 2009 ASM
PECVD
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ASMI Products
Strong IP protected portfolio
ALD and PEALD• ALD solution (Hafnium oxide)
• PEALD Low temp dielectrics
Market Requirements: 32nm→22nm →14nm and beyondProcess Application
Diffusion Furnace
• Unique “dual reactor dual boat” design
Epitaxy• Epitaxial films for both analog
devices as well as NMOS/PMOS
• Extreme low-k films
• ALD key for High-k Metal Gate technology
• 3D FinFET requires more conformal layers, strength of ALD
• SDDP-application of PE-ALD
• Advanced batch processing
• Smallest footprint per reactor• Lowest Cost of Ownership
• Thick Epi layers for power devices
• Strained Epi films for CMOS
• Advanced intermetal dielectric film
ASM Relative Positioning
#1 in the served ALD market Qualified by nearly all Logic
manufacturers Strengthening inroads into
Memory with PEALD
Leading IC manufacturers are customers
ASM one of only two top vendors
ASM one of only two top vendors in PE-CVD Low-k
Proprietary Information
© 2009 ASM Proprietary Information 1313
Highlights
ALD and PEALD strongly developed further traction
Manufacturing consolidated into 1 location in Singapore since 2010
Significantly streamlined R&D, Product Management and G&A
Gross Margin improvement focus
Further savings opportunities in supply chain in implementation phase
Reduced shareholding in ASMPT from 52% to 40% in March 2013, leading to deconsolidation of the back-end operations
© 2009 ASM Proprietary Information
Financial Overview
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© 2009 ASM Proprietary Information 15
Key Highlights – Q3 2013
• Revenues down 9% q-o-q and up 21% y-o-y on a pro-forma basis
• Bookings down 13% q-o-q and up 74% y-o-y, book-to-bill ratio of 1.0
• Q3 Backlog of € 111m (1.0 X Q3 sales)• EBIT margin of 9.9% compared to 12.6% in Q2 2013 and -1.7%
pro-forma in Q3 2012• Cash flow from operations of € 34m, up from € 1m in Q2• Normalized net earnings* of € 16.3m, compared to € 17.4m in Q2
2013 and € 4.9m pro-forma in Q3 2012.
* excl. re-measurement gain, realized gain on sale of ASMPT shares, amortization and fair value adjustments
© 2009 ASM Proprietary Information 16
Net Earnings
Pro-forma Q3 2013 vs Q3 2013 vs EUR million Q3 2012 Q2 2013 Q3 2013 Q2 2013 Q3 2012
New orders 64.3 128.4 112.2 -13% 74%Backlog 57.3 117.0 111.4 -5% 94%Book-to-bill 0.7 1.0 1.0
Net sales 96.1 128.6 116.4 -9% 21%Gross profit 30.1 50.5 45.6 -10% 51%Gross profit margin % 31.4% 39.3% 39.1%
Selling, general and administrative expenses (16.3) (18.6) (18.2) -2% 12%Research and development expenses (15.4) (15.0) (14.8) -1% -4%Restructuring expenses - (0.7) (1.0) 43% n/a
Operating result (1.6) 16.2 11.6 (4.6) 13.2 Operating margin % -1.7% 12.6% 9.9%
Result from investments 13.3 9.2 10.8 1.6 (2.5)
Net earnings 4.9 (23.4) (0.9) 22.5 (5.8)
Normalized net earnings (excl. remeasurement gain, realized gain on sale of ASMPT shares, amortization and fair value adjustments) 4.9 17.4 16.3 (1.1) 11.4
Normalized net earnings per share, diluted €0.09 €0.28 €0.26 -€0.02 €0.17
© 2009 ASM Proprietary Information 17
Balance Sheet
Pro-forma Pro-formaEUR million Sep 2012 Dec 2012 Sep 2013
Cash and cash equivalents 185 145 304 Other current assets 204 205 201 Property, plant and equipment, net 60 64 51 Goodwill, net 11 12 11 Investments and associates 385 374 1,339 Other Assets 50 34 28 Total Assets 895 833 1,935
ST debt (incl current LT debt) 1 - - Other current liabilities 78 88 94 LT debt & Convertible subordinated debt 144 - - Other long term liabilities 5 4 3 Total Liabilities 228 92 97
Equity 668 742 1,838
Total Liabilities and Equity 895 833 1,935
© 2009 ASM Proprietary Information 18
Cash Flow
Pro-formaEUR million Q3 2012 Q2 2012 Q3 2013
Net earnings (8.4) (23.4) (0.9)
Depreciation and amortization 5.0 5.1 5.1 PPA amortization and adjustments - 40.7 17.2 Result from investments - (9.2) (10.8) Other adjustments (0.5) 4.2 1.9 Change in working capital (20.1) (16.8) 21.8
Net cash from operating activities (24.0) 0.6 34.3
Net cash from investing activities (2.3) 0.1 (0.4)
Dividend paid and capital repaid to ASMI shareholders (0.1) (31.7) (269.7) Other 1.7 4.8 5.8 Net cash from financing activities 1.6 (26.9) (263.9)
© 2009 ASM Proprietary Information 19
Results ASMPT
As of 15 March 2013, the back-end activities are deconsolidated. As of then, our 40% share of ASMPT net profits is included in ‘result from investments’
PPA results in a regular amortization charge of approximately € 6m per quarter
PPA also has a one-off negative impact for value adjustments to an amount of € 39m (€ 28m in Q2 and € 11m in Q3).
Pro-formaEUR million Q3 2012 Q2 2013 Q3 2013
Sales ASMPT 313 283 302 Net profit ASMPT 25.6 23.0 26.8 Net profit ASMPT attributable to ASMI 13.3 9.2 10.8 Remeasurement gain, realized gain on sale of ASMPT shares, amortization and fair value adjustments - (40.8) (17.2) Result from investments 13.3 (31.5) (6.5)
© 2009 ASM Proprietary Information 20
Historical development
© 2009 ASM Proprietary Information 21
Bookings & Backlog
Backlog decreased 5% to €111m (excl. FX effect €112m)Book-to-Bill ratio remained at 1.0 (Q2: 1.0)
© 2009 ASM Proprietary Information 22
Financial Outlook
Based upon the current backlog and our current visibility:Our sales in Q4, on a currency comparable level, are expected to show a single digit increase compared to Q3. Q4 order intake, on a currency comparable level, is expected to show a low double digit increase as compared to Q3.
© 2009 ASM 23
Selected ASMI Products
Proprietary Information
Dragon® XP8PECVD Eagle® XP8PEALD
IntrepidTM XPEpitaxy
Two new high productivity platforms introduced in 2012
High throughput, low CoO single wafer deposition tool
High productivity XP cluster with 4 Epi reactors
© 2009 ASM Proprietary Information 2424
Selected ASMI Products
A412Vertical FurnaceHighest productivity
Epsilon® 3200EpitaxyAdvanced strainlayers
Pulsar®ALDHigh-k leader
Eagle® XPPECVD ALDPEALDCommonPlatform