Conference call presentation / investor presentation - Full year and fourth quarter 2014 results (PDF)

ams
Full year and fourth quarter
results 2014
Kirk Laney, CEO
Michael Wachsler-Markowitsch, CFO
Moritz Gmeiner, Head of IR
February 2015
© ams AG 2015
We are shaping the world with sensor solutions
We provide high
performance
analog solutions
to the most
challenging
applications
in sensors,
sensor
interfaces,
power
management, and
wireless.
© ams AG 2015
Page 2
ams at a glance
Our business
• Focus on high performance analog semiconductors
• Sensor solutions, sensor interfaces, power management, wireless
• Ultra-low power, highest accuracy, sensitivity and integration
• World class analog design + in-house manufacturing
• Best-in-class solutions for leading OEMs
By the numbers
• 440+ analog engineers
• Over 30 years of design experience
• Record revenues
FY 2014 EUR464m/$614m (2013: EUR378m/$502m)
Q4 2014 EUR139m/$174m (Q4 2013: EUR103m/$141m)
• 1,600+ employees worldwide
• 8,000+ customers
© ams AG 2015
Page 3
Our focus
High performance sensors and analog ICs
Target markets
Core expertise
Consumer & Communications
Industrial, Medical, Automotive
64% of revenues (FY 2014)
36% of revenues (FY 2014)
Sensor solutions,
sensor interfaces
Power
management
Wireless
© ams AG 2015
Page 4
OUR MARKETS
CONSUMER AND COMMUNICATIONS
INDUSTRIAL, MEDICAL, AUTOMOTIVE
2014 highlights Consumer & Communications
Excellent performance and most significant growth driver for ams
• New product launches create powerful momentum for largest ams business
• Very strong position with major smartphone, tablet PC and mobile device OEMs going forward
NFC booster: customer success drives extremely high volumes, boosting growth in H2 2014
• Significant socket with impressive shipments in 2014 and very high run rates into 2015
• Leading technology to optimize NFC mobile transactions, ongoing OEM push in NFC
Gesture sensor solution: a high volume success in multiple platforms
• Strong run rates for multi-functional modules shipping into Asian customers
• Global leader in advanced light sensors, RGB color sensors expanding further
Other consumer & communications product lines perform well
• Continued leadership in MEMS microphone interface ICs focused on cost optimization
• New PMIC solutions generate revenues, focus on larger mobile devices and wearables
© ams AG 2015
Page 6
Consumer & Communications
Sensor solutions and sensor interfaces, power management, wireless
Sensors
Power management
Wireless
Specialty solutions
•
•
•
•
• Specialty PMICs
• Power
management ICs
• Lighting management
ICs
• NFC antenna booster
• NFC solutions
• RFID readers
(UHF/HF)
• LF/HF/UHF transceivers/smart tags
• Active noise
cancellation (ANC)
• Other wireless
sensors (lightning
sensor)
• Specialty sensor
interfaces
Light sensors
Gesture sensors
Biosensors
MEMS microphone
ICs
• Hall/inductive/
capacitive sensors
© ams AG 2015
Page 7
Light sensors
Worldwide leader in intelligent integrated light sensors
Sensor solutions
• Gesture - sense hand movement in proximity of
device surface to create touchless interface
• RGB color - for full analysis of light spectrum
and temperature; enhance display picture quality
• Ambient light (ALS) - measure monochromatic
ambient light to control display brightness
• Proximity (Prox) - detect proximity of user’s ear
to control display/touchscreen on-state
Gesture 4-in-1
module adoption
ongoing, 70m
units shipped
Broad coverage of consumer electronics markets
• Smartphones, tablet PCs, mobile devices, HDTV, PCs, notebooks
New application: Cognitive lighting
• Major light sensor-based opportunity becomes reality
• Dynamic management improves industrial, home and office lighting
• Combining LED control and sensor technologies
© ams AG 2015
Page 8
Emerging: Cognitive lighting
Smart lighting management integrates sensing and control to unlock energy savings
Sensor innovation
• AS721x Autonomous Daylighting Manager industry’s first integrated IoT-connected
chip-scale smart lighting manager
• Combines photopic sensors including nano-optic
filters with LED control and wireless connectivity
• Senses ambient daylight to deliver constant
lux levels as amount of outside light varies
• Brings cost-effective sensing, control and
connectivity to luminaires and light engines
First product
sampling,
available Q3 2015
Benefits
• Highly integrated system-level sensing and control
offers major reduction in system cost and time-to-market
• Network-enabled architecture for IoT connectivity via BLE,
ZigBee, WiFi, Ethernet/PoE or other networks
• Smart lighting sensor solutions create natural,
convergent IoT sensor hubs within smart buildings
© ams AG 2015
Page 9
Wireless solutions – NFC, RFID
NFC solutions for mobile transactions
• Antenna boost technology with automatic
tuning offers unique performance
• Antenna booster enables fully reliable
mobile device NFC transactions
• Solutions for smartphone NFC, boosted
secure elements, NFC on SIM/microSD
card and reader implementations
• World-leading expertise in NFC design
• Full roadmap to exploit technology leadership
Very high NFC
booster shipments
into major socket
RFID solutions for authentication
• Integrated one-chip UHF readers and other RFID
solutions offer low solution cost to help RFID deployment
• Applications: consumables, materials tracking and authentication,
supply chain and retail security
© ams AG 2015
Page 10
Success: NFC antenna booster
Technology leader enabling reliable NFC for mobile transactions
Wireless innovation
• Advanced analog active tag NFC booster
• Active antenna boost overcomes reception
problems in smartphones or for small form
factor antennas
• Designed for ultra small form factor applications
including wearables
Key growth driver
given strong NFC
momentum, 139m
units shipped
Benefits
• High Frequency (HF) active antenna booster
amplifies the antenna by >80x for NFC in small areas
• Shrinks antenna size to barely visible miniature footprint
• Ensures 100% read rate overcoming field-dampening
metal environments
• Enables NFC on SIM cards and boosted secure elements
• Unrivalled and industry-recognized solution for reliable NFC
in smartphones, mobile devices and wearables
© ams AG 2015
Page 11
Audio: MEMS microphone ICs, ANC
MEMS microphone interface ICs
•
•
•
•
Market leader in very dynamic market
Product portfolio serving wide spectrum of
end customer requirements
Leading position in low noise solutions
Strong customer partnership focusing on
higher value market segments
High volume MEMS
mic interface line
for broad range
of devices
ANC (active noise cancellation)
•
•
•
Technology leader offering pure analog
noise reduction without need for DSP
Significant audio quality improvement
at very low power and minimized footprint
Emerging high volume opportunities
in smartphones and mobile devices
© ams AG 2015
Page 12
Power management solutions for mobile devices
Specialty PMIC solutions for optimum system performance
Specialty PMIC solutions
• High performance PMIC design for
Building
optimum system performance
specialty PMIC
• Added value for clamshell and other mobile
revenue stream
devices utilizing multicore processors
• Support leading mobile graphics processor
vendor’s current and upcoming platforms
• Tight analog integration means significantly
reduced footprint
• Programmable solutions maximize battery
life and enable superior graphics or camera performance
© ams AG 2015
Page 13
2014 highlights Industrial, Medical, Automotive
Robust performance of industrial markets
• Positive demand environment across end markets drives growth in 2014
• Further improvement of market position at large OEMs as recognized technology specialist
Acquisition of two smaller sensor specialists enhances sensor portfolio
• Applied Sensor: specialty gas sensors, shipping into automotive applications
• acam mess-electronic: high resolution time-based sensors, shipping into industrial applications
Medical business develops positively
• Medical imaging and industry-leading sensor capabilities as core elements of Medical success
• High value design-wins in Asia and further broadening of customer base
Strong growth in automotive business
• Healthy end market demand and vehicle platform launches as key drivers in 2014
• Stuffed pipeline of design-wins including Japan and Asia creates multi-year growth path
© ams AG 2015
Page 14
Industrial
Sensor solutions and sensor interfaces
Industrial automation and control
• Motion control
• Industrial sensors including time-based sensors
• Drives and electrical motors
2D and 3D position encoders
• Magnetic rotary and linear encoders
• Integrated high performance Hall sensors
• Broad portfolio for widest range of applications
Building automation and security
• HVAC
• Safety
• Sensor networking and bus systems
Seismic sensor interfaces
• Very high sensitivity sensor solutions
© ams AG 2015
Page 15
Medical
Sensor solutions and sensor interfaces, power management, wireless
Medical imaging: Leader in lowest noise sensor solutions
• Computed tomography
• Digital X-ray
• Mammography
• Ultrasound
Personal health devices
• Diabetes management
• Heart rate monitors
Robotic surgical solutions
• Encoder-driven accuracy
© ams AG 2015
Page 16
Automotive
Sensor solutions and sensor interfaces, bus systems, power management
Position sensing
• Pedal & throttle position
• Transmission (clutch, gear shift)
• Steering wheel angle and torque
• Brushless motor control applications
LIDAR collision
avoidance continues
model penetration
Battery power management
• Battery management for conventional, hybrid, and electric vehicles
• Highly-efficient power management
Safety systems
• Collision avoidance LIDAR systems (object detection)
• ESP (Electronic Stability Program)
• FlexRay® high bandwidth data network
Gas sensing
• Air quality sensing
© ams AG 2015
Page 17
Scalable manufacturing for profitable growth
In-house capacity + manufacturing partnerships
Wafer manufacturing
• 200mm in-house fab (2015E 180k wafers p.a.)
• CMOS nodes: 0.18µm – 0.35µm – 0.8µm
• Specialty analog processes
• Best-in-class efficiency
• Multi-source security: TSMC, UMC, IBM
Fab capacity
expansion: step 1
ramped, step 2
nearing completion
Assembly and test
• In-house test in Austria and the Philippines
• Multi-source assembly locations
• End-to-end fully integrated supply chain
• Further expansion of test capacity in 2015
© ams AG 2015
Page 18
Global value chain
Headquarters
Design centers
Test center
Sales offices
•
•
•
•
Additional design resources from Applied Sensor and acam acquisitions
12 design centers
Austria, Switzerland, Italy (2), Spain, Slovenia, USA (2), India,
Germany (2 new), Japan (new)
High volume test center
Philippines
Continuing growth in distribution design-ins and revenues
© ams AG 2015
Page 19
Quality and responsibility commitment
Quality commitment
• Certified under
- ISO/TS16949 (automotive)
- ISO/TS13485 (medical)
- ISO 14001 (environment)
• Zero defect commitment with industry-leading field failure rates
• Global quality systems with local resources/labs in key markets
• Top rankings by customers
Corporate responsibility
• Member of the UN Global Compact
• CDP (Carbon Disclosure Project) participant
• Conflict metals/hazardous-use materials program implemented
• 70% reduction of CO2 footprint since 2003;
ongoing reduction measures
© ams AG 2015
Page 20
Financial results
Michael Wachsler-Markowitsch,
CFO
© ams AG 2015
Key figures
EURm
(IAS)
Total revenues
2014
2013
Q4 2014
Q4 2013
464.4
+ 22.9%
377.8
139.0
+ 34.3%
103.5
Gross margin
(excl. acquisition-related costs)
(incl. acquisition-related costs)
56%
55%
55%
52%
56%
54%
56%
54%
Result from
operations
(EBIT)
(excl. acquisition-related costs)
(incl. acquisition-related costs)
116.1
105.4
73.9
63.9
34.5
31.4
26.7
24.2
97.5
+ 60.4%
60.8
28.8
+ 23.4%
23.3
1.74 / 1.67
1.43 / 1.37
1.11 / 1.072)
0.90 / 0.872)
0.51 / 0.48
0.42 / 0.40
0.42 / 0.412)
0.35 / 0.332)
Net result
EPS (basic/diluted)
1)
CHF
EUR
1) Earnings per share in CHF were converted using the average currency exchange rate for the respective periods
2) Earnings per share have been adjusted to reflect the share split of 1:5
© ams AG 2015
Page 22
FINANCIAL RESULTS
P&L
BALANCE SHEET
CASH FLOW
© ams AG 2015
Page 23
Total revenues
EURm
500
150
464.4
400
377.8
+ 22.9%
300
90
200
60
100
30
0
103.5
+ 34.3%
0
2013
•
•
139.0
120
2014
Q4 2013
Q4 2014
Strong revenue growth for full year and particularly Q4 2014
On constant currency basis, revenues 2014 +22% year-on-year, Q4 2014 +26% year-on-year
© ams AG 2015
Page 24
Revenue distribution
% of revenues
Total revenues by market 2014
Total revenues by region 2013/2014
100%
75%
50%
59%
57%
6%
4%
35%
39%
2013
2014
25%
Asia/Pacific
Industry,
Medical,
Automotive
(- 4)
36%
Americas
64%
Consumer &
Communications
(+ 5)
Europe
(EMEA)
0%
•
•
Slight expansion of EMEA business in 2014 but mostly due to billing locations
Stronger Consumer & Communications share of revenues for 2014
© ams AG 2015
Page 25
Total backlog
EURm
Consignment stock
agreements approx. EUR10-12m
140
131.3
120
100
80
60
76.6
+ 71.4%
40
20
0
Dec 31 2013
•
•
Dec 31 2014
Very strong increase in backlog demonstrates strength of consumer business into 2015
Total backlog + designated consignment stock agreements = total customer-committed pipeline
© ams AG 2015
Page 26
Gross profit / gross profit margin
EURm, % of revenues, gross profit including acquisition-related costs
300
56.4%
54.7%
80
56.0%
55.7%
75.6
250
253.2
200
198.0
60
55.5
+ 27.9%
150
+ 36.2%
40
100
20
50
0
0
2013
2014
Q4 2013
Q4 2014
Gross profit margin excluding acquisition-related costs
•
•
Gross margin performance driven by product mix, full utilization and production efficiencies
Gross margin including acquisition-related costs 2014: 54.5%, Q4 2014: 54.4%
© ams AG 2015
Page 27
R&D expenses
EURm, % of revenues
100
25
18.1%
16.7%
16.6%
23.1
20
80
77.0
60
68.5
+ 12.4%
15
40
10
20
5
0
17.3
+ 33.6%
0
2013
•
•
16.6%
2014
Q4 2013
Q4 2014
2014 R&D investments support full multi-year pipeline of customer projects and design-wins
R&D investments to continue within business model target range
© ams AG 2015
Page 28
SG&A expenses
EURm, % of revenues
100
18.3%
25
16.5%
80
60
21.8
20
69.0
+ 11.4%
76.9
15
40
10
20
5
0
15.9
+ 37.1%
0
2013
•
•
15.7%
15.4%
2014
Q4 2013
Q4 2014
SG&A expenses show select sales and support additions, profit-sharing and commissions
Q4 2014 shows profit sharing-driven base effect due to release of accruals compared to Q4 2013
© ams AG 2015
Page 29
Result from operations (EBIT)
EURm, % of revenues
22.7%
120
100
16.9%
105.4
35
30
20
63.9
31.4
24.2
+ 29.8%
+ 64.9%
15
40
10
20
5
0
0
2013
•
•
22.6%
25
80
60
23.4%
2014
Q4 2013
Q4 2014
Strong EBIT growth driven by H2 2014, Q4 2014 includes R&D expansion and one-time effects
EBIT margin excl. acquisition-related costs 2014 25.0%, Q4 2014 24.8%
© ams AG 2015
Page 30
Net financial result
EURm
3
3
2
2
1
1
0.1
0
0
-1
-0.5
-1
- 140.0%
-2
-1.2
-0.9
-2
-3
-3
2013
•
•
- 1000.0%
2014
Q4 2013
Q4 2014
2014 financial result mainly impacted by revaluation of equity earn-out for IDS acquisition
Effects from exchange rate fluctuations reflected in financial result
© ams AG 2015
Page 31
Tax expense
EURm, tax rate: % of result before tax (PBT)
8
7
4.1%
6.3%
6.6
6
5
5
4
3
4.2%
5.6%
4
2
3
2
1.7
2.6
1
1.0
1
0
0
2013
2014
Q4 2013
Q4 2014
Tax rate
•
•
Low tax expense 2014 due to application of historic tax losses and international tax structures
2015 P&L tax rate and cash tax rate expected to reach mid to high single-digit
© ams AG 2015
Page 32
Net income / earnings per share
EURm, earnings per share (EPS) in CHF and EUR (basic/diluted)
100
CHF 1.11 / 1.07
EUR 0.90 / 0.87
CHF 1.74 / 1.67
EUR 1.43 / 1.37
30
CHF 0.42 / 0.41
EUR 0.35 / 0.33
CHF 0.51 / 0.48
EUR 0.42 / 0.40
97.5
28.8
25
80
20
23.3
+ 23.4%
+ 60.4%
60
60.8
15
40
10
20
5
0
0
2013
•
•
2014
Q4 2013
Q4 2014
Net income increase reflects strong increase in operating profitability
2013 figures adjusted for 1:5 share split in 2014
© ams AG 2015
Page 33
FINANCIAL RESULTS
P&L
BALANCE SHEET
CASH FLOW
© ams AG 2015
Page 34
Working capital
EURm
Working capital at year-end
100
87.9
80
75.9
+15.8%
60
2014
2013
Trade receivables
+ Inventories
- Trade liabilities
79.0
59.9
51.0
63.7
40.5
28.3
Working capital
in % of revenues
87.9
19%
75.9
20%
40
20
0
Dec 31 2013
•
•
Dec 31 2014
Successful working capital management relative to revenue growth
Increase in inventories due to expansion of production capacity (higher WIP)
© ams AG 2015
Page 35
Net cash, cash and short term investments
EURm, % of total liabilities
Net cash, equity ratio
60
Cash and short-term investments
240
68%
58%
229.6
210
180
40
44.2
+ 1.8%
45.0
150
120
90
20
104.3
+ 120.1%
60
30
0
0
2013
2014
Dec 31 2013
Dec 31 2014
Equity ratio
•
•
Encouraging net cash development despite investments into capacity
Opportunistic addition of debt resulting in higher cash balance
© ams AG 2015
Page 36
FINANCIAL RESULTS
P&L
BALANCE SHEET
CASH FLOW
© ams AG 2015
Page 37
Cash flow from operations
EURm, % of revenues
140
28.0%
26.5%
130.2
120
100
100.2
32.1%
50
28.3%
44.6
40
+ 29.9%
80
30
60
20
29.3
+ 52.2%
40
10
20
0
0
2013
2014
Q4 2013
Q4 2014
Cash flow as % of revenues
•
•
Very strong cash generation driven by business growth
High level of cash flow to revenues underlines attractive business model
© ams AG 2015
Page 38
Capital expenditures
EURm, % of revenues - Acquisition of intangibles, property, plant and equipment
80
12.5%
15.1%
25
70.1
20
70
60
9.1%
50
40
47.1
15
+ 48.8%
6.6%
12.6
10
30
20
5
6.8
+ 85.3%
10
0
0
2013
2014
Q4 2013
Q4 2014
Capital expenditures as % of revenues
•
•
2014 capital expenditures include significant expansion of in-house production capacity
2015: completion of wafer fab build-out and expansion of test capacity
© ams AG 2015
Page 39
Dividend policy and proposal
Dividend policy
• Distribution of 25% of net earnings
Dividend proposal for 2014
• EUR 0.33 per share outstanding
Dividend timetable
• AGM June 9, 2015
• Payment date June 18, 2015
© ams AG 2015
Page 40
Company highlights and outlook
Kirk Laney, CEO
© ams AG 2015
Company highlights
Analog makes sense
© ams AG 2015
Page 42
Outlook 2015 and first quarter 2015
Another growth year expected for 2015
Very strong project and revenue pipeline with major OEMs across markets
• Large scale projects for various leading consumer OEMs extending into 2016
• High value automotive and industrial pipeline offers multi-year revenue outlook
Continued R&D investments and expansion of design resources,
3 new design centers 2014/15 (2x Germany, 1x Japan)
New product ramps including cognitive lighting and consumer health biosensor expected in 2015
Q1 2015 expected to show sequential growth vs. Q4 2014 contrary to typical seasonality,
expected revenues EUR 145-150m, operating margin expected slightly up from Q4 2014
© ams AG 2015
Page 43
Thank you
Please visit our website www.ams.com
© ams AG 2015
Profit and loss statement
EURm
(IAS)
2014
2013
Q4 2014
Q4 2013
Total revenues
• Products
• Foundry
464.4
425.0
39.4
377.8
343.0
34.8
139.0
129.7
9.3
103.5
95.1
8.4
Gross profit
• Gross margin (incl. acquisition-related costs)
253.2
54.5%
198.0
52.4%
75.6
54.4%
55.5
53.7%
Research and development
Selling, general and administrative
Other operating income/expenses
- 77.0
- 76.9
6.0
- 68.5
- 69.0
3.3
- 23.1
- 21.8
0.7
- 17.3
- 15.9
1.9
Result from operations (EBIT)
105.4
63.9
31.4
24.2
(
(
(
(
Operating margin
22.7%
16.9%
22.6%
23.4%
Net financing costs
- 1.2
- 0.5
- 0.9
0.1
104.1
- 6.6
63.4
- 2.6
30.5
- 1.7
24.3
- 1.0
97.5
60.8
28.8
23.3
1.74 / 1.67
1.43 / 1.37
1.11 / 1.072)
0.90 / 0.872)
0.51 / 0.48
0.42 / 0.40
0.42 / 0.412)
0.35 / 0.332)
(incl. acquisition-related costs)
•
Result before tax
Income tax result
Net result
EPS (basic/diluted)
CHF1)
EUR
1) Earnings per share in CHF were converted using the average currency exchange rate for the respective periods
2) Earnings per share have been adjusted to reflect the share split of 1:5
© ams AG 2015
Page 45
Balance sheet
EURm
Dec 31,
2014
Dec 31,
2013
Liabilities and equity
Dec 31,
2014
Cash and short term invest.
Trade receivables
Inventories
Other current assets
229.6
79.0
59.9
18.3
104.3
63.7
40.5
10.5
Interest-bearing debt
Trade liabilities
Provisions
Other liabilities
38.5
51.0
37.6
42.1
0.8
28.3
23.2
24.1
Total current assets
386.7
219.1
Total current liabilities
169.2
76.3
Fixed assets
Intangible assets
Investments
Deferred tax asset
Other non-current assets
204.1
315.7
6.5
34.1
7.7
145.4
243.0
5.1
33.3
7.1
Interest-bearing debt
Employee benefits
Provisions
Deferred tax liabilities
Other liabilities
146.1
27.0
27.1
20.8
8.9
59.3
23.6
22.9
13.6
12.6
Total non-current assets
568.2
433.9
Total non-current
liabilities
Shareholders’ equity
230.0
132.0
555.8
444.7
Total liabil. and equity
955.0
653.0
Assets (IAS)
Total assets
955.0
653.0
Dec 31,
2013
© ams AG 2015
Page 46
Cash flow statement
EURm
(IAS)
2014
2013
Q4 2014
Q4 2013
Income before tax
Depreciation
104.1
37.3
63.4
35.2
30.5
10.6
24.3
8.4
Cash flow from operations
130.2
100.2
44.6
29.3
Capital expenditures
- 70.1
- 47.1
- 12.6
- 6.8
- 108.9
- 46.8
- 32.2
- 6.4
125.3
- 0.8
-14.1
14.0
- 33.6
- 19.4
116.2
- 0.4
0
2.1
- 15.4
0
99.1
- 37.9
113.4
- 10.6
Change in cash and cash equivalents
120.3
15.4
125.8
12.3
Cash and cash equivalents at end of period
203.7
83.4
203.7
83.4
Cash flow from investing activities
Proceeds from borrowings
Repayment of borrowings
Dividends paid
Changes resulting from capital increase
Cash flow from financing activities
© ams AG 2015
Page 47
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