ams Q1 2013 results Michael Wachsler-Markowitsch, CFO Moritz Gmeiner, Head of IR April 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 • Specialize in sensors & sensor interfaces, power management, and wireless solutions • Analog IDM: combining design + best-in-class manufacturing By the numbers • 350+ analog engineers • Over 30 years of design experience • 2012 revenues EUR 388m (USD 498m); +41% year-on-year • 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 64% of revenues (2012) 36% of revenues (2012) 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 Innovative products • 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) • Piezo solutions • Wireless sensors (lightning sensor) • EasyPoint™ input solution © ams AG 2013 Page 6 Light sensors Worldwide leader in intelligent integrated light sensors Consumer electronics • Smartphones • Tablets • HDTVs • PCs Over 40% market share worldwide Sensor-driven lighting • Smart home, industrial, retail, and outdoor lighting Sensor characteristics • Ambient light sensing (ALS): Measure ambient light to control display brightness • Proximity sensing (Prox): Detect proximity of target, e.g. user’s ear, to control display and touchscreen on-state – new applications for shopping • Color sensing: Allow enhanced display picture quality under varying light environments © ams AG 2013 Page 7 Innovation: RGB color sensor technology Superior visual experience for mobile devices Optical sensor innovation • Innovative silicon design and photodiode placement for optimized module mechanical and optical design • Delivers superior optical performance for next generation smartphone color sensor systems Benefits • Delivers near-photopic response nearing the human eye • Precise RGB light and color temperature measurement for display calibration and optimum picture quality • Supports ambient light sensing for best viewing experience and energy conservation © 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 portfolio, more than 15 products Unmatched expertise in design and process Drivers of continuing market expansion: - number and quality of MEMS microphones per device - ongoing adoption across devices Over 65% of mobile phones used MEMS mics in 2012 © ams AG 2013 Page 9 Innovation: 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 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/fast-moving consumer goods, goods tracking and authentication, retail shrinkage prevention Mobile transactions: Near field communications (NFC) solutions • Range of solutions includes NFC on SIM or microSD card and mobile device implementations including peer-to-peer and reader/tag functions • Payment functions for global standard for mobile device transactions • Analog front-ends and active booster IDS acquisition technology with auto antenna tuning created leading • Strong market position with significant position in design activities in emerging applications RFID/NFC design © 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) • ESP (Electronic Stability Program) • FlexRay® high bandwidth data network © ams AG 2013 Page 15 Innovation: Active cell balancing technology Extends battery system run time and battery pack longevity Automotive innovation • Simultaneous cell measurement allows balancing during charging and under load, charge and idle • Autonomous cell balancing reduces Electromagnetic Compatibility (EMC) sensitivity Benefits • Next generation battery cell monitor and balancer device for Li-Ion or ultra-capacitor cell stacks • Reduced communications associated with autonomous cell balancing allows more efficient use of battery power • Highly integrated passive or active cell balancing at minimal hardware expense © 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 Additional 2013 investments for 3D packaging on track Assembly and test • In-house test in Austria and Philippines; Philippines expansion completed • 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 in 2012 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 by 2015 • Further reduction steps implemented in 2012 © ams AG 2013 Page 18 Global value chain • • • 9 design centers (2012: addition of IDS design center) 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) Total revenues Gross margin (before amortization charge) (incl. amortization charge) Result from operations (EBIT) Net result EPS (basic/diluted) • CHF EUR 2012 2011 Q1 2013 Q1 2012 387.6 + 41% 275.7 84.9 - 6% 90.7 55% 52% 52% 51% 54% 51% 53% 51% 84.8 + 97% 43.1 10.5 - 43% 18.3 81.9 + 132% 35.3 9.9 - 48% 19.2 7.67 / 7.30 6.37 / 6.06 3.75 / 3.67 3.04 / 2.98 0.91 / 0.87 0.74 / 0.70 1.81 / 1.75 1.50 / 1.46 Dividend proposal EUR 1.43 per share, payment date June 3, 2013 © ams AG 2013 Page 21 Financial results EURm Total revenues 450 Total revenues by market 2012 + 41% Industrial, Medical, Automotive 387.6 300 36% 275.7 64% - 6% 150 90.7 0 2011 2012 84.9 Q1 2012 Q1 2013 Total revenues by region 2011 / 2012 100% 80% Total backlog 150 46% 63% Asia/Pacific 60% 0% 44% 2011 Consignment stock agreements approx. EUR10-12m 100 90.9 10% 40% 20% Consumer & Communications 5% Americas 32% Europe (EMEA) 2012 77.4 50 0 Dec 31 2012 Mar 31 2013 © ams AG 2013 Page 22 Financial results EURm, % of revenues Gross profit, gross margins 240 52.1%1) 180 R&D 54.6%1) 80 202.9 60 18.4% 15.2% 59.0 120 139.6 53.7%1) 40 50.8 15.6% 53.0%1) 19.4% 20 60 45.9 0 2011 2012 43.4 Q1 2012 Q1 2013 SG&A 14.2 0 2011 2012 16.5 Q1 2012 Q1 2013 EBIT 18.9% 80 120 16.8% 21.9% 15.6% 60 90 65.0 84.8 52.0 40 20.8% 60 15.9% 30 20 14.4 0 2011 1) 2012 17.6 Q1 2012 Q1 2013 before amortization charge 20.2% 43.1 0 12.4% 18.3 2011 2012 10.5 Q1 2012 Q1 2013 © ams AG 2013 Page 23 Financial results EURm, % of revenues Net results, EPS (basic/diluted) 120 90 Operating cash flow 150 CHF7.67/7.30 EUR6.37/6.06 CHF3.75/3.67 EUR3.04/2.98 120 90 81.9 60 30 0 CHF1.81/1.75 EUR1.50/1.46 60 CHF0.91/0.87 EUR0.74/0.70 35.3 19.2 2011 2012 9.9 Q1 2012 Q1 2013 Net cash, cash + short term investments 120 Net cash Cash + short term invest. 90 86.8 60 30 70.3 30 0 24.6 2011 2012 13.7 Q1 2012 Q1 2013 Capital expenditures 45 94.8 30 31.9 15.6 15 0 -30 39% 124.8 17.7 -38.8 13.5 8.3 0 -60 Q1 2012 Q1 2013 Q4 2012 Q1 2013 2011 2012 Q1 2012 Q1 2013 © ams AG 2013 Page 24 Thank you Please visit our website www.ams.com © ams AG 2013 Profit and loss statement EURm (IAS) 2012 2011 Q1 2013 Q1 2012 Total revenues • Products • Foundry 387.6 359.7 27.9 275.7 245.4 30.3 84.9 76.8 8.1 90.7 84.2 6.5 Gross profit • Gross margin incl. amortization charge 202.9 52.3% 139.6 50.6% 43.4 51.2% 45.9 50.6% Research and development Selling, general and administrative Other operating income/expenses - 59.0 - 65.0 5.9 - 50.8 - 52.0 6.4 - 16.5 - 17.6 1.2 - 14.2 - 14.4 0.9 Result from operations (EBIT) • Operating margin 84.8 21.9% 43.1 15.6% 10.5 12.4% 18.3 20.2% Net financing costs - 1.4 - 6.6 - 0.2 1.0 Result before tax Income tax result 83.4 - 1.5 36.5 - 1.3 10.3 - 0.4 19.3 - 0.1 Net result 81.9 35.3 9.9 19.2 7.67 / 7.30 6.37 / 6.06 3.75 / 3.67 3.04 / 2.98 0.91 / 0.87 0.74 / 0.70 1.81 / 1.75 1.50 / 1.46 EPS (basic/diluted) CHF EUR © ams AG 2013 Page 26 Balance sheet EURm Mar 31, 2013 Dec 31, 2012 Liabilities and equity Mar 31, 2013 94.8 55.2 50.6 11.2 86.8 42.2 56.2 11.2 Interest-bearing debt Trade liabilities Provisions Other liabilities 2.8 30.9 24.4 22.2 9.4 26.4 24.3 20.8 Total current assets 211.8 196.4 Total current liabilities 80.3 80.9 Fixed assets Intangible assets Investments Deferred tax asset Other non-current assets 143.3 265.3 6.8 33.1 7.4 131.3 260.0 6.4 32.9 7.0 Interest-bearing debt Employee benefits Provisions Other liabilities 76.4 19.7 23.6 31.0 71.4 19.2 22.8 30.2 Total non-current assets 437.5 437.6 Total non-current liabilities Shareholders’ equity 150.7 143.6 436.7 409.5 Total liabil. and equity 667.6 634.0 Assets (IAS) Cash and short term invest. Trade receivables Inventories Other current assets Total assets 667.6 634.0 Dec 31, 2012 © ams AG 2013 Page 27 Cash flow statement EURm (IAS) 2012 2011 Q1 2013 Q1 2012 Result before tax Depreciation 83.4 33.3 36.5 28.2 10.3 9.0 19.3 8.7 Cash flow from operations 124.8 70.3 13.7 24.6 Capital expenditures - 31.9 - 17.7 - 13.5 - 8.3 Cash flow from investing activities - 65.7 - 95.4 - 14.5 - 8.0 Proceeds from borrowings Repayment of debt Dividends paid 34.0 - 68.7 - 8.1 128.4 - 59.3 - 5.3 0.3 - 1.9 0 0.4 - 1.8 0 Cash flow from financing activities - 42.9 53.8 6.8 - 6.2 Change in cash and cash equivalents 16.2 28.7 6.1 10.4 Cash and cash equivalents at end of period 67.9 51.7 74.0 62.1 © ams AG 2013 Page 28