ams Q1 2016 results Alexander Everke, CEO Michael Wachsler-Markowitsch, CFO Moritz M. Gmeiner, Head of IR April 2016 © ams AG 2016 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 2016 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 • 600+ engineers • More than 30 years of design experience • 17 design centers, 2 manufacturing sites • 2,100+ employees worldwide • 8,000+ customers © ams AG 2016 Page 3 Our focus High performance sensors and analog ICs Target markets Core expertise Consumer & Communications Automotive, Industrial, Medical 65% of revenues (FY 2015) 35% of revenues (FY 2015) Sensor solutions and sensor interfaces Power management Wireless © ams AG 2016 Page 4 Light sensors Worldwide leader in intelligent integrated light sensors Sensor solutions • Gesture - hand movement sensing near device surface creates touchless interface • RGB color ALS - full light spectrum/light temperature analysis improves display quality • Classic ALS - legacy monochromatic ambient light sensing for simple display management • Proximity (Prox) - skin proximity detection to control display/touchscreen on-state High performance light sensing including gesture and True Color Broad coverage of consumer electronics markets • Smartphones, tablet PCs, mobile devices, HDTV, PCs/notebooks New opportunities: new consumer applications, industrial lighting • New light sensor-based technologies to improve consumer devices • True Color Sensing for advanced analysis of light environment • Combination of LED driver and light sensing for building lighting © ams AG 2016 Page 5 New business: CMOSIS Expansion of optical sensor portfolio with high-end CMOS image sensors Leader in high-end CMOS imaging • High-performance area and line scan Multiple growth CMOS sensors opportunities in • Leading position in global shutter industrial and medical technology for excellent high-speed image sensing performance • Low noise, global and rolling shutter, high dynamic range, and high frame rate solutions • Advanced applications in machine vision, medical, broadcast, traffic, scientific and photographic imaging • Locations in Belgium, Germany, Portugal, U.S. NanEye <1mm2 camera modules for endoscopy-type medical applications • Significantly higher picture quality and robustness for better diagnostics • Path to cost-efficient medical solutions © ams AG 2016 Page 6 Wireless solutions – NFC, RFID NFC solutions for mobile transactions (Boosted NFC) NFC boost license • High performance ALM antenna boost agreement with technology major NCC vendor • Highest NFC reliability for wearables, smartphones, and mobile devices • Applications in device NFC, small form factors and readers • License agreement with major NFC controller chip vendor 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 2016 Page 7 Audio: MEMS microphone ICs, ANC MEMS microphone interface ICs • • • • Market leader in dynamic market Around 1.6bn units shipped in 2015 Leading position in low noise solutions Strong customer partnership focused on high value market segments Growing interest for ANC in smartphonebundled earphones ANC (active noise cancellation) • • • • High performance technology offering pure analog noise reduction, no DSP required Significant audio quality improvement Very low power consumption, minimized footprint, comprehensive roadmap for enhanced feature set High volume opportunities in smartphone/earphone applications © ams AG 2016 Page 8 Industrial Sensor solutions and sensor interfaces Industrial automation, control, and sensing • Motion control • Industrial sensors including time-based sensors • Drives and electrical motors • Seismic sensor interfaces Sampling CMOS environmental sensors 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 • CMOS monolithic relative humidity, pressure and temperature sensors © ams AG 2016 Page 9 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 2016 Page 10 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 object detection supports upcoming applications Safety systems and ADAS • Advanced driver assistance/object detection LIDAR systems • ESP (Electronic Stability Program), data bus networks Battery power management • Battery management for conventional, hybrid, and electric vehicles • High efficiency power management Environmental sensing • Air quality sensing • Relative humidity and temperature sensing © ams AG 2016 Page 11 Scalable manufacturing model In-house capacity + manufacturing partnerships Wafer manufacturing • 200mm internal fab, Austria (180-190k 200mm-wafer equiv. p.a.) • CMOS + specialty analog down to 180nm • External wafer sources: TSMC, UMC, GF Construction for U.S. wafer fab project started New wafer fab project in upstate New York, USA • Renting new custom-built wafer fab from State of New York • First buildout: 150k+ 200mm-wafer equiv. p.a., 130nm capable • Construction started, expected start of ramp H1 2018E • No depreciation on fab • Significantly lower per-wafer cost to drive margin benefits Test and assembly • In-house test in Austria and the Philippines • End-to-end fully integrated supply chain © ams AG 2016 Page 12 Global value chain Headquarters Design centers Test center Sales offices • • 17 design centers Austria, Switzerland, Italy (2), Spain, Slovenia, Germany (3), Belgium, Netherlands, Portugal, Finland, USA (2), India, Japan High volume test center Philippines © ams AG 2016 Page 13 Company highlights Analog makes sense © ams AG 2016 Page 14 Key figures EURm (IFRS) Total revenues 2015 2014 Q1 2016 Q1 2015 623.1 + 34.2% 464.4 137.2 - 10.5% 153.3 Gross margin (adjusted 1) ) (IFRS reported) 56% 54% 56% 55% 57% 54% 56% 54% Result from operations (EBIT) (adjusted 1) ) (IFRS reported) 167.1 147.3 120.5 105.4 28.2 19.7 43.4 38.2 148.7 + 52.4% 97.5 13.6 - 67.8% 42.2 2.30 / 2.21 2.16 / 2.08 1.74 / 1.67 1.43 / 1.37 0.22 / 0.21 0.20 / 0.19 0.65 / 0.62 0.62 / 0.59 Net result EPS (basic/diluted) 1) Adjusted 2) Earnings CHF2) EUR for acquisition-related and share-based compensation costs per share in CHF were converted using the average currency exchange rate for the respective periods © ams AG 2016 Page 15 Financial results EURm Total revenues 700 Total revenues by market 2015 + 34% 600 Automotive, Industrial, Medical 500 623.1 400 300 65% 464.4 - 11% 200 100 0 153.3 2014 2015 Q1 2015 Q1 2016 Total backlog 200 100% 64% 59% Asia/Pacific Consignment stock agreements approx. EUR 12-16m 150 60% 100 40% 20% 0% Consumer & Communications 137.2 Total revenues by region Q1 2015 / Q1 2016 80% 35% 3% 5% Americas 119.4 126.2 50 33% 36% Q1 2015 Q1 2016 Europe (EMEA) 0 Dec 31 2015 Mar 31 2016 © ams AG 2016 Page 16 Financial results EURm, % of revenues Gross profit, gross margin 400 R&D 56.4%1) 56.2%1) 125,0 350.41) 300 100,0 75,0 262.11) 200 56.1%1) 57.0%1) 86.01) 78.21) 100 0 2014 2015 16.6% Q1 2015 Q1 2016 SG&A 17.3% 107.8 77.0 50,0 15.4% 25,0 23.7 0,0 2014 2015 24.0% 32.9 Q1 2015 Q1 2016 EBIT 16.5% 100 200 15.0% 76.9 100 50 14.9% 26.8%1) 167.11) 150 93.5 75 26.0%1) 120.51) 28.3%1) 17.1% 20.5%1) 50 25 22.8 0 2014 1) 2015 43.41) 23.5 Q1 2015 Q1 2016 0 2014 Excluding acquisition-related and share-based compensation costs 2015 28.21) Q1 2015 Q1 2016 © ams AG 2016 Page 17 Financial results EURm, % of revenues Net result, EPS (basic/diluted) 175 180 CHF 2.30/2.21 EUR 2.16/2.08 150 125 CHF 1.74/1.67 EUR 1.43/1.37 100 97.5 75 120 CHF 0.65/0.62 EUR 0.62/0.59 CHF 0.22/0.21 EUR 0.20/0.19 42.2 25 13.6 2015 240 Net cash 180 Cash + short term invest. 215.7 120 -180 25.1% 5.5% 30 38.5 2014 2015 Q1 2015 Q1 2016 Capital expenditures 100 15.1% 12.9% 80.1 60 70.1 61.0 40 16.7% 20 25.5 -161.5 0 Q1 2015 Q1 2016 7.5 80 -60 -120 124.1 155.0 60 0 155.6 60 Q1 2015 Q1 2016 Net cash, cash + short term investments 25.0% 90 0 2014 26.7% 150 148.7 50 0 Operating cash flow Q1 2015 Q1 2016 2014 2015 15.9% 21.9 Q1 2015 Q1 2016 © ams AG 2016 Page 18 ams Shaping the world with sensor solutions © ams AG 2016 Profit and loss statement EURm (IFRS) 2015 2014 Q1 2016 Q1 2015 Total revenues • Products • Foundry 623.1 579.0 44.1 464.4 425.0 39.4 137.2 127.5 9.7 153.3 142.8 10.6 Gross profit 339.2 253.2 73.9 83.4 • • 56.1% 54.4% 56.4% 54.5% 56.4% 53.9% 56.0% 54.4% - 107.8 - 93.5 9.3 - 77.0 - 76.9 6.0 - 32.9 - 23.5 2.3 - 23.7 - 22.8 1.4 Result from operations (EBIT) 147.3 105.4 19.7 38.2 • • 26.0% 23.6% 25.0% 22.7% 19.0% 14.4% 27.4% 24.9% 11.7 - 1.2 - 5.4 6.8 Result before tax Income tax result 158.9 - 10.3 104.1 - 6.6 14.4 - 0.8 45.0 - 2.8 Net result 148.7 97.5 13.6 42.2 Gross margin (excl. acquisition-related costs) Gross margin (IFRS reported) Research and development Selling, general and administrative Other operating income/expenses EBIT margin (excl. acquisition-related costs) EBIT margin (IFRS reported) Net financing costs © ams AG 2016 Page 20 Balance sheet EURm Mar 31, 2016 Dec 31, 2015 Liabilities and equity Mar 31, 2016 Cash and short term invest. Trade receivables Inventories Other current assets 155.0 95.9 80.3 30.0 143.9 88.7 79.8 28.7 Interest-bearing debt Trade liabilities Tax liabilities Provisions Other liabilities 95.4 42.2 41.0 33.8 29.5 75.0 58.6 46.3 34.7 31.0 Total current assets 361.3 341.0 Total current liabilities 242.0 245.6 Fixed assets Intangible assets Investments Deferred tax asset Other non-current assets 262.3 568.1 1.7 34.8 6.2 256.6 582.0 1.9 34.8 7.0 Interest-bearing debt Employee benefits Provisions Deferred tax liabilities Other liabilities 221.1 33.1 0.0 55.5 5.9 200.2 32.4 0.0 57.9 6.0 Total non-current assets 873.2 882.3 Total non-current liabilities Shareholders’ equity 315.6 296.6 676.9 681.2 1,234.5 1,223.4 Assets (IFRS) Total assets 1,234.5 1,223.4 Total liabil. and equity Dec 31, 2015 © ams AG 2016 Page 21 Cash flow statement EURm (IFRS) 2015 2014 Q1 2016 Q1 2015 Income before tax Depreciation 158.9 47.9 104.1 37.3 14.4 15.1 45.0 11.9 Cash flow from operations 152.9 126.0 7.5 38.5 Capital expenditures - 80.1 - 70.1 - 21.9 - 25.5 Cash flow from investing activities - 287.2 - 108.9 - 16.5 - 40.8 Proceeds from borrowings Repayment of borrowings Dividends paid 220.3 - 149.6 - 22.8 125.3 - 0.8 - 14.1 45.9 - 4.6 0 31.3 - 61.2 0 24.4 99.1 29.3 - 35.4 -100.1 120.3 15.5 - 28.8 103.6 203.7 119.1 174.8 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 2016 Page 22