ams Q2 2015 results Kirk Laney, CEO Michael Wachsler-Markowitsch, CFO Moritz Gmeiner, Head of IR July 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 • Best-in-class solutions for leading OEMs By the numbers • 500 analog engineers • Over 30 years of design experience • Revenues Q2 2015 EUR170m/$187m (Q2 2014: EUR106m/$146m) H1 2015 EUR323m/$360m (H1 2014: EUR193m/$264m) • 1,800+ 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 71% of revenues (H1 2015) 29% of revenues (H1 2015) Sensor solutions, sensor interfaces Power management Wireless © ams AG 2015 Page 4 OUR MARKETS CONSUMER & COMMUNICATIONS INDUSTRIAL, MEDICAL, AUTOMOTIVE © ams AG 2015 Page 5 Light sensors Worldwide leader in intelligent integrated light sensors Sensor solutions • Gesture - hand movement sensing near device surface creates touchless interface • RGB color - full light spectrum/light temperature analysis enhances display quality • Ambient light (ALS) - monochromatic ambient light measurement for display management • Proximity (Prox) - skin proximity detection to control display/touchscreen on-state Gesture module in multiple platforms, pipeline for new applications Broad coverage of consumer electronics markets • Smartphones, tablet PCs, mobile devices, HDTV, PCs, notebooks New areas: Cognitive industrial lighting, new consumer application • Major opportunities over coming years • Combining LED driver and sensor technologies for building lighting • New light sensor-based technology for consumer devices © ams AG 2015 Page 6 Wireless solutions – NFC, RFID NFC solutions for mobile transactions (Boosted NFC) NFC boost license • Patented antenna boost technology agreement with with high performance ALM major NCC vendor • Best-in-class NFC reliability for smartphones, mobile devices and wearables • Smartphone/device NFC, boosted secure elements, NFC on SIM/microSD card and reader implementations • Multi-year roadmap to exploit technology leadership • License agreement with major NFC controller chip (NCC) vendor targeting high volume consumer opportunities RFID solutions for authentication • Integrated one-chip UHF readers and RFID solutions for lower cost RFID deployment • Materials tracking and authentication, supply chain security © ams AG 2015 Page 7 Audio: MEMS microphone ICs, ANC MEMS microphone interface ICs • • • • Market leader in dynamic market Product portfolio serving wide spectrum of end customer requirements Leading position in low noise solutions Strong customer partnership focusing on high value market segments ANC moving into in-box bundled accessories ANC (active noise cancellation) • • • • Technology leader offering pure analog noise reduction, no DSP needed Significant audio quality improvement Very low power, minimized footprint High volume opportunities in smartphones and mobile devices © ams AG 2015 Page 8 Power management solutions for mobile devices Specialty PMICs and power management components for optimum system performance Specialty PMIC and power management solutions • High performance PMIC design to drive low-power system performance • Added value for clamshell devices and small form factors including wearables • Tight analog integration allows significantly reduced footprint • Programmable solutions maximize battery life and enable superior device performance Building power management revenue pipeline © ams AG 2015 Page 9 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 • Broad portfolio of integrated high performance Hall sensors Building automation and security • HVAC + Safety • Sensor networking and bus systems Environmental sensing • Relative humidity, pressure and temperature Seismic sensor interfaces © ams AG 2015 Page 10 Emerging: Cognitive industrial lighting Smart lighting management integrates sensing and control to unlock energy savings Sensor innovation • Industry’s first integrated IoT-connected chip-scale smart lighting managers • Photopic sensors with nano-optic filters, high efficiency LED drivers and wireless connectivity • Ambient daylight sensing delivers constant lux levels as amount of outside light varies • Cost-effective sensing, control and connectivity for luminaires and light engines First products sampling for major mid-term opportunity Benefits • Significant energy savings potential from smart LED illumination • Integrated system-level sensing and control for major reduction in system cost and time-to-market • Protocol-agnostic networked architecture for easy IoT connectivity • Smart lighting sensor solutions bring convergent IoT sensor hubs to smart buildings © ams AG 2015 Page 11 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 12 Automotive Sensor solutions and sensor interfaces, bus systems, power management Position sensing • Pedal and throttle position • Transmission (clutch, gear shift) • Steering wheel angle and torque • Brushless motor control applications LIDAR collision avoidance ADAS continues model penetration Battery power management • Battery management for conventional, hybrid, and electric vehicles • High efficiency power management Safety systems and ADAS • Collision avoidance LIDAR systems (ADAS for object detection) • ESP (Electronic Stability Program), FlexRay® data networks Environmental sensing • Air quality sensing • Relative humidity and temperature sensing © ams AG 2015 Page 13 Scalable manufacturing model In-house capacity + manufacturing partnerships Wafer manufacturing, Austria • 200mm in-house fab (180-190k wafer equiv. p.a.) • CMOS + specialty analog, down to 180nm • Best-in-class efficiency • Multi-source security: TSMC, UMC, GF Plan to rent new custom-built U.S. wafer fab, ramp early 2018 New wafer fab project in upstate New York, USA • Plan to rent new fab custom-built by State of New York • No depreciation on fab, significant cost-per-wafer benefits • First buildout: 150k+ 200mm-wafer equiv. p.a., 130nm capable • Production ramp expected early 2018 Assembly and test • In-house test in Austria and the Philippines • End-to-end fully integrated supply chain © ams AG 2015 Page 14 Global value chain Headquarters Design centers Test center Sales offices • • • New design center in the Netherlands from CMOS sensor acquisition 14 design centers Austria, Switzerland, Italy (2), Spain, Slovenia, Germany (2), Netherlands, Finland, USA (2), India, Japan High volume test center Philippines © ams AG 2015 Page 15 Company highlights Analog makes sense © ams AG 2015 Page 16 Key figures EURm (IAS) H1 2015 H1 2014 Q2 2015 Q2 2014 Total revenues 322.9 + 67.6% 192.6 169.5 + 59.5% 106.3 Gross margin (excl. acquisition-related costs) (incl. acquisition-related costs) 56% 54% 56% 54% 56% 54% 57% 55% Result from operations (EBIT) (excl. acquisition-related costs) (incl. acquisition-related costs) 90.5 82.8 44.3 39.4 48.5 44.6 26.4 24.0 84.0 + 127.7% 36.9 41.8 + 88.1% 22.2 1.28 / 1.23 1.22 / 1.17 0.66 / 0.632) 0.54 / 0.522) 0.63 / 0.61 0.61 / 0.58 0.40 / 0.382) 0.33 / 0.312) 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 17 Financial results EURm Total revenues Total revenues by market H1 2015 500 400 Industrial, Medical, Automotive + 68% 300 322.9 200 192.6 169.5 106.3 H1 2014 H1 2015 Q2 2014 Q2 2015 Total revenues by region H1 2014 /H1 2015 100% 80% 48% 65% 150 Asia/Pacific 40% 47% H1 2014 150.7 133.3 100 5% 0% Total backlog 200 60% 20% Consumer & Communications 71% + 59% 100 0 29% 4% Americas 31% Europe (EMEA) H1 2015 Consignment stock agreements approx. EUR15-18m 50 0 Mar 31 2015 Jun 30 2015 © ams AG 2015 Page 18 Financial results EURm, % of revenues Gross profit, gross margin R&D 100 300 56.5%1) 56.0%1) 17.8% 75 200 175.7 56.6%1) 56.0%1) 15.6% 16.8% 50 50.3 100 104.6 92.3 34.4 25 58.1 0 H1 2014 H1 2015 17.9 Q2 2014 Q2 2015 SG&A H1 2014 H1 2015 26.7 Q2 2014 Q2 2015 EBIT 125 100 25.6%2) 2) 100 20.5% 17.8% 75 14.8% 75 17.1% 50 14.7% 47.8 34.2 25 18.2 0 0 15.7% H1 2014 H1 2015 1) 25.0 Q2 2014 Q2 2015 excl. acquisition-related costs 82.82) 26.3%2) 22.6%2) 50 44.62) 39.42) 25 24.02) 0 H1 2014 H1 2015 2) Q2 2014 Q2 2015 incl. acquisition-related costs © ams AG 2015 Page 19 Financial results EURm, % of revenues Net result, EPS (basic/diluted) Operating cash flow 125 150 CHF 1.28/1.23 EUR 1.22/1.17 100 75 CHF 0.66/0.631) EUR 0.54/0.521) 120 CHF 0.63/0.61 EUR 0.61/0.58 CHF 0.40/0.381) EUR 0.33/0.311) 36.9 23.0% 90 84.0 50 25 25.0% 41.8 31.9% 30 48.2 33.9 22.2 0 H1 2014 H1 2015 Q2 2014 Q2 2015 Net cash, cash + short term investments Net cash 250 Cash + short term invest. 0 H1 2014 H1 2015 199.2 60 40 40.0 100 71.9 11.2 0 14.1% H1 2014 H1 2015 adjusted for share split of 1:5 16.0% 11.9% 20 17.0 0 1) 45.7 45.4 H1 2014 H1 2015 Q2 2014 Q2 2015 80 150 50 30.1 Capital expenditures 20.8% 200 17.8% 74.4 60 H1 2014 H1 2015 20.1 Q2 2014 Q2 2015 © ams AG 2015 Page 20 Thank you Please visit our website www.ams.com © ams AG 2015 Profit and loss statement EURm (IAS) H1 2015 H1 2014 Q2 2015 Q2 2014 322.9 300.4 22.5 192.6 172.3 20.3 169.5 157.6 11.9 106.3 95.5 10.8 Gross profit • Gross margin (incl. acquisition-related costs) 175.7 54.4% 104.6 54.3% 92.3 54.4% 58.1 54,7% Research and development Selling, general and administrative Other operating income/expenses - 50.3 - 47.8 5.3 - 34.4 - 34.2 3.4 - 26.7 - 25.0 3.9 - 17.9 - 18.2 2.0 82.8 39.4 44.6 24.0 Operating margin 25.6% 20.5% 26.3% 22.6% Net financing result 7.4 - 0.8 0.6 - 0.7 Result before tax Income tax result 90.2 - 6.2 38.6 - 1.7 45.2 - 3.4 23.3 - 1.1 Net result 84.0 36.9 41.8 22.2 1.28 / 1.23 1.22 / 1.17 0.66 / 0.632) 0.54 / 0.522) 0.63 / 0.61 0.61 / 0.58 0.40 / 0.382) 0.33 / 0.312) Total revenues • Products • Foundry Result from operations (EBIT) (incl. acquisition-related costs) • 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 22 Balance sheet EURm Jun 30, 2015 Dec 31, 2014 Liabilities and equity Jun 30, 2015 Cash and short term invest. Trade receivables Inventories Other current assets 199.2 101.6 64.4 16.8 229.6 79.0 59.9 18.3 Interest-bearing debt Trade liabilities Provisions Other liabilities 4.8 46.0 42.7 43.9 38.5 51.0 37.6 42.1 Total current assets 381.9 386.7 Total current liabilities 137.4 169.2 Fixed assets Intangible assets Investments Deferred tax asset Other non-current assets 233.4 331.6 1.6 34.2 8.2 204.1 315.7 6.5 34.1 7.7 Interest-bearing debt Employee benefits Provisions Deferred tax liabilities Other liabilities 148.9 28.5 29.9 19.4 7.3 146.1 27.0 27.1 20.8 8.9 Total non-current assets 609.0 568.2 Total non-current liabilities Shareholders’ equity 233.9 230.0 619.6 555.8 Total liabil. and equity 990.9 955.0 Assets (IAS) Total assets 990.9 955.0 Dec 31, 2014 © ams AG 2015 Page 23 Cash flow statement EURm (IAS) H1 2015 H1 2014 Q2 2015 Q2 2014 Income before tax Depreciation 90.2 23.9 38.6 17.2 45.2 12.0 23.3 8.8 Cash flow from operations 74.4 48.2 30.1 34.0 Capital expenditures - 45.7 - 40.0 - 20.1 - 17.0 Cash flow from investing activities - 57.5 - 55.3 - 16.7 - 32.4 Proceeds from borrowings Repayment of borrowings Dividends paid Changes resulting from capital increase 64.1 - 33.7 - 22.8 0.9 1.0 - 0.4 - 14.1 2.6 32.8 - 33.7 - 22.8 0.4 1.0 - 0.4 - 14.1 1.2 Cash flow from financing activities - 68.1 - 26.1 - 27.0 - 24.2 Change in cash and cash equivalents - 44.6 - 32.8 - 15.8 - 22.3 159.1 50.5 159.1 50.5 (incl. effects of changes in foreign exchange rates) Cash and cash equivalents at end of period © ams AG 2015 Page 24