ASMI Investor presentation Q3-2013 … PowerPoint - ASMI_Investor presentation Q3-2013_1November2013.pptx [Read-Only]

© 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.


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


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


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


ASMI’s Addressable Markets

6

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


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

9

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


Source: Gartner, September 2013


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


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

12

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



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

14


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


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


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


Cash Flow


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)


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).


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)


Historical development


Bookings & Backlog

Backlog decreased 5% to €111m (excl. FX effect €112m)Book-to-Bill ratio remained at 1.0 (Q2: 1.0)


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


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


Selected ASMI Products

A412Vertical FurnaceHighest productivity

Epsilon® 3200EpitaxyAdvanced strainlayers

Pulsar®ALDHigh-k leader

Eagle® XPPECVD ALDPEALDCommonPlatform

Documents

ASMI Investor presentation Q3-2013 … PowerPoint - ASMI_Investor presentation Q3-2013_1November2013.pptx [Read-Only]