ams Q3 2013 results Kirk Laney, CEO Moritz Gmeiner, Head of IR October 2013 © ams AG 2013 What we do for our customers ams provides innovative analog solutions to the most challenging applications in sensor and sensor interfaces, power management, and wireless. © ams AG 2013 Page 2 ams overview At a glance • Focus on high performance analog semiconductors • Ultra-low power, highest accuracy, integration and sensitivity • Sensors & sensor interfaces, power management, wireless • Analog IDM: combining design + best-in-class manufacturing By the numbers • 350+ analog engineers • Over 30 years of design experience • Revenues 9M 2013: EUR 274m / Q3 2013: EUR 98m • More than 1,300 employees worldwide • Over 7,800 customers worldwide © ams AG 2013 Page 3 Our focus High performance analog ICs Target markets Core expertise Consumer and Communications Industrial, Medical, & Automotive 58% of revenues (H1 2013) 42% of revenues (H1 2013) Sensor and sensor interfaces Power management Wireless © ams AG 2013 Page 4 OUR MARKETS CONSUMER & COMMUNICATIONS INDUSTRIAL MEDICAL AUTOMOTIVE © ams AG 2013 Page 5 Consumer & Communications Sensors and sensor interfaces, power management, wireless Sensors Power management Wireless Specialty solutions • Light sensors • MEMS microphone ICs • Hall/inductive/ capacitive sensors • Power management ICs • Lighting management ICs • RFID readers (UHF/HF/NFC) • NFC front ends, active booster • LF/HF/UHF transceivers/ smart tags • Active noise cancellation (ANC) • Wireless sensors (lightning sensor) • Piezo technology • EasyPoint™ input solution © ams AG 2013 Page 6 Light sensors Worldwide leader in intelligent integrated light sensors Consumer electronics • Smartphones • Tablets • HDTV • PCs RGB color sensing + new light-based applications Sensor-driven lighting • Smart home, industrial, retail, and outdoor lighting Sensor characteristics • Ambient light (ALS): Measure ambient light to control display brightness • Proximity (Prox): Detect proximity of target, e.g. user’s ear, to control display and touchscreen on-state; new application in mobile couponing • RGB color : Full analysis of light spectrum and temperature; enhance display picture quality under varying light environments © ams AG 2013 Page 7 Innovation: Barcode emulation for mobile coupons ams & Mobeam technology partnership Digital light sensor innovation • Integrated 1D barcode transmit technology using ams industryleading light sensors and Mobeam’s light-based beaming technology • Solution utilizes the same proximity IR LED used in smartphones today for disabling touchscreen displays Benefits • Provides smartphone vendors with a turn-key mobile couponing solution and enables differentiation without need for additional components • Enables smartphones to transmit UPC barcodes that can be read by the tens of millions of point-of-sales (POS) laser scanners • Smartphones support mobile commerce applications using barcodes including coupon redemption, gift cards, tickets, etc. © ams AG 2013 Page 8 MEMS microphone ICs MEMS microphone interfaces for smartphones, handsets, tablet PCs, notebooks, and other mobile devices • • • • • Over 1.2 billion MEMS microphone ICs shipped in 2012 Industry leader with over 60% market share Leader in low noise for high quality voice-controlled applications Extensive product portfolio and unmatched expertise Drivers of continuing market expansion: - number and quality of MEMS microphones per device - ongoing adoption across devices Over 70% of mobile phones use MEMS microphones © ams AG 2013 Page 9 Power management solutions for mobility PMIC solutions enable optimum battery life and system performance Power management innovation • Optimized PMIC design delivers superior performance for the next generation of smartphones and tablet PCs utilizing multicore processor designs • Patent pending unique technology to manage high speed, high current power stages Benefits • Industry’s first programmable and scalable converter solution supporting up to 20 amps load in 10 microseconds • Enabling the highest frame rates at maximum screen resolutions for next generation devices while maximizing battery life • Innovative multiphase DC/DC solution with industry’s smallest total size, resulting in the thinnest designs and a PCB area savings of 50% © ams AG 2013 Page 10 Wireless solutions Mobile transactions: NFC solutions • Solutions for complete NFC on SIM or microSD Enhancing card and mobile device implementations smartphone/handset including peer-to-peer and reader/tag functions NFC performance • Payment functions for new standard in mobile device transactions • Analog front-ends and active booster technology with auto antenna tuning • Strong market position and design activities in upcoming applications 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 2013 Page 11 Industrial Sensors and sensor interfaces Industrial automation and control • Motion control • Industrial sensors • Drives 2D and 3D position encoders • Magnetic rotary and linear encoders • Integrated high performance Hall sensors Building automation and security • HVAC • Bus systems Seismic sensor interfaces • Highest sensitivity converters © ams AG 2013 Page 12 Medical Sensors and sensor interfaces, power management, wireless Medical imaging: Leader in lowest noise solutions • Computer tomography • Digital X-ray • Mammography • Ultrasound Portable health devices • Diabetes management • Heart rate monitors Robotic surgical solutions • Encoder-driven accuracy © ams AG 2013 Page 13 Innovation: Computed tomography (CT) sensors Lowest radiation dose, higher resolution Medical innovation • Direct combination of photo-detector and A/D converter into a highly integrated detector module • Drastic reduction in power usage, heat dissipation & space required • Based on in-house TSV 3D packaging technology Benefits • Increases image resolution and allows earlier detection & diagnosis • Significantly lower radiation dose for patient safety • System power savings “Revolutionary” Source: SIEMENS MEDICAL © ams AG 2013 Page 14 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 systems (pedestrian detection) - LIDAR • ESP (Electronic Stability Program) • FlexRay® high bandwidth data network © ams AG 2013 Page 15 Innovation: LIDAR collision avoidance system 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 in development 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 2013 Page 16 Proven manufacturing model In-house capacity + partnerships: a scalable and robust growth model Wafer manufacturing • Specialty analog processes • 200mm in-house fab (over 110k wafers p.a.) • Technology nodes: 0.18µm – 0.35µm – 0.8µm • Best-in-class efficiency • Multi-source security: TSMC, UMC, IBM • Zero-defect program In-house TSV 3D packaging line ready in 2014 Assembly and test • In-house test in Austria and the Philippines • Multi-source assembly locations • End-to-end fully integrated supply chain © ams AG 2013 Page 17 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 • Top rankings by customers Corporate responsibility • Member of the UN Global Compact • Implemented conflict metals/hazardous-use materials program • CDP (Carbon Disclosure Project) • 70% reduction of CO2 since 2003; goal to be carbon-neutral • Further reduction steps implemented in 2013 © ams AG 2013 Page 18 Global value chain • • • 9 design centers Austria, Switzerland, Italy(2), Spain, Slovenia, USA(2), India Continuing growth in distribution revenues (2012: >20% of revenues) Over 30 distributors worldwide including - Future Electronics - Digi-Key - Mouser © ams AG 2013 Page 19 Company highlights Analog makes sense © ams AG 2013 Page 20 Key figures EURm (IAS) 9M 2013 9M 2012 Q3 2013 Q3 2012 274.3 - 5% 290.1 98.2 - 5% 103.3 54% 52% 54% 52% 55% 53% 56% 53% Result from operations (EBIT) 39.6 - 39% 65.2 20.0 - 22% 25.5 Net result 37.5 - 41% 63.5 18.6 - 24% 24.5 3.44 / 3.32 2.80 / 2.69 5.99 / 5.70 4.98 / 4.74 1.71 / 1.66 1.38 / 1.35 2.30 / 2.17 1.91 / 1.81 Total revenues Gross margin (before amortization charge) (incl. amortization charge) EPS (basic/diluted) CHF EUR © ams AG 2013 Page 21 Financial results EURm Total revenues Total revenues by market H1 2013 400 300 - 5% 290.1 Industrial, Medical, Automotive 274.3 200 42% 58% - 5% 100 0 103.3 9M 2012 9M 2013 98.2 Q3 2012 Q3 2013 Total revenues by region 2012 / H1 2013 100% Total backlog 120 80% 63% 59% Asia/Pacific 90 91.2 60% 60 40% 20% 0% Consumer & Communications 5% 7% Americas 32% 34% Europe (EMEA) 2012 H1 2013 82.4 Consignment stock agreements approx. EUR10-12m 30 0 Jun 30 2013 Sep 30 2013 © ams AG 2013 Page 22 Financial results EURm, % of revenues Gross profit, gross margins 200 R&D 75 54.3%1) 54.3%1) 15.1% 150 150.8 50 142.5 100 18.7% 51.2 43.7 55.5%1) 55.4%1) 14.1% 25 50 0 55.1 9M 2012 9M 2013 52.2 Q3 2012 Q3 2013 SG&A 14.5 0 9M 2012 9M 2013 16.8 Q3 2012 Q3 2013 EBIT 80 75 15.9% 19.3% 60 50 22.5% 14.5% 65.2 53.1 46.1 16.0% 17.0% 16.5 16.7 24.7% 40 39.6 25 20 0 17.1% 9M 2012 9M 2013 1) Q3 2012 Q3 2013 before amortization charge 20.4% 25.5 20.0 0 9M 2012 9M 2013 Q3 2012 Q3 2013 © ams AG 2013 Page 23 Financial results EURm, % of revenues Net results, EPS (basic/diluted) 80 60 40 100 CHF5.99/5.70 EUR4.98/4.74 75 63.5 CHF3.44/3.32 EUR2.80/2.69 CHF2.30/2.17 EUR1.91/1.81 37.5 20 0 Operating cash flow 9M 2012 9M 2013 Net cash Q3 2012 Q3 2013 Cash + short term invest. 90 36.1 25 92.1 0 9M 2012 9M 2013 Q3 2012 Q3 2013 Capital expenditures 60 40 40.3 76.0 60 34.0 18.6 Net cash, cash + short term investments 120 70.9 50 CHF1.71/1.66 EUR1.38/1.35 24.5 85.5 20 21.0 30 0 18.7 10.0 Q3 2012 Q3 2013 0 Q2 2013 Q3 2013 8.2 9M 2012 9M 2013 7.5 Q3 2012 Q3 2013 © ams AG 2013 Page 24 Thank you Please visit our website www.ams.com © ams AG 2013 Profit and loss statement EURm (IAS) 9M 2013 9M 2012 Q3 2013 Q3 2012 274.3 247.9 26.4 290.1 270.8 19.3 98.2 89.7 8.5 103.3 96.8 6.6 Gross profit • Gross margin incl. amortization charge 142.5 51.9% 150.8 52.0% 52.2 53.2% 55.1 53.3% Research and development Selling, general and administrative Other operating income/expenses - 51.2 - 53.1 1.5 - 43.7 - 46.1 4.1 - 16.8 - 16.7 1.3 - 14.5 - 16.5 1.5 Result from operations (EBIT) • Operating margin 39.6 14.5% 65.2 22.5% 20.0 20.4% 25.5 24.7% Net financing costs - 0.6 - 1.2 - 0.5 - 0.4 Result before tax Income tax result 39.1 - 1.6 64.0 - 0.6 19.6 - 1.0 25.2 - 0.7 Net result 37.5 63.5 18.6 24.5 3.44 / 3.32 2.80 / 2.69 5.99 / 5.70 4.98 / 4.74 1.71 / 1.66 1.38 / 1.35 2.30 / 2.17 1.91 / 1.81 Total revenues • Products • Foundry EPS (basic/diluted) CHF EUR © ams AG 2013 Page 26 Balance sheet EURm Sep 30, 2013 Dec 31, 2012 Liabilities and equity Sep 30, 2013 92.1 57.0 42.6 11.1 86.8 42.2 56.2 11.2 Interest-bearing debt Trade liabilities Provisions Other liabilities 10.8 20.4 24.9 26.6 9.4 26.4 24.3 20.8 Total current assets 202.7 196.4 Total current liabilities 82.7 80.9 Fixed assets Intangible assets Investments Deferred tax assets Other non-current assets 142.2 249.7 4.9 32.8 8.2 131.3 260.0 6.4 32.9 7.0 Interest-bearing debt Employee benefits Provisions Deferred tax liabilities Other liabilities 62.6 19.8 23.0 14.5 13.4 71.4 19.2 22.8 17.2 13.1 Total non-current assets 437.9 437.5 Total non-current liabilities Shareholders’ equity 133.4 143.6 424.5 409.5 Total liabil. and equity 640.6 634.0 Assets (IAS) Cash and short term invest. Trade receivables Inventories Other current assets Total assets 640.6 634.0 Dec 31, 2012 © ams AG 2013 Page 27 Cash flow statement EURm (IAS) 9M 2013 9M 2012 Q3 2013 Q3 2012 Result before tax Depreciation 39.1 26.7 64.0 24.9 19.6 8.7 25.2 8.1 Cash flow from operations 70.9 85.5 34.0 36.1 Capital expenditures - 40.3 - 21.0 - 7.5 - 8.2 Cash flow from investing activities - 40.4 - 24.5 - 7.0 - 7.3 Proceeds from borrowings Repayment of debt Dividends paid Changes resulting from capital increase 11.9 - 18.2 - 19.4 9.0 7.7 - 58.1 - 8.1 14.6 11.5 - 15.6 0 1.1 6.1 - 32.7 0 12.0 Cash flow from financing activities - 27.3 - 56.5 - 11.1 - 12.6 3.2 4.5 15.9 16.2 71.1 56.2 71.1 56.2 Change in cash and cash equivalents Cash and cash equivalents at end of period © ams AG 2013 Page 28