Investor presentation - Full year and fourth quarter 2013 results (PDF)

ams
Full year and fourth quarter
results 2013
Kirk Laney, CEO
Michael Wachsler-Markowitsch, CFO
Moritz Gmeiner, Head of IR
February 2014
© ams AG 2014
What we do for our customers
ams provides
innovative analog
solutions
to the most
challenging
applications
in sensors,
sensor
interfaces,
power
management, and
wireless.
© ams AG 2014
Page 2
ams overview
At a glance
• Focus on high performance analog semiconductors
• Sensor solutions, sensor interfaces, power management, wireless
• Ultra-low power, highest accuracy, sensitivity and integration
• Analog IDM: world class design + in-house manufacturing
By the numbers
• 350+ analog engineers
• Over 30 years of design experience
• Revenues FY2013 EUR378m/$502m (2012: EUR388m/$502m)
Q4 2013 EUR103m/$141m (Q4 2012: EUR98m/$126m)
• More than 1,400 employees worldwide
• Over 7,800 customers worldwide
© ams AG 2014
Page 3
Our focus
High performance sensors and analog ICs
Target markets
Core expertise
Consumer & Communications
Industrial, Medical, Automotive
59% of revenues (FY 2013)
41% of revenues (FY 2013)
Sensor solutions,
sensor interfaces
Power
management
Wireless
© ams AG 2014
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OUR MARKETS
CONSUMER & COMMUNICATIONS
INDUSTRIAL, MEDICAL, AUTOMOTIVE
© ams AG 2014
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2013 highlights Consumer & Communications
Consumer & Communications records decrease in revenues
• Delayed customer projects and base effects as key factors for weak performance
• Position with leading smartphone, tablet PC and mobile device OEMs unchanged; new design-wins
Innovative gesture sensor as next generation solution, trend to RGB color sensing
• Compact module offers gesture, RGB color, proximity, and coupon redemption; first volume orders
• Global leader in advanced light sensors; trend to RGB color sensors for hi-res display management
Wireless NFC and RFID revenues fall short of expectations
• NFC mobile payment hardware solutions do not provide expected momentum in 2013
• Very strong position with antenna booster; convinced to drive substantial growth in NFC
MEMS microphone ICs and other lines perform well
• Shipment growth as leader in a dynamic market focusing on penetration and cost optimization
• Power management solutions develop positively but at a slower pace than envisaged
© ams AG 2014
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Consumer & Communications
Sensor solutions and sensor interfaces, power management, wireless
Sensors
Power management
Wireless
Specialty solutions
• Light sensors,
gesture sensor
• MEMS microphone
ICs
• Hall/inductive/
capacitive sensors
• Power management
ICs
• Lighting
management ICs
• NFC front ends,
active booster
• RFID readers
(UHF/HF/NFC)
• LF/HF/UHF
transceivers/
smart tags
• Active noise
cancellation
(ANC)
• Wireless sensors
(lightning sensor)
• Specialty sensor
interfaces
© ams AG 2014
Page 7
Light sensors
Worldwide leader in intelligent integrated light sensors
Sensor solutions
• Ambient light (ALS) - measure ambient light to
control display brightness gesture
• RGB color - for full analysis of light spectrum
and temperature; enhance display picture quality
• Proximity (Prox) - detect proximity of user’s ear
to control display/touchscreen on-state
• Gesture - sense hand movement in proximity of
device surface to create touchless interface
Technology leader
in gesture, RGB
color, 3D packaging, SDL
Consumer electronics
• Smartphones, tablet PCs
• HDTV, PCs, notebooks
Sensor-driven lighting
• Major light sensor applications for the future
• Smart, dynamically managed home, industrial, and outdoor lighting
© ams AG 2014
Page 8
Innovation: Gesture recognition sensor
Simplifying the human-machine interface (HMI) with high performance touchless technology
Highly integrated gesture sensor innovation
• ams’ leading photodiode technology adapted to provided highly
relable and precise touchless user interface for consumer,
communications, medical, automotive, white goods and industrial
markets.
• Sophisticated gesture engine accommodates complex IR-based
gesture sensing
• TMG3993 IR gesture, color ambient light sensing (ALS) and
proximity detection module with IR LED and MobeamTM bar code
emulation
• Industry standard module package size with <10mm2 footprint
Benefits
• Highly integrated solution for maximum system value
• Configurable gesture commands provide application flexibility
• Reduces system BOM cost and board space requirements
• MobeamTM bar code functionality simplifies mobile commerce
• Enables next generation user interface applications
© ams AG 2014
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Innovation: Mobile coupon redemption
ams and MobeamTM technology partnership for barcode emulation for mobile coupons
Digital light sensor innovation
• Integrated 1D barcode transmit technology using ams industryleading light sensors and MobeamTM’s light-based beaming
technology
• Solution utilizes the same proximity IR LED used for managing
smartphone touchscreen displays
Benefits
• Enables smartphones to transmit UPC barcodes that can be read
by the tens of millions of point-of-sales (POS) laser scanners
• Provides smartphone OEMs with a turn-key mobile couponing
solution and enables differentiation without need for additional
components
• Smartphones offer easy mobile commerce transactions using
barcodes including coupon redemption, gift cards, tickets, etc.
© ams AG 2014
Page 10
Wireless solutions
Mobile transactions: NFC solutions
• Solutions for smartphone NFC and complete
Enabling reliable
NFC on SIM/microSD card with peer-to-peer
smartphone
and reader/tag functions
NFC payments
• Active booster technology analog front-ends
with auto antenna tuning
• World-leading expertise in NFC technology
• Strong design pipeline for large scale implementations
Authentication: RFID solutions
• Integrated one-chip UHF reader solutions offer low solution cost for
cost-effective RFID deployment
• Other RFID: HF readers, smart tags,
LF/HF/UHF transceivers
• Applications: consumables, goods tracking and authentication,
retail shrinkage prevention
© ams AG 2014
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Innovation: RFID active booster technology
Reliable near field communication (NFC) to assure worry-free mobile transactions
Wireless innovation
• Advanced active tag analog front end (AFE)
• Active Boost overcomes reception problems in smartphones or for
small form factor antennas
• Designed for ultra small form factor tag applications
Benefits
• World’s first High Frequency (HF) active booster amplifies the
antenna by >80x for NFC in small areas
• Overcomes field-dampening metal environments to ensure
100% read rate
• Extends range up to 10cm (free air) for NFC on SIM and
microSD cards
• Clears path for mass market adoption of smartphone NFC
payment, already in mass production for SIM/microSD applications
© ams AG 2014
Page 12
MEMS microphone ICs
MEMS microphone interfaces for smartphones, handsets,
tablet PCs, notebooks, and other mobile devices
•
•
•
•
•
Over 1.6 billion MEMS microphone ICs shipped in 2013
Industry leader with over 60% market share
Extensive product portfolio based on more than 10 years of
expertise
Dynamic market driven by device adoption/penetration, audio
quality and cost optimizations
Leader in low noise focusing on higher value market segments
MEMS mics now
standard feature for
mobile devices
© ams AG 2014
Page 13
Power management solutions for mobile devices
PMIC solutions enable optimum battery life and system performance
Power management innovation
• High performance PMIC design delivers superior value for
the next generation of clamshell and other mobile devices
utilizing multicore processor designs
• Supports leading mobile graphics processor’s current and
upcoming platforms
• Patent pending unique technology to manage high speed,
high current power stages
Benefits
• Enables highest frame rates at maximum screen resolutions for
mobile devices while maximizing battery life
• Industry’s first programmable and scalable converter solution
supporting up to 20 amps load in 10 microseconds
• Industry’s smallest total size multiphase DC/DC design, resulting in
a PCB area savings of 50%
© ams AG 2014
Page 14
2013 highlights Industrial, Medical, Automotive
Good performance of industrial end markets
• Brightening macroeconomic outlook through 2013 drives positive demand momentum
• Market position as technology specialist for industrial sensors and position measurement expanded
Medical business continues positive development
• Medical imaging remains key driver with industry-leading sensor capabilities
• Evolution of Asian markets, future sensor opportunities for personal devices and wearables
Strong growth in automotive business
• Good end market demand and vehicle platform launches drive strong shipment growth
• Major design-wins, particularly in Japan and Asia, leading to significant R&D additions
© ams AG 2014
Page 15
Industrial
Sensor solutions and sensor interfaces
Industrial automation and control
• Motion control
• Industrial 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
• Bus systems
Seismic sensor interfaces
• Highest sensitivity sensor solutions
© ams AG 2014
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Medical
Sensor solutions and sensor interfaces, power management, wireless
Medical imaging: Leader in lowest noise sensor solutions
• Computed tomography – supplier to #1
• Digital X-ray – supplier to #1
• Mammography – supplier to #1
• Ultrasound – supplier to market leaders
Personal health devices
• Diabetes management
• Heart rate monitors
Robotic surgical solutions
• Encoder-driven accuracy
© ams AG 2014
Page 17
Automotive
Sensors and sensor interfaces, bus systems, power management, wireless
Position sensing
• Pedal & throttle position
• Transmission (clutch, gear shift)
• Steering wheel angle and torque
• Brushless motor control applications
Battery power management
• Battery management for conventional, hybrid, and electric vehicles
• Highly-efficient power management
Safety systems
• Collision avoidance LIDAR systems (pedestrian detection)
• ESP (Electronic Stability Program)
• FlexRay® high bandwidth data network
© ams AG 2014
Page 18
Innovation: Laser-based LIDAR collision avoidance
Enables automatic braking for accident avoidance and pedestrian protection
Automotive innovation
• Obstacle distance detection by laser pulse time-of-flight
measurement
• Laser beam scans area in front of vehicle, beam reflection is
measured with highest speed and accuracy
• Chip set comprising three channel high bandwidth amplifier and
high speed pipelined ADC
• In volume production, second generation nearing release
Benefits
• Very cost-effective active safety feature
• Allows for fully automatic braking in dense city traffic
• Simple assembly close to rear view mirror
• Seamless integration with vehicle stability system via standard
CAN bus
Confidential © ams AG 2014
Page 19
Scalable manufacturing model
In-house capacity + manufacturing partnerships:
a successful model for profitable growth
Wafer manufacturing
•
200mm in-house fab (120k wafers p.a.)
•
CMOS nodes: 0.18µm – 0.35µm – 0.8µm
•
Specialty analog processes
•
Best-in-class efficiency
•
Multi-source security: TSMC, UMC, IBM
EUR10-15m
additional invest to
optimize wafer fab
and test capacity
Project to identify
additional wafer
fab assets outside
Europe
Assembly and test
•
In-house test in Austria and the Philippines
•
In-house TSV 3D packaging line in Austria completed,
currently in optimization and qualification, mass production H2 2014
•
Multi-source assembly locations
•
End-to-end fully integrated supply chain
© ams AG 2014
Page 20
Global value chain
•
•
•
9 design centers
Austria, Switzerland, Italy (2), Spain, Slovenia, USA (2), India
High volume test center
Philippines
Continuing growth in distribution design-ins and revenues
Over 30 distributors worldwide including
Future Electronics, Digi-Key, Mouser
© ams AG 2014
Page 21
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;
mid-term goal to be a carbon-neutral company
© ams AG 2014
Page 22
Financial results
Michael Wachsler-Markowitsch, CFO
© ams AG 2014
Key figures
EURm
(IAS)
2013
2012
Q4 2013
Q4 2012
Total revenues
377.8
- 3%
387.6
103.5
+ 6%
97.5
55%
52%
55%
52%
56%
54%
56%
53%
Result from operations (EBIT)
63.9
- 25%
84.8
24.2
+ 24%
19.6
Net result
60.8
- 26%
81.9
23.3
+ 26%
18.5
5.56 / 5.34
4.52 / 4.35
7.67 / 7.30
6.37 / 6.06
2.12 / 2.03
1.73 / 1.65
1.69 / 1.60
1.40 / 1.32
Gross margin (before amortization charge)
(incl. amortization charge)
EPS (basic/diluted)
CHF
EUR
© ams AG 2014
Page 24
FINANCIAL RESULTS
P&L
BALANCE SHEET
CASH FLOW
© ams AG 2014
Page 25
Total revenues
EURm
- 2.5%
400
387.6
120
+ 6.2%
377.8
300
90
200
60
100
30
0
0
2012
•
•
2013
97.5
Q4 2012
103.5
Q4 2013
Slight decrease in full year revenues, positive Q4 performance
On constant currency basis, revenues 2013 unchanged year-on-year, Q4 2013 +10% year-on-year
© ams AG 2014
Page 26
Revenue distribution
% of revenues
Total revenues by market 2013
Total revenues by region 2012/2013
100%
75%
63%
59%
Asia/Pacific
Industrial,
Medical,
Automotive
(+ 5)
Consumer &
Communications
(- 5)
41%
50%
5%
59%
6%
Americas
25%
32%
35%
2012
2013
Europe
(EMEA)
0%
•
•
Slight expansion of EMEA business in 2013
Stronger Industrial, Medical, Automotive share of revenues for 2013
© ams AG 2014
Page 27
Total backlog
EURm
100
Consignment stock agreements
approx. EUR10-12m
- 15.8%
90.9
75
76.6
50
25
0
Dec 31 2012
•
•
Dec 31 2013
Lower year-end backlog reflects shortened lead times for upcoming product ramp-ups
Total backlog + designated consignment stock agreements = total customer-committed pipeline
© ams AG 2014
Page 28
Gross profit / gross profit margin
EURm, % of revenues, gross profit margin excluding amortization charges
250
54.7%
54.6%
80
55.7%
55.7%
200
202.9
- 2.4%
198.0
60
150
52.1
+ 6.6%
55.5
40
100
20
50
0
0
2012
2013
Q4 2012
Q4 2013
Gross profit margin
•
•
Gross margin performance driven by product mix, full utilization and production efficiencies
Gross margin including amortization charges for 2013: 52.4%, Q4 2013: 53.7%
© ams AG 2014
Page 29
R&D expenses
EURm, % of revenues
80
18.1%
25
68.5
20
15.2%
60
59.0
16.7%
15.7%
+ 16.0%
15
40
15.4
+ 12.5%
17.3
10
20
5
0
0
2012
•
•
2013
Q4 2012
Q4 2013
2013 R&D investments to support major automotive design-wins and dedicated key account teams
R&D expenses staying within business model target range
© ams AG 2014
Page 30
SG&A expenses
EURm, % of revenues
80
16.8%
60
65.0
+ 6.1%
18.3%
25
69.0
20
19.4%
15.4%
19.0
15
- 16.1%
40
15.9
10
20
5
0
0
2012
•
•
2013
Q4 2012
Q4 2013
SG&A expenses reflect build-out of dedicated Asian and U.S. customer support network
Q4 2013 shows cost management and one-time benefit from release of profit-sharing provisions
© ams AG 2014
Page 31
Result from operations (EBIT)
EURm, % of revenues
100
21.9%
80
23.4%
30
16.9%
20.1%
84.8
24.2
20
60
- 24.7%
19.6
63.9
+ 23.6%
40
10
20
0
0
2012
•
•
2013
Q4 2012
Q4 2013
Higher impact on EBIT profitability due to operating expense growth
Q4 2013 reflects revenue growth and gross margin strength
© ams AG 2014
Page 32
Net financial result
EURm
6
6
3
3
0
0
+ 156.6%
-1.4
+ 66.4%
-0.2
-0.5
-3
-3
-6
-6
2012
•
•
2013
0.1
Q4 2012
Q4 2013
Significant improvement in 2013 due to cash generation and net cash build
Effects from exchange rate fluctuations reflected in financial result
© ams AG 2014
Page 33
Tax expense
EURm, tax rate: % of result before tax (PBT)
5
5
4
3
4.1%
1.8%
1
3
2.6
2
1.5
4.7%
2
4.2%
1
0.9
1.0
Q4 2012
Q4 2013
0
0
2012
•
•
4
2013
Low tax expense due to application of historic tax losses and international tax structures
2014 tax rate expected to remain around mid single-digit levels
© ams AG 2014
Page 34
Net income / earnings per share
EURm, earnings per share (EPS) in CHF and EUR (basic/ diluted)
100
CHF 7.67/ 7.30
EUR 6.37/ 6.06
CHF 5.56 / 5.34
EUR 4.52/ 4.35
30
CHF 1.69 / 1.60
EUR 1.40 / 1.32
CHF 2.12 / 2.03
EUR 1.73 / 1.65
25
80
81.9
20
23.3
60
- 25.8%
60.8
15
18.5
+ 26.4%
40
10
20
5
0
0
2012
•
•
2013
Q4 2012
Q4 2013
Net income decrease reflects lower operating profitability
2013 share count increased due to employee option exercises, Q4 2013 share count 14,559,683
© ams AG 2014
Page 35
FINANCIAL RESULTS
P&L
BALANCE SHEET
CASH FLOW
© ams AG 2014
Page 36
Working capital
EURm
Working capital at year-end
100
+ 5.5%
80
60
72.0
75.9
40
2013
2012
Trade receivables
+ Inventories
- Trade liabilities
63.7
40.5
28.3
42.2
56.2
26.4
Working capital
in % of revenues
75.9
20%
72.0
19%
20
0
Dec 31 2012
•
•
Dec 31 2013
Working capital reflects high Q4 revenues
Strong decrease in inventories due to supply chain optimizations
© ams AG 2014
Page 37
Net cash, cash and short term investments
EURm, % of total liabilities
Net cash, equity ratio
Cash and short-term investments
68%
60
120
65%
+ 20.1%
104.3
90
40
86.8
44.2
60
+ 635.9%
20
30
0
6.0
2012
0
2013
Dec 31 2012
Dec 31 2013
Equity ratio
•
•
Strong increase in net cash position by year-end
Further increase in cash despite investments demonstrates cash flow strength
© ams AG 2014
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FINANCIAL RESULTS
P&L
BALANCE SHEET
CASH FLOW
© ams AG 2014
Page 39
Cash flow from operations
EURm
140
120
50
124.8
40
39.3
100
- 19.7%
80
100.2
30
- 25.3%
60
29.3
20
40
10
20
0
0
2012
•
•
2013
Q4 2012
Q4 2013
Good cash generation despite slight decrease in revenues
Q4 operating cash flow reflects year-end working capital increase
© ams AG 2014
Page 40
Capital expenditures
EURm
50
25
47.1
40
30
20
31.9
+ 47.5%
15
20
10
10
5
0
11.0
- 38.4%
6.8
0
2012
2013
Q4 2012
Q4 2013
Acquisition of intangibles, property, plant and equipment
•
•
2013 capital expenditures include significant additional investment for 3D packaging line
2014E: additional investments of EUR 10-15m for fab optimization and test capacity expansion
© ams AG 2014
Page 41
Dividend policy and proposal
Dividend policy
• Distribution of 25% of net earnings
Dividend proposal for 2013
• EUR 1.04 per share outstanding
• AGM May 22, 2014, payment date June 2, 2014
© ams AG 2014
Page 42
Company highlights and outlook
Kirk Laney, CEO
© ams AG 2014
Company highlights
Analog makes sense
© ams AG 2014
Page 44
Outlook and key topics for 2014
Strong project and revenue pipeline with major OEMs
Significant new product ramps in 2014 with bias towards second half
Q1 2014 impacted by seasonality and effects from customer ramp-up shifts,
expected revenues EUR 80-85m, operating margin expected up year-on-year
Aligning ams with becoming a sensor solutions provider
• Targeted investments and project to identify additional wafer fab assets outside Europe
• Actively evaluating further additions to our sensor technologies portfolio
© ams AG 2014
Page 45
Thank you
Please visit our website www.ams.com
© ams AG 2014
Profit and loss statement
EURm
(IAS)
2013
2012
Q4 2013
Q4 2012
Total revenues
• Products
• Foundry
377.8
343.0
34.8
387.6
359.7
27.9
103.5
95.1
8.4
97.5
88.9
8.6
Gross profit
• Gross margin incl. amortization charge
198.0
52.4%
202.9
52.3%
55.5
53.7%
52.1
53.4%
Research and development
Selling, general and administrative
Other operating income/expenses
- 68.5
- 69.0
3.3
- 59.0
- 65.0
5.9
- 17.3
- 15.9
1.9
- 15.4
- 19.0
1.8
Result from operations (EBIT)
• Operating margin
63.9
16.9%
84.8
21.9%
24.2
23.4%
19.6
20.1%
Net financing costs
- 0.5
- 1.4
0.1
- 0.2
Result before tax
Income tax result
63.4
- 2.6
83.4
- 1.5
24.3
- 1.0
19.4
- 0.9
Net result
60.8
81.9
23.3
18.5
5.56 / 5.34
4.52 / 4.35
7.67 / 7.30
6.37 / 6.06
2.12 / 2.03
1.73 / 1.65
1.69 / 1.60
1.40 / 1.32
EPS (basic/diluted)
CHF
EUR
© ams AG 2014
Page 47
Balance sheet
EURm
Dec 31,
2013
Dec 31,
2012
Liabilities and equity
Dec 31,
2013
Cash and short term invest.
Trade receivables
Inventories
Other current assets
104.3
63.7
40.5
10.5
86.8
42.2
56.2
11.2
Interest-bearing debt
Trade liabilities
Provisions
Other liabilities
0.8
28.3
23.2
24.1
9.4
26.4
24.3
20.8
Total current assets
219.1
196.4
Total current liabilities
76.3
80.9
Fixed assets
Intangible assets
Investments
Deferred tax asset
Other non-current assets
145.4
243.0
5.1
33.3
7.1
131.3
260.0
6.4
32.9
7.0
Interest-bearing debt
Employee benefits
Provisions
Deferred tax liabilities
Other liabilities
59.3
23.6
22.9
13.6
12.6
71.4
19.2
22.8
17.2
13.1
Total non-current assets
433.9
437.5
Total non-current
liabilities
Shareholders’ equity
132.0
143.6
444.7
409.5
Total liabil. and equity
653.0
634.0
Assets (IAS)
Total assets
653.0
634.0
Dec 31,
2012
© ams AG 2014
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Cash flow statement
EURm
(IAS)
2013
2012
Q4 2013
Q4 2012
Income before tax
Depreciation
63.4
35.2
83.4
33.3
24.3
8.4
19.4
8.4
Cash flow from operations
100.2
124.8
29.3
39.3
Capital expenditures
- 47.1
- 31.9
- 6.8
- 11.0
Cash flow from investing activities
- 46.8
- 65.7
- 6.4
- 41.3
Proceeds from borrowings
Repayment of borrowings
Dividends paid
Changes resulting from capital increase
14.0
- 33.6
- 19.4
11.2
34.0
- 68.7
- 8.1
18.6
2.1
- 15.4
0
2.3
26.2
- 10.6
0
4.0
Cash flow from financing activities
- 37.9
- 42.9
- 10.6
13.7
Change in cash and cash equivalents
15.4
16.2
12.3
11.7
Cash and cash equivalents at end of period
83.4
67.9
83.4
67.9
© ams AG 2014
Page 49