ams Q3 2012 results October/November 2012 © ams AG 2012 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 2012 Page 2 ams overview At a glance: • Focus on high performance analog ICs • Ultra-low power, high accuracy, high integration design expertise • Specialize in sensors & sensor interfaces, power management, and wireless solutions • Analog IDM: combining design + best-in-class manufacturing By the numbers: • 300+ analog engineers • Over 30 years of design experience • 2011 revenues EUR 276m; Q3 2012 revenues EUR 103.3m • More than 1,200 employees worldwide • Over 6,500 customers worldwide © ams AG 2012 Page 3 Our focus High performance analog ICs Target markets Core expertise Consumer and Communications Industrial, Medical, & Automotive 63% of revenues H1 2012 37% of revenues H1 2012 Sensor and sensor interfaces Power management Wireless © ams AG 2012 Page 4 OUR MARKETS CONSUMER AND COMMUNICATIONS INDUSTRIAL MEDICAL AUTOMOTIVE © ams AG 2012 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 • Lighting management ICs • Power management ICs • RFID readers (UHF/HF/NFC) • NFC active booster • LF/HF/UHF transceivers / smart tags • Active noise cancellation (ANC) • Piezo solutions including ultra-thin camera AF (UTAF) • EasyPoint™ input solution • Wireless sensors (lightning sensor) © ams AG 2012 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 Product types • Ambient light sensors (ALS): Measure ambient light to control display brightness • Proximity sensors (Prox): Detect proximity of target, e.g. user’s ear, to control display and touchscreen on-state • Color sensors: Allow enhanced display picture quality under varying light environments • Combo sensors: Integrated ALS, Prox and/or color solution © ams AG 2012 Page 7 MEMS microphone interfaces MEMS microphone interfaces for smartphones, handsets, notebooks, tablet PCs, and other portable devices • • • • • • Over 1 billion MEMS microphone ICs shipped in 2011 Low noise leader, excellent S/N ratio Extensive portfolio, over 15 products Industry leader with over 80% market share Unmatched expertise in design and process Market drivers: - Ongoing adoption across devices - Increasing number of MEMS microphones per device 50% of mobile phones used MEMS mics in 2011 Source: IHS iSuppli © ams AG 2012 Page 8 Power management solutions for mobility Power management innovation • Optimized PMIC design for the next generation of smartphones and tablets utilizing multicore processor topologies • Patent pending technology for managing independent high speed, high current power stages Benefits • Programmable and scalable power management solution supports up to 20 amps load in 10 microseconds • Enables highest frame rates at maximum screen resolutions while maximizing battery life for designs from smartphones to tablets • Industry’s smallest DC/DC total solution size, resulting in the thinnest designs and a PCB area savings of 50% © ams AG 2012 Page 9 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 payment: Near field communications (NFC) solutions • Global contactless payment to existing mobile phones • Active booster technology with auto antenna tuning • NFC on SIM or microSD card • Ensures 100% read rates, EMV (MasterCard/VISA) compatible • Extends range up to 10cm (free air) for SIM or microSD card • Helps accelerate mobile handset NFC mass market adoption © ams AG 2012 Page 10 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 Hall sensors Building automation & security • HVAC • Bus systems Seismic sensor interfaces • Highest sensitivity converters © ams AG 2012 Page 11 Medical/Healthcare 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 2012 Page 12 Computer tomography sensors Lowest radiation dose, higher resolution 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 (Through Silicon Via) 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 2012 Page 13 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 2012 Page 14 Proven manufacturing model In-house capacity + partnerships: a scalable and robust growth model Wafer manufacturing • Specialty analog processes • 200mm in-house fab (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 Assembly and test • In-house test in Austria and Philippines; Philippines expansion nearing completion • Multi-source assembly locations • End-to-end fully integrated supply chain © ams AG 2012 Page 15 Quality and responsibility commitment Quality commitment • Certified under - ISO/TS16949 (automotive) - ISO/TS13485 (medical) - ISO 14001 (environment) • Zero defect commitment: 2011 field failure rate return < .06ppm • 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 by 2015 © ams AG 2012 Page 16 Global value chain • • • 8 design centers: Austria, Switzerland, Italy (2), Spain, USA (2), India Continuing growth in distribution revenues Over 30 distributors worldwide including - Future Electronics - Digi-Key - Mouser © ams AG 2012 Page 17 Key figures EURm (IAS, unaudited) 9M 2012 9M 2011 Q3 2012 Q3 2011 290.1 + 49% 194.7 103.3 + 27% 81.7 54% 52% 52% 51% 56% 53% 53% 50% Result from operations (EBIT) 65.2 + 126% 28.8 25.5 + 96% 13.0 Net result 63.5 + 170% 23.5 24.5 + 157% 9.5 5.99 / 5.70 4.98 / 4.74 2.62 / 2.56 2.12 / 2.07 2.30 / 2.17 1.91 / 1.81 0.87 / 0.86 0.74 / 0.73 Total revenues Gross margin (before amortization charge) (incl. amortization charge) EPS (basic/diluted) CHF EUR © ams AG 2012 Page 18 Financial results EURm Total revenues 350 300 Total revenues by market H1 2012 + 49% Industrial, Medical, Automotive 290.1 250 200 150 63% 194.7 + 27% 100 81.7 50 0 9M 2011 9M 2012 Consumer and Communications 103.3 Q3 2011 Q3 2012 Total revenues by region 2011 / H1 2012 100% 80% 37% Total backlog 150 46% 63% Asia/Pacific 5% Americas 32% Europe (EMEA) 60% Consignment stock agreements approx. €12m 100 10% 40% 20% 0% 44% 2011 H1 2012 50 0 106.8 Jun 30 2012 90.6 Sep 30 2012 © ams AG 2012 Page 19 Financial results EURm, % of revenues Gross profit, gross margins 200 R&D 75 54.3%1) 19.2% 51.8%1) 15.1% 39% 150 50 150.8 55.5%1) 100 98.8 52.8%1) 50 41.1 0 9M 2011 9M 2012 43.7 37.4 25 14.1% 55.1 14.4 Q3 2011 Q3 2012 0 9M 2011 9M 2012 14.5 Q3 2011 Q3 2012 EBIT SG&A 100 75 22.5% 18.8% 15.9% 75 50 46.1 17.5% 16.0% 36.6 25 14.3 9M 2011 9M 2012 1) 16.5 Q3 2011 Q3 2012 before amortization charge 14.8% 0 24.7% 65.2 50 25 0 17.7% 16.0% 28.8 25.5 13.0 9M 2011 9M 2012 Q3 2011 Q3 2012 © ams AG 2012 Page 20 Financial results EURm, % of revenues Net results, EPS (basic/diluted) 100 75 100 CHF5.99/5.70 EUR4.98/4.74 CHF2.62/2.56 EUR2.12/2.07 CHF2.30/2.17 EUR1.91/1.81 CHF0.87/0.86 EUR0.74/0.73 25 23.5 Net cash 51.8 36.1 25 9.5 9M 2011 9M 2012 50 24.5 Q3 2011 Q3 2012 Net cash, cash + short term investments 100 85.5 39% 75 63.5 50 0 Operating cash flow Cash + short term invest. 20.9 0 9M 2011 9M 2012 Q3 2011 Q3 2012 Capital expenditures 30 75 75.1 50 58.7 25 21.0 10.0 10 0 -25 20 12.1 8.2 -34.0 0 -50 Q2 2012 Q3 2012 Q2 2012 Q3 2012 4.4 9M 2011 9M 2012 Q3 2011 Q3 2012 © ams AG 2012 Page 21 Company highlights Analog makes sense © ams AG 2012 Page 22 Thank you Please visit our website www.ams.com Confidential © ams AG 2012 Profit and loss statement EURm (IAS, unaudited) 9M 2012 9M 2011 Q3 2012 Q3 2011 290.1 270.8 19.3 194.7 172.3 22.4 103.3 96.8 6.6 81.7 74.4 7.3 Gross profit • Gross margin incl. amortization charge 150.8 52.0% 98.8 50.8% 55.1 53.3% 41.1 50.4% Research and development Selling, general and administrative Other operating income/expenses - 43.7 - 46.1 4.1 - 37.4 - 36.6 4.0 - 14.5 - 16.5 1.5 - 14.4 - 14.3 0.6 Result from operations (EBIT) • Operating margin 65.2 22.5% 28.8 14.8% 25.5 24.7% 13.0 16.0% Net financing costs - 1.2 - 4.4 - 0.4 - 3.6 Result before tax Income tax result 64.0 - 0.6 24.4 - 0.9 25.2 - 0.7 9.5 0.1 Net result 63.5 23.5 24.5 9.5 5.99 / 5.70 4.98 / 4.74 2.62 / 2.56 2.12 / 2.07 2.30 / 2.17 1.91 / 1.81 0.87 / 0.86 0.74 / 0.73 Total revenues • Products • Foundry EPS (basic/diluted) CHF EUR © ams AG 2012 Page 24 Balance sheet EURm Sep 30, 2012 Dec 31, 2011 Liabilities and equity Sep 30, 2012 75.1 51.9 61.1 10.9 65.0 39.7 58.8 7.8 Interest-bearing debt Trade liabilities Provisions Other liabilities 9.8 26.2 21.3 21.9 9.4 17.1 15.6 16.3 Total current assets 198.9 171.3 Total current liabilities 79.4 58.3 Fixed assets Intangible assets Investments Deferred tax asset Other non-current assets 121.7 219.4 6.6 32.2 7.4 117.2 224.3 6.3 32.2 7.2 Interest-bearing debt Employee benefits Provisions Other liabilities 55.3 15.4 22.0 20.7 108.1 14.5 21.3 24.2 Total non-current assets 387.3 387.3 Total non-current liabilities Shareholders’ equity 113.3 168.0 393.6 332.2 Total assets 586.3 558.6 Assets (IAS, full year audited) Cash and short term invest. Trade receivables Inventories Other current assets Total assets 586.3 558.6 Dec 31, 2011 © ams AG 2012 Page 25 Cash flow statement EURm (IAS, unaudited) 9M 2012 9M 2011 Q3 2012 Q3 2011 Income before tax Depreciation 64.0 24.9 24.4 19.9 25.2 8.1 9.5 8.2 Cash flow from operations 85.5 51.8 36.1 20.9 Capital expenditures - 21.0 - 12.1 - 8.2 - 4.4 Cash flow from investing activities - 24.5 - 90.1 - 7.3 - 89.7 Proceeds from borrowings Repayment of borrowings Dividends paid 7.7 - 58.1 - 8.1 128.0 - 48.6 - 5.3 6.1 - 32.7 0 116.6 - 45.7 0 Cash flow from financing activities - 56.5 66.6 - 12.6 67.7 4.5 28.4 16.2 - 1.0 56.2 51.4 56.2 51.4 Change in cash and cash equivalents Cash and cash equivalents at end of period © ams AG 2012 Page 26