ams Q2 / H1 results 2012 August 2012 Page 1 © ams AG 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. 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; Q2 2012 revenues EUR 96.1m • More than 1,200 employees worldwide • Over 6,500 customers worldwide 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 Page 4 OUR MARKETS CONSUMER AND COMMUNICATIONS INDUSTRIAL MEDICAL AUTOMOTIVE 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 (HF/NFC) • NFC active booster • LF/HF/UHF transceivers / UHF readers • Ultra-thin AF camera (UTAF) • Active noise cancellation (ANC) • EasyPoint™ input solution • Wireless sensors (lightning) 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 color solution Page 7 MEMS microphones 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 Page 8 Advanced mobile applications ANC (Active noise cancellation) • 100% analog • Superior noise reduction • Major advantages vs. DSP-based solutions: low power consumption, low latency (delay) • Adopted by major brands (Jabra Supreme) UTAF (Ultra-thin autofocus) • World’s thinnest continuous AF solution for smartphone cameras • Technology of choice for HD video and photos >10 megapixels • Low power piezo motor; 2 ICs per module • Faster autofocus response • Significant opportunity; design-in decisions at several major smartphone OEMs Page 9 Wireless solutions Authentication: UHF RFID reader solutions • Integrated one-chip UHF reader solutions for large-scale, cost-effective RFID deployment • Enables low solution cost for authentication in fast-moving consumer goods • Applications: Drinks dispensing, consumables, goods tracking, retail shrinkage prevention Mobile Payment: Near Field Communications (NFC) solutions • Global contactless payment to existing mobile phones • NFC and micro antenna in SIM or microSD card • Active booster technology with auto antenna tuning • Ensures 100% read rates • Fully EMVCo (Europay, MasterCard, VISA) compatible 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 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 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 Page 13 Automotive Sensors and sensor interfaces, bus systems, power management, wireless Position sensing • Pedal position technology • Gearbox (2WD/4WD) • Steering wheel position Battery power management • Battery management for conventional, hybrid, and electric vehicles • Highly-efficient power management Safety systems • Collision avoidance systems • ESP (Electronic Stability Program) • FlexRay® high bandwidth data network 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 in 2012 • Multi-source assembly locations • End-to-end fully integrated supply chain 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 customer rankings 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 Page 16 Global value chain • 8 design centers: Austria, Switzerland, Italy (2), Spain, USA (2), India • Growing distribution revenues: 2011 >15% of total; 2012E further expansion • Over 30 distributors worldwide including - Future Electronics - Digi-Key - Mouser Page 17 Key figures EURm (IAS, unaudited) H1 2012 H1 2011 Q2 2012 Q2 2011 186.8 + 65% 113.0 96.1 + 66% 57.9 54% 51% 51% 51% 54% 52% 51% 51% Result from operations (EBIT) 39.6 + 151% 15.8 21.3 + 180% 7.6 Net result 38.9 + 178% 14.0 19.7 + 198% 6.6 3.68 / 3.53 3.06 / 2.93 1.74 / 1.70 1.37 / 1.34 1.87 / 1.77 1.56 / 1.48 0.80 / 0.78 0.65 / 0.63 Total revenues Gross margin (before amortization charge) (incl. amortization charge) EPS (basic/diluted) CHF EUR Page 18 Financial results EURm Total revenues Total revenues by market H1 2012 250 200 + 65% 186.8 150 100 Industrial, Medical, Automotive 113.0 Consumer and Communications 96.1 57.9 H1 2011 H1 2012 Q2 2011 Q2 2012 Total revenues by region 2011 / H1 2012 100% 80% 63% + 66% 50 0 37% Total backlog 150 46% 62% Asia/Pacific 5% Americas 33% Europe (EMEA) 60% Consignment stock agreements approx. €12m 100 10% 40% 20% 0% 44% 2011 H1 2012 50 0 100.5 106.8 Mar 31 2012 Jun 30 2012 Page 19 Financial results EURm, % of revenues Gross profit, gross margins 150 R&D 60 53.6%1) 20.3% 51.0% 100 95.7 50 54.1%1) 39% 15.6% 40 20.0% 51.1% 15.6% 20 57.7 49.8 29.1 23.0 29.6 0 H1 2011 H1 2012 13% 11.6 Q2 2011 Q2 2012 SG&A 0 H1 2011 H1 2012 15.0 Q2 2011 Q2 2012 EBIT 60 60 21.2% 19.7% 15.8% 40 14.0% 40 21.1% 29.6 20 13.2% 20 22.3 12.2 H1 2011 H1 2012 22.2% 39.6 15.8% 0 48% Q2 2011 Q2 2012 21.3 15.8 15.2 0 7.6 H1 2011 H1 2012 Q2 2011 Q2 2012 Page 20 1) before amortization charge Financial results EURm, % of revenues Net results, EPS (basic/diluted) 60 40 60 CHF3.68/3.53 EUR3.06/2.93 CHF1.74/1.70 EUR1.37/1.34 39% 49.4 40 38.9 20 CHF1.87/1.77 EUR1.56/1.48 CHF0.80/0.78 EUR0.65/0.63 14.0 0 Operating cash flow 30.9 20 24.8 19.7 6.6 H1 2011 H1 2012 48% Q2 2011 Q2 2012 Net debt, cash + short term investments 13% 0 H1 2011 H1 2012 16.3 Q2 2011 Q2 2012 Capital expenditures 20 100 Net debt Cash + short term invest. 15 75 75.7 50 25 58.7 38.8 5 34.0 12.8 10 7.7 4.0 0 Q1 2012 Q2 2012 Q1 2012 Q2 2012 0 H1 2011 H1 2012 4.5 Q2 2011 Q2 2012 Page 21 Company highlights Analog makes sense Page 22 Thank you www.ams.com PageAG 23 © ams Profit and loss statement EURm (IAS, unaudited) H1 2012 H1 2011 Q2 2012 Q2 2011 186.8 174.1 12.7 113.0 97.9 15.1 96.1 89.9 6.3 57.9 49.9 8.0 Gross profit • Gross margin incl. amortization charge 95.7 51.2% 57.7 51.0% 49.8 51.8% 29.6 51.1% Research and development Selling, general and administrative Other operating income/expenses - 29.1 - 29.6 2.6 - 23.0 - 22.3 3.3 - 15.0 - 15.2 1.7 - 11.6 - 12.2 1.9 Result from operations (EBIT) • Operating margin 39.6 21.2% 15.8 14.0% 21.3 22.2% 7.6 13.2% Net financing costs - 0.8 - 0.9 - 1.8 - 0.6 Result before tax Income tax result 38.8 0.1 14.9 - 0.9 19.6 0.1 7.0 - 0.4 Net result 38.9 14.0 19.7 6.6 3.68 / 3.53 3.06 / 2.93 1.74 / 1.70 1.37 / 1.34 1.87 / 1.77 1.56 / 1.48 0.80 / 0.78 0.65 / 0.63 Total revenues • Products • Foundry EPS (basic/diluted) CHF EUR Page 24 Balance sheet EURm Jun 30, 2012 Dec 31, 2011 Liabilities and equity Jun 30, 2012 58.7 56.7 62.9 9.3 65.0 39.7 58.8 7.8 Interest-bearing debt Trade liabilities Provisions Other liabilities 32.7 28.7 17.2 24.9 9.4 17.1 15.6 16.3 Total current assets 187.6 171.3 Total current liabilities 103.5 58.3 Fixed assets Intangible assets Investments Deferred tax asset Other non-current assets 122.5 225.5 6.6 32.2 7.3 117.2 224.3 6.3 32.2 7.2 Interest-bearing debt Employee benefits Provisions Other liabilities 60.0 15.1 22.1 22.0 108.1 14.5 21.3 24.2 Total non-current assets 394.1 387.3 Total non-current liabilities Shareholders’ equity 119.2 168.0 359.0 332.2 Total assets 581.7 558.6 Assets (IAS, full year audited) Cash and short term invest. Trade receivables Inventories Other current assets Total assets 581.7 558.6 Dec 31, 2011 Page 25 Cash flow statement EURm (IAS, unaudited) H1 2012 H1 2011 Q2 2012 Q2 2011 Income before tax Depreciation 38.8 16.8 14.9 11.6 19.6 8.1 7.0 5.9 Cash flow from operations 49.4 30.9 24.8 16.3 Capital expenditures - 12.8 - 7.7 - 4.5 - 4.0 Cash flow from investing activities - 17.2 - 0.4 - 9.2 - 4.3 Proceeds from borrowings Repayment of borrowings Dividends paid 1.6 - 25.4 - 8.1 11.4 - 2.9 - 5.3 1.2 - 23.6 - 8.1 10.7 - 0.9 - 5.3 Cash flow from financing activities - 44.0 - 1.1 - 37.8 1.5 Change in cash and cash equivalents - 11.7 29.4 - 22.1 13.5 40.0 52.4 40.0 52.4 Cash and cash equivalents at end of period Page 26