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April 24, 2015
ASM proprietary information © 2015 ASM
INVESTOR PRESENTATIONQ3 2015 RESULTS
October 29, 2015
October 29, 2015 | ASM proprietary information | 2
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this
press release, 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-looking statements. These include, but are not limited
to, economic conditions and trends in the semiconductor industry generally and the timing
of the industry cycles specifically, currency fluctuations, corporate transactions, financing
and liquidity matters, the success of restructurings, the timing of significant orders, market
acceptance of new products, competitive factors, litigation involving intellectual property,
shareholder and other issues, commercial and economic disruption due to natural
disasters, terrorist activity, armed conflict or political instability, epidemics and other risks
indicated in the Company's reports and financial statements. The Company assumes no
obligation nor intends to update or revise any forward-looking statements to reflect future
developments or circumstances.
October 29, 2015 | ASM proprietary information | 3
INVESTMENT HIGHLIGHTS
› ALD is a key growth market ALD market expected to outperform the broader equipment market
ASMI has leadership positions in ALD and PEALD
› Strong revenue performance Revenue increased 25% in the first nine months of 2015
Outperforming the overall equipment market
› Improved profitability Gross margin increased to 44.1% in the first nine months of 2015 compared to
43.1% in the same period of 2014
› Solid balance sheet Strong cash position, no debts
Operating cash flow of EUR 111m in the first nine months of 2015
Announcement of new EUR 100m share buyback program for 2015/2016
20% higher dividend of EUR 0.60 per share paid in 2015
October 29, 2015 | ASM proprietary information | 4
Q3 2015 KEY RESULTS
Q3 2014 Q2 2015 Q3 2015EUR million
New orders 156.2 166.6 148.1
Net sales 122.2 201.0 162.0
Gross profit margin % 43.2% 45.1% 43.7%
Operating results 17.2 42.1 23.2
Result from investments 30.7 20.7 8.1
Amortization intangible assets resulting from the sale of the 12% stake of ASMPT (5.7) (6.8) (6.7)
Net earnings 54.6 39.9 35.7
Normalized net earnings (excl. amortization intangible assets resulting from the sale of the 12% stake of ASMPT)
60.2 46.7 42.4
October 29, 2015 | ASM proprietary information | 5
SEMICONDUCTOR EQUIPMENT MARKET
› ASM focuses on deposition
equipment
› ASM has leadership positions in
ALD and Plasma-Enhanced
ALD (PEALD)
› Positions in Epitaxy, PECVD
and Vertical Furnaces
Lithography9.6bn
Etch and Clean8.6bn
Deposition8.4bn
Process Diagnostics
4.5bn
Other Wafer Processes
2.5bn
Test3.9bn
Assembly4.0bn
VLSI Research, Jul. 2015
Equipment market segments (US$)
ASM’s focus is on deposition equipment
October 29, 2015 | ASM proprietary information | 6
+4.9%+8.1%+9.2%
-2.5%
-7.7%
+16.3% -0.5%
05
1015202530354045
2013 2014 2015 2016 2017 2018 2019
EQUIPMENT MARKET OUTLOOK
› Gartner forecasts Wafer Fab
Equipment spending to be
slightly lower in 2015, followed
by a ~3% decrease in 2016
› Investment in leading edge
equipment remains the key
driver
Gartner, Oct 2015
Gartner forecasts a slightly lower Wafer Fab Equipment market in 2015
Wafer Fab Equipment spending
October 29, 2015 | ASM proprietary information | 7
SEMICONDUCTOR MARKET
SEMICONDUCTOR SALES BY KEY APPLICATION
Semiconductor growth drivers are mobile devicesPerformance per Watt becoming key metric factor in chip designSemi revenue declines in 2015, due to steeper decline in PC’s
Gartner, Sep 2015
0
20
40
60
80
100
120
140
160
2013 2014 2015 2016 2017 2018 2019
US$bn
Smartphone, Premium
Smartphone, Basic/Utility
Mobile Phone, Traditional
Hybrid PC/Tablet
Tablet
PC, Ultramobile Clamshell
PC, Traditional Notebook
PC, Desk-based
October 29, 2015 | ASM proprietary information | 8
WAFER FAB EQUIPMENT SPENDING BY NODE
Advanced nodes: market segments with high expected growth
0
5
10
15
20
25
30
35
40
45
2014 2015 2016 2017 2018 2019
$B
Wafer Fab Equipment by Node
7 nm and below
10 nm
14 nm
22 nm
32 nm
45 nm
65nm & above
Gartner, Oct. 2015
Share of 14m, 10nm and 7nm of total Equipment spending increasing in 2016-2018
US$bn
October 29, 2015 | ASM proprietary information | 9
ALD IS AN ENABLING TECHNOLOGY
› ALD technology is a key enabler of Moore’s Law Strengths of Atomic Layer Deposition: high-precision deposition of smooth and
conformal ultra-thin films, even on high aspect ratio structures
Device scaling, new materials and 3D architectures increase demand for ALD/PEALD
› ASMI has leading positions in ALD/PEALD Leadership positions in ALD for high-k metal gate applications as well as in PEALD for
spacer defined multiple patterning in Memory market and for new applications
Combined ALD and PEALD business accounted for more than half of ASM’s
equipment revenue in 2014
› Strong market outlook ALD Drivers are further deployment of ALD/PEALD in volume manufacturing, new
applications and additional process steps
ALD market expected to outperform the broader semiconductor equipment market
October 29, 2015 | ASM proprietary information | 10
ESTIMATED ALD MARKET GROWTH
Source: Gartner, VLSI, ASMI, October 2015
0
200
400
600
800
1,000
1,200
1,400
2014 2018
US$m
› ALD market approximately
doubling over the next
three to four years
› Key growth areas are
patterning layers, high-k/
metal gate and other
applications
ALD market single wafer / minibatch
October 29, 2015 | ASM proprietary information | 11
COMPETITIVE ADVANTAGES
› Focused player, differentiated technologies
› Track record of innovation
› Global network, streamlined operations
› Leadership in ALD Developing ALD technology since 1999
Largest player in both single wafer ALD and PEALD
› Close cooperation with the leading IC manufacturers
› Strong IP portfolio
October 29, 2015 | ASM proprietary information | 12
CUSTOMER CONCENTRATION
› Engaged with all top capex
customers
› Diversification of customer
base from Logic to Memory
and Foundries
› Weight of Asia growing
ASMI revenue
Growing share of wallet with top clients
0%
25%
50%
75%
100%
2009 2010 2011 2012 2013 2014
Top 3 Nr 4-10 Rest
October 29, 2015 | ASM proprietary information | 13
HIGHLIGHTS
› Strong momentum ALD ALD/PEALD further established as mainstream enabling technologies
Bookings and revenue driven by combined ALD/PEALD business
› Solid results in Q3 Revenue decreased 19% compared to record high level in Q2
Gross margin at 43.7%, EBIT margin at 14.3%
› Shareholder remuneration Announcement of new share buyback program of EUR 100m for 2015/2016
Previous 2014/2015 program of EUR 100m was completed in May 2015
20% higher dividend of EUR 0.60 per share paid in 2015
› Further actions to structurally improve performance Continued cost focus
October 29, 2015 | ASM proprietary information | 14
ASMPT RESULTS
Q3 2014 Q2 2015 Q3 2015
Sales ASMPT (HK$m) 4,582 3,752 3,241
Net profit ASMPT (EURm, 100% based) 77 53 20
Result from investments (including ASMI’s 40% share of ASMPT net profit) 30.7 20.7 8.1
Amortization intangible assets resulting from the sale of the 12% stake of ASMPT (5.7) (6.8) (6.7)
Result from investments 25.0 13.9 1.4
› As of 15 March 2013, our share of approximately 40% of ASMPT’s net
earnings is included in ‘result from investments’
› Amortization intangible assets is expected to remain stable in 2016 and
2017, on a currency comparable basis
October 29, 2015 | ASM proprietary information | 15
FINANCIAL OVERVIEW
October 29, 2015 | ASM proprietary information | 16
Q3 2015 HIGHLIGHTS
› Revenues down 19% q-o-q and up 33% y-o-y
› Bookings down 11% q-o-q and down 5% y-o-y
› Book-to-bill ratio of 0.9
› Q3 backlog of EUR 135m, down from EUR 149m at the end of Q2 2015
› EBIT margin of 14.3% compared to 21.0% in Q2 2015 and 14.1% in Q3
2014
› Cash flow from operations of EUR 63m in Q3
› Normalized net earnings* of EUR 42.4m, down from EUR 46.7m in Q2
2015 and EUR 60.2m in Q3 2014
› Normalized net earnings impacted by translation differences in financial
result (EUR 3m positive in Q3 2015 vs. EUR 13m negative in Q2 2015) and
one-off tax benefit of EUR 9m in Q3 2015* excl. amortization intangible assets resulting from the sale of the 12% stake of ASMPT
October 29, 2015 | ASM proprietary information | 17
FINANCIAL OUTLOOK
Based upon the current backlog and our current visibility:
For Q4 we expect sales between €125 and €145 million, on a currency
comparable level. Orders are expected to come in at a level of €120 to
€140 million, also on a currency comparable level. Our current visibility
is that equipment bookings for next technology node investments in
logic/foundry will start in the course of the first half of 2016.
October 29, 2015 | ASM proprietary information | 18
NET EARNINGS
EUR million Q3 2014 Q2 2015 Q3 2015Q3 2015 vs
Q2 2015Q3 2015 vs
Q3 2014
New orders 156.2 166.6 148.1 (11)% (5)%Backlog 146.9 148.5 134.9 (9)% (8)%Book-to-bill 1.3 0.8 0.9Net sales 122.2 201.0 162.0 (19)% 33%
Gross profit 52.9 90.7 70.7 (22)% 34%
Gross profit margin % 43.2% 45.1% 43.7%
Selling, general and administrative expenses (19.9) (24.7) (24.0) (3)% 21%
Research and development expenses (15.7) (23.4) (23.2) (1)% 47%
Restructuring expenses - (0.5) (0.3) n/a n/a
Operating result 17.2 42.1 23.2 (19.0) 6.0
Operating margin % 14.1% 21.0% 14.3%
Result from investments 30.7 20.7 8.1 (12.6) (22.6)
Amortization intangible assets resulting from the sale of the 12% stake of ASMPT (5.7) (6.8) (6.7) 0.1 (1.0)
Net earnings 54.6 39.9 35.7 (4.2) (18.9)
Normalized net earnings (excl. remeasurement gain, realized gain on sale of ASMPT shares, amortization and fair value adjustments) 60.2 46.7 42.4 (4.3) (17.9)
Normalized net earnings per share, diluted €0.93 €0.74 €0.67 €(0.07) €(0.26)Normalized net earnings excl. results from investments 29.5 26.0 34.3 8.3 4.8
October 29, 2015 | ASM proprietary information | 19
CASH FLOW
EUR million Q3 2014 Q2 2015 Q3 2015
Normalized net earnings 60.2 46.7 42.4
Depreciation and amortization 5.3 6.8 7.0
Result from investments (30.7) (20.7) (8.1)
Other adjustments (15.1) 6.2 (4.0)
Change in working capital 2.6 (27.8) 25.8
Net cash from operating activities 22.4 11.1 63.1
Net cash from investing activities (9.6) (15.2) (6.0)
Dividend paid and capital repaid to ASMI shareholders (4.1) (32.5) (4.7)
Share buyback - (40.0) -
Dividend received from investments 12.5 24.5 18.4
Other (0.1) 4.4 0.2 Net cash from financing activities 8.5 (43.6) 13.9
October 29, 2015 | ASM proprietary information | 20
BALANCE SHEET
EUR millionDec 31, 2014 Sep 30, 2015
Cash and cash equivalents 386 428
Accounts receivable 82 94
Inventories 124 117
Other current assets 27 33
Investments and associates 1,092 1,156
Property, plant and equipment 79 86
Other non-current assets 38 52
Total Assets 1,827 1,965
Accounts payable 61 52
Short-term debt - -
Other current liabilities 74 81
Long-term debt - -
Other non-current liabilities 2 1
Shareholders' equity 1,690 1,830
Total Liabilities and Equity 1,827 1,965
October 29, 2015 | ASM proprietary information | 21
WORKING CAPITAL
EUR million Days
0
50
100
150
200
250
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
11 12 13 14 15
Working capital Quarterly sales
40
50
60
70
80
90
100
110
120
130
140
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
11 12 13 14 15
Days of working capital
October 29, 2015 | ASM proprietary information | 22
BOOKINGS AND BACKLOG
EUR million
0
20
40
60
80
100
120
140
160
180
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 Q1 Q2 Q3
09 10 11 12 13 14 15
Bookings Backlog
October 29, 2015 | ASM proprietary information | 23
HISTORICAL DEVELOPMENT
EUR million
40-
30-
20-
10-
-
10
20
30
40
50
0
50
100
150
200
250
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
09 10 11 12 13 14 15
Net Sales (lhs) EBIT (rhs)
October 29, 2015 | ASM proprietary information | 24
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