ams First quarter results 2015 Kirk Laney, CEO Michael Wachsler-Markowitsch, CFO Moritz Gmeiner, Head of IR April 2015 © ams AG 2015 We are shaping the world with sensor solutions We provide high performance analog solutions to the most challenging applications in sensors, sensor interfaces, power management, and wireless. © ams AG 2015 Page 2 ams at a glance Our business • Focus on high performance analog semiconductors • Sensor solutions, sensor interfaces, power management, wireless • Ultra-low power, highest accuracy, sensitivity and integration • World class analog design + in-house manufacturing • Best-in-class solutions for leading OEMs By the numbers • 450 analog engineers • Over 30 years of design experience • Revenues Q1 2015 EUR153m/$173m (Q1 2014: EUR86m/$118m) FY 2014 EUR464m/$614m (2013: EUR378m/$502m) • 1,700+ employees worldwide • 8,000+ customers © ams AG 2015 Page 3 Our focus High performance sensors and analog ICs Target markets Core expertise Consumer & Communications Industrial, Medical, Automotive 64% of revenues (FY 2014) 36% of revenues (FY 2014) Sensor solutions, sensor interfaces Power management Wireless © ams AG 2015 Page 4 OUR MARKETS CONSUMER AND COMMUNICATIONS INDUSTRIAL, MEDICAL, AUTOMOTIVE © ams AG 2015 Page 5 Light sensors Worldwide leader in intelligent integrated light sensors Sensor solutions • Gesture - sense hand movement in proximity of device surface to create touchless interface • RGB color - for full analysis of light spectrum and temperature; enhance display picture quality • Ambient light (ALS) - measure monochromatic ambient light to control display brightness • Proximity (Prox) - detect proximity of user’s ear to control display/touchscreen on-state Gesture 4-in-1 module in successful platforms Broad coverage of consumer electronics markets • Smartphones, tablet PCs, mobile devices, HDTV, PCs, notebooks New application: Cognitive lighting • Major light sensor-based opportunity becomes reality • Dynamic management improves industrial, home and office lighting • Combining LED control and sensor technologies © ams AG 2015 Page 6 Emerging: Cognitive lighting Smart lighting management integrates sensing and control to unlock energy savings Sensor innovation • AS72xx Autonomous Daylighting Managers industry’s first integrated IoT-connected chip-scale smart lighting managers • Combine photopic sensors including nano-optic filters with LED control and wireless connectivity • Sense ambient daylight to deliver constant lux levels as amount of outside light varies • Bring cost-effective sensing, control and connectivity to luminaires and light engines First products launched for major mid-term opportunity Benefits • Highly integrated system-level sensing and control offers major reduction in system cost and time-to-market • Network-enabled architecture for IoT connectivity via BLE, ZigBee, WiFi, Ethernet/PoE or other networks • Smart lighting sensor solutions create natural, convergent IoT sensor hubs within smart buildings © ams AG 2015 Page 7 Wireless solutions – NFC, RFID NFC solutions for mobile transactions • Patented antenna boost technology with automatic tuning • Antenna booster enables fully reliable mobile device NFC transactions • Solutions for smartphone NFC, boosted secure elements, NFC on SIM/microSD card and reader implementations • Full roadmap to exploit technology leadership Ongoing high volume NFC booster shipments RFID solutions for authentication • Integrated one-chip UHF readers and other RFID solutions offer low solution cost to help RFID deployment • Applications: consumables, materials tracking and authentication, supply chain and retail security © ams AG 2015 Page 8 Success: NFC antenna booster Technology leader enabling reliable NFC for mobile transactions Wireless innovation • Advanced analog active tag NFC booster • Active antenna boost overcomes reception problems in smartphones or for small form factor antennas • Designed for ultra small form factor applications including wearables Continuing growth contribution given NFC momentum Benefits • High Frequency (HF) active antenna booster amplifies the antenna by >80x for NFC in small areas • Shrinks antenna size to barely visible miniature footprint • Ensures 100% read rate overcoming field-dampening metal environments • Enables NFC on SIM cards and boosted secure elements • Patented solution for reliable NFC in smartphones, mobile devices and wearables © ams AG 2015 Page 9 Audio: MEMS microphone ICs, ANC MEMS microphone interface ICs • • • • Market leader in very dynamic market Product portfolio serving wide spectrum of end customer requirements Leading position in low noise solutions Strong customer partnership focusing on higher value market segments ANC moving into in-box bundled accessories ANC (active noise cancellation) • • • Technology leader offering pure analog noise reduction without need for DSP Significant audio quality improvement at very low power and minimized footprint Emerging high volume opportunities in smartphones and mobile devices © ams AG 2015 Page 10 Power management solutions for mobile devices Specialty PMIC solutions for optimum system performance Specialty PMIC solutions • High performance PMIC design for Building optimum system performance specialty PMIC • Added value for clamshell devices revenue stream and small form factor wearables • Support leading mobile graphics processor vendor’s current and upcoming platforms • Tight analog integration means significantly reduced footprint • Programmable solutions maximize battery life and enable superior graphics or camera performance © ams AG 2015 Page 11 Industrial Sensor solutions and sensor interfaces Industrial automation and control • Motion control • Industrial sensors including time-based 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 • Sensor networking and bus systems Seismic sensor interfaces • Very high sensitivity sensor solutions © ams AG 2015 Page 12 Medical Sensor solutions and sensor interfaces, power management, wireless Medical imaging: Leader in lowest noise sensor solutions • Computed tomography • Digital X-ray • Mammography • Ultrasound Personal health devices • Heart rate monitors • Diabetes management Robotic surgical solutions • Encoder-driven accuracy © ams AG 2015 Page 13 Automotive Sensor solutions and sensor interfaces, bus systems, power management Position sensing • Pedal & throttle position • Transmission (clutch, gear shift) • Steering wheel angle and torque • Brushless motor control applications LIDAR collision avoidance continues model penetration Battery power management • Battery management for conventional, hybrid, and electric vehicles • High efficiency power management Safety systems • Collision avoidance LIDAR systems (ADAS for object detection) • ESP (Electronic Stability Program) • FlexRay® high bandwidth data network Gas sensing • Air quality sensing © ams AG 2015 Page 14 Scalable manufacturing for profitable growth In-house capacity + manufacturing partnerships Wafer manufacturing • 200mm in-house fab (2015E 180k wafers p.a.) • CMOS nodes: 0.18µm – 0.35µm – 0.8µm • Specialty analog processes • Best-in-class efficiency • Multi-source security: TSMC, UMC, IBM Fab capacity expansion: step 1 ramped, step 2 nearing completion Assembly and test • In-house test in Austria and the Philippines • Multi-source assembly locations • End-to-end fully integrated supply chain • Further expansion of test capacity in 2015 © ams AG 2015 Page 15 Global value chain Headquarters Design centers Test center Sales offices • • • • Adding design resources for multi-year project pipeline 13 design centers Austria, Switzerland, Italy (2), Spain, Slovenia, Finland, USA (2), India, Germany (2), Japan High volume test center Philippines Continuing growth in distribution design-ins and revenues © ams AG 2015 Page 16 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; ongoing reduction measures © ams AG 2015 Page 17 Company highlights Analog makes sense © ams AG 2015 Page 18 Key figures EURm (IAS) Total revenues 2014 2013 Q1 2015 Q1 2014 464.4 + 22.9% 377.8 153.3 + 77.7% 86.3 Gross margin (excl. acquisition-related costs) (incl. acquisition-related costs) 56% 55% 55% 52% 56% 54% 56% 54% Result from operations (EBIT) (excl. acquisition-related costs) (incl. acquisition-related costs) 116.1 105.4 73.9 63.9 42.1 38.2 17.9 15.4 97.5 + 60.4% 60.8 42.2 + 187.5% 14.7 1.74 / 1.67 1.43 / 1.37 1.11 / 1.072) 0.90 / 0.872) 0.65 / 0.62 0.62 / 0.59 0.26 / 0.252) 0.22 / 0.212) Net result EPS (basic/diluted) 1) CHF EUR 1) Earnings per share in CHF were converted using the average currency exchange rate for the respective periods 2) Earnings per share have been adjusted to reflect the share split of 1:5 © ams AG 2015 Page 19 Financial results EURm Total revenues 500 + 23% 464.4 400 300 Total revenues by market 2014 Industrial, Medical, Automotive 377.8 200 36% 64% + 78% Consumer & Communications 153.3 100 86.3 0 2013 2014 Q1 2014 Q1 2015 Total revenues by region 2013 / 2014 100% Total backlog 200 Asia/Pacific 80% 59% 57% 150 60% 4% 40% 6% 20% 35% 39% 2013 2014 0% Americas Europe (EMEA) 100 150.7 Consignment stock agreements approx. EUR10-12m 131.3 50 0 Dec 31 2014 Mar 31 2015 © ams AG 2015 Page 20 Financial results EURm, % of revenues Gross profit, gross margin 300 54.7%1) R&D 56.4%1) 100 75 253.2 200 18.1% 16.6% 77.0 68.5 198.0 56.3%1) 56.0%1) 50 19.1% 100 83.4 25 16.5 46.5 0 2013 2014 Q1 2014 Q1 2015 SG&A 15.4% 0 2013 2014 23.7 Q1 2014 Q1 2015 EBIT 100 18.3% 125 16.5% 16.9%2) 100 75 69.0 76.9 50 14.9% 25 16.0 2013 1) 2014 105.42) 75 18.5% 0 22.7%2) 22.8 Q1 2014 Q1 2015 excl. acquisition-related costs 24.9%2) 17.9%2) 63.92) 50 38.22) 25 15.42) 0 2013 2) 2014 Q1 2014 Q1 2015 incl. acquisition-related costs © ams AG 2015 Page 21 Financial results EURm, % of revenues Net result, EPS (basic/diluted) 125 Operating cash flow 150 CHF 1.74/1.67 EUR 1.43/1.37 100 CHF 1.11/1.071) EUR 0.90/0.871) 120 CHF 0.65/0.62 EUR 0.62/0.59 60.8 CHF 0.26/0.251) EUR 0.22/0.211) 25 2013 2014 42.2 Q1 2014 Q1 2015 Net cash, cash + short term investments Net cash 250 Cash + short term invest. 200 100.2 28.9% 16.5% 60 14.7 0 90 28.0% 130.2 97.5 75 50 26.5% 215.7 44.3 30 0 14.3 2013 2014 Q1 2014 Q1 2015 Capital expenditures 80 12.5% 15.1% 70.1 60 26.7% 150 40 47.1 16.7% 100 94.1 50 34.0 0 Q1 2014 Q1 2015 1) 20 23.0 61.0 0 Q1 2014 Q1 2015 adjusted for share split of 1:5 2013 2014 25.5 Q1 2014 Q1 2015 © ams AG 2015 Page 22 Thank you Please visit our website www.ams.com © ams AG 2015 Profit and loss statement EURm (IAS) 2014 2013 Q1 2015 Q1 2014 Total revenues • Products • Foundry 464.4 425.0 39.4 377.8 343.0 34.8 153.3 142.8 10.6 86.3 76.8 9.5 Gross profit • Gross margin (incl. acquisition-related costs) 253.2 54.5% 198.0 52.4% 83.4 54.4% 46.5 53.9% Research and development Selling, general and administrative Other operating income/expenses - 77.0 - 76.9 6.0 - 68.5 - 69.0 3.3 - 23.7 - 22.8 1.4 - 16.5 - 16.0 1.3 Result from operations (EBIT) 105.4 63.9 38.2 15.4 ( ( ( ( Operating margin 22.7% 16.9% 24.9% 17.9% Net financing costs - 1.2 - 0.5 6.8 - 0.1 104.1 - 6.6 63.4 - 2.6 45.0 - 2.8 15.4 - 0.7 97.5 60.8 42.2 14.7 1.74 / 1.67 1.43 / 1.37 1.11 / 1.072) 0.90 / 0.872) 0.65 / 0.62 0.62 / 0.59 0.26 / 0.252) 0.22 / 0.212) (incl. acquisition-related costs) • Result before tax Income tax result Net result EPS (basic/diluted) CHF1) EUR 1) Earnings per share in CHF were converted using the average currency exchange rate for the respective periods 2) Earnings per share have been adjusted to reflect the share split of 1:5 © ams AG 2015 Page 24 Balance sheet EURm Mar 31, 2015 Dec 31, 2014 Liabilities and equity Mar 31, 2015 Cash and short term invest. Trade receivables Inventories Other current assets 215.6 90.7 62.8 16.8 229.6 79.0 59.9 18.3 Interest-bearing debt Trade liabilities Provisions Other liabilities 38.1 48.8 39.7 44.8 38.5 51.0 37.6 42.1 Total current assets 386.0 386.7 Total current liabilities 171.5 169.2 Fixed assets Intangible assets Investments Deferred tax asset Other non-current assets 223.4 338.1 6.6 34.2 7.9 204.1 315.7 6.5 34.1 7.7 Interest-bearing debt Employee benefits Provisions Deferred tax liabilities Other liabilities 116.5 27.9 30.8 21.1 10.8 146.1 27.0 27.1 20.8 8.9 Total non-current assets 610.2 568.2 Total non-current liabilities Shareholders’ equity 207.0 230.0 617.7 555.8 Total liabil. and equity 996.2 955.0 Assets (IAS) Total assets 996.2 955.0 Dec 31, 2014 © ams AG 2015 Page 25 Cash flow statement EURm (IAS) 2014 2013 Q1 2015 Q1 2014 Income before tax Depreciation 104.1 37.3 63.4 35.2 45.0 11.9 15.4 8.5 Cash flow from operations 130.2 100.2 44.3 14.3 Capital expenditures - 70.1 - 47.1 - 25.5 - 23.0 - 108.9 - 46.8 - 40.8 - 22.9 125.3 - 0.8 -14.1 14.0 - 33.6 - 19.4 31.3 - 61.2 0 0 0 0 99.1 - 37.9 - 41.1 - 1.9 120.3 15.4 - 28.8 - 10.5 203.7 83.4 174.8 72.8 Cash flow from investing activities Proceeds from borrowings Repayment of borrowings Dividends paid Cash flow from financing activities Change in cash and cash equivalents (incl. effects of changes in foreign exchange rates) Cash and cash equivalents at end of period © ams AG 2015 Page 26