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ASMI ANNUAL REPORT 2021
ASMI CONTINUES TO INVEST IN INNOVATION AND
EXPANSION, SHARPENS SUSTAINABILITY FOCUS,
AND DELIVERS STRONG GROWTH.
In this fifth consecutive year of double-digit growth, we achieved strong expansion in logic/foundry
and strengthened our position in the memory market, while working closely with customers to
develop the key technologies for the next nodes.
We published our 2025 targets as part of our Growth through Innovation strategy. Prospects for our
key ALD and Epi products are bright, enabling industry breakthroughs, such as the next-generation
transistor architecture. Supported by increased investments in R&D, we aim to continue outpacing
market growth.
Growth through
innovation
We have reinforced our commitment to sustainability. In 2021, we took a next step by defining
our sustainability priorities for the next horizon, including announcing our target to achieve
Net Zero emissions by 2035.
People are our key asset. We are committed to creating a safe, inspiring, inclusive and diverse
workplace where employees have the opportunity to maximize their potential.
With our technology, and underpinned by our values – We Care, We Innovate, We Deliver –
we continue to help move the industry roadmap forward, driving innovation in the electronics
market and improving people’s lives.
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1
TABLE OF CONTENTS
ABOUT
MESSAGE FROM THE CEO
ASMI AT A GLANCE
STRATEGY
KEY PERFORMANCE
VALUE CREATION
Long-term value creation
Customers and markets
Innovation and products
People
Global operations
Sustainability
Shareholders
Interview with the CFO
GOVERNANCE
Corporate governance
Risk management
Management Board
Supervisory Board
Supervisory Board report
Remuneration report
External auditor
Declarations
2
3
7
12
16
19
20
23
26
39
52
57
74
86
89
90
93
99
101
106
111
117
118
FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of profit or loss
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
ASM INTERNATIONAL N.V. FINANCIAL STATEMENTS
Company balance sheet
Company statement of profit or loss
Notes to the company financial statements
INDEPENDENT AUDITOR’S REPORT
119
120
120
121
122
123
124
125
165
165
166
167
173
NON-FINANCIAL SUMMARY
NON-FINANCIAL PERFORMANCE DATA
ASSURANCE REPORT OF THE INDEPENDENT AUDITOR
180
181
184
GENERAL INFORMATION
Product description
Other information
Glossary and definitions
Locations worldwide
Safe harbor statement
187
188
190
192
196
198
NOTES TO THE READER
PDF/printed version
This document is the PDF/printed version of
ASM International N.V.’s 2021 Annual Report
and has been prepared for ease of use.
The 2021 Annual Report in European Single
Electronic Reporting format (the ESEF reporting
package) is the official version. The ESEF reporting
package is available on the company’s website.
In case of any discrepancies between this
PDF version and the ESEF reporting package,
the latter prevails.
Unrounded figures
Amounts in the Annual Report may not add up
due to rounding differences. The total amounts
may therefore deviate from the sum of the
parts. Percentage changes are based on the
unrounded figures.
About
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2
ABOUT
Message from the CEO
ASMI at a glance
Strategy
Key performance
3
7
12
16
ASM International N.V. (ASMI) is
a leading supplier of semiconductor
wafer processing equipment and
process solutions. Our customers
include all the top semiconductor
device manufacturers in the world.
Semiconductor chips sit at the heart of almost
every electronic device we use today, and
ASMI equipment is a key technology used to
manufacture many of these chips.
Our strategy is Growth through Innovation.
Innovation is at the core of what we do at ASMI.
With our global, networked R&D model, we can
collaborate closely and early with our customers,
industry partners, and universities.
In 2021, as COVID-19 continued to impact
each of us, the health and safety of our people
remained our biggest priority. ASMI not only
delivered strong financial results, but we also
took important steps forward in strengthening
our position as an innovation leader and
expanding our growth potential.
Message from the CEO
Message from the CEO
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MESSAGE FROM THE CEO
As COVID-19 continued to impact each of us in 2021, the health and safety of our people remained our
biggest priority. ASMI not only delivered strong financial results, but also took important steps forward in
strengthening our position as an innovation leader and expanding our growth potential.
The year began on an optimistic note, with the belief that vaccines would help control the pandemic
and some normality would resume. But as 2021 unfolded, and new variants drove further
COVID-19 waves, uncertainty and disruption persisted. We experienced the deep impact of the
pandemic on our lives, communities, and world economies. At ASMI, we continued to prioritize
the health and safety of our people, business partners, and communities. Throughout 2021
and at the start of 2022, we continued with our robust control measures, travel restrictions, and
work-from-home protocols.
“ WE TOOK IMPORTANT STEPS FORWARD IN
EXPANDING OUR GROWTH POTENTIAL.”
I am proud of our people, and how they all pulled together as one ASMI team – putting health and
safety first, while serving our customers in the best possible way. Thank you to all our employees
for a great effort, and for showing your resilience and relentless commitment.
SEMICONDUCTORS ENABLING THE DIGITALIZATION TREND
Accelerated digitalization has driven strong growth in the semiconductor industry. The global
semiconductor end market increased 24% in 2021, exceeding the US$500 billion level for the
first time. The pandemic triggered structural changes in how we communicate, consume, and
work. Semiconductors provide key building blocks for the digitalization trend, and the continued
build out of IT infrastructure. The surge in demand that started in 2020 and sped up in 2021 has
been outstripping supply, despite sector-wide efforts to boost output and capacity. This resulted
in shortages and increased lead times in many parts of the chip markets. This, in turn, has
driven further investments in capacity. It has also highlighted the increased importance of
the semiconductor industry in today’s world.
Benjamin Loh
President and Chief Executive Officer
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STRONG GROWTH IN LOGIC/FOUNDRY AND EXPANDED
POSITION IN MEMORY
The wafer fab equipment (WFE) market increased strongly with a mid-to-high 30s percentage in
EQUIPMENT REVENUE DRIVEN BY ALD AND EPI
In terms of product lines, revenue was again led by very solid double-digit growth in our
ALD business, which continued to represent more than half our equipment revenue. Epi, our
2021. We benefited from strong demand across the board. In terms of customer segments, our
second-largest product line, also showed very strong growth on the back of robust demand in
sales were driven by foundry, followed by memory, and then logic. The combined logic/foundry
the advanced CMOS market, and the rebound in the analog/power segments. An important
segment remained the key driver for ASMI. This was fueled by our customers’ substantial
achievement in 2021 was the second customer win for our Intrepid ES tool, in the advanced
investments in leading-edge manufacturing capacity, to meet growing demand for high-end
CMOS market for an advanced gate-all-around application. We also launched the new Intrepid ESA.
computing and 5G smartphones. We continued to benefit from substantial increases in the
This makes the substantial performance and cost-of-ownership benefits of the Intrepid available
ALD requirement in the most advanced logic/foundry nodes, resulting in share of wallet gains for
for 300mm applications in the analog, power and wafer-maker markets.
our company. During the year, we further expanded our R&D engagements for the next nodes,
and we won several new key applications. We also saw the first meaningful bookings in the
We invest selectively in our PECVD and vertical furnace product lines. Noteworthy in 2021 is the
second half of 2021 for the upcoming node transition, which, for most of our key logic/foundry
contribution of the A400 DUO, our high-productivity 200mm vertical furnace. Introduced in 2019,
customers, is expected to go into high-volume manufacturing in the second half of 2022 and
this is now having great success, including several new customer wins in China.
into 2023. We expect the number of ALD layers to show strong double-digit percentage growth
in the next node. This will provide us with further opportunities for share of wallet increases with
key logic/foundry customers.
“ WE EXPECT THE NUMBER OF ALD LAYERS
TO SHOW A STRONG DOUBLE-DIGIT
PERCENTAGE GROWTH IN THE NEXT NODE.”
“ OUR OUTCOME-BASED SERVICES CREATE
VALUE BY REDUCING COSTS AND
INCREASING UPTIME.”
Our spares & services business delivered a solid performance, with 16% higher revenue. The sales
increase in 2021 moderated compared to the 29% growth in 2020, in part due to the impact
of customers investing in higher inventories of spares in 2020 in the face of COVID-19-related
Against a backdrop of healthy spending trends in memory, we achieved a significant increase in our
disruptions of global supply chains and logistics. Our new, innovative outcome-based services had
sales to memory customers in 2021. A key driver for our memory business has been the adoption of
strong traction. We booked multiple contracts for our so-called Complete Kit Management (CKM),
high-k metal gate ALD in DRAM. This is a key technology that enables greater power efficiency and
and spares-as-a-service offerings. These are creating value for our customers by reducing costs
improved performance of cutting-edge DRAM devices. We have strong engagements for several
and increasing uptime of our equipment.
other new applications, both in DRAM and 3D-NAND, which we expect will increase our memory
position in coming years.
SUPPLY CHAIN CHALLENGES
COVID-19 continued to create challenges in our operations, especially supply chain. In terms of
Growth in WFE spending on the trailing-edge technology nodes in 2021 is also worth noting.
our capacity, we benefited from our investment in the new manufacturing facility in Singapore.
This was driven by strong end-market demand and capacity shortages. In this market, we have
This provided us with the flexibility to meet increased demand. Since completion at the end of 2020,
a number of solid positions in niche segments, particularly in the power, analog and wafer-maker
we have steadily been increasing headcount to raise output. In September 2021, we announced
segments, even though ASMI in total derives most of its sales from the most advanced node
that we had started the design work on the second manufacturing floor within this new facility,
spending. Analog/power demand, which has a relatively higher exposure to the automotive and
aiming to be production ready by early 2023. This will result in a further substantial capacity boost.
industrial markets, rebounded strongly in 2021 following the drop in 2020.
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In supply chain, the situation was already tight as we entered 2021, and constraints increased in
to 20% by 2025. As part of our aim to build a strong and unified culture, we launched our core
the second half of the year. This included the impact of the lockdown measures, resulting in reduced
values – We Care, We Innovate, We Deliver – defining who we are at ASMI, and what we stand
factory outputs – in Southeast Asia, and especially Malaysia – which is an important link in the
for. We stepped up our internal communications, and implemented improvement actions following
supply chains in our industry. Building on the learnings from COVID-19-related disruptions in 2020,
our earlier engagement survey. These steps are essential to making us attractive as an employer.
we took several actions to mitigate the impact. This included maintaining higher buffer inventories,
The war for talent is fierce, especially in the semiconductor sector, and we need to significantly grow
and qualifying new suppliers. We were still able to meet our customer requirements. We achieved
our workforce to execute our growth ambitions. We stepped up our talent-recruitment initiatives
quarter-on-quarter record-high sales thanks to very strong execution by our team, and outstanding
and benchmarked our global rewards and employee-benefits programs. In 2021, we succeeded
support and commitment from our supply chain partners.
in welcoming a record-high number of new colleagues, and grew our total number of employees
by 28% to 3,312.
SUSTAINABILITY AND ESG
This was also the year we substantially stepped up our sustainability ambitions. Our focus is on
long-term sustainable value creation for all our stakeholders. Building on a solid foundation of
achievements in sustainability, we are now taking important steps forward as we strive to make
a positive impact in the world. In 2021, we defined our key sustainability focus areas and priorities
for 2021-2025 in key environmental, social, and governance areas. These are well-aligned with
our strategy and the priorities of our key stakeholders.
“ WE AIM TO CREATE A SAFE AND INSPIRING
WORKPLACE OF INCLUSION AND DIVERSITY.”
RECORD-HIGH FINANCIAL RESULTS
Our company again delivered strong financial results in 2021. Revenue increased 30% to
Our priorities include: continuing our relentless focus on safety leadership; development of our
€1.7 billion, our fifth consecutive year of double-digit growth. The gross margin improved from
people and culture; reductions in our environmental footprint; ensuring a responsible supply chain,
47.0% to 47.9%. Net R&D increased by 9% and SG&A expenses by 20%. Our operating result
and continued strengthening of governance, including cybersecurity and IP protection. An important
grew about 50%, with the operating margin improving from 24.6% to 28.4%.
step in 2021 was the announcement of our target to achieve Net Zero emissions, including Scope
3, by 2035. In 2021, we transitioned most of our key sites to electricity from renewable sources, in
The income related to our 25% stake in ASMPT increased to €87 million from €45 million in 2020.
line with the commitment we made last September. We believe we remain on track to achieve our
This result excludes the amortization of intangible assets related to ASMPT.
target for 100% electricity from renewable sources for all our sites by 2024, with an estimated 90%
reduction in our Scope 1 and 2 greenhouse gas (GHG) emissions relative to 2020.
Free cash flow more than doubled from €120 million in 2020 to €266 million in 2021. This increase
“ OUR TARGET IS TO ACHIEVE NET ZERO
EMISSIONS BY 2035.”
PEOPLE ARE OUR BIGGEST ASSET
One of our key focus areas in sustainability is people. We aim to create a safe and inspiring
was driven by the strong improvement in profitability, with working capital under control, and despite
higher income tax paid. CapEx additions amounted to €79 million in 2021, with a significant part
spent on expanding and upgrading our R&D lab facilities. In 2021, we also reconfirmed the key
elements of our capital allocation policy. Investment in the growth of our company and maintaining
a strong financial position remain the priority. Our commitment to pay a sustainable dividend and
use any excess cash for the benefit of our shareholders is unchanged.
In 2021, ASMI returned €237 million to shareholders in the form of dividend and share buybacks, up
workplace of inclusion and diversity, where our employees can unleash their potential. In 2021,
from €165 million in the previous year. We will propose a dividend of €2.50 per share to be paid over
we launched ConvERGe – our new employee resource group – on International Women’s Day.
2021, up 25% from €2.00 last year.
We have set a target to increase the percentage of women working at ASMI from 15% in 2021
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OUTLINING OUR GROWTH THROUGH INNOVATION STRATEGY
Long-term prospects look bright. Data-intensive end-market applications, such as artificial
The WFE market is expected to increase by a mid to high teens percentage in 2022. Solid spending
is expected for the logic/foundry segment, driven by the combination of ongoing capacity additions
intelligence and cloud computing, will drive investments in faster and more power-efficient
as well as investments in next node initial capacity. While the memory market remains dependent
semiconductors. At our Investor Day in September 2021, we outlined how we are going to drive
on supply-demand developments, spending in 2022 is likely to be supported by expansion projects
growth through innovation. ALD and Epi will be critical technologies to enable the inflections on
and investments in the new nodes.
our customers’ roadmaps, particularly the increasing adoption of 3D structures and new materials,
coupled with traditional scaling. We believe our company is well positioned to benefit due to
Supported by a record high order backlog at the end of Q4, ASMI has started the year on a strong
unique strengths. These include our networked R&D model, early customer engagements, vast
footing. Looking at the first half of the year of 2022, supply chain conditions are expected to remain
experience in ALD materials, and a broad portfolio of ALD solutions.
tight. For Q1, on a currency comparable level, we expect revenue of €500-530 million, with a further
We expect ALD to remain one of the fastest-growing segments of the WFE market, with a CAGR
in the second half of 2022 to be higher than the level in the first half. We expect to outperform the
of 16% to 20% in the years to 2025*. In ALD, we aim to maintain a leading market share in excess
WFE market in 2022.
steady increase in Q2 revenue compared to Q1. Based on the current visibility, we expect revenue
of 55% by 2025. This is based on continued leadership in the logic/foundry space, and an increase
in our ALD memory share. We project the Epi market to increase with a CAGR of 13% to 18% in
the years to 2025*. We target our Epi market share to increase from about 15% last year to more
than 30% by 2025. A key inflection will be gate-all-around (GAA), a new and advanced transistor
architecture that is expected to further increase the need for both Epi and ALD.
In our vertical furnace and PECVD product lines, we target selective growth. Our spares & service
“ WE WILL STAY FOCUSED ON FURTHER
EXPANDING OUR ENGAGEMENTS WITH
KEY CUSTOMERS.”
business is further contributing to ASMI’s growth, as we are moving to outcome-based services.
We will stay focused on further expanding our engagements with key customers. In 2022, we will
At our Investor Day, we also committed to 2025 financial targets. We aim to grow our revenue with
ahead of us. We also plan to report on our progress in sustainability, as we set further targets and
a CAGR of 16% to 21% in the next five years*. We target solid gross margin in a range of 46%-50%
undertake new initiatives in our key focus areas.
also further invest in our business – to strengthen our position and tap into the many opportunities
and operating margin of 26% to 31% in 2021-2025.
LOOKING AHEAD TO 2022
Our industry entered 2022 with strong momentum. The global economy is forecast to show further
March 3, 2022
solid improvement this year, despite risks related to the pandemic, including a continuing impact on
the supply chain, geopolitical tensions, and inflationary pressures. Capacity shortages mean that
part of the demand in 2021 has carried over into 2022.
Benjamin Loh
President and Chief Executive Officer
*Compared to the baseline year 2020 as presented during the Investor Day in September 2021.
ASMI at a glance
ASMI at a glance
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ASMI AT A GLANCE
WHAT WE DO
ASMI supplies wafer processing equipment to the leading semiconductor manufacturers, primarily for the deposition of thin films. We design,
manufacture, sell, and service our deposition tools to supply our customers with the advanced technologies to produce semiconductor devices,
or integrated circuits (ICs). Semiconductor ICs, or chips, are a key technology enabling the advanced electronic products used by consumers and
businesses everywhere. Semiconductor manufacturers use our tools in their wafer fabrication plants, or fabs. We also provide maintenance service,
spare parts, and process support to our customers globally at their fabs.
BASICS OF SEMICONDUCTOR MANUFACTURING
The process of making semiconductor chips at our customers’ fabs is highly complex and costly.
Semiconductor fabs house a large set of wafer-processing equipment, which performs a series
of process steps on round silicon wafers, typically 300mm in diameter. The equipment operates
in cleanrooms, where the air is filtered to prevent contamination from small particles that could
negatively affect the circuitry on the chips.
There are many steps to creating a semiconductor chip, involving various types of wafer-processing
equipment. These include photolithographic patterning, depositing thin-film layers, etching to
remove material, and thermal treatments. ASMI’s systems are designed for deposition processes
where thin films, or layers, of various materials are grown or deposited onto the wafer. Many different
thin-film layers are deposited to complete the full sequence of process steps needed to make
a chip. After testing the individual circuits to make sure they are performing correctly, the chips on
the wafer are separated and packaged in a protective housing. Ultimately, they will become part
of a set of semiconductor chips on circuit boards within an electronic product.
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OUR PRODUCT TECHNOLOGIES
ASMI’s ALD, epitaxy, PECVD and vertical furnace systems are all used in the manufacturing process
EPITAXY
Our second largest product line is epitaxy (Epi), which is the process of depositing highly controlled
for the world’s most advanced semiconductor chips. It is increasingly difficult for the semiconductor
silicon-based crystalline films. It is one of the fastest-growing segments in the deposition market.
industry to achieve each subsequent technology node, which is fueling the demand for more
The number of Epi steps is increasing as logic/foundry customers move to smaller nodes, and more
advanced process steps and new materials. Our equipment is a key component in enabling
powerful devices are needed for mobile applications and electric vehicles.
the industry to advance its technology roadmap.
We are a major player in the ALD and epitaxy segments, and a niche player in vertical furnace and
PECVD AND VERTICAL FURNACES
The relatively large size of the PECVD and vertical furnace segments makes these markets
PECVD. These product technologies are described below:
attractive to ASMI. We have seen solid increases in the total revenue of these two product lines
ALD
ASMI has a leading position in atomic layer deposition (ALD). It is our largest product line,
accounting for more than half our equipment revenue in 2021. ALD is the most advanced
SERVICE AND SPARE PARTS
Technical service and spare parts are important product offerings for our business. To ensure
deposition method in the market, making it possible to create ultra-thin films of exceptional
speedy availability, our global service teams are based close to our customers at regional and local
material quality, uniformity, and conformality.
service centers. We are expanding our offering with new outcome-based services.
in last years.
ALD CYCLE
Precursor
By-product
PURGE
1
PURGE
4
Oxidant
2
3
By-product
ALD CYCLE
ALD is a surface-controlled layer-by-layer process that
deposits thin films one atomic layer at a time. Layers are
formed during ALD reaction cycles by alternately pulsing
precursors and oxidants, and purging out by-products
with inert gas in between each pulse. The repetition of
the ALD cycles results in a layer-by-layer growth of the
deposited film. Because the ALD process is self-limiting,
due to the principle of surface saturation, it results in
films with a uniform thickness, even over varied surface
topographies (conformality). The thickness of the film
is precisely controlled by adjusting the number of
ALD cycles.
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COMPANY FACTS & FIGURES
ABOUT ASMI
Leading player in advanced
technologies in the semiconductor
equipment market
A heritage of 53 years of relentless
research and innovation, and
breakthrough technologies
649 employees working in R&D
€206 million gross R&D expenses
26
10
Historical revenue*
HISTORICAL REVENUE*
€ billion
€ million
2.0
1,730
1,328
1,125
737
818
1.5
1.0
0.5
2017
2018
2021
* Excluding proceeds from patent litigation and arbitration
* Excluding proceeds from patent litigation and
arbitration settlement in 2019.
settlement in 2019.
2019
2020
ASMI IN NUMBERS
€1.7
billion revenues
28.4%
€492
operating margin
million cash position
3,312
employees
47
2,250
nationalities
patents
REVENUE BY GEOGRAPHY
in %
ASMI FOCUS IS ON DEPOSITION TOOLS
in %
Target to achieve Net Zero emissions
by 2035, with 100% renewable
electricity by 2024
64
10
10
Asia
US
Europe
26
26
19
64
64
Asia
Asia
US
US
Europe
Europe
81
Equipment revenue
Spares & services
Our core values
Numbers refer to 2021, unless indicated otherwise.
NEW HIRES
New hires
A leading 55% market share in ALD in 2020
1,500
1,000
500
1,146
Growing position in Epi since 2016
659
487
407
515
2017
2018
2019
2020
2021
Selective growth in vertical furnaces
and PECVD
Spares & services driven by outcome-based
services
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OUR GLOBAL FOOTPRINT
RESEARCH FACILITIES
Belgium - Leuven
Finland - Helsinki
BUSINESS UNIT AND
PRODUCT RESEARCH &
DEVELOPMENT FACILITIES
Japan - Tokyo
The Netherlands - Almere
South Korea - Dongtan
US - Phoenix
MANUFACTURING FACILITIES
Singapore - Singapore
South Korea - Dongtan
The Netherlands - Almere
CORPORATE, SALES AND
SERVICE OFFICES
China
France
Germany
Ireland
Israel
Japan
Malaysia
The Netherlands
Singapore
Taiwan
US
We are
present in
14
countries
Key
customers
in Asia, US,
and Europe
Suppliers
in more than
20
countries
3
manufacturing
facilities
For a complete overview of all our locations, please visit our corporate website: www.asm.com
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ASMI HISTORY: MORE THAN 50 YEARS OF INNOVATION
ASMI was founded in the Netherlands in 1968, at the very start of the semiconductor industry.
by ASMI’s participation in a joint venture with Philips in the mid-1980s to develop lithography
technology, known today as ASML. ASMI sold its share in ASML in 1988.
Founder Arthur Del Prado (1931-2016) was our CEO until 2008. He was succeeded by his son,
Since the early 1990s, ASMI has focused its efforts on deposition. This includes investing in the
Chuck Del Prado, who was CEO until 2020. In May 2020, Benjamin Loh, our current CEO, took
novel technique of ALD (atomic layer deposition), leading to acquisitions of ASM Microchemistry
over. ASMI initially entered the furnace deposition market, and started producing these systems
in 1999, and ASM Genitech Korea in 2004. In 2007, our Pulsar ALD tool became the first system
in the Netherlands in the early 1970s. As a pioneer of technology advancement and globalization,
used in the high-volume manufacturing of devices using a new hafnium-based high-k gate dielectric
the company also began launching new companies around the world.
material. Since that breakthrough, ASMI has continued to strengthen its footprint with leading-
edge customers. We have brought novel deposition processes to the market to realize 3D device
In the mid 1970s, ASM Pacific Technology (ASMPT) was founded in Hong Kong, becoming a
architectures that can only be enabled by ALD. Over the past five years, we have also been growing
market leader in back-end semiconductor assembly and packaging equipment. ASMI divested
our position in the Epi market.
its majority share in ASMPT in 2013, but maintains a minority share today. ASM America was
The combination of ASMI’s continuous focus on innovation with its global entrepreneurship has led
also founded in the 1970s, laying the foundation of our current epitaxy technology. In the early
to ASMI’s unique structure, with centers of excellence close to customers around the world, and
1980s, ASM Japan was started, the basis for today’s plasma CVD products. This was followed
centralized manufacturing in Singapore.
ASMI’s technologies are focused on supporting our customers to continue extending Moore’s Law, enabling faster and more power-efficient semiconductors
1 0 0
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Strategy
Strategy
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FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
12
STRATEGY
We are an innovation leader in the semiconductor industry. This is
the result of our focus on key issues and challenges within the industry,
enabling us to make a difference to and create value for our customers,
employees, investors, and other company stakeholders.
While challenges and opportunities will change over time, we continue
to bring our breakthrough technologies into volume manufacturing.
PURPOSE
Our purpose is to improve people’s lives through advancing technologies
that unlock new potential.
ASMI is a leader in innovation for the semiconductor industry. With our technology, we help
move the industry roadmap forward, driving innovation in the electronics market and improving
people’s lives.
MISSION
Our mission is to enable our customers’ success by creating leading-edge
semiconductor process products, services, and new materials.
Our deposition technology helps our customers address their device and process-development
challenges. By partnering with leading chipmakers to develop new materials, processes, and
technologies that support their roadmaps, we drive innovation in semiconductor technology.
This helps create new, improved semiconductor devices. We have a deep understanding of the
important requirements of the next generations of device roadmaps. This enables us to develop
value-added service solutions to the industry’s critical issues.
PURPOSE
MISSION
STRATEGY
STRATEGY
Our strategy is Growth through Innovation.
Innovation is at the core of what we do at ASMI. With our global, networked R&D model, we can
collaborate closely and early with our customers, industry partners, and universities. Over the past
20 years, we have accumulated a vast amount of know-how in ALD materials and chemistries.
Coupled with decades of experience in developing reactors and processes, ASMI has a legacy of
innovation of more than half a century.
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ASMI ANNUAL REPORT 2021
13
OUR MAIN STRENGTHS
We are a focused deposition equipment player in the semiconductor wafer fab equipment
Attracting and retaining talented employees This is key to growing and strengthening
our organization. The demand for highly skilled people is increasing everywhere we operate.
(WFE) market. Our principal technologies are in ALD and Epi, and these play a critical role for our
Without the best people, we will not be able to realize our strategy.
customers in enabling the transition to new device generations. From 2016 to 2021, we grew at
a rate of one-and-a-half-times faster than the WFE market. Our target is to continue outperforming
Environmental footprint The semiconductor industry provides critical and enabling technology,
which contributes to society overall. But the industry’s environmental footprint is significant and
the market by leveraging our strong position in advanced nodes. Through revenue growth, we can
gaining more global attention. Our customers place a high priority on environmental performance
generate healthy cash flow and profitability, further increase investments in R&D, and create value
and the associated fab operational economics. It is key to their decision-making process when
for our stakeholders.
selecting manufacturing equipment. It is also a major priority of our other stakeholders.
In 2022, we plan to further strengthen our team, and global innovation and collaboration network,
We have helped shape the industry by driving innovation through our collaborative R&D models,
to increase the energy and resource efficiency of our products. This will help to improve the
successfully delivering advanced new materials, products and processes to our customers.
environmental footprint of the industry.
With R&D centers in six countries throughout the world, we are close to our customers, and have
access to world-class professionals in the semiconductor industry. This R&D capability has led to
Geopolitical risk and shift in global supply In the past, the success of the semiconductor
industry was strongly linked to the success of all parties along the value chain. Innovation by
a portfolio of leading technologies and a strong patent position, with 2,250 patents in force.
equipment suppliers supported original solutions developed by chip manufacturers. This led
EXTERNAL TRENDS
The world around us is digitalizing fast Technology is increasingly shaping how we live and
to new opportunities for customers to take advantage of these advanced chips. Geopolitical
developments put this model at risk. The increased awareness of the importance of a domestic
semiconductor industry leads to shifts in the global footprint of the semiconductor industry.
work – and much of this technology is created with advanced semiconductors. As society
We carefully review any impact such developments may have for us, while seeking to take
becomes more automated and connected, we’re relying on a broad range of electronic devices
advantage of any new opportunities they may offer.
to control our homes, offices, vehicles, and communications. Our connected world is leading to
a growing demand for massive amounts of data. This needs ever-greater computer processing
Scarce resources The increased global demand for semiconductors will fuel the need for more
scarce resources. Our obligation to responsibly source such resources will drive us to continue
power and storage, capable of analyzing and acting on the data quickly and effectively. To make
our innovations around the development of new chemistries.
this possible, the processing power of semiconductor chips must constantly increase.
ASMI’s process equipment technology is key to making this happen.
Rising complexity of chip technologies The continuation of Moore’s Law, which states that
the number of transistors on a chip doubles every two years, is becoming increasingly difficult.
The equipment costs for these advanced nodes are rising, which will place greater pressure on
equipment manufacturers to create innovative solutions. At the same time, increasing complexity
and smaller chip technology will require more ALD and Epi steps. Being at the forefront of
technology development is critical to remaining successful.
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VALUE CREATION
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FINANCIAL STATEMENTS
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GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
14
g
n
e s t r o
c i a l
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a
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ri v
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aintainin
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ory
usin
g lea
dry a
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ess by
d in
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Accelerate
sustainability
STRATEGIC
OBJECTIVES
Our strategy can be broken
down into the following six
strategic objectives
Increase
Epi market
share
Gro
w sp
& services
ares
usin
b
ess
w t h
r o
e g
d
n
F a
D n i c
h
V
s
e
e l e
S
c ti v
i n V
C
E
P
STRATEGY ENABLERS
To be able to realize our strategy and strategic
objectives, we identified five critical enablers.
These key enablers support all strategic objectives.
Best
people
Leading-
edge
innovation
Early
customer
engagements
Flawless
operational
excellence
Strong
financial
position
SIX KEY ELEMENTS OF OUR STRATEGY:
Our strategy is based on the following six strategic objectives:
GROW ALD BUSINESS BY MAINTAINING LEADERSHIP
IN LOGIC/FOUNDRY AND EXPANDING IN MEMORY
Our ALD business is a key priority. ALD will continue to grow as a core technology as our customers
transition to the next nodes. We expect the ALD market to be the fastest-growing segment in
the deposition market in coming years. We are focused on maintaining our leading position in the
logic/foundry segment, and increasing our market share in the memory segment. Supported by
a strong increase in our R&D engagements in DRAM and 3D-NAND applications for the next nodes,
we aim to meaningfully increase the contribution of our memory business over time. We estimate
that the single-wafer ALD market will grow to US$3.1-3.7 billion in 2025. Our goal is to have a
market share larger than 55% in 2025.
INCREASE EPI MARKET SHARE
Epitaxy has become a second growth engine in our product portfolio. Our Intrepid product has
enabled us to make successful inroads in the advanced CMOS part of the Epi market, while
increasing our presence in the analog/power market. In R&D, we are working with multiple
customers on new Epi applications for the next nodes, which should contribute to further
growth of our market share. We estimate the Epi market will grow from US$0.8 billion in 2020 to
US$1.5-1.8 billion in 2025. Our goal is to have a market share of more than 30% by that time.
SELECTIVE GROWTH IN VF AND PECVD NICHES
In vertical furnaces and PECVD, we want to further develop our current niche positions by
addressing targeted growth opportunities. Vertical furnace applications for the analog/power market
is an example of a niche position we have selectively been investing in.
GROW SPARES & SERVICES BUSINESS
We aim to accelerate the growth of our spares & service business through continued expansion of
our installed base, and growing our offerings to include differentiated outcome-based services. These
are in addition to our existing offering of spare parts, maintenance and support services. The focus of
the new offerings will be on creating value for our customers. An example is the development of new
surface technologies for the parts we use to improve our system performance, lower costs, and reduce
the resources required to keep our systems running. We are positioning service packages designed
to improve our customers’ entire ASMI installed base on wafer performance, and system uptime and
output. The benefit for the customer is lower operations costs.
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15
For us, it means being able to expand our service to our entire installed base, not all of which is
R&D models. We have successfully delivered advanced new materials, products, and processes
maintained by ASMI today. Through approaches like this, we are able to unlock our latent installed
to our customers. Our R&D spending is focused on developing new materials and process solutions
base as a solid business-growth driver.
ACCELERATE SUSTAINABILITY
that enable additional applications. Continuous product improvements in performance, reliability and
cost of ownership is key. We are also focused on improving the energy and resource efficiency of our
products. In addition, we are making capital investments in lab space and equipment to further expand
Our focus is to deliver long-term sustainable value creation for all our stakeholders and have a positive
our development capabilities in next-generation technologies. As well as our internal R&D efforts,
impact on the world. We aspire to be a sustainability leader in our industry, evidenced for example
we are growing and deepening our strategic cooperation with key customers, suppliers, chemical
by: our recent Net Zero by 2035 target which is among the most ambitious in our industry, being
manufacturers, and research institutes. Read more in the section ‘Innovation and products’.
consistently recognized and awarded as an industry safety leader by key customers, and by improving
our CDP Climate and Water scores. Furthermore, we will do so by continuing to address the key
EARLY CUSTOMER ENGAGEMENTS
ESG topics and opportunities that are aligned with and responsive to our stakeholder priorities.
We have strong customer relationships with the leading semiconductor manufacturers, working closely
DRIVE STRONG FINANCIAL PERFORMANCE
together in the early stages of their device roadmaps. As we have expanded and deepened our
R&D engagements with chipmakers, we have developed our understanding of the key requirements
Healthy profitability will allow us to continue investing in growth. To this end, we have formulated
of the next generation of device roadmaps. This is enabling us to develop value-added solutions to the
our profitability targets for the period 2021-2025. We strive to achieve sustainably higher gross
industry’s critical technology issues. Read more in the section ‘Customers and markets’.
margins between 46% and 50%, and an improved operating margin of 26% to 31%, generating
strong free cash flow.
FLAWLESS OPERATIONAL EXCELLENCE
While technology leadership remains crucial, operational excellence is essential to further strengthen
FIVE KEY ENABLERS FOR OUR STRATEGY
To be able to realize our strategy and strategic objectives, we identified five critical enablers.
our future position. We aim to provide our customers with dependable, leading-edge products
and services at a consistent performance level, while providing the best total cost of ownership.
All our activities are focused around these elements:
We continuously focus on further improving the effectiveness and efficiency of our organization.
BEST PEOPLE
Following our strong growth in recent years, we need to strengthen our organization and business
processes in specific areas. For example, we are stepping up our capabilities in engineering, product
Our employees are our biggest asset. We strive to create a safe, inspiring, and motivating workplace
lifecycle management (PLM), and quality. We aim to strengthen our new product introductions
where our people have the opportunity to use their talents, excel, and develop their potential as we
processes to provide our customers with additional on-site support, as the pace of technological
work together to deliver the cutting-edge technologies of tomorrow. Following the continued rapid
change continues to accelerate. Read more in the section ‘Global operations’.
expansion in our workforce, we are focusing on strengthening ASMI. This means developing our talent
pool with more long-term career progression and training. It also means strengthening and unifying
STRONG FINANCIAL POSITION
our ASMI culture. Our core values – We Care, We Innovate, We Deliver – will help us grow employee
We strive to maintain a strong balance sheet that allows us to continue investing in R&D. To this end,
engagement, and shape an inclusive and diverse culture. This will support us in attracting, retaining,
our target is to increase the minimum amount of cash on our balance sheet from €300 million to
and developing the talent we need to support ASMI’s growth. Read more in the section ‘People’.
€600 million in the period until 2025 (as announced at our Investor Day in September 2021). At the
LEADING-EDGE INNOVATION
end of 2021, we had €492 million in cash and cash equivalents. ASMI generated a healthy free cash
flow of €266 million. We intend to continue paying a sustainable dividend, and use excess cash for
The core element in our overall growth strategy is continuous innovation. This provides ASMI with
the benefit of our shareholders through share buybacks. Read more in the section ‘Shareholders’.
a leading technological competitive advantage. With R&D centers in six countries, we have helped
shape today’s leading-edge semiconductor products by driving innovation through our collaborative
Key performance
Key performance
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VALUE CREATION
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ASMI ANNUAL REPORT 2021
16
KEY PERFORMANCE
FINANCIALS
Bookings*
€ million
2,196
1,314
1,170
942
774
2,500
2,000
1,500
1,000
500
Revenue*
€ million
2,000
1,500
1,000
500
737
818
1,730
1,328
1,125
REVENUE
In € million
1,730
+30%
Gross margin*
in %
41.5
40.9
42.6
47.0
47.9
50
40
30
20
10
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Operating result*
€ million
Free cash flow*,**,***
€ million
Cash returned to shareholders
€ million
491
327
219
500
400
300
200
100
113
124
300
250
200
150
100
50
251
266
120
75
60
750
600
450
300
150
607
281
199
165
237
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
* Excluding proceeds from patent litigation and arbitration settlement in 2019.
** Excluding proceeds from the sale of ASMPT shares in 2017.
*** The free cash flow previously reported is adjusted to reflect the definition of the free cash flow. For more information, see Glossary and definitions.
The years 2017-2018 are revised for comparability purposes to reflect accounting of leases under IFRS 16, effective as of January 1, 2019.
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VALUE CREATION
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ASMI ANNUAL REPORT 2021
17
KEY PERFORMANCE
PEOPLE
Employees
People in R&D
3,312
2,583
2,181
2,337
1,900
612
613
649
544
497
800
600
400
200
3,500
3,000
2,500
2,000
1,500
1,000
500
EMPLOYEES
3,312
+28%
New hires
1,500
1,000
659
487
500
515
407
1,146
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Diversity
Voluntary attrition in %
Global injury and recordable rates
40
29
29
29
50
40
30
20
10
47
100
80
60
40
20
15
10
5
15%
2017
15%
2018
15%
2019
15%
2020
15%
2021
Number of nationalities
Female employees as % of total employees
10
10
9
8
11
0.75
0.50
0.25
0.62
0.55
0.42
0.26
0.18
0.17
0.58
0.23
0.50
0.26
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Recordable injury rate
Injury rate
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VALUE CREATION
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18
KEY PERFORMANCE
PLANET
ELECTRICITY FROM RENEWABLE SOURCES
in %
75.6
+66%
Greenhouse gas (GHG) emissions*
Water withdrawals
Landfill diversion rate (in %)
(Scope 1 and 2 emissions and normalized per R&D investment)
(Absolute and normalized per R&D investment)
Primary manufacturing and engineering sites
300
250
200
150
100
50
181
158
196
156
240
250
159
145
300
250
200
150
100
50
83
41
200
160
120
80
40
0
178
1,559
129
1,031
156
123
121
813
707
758
2,000
1,600
1,200
800
400
0
100
80
60
40
20
0
79
78
82
84
82
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Greenhouse gas emissions (mtCO2e - Scope 1 + 2, x100)
Absolute water consumption (m3, x1,000)
Intensity of mtCO2e/million € R&D spend
Intensity of m3/million € R&D investment
Electricity from renewable sources (in %)
Water from stressed regions (in %)
Landfill diversion (in metric tons)
Primary manufacturing and engineering sites
WRI water stress high and extremely high rankings
(All product packaging reuse - ASMI, Customer)
80
60
40
20
11
11
9
10
76
100
80
60
40
20
0
81
73
53
50
48
259
163
139
92
95
300
250
200
150
100
50
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
* 2021 Scope 2 emissions presented are based on the market-based method.
Value creation
ABOUT
VALUE CREATION
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FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
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ASMI ANNUAL REPORT 2021
19
VALUE CREATION
Long-term value creation
Customers and markets
Innovation and products
People
Global operations
Sustainability
Shareholders
Interview with the CFO
20
23
26
39
52
57
74
86
Our purpose is to improve people’s
lives through advancing technologies
that unlock new potential. Our focus
is on long-term sustainable value
creation for all our stakeholders.
We focus on value creation for our customers, by
continuously improving our products to support
their technology roadmaps, increase productivity,
and lower operating costs per wafer. Our people
are our key asset. Our role is to create an
inclusive workplace and culture that allows
everyone to grow, thrive, and develop a fulfilling
long-term career. We are committed to creating
long-term shareholder value. ASMI’s growth
and innovation have driven investment in
manufacturing, supply chain, and key talent to
keep up with, and stay ahead of, technology
and market demands. We do all of this with
innovation and sustainability top of mind.
Sustainability is an integral part of our Growth
through Innovation strategy. In 2021, we defined
our sustainability focus and priorities for the next
horizon: the years 2021 to 2025 and beyond.
Long-term value creation
Long-term value creation
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VALUE CREATION
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20
LONG-TERM VALUE CREATION
We create value through our technologies by enabling leading semiconductor manufacturers
to deliver the world of tomorrow through our innovative processing solutions, equipment,
and services. The process solutions delivered on our equipment enable a range of chip
technologies, such as more powerful microprocessors and higher density memory devices,
all operating at lower power. The advancements of new semiconductor technologies benefit
our society and improve people’s lives.
GREATER PERFORMANCE, REDUCED ENERGY CONSUMPTION
Our advanced deposition technologies support cost-effective products that enable the electronic
devices of today and of the future – devices that deliver ever-greater performance while using less
empower global consumers: they have extensive computing power in the palm of their hand that
increasingly drives their daily activities.
energy. The industry’s relentless push to follow Moore’s Law, and complex new device architectures,
leads to the continuous demand for smaller, faster, and cheaper semiconductor components. The
OUR BUSINESS MODEL
We strive to create value for the company and all of our stakeholders. Our technology enables the
technologies required to achieve these advancements depend heavily on equipment such as ASMI’s
precision deposition of thin films in various steps in the fabrication of semiconductor chips. This
process tools. Furthermore many advanced processes require developing new materials. Innovation
helps our customers build the most advanced chips used in electronics systems throughout society.
is the growth engine that drives our R&D programs to develop the equipment and processes that
To achieve this, we are working with our customers to develop innovative solutions, while constantly
our customers’ roadmaps require. For example, ASMI’s ALD and Epi tools are critical to creating
looking at what is best for our investors, employees, society, and other stakeholders. Our products
high-performance transistors that can operate at lower power levels. This is a key enabler for
and process solutions benefit society by helping to enable a wide range of advanced logic and
products such as smartphones, Internet-of-Things (IoT) devices, which have substantial functionality
memory chips used in most of the world’s electronic systems. Fundamental to our model is R&D
in a small form factor with good battery life. More powerful and energy-efficient processors and
investment, including basic chemical, materials, and feasibility research, followed by process and
memory chips also enable new end-market applications such as artificial intelligence, which in turn
product developments. One of our strengths is more than two decades of accumulated know-how
can contribute to advances in healthcare, education, and many other industries.
in ALD materials and chemistries.
This value creation benefits all our stakeholders. Our people are our key asset, our role is to create
We aim to continuously recruit world-class technologists in the semiconductor process and
an inclusive workplace and culture. Thanks to our leading position in advanced deposition solutions,
equipment technology fields. We cooperate with research institutes and our customers to
our employees can enjoy the challenge of developing cutting-edge solutions. Our suppliers, in
understand the technology roadmap challenges, and to develop the appropriate process and
addition to a higher activity level, benefit from improved quality and efficiencies resulting from
equipment solutions required. Our manufacturing facilities allow us to deliver high-quality systems
our supplier process control program. Consumers benefit from the enhanced functionality and
on schedule so our customers can ramp their fabrication plants. We support our customers globally
added value provided by the new electronic products enabled by advanced semiconductors.
with process and equipment services, and spare parts. We are increasing our focus on integrating
A great example of this is the widespread use of smartphones. Continuous advancements in chips
sustainability and circularity in our product lifecycle in the areas of innovation, design, system
operation, refurbishment, and services.
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ASMI ANNUAL REPORT 2021
21
HOW WE CREATE VALUE: GROWTH THROUGH INNOVATION
RESOURCE INPUTS
FINANCIAL
Strong financial position
€492 million cash position
MANUFACTURING & SUPPLY CHAIN
Cost of sales €902 million
Steep ramp of our new manufacturing facility
Suppliers in more than 20 countries
INNOVATION
Gross R&D spending of €206 million
More than two decades of know-how
in ALD materials
PEOPLE
3,312 talented and skilled employees
47 different nationalities
COLLABORATION
Partnerships with universities/imec
Strategic relationships with universities/imec
PURPOSE
Improve people’s lives through advancing technologies
that unlock new potential
MISSION
Enable our customers’ success by creating
leading-edge semiconductor process
products, services, and new materials
l i v e s
ASMI in
n
g
v i n
Im pr o
pe o p l e ’ s
o
f
o
u
r
d
i
g
i
t
a
l
s
o
i
z
c
a
t
D
r
i
v
i
n
g
i
i
e
o
t
y
n
o
v
a
t
i
o
n
e
g
d
e
g-
s
l
o
o
s
t
e
n
gi
d e p ositio
L e adin
olo
& techn
E
c
nabling
ustomers’
ext-gen dev i c e s
n
STRATEGIC OBJECTIVES
Maintain leadership in ALD market
Grow share in Epi market
VALUE OUTPUTS
IMPACT
FINANCIAL
30% increase in revenue
€266 million free cash flow
Driving long-term value
for all stakeholders
MANUFACTURING & SUPPLY CHAIN
Delivering on customer requirements
with record shipments in 2021 despite
supply chain constraints
Creating growth opportunities for our
suppliers and encouraging them to
follow best practices in sustainability
Continued investment in
state-of-the-art infrastructure
INNOVATION
Strong pipeline of new applications
for 2nm and beyond
2,250 patents in force
Our advanced deposition
technologies enable next-gen
semiconductors, driving the
digitalization of our society
PEOPLE
1,146 new hires
11.1% voluntary attrition rate
Creating an inspiring, diverse, and
safe workplace where our people
can excel, pursue a career, and
develop themselves
COLLABORATION
New partnership with IBM
Several new JDPs* for next
technology nodes
By working together with
customers and partners
we contribute to continued
innovation in our industry
NATURAL
54,998 MWh, 76% from electricity from
renewable sources, and 156k cubic meters
water used
Selective growth in PECVD & vertical furnace niches
Grow spares & services through outcome-based offering
Drive continued strong financial performance
Accelerate sustainability in key focus areas:
Innovation, People, Planet, Responsible supply chain, Governance
NATURAL
Transitioned most key sites to electricity
from renewable sources in 2021
59% improvement landfill diversion
(all sources)
* Joint development programs
Net Zero emissions by 2035
Reducing our environmental
footprint
Numbers refer to 2021 unless indicated otherwise.
ASMI’s enterprise value creation and reporting models are informed by the Value Reporting Foundation’s integrated reporting framework and SASB Semiconductor Accounting Standard.
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22
HOW WE ENHANCE SUSTAINABILITY
Our focus is on long-term sustainable value creation for all our stakeholders. Sustainability is an
integral part of our Growth through Innovation strategy. In 2021, we defined our sustainability focus
and priorities for the next horizon – the years 2021 to 2025, and beyond. These are: innovation,
people, planet, responsible supply chain, and sustainability governance. We’ve identified priorities
for each area, and address these in detail later in the report. Below is an overview of our five
sustainability focus areas.
INNOVATION
RESPONSIBLE SUPPLY CHAIN
Product sustainability
Improving the energy and resource efficiency of our products
Product safety
Improving the safety of our products and our customer’s operations
PEOPLE
Safety
Making a positive impact on the safety of our industry
Our team
Unleashing everyone’s potential at ASMI
Community, industry, society impact
Positively impacting our communities, industry, and the world around us
PLANET
Net Zero
Achieving our Net Zero 2035 target
Climate adaptation
Addressing climate change risks and opportunities
Safety
Ensuring safety throughout our supply chain
Net Zero
Collaborating to address our carbon footprint
Product sustainability
Improving ASMI product sustainability
Human rights
Ensuring the ethical treatment of people throughout our supply chain
SUSTAINABILITY GOVERNANCE
Cybersecurity and IP protection
Assuring robust cybersecurity and IP protection
Disclosures
Providing transparency, integrity, and assurance
Customers and markets
Customers and markets
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CUSTOMERS AND MARKETS
Wafer fab equipment (WFE) grew significantly in 2021, driven by customer demand across logic/foundry
and memory leading-edge nodes. There was also solid growth in segments such as analog and power,
due mostly to the Internet of Things (IoT), autonomous driving, and 5G connectivity. The service and
support of this equipment is also driving customized, outcome-based solutions. As the industry
approaches US$100 billion in WFE, and the market for leading-edge solutions continues to grow,
ASMI’s strong track record of innovation in materials, hardware, and process continues to support our
customers. We enable their roadmaps, which are focused on technology acceleration, manufacturing
efficiency, cost optimization, and sustainability.
MARKETS
With the ever-increasing digitalization of global economies, advanced semiconductors are playing
Within wafer processing equipment, the major segments include lithography, etch & clean,
deposition, and process diagnostics. Our focus is on deposition equipment, which comprises
a key role in creating this more connected world. As a result, new end-market products and
about 20-25% of WFE. Within deposition, ALD and Epi are fast-growing market segments.
applications are being developed, including:
Edge and cloud computing, and big data analysis;
Artificial intelligence;
5G smartphones;
Autonomous and electric vehicles;
IoT for smart connected devices; and
Ultrafast wideband 5G communication networks.
The single-wafer ALD market is expected to grow from ~US$1.5 billion in 2020 (ASMI estimate) to
around US$3.1 - $3.7 billion in 2025 (ASMI estimates). The Epi market is expected to grow from
~US$0.8 billion in 2020 (VLSI Research April 2021) to about ~US$1.5 - US$1.8 billion in 2025
(ASMI estimates). Based on these estimates, the ALD and Epi markets are expected to outgrow
the total WFE market.
Looking ahead, market researchers are predicting the semiconductor market will almost double,
to reach at least US$1 trillion by 2030. This is driven by the digital transformation megatrends,
In 2021, the semiconductor industry was driven by a US$2.5 trillion global electronics industry
which ultimately will also grow the WFE market.
(VLSI Research, December 2021) that required around US$578 billion of semiconductors, up 24%
compared to 2020. The increased need for semiconductors was driven by growing demand for data
Wafer fab equipment in %
processing in the work-from-home economy, and by higher prices in memory devices, as supply
and demand of the memory market began to balance out.
In turn, the semiconductor industry supported the around US$125 billion semiconductor capital
equipment industry, which supplies the required production systems and services. WFE spending
was up about 38% in 2021. It reached US$88 billion (VLSI Research, January 2022), due to
increased spending for advanced logic and foundry, as leading customers stepped up spending on
the most advanced nodes.
10
12
24
24
30
Lithography
Etch & clean
Deposition
Process diagnostics
Other wafer processes
Source: Gartner, December 2021
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The constant drive for smaller, more powerful, and more energy-efficient devices puts further
pressure on our industry at each new technology node. Moving to new nodes is increasingly difficult,
OTHER MARKETS
There are other smaller yet still important market segments for which ASMI supplies equipment,
with challenges in new materials and device architectures, and complex process steps, which are
such as analog and power. Analog and power semiconductors are devices used in a wide range
also driving more ALD and Epi applications. With each new technology node, the challenge grows
of electronic systems for mobile products, vehicles, telecommunications, and other applications.
to reduce the environmental footprint of the manufacturing equipment, and processes used to make
Wafer manufacturing is another relatively small segment we participate in. This is for the processing
these chips.
of bare silicon wafers before they are delivered to semiconductor fabs.
Consequently, we see that each new technology node requires increasing investment in process
equipment. Given that the semiconductor production market is so capital intensive, only a limited
CUSTOMERS
The goal of customers is to build faster, cheaper, and increasingly more powerful semiconductors
number of companies are able to participate. This means our customer base has become more
for each new technology node. We work closely with our customers to make this a reality,
concentrated over time. It is only recently that we have seen some new customers from China
forging mutually beneficial partnerships to help develop their technology roadmap. Through our
enter the semiconductor space, albeit not yet in the most advanced nodes. Our customers are
intensive R&D programs and customer co-development, we continuously improve and extend the
increasingly dependent on the R&D investments and performance of their equipment suppliers.
capability of our products and processes to meet these advanced technology roadmaps, increase
Accordingly, we maintain a close, mutually beneficial business relationship with our customers.
productivity, and lower operating costs per wafer. The result is value creation for our customers.
This includes a cooperative development environment, linking technology roadmaps and
equipment-performance requirements.
While doing so, we work on the edge of what is technologically possible. This creates a very
attractive professional and learning environment for our employees, and generates long-term value
While the market has evolved to a smaller number of large semiconductor manufacturers, it is
for all our stakeholders. We serve society by helping our customers produce the chips needed for
still highly global with major fabs, which we support, throughout the United States, Asia and
the advanced electronics that deliver a world of improvements and opportunities.
Europe. Notably, the China region has become a significant growth area for new fab investments.
This includes both domestic Chinese companies and foreign companies building fabs there for the
We are engaged with, responsive, and committed to addressing the collectively broad range of
local market. To better serve this growing market, we are continuing to increase our investment in
our customer’s sustainability expectations, which include detailed inquiries and periodic audits.
people and support infrastructure in China.
We collaborate with our customers on sustainability topics wherever possible, to expand our
LOGIC, FOUNDRY AND MEMORY MARKETS
The semiconductor market can be split into three primary segments: logic, foundry and memory.
ASMI supplies equipment to the leading semiconductor manufacturers in all of these segments.
2021 CUSTOMER ACCOMPLISHMENTS
ASMI is committed to providing its customers with the best products and services. We work closely
The logic market is made up of manufacturers creating chips, such as microprocessors, that
with our customers to make sure our products meet their roadmap requirements. Our service teams
are used to process data, and are used in smartphones, laptops, and computers;
are on hand at their global fabs to deliver ongoing support for equipment and processes.
The foundry market consists of businesses that operate semiconductor fabs to manufacture
the designs of other so-called fabless semiconductor companies; and
Throughout 2021, we were recognized by several key customers for equipment performance
contributions and impact.
The memory market covers manufacturers that make chips that store information – either
temporarily, such as Dynamic Random Access Memory (DRAM), or permanently, such as
and support.
NAND non-volatile memory.
In January, a customer in China recognized ASMI with a Best Supplier award. In April, another
customer in China presented us with its Excellent Support Award.
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Growth through innovation
COLLABORATING WITH OUR CUSTOMERS
“ WE SUPPORT OUR CUSTOMERS’ ROADMAPS FROM
THE EARLY STAGES, UP TO 10 YEARS IN THE FUTURE.”
ASMI’s R&D teams are driving innovation by collaborating with our customers and
In Q1, we were recognized by a top customer in Taiwan for Safety Leadership, and by the
Taiwan government’s Industrial Safety and Health Association for zero recordable accident hours.
In January, a large multinational customer presented ASMI with its 2020 Excellent Supplier
Award for activities at its fab in China. In Q3, another multinational customer in China gave us
its Sustaining Excellence award.
In March, Intel recognized ASMI with a Preferred Quality Supplier (PQS) Award, and Distinguished
Performance in Safety for 2020.
In November, a large customer in South Korea presented ASMI with its 2021 Best Collaboration
Award.
In December, ASMI was awarded the Excellent Performance Award from TSMC for Excellent
Production Support.
In 2021, our service team was honored with the Top Supplier Award in Safety from a leading
memory customer in Taiwan for their annual safety performance. It was the second year in a row
that ASMI received this award. This underlines how we value safety, both among our teams and
in our workings with customers to improve our shared safety.
aligning our developments with their roadmaps. A critical component of our success
In 2020, a key customer invited ASMI to join its highly select Sustainability Leaders program.
is close and early collaboration with global research institutions, such as imec,
Our 2021 accomplishments exceeded their expectations, positioning ASMI as a sustainability
key universities, suppliers and leading customers.
leader in our industry.
Through our advanced R&D organizations in Helsinki, Finland, and Leuven, Belgium,
we initially work with R&D partners and customers on new process and materials
LOOKING FORWARD
Strong digitalization trends are driving significant growth in the semiconductor and WFE markets.
technology that is about four to eight years away from expected manufacturing.
ASMI is preparing to support its customers and grow its business in that environment. ASMI is
In our key product units, we work with customers on technology that is about two
the leader in ALD and is expanding in Epi. These technologies are expected to outgrow the WFE
to six years away from volume manufacturing on their roadmaps.
market, driven by key inflections such as GAA transistors. Strategic objectives include: maintaining
High-k metal gate technology was first developed for logic/foundry and, more recently,
spares & services. Strengths in innovation, early customer engagement, and product differentiation
is being used in DRAM memory devices. ALD patterning applications were initially
enable advanced, cost-effective solutions for our customers.
leadership in logic/foundry, expanding in memory, gaining share in the Epi market, and growing
developed for spacer-defined double patterning (SDDP) in memory, and subsequently
for logic/foundry. ALD gap-fill processes were initially focused on 3D-NAND, and are
now also targeted at a wide range of applications across all device types.
Innovation and products
Innovation and products
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INNOVATION AND PRODUCTS
We continually improve our products through innovation, the growth engine of ASMI. Our products and
innovations are crucial to advancing our customers’ technology roadmaps, and enabling the industry
to advance to the next technology node. ASMI’s ALD, Epi, PECVD and vertical furnace systems are
important growth areas, and we focus a large part of our R&D investments on these technologies.
Our innovations and product stewardship are geared to making our tools more productive and efficient.
Also, to enhance their safety and energy efficiency, so reducing their environmental impact.
GLOBAL RESEARCH
The industry’s relentless push to follow Moore’s Law, and complex new device architectures,
A global platform engineering group addresses the need for common platforms and software for the
various products in our product portfolio, and across different key-product units. This helps us drive
leads to the continuous demand for smaller, faster, and cheaper semiconductor components.
standardization of hardware and software throughout the organization.
The technologies required to achieve these advancements depend heavily on equipment such as
ASMI’s process tools. Furthermore, many advanced processes require developing new materials.
We collaborate globally with R&D partners, suppliers, and customers. Our R&D portfolio, and
Innovation is the growth engine that drives our R&D programs to develop the equipment and
technology and product roadmaps, are aligned with our customers, and mutually, with a defined
processes our customers’ roadmaps require.
controlled process. We perform quarterly reviews of our R&D programs and portfolio to make sure
they align with our strategy and short-term industry needs. We also perform annual roadmap and
ASMI has a globally decentralized R&D and engineering organization, with a corporate R&D group.
technology reviews to match up with the long-term needs of the industry.
Resources are located mainly in Helsinki, Finland, and Leuven, Belgium, with additional resources
in our product-development sites in the Netherlands (Almere), the US (Phoenix), Japan (Tama)
An important aspect of our operating model is to engage with customers early in the R&D process.
and South Korea (Dongtan). The R&D effort is centrally managed from our headquarters in the
This means we are better able to align our roadmap and R&D portfolio with that of our customers.
Netherlands.
It also means we can down-select candidate materials and processes more effectively. Through our
advanced R&D organizations in Helsinki and Leuven, we work with customers on the technology
The corporate R&D group addresses common needs for advanced process and materials
that is expected to be used in manufacturing in about four to eight years time. In our key product
development. It also looks at process integration work for the advanced nodes that are four to
units, we work with customers on the technology that is closer to being used in manufacturing, in
eight years away from initial semiconductor production at our customers.
less than six years time.
The product-development sites are centers of excellence for a subset of products and technology.
For example, the site in the Netherlands is focused on vertical furnaces. In Phoenix, it’s on Epi and
thermal ALD. In Dongtan, it’s on PEALD, and in Tama, it’s on PECVD and PEALD, in collaboration
with Dongtan.
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2021 R&D ACHIEVEMENTS
In 2021, we significantly increased our capital investment related to R&D activities, and grew the
Driving innovations
ASMI in the value chain
number of R&D employees from 613 to 649. These investments included demo, R&D, and metrology
tools. To accommodate our strong performance in the ALD growth market, we expanded our Tama
R&D facility, and are planning to grow our Dongtan Korea R&D footprint. We also have an expansion
plan for our Helsinki R&D facilities, to increase our capability in materials development. To support
our strong increases in the ALD and Epi growth markets, we invested significantly in modernizing the
equipment base in our Phoenix R&D facility, including investments in the advanced metrology tools
we use in our labs.
Our global R&D network is well suited to initiate and coordinate collaborations globally, and manage
them centrally. Accordingly, as an integral part of our roadmap-driven R&D efforts, we have expanded
our external R&D engagements with new collaborators.
In 2021, we continued our strategic partnership – that was renewed for the third time in 2017 – with
the Interuniversity Microelectronics Center (imec) in Leuven, Belgium, the world-leading R&D institute
in our industry. We have now renewed this for the fourth time, extending through to 2025. We intend
to significantly expand the scope of this collaboration, equivalent to roughly doubling R&D spend over
the next four years. The statement of work includes many of our state-of-the-art 300mm products.
It also includes work aimed at disruptive inflections in our industry that may materialize beyond
2026. The imec collaboration gives us the opportunity to investigate, both jointly and independently,
the integration of individual process steps and new materials in electrically active devices. We have
partnered with imec since 1990, with significant on-site representation since 1994.
In February 2022, we signed a new five year agreement with the University of Helsinki to form and
fund the Atomic Layer Deposition Center of Excellence (ALD CoE). This is a significant expansion of
the nearly two-decade collaboration with the University that first started in 2004. The ALD CoE will
focus on research around ALD that is necessary for future semiconductor technologies. The ultimate
aim is the design of new precursors, processes and materials that will have great scientific and
technical impact. We are co-located with the university, allowing for a close collaboration on creating
new ALD chemistries and developing new materials deposited by ALD. The intended timeline to bring
most of these targeted innovations into production is towards the end of our horizon of 2028, and
beyond.
We engaged in a new three-year contract with the Semiconductor Research Corporation in their
nanostructured materials program (NMP). We expect this collaboration will expand our connection
RESEARCH
institutEs
& UNIVERSITIES
CHIP
MANUFACTURERS
ASMI TECHNOLOGY
AND PRODUCTS
ADVANCED
IC CHIPS
COMPUTING
SMART CARS
INTERNET OF THINGS
ARTIFICIAL INTELLIGENCE
DATA CENTERs
5G MOBILE
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with academia, mainly in the United States, but some other countries too. Also in 2021, we engaged
technologies with selected customers. The scope of these JDPs span many nodes – from the 5nm
in a three-year program with IBM in their Albany SUNY research center. This will enable us to test
node currently in production, to well beyond the 2nm node for foundry, and the equivalent DRAM
our Epi and ALD materials in GAA devices.
and 3D-NAND technology nodes.
Through our network, we collaborate with universities in several countries on a bilateral basis,
including, among others, academic institutions in the Netherlands, Belgium, Finland, the
PATENTS, TRADEMARKS, & IP SECURITY
New deposition technologies and chemistries continue to be a major driver for new intellectual
United States, Canada, Japan and South Korea.
property (IP) for ASMI. Patents give us the right to protect our innovative processes, products,
services, or aspects thereof, so enabling us to speak more openly about our innovations and
We contribute to several process and equipment development projects at the major Dutch technical
share ideas in the marketplace that benefit our customers. At the same time, failure to adequately
universities through the Dutch NWO* funding organization in the domain TTW** (covering applied
protect our IP and/or leakage of our IP, trade secrets, or confidential information, could result in
and engineering sciences). And in Belgium, we participate in the industrial users group for several
the loss of our competitive advantage, and adversely impact our customers and suppliers, or our
projects supported by the Flemish funding organization VLAIO***.
financial performance.
We applied for membership of the European Industrial Alliance for Processors and Semiconductor
Our vision is to increase our value to our customers, suppliers, employees, and shareholders by
Technologies. Its two main objectives are to reinforce the European electronics design ecosystem,
using our IP in a way that differentiates our products, influences the market, and provides additional
and establish the necessary manufacturing capacity along a twin track towards 16nm to 10nm, and
monetization opportunities. We generally file patents in the principal countries where semiconductor
below 5nm to 2nm, and beyond. We are discussing partnerships in projects related to the Important
devices or equipment are manufactured and/or sold.
Project of Common European Interest (IPCEI) on Microelectronics and Communications Technology.
We participate in select publicly funded programs to research and develop ‘More than Moore’
ensure freedom to market, and a competitive advantage as a shareholder asset. Recent research
technologies. This is a strongly growing market of various types of analog chips that are not driven
by LexisNexis® PatentSight® shows that ASMI was listed among the top 20 patent owners in the
by the same Moore’s Law technology scaling inflections of mainstream logic and memory chips.
technology field of semiconductor manufacturing, and that ASMI leads the Patent Asset Index™
We are also a member of the Association for European NanoElectronics Activities (AENEAS), and
in ALD****. On an annual basis, we review our portfolio to optimize its strength, while limiting the
participate in roadmap activities.
increase in maintenance costs associated with an expanding portfolio. As of December 31, 2021,
We strategically develop our IP portfolio via strong interaction with the ASMI technical community to
we had 2,250 patents in force worldwide protecting our various products.
We occasionally cooperate with other semiconductor capital equipment suppliers in complementary
fields. Our aim is to gain knowledge of the performance of our own deposition processes, in
Patents in force
cooperation with other processes, either in bilateral or consortia projects.
In 2021, we were engaged in several formal joint-development programs (JDPs) with customers
for 300mm applications of our products. We were also active in evaluations of our most advanced
* De Nederlandse Organisatie voor Wetenschappelijk Onderzoek (“Dutch Organization for Scientific Research”)
** Domein Toegepaste en Technische Wetenschappen (“Domain for Technical and Applied Sciences”)
*** Vlaams Agentschap Innoveren & Ondernemen (“Flemish Agency for Innovation and Entrepreneurship”)
1,959
2,094
2,250
1,604
1,692
2,500
2,000
1,500
1,000
500
**** www.patentsight.com/en/ip-analytics-blog/atomic-layer-deposition-thin-layers-are-a-big-thing
2017
2018
2019
2020
2021
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We have registered a number of trademarks covering our product portfolio in the principal countries
As a baseline, we protect ASMI, customer, supplier, and partner confidential information by training
where we do business (as of December 31, 2021):
all employees on the importance of intellectual asset protection, as well as how to recognize and
ASMI, the ASMI logo, Advance, Aurora, Dragon, Eagle, EmerALD, Epsilon, Intrepid, Previum,
report possible violations. This training is provided to all new hires and employees are given regular
Pulsar, Silcore, XP, XP8 and Synergis are our registered trademarks.
refresher training. We have also implemented an information rights management (IRM) system to
The ASM Qualified Licensed Supplier logo, AEGIS, A400, A412, ES, and ESA are our trademarks.
Drive Innovation, Deliver Excellence is our service mark.
further structurally improve protection. We anticipate additional systems and processes will be
utilized to further enhance our IP and confidential information protection program.
IP and confidential information security and cybersecurity are fundamental aspects of our business.
In addition to implementing IRM, we have focused on strengthening our cybersecurity posture in a
Responsibility for intellectual asset security is assigned to the Senior Director, IP and Licensing,
number of ways: Shortening patching intervals, securing endpoints with best-in-class anti-malware
and responsibility for cybersecurity is assigned to the CIO. These leaders work closely together
technology, increasing resilience against phishing campaigns, and implementing tools that enable
to ensure full coverage of these important matters and areas of overlap. We took further steps
continuous threat detection and monitoring of our most commonly used IT systems and operational
in 2021, completing a business-wide intellectual asset security and cybersecurity assessment
technology devices. This increased proactive approach towards cyber defense helps limit and
with the combined engagement of a recognized expert third party, our Internal Audit function,
contain impacts from a potential cybersecurity incident. It also builds our readiness to respond to
and our key business area leaders. This assessment, its findings, and the resulting improvement
potential risks introduced from new and existing vulnerabilities.
roadmap and progress is reviewed with the Management Board, and the Audit Committee of
the Supervisory Board.
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OUR PRODUCTS
Our products include wafer processing deposition systems for ALD, Epi, PECVD and vertical
structures vital to the future of electronics. 3D technology provides several benefits. This includes
saving space while delivering chips with higher performance that consume less power. Many new
furnaces. We continuously drive innovation of our products and services to address the
applications are emerging where ALD is the technology of choice, and in some cases it is the only
technology needs of our customers, and the industry’s focus on reducing costs and improving the
solution able to meet the challenging technology requirements. For example, ALD high-k gates are
environmental footprint. Our development programs are aimed at increasing throughput, equipment
now in production for high-performance DRAM devices. We are seeing customers requiring more
reliability and yield in our customers’ manufacturing line, and lowering the energy and resource
ALD applications for each new technology node.
intensity and cost of ownership. This benefits our customers through reduced operating costs, as
many of our products use the same parts and consumables, while a common control architecture
In PEALD, plasma is used to provide the reaction energy for the process, enabling us to use lower
improves ease of use.
ALD
ASMI is the leader in the fast-growing single-wafer ALD market – with an estimated market share of
temperatures for low-thermal budget applications. This technology was introduced in DRAM and
planar NAND flash manufacturing for spacer-defined double patterning (SDDP). This technique can
reduce device dimensions, postponing the need for new lithography technologies.
about 55% in 2020, as presented at the Investor Day in September 2021. Using ALD technology,
ASMI has the broadest portfolio of ALD products. On our XP platform, we offer Pulsar and EmerALD
we can scale devices to smaller dimensions while reducing the power consumption of transistors.
single-chamber ALD process modules for high-k dielectric and metal gate films respectively. The
This helps the industry follow Moore’s Law, and create smaller, more powerful semiconductors.
Synergis ALD tool uses the XP8 platform, and leverages the core technologies from our Pulsar and
ALD allows us to deposit thin films atom-by-atom on silicon wafers. This means we can deliver
EmerALD ALD products for high-productivity thermal ALD applications. Synergis is available for a
atomic-scale thickness control, high-quality deposition film properties, and large area uniformity.
range of films, including high-k metal oxides, metal nitrides and metals.
Such precision allows us to use materials that could previously not be considered, and develop 3D
OUR PLATFORMS
We make two types of process tools: single-wafer and batch. Most of our business comes from
processing or integration of sequential process steps on one platform. Our XP8 platform
single-wafer tools, designed to process an individual wafer in each processing chamber on
follows the basic architectural standards of the XP, but provides even higher productivity with
the tool. In contrast, our vertical furnaces are batch tools, designed in such a way that a large
up to 16 chambers integrated on a single-wafer platform with a relatively small footprint. The
number of wafers are processed at the same time, in a larger processing chamber, to achieve
XP8 platform can be configured with four dual chamber modules (DCM), enabling up to eight
a higher throughput. Single-wafer tools typically achieve a higher level of process performance
integrated chambers, or with four quad chamber modules (QCM) for up to 16 integrated
and control, especially for complex, critical applications, and a shorter cycle time. In recent
chambers on the same platform.
years, we have developed single-wafer tools with multiple chambers configured together in a
XP8 DCM
XP8 DCM
XP8 QCM
XP8 QCM
compact way on a single platform. This approach offers the best of both worlds, combining
high productivity and short cycle times, and a high level of performance.
Our single wafer tools are designed for use on a common platform architecture. The XP
platform is a high-productivity, common 300mm single-wafer platform that can be configured
with up to four process modules. The XP platform enables high-volume multi-chamber parallel
XP8 DCM
XP8 QCM
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Growth through innovation
GATE ALL AROUND (GAA) for logic/foundry advanced-node transistors
Impression of
GAA transistor
“ OUR R&D TEAM IS SHAPING THE FUTURE
OF TECHNOLOGY.”
Also on the XP8 common platform architecture, we offer PEALD processes for a wide range of
applications. The Eagle XP8 uses DCM module configurations for high-productivity silicon oxides,
metal oxides and nitrides. Our XP8 QCM tool offers PEALD processing on quad chamber modules
for very high productivity. A wide range of silicon oxide and silicon nitride process applications are
available with the QCM tool. Our XP8 QCM tool excels in the 3D-NAND high aspect ratio dielectric
gap-fill application. This is where silicon oxide films are deposited void-free in deep trenches that are
up to 100 times deeper than their width.
EPITAXY
Epitaxy (Epi) is a critical process technology for creating advanced transistors and memories.
The Epi process is used for depositing precisely controlled crystalline silicon-based layers, important
for the electrical properties of a semiconductor device. In some cases, the epitaxy films incorporate
dopant atoms to achieve specific material properties. ASMI’s estimated share of the Epi market was
about 15% in 2020, as communicated during the Investor Day.
Our most advanced Epi tool is the Intrepid ES for CMOS transistor applications, using our XP
platform to configure up to four Intrepid reactors on the same tool. Temperature control is extremely
important in Epi reactors. We have developed new methods of temperature control in our Intrepid
ES Epi tool that enable improved film performance and repeatability in volume production. Intrepid’s
ASMI’s ALD and Epi innovations are helping to enable critical new technology inflections
closed-loop reactor temperature control also allows for enhanced stability in production. In 2021,
such as GAA for logic/foundry advanced-node transistors. ALD and Epi processes will play
we further improved the Intrepid temperature control performance with Verace-CL. We gained an
a crucial role in the device architecture migration from FinFET to GAA transistors. Here, the
additional key customer win in 2021 for advanced node CMOS transistor applications.
ALD high-k gate material surrounds the epi channel material on all four sides to improve
electrical performance. Compared to FinFET, where the gate surrounds the channel on
For enhanced Epi film performance, we introduced a pre-deposition wafer surface clean technology.
three sides only, the GAA will also consume less power per operation.
This is performed in our new Previum process module, integrated with Intrepid epitaxy process
To fabricate the GAA device, the channel is formed by depositing a stack of multiple
silicon surface for defect-free epitaxy film deposition. This is critical for achieving the most advanced
modules. The surface clean process is used prior to the epitaxy deposition to create a pristine
alternating Epi silicon and silicon germanium layers. ALD is used for depositing the
node transistor-performance requirements.
high-k metal gate layers conformally around those channel structures. While a FinFET
device extends the gate area vertically for improved transistor switching control, the GAA
In 2021, we strengthened our Epi product offerings with the launch of the Intrepid ESA tool for
architecture extends that control area further by wrapping ‘all around’ each of the stacked
300mm silicon-based epitaxy for power devices and wafer-manufacturing applications. The Intrepid
channels.
reactor architecture allows for thick Epi deposition in a single pass, a significant productivity benefit
Leveraging more than two decades of ALD innovation experience, ASMI’s ALD tools are
the industry standard for depositing high-k metal gates. Our Epi tools enable precise
For 200mm epitaxy applications, we offer the Epsilon 2000 tool.
deposition of silicon and silicon germanium transistor channel materials.
for our power and wafer customers.
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A400 DUO
INTREPID ES EPITAXY
SYNERGIS ALD
PECVD
In PECVD, our key position is on low-k for advanced logic interconnects. PECVD processes are
SPARES & SERVICES
ASMI systems are complex and operate under extreme conditions. To start them up and keep them
offered on our high-productivity XP8 platform. Our Dragon XP8 PECVD tool addresses a broad
running requires highly trained service engineers and a complete set of spare parts. ASMI spares
range of dielectric films for various low-temperature deposition applications, such as interconnect
& services is our customer frontline. It is there to install and qualify our new systems shipped to
layers, passivation layers, and etch stop layers.
VERTICAL FURNACE
Vertical furnaces use a batch configuration. This means a large number of wafers are processed
at the same time for productivity and cost savings. Our furnace tools are designed with dual-batch
the customer, as well as maintain the systems via spare parts and services through their lifecycle.
In 2021, we gained strong traction globally, with new multi-year contracts of our newest outcome-
based service, Complete Kit Management (CKM), as well as our outcome-based offering, spares-
as-a-service (SaaS).
reactors for even more productivity. Our furnace tools include the A412 vertical furnace for 300mm
ASMI has always provided service engineers locally, along with spare parts partially stocked locally.
logic, foundry and memory applications, and the A400 DUO vertical furnace for 200mm and smaller
Otherwise, it has made these parts available with some lead time on demand. Recently, we have
wafers, targeting analog, power, RF, and MEMS applications. Our newest furnace tools, the A400
become more proactive in our spares & services business model, focusing on outcome-based
DUO, has achieved significant wins in the China market. A wide range of process applications are
services. These are products that deliver a quantifiable and verifiable value for a price, and the onus
available on our furnace tools, including LPCVD, oxidation, diffusion and cure.
is on us to deliver the defined value. This is in contrast to a historical model where the customer
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purchased parts and people in a transactional way. This translates into ASMI putting concerted
For the second year running, we have also focused on improving our operational efficiencies
effort into developing new services that enable customers to enjoy improved system performance,
in service. We have a full suite of operational metrics – from how long it takes us to install and
higher output, and lower costs per wafer for their installed base.
qualify a new system, to how our service team is used globally, and 31 other metrics in between.
On a 100-point scale, we’ve successively driven up our score globally, from 36 in 2019 to 85 in
Periodically, our systems require proactive maintenance to continue to perform well, and this is
2021. These improvements allow us to deliver a better, and more cost-effective service experience
where CKM – our fastest-growing outcome-based service of the year – comes in. In effect, CKM
to our customers.
is a little like taking your vehicle for a routine oil change, that comes with fluid-level checks, an
air-filter replacement, etc. With CKM, ASMI makes sure the right, quality parts and expertise is
there for when customers need it. ASMI is also working constantly towards reducing the costs
and downtime associated with these maintenance. With ASMI having developed the system,
and with our resources and learning scale available, we can deliver superior value in this area.
This compares favorably to the past when customers had to manage most of this process, if not all
of it, themselves.
Our second fastest-growing outcome-based service is dubbed ‘SaaS’ or spares-as-a-service.
Periodically, parts in a system wear out, like tires on a car. These are called ‘consumables’. Other
parts stop functioning over a longer period, and in a less predictable way, like a lock on a car
door. These are called ‘non-consumables’. In both cases, a relatively low-cost part can keep a
much more expensive system idle, as the system waits for the part to enable it to function. In the
past, in line with the normal business model, we would fulfill orders for parts when we received
them. But this process can take a long time, even months. Customers, generally, have had to take
responsibility for parts planning to make sure they had stock when needed. With SaaS, ASMI takes
on this planning and inventory. As ASMI builds this service globally, our ability to have the part a
customer needs, at any time, improves. It also means customers’ systems will not be down as they
wait for a part to come in.
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3D and NEW MATERIALS
Next-generation semiconductors increasingly require:
3D STRUCTURES
AND NEW MATERIALS
FinFET to GAA
FINFET TO GAA
DRAM high-k/metal gate
Periodic table
Planar NAND to 3D-NAND
Planar DRAM to 3D-DRAM
PLANAR TO 3D-NAND
PLANAR TO 3D-DRAM
Elements marked green are used
in semiconductor manufacturing,
currently or expected in the future.
3D AND NEW MATERIALS INCREASINGLY REQUIRED
FOR NEXT-GENERATION SEMICONDUCTORS
TECHNOLOGY TRENDS LOOKING FORWARD
At ASMI, we believe that as long as there is growing demand for semiconductors, Moore’s Law
A second example of 3D is the GAA transistor, poised to take over in a few years, following five
or more generations of FinFET. This stacks up to four channels on top of each other, significantly
– or at least a generalized version of it – will continue. Scaling of the smallest dimension through
multiplying the current a particular transistor can carry. Simultaneously, this improves the control
lithography is no longer enough to increase density and decrease cost-per-function. Increasingly,
over that current. Third, chips are now stacked vertically in a package to reduce the package size
scaling is complemented with a move to the vertical dimension ‘3D’. A first example of this was
and shorten the connection lengths between the chips. For example, a high-bandwidth DRAM
the transition from 2D-NAND to 3D-NAND non-volatile memory with, currently, as many as 128
device integrates a logic chip, formerly ‘the periphery’ in a single chip, with multiple vertically
transistors aligned vertically along a single vertical channel.
stacked memory arrays in a single package. And fourth, the difficulties in scaling the cost and
size of a DRAM is expected to lead to a transition to stack transistors vertically in a 3D-DRAM
beyond 2026.
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ALD
Due to its ability to create substantially uniform and high-quality layers of complex materials over
3D structures (‘conformality’) at relatively low temperature, the share of ALD (including PEALD) in
energy savings per wafer realized. Finally, tool settings have been optimized for periods of time when
the tools are not in use creating a “smart idle” state.
the deposition market will grow substantially with this trend towards 3D. On the one hand, existing
technologies like LPCVD will be replaced by single-wafer ALD. On the other hand, new ALD
SUSTAINABILITY IN R&D
We have taken several initiatives that contribute to an improved environmental impact of our R&D
processes will enable further changes in device architecture that could not have occurred with other
operations. Our road-mapping process, led globally by the Office of the CTO, and the associated
deposition technologies. New materials, such as better conductors and insulators, for example, will
controls, are intended to prioritize our work towards the most likely technologies needed for future
be needed to maintain adequate electrical performance. Materials need to be deposited in narrow,
technology nodes. Vertical collaboration leads to more efficiency in R&D as down-selection of
deep gaps, without any holes or seams. More and more of these critical process steps are expected
options can be done more effectively. These two processes, prioritization and vertical collaboration,
to migrate towards ALD and PEALD.
result in fewer materials and wafers being wasted in experiments.
EPI
The GAA transistors will rely on an epitaxial superlattice of as many as 8 to 10 silicon and silicon-
Executing part of our new chemistry developments and initial selection in a lab on coupons in
R&D systems, rather than on full wafers in 300mm manufacturing systems minimizes the number
germanium layers. For 3D-DRAM, this superlattice is expected to be even taller: starting with around
of experimental trials needed to conclude a development. This reduces energy and chemicals
64 layers. This is expected to scale quickly to even more layers. The new GAA transistors will also
consumption, as well as silicon wafer usage.
require new epitaxial contact layers, selectively grown bottom up with high doping. In addition,
power electronics for, among others, electric vehicles, will require thick epitaxial layers.
In our selection process for chemistries, during our initial pathfinding, we investigate many different
Overall, we believe ALD and Epi are the most important growth markets – at least in the next five
part of our selection process. Although ASMI uses only a relatively small amount of these chemicals
years. Accordingly, we have focused most of our R&D spend on these technologies.
internally in its R&D process, their use down the value chain by customers can be very large. These
precursors and chemistries. A sustainability review of these chemistries is becoming an integral
PRODUCT SUSTAINABILITY
Developing tools and processes more efficiently helps improve energy and resource usage.
initial chemistry choices are therefore important in minimizing the environmental footprint of our
equipment in operation at our customers.
We are working to achieve this in various ways, including:
Additionally, in 2021 we improved the rigor in our R&D process with an improved tollgate (or stage
Developing process technologies that enable advanced semiconductor chips with lower
gate) process, and various pipeline controls. This improves the effectiveness and efficiency of our
power consumption;
R&D process, decreasing waste in chemicals, materials, and test wafers. Thus far, our internal
Designing our equipment to use less power when operating in our customers’ fabs.
analyses shows that these R&D process optimizations led to a reduction in wafer and chemical use
per research topic in the range of 25 to 50%.
In 2021, ASMI continued its strong focus and commitment to reduce energy and resource
consumption across our product portfolio. Using Epi as an example, we demonstrated significant
We use proprietary techniques in data science in planning and conducting our R&D. This serves
energy savings with development in multiple areas. Our unique Epi chamber architecture inherently
to optimize the efficiency and effectiveness of product and process development, and knowledge
shows advantages with reduced gas consumption and net power consumption per wafer due to
transfer. This in turn has proved to significantly reduce energy and resource consumption. With
its reduced chamber volume. Additional hardware engineering innovations, and the use of green
advanced models of process and hardware behaviors, we are better able to identify and robustly
certified components, have been implemented as well. Process recipe optimization, including the
validate further improvement opportunities. Such advanced techniques are necessary in working at
use of multi-wafer clean schemes, helped to minimize clean chemistry consumption with a further
atomic scale, to balance deposition performance with energy and resource consumption.
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ENABLING MORE ENERGY-EFFICIENT CHIPS
Some of the materials and processes we work on with our customers enable more energy-efficient
include country legislation, the extensive standards defined by the semiconductor industry and
its customers, and ASMI-specific requirements. We analyze if the safety requirements can be met
chips, with transistors and memory elements that consume less power per operation, and
during the concept and design phases, as part of safety-risk assessments. We confirm compliance
interconnect with lower power losses. In 2021, 2.1-2.4% of the world’s energy* was already used for
through independent third-party validations during the product validation phase.
processing (1%) and communicating (1.1-1.4%) data across the internet, and in data centers. This
energy use roughly doubles every three years, growing much faster than overall global energy use.
We integrate the identification of opportunities for safety-design improvements from our global
New materials and process technologies developed by ASMI help to reduce the power consumption
equipment to report incidents, areas of concern, or opportunities for improvement. Corrective and
in advanced semiconductor devices, while increasing their performance. For example, ALD gate
preventive actions and lessons learned are captured, prioritized, and acted upon, providing an
dielectrics and new work function (WF) metals enabled reductions in gate leakage current by
invaluable link between end-users and the design process. All those working with our equipment
1000x. ALD, due to its near-perfect conformality, also enabled the transition of device architectures
rely on this process of continual assessment and improvement to make sure they can safely work
safety-reporting system. This system enables our engineers and technicians who work with our
from planar to 3D FinFET structures. FinFETs have a lower power consumption per operation than
with our products.
planar FETs.
Key advancements in our safety program in 2021:
Going forward, ALD and Epi processes will play a crucial role in the next device architecture
Expanded product safety education: Each year, we look at new regulations, advancements in
migration from FinFET to GAA nanosheet transistors. Compared to FinFET, the GAA will consume
standards, and lessons learned. We update our training material accordingly, and customize it with
less power per operation. The migration of DRAM periphery to high-k dielectric and metal gate will
specific product line examples for respective product design teams. ASMI’s product safety
significantly reduce its dynamic and static power consumption, just like it did for logic devices. Also,
engineering training classes address the latest lessons learned, and changes to compliance
we expect that the new materials for memory that ASMI is currently researching – such as phase-
regulation and standards.
change materials and ferroelectric materials – will play a critical role in future energy-efficient memory
Successful third-party virtual safety audits during COVID-19 restrictions:
devices, and energy-efficient AI architectures.
PRODUCT SAFETY
Product safety is central to ASMI’s innovation process, and is realized through the design,
ASMI’s Product Safety Engineers performed virtual third-party audits in all regions globally.
Due to travel restrictions, these required significant additional preparation and coordination.
Also, the number of audits globally increased markedly due to the significant increase in
new product-development programs.
development, manufacturing, delivery, and ongoing use and support of our products. The Product
Semiconductor industry product-safety engineering leadership: We presented to the
Safety Program is defined and championed by a new Strategic Safety Council, which includes
international semiconductor industry forum (SESHA) on three key innovations in product safety
the leaders of ASMI’s EHS and Product Safety Engineering and their executive management. This
engineering:
council sets strategic direction and provides governance to strategy execution and ongoing program
1. Challenges in risk assessment and risk reduction;
management. This embodies our ‘Stronger Together’ philosophy, where EHS and Product Safety
2. The world of virtual SEMI S2+ audits; and
strive to work together optimally. It includes improvements in business processes and systems,
3. Focused IH activities to minimize maintenance downtime.
safety culture, training, and ensuring continued industry-safety leadership.
Product Safety Engineering makes use of a compliance scorecard to track key regulatory and
in key industry efforts to advance product safety, as well as our own capabilities, methodologies,
compliance requirements through all product lifecycle stages. These compliance requirements
and systems.
Looking ahead, in line with our safety leadership ambitions, we will continue our strong engagement
* www.iea.org/reports/data-centres-and-data-transmission-networks.
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ASMI aims to comply with applicable hazardous substance equipment content regulations as they
We are developing our product-safety innovation roadmap, and look forward to sharing more
become applicable. We engage with industry associations regularly to stay informed, and provide
about these innovations in the coming periods.
a voice on industry positions and value-chain compliance. Regulations related to product content,
such as RoHS, REACH, and PFAS, are regularly revised and applicability redefined. ASMI has
engaged a third party to support us in evaluating the hazardous substance content of our suppliers’
PRODUCT LIFECYCLE MANAGEMENT
Product stewardship and product lifecycle (PLC) management are the foundation of our product
parts, and will continue to drive compliance in this important area.
development efforts. This involves in-depth understanding of our markets and the challenges our
PRODUCT SAFETY INNOVATION
Product safety is the ability of a product to be safe for its intended use (safely delivered, installed,
customers face. It is also about translating this into market requirements and product-development
programs to address our customers’ challenges and enable their roadmaps.
operated, updated, maintained), against ‘reasonably foreseeable misuse’, ‘designed so that
It also involves taking responsibility for reducing our products’ environmental impact along their
a reasonably foreseeable single point failure fault or reasonably foreseeable set of concurrent
entire lifecycle, from cradle-to-grave. Ultimately, this approach enables us to develop products more
failures accumulation of faults does not result in an unsafe condition’. It includes the intrinsic ability
efficiently. It results in products that are more efficient and productive, while providing for a more
to mitigate the risk or impact of equipment or broader damage even if other layers of safety fail.
circular product by extending its useful life.
The safety of a product is evaluated against a myriad set of established standards (e.g. SEMI S2
and S8) and rules, which grow in number and become more complex with time.
Our product lifecycle process follows the well-established construct of phase-gate product
The safety of products represents the risk of harm to people, environment, facilities, business
continuity, reputation (ASMI and customer), and other, whether the product is operating in our facility
Our collective industry knowledge/experience and subject-matter experts;
Industry/customer requirements and frameworks (such as customer-purchase specifications and
development guided by several key inputs:
or a customer site, or another environment. A single event (e.g. explosion, fire) can result in serious
business requirements); and
injuries or fatality, potentially destroy major portions of or even an entire fab, and potentially disrupt
Industry regulations, standards, and guidelines.
large segments of industry supply chains. Our customers expect us to comply with all applicable
standards, verify compliance by a certified independent authority, and maintain compliance
Product-specific requirements realized from these inputs are documented in market requirement
coincident with design, configuration, and use-case changes over time. Certain customers require
specifications (MRS), which are held as the objectives we need to meet throughout the product
adherence to their own special conditions, which can drive the cost of compliance up for all.
development process. The MRS are updated continuously to capture changes to market conditions,
We firmly believe there can be no compromise on safety, and the industry should not increase
regulations and standards, and related specifications.
its risk appetite.
We are focused on ensuring compliance with all regulations, standards, and best practices to
reviews), and phase exit meetings through the various lifecycle stages of the product.
maximize product and operational safety, striving to perform at the highest levels. As recognized
safety leaders in our industry, and leveraging our innovation heritage, we also see significant
We maintain the certification ISO9001-2015, relating to the scope ‘design, sell, make, install, and
opportunity for innovations that meaningfully reduce safety risk, and improve safety-related
customer support of front-end semiconductor processing equipment’, which was recertified on
fab economics.
August 1, 2019. The next recertification audit is in April 2022. We did not have any product quality
Governance is provided through key technical meetings (architecture, design, and validation
recalls or related material financial impact in 2021.
In 2021, we brought such a key innovation to the market. It reduces purge gas and exhaust volume,
lowering energy and resource use while maintaining equipment and operational safety. We are
evaluating this key innovation with a leading customer.
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EXTENDING THE PRODUCT LIFE OF OUR SYSTEMS
The market for our new systems continues to grow rapidly, driven primarily by customers’ needs
SUSTAINABLE PARTS LIFECYCLE
Customers want parts that last, increase the output and lifetime of the system, and reduce the
for the latest technologies. At the same time, many of our older systems remain in full or partial
cost of ownership. We have integrated technologies, such as a soft remote plasma clean, in place
use today.
of in-situ plasma cleaning, which helps to extend the life of these parts. We have a team in our
services group tasked with improving the intrinsic lifetime of parts. This means focusing on surface
For systems no longer in use, there is an after-market where our customers reuse these systems.
technologies that will make internal chamber parts more resistant, so they will not need to be
ASMI has selectively been participating in this market. We continue to explore how to participate
replaced as often.
more broadly, in a way that will help to lower costs and deliver a higher ROI to our customers.
For those systems not operating optimally, we have a team that works on refurbishment and
with new parts. This involves the original new-part surface technology, as well as the used-
upgrade solutions for our installed base. We actively work with customers to understand and
part surface technologies, to find ways to refurbish the used part to lower costs and extend life
implement improvement opportunities. In 2021, we continued to see a significant amount of
parts. We are evolving our supply base to be more local to our customers. We are also focusing
system-level refurbishment business, and expect this to grow in the future.
on the refurbishment of existing parts, rather than the costly and less sustainable approach of
The team also looks at how to reuse the parts that need to be replaced, rather than replacing
manufacturing new ones. Our team also seeks to find solutions for the components that will
inevitably become obsolete in the supply chain. The aim is to continue repairing existing installed
base components, rather than replace them with new ones, and keep our systems running long
into the future.
People
People
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PEOPLE
Our people are our key asset. They drive ASMI’s strong growth through their actions, innovative ideas,
and passion for delivering every day. Our role is to create an inclusive workplace and culture that
allows everyone to grow, thrive, and develop a fulfilling long-term career. Engaging with and
contributing to the communities where we do business is a significant opportunity to make
a positive impact.
PEOPLE - OUR TEAM
To ensure the long-term success of our employees and our company, ASMI’s people initiatives and
This multi-pronged approach has resulted in a structural improvement in ASMI’s talent-acquisition
approach. It has raised brand awareness, strengthened our identity, and built pride, all of which
roadmap focus on establishing us as an industry employer of choice.
are helping to establish ASMI as an employer of choice for new and experienced talent.
DRIVING TALENT ATTRACTION
In 2021, we introduced numerous employee branding initiatives to help ASMI achieve its growth
This approach has resulted in ASMI’s most successful year for talent acquisition, with a total of
1,146 people joining us in 2021. Our total workforce grew from 2,583 to 3,312, a total increase
ambitions by attracting the best in our industry. Activities throughout 2021 led to the strong growth
of 28%. The increase in our voluntary attrition rate from 8.3% in 2020 to 11.1% in 2021 can be
explained by strong growth in our industry and the recovery in the economy.
of our workforce.
Some of our initiatives:
Introduced ASM Accelerate, an intensive PhD graduate program;
Launched a global employee referral program, a strategic recruitment program that encourages
employees to refer top talent;
Leveraged our award-winning employee value proposition, ‘Power of an Open Mind’, successfully
using it across multiple recruitment campaigns;
Adapted and introduced virtual recruitment webinars worldwide, targeting key groups, including
PhD graduates, IT, and global operations;
First-ever out-of-home recruitment campaign ran in Singapore. ASMI appeared on buses, at
train stations, and other busy spots around the city; and
WORKFORCE
Employees
Employees including temp
% temporary workers
Number of workers under
Collective Bargaining
% workers under
Collective Bargaining
Nationalities
Male
Female
Ramped up social media, building our employer brand presence and online community.
Voluntary attrition rate
2017
1,900
2,043
7.0%
2018
2,181
2,327
6.3%
2019
2,337
2,444
4.4%
2020
2,583
2,689
3.9%
2021
3,312
3,462
4.3%
224
260
278
328
254
11.8%
29
85%
15%
10.4%
9.1%
29
85%
15%
9.9%
10.8%
11.7%
29
85%
15%
8.7%
40
85%
15%
8.3%
7.7%
47
85%
15%
11.1%
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Growth through innovation
OUR PEOPLE ARE OUR POWER
Claire Lin
Software engineer
Kurokawa, Japan
“ I TRULY BELIEVE THAT ASMI CONSTANTLY
INNOVATES, IN LINE WITH OUR COMPANY VALUES.”
Growing up in Taiwan, Claire Lin had a keen interest in the
Japanese language and culture. After graduating from
university, ASMI’s global network made moving to Japan
possible. Claire has been with ASMI for four years, joining us
straight after graduating from university. We ask Claire about
working at ASMI, personal growth, and her drive to innovate.
You started your career with ASMI. Can you tell us how you’ve grown
with us in that time?
“I joined ASMI at an exciting time; the semiconductor industry is very important to the whole
world, and ASMI is a key member of the semiconductor supply chain. I get to use my software
skills at ASMI and develop wider knowledge beyond technology. This helps me work smoother
as I know more about the whole semiconductor equipment structure. That’s how I experience
personal growth and progress – not only last years, but continuously in the last years.”
Can you tell me what innovation means to you in your role?
“To me, innovation at ASMI means that I am always being challenged by customer
requirements, new technology, and developments in software engineering. Innovation comes
from thinking constantly. To me, new ideas emerge in the process of improvement. It makes
me feel like the content of my work is not set in stone and this helps me keep progressing.”
How important is innovation to you and life at ASMI?
“I truly believe that ASMI constantly innovates, in line with our company values: We Care,
We Innovate, We Deliver, we are encouraged to improve our work, and I am always enabled
to do my best. The nature of my role also involves a lot of international, cross-cultural
collaboration, which allows me to use my language skills and experience the power of
teamwork on a global and local level. For example, last year, I had the opportunity to work
closely with colleagues from Korea on a project. It was a lot of fun, and we all learned and
shared a lot.”
Can you tell me how you see your future with ASMI?
“I really like being part of this software team; it’s not only about the contents of my work, but
also my colleagues that make my role enjoyable. I believe my growth at ASMI will continue
in the next few years. As the supply and demand of the world’s semiconductor supply
chain continue to increase, we will face some challenges, but this motivates me. Another
factor is ASMI’s ‘We Care’, which incorporates our well-being and creates a good working
environment, making me believe that ASMI and I can grow together.”
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LEADERSHIP AND DEVELOPMENT
Long-term career progression is core to retaining our employees. We are in a strong, new growth
pipeline. We also implemented development centers alongside a relaunched leadership academy.
These focus on a smaller group of business leaders, empowering them and preparing them to be
phase and need to continually develop our people and managers. To this end, ASMI implemented a
future leaders at ASMI.
talent-management approach built around employees’ strengths. This provides tailored support and
career development opportunities. In 2021, hundreds of our people were assessed, with actions
We extended our e-learning platform (Harvard ManageMentor) to all employees globally. As a result,
designed to tap into their potential. This will continue into 2022, with individual development plans
we have seen an increase of 72% in active learners, with a 53% increase in the average learning
implemented for all employees.
time. As we continue to foster a learning culture, we expect to double these numbers.
We also worked to identify roles that are critical to our continued success. These positions form
To retain existing talent and attract new people, ASMI has taken a robust approach to its people
a central part in our succession planning, a process that maps our internal talent against critical
agenda, innovating at every turn as it looks to drive itself as an employer of choice.
positions. It ensures that ASMI has continuity in key roles, and helps us strengthen our internal talent
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PEOPLE ARE OUR BIGGEST ASSET
OUR
VALUES
To unleash everyone’s potential at ASMI, and to allow each employee to build and
establish a long-term and sustainable career, we are focusing on four areas.
STRENGTHENING OUR CULTURE
Unleash our renewed focus on ASMI’s culture and values. Shaping a culture of compassion,
inclusivity, innovation, and drive to deliver.
GROWING ENGAGEMENT
We are making the changes that matter. Focusing on engagement initiatives defined by
our employees, the driving force behind improvements for everyone at ASMI.
LEADERSHIP & DEVELOPMENT
We are strengthening our talent pool by focusing on long-term career progression with
training for all employees and our future leaders.
INCLUSION & DIVERSITY
We are a company that acts with integrity, compassion, and respect always. Together we
are inclusive, inspired by others, and always growing.
STRENGTHENING CULTURE AND GROWING ENGAGEMENT
CULTURE
At ASMI, we believe that people are our differentiating factor. So we will only achieve true
further, taking part in interviews, focus groups, and surveys. The results have reinforced
our strengths, and shown us where we can still improve.
potential by attracting and retaining the best talent in the industry. To do this, we are focusing on
But we are not stopping here: creating one ASMI is a continuous journey.
further strengthening our culture, and shaping a workplace centered around compassion, trust,
accountability, delivery, and innovation.
Ultimately, we aim to build connections between our employees’ personal values and ASMI’s
purpose. We will work with all employees to help them understand their roles in shaping their
In 2021, we took an essential step in defining who we are at ASMI, and what we stand for,
own futures, and the future of ASMI.
by launching our core values – We Care, We Innovate, We Deliver.
These core values have been embedded throughout the organization, top-down and bottom-up.
and we know that an engaged workplace can increase productivity, quality of work, and help to
In addition, hundreds of our employees have played a critical part in helping to shape our culture
retain top talent.
Developing a culture unique to ASMI will help us create an even more engaged workplace –
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ENGAGEMENT INITIATIVES
Our first employee engagement survey, held in late 2020, achieved a solid 94% participation rate.
PULSE SURVEY
The pulse survey had a 79% participation rate, and offered us valuable insight into progress in
In 2021, the mission was clear: our employees were keen to participate in the company’s change
our engagement journey. The survey, a quick check-in with colleagues old and new, came one year
journey. They were all instrumental, therefore, in putting actions into place throughout the year to
after our first company-wide engagement survey.
increase engagement.
ASMI took a local approach to implementing improvement initiatives, tasking people managers and
progress in engagement, and strong recognition of the inclusive culture at ASMI. We will continue
their teams with creating ‘action plans’. These plans represent ideas and improvements, suggested
to support teams that require additional training and coaching to prepare for our next full biannual
by the individual team members, to help boost engagement and create a work environment suited
engagement global survey in 2022.
The survey focused on team action plans and an inclusivity index. The survey revealed solid
to each team’s unique needs.
Alongside action planning, we identified other immediate priorities. This included a need for more
consistent, transparent, and open communication. As a result, two major initiatives were undertaken
in 2021.
CO-TALKS is a quarterly virtual all-hands meeting, with the CEO and senior management team.
Throughout 2021, thousands of our employees joined us online to listen to company updates
and take part in Q&As. Employees were encouraged to ask the senior management team
questions, either anonymously or face-to-face. This allowed for honest, open discussions between
management and employees.
CONNECT, another employee communications tool, relaunched as an online news platform in
February 2021. The platform has gone from strength to strength, with many employees submitting
Great communication of engagement survey results by leadership and local
management, with 79% rating it as excellent (‘5’ – 50%) or good (‘4’ – 29%);
stories and sharing their successes. More than 100 articles were featured during the year,
70% of employees report participating in a good (‘4’ – 33% ) or even great (‘5’ – 37%)
including 60+ interviews with our people, and 34 videos, and we’re racing towards the million
action-planning session;
page-views mark.
65% of employees rated either great (‘5’ – 29%) or good (‘4’ – 36%) progress on
their engagement plans; and
Following one year of activity, we held a pulse survey in November 2021 to track our progress.
High scores on both local follow-through on the 2020 Engagement Survey
(accountability) and perceptions of inclusion highlight positive changes across ASMI.
Survey results at a glance
The pulse survey monitored our collaborative action-planning, as well as offering crucial
insights into the current status of inclusion and diversity (I&D) at ASMI.
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TOTAL REWARDS
Alongside culture-driven actions, we have taken steps to improve our total rewards to safeguard
INCLUSION & DIVERSITY
At ASMI, we aim to be a truly inclusive and diverse company, a place where everyone is enabled
ASMI’s position in the semiconductor labor market, which has become increasingly competitive in
to do their best and be their whole self.
recent years. Being able to attract and retain talented employees is key at ASMI as we focus on
growing and strengthening our organization. The demand for highly skilled people is increasing in all
To help achieve this, we launched a flagship initiative in 2021. Our new employee resource group,
the countries we operate in.
ConvERGe, will form the backbone of our inclusion and diversity (I&D) agenda at ASMI.
To ensure ASMI’s continued success, and further reinforce our position as an attractive employer
We announced ConvERGe in March 2021, during a week of events centered around International
to both potential and current employees, we undertook a total rewards strategic diagnostic review
Women’s Day. More than 500 of our employees from all locations and backgrounds joined us for
in 2021. This focused primarily on global benchmarking and an in-depth analysis of compensation
training, talks, and Q&As hosted by two of our female Supervisory Board members, with other
programs. Recommendations following this review have led to progressive changes in our
internal and external speakers.
compensation approach and policy.
ConvERGe is made up of ASMI’s business leaders and employee volunteers worldwide.
A second benchmarking exercise and review of all employee benefits programs globally will take
Its members identified three objectives, strongly linked to our ESG ambitions:
place in the first half of 2022. These activities will ensure ASMI offers competitive pay and packages,
1. Drive an inclusive culture
safeguarding our people and their role in supporting the company.
2. Lead in gender pay equality
3. Foster recruitment and retention of women across ASMI
With our rapid growth and onboarding of more than a thousand new colleagues in 2021, it’s more
crucial than ever that we focus on giving all employees a clear sense of direction and purpose to
ConvERGe is committing to:
come to work each day, beyond just monetary reward.
Collaborating with our leadership team to target and drive for 20% women working
at ASMI by 2025. This is the first time we have committed to such a target, and this
will drive much of the ConvERGe activities in the coming year;
Creating an internal awareness campaign and recruitment drive resulting in 100
volunteer employees joining ConvERGe, creating communities globally and locally;
Sponsoring training for managers and employees worldwide; and
Helping to set the I&D agenda at ASMI, considering the results of the pulse survey,
identifying additional employee resource groups and activities centered around
the needs and expectations of ASMI’s people.
ASMI has a proven track record for equal pay, a key component to any successful, fair, inclusive,
and diverse workforce. To be transparent about the impact of our compensation programs, we
assess the difference in gender compensation between our female and male employees. We look
at the compensation ratio at management and non-management levels. The analysis compares the
median compensation as a function of gender per job grade and per country, excluding the impact
of job scope and country-specific compensation levels.
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In 2021, we saw a limited downward shift from 99% to 95% in our gender pay ratio. This was
We also care about the living conditions of our workforce. To this end, we actively engage with
calculated using the relative salary position (RSP), comparing female and male employees.
outside organizations to benchmark best practices in line with the Anker methodology, a relevant
The decrease is largely due to ASMI’s growth and record year for recruitment. We conducted
survey practice for corporate organizations. We also make use of the WageIndicator Foundation
a strategic diagnostic review of ASMI’s compensation in 2021, with resulting actions to be
definition and data, which is dedicated to labor-market transparency.
implemented in 2022. This will help support our continued focus on making sure all employees
are rewarded fairly, and in line with local, regional, and global best practices.
The scope of the living-wage assessment conducted in 2021 included all countries where we have
Median RSP (female/male)
Senior management/executives
Middle management
Non-management
Total
2020
103%
102%
100%
99%
2021
91%
91%
97%
95%
ASMI employees or contractors (currently 16). As with the assessment in 2020, we did not identify
any cases where employee wages were below the agreed living wage. This is also driven by the
fact that we have a predominantly highly educated workforce, with competitive remuneration levels.
Our wage commitments also align with our ‘We Care’ value and ‘employer of choice’ ambitions.
ASMI collaborates on bringing visibility and action to this important topic outside our value
chain. Starting in 2020, we co-proposed with three other companies to add ‘living wage’ as an
GLOBAL EMPLOYMENT STANDARDS AND HUMAN RIGHTS
ASMI is dedicated to creating a safe and healthy workplace. We also take responsibility for
amendment to the RBA Code of Conduct. The proposed amendment was not adopted in the
latest version of the code, but ‘living wage’ was formally added to the RBA’s strategic plan in
international employment standards across our supply chain. Our Global Employment Standards
2021. Our advocacy efforts culminated in the RBA forming a Living Wage Task Force in 2021 to
(GES) summarize our policy and standards regarding human rights throughout our global
study the impacts and recommend best practices for RBA member consideration and potential
operations. They are written with everyone in our value chain in mind. The GES reflect the principles
implementation.
laid out by the United Nations in the Guiding Principles on Business and Human Rights, and support
the RBA Code of Conduct labor standards framework, including the following:
Prohibit the use of forced or involuntary labor, including fees of any type to secure employment;
Prohibit the employment of child labor; ASMI policy specifically does not allow anyone under
the age of 18 to be employed at ASMI; and
Prohibit corporal punishment, threats of violence, or other forms of physical or verbal coercion
or harassment. We believe that everyone deserves to work in an environment free of any threats
to their human rights.
In 2021, we had no reports or evidence of any human rights violations or abuses within our global
hiring or employment practices.
The full text of our Global Employment Standards is published on our website.
LIVING WAGE
ASMI is a member of the Responsible Business Alliance (RBA), the world’s largest industry coalition
dedicated to corporate social responsibility in global supply chains. Our employees are paid above
the local minimum wage, and we are committed to paying at least a living wage.
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WORKING HOURS AND DAYS
The standard working week varies by region and country and is often dictated by local regulations
or the Global Compliance Officer. The Ethics Committee investigates any reports. Independent of
how an issue is reported, our COBC includes a non-retaliation policy that applies to any person
and norms. One consistent standard across ASMI is aligned with the fundamental principle in the
making use of this process.
RBA Code of Conduct that addresses working hours and days for hourly employees involved in
the production of goods and services. The RBA code limits working hours to 60 hours per week, or
In 2021, eight concerns were reported through our SpeakUp! system, while four cases were
the local limit, whichever is lower. And such employees shall be allowed at least one day off every
reported via other channels to the Ethics Committee. We reviewed and responded to all incidents.
seven days.
In one case, the investigation revealed a non-conformity with the COBC and related policies, and
appropriate action was taken.
There is an allowance for emergency situations, such as when COVID-19 unexpectedly disrupts
schedules with lockdowns, quarantines, and production worker availability. With some impact within
these guidelines, ASMI was able to perform within the RBA limits for both working hours and days.
PRIVACY
We have adopted and rolled out a privacy policy and practice, which is in line with GDPR, and
We were able to achieve this because of our existing management framework around the control of
have established privacy-protection agreements with third parties where applicable. In our effort
working hours and days. The adherence to these criteria is part of a corporate-level dashboard and
to protect the confidentiality of our employees’ data, we conduct regular audits and act on any
is monitored and reported closely to ensure compliance.
filed reports. The same applies to the privacy of our customers and suppliers.
BUSINESS ETHICS
ASMI’s Code of Business Conduct (COBC) management system includes 18 underlying policies,
HEALTH AND SAFETY
The protection of the health and safety of our employees, customers, suppliers, contractors,
including fair competition, gifts, entertainment and hospitality, corruption and improper advantages,
and others in our value chain is an uncompromising principle. We measure our success against
and anti-fraud.
our vision of ZERO HARM!, a commitment we have across our operations. Our ultimate goal is
ZERO HARM!, whereby we strive to eliminate all harm within our operations, and are collaborating,
The refreshed COBC is more comprehensive and comes with training for all employees in multiple
influencing, and enabling others to do the same.
languages. The training is set to effectively influence desired conduct rather than merely reinforce
rules. At the same time, it further defines the consequences of such violations through our newly
introduced disciplinary policy. All training is supported by a wealth of resources. This includes a
dedicated web page on ASMI’s intranet, reference material, and tools for specific areas, such as
gifts and entertainment, the Whistleblower program, and SpeakUp!, an anonymous way to voice
concerns or violations of the COBC.
The COBC applies to our Supervisory Board, Management Board, all employees, consultants,
contractors, temporary employees, and critical suppliers.
SPEAKING UP
The SpeakUp! program enables employees, suppliers, customers, and other stakeholders to report
ethics issues and concerns anonymously and in their own language. People can report potential
violations of our COBC through the SpeakUp! process, or directly to management, the People team,
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BE SAFE SAFETY LEADERSHIP FRAMEWORK
EXPECTATIONS
Set the foundation for our safety culture
EMPOWER
Everyone is a leader for safety
EXEMPLIFY
ELIMINATE
Lead by example, in words and actions
Prevention always comes first, eliminate hazards up front
EDUCATE
EVALUATE
Know for yourself, require timely completion of safety training
Your and your organization’s safety leadership
SAFETY LEADERSHIP
Empowering safety leaders in all areas of the company regardless of role is a fundamental part of
A prestigious ASMI award recognizes safety leaders every quarter. Employees who demonstrate
our approach to safety. Safety is both ‘in the moment’ and is influenced by the world around us
notable contributions – scaled for their role, positive attributes, and leadership – in safety can be
every day. What we say, how we say it, and what we do influences everyone we work with. We
nominated by peers for a global quarterly Safety Leadership Award.
recognize this and continue to promote our 6Es of Safety Leadership to instill the philosophy that
anyone can be a safety leader.
We honor these safety leaders at ASMI:
QUARTERLY SAFETY AWARD WINNERS
Q1
Q2
Q3
Q4
Senior Field Service Engineer
Japan - For sustained team safety
motivation
Senior Manufacturing Manager
Singapore - Consistently exemplified
safety through his leadership
Field Service Engineer
US - For exemplary safety leadership
in an extraordinary moment
Manager Product Support
Phoenix - Safety leadership inspiring others
around the ASMI global lab operations
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In 2021, we started or continued key focus areas of our safety systems, including:
Blueprinting and development of a new, digital platform for Environmental, Health &
Global injury and recordable rates
(Case rate per 100 employees)
Safety (EHS) applications based on industry-leading architecture – This project is called
0.75
SHIELD and the first application being developed is an upgrade to our Safety Incident Reporting
(SIR) platform. The transformation of this system will allow us to better understand and improve
our safety performance, particularly with predictive capabilities. We have a three-year roadmap
to grow SHIELD beyond activity and action planning, and integrate it with other key control and
workflow processes.
Safety leadership collaborations – During the COVID-19 pandemic, we continued to drive our
industry-leading safety leadership collaborations with our customers virtually. To collaboratively
reduce our shared risks, we compare our observations and data, understand mutual challenges,
and identify areas we can work together to improve. We plan to engage with additional customers
to broaden this collaboration.
Lab safety plans – We are seeing significant growth in our engineering and R&D operations, and
that means expansion of our R&D labs. How we expand safely, and continue to drive overall safety
0.62
0.56
0.50
0.30
0.26
0.25
0.55
0.45
0.21
0.18
0.42
0.42
0.19
0.17
0.58
0.37
0.23
0.17
0.50
0.37
0.26
0.17
performance and risk reduction in these high-risk labs is a key focus.
2017
2018
2019
2020
2021
Manufacturing safety plans – Even with a new state-of-the-art manufacturing facility in
Singapore, we continue to focus on reducing risk in our manufacturing processes there,
as well as in our operations in South Korea and the Netherlands.
Service safety plans – Our service organization faces unique risks at customer sites, which are
shared work environments with customers, other suppliers, and trades. We have a focused annual
plan for risk reduction and customer engagement in this critical area of our operations.
Industry engagement and collaboration – With a view to collaboration and engagement
around health and safety, we continue to be a platinum sponsor of SESHA, a multi-industry
Recordable injury rate
Injury rate
Recordable target
Injury target
‘Learn once anywhere, address everywhere, in as close to real-time as possible’. ASMI is
committed to conducting business, both in our own operations and throughout our supply chain,
association focused on furthering safety, health, sustainability, and environmental knowledge
in a manner consistent with RBA principles to protect our employees, customers, business
and processes. We actively engage with and contribute to working groups at SEMI (the global
partners, communities, and the environment.
electronic products industry association) working groups that drive standards and
knowledge-sharing for the industry.
SAFETY MANAGEMENT SYSTEMS
Our safety management system includes a robust set of safety policies and processes across all
aspects of health and safety management. Our policies address core philosophies and practices,
including but not limited to:
Stop Work – Everyone has a right to ‘Stop Work’ when they encounter a situation at any level
that involves safety or health. Even if an employee feels unsafe without any event occurring, we
encourage and support them to call a ‘Stop Work’, seek a safe setting, get help or advice on how
to proceed safely, or escalate the situation to someone who can help them do so.
Proactivity – Programs that focus on the early detection of hazards and risks including our Safety
Management by Walking Around (SMBWA) and Good Catch reporting. These are forms of hazard
identification that engage employees and managers in their work areas. Through this engagement,
ASMI Safety Program - Our vision is ZERO HARM! This means we strive to prevent all incidents
and injuries, regardless of severity or impact. This vision is supported with the appropriate range of
we use our eyes every day across our company to identify and eliminate risks and hazards.
Energy safety – Policies and procedures for safely working around energies of all forms, and how
policies, programs, and governance. Our safety mantra, whether for prevention or response, is
to safely de-energize.
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Chemical safety – Protocols for the request, review, and approval to safely use chemicals and
Management review – There are quarterly reviews of Lab, Manufacturing, and Service strategic
gases. This incorporates protocols for determining safe handling, storage, and exposure
plans and progress. Health and safety is a standing topic for the Senior Management Team
prevention through the hierarchy of controls. It is integrated with our environmental policies for the
meetings, with performance to targets and objectives included.
planning of proper treatment or disposal as applicable.
Industrial hygiene – Understanding exposure controls for chemicals and other physical hazards
is a key part of our focus on health and safety. Our industrial hygiene program aims to prevent
KEY RESULTS
We measure our success not in the number of serious injuries, or the number of days away from
occupational exposures that could cause harm or disease.
work, but in the total injury rate, which includes all injuries requiring first aid or more. Our vision is
Risk and incident reporting, prevention, and response – Our safety incident reporting (SIR)
system is the foundation of driving risk and incident reporting, prevention, and response. This
ZERO HARM! Only when our Injury Rate reaches and is sustained at zero will we reach that vision.
Our progress towards this vision started in 2012, when we set this ambitious objective. We have
includes what to do when a risk is detected or an incident occurs, policies around immediately
seen our total injury rate fall significantly since then, from 1.09 to 0.50. In the same period, we have
reporting when it is safe to do so, getting the right attention to properly contain the situation first,
seen our recordable incident rate improve from 0.54 to 0.26.
and then focusing on the structural improvements necessary to prevent a risk or incident from
happening again.
As we strive for ZERO HARM!, each stage of our journey gets progressively more challenging. Our
Employee engagement – Employees are empowered members of safety committees and
Injury Rate improvement progress has recently slowed - our 2021 total Injury Rate of 0.50 did not
working groups across our organization and sites. They have the ability to submit a ‘Safety Good
meet our target of <0.37. We believe this underperformance is largely due to the challenges of the
Catch’ into the SIR system. SIRs are reviewed daily by EHS and managers across the company,
business growth and intensity level and matriculating many new employees into our safety program
and acted upon where appropriate. Employees frequently receive personal thank-you notes from
and culture. This also informs where and how we must improve. As such we plan to continue this
our executive team for their safety leadership, and submitting their observations and findings to
challenging target of <0.37 in 2022.
further preventive measures. It’s a collective, collaborative effort by everyone to keep safety
ingrained in everything we do.
We target completing an analysis and safety strategic plan in the first half of 2022, the actions
Contractor safety – Program for collaborating with contractors to keep them safe while
from which will target bringing us back on track to our improvement trend ambitions. We continue
performing their scope of work at ASMI. This includes contractor company screening, individual
to challenge ourselves every day to culturally and structurally eliminate or mitigate risks, toward
contractor training and orientation to our sites and requirements, and administrative controls, such
eliminating every incident and injury.
as safety plans and work permits. We work with contractors on our sites to ensure close
coordination through pre-task planning and site incident-prevention programs to minimize the risk
of our operations impacting their tasks, and subsequently their safety, and vice-versa.
LOOKING FORWARD
Collaboration is key to collectively improving the safety of the industry. It starts with us, but grows
Management of change – When changes occur, this set of protocols serves as a guide through
a risk assessment of the change, aimed at establishing if new or improvement safety, health, or
when seeded with engagement. We seek and engage in initiatives that strengthen collaboration
with our customers, as well as looking to build more collaboration between our own operations,
environmental protection measures and controls are necessary.
across R&D labs, production floors, and service regions. We are also focusing on strengthening
Training – Safety is not just a part of ‘safety training’. We embed it in equipment-specific training,
so it is part of the equipment maintenance and manufacturing experience, and not something that
collaboration in industry groups, including SESHA and SEMI.
is only covered by policy. We also engage every new employee around the basics of safety during
We strive to achieve ZERO HARM! and we are constantly looking for ways to further improve.
our new-hire orientation course. This is in addition to the safety training specific to working in
high-hazard areas or high-hazard conditions.
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PEOPLE - COMMUNITY
We care about the communities where we do business, engaging with them and making a positive
ASMI EMPLOYEES SHOW ‘WE CARE’ ABOUT CHILDREN’S HEALTH
More than 150 ASMI employees from Ireland, the UK, Israel, China, Singapore, the US, and the
impact. Whether individually or in teams, our people around the world show their commitment to
Netherlands joined a month-long charity event to raise money for a children’s hospital in Ireland.
community through volunteer service.
ASMI colleagues, friends and families walked, ran, cycled, and swam 50km within 31 days.
Participants completed around 7,500km of exercise as volunteers aimed to do ‘50K My Way’.
ASMI CHINA SHOWS ‘WE CARE’ ABOUT CHILD EDUCATION
ASM China employees sponsored access to equipment for online English learning and video
ASMI matched the funds raised.
meetings. Also, a group of volunteers traveled to Guizhou province to support a special three-day
In 2021, ASMI donated to Red Cross India – a non-profit organization providing humanitarian aid
program at the Yanjiao Primary School. This involved face-to-face classes and interactive activities
to victims of COVID-19 – in support of our employees with roots in India. ASMI also donated to
aimed at increasing the children’s interest in English. An ASM China charity auction held during the
Save the Children, a non-profit that provides humanitarian, life-saving relief to children.
event raised sufficient funds to pay the school fees for more than 50 children.
ASM Singapore facilitated donations by employees to the Sembawang Family Services Center
(FSC). The funds were for the purchase and distribution of food and other essential items to at
least 40 low-income families living near ASM Singapore’s Woodlands Heights operations.
ASMI employee volunteer team with Yanjiao Primary School students
50K My Way Team Donation to Children’s Health Foundation, Crumlin, Ireland
“Thanks to all the hard work by ASMI China volunteers. I hope our charity team will keep going.
“The team spirit and support from across the company has brought our core value
ASMI will consistently contribute to public welfare.” - Lai Xu, General Manager, ASM China
‘We Care’ to life,” - David Connell, Director of Service and Spares.
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COVID-19 RESPONSE
Manufacturing
ASMI was affected by the pandemic as it surged globally, through waves of community
outbreak and exposure. We monitored the potential for interruption to our product facilities,
and guarded onsite access closely. Strict protocols were in place, often going above and
beyond local requirements to minimize the risk of exposure at ASMI. We used regular testing
at our production facilities in Singapore to help ensure early detection of positive cases. When
the situation warranted it, we provided employees with temporary accommodation to mitigate
potential risk of exposure and maximize social distancing when off work.
While some employees tested positive for COVID-19, our case tracking and investigations
did not indicate likely exposure while at ASMI production sites. Our teams are proud of the
effort they made to mitigate the risk and come together to implement creative solutions to ship
orders on time – all in keeping with our culture of ‘We Care’. Our Corporate Director of Global
Manufacturing was inspired by teams’ efforts saying “A team that manages through crisis
together, learns together and stays together.”
Customers
“ A TEAM THAT MANAGES THROUGH CRISIS TOGETHER,
LEARNS TOGETHER AND STAYS TOGETHER.”
In 2021, the COVID-19 pandemic continued to impact the world in unprecedented ways.
As our customers responded to the pandemic, we worked closely with them to ensure
Every person and every company in the world has felt its effects in some way – and ASMI is
continuity of their policies and exposure controls with our employees. We also ensured
no exception. Whether it was the impact on our employees and their families, or in our own
continuity of our commitments to provide them with leading products and service. In 2020
operations, supply chain, or customers – COVID-19 has left an indelible impression.
and 2021, we were able to adjust how we support and respond to customer requirements,
As this report is written and released, we continue to take measures to minimize risk from this
challenges related to travel, as our engineering and customer support, and customer base,
virus. Within our own operations, we continue to maximize work from home as a key control
spans the globe. Border restrictions mean it may be difficult to get an expert into a country or
for those able to do their jobs remotely. For those who must come to our sites or customer or
new service team-members to an engineering center to help strengthen knowledge and skills.
supplier sites, we have robust control measures in place, including screening protocols, masks,
We continue to address the challenges and minimize the setbacks.
including improving our remote training abilities and leveraging remote expertise. There are still
social distancing, increased ventilation, and general hygiene measures.
Supply chain
We also recognize the risk of travel and continue to implement a travel restriction and approval
The impact from COVID-19 was felt at all levels of ASMI’s supply chain in 2021. Around 75%
policy. Only critical travel is approved.
of the manufacturing sites of ASMI’s direct suppliers were shut down for a period during the
year. Additionally, nearly all suppliers were impacted by lockdown-related workforce capacity
limitations. The full discussion of impact on our supply chain can be found in the section
‘Global operations’ of this report.
Global operations
Global operations
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GLOBAL OPERATIONS
ASMI’s growth and innovation have driven investment in manufacturing, supply chain, and key talent to
keep up with and stay ahead of, technology and market demands. We do all of this with sustainability
top of mind. Our focus starts with finding ways to move faster and smarter to support engineering in new
product introduction, improve efficiencies in manufacturing, and provide full supply-chain support through
the after-market. With the continuing impact from COVID-19, we are taking further steps to increase the
robustness and flexibility of our supply chain and manufacturing. We are also continuing to improve and
revise our own risk management and business continuity plans, as well as those of our supply chain.
MANUFACTURING OPERATIONS
ASMI has global manufacturing sites in Singapore, the Netherlands, and South Korea.
GLOBAL SUPPLY CHAIN
ASMI operates globally and has partnerships with suppliers in more than 20 countries across Asia,
Our manufacturing strategy is guided by a Plan of Record (PoR) process. This consists of detailed
North America, and Europe. ASMI has high expectations of suppliers around operational flexibility
analyses of all the critical parameters that will allow us to deliver tools in the most efficient manner
and responsiveness. This means working proactively with supplier partners to make sure they are
– maximizing our global footprint while aiming to be closer to our customers. Our manufacturing
able to assess and manage risks. The impact of COVID-19, global shortages, and limited labor
facilities comply with RBA Code of Conduct requirements, and have self-assessed as ‘low risk’
force, have tested this flexibility and responsiveness over the past two years.
using the RBA SAQ tool.
On top of ASMI’s new facility in Singapore, which we completed at the end of 2020, our
enable its growth and innovation. The speed and volume of product development and production
manufacturing footprint and capacity have increased steadily through initiatives such as innovative
ramps, continues to challenge the supply chain. With engineering teams located around the world,
line design, modular test expansion, and facility enhancements. Globally, ASMI will continue to
setting up improved support and faster turnaround of supply is key to feeding the innovation and
expand even more in 2022 and beyond. As announced in September 2021, we started the design
product-development engine.
In spite of the challenges, ASMI continues to strive to build a global, world-class supply chain to
work on the second manufacturing floor in our new Singapore facility, which we expect to be ready
for production in early 2023. This will further expand our capacity, and provide us with the flexibility
to deliver on our 2025 growth plans.
In addition to infrastructure and capacity expansion, improving product quality remains a top priority.
We continue to enhance quality standards by identifying risk early within production processes,
and eliminating it. This process includes the expansion of process standardization, the use of failure
mode and effect analysis (FMEA), tools, and enhanced training capabilities.
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SUPPLY CHAIN GROWTH
AUTOMATION
DEMAND
SIGNAL
STABILITY
CAPACITY
EXPANSION
PROGRAMS
IMPROVED
CHANGE
MANAGEMENT
CAPABILITY
Automation, demand signal stability,
capacity expansion programs,
and improved change-management
capabilities.
TOWARDS BUILDING A RESPONSIVE SUPPLY CHAIN
ASMI continues to invest in its supply chain systems and business processes to improve
added subject-matter experts (SMEs), who define supplier roadmaps in key technology areas.
The supplier development (SDE) and supplier quality engineering (SQE) teams continue to expand
responsiveness to the continuously changing needs of our customers. Increased speed,
globally, adjacent to both supplier and customer sites. All three teams work to ensure that a ‘quality
responsiveness and flexibility in the supply chain is critical to our growth and differentiation
first’ mindset is designed into our products and processes.
in the marketplace. We have four main strategies in place to drive agility in our supply
chain: automation, demand signal stability, capacity expansion programs, and improved
Supplier engineering and supply chain teams seek partners to meet our future technical challenges
change-management capabilities.
together. After selection, suppliers are trained to document and share manufacturing processes
to minimize part-to-part variability, while scaling to meet ASMI’s growth. Focus areas for suppliers
In 2021, ASMI continued to roll out its supplier collaboration tool, ASCENT, to more suppliers. The
continue to be technical capability, capacity flexibility, and commercial commitment.
tool is currently in use by suppliers that cover 80% of our spend. The plan is to complete the roll-out
to all direct material suppliers by the end of 2022. The ASCENT platform drives automation and
SUPPLY CHAIN SPEND BY REGION
digitalization of our supplier communication. This will allow us to dramatically scale our business
without significantly increasing resources. In 2021, ASMI also began to implement the advanced
planning and forecasting system, FERP. This will allow us to dampen the demand variability that we
pass onto our suppliers. The system will make it easier for them to respond to demand changes,
while improving the stability and level loading of their production lines. In 2022, the target is to
complete the roll-out of the FERP system to all targeted suppliers.
Another critical tool that ASMI kicked off in 2021 is the long-range capacity planning tool for critical
suppliers and commodities. The tool enables ASMI to identify capacity gaps and develop plans
to address them ahead of time. It does this by leveraging long-range market projections, and
translating them into longer-term supplier needs.
SUPPLIER DEVELOPMENT AND PERFORMANCE MANAGEMENT
ASMI’s supplier engineering team is committed to total quality, while accelerating product
commercialization through supply-base development. A new supplier technology (STE) team has
5%
EUROPE,
MIDDLE EAST,
AFRICA
18%
NORTH
AMERICA
77%
ASIA
PACIFIC
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COVID-19 IMPACT ON SUPPLY CHAIN
The impact of COVID-19 has been felt across all levels of our supply chain. In 2021, around 75%
SUPPLIER DAY AND CELEBRATING SUSTAINABILITY
On November 2, 2021, we hosted a virtual Supplier Day, inviting key suppliers from across the
of the manufacturing sites of ASMI’s direct suppliers were shut down for a period. Also, nearly all
globe to join the event. Our annual Supplier Day gives us an opportunity to share ASMI’s business
suppliers were impacted by limitations on reduced workforce. There were efficiency losses due to
strategies and priorities. It includes a focus on technology, quality, sustainability expectations, and
protocols on social distancing, working hours, disinfectant protocols, movement-control restrictions,
growth. For ASMI to continue to be successful, these are key areas for suppliers to understand
and work-from-home mandates.
and support. During the event, suppliers heard from members of ASMI’s leadership team, including
our CEO and key members of the executive team, on how to shape better relationships between
Recovery from pandemic shutdowns has been slow. In many areas, ASMI is still working with
companies. We also presented three awards, recognizing suppliers for their performances and
suppliers on recovery plans and prioritized deliveries, and providing support in ramping operations.
outstanding support:
We are fortunate to have a global supply base across more than 20 countries. This means that while
the impact of the pandemic was severe at times, the natural spread of the virus across the globe
did not cause a full-scale shutdown at any point.
Kawasaki Heavy Industries
VDL Enabling Technology Group
Song Tat Precision
The impact of COVID-19 has also complicated supplier-delivery performance deep into supply
ASMI is committed to collaborating with suppliers to increase the impact of sustainability initiatives
chains that were previously not as actively managed – from raw materials to simple off-the-shelf
and recognize their success. For instance, these initiatives may address the climate crisis, human
components and capital equipment needed for expansion. The ripple effects of these shortages
rights in the supply chain, as well as other important social topics and safeguards. In 2021,
and constraints put further pressure on suppliers to deliver.
ASMI introduced its PRISM Sustainability Award, including Leadership and Innovation categories.
The winners of the inaugural 2021 ASM PRISM Sustainability Award in Supply Chain were:
Early on in the pandemic cycle, ASMI was proactive in working with suppliers to understand its
impact, increasing purchase-order coverage, staying close to suppliers, and securing critical
Leadership - XP Power
Innovation - CEVA Logistics
parts. We also established a real-time COVID-19 impact reporting system to monitor the impact of
shutdowns and local restrictions. Due to these measures, ASMI has for the most part continued to
deliver on customer demand for tools throughout 2021.
Sustainability
Supply Chain - Innovation
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RESPONSIBLE AND SUSTAINABLE SUPPLY CHAIN
Ensuring a responsible and sustainable supply chain is a key focus of our overall sustainability
program. Our priorities include: Health & safety, Net Zero, helping ASMI improve the energy and
resource efficiency of its products, and human rights.
Health & safety – Extending ASMI’s vision of ZERO HARM!, and its intensive commitment to
safety, we expect our critical and strategic suppliers to have a robust safety program, culture, and
results. As such, we have communicated this expectation to our key suppliers and intend to set
safety-performance targets for these suppliers, which is intended to set an industry standard.
Read more in the ‘People’, ‘Health and safety’ section.
Net Zero – To support ASMI in achieving its Net Zero by 2035 target, we intend to collaborate
with suppliers to address our own and their environmental footprint, to accelerate progress and
achieve impact beyond each other’s individual scale. Key priorities will include working together to
measure and address our Scope 3 emissions, encouraging our suppliers to maximize their use of
energy from renewable sources, setting their own ambitious Net Zero targets, and disclosing their
environmental performance through CDP. Read more in the ‘Planet/Net Zero’ section.
Product environmental footprint – Improving the energy and resource efficiency of ASMI
Critical supplier responsibility strategy
PHASE 1
Risk
assessment
PHASE 2
Self-
assessment
questionnaire
(SAQ)
RBA
CODE OF
CONDUCT
PHASE 3
Auditing/
corrective
actions
products is one of our key product-development priorities. But we know we cannot achieve our
The RBA online platform has strict criteria for scoring SAQs for supplier risk-level. Suppliers that
ambitions alone. We are collaborating with our supply chain, as a key component of our global
complete the RBA SAQ and self-assess as high risk are required to complete a corrective action
innovation network, to maximize innovation and impact to benefit our customers and the
plan, and may be audited. In 2021, ASMI had no suppliers rated high risk.
industry overall. Read more in the ‘Innovation and products’/’Product lifecycle management’
section.
Human rights – We care about the ethical treatment of people throughout our supply chain.
SUPPLIER EXPECTATIONS
We communicate our expectations to our suppliers, with a particular focus on our critical and
We strive to identify and address the key risks, wherever and however they may exist, as further
strategic suppliers that represent the majority of our 2021 spend. This approach manages our
discussed below.
supply chain risks by focusing on the primary areas of material origin and spend.
SUPPLY CHAIN CODE OF CONDUCT
Our supply chain code of conduct is the foundation of our efforts. We hold our suppliers to the same
high standard as ourselves, requiring their commitment to and compliance with the Responsible
Business Alliance (RBA) Code of Conduct. Critical and strategic suppliers are required to commit
to the code, and complete the RBA self-assessment questionnaire (SAQ) to assess and provide
evidence of their compliance biennially through the RBA-Online platform. Our process for managing
code commitment, supplier self-assessment, auditing, and corrective action is consistent with
RBA requirements. In 2021, 100% of our critical and strategic suppliers committed to the code and
98.7% completed the RBA self-assessment questionnaire (RBA SAQ).
We expect our critical and strategic suppliers to commit to:
RBA Code of Conduct
ASMI Corporate Responsibility policy
ASMI Code of Business Conduct
ASMI Intellectual Property policies
Ensuring a safe working environment, including a Recordable Case Rate (RCR) target
Support of ASMI Net Zero 2035 target
Innovation to support ASMI product energy and resource efficiency improvement
Conflict materials identification and disclosure
Global trade compliance and export controls
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HUMAN RIGHTS
Ensuring the protection of human rights is a critical element of our code. We are committed to
maintaining and improving our systems and processes to assure respect for human rights related to
ASMI was an early signatory of the Women’s Rights and Mining statement on gender-responsive
due diligence and human rights of women in mineral supply chains.
our own operations, supply chain, or products. We are increasing due diligence and management
We joined and are actively engaged in the widely recognized Responsible Minerals Initiative
controls to identify, assess, and address human rights-related risks and potential impacts. ASMI is
(RMI), including to extend supply chain due diligence measures to other minerals, such as cobalt
co-leading efforts in the newly formed RBA Living Wage Task Force to provide the necessary due-
and mica. The RMI brings together the electronics, automotive, and other industries to improve
diligence processes and infrastructure to ensure workers in our supply chain receive a living wage.
conditions in the extractives industry.
The protection of human rights has been fundamental for ASMI and an important aspect of the
RBA Code of Conduct and the introduction of our Global Employment Standards. We stand against
FORCED LABOR/BONDED LABOR
We also go beyond the RBA Code, to map our contract manufacturer labor-sourcing process to
any form of forced or bonded labor, human trafficking, and all forms of human rights abuses.
prevent forced and bonded labor (FLBL). In 2021, we reviewed our FLBL mapping for COVID-19
impacts on the migrant labor-sourcing practices of our contract manufacturers. We found that
In 2021, we had no reports or evidence of human rights violations or abuses within our global
migrant labor programs had been suspended due to restrictions on employee travel. We continue
supply chain.
to monitor the situation and will update maps and due diligence as travel restrictions may ease
in 2022. To date, no forced or bonded labor has been identified with our contract manufacturers
RESPONSIBLE MINERALS SOURCING
Conflict minerals are those minerals mined in the Democratic Republic of Congo (DRC) or adjoining
through our initiatives.
countries. Profits from the sale of these minerals may directly or indirectly benefit those involved in
rebel conflicts and human-rights violations. These minerals and the metals created from them – tin,
SUPPLY CHAIN DIVERSITY
ASMI is actively engaged in the SEMI MOD workgroup, which has engaged participation from all
tantalum, tungsten, and gold – can make their way into the supply chains of products used around
aspects of SEMI membership. The SEMI MOD workgroup commits to increasing the number and
the world, including the semiconductor industry. As a responsible member of the global community,
overall impact of diverse owned and operated companies serving the semiconductor industry.
we are committed to preventing such human-rights violations.
In 2021, ASMI increased its commitment to diversity of supply by forming a committee focused
We require our critical and strategic suppliers to source tin, tantalum, tungsten, and gold (3TGs)
supplier selection and qualification process. Through these efforts we are seeking to increase our
responsibly, and to use certified, conflict-free smelters from recognized certification organizations.
spend with diverse owned and operated companies.
on increasing supply chain diversity. We also added diversity-ownership requirements to our new
Our goal is to trace 3TG sourcing, ensure the use of certified conflict-free smelters, and confirm that
our sourcing funds do not finance conflict in the covered countries.
We conduct due diligence based on Organisation for Economic Co-operation and Development
(OECD) guidance, and detailed data verification with identified suppliers’ smelters, This process
establishes traceability to the smelters. It also confirms that they are on the validated conflict-free
smelters (CFS) list published by the Responsible Minerals Initiative (RMI). This helps us ensure that
the products and components we source are free of DRC conflict minerals.
Current information on our policy and due diligence process can be found on our website in
the Supply chain section under Corporate responsibility.
Sustainability
Sustainability
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SUSTAINABILITY
At ASMI, sustainability is about understanding our impact and increasing our value as an integral
part of our business strategy. We engage with stakeholders to assess and understand our impact
on society. Aligning our strategy and sustainability focus with their priorities, we strive to maximize
long-term value creation.
LONG-TERM VALUE CREATION AND IMPACT
In this section, we provide an overview of our sustainability focus areas that are aligned with and
ASMI ESG HISTORY
responsive to our stakeholder priorities – all with our focus on delivering long-term sustainable value
ASMI’s sustainability journey started in earnest in 2012, with first coverage in our annual
creation, and striving to make a positive impact in the world.
report. We committed to what is now the Responsible Business Alliance (RBA) Code of
Conduct and set our first multi-year targets for GHG emissions, water conservation, and
As sustainability is integral to our business, you can find a more detailed discussion of these focus
solid waste diversion.
areas in the appropriate sections of this report, that build on this overview.
From the foundation of progress built in previous years, in 2020 we focused on developing our
and priority topics. These included building our safety program toward our vision of
sustainability priorities for the next horizon, building the internal engagement and commitment,
ZERO HARM!, progressively ensuring compliance with the RBA Code of Conduct, and
meaningful engagement with our stakeholders, an assessment of our capabilities and progress,
extending the RBA Code to our supply chain. From 2014 through 2016 we published
and assembling the network of partners needed to accelerate progress. Our updated materiality
dedicated Corporate Responsibility Reports.
assessment, the UN Sustainable Development Goals, and company strategy inform our
sustainability focus areas for the next horizon – 2021-2025 and beyond. The plan was reviewed with
In 2015, we set our 2016-2020 objectives with an environmental focus: furthering
our Senior Management Team, and approved by the Management Board and Supervisory Board.
GHG emissions reduction; water conservation, solid waste diversion, and that any
These focus areas reflect ASMI’s ambition to create sustainable, long-term value and increase our
new facility exceed local energy-efficiency standards.
In these early years, we also built a foundation for further progress, addressing key policy
positive contribution to the world.
For 2017, we moved our CR disclosure back into our annual report, towards a goal of
integrated reporting, with further progress continuing in this report.
In 2019, we set our ambition for a big step forward in our sustainability focus. Our 2019
employee survey revealed that 98% of employee respondents said ‘ASMI’s commitment
to sustainability is very important to me’, and 58% said ‘I want to help’.
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SUSTAINABILITY FOCUS AREAS
Our sustainability focus areas are: innovation, people, planet, responsible supply chain, and
sustainability governance. Each focus area and its priorities are further described below,
and more information can be found in the respective chapters/sections in this Annual Report.
INNOVATION
PEOPLE
Innovation is our DNA. Through our technology, which is our greatest
contributor to society, we bring our innovation DNA to the challenges
and opportunities of sustainability.
We strive to enrich the lives of everyone we engage with, and make
a positive, enduring impact in our communities, industry, and society overall.
Safety – The safety of our people, and everyone in our value chain, is of paramount importance.
Product environmental footprint – Our technology contributes to our industry and society overall,
Our aim is to be safety leaders and influence improvements across the industry. We strive to deliver
but it also has a significant environmental impact. This lies in the energy and resource consumption
safe products to our customers, and collaborate to make sure shared work environments are safe.
of our products – both in our own operations and especially in our customers’ fabs across its often
20+ year useful operating life. This is an important sustainability factor for our customers, as a key
Our team - We strive to unleash everyone’s potential at ASMI, and to enable each employee to
source of their Scope 1 and 2 GHG emissions and their operating cost. For ASMI, it is a significant
build and establish a long-term and sustainable career we are focused on four areas: Strengthening
component of our Scope 3 GHG emissions. Thus, we are focused on improving the energy and
our Culture, Growing Engagement, Leadership & Development, and Inclusion & Diversity.
resource efficiency of our products.
Product safety innovation – A semiconductor fab is a highly complex system, with many potential
where we do business is a significant opportunity to make a positive difference, and enhance our
and serious hazards. It relies on compliance to equally complex design standards, operational
license to operate. It is also a key expectation of and motivation for our employees, as they want
controls, and many other factors to ensure safe operation. The controls have considerable risk and
to be part of a broader cause. Participating in such activities can play a powerful role in employee
operational impact. We see opportunities to innovate that can significantly reduce risk and improve
team-building, retention, and attracting new employees.
Community, industry, and society impact – Engaging with and contributing to the communities
the fab operational impact of ensuring safety.
We also recognize the opportunity to make an enduring positive impact to our industry and society
overall by participating in and collaborating on important opportunities.
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PLANET
The world needs commitment from all levels of society in addressing the
environmental issues facing our planet. Our actions today decide the future
of tomorrow. It is from this principle that ASMI is working collaboratively
to take action today.
Net Zero – We recognize the importance of the climate crisis to all stakeholders. Accordingly,
our carbon footprint is a priority in ASMI’s sustainability strategy. In September 2021, we set an
ambitious target of Net Zero 2035. Collaboration across our value chain is a requirement in achieving
this goal.
Climate adaptation – We recognize the importance of climate change and the potential risks and
opportunities it can represent, now and into the future. As such, it is important to carefully assess
Environmental footprint – Our supply chain is a substantial portion of our Scope 3 emissions, and
we must all work together to address the climate crisis. We intend to collaborate with our supply
chain to address our environmental footprint. This includes collaborating and innovating to address
the challenges of improving the energy and resource efficiency of our products.
Human rights – We are committed to protecting human rights throughout our supply chain.
We strive to identify and address the key risks, wherever and however they may exist.
SUSTAINABILITY GOVERNANCE
We are connected and responsive to our stakeholders. We are building
sustainability into our governance structure and systems.
the climate adaptation risks and opportunities for our business, from which we can determine
Disclosures and assurance – Our stakeholders place a high priority on the transparency and
priorities and plans to address them.
RESPONSIBLE SUPPLY CHAIN
Our suppliers are our partners in progress. More than just supporting
our business, we share values and opportunities. We are progressively
expanding the sustainability expectations for our suppliers, and will grow
to accelerate progress and amplify impact beyond our individual scale.
Safety – We hold our supply chain to the same high standards as we do ourselves. This includes
extending our vision for ZERO HARM! to our supply chain partners.
integrity of our disclosures, and their trust is of paramount importance. A considerable portion of
our Annual Report contains non-financial and sustainability-related information. We expect that
assurance of non-financial information will become a requirement in the future. As such, starting
with this report, key non-financial aspects receive limited assurance.
Cybersecurity and intellectual property (IP) protection – Assuring robust cybersecurity and
IP protection is critical to protect our business and the trust of our partners and stakeholders.
Protecting our computer systems and networks is vital to our business operations and continuity.
These threats and risks are rapidly becoming more sophisticated and intense.
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INFORMING OUR FOCUS
Our sustainability focus areas and priorities were informed by meaningful engagement with our
stakeholders through our materiality assessment and ongoing stakeholder engagement, and the UN
Sustainable Development Goals.
MATERIALITY ASSESSMENT
To best inform our future focus areas, we conducted a significant update of our materiality
assessment, guided by an expert third party. Our process follows the sustainability materiality steps
and matrix based on the Global Reporting Initiative’s (GRI) G4 sustainability reporting framework.
Stakeholders engaged include: key investors, top customers, our employee ‘Thought Leader’
group, key suppliers, and engaged NGOs. The process included peer-group benchmarking.
The collected inputs were initially reviewed and prioritized in a workshop with key employees
facilitated by the expert third party. This output was then finalized with the Management Board,
resulting in the materiality analysis presented here.
H
G
H
I
N
O
I
S
I
C
E
D
R
E
D
L
O
H
E
K
A
T
S
N
O
E
C
N
E
U
L
F
N
I
W
O
L
Human capital
Planet and
climate
Energy management
Inclusion &
diversity
Water
Waste
management
Cybersecurity and IP protection
Community/industry/
society impact
Human rights
Health & safety
Responsible
supply chain
Circularity
Ethics
Corporate
governance
Disclosures
Innovation
Product
sustainability
Product safety & quality
Emerging regulations
Climate risk & opportunity (TCFD)
LOW
IMPACT ON ESG
HIGH
Environmental
Social
Governance
Priority
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STAKEHOLDER ENGAGEMENT
Stakeholder
How we engage
Our applicable focus areas
Customers
We engage directly with our customers on
important issues through recurring meetings
and development sessions
We have direct innovation engagement
to enable customer roadmaps
Innovation
Planet
People
Responsible supply chain
Included in materiality
assessment
Yes, desktop research
Progress in 2021
Resulting strategy changes
Key Innovation successes
Customer recognition
Continued partnership in key customer
sustainability leadership program
Safety Leadership Collaborations with
key customers
Climate strategy
Employees
Quarterly CEO led all-employee meetings
and open Q&A
CONNECT all-employee dialog intranet site
Engagement and other key topic surveys
Safety culture survey of service, R&D labs,
and manufacturing employees
Investors
Direct engagement discussions
Responsive to their sustainability
questionnaires and ESG ratings
Suppliers
Executive and commodity manager
engagement
Annual Supplier Day
Direct interviews
NGOs
NGO engagement letters
Direct engagement sessions
CDP Climate and Water Security disclosure
People
Planet
Innovation
Yes, through direct
surveys with all
employees and thought
leader surveys
Significant increase in leadership and
employee dialog through CEO led
all-employee meetings and through
CONNECT intranet communication
High safety risk work areas
strategic plans
Engagement pulse survey and engagement
plans and progress
Service, lab, and manufacturing safety plan
very high response rate
Yes, direct engagement
sessions
Responsive to key investor inquiries
Engagement in key ESG ratings
(See ‘ESG ratings’)
Comprehensive sustainability
plan informed
Climate strategy
Yes, direct engagement
sessions
Two suppliers received inaugural PRISM
Sustainability Award - Supply chain, Innovation
and leadership categories
Supplier Day sustainability focus
Yes, desktop research
and recurring
engagements
Invited to influence key NGO future priorities
CDP Climate and Water Security scores
Net Zero target
Climate adaptation risk
improved from C to B
Innovation
Planet
People
Responsible supply chain
Governance
Innovation
People
Planet
Responsible supply chain
Governance
Planet
People
Responsible supply chain
Industry
consortiums
R&D partnerships such as imec and
University of Helsinki
Industry associations include SEMI and SIA
memberships, and SESHA (board seat)
Responsible Business Alliance (RBA) members
Innovation
People
Planet
Responsible supply chain
Governance
Yes, desktop research
and active engagement
in committees and
working groups
Significant innovation progress through
R&D consortia
SESHA strategic direction through board seat
Actively engaged in Living Wage, RMI,
and other RBA efforts
Communities
Employee volunteering and contributions to
local communities
People
Planet
Governance
No
See ‘Community’ section
and opportunity assessment
Diversity & Inclusion focus
and targets
Responsible supply chain
Expanded innovation network
Safety strategic plan
Sustainability strategy Human
Rights priority topic
Sustainability strategy Community,
Industry, Society engagement
and impact as a priority
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Below are the seven United Nations Sustainable Development Goals (SDGs) we have selected, to guide and align our efforts and
ambitions with:
UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGs)
Actions by ASMI
SEE SECTION
Achieve gender equality and empower all women and girls
5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels
of decision-making in political, economic, and public life
5.6 Enhance the use of enabling technology, in particular information and communications technology,
to promote the empowerment of women
Established employee resource group “ConvERGe”
We launched the strategic target to increase women working
at ASMI from 15% in 2021 to 20% in 2025
Provides training during International Women’s Day (IWD) events
through virtual learnings, and promotes ASMI women in leadership
through our communication platform Connect and in social media
People
People
Ensure access to affordable, reliable, sustainable, and modern energy for all
7.2 By 2030, increase substantially the share of renewable energy in the global energy mix
7.3 By 2030, double the global rate of improvement in energy efficiency
Promote sustained, inclusive and sustainable economic growth, full and
productive employment, and decent work for all
100% renewable electricity procurement by 2024 with focus on
high-quality EACs that bring additionality to markets when available
Sustainability
ASMI enables this through our innovation and support
of customer roadmaps
Innovation
and products
8.7 Take immediate and effective measures to eradicate forced labour, end modern slavery and human
trafficking, and secure the prohibition and elimination of the worst forms of child labour, including
ASMI engagement with supply chain on force labor/bonded labor
(FLBL) mapping and initiatives
recruitment and use of child soldiers, and by 2025 end child labour in all its forms
8.8 Protect labour rights and promote safe and secure working environments for all workers, including
migrant workers, in particular women migrants, and those in precarious employment
ASMI engagement with supply chain on force labor/bonded labor
(FLBL) mapping and initiatives
Global
operations
Global
operations
Build resilient infrastructure, promote inclusive and sustainable industrialization
and foster innovation
9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased
resource-use efficiency and greater adoption of clean and environmentally sound technologies and
industrial processes, with all countries taking action in accordance with their respective capabilities
ASMI's continued investment in modernizing its infrastructure,
including with recent upgrades and investment in operations and
infrastructure in South Korea and Singapore
Global
operations
9.5 Enhance scientific research, upgrade the technological capabilities of industrial sectors in all
ASMI's core focus everywhere we operate
countries, in particular developing countries, including, by 2030, encouraging innovation and
substantially increasing the number of research and development workers per one million people,
and public and private research and development spending
Innovation
and products
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UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGs)
Actions by ASMI
SEE SECTION
Reduce inequality within and among countries
10.2 By 2030, empower and promote the social, economic and political inclusion of all, irrespective
Renewed Business Code of Conduct, including enhanced focus on
People
of age, sex, disability, race, ethnicity, origin, religion or economic or other status
inclusion & diversity (I&D), career development opportunities of
10.4 Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve
greater equality
female leadership, and benchmarking living wage levels globally
Adoption of Global Employment Standard (GES) including social
protection policies. Active monitoring of gender pay ratios, living
People
wage levels, and CEO pay ratio, and transparency of these in our
Annual Reports
Ensure sustainable consumption and production patterns
12.2 By 2030, achieve the sustainable management and efficient use of natural resources
Wood crate responsible wood source and certification policy
Sustainability
12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout
ASMI waste minimization and management protocols,
Sustainability
their lifecycle, in accordance with agreed international frameworks, and significantly reduce their
including objectives to eliminate all hazardous waste to landfill, and
release to air, water, and soil in order to minimize their adverse impacts on human health and the
implementation of air emission control devices on process modules
environment
12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse
ASMI waste minimization and management protocols,
Sustainability
including objectives to eliminate all hazardous waste to landfill, and
implementation of air emission control devices on process modules
12.6 Encourage companies, especially large and transnational companies, to adopt sustainable
ASMI annual and sustainability reporting, including CDP
Sustainability
practices and to integrate sustainability information into their reporting cycle
Take urgent action to combat climate change and its impacts
13.2 Integrate climate change measures into national policies, strategies and planning
100% renewable electricity procurement by 2024 with focus on
Sustainability
high-quality EACs that bring additionality to markets when available
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PLANET
Our commitment to help fight climate change and care for our planet – one of our five sustainability
focus areas – means we take steps to reduce greenhouse gas (GHG) emissions, use water and
ASMI’s next steps in its Net Zero by 2035 target will be:
ASMI has completed a detailed study of its Scope 2 emissions with the assistance of a recognized
external expert. Based on this, we will source 100% of our electricity from renewable sources for
other resources responsibly, and limit waste production. Reducing our environmental footprint goes
all our global operations from 2024 onwards;
hand in hand with steps towards a circular business model. In this section of the report, we provide
information on progress made towards achieving these environmental targets.
Innovating for the future should not come at its own cost. Our technologies will help people live
better, tackle challenges, and connect like never before. We aim to enable this by playing our part
today to make tomorrow’s world worth living in.
We intend to align our target to the Paris Agreement 1.5°C pathway;
Size ASMI’s Scope 3 footprint and set a target for all scopes before the end of 2022;
Accelerate the further energy and resource efficiency-improvement of our products;
Provide further interim goals on the pathway to Net Zero; and
Develop an emissions compensation and neutralization strategy to address residual emissions.
The issues facing our planet require bold and collaborative action from all companies, governments,
RENEWABLE ELECTRICITY
ASMI’s first major step toward Net Zero is reducing our Scope 1 and Scope 2 emissions. In 2021,
and society. In 2016, ASMI set objectives for 2020 in important areas relevant to our impact:
for our six key sites, our renewable electricity market-based purchases reduced our location-based
greenhouse gas emissions, water withdrawals, solid waste disposal, and responsible construction.
Scope 2 GHG emissions by 70%. Our aim is to source 100% of our electricity from renewable
Those were a starting point for our future ambitions below. We aim to collaborate across all
sources for all of our global operations by 2024, with the following path to that goal:
industries to bring faster and more meaningful change to the environmental challenges facing
Source 100% of electricity from renewable sources for key sites in the United States, the
the world today.
Netherlands, Finland, Japan, and Singapore, from 2021 onwards. Relative to its 2020 baseline,
this represented a 67% reduction of ASM Scope 1 and 2 GHG emissions.
CLIMATE
Climate change is a risk the whole planet is facing together. It presents extreme weather events,
Source 100% of electricity from renewable sources for the remainder of global operations from
2024 onwards. Relative to its 2020 baseline, we estimate this will represent an estimated 90%
habitat and biodiversity loss, increased risk of more frequent pandemics, among other global
reduction of ASMI Scope 1 and 2 GHG emissions.
impacts. It also poses increasing risks to ASMI and its stakeholders, including the supply chain.
We recognize these risks and are taking action to do our part to mitigate them.
ASMI achieved its 2021 goals through market-based electricity purchases of high-quality Energy
NET ZERO
In 2021, ASMI announced its target to achieve Net Zero emissions by 2035. This includes setting
Attribute Certificates (EACs). The market-based method uses contractual arrangements where
electricity is procured from specific sources, instead of a location-based approach of procuring
energy available from local grids only. ASMI targets the procurement of high-quality certificates,
targets for Scopes 1, 2, and 3 GHG emissions, with the aim of reducing emissions as near to zero
intended to focus on in-market sourcing and focused on providing additionality, which means the
as possible. We aim to further conserve energy use, maximize the use of renewable electricity, and
funds contribute to the continued growth of renewables capacity in the markets where we operate.
neutralize remaining emissions.
As the climate crisis transcends the actions of any one company, industry, or country, we look
to collaborate across our value chain for a collective global impact. We strive to embody high
standards in the definition, scope, transparency, and realization of this target.
In 2021, the purchases included the following types of EACs by region:
Europe – the Netherlands and Finland - 100% in-market EU GoOs and EKOenergy labeled wind
United States – 100% in-market Green-e Renewable Energy Certificates (RECs) of wind
Singapore – 92.5% in-market TIGRs of solar, and 7.5% from Thai Gold Power Solar
Japan – 100% in-market J-credits of renewable biomass
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Currently, ASMI is not subject to any energy regulations or policies, including any that would restrict
Greenhouse gas (GHG) emissions
our renewable electricity purchases.
(Scope 1 and 2* emissions and normalized per R&D investment)
ASMI operates a key facility in South Korea, where the renewable electricity market recently opened
and is developing. We are monitoring this market carefully in relation to our 2024 target to power our
South Korean location, in the event it becomes feasible to meet this target earlier.
We included our global service and sales offices in our 2024 target, and are also evaluating if or how
we may address these locations earlier.
GHG EMISSIONS
Purchased electricity and its indirect GHG emissions are only a part of our overall emissions
inventory, yet they account for a significant portion of our Scope 2 emissions potential. Continuing to
move towards a Net Zero objective requires a full understanding of all emissions.
300
250
200
150
100
50
181
158
196
156
240
250
159
145
300
250
200
150
100
50
83
41
2017
2018
2019
2020
2021
Greenhouse gas emissions (mtCO2e - Scope 1 + 2, x100)
Intensity of mtCO2e/million € R&D spend
* 2021 Scope 2 emissions presented are based on the market-based method
At ASMI, our GHG emissions are attributable to the following:
response is contributing to reducing the risks of further biodiversity impacts.
broader regions that have an impact on the biodiversity of our planet as a whole. Our climate
Scope 1 – Chemical and by-product emissions such as NF3; fuel from onsite heating and
abatement units; fuel from emergency generators
Scope 2 – Purchased electricity; district heating in limited locations
Scope 3 – A full inventory will be conducted in 2022; this will include applicable
upstream/downstream sources
CLIMATE ADAPTATION
ASMI has started its journey toward alignment with the Task Force on Climate-Related Financial
Disclosure (TCFD), an initiative created by the Financial Stability Board. This is ASMI’s first alignment
toward TCFD disclosure, reflecting our actions and processes as of December 31, 2021. We aim to
provide a full TCFD disclosure in the future.
In calculating the related emissions of these sources, for 2021 the emission factors used for
calculating our Scope 1 and Scope 2 (location-based) emissions were sourced from the IEA and
Governance - Climate adaptation response
the US EPA.
The Management Board has final responsibility and approval of ASMI’s ESG and sustainability
strategy, including climate targets and related matters. The Management Board has tasked the
In 2021, we achieved a 66.5% reduction in our Scope 1 and Scope 2 (market-based) GHG
Corporate Vice-President of Sustainability to provide input on ESG and sustainability strategic
emissions from our 2020 baseline, versus our estimate of 70%. This was the result of both
matters, including matters regarding climate change. On a quarterly basis, the Corporate
our increase in use of renewable electricity, from 9.9% to 75.6% globally, as well as a reduction
Vice President of Sustainability reviews the organization’s environmental (which includes climate-
in our Scope 1 emissions. We still aim to reduce our Scope 1 and 2 emissions by 90% from
related) strategy, policies, performance against agreed major plans of actions, and specific KPIs,
the 2020 baseline by 2024.
and reports the findings to ASMI’s Management Board. The Senior Director Global Environmental,
Health and Safety/Sustainability (reporting to the Corporate VP of Sustainability) is responsible for
We have assessed that our climate response is also our greatest contribution to protecting the
identifying, creating, and managing environmental goals, targets, and policies, including matters
biodiversity of our planet. We have previously assessed that while Singapore is within the greater
involving climate change. Climate-related risks and opportunities are included in the risk mapping,
Sundaland Biodiversity Hotspot, we have not identified any sensitive biodiversity areas adjacent
and reviewed as part of the periodic reviews of risks and opportunities identified at corporate level
to our facility, nor near any of our facilities worldwide. We recognize that climate change impacts
by the Enterprise Risk Committee.
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Strategy - Assessing climate risk and opportunity
We will assess the findings of the analysis of both physical and transition risks in 2022, and use them
In addition to the environmental risks and processes identified and disclosed previously in ASMI’s
to develop action plans to mitigate or adapt to climate-related risks.
2020 Annual Report, and in alignment with the recommendations of the TCFD, a climate-scenario
analysis is being conducted to better understand ASMI’s exposure to climate change. For this, ASMI
Risk management
is implementing a process called climate-adaptation risk and opportunity assessment (CAROA).
The overall approach of ASMI to risk management and a summary of the top risks identified can be
Within this process, ASMI intends to routinely identify, assess, and manage its top physical and
found in the ‘Risk management’ section. We will continue to include climate-specific risk assessments
transition climate risks and opportunities:
and mitigation activities into the risk elements for consideration in the centralized company risk
Physical risks
The goal is to assess the risk of various physical hazards likely to be exacerbated by climate
Metrics and targets
management framework.
change, and have an impact on ASMI or its value chain. These hazards are analyzed under a ‘4°
As one of the key pillars toward TCFD disclosure, ASMI has developed metrics and targets related
scenario’ Representative Concentration Pathway (RCP) 8.5 climate scenario, and for two time
to climate. As noted earlier in this report, our target to achieve Net Zero by 2035 is a cornerstone of
horizons: a medium-term (2030) and a long-term (2050). It is important to identify key regions
our response to climate impact, with an interim objective to source all renewable electricity across our
and hazards important for ASMI. For this, the nine most important countries based on revenue
operations by 2024. Within that plan are additional steps in 2022 and 2023 to progressively meet the
per region, and a number of facilities and employees, were included in the analysis. These are the
renewable electricity target and achieve an estimated 90% absolute reduction in our Scope 1 and 2
Netherlands, Belgium, Finland, Japan, South Korea, Taiwan, China, Singapore, and the United
GHG emissions by 2024.
States. Within these countries, the most relevant hazards for ASMI are being identified. They include
water scarcity, drought, heavy snow, heavy precipitation and flooding, heat waves/extreme
Next steps
temperatures, tropical storms and sea level rise, and coastal flooding.
We intend to disclose the results of the climate scenario analysis and the corresponding financial
impact assessments in our 2022 Annual Report. ASMI will establish the CAROA process as an
From a financial perspective, at this stage we have not identified any current physical risks that have
ongoing business activity to continuously enable further transparency and alignment on TCFD climate-
a material impact on our current accounts and disclosures, including judgements and estimates in
related disclosure. ASMI aims to continue to integrate climate-related risks into its risk management
the financial statements.
Transition risks
framework. In 2022, ASMI strives to size its Scope 3 footprint and aims to set science-based targets
for all scopes aligned with the Paris Agreement 1.5°C pathway.
The objective of the transition risk analysis is to identify the risks and opportunities that may arise
for ASMI in these main areas: policy and legal, technology, market, and reputation, in the context of
OTHER EMISSIONS
Consistent with our environmental policy, we also place significant focus on improving all emissions
the transition to a low-carbon economy. For this assessment a ‘rapid transition’ scenario, whereby
associated with our operations. ASMI equipment, which is installed and used in our R&D labs globally,
warming is limited to below 2°C (in line with IEA SDS and other scenarios where relevant), is being
generates effluents that must be treated or removed from releasing to the air. This includes non-GHG
used considering short (0-5 years) and medium-term (2030) time horizons. Five transition risks and
emissions, such as particulates or volatiles. ASMI has stringent air-quality permits and criteria
opportunities are being assessed, including 1) stricter regulations on the reporting and reduction
that we are required to meet, and are continuously driving initiatives to improve our performance.
of fluorinated GHG emissions; 2) changes in carbon-pricing schemes; 3) mandatory compliance
At sites where we operate and permits are not required, we strive to use the best-known methods
on measuring and reporting GHG emission; 4) improvements in energy efficiency in buildings; and
to help ensure our abatement equipment is operating at peak performance to minimize emissions.
5) failure to respond or communicate climate-related product issues.
We closely monitor emissions and efficiencies of the air-abatement systems, which remove GHG and
non-GHG effluents from gas exhaust. We engage outside consulting experts to help guide us with
the best-known technologies in abatement for the processes we develop.
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CARBON DISCLOSURE PROJECT (CDP)
WATER
Ecosystems depend on clean and available water. Our communities in high water-stress regions
Founded as the Carbon Disclosure Project, and with its first report published in 2003,
expect access to clean and sustainable supplies of it.
CDP has evolved to become the trusted environmental disclosure platform. ASMI has
participated in the annual climate disclosure since 2013, and water security since 2017.
While ASMI does not need ultra-pure water for its equipment processes, our equipment relies on
The latest completed disclosure cycle is for calendar year 2020, reported in July 2021.
local need for water, ASMI has made it a priority in recent years to responsibly manage our water
ASMI reported to both the climate disclosure and water security disclosure, and their
consumption. We also work on ensuring our discharges meet local requirements for adequate
sanitary sources of water for cooling and abatement purposes. Taking into account the global and
respective supply chain modules in coordination with requesting customers. Our CDP
treatment and return to our ecosystems.
disclosures improve transparency of not only our GHG emissions and water impacts, but
also risks and opportunities in these areas. In December 2021, scoring was released and
ASMI recognizes that it operates and takes water withdrawals in regions that are currently
ASMI received the following:
experiencing high water stress, according to the WRI Aqueduct 2019 assessment. Water stress is
defined as the ratio of total water withdrawals to the available renewable surface and groundwater
2021 CDP disclosure scores
supplies.
Climate disclosure
Water security disclosure
B
B
Our three largest engineering centers in South Korea, Japan, and Phoenix, the US, account for
69% of our water consumption in 2021, and are all located in medium-high or extremely high water-
stressed regions.
This is an improvement over the 2020 reporting, which received C ratings for both climate
ASMI manages the risks through water efficiency and conservation measures. In all regions,
disclosure and water security disclosure. With a strong focus on our transparency, and
regardless of water-stress level, ASMI focuses on proactive water conservation, and implementing
strengthening of our understanding of risks and opportunities related to climate and water,
a best-practice approach for that region. In previous years, ASMI has significantly reduced its
we aim to continue to improve our CDP reports in coming years.
absolute water withdrawals. The wastewater treatment systems at our engineering sites all have
water reuse/recirculation systems to minimize consumption.
The CDP supply chain reporting enables us to collaborate further with our customers in
defining our collective impacts through the manufacturing and use of ASMI’s products.
This collaboration helps customers better understand a portion of their Scope 3 GHG
emissions and water-security impacts. ASMI is driving CDP reporting into its own supply
chain, and will engage through the CDP supply chain module in the same manner as we
do for our customers.
Looking ahead, ASMI intends to continue to report our climate and water security
progress to the CDP. We are encouraged by the stronger alignment of CDP with other
disclosures such as the TCFD, and its alignment with the Science Based Targets Initiative
(SBTi) to bring companies in line with 1.5°C targets.
Location
Key operations
WRTI water stress
Almere, the Netherlands Special projects manufacturing
Low
Singapore
Manufacturing
Low
Dongtan, South Korea
Engineering, manufacturing
Medium-high
Tama, Japan
Engineering
Phoenix, Arizona, US
Engineering
Medium-high
Extremely High
Withdrawals
m3 x 1000
2
47
28
5
74
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WATER. WE CARE. WE CONSERVE. EVERY DROP.
Water withdrawals
(Absolute and normalized per R&D investment)
Our impact on water resources associated with our operations, and the equipment we
design and sell, includes supply-quality, availability, and discharge quality requirements. We
continuously aim to reduce our impact through direct conservation efforts, responsible water
discharge, and by addressing associated triggers to water security, including climate change.
We engage with our stakeholders on water security, and through this aim for progress
that exceeds minimum regulatory requirements wherever applicable. We strive to align our
approach with recognized standards, policies, and guidelines, including the OECD, the United
Nations SDGs, and recognized water-stress risk initiatives, and we set targets and objectives
200
160
120
80
40
0
178
1,559
129
1,031
156
123
121
813
707
758
2017
2018
2019
2020
2021
2,000
1,600
1,200
800
400
0
to measure our progress. We communicate our progress annually through the CDP’s Global
Absolute water consumption (m3, x1,000)
Water Report and our Annual Report, and aim to drive progress on water security in our
Intensity of m3/million € R&D investment
supply chain.
We continued to focus on sustaining our progress while conducting a water audit at our key
Our absolute water consumption increased due to growth in our operations in Phoenix, and new
engineering sites in 2021. The objective of the audit is to strengthen our understanding of our
manufacturing site in Woodland Heights, Singapore coming fully online. Due to additional capacity
means of consumption, and identify where opportunities may exist for further conservation through
demands, we retained production capabilities in our Yishun factory. This additional capacity led to
equipment or system enhancements.
an increased absolute consumption, however our normalized consumption to both R&D spend
and total revenue remained consistent with 2019 and 2020, demonstrating our current controls are
Water effluent quality is maintained within regulatory control parameters. Local requirements and
working. Our challenge now will be to find further opportunities for improvement as we continue to
capabilities for wastewater collection and control vary, but ASMI adheres to regulatory discharge
grow in the coming years.
limits and permit conditions. In some regions, we are able to pre-treat and discharge to a publicly
operated treatment-works facility. In others, we need to collect wastewater for offsite transport,
treatment, and management. In all cases, our first responsibility is to ensure our collection systems
CIRCULARITY
ASMI has an ambition to move to a more circular economy. This means minimizing consumption at
are robust, so we don’t risk leaks or releases while the wastewater is in our system. Once ready for
our sites and within our operations, designing out waste in our products, and focusing on reusing
discharge, we make sure we are operating within permit or legal collection/disposal parameters to
materials in a sustainable way until the end of their lifecycle. Most of the world, however, is designed
ensure the receiving treatment facility can manage the effluent.
around a linear economy, and has been for centuries. So the challenge to move past a linear
economy towards a circular one is an ambitious one that requires collaboration across the value
chain.
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MINIMIZING RESOURCE CONSUMPTION
ASMI strives to focus on responsible resource consumption first. If we do not use the material, there
and provide social and economic benefits. Procedures are developed in many instances that allow
for the maintenance and continued operation of the crating to prolong its life. Only when it has been
is no need to reuse or recycle the material. Whether it is through innovation, engineering, or at our
determined that the packaging is no longer fit for purpose, it will be taken out of service. At this
functional locations, we are focusing on putting resource consumption first.
point, we work with partners in our value chain on the responsible disposal of the materials. In many
cases, that means the wood and metal parts can be recycled.
Ways we reduce consumption
Data science – As a technology and science-driven company, we are able to build theoretical
We are committed to increasing the use of reusable and sustainable product packaging across our
models of our technology before the need to ever run processes on our equipment.
value chain. This is measured through the avoidance of landfill disposal. In a one-time-use scheme,
See ‘Global research’ section for more information;
every shipment could have resulted in landfill disposal. So, through the reuse of these packaging
Parts refurbishment – We can extend the life of some of our parts through refurbishment and
materials, we avoided 259 metric tons of landfill disposal through ASMI’s reuse packaging program
reuse. See the ‘Innovation and products’ section to learn more about how we do this;
in 2021, in these areas:
Product lifecycle – Whether it is in the engineering and design of our products, or extending the
useful life of the products, we make an effort in leveraging our innovation to reduce material needs.
See the ‘Product lifecycle management’ section for more details on our sustainable parts lifecycle,
and how we extend the life of our systems; and
Circular program
Description
ASMI to customer
Product and supporting equipment sales
to customers
Packaging – Our packaging is a significant contributor to our potential for waste generation.
The cycle of package use extends beyond our walls, and into our value chain. So collaboration
ASMI to supplier
to reduce packaging is key. See below for more information on how we do this.
Parts and sub-assemblies shipped
between ASMI and suppliers as part of
the production process
Metric tons of waste
disposal avoided
45
2
PACKAGING
Across our global value chain, including customers and suppliers, moving final products, parts,
spares, and engineering resources presents opportunities to significantly reduce the consumption of
resources through reused packaging.
ASMI to contract
manufacturer
ASMI to other vendors
Assembled equipment and sub-assemblies
213
Miscellaneous programs with indirect spend
in engineering or other functions where
commodities are transported
Programs under
development starting
in 2021
Our products are large when assembled, and due to the extreme performance and sensitivity of
REUSE OF SHIPPING PACKAGING
the equipment, they must have carefully engineered packaging. The industry standard practice for
packaging has been one-time-use wood crating built around the product at the production site.
After de-crating at the delivery site, the packaging materials may be recycled with other wood
products. We recognize there is an opportunity to reduce the waste associated with this process,
not only at our sites, but throughout our value chain.
We also focus on sustainable consumption for our packaging. It is our policy that only wood
products certified by the Forest Stewardship Council (FSC) can be used in our crates. FSC is the
‘gold standard’ for wood harvested from forests that are responsibly and environmentally managed,
259
METRIC
TONS
Reuse of shipping packaging
helped avoid 259 metric tons
of combined disposal for
ASMI and our value chain.
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PACKAGING REUSE
New Products shipped to customers
Product is uncrated, crate is deconstructed and shipped back to ASMI
Returned crate is inspected and damaged/worn parts are replaced
Customer has averted a crate disposal, historically this has usually
been to landfill
CUSTOMERS
Assembled products and parts shipped to ASMI manufacturing site
Product(s) is uncrated, crate is deconstructed
Crate and parts are inspected and damaged/worn parts
are replaced
ASMI ships empty crate back to contract manufacturers
ASMI has averted a crate disposal, historically this has
usually been to landfill
Responsibly
managed wood
product policy
DIRECT
SUPPLIERS
CONTRACT
MANUFACTURERS
Specified parts and supplies that can be crated/reuse packaged
are shipped to ASMI manufacturing site
Product(s) is uncrated, crate is deconstructed
Crate and parts are inspected and damaged/worn parts are replaced
ASMI ships empty crate back to supplier
ASMI has averted a crate disposal, historically this has usually
been to landfill
INDIRECT
SUPPLIERS
As of late 2021, the process of identifying opportunities with indirect
material suppliers has just begun. ASMI is investigating opportunities to
reuse packaging and crates with materials that are provided to its
engineering sites. There are pilots occurring in early 2022 that we hope
to report on in the future.
“MINIMIZE WASTE TO LANDFILL FOR ASMI, CUSTOMERS,
SUPPLIERS, AND CONTRACT MANUFACTURERS.”
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SOLID WASTE GENERATION
Ultimately, waste materials are generated at ASMI sites in the course of production and engineering.
RESPONSIBLE CHEMICAL AND WASTE MANAGEMENT
ASMI’s innovation and technology depends on a wide variety of chemicals and gases. Their safe
We focus on maximizing reuse and recycling in those instances, under the limitations of regional
storage and handling is of paramount importance in protecting our employees and communities.
service capabilities. Employees are encouraged to foster a recycling mentality, and look for
All our sites use engineered storage solutions to minimize the risk of incidents related to chemical
continuous improvement opportunities.
storage, use, or handling.
Landfill diversion rate (in %)
Primary manufacturing and engineering sites
100
80
60
40
20
0
79
78
82
84
82
2017
2018
2019
2020
2021
The process of bringing new chemicals and gases into our facilities is structurally controlled through
a robust chemical approval process. The review and approval process engages our own chemical
experts from process engineering, EHS, product safety engineering, and facilities. The multidisciplinary
team identifies the risks and compliance aspects of bringing the chemical onsite, connecting it to
our equipment, using it in our processes, managing by-products and effluents, and preparing for any
possible waste issues.
Controls to ensure safe use are implemented. They include gas and leak detection, exposure controls
during maintenance, emission controls such as gas abatement and wastewater treatment, and
storage controls such as reinforced storage rooms. This documented protocol has been in place for
many years. It continues to be improved on and shared across all our engineering and research sites.
The chemical change process also applies to our manufacturing sites, but the frequency of change is
We currently measure our success through diversion from landfill disposal. The intensity measure
much less.
is metric ton per revenue. For non-hazardous wastes, the inputs are all materials that are deemed
waste at the end of a manufacturing, engineering, or logistics purpose, including site-supporting
The chemical approval process affords us an opportunity to challenge ourselves in evaluating safer
waste such as office materials. This includes:
and more environmentally friendly alternatives. The chemicals and gases necessary to deposit a layer
Production and engineering waste
Packaging crates and materials
Facilities support materials
of atoms in a process-controlled chamber are limited, and in many cases unknown until an application
is identified. This means every new chemical request is evaluated with environmental regulation and
impact in mind. In some cases, chemicals are ruled out during the review process simply because of
their environmental-impact potential.
Our landfill diversion rate amounted to 82% in 2021. While our progress remained flat last year, we
will look for additional opportunities to increase diversion of landfill, particularly in the packaging
ASMI stays abreast of the ever-changing landscape of chemicals and hazardous substances in
reuse opportunities with our suppliers and contract manufacturers.
our industry. We participate in industry working groups, such as SEMI, to help drive improved
However, diversion is not the long-term way to measure this. An absolute reduction of disposal
management, and with safe processing in our equipment at ASMI and our customer sites.
is our objective. As we get better, and our value chain engages further in structurally eliminating
These industry engagements are a cornerstone of collaboration for the benefit of all.
consumption and reusing resources, the materials identified as ‘waste’ for disposal will comprise our
total waste. It is in this way of structurally moving to a circular economy, that we will change the way
Responsible waste management is always determined during the chemical selection process. In
environmental and safety standards. These standards help with both hazardous substance
we view and report our success.
most cases, effluent is generated by our equipment, then processed and treated by air emission and
water emission-control systems. In other cases, such as in the case of expired chemicals or unused
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chemicals, they must be managed according to local regulations. The regions in which waste is
Innovate new methods to engage vendors at our engineering and non-manufacturing sites, to
generated at ASMI are covered by the Basel Convention definition of waste, and properly managed
eliminate single-use materials, such as cardboard and plastics; and
– in some cases as hazardous waste. ASMI first focuses on hazardous waste minimization. For
Engage our local waste-management providers to explore more sustainable options for the
example, our Phoenix, Arizona, site has been a very small quantity generator (VSQG) for several
disposal needs we are currently unable to avoid.
years. This is the lowest classification of hazardous waste-generation status in the United States.
Where hazardous waste cannot be avoided, it is ASMI’s objective to avoid landfill.
EU TAXONOMY
EU taxonomy explanation:
ENVIRONMENTAL MANAGEMENT SYSTEMS
ASMI is certified to the ISO 14001 environmental management system (EMS) globally for its primary
a common language and methodology across European listed companies for reporting on
sustainability and applies to large EU PIEs including financial and non-financial listed companies.
engineering and manufacturing locations. The scope of having a global system helps ensure
For the first time this year, the EU taxonomy regulation requires companies, falling under NFRD,
consistency in practice across our operations. The foundation of the EMS is in the environmental
in accordance with European Regulation 2020/852 of June 18, 2020, and ‘Besluit bekendmaking
policy, which is included in the sustainability policy, published on our website.
niet- financiële informatie’ to report on the EU taxonomy. For fiscal year 2021, companies are only
In the course of 2021, the first delegated act of the EU taxonomy was adopted. It aims to provide
required to report what share of their economic activities are in scope of the EU taxonomy or are,
Under our EMS, we did not sustain any significant (> US$10,000) environmental-related fines or
in EU taxonomy terminology, considered to be ‘eligible’. For fiscal year 2022, companies will also
penalties in 2021. We received one notice of violation for a brief water-quality excursion in our
need to report on whether these eligible activities are considered to be ‘green’, or in EU taxonomy
treatment system in Phoenix, due to a pump failure in that system.
terminology ‘aligned’, following a three step approach including technical screening criteria set
LOOKING FORWARD
With our Net Zero by 2035 goal, and the evolving intensity of the climate crisis, we will continue to
make our climate response a priority. We recognize the challenges in front of us, as ASMI grows
by the EU taxonomy. Finally, the key performance indicators (KPIs) for eligibility and alignment are
reported as the proportion of turnover, capital expenditure (CapEx) and operating expenses (OpEx)
in line with the EU taxonomy delegated acts.
in scope and size. Growth will mean greater absolute consumption of energy. But our focus is,
ASMI eligibility for climate change mitigation and adaptation:
and will continue to be, on sustainable growth and consumption. We are expanding our scope of
ASMI’s technology and innovation allows its customers and, in turn their customers down the value
surveillance and reporting, to include remote sales and service offices in 2022 and 2023. We aim to
chain to introduce electronic devices with superior performance and lower energy consumption.
include those in our renewable electricity purchases as they are captured in scope, with a goal to
ASMI’s innovative R&D activities, aimed at continuously improving technologies to help deliver
achieve 100% renewable electricity footprint for all our global operations by 2024.
further energy reductions, are key in this. As such, ASMI has an important role as an enabler in
Circularity is an important aspect of ASMI’s sustainability plan. We are continuing to challenge
ourselves and our value chain to collaborate around responsible resource management, including:
ASMI has performed continuous research since July 2021 with both internal and external
Expansion of product crate reuse with new products and customers. The introduction of new
stakeholders on the eligibility of their revenue, CapEx and OpEx under the EU taxonomy.
packaging and protocols requires pilot programs and adoption. We will partner with customers to
ASMI underlines that the EU taxonomy is new and evolving. Furthermore, the specific category
collaborate for our shared successes in this area;
within the EU taxonomy (manufacturing of low carbon technologies (3.6)) applicable to ASMI, is
Supplier and contract manufacturing engagement is critical, and will continue to be a focus of our
subject to interpretation. ASMI has concluded that a conservative approach for this year would be
reducing the carbon footprint of its customers and end customers.
efforts for packaging reuse;
most appropriate and that none of the revenue, CapEx and OpEx would at this stage be considered
eligible under the climate delegate acts related to this specific category. This rational applies in
the same way to the capital and operational expenditure for research and development for which
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73
also no eligibility is reported this year. Additionally ASM looked into eligibility for other capital and
Climate change mitigation
operational expenditures like transport, renovations and leases, and has concluded that only
operational expenditure (€ 3.9 million equal to 2.9%) is eligible for ASMI this year.
Based on the important role that ASMI’s R&D plays for energy reduction and the fact that
energy reduction is always a key objective, ASMI will keep monitoring the developments of the
EU taxonomy closely to ensure eligibility in the future to climate change mitigation or adaptation
or any of the other environmental objectives is being monitored.
Looking forward:
ASMI has performed an assessment of its current initiatives related to the EU taxonomy
environmental objectives to assess whether these support alignment if in the future any of ASMI’s
activities would be considered eligible. Initiatives currently performed in this area are the Net Zero
initiative, the Climate Adaptation Risk and Opportunity Assessment (CAROA) process, the water
security project, refurbishment initiatives and the human rights policies and due diligence activities.
In the upcoming year, these and other initiatives will also be assessed against the EU taxonomy
criteria and any gaps will be closed to take further control over becoming aligned to the
EU taxonomy. ASMI understands where it stands at the moment and is ready for the journey ahead.
Share of
eligibility
Share of
non-eligibility
Eligibility
(EUR million)
Revenue share of eligible activities
CapEx share of eligible activities
OpEx share of eligible activities
0%
0%
2.9%
100%
100%
97.1%
–
–
3.9
Climate change adaptation
Share of
eligibility
Share of
non-eligibility
Eligibility
(EUR million)
Revenue share of eligible activities
CapEx share of eligible activities
OpEx share of eligible activities
0%
0%
0%
100%
100%
100%
–
–
–
Shareholders
Shareholders
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SHAREHOLDERS
Our Growth through Innovation strategy aims to create sustainable value for all our stakeholders.
As part of this strategy, we are committed to long-term shareholder value. This section discusses
ASMI’s financial performance in 2021. It also provides information particularly relevant for
shareholders and investors. This includes information related to our share listing and share
price performance, dividends, and share buybacks.
FINANCIAL PERFORMANCE
ASMI again delivered a strong financial performance in 2021. At slightly over €1.7 billion, our
In terms of customer segments, revenue for the full year was led by the foundry segment,
followed by memory, and then logic. Revenue in the combined logic/foundry segment showed a
revenue increased 30%, compared to €1.3 billion in 2020. Revenue grew 34% at constant
strong increase, driven by solid investments throughout the year in leading-edge manufacturing
currencies. The global economy recovered strongly in 2021, following negative growth in 2020.
capacity. We continued to benefit from the significant increase in ALD requirements in the most
The global semiconductor market had a very strong year, increasing 24% to US$578 billion.
advanced nodes. These supported strong share of wallet gains for ASMI with the leading logic
The total wafer fab equipment market amounted to US$88 billion (VLSI Research, January 2022),
and foundry customers. Sales in the memory segment also showed a solid increase in 2021, led
up 38% compared to 2020. There was strong demand across the board, with solid capacity
by the DRAM segment. We benefited from strong demand for our high-k ALD solutions for high-
additions in the most advanced nodes, and significant growth in the older technology nodes.
performance DRAM devices.
Supply chain conditions remained difficult during the year, and worsened in the second half.
This included the effects of new lockdown measures on our supplies in Southeast Asia. Due to
close cooperation with our suppliers, and measures such as maintaining buffer inventories, we were
still able to increase our revenue by 15% from the first half to the second half of the year, excluding
the impact from currencies.
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The following table shows the operating performance for 2021 compared to 2020:
The following table shows certain consolidated statement of profit or loss data as a percentage
(EUR million)
New orders
Backlog
Book-to-bill
Revenue
Gross profit
Gross profit margin %
Other income
Selling, general and administrative expenses
Research and development expenses
Operating result
Operating margin %
Net finance income (expense)
Foreign currency exchange gain (loss)
Income taxes
Net earnings before share in income of
investments in associates
Share in income of investments in associates
Net earnings
Net earnings per share, diluted
Net earnings per share excluding amortization
from the sale of ASMPT shares in 2013
2020
1,313.6
323.6
1.0
1,328.1
623.6
47.0%
–
(157.4)
(139.0)
327.1
24.6%
(1.9)
(23.1)
(48.7)
253.4
32.0
285.4
€5.78
€6.04
2021
2,195.7
811.3
1.3
1,729.9
828.1
47.9%
4.1
(189.5)
(151.2)
491.5
28.4%
(2.0)
33.5
(102.6)
420.3
74.4
494.7
€10.11
€10.36
Change
67%
151%
30%
33%
–
20%
9%
50%
(0.1)
56.6
(53.9)
166.9
42.4
209.3
€4.33
€4.32
of revenue for 2020 and 2021:
Revenue
Cost of sales
Gross profit
Other income
Selling, general and administrative expenses
Research and development expenses
Operating result
Net finance income (expense)
Foreign currency exchange gain (loss)
Share in income of investments in associates
Earnings before income taxes
Income taxes
Net earnings from operations
2020
100.0%
(53.0)%
47.0%
2021
100.0%
(52.1)%
47.9%
–%
0.2%
(11.9)%
(10.5)%
24.6%
(0.1)%
(1.7)%
2.4 %
25.2%
(3.7)%
21.5%
(11.0)%
(8.7)%
28.4%
(0.1)%
1.9 %
4.3 %
34.5%
(5.9)%
28.6%
Revenue
The revenue cycle from quotation to shipment for our equipment generally takes several months,
depending on capacity utilization and urgency of the order. On average, acceptance is obtained four
months after shipment. The revenue cycle is longer for equipment installed at the customer’s site
for evaluation prior to sale. The typical trial period is six months to two years after installation.
Our revenues are concentrated in Asia, the United States, and Europe. The following table shows
the geographic distribution of our revenue for 2020 and 2021:
(EUR million)
United States
Europe
Asia
Total
Year ended December 31,
2020
2021
333.0
141.3
853.8
25.1%
10.6%
64.3%
1,328.1
100.0%
454.1
172.4
1,103.3
1,729.9
26.2%
10.0%
63.8%
100.0%
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A substantial portion of our revenue is earned by equipping new or upgraded fabrication plants
The following table shows the level of new orders and the backlog for 2020 and 2021:
where device manufacturers are installing new fabrication lines. As a result, our revenue in this
segment tends to be uneven across customers and financial periods. Revenue from our 10 largest
customers accounted for 85.1% and 78.9% of revenue in 2020 and 2021, respectively. The three
(EUR million)
largest customers accounted for around 59.4% of revenue in 2021 (2020: 59.1%). The composition
Backlog at the beginning of the year
of our 10 largest customers changes from year to year. In 2021, we had three customers
(2020: three customers) who contributed more than 10% of total revenue.
New orders
Revenue
FX-effect
Year ended December 31,
Backlog at the end of the year
Year ended December 31,
2020
351.2
1,313.6
(1,328.1)
(13.1)
323.6
2021
323.6
2,195.7
(1,729.9)
21.9
811.3
% Change
(8)%
67%
30%
151%
(EUR million)
Equipment revenue
Spares & service revenue
Total
2020
1,051.5
276.6
1,328.1
2021
% Change
1,408.1
321.8
1,729.9
34%
16%
30%
Equipment sales accounted for 81% of total revenue. Equipment revenue grew by 34% in 2021,
and by 38% at constant currencies. We recorded strong double-digit growth in our largest product
line, ALD, which continued to account for more than half our total equipment revenue in 2021.
We also booked very strong growth in our Epi product line, driven by both advanced CMOS
applications, and the analog/power/wafer-maker customer segments.
Book-to-bill ratio
(new orders divided by net revenues)
1.0
1.3
The backlog includes orders for which purchase orders or letters of intent have been accepted,
typically for up to one year. Historically, orders have been subject to cancellation or rescheduling by
customers. In addition, orders have been subject to price negotiations and changes in specifications
as a result of changes in customers’ requirements. Due to possible customer changes in delivery
schedules and requirements, and to cancellations of orders, our backlog at any particular time does
not necessarily indicate actual revenue for any subsequent period.
While representing a smaller part of ASMI’s total revenue, the analog/power market is more exposed
grew by strong double-digit growth and reached record-high levels in all our product lines.
For the year in total, our new bookings increased by 67% in 2021 to €2,196 million. New bookings
to industrial and automotive segments, which were negatively impacted by COVID-19 in 2020.
Spares & services revenue increased by 16%, and by 18% at constant currencies. This was driven
by growth in the installed base of equipment in recent years, as well as an increased contribution
from our new value-added services such as Complete Kit Management (CKM). Growth was
moderate compared to the 29% increase in 2020, when spares & services sales were driven, to
a lesser extent, by customers increasing inventories in response to the COVID-19-related supply
chain challenges. Spares & services represented 19% of total revenue in 2021.
By geography, our revenue was led by the Asia region, with a growth of 29% in 2021.
The book-to-bill, as measured by orders divided by revenue, was 1.3 in 2021. Equipment bookings
were led by the foundry segment, followed by logic and then memory. Bookings in smaller
segments, such as analog/power and wafer-makers, also increased strongly. Bookings increased
by 37% from the first half to the second half, reaching new record quarterly highs of €625 million
in the third quarter, and €645 million in the fourth quarter of 2021. We finished the year with an
order backlog of €811 million, up sharply from €324 million at the end of 2020.
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Gross profit margin
Total gross profit developed as follows:
Year ended December 31,
Gross profit
Gross profit margin
(EUR million)
Gross profit margin
2020
623.6
2021
828.1
2020
47.0%
2021
47.9%
Increase
(decrease)
percentage
points
0.9%
The gross margin increased from 47.0% in 2020 to 47.9%. Within the year, the gross margin
moderated from 48.8% in the first half, which was supported by a relatively strong application mix,
to 47.1% in the second half.
Total research and development expenses developed as follows:
(EUR million)
Gross research and development expenses
Capitalization of development expenses
Amortization of capitalized development
expenses
Impairment of capitalized development
expenses
Net research and development expenses
Year ended December 31,
2020
171.8
(64.1)
21.2
10.1
139.0
2021
206.0
(82.0)
25.2
2.0
151.2
% Change
20%
28%
19%
80%
9%
Currency changes led to a decrease of 3% in gross profit compared to 2020.
Other income
Other income of €4.1 million was related to the divestiture of property.
Selling, general and administrative expenses
Total selling, general and administrative expenses developed as follows:
We continue to invest strongly in R&D. As part of our R&D activities, we are engaged in various
development programs with customers and research institutes. These allow us to develop products
that meet customer requirements, and to gain access to new technology and expertise. The costs
relating to prototypes and experimental models, which we may subsequently sell to customers, are
charged to the cost of sales.
Operating result
(EUR million)
Selling, general and administrative expenses
2020
157.4
2021
189.5
% Change
20%
Year ended December 31,
The operating result developed as follows:
Selling, general and administrative (SG&A) expenses increased by 20% in 2021 year-on-year.
The increase was partly explained by the higher activity level; also, because of increased
investments in IT and the strengthening of the sales and functional organization.
(EUR million)
Before special items
Impairment charges
After special items
Year ended December 31,
2020
337.2
(10.1)
327.1
2021
493.5
(2.0)
491.5
% Change
46%
(80)%
50%
As a percentage of revenue, SG&A expenses in 2021 were 11%, down from 12% in 2020.
Operating profit increased by 50% to €491 million, from €327 million in 2020, resulting in an
The impact of currency changes on SG&A expenses resulted in a decrease of 1% year-on-year.
operating profit margin of 28.4% (2020: 24.6%).
Impairment charges in 2021 and 2020 are related to capitalized development expenditures
Research and development (R&D) expenses
and assets.
Gross R&D expenses increased by 20% in 2021, compared to the previous year. As a percentage of
revenue, gross R&D expenses were slightly lower at 12% (13% in 2020). Currency changes resulted
The impact of currency changes on operating results shows a decrease of 3% year-on-year.
in a 3% decrease in R&D expenses year-on-year.
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Financing costs
Working capital
Financing costs are mainly related to translation results. Financing costs in 2021 included translation
Working capital as at December 31, 2021 was €316 million (2020: €243 million). Working capital
gains of €34 million, compared to translation losses of €23 million in 2020. The translation results
consists of: inventories, accounts receivable, other current assets, accounts payable, provision for
are mainly related to movements in the US dollar in the respective periods. A substantial part of our
warranty and accrued expenses and other payables. The number of outstanding days of working
cash position is denominated in US dollars.
Share in income of investments in associates
capital, measured against quarterly revenue, decreased from 63 days as at December 31, 2020 to
58 days as at December 31, 2021. Our inventories increased year-on-year from €162 million at the
end of 2020 to €212 million at the end of 2021. Our accounts receivable position increased from
Share in income of investments in associates, which reflect our shareholding in ASMPT, increased to
€280 million to €447 million. The percentage of overdue in accounts receivables did not change
€87 million from €45 million in 2020. This result exclude the amortization of intangible assets related
year-on-year, reflecting the healthiness of this position.
to ASMPT. During the year, our stake in ASMPT decreased slightly from 25.07% to 24.96%.
Total revenues as reported by ASMPT increased by 49% to US$2.8 billion in 2021 from continuing
operations. Revenues of the Semiconductor Solutions increased by 70% in 2021. Revenues of
SMT Solutions increased by 25% in 2021. From continuing operations, ASMPT gross margin
increased from 35.0% in 2020 to 40.6% in 2021 and net profits surged up by 399%. For further
information on ASMPT, please visit www.asmpacific.com.
Income tax
The working capital developed as follows:
(EUR million)
Inventories
Accounts receivable
Other current assets
Accounts payable
Provision for warranty
The income tax expense of €103 million (2020: €49 million) reflects an effective tax rate of 17.2%
(2020: 14.6%). For further information on tax, see Note 22 to the consolidated financial statements.
Accrued expenses and other payables
Working capital
December 31, 2020
December 31, 2021
162.2
280.1
72.9
(124.5)
(19.0)
(128.9)
242.8
211.8
446.7
51.0
(175.4)
(27.2)
(190.6)
316.4
Net earnings
Net earnings developed as follows:
(EUR million)
Before special items
Impairment charges
After special items
ASMPT
Share in income from investments in associates
Amortization other intangible assets from
purchase price allocation
Total income of investments in associates
Year ended December 31,
2020
263.5
(10.1)
253.4
44.9
(12.9)
32.0
2021
422.3
(2.0)
420.3
86.6
(12.2)
74.4
Change
158.8
8.1
166.9
41.7
0.7
42.4
Net earnings from operations
285.4
494.7
209.3
Liquidity
Our liquidity is affected by many factors. Some of these relate to our ongoing operations. Others are
related to the semiconductor and semiconductor-equipment industries, and the economies of the
countries where we operate. Although our cash requirements fluctuate based on the timing and extent
of these factors, we believe that cash generated by operations – together with the liquidity provided by
our existing cash resources and our financing arrangements – will be sufficient to fund working capital,
capital expenditures, and other ongoing business requirements for at least the next 12 months.
On December 31, 2021, our principal sources of liquidity consisted of €492 million in cash and cash
equivalents, and €150 million in undrawn bank lines.
For the most part, our cash and cash equivalents are not guaranteed by any governmental agency.
We place our cash and cash equivalents with high-quality financial institutions to limit our credit
risk exposure.
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CASH FLOW
The following table shows the cash flow statement:
(EUR million)
Net earnings from operations
2020
285.4
2021
494.7
We generated cash from operating activities of €381 million in 2021 (2020: €264 million). We used
€114 million cash in investing activities (2020: €144 million) and used €240 million in financing
activities (2020: €170 million). CapEx dropped from €95 million in 2020 to €72 million in 2021, with
a meaningful part spent on expanding and upgrading our R&D lab facilities.
Adjustments to reconcile net earnings to net cash from operating
activities:
Depreciation, amortization and impairments
Net loss (gain) on sale of property, plant and equipment
Share-based compensation
Net finance costs
Share in income of investments in associates
Income tax
Changes in evaluation tools at customers
Changes in employee benefits
Income tax paid
Operating cash flows before changes in working capital 1)
Decrease (increase) in working capital 1)
Accounts receivable
Other current assets
Inventories
Provision for warranty
Accounts payable, accrued expenses and other payables
Net cash from operating activities
Capital expenditures
Proceeds from sale of property, plant and equipment
Capitalized development expenditures
Purchase of intangible assets
Dividend received from associates
Net cash used in investing activities
Cash flows from operating activities after investing activities 1)
Payment of lease liabilities
Purchase treasury shares
Proceeds from issuance of treasury shares
Dividend to common shareholders
Net cash used in financing activities
Foreign currency translation effect on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
1 Non-IFRS performance measure. Please see Glossary and definitions.
89.0
–
12.8
12.0
(32.0)
48.7
(39.7)
(0.4)
(8.1)
367.7
(93.0)
(2.0)
0.5
3.8
(12.7)
264.4
(95.4)
2.3
(64.1)
(3.2)
16.1
(144.3)
120.0
(7.8)
(66.7)
2.8
(98.7)
(170.4)
(12.3)
(62.6)
95.6
(4.1)
17.2
(23.5)
(74.4)
102.6
(8.0)
(0.3)
(151.6)
448.2
(154.0)
15.4
(39.1)
7.1
103.1
380.6
(72.2)
6.2
(82.0)
(2.7)
36.3
(114.4)
266.2
(7.9)
(140.1)
4.6
(96.9)
(240.3)
30.3
56.3
DEBT
We were debt-free as at December 31, 2021.
The original maturity date of the credit commitment was December 16, 2021, and in 2018 and in
2019 we exercised the options to extend the date by one year. This means that the maturity date of
the credit commitment of €150 million is now December 16, 2023. As per December 31, 2021, this
facility was undrawn.
The credit facility of €150 million includes two financial covenants:
Minimum consolidated tangible net worth; and
Consolidated total net debt/total equity ratio.
These financial covenants are measured twice annually, on June 30 and December 31. We were
compliant with these financial covenants as per December 31, 2021.
See notes 11, 16, and 17 to the consolidated financial statements for more information on our
funding, treasury policies and long-term debt.
ASM PACIFIC TECHNOLOGY (ASMPT)
We have a 24.96% stake in ASMPT, a leading semiconductor assembly and packaging equipment
and surface mount technology solutions. Net cash of our 24.96%-owned associate was
€530 million on December 31, 2021. The cash resources and borrowing capacity of ASMPT are not
available to ASMI.
Although two directors of ASMI are directors of ASMPT, ASMPT is under no obligation to declare
dividends to shareholders or enter into transactions that are beneficial to us. As a substantial
shareholder, we can participate in the shareholders’ approval of the payment of dividends, but
cannot compel their payment or size. Cash dividends received from ASMPT during 2020 and 2021
were €16 million and €36 million, respectively.
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The market value of our 24.96% investment in ASMPT was approximately €982 million as per
December 31, 2021.
TAX STRATEGY
ASMI has a tax control framework in place, including the use of certain tax technology that ensures
correct data for tax purposes. As part of this, we continuously monitor our tax positions and tax
FINANCIAL RISK FACTORS
We are exposed to market risks (including foreign exchange-rate risk), credit risk, liquidity risk, and
developments, and review key tax positions quarterly in accordance with the respective processes.
As part of our tax strategy, the tax department recommends a balanced approach in the interests
equity price risk. We may use forward exchange contracts to hedge foreign-exchange risk. We do
of all stakeholders, while adhering to ASMI’s tax policy and complying with all relevant tax laws
not enter into financial instrument transactions for trading or speculative purposes. See Note 17 to
and regulations. ASMI’s tax department is responsible for tax management. It is supervised by the
the consolidated financial statements for financial risk factors.
Management Board via the CFO, who discusses the tax strategy with the Supervisory Board’s
OUTLOOK LIQUIDITY NEEDS
We have developed forecasts and projections of cash flows and liquidity needs for the upcoming
Audit Committee. In line with our tax principles, we do not use artificial tax structures solely aimed
at tax avoidance, nor do we use tax havens or non-cooperative jurisdictions to avoid transparency
on our tax position. ASMI proactively engages with tax authorities, and tax exposures, if any, are
year. These take into account: Current market conditions; reasonable possible changes in trading
contained and under control. For specific transactions and/or a specific approach, for example
performance based on such conditions; our ability to modify our cost structure as a result of
with respect to the application of the at arm’s length principle in transfer pricing matters, we may
changing economic conditions and revenue levels. In the forecasts, we have also taken into account
seek certainty upfront by requesting a tax ruling from the respective tax authority. We believe such
the total cash balances amounting to €492 million on December 31, 2021; the ability to renew debt
certainty is valuable for our stakeholders, including the respective tax authority.
arrangements and access additional indebtedness, and whether or not we will comply with our
financial covenants. Based on this, we believe that our cash on hand at the end of 2021 is adequate
to fund our operations and our investments in capital expenditures, and to fulfill our existing
contractual obligations for the next 12 months.
TAX PRINCIPLE
We view tax as an integrated part of doing business, and that tax should follow business.
This resonates with our core value ‘We Care’, and contributes to the societies in which we operate.
The respective taxes are determined and paid in the countries where the respective value is created,
in accordance with all relevant rules and regulations. See Note 22 of this Annual Report for the total
income tax expense in the Netherlands and abroad. Tax is one of the many factors we take into
account when doing business, including locally available tax incentives and exemptions. We seek to
establish and maintain an open and constructive relationship with the tax authorities in the countries
where we operate. We do not use artificial tax structures aimed at tax avoidance; we aim to follow
both the letter as well as the spirit of the law.
We support the arm’s length principle to determine transfer prices in accordance with domestic
and international rules and standards, such as the OECD guidelines for multinational enterprises.
Our disclosures are made in accordance with the relevant local and/or international regulations and
guidance, based on all the relevant facts and circumstances.
As at December 31:
Issued shares
Treasury shares
Outstanding shares
SHAREHOLDER INFORMATION
On December 31, 2021, the total number of ASMI issued common shares amounted to 49,297,394
compared to 49,797,394 at year-end 2020. This decrease was the result of the cancellation of
500,000 treasury shares approved by the Annual General Meeting of Shareholders (AGM) on
May 17, 2021, and became effective on July 21, 2021.
As at January 1:
Issued shares
Treasury shares
Outstanding shares
Changes during the year:
Cancellation of treasury shares
Share buybacks
Treasury shares used for share-based performance programs
2020
2021
51,297,394
49,797,394
2,431,174
1,082,712
48,866,220
48,714,682
1,500,000
508,685
357,147
500,000
462,988
316,983
49,797,394
49,297,394
1,082,712
728,717
48,714,682
48,568,677
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
81
On December 31, 2021, we had 48,568,677 outstanding common shares, excluding 728,717
The average daily trading volume of ASMI shares on Euronext Amsterdam in 2021 was 310,625.
treasury shares. This compared to 48,714,682 outstanding common shares and 1,082,712 treasury
This compares to an average daily volume of 316,286 in 2020.
shares at year-end 2020. Besides the cancellation of 500,000 treasury shares in July 2021, the
change in the number of treasury shares in 2021 was the result of 462,988 repurchased shares
The graph below shows the performance of ASMI’s shares on Euronext. The total share return
and 316,983 treasury shares that were used as part of share-based payments.
in this graph is the performance of the share including dividends paid and capital returned over
On December 31, 2021, 48,282,085 of the outstanding common shares were registered with
our transfer agent in the Netherlands, ABN AMRO Bank N.V., and 286,592 were registered with
Share price performance and total share return in %
our transfer agent in the United States, Citibank, NA, New York.
the period.
SHARE LISTING
ASMI’s shares are listed on Euronext Amsterdam under the symbol ASM and are included in
the MSCI index. MSCI announced on February 9, 2021 that, as part of their quarterly review,
ASMI would be included in the MSCI Global indexes as of February 26, 2021. The MSCI indexes are
widely tracked by investors and serve as the basis for many index funds, and so-called exchange
traded funds (‘trackers’). The addition to the MSCI index follows significant increases in ASMI’s
market capitalization. The valuation of our shares on the stock market increased to €9 billion at
1,500
1,300
1,100
900
700
500
300
100
0
-100
the end of 2020, up from approximately €5 billion in 2019, and €2 billion in 2018. In January 2021,
2015
2016
2017
2018
2019
2020
2021
Total return
Share price
performance
our market capitalization exceeded €10 billion for the first time. ASMI was added to the AEX Index
– the 25 largest companies listed on Euronext Amsterdam measured by free-float adjusted market
capitalization – in March 2020.
SHAREHOLDER RETURNS
Over time, ASMI has returned significant amounts of cash in different forms to our shareholders,
reflecting our policy to use excess cash for the benefit of our shareholders. In 2021, we returned
Our NY Registry Shares have been eligible for trading on the over-the-counter (OTC) market in the
€237 million to our shareholders. This follows an amount of approximately €165 million returned
United States under the symbol ASMIY since 2015. Further information can be found on:
to our shareholders in the form of dividends and share buybacks in 2020. Since 2018, we have
www.otcmarkets.com.
returned €1.2 billion in cash to our shareholders.
MARKET CAPITALIZATION
ASMI’s market capitalization at year-end 2021 was €18,879 million, based on the closing share
DIVIDENDS
ASMI aims to pay a sustainable annual dividend. Annually, the Supervisory Board, at the proposal
price of €388.70 on Euronext Amsterdam on December 31, 2021, and 48.6 million total outstanding
of the Management Board, assesses the amount of dividend that will be proposed to the
shares at year-end. The market capitalization at year-end 2020 was €8,766 million.
AGM. The decision that a dividend be proposed to the AGM will be subject to the availability of
SHARE PERFORMANCE
On December 31, 2021, the closing price of ASMI’s shares on Euronext Amsterdam was €388.70.
At the end of 2020, the closing price was €179.95. The highest closing share price during the
year was €434.60, on November 18, 2021, and the lowest was €186.40, on January 7, 2021.
distributable profits as well as retained earnings, and may be affected by our potential future funding
requirements. Accordingly, dividend payments may fluctuate and could decline or be omitted in
any year.
ABOUT
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FINANCIAL STATEMENTS
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ASMI ANNUAL REPORT 2021
82
The proposed dividend over 2021 will mark the 12th consecutive year that ASMI has paid a dividend.
The 2021 program is our eighth consecutive share buyback program. Prior to the 2021 program,
Our dividend has steadily increased over time. Over 2018, we paid a dividend of €1.00 per common
the previous three programs were:
share. Over 2019, we paid total dividends of €3.00 per common share, consisting of a regular
dividend of €1.50 per share, and an extraordinary dividend of €1.50 per share. Over 2020, the
dividend was €2.00 per common share.
ASMI announced on February 22, 2022, that it would propose to the upcoming AGM a regular
dividend of €2.50 per common share over 2021, which is an increase of 25% compared to the
dividend paid over 2020.
Start date
End date
Value of the
program
Number of
repurchased
shares
Average
repurchase
price 1)
June 2, 2020
March 2, 2021
€100,000,000
November 1, 2019
February 17, 2020
€100,000,000
646,180
984,279
June 6, 2018
October 11, 2018
€250,000,000
5,443,888
€154.76
€101.60
€45.92
1 The average repurchase price for the 2018 share buyback program includes repurchase expenses.
Dividend per share in € paid over
Information about earlier share buyback programs is available on our website.
3.50
3.00
2.50
2.00
1.50
1.00
0.50
3.00
1.50
2.50
2.00
1.50
1.00
0.50 0.50 0.50 0.60 0.70 0.70 0.80
2011
2012
2013
2014
2015
2016 2017 2018 2019 2020 2021*
* Proposed
DIVIDEND TIMETABLE
Ex-dividend date: May 18, 2022
Record date: May 19, 2022
Payment date: May 27, 2022
Cumulative cash returned to market € million
2,500
Extraordinary
dividend
Regular dividend
2,000
1,500
1,000
500
0
2011
2012
2013
2014
2015
2016
2017
2018 2019
2020
2021
Share buybacks
Dividends
Return of capital
Buyback convertibles
CAPITAL REPAYMENT
In earlier years ASMI distributed cash to its shareholders through two capital repayments: in 2013,
€4.25 per ordinary share, and in 2018, €4.00 per ordinary share. More information about these
capital repayments is available on our website.
SHARE BUYBACK
In 2021, ASMI used €140.1 million in cash for share buybacks, including €37.3 million related
to the 2020/2021 program that was completed on March 2, 2021. On April 20, 2021, ASMI
announced the authorization of a new share buyback program of up to €100 million. This share
buyback program started on July 28, 2021, and ended on December 17, 2021, with 292,116
shares repurchased at an average price of €342.33. This repurchase program is part of ASMI’s
commitment to use excess cash for the benefit of its shareholders.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
83
INVESTOR DAY
We are committed to maintaining a regular and open dialog with our shareholders. Our first Investor
During the event, ASMI CEO Benjamin Loh provided an update of our company’s unique
positioning, key opportunities ahead, and our growth strategy. Chief Technology Officer Ivo
Day was a great opportunity to underline how important it is for us to actively engage with our
Raaijmakers shared an overview of our R&D strengths, and new technologies on our future
investors, and showcase our long-term strategy for value creation.
roadmap. Corporate Vice President Global Marketing Han Westendorp presented an outlook of
Investor Day, on September 28, 2021, was a hybrid event of online and in-person elements. A small
into ASMI’s products and innovation. Chief Financial Officer Paul Verhagen wrapped up the event
number of invited guests attended the live event in Amsterdam, including institutional investors and
by outlining our long-term financial targets, and outlook to 2025.
our key markets, and Executive Vice President of Global Products Hichem M’Saad deep-dived
sell-side analysts. For the in-person event, we adhered to the Dutch government’s COVID-related
guidelines and voluntarily implemented additional health and safety measures. The meeting room
was set up to allow for social distancing. In addition, a webcast of the event was live-streamed, with
the possibility for investors and analysts to participate remotely in the Q&A.
Profile and geography of the participants*
Investor day attendees by profile in %
31
18
51
Institutional investors
Sell-side analysts
Other
Investor day attendees by geography in %
5
18
77
Europe
North America
Rest of the world
* Including in-person and webcast participants, as well as on-demand views. Excluding employees.
KEY TARGETS ANNOUNCED IN OUR INVESTOR DAY 2021:
Targeting revenue of €2.8-€3.4 billion by 2025 (2020-2025 CAGR of 16%-21%), gross margins
of 46%-50% in 2021-2025, and operating margins of 26%-31% in 2021-2025;
Targeting Net Zero emissions by 2035, and 100% electricity from renewable sources by 2024;
Single-wafer ALD market expected to increase from US$1.5 billion in 2020 to
US$3.1-US$3.7 billion by 2025; and
Further capacity expansion of our new manufacturing facility to be production-ready by early 2023.
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ASMI ANNUAL REPORT 2021
84
MAJOR SHAREHOLDERS
Pursuant to the Dutch Financial Supervision Act (‘Wet op het financieel toezicht’ or ‘WFT’), legal
The graph below provides an overview of the shareholders’ structure.
entities as well as natural persons must immediately notify the Netherlands Authority for the Financial
Institutional investors by geography in %
Markets (AFM) when a shareholding equals or exceeds 3% of the issued capital. The AFM must be
notified again when this shareholding subsequently reaches, exceeds or falls below a threshold. This
7
can be caused by the acquisition or disposal of shares by the shareholder or because the issued
capital of the issuing institution is increased or decreased. Thresholds are: 3%, 5%, 10%, 15%,
20%, 25%, 30%, 40%, 50%, 60%, 75%, and 95%. The AFM incorporates the notifications in the
public register, which is available on its website. Failure to disclose the shareholding qualifies as an
offense, and may result in civil penalties, including suspension.
25
35
33
Europe
North America
United Kingdom
Rest of the world
The following table sets forth information with respect to the ownership of our common shares
as of December 31, 2021, by each beneficial owner known to us of more than 3% of our
common shares:
ASM International N.V. 2)
Tokyo Electron Ltd. 3)
BlackRock, Inc 4)
Norges Bank 5)
Number of
shares
728,717
2,699,000
2,515,551
2,461,124
Percent 1)
Number of
voting rights
Percent 1)
1.5%
5.5%
5.1%
5.0%
–
2,699,000
2,930,808
2,461,124
–%
5.5%
5.9%
5.0%
1 Calculated on the basis of 49,297,394 issued common shares as of December 31, 2021, and without regard
to options.
2 On December 31, 2021, ASMI held 728,717 ordinary shares in treasury.
3 All of the 2,699,000 shares capital interest and voting rights of Tokyo Electron Ltd. are held directly actual.
Based on the notification filed with the AFM on July 1, 2013.
4 Of BlackRock, Inc.’s capital interest 2,513,552 shares are held indirectly actual and 1,999 shares are held indirectly
potential. Of the voting rights, 2,928,809 are held indirectly actual and 1,999 indirectly potential. Based on the
notification filed with the AFM on August 3, 2021.
5 All of the 2,461,124 shares capital interest and voting rights of Norges Bank are held directly actual. Based on
the notification filed with the AFM on November 2, 2021.
Investors by profile* in %
20
80
Institutional investors
Broker, retail investors, and other
* Excluding treasury shares
ESG RATINGS
We have built a strong foundation for our ESG strategy in recent years, and stepped up our
A ‘beneficial owner’ of a security includes any person who, directly or indirectly, through any
sustainability focus. As ESG ratings are a widely used tool to assess our ESG performance and risk,
contract, arrangement, understanding, relationship, or otherwise has or shares (i) voting power
we have stepped up our engagement with several rating agencies.
which includes the power to vote, or to direct the voting of, such security and/or (ii) investment
power which includes the power to dispose, or to direct the disposition, of such security. In addition,
CDP
a person shall be deemed to be the beneficial owner of a security if that person has the right to
Companies and governments that disclose to CDP are scored between A and F, with different
acquire beneficial ownership of such security, as defined above, within 60 days, including but not
scores given for each focus area, including climate and water. In 2021, we received a B score for
limited to any right to acquire: (i) through the exercise of any option, warrant or right; (ii) through
both climate and water, up from our C score in 2020. For more on our CDP disclosures, see the
the conversion of a security; or (iii) pursuant to the power to revoke, or pursuant to the automatic
section ‘Planet’ in this report.
termination of, a trust, discretionary account, or similar arrangement.
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85
ISS QualityScore
The ISS Governance E&S Disclosure QualityScore provides an assessment of a company’s ESG
KEY FIGURES PER SHARE
The table below shows the key figures per share and other relevant share data for the past
performance. A score of 1 indicates lower risk, while a score of 10 indicates governance risk versus
three years.
its index or region. In 2021, we received an ISS Governance QualityScore of 1, an ISS Environment
QualityScore of 4, and an ISS Social QualityScore of 5. Our 2021 scores are the same as 2020.
MSCI ESG*
MSCI ESG Research provides MSCI ESG Ratings on a scale of AAA (leader) to CCC (laggard),
according to exposure to industry-specific ESG risks, and the ability to manage those risks relative
to peers. In 2021, we received a rating of A in the MSCI ESG Ratings assessment. Our 2021 rating
is the same as 2020.
S&P Global ESG
The S&P Global ESG Scores are a set of environmental, social and governance data that provides
company-level, dimension-level, and criteria-level scores based on the S&P Global Corporate
Sustainability Assessment (CSA) process, an annual evaluation of companies’ sustainability
practices. In 2021, we received a S&P Global ESG Score of 58 out of 100 (up from 22 in 2020).
(EUR, except number of shares)
Net earnings per share, diluted
Normalized net earnings per share, diluted
Dividend per share paid over
Shareholders’ equity per share
Issued shares year-end (thousand)
Outstanding shares year-end (thousand)
Average outstanding shares basic (thousand)
Average outstanding shares diluted (thousand)
Closing share price Euronext Amsterdam
Year-end
High
Low
Sustainalytics**
Market capitalization year-end (EUR million)
In October 2021, ASMI received an ESG Risk Rating of 15.3, and was assessed by Sustainalytics to
be at low risk of experiencing material financial impacts from ESG factors.
2019
6.58
6.86
2.00
37.22
51,297
48,866
49,418
49,999
100.15
104.40
33.96
4,894
2020
5.78
6.04
3.00
38.07
49,797
48,715
48,907
49,359
179.95
179.95
59.18
8,766
2021
10.11
10.36
2.00
46.16
49,297
48,569
48,645
48,909
388.70
434.60
186.40
18,879
OPEN DIALOG AND TIMELY INFORMATION
We maintain an open dialog with our shareholders and investors. We provide the financial markets
with accurate and timely information through, among other things, press releases, annual reports,
quarterly earnings calls and webcasts, and investor meetings. In 2021, we held more meetings
focused on ESG-related topics, including investor meetings that provided us with input for our
updated materiality analysis. Investors can find up-to-date and comprehensive information about
the company and our shares on our website.
* The use by ASM International N.V. of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI
logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement,
recommendations, or promotion of ASM International N.V. by MSCI. MSCI services and data are the property of MSCI
or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or
service marks of MSCI.
** Copyright ©2022 Sustainalytics. All rights reserved. This section contains information developed by Sustainalytics
(www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers
(Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any
product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for
a particular purpose. Their use is subject to conditions available at www.sustainalytics.com/legal-disclaimers.
Victor Bareño
Almere, the Netherlands
T: +31 88 100 8500
E: investor.relations@asm.com
Interview with the CFO
Interview with the CFO
ABOUT
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86
INTERVIEW WITH THE CFO
Paul Verhagen took over as ASMI’s new Chief Financial Officer in June 2021. In the following interview
Paul comments on the company’s positioning and opportunities. He also reviews ASMI’s financial
performance in 2021 and discusses the capital allocation policy and investment priorities.
PAUL, YOU JOINED ASMI AS CFO IN JUNE LAST YEAR. WHAT IS
YOUR VIEW ON THE COMPANY’S POSITIONING AND PROSPECTS?
Since joining ASMI, I have been particularly impressed by our company’s innovative strengths, and
the strong growth opportunities ahead of us. In 2021, the semiconductor market increased 24%
to more than US$500 billion, and is expected to grow to US$1 trillion by 2030. To enable new
end-market applications in, for instance, artificial intelligence and 5G smartphones, our customers
are investing in next-generation semiconductor technologies. ASMI is well placed to benefit from
these trends. We are the leader in ALD, and have a growing position in Epi, which are critical
technologies for our customers to transition to the next nodes.
“ I HAVE BEEN IMPRESSED BY ASMI’S
INNOVATIVE STRENGTH AND STRONG
GROWTH OPPORTUNITIES.”
It is important that we prepare our company for the next growth phase. We are expanding capacity,
both for manufacturing and for our R&D lab facilities. We continue to increase our investments in
R&D, for product innovation, and new applications. To support this, we need to step up our efforts
in hiring new talent, and retaining our people by investing in their development.
HOW DIFFICULT IS IT TO FIND THE RIGHT PEOPLE, TAKING
THE GROWTH OF THE INDUSTRY INTO ACCOUNT?
It’s not easy, and we have stepped up investments in our People teams to support our recruitment
needs. To give an example of the strong growth we’ve been experiencing: at year-end 2021, around
a third of our employees had been at ASMI for less than a year. The war for talent in our industry is
reaching new heights, particularly for engineers. All technology companies are fishing in the same
pond. We have to make sure we stay competitive. As one of the effects of this, we expect to see
some above-average wage inflation in the next year.
Paul Verhagen
Chief Financial Officer
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87
WHAT WAS THE IMPACT OF COVID-19 ON ASMI’S BUSINESS
IN 2021?
Our priority is always the health and safety of our people. In 2021, and as we entered 2022, we
continue to take measures to minimize risk for our employees, customers and suppliers, and for
the communities where we operate.
our target in the first half. In the course of 2021, we took steps to grow R&D at a faster rate, resulting
in a higher increase in the second half. We aim for a further acceleration in R&D spending in 2022. Our
mid-term target is high single to low double-digit investments in net R&D as a percentage of sales.
Selling, general, and administrative (SG&A) expenses increased by 20% in absolute terms, and
decreased as a percentage of revenue from 11.9% in 2020 to 11.0% in 2021. The increase in SG&A
From a demand perspective, the pandemic continued to fuel work-from-home-related computing
last year was in part due to the higher activity level, as well as increased investments in, for example, IT,
demands, and helped speed up digitalization trends in our economies and society. This, in turn,
and the strengthening of the Sales and Quality organization. We expect to increase these investments
drove strong growth in our industry. COVID-19 continued to create challenges in our operations,
in 2022. Taking a mid-term view, we forecast the SG&A expenses as a percentage of sales to decline
particularly in our supply chain. The industry-wide spike in demand, and the impact from lockdowns
to high single-digit, as we benefit from operating leverage.
and constraints, led to shortages and delays.
Supply conditions tightened further in the summer of 2021, due to COVID-related lockdown
measures in Southeast Asia, where many suppliers in our industry are located. Thanks to close
and proactive cooperation with our suppliers and customers, and our actions to maintain higher
“ OPERATING RESULT INCREASED BY 50% TO
A NEW RECORD LEVEL.”
inventories and to qualify new suppliers, we were still able to deliver on our customer requirements,
The operating result increased by about 50% to a new record level of €491 million, with the
achieving record-high shipments and sales.
operating margin up from 24.6% in 2020 to 28.4%.
HOW WOULD YOU DESCRIBE ASMI’S FINANCIAL PERFORMANCE
IN 2021?
ASMI delivered very strong results. Our revenue increased by 34% at constant currencies to
Income from ASMPT increased to €87 million from €45 million in 2020. This result excludes the
amortization of intangible assets related to ASMPT.
€1.7 billion, the fifth consecutive year of double-digit growth. Demand for wafer-fab equipment
In line with our earlier indications, the effective tax rate increased further to 17.2% in 2021, up
increased strongly and across the board. Our growth was also supported by share of wallet gains in
from 14.6% in 2020. The increase in the tax rate is related to earlier exhaustion of net operating
the advanced logic/foundry nodes, our inroads in memory, and solid expansion in the analog/power
losses (NOLs).
wafer markets. At constant currencies, equipment sales increased by 38% year-on-year, driven by
strong growth in our ALD and Epi product lines. Our spares & service sales were 18% higher (at
Total net earnings increased by 73% to €495 million compared to last year.
constant currencies) in 2021, with an increased contribution from our new outcome-based services.
The gross margin increased from 47.0% in 2020 to 47.9% in 2021. Within the year, the gross
margin moderated from 48.8% in the first half, which was supported by a relatively strong
application mix, to 47.1% in the second half.
DID YOU EXPERIENCE ANY UNFAVORABLE IMPACT OF THE
RECENT HIKE IN INFLATION, AND INCREASE IN ENERGY
AND COMMODITY PRICES?
I am pleased to say that we were able to offset the impact from increased energy and commodity
prices by other savings in our cost of goods through commercial negotiations, value engineering,
Gross R&D, excluding capitalization and amortization of development expenses, and impairments,
and increased efficiencies. It is too early to tell what the impact will be in 2022. But we stay focused
increased by 20% in 2021. Net R&D increased by 9%, as capitalization increased and impairments
on opportunities to offset further inflationary pressures, and remain committed to deliver healthy
decreased compared to 2020. As a percentage of revenue, net R&D expenses amounted to 8.7% in
gross margins.
2021, down from 10.5% in the previous year. The increase in R&D spending was somewhat below
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88
ANY OTHER HIGHLIGHTS IN 2021?
We made strong progress in several important areas. But if I have to choose two highlights, they’d
CapEx additions amounted to €79 million in 2021, with a significant part spent on expanding and
upgrading our R&D lab facilities. These investments will continue in 2022. CapEx ended up lower
be our increased sustainability focus and Investor Day. In 2021, we launched our new sustainability
than planned for. This was due to some carry-over from 2021 into 2022 as a result of COVID-19-
priorities 2021-2025: Innovation, People, Planet, Responsible Supply Chain, and Governance.
related delays. CapEx dropped compared to €95 million in 2020, which included the completion
In September, as a first significant step, we announced our ambition for net zero emissions by 2035.
of our new and significantly expanded Singapore manufacturing facility that year. As part of our
As part of this, we aim to achieve 100% renewable energy by 2024. We are currently preparing
2021-2025 financial targets, we expect CapEx to be in a range of €60-100 million.
several new actions and targets in our other sustainability focus areas, and will report on our
progress in upcoming periods.
Cash spent on taxes increased substantially to €152 million in 2021. This is explained by the fact
that we paid cash taxes in the Netherlands in 2021 with respect to the three years 2019, 2020 and
Apart from our moral duty to do business in a responsible way and make a positive impact, I’m also
the estimated preliminary tax for 2021.
convinced that companies that perform better in terms of sustainability are more likely to deliver
stronger long-term financial results.
We used €237 million in cash for shareholder remuneration, up from €165 million in 2020, and
Also in September, we held our first Investor Day. An important goal of this event was to explain in
more detail the technology inflections in our key markets. Also, how we expect to capture these
Our financial position remained strong. We ended 2021 with a cash position of €492 million,
market opportunities on the back of our Growth through Innovation strategy. We also presented
compared to €435 million the previous year.
consisting of €97 million for dividend and €140 million spent on share buybacks.
2025 financial targets. We expect our revenue to grow to €2.8-3.4 billion by 2025, an average
annual growth of 16% to 21% compared to 2020. For 2021-2025, we target the gross margin to be
in a range of 46%-50%, and the operating margin in a range of 26%-31%. Driven by strong revenue
and solid profitability, we expect to generate a healthy free cash flow in 2021-2025.
“ BETTER PERFORMANCE IN SUSTAINABILITY
IS MORE LIKELY TO DELIVER STRONGER
LONG-TERM FINANCIAL RESULTS.”
WHAT DO YOU THINK OF THE CASH FLOW IN 2021?
Free cash flow more than doubled from €120 million in 2020 to €266 million in 2021. A key driver
was the improvement in profitability. The cash outflow for working capital amounted to €68 million,
DID YOU MAKE CHANGES TO ASMI’S CAPITAL ALLOCATION
STRATEGY?
No, the fundamentals of our capital allocation policy remain unchanged. The key priority for ASMI
is to invest in the growth of our business. That means spending on CapEx and R&D, and also
scanning the market for potential M&A opportunities. Next to that, it remains key for us to maintain
a strong balance sheet. We intend to gradually increase towards a cash target of €600 million.
This is up from a cash target of €300 million in earlier years, as we also communicated last
September, and reflects the increased size of our company.
We remain committed to pay a sustainable dividend. With the publication of our Q4 2021 results on
February 22, 2022, we announced a proposed dividend of €2.50 per share to be paid over 2021.
This is a 25% increase, compared to the regular dividend of €2.00 paid over 2020.
and was mainly driven by the strongly increased activity level. The underlying quality remained
Our policy regarding excess cash is also unchanged. We plan to return excess cash to our
healthy. In relative terms, working capital dropped to 58 days, down from 63 days the previous year.
shareholders. Last December, we completed the €100 million share buyback program that started
On a structural basis, we target days of working capital to be in a range of 55-75 days.
in July 2021. With the publication of our Q4 2021 results we announced a new €100 million
buyback program, to be executed in the 2022-2023 timeframe.
GOVERNANCE
ABOUT
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FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
89
CORPORATE GOVERNANCE
Corporate governance
Risk management
Management Board
Supervisory Board
90
93
99
101
Supervisory Board report
106
Remuneration report
External auditor
Declarations
111
117
118
At ASMI, good governance is a key
requirement to meeting our strategic
objectives. It ensures effective
cooperation and management, and
provides a transparent system of
checks and balances between our
Management Board, Supervisory
Board, and shareholders.
Values and ethics, global policies, internal control
monitoring, and risk management are some of
the key elements of our corporate governance
framework. They ensure that relevant and
up-to-date information is available, enabling
management and control by the Management
Board, Supervisory Board, and shareholders.
Our corporate governance framework is a cycle
through which we strive to continuously improve
the way we operate. It starts with transparency,
accountability, values and ethics feeding into
our global procedures describing how we
work. Our internal control and monitoring
activities ensure that we meet standards and
identify improvement opportunities. Our risk
management approach enables us to identify
the risks early that may impact us, as well as the
opportunities that can enable future growth.
This section of the report addresses our
corporate governance structure, and how
we apply the principles and best practices
of the Dutch Governance Code.
Corporate governance
Corporate governance
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CORPORATE GOVERNANCE
Good corporate governance is about applying sound business practices. At ASMI, we do business in an ethical
and transparent manner. We achieve this by setting up transparent processes and following internal policies and
procedures that enable us to operate in the best interests of all our stakeholders, and which comply with applicable
Dutch corporate governance requirements.
HIGH STANDARD OF CORPORATE GOVERNANCE
ASMI aspires to high standards of corporate governance and ethics practices. Sound corporate
governance is a key component of our culture, behavior, and management, and this is consistent
with our core values. Our corporate governance is supported by a strong focus on integrity,
transparency, and clear and timely communication. We endeavor to ensure that our policies and
procedures comply with both applicable Dutch corporate governance requirements, and all relevant
Corporate governance-related documents are available on our website, including:
Supervisory Board profile;
Supervisory Board rules;
Management Board rules;
Audit Committee charter;
Nomination, Selection and Remuneration
Remuneration policy;
Code of Business Conduct;
Whistleblower policy;
Anti-fraud policy; and
Rules concerning insider trading.
laws. Furthermore, our corporate governance structure supports our business and meets the needs
Committee charter;
of our stakeholders.
CORPORATE GOVERNANCE FRAMEWORK
The corporate governance framework describes how ASMI’s strategy, mission, vision and objectives
are embedded across our organization. Our Code of Business Conduct (COBC) sets clear
standards in different areas of business life. Its purpose is to provide a clear, strong, and consistent
culture of ethics that applies to all at ASMI.
ASMI’s policies and regulatory framework guide how we work. Key components are our financial,
IT, product safety, environment, health and safety (EHS), compliance, ESG and sustainability,
and business continuity frameworks. These are supported by transparency and accountability
through our monthly business review cycle, our internal control framework, and our performance
management cycle.
Our risk management approach enables us to identify and manage the strategic, operational,
financial, climate, and compliance risks to which ASMI is exposed. It also helps us develop even
more effective and efficient operations. It promotes reliable financial and non-financial reporting and
compliance with laws and regulations, increasing transparency and accountability.
Corporate governance framework
MANAGEMENT
BOARD,
SUPERVISORY
BOARD &
COMMITTEES
TRANSPARENCY
&
ACCOUNTABILITY
V I SION
VALUES &
ETHICS
S
E
V
I
T
C
E
J
B
O
CORPORATE
GOVERNANCE
m
i
s
s
i
o
n
RISK &
PERFORMANCE
MANAGEMENT
STRAT E G Y
POLICIES &
REGULATORY
FRAMEWORK
MONITORING
& INTERNAL
CONTROL
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ASMI ANNUAL REPORT 2021
91
COMPANY STRUCTURE
ASMI is a publicly listed company established under Dutch law. The company’s management
PUBLICATION IN ENGLISH
The Annual Report, the financial statements, and other regulated information as defined in the Dutch
and supervision structure is organized in a two-tier system, comprising a Management Board,
Act on Financial Supervision (‘Wet op het financieel toezicht’) will only be published in English on our
composed of executive directors, and an independent Supervisory Board, composed of non-
website (www.asm.com).
executive directors. Our Management Board has ultimate responsibility for the overall management
of ASMI. The Management Board is supervised and advised by the Supervisory Board.
The draft minutes of the AGM are available on our website no later than three months after the
The Management Board and the Supervisory Board are accountable to ASMI’s shareholders.
meeting. Shareholders may provide their comments in the following three months, after which the
minutes are adopted and published on our website.
We conduct our business through wholly-owned subsidiaries, the most significant being ASM Front-
end Manufacturing Singapore Pte Ltd (FEMS) in Singapore; ASM Europe BV (ASM Europe) in the
Netherlands; ASM America Inc (ASM America) in the United States; ASM Japan KK (ASM Japan)
2021 AGM OF ASMI
ASMI held its AGM on May 17, 2021. Given the ongoing COVID-19 situation around the world
in Japan; and ASM Korea Ltd (ASM Korea) in South Korea. The location of our facilities allows us
and the public health and safety measures introduced by the Dutch government, in part via the
to interact closely with customers in the world’s major geographical market segments: Europe, the
COVID-19 (Temporary Measures) Act, this meeting was held virtually. Shareholders were given the
United States, and Asia.
ASMI SHARES
ASMI’s common stock trades on the Euronext Amsterdam Stock Exchange (symbol: ASM), and
opportunity to vote by two means: (i) by providing – as at previous AGMs – a power of attorney
with voting instructions prior to the AGM; and (ii) by voting electronically during the meeting.
The attendance rate was 69.57% of the total issued share capital of ASMI as at the registration
date. In line with the ASMI Boards’ recommendations, the shareholders approved all resolutions as
ASMI is required to comply with the Dutch Corporate Governance Code (the Code). ASMI common
proposed to the AGM. The voting results and the minutes of the AGM are published on our website.
shares, which are held in the United States as New York Registry Shares, are eligible for trading on
the OTC market.
ANNUAL GENERAL MEETING OF SHAREHOLDERS
ASMI shareholders exercise their rights through Annual and Extraordinary General Meetings of
2021 EXTRAORDINARY GENERAL MEETING OF ASMI
ASMI held an EGM on September 29, 2021. Given the ongoing COVID-19 situation and the public
health and safety measures introduced by the Dutch government, this meeting was held virtually.
The agenda for the EGM consisted of: (i) the appointment of Mrs. Pauline van der Meer Mohr to the
Shareholders. ASMI is required to convene an Annual General Meeting of Shareholders (AGM) in
Supervisory Board; and (ii) the appointment of Mr. Adalio Sanchez to the Supervisory Board. In line
the Netherlands each year, no later than six months after the end of the company’s financial year.
with the ASMI Boards’ recommendations, the shareholders approved the resolutions proposed to
Additional Extraordinary General Meetings of Shareholders (EGM) may be convened at any time
the EGM. The voting results and the minutes of the EGM are published on our website.
by the Supervisory Board or the Management Board.
The convocation date is legally set at 42 days prior to the date of the AGM.
The record date is legally set at 28 days prior to the date of the AGM. Those who are registered as
shareholders at the record date are entitled to attend the meeting and to exercise other shareholder
rights. Shareholders may be represented by written proxy.
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VOTING RIGHTS
In the AGM, each ordinary share with a nominal value of €0.04 entitles the holder to cast one
vote, each financing preferred share with a nominal value of €40 entitles the holder to cast 1,000
votes, and each preferred share with a nominal value of €40 entitles the holder to cast 1,000 votes.
Treasury shares held by the company cannot be voted on. The company’s authorized capital
The members of the board of the Stichting are:
Dick Bouma (Chairman), retired Chairman of the Board of Pels Rijcken & Droogleever Fortuijn;
Rob Ruijter, former Chairman of the Supervisory Board of Delta Lloyd; and
Rinze Veenenga Kingma, President of Archeus Consulting BV.
amounts to 82,500,000 common shares of €0.04 par value, 88,500 preferred shares of €40 par
The purpose of the above-mentioned option is to protect the independence, continuity and
value and 6,000 financing preferred shares of €40 par value. As at December 31, 2021, there were
identity of ASMI against influences that are contrary to the interests of ASMI, its enterprise and the
49,297,394 common shares issued and fully paid.
enterprises of all its subsidiaries and stakeholders.
There were no preferred or financing preferred shares issued on December 31, 2021. Financing
preferred shares are designed to allow ASMI to finance equity with an instrument paying a preferred
POWERS
The powers of the AGM are defined in our Articles of Association. The main powers of the
dividend, linked to EURIBOR loans and government loans, without the dilutive effects of issuing
shareholders are to:
additional common shares.
PREFERRED SHARES
Preferred and financing preferred shares are issued in registered form only and are subject to
appoint, suspend, and dismiss members of the Management Board and Supervisory Board;
approve the financial statements;
declare dividends;
discharge the Management Board and Supervisory Board from responsibility for the performance
transfer restrictions. Essentially, a preferred or financing preferred shareholder must obtain the
of their respective duties for the previous financial year;
approval of the ASMI Supervisory Board to transfer shares. If the approval is denied, the Supervisory
Board will provide a list of acceptable prospective buyers who are willing to purchase the shares at a
cash price agreed by the Supervisory Board and the seller within two months of the approval being
denied. If the transfer is approved, the shareholder must complete the transfer within three months,
at which time the approval expires.
appoint the external auditors;
approve amendments to the Articles of Association;
authorize the Management Board to issue shares and grant subscriptions for shares;
withdraw preemptive rights of shareholders upon issuance of shares;
authorize the Management Board to withdraw preemptive rights of shareholders upon issuance
of shares; and
Preferred shares are entitled to a cumulative preferred dividend based on the amount paid up on
authorize the Management Board to repurchase or cancel outstanding shares.
such shares. Financing preferred shares are entitled to a cumulative dividend based on the par value
and share premium paid on such shares.
EXTERNAL RELATIONS
At ASMI we believe that an open dialog with our external stakeholders is key. We provide accurate
STICHTING CONTINUÏTEIT AGREEMENT
ASMI is party to an agreement with Stichting Continuïteit ASM International (Stichting), pursuant
and timely information through, among other things, press releases, our annual reports, quarterly
earnings calls and webcasts, and meetings. At these meetings we discuss the company strategy,
to which the Stichting is granted an option to acquire up to a number of our preferred shares
performance and ask inputs for our materiality assessment. These meetings are held with investors
corresponding with a total par value equal to 50% of the par value of our common shares issued
and NGOs. We do not use lobby groups or make donations to any political party.
and outstanding at the date of the exercise of the option. The Stichting is a non-membership
organization organized under Dutch law. The objective of the Stichting is to serve the company’s
interests. For that objective, the Stichting may, among other things, acquire, own, and vote on
preferred shares in order to maintain our independence and/or continuity and/or identity.
Risk management
Risk management
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RISK MANAGEMENT
We continued to strengthen our risk management approach in 2021, in support of Growth through Innovation. The main purpose of our internal risk
management and control framework is to enable early identification of risks that may impact us and opportunities that could enable further growth,
and the ability to initiate follow-up actions accordingly. Our methodology proactively and periodically monitors risks and key mitigating controls based
on our top-down risk assessment, our bottom-up business processes, and the process controls embedded in these. In 2021, we continued to
focus on ownership and the proactive management of our risks in line with our corporate values: We Care, We Innovate, We Deliver.
RISK MANAGEMENT APPROACH
ASMI’s risk management approach is based on the Committee of Sponsoring Organizations’
(COSO) reference model. It is an integral part of our Corporate Governance Framework, which
MANAGEMENT BOARD
describes how our strategy, mission, vision, and objectives are embedded across our organization.
FIRST LINE OF DEFENSE
SECOND LINE OF DEFENSE
THIRD LINE OF DEFENSE
OWNERSHIP & MANAGEMENT
RISK & CONTROL FUNCTIONS
INDEPENDENT OBJECTIVE
ASSURANCE
BUSINESS & OPERATIONS
MANAGEMENT
OVERSIGHT FUNCTIONS
INTERNAL AUDIT
The objective of our risk management approach is to identify and manage current and emerging
strategic, operational, financial, and compliance risks to which ASMI is exposed. This also enables
us to improve effectiveness and efficiency in our operations, and promotes reliable financial reporting
and compliance with laws and regulations.
We assess the risks that could impact the achievement of our strategic objectives annually at a
consolidated level (top-down approach) with our Risk Committee, as well as our senior management
team and on a process level (bottom-up approach). If necessary, we implement countermeasures
to mitigate the risks within the defined risk appetite, and integrate these countermeasures in our risk
management and control framework.
In addition, to proactively monitor and act on key risks as a result of COVID-19 in 2021, we further
strengthened our focus on process improvements and ownership of key risks and process controls,
both top down and in our primary processes. We did this through training and communication, but
also through focused discussions on our key risks.
Business management provides the Management Board with an annual assurance letter on the
reliability of their financial reporting, the effectiveness of their internal controls, risk management,
and compliance with internal policies, and laws and regulations.
RISKASSESSMENTRISKMANAGEMENT STRATEGY &OBJECTIVESETTING Risk management approachMONITORINGACTIVITIESCONTROLACTIVITIESRISKRESPONSE ABOUT
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Our risk management and internal control activities are organized through the three lines of defense
residual impact of the risks that ASMI is willing to accept in the pursuit of its objectives. The risk
model. The Management Board is ultimately responsible for risk management and compliance in line
appetite per objective or risk area is set annually by the Management Board and evaluated on an
with the risk appetite, and is supported by a:
ongoing basis as events occur throughout the year.
First line of defense: Business and operations management owns and manages risk, which includes
identifying, assessing, controlling, and mitigating risks;
The nature of the risk is a key determinant of our risk appetite:
Second line of defense: Oversight functions support business and operations management and
help ensure that the risk and control procedures have effective metrics and are operating as
intended; and
Third line of defense: Internal Audit provides independent objective assurance on the effectiveness
of governance, risk management, and internal controls, including the manner in which business and
operations management and the oversight functions manage and control risk. Internal Audit brings
a systematic, disciplined approach to evaluate and improve the effectiveness of risk management,
control, and governance processes.
RISK CULTURE
In line with our core values (We Care, We Innovate, We Deliver), ASMI strives for a culture of openness
and transparency, in which identified risks are disclosed proactively, unexpected events are reported
STRATEGIC RISKS
RISK APPETITE
Strategic risks and opportunities may affect
ASMI’s strategic objectives. Strategic risks
include economic, environmental and
political developments, and the need to
anticipate and respond in a timely manner
to market circumstances.
We are willing to accept reasonable risks in
a responsible way to achieve our strategic ambitions
and priorities. Innovation will drive future growth,
and as a result we are willing to take a higher risk in
our longer-term growth areas, such as Epi products
and the spares-and-services market.
OPERATIONAL RISKS
RISK APPETITE
as soon as they occur, and improvement opportunities are discussed and followed up on. The Risk
Committee plays a key role in our risk culture. It is chaired by the Vice President of Strategy and, as
all business units are represented, key follow-up on the monthly meetings is efficiently implemented
Operational risks cover adverse
developments resulting from internal
processes, people, and systems, or from
external events related to our business.
We avoid risks that can negatively impact our
operational goals while ensuring that we meet
our environmental, social, and corporate
governance (ESG) commitments. ASMI has
a very low risk tolerance related to people and
product safety, and associated compliance risks.
We strive for ZERO HARM!
throughout ASMI. Through the Risk Committee, periodic control self-assessments, and a focus on
aligning our top-down risk assessment to our business processes, we are continually increasing risk
awareness to make it an integral part of our company culture and our primary processes. Our Code
of Business Conduct (COBC) applies to all ASMI employees and temporary staff, and describes
how we work in an open, transparent, honest, and socially responsible way. In 2021, we rolled out
updated training sessions to ensure deeper understanding of the COBC, and related dilemmas.
We also assessed the effectiveness of and adherence with the code by actively investigating any
alleged misconduct reported through the Whistleblower program, SpeakUp! and other means, taking
appropriate action, including disciplinary action, where necessary.
RISK APPETITE
Any business activity inevitably leads to taking risks. We deal with each risk in a way that aligns with
the risk appetite established by the Management Board. Risk appetite is the level of risk we deem
acceptable to achieve our objectives. ASMI’s risk appetite is primarily determined based on the
defined and agreed strategic plan and the individual objectives in this plan. Our COBC and other
detailed policies and procedures also help guide our risk appetite. Our risk appetite is the total
FINANCIAL RISKS
RISK APPETITE
Financial risks include risks related to
accounting and reporting, tax, and other
elements that impact our financial position.
We avoid risks that could jeopardize the integrity of
our reporting and/or the financial sustainability of
the company needed to achieve the objectives.
COMPLIANCE RISKS
RISK APPETITE
Compliance risks consist of unanticipated
failures to implement or comply with
relevant laws and regulations.
We strive for full compliance with our COBC and
the national and international laws and regulations
of the markets in which we operate. We have a
zero-tolerance approach to bribery and corruption,
fraud, and all other forms of (illegal) misconduct.
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CONTROL EFFECTIVENESS STATEMENT
The Management Board is responsible for ASMI’s internal risk management and control framework.
All internal control systems, no matter how well designed and implemented, have inherent
limitations. Even systems determined to be effective may not prevent or detect misstatements or
This system is designed to manage the main risks that may prevent ASMI from achieving its
fraud, and can only provide reasonable assurance with respect to disclosure and financial statement
objectives. The internal risk management and control framework, and the evaluation of the
presentation and reporting. Additionally, projections of any evaluation of effectiveness to future
effectiveness of our internal controls and areas for improvement, are regularly discussed with the
periods are subject to the risk that controls may become inadequate due to changed conditions and
Audit Committee and KPMG Accountants, our external auditor. The Audit Committee reports on
that the degree of compliance with the policies or procedures may deteriorate.
these matters to the Supervisory Board.
The Management Board has conducted an assessment of the design and operating effectiveness
best practice provisions 1.2 and 1.4 of the Dutch Corporate Governance Code.
In view of all of the above, the Management Board believes that it complies with the requirements of
of the internal risk management and control framework. Based on this assessment and the current
state of affairs, to the best of its knowledge and belief, the Management Board confirms that:
The internal risk management and control framework provides reasonable assurance for the
reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with Generally Accepted Accounting Principles;
The management report includes a fair review of the development and performance of the
business, and the position of the company and the undertakings, included in the consolidation as
a whole, as well as a description of the principal risks and uncertainties that the company faces;
There are no material risks or uncertainties that could reasonably be expected to have a material
adverse effect on the continuity of ASMI’s operations in the coming twelve months; and
There is a reasonable expectation that ASMI will be able to continue its operations and meet its
liabilities for at least 12 months. As such, it is appropriate to adopt the going concern basis in
preparing the financial reporting.
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RISK CATEGORIES AND FACTORS
The risks detailed below are key current and emerging risks that could impact our ability to achieve
business processes as well as the market we operate in. Our business, processes, and people
growth through innovation; they span everything from our operational processes to our business
continued to show resilience and flexibility in resolving the operational challenges we faced,
environment. Our risk management process is set up to facilitate a company-wide understanding
particularly within manufacturing, customer support, supply chain, and logistics.
of the nature of these risks, the impact they may have on our business, and the way these risks
develop over time, enabling risk-informed decision-making. These risks are not the only ones we
Our risk universe is the basis for our annual top-down risk assessment. The following pages outline
face. Some risks may not yet be known to us, and certain risks that we do not currently believe
the key risks in our risk universe as well as the mitigating measures we have taken.
to be material could become material in the future. In 2021, COVID-19 continued to impact our
RISK UNIVERSE
Product demand & technology change
Competition
7
1
2
Cyclical nature of
semiconductor market
Acquisitions
6
3
People
Climate &
sustainability
5
4
International
operations
STRATEGIC
OPERATIONAL
FINANCIAL
COMPLIANCE
Timeliness, quality
and safety of delivered
product and service
IT systems &
cybersecurity
8
9
10
11
12
R&D program
execution
Customer
dependency
Supplier
performance
Supplier dependency
13
14
Health & safety
Unfavorable changes in
tax laws/regulations
Business process
execution
Product lifecycle
management
15
16
17
18
Manufacturing
disruption
Changes in valuation
of ASMPT
Outsourcing
Foreign
currency
Financial
reporting
Liquidity
19
20
21
22
23
Compliance to laws
and regulations
24
25
26
Intellectual property
Fraud
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STRATEGIC RISKS
MITIGATING MEASURES
1
Inability to respond to changes in product demand and
technology change could result in decreased orders and
financial loss and/or reputation damage.
In addition to our continued focus on new product launches, our investments in R&D continues to increase. In order to ensure optimal
return on investment we have further improved our R&D processes and teams as well as optimal cooperation with key stakeholders.
COVID-19 continues to impact demand from our end markets, in order to ensure successful adaptation to these changes we increased
focus on the key hand off points in our R&D process improving the effectiveness and efficiency of the process.
2
Cyclical nature of the semiconductor market which leads to
abrupt changes in demand resulting in fixed overheads during
downturns or insufficient production capacity during upturns.
We continue to invest in our production facilities to enable the growing demand for our tools. In addition, we outsource generic
manufacturing and continue to optimize our primary processes to enhance scalability and elasticity.
Our financial structure, including cash and a standby credit facility, is set up to further reduce downsides of this risk.
3
Inability to attract and retain qualified management, technical,
sales and support employees could result in delayed product
development, production and diversity of management
resources.
We continue to focus on competitive compensation & benefit packages tailored to the regions we operate in. We have improved our
talent acquisition process to enable growth through innovation and are focusing on successful onboarding of our new colleagues.
In 2021, we took important steps in following up on the 2020 ‘Power of an Open Mind’ program and the engagement survey, we also
launched our corporate values strengthening our corporate culture.
4
Failure to adequately identify and mitigate the risks arising from
operating in an international context such as the political
landscape, changes in legislation, instability, protectionism and
cultural differences could impact our business.
Our primary processes are set up to quickly understand, adapt to, and effectively apply international cultural and legal norms for doing
business. We have global reviews with each region specifically on these topics. Geopolitical tensions continue to increase resulting in
additional trade restrictions, global trade shifts and instability. ASMI strives to support and serve its worldwide customers to the best of its
ability, while being compliant with laws and regulations set by the jurisdictions where we operate, we monitor geo political risks on an
ongoing basis as the impact on the industry and ASMI is not yet known and will change over time.
5
Climate change and transition risks impacting ASM, our
customers, and our supply, potentially causing disruptions in our
value chain and markets.
In the past years we have built a solid foundation of achievements in sustainability. In 2021, we engaged a leading third party to complete
In the past years we have built a solid foundation of achievements in sustainability. In 2021, we engaged a leading third party to complete
a Climate Adaptation Risk and Opportunity Assessment, inclusive of our supply chain.
See the ‘Sustainability’ section of this report for
a Climate Adaptation Risk and Opportunity Assessment, inclusive of our supply chain. See the ‘Sustainability’ section of this report for
more details.
more details.
7
Major competitors or new entrances to the market, establishing
or sustaining a competitive advantage or establishing disruptive
business models.
A process is in place to gather data through competitive analysis which helps us to outperform our competitors by collecting new
A process is in place to gather data through competitive analysis which helps us to outperform our competitors by collecting new
product ideas, improving our business model and service to our customers. In 2021 we increased the capacity in our market intelligence
product ideas, improving our business model and service to our customers. In 2021 we increased the capacity in our market intelligence
department and implemented additional analysis to make sure that relevant information is available on a timely basis.
department and implemented additional analysis to make sure that relevant information is available on a timely basis.
OPERATIONAL RISKS
MITIGATING MEASURES
8
Unsuccessful or slow execution of R&D and missing
key inflections or opportunities.
Our innovative culture enables us to remain a leading supplier of semiconductor equipment and process solutions.
9
Failure to deliver product or service of sufficient quality or
on time resulting in financial loss, rework and/or reduced
future demand.
To support this we continue to invest in R&D. In addition, we continuously improve our approach to co-create and develop technology
roadmaps together with our customers. We also focus on attracting the right talent and maintain our partnerships with key knowledge
leaders in our industry.
We are continuously improving our quality assurance processes and controls to ensure consistent product quality. In addition to
pro-actively managing the supply chain and logistical challenges, we have centralized our quality organization to report directly to the
CEO. This has increased cross-functional focus in support of the 2021 ramp in production. In 2022 we will continue to focus on refining
our key quality processes deeper into the organization. We are also enhancing our software/platform and service processes to enable
quality in alignment with developments in the market and the tool base that is in operation at customer sites.
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OPERATIONAL RISKS
MITIGATING MEASURES
Dependence on a small number of large customers. Loss of a
10 Dependence on a small number of large customers. Loss of a
customer or significant reduction in demand could result in
customer or significant reduction in demand could result in
significant downturn of our financial results.
significant downturn of our financial results.
IT security breaches including cyber attacks resulting in loss of
11 IT security breaches including cyber attacks resulting in loss of
technologies, innovations, IP and process data, downtime or
technologies, innovations, IP and process data, downtime or
disruption of critical business operations. Any breach of our
disruption of critical business operations. Any breach of our
information systems could adversely affect our finances and
information systems could adversely affect our finances and
operating results as well as our reputation.
operating results as well as our reputation.
We focus on building strong and long term relationships with strategic customers, understanding the customer needs and mapping our
We focus on building strong and long term relationships with strategic customers, understanding the customer needs and mapping our
technology roadmap to our customers technology roadmaps.
technology roadmap to our customers technology roadmaps.
An IT risk management framework including IT security management is in place in which we monitor threats and vulnerabilities, conduct
An IT risk management framework including IT security management is in place in which we monitor threats and vulnerabilities, conduct
cyber drills, perform gap assessments, apply remediation and identify improvement projects. The frameworks are supported by policies,
cyber drills, perform gap assessments, apply remediation and identify improvement projects. The frameworks are supported by policies,
processes and controls. In order to assess the robustness of our IT environment a Cybersecurity and IP Protection audit has been
processes and controls. In order to assess the robustness of our IT environment a Cybersecurity and IP Protection audit has been
performed. Further enhancement of the processes and controls related to Cybersecurity and IP Protection is in progress.
performed. Further enhancement of the processes and controls related to Cybersecurity and IP Protection is in progress.
12
13
Failure of suppliers to deliver resulting in financial loss due to
penalties, rework and/or reduced future demand.
Recovery plans are in place, and are continuously assessed and improved. In 2021 our supply chain and logistics were constrained as
a result of COVID, the growing demand and material/component shortage in general. In order to mitigate the risks in relation to this we
further improved primary processes related to regional supplier sourcing, demand planning, and import/export risks.
14
Harm to our people or value chain from injury or illness, that
Harm to our people or value chain from injury or illness, that
impacts our ability to operate or impacts customer trust and
impacts our ability to operate or impacts customer trust and
relations.
relations.
Our EHS organization and Product Safety Engineering organizations are responsible for preventive and corrective action processes and
Our EHS organization and Product Safety Engineering organizations are responsible for preventive and corrective action processes and
the implementation of structural controls within the processes. Proactivity is key to minimize harm, through our product designs and early
the implementation of structural controls within the processes. Proactivity is key to minimize harm, through our product designs and early
reporting culture. Safety leadership collaborations have been set up with key customers to build engagement and collaboration on
reporting culture. Safety leadership collaborations have been set up with key customers to build engagement and collaboration on
mitigating the risks.
mitigating the risks.
FINANCIAL RISKS
MITIGATING MEASURES
21
Financial reporting and/or the disclosures are not complete,
inaccurate or not in accordance with laws & regulations resulting
in reputational damage and/or financial loss.
22 Changes in valuation of ASMPT as a result of ineffective strategy
definition and execution affecting our future financial position.
A financial control framework is in place and we perform an annual fraud risk assessment and take follow up actions based on
the outcome.
We have board representation in ASMPT, as two executive directors are non-executive directors at ASMPT.
COMPLIANCE RISKS
MITIGATING MEASURES
24 Failure to adequately protect our intellectual property and/or
Failure to adequately protect our intellectual property and/or
leakage of our IP.
leakage of our IP.
We regularly monitor the market and take steps, when appropriate, to ensure compliance with our intellectual property rights which may
We regularly monitor the market and take steps, when appropriate, to ensure compliance with our intellectual property rights which may
include various intellectual property related audits.
include various intellectual property related audits.
In addition, control and governance frameworks are in place in our primary processes to establish, maintain and protect our intellectual
In addition, control and governance frameworks are in place in our primary processes to establish, maintain and protect our intellectual
property rights and minimize the risk of data leakage as far as possible.
property rights and minimize the risk of data leakage as far as possible.
25 Non-adherence to laws and regulations resulting in reputation
damage and/or financial loss.
We prepare, roll out and make available relevant policies and procedures which are regularly reviewed and audited. Key controls are
embedded in our primary processes.
Management Board
Management Board
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
99
Benjamin Loh
Paul Verhagen
MANAGEMENT BOARD
The Management Board, supervised and advised by the Supervisory
Board, manages ASMI’s strategic, commercial, financial, and
organizational matters, and appoints senior managers.
The Supervisory Board supervises and advises the Management Board
in the execution of its tasks and responsibilities, and establishes
members’ individual remuneration within the boundaries of the
remuneration policies approved by the Annual General Meeting of
Shareholders and the recommendations by the Nomination, Selection
and Remuneration Committee.
COMPOSITION OF THE MANAGEMENT BOARD
BENJAMIN LOH - CEO
Mr. Loh was appointed as Chairman of the Management Board and President and Chief Executive
PAUL VERHAGEN - CFO
Mr. Verhagen was appointed as member of the Management Board with effect from June 1, 2021
Officer on May 18, 2020, for a period of four years.
by the Annual General Meeting of May 17, 2021. Following this appointment, he was appointed as
CFO from June 1, 2021 by the Supervisory Board
Mr. Loh worked for Oerlikon Corporation from the late 1990s until 2005. He became senior vice
president in 2002 and was responsible for Asia until 2005. He then joined Veeco Instruments Inc.,
Mr. Verhagen has a proven track record and background in Dutch listed companies and the
an American thin-film process semiconductor equipment manufacturer, as senior vice president
electronics industry. He made a career within Royal Philips – starting in the early 90s and until 2013,
and general manager for Asia, before becoming executive vice president responsible for global
he fulfilled numerous executive positions in the Netherlands, the US, Hong Kong, and China. His
field operations. In 2007, he moved to FEI company as senior executive, holding various positions
last two assignments – from 2007 until 2013 – were as executive vice president and CFO of Philips
responsible for sales and service, global business operations, and finally as chief operating officer.
Consumer Lifestyle, and executive vice president and CFO of Philips Lighting. In 2014, he became
In 2015, Mr. Loh joined VAT Vacuum Valves, based in Switzerland, as executive vice president and
the CFO and member of the Management Board of the Dutch stock listed company Fugro N.V.
member of the Group Management Board, where he was responsible for and led worldwide sales
and marketing until late 2017. Mr. Loh is a non-executive director of ASM Pacific Technologies,
Mr. Verhagen is a non-executive director of ASM Pacific Technologies. He is a Dutch national,
and in the past also held positions as non-executive director in several companies (Schneeberger,
holds a Master of Business Administration degree, and has a post-graduate degree as Chartered
Schweiter Technologies AG, and Liteq BV). He also was an advisory board member of Semi China.
Controller. Mr. Verhagen is based in Almere, the Netherlands.
Mr. Loh has a wealth of experience working in the electronics and semiconductor industry and vast
experience as a leader. Mr. Loh has a bachelor’s degree in electronic engineering from the Tohoku
University in Japan. He is of Singaporean nationality, but has spent the last 30 years living mostly
outside of Singapore – in Japan, Hong Kong, China, the UK and the US. Mr. Loh is now based in
Almere, the Netherlands.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
100
RESPONSIBILITIES
In addition to the duties of the Management Board stipulated by law and our Articles of Association,
CONFLICTS OF INTEREST
Each Management Board member shall immediately report any potential conflict of interest to the
the Management Board has the following responsibilities:
Chairman of the Supervisory Board and to the other Management Board members. In such cases,
achieving the aims, strategy, policy, and results of the company;
managing the risks associated with the activities of the company;
ensuring proper financing of the company;
establishing and maintaining disclosure controls and procedures that ensure that all major financial
information is known to the Management Board in order to ensure that the external financial
reporting is achieved in a timely, complete, and accurate manner; and
a Management Board member shall provide the Chairman of the Supervisory Board and the other
Management Board members with all information relevant to the conflict, and follow the procedures
as set out in the Management Board rules.
APPOINTMENT, SUSPENSION, AND DISMISSAL
The AGM appoints a Management Board member based on a binding nomination drawn up by
determining relevant aspects and achieving aims relating to ESG and sustainability.
the Supervisory Board. The AGM may set aside a binding nomination by a resolution taken with
an absolute majority of the votes cast, representing at least one third of the share capital. If such
The Management Board is guided by the interests of the company, taking the interests of
a binding nomination is set aside, a new binding nomination will be drawn up by the Supervisory
all stakeholders into consideration. The members of the Management Board are collectively
Board and submitted to a newly called General Meeting of Shareholders. If this binding nomination
responsible for managing the company. They are collectively and individually accountable to
is set aside, the General Meeting of Shareholders is free to appoint a Management Board member,
the Supervisory Board and the Annual General Meeting of Shareholders (AGM) for executing
but only with an absolute majority of the votes cast representing at least one third of our issued
the Management Board’s responsibilities. The Management Board has the general authority to
capital. A Management Board member may be suspended at any time by the Supervisory Board.
enter into binding agreements with third parties. The Management Board held various meetings
A Management Board member may, in accordance with a proposal by the Supervisory Board, be
throughout 2021. At least once a month, the Management Board meets to discuss and review
dismissed by the AGM through a majority vote. A resolution to suspend or to dismiss a member of
the performance of the company.
RISK MANAGEMENT AND CONTROL FRAMEWORK
The Management Board ensures that the company has an adequately functioning internal risk
the Management Board, other than in accordance with a proposal of the Supervisory Board, shall
require the affirmative vote of a majority of the votes cast at a meeting. The affirmative votes must
represent at least one third of the issued capital.
management and control framework. A comprehensive risk management and control framework,
based on the ‘three lines of defense model’, has been established. This allows the Audit Committee
REMUNERATION
For information regarding the remuneration of the Management Board, please see the remuneration
and the Management Board a clear overview of the effectiveness of internal controls and risk
policy posted on our website, the remuneration report, which is included in this report, and Note 25
management. This is explained in more detail in the ‘Risk management’ section. The Management
to the consolidated financial statements.
Board periodically discusses the internal risk management and control systems with the
Supervisory Board and the Audit Committee. The Management Board provides the Supervisory
Board with all information required for the fulfillment of their obligations and the exercise of their
powers. The Management Board provides the Annual General Meeting of Shareholders with all
information required for the fulfillment of its obligations and the exercise of its powers in a timely
fashion. The Management Board is responsible for the quality and completeness of financial and
other reports that are publicly disclosed by or on behalf of the company, including all reports and
documents the company is required to file.
Supervisory Board
Supervisory Board
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
101
SUPERVISORY BOARD
The Supervisory Board oversees strategic and commercial policymaking
by the Management Board and the way in which it manages and directs
ASMI’s operations and affiliated/associated companies. Members of
the Supervisory Board are appointed by the Annual General Meeting of
Shareholders upon binding nomination by the Supervisory Board.
COMPOSITION
Name
POSITION
Nationality
Martin C.J. van Pernis
Chairman Dutch
Stefanie Kahle-Galonske
Member
German and Swiss
Didier R. Lamouche
Member
French
Marc J.C. de Jong
Member
Dutch
Pauline F.M. van der Meer Mohr Member
Dutch
Adalio T. Sanchez
Monica de Virgiliis
Member
United States
Member
Italian and French
Year of
birth
Initial
appointment
Term
expires
1945
1969
1959
1961
1960
1959
1967
2010
2017
2020
2018
2021
2021
2020
2022
2025
2024
2022
2025
2025
2024
MARTIN C.J. VAN PERNIS
Chairman of the Supervisory Board
Mr. van Pernis is currently Chairman of the Supervisory Boards of the Dutch listed companies
Aalberts NV and CM.com. He is also a member of the Advisory Board of G4S Netherlands.
Mr. Van Pernis was also Chairman of the Supervisory Board of Batenburg NV until May 2018.
Mr. van Pernis studied electrical engineering at the Technical University Delft and Technical High
School The Hague, the Netherlands, and law and economics at Erasmus University Rotterdam,
the Netherlands. Mr. van Pernis is a Dutch national.
STEFANIE KAHLE-GALONSKE
Member of the Supervisory Board
Mrs. Kahle-Galonske was elected as a member of the Supervisory Board in May 2017 and
reappointed for a period of four years on May 17, 2021.
Since April 2016, Mrs. Kahle-Galonske is Group CFO of Egon Zehnder International AG in Zurich,
Switzerland. From March 2013 until March 2016, she was CFO of Markem-Imaje at Dover
Corporation based in Geneva, Switzerland. Between January 2007 and February 2012, she held
various senior executive positions at NXP Semiconductors in France and the Netherlands.
In the past, Mrs. Kahle-Galonske served as non-executive board member of Micronas
Mr. van Pernis was elected as a member of the Supervisory Board in May 2010, and most recently
Semiconductors AG in Switzerland, and Nu-Tune Singapore.
appointed on May 17, 2021 as Chairman of the Supervisory Board until the end of his term at the
2022 AGM.
Mrs. Kahle-Galonske graduated in economics from the Ruhr-University of Bochum, Germany, and
has been a Certified Public Accountant (CPA) since 2002. Mrs. Kahle-Galonske is a German and
Mr. van Pernis made a career at Siemens, fulfilling several executive positions. He joined Siemens
Swiss national.
in 1971, and retired from the Siemens Group at the end of 2009 as Chairman of the Management
Board of Siemens Nederland NV.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
102
DIDIER R. LAMOUCHE
Member of the Supervisory Board
Mr. de Jong is currently a member of the Supervisory Boards of Fugro N.V., a Dutch-listed company,
Nissens A/S, based in Denmark, Fiberline Composites A/S, based in Denmark, Polytech A/S, based
in Denmark, and Sioux B.V., based in the Netherlands, and Chairman of the Supervisory Board of
BDR Thermea Group B.V.
Mr. de Jong holds a master’s degree in physics and mathematics from the VU University of
Mr. Lamouche was elected as a member of the Supervisory Board on May 18, 2020, for a period of
Amsterdam, the Netherlands, and a Master of Business Administration (MBA, executive program)
four years.
from the Erasmus University Rotterdam, the Netherlands, and Rochester, in the United States.
Mr. de Jong is a Dutch national.
Until the end of 2018, Mr. Lamouche was the CEO of IDEMIA (formerly Oberthur Technologies), the world
leader in security and identity solutions. Prior to that, he was CEO of the Euronext-listed Bull Group until
2010. Before that, Mr. Lamouche held several senior executive positions in the semiconductor industry,
most recently as COO of ST Microelectronics, and CEO of ST-Ericsson until 2013.
Mr. Lamouche has held non-executive positions on the public boards of Atari, Soitec and
STMicroelectronics. He is currently non-executive Chairman of the Board at Quadient, a Euronext-
PAULINE F.M. VAN DER MEER MOHR
Member of the Supervisory Board
listed company and leader in enterprise communication systems. He is furthermore a member of
Mrs. van der Meer Mohr was elected as a member to the Supervisory Board on September 29, 2021,
the Supervisory Board of Adecco since 2011 (listed on the SIX in Zurich), and of ACI Worldwide,
for a period of four years.
a leading, Nasdaq-listed software company serving the fintech industry.
Mr. Lamouche graduated in 1981 from the Ecole Centrale de Lyon as an engineer, and has a PhD in
in leadership positions in multinational businesses and academia. She started her career as a lawyer in
semiconductor technology. Mr. Lamouche is a French national, and Chevalier of Legion of Honor.
private practice, prior to joining the Royal Shell group in 1989. In 2004, she joined TNT NV as group HR
Mrs. Van der Meer Mohr is a seasoned non-executive director, and brings more than 35 years experience
MARC J.C. DE JONG
Member of the Supervisory Board
director. From 2006, she served as senior executive vice president and head of group HR for ABN AMRO
Bank N.V. Mrs van der Meer Mohr was appointed president of the executive board of Erasmus University
Rotterdam in 2010. Until her retirement from her executive career in 2016, she was also a member of the
Banking Code Monitoring Commission, and has served on several advisory and supervisory boards.
Mrs. Van der Meer Mohr currently serves as non-executive director of London listed HSBC Holdings Plc
and Nasdaq-listed Viatris Inc., and she chairs the Supervisory Board of EY Netherlands LLP.
Mr. de Jong was elected as a member of the Supervisory Board on May 28, 2018, for a period of
Since 2019, she has served as chair of the Dutch Monitoring Committee Corporate Governance. Most
four years.
recently, she was a member of the Supervisory Boards of Dutch-based ASML Holding N.V.
Mr. de Jong was CEO of LM Wind Power A/S until April 2018. Prior to that, until 2009, he was
and DSM N.V.
a member of the executive management team of NXP Semiconductors. After that, until 2013,
Mrs. Van der Meer Mohr holds a master’s degree in law from Erasmus University Rotterdam, as
he was responsible for professional lighting solutions at Philips Lighting. At the same time, he was
well as a master’s degree in advanced dispute resolution from the University of Amsterdam. She is
a member of the group management committee of Philips.
a Dutch national.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
103
ADALIO T. SANCHEZ
Member of the Supervisory Board
MONICA DE VIRGILIIS
Member of the Supervisory Board
Mr. Sanchez was elected as a member of the Supervisory Board on September 29, 2021, for a
Mrs. de Virgiliis was elected as a member of the Supervisory Board on May 18, 2020, for a period of
period of four years.
four years.
Mr. Sanchez has more than 35 years experience in the tech industry. He is a successful senior
Mrs de Virgiliis has more than 25 years experience in the tech industry. She is a successful senior
executive with strong operational acumen and track record in growing complex global businesses.
executive with proven transformation and growth track records. She was with STMicroelectronics
He was with the IBM Corporation from 1982 to 2014, where he held various senior executive officer
from 2001 to 2015, and then with Infineon Technologies from 2015 to 2017 where she held various
and global general management roles. Most recently, he led two IBM divisions – the x86 systems
senior executive officer and global general management roles. From 2017 to 2019, Mrs. de Virgiliis
unit and retail store solutions point-of-sale systems unit. Previous roles include vice president of
fulfilled the role of chief strategy officer at CEA, the French Atomic & Alternative Energy Commission.
corporate strategy, and before that he ran IBM’s microelectronics division. He was responsible for
semiconductor process technology development, manufacturing, engineering, and the intellectual
She is an experienced Non-Executive Director in the energy and technology spaces. Deeply
property portfolio. He also led IBM’s UNIX systems division.
passionate about energy transition and industry transformation in alignment with the Paris
agreement, she has recently founded Chapter Zero France, under the auspices of the World
Following the divestment of the IBM x86 division to Lenovo Group Limited, Mr. Sanchez moved to
Economic Forum as a part of the global Climate Governance Initiative.
Lenovo and, from 2014 to 2015, served as senior vice president of Lenovo’s Enterprise Systems
Group.
Mrs. de Virgiliis currently serves as a non-executive member of the Board of Directors of the Italian
energy company Saras, listed at the Milan Stock Exchange.
Mr. Sanchez currently serves as a non-executive member of the Board of Directors of the following
Nasdaq-listed US-based companies: Avnet, Inc. a global semiconductor sales and distribution
Mrs. de Virgiliis has a master’s degree in electronic engineering summa cum laude from the
company; ACI Worldwide, Inc. an electronic payments software company, and Snap One Holdings
University of Turin (Politecnico di Torino). Mrs. de Virgiliis is an Italian and French national.
Corp., a smart home technology solutions and distribution company. He is also a member of the
Board of Trustees of US-based MITRE Corporation, a non-profit organization for public good, and
a member of the Board of Directors of Florida International University Foundation.
THE IMPORTANCE OF DIVERSITY
The Supervisory Board recognizes the value of diversity among the members of the Supervisory
Mr. Sanchez has a bachelor’s degree in electrical engineering from the University of Miami, and
Board and the members of the Management Board. Diversity is considered in any event to consist
a Master of Business Administration degree from the Florida International University. He is a US
of gender, specific knowledge, work background, nationality, age and ethnic diversity, (technical)
national.
experience, and skills. With respect to gender, we will have a composition of the Supervisory Board,
representing at least one third of the seats held by either gender at the same time.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
104
RESPONSIBILITIES
The supervision over the policies of our Management Board and the general course of our business,
in which financial and legal aspects as well as financial reporting and specific features of ASMI are
discussed. Every year the training requirements are reviewed and discussed. Subsequently the
and the related management actions, is entrusted to the Supervisory Board. In our two-tier structure
training is organized. The Supervisory Board shall consist of at least three members. The members
under applicable Dutch law, the Supervisory Board is a separate body independent from the
should operate independently of each other and within a good relationship of mutual trust.
Management Board.
They should be experienced in the management of an international, publicly listed company, and
have sufficient time available to fulfill the function of a Supervisory Board member. The Supervisory
The Supervisory Board supervises and advises the Management Board in executing its
Board members appoint a Chairman from among themselves. The Supervisory Board is composed
responsibilities, particularly regarding:
of seven members.
achievement of the company’s objectives;
corporate strategy and the risks inherent in the business activities;
structure and operation of the internal risk management and control systems;
financial reporting process;
compliance with legislation and regulations;
relation of the company to its shareholders; and
relevant aspects of ESG and sustainability-related change.
All members of the Supervisory Board meet the required profile. Supervisory Board members
serve in principle a four-year term and may be re-elected in line with article 2.2 of the Corporate
Governance Code.
REMUNERATION
For information regarding the remuneration of the Supervisory Board, please see the remuneration
report, which is included in our Annual Report 2021, and Note 25 to the consolidated financial
The Supervisory Board is responsible for monitoring and assessing its own performance.
statements.
CONFLICTS OF INTEREST
A Supervisory Board member facing a conflict of interest shall, in accordance with Article 13 of our
COMMITTEES
To more efficiently fulfill its role and in compliance with the Corporate Governance Code,
Supervisory Board rules, inform the Chairman of the Supervisory Board immediately. The Chairman
the Supervisory Board has created two committees: the Audit Committee and the Nomination,
shall, if possible in consultation with the other members of the Supervisory Board, determine the
Selection and Remuneration Committee (NSR).
course of action to be taken.
APPOINTMENT
In accordance with Dutch law and the Corporate Governance Code, the Supervisory Board
AUDIT COMMITTEE
The Audit Committee assists the Supervisory Board in its responsibility to oversee ASMI’s financing,
financial statements, financial reporting process, and system of internal business controls and
has drawn up a profile for its own composition. This Supervisory Board Profile is available on
risk management. The Audit Committee advises the Supervisory Board for the nomination of the
our website. For the selection of future members of the Supervisory Board, we will actively seek
external auditor of the company.
candidates that support the realization of diversity on the earlier mentioned criteria. Any appointment
or reappointment to the Supervisory Board shall be based on the candidate’s match with the
The Audit Committee consists of:
Supervisory Board Profile. For reappointment, the candidate’s performance during the previous
period shall be taken into account. A Supervisory Board member who is available for reappointment
must be interviewed by the Chairman of the Supervisory Board and the Chairman of the
Nomination, Selection and Remuneration Committee. The Chairman of the Nomination, Selection
and Remuneration Committee must be interviewed by the Chairman of the Supervisory Board.
All members of the Supervisory Board follow an introduction program after their first appointment,
Stefanie Kahle-Galonske (Chairwoman);
Marc de Jong;
Adalio Sanchez; and
Monica de Virgiliis.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
105
The Audit Committee supervises the activities of the Management Board with respect to:
the structure and operation of the internal risk management and control systems, including
supervision of the enforcement of the relevant legislation and regulations;
the role and functioning of internal audit;
policy on tax structure;
the applications of information and communication technology;
financing of the company;
compliance with recommendations and observations of internal and external auditors;
release of financial information; and
relations with the external auditor, including, in particular, its independence, remuneration, and
review the scope and results of internal audits with internal audit;
review performance evaluations relating to the auditor’s independence;
review performance and services of the external auditor; and
review adequateness of the financing structure and tax structure of the company.
The Chief Executive Officer, Chief Financial Officer, Director Internal Audit, Corporate Director
Group Control, and representatives of the external auditor are invited to, and also attend, the Audit
Committee meetings.
Mrs. Kahle-Galonske, chairwoman of the Audit Committee and member of the Supervisory Board, is
any non-audit services performed for the company.
the financial expert taking into consideration her extensive financial background and experience.
The Audit Committee meets periodically to:
consider the adequacy of the internal control procedures;
review the operating results with management and the independent auditors;
review the scope and results of the audit with the independent auditors;
NOMINATION, SELECTION AND REMUNERATION COMMITTEE
The Nomination, Selection and Remuneration Committee (NSR) advises the Supervisory Board on
matters relating to the selection and nomination of the members of the Management Board and
Supervisory Board. The NSR Committee further monitors and evaluates the remuneration policy for
COMMITTEES STRUCTURE AND MEMBER INFORMATION
Audit
Committee
Nomination,
Selection and
Remuneration
Committee
Supervisory
Board
the Management Board.
The NSR Committee consists of:
Didier Lamouche (Chairman);
Pauline van der Meer Mohr;
Martin van Pernis; and
Adalio Sanchez.
Martin C.J. van Pernis
Stefanie Kahle-Galonske
Didier R. Lamouche
Marc J.C. de Jong
Pauline F.M. van der Meer Mohr
Adalio T. Sanchez
Monica de Virgiliis
The NSR Committee ensures that a competitive remuneration structure is provided by
benchmarking with other multinational companies of comparable size and complexity operating in
comparable geographical and industrial markets. The NSR Committee evaluates the achievement of
performance criteria specified per Management Board member. After the evaluation, it recommends
the level of remuneration to the Supervisory Board.
On an annual basis, the NSR Committee reports to the Supervisory Board on the application of the
remuneration policy in the previous year and recommends the remuneration policy and remuneration
report for the following years.
Chairperson
Member
Financial expert
The Chief Executive Officer and the Corporate Vice President Global Human Resources are invited
to, and also attend, the NSR Committee meetings.
Supervisory Board report
Supervisory Board report
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
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SUPERVISORY BOARD REPORT
objectives and the mid-term targets 2020-2025 outlining continued double-digit growth with strong
profitability in the mid term.
Another highlight was the increased focus and acceleration of sustainability objectives.
The company announced during the Investor Day the target to achieve Net Zero by 2035 for
all scopes. This includes the target to source its electricity needs as per 2024 from renewable
sources leading to an estimated reduction of 90% of scope 1 and 2 GHG emissions compared
to 2020.
Following the AGM on May 17, 2021, Jan Lobbezoo retired as Chairman of the Supervisory Board
after three four-year terms. During these years it was a real pleasure working with Jan and I would
like to thank him for all his contributions over the years. Since his retirement I have taken over as
MESSAGE OF THE CHAIRMAN
Chairman of the Supervisory Board.
It has been a pleasure to chair the Supervisory Board of ASMI in 2021, a year of great progress for
We also expanded the Supervisory Board with two new members, Pauline van der Meer Mohr
ASMI. Although COVID-19 continued to impact the company, the Management Board and all the
and Adalio Sanchez. Pauline brings a wealth of board experience as well as functional expertise
employees demonstrated relentless commitment to deliver another strong year.
in corporate governance and human resources, and Adalio brings substantial experience in the
The end markets continued to develop very positively driven by a world that increasingly gets more
digital and more connected each and every year, creating tremendous opportunities for companies
The Supervisory Board wants to thank the Management Board and all the worldwide ASMI
technology and semiconductor markets.
like ASMI.
employees for their enormous commitment and relentless efforts to deliver another very strong
year despite all the difficulties imposed by the pandemic. I also want to thank my colleagues on
The company managed to deliver strong growth with record orders intake, revenue and profits in
the Supervisory Board for all their constructive conversations and contributions.
2021, driven in particular by ALD and Epi.
An important milestone was the presentation of the Growth through Innovation strategy at the
Martin van Pernis
Investor Day on September 28, 2021. The company presented its strategy, its six strategic
Chairman of the Supervisory Board
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
107
During the year under review, the Supervisory Board performed its duties in accordance with
applicable legislation and the Articles of Association of ASM International N.V., and supervised and
MEETINGS OF THE SUPERVISORY BOARD
During 2021, the Supervisory Board met on eight occasions. The attendance of the individual
advised the Management Board on an ongoing basis.
Supervisory Board members is outlined in the overview below. All Supervisory Board members
FINANCIAL STATEMENTS
We present the ASMI 2021 Annual Report in accordance with IFRS, as prepared by the
attended all Supervisory Board meetings with the Management Board during their mandate.
Mr. Jan Lobbezoo did not attend two meetings of the Supervisory Board, which were related to
the succession of the chairperson position. Due to the COVID-19 pandemic, participation was
Management Board and reviewed by the Supervisory Board. Our independent auditors, KPMG
partly virtual.
Accountants N.V., have audited these financial statements and issued an unqualified opinion.
Their report appears on pages 173 to 179. All of the members of the Supervisory Board have
Attendance is defined as the number of meetings attended out of the number of meetings eligible to
signed the financial statements in respect of the financial year 2021.
be attended.
SUPERVISION
Supervision of the Management Board, its policy decisions and actions are entrusted to the
Supervisory Board. In accordance with Dutch law, the Supervisory Board is a separate body,
independent of the Management Board. The Supervisory Board supervises and advises the
Management Board in executing its responsibilities. The profile of the Supervisory Board describes
the range of expertise that should be represented within the Board. The procedures of the
Supervisory Board and the division of its duties are laid down in the Supervisory Board rules.
Both documents are available on our website.
Attendance to meetings in 2021
Committee
Jan C. Lobbezoo
Martin C.J. van Pernis
Stefanie Kahle-Galonske
Didier R. Lamouche
Marc J.C. de Jong
In 2021, following the Annual General Meeting (AGM) of shareholders on May 17, Mr. Jan Lobbezoo
Pauline F.M. van der Meer Mohr*
retired as chairman of the Supervisory Board after being a member of the Supervisory Board
for 12 years. Mr. Martin van Pernis succeeded him as chairman of the Supervisory Board.
Adalio T. Sanchez*
Monica de Virgiliis
During the Extraordinary General Meeting (EGM), which was held on September 29, 2021,
* Appointed during the EGM on September 29, 2021.
Supervisory
Board
Audit
Committee
Nomination,
Selection and
Remuneration
Committee (NSR)
3/5
8/8
8/8
8/8
8/8
2/2
2/2
8/8
2/2
n.a.
4/4
n.a.
4/4
1/1 (visiting)
1/1
3/4
2/2
4/4
n.a.
4/4
2/2
1/1
1/1
n.a.
two new Supervisory Board members were appointed: Mrs. Pauline van der Meer Mohr and
In these meetings, the Boards discussed the strategy and the progress of implementation thereof, the
Mr. Adalio Sanchez.
long-term value creation, operations, business risks, product and market developments, the company’s
organization, management and financial structure, and performance, including further profitability
improvements. Geopolitical developments, sustainability, IT security, and succession planning of the
Supervisory Board and senior management team were also discussed in depth. A recurring item at
each of the Supervisory Board meetings in 2021 was the impact of the COVID-19 pandemic, with
respect to the health and safety of ASMI employees, supply chain, and other impacts on the business.
Other topics addressed by the Supervisory Board were the annual budget, the quarterly financial
results review, the preparation of the quarterly earnings press releases, and ASMI’s first-ever Investor
Day. The Supervisory Board also approved the dividend proposal as prepared by the Management
Board, and proposed (and approved) at the AGM in 2021.
ABOUT
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FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
108
As it happens every year, one of the meetings was earmarked to discuss with the Management
Board the company’s long-term strategy, its planned implementation, and the risks attached
SHAREHOLDERS
In 2021, there were two general meetings: the AGM held on May 17, 2021 and the EGM held on
to realizing it. In the long-term strategy meeting, the Board discussed the semiconductor and
September 29, 2021. In view of the restrictions caused by the COVID-19 pandemic, these were
semiconductor equipment market and outlook, the development of ASMI’s market share in the
held virtually, with shareholders participating via a webcast. For the AGM, voting was possible by
different segments it serves, the development of the competitive environment, technology and
proxy before the meeting, as well as during the meeting via the virtual voting application platform.
market trends, including the development of the ALD and Epi markets for the coming years, the
Shareholders were also able to pose questions prior to and during the AGM. For the EGM, voting
progress with ASMI’s strategic priorities, and ASMI’s long-term revenue and profit & loss forecasts.
was possible prior to the general meeting, and the same was applicable for questions. Questions
Also discussed were the strategic initiatives to be considered to improve the company’s long-term
and answers were posted on the website.
value-creation strategy. This included discussion of ASMI’s sustainability strategy and focus areas.
Our new Sustainability priorities for 2021 to 2025 were reviewed and approved. In subsequent
During the AGM, Mr. Paul Verhagen was appointed as a new member of the Management Board,
meetings in 2022, the Board will follow up on the discussions of strategic topics raised in the long-
and Mrs. Stefanie Kahle-Galonske was reappointed as Supervisory Board member for a period of
term strategy discussion.
four years. A regular dividend of € 2.00 per share was proposed and approved. To optimize the
capital structure, it was furthermore proposed and agreed to decrease the issued share capital by
Due to the pandemic, planned meetings at locations outside the Netherlands, also with the aim to
withdrawing 500,000 shares, which the company held in its own capital, by way of cancellation of
meet local management, had to be postponed. The Supervisory Board also reviewed and discussed
treasury shares.
the functioning of the Supervisory Board, its committees, and its individual members through an
internal assessment as conducted by the members of the Supervisory Board. The composition,
On April 20, 2021, ASMI announced the authorization of a new share buyback program of up to
competencies and functioning of the Supervisory Board, as also described in the Supervisory
€100 million. The program started on July 28, 2021, and was completed on December 17, 2021.
Board profile, and its committees were part of the assessment, as well as the composition of the
Management Board, their performance, and the performance of its individual members, and the
On September 29, 2021, the EGM was held. During this meeting, the shareholders appointed
relationship between the Supervisory Board and the Management Board. The conclusion of the
Mrs. Pauline van der Meer Mohr and Mr. Adalio Sanchez as Supervisory Board members for
assessment was that both the Supervisory Board and the Management Board function properly
a period of four years expiring at the AGM of 2025.
and effectively.
CORPORATE GOVERNANCE
The Supervisory Board is responsible for overseeing the company’s compliance with corporate
SUPERVISORY BOARD COMPOSITION
Following the EGM, the Supervisory Board is composed of seven members. All members are
independent, in line with the Dutch Corporate Governance Code. Mr. Lobbezoo, after having
governance standards and best practices. The Supervisory Board is of the opinion that the
served three four-year terms at the ASMI Board, retired as of the AGM held on May 17, 2021.
company complies with the Dutch Corporate Governance Code.
Mr. van Pernis succeeded him as chairman. During the EGM held on September 29, 2021,
Mrs. Pauline van der Meer Mohr and Mr. Adalio Sanchez were appointed as Supervisory
Board members.
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109
MANAGEMENT BOARD COMPOSITION
The Management Board is composed of two members. During the AGM on May 17, 2021,
Mr. Peter van Bommel, Chief Financial Officer and member of the Management Board, retired
SUPERVISORY BOARD COMMITTEES
AUDIT COMMITTEE
The role of the Audit Committee is described in its charter, which is available on the company’s
from ASMI. On the same day, the AGM approved the nomination of Mr. Paul Verhagen as Chief
website. At the end of 2021, the number of members of the Audit Committee remained at four.
Financial Officer and member of the Management Board of ASMI, for a four-year term, to succeed
In 2021, Mr. Jan Lobbezoo retired as chairman of the Supervisory Board and member of the
Mr. van Bommel.
Audit Committee on May 17, 2021. Mr Adalio Sanchez was appointed as member of the Audit
Committee after his appointment to the Supervisory Board on September 29, 2021. During the year,
DIVERSITY
The Supervisory Board recognizes the value of diversity amongst the members of the Supervisory
the Audit Committee met with the Management Board and KPMG Accountants, the company’s
independent auditors, on four occasions. Audit Committee discussions included: the company’s
Board and the members of the Management Board, as stated in the ASMI diversity policy. Diversity
financial reporting, including the application of accounting principles; the company’s financial
is considered to consist of gender, specific knowledge, work background, nationality, age, ethnic
position and financing programs, and tax structure; the company’s internal risk management
diversity, (technical) experience, and skills.
systems; the effectiveness of internal controls; the internal audits performed and its findings; the
Annual Report and financial statements, and the budget and quarterly progress reports prepared
We will have a composition with at least one third of the seats on the Supervisory Board held by
by the Management Board. The internal auditor participated in all four Audit Committee meetings,
either gender. At the same time, we aim for the best candidate, taking into account the realization
presenting their own actions and findings. On several occasions, the Audit Committee met with
on the diversity criteria and match with the Supervisory Board profile. With the appointment of Mrs.
KPMG Accountants, without the members of the Management Board present, to discuss audit-
Pauline van der Meer Mohr and Mr. Adalio Sanchez, during the EGM, and the retirement of Mr.
related topics. Furthermore, the Audit Committee discussed the auditor’s performance with the
Jan Lobbezoo, the composition of the Supervisory Board is currently such that both genders are
Management Board without KPMG Accountants present.
represented for more than 40%.
In case of open positions on the Supervisory Board or Management Board, the Supervisory
NOMINATION, SELECTION AND REMUNERATION COMMITTEE
The role of the Nomination, Selection and Remuneration Committee (NSR) is described in its
Board prepares a profile based on the required educational and professional background. In the
charter, which is available on the company’s website. In general, the NSR Committee advises the
search, it will actively seek candidates that support the realization of diversity on the previously
Supervisory Board on matters relating to the selection and nomination of new Management Board
mentioned criteria.
members, as well as the remuneration of the members of the Management Board. This Committee
consisted at the start of 2021 of Messrs. van Pernis (Chairman), Lobbezoo and Lamouche.
EDUCATION AND TRAINING
In 2021, as is the case every year, the Management Board and Supervisory Board discussed their
In April 2021, Mr. Lamouche was appointed as Chairman of the NSR. At the same time Mr. De Jong
education and training needs. Both boards – in addition to their regular meetings – committed to
was appointed as temporary member of the NSR by the Supervisory Board given the retirement
a total of one day of training. The focus in 2021 was on the latest developments in ESG, the Dutch
of Mr. Lobbezoo. In addition, Mrs. van der Meer Moor and Mr. Sanchez have been appointed as
Corporate Governance Code, diversity, and insider trading. This training was given by a legal expert.
members of the NSR Committee on December 20, 2021. In the Supervisory Board meeting of
INDEPENDENCE
The Supervisory Board has determined that its current members are all independent, as defined
by the Dutch Corporate Governance Code. Neither the chairman nor any other member of the
Supervisory Board is a former member of ASMI’s Management Board, or has another relationship
with ASMI which can be judged ‘not independent’ of ASMI.
December 20, 2021, it was decided that Mr. de Jong would continue with being a member of
the Audit Committee and stop his temporary appointment as member of the NSR Committee.
ABOUT
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ASMI ANNUAL REPORT 2021
110
In 2021, the NSR Committee held four meetings and multiple conference calls. Topics discussed
included the nomination and appointment of the new Chief Financial Officer and member of
the Management Board, Mr. Verhagen, the succession and talent-review process outcomes for
executives, the search for two open Supervisory Board positions, a proposed transition in the LTI
remuneration program, the 2021 training program for the Supervisory Board, a benchmark on the
Supervisory Board remuneration package, and a study on ASMI’s governance structure. Topics
which were also discussed included the remuneration of the individual members of the Management
Board. The remuneration of the members of the Management Board is disclosed in Note 25 to the
consolidated financial statements of the Annual Report. The remuneration of the members of the
Management Board during 2021 is fully in accordance with the remuneration policy.
SUPERVISORY BOARD
Martin C.J. van Pernis, Chairman
Stefanie Kahle-Galonske
Didier R. Lamouche
Marc J.C. de Jong
Pauline F.M. van der Meer Mohr
Adalio T. Sanchez
Monica de Virgiliis
Almere, the Netherlands
March 3, 2022
Remuneration report
Remuneration report
ABOUT
VALUE CREATION
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FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
111
REMUNERATION REPORT
This report is based on the remuneration policy of ASM International N.V. (ASMI), as presented to and adopted
by the 2020 Annual General Meeting of Shareholders (AGM).
INTRODUCTION
The remuneration report complies with the best practice provisions of the Dutch Corporate
The Supervisory Board will determine the number of performance shares granted for on-target
performance. When doing so, the board will consider two predetermined financial indicators
Governance Code. It is aligned with the new Dutch legal requirements following the implementation
(each with respectively 50% weight): revenue growth compared to market and average
of the EU Shareholders’ Right Directive II. ASMI’s remuneration policy 2020-2023 was adopted by
EBIT percentage measured over a three-year performance period. ASMI applies a face-value
the AGM on May 18, 2020. It was consistently implemented in 2020 with regard to all remuneration
approach to define the number of shares to be granted, which is calculated as follows: target
elements and applied throughout 2021.
level (calculated based on annual base salary) divided by the average share price of ASMI on the
Euronext Amsterdam on the award date and the following four consecutive days. The award date
The 2021 remuneration report refers to ASMI’s remuneration policy, which can be found here.
is immediately following the date of the announcement of the first quarter financial results in April
SHORT-TERM INCENTIVES (CASH BONUS)
Each year, a short-term incentive can be earned based on achieving specific challenging targets.
The target level of the long-term incentive is set at 165% of the annual base salary for the CEO
These targets are based for 75% on company financial targets and 25% on non-financial targets
and 125% for the CFO. The maximum number of shares granted in case of out-performance
(of which half related to ESG in 2021). The on-target bonus percentage for the CEO is 100% of the
of the predetermined performance indicators is 150% of the number at on-target performance.
annual base salary, with a maximum payout of 150% of the annual base salary. The on-target bonus
The number of shares granted will be zero if none of the targets are met.
for the year the award takes place.
percentage for the CFO is 75% of the annual base salary, with a maximum payout of 125% of the
annual base salary.
To show a longer-term commitment to ASMI and align with shareholder interests, the CEO and
CFO are required to hold the vested performance shares for two years (‘holding period’) after the
LONG-TERM INCENTIVES (PERFORMANCE SHARES)
Members of the Management Board are eligible to receive performance shares under the ASMI N.V.
vesting date.
2014 long-term incentive plan for members of the Management Board and ASMI’s remuneration
For 2021, the Supervisory Board awarded the following amounts:
policy to focus on the long-term interest of the company. Performance shares vest after three years,
The previous CFO, Mr. van Bommel, decided to step down as of May 17, 2021, and therefore
subject to meeting predetermined financial indicators and continued services. The members of
no value was awarded in 2021; and
the Management Board are required to hold the vested performance shares for an additional two
The Supervisory Board decided to award the following on-target value to Mr. Loh,
years. However, they are allowed to sell a part of the unconditional shares after three years for tax
CEO: €1,070,685 (4,184 shares), and Mr. Verhagen, the newly appointed CFO: €650,000
purposes. Performance shares will next be granted in April 2022.
(2,159 shares), based on the 2020 remuneration policy.
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ASMI ANNUAL REPORT 2021
112
Outstanding performance shares
The following table shows the outstanding performance shares granted to members of
the Management Board up till and including 2021 and held by members of the Management
Board as at December 31, 2021:
Grant date
Status
Number of shares
at grant date
Performance
adjustment
Vested in
2021
Outstanding
December 31, 2021
Fair value at
grant date
Vesting date
End of holding
period
G.L. Loh 1)
G.L. Loh 1)
P.A.H. Verhagen 2)
July 29, 2020
April 21, 2021
July 28, 2021
Conditional
Conditional
Conditional
P.A.M. van Bommel 3)
April 20, 2018
Unconditional
P.A.M. van Bommel 3)
April 25, 2019
Unconditional
P.A.M. van Bommel 3)
April 22, 2020
Unconditional
8,087
4,184
2,159
9,008
7,343
5,559
–
–
–
–
–
–
4,504
(13,512)
–
–
(7,343)
(5,559)
8,087
4,184
2,159
–
–
–
€123.31
July 29, 2023
July 29, 2025
€245.40
April 21, 2024
April 21, 2026
€291.97
July 28, 2024
July 28, 2026
€45.71
April 20, 2021
May 17, 2021
€57.84
April 25, 2022
May 17, 2021
€100.09
April 22, 2023
May 17, 2021
Total
36,340
4,504
(26,414)
14,430
1 New CEO since May 18, 2020.
2 New CFO since June 1, 2021.
3 Former CFO till May 17, 2021. Holding obligation lapsed as of retirement.
In 2021, all outstanding conditional shares that were granted to the previous CFO in 2019,
respectively 2020, vested at grant level on his retirement date (7,343 and respectively 5,559 shares).
PENSION ARRANGEMENT
The members of the Management Board are given the opportunity to participate in a defined
The shares will become unconditional after three years, depending on whether predetermined
Management Board are compensated with an amount equal to the employer pension contribution.
targets are achieved or not. The financial targets to be achieved are measured over a three-year
The members of the Management Board have the option to participate in a net pension plan offered
performance period and relate to revenue growth compared to the market and an average
by the company or to have the compensation paid out in cash.
contribution plan for their salary up to €112,189. For salary above €112,189, the members of the
EBIT percentage performance measure. The members of the Management Board will hold
the unconditional shares for at least two years. However, they are allowed to sell a part of the
unconditional shares at the vesting date for tax purposes.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
113
TOTAL REMUNERATION OF MANAGEMENT BOARD
The following table provides an overview of the 2021 remuneration elements in € thousands for both
the CEO and CFO, as recognized by the company. A new CFO was announced and appointment
approved by the AGM on May 17, 2021.
1
2
3
4
5
6
Fixed remuneration (K€)
Variable remuneration (K€)
Base salary
Fringe benefits
Short-term cash
incentive (STI)
Share-based
payment expenses 4)
Other 5)
(K€)
Pension expense
(K€)
Total remuneration
(K€)
Proportion of fixed and
variable remuneration
NAME OF DIRECTOR,
POSITION
G.L. Loh
P.A.H. Verhagen 1)
C.D. del Prado 2)
P.A.M. van Bommel 3)
2020
2021
2020
2021
2020
2020
393
–
267
454
2021
649
303
–
171
36
–
28
39
58
25
–
16
99
2020
448
–
293
452
2021
898
594
–
142
2020
141
–
1,158
505
2021
570
165
–
656
–
–
2,400
–
2021
109
41
–
40
69
–
52
95
2020
1,087
–
4,198
1,545
6,830
2021
2,284
1,128
–
1,025
4,437
2020
85%
–%
24%
61%
2021
56%
49%
–%
28%
–
–
–
–
–
Total
1,114
1,123
103
1,193
1,634
1,804
1,391
2,400
216
190
1 New CFO since June 1, 2021.
2 Former CEO till May 18, 2020.
3 Former CFO till May 17, 2021.
4 These amounts represent the vesting expenses related to the financial year.
5 Represents an additional payroll tax payable by the company due to vesting of granted shares in previous years related to the retirement of a member of the Management Board subject to article 32bb of the Dutch Wage Tax Act.
1. Fixed remuneration
For 2021, both the CEO and CFO realized overall an over-achievement on STI (mix of above
Base salary. This is the fixed annual gross base salary. A salary increase of 3% has been
target/stretch realization on company financial targets and above target realization on
implemented as of January 1, 2021, in line with the market movement in the Netherlands.
non-financial targets).
Fringe benefits. This represents the value of benefits and perquisites awarded, such as a company
Share-based payment or long-term incentives. This is a multi-year variable payment of
car, a representation and expense allowance, the premium for health and disability insurance, and
which the value is the value of a performance share award that has become unconditional after
social security contributions.
2. Variable remuneration
a performance period of three years. The unconditional award is the result of targets on revenue
growth compared to market and average EBIT.
Short-term incentive (STI). Each year, a short-term incentive can be earned based on achieving
3. Other items
specific challenging targets. The short-term incentive recognizes three levels: threshold, on-target,
Non-recurring items, which in 2020 represented an additional payroll tax to the company due to
and stretch. Threshold levels for both the CEO and CFO are set at 70% of the on-target level, while
the vesting of shares granted in previous years, related to the retirement of a former member of
stretch targets are set at 140% of the on-target level. If the actual realization is between threshold
the Management Board subject to article 32bb of the Dutch Wage Tax Act.
and on-target or between on-target and stretch, the payout will be based on the relative deviation
against these levels. The targets are 75% based on company financial targets (equally divided
between revenue, EBIT, and free cash flow) and 25% based on non-financial targets (of which half
related to ESG in 2021).
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4. Pension
As of 2015, members of the Management Board no longer participate in the industry-wide pension
CLAW BACK AND ULTIMUM REMEDIUM
In exceptional circumstances, the Supervisory Board will have the discretionary authority to recover
fund. They have opted to participate in a defined contribution plan for their salary up to €112,189.
any paid bonus and awarded shares if evidence shows payments and awards have been awarded
ASMI reimburses an amount equal to the employer pension contribution for their salary above
based on incorrect financial or other data (claw back).
€112,189. The CEO and CFO can opt either to participate in a net pension plan offered by the
company or to have the cost for participating paid out directly. The pension contributions vary from
If a variable component conditionally awarded in a previous financial year would, in the opinion
7.2% to 28.4% of the pensionable salary, depending on age. The members of the Management
of the Supervisory Board, produce an unfair result due to extraordinary circumstances during
Board contribute 4.6% of their pensionable salary, and ASMI pays the remaining part. There are
the period in which the predetermined indicators have been or should have been achieved, the
no arrangements regarding early retirement.
Supervisory Board has the authority to adjust the value of bonus and shares downwards or
5. Total remuneration
upwards (ultimum remedium).
Value equals sum of 1, 2, 3, and 4 as described above.
The NSR Committee concluded for 2021 that no circumstances have been identified that result in
6. Proportion of fixed and variable remuneration
The relative proportion of fixed remuneration: By dividing the sum of fixed components: column 1
and the fixed part of pension expense presented in column 4 by the amount of total remuneration
(column 5), multiplied by 100%.
any adjustments or claw back of variable remuneration.
COMPLIANCE TO REMUNERATION POLICY AND LONG-TERM
PERFORMANCE
The Supervisory Board reviewed the remuneration policy in 2020. This reviewed policy was
presented to and approved by the AGM on May 18, 2020, and became applicable in 2020.
Relative proportion of variable remuneration: By dividing the sum of the variable components
The Supervisory Board review included an analysis of different scenarios.
(columns 2, 3 and the variable part of the pension expense in column 4, if any) by the amount
of total remuneration (column 5), multiplied by 100%.
The purpose of the remuneration policy for the members of the Management Board of ASMI is
to provide compensation that:
MANAGEMENT SERVICE AGREEMENTS
The CEO and CFO have a management service agreement with ASMI or one of its related
Motivates and rewards executives in both the Management Board and Supervisory Board with
a balanced and competitive remuneration, in line with their role and responsibilities;
subsidiaries, in accordance with Dutch law, for four years:
Allows ASMI to attract, reward, and retain highly qualified executives with the required
Mr. Loh started on May 18, 2020, and was appointed for a four-year term based on
background, skills, and experience to implement ASMI’s strategy in a highly competitive global
a management service agreement; and
industry;
Mr. Verhagen started on June 1, 2021, and was appointed for a four-year term based on
Ensures that short-term operational results and long-term sustainable value creation are
a management service agreement.
balanced; and
For future new appointments to the Management Board, the term of the appointment will also be
stakeholders in the medium- and long-term to deliver sustainable performance in line with
set at four years.
ASMI’s strategy, purpose, and values.
Is transparent, fair and reasonable, and aligns with the interests of ASMI, shareholders, and other
As mentioned in the management service agreements of the members of the Management Board, in
the case of termination of the contract on behalf of the company, the members of the Management
Board are eligible for a severance payment of a maximum one-year annual gross base salary.
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ASMI ANNUAL REPORT 2021
115
COMPARATIVE INFORMATION ON THE CHANGE OF REMUNERATION
AND COMPANY PERFORMANCE
The figures presented are indexed compared to the previous financial year.
Annual change
2017/2016
2018/2017
2019/2018
2020/2019
2021/2020
Information regarding 2021
Management Board remuneration
G.L. Loh, CEO (as of May 18, 2020)
P.A.H. Verhagen, CFO (as of June 1, 2021)
P.A.M. van Bommel, CFO (until May 17, 2021)
C.D. del Prado, CEO (until May 18, 2020)
Company performance
Revenue
EBIT
Free cash flow*
Qualitative/non-financial strategic objectives/targets
Average remuneration of employees (K€)
Average remuneration of employees
CEO pay ratio
–%
–%
107%
112%
123%
133%
125%
113%
–%
–%
101%
105%
111%
119%
80%
103%
–%
–%
123%
124%
157%
171%
418%
128%
–%
–%
101%
64%
103%
142%
48%
88%
210%
–%
66%
–%
130%
150%
222%
98%
2017
2018
2019
2020
2021
78
25
75
27
85
31
88
27
87
29
* Comparative information is calculated based on the revised free cash flow definition as applied in the 2021 Annual Report.
Former CFO retired May 17, 2021
Former CEO retired May 18, 2020
The ratio of the CEO’s remuneration and the average remuneration of all other employees
The 2021 ASMI remuneration report considers the draft guidelines to specify the standardized
(the pay ratio) is calculated by dividing the CEO’s remuneration by the average remuneration of
presentation of the remuneration report as stated in Directive 2007/36EC of the European
all employees. The CEO’s remuneration is the total annualized base salary and bonus of the CEO as
Parliament, and amended by Directive (EU) 2017/828, Article 9b (6).
well as share-based payment (extrapolated to a full year LTI value based upon three consecutive
yearly grants with each a 36-month vesting period). The average remuneration of all employees is
This report is the remuneration report required in accordance with article 2:135b of the Dutch Civil
calculated by dividing the total personnel costs (wages, salaries, and share-based payments), minus
Code and the Dutch Corporate Governance Code.
the CEO’s remuneration, by the total number of employees (minus CEO). The pay ratio is in line with
the anticipated internal development of pay levels.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
116
REMUNERATION OF THE SUPERVISORY BOARD
The 2021 remuneration report refers to the remuneration policy of ASMI, which can be found here.
The following table presents information on all remuneration (base compensation, no bonuses,
long-term incentives or pensions were paid) from the company (including its subsidiaries) for
services in all capacities to all current and former members of the Supervisory Board:
Year ended December 31,
Annual fee
Committee fee
Total remuneration
2020
2021
2020
2021
2020
2021
70.0
50.0
19.1
50.0
50.0
31.0
31.0
–
–
26.5
62.4
–
50.0
50.0
50.0
50.0
12.8
12.8
13.5
8.5
2.3
10.0
7.5
3.7
4.7
–
–
5.1
6.9
–
10.0
11.2
7.6
7.5
–
–
83.5
58.5
21.4
60.0
57.5
34.7
35.7
–
–
31.6
69.3
–
60.0
61.2
57.6
57.5
12.8
12.8
301.1
314.5
50.2
48.3
351.3
362.8
Supervisory Board:
J.C. Lobbezoo 3)
M.C.J. van Pernis
U.H.R. Schumacher 1)
S. Kahle-Galonske
M.J.C. de Jong
D.R. Lamouche 2)
M. de Virgiliis 2)
P.F.M. van der Meer Mohr 4)
A.T. Sanchez 4)
TOTAL
1 Period to May 18, 2020.
2 Period as of May 18, 2020.
3 Period to May 17, 2021.
4 Period as of September 29, 2021.
Information
regarding
2021
Annual change
2017/2016
2018/2017
2019/2018
2020/2019
2021/2020
Supervisory Board remuneration
H.W. Kreutzer
J.C. Lobbezoo
M.C.J. van Pernis
U.H.R. Schumacher
S. Kahle-Galonske
M.J.C. de Jong
D.R. Lamouche
M. de Virgiliis
P.F.M. van der Meer Mohr
A.T. Sanchez
100%
100%
100%
100%
–%
–%
–%
–%
–%
–%
41%
112%
107%
107%
183%
–%
–%
–%
–%
–%
-%
106%
104%
105%
107%
169%
–%
–%
–%
–%
-%
100%
100%
38%
100%
100%
–%
–%
–%
–%
-%
38%
119%
-%
100%
106%
166%
161%
–%
–%
Any recommended changes to the remuneration of members of the Supervisory Board will be
submitted to the AGM for approval.
The remuneration of members of the Supervisory Board was most recently revised during the 2018
AGM. A new benchmark analysis was conducted in the fourth quarter of 2021, which will lead to
a proposal to adjust the remuneration of members of the Supervisory Board, subject to approval by
the AGM on May 16, 2022.
No variable compensation (bonus or performance shares) nor pension benefits have been granted
to members of the Supervisory Board.
DEROGATIONS FROM REMUNERATION POLICY
The Supervisory Board has not derogated or deviated from the remuneration policy other than the
sign on arrangement for the new CFO as approved by the AGM on May 17, 2021.
ASMI does not provide any loans, advanced payments, deposits, or related guarantees to the CEO,
CFO, or Supervisory Board.
External auditor
External auditor
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GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
117
EXTERNAL AUDITOR
In accordance with Dutch law, ASMI’s external auditor is appointed by the Annual General Meeting of Shareholders
and is nominated for appointment by the Supervisory Board upon advice from the Audit Committee and the
Management Board. Our current external auditor, KPMG, was reappointed as external auditor by the 2021
AGM for the reporting year 2021.
The external auditor is present at our AGM to respond to questions, if any, from the shareholders
about the auditor’s report on the financial statements.
TAX SERVICES
The Audit Committee may preapprove expenditures up to a specified amount per engagement and
in total for identified services related to tax matters. Additional services exceeding the specified
The Audit Committee has determined that the provision of services by KPMG and its member firms
preapproved limits, or involving service types not included in the preapproved list, require specific
is compatible with maintaining KPMG’s independence. All audit and permitted non-audit services
Audit Committee approval.
provided by KPMG and its member firms during 2021 were preapproved by the Audit Committee.
AUDIT COMMITTEE POLICIES AND PROCEDURES
The Audit Committee has adopted the following policies and procedures for preapproval of all audit
OTHER SERVICES
In the case of specified services for which utilizing our external auditor creates efficiencies, minimizes
disruption or preserves confidentiality, or for which management has determined that our external
and permitted non-audit services provided by our external auditor.
auditor possesses unique or superior qualifications to provide such services, the Audit Committee
AUDIT SERVICES
Management submits to the Audit Committee for preapproval the scope and estimated fees
for specific services directly related to performing the independent audit of our statutory and
consolidated financial statements for the current year.
AUDIT-RELATED SERVICES
The Audit Committee may preapprove expenditures up to a specified amount for services included
in identified service categories that are related extensions of audit services and are logically
performed by the auditors. Additional services exceeding the specified preapproved limits require
specific Audit Committee approval.
may preapprove expenditures up to a specified amount per engagement and in total. Additional
services exceeding the specified preapproved limits, or involving service types not included in
the preapproved list, require specific Audit Committee approval.
Declarations
Declarations
ABOUT
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GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
118
DECLARATIONS
COMPLIANCE WITH DUTCH CORPORATE GOVERNANCE CODE
The Dutch Corporate Governance Code was last amended on December 8, 2016. As of 2018,
CORPORATE GOVERNANCE STATEMENT
ASMI complies with the Dutch Corporate Governance Code. All required information is part of
Dutch listed companies are required to report on compliance with the revised Code. The full text of
this Annual Report.
the Dutch Corporate Governance Code can be found on the website of the Monitoring Commission
Corporate Governance Code.
Corporate governance-related documents are available on our website. These include, among
others, the Supervisory Board profile, Supervisory Board rules, Management Board rules, the
ASMI applies the relevant principles and best practices of the revised Code applicable to the
Audit Committee charter, the Nomination, Selection and Remuneration Committee charter, the
company, to the Management Board, and to the Supervisory Board, in the manner set out in the
COBC, the whistleblower policy, the anti-fraud policy, the rules concerning Insider Trading, the
‘Corporate governance’ section, as long as it does not entail disclosure of commercially sensitive
remuneration policy, diversity policy, and policy regarding communications and bilateral contacts
information, as accepted under the Code.
with shareholders.
ASMI agrees with principle 3.2.3 of the Code that in most circumstances a maximum severance
payment of one year for Management Board members is appropriate. However, we want to reserve
ARTICLE 10 EU TAKEOVER DIRECTIVE DECREE
The Management Board states that the information required under Article 10 of the EU Takeover
the right to agree to different amounts in case we deem this to be required by the circumstances.
Directive Decree is disclosed herein to the extent that it is applicable to ASMI.
Any deviations will be disclosed.
RESPONSIBILITY STATEMENT
The members of the Management Board state that, to the best of their knowledge, the statutory
financial statements prepared in accordance with IFRS-EU and Title 9 of part 2 of the Dutch Civil
Code as included in this Annual Report 2021 provide a true and fair view of the assets, liabilities,
financial position, and results of the company and its subsidiaries included in the consolidated
statements, and that the management report provides a true and fair view of the position and the
business of the company and its subsidiaries, and the Annual Report 2021 provides a description of
the principal risks and uncertainties that the company faces.
FINANCIAL STATEMENTS
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
119
FINANCIAL STATEMENTS
Consolidated financial statements
Consolidated statement of profit or loss
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
ASM International N.V. financial statements
Company balance sheet
Company statement of profit or loss
Notes to the company financial statements
Independent auditor’s report
120
120
121
122
123
124
125
165
165
166
167
173
In 2021, revenue grew by 30%
to a new record of €1.7 billion.
Growth was particularly driven
by our ALD sales. Operating result
increased from €327.1 million to
€491.5 million in 2021.
Gross profit increased from €623.6 million to
€828.1 million in 2021. The financial position
remained strong with a cash position of
€491.5 million at the end of 2021. Cash from
operations increased from €264.4 million to
€380.6 million in 2021 on the back of improved
profitability and a reduced outflow due to
working capital.
Consolidated financial statements
Consolidated statement of profit or loss
Consolidated financial statements
Consolidated statement of profit or loss
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
120
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
(EUR thousand, except per share data)
Revenue
Cost of sales
Gross profit
Other income
Operating expenses:
Selling, general and administrative
Research and development
Total operating expenses
Result from operations
Finance income
Finance expense
Foreign currency exchange gain (loss)
Net finance income (costs)
Share in income of investments in associates
Result before income taxes
Income taxes
Net earnings from operations, attributable to common shareholders
Per share data
Basic net earnings per share (EUR):
From operations
Diluted net earnings per share (EUR):
From operations
Weighted average number of shares (thousand):
Basic
Diluted
The notes on the following pages are an integral part of these consolidated financial statements.
Notes
21
23
3
23
23
17
17
17
6
22
24
Year ended December 31,
2021
1,729,911
(901,780)
828,131
4,071
2020
1,328,122
(704,553)
623,569
—
(157,424)
(139,002)
(296,426)
327,143
141
(2,008)
(23,157)
(25,024)
31,950
334,069
(48,673)
285,396
5.84
5.78
48,907
49,359
(189,547)
(151,197)
(340,744)
491,458
23
(2,012)
33,473
31,484
74,382
597,324
(102,615)
494,709
10.17
10.11
48,645
48,909
Consolidated statement of comprehensive income
Consolidated statement of comprehensive income
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
121
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(EUR thousand)
Net earnings from operations, attributable to common shareholders
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation
Share in other comprehensive income (loss) of investments in associates
Items that may be subsequently reclassified to profit or loss:
Foreign currency translation effect
Other comprehensive income for the year, net of income tax
Total comprehensive income, attributable to common shareholders
The notes on the following pages are an integral part of these consolidated financial statements.
Notes
Year ended December 31,
2021
494,709
2020
285,396
13
6
12
374
(2,296)
(1,922)
(98,833)
(100,755)
184,641
181
11,833
12,014
91,273
103,287
597,996
Consolidated statement of financial position
Consolidated statement of financial position
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
122
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(EUR thousand)
Assets
Right-of-use assets
Property, plant and equipment
Goodwill
Other intangible assets
Investments in associates
Deferred tax assets
Other non-current assets
Evaluation tools at customers
Employee benefits
Total non-current assets
Inventories
Accounts receivable
Income taxes receivable
Other current assets
Cash and cash equivalents
Total current assets
Total assets
Equity and liabilities
Equity
Lease liabilities
Deferred tax liabilities
Total non-current liabilities
Accounts payable
Provision for warranty
Income taxes payable
Accrued expenses and other payables
Total current liabilities
Total liabilities
Total equity and liabilities
The notes on the following pages are an integral part of these consolidated financial statements.
Notes
2020
December 31,
2021
2
3
4
5
6
22
7
13
8
9
22
10
11
12
22
14
22
15
23,387
213,967
11,270
209,924
742,714
196
6,590
69,474
1,431
1,278,953
162,199
280,061
553
72,945
435,228
950,986
26,938
257,017
11,270
274,833
848,812
69
6,792
63,717
1,982
1,491,430
211,841
446,724
18,614
50,972
491,507
1,219,658
2,229,939
2,711,088
1,854,724
2,241,754
13,045
21,892
34,937
124,507
18,987
67,857
128,927
340,278
375,215
15,886
45,748
61,634
175,436
27,181
14,519
190,564
407,700
469,334
2,229,939
2,711,088
Consolidated statement of changes in equity
Consolidated statement of changes in equity
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
123
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(EUR thousand except for share data)
Balance as of January 1, 2020
Net earnings
Other comprehensive income
Total comprehensive income
Dividend paid to common shareholders
Compensation expense share-based payments
Exercise stock options out of treasury shares
Vesting restricted shares out of treasury shares
Purchase of common shares
Cancellation of common shares out of treasury shares
Other movements of investments in associates:
Dilution
Balance as of December 31, 2020
Net earnings
Other comprehensive income
Total comprehensive income
Dividend paid to common shareholders
Compensation expense share-based payments
Exercise stock options out of treasury shares
Vesting restricted shares out of treasury shares
Purchase of common shares
Cancellation of common shares out of treasury shares
Other movements in investments in associates:
Dilution
Balance as of December 31, 2021
Notes
Number of common
shares outstanding
48,866,220
Common
shares
2,052
Capital in excess
of par value
43,676
Treasury
shares at cost
(169,707)
Retained
earnings
1,815,690
Other
reserves 1)
126,940
Total equity
1,818,651
12
13
13
13
12
12
6
12
13
13
13
12
12
6
—
—
—
—
—
127,324
229,823
(508,685)
—
—
—
—
—
—
—
—
—
(60)
—
48,714,682
—
1,992
—
—
—
—
—
123,521
193,462
(462,988)
—
—
—
—
—
—
—
—
—
(20)
—
48,568,677
—
1,972
—
—
—
—
12,792
(5,923)
(16,043)
—
—
—
34,502
—
—
—
—
17,242
(7,344)
(19,119)
—
—
—
25,281
—
—
—
—
—
8,697
16,043
(67,505)
107,510
285,396
—
285,396
(98,688)
—
—
—
—
(107,450)
—
(104,962)
2,059
1,897,007
—
—
—
—
—
11,974
19,119
(139,150)
57,622
494,709
—
494,709
(96,893)
—
—
—
—
(57,602)
—
(100,755)
(100,755)
—
—
—
—
—
—
—
26,185
—
103,287
103,287
—
—
—
—
—
—
285,396
(100,755)
184,641
(98,688)
12,792
2,774
—
(67,505)
—
2,059
1,854,724
494,709
103,287
597,996
(96,893)
17,242
4,630
—
(139,150)
—
—
(155,397)
3,205
2,240,426
—
129,472
3,205
2,241,754
1 Other reserves consist of the currency translation reserve, remeasurement on net defined benefit and the reserve for proportionate share in other comprehensive income of investments in associates. See Note 12.
The notes on the following pages are an integral part of these consolidated financial statements.
Consolidated statement of cash flows
Consolidated statement of cash flows
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
124
CONSOLIDATED STATEMENT OF CASH FLOWS
(EUR thousand)
Cash flows from operating activities
Net earnings from operations
Adjustments to reconcile net earnings to net cash from operating activities
Depreciation, amortization and impairments
Net loss (gain) on sale of property, plant and equipment
Share-based compensation
Net finance (income) costs
Share in income of investments in associates
Income tax
Changes in evaluation tools at customers
Changes in employee benefits pension plans
Income tax paid
Operating cash flows before changes in working capital 1)
Decrease (increase) in working capital: 1)
Accounts receivable
Other current assets
Inventories
Provision for warranty
Accounts payable, accrued expenses and other payables
Net cash from operating activities
Cash flows from investing activities
Capital expenditures
Proceeds from sale of property, plant and equipment
Capitalized development expenditures
Purchase of intangible assets
Dividend received from associates
Net cash used in investing activities
Cash flows from operating activities after investing activities 1)
Cash flows from financing activities
Payment of lease liabilities
Purchase of treasury shares
Proceeds from issuance of treasury shares
Dividends to common shareholders
Net cash used in financing activities
Foreign currency translation effect on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
1 Non-IFRS performance measure. Please see Glossary and definitions.
The notes on the following pages are an integral part of these consolidated financial statements.
Notes
Year ended December 31,
2021
2020
285,396
494,709
2,3,5,7
3
13
6
22
7
3
3
5
5
6
2
12
13
11
11
89,029
—
12,792
11,975
(31,950)
48,673
(39,710)
(407)
(8,055)
367,743
(93,000)
(2,006)
498
3,814
(12,696)
264,353
(95,441)
2,348
(64,126)
(3,230)
16,142
(144,307)
120,046
(7,819)
(66,715)
2,774
(98,688)
(170,448)
(12,244)
(62,646)
497,874
435,228
95,580
(4,071)
17,242
(23,510)
(74,382)
102,615
(7,980)
(339)
(151,623)
448,241
(154,030)
15,350
(39,148)
7,140
103,087
380,640
(72,199)
6,159
(81,973)
(2,680)
36,297
(114,396)
266,244
(7,854)
(140,142)
4,630
(96,893)
(240,259)
30,294
56,279
435,228
491,507
Notes to the consolidated financial statements
Notes to the consolidated financial statements
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
125
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. GENERAL INFORMATION/SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
GENERAL INFORMATION
ASM International N.V. (ASMI, or the company) is a Dutch public liability company domiciled in
the Netherlands with its principal operations in Europe, the United States of America, and Asia.
BASIS OF PREPARATION
The consolidated financial statements have been prepared under the historical cost convention,
unless otherwise indicated. The company applies the going concern basis in preparing its
consolidated financial statements.
The company dedicates its resources to the research, development, manufacturing, marketing
Historical cost is generally based on the fair value of the consideration given in exchange for goods
and servicing of equipment and materials used to produce mainly semiconductor devices.
and services.
The company is registered at Versterkerstraat 8, 1322 AP Almere, the Netherlands.
The company's shares are listed for trading on the Euronext Amsterdam Stock Exchange
values, for both financial and non-financial assets and liabilities.
(symbol ASM).
The accompanying consolidated financial statements include the financial statements of
transaction between market participants at the measurement date, regardless of whether that price
ASM International N.V. and its consolidated subsidiaries (together also referred to as ASMI, or
is directly observable or estimated using another valuation technique.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
A number of the company’s accounting policies and disclosures require the measurement of fair
the company). ASMI's subsidiaries are listed in Note 28 and investments in associates are listed
in Note 6.
The company has an established approach with respect to the measurement of fair values. If
third-party information, such as broker quotes or pricing services, is used to measure fair values,
BASIS FOR ACCOUNTING
The consolidated financial statements for the year ended December 31, 2021 have been prepared
the company assesses and documents the evidence obtained from the third parties to support the
conclusion that such valuations meet the requirements of IFRS, including the level in the fair-value
in accordance with International Financial Reporting Standards (IFRS) as adopted by the European
hierarchy, in which such valuations should be classified.
Union and also comply with the financial reporting requirements included in Section 362(9) of Part 9,
Book 2 of the Dutch Civil Code.
Fair values are categorized into different levels in a fair-value hierarchy based on the inputs used in
The consolidated financial statements have been prepared by the Management Board of the
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
company and authorized for issue on March 3, 2022, and will be submitted for adoption to the
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
Annual General Meeting of Shareholders (AGM) on May 16, 2022.
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
the valuation techniques as follows:
The consolidated financial statements will be filed with the AFM and at the Trade Register of the
inputs).
Chamber of Commerce in Almere, the Netherlands within eight days of adoption by the 2022 AGM.
FUNCTIONAL AND PRESENTATION CURRENCY
The consolidated financial statements are presented in Euros (EUR), which is the company's
functional currency. All amounts have been rounded to the nearest thousand, unless otherwise
indicated.
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair-
value hierarchy, then the fair-value measurement is categorized in its entirety in the same level of the
fair-value hierarchy as the lowest level input that is significant to the entire measurement.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
126
Further information about the assumptions made in measuring fair values is included in the
following notes:
Note 13 - Employee benefits; and
Note 17 - Financial instruments and financial risk management.
USE OF ESTIMATES AND JUDGMENTS
In preparing these consolidated financial statements, management has made judgments, estimates
CRITICAL ACCOUNTING POLICIES
A critical accounting policy is defined as one that is both material to the presentation of ASMI’s
consolidated financial statements and that requires management to make difficult, subjective or
complex judgments that could have a material effect on ASMI’s financial condition or results of
operations. Specifically, these policies have the following attributes: (1) ASMI is required to make
assumptions about matters that are highly uncertain at the time of the estimate; and (2) different
estimates ASMI could reasonably have used, or changes in the estimate that are reasonably likely to
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
occur, could have a material effect on ASMI’s financial condition or results of operations.
from other sources. The estimates and associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual results may differ from these estimates.
Estimates and assumptions about future events and their effects cannot be determined with
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are
to be applicable and reasonable under the circumstances. These estimates may change as new
certainty. ASMI bases its estimates on historical experience and various other assumptions believed
recognized prospectively.
events occur, additional information is obtained, and as ASMI’s operating environment changes.
These changes have historically been minor and have been included in the consolidated financial
Information about assumptions and estimation uncertainties that have a significant risk of resulting
statements as soon as they became known. In addition, management is periodically faced with
in a material adjustment to the carrying amounts of assets and liabilities within the year ended
uncertainties, the outcomes of which are not within its control and will not be known for prolonged
December 31, 2021 is included in the following notes:
Notes 3, 5, 6 and 7 - Valuation of non-financial assets; and
Note 8 - Valuation of allowance for obsolescence inventories.
COVID-19
In 2021, we continued to experience tight supply constraints as a result of COVID-19 restrictions
in certain countries where our suppliers are located. We worked collaboratively with suppliers
periods of time. Based on a critical assessment of its accounting policies and the underlying
judgments and uncertainties affecting the application of those policies, management believes that
ASMI’s consolidated financial statements are fairly stated in accordance with IFRS, and provide
a meaningful presentation of ASMI’s financial condition and results of operations. An analysis
of specific sensitivity to changes of estimates and assumptions is included in the notes to the
(consolidated) financial statements.
to mitigate any adverse impact in delivery and availability. The company's performance was not
Management believes that the following accounting policies are critical:
materially impacted by COVID-19 and we were able to meet most of our customer demands.
Revenue over 2021 increased to €1.7 billion, up 34% at constant currencies (30% as reported).
We therefore do not view the COVID-19 outbreak as a triggering event for our accounting.
ASMI will continue to monitor the impact of COVID-19 closely.
revenue recognition;
inventories;
evaluation of long-lived assets for impairment;
evaluation of investments in associates for impairment;
intangible assets for capitalization and for impairment; and
income taxes.
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CHANGES IN ACCOUNTING POLICIES
Application of new and revised International Financial Reporting Standards (IFRS).
Subsidiaries
Subsidiaries are entities controlled by the company. The financial statements of subsidiaries are
included in the consolidated financial statements from the date on which control commences until
New and amended IFRS Standards that are effective for the current year
the date on which control ceases.
The company has initially adopted Interest Rate Benchmark Reform – Phase 2 (Amendments to
IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) from January 1, 2021. These changes have been
Interests in equity-accounted investees
assessed for their potential impact and do not have a material effect on the company's consolidated
The company’s interests in equity-accounted investees comprise investments in associates.
financial statements.
Associates are those entities in which the company has significant influence, but not control or joint
ACCOUNTING POLICIES
The company has consistently applied the following accounting policies to all periods presented in
these consolidated financial statements.
Consolidation
control, over the financial and operating policies.
Interests in associates are accounted for using the equity method. They are initially recognized at
cost, which includes transaction costs. Upon acquisition of the investment in an associate, any
excess of the cost of the investment over the company’s share of the net fair value of the identifiable
assets and liabilities of the investee is recognized as goodwill, which is included in the carrying
The consolidated financial statements include the accounts of ASMI and all of its subsidiaries where
amount of the investment.
ASMI holds a controlling interest. Non-controlling interest is disclosed separately, where appropriate,
in the consolidated financial statements.
Subsequent to initial recognition, the consolidated financial statements include the company's share
of the profit or loss and other comprehensive income (OCI) of equity-accounted investees, until the
Control is achieved when ASMI has:
date on which significant influence ceases.
the power over an investee;
exposure, or rights, to variable returns from its involvement with the investee; and
the ability to use its power over the investee to affect the amount of the investor's returns.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealized income and expenses arising from
intra-group transactions, are eliminated. Unrealized gains arising from transactions with equity-
ASMI reassesses whether or not it controls an investee if facts and circumstances indicate that there
accounted investees are eliminated against the investment to the extent of the company’s interest in
are changes to one or more of the three elements of control listed above.
the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the
As from the date these criteria are met, financial data of the relevant subsidiary are included in the
consolidation and deconsolidated from the date on which ASMI's control ceases.
Foreign currency translation
extent that there is no evidence of impairment.
Loss of control
The individual financial statements of each group entity are presented in their local functional
currency. For the purpose of the consolidated financial statements, the results and financial position
Upon loss of control, ASMI derecognizes the assets and liabilities of the subsidiary. Any surplus
of each entity is expressed in euros, which is ASMI's functional currency and the presentation
or deficit arising on the loss of control is recognized in profit or loss. If ASMI retains any interest
currency for the consolidated financial statements.
in this subsidiary, then such interest is measured at fair value at the date on which control is lost.
Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale
financial asset, depending on the level of influence retained.
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Foreign currency transactions
In the second half of 2021, the company removed the Back-end segment (ASMPT) as a separate
In preparing the financial statements of the individual entities, transactions in foreign currencies
operating segment. This reflects how the CODM reviews the individual operations for the purpose
are recorded at the exchange rates on the date of the transactions. At each balance sheet date,
of assessing performance and making resource-allocation decisions. The reflected change is
monetary items denominated in foreign currencies are translated at the rates prevailing on the
driven by the change in the CODM and his assessment of the company’s strategy. As a result of
balance sheet date. Non-monetary items carried at fair value that are denominated in foreign
this assessment, the Back-end segment is assessed by the CODM as a financial asset to maintain
currencies are translated at the rates prevailing on the date when the fair value was determined.
sufficient involvement to monitor and protect the asset given its significance, rather than active for
the purpose of resource allocation.
Exchange rate differences arising on the settlement of monetary items, and on the translation of
monetary items, are recognized in the consolidated statement of profit or loss in the period in which
The Front-end operation (ASMI) manufactures and sells equipment used in wafer processing,
they arise. Exchange rate differences arising on the translation of non-monetary items carried at
encompassing the fabrication steps in which silicon wafers are layered with semiconductor devices.
fair value are recognized in the consolidated statement of profit or loss for the period except for
The operation is a product-driven organizational unit comprised of manufacturing, service, and sales
differences arising on the translation of non-monetary items in respect of which gains and losses are
operations in Asia, Europe and the United States. The performance of the individual product lines
recognized directly in equity.
Foreign operations
is reviewed by the CODM based on its revenues, gross margin and EBIT. The company operates
under a uniform global operating strategy. The CODM alone makes operating decisions regarding
strategic investments and resource allocation based on aggregated information of the overall
For the purpose of presenting consolidated financial statements, assets and liabilities of foreign
company's operation. Therefore, the company's operation do not represent separate operating nor
operations are translated into euros at the exchange rates at the reporting date. The income and
reportable segments.
expenses of foreign operations are translated into euros at the exchange rates at the dates of the
transactions.
Property, plant and equipment
Items of property, plant and equipment are measured at cost, less accumulated depreciation and
Foreign currency differences are recognized in OCI and accumulated in the translation reserve,
any accumulated impairment losses.
except to the extent that the translation difference is allocated to non-controlling interest.
When a foreign operation is disposed of in its entirety or partially such that control or significant
are accounted for as separate items (major components) of property, plant and equipment.
influence is lost, the cumulative amount in the translation reserve related to that foreign operation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their
is reclassified to profit or loss as part of the gain or loss on disposal. If the company disposes of
estimated residual values using the straight-line method over their estimated useful lives, and is
part of its interest in a subsidiary but retains control, then the relevant proportion of the cumulative
generally recognized in profit or loss. The estimated useful lives, residual values and depreciation
amount is reattributed to non-controlling interest. When the company disposes of only part of an
method are reviewed at the end of each reporting period, with the effect of any changes in estimate
associate while retaining significant influence, the relevant proportion of the cumulative amount is
accounted for on a prospective basis.
If significant parts of an item of property, plant and equipment have different useful lives, then they
reclassified to profit or loss.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
Chief Executive Officer (CEO), who is the Chief Operating Decision Maker (CODM). Previously, the
company organized its activities in two operating segments, Front-end and Back-end.
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The estimated useful lives of property, plant and equipment for current and comparative periods are
Other intangible assets
as follows:
Land
Building and leasehold improvements
Machinery equipment
Furniture and fixtures and other equipment
Infinite
1-25 years
2-10 years
2-10 years
Other intangible assets include capitalized development expenses, software, purchased technology,
and remaining other intangible assets. Other intangible assets that are acquired by the company
with finite useful lives are measured at cost less accumulated amortization and any accumulated
impairment losses.
Expenditure on research activities is recognized in profit or loss as incurred.
An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain on disposal
In determining the capitalization of development expenses, the company makes estimates and
of an item of property, plant and equipment is recognized in profit or loss and included in 'other
assumptions based on expected future economic benefits generated by products that are the
income'. Any loss is recognized as part of impairment expenses.
result of these development expenses. Other important estimates and assumptions are the
Intangible assets
Goodwill
required internal rate of return, the distinction between research, development and high-volume
manufacturing, and the estimated useful life.
The company accounts for business combinations using the acquisition method when control is
Development expenses are capitalized when all of the following criteria are demonstrated:
transferred to the company. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for
impairment. Transaction costs are expensed as incurred.
Goodwill represents the excess of the costs of an acquisition over the fair value of the amounts
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
its intention to complete the intangible asset and use or sell it;
its ability to use or sell the intangible asset;
how the intangible asset will generate probable future economic benefits;
the availability of adequate technical, financial and other resources to complete the development
assigned to assets acquired and liabilities incurred or assumed of the acquired subsidiary at the
and to use or sell the intangible asset; and
date of acquisition. Goodwill on acquisition of subsidiaries is allocated to cash generating units
its ability to reliably measure the expenditure attributable to the intangible asset during its
(CGUs) for the purpose of impairment testing. The allocation is made to those CGUs that are
development.
expected to benefit from the business combination in which the goodwill arose. Goodwill is tested
for impairment annually and whenever events or changes in circumstances indicate that the carrying
The company capitalizes development expenses that meet the above-mentioned criteria in its
amount of the goodwill may not be recoverable. If the recoverable amount of the CGU is less than
consolidated financial statements. Subsequent to initial recognition, internally-generated intangible
the carrying amount of the unit, the impairment loss is recognized. An impairment loss recognized
assets are reported at cost less accumulated amortization and accumulated impairment losses, on
for goodwill is not reversed in a subsequent period. Goodwill is stated at cost less accumulated
the same basis as intangible assets that are acquired separately.
impairment losses.
The company’s goodwill arising on the acquisition of an associate is described in Note 6
over the estimated useful lives of the developed product. Amortization starts when the developed
Amortization of capitalized development expenses is calculated using the straight-line method
'Investments in Associates'.
product is ready for its intended use. In the development cycle, this is when the product is
transferred from the validation (beta) phase to high-volume manufacturing.
Amortization method, useful life, and residual value are reviewed at each reporting date and
adjusted if appropriate.
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The estimated useful lives of other intangible assets for current and comparative periods are
reversed. The determination of whether an investment is impaired is made at the individual security
as follows:
Development cost
Software
Purchased technology and other intangible assets
5 years
3 years
5-7 years
Investments in associates
Investments in associates are investments in entities in which ASMI can exert significant influence
level in each reporting period.
Evaluation tools at customers
Evaluation tools at customers are systems generally delivered to customers under evaluation and
include substantial customization by our engineers and R&D staff in the field. Evaluation tools are
recorded at cost and depreciated using the straight-line method over their estimated useful life of
five years, or their shorter economic life. The depreciation expenses are reported as cost of sales.
but which ASMI does not control, generally having between 20% and 50% of the voting rights.
On final written technical acceptance and purchase order from the customer, the purchase
These entities are accounted for using the equity method and are initially recognized at cost.
consideration is recognized as revenue at a point in time and the carrying value of the evaluation
Dividend income from the company’s associated companies is recognized when the right to receive
system is recognized as cost of sales. In the circumstance that the system is returned, at the end
payment is established. Their carrying value includes goodwill identified upon acquisition, net of any
of the evaluation period, a detailed impairment review takes place, and future sales opportunities
accumulated impairment.
and additional costs are identified. It is only when the fair value is below the carrying value of
the evaluation tool that an additional depreciation is recognized. The remaining carrying value is
When ASMI’s share of losses in an associate equals or exceeds its interest in the associate,
recognized as finished goods in inventories.
including any other receivables for which settlement is neither planned nor likely to occur in the
foreseeable future, ASMI does not recognize further losses, unless ASMI has obligations to or made
Inventories
payments on behalf of the associate.
Inventories are stated at the lower of cost or net realizable value. The cost of inventories is based
on the first-in, first-out principle. Costs include net prices paid for materials purchased, charges for
At each reporting date, the company determines if there is any objective evidence that the associate
freight and custom duties, production labor costs and factory overhead. Allowances are made for
is impaired. An impairment, being the difference between the recoverable amount of the associate
slow-moving, obsolete or unsellable inventory.
and its carrying value, is recognized in the consolidated statement of profit or loss.
ASMI does not separately test associates' underlying assets for impairment. However, ASMI
as the expected market value of the inventory. We regularly evaluate the value of our inventory of
recognizes its share of any impairment charge recorded by an investee and considers the effect, if
components and raw materials, work in progress, and finished goods, based on a combination of
any, of the impairment on the basis difference in the assets giving rise to the investee’s impairment
factors including the following: forecasted sales, historical usage, product end of lifecycle, estimated
charge. A loss in value of an investment which is significant or prolonged will be recognized.
current and future market values, service inventory requirements, and new product introductions, as
Significant is defined as at least 20% over an uninterrupted period of nine months, or more than
well as other factors. Purchasing requirements and alternative uses for the inventory are explored
40% on the reporting date. Prolonged is defined as measured below cost for more than a year.
within these processes to mitigate inventory exposure. We record write-downs for inventory based
on the above factors and take into account worldwide quantities and demand into our analysis.
Allowances for obsolescence of inventory are determined based on the expected demand as well
Equity method investments are tested for prolonged decline in value. If the fair value of an
investment is less than its carrying value, the company determines whether the decline in value is
Financial instruments
temporary or prolonged. A prolonged decline in value is measured as of a balance sheet date. If
The company classifies non-derivative financial assets into loans and receivables. The company
after a prior recognized impairment the fair value is more than its carrying value, this impairment is
classifies non-derivative financial liabilities into other financial liabilities.
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Non-derivative financial assets and financial liabilities – Recognition and
derecognition
regarding a customer's inability to meet its financial obligations; and our judgments as to potential
prevailing economic conditions in the industry and their potential impact on the company's
The company initially recognizes receivables on the date when they are originated. Receivables
customers.
comprise account (trade) and other receivables and cash and cash equivalents. Receivables are
measured at amortized cost using the effective interest method, less any impairment. Financial
The allowance is based on historical experience, credit evaluations, specific customer-collection
assets and financial liabilities are initially recognized on the trade date when the entity becomes a
history, and any customer-specific issues ASMI has identified. Changes in circumstances, such as
party to the contractual provisions of the instrument.
an unexpected adverse material change in a major customer’s ability to meet its financial obligation
The company derecognizes a financial asset when the contractual rights to the cash flows from
amounts due to ASMI. This could have an adverse material effect on ASMI’s financial condition and
to ASMI or its payment trends, may require us to further adjust our estimates of the recoverability of
the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in
results of operations.
which substantially all of the risks and rewards of ownership of the financial asset are transferred, or
it neither transfers nor retains substantially all of the risks and rewards of ownership and does not
Cash and cash equivalents
retain control over the transferred asset. Any interest in such derecognized financial asset that is
Cash and cash equivalents consist of bank deposits and investment in money market funds that
created or retained by the company is recognized as a separate asset or liability.
invest in marketable debt obligations and securities of governments, corporates and financial
institutions and other short-term highly liquid investments with original maturity of three months or
The company derecognizes a financial liability when its contractual obligations are discharged or
less. Bank overdrafts are included in notes payable to banks in current liabilities.
cancelled, or expired.
Financial assets and financial liabilities are offset and the net amount presented in the statement
Other non-derivative financial liabilities are initially measured at fair value less any directly attributable
of financial position when, and only when, the company currently has a legally enforceable right to
transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized cost
offset the amounts and intends either to settle them on a net basis or to realize the asset and settle
using the effective interest method.
Non-derivative financial liabilities – Measurement
the liability simultaneously.
Non-derivative financial assets – Measurement
Share capital
Ordinary shares
Loans and receivables are initially measured at fair value plus any directly attributable transaction
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
costs. Subsequent to initial recognition, they are measured at amortized cost using the effective
ordinary shares are recognized as a deduction from equity, net of any tax effects.
interest method.
Accounts receivable
Preference share capital
Preference share capital is classified as equity if it is non-redeemable, or redeemable only at
A significant percentage of our accounts receivable is derived from revenue to a limited number of
the company’s option, and any dividends are discretionary. Discretionary dividends thereon are
large multinational semiconductor device manufacturers located throughout the world. In order to
recognized as distributions within equity upon approval by the company’s shareholders.
monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial
condition. An allowance for doubtful accounts is maintained for potential credit losses based upon
Preference share capital is classified as a financial liability if it is redeemable on a specific date or
management's assessment of the expected collectability of all accounts receivable. The allowance
at the option of the shareholders, or if dividend payments are not discretionary. Non-discretionary
for doubtful accounts is reviewed periodically to assess the adequacy of the allowance. In making
dividends thereon are recognized as interest expense in profit or loss as accrued.
this assessment, management takes into consideration any circumstances of which we are aware
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Repurchase and reissue of ordinary shares (treasury shares)
status of borrowers or issuers, the disappearance of an active market for a security because
When shares recognized as equity are repurchased, the amount of the consideration paid, which
of financial difficulties, or observable data indicating that there is a measurable decrease in the
includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares
expected cash flows from a group of financial assets.
are classified as treasury shares and are presented in the treasury share reserve. When treasury
shares are sold or reissued subsequently, the amount received is recognized as an increase in
Loans and receivables
equity and the resulting surplus or deficit on the transaction is presented in a non-distributable
The company considers evidence of impairment for these assets at both an individual asset and
capital reserve.
a collective level. All individually significant assets are individually assessed for impairment. Those
found not to be impaired are then collectively assessed for any impairment that has been incurred
Issuance of shares by an equity-accounted investee
but not yet individually identified.
The associate ASMPT yearly issues common shares pursuant to their employee share incentive
scheme. The effect of these issuances is a dilution of the company's ownership in ASMPT.
The impairment method for account receivables is described at Note 9 Accounts Receivable.
The company recognizes the impact of these issuances directly into equity.
Comprehensive income
An impairment loss in respect of an equity-accounted investee is measured by comparing the
Comprehensive income consists of net earnings (loss) and other comprehensive income. Other
recoverable amount of the investment with its carrying amount. An impairment loss is recognized
comprehensive income includes gains and losses that are not included in net earnings, but are
in profit or loss, and is reversed if there has been a favorable change in the estimates used to
Equity-accounted investees
recorded directly in equity.
Provisions
determine the recoverable amount.
Non-financial assets
Provisions are recognized when the company has a present obligation (legal or constructive) as a
At each reporting date, the company reviews the carrying amounts of its non-financial assets (other
result of a past event, it is probable that the company will be required to settle the obligation, and a
than inventories and deferred tax assets) to determine whether there is any indication of impairment.
reliable estimate can be made of the amount of the obligation.
If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
annually for impairment.
reflects current market assessments of the time value of money and the risks specific to the liability.
For impairment testing, assets are grouped together into the smallest group of assets that generates
The unwinding of the discount is recognized as finance cost.
cash inflows from continuing use that are largely independent of the cash inflows of other assets or
Impairment
Non-derivative financial assets
CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that
are expected to benefit from the synergies of the combination.
Financial assets not classified as at fair value through profit or loss, including an interest in an equity-
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less
accounted investee, are assessed at each reporting date to determine whether there is objective
costs to sell. Value in use is based on the estimated future cash flows, discounted to their present
evidence of impairment.
value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset or CGU.
Objective evidence that financial assets are impaired includes default or delinquency by a debtor,
restructuring of an amount due to the company on terms that the company would not consider
otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment
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An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable
Revenue streams
amount.
The company generates revenue primarily from the sales of equipment and sales of spares &
services. The products & services described below by nature, can be part of both revenue streams.
Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying
The revenue streams are disclosed in Note 21 Revenue.
amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other
assets in the CGU on a pro rata basis.
Nature of goods and services
The following is a description of principal activities from which the group generates its revenue.
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is
reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortization, if no impairment loss had
been recognized.
Commitments and contingencies
The company has various contractual obligations such as purchase commitments and
commitments for capital expenditure. These obligations are generally not recognized as liabilities
on the company's statement of financial position but are disclosed in the notes to the consolidated
financial statements.
Cash flow statement
The cash flow statement has been prepared using the indirect method. The company has made
several changes within the presentation of cash flows from operating activities to align with internal
management information. These changes concern updated account names, grouping of operational
Products and
services
Equipment
Installation
cash flow items and adding subtotals as the company believes that these subtotals are relevant
to the understanding of the Group’s financial performance. These changes are reflected in the
Spares
comparative figures to improve comparability.
Revenue recognition
Revenue is measured based on the consideration specified in a contract with a customer and
excludes amounts collected on behalf of third parties. The company recognizes revenue when it
transfers control over a product or service to a customer. Depending on the contract, we obtain
normally a right to payment for our equipment upon shipment and on completion of installation.
Right to payment for our spares and services occurs upon shipment or completion of the service
unless described otherwise.
Nature, timing of satisfaction of performance obligation and significant
payment terms
Revenue from equipment is recognized at a point in time when the performance
obligation is satisfied, when control transfers. This is usually upon shipment
depending on incoterms. The amount of revenue recognized is based on the
amount of the transaction price that is allocated to the performance obligation.
The total consideration of the contract is allocated between all distinct
performance obligations in the contract based on their stand-alone selling
prices. The stand-alone selling prices are mostly determined based on other
stand-alone sales that are directly observable or based on the expected cost
plus a margin approach. Any customer discounts and credits, within volume
purchase agreements or bundled agreements, are considered as a reduction of
the transaction price.
The customer simultaneously consumes and receives the benefits provided by
the performance of the installation. As such, transfer of control takes place over
the period of installation from delivery through customer acceptance, measured
on a straight-line basis, as our performance is satisfied evenly over this period
of time.
Revenue from spares is recognized at a point in time when the performance
obligation is satisfied, when the control transfers. This is usually upon shipment
depending on incoterms. The amount of revenue recognized is based on the
amount of the transaction price that is allocated to the performance obligation.
Any customer discounts and credits, within a volume purchase agreements, are
considered as a reduction of the transaction price.
Revenue on royalties
and licenses for
technology included
in equipment and/or
spares
The fixed price royalty is a right to use the licenses and revenue is recognized at
a point in time that the license is transferred to the customer. For the sales-based
royalty, the performance obligation is satisfied when the license is transferred to
the customer. Given this is earlier than when the sales occur, revenue should be
recognized when the sales occur.
Support services
The customer simultaneously consumes and receives the benefits provided by
the performance of the support. For the majority of support services transfer of
control takes place over the period of support.
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We applied the practical expedient of IFRS 15.121 and therefore have not disclosed information on
The company has applied judgment to determine the lease term for some of the lease contracts
the remaining performance obligations of a contract (in aggregate) as the performance obligation is
in which it is a lessee that includes renewal options. The assessment of whether the company is
part of a contract that has an original expected duration of one year or less. Generally, the remaining
reasonably certain to exercise such options impacts the lease term, which significantly affects the
performance obligations of a contract concern the installation which is recognized over time.
amount of lease liabilities and right-of-use assets recognized.
Cost of sales
The company has applied the exception not to recognize right-of-use assets and lease liabilities
Cost of sales comprises direct costs such as labor, materials, cost of warranty, depreciation,
for short-term leases (lease term of 12 months or less) and leases of low-value assets (up to
shipping and handling costs, and related overhead costs. Cost of sales also includes depreciation
the amount of €5 thousand asset value, such as water purifiers and air cleaners). The company
expenses of evaluation tools at customers, royalty payments, and costs relating to prototype and
recognizes the lease payments associated with these leases as an expense on a straight-line basis
experimental products, which the company may subsequently sell to customers.
over the lease term.
Warranty
Income tax
We provide maintenance on our systems during the warranty period, on average one year. Costs
Income tax expense comprises current and deferred tax. It is recognized in the statement of profit
of warranty include the cost of labor and material necessary to repair a product during the warranty
or loss except to the extent that it relates to a business combination, or items recognized directly in
period. We accrue for the estimated cost of the warranty on products shipped in a provision for
equity or in other comprehensive income.
warranty, upon recognition of the sale of the product. The costs are estimated based on historical
expenses incurred and on estimated future expenses related to current revenue, and are updated
Current tax
periodically. Actual warranty costs are charged against the provision for warranty. The actual
The current corporate income tax charge recognized in the consolidated statement of profit or
warranty costs may differ from estimated warranty costs, and we adjust our provision for warranty
loss is calculated in accordance with the prevailing tax regulations and rates, taking into account
accordingly. Future warranty costs may exceed our estimates, which could result in an increase of
non-taxable income and non-deductible expenses. The current income tax expense reflects the
our cost of sales.
Leases
amount for the current reporting period that the company expects to recover from or pay to the tax
authorities. Current income tax related to items recognized directly in equity is recorded in equity
and not in the consolidated statement of profit or loss. ASMI’s management periodically evaluates
The company leases many assets, including land, buildings, houses, motor vehicles, machinery and
positions taken in the tax returns regarding situations in which applicable tax regulations are subject
furniture.
to interpretation, and establishes provisions when deemed appropriate. The amount of current tax
payable or receivable is the best estimate of the tax amount expected to be paid or received that
The company recognizes a right-of-use asset and a lease liability at the lease commencement date.
reflects uncertainty related to income tax, if any. Measurement of the tax payable or receivable for
The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated
uncertain tax positions is based on management’s best estimate of the amount of tax benefit that
depreciation and impairment losses, and adjusted for certain remeasurement of the lease liability.
will be lost. Current tax also includes any tax arising from dividends and royalties. Current tax assets
and liabilities are offset only if certain criteria are met (IAS 12).
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted using the company’s incremental borrowing rate. The lease
Deferred tax
liability is subsequently increased by the interest cost on the lease liability and decreased by the
Deferred income tax positions are recognized for temporary differences between the tax basis of
lease payment made. It is remeasured when there is a change in future lease payments arising
assets and liabilities and their carrying values in ASMI’s consolidated statement of financial position.
from a change in a rate or changes in the assessment of whether a purchase or extension option is
reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
135
Deferred tax assets are recognized for deductible temporary differences, the carry forward of
primarily represent the increase in the actuarial present value of the obligation for pension benefits
unused tax credits, and any unused tax losses. Deferred tax assets are recognized only to the
based on employee service during the year and the interest on this obligation in respect to employee
extent that it is probable that future taxable profits will be available against which the temporary
service in previous years, net of the expected return on plan assets.
differences can be utilized. Both the recognized and unrecognized deferred tax assets are
reassessed at each reporting date. Deferred tax assets are recorded for deductible temporary
For the defined benefit plan, the company recognizes in its consolidated statement of financial
differences associated with investments in subsidiaries and are recorded only to the extent that it is
position an asset or a liability for the plan's over funded status or underfunded status respectively.
probable that the temporary differences will reverse in the foreseeable future, and taxable profit will
Actuarial gains and losses are recognized when incurred.
be available against which the temporary differences can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences except when they affect
provided. Prepaid contributions are recognized as an asset to the extent that a cash refund or a
Obligations for contributions to defined contribution plans are expensed as the related service is
neither the profit or loss reported in the consolidated statement of profit or loss nor the taxable profit
reduction in future payments is available.
or loss. Also, no deferred tax liabilities are recorded for taxable temporary differences associated
with investments in subsidiaries when the timing of the reversal of the temporary differences can be
Share-based payments
controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
The costs relating to employee stock options and shares (compensation expense) are recognized
Deferred tax positions are stated at nominal value and are measured at the corporate income
based upon the grant date fair value of the stock options or the shares. The fair value at grant
tax rates the company expects to be applicable in the year when the asset is realized or liability
date of employee stock options is estimated using a Black-Scholes option valuation model. This
is settled based on enacted or substantially enacted tax laws and reflects uncertainty related to
model requires the use of assumptions including expected stock-price volatility, the estimated life
income tax, if any.
of each award, and the estimated dividend yield. The risk-free interest rate used in the model is
determined, based on a euro government bond with a life equal to the expected life of the options.
Deferred income tax assets and liabilities are netted if there is a legally enforceable right to set off
The estimated fair value at grant date of shares is based on the share price of the ASMI share at
current tax assets against current tax liabilities, deferred income tax assets and deferred income tax
grant date minus the discounted value of expected dividends during the vesting period.
liabilities related to income taxes levied by the same taxation authority on the same taxable entity,
and there is an intention to settle on a net basis.
The grant date fair value of the stock options and shares is expensed on a straight-line basis over
Retirement benefit costs
the vesting period, based on the company’s estimate of stock options and shares that will eventually
vest. The impact of the true-up of the estimates is recognized in the consolidated statement of
The company has retirement plans covering substantially all employees. The principal plans are
profit or loss in the period in which the revision is determined. The total estimated share-based
defined contribution plans, except for the plans of the company's operations in the Netherlands and
compensation expense, determined under the fair value-based method is amortized proportionally
Japan. The company's employees in the Netherlands participate in a multi-employer defined benefit
over the option vesting periods.
plan. Payments to defined contribution plans and the multi-employer plan are recognized as an
expense in the consolidated statement of profit or loss as they fall due. The company accounts for
the multi-employer plan as if it were a defined contribution plan, since the manager of the plan is not
able to provide the company with the required company-specific information to enable the company
to account for the plan as a defined benefit plan.
The company's employees in Japan participate in defined benefit plans. Pension costs in respect
to this defined benefit plan are determined using the projected unit credit method. These costs
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
136
Amounts recognized in statement of cash flows
(EUR thousand)
Total cash outflow for leases
Extension options
2020
7,819
2021
7,854
The extension options held are exercisable only by the company and not by the lessors.
The company assesses at lease commencement date whether it is reasonably certain to exercise
the extension options. The company reassesses whether it is reasonably certain to exercise the
options at year-end for material lease components, if there is a significant event or significant
changes in circumstances within its control.
NOTE 2. RIGHT-OF-USE ASSETS
The company leases many assets, including land, buildings, houses, motor vehicles, machinery and
equipment. Leases typically run up to a period of five years, some with an option to renew the lease
after the end of the non-cancelable period. Lease payments are renegotiated on a periodic basis;
timing is dependent on the region and type of lease. The company has not entered into any sub-
lease arrangements.
Right-of-use assets
(EUR thousand)
Balance January 1, 2020
Additions
Modifications and reassessments
Depreciation for the year
Foreign currency translation effect
Balance December 31, 2020
Additions
Modifications and reassessments
Depreciation for the year
Foreign currency translation effect
Balance December 31, 2021
Land and
buildings
25,049
3,100
551
(6,285)
(1,337)
21,078
2,060
6,812
(6,563)
1,065
24,452
Motor
vehicles
Other
machinery and
equipment
Total
2,142
1,359
(158)
(1,159)
(36)
2,148
879
(101)
(1,210)
53
1,769
356
27,547
–
(15)
4,459
378
(167)
(7,611)
(13)
(1,386)
161
23,387
323
619
3,262
7,330
(416)
(8,189)
30
717
1,148
26,938
Amounts recognized in profit or loss
(EUR thousand)
Leases under IFRS 16
Interest on lease liabilities
Depreciation expenses
Expenses relating to short-term leases
Expenses relating to low-value leases
Total
2020
2021
561
7,611
254
16
8,442
523
8,189
48
16
8,776
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
137
The company divested its property in
Nagaoka, Japan in February 2021, and
another property in Singapore in November
2021. The assets at costs (€9.1 million) and
accumulated depreciation (€7.9 million) are
disposed. Net income on disposal of these
assets of €4.1 million is recognized as ‘other
income’ in the consolidated statement of
profit or loss.
NOTE 3. PROPERTY, PLANT AND EQUIPMENT
The changes in the amount of property, plant and equipment are as follows:
Land, buildings and
leasehold improvements
Machinery and
equipment
Furniture and fixtures
and other equipment
Assets under
construction
Total
At cost
Balance January 1, 2020
Additions
Disposals
Transfer from assets under construction
Transfer to intangible assets
Foreign currency translation effect
Balance December 31, 2020
Additions 1)
Disposals
Transfer from assets under construction
Foreign currency translation effect
Balance December 31, 2021
Accumulated depreciation and impairment
Balance January 1, 2020
Depreciation for the year
Impairment charges
Disposals
Foreign currency translation effect
Balance December 31, 2020
Depreciation for the year
Impairment charges
Disposals
Foreign currency translation effect
Balance December 31, 2021
Carrying amounts
December 31, 2020
December 31, 2021
Useful lives in years
87,349
411
(196)
51,287
–
(4,173)
134,678
7,129
(9,230)
669
3,587
235,020
3,528
(23,378)
34,317
–
(14,352)
235,135
13,381
(6,598)
40,444
10,948
136,833
293,310
33,859
4,406
–
(193)
(1,974)
36,098
6,559
–
(7,989)
1,167
35,835
163,780
25,647
–
(21,122)
(10,056)
158,249
31,530
–
(6,070)
7,339
191,048
98,580
76,886
100,998
102,262
1-25
2-10
30,781
1,752
(3,196)
5,705
(92)
(1,359)
33,591
1,287
(3,612)
3,994
677
35,937
22,022
2,974
–
(3,107)
(927)
20,962
3,849
–
(3,312)
251
21,750
12,629
14,187
2-10
31,374
384,524
89,750
95,441
–
(26,770)
(91,309)
–
–
(92)
(3,943)
(23,827)
25,872
429,276
57,525
79,322
–
(19,440)
(45,107)
–
1,280
16,492
39,570
505,650
–
–
–
–
–
–
–
–
–
–
–
219,661
33,027
–
(24,422)
(12,957)
215,309
41,938
–
(17,371)
8,757
248,633
25,872
213,967
39,570
257,017
1 The €79 million additions in FY 2021 includes €7 million of prepaid capex with no cash flow impact during the year.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
138
NOTE 4. GOODWILL
The carrying amount of the goodwill is related to acquisitions in the following cash-generating units:
These estimates are consistent with the plans and estimated costs we use to manage the
underlying business. We expect the demand for these technologies to continue beyond a period of
five years and therefore we have included perpetuity growth rates in our assumptions. Based on this
ALD
PEALD
Total
December 31,
analysis, management concluded that as per December 31, 2021 the recoverable amount of the
2020
2,611
8,659
11,270
2021
2,611
8,659
11,270
CGUs exceeded the carrying value. The excess was over 100% for each of the CGUs. Sensitivity
analysis demonstrated that no reasonable possible change in estimated cash flows or the discount
rate used in calculating the fair value would cause the carrying value of goodwill to exceed the
fair value.
We perform an annual impairment test in the fourth quarter of each year or if events or changes in
circumstances indicate that the carrying amount of the assets at risk (goodwill, other non-current
assets and liabilities, capitalized development, working capital) exceeds its recoverable amount.
For our impairment test and the determination of the recoverable amount, a discounted future cash
flow approach is used which makes use of our estimates of future revenues, driven by assumed
market growth and estimated costs as well as appropriate discount rates.
The material assumptions used for the discounted future cash flows of the cash-generating units
(CGUs) are:
an average discount rate of 7.6% (2020: 9.5%) representing the pre-tax weighted average cost
of capital;
external market segment data, historical data and strategic plans to estimate cash flow growth
per product line; and
cash flow calculations are limited to four years of cash flow; after these four years, perpetuity
growth rates are set based on the market maturity of the products. For a maturing product, the
perpetuity growth rates used are 1% or less, and for enabling technology products the rate used
is 3% or less.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
139
NOTE 5. OTHER INTANGIBLE ASSETS
Other intangible assets include capitalized development expenditure, software developed or
purchased (including licenses) for internal use, and purchased technology from third parties.
The changes in the amount of other intangible assets are as follows:
Development costs
Software
Purchased technology
and other intangible assets
Total
At cost
Balance January 1, 2020
Additions
Transfer from property, plant and equipment
Disposals
Foreign currency translation effect
Balance December 31, 2020
Additions
Disposals
Foreign currency translation effect
Balance December 31, 2021
Accumulated amortization and impairment losses
Balance January 1, 2020
Amortization for the year
Impairments
Disposals
Foreign currency translation effect
Balance December 31, 2020
Amortization for the year
Impairments
Disposals
Foreign currency translation effect
Balance December 31, 2021
Carrying amounts
December 31, 2020
December 31, 2021
295,868
64,126
–
–
(18,309)
341,685
81,973
–
12,867
436,525
113,372
21,187
10,126
–
(7,319)
137,366
25,184
1,967
–
4,332
168,849
204,319
267,676
33,651
3,230
92
(3,459)
(650)
32,864
2,680
(22)
458
35,980
27,228
3,863
–
(3,459)
(353)
27,279
1,424
–
(22)
152
28,833
5,585
7,147
8,884
338,403
–
–
–
67,356
92
(3,459)
(63)
(19,022)
8,821
383,370
–
–
84,653
(22)
(32)
13,293
8,789
481,294
8,579
285
–
–
(63)
149,179
25,335
10,126
(3,459)
(7,735)
8,801
173,446
10
–
–
(32)
26,618
1,967
(22)
4,452
8,779
206,461
20
10
209,924
274,833
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
140
We perform an annual impairment test in the fourth quarter of each year or if events or changes
in circumstances indicate that the carrying amount of development costs exceeds its recoverable
NOTE 6. INVESTMENTS IN ASSOCIATES
The location included below is the principal place of business of the specified associates.
amount. A discounted future cash flow approach is used which makes use of our estimates of future
There is no difference between the principal place of business and country of incorporation.
Name
Associates
Levitech BV
ASM Pacific Technology Ltd
Location
% ownership December 31,
2020
2021
Almere, the Netherlands
Kwai Chung, Hong Kong,
People’s Republic of China
26.64%
26.64%
25.07%
24.96%
Levitech BV is valued at nil (2020: nil).
revenues, driven by assumed market growth and estimated costs as well as appropriate discount
rates. For the impairment test, reference is made to Note 4.
Impairment charges on capitalized development costs are included in operating expenses under
research and development. Impairment of capitalized development expenses primarily related to
development of new hardware for which customer demand has shifted out in time, new process
technologies that were not successful, and purchased technology which became obsolete.
The impairment charges for 2020 and 2021 related to customer-specific projects.
Capitalized development costs are amortized over their estimated useful lives of five years.
Amortization starts when the developed asset is ready for its intended use. For the company, this
occurs when the application is transferred to high-volume manufacturing. Other intangible assets
are amortized over their estimated useful lives of three to seven years.
Estimated amortization expenses relating to other intangible assets are as follows:
Development
costs
Software
Purchased technology
and other intangible assets
2022
2023
2024
2025
2026
Years thereafter
Amortization
estimated
Amortization not yet
started
Total carrying
amounts
26,823
24,517
19,341
11,082
1,981
–
83,744
183,932
2,947
2,426
1,772
2
–
–
7,147
–
267,676
7,147
10
–
–
–
–
–
10
–
10
Total
29,780
26,943
21,113
11,084
1,981
–
90,901
183,932
274,833
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
141
The changes in the investment in associates are as follows:
Balance January 1, 2020
Share in net earnings of investments in associates
Other comprehensive income of investments in associates
Amortization recognized (in)tangible assets
Dividends
Dilution ASMPT share to 25.07%
Foreign currency translation effect
Balance December 31, 2020
Share in net earnings of investments in associates
Other comprehensive income of investments in associates
Amortization recognized intangible assets
Dividends
Dilution ASMPT share to 24.96%
Foreign currency translation effect
Balance December 31, 2021
Net equity share
Other (in)tangible assets
ASMPT
334,870
44,813
(2,296)
–
(16,142)
2,059
(16,216)
347,088
86,595
11,833
–
(36,297)
3,205
23,034
435,458
45,752
–
–
(12,863)
–
–
(2,873)
30,016
–
–
(12,213)
–
–
1,766
19,569
Goodwill
397,646
–
–
–
–
–
(32,036)
365,610
–
–
–
–
–
28,175
393,785
Total ASMPT
778,268
44,813
(2,296)
(12,863)
(16,142)
2,059
(51,125)
742,714
86,595
11,833
(12,213)
(36,297)
3,205
52,975
848,812
On March 15, 2013, the company divested a controlling stake in its subsidiary ASM Pacific
If the fair value of an investment is less than its carrying value at the balance sheet date, the
Technology Ltd (ASMPT). After the initial accounting of the sale transaction and related gains, future
company determines whether the impairment is temporary or prolonged. The amount per share
income from ASMPT was adjusted for the fair value adjustments arising from the basis differences
recognized as per December 31, 2021, under equity accounting amounts to HK$72.79, whereas
as if a business combination had occurred under IFRS 3R, Business Combinations, i.e. a purchase
the level 1 fair value per share (being the market price of a share on the Hong Kong Stock
price allocation (PPA).
Exchange) was HK$84.25 as per December 31, 2021. Management concluded that based on
quantitative analysis no impairment of its share in ASMPT existed as per December 31, 2021.
The purchase of the associate has been recognized at fair value, being the value of the ASMPT
shares on the day of closing of the purchase transaction. The composition of this fair value was
In December 2021, 1,907,900 common shares of ASMPT were issued, for cash at par value of
determined through a PPA. The PPA resulted in the recognition of intangible assets for customer
HK$0.10 per share, pursuant to the Employee Share Incentive Scheme of ASMPT. The shares
relationship, technology, trade name, product names, and goodwill. For inventories and property,
issued under the plan in 2021 have diluted ASMI’s ownership in ASMPT to 24.96% as of
plant & equipment, a fair value adjustment was recognized.
December 31, 2021.
The ASMPT investment is accounted for under the equity method on a go-forward basis. Equity
Per December 31, 2021, the book value of our equity method investment in ASMPT was
method investments are tested for prolonged impairment. An investment is considered impaired
€848.8 million. The historical cost basis of our 24.96% share of net assets on the books of
if the fair value of the investment is less than its carrying value.
ASMPT under IFRS was €435.5 million as of December 31, 2021, resulting in a basis difference
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
142
of €413.4 million. €19.6 million of this basis difference has been allocated to intangible assets.
Shareholder’s equity of ASMPT per December 31, 2021, translated into euros at a rate of 0.11321
The remaining amount was allocated to equity method goodwill. Each individual, identifiable asset
was €1,745 million (our 24.96% share: €435 million).
will periodically be reviewed for any indicators of potential impairment. We amortize the basis
differences allocated to the assets on a straight-line basis, and include the impact within the results
The ASMPT Board is responsible for ongoing monitoring of the performance of ASMPT.
of our equity method investments. Amortization and depreciation are adjusted for related deferred
The actual results of ASMPT are discussed with the ASMPT Audit Committee, which includes
tax impacts. Included in net income attributable to ASMI for 2021 was an after-tax expense of
the representative of ASMI. The ASMI representative reports to the ASMI Management Board
€12.2 million, representing the depreciation and amortization of the basis differences.
and the Audit Committee of ASMI on a quarterly basis.
The market value of our 24.96% investment in ASMPT on December 31, 2021, approximates
Our share of income taxes incurred directly by the associates is reported in income of investments in
€982 million.
associates and as such is not included in income taxes in our consolidated financial statements.
Summarized 100% earnings information for ASMPT equity method investment excluding
basis adjustments (foreign currency exchange rate average 2021: 1 HK$: €0.10863, for
NOTE 7. EVALUATION TOOLS AT CUSTOMERS
The changes in the amount of evaluation tools are as follows:
December 31, 2020: 1 HK$: €0.11272).
(HK$ million)
Revenues
Income before income tax
Net earnings from continuing operations
Other comprehensive income
Total comprehensive income
2020
16,887
1,857
1,631
370
2,001
2021
21,948
4,092
3,175
(171)
3,004
Summarized 100% statement of financial position information for ASMPT equity method investment
excluding basis adjustments (foreign currency exchange rate per December 31, 2021, was 1
HK$: €0.11321 for December 31, 2020: 1 HK$: €0.10511).
At cost
Balance at beginning of year
Evaluation tools shipped
Evaluation tools sold and returns
Foreign currency translation effect
Balance at end of year
Accumulated depreciation
Balance at beginning of year
Depreciation for the year
Evaluation tools sold and returns
(HK$ million)
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Total equity
December 31,
Foreign currency translation effect
2020
14,799
8,365
5,336
4,634
13,194
2021
18,251
8,250
6,889
4,200
15,412
Balance at end of year
Carrying amount at beginning of year
Carrying amount at end of year
Useful lives in years:
December 31,
2020
2021
73,637
59,729
(26,420)
(6,172)
100,774
26,390
12,930
(6,401)
(1,619)
31,300
47,247
69,474
100,774
35,409
(41,708)
3,877
98,352
31,300
16,868
(14,279)
746
34,635
69,474
63,717
5
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
143
Evaluation tools enable ASMI to win new business and expand ASMI’s technological footprint by
The additions for 2020 and 2021 mainly relate to inventory items which ceased to be used due to
penetration at new customers and with new applications. The year-on-year decrease in evaluation
technological developments and design changes resulting in obsolescence of certain parts.
tools shipped to customer sites is indicative of ASMI’s evaluation success due to won business
from 2020 evaluation tools shipped, minimizing the need for incremental evaluation shipments in
The cost of inventories recognized as costs and included in cost of sales amounted to
2021. The shipments of evaluation tools continue to highlight ASMI’s market growth ambitions and
€727.9 million (2020: €554.8 million).
remains a key component in ASMI’s growth strategy. The majority of evaluation tools shipped to
customers result in the sale of the tool.
NOTE 8. INVENTORIES
Inventories consist of the following:
Components and raw materials
Work in progress
Finished goods
Total inventories, gross
Allowance for obsolescence
Total inventories, net
The changes in the allowance for obsolescence are as follows:
Balance at beginning of year
Charged to cost of sales
Reversals
Utilization of the provision
Foreign currency translation effect
Balance at end of year
2020
118,849
39,925
17,902
176,676
(14,477)
162,199
December 31,
2020
(12,527)
(9,775)
830
6,200
795
(13,604)
211,841
2021
(14,477)
(5,728)
2,013
5,383
(795)
(14,477)
(13,604)
On December 31, 2021, our allowance for inventory obsolescence amounted to €13,604, which is
6.0% of total inventory. The major part of the allowance is related to components and raw materials.
NOTE 9. ACCOUNTS RECEIVABLE
A significant percentage of our accounts receivable is derived from sales to a limited number of large
multinational semiconductor device manufacturers located throughout the world. In order to monitor
potential expected credit losses, we perform ongoing credit evaluations of our customers’ financial
December 31,
condition.
The carrying amount of accounts receivable is as follows:
2021
175,317
31,631
18,497
225,445
Current
Overdue <30 days
Overdue 31-60 days
Overdue 61-120 days
Overdue >120 days
Total
December 31,
2020
249,032
23,063
4,283
1,727
1,956
2021
418,195
18,089
2,166
7,244
1,030
280,061
446,724
An allowance for doubtful accounts receivable is maintained for potential expected credit losses
based upon management’s assessment of the expected collectability of all accounts receivable.
The allowance for doubtful accounts is reviewed periodically to assess the adequacy of the
allowance. In making this assessment, management takes into consideration any circumstances
of which we are aware regarding a customer’s inability to meet its financial obligations, and our
judgments as to potential prevailing economic conditions in the industry and their potential impact
on the company’s customers. COVID-19 did not have, and is not expected to have a significant
impact on the customers in the industry (see also Note 1 COVID-19 paragraph), and hence on the
allowance for doubtful accounts.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
144
The changes in the allowance for doubtful accounts receivable are as follows:
Bank guarantees exist for an amount of €1.0 million at December 31, 2021 (€2.4 million as per
Balance at beginning of year
Charged to selling, general and administrative expenses
Utilization of the provision
Foreign currency translation effect
Balance at end of year
December 31,
2020
(278)
(83)
–
–
2021
(361)
(83)
–
–
December 31, 2020). These guarantees mainly relate to lease and tax payments.
Cash and cash equivalents have insignificant interest-rate risk and remaining maturities of maximum
three months or can be converted into cash without no more than 30 days’ notice. Except for
an amount of €4.9 million (2020: €4.1 million), there are no restrictions on usage of cash and
cash equivalents. The carrying amount of these financial assets approximates their fair value.
The company has not recognized a provision for expected credit loss for cash and cash equivalents
(361)
(444)
due to the insignificance of the amount.
Accounts receivable are impaired and provided for on an individual basis. As of December 31, 2021,
accounts receivable of €29 million were past due but not impaired. These balances are still
NOTE 12. EQUITY
Our Management Board has the power to issue ordinary shares and (financing) preferred shares
considered to be recoverable because they relate to customers for whom there is neither recent
insofar as the Management Board has been authorized to do so by the Annual General Meeting of
history of default nor expectation that this will incur. For further information on credit risk see
Shareholders (AGM). The Management Board requires the approval of the Supervisory Board for
Note 17.
NOTE 10. OTHER CURRENT ASSETS
Other current assets consist of the following:
Prepayments
VAT receivable
Amounts to be invoiced
Others
Total
such an issue. The authorization by the AGM can only be granted for a certain period. In the case
that the AGM has not authorized the Management Board to issue shares, the AGM shall have the
power to issue shares.
COMMON SHARES, PREFERRED AND FINANCING PREFERRED SHARES
Following the amendment of the articles of association on August 3, 2018, the authorized capital of
the company amounts to 82,500,000 common shares of €0.04 par value, 88,500 preferred shares
of €40 par value and 6,000 financing preferred shares of €40 par value.
The AGM of May 17, 2021 approved the cancellation of 500,000 treasury shares and this
cancellation became effective as per July 21, 2021.
December 31,
2020
14,485
12,818
33,813
11,829
72,945
2021
8,449
12,114
21,915
8,494
50,972
Amounts to be invoiced mainly relates to accrued revenue. For further information see
Note 21 contract balances.
As per December 31, 2021, 49,297,394 common shares with a nominal value of €0.04 each were
issued and fully paid up, of which 728,717 common shares are held by us in treasury. All shares
have one vote per €0.04 par value. Treasury shares held by the company cannot be voted on. Of
NOTE 11. CASH AND CASH EQUIVALENTS
Cash and cash equivalents at December 31, 2021 include bank deposits and investments in money
our 48,568,677 outstanding common shares at December 31, 2021, 48,282,085 are registered with
our transfer agent in the Netherlands, ABN AMRO Bank N.V., and 286,592 are registered with our
market funds that invest in marketable debt obligations and securities of governments, corporates
transfer agent in the United States, Citibank, NA, New York.
and financial institutions. The amount invested in deposits and money market funds at the end
of 2021 was €83 million (2020: €9 million) and interest-bearing bank accounts of €409 million
Financing preferred shares are designed to allow ASMI to finance equity with an instrument paying
(2020: €426 million). Our cash and cash equivalents are predominantly denominated in US dollars,
a preferred dividend, linked to EURIBOR loans and government loans, without the dilutive effects of
and partly in euros, Singapore dollars, Korean won, and Japanese yen.
issuing additional common shares.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
145
Preferred and financing preferred shares are issued in registered form only and are subject
On February 25, 2020, ASMI announced a share buyback program to purchase up to an amount of
to transfer restrictions. Essentially, a preferred or financing preferred shareholder must obtain
€100 million of its own shares within the 2020-2021 time frame. The 2020-2021 program started on
the approval of the company’s Supervisory Board to transfer shares. If approval is denied, the
June 2, 2020, and was completed on March 2, 2021.
Supervisory Board will provide a list of acceptable prospective buyers who are willing to purchase
the shares at a cash price to be fixed by consent of the Supervisory Board and seller within two
months after the approval is denied. If the transfer is approved, the shareholder must complete the
Period
transfer within three months, at which time the approval expires.
Share buyback program 2020-2021:
Total number of
shares
purchased
Average price
paid per share
(EUR)
Cumulative
number of
shares
purchased
Preferred shares are entitled to a cumulative preferred dividend based on the amount paid up on
such shares. Financing preferred shares are entitled to a cumulative dividend based on the par
value and share premium paid on such shares.
As per December 31, 2021, no preferred shares and no financing preferred shares are issued.
PURCHASES OF COMMON SHARES BY THE ISSUER AND
AFFILIATED PURCHASERS
On May 17, 2021, the AGM authorized the company, for an 18-month period, to be calculated from
the date of the AGM, to repurchase its own shares up to 10% of the issued capital, at a price at
least equal to the shares’ nominal value and at most a price equal to 110% of the shares’ average
closing price according to the listing on the Euronext Amsterdam stock exchange during the five
trading days preceding the purchase date.
On July 23, 2019, ASMI announced a share buyback program to purchase up to an amount of
€100 million of its own shares within the 2019-2020 time frame. The 2019-2020 program started on
November 1, 2019, and was completed on February 17, 2020.
Period
Share buyback program 2019-2020:
Total number of
shares purchased
Average price
paid per share
(EUR)
Cumulative
number of shares
purchased
November, 2019
December, 2019
January, 2020
February, 2020
Total
639,665
313,237
22,661
8,716
984,279
€100.95
€101.67
€112.32
€118.61
€101.60
639,665
952,902
975,563
984,279
June, 2020
July, 2020
August, 2020
September, 2020
October, 2020
November, 2020
December, 2020
January, 2021
February, 2021
March, 2021
Total
57,700
21,648
66,086
140,736
34,118
102,020
58,500
78,389
73,587
13,396
646,180
€119.16
€144.31
€127.15
€121.74
€130.83
€135.72
€169.64
€207.04
€231.18
€223.07
€154.76
57,700
79,348
145,434
286,170
320,288
422,308
480,808
559,197
632,784
646,180
On April 20, 2021, ASMI announced a share buyback program to purchase up to an amount
of €100 million of its own shares within the 2021 time frame. The 2021 program started on
July 28, 2021, and was completed on December 17, 2021.
Period
Share buyback program 2021:
July, 2021
August, 2021
September, 2021
October, 2021
November, 2021
December, 2021
Total
Total number of
shares
purchased
Average price
paid per share
(EUR)
Cumulative
number of
shares
purchased
10,093
74,680
87,223
43,292
33,531
43,297
292,116
€295.48
€314.22
€343.70
€318.51
€404.89
€374.34
€342.33
10,093
84,773
171,996
215,288
248,819
292,116
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
146
The following table shows the change in number of treasury shares and outstanding shares:
Number of shares
Balance at beginning of year
Purchase common shares
Exercise stock options out of treasury shares
Vesting restricted shares out of treasury shares
Cancellation treasury shares
Balance at end of year
Treasury
shares
Outstanding
shares
1,082,712
48,714,682
462,988
(123,521)
(193,462)
(500,000)
(462,988)
123,521
193,462
–
728,717
48,568,677
ASMI intends to use part of the shares for commitments under the employee share-based
compensation schemes and the performance shares and option program for the Management
Board.
The share buyback programs were executed by intermediaries through on-exchange purchases
or through off-exchange trades. ASMI updated the markets on the progress of the share buyback
programs on a weekly basis.
The repurchase programs are part of ASMI’s commitment to use excess cash for the benefit of
its shareholders.
TREASURY SHARES
On December 31, 2021, we had 48,568,677 outstanding common shares excluding 728,717
treasury shares. This compared to 48,714,682 outstanding common shares and 1,082,712 treasury
shares at year-end 2020. Besides the cancellation of 500,000 treasury shares in July 2021, the
change in the number of treasury shares in 2021 was the result of 462,988 repurchased shares and
316,983 treasury shares that were used as part of share-based payments.
As per January 1:
Issued shares
Treasury shares
Outstanding shares
Changes during the year:
Cancellation of treasury shares
Share buybacks
Treasury shares used for share-based performance programs
As per December 31:
Issued shares
Treasury shares
Outstanding shares
2020
2021
51,297,394
49,797,394
2,431,174
1,082,712
48,866,220
48,714,682
1,500,000
508,685
357,147
500,000
462,988
316,983
49,797,394
49,297,394
1,082,712
728,717
48,714,682
48,568,677
RETAINED EARNINGS
Distributions to common shareholders are limited to the extent the total amount of shareholders’
equity exceeds the amounts of nominal paid-in share capital (exclusive any share premium) and any
reserves to be formed pursuant to law or the company’s Articles of Association. The amounts are
derived from the company financial statements of ASMI.
ASMI aims to pay a sustainable annual dividend. The Supervisory Board, upon proposal of the
Management Board, will annually assess the amount of dividend that will be proposed to the
AGM. The decision that a dividend be proposed to the AGM will be subject to the availability of
distributable profits as well as retained earnings and may be affected by our potential future funding
requirements. Accordingly, dividend payments may fluctuate and could decline or be omitted in
any year.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
147
Over 2020, we paid in total a dividend of €2.00 per common share as regular dividend and was
Multi-employer plan
paid after the 2021 AGM in May 2021. We will propose to the forthcoming 2022 AGM to declare a
There are 157 eligible employees in the Netherlands. These employees participate in a multi-
regular dividend of €2.50 per share over 2021.
employer union plan (pension fund Metalektro PME) determined in accordance with the collective
Results on dilution of investments in associates are accounted for directly in equity. For 2021 and
plan, accounted for as a defined contribution plan, covers approximately 1,430 companies and
2020, these dilution results were €3,205 and €2,059, respectively.
approximately 165,800 contributing members. Our contribution to the multi-employer union plan
bargaining agreements effective for the industry in which we operate. This multi-employer union
OTHER RESERVES
The changes in the amounts of other reserves are as follows:
Proportionate
share in other
comprehensive income
of investments in
associates 1)
Remeasure-
ment on net
defined
benefit
Foreign
currency
translation
reserve
Total other
reserves
Balance January 1, 2020
(10,208)
(113)
137,261
126,940
Proportionate share in other
comprehensive income of
investments in associates
Remeasurement on net defined
benefit
Foreign currency translation effect
on foreign operations
(2,296)
–
–
Balance December 31, 2020
(12,504)
Proportionate share in other
comprehensive income of
investments in associates
Remeasurement on net defined
benefit
Foreign currency translation effect
on foreign operations
Balance December 31, 2021
11,833
–
–
(671)
–
374
–
261
–
181
–
442
–
–
(2,296)
374
(98,833)
(98,833)
38,428
26,185
–
–
11,833
181
91,273
91,273
129,701
129,472
1 Proportionate share in other comprehensive income investments in associates, remeasurement on net defined benefit
and translation reserve, items may be subsequently reclassified to profit or loss.
NOTE 13. EMPLOYEE BENEFITS
PENSION PLANS
The company has retirement plans covering substantially all employees. The principal plans are
defined contribution plans, except for the plans of the company’s operations in the Netherlands
and Japan.
was less than 5% of the total contribution to the plan. The plan monitors its risks on a global basis,
not by participating company or employee, and is subject to regulation by Dutch governmental
authorities. By law (the Dutch Pension Act), a multi-employer union plan must be monitored against
specific criteria, including the coverage ratio of the plan’s assets to its obligations. As of January
1, 2015, new pension legislation has been enacted. This legislation results in, amongst others, an
increase of legally required coverage levels. The coverage percentage is calculated by dividing the
funds capital by the total sum of pension liabilities and is based on actual market interest rates. The
coverage ratio as per December 31, 2021, of 107.9% (December 31, 2020: 97.2%) is calculated
giving consideration to the pension legislation. We have no obligation to pay off any deficits the
pension fund may incur, nor do we have any claim to any potential surpluses.
Every company participating in the PME contributes a premium calculated as a percentage of its
total pensionable salaries, with each company subject to the same contribution rate. The premium
can fluctuate yearly based on the coverage ratio of the multi-employer union plan. For 2021, the
contribution percentage was 27.59%. The pension rights of each employee are based upon the
employee’s average salary during employment.
Our net periodic pension cost for this multi-employer union plan for any period is the amount of the
required employer contribution for that period minus the employee contribution.
Defined benefit plan
The company’s employees in Japan participate in a defined benefit plan. The company makes
contributions to defined benefit plans in Japan that provide pension benefits for employees
upon retirement. These are average-pay plans, based on the employees’ years of service and
compensation near retirement.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
148
The most recent actuarial valuations of plan assets and the present value of the defined benefit
The defined benefit cost consists of the following:
obligation were carried out on December 31, 2021. The present value of the defined benefit
obligation and the related current service cost and past service cost were measured using
the projected unit credit method. Significant actuarial assumptions for the determination of the
defined obligation are discount rate, future general salary increases, and future pension increases.
The net liability (asset) of the plan developed as follows:
Defined benefit obligations
Fair value of plan assets
Net liability (asset) for defined benefit plans
December 31,
2020
11,083
12,514
(1,431)
2021
11,925
13,907
(1,982)
The changes in defined benefit obligations and fair value of plan assets are as follows:
Current service cost
Net interest cost
Net defined benefit cost
Remeasurement on net defined benefit for the year
Remeasurement on net defined benefit
Total defined benefit cost
December 31,
2020
928
(3)
925
(498)
(498)
427
2021
842
(10)
832
(257)
(257)
575
The assumptions in calculating the actuarial present value of benefit obligations and net periodic
benefit cost are as follows:
December 31,
2020
2021
Discount rate for defined benefit obligations
Discount rate for defined benefit cost
2020
0.50%
0.25%
2021
0.50%
0.50%
Defined benefit obligations
Balance January 1
Current service cost
Interest on obligation
Remeasurement result
Benefits paid
Foreign currency translation effect
Balance December 31
Fair value of plan assets
Balance January 1
Interest income
Return on plan assets
Company contribution
Benefits paid
Foreign currency translation effect
Balance December 31
11,446
11,083
Ministry of Health, Labour and Welfare of Japan.
Assumptions regarding life expectancy are based on mortality tables published in 2020 by the
928
28
(437)
(470)
(412)
842
53
463
(181)
(335)
The main risk concerning the pension plan relates to the discount rate. The defined benefit
obligation is sensitive to a change in discount rates. A relative change of the discount rate of
25 basis points would have resulted in a change in the defined benefit obligation of -2.5% to 2.6%.
11,083
11,925
The allocation of plan assets is as follows:
12,025
12,514
31
61
1,333
(470)
(466)
63
720
1,170
(181)
(379)
12,514
13,907
Cash and cash equivalent
Equity instruments
Debt instruments
Assets held by insurance company
December 31,
2020
2021
191
1,904
1,276
9,143
2%
15%
10%
73%
265
2,482
1,346
9,814
2%
18%
10%
70%
Total
12,514
100%
13,907
100%
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
149
The investment strategy is determined based on an asset-liability study in consultation with
investment advisors and within the boundaries given by the regulatory bodies for pension funds.
MANAGEMENT BOARD AND EMPLOYEE AND LONG-TERM
INCENTIVE PLAN
The company has adopted various share plans (e.g. a restricted share plan, and a performance
Equity instruments consist primarily of publicly traded Japanese companies and common collective
share plan) and has entered into share agreements with the Management Board and various
funds. Publicly traded equities are valued at the closing prices reported in the active market in which
employees. Under the stock option plans, the Management Board and employees may purchase
the individual securities are traded (level 1). Common collective funds are valued at the published
per the vesting date a specific number of shares of the company’s common stock at a certain price.
price (level 1) per share multiplied by the number of shares held as of the measurement date.
Options are priced at market value in euros on the date of grant. Under the restricted share plan,
Debt instruments consist of government bonds and are valued at the closing prices in the active
employees receive per the vesting date a specific number of shares of the company’s common
markets for identical assets (level 1). Assets held by the insurance company consist of bonds and
stock. Under the performance share plan, the Management Board receives per the vesting date,
loans, government securities and common collective funds. Corporate and government securities
and provided the performance criteria have been met, a specific number of shares of the company’s
are valued by third-party pricing sources (level 2). Common collective funds are valued at the net
common stock.
asset value per share (level 2) multiplied by the number of shares held as of the measurement date.
Authority to issue options and shares
The plan assets do not include any of the company’s shares.
By resolution of the Annual General Meeting of Shareholders (AGM) of May 17, 2021, the formal
Retirement plan costs
authority to issue options and shares was allocated to the Management Board subject to the
approval of the Supervisory Board. This authority is valid for 18 months and needs to be refreshed
ASMI contributed €1,170 to the defined benefit plan in 2021 (€1,333 in 2020). The company
by the 2022 AGM to allow the continued application of the long-term incentive (LTI) plans beyond
expects to pay benefits for years subsequent to December 31, 2021 as follows:
November 17, 2022. The company hasn’t granted new options since its last grant date per
2022
2023
2024
2025
2026
Aggregate for the years 2027-2031
Total
Expected contribution
defined benefit plan
April 2017.
1,052
702
460
209
668
5,411
8,502
The ASMI 2014 long-term incentive plan for employees (ELTI) is principally administered by the
Management Board and the ASMI 2014 long-term incentive plan for members of the Management
Board (MLTI) is principally administered by the Supervisory Board. This complies with applicable
corporate governance standards. However, the Supervisory Board has no power to represent
the company. For external purposes, the Management Board remains the competent body under
both LTI plans. The LTI plans envisage that the Supervisory Board, or in the case of the ELTI the
Management Board with the approval of the Supervisory Board, will determine the number of
options and shares to be granted to the Management Board members and to employees.
The company does not provide for any significant post-retirement benefits other than pensions.
2014 long-term incentive plan
In 2014, a new long-term incentive plan was adopted. In the new plan to limit potential dilution,
the amount of outstanding (vested and non-vested) options and shares granted to the Management
Board and to other employees will not exceed 5% of the issued ordinary share capital of ASMI.
The new long-term incentive plan 2014 consists of two sub-plans: the ELTI and the MLTI.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
150
Options and performance shares are issued to Management Board members and restricted shares
Options outstanding
are issued to employees once per annum on the date following the publication of the first-quarter
The following table is a summary of changes in options outstanding under the 2014 long-term
results of the relevant year. Possible grant to newly hired employees can be issued once a quarter,
incentive plan.
on the date following the publication of the financial results of the relevant quarter. The number of
options and shares outstanding under the long-term incentive plans or under any other plan or
arrangement in aggregate may never exceed 5% of ASMI’s share capital.
Performance and restricted shares outstanding
The following table is a summary of changes in performance shares and restricted shares
outstanding under the 2014 long-term incentive plan.
Number of
performance
shares
Number of
restricted
shares
Fair value at
grant date
(weighted
average)
Status
Balance January 1, 2020
69,740
367,841
Shares granted, employees
–
150,686
Unconditional
Shares granted, Management Board
Shares granted, Management Board
13,646
5,446
–
–
Conditional
Unconditional
Shares vested
Shares forfeited
(58,835)
(170,988)
–
(21,728)
Balance December 31, 2020
29,997
325,811
Shares granted, employees
–
86,357
Unconditional
Shares granted, Management Board
Shares granted, Management Board
6,343
4,504
–
–
Conditional
Unconditional
Shares vested
Shares forfeited
(26,414)
(167,048)
–
(10,708)
Balance December 31, 2021
14,430
234,412
€105.37
€113.85
€51.75
€260.77
€261.25
€49.78
In 2021, treasury shares were sold for the vesting of 193,462 restricted shares.
Balance January 1, 2015
Options granted, April 24, 2015
Balance December 31, 2015
Options granted, April 22, 2016
Balance December 31, 2016
Options granted, April 21, 2017
Balance December 31, 2017
Adjustment following capital repayment
Balance December 31, 2018
Options exercised, 2021
Balance December 31, 2021
In 2021, no options were granted.
Number of
options
Exercise price
in €
Fair value at
grant date
–
42,659
42,659
62,555
105,214
24,963
130,177
11,593
141,770
(123,521)
18,249
44.24
€17.33
37.09
€12.64
51.55
€14.57
–
–
–
–
At December 31, 2021, the aggregate intrinsic value of all options outstanding under the 2014
long-term incentive plan is €7,093 (2020: €25,512).
Share-based payments expenses
The grant date fair value of the stock options, the restricted shares and the performance shares
is expensed on a straight-line basis over the vesting period, based on the company’s estimate of
stock options, restricted shares, and performance shares that will eventually vest. The impact of the
true-up of the estimates is recognized in the consolidated statement of profit or loss in the period
in which the revision is determined. We recorded compensation expenses of €17,242 for 2021
(2020: €12,792).
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
151
NOTE 14. PROVISION FOR WARRANTY
The changes in the amount of provision for warranty are as follows:
NOTE 15. ACCRUED EXPENSES AND OTHER PAYABLES
Accrued expenses and other payables consist of the following:
December 31,
December 31,
Balance January 1
Charged to cost of sales
Deductions
Releases of expired warranty
Foreign currency translation effect
Balance December 31
2020
16,424
18,814
(14,115)
(884)
(1,252)
18,987
2021
18,987
24,911
(11,660)
(6,112)
1,055
27,181
Provision is made for estimated warranty claims in respect of products sold which are still under
Personnel-related items
Deferred revenue
Financing-related items
Current portion lease liabilities
Advanced payments from customers
Supplier-related items
Marketing-related items
Other
warranty at the end of the reporting period. Costs of warranty include the cost of labor and materials
Total accrued expenses and other payables
to repair a product during the warranty period. The main term of the warranty period is one year.
2020
50,637
46,999
991
6,221
4,137
6,010
1,228
12,704
128,927
2021
72,252
68,723
–
7,574
14,837
9,627
1,575
15,976
190,564
The company accrues for the estimated cost of the warranty on its products shipped in the
Personnel-related items comprise accrued management bonuses, accrued vacation days, accrued
provision for warranty, upon recognition of the sale of the product. The costs are estimated based
wage tax, social securities, and pension premiums. Deferred revenue consists of the revenue
on actual historical expenses incurred and on estimated future expenses related to current revenue,
relating to the undelivered elements of the arrangements, see Note 21 for more information.
and are updated periodically. Actual warranty costs are charged against the provision for warranty.
This part of revenue is deferred at their relative selling prices until delivery of these elements.
The assumptions made in relation to the current period are consistent with those in the prior year.
Other includes accruals for VAT, other taxes, and invoices to be received for goods and services.
Factors that could impact the estimated claim information include the success of the group’s
productivity and quality initiatives, as well as parts and labor costs. The main part of the claims is
expected to be settled in the next financial year.
NOTE 16. CREDIT FACILITY
As per December 31, 2021, ASMI was debt-free. ASMI may borrow under separate short-term
lines of credit with banks under an unsecured €150 million standby credit facility with a consortium
of banks.
Total short-term lines of credit amounted to €150 million on December 31, 2021. The amount
outstanding as at December 31, 2021 was nil, so the undrawn portion totaled €150 million.
The undrawn portion represents the company’s standby revolving credit facility of €150 million
with a consortium of banks. The facility will be available through December 16, 2023.
The credit facility of €150 million includes two financial covenants:
minimum consolidated tangible net worth; and
consolidated total net debt/total equity ratio.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
152
These financial covenants are measured twice each year on June 30 and December 31.
NOTE 17. FINANCIAL INSTRUMENTS AND FINANCIAL
RISK MANAGEMENT
The minimum level of consolidated tangible net worth for the year ended December 31, 2021
required was €450 million, the consolidated tangible net worth as per that date was €1,542 million.
Consolidated tangible net worth is defined as the net assets, deducting any amount shown in
respect of goodwill or other intangible assets (including any value arising from any valuation of
ASMPT).
Total equity is defined as the aggregate of:
the amounts paid up on the issued common shares;
share capital in excess of par value;
retained earnings;
accumulated other comprehensive income and loss; and
deducting any amount shown in respect of goodwill or other intangible assets.
FINANCIAL INSTRUMENTS
Financial instruments include:
Financial assets:
Cash and cash equivalents
Accounts receivable
Financial liabilities:
Accounts payable
December 31,
2020
2021
435,228
280,061
491,507
446,724
124,507
175,436
The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable
equal their fair values because of the short-term nature of these instruments.
The net debt/total equity ratio should not exceed 1.5. For the year ended December 31, 2021,
Gains or losses related to financial instruments are as follows:
the company has no net debt, cash and cash equivalents of €492 million, and total equity equals
the amount of consolidated tangible net worth.
The company is in compliance with these financial covenants as of December 31, 2021.
Interest income
Interest expense
Result from foreign currency exchange
ASMI does not provide guarantees for borrowings of ASMPT and there are no guarantees from
Addition to allowance for doubtful accounts receivable
2020
141
(2,008)
(23,157)
(83)
2021
23
(2,012)
33,473
(83)
ASMPT to secure indebtedness of ASMI. Under the rules of the Stock Exchange of Hong Kong,
ASMPT is precluded from providing loans and advances other than trade receivables in the normal
course of business, to ASMI or its non-ASMPT subsidiaries.
FINANCIAL RISK FACTORS
ASMI is exposed to a number of risk factors: market risks, credit risk, liquidity risk, and equity price
risk. The company may use forward exchange contracts to hedge its foreign exchange risk. The
company does not enter into financial instrument transactions for trading or speculative purposes.
Market risk
Market risk includes changes in market prices, foreign exchange rates and interest rates, which
will affect the group’s income or the value of its holdings of financial instruments. The objective
of market-risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
153
Foreign exchange risk
Furthermore, we may manage the currency exposure of certain receivables and payables using
ASMI and its subsidiaries conduct business in a number of foreign countries, with certain
derivative instruments, such as forward exchange contracts (fair value hedges) and currency
transactions denominated in currencies other than the functional currency of the company
swaps, and non-derivative instruments, such as debt borrowings in foreign currencies. The gains
(euro) or one of its subsidiaries conducting the business. The purpose of the company’s foreign
or losses on these instruments provide an offset to the gains or losses recorded on receivables and
currency management is to manage the effect of exchange-rate fluctuations on income, expenses,
payables denominated in foreign currencies. The derivative instruments are recorded at fair value
cash flows, and assets and liabilities denominated in selected foreign currencies, in particular
and changes in fair value are recorded in earnings under foreign currency exchange gains (losses)
denominated in US dollars.
in the consolidated statement of profit or loss. Receivables and payables denominated in foreign
currencies are recorded at the exchange rate at the balance sheet date, and gains and losses as a
We may use forward exchange contracts to hedge our foreign exchange risk of anticipated sales or
result of changes in exchange rates are recorded in earnings under foreign currency exchange gains
purchase transactions in the normal course of business which occur within the next twelve months,
(losses) in the consolidated statement of profit or loss.
for which we have a firm commitment from a customer or to a supplier. The terms of these contracts
are consistent with the timing of the transactions being hedged. The hedges related to forecasted
We do not use forward exchange contracts for trading or speculative purposes. Financial assets
transactions are designated and documented at the inception of the hedge as cash flow hedges,
and financial liabilities are recognized on the company’s consolidated statement of financial position
and are evaluated for effectiveness on a quarterly basis. The effective portion of the gain or loss on
when the company becomes a party to the contractual provisions of the instrument.
these hedges is reported as a component of accumulated other comprehensive income (loss) net of
taxes in equity, and is reclassified into earnings when the hedged transaction affects earnings.
To the extent that exchange rate fluctuations impact the value of the company’s investments in its
Changes in the fair value of derivatives that do not qualify for hedge treatment, as well as the
reported in consolidated equity. Reference is made to Note 12.
ineffective portion of any hedges, are recognized in earnings. We record all derivatives, including
forward exchange contracts, on the statement of financial position at fair value in accrued expenses
Per December 31, 2020 there were no forward exchange contracts outstanding. Per December 31,
and payables. Should contracts extend beyond one year, these are classified as long-term.
2021 one FX option was outstanding with a fair value of €37 thousand.
foreign subsidiaries, they are not hedged. The cumulative effect of these fluctuations is separately
The foreign currency exchange results in 2021 related only to translation gain of €33.5 million,
compared to translation loss of €23.2 million in 2020. A substantial part of ASMI’s cash position
is denominated in US dollar, which is the key driver of the exchange gain in 2021.
The following table analyzes the company’s exposure to currency risk in our major currencies.
(thousand)
Accounts receivable
Cash and cash equivalents
Accounts payable
Total
USD
275,247
306,855
(72,087)
510,015
2020
JPY
4,019,525
2,142,789
KRW
1,551,385
35,060,828
(3,486,230)
(16,031,125)
2,676,084
20,581,088
December 31,
SGD
134
42,710
(28,875)
13,969
USD
394,915
417,704
(97,705)
714,914
2021
JPY
6,890,314
1,864,776
KRW
9,091,916
29,215,789
(4,057,736)
(23,626,477)
4,697,354
14,681,228
SGD
395
27,003
(41,541)
(14,143)
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
154
The following table analyzes the company’s sensitivity to a hypothetical 10% strengthening and 10%
Our customers are semiconductor device manufacturers located throughout the world. We perform
weakening of the US dollar, Singapore dollar, Korean won and Japanese yen against the euro as of
ongoing credit evaluations of our customers’ financial condition. We take additional measures
December 31, 2020, and December 31, 2021. This analysis includes foreign currency-denominated
to mitigate credit risk when considered appropriate by means of down payments or letters of
monetary items and adjusts their translation at year-end for a 10% increase and 10% decrease
credit. We generally do not require collateral or other security to support financial instruments with
against the euro.
credit risk.
(EUR thousand)
10% increase of US dollar versus euro
10% decrease of US dollar versus euro
10% increase of Singapore dollar versus euro
10% decrease of Singapore dollar versus euro
10% increase of Korean won versus euro
10% decrease of Korean won versus euro
10% increase of Japanese yen versus euro
10% decrease of Japanese yen versus euro
Impact on financial instruments
Concentrations of credit risk (whether on- or off-balance sheet) that arise from financial instruments
2020
41,563
(41,563)
861
(861)
1,544
(1,544)
2,117
(2,117)
2021
63,121
(63,121)
(926)
926
1,086
(1,086)
3,603
(3,603)
exist for groups of customers or counterparties when they have similar economic characteristics
that would cause their ability to meet contractual obligations to be similarly affected by changes in
economic or other conditions.
We derive a significant percentage of our revenue from a small number of large customers.
The 10 largest customers accounted for approximately 78.9% of revenue in 2021 (2020: 85.1%).
The three largest customers accounted for approximately 59.4% of revenue in 2021 (2020: 59.1%).
In 2021, we had three customers (2020: three customers) who contributed more than 10% of
total revenue. Revenue to these large customers may also fluctuate significantly from time to
time, depending on the timing and level of purchases by these customers. Significant orders
A hypothetical 10% strengthening or 10% weakening of any other currency against the euro as
from such customers may expose the company to a concentration of credit risk, and difficulties
of December 31, 2020 and December 31, 2021 could have a material impact on net earnings for
in collecting amounts due, which could harm the company’s financial results. However, given
certain currencies.
Interest risk
the creditworthiness of our customers and historical experience, we have not accounted for an
expected credit loss over the outstanding balances in general, for further details we refer to Note 9.
We are exposed to interest rate risk through our cash deposits. The company does not enter into
We invest our cash and cash equivalents in short-term deposits, money-market funds, and
financial instrument transactions for trading or speculative purposes, or to manage interest-rate
derivative instruments with high-rated financial institutions. We only enter into transactions with a
exposure. As per December 31, 2021, the company had no debt and was not exposed to interest
limited number of major financial institutions that have high credit ratings, and we closely monitor the
rate risk on borrowings.
Credit risk
creditworthiness of our counterparties. Concentration risk is mitigated by not limiting the exposure
to a single counterparty.
Financial instruments that potentially subject the company to concentrations of credit risk consist
The maximum credit exposure is equal to the carrying values of cash and cash equivalent, and
primarily of cash and cash equivalents, accounts receivable, and derivative instruments. These
accounts receivable.
instruments contain a risk of counterparties failing to discharge their obligations. We monitor
credit risk and manage credit risk exposure by type of financial instrument by assessing the
Liquidity risk
creditworthiness of counterparties. We do not anticipate non-performance by counterparties, given
Our policy is to maintain a strong capital base so as to maintain investor-, creditor- and market
their high creditworthiness.
confidence and to sustain future development of the business.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
155
Our liquidity needs are affected by many factors, some of which are based on the normal ongoing
operations of the business, and others that relate to the uncertainties of the global economy and
NOTE 18. COMMITMENTS AND CONTINGENCIES
Per December 31, 2021, the company entered into purchase commitments with suppliers
the semiconductor industry. Although our cash requirements fluctuate based on the timing and
in the amount of €650,775 (2020: €183,949) for purchases within the next 12 months and
extent of these factors, we believe that cash generated from operations, together with our principal
€7,986 (2020: €2,170) after 12 months. Commitments for capital expenditures and other
sources of liquidity, are sufficient to satisfy our current requirements, including our expected capital
commitments per December 31, 2021 were €6,965 (2020: €10,495) within the next 12 months
expenditures in 2022.
and €0 (2020: €568) after 12 months. The increase in commitments to suppliers is mainly caused
by an overall increase in business volume and due to issuance of purchase orders to ensure
We intend to return cash to our shareholders on a regular basis in the form of dividend payments
continuity of supply.
and, subject to our actual and anticipated liquidity requirements and other relevant factors, share
buybacks.
NOTE 19. LITIGATION
ASMI is, and may become, a party to various legal proceedings incidental to its business. As is
The following table summarizes the company’s contractual and other obligations as at
the case with other companies in similar industries, the company faces exposure from actual or
December 31, 2021.
Accounts payable
Income tax payable
175,436
175,436
14,519
14,519
Accrued expenses and other payables
190,564
190,564
–
–
–
–
–
–
Total
Less than
1 year
1-5 years
More than
5 years
Non-current lease liabilities
Pension liabilities
Purchase obligations:
15,885
8,502
–
1,052
12,524
2,039
3,361
5,411
Purchase commitments to suppliers
658,761
650,775
7,986
Capital expenditure and other commitments
6,965
6,965
–
–
–
Total contractual obligations
1,070,632
1,039,311
22,549
8,772
Total short-term lines of credit amounted to €150 million at December 31, 2021. The amount
outstanding at December 31, 2021 was nil and the undrawn portion totaled €150 million. The
standby revolving credit facility of €150 million with a consortium of banks will be available through
December 16, 2023.
For the majority of purchase commitments, the company has flexible delivery schedules depending
on the market conditions, which allows the company, to a certain extent, to delay delivery beyond
originally planned delivery schedules.
potential claims and legal proceedings. Although the ultimate result of legal proceedings cannot be
predicted, and in many events cannot be reasonably estimated, it is the opinion of the company’s
management that the outcome of any claim which is currently pending, either individually or on
a combined basis, will not have a material effect on the financial position of the company, its cash
flows and result of operations.
NOTE 20. SEGMENT DISCLOSURE
Operating segments are reported in a manner consistent with the internal reporting provided to the
Chief Executive Officer (CEO), who is the Chief Operating Decision Maker (CODM). Previously, the
company organized its activities in two operating segments, Front-end and Back-end.
In the second half of 2021, the company removed the Back-end segment (ASMPT) as
a separate operating segment. We refer to Note 1 for further considerations on the change
in operating segments.
The accounting policies used to measure the net earnings and total assets in each segment are
consistent with those used in the consolidated financial statements. The measurement methods
used to determine reported segment earnings are consistently applied for all periods presented.
There were no asymmetrical allocations to segments.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
156
Geographical information is summarized as follows:
Revenue stream
Year ended December 31,
2020
2021
Revenue
332,981
141,300
853,841
1,328,122
Non-current
assets 1)
208,780
59,765
265,879
534,424
Revenue
454,148
172,442
1,103,321
1,729,911
Non-current
assets 1)
276,414
74,377
289,776
640,567
The company generates revenue primarily from the sales of equipment and sales of spares &
services. The products and services are described by nature in Note 1, and are recognized within
these revenue streams as follows:
Equipment revenue: This revenue stream captures the sale of equipment and installation
services. Revenues from royalties and licenses are included to the extent that these licenses relate
to equipment.
Spares & service revenue: The revenues included under this line relate to the sale of spares and
support services. Revenues from royalties and licenses are included to the extent that these
(EUR thousand)
United States
Europe
Asia
Total
1 Other than financial instruments, deferred tax assets and post-employment benefit assets
licenses relate to spares.
We refer to Note 17. Financial instruments and financial risk management for information on the
extent of reliance on major customers.
NOTE 21. REVENUE
Geographical information is summarized as follows:
(EUR thousand)
Equipment revenue
Spares & services revenue
Total
Year ended December 31,
2020
2021
1,051,463
1,408,102
276,659
321,809
1,328,122
1,729,911
(EUR thousand)
United States
Europe
Asia
Total
Year ended December 31,
2020
2021
Revenue
332,981
141,300
853,841
1,328,122
Revenue
454,148
172,442
1,103,321
1,729,911
Total revenue increased by 30%, driven by solid increases in our ALD business.
Contract balances
Accrued revenue
Deferred revenue
2020
33,813
46,999
2021
21,915
68,723
For geographical reporting, the revenue is attributed to the geographical location in which the
customer’s facilities are located.
The increase in the contract balances is the result of the higher activity level of the company.
The accrued revenue included in the ‘Amounts to be invoiced’ primarily relate to the company’s right
to consideration for work completed and revenue recognized but not billed at the reporting date.
The accrued revenue is transferred to accounts receivables when the rights become unconditional.
This usually occurs when the company issues an invoice to the customer.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
157
Deferred revenue relates to the advance consideration received from customers for which revenue is
Reconciliation of effective tax rate
not yet recognized because the performance obligation has not been satisfied yet. Deferred revenue
The provisions for income taxes as shown in the consolidated statements of profit or loss differ from
consists of the revenue relating to undelivered elements of the arrangement with customers.
the amounts computed by applying the Dutch statutory income tax rate to earnings before taxes.
This part of the revenue is deferred at the transaction price allocated to the performance obligations
A reconciliation of the provisions for income taxes and the amounts that would be computed using
until shipment. An amount of €21 million included in the deferred revenue at December 31, 2020,
the Dutch statutory income tax rate is set forth as follows:
has been recognized in 2021.
NOTE 22. INCOME TAXES
Amounts recognized in profit or loss
The components of the result before income taxes consist of:
The Netherlands
Other countries
Result before income taxes
The income tax expense consists of:
Current:
The Netherlands
Other countries
Deferred:
The Netherlands
Other countries
Year ended December 31,
2020
212,795
121,274
334,069
2021
358,039
239,285
597,324
Year ended December 31,
2020
2021
(25,462)
(17,754)
(43,216)
(3,348)
(2,109)
(72,032)
(7,718)
(79,750)
(5,948)
(16,917)
Income tax expense
(48,673)
(102,615)
Result before income taxes from
continuing operations
Income tax provision based on
Dutch statutory income tax rate
Non-deductible expenses
Foreign taxes at a rate other than the
Dutch statutory rate
Tax incentives and non-taxable income 1)
Adjustments in respect of prior years'
current taxes
Other 2)
Year ended December 31,
2020
2021
334,069
100.0%
597,324
100.0%
(83,517)
25.0%
(149,331)
(1,892)
0.6%
(2,098)
5,575
24,961
4,525
1,675
(1.7)%
(7.5)%
(1.4)%
(0.5)%
8,484
37,708
3,818
(1,196)
25.0%
0.4%
(1.4)%
(6.3)%
(0.6)%
0.2%
17.2%
Tax income (expense)
(48,673)
14.6%
(102,615)
1 Non-taxable income consists of revenues deriving from the share in income of investments in associates which are
exempted under the Dutch participation exemption.
2 Other mainly consists of tax credits, withholding taxes, changes in (enacted) tax laws and revaluation of certain assets.
Tax incentives relate to the Netherlands (Innovation Box), Singapore (Pioneer Certificate) and South
Korea. On June 8, 2009, the Singapore Economic Development Board (EDB) granted a Pioneer
Certificate to ASM Front-end Manufacturing Singapore Pte Ltd (FEMS), a principal subsidiary of the
Group, to the effect that profits arising from certain manufacturing activities by FEMS of equipment
will in principle be exempted from tax for a period of 10 years effective from July 1, 2008, subject to
fulfillment of certain criteria during the period. This exemption has been extended for a period of five
years, until July 2023.
The Dutch statutory tax rate is 25%. Taxation for other jurisdictions is calculated at the rates
prevailing in the relevant jurisdictions. During 2021, there was no significant change in the statutory
tax rates of the relevant jurisdictions. The company’s deferred tax assets and liabilities have
been determined in accordance with these statutory income tax rates including the increased
Dutch statutory rate of 25.8% per 2022.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
158
Movement in deferred tax balances
Right-of-use assets & lease liabilities
Property plant and equipment
Other intangible assets
Evaluation tools
Employee benefits
Inventories
Provision for warranty
Accrued expenses
Tax losses carried forward
R&D tax credits
Total deferred tax
Right-of-use assets & lease liabilities
Property plant and equipment
Other intangible assets
Evaluation tools
Employee benefits
Inventories
Provision for warranty
Accrued expenses
Tax losses carried forward
R&D tax credits
Total deferred tax
Net balance at
January 1, 2020
Consolidated statement
of profit and loss
Equity
Exchange
differences
Net balance at
December 31, 2020
Deferred tax assets at
December 31, 2020
Deferred tax liabilities at
December 31, 2020
45
771
(36,920)
2,993
(320)
1,143
3,235
1,290
–
10,691
(17,072)
51
(146)
(8,065)
2,343
(131)
(61)
830
2,012
–
(2,290)
(5,457)
–
–
–
–
(112)
–
–
–
–
–
(112)
(5)
(72)
2,358
(136)
14
(81)
(231)
(54)
–
(848)
945
91
553
(42,627)
5,200
(549)
1,001
3,834
3,248
–
7,553
(21,696)
–
–
–
–
–
134
–
62
–
–
196
91
553
(42,627)
5,200
(549)
867
3,834
3,186
–
7,553
(21,892)
Net balance at
January 1, 2021
Consolidated statement
of profit and loss
Equity
Exchange
differences
Net balance at
December 31, 2021
Deferred tax assets at
December 31, 2021
Deferred tax liabilities at
December 31, 2021
91
553
(42,627)
5,200
(549)
1,001
3,834
3,248
–
7,553
(21,696)
109
(3,370)
(16,471)
(1,097)
(69)
203
1,593
2,845
–
(6,608)
(22,865)
–
–
–
–
(79)
–
–
–
–
–
12
(11)
(1,687)
(154)
17
74
224
203
–
283
212
(2,828)
(60,785)
3,949
(680)
1,278
5,651
6,296
–
1,228
(79)
(1,039)
(45,679)
–
–
–
–
–
–
–
69
–
–
69
212
(2,828)
(60,785)
3,949
(680)
1,278
5,651
6,227
–
1,228
(45,748)
Deferred tax assets and/or liabilities for temporary differences are mainly recognized in the Netherlands, United States, Japan, South Korea and Singapore.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
159
Income tax receivable and income tax payable
Other taxes
During 2021, the company paid income taxes of €151.6 million (2020: €8.1 million) for tax
The company has not provided for deferred foreign withholding taxes, if any, on undistributed
assessments relating to the years 2019, 2020 and 2021.
earnings of its foreign subsidiaries. At December 31, 2021, the undistributed earnings of
subsidiaries, subject to withholding taxes, were approximately €117,101. These earnings could
Income taxes paid in 2021, turned out being overpaid by €18.1 million, therefore resulting in an
become subject to foreign withholding taxes if they were remitted as dividends and/or if the
income tax receivable ultimo 2021. The tax payable decreased to €14.5 million (2020: €67.9 million)
company should sell its interest in the subsidiaries.
as a result of income tax paid in 2021.
Unrecognized deferred tax assets
NOTE 23. EXPENSES BY NATURE
Expenses by nature were as follows:
The credits concern R&D credits generated in the US, in the state of Arizona. However, ASMI does
not recognize these credits stemming from prior years due to the fact that utilization of prior-year
credits is only possible if and when the credits generated in the current year are fully utilized. Given
the level of R&D activity in the US, the company does not expect it could fully utilize the credits
generated in the current year and, hence, does not expect to benefit from the available credits
generated in prior years.
Materials and supplies
Personnel expenses
Depreciation and amortization
2021
Impairments
Gross amount
Tax effect
Other personnel-related expenses
Credits
Unrecognized deferred tax assets
18,442
18,442
18,442
18,442
Professional fees
Other 1)
Year ended December 31,
2020
554,829
255,814
78,903
10,126
51,661
24,397
25,249
2021
727,910
322,226
93,614
1,967
63,938
27,520
5,349
Summary of open tax years
A summary of open tax years by major jurisdiction is as follows:
Total cost of sales, selling, general and administrative and
research and development expenses
1,000,979
1,242,524
1 Other relates to facility expenses, IT expenses and other expenses minus capitalized expenses.
Jurisdiction
Japan
The Netherlands
Singapore
United States of America
South Korea
2016 - 2021
2020 - 2021
2016 - 2021
2001 - 2021
2016 - 2021
Research and development consists of the following:
Gross research and development expenses
Capitalization of development expenses
Amortization of capitalized development expenses
Research and development grants and credits
Year ended December 31,
2020
171,842
(64,126)
21,187
(27)
2021
206,019
(81,973)
25,184
–
The calculation of the company’s tax liabilities involves dealing with uncertainties in the application
Total research and development expenses
128,876
149,230
of complex tax laws. The company’s estimate for the potential outcome of any unrecognized tax
benefits is highly judgmental. Settlement of unrecognized tax benefits in a manner inconsistent
Impairment of capitalized development expenses
Net research and development expenses
10,126
139,002
1,967
151,197
with the company’s expectations could have a material impact on the company’s financial position,
net earnings and cash flows. The company is subject to tax audits in its major tax jurisdictions, and
The impairment expenses in 2020 and 2021 are related to customer-specific projects.
local tax authorities may challenge the positions taken by the company.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
160
Personnel expenses for employees were as follows:
The number of employees, exclusive of temporary workers, by function at year-end was as follows:
Wages and salaries
Social security
Pension expenses
Share-based payment expenses
Restructuring expenses
Total
December 31,
December 31,
2020
216,832
17,200
8,948
12,792
42
2021
Per function
273,394
Research and development
20,333
11,257
17,242
Manufacturing
Marketing and sales
Customer service
–
Corporate and support functions
255,814
322,226
Total
2020
613
531
341
884
214
2,583
2021
649
879
396
1,090
298
3,312
Personnel expenses are included in cost of sales and in operating expenses in the consolidated
statement of profit or loss.
NOTE 24. EARNINGS PER SHARE
Basic net earnings per common share is calculated by dividing net income attributable to common
shareholders by the weighted average number of common shares outstanding for that period. The
The number of employees, exclusive of temporary workers, by geographical area at year-end was
dilutive effect is calculated using the treasury stock method. The calculation of diluted net income
as follows:
Geographical location
Europe:
- the Netherlands
- EMEA
United States
Japan
South Korea
Singapore
Asia, other
Total
per share assumes the exercise of options issued under our stock option plans (and the issuance
of shares under our share plans) for periods in which exercises (or issuances) would have a dilutive
December 31,
2020
2021
effect.
146
221
714
283
302
524
393
161
240
814
295
392
854
556
2,583
3,312
The calculation of basic and diluted net income per share attributable to common shareholders is
based on the following data:
December 31,
2020
2021
Net earnings used for purposes of calculating net income per
common share
Net earnings from operations
285,396
494,709
Basic weighted average number of shares outstanding during the
year
Effect of dilutive potential common shares from stock options and
restricted shares
Dilutive weighted average number of shares outstanding
Basic net earnings per share:
from operations
Diluted net earnings per share:
from operations
48,907
48,645
452
49,359
264
48,909
5.84
10.17
5.78
10.11
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
161
NOTE 25. BOARD REMUNERATION
During 2021, the company considered the members of the Management Board and the Supervisory
Board to be the key management personnel. Total remuneration for key management personnel
NOTE 26. SHARE OWNERSHIP AND RELATED PARTY
TRANSACTIONS
The ownership or controlling interest of outstanding common shares of ASMI by members of the
in 2021 amounts to €4,800 (2020: €7,181). ASMI does not provide any loans, deposits or related
Management Board and Supervisory Board or members of their immediate family are as follows:
P.A.M. van Bommel (former member
of the Management Board) 1)
P.F.M. van der Meer Mohr
(member of the Supervisory Board)
D. Lamouche
(member of the Supervisory Board)
M.J.C. de Jong
(member of the Supervisory Board)
Shares
owned
26,177
n.a.
n.a.
December 31, 2020
December 31, 2021
Percentage of
common shares
outstanding
Shares
owned
Percentage of
common shares
outstanding
0.05%
n.a.
n.a.
n.a.
200
390
n.a.
0.00%
0.00%
0.01%
4,050
0.01%
4,050
1 This information is not disclosed for 2021 as Mr. P.A.M. van Bommel had stepped down from the ASMI Board
on May 17, 2021.
The company has a related party relationship with its subsidiaries, equity-accounted investees, and
members of the Supervisory Board and the Management Board. Related party transactions, if any,
are conducted on an arm’s-length basis with terms comparable to transactions with third parties.
guarantees to the members of the Management Board or the Supervisory Board.
MANAGEMENT BOARD
The remuneration of members of the Management Board has been determined by the Supervisory
Board according to the following table that sets out information concerning all remuneration from
the company (including its subsidiaries) for services in all capacities to all current members of the
Management Board of the company. The remuneration of the Management Board consists of the
remuneration of current and former managing directors.
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Termination benefits
Share-based payment 1)
Total Management Board remuneration before additional
payroll tax
Other 2)
Total Management Board remuneration
December 31,
2020
2,410
216
–
–
1,804
4,430
2,400
6,830
2021
2,856
190
–
–
1,391
4,437
–
4,437
1 The amounts included for share-based payment in the total remuneration represent the vesting expenses related to
the financial year.
2 Represents an additional payroll tax to the company due to vesting of already granted shares in previous years related
to the retirement of a member of the Management Board subject to article 32bb of the Dutch Wage Tax Act.
SUPERVISORY BOARD
The total remuneration (base compensation, no bonuses or pensions were paid) from the company
(including its subsidiaries) for services in all capacities to all current and former members of the
Supervisory Board of the company in 2021 amounts to €363 (2020: €351). No stock options or
performance shares have been granted to members of the Supervisory Board.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
162
NOTE 27. PRINCIPLE AUDITOR’S FEES AND SERVICES
KPMG Accountants N.V. has served as our external auditor for the years 2021 and 2020. The table
Audit services
Management submits to the Audit Committee for preapproval the scope and estimated fees for
sets out the aggregate fees for professional audit services and other services rendered by the
specific services directly related to performing the independent audit of our consolidated financial
external auditors and its member firms and/or affiliates in 2021 and 2020. The fees mentioned in
statements for the current year.
the table for the audit of the financial statements 2021 (2020) relate to the total fees for the audit
of the financial statements 2021 (2020), irrespective of whether the activities were performed during
Audit-related services
the financial year 2021 (2020). Other audit-related fees are related to assurance services on non-
The Audit Committee may preapprove expenditures up to a specified amount for services included
financial information. The following fees were charged by KPMG Accountants N.V. to the company,
in identified service categories that are related extensions of audit services and are logically
its subsidiaries and other consolidated companies, as referred to in Section 2:382a(1) and (2) of the
performed by the auditors. Additional services exceeding the specified preapproved limits require
Dutch Civil Code.
specific Audit Committee approval.
2020
2021
Tax services
KPMG
Accountants NV
KPMG
network
KPMG
total
KPMG
Accountants NV
KPMG
network
KPMG
total
623
245
868
–
–
–
–
–
–
–
–
–
676
50
–
–
264
–
–
–
940
50
–
–
The Audit Committee may preapprove expenditures up to a specified amount per engagement and
in total for identified services related to tax matters. Additional services exceeding the specified
preapproved limits, or involving service types not included in the preapproved list, require specific
Audit Committee approval.
623
245
868
726
264
990
Other services
Audit fees
Audit-related fees
Tax fees
Other fees
Total
AUDIT COMMITTEE PREAPPROVAL POLICIES
The Audit Committee has determined that the provision of services by KPMG described in the
In the case of specified services for which utilizing our external auditor creates efficiencies, minimizes
disruption, or preserves confidentiality, or for which management has determined that our external
auditor possesses unique or superior qualifications to provide such services, the Audit Committee
may preapprove expenditures up to a specified amount per engagement and in total. Additional
preceding paragraphs is compatible with maintaining KPMG’s independence. All audit and permitted
services exceeding the specified preapproved limits, or involving service types not included in the
non-audit services provided by KPMG during 2021 were preapproved by the Audit Committee.
preapproved list, require specific Audit Committee approval.
The Audit Committee has adopted the following policies and procedures for preapproval of all audit
and permitted non-audit services provided by our external auditor:
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
163
NOTE 28. SUBSIDIARIES
Unless otherwise indicated, these are, directly or indirectly, wholly-owned subsidiaries.
The location included below is the principal place of business of the specified subsidiaries.
There is no difference between the principal place of business and country of incorporation.
Name
Subsidiaries (consolidated)
ASM Europe BV 1)
ASM IP Holding BV 1)
ASM Pacific Holding BV 1) 2)
ASM Netherlands Holding BV 1)
ASM United Kingdom Sales BV 1)
ASM Germany Sales BV 1)
ASM France SARL
ASM Italia Srl
ASM Belgium NV
ASM Services and Support Ireland Ltd
ASM Services and Support Israel Ltd
ASM Microchemistry Oy
ASM America Inc
ASM NuTool Inc
ASM Japan KK
ASM Wafer Process Equipment Singapore Pte Ltd
ASM Front-End Manufacturing Singapore Pte Ltd
ASM Services & Support Malaysia SDN BHD
Location
Almere, the Netherlands
Almere, the Netherlands
Almere, the Netherlands
Almere, the Netherlands
Almere, the Netherlands
Almere, the Netherlands
Crolles, France
Milano, Italy
Leuven, Belgium
Dublin, Ireland
Kiryat Gat, Israel
Helsinki, Finland
Phoenix, Arizona, United States of America
Phoenix, Arizona, United States of America
Tokyo, Japan
Singapore
Singapore
Kulim, Malaysia
ASM Korea Ltd
Dongtan, South Korea
ASM Front-End Sales & Services Taiwan Co Ltd
Hsin-Chu, Taiwan
ASM China Ltd
Shanghai, People’s Republic of China
% ownership December 31,
2020
2021
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
1 For these subsidiaries, ASM International N.V. has filed statements at the Dutch Chamber of Commerce assuming joint and several liability in accordance with Article 403, Part 9 of Book 2 of
the Dutch Civil Code.
2 ASM Pacific Holding BV holds 24.96% of the shares in ASM Pacific Technology Ltd.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
164
NOTE 29. SUBSEQUENT EVENTS
Subsequent events were evaluated up to March 3, 2022, which is the issuance date of
this Annual Report 2021. There are no subsequent events to report.
SIGNING
Almere, the Netherlands
March 3, 2022
SUPERVISORY BOARD
M.C.J. van Pernis
S. Kahle-Galonske
D.R. Lamouche
M.J.C. de Jong
P.F.M. van der Meer Mohr
A.T. Sanchez
M. de Virgiliis
MANAGEMENT BOARD
G.L. Loh
P.A.H. Verhagen
ASM International N.V. financial statements
ASM International N.V. financial statements
Company balance sheet
Company balance sheet
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
165
COMPANY BALANCE SHEET
(before proposed appropriation of net earnings for the year)
(EUR thousand)
Non-current assets
Right-of-use assets
Property, plant and equipment
Goodwill
Other intangible assets
Investments in subsidiaries and associates
Loans to subsidiaries
Other non-current assets
Total non-current assets
Current assets
Loans to subsidiaries
Amounts due from subsidiaries
Income tax receivable
Other current assets
Cash and cash equivalents
Total current assets
Total assets
Equity
Common shares
Capital in excess of par value
Treasury shares
Legal reserves
Translation reserve
Other legal reserves
Accumulated net earnings
Net earnings current year
Total equity
Non-current liabilities
Lease liabilities
Total non-current liabilities
Current liabilities
Accounts payable
Amounts due to subsidiaries
Income tax payable
Accrued expenses and other payables
Total current liabilities
Total liabilities
Total equity and liabilities
The notes on the following pages are an integral part of these company financial statements.
Notes
2020
2021
December 31,
2
3
3
3
6
7
4
5
6
7
172
148
11,270
197
1,831,446
39,689
6,166
1,889,088
2,071
71,562
–
685
–
74,318
1,963,406
1,992
34,502
(104,962)
26,185
908,910
702,701
285,396
1,854,724
69
69
295
49,950
52,714
5,654
108,613
108,682
1,963,406
402
70
11,270
29
2,433,956
40,518
5,977
2,492,222
2,180
104,032
18,098
929
89,527
214,766
2,706,988
1,972
25,281
(155,397)
129,472
1,051,972
693,745
494,709
2,241,754
261
261
1,503
458,756
–
4,714
464,973
465,234
2,706,988
Company statement of profit or loss
Company statement of profit or loss
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
166
COMPANY STATEMENT OF PROFIT OR LOSS
(EUR thousand)
Operating expenses:
Selling, general and administrative
Research and development
Total operating expenses
Result from operations
Finance income
Finance expense
Foreign currency exchange gain (loss)
Result before income taxes
Income taxes
Net earnings from holding activities
Net earnings from subsidiaries and associates
Total net earnings
The notes on the following pages are an integral part of these company financial statements.
Year ended December 31,
Notes
2020
2021
8
(26,408)
(4,074)
(30,482)
(29,987)
(672)
(30,659)
(30,482)
(30,659)
2,576
(1,211)
34,975
5,858
(2,325)
3,533
281,863
285,396
2,124
(1,483)
(28,493)
(58,511)
16,727
(41,784)
536,493
494,709
Notes to the company financial statements
Notes to the company financial statements
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
167
NOTES TO THE COMPANY FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ASM International N.V. (ASMI or the company) is a Dutch public liability company.
Statutory seat: Versterkerstraat 8, 1322 AP Almere, the Netherlands.
Settlement within the fiscal unity between the company and its subsidiaries takes place through
current account positions.
Participating interests in group companies
The description of our activities and our structure, as included in the notes to the consolidated
Group companies are all entities in which the company has directly or indirectly control. The
financial statements, also apply to the company financial statements.
company controls an entity when it is exposed, or has rights, to variable returns from its involvement
with the group company and has the ability to affect those returns through its power over the group
The accompanying company financial statements are stated in thousands of euros unless otherwise
company. Group companies are recognized from the date on which control is obtained by the
indicated.
company and derecognized from the date that control by the company over the group company
ceases. Participating interests in group companies are accounted for in the company financial
ACCOUNTING POLICIES APPLIED
The financial statements of the company included in this section are prepared in accordance
statements according to the equity method, with the principles for the recognition and measurement
of assets and liabilities and determination of results as set out in the notes to the consolidated
with Part 9 of Book 2 of the Dutch Civil Code. For setting the principles for the recognition and
financial statements.
measurement of assets and liabilities and determination of results for the company financial
statements, the company makes use of the option provided in section 2:362(8) of the Dutch
Participating interests with a negative net asset value are valued at nil. This measurement also
Civil Code. This means that the principles for the recognition and measurement of assets and
covers any receivables provided to the participating interests that are, in substance, an extension of
liabilities and determination of the result (hereinafter referred to as principles for recognition and
the net investment. In particular, this relates to loans for which settlement is neither planned nor likely
measurement) of the company financial statements of the company are the same as those applied
to occur in the foreseeable future. A share in the profits of the participating interest in subsequent
for the consolidated EU-IFRS financial statements. These principles also include the classification
years will only be recognized if and to the extent that the cumulative unrecognized share of loss has
and presentation of financial instruments, being equity instruments or financial liabilities. In
been absorbed. If the company fully or partially guarantees the debts of the relevant participating
case no other principles are mentioned, refer to the accounting principles as described in the
interest, or if has the constructive obligation to enable the participating interest to pay its debts
consolidated financial statements. For an appropriate interpretation of these statutory financial
(for its share therein), then a provision is recognized accordingly to the amount of the estimated
statements, the company financial statements should be read in conjunction with the consolidated
payments by the company on behalf of the participating interest.
financial statements.
Information on the use of financial instruments and on related risks for the group is provided in
The share in the result of participating interests consists of the share of the company in the result
the notes to the consolidated financial statements of the group.
of these participating interests. Results on transactions involving the transfer of assets and liabilities
Corporate income tax
between the company and its participating interests and mutually between participating interests
themselves, are eliminated to the extent that they can be considered as not realized.
The company is the head of the Dutch fiscal unity. The company recognizes the portion of corporate
income tax that it would owe as an independent taxpayer, taking into account the allocation of the
advantages of the fiscal unity.
NOTE 2. GOODWILL
Reference is made to Note 4 of the consolidated financial statements.
Share of result of participating interests
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
168
NOTE 3. INVESTMENTS AND LOANS TO SUBSIDIARIES
Investments in
subsidiaries
Loans to
subsidiaries
Total
NOTE 4. CASH AND CASH EQUIVALENTS
The amounts of cash and cash equivalents are mainly related to the cash pool and in-house bank
operated by the company. At December 31, 2021, the cash pool and in-house bank arrangement
Balance January 1, 2020
1,662,442
47,500
1,709,942
resulted in a liability which is recorded in amounts due to subsidiaries.
The amount presented as cash and cash equivalents at December 31, 2021 include bank deposits
and investments in money market funds that invest in marketable debt obligations and securities
of governments, corporates and financial institutions. The amount invested in deposits and money
market funds at the end of 2021 was €83 million and interest-bearing bank accounts of €7 million.
Our cash and cash equivalents are predominantly denominated in US dollars and partly in euros.
Bank guarantees exist for an amount of €1.0 million at December 31, 2021. These guarantees
mainly relate to lease and tax payments.
Cash and cash equivalents have insignificant interest-rate risk and remaining maturities of maximum
three months or can be converted into cash without no more than 30 days’ notice. Except for an
amount of €4.4 million, there are no restrictions on usage of cash and cash equivalents. The carrying
amount of these financial assets approximates their fair value. The company has not recognized
a provision for expected credit loss for cash and cash equivalents due to the insignificance of
the amount.
Net result of subsidiaries and associates
Other comprehensive income investments
Dividend received
Repayment of loans
Dilution
Foreign currency translation effect
281,863
(1,922)
(16,961)
–
2,059
(96,035)
Balance December 31, 2020
1,831,446
Net result of subsidiaries and associates
Other comprehensive income investments
Dividend received
Repayment of loans
Dilution
Foreign currency translation effect
536,493
12,015
(38,140)
–
3,205
88,937
Balance December 31, 2021
2,433,956
Loans due from subsidiaries – non-current portion
Loans due from subsidiaries – current portion
Total
–
–
–
(2,071)
–
(3,669)
41,760
–
–
–
(2,272)
–
3,210
42,698
281,863
(1,922)
(16,961)
(2,071)
2,059
(99,704)
1,873,206
536,493
12,015
(38,140)
(2,272)
3,205
92,147
2,476,654
December 31,
2020
39,689
2,071
41,760
2021
40,518
2,180
42,698
The interest on the loans due from subsidiaries is based on the Bank of America’s prime rate plus
two percent points. The repayment schedule of the loan is as follows: 24 annual installments of
US$2 million, started December 31, 2018, followed by a final installment of US$5.3 million on
December 31, 2043.
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
169
Capital in excess of
par value
Treasury
shares
Accumulated
net earnings
Legal reserves
Translation
reserve
126,940
Other legal
reserves
932,105
NOTE 5. EQUITY
The changes in equity are as follows:
(EUR thousand)
Balance as of January 1, 2020
Appropriation of net earnings:
Components of comprehensive income
Net earnings
Other comprehensive income
Total comprehensive income (loss)
Dividend paid to common shareholders
Compensation expense share-based payments
Exercise stock options out of treasury shares
Vesting restricted shares out of treasury shares
Purchase of common shares
Common
shares
2,052
–
–
–
–
–
–
–
–
–
Cancellation of common shares out of treasury shares
(60)
Change in retained earnings subsidiaries
Fair value accounting investments
Capitalized development expenses subsidiaries
Other movements in investments in associates:
Dilution
–
–
–
–
43,676
(169,707)
–
–
–
–
–
12,792
(5,923)
(16,043)
–
–
–
–
–
–
–
–
–
–
–
–
8,697
16,043
(67,505)
107,510
–
–
–
–
Balance as of December 31, 2020
1,992
34,502
(104,962)
Appropriation of net earnings
Components of comprehensive income:
Net earnings
Other comprehensive income
Total comprehensive income (loss)
Dividend paid to common shareholders
Compensation expense share-based payments
Exercise stock options out of treasury shares
Vesting restricted shares out of treasury shares
Purchase of common shares
–
–
–
–
–
–
–
–
–
Cancellation of common shares out of treasury shares
(20)
Change in retained earnings subsidiaries
Fair value accounting investments
Capitalized development expenses subsidiaries
Other movements in investments in associates:
Dilution
–
–
–
–
–
–
–
–
–
17,242
(7,344)
(19,119)
–
–
–
–
–
–
–
–
–
–
–
–
11,974
19,119
(139,150)
57,622
–
–
–
–
Balance as of December 31, 2021
1,972
25,281
(155,397)
554,572
329,013
–
–
–
(98,688)
–
–
–
–
(107,450)
(2,733)
47,772
(21,844)
2,059
702,701
285,396
–
–
–
(96,893)
–
–
–
–
(57,602)
(61,998)
(17,728)
(63,336)
3,205
693,745
Net earnings
current year
329,013
(329,013)
285,396
–
285,396
–
–
–
–
–
–
–
–
–
–
–
–
(100,755)
(100,755)
–
–
–
–
–
–
–
–
–
–
Total equity
1,818,651
–
285,396
(100,755)
184,641
(98,688)
12,792
2,774
–
(67,505)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,733
(47,772)
21,844
–
2,059
285,396
26,185
908,910
1,854,724
(285,396)
494,709
–
494,709
–
–
103,287
103,287
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
61,998
17,728
63,336
–
494,709
103,287
597,996
(96,893)
17,242
4,630
–
(139,150)
–
–
–
–
–
3,205
494,709
129,472
1,051,972
2,241,754
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
170
COMMON SHARES, PREFERRED AND FINANCING PREFERRED SHARES
Following the amendment of the articles of association on August 3, 2018, the authorized capital of
the company amounts to 82,500,000 common shares of €0.04 par value, 88,500 preferred shares
of €40 par value, and 6,000 financing preferred shares of €40 par value.
Changes in other legal reserves in 2020 and 2021 were as follows:
The AGM of May 17, 2021, approved the cancellation of 500,000 treasury shares. This became
Balance as of January 1, 2020
effective as per July 21, 2021.
As per December 31, 2021, 49,297,394 common shares with a nominal value of €0.04 each were
issued and fully paid up, of which 728,717 common shares are held by us in treasury. All shares
have one vote per €0.04 par value. Treasury shares held by the company cannot be voted on. Of
Retained earnings subsidiaries and investments
Fair value accounting investments
Development expenditures
Balance as of December 31, 2020
our 48,568,677 outstanding common shares at December 31, 2021, 48,282,085 are registered with
Retained earnings subsidiaries and investments
our transfer agent in the Netherlands, ABN AMRO Bank N.V., and 286,592 are registered with our
Fair value accounting investments
transfer agent in the United States, Citibank, NA, New York.
Development expenditures
Balance as of December 31, 2021
As at December 31, 2021, no preferred shares and no financing preferred shares are issued.
Reserve for
participating
interests,
regarding
retained
earnings
749,609
2,733
(47,772)
–
704,570
61,998
17,728
–
784,296
Reserve for
participating
interests, regarding
capitalized
development
expenses
Other legal
reserves
182,496
932,105
–
–
21,844
2,733
(47,772)
21,844
204,340
908,910
–
–
63,336
61,998
17,728
63,336
267,676
1,051,972
For more detailed information, reference is made to Note 12 to the consolidated financial
TREASURY SHARES
With respect to treasury shares, reference is made to Note 12 to the consolidated financial
statements.
statements.
OTHER LEGAL RESERVES
The other legal reserve for participating interests regarding retained earnings, which amounts to
EMPLOYEE STOCK PLAN, OPTION PLAN AND EMPLOYEE RESTRICTED
SHARES PLAN
The company has adopted various stock option plans and restricted share plans, and has entered
into related agreements with various employees. For detailed information, reference is made to Note
€784,296 (2020: €704,570), pertains to participating interests that are accounted for according
13 to the consolidated financial statements.
to the equity accounting method. The reserve represents the difference between the participating
interest retained earnings and direct changes in equity, as determined on the basis of the company’s
accounting policies, and the share thereof that the company may distribute. As to the latter share,
APPROPRIATION OF RESULT
It is proposed that net earnings for the year 2021 are carried to the accumulated net earnings.
this takes into account any profits that may not be distributed by participating interests that are
Dutch limited companies based on the distribution tests to be performed by the management of
those companies. The legal reserve is determined on an individual basis.
NOTE 6. AMOUNTS DUE FROM / TO SUBSIDIARIES
The amounts due from subsidiaries are mainly related to the settlement of the income tax of the
Dutch fiscal unity.
In accordance with applicable legal provisions, a legal reserve for the carrying amount of €267,676
(2020: €204,340) has been recognized for capitalized development costs.
The amounts due to subsidiaries are mainly related to the cash pool and in-house bank operated
by the company. The amounts due to subsidiaries increased as a result of cash generated by
higher activities.
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NOTE 7. INCOME TAX RECEIVABLE / PAYABLE
The income tax payable or receivable reflects the amount due or owed by the Dutch fiscal
For information on the parent company’s defined benefit pension plan, the remuneration of
the Management Board and the Supervisory Board, and the parent company’s share-based
unity regarding the preliminary tax assessments and payments for the years 2020 and 2021.
compensation plans, see Notes 13 and 25 to the consolidated financial statements.
The company is severally liable for the tax payables of the Dutch fiscal unity. The income tax liability
ultimo 2020 changed to an income tax receivable ultimo 2021 as a result of an overpayment of
NOTE 10. COMMITMENTS AND CONTINGENCIES
With respect to certain Dutch subsidiaries, ASMI has assumed joint and several liability in
accordance with Article 403, Part 9 of Book 2 of the Dutch Civil Code. These Dutch subsidiaries
are disclosed in Note 28 of the consolidated financial statements.
estimated preliminary income tax.
NOTE 8. EXPENSES BY NATURE
Expenses by nature were as follows:
Personnel expenses
Depreciation and amortization
Other personnel-related expenses
Professional fees
Other
Total operating expenses
Year ended December 31,
Dutch subsidiaries for purposes of Dutch tax laws and is as such jointly and severally liable for the
ASMI forms a fiscal unity (tax group for corporate income tax purposes) together with its
2020
11,263
3,736
3,651
8,247
3,585
30,482
2021
12,588
413
2,994
10,039
4,625
30,659
tax debts of the unity. The tax unity consists of ASM International N.V. and the following subsidiaries:
ASM Europe BV;
ASM IP Holding BV;
ASM Pacific Holding BV;
ASM Netherlands Holding BV;
ASM United Kingdom Sales BV; and
ASM Germany Sales BV.
NOTE 9. PERSONNEL EXPENSES
The average number of employees of ASMI during 2021 was 29 (2020: 24). All employees have
corporate and support functions and were based in the Netherlands.
For VAT purposes in the Netherlands, ASMI forms a fiscal unity together with ASM Europe BV and
ASM IP Holding BV.
Salaries
Social security charges
Pension expenses
Share-based payment expenses
Total
Year ended December 31,
2020
7,943
294
666
2,360
11,263
2021
9,097
346
786
2,359
12,588
NOTE 11. SHARE OWNERSHIP OF THE MANAGEMENT BOARD AND
SUPERVISORY BOARD
With respect to share ownership of the Management Board and Supervisory Board, reference is
made to Note 26 to the consolidated financial statements.
NOTE 12. AUDITOR’S FEES AND SERVICES
For information regarding auditor’s fees and services we refer to Note 27 to the consolidated
financial statements.
Further information concerning the number of employees can be found in Note 23 to the
consolidated financial statements.
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NOTE 13. SUBSEQUENT EVENTS
Subsequent events were evaluated up to March 3, 2022, which is the issuance date of this
Annual Report 2021. There are no subsequent events to report.
SIGNING
Almere, the Netherlands
March 3, 2022
SUPERVISORY BOARD
M.C.J. van Pernis
S. Kahle-Galonske
D.R. Lamouche
M.J.C. de Jong
P.F.M. van der Meer Mohr
A.T. Sanchez
M. de Virgiliis
MANAGEMENT BOARD
G.L. Loh
P.A.H. Verhagen
Independent auditor’s report
Independent auditor’s report
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INDEPENDENT AUDITOR’S REPORT
To: the General Meeting of Shareholders and the Supervisory Board of ASM International N.V.
The company financial statements comprise:
Report on the audit of the financial statements 2021 included
in the annual report
Our opinion
In our opinion:
1. the company balance sheet as December 31, 2021;
2. the company statement of profit or loss for 2021; and
3. the notes comprising a summary of the accounting policies and other explanatory information.
Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing.
-
the accompanying consolidated financial statements give a true and fair view of the financial
Our responsibilities under those standards are further described in the ‘Our responsibilities for the
position of ASM International N.V. as at December 31, 2021 and of its result and its cash flows for
Audit of the Financial statements’ section of our report.
the year then ended, in accordance with International Financial Reporting Standards as adopted
by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code.
We are independent of ASM International N.V. in accordance with the ‘Verordening inzake de
-
the accompanying company financial statements give a true and fair view of the financial position
onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO, Code of Ethics for Professional
of ASM International N.V. as at December 31, 2021 and of its result for the year then ended in
Accountants, a regulation with respect to independence) and other relevant independence
accordance with Part 9 of Book 2 of the Dutch Civil Code.
regulations in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en
What we have audited
We have audited the financial statements 2021 of ASM International N.V. (the Company) based in
Our audit procedures were determined in the context of our audit of the financial statements as
Almere. The financial statements include the consolidated financial statements and the company
a whole. Our observations in respect of going concern, fraud and non-compliance with laws and
financial statements.
regulations, climate and the key audit matters should be viewed in that context and not as separate
beroepsregels accountants’ (VGBA, Dutch Code of Ethics).
The consolidated financial statements comprise:
opinions or conclusions.
1. the consolidated statement of financial position as at December 31, 2021;
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for
2. the following consolidated statements for 2021: the statement of profit or loss, the statements of
our opinion.
comprehensive income, changes in equity and cash flows; and
3. the notes comprising a summary of the significant accounting policies and other explanatory
information.
KPMG Accountants N.V., a Dutch limited liability company registered with the trade register in the Netherlands under number 33263683, is a member firm of the global organization of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee.
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Audit approach
Summary
Materiality
Materiality of EUR 25 million
4.2% of result before income taxes
Group audit
Audit coverage of 95% of total assets
Audit coverage of 94% of revenue
Going concern, Fraud/Noclar and Climate
- Going concern: no significant going concern risks identified
We agreed with the Supervisory Board that misstatements identified during our audit in excess of
EUR 1.25 million would be reported to them, as well as smaller misstatements that in our view must
be reported on qualitative grounds.
Scope of the group audit
ASM International N.V. is at the head of a group of components. The financial information of this
group is included in the financial statements of ASM International N.V..
Our group audit mainly focused on significant components where account balances are of
significant size, have significant risks of material misstatement to the group associated with them
or are considered significant for other reasons.
- Fraud & Non-compliance with laws and regulations (Noclar): management override of controls,
revenue recognition and risk of non-compliance with laws and regulations with an indirect effect
We have:
on the financial statements. Our audit procedures did not reveal indications and/or reasonable
suspicion of fraud and non-compliance that are considered material for our audit.
- Climate: management’s response to possible future effects of climate change and their
-
selected components for which an audit of the complete reporting package is performed and
components for which an audit of specific items is performed. Furthermore, we have determined
the nature and extent of the audit procedures that we perform at the group level and at the
anticipated outcomes have been disclosed. We have considered the impact of climate-related
company’s Shared Service Center (“SSC”);
risks on our identification and assessment of risks of material misstatement in the financial
statements and have not identified a risk of material misstatement.
Key audit matters
Revenue recognition
Accounting for capitalized development costs
Opinion
Unqualified
- performed procedures that cover the significant operations in Singapore, the United States of
America, Japan, Korea and the Netherlands, all mainly through our audit procedures at the SSC,
supplemented with local audits by KPMG member firms of specific items. In addition, we have
made use of the work of non-KPMG member firm auditors of ASM Pacific Technology Ltd.
(“ASMPT”) as part of our procedures that cover the (results from) investments in associates.
The remaining balances are covered by additional procedures at group level;
-
sent detailed instructions to all component auditors, including the significant areas that should be
covered (which included the relevant risks of material misstatement detailed below) and set out
the information required to be reported to the group auditor. We performed file reviews of
components ASMPT (Hong Kong) and ASM Japan KK and held various telephone calls with the
Materiality
Based on our professional judgement we determined the materiality for the financial statements as
auditors of the components, to discuss the group audit, significant risks, audit approach and
instructions, as well as the audit findings and observations reported to the group auditor.
a whole at EUR 25 million (2020: EUR 15 million). The materiality is determined with reference to
result before income taxes (4.2%). We consider result before income taxes as the most appropriate
In view of restrictions on the movement of people across borders, and also within significantly
benchmark because the company is a profit oriented company and the key users of the financial
affected countries, we considered changes to the planned audit approach to evaluate the
statements are primarily focused on result before income taxes. We have also taken into account
component auditors’ communications and the adequacy of their work. We have requested
misstatements and/or possible misstatements that in our opinion are material for the users of the
component auditors to provide us with access to audit workpapers to perform these evaluations,
financial statements for qualitative reasons.
subject to local law and regulations. In addition, due to the inability to arrange in-person meetings
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with such component auditors, we have increased the use of alternative methods of communication
- we analyzed the company’s financial position as at year-end and compared it to the previous
with them, including through written instructions, exchange of emails and virtual meetings.
financial year in terms of indicators that could identify significant going concern risks, taking into
account developments in the business sector and any information of which we are aware as
For the residual population not in scope we performed analytical procedures in order to corroborate
a result of our audit.
that our scoping remained appropriate throughout the audit.
By performing the procedures mentioned above at group components, together with additional
procedures on management’s going concern assessment.
The outcome of our risk assessment procedures did not give reason to perform additional audit
procedures at group level, we have been able to obtain sufficient and appropriate audit evidence
about the group’s financial information to provide an opinion about the financial statements.
The audit coverage as stated in the section ‘Summary’ can be further specified as follows:
Total assets
83%
Audit of the complete
reporting package
12%
Audit of specific items
5%
Covered by additional
procedures at group level
Revenue
87%
Audit of the complete
reporting package
7%
Audit of specific items
6%
Covered by additional
procedures at group level
Audit response to going concern – no significant going concern
risks identified
The Management Board has performed its going concern assessment and has not identified
Audit response to the risk of fraud and non-compliance with laws
and regulations
In the ‘Risk management’ section of the annual report, the Management Board describes its
procedures in respect of the risk of fraud and non-compliance with laws and regulations.
As part of our audit, we have gained insights into the Company and its business environment, and
assessed the design and implementation of the Company’s risk management in relation to fraud and
non-compliance with laws and regulations. Our procedures included, among other things, assessing
the Company’s code of conduct, whistleblowing procedures, incidents register and its procedures
to investigate indications of possible fraud and non-compliance. Furthermore, we performed
relevant inquiries with management, those charged with governance and other relevant functions,
such as Internal Audit and Legal Counsel. As part of our audit procedures, we furthermore:
- evaluated the Ethics committee reports on indications of possible fraud and non-compliance;
- evaluated correspondence with supervisory authorities and regulators as well as legal
confirmation letters.
In addition, we performed procedures to obtain an understanding of the legal and regulatory
frameworks that are applicable to the Company and identified the following areas as those could
have a material effect on the financial statements:
- Trade sanctions and export controls laws and regulations (reflecting the company’s exposure to
international trading restrictions); and
- Anti-bribery and corruption laws and regulations (reflecting the company’s significant and
any significant going concern risks. To evaluate the Management Board’s assessment, we have
geographically diverse operations).
performed, inter alia, the following procedures:
- we considered whether the Management Board’s assessment of the going concern risks includes
We, together with our forensics specialists, evaluated the fraud and non-compliance risk factors to
all relevant information of which we are aware as a result of our audit;
consider whether those factors indicate a risk of material misstatement in the financial statements.
- we evaluated whether the Management Board’s assessment of going concern is adequately
disclosed in the financial statements;
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Based on the above and on the auditing standards, we identified the following fraud risks that are
relevant to our audit, including the relevant presumed risks laid down in the auditing standards, and
responded as follows:
Audit response to climate-related risks
The Management Board is responsible for preparing the financial statements in accordance with
the applicable financial reporting framework, including considering whether the implications from
- Management override of controls (a presumed risk)
climate-related risks and commitments have been appropriately accounted for and disclosed.
Risk:
- Management is in a unique position to manipulate accounting records and prepare fraudulent
The Management Board has performed its analysis of the impact of climate-related risks on the
financial statements by overriding controls that otherwise appear to be operating effectively.
company’s business and operations going forward and on its accounting in the current financial
Responses:
statements. In the climate adaptation chapter of the annual report, the company concluded that the
- We evaluated the design and the implementation of internal controls that mitigate fraud risks,
effect of climate-related risks do not have a material impact on accounts and disclosures, including
such as processes related to journal entries.
judgements and estimates in the financial statements.
- We performed a data analysis of high-risk journal entries and investigated journal entries
debiting revenue with an unexpected associated credit, and evaluated key estimates and
The evaluation of the effectiveness of management’s strategy against internal or external goals set
judgments for bias by the Company’s management. Where we identified instances of
is not in scope of our audit of the financial statements. As part of our audit we consider potential
unexpected journal entries or other risks through our data analytics, we performed additional
effects of climate-related risks on the accounts and disclosures, including estimates and judgements
audit procedures to address each identified risk, including testing of transactions back to
in the current year’s financial statements to determine whether the financial statements are free from
source information.
material misstatements. This includes discussion of the company’s strategy in relation to climate
- We incorporated elements of unpredictability in our audit by among others, 1) implementing
change with management and those charged with governance and inspecting minutes and external
a data analytics approach to test cost of goods sold focusing on outliers and non-routine
communications for significant climate related commitments, strategies and plans made by the
transactions 2) modifying the timing and extent of audit procedures on sales cut-off
management board.
3) modifying the extent of fraud inquiries with individuals involved in the financial reporting
process about inappropriate or unusual activity relating to journal entries and other
Our risk assessment procedures did not identify risks of material misstatement in accounts and
disclosures especially with respect to critical judgements and estimates, in the financial statements.
adjustments.
- Revenue recognition (a presumed risk)
Risk:
- We identified a cut-off risk in relation to completeness of equipment sales as a result of
recognition in the incorrect period. This risk inherently includes the fraud risk that management
deliberately understates revenue, as management may feel pressure to achieve planned
results (risk of fraud).
Responses:
- We refer to key audit matter ‘Revenue recognition’.
We communicated our risk assessment, audit responses and results to management and the
Audit Committee of the Supervisory Board. Our audit procedures did not reveal indications and/or
reasonable suspicion of fraud and non-compliance that are considered material for our audit.
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Our key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
population of journal entries from the local ERP system with the involvement of our IT auditors
and verifying the appropriateness of the identified high risk journal entries through verification with
our audit of the financial statements. We have communicated the key audit matters to the Supervisory
supporting documentation; and
Board. The key audit matters are not a comprehensive reflection of all matters discussed.
- assessing the adequacy of the revenue disclosures included in note 1 and note 21 of the financial
Revenue recognition
statements.
Description
As disclosed in note 1 to the consolidated financial statements, equipment sales are measured
Our observation
The results of our procedures related to the revenue recognition of equipment sales are satisfactory.
taking into account multiple element arrangements as contracts with customers typically include
We consider the disclosure in note 1 and note 21 of the financial statements as adequate.
separately identifiable performance obligations that are recognized based on their relative selling
price. Typically, this includes a single sales transaction that combines the delivery of goods and
rendering of (installation) services. Furthermore, equipment sales is recognized when the customer
obtains control of the products and services, often coinciding with shipment or delivery of goods.
We identified a cut-off risk that equipment sales could be misstated as a result of recognition
in the incorrect period. This risk inherently includes the fraud risk that management deliberately
understates revenue, as management may feel pressure to achieve planned results (risk of fraud).
We consider revenue recognition a key audit matter, due to the thereto related risk of management
override of controls, as well as the fraud risk concerning the completeness of equipment sales in
the cut-off period of the financial year.
Our response
Our audit procedures to address this key audit matter included, among others:
Accounting for capitalized development costs
Description
Capitalized development costs are deemed to be significant to our audit, given the significance of
the capitalized balance of EUR 268 million including additions of EUR 82 million in 2021, as well
as the specific criteria that have to be met for capitalization. This involves management judgment
on capitalized development costs not in use including the additions for the year, with respect to
technical feasibility, intention and ability to complete the intangible asset, the ability to use or sell the
asset, the generation of future economic benefits and the ability to measure the costs reliably.
Our response
Our audit approach includes the following procedures over capitalized development costs:
- assessing the appropriateness of the company’s accounting policies relating to internal and
- assessing the appropriateness of the company’s accounting policies relating to revenue
external cost capitalization and assess compliance with IFRS;
recognition and assessing compliance with IFRS 15;
- evaluating the design and implementation of the company’s internal control in the sales process
that would identify a misstatement as a result of revenue recognition in the incorrect
accounting period;
- assessing the completeness of sales by selecting samples during the cut-off period, with specific
focus on the equipment sales recorded from January 1, 2022 through February 7, 2022, to agree
- evaluating the design and implementation of the company’s internal control in the R&D process
that would identify a misstatement as an incorrect capitalization of development expense;
- challenging the key assumptions used, or judgments made, in capitalizing development costs,
such as the technical feasibility, intention and ability to complete the intangible asset, the ability to
use or sell the asset and generation of future economic benefits, the accuracy of costs included
and the useful economic life attributed to the asset based on development plans, pre-orders and
the timing of revenue recognition to underlying supporting documents such as shipping
customer communications; and
documents;
- assessing the adequacy of the Other intangible assets disclosures included in note 5 of the
-
inquiring with management / those who have responsibilities for initiating, preparing or authorizing
financial statements.
journal entries at period end whether there was inappropriate or unusual activity relating to the
processing of journal entries and other adjustments during the period, identifying high-risk journal
entries (such as journal entries debiting revenue with an unexpected associated credit) from the
Our observation
The results of our procedures related to the accounting for capitalized development costs are
satisfactory. We consider the disclosure in note 5 of the financial statements as adequate.
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Report on the other information included in the annual report
In addition to the financial statements and our auditor’s report thereon, the annual report contains
other information.
Report on other legal and regulatory requirements and ESEF
Engagement
We were engaged by the Annual General Meeting of Shareholders as auditor of ASM International
N.V. on May 21, 2014, as of the audit for the year 2015 and have operated as statutory auditor ever
Based on the following procedures performed, we conclude that the other information:
since that financial year.
-
is consistent with the financial statements and does not contain material misstatements; and
- contains the information as required by Part 9 of Book 2 of the Dutch Civil Code for the
management report and other information.
We have read the other information. Based on our knowledge and understanding obtained through
our audit of the financial statements or otherwise, we have considered whether the other information
contains material misstatements.
No prohibited non-audit services
We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation
on specific requirements regarding statutory audits of public-interest entities.
European Single Electronic Format (ESEF)
ASM International N.V. has prepared its annual report in ESEF. The requirements for this format are
set out in the Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch
standards on the specification of a single electronic reporting format (these requirements are
Civil Code and the Dutch Standard 720. The scope of the procedures performed is less than the
hereinafter referred to as: the RTS on ESEF).
scope of those performed in our audit of the financial statements.
The Management Board of the company is responsible for the preparation of the other information,
consolidated financial statements as included in the reporting package by ASM International N.V.,
including the information as required by Part 9 of Book 2 of the Dutch Civil Code.
has been prepared in all material respects in accordance with the RTS on ESEF.
In our opinion, the annual report prepared in the XHTML format, including the partially tagged
The Management Board is responsible for preparing the annual report including the financial
statements in accordance with the RTS on ESEF, whereby management combines the various
components into a single reporting package. Our responsibility is to obtain reasonable assurance
for our opinion whether the annual report in this reporting package, is in accordance with the RTS
on ESEF.
Our procedures taking into consideration Alert 43 of NBA (the Netherlands Institute of Chartered
Accountants), included amongst others:
- obtaining an understanding of the entity’s financial reporting process, including the preparation of
the reporting package;
- obtaining the reporting package and performing validations to determine whether the reporting
package containing the Inline XBRL instance document and the XBRL extension taxonomy files
have been prepared in accordance with the technical specifications as included in the RTS on ESEF;
- examining the information related to the consolidated financial statements in the reporting
package to determine whether all required taggings have been applied and whether these are
in accordance with the RTS on ESEF.
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Description of responsibilities regarding the financial statements
Responsibilities of the Management Board and the Supervisory Board of
the company for the financial statements
The Management Board is responsible for the preparation and fair presentation of the financial
Our responsibilities for the audit of the financial statements
Our objective is to plan and perform the audit engagement in a manner that allows us to obtain
sufficient and appropriate audit evidence for our opinion.
statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore,
Our audit has been performed with a high, but not absolute, level of assurance, which means we
the Management Board is responsible for such internal control as management determines
may not detect all material errors and fraud during our audit.
is necessary to enable the preparation of the financial statements that are free from material
misstatement, whether due to fraud or error. In that respect the Management Board, under
Misstatements can arise from fraud or error and are considered material if, individually or in the
supervision of the Supervisory Board of the company, is responsible for the prevention and
aggregate, they could reasonably be expected to influence the economic decisions of users taken
detection of fraud and non-compliance with laws and regulations, including determining measures
on the basis of these financial statements. The materiality affects the nature, timing and extent of our
to resolve the consequences of it and to prevent recurrence.
audit procedures and the evaluation of the effect of identified misstatements on our opinion.
As part of the preparation of the financial statements, the Management Board is responsible for
A further description of our responsibilities for the audit of the financial statements is located at
assessing the company’s ability to continue as a going concern. Based on the financial reporting
the website of de ‘Koninklijke Nederlandse Beroepsorganisatie van Accountants’ (NBA, Royal
frameworks mentioned, the Management Board should prepare the financial statements using
Netherlands Institute of Chartered Accountants) at http://www.nba.nl/ENG_oob_01. This description
the going concern basis of accounting unless the Management Board either intends to liquidate
forms part of our auditor’s report.
the company or to cease operations, or has no realistic alternative but to do so. The Management
Board should disclose events and circumstances that may cast significant doubt on the company’s
Amstelveen, March 3, 2022
ability to continue as a going concern in the financial statements.
KPMG Accountants N.V.
The Supervisory Board of the company is responsible for overseeing the company’s financial
F.A.M. Croiset van Uchelen RA
reporting process.
Partner
NON-FINANCIAL SUMMARY
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NON-FINANCIAL SUMMARY
Non-financial performance data
Assurance report of the independent auditor
181
184
Our new state-of-the art facility
Woodlands Height Singapore
At ASMI, sustainability is about
understanding our impact and
increasing our value as an integral
part of our business strategy.
We engage with stakeholders to
assess and understand our impact
on society. Aligning our strategy
and sustainability focus with their
priorities, we strive to maximize
long-term value creation.
In 2021, we accelerated our focus on
sustainability and defined the following focus
areas: innovation; people; planet; responsible
supply chain, and governance.
Our commitment to help fight climate change
and care for our planet means we take steps to
reduce greenhouse gas emissions, use water
and other resources responsibly, and limit waste
production. Reducing our environmental footprint
goes hand in hand with steps towards a circular
business model.
Non-financial performance data
Non-financial performance data
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NON-FINANCIAL PERFORMANCE DATA
CATEGORIES
EMPLOYEES
INDICATORS
Employees
DIVERSITY &
INCLUSION
OTHER
SEGMENTATION
Employees including temp
New hires
Employees
Supervisory Board
Management Board
Gender pay ratio
CEO pay ratio
Nationalities
Workforce split
Foreign nationals workforce split
Employees in R&D
Employees covered by collective bargaining
(only NL)
Percent of worker under collective
bargaining
Voluntary attrition rate
Total attrition rate
% performance management completion
Units or definition
Number
Number
Number
Male (% globally)
Female (% globally)
% Female / % Male
% Female / % Male
Female-Male (total)
Number
Asia
US
Europe
Asia
US
Europe
Percent
Number
Percent
Percent
Percent
Percent
2017
1,900
2,043
487
85%
15%
20 / 80%
0 / 100%
n.a.
25
29
54%
29%
17%
65%
24%
11%
26%
141
2018
2,181
2,327
659
85%
15%
2019
2,337
2,444
407
85%
15%
2020
2,583
2,689
515
85%
15%
2021
Reference
3,312
People
3,462
1,146
85% People
15% People
20 / 80%
0 / 100%
101%
20 / 80%
0 / 100%
100%
27
29
58%
26%
16%
65%
25%
10%
25%
149
31
29
58%
27%
15%
60%
30%
10%
26%
143
33 / 67%
0 / 100%
43 / 57% Supervisory Board
0 / 100% Management Board
99%
27
40
58%
28%
14%
59%
29%
12%
24%
142
Remuneration report
People
95%
29
47
63%
25%
12%
66% (SASB)
23% (SASB)
11% (SASB)
20%
157
Note 13 of consolidated
statements
11.8%
9.1%
10.8%
11.7%
7.7%
10.4%
13.9%
87.1%
9.9%
13.9%
92.6%
8.7%
10.7%
98.0%
8.3%
10.8%
98.8%
11.1% People
12.5%
99.7%
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CATEGORIES
INDICATORS
HEALTH AND SAFETY
Injury rate
Recordable injury rate
Number of recordable injuries
Lost time injury rate (LTIR)
Fatality rate
Efforts to assess, monitor,
reduce exposures
Units or definition
per 100 employees
per 100 employees
Number
Asia
Europe
US
per 100 employees
per 100 employees
2017
0.62
0.26
5
1
2
2
0.21
0
2018
0.55
0.18
4
1
1
2
0.05
0
2019
0.42
0.17
4
2
1
1
0.13
0
2020
0.58
0.23
6
3
0
3
0.16
0
2021
Reference
0.50
0.26
People
People
8
2
2
4
0.17
0
Qualitative
*See ‘Health & safety’, ‘People’ section
(SASB)
TRAINING
Ethics training (bi-annual)
Ethics training
All employees
New hire employees
Technical training hours of ASMI employees
Hours annually
99.8%
99.7%
17,784
99.9%
100.0%
37,836
100.0%
100.0%
48,075
100.0%
99.2%
28,624
97.2%
97.6%
46,727
ENVIRONMENTAL
Electrical consumption
kWh
33,088,557
35,878,759
43,401,473
44,915,401
54,998,421
(SASB)
Grid electricity
Renewable EACs purchased
Renewable electricity
Scope 1 and 2 (market-based) GHG
emissions 1
Gross global Scope 1 GHG emissions
Gross global Scope 2 (location-based)
GHG emissions
Gross global Scope 2 (market-based)
GHG emissions 1
Scope 1 and 2 (market-based) GHG
per revenue (emission intensity) 1
Scope 1 and 2 (market-based) GHG
per R&D spend (emission intensity) 1
Percent from grid
MWh (or EAC units)
Percent from renewable
sources
mtCO2e
mtCO2e
mtCO2e
mtCO2e
mtCO2e/million EUR
mtCO2e/million EUR
Water withdrawn absolute
m3
Water withdrawn from water-stressed
regions
Percent from high or
extremely high
water-stressed regions
Water intake per revenue (water intensity)
m3/million EUR
Water intake per R&D spend
(water intensity)
m3/million EUR
100%
n.a.
10.8%
100%
n.a.
10.7%
100%
n.a.
9.2%
100%
366
9.9%
100% (SASB)
41,563
75.6% (SASB)
18,083.2
19,562.0
24,031.9
24,976.9
8,347.0
419.2
508.4
920.8
987.0
941.8
(SASB)
17,664.0
19,053.6
23,111.1
23,989.9
24,666.5
17,664.0
19,053.6
23,111.1
23,989.9
7,405.2
25.0
23.9
18.7
18.8
4.8
Planet
158.5
156.1
159.5
145.4
40.5
Planet
177,913
81.4%
129,243
72.8%
122,505
52.8%
121,434
50.4%
156,123
Planet (SASB)
47.6% (SASB)
241
1,559
158
1,031
95
813
91
707
90
758
Planet
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CATEGORIES
INDICATORS
Units or definition
ENVIRONMENTAL
(continuED)
Significant chemicals spills or releases to
the environment
Number
Non-hazardous solid waste recycle
Non-hazardous solid waste landfill
metric tons
metric tons
Non-hazardous reuse - ASMI diversion
metric tons
Landfill diversion rate (ASMI operations) 2
Landfill diversion
(all product packaging reuse) 3
Reported confidential concerns
via SpeakUp!
Reported concerns from other channels
Confirmed cases of non-conformity to
our Code of Business Conduct
RBA self-assessment rating
% solid waste recycle or
reuse
metric tons (through all
reuse sectors)
Number
Number
Number
RBA rating (corporate + all
applicable facilities)
ETHICS COMPLIANCE
RBA RISK
ASSESSMENT
SUPPLY CHAIN
Supplier spend by region
Asia percent
North America percent
Europe percent
SUPPLY CHAIN
(CRITICAL,
STRATEGIC
SUPPLIERS)
RBA Code of Conduct acknowledgement
Percentage
RBA self-assessment questionnaire (SAQ)
with low/medium risk
Percentage
2017
0
668
198
92
79%
92
1
5
3
Low
74%
20%
6%
85%
78%
2018
0
789
255
95
78%
95
1
4
2
Low
71%
22%
7%
100%
100%
2019
0
664
166
114
82%
139
5
2
3
Low
75%
20%
5%
100%
40%
2020
0
714
156
122
84%
163
5
4
2
Low
75%
21%
4%
100%
77%
2021
Reference
0
Planet
1,403
Planet
335
158
Planet
Planet
82% Planet (SASB)
259
Planet
Business ethics
Business ethics
Business ethics
4
4
1
Low
77% Global operations
18%
5%
99% Global operations
84% Global operations
MATERIAL SOURCING
Description of the management of risks
associated with the use of critical materials
Qualitative
See Conflict minerals discussion in the ‘Supply chain’ section
(SASB)
INTELLECTUAL
PROPERTY
Critical/strategic suppliers conflict minerals
CMRT received
Percentage
Patents in force
Number
Intellectual property protection &
competitive behavior
Monetary losses as a result
of legal proceedings
associated with anti-com-
petitive behavior regulations
90%
1,604
0
81%
100%
100%
100%
1,692
0
1,959
0
2,094
0
2,250
Innovation and products
0
(SASB)
1 For 2017-2020, ASMI did not procure market-based renewable electricity. For those years the data included in the table represent location-based sourcing.
2 ASMI manufacturing generates negligible hazardous waste and we do not manufacture chips/wafers. Our manufacturing waste is predominantly non-hazardous solid waste, thus solid waste is our waste-management indicator.
3 For 2020, we reported 41 metric tons of combined packaging waste. This only represented the customer shipping-container reuse, which is just one of the sectors where we reuse packaging. This year, we are reporting all the sectors where packaging is reused.
Assurance report of the independent auditor
Assurance report of the independent auditor
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ASSURANCE REPORT OF THE INDEPENDENT AUDITOR
To: General Meeting of Shareholders and the Supervisory Board of ASM International N.V.
Our conclusion
We have reviewed the non-financial indicators in the Annual Report 2021 (hereafter:
Basis for our conclusion
We performed our review in accordance with Dutch law, including Dutch Standard 3000A
’Assurance-opdrachten anders dan opdrachten tot controle of beoordeling van historische
financiële informatie (attest-opdrachten)’ (assurance engagements other than audits or reviews
the Annual Report) for the year 2021 of ASM International N.V. (hereafter: the Company).
of historical financial information (attestation engagements)). This engagement is aimed to obtain
A review is aimed at obtaining a limited level of assurance.
limited assurance.
Based on the procedures performed nothing has come to our attention that causes us to believe
Our responsibilities in this regard are further described in the ‘Auditor’s responsibilities’ section of
that the non-financial indicators are not prepared, in all material respects, in accordance with the
our report.
reporting criteria as described in the ‘Reporting criteria’ section of our report.
We are independent of ASM International N.V. in accordance with the ‘Verordening inzake de
The non-financial indicators in scope consist of the following:
onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO, Code of Ethics for Professional
- Diversity & Inclusion: Gender pay ratio, CEO pay ratio, Voluntary attrition rate and Involuntary
Accountants, a regulation with respect to independence). Furthermore, we have complied with
attrition rate;
the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).
- Health & Safety: Injury rate, Recordable injury rate, Number of recordable injuries, Lost time injury
rate (LTIR) and Fatality rate;
We believe the assurance evidence we have obtained is sufficient and appropriate to provide a basis
- Ethics compliance: Reported Confidential Concerns via SpeakUp! and Reported Concerns from
for our conclusion.
other channels;
- Training: Ethics training;
- Environmental: Renewable EACs purchased, Scope 1 and 2 (market-based) GHG emissions,
Reporting Criteria
The non-financial indicators need to be read and understood together with the reporting criteria.
Gross global Scope 2 (location based) GHG emissions, Gross global Scope 2 (market-based)
The Company is solely responsible for selecting and applying these reporting criteria, taking into
GHG emissions, Water Withdrawn Absolute, Non-Hazardous solid waste recycle, Non-Hazardous
account applicable law and regulations related to reporting.
solid waste landfill, Non-Hazardous reuse ASM Diversion, and Landfill Diversion Rate;
- Supply Chain: RBA Self-Assessment (SAQ) with Low/Medium Risk;
The reporting criteria used for the preparation of the non-financial indicators are the internal
- Material Sourcing: Critical/Strategic Suppliers Conflict Minerals CMRT received.
reporting criteria of the Company as disclosed in the section ‘Value creation’ of the Annual Report.
The non-financial indicators are disclosed in the ‘Non-financial performance data’ section of
the Annual Report (pages 181-183).
KPMG Accountants N.V., a Dutch limited liability company registered with the trade register in the Netherlands under number 33263683, is a member firm of the global organization of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee.
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Materiality
Based on our professional judgement we determined materiality levels for each non-financial
indicator. When evaluating our materiality levels, we have taken into account quantitative and
Responsibilities of the Management Board and Supervisory Board for
the non-financial indicators
The Management Board is responsible for the preparation of the non-financial indicators in
qualitative considerations as well as the relevance of information for both stakeholders and
accordance with the applicable criteria as described in the ‘Reporting criteria’ section of our report.
the Company.
We agreed with the supervisory board that misstatements which are identified during the review
is necessary to enable the preparation of the non-financial indicators that is free from material
and which in our view must be reported on quantitative or qualitative grounds, would be reported
misstatement, whether due to fraud or error.
Furthermore, the Management Board are responsible for such internal control as it determines
to them.
The Supervisory Board is, amongst other things, responsible for overseeing the Company’s
Scope of the group review
ASM International N.V. is the parent company of a group of entities. The non-financial indicators
reporting process.
incorporate the consolidated information of the full group.
Auditor’s responsibilities
Our responsibility is to plan and perform our review in a manner that allows us to obtain sufficient
Our group review procedures consisted of both review procedures at corporate (consolidated) level
and appropriate assurance evidence for our conclusion.
and at site level. Our selection of sites in scope of our review procedures is primarily based on the
site’s individual contribution to the consolidated information.
Procedures performed in this context consist primarily of making inquiries with employees of the
entity and determine the plausibility of the information included on the non-financial indicators.
By performing our review procedures at site level, together with additional review procedures at
Therefore, these procedures differ in nature and timing, and extent, compared to a reasonable
corporate level, we have been able to obtain sufficient and appropriate assurance evidence about
assurance engagement.
the group’s Non-financial indicators to provide a conclusion about the non-financial indicators.
Limitations to the scope of our review
The Non-financial information includes prospective information such as ambitions, strategy, plans,
expectations and estimates. Inherently the actual future results are uncertain. We do not provide
The level of assurance obtained in a limited assurance engagement is substantially lower
than the assurance that would have been obtained had a reasonable assurance engagement
been performed.
any assurance on the assumptions and achievability of prospective information in the non-financial
We apply the ‘Nadere Voorschriften Kwaliteitssystemen’ (NVKS, Regulations for Quality
information. References to external sources or websites in the non-financial information are not part
management systems) and accordingly maintain a comprehensive system of quality control
of the non-financial information itself as reviewed by us. Therefore, we do not provide assurance on
including documented policies and procedures regarding compliance with ethical requirements,
this information.
professional standards and applicable legal and regulatory requirements.
We have exercised professional judgement and have maintained professional scepticism
throughout the review, in accordance with the Dutch Standard 3000A, ethical requirements and
independence requirements.
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Our review included among others:
- Performing an analysis of the external environment and obtaining an understanding of relevant
societal themes and issues, and the characteristics of the Company;
- Evaluating the appropriateness of the reporting criteria used, their consistent application and
related disclosures on the non-financial indicators. This includes the evaluation of the results of
stakeholder dialogue and the reasonableness of estimates made by the Management Board;
- Obtaining an understanding of the reporting processes for the non-financial indicators, including
obtaining a general understanding of internal control relevant to our review;
-
Identifying areas of the non-financial indicators with a higher risk of misleading or unbalanced
information or material misstatements, whether due to fraud or error. Designing and performing
assurance procedures aimed at determining the plausibility of the non-financial indicators
responsive to this risk analysis. These procedures included, among others:
-
Interviewing management and relevant staff at corporate level responsible for the strategy,
policy and results;
-
Interviewing relevant staff responsible for providing the information for, carrying out internal
control procedures over and consolidating the data on the non-financial indicators;
- Reviewing, on a limited test basis, relevant internal and external documentation;
- Performing an analytical review of the data and trends.
- Evaluating the consistency of the non-financial indicators with the information in the Annual Report
which is not included in the scope of our review;
- Evaluating the presentation, structure and content of the non-financial indicators.
We have communicated with the Management Board and the Supervisory Board regarding, among
other matters, the planned scope and timing of the review and significant findings that we identify
during our review.
Amstelveen, March 3, 2022
KPMG Accountants N.V.
F.A.M. Croiset van Uchelen RA
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GENERAL INFORMATION
Product description
Other information
Glossary and definitions
Locations worldwide
Safe harbor statement
188
190
192
196
198
Our products include wafer-
processing deposition systems
for ALD, CVD, epitaxy, and batch
diffusion/oxidation systems, and
services and spare parts for
these systems.
This section also included information about
locations and a glossary and definitions.
Product description
Product description
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PRODUCT DESCRIPTION
Our products include wafer-processing deposition systems for ALD, epitaxy, PECVD, and vertical furnace
systems, and services and spare parts for these systems.
PRODUCT APPLICATIONS AND DESCRIPTIONS
Atomic layer deposition (ALD)
ASMI offers ALD tools in two technology segments: thermal ALD and plasma enhanced
DEPOSITION
APPLICATION
ASMI
PRODUCT
PLATFORM
ASMI
PRODUCTS
PROCESS
APPLICATION
ALD (PEALD).
Pulsar XP ALD system
Pulsar XP is a 300mm thermal ALD tool designed for depositing extremely thin high-k dielectric
materials required for advanced transistor gates and other applications. Pulsar is the benchmark
ALD high-k gate dielectric tool for the industry. Up to four Pulsar process modules can be configured
on a Pulsar XP system.
EmerALD XP ALD system
EmerALD XP is a 300mm thermal ALD tool designed for depositing metal gate layers for advanced
high-k metal gate transistors and other applications. Up to four EmerALD process modules can be
configured on an EmerALD XP system.
Eagle XP8 PEALD system
Eagle XP8 is a high-productivity 300mm tool for PEALD applications. The system can be
configured with up to four dual chamber modules (DCM), enabling eight chambers in high-volume
production within a very compact footprint. The system is capable of a broad range of dielectric
PEALD processes, including low-temperature spacers for multiple patterning applications and
low-temperature silicon nitride.
Synergis ALD system
XP 1)
Pulsar XP ALD system
EmerALD XP ALD system
High-k gate dielectric
Metal gate layers
ALD
XP8 1)
Synergis ALD system
PEALD
XP8 1)
Eagle XP8 PEALD system
XP8 QCM PEALD system
PECVD
XP8 1)
Dragon XP8 PECVD system
Metal oxides
Metal nitrides
Metals
Patterning layers
Gate spacers and liners
Gap-fill
Low-k and TEOS oxide
Silicon nitride
Diffusion
Oxidation
LPCVD
ALD
Epitaxy
Vertical
furnace
XP 1)
Epsilon
A412 batch vertical
furnace system
A400 DUO batch vertical
furnace system
Diffusion, oxidation
Polysilicon
Silicon oxide/nitride
Aluminum oxide
Intrepid ES epitaxy
Intrepid ESA epitaxy
Epsilon 2000 single-wafer
epitaxy system
Silicon channel
Source/drain layers
CMOS wafers
Analog/power
Synergis is a high-productivity 300mm tool for thermal ALD applications. The system can be
1 The XP is our standard single-wafer processing platform designed to accommodate multiple process
configured with up to four dual chamber modules (DCM), enabling eight chambers in high-volume
production within a very compact footprint. The system is capable of depositing a broad range of
thermal ALD films including metal oxides, metal nitrides, dielectrics, and pure metals.
application modules with common platform standards. In 2012, ASMI launched the XP8 high-productivity
platform for PECVD and PEALD, based on our common XP platform standard with an expanded
configuration that enables integration of up to eight chambers on one wafer handling platform.
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XP8 QCM PEALD system
Dragon XP8 PECVD system
XP8 QCM is a 300mm tool for high-productivity PEALD applications. XP8 QCM allows for the
DragonXP8 is a high-productivity 300mm tool for PECVD applications. The system can be
integration of up to four modules, each containing four process reactors, enabling 16 chambers
configured with up to four dual chamber modules (DCM), enabling eight chambers in high-volume
in high-volume production within a compact footprint. The system is capable of a broad range of
production within a very compact footprint. Processes include a broad range of dielectric PECVD
dielectric PEALD processes, including silicon oxide gap-fill.
films for applications such as interconnect low-k dielectric layers, passivation layers, etch stop, and
EPITAXY
We offer two families of epitaxy tools: Intrepid and Epsilon.
Intrepid epitaxy system
hardmask layers.
VERTICAL FURNACES
ASMI offers vertical furnaces in a batch configuration where a large number of wafers are processed
at the same time for productivity and cost savings. Our furnace tools are designed with dual-batch
Intrepid ES is a 300mm epitaxy tool using our XP platform, and is designed for depositing critical
reactors for even more productivity. Our furnace tools are capable of running low pressure CVD
transistor source/drain and channel layers. Processes include silicon (Si), silicon-germanium (SiGe),
(LPCVD), as well as diffusion and oxidation applications. Various thermal ALD films can be deposited
silicon-carbon (SiC), and other silicon-based compounds. Up to four Intrepid process modules can
using batch furnaces for high productivity.
be configured on an Intrepid ES system.
A412 Vertical Furnace system
The Previum process module, which can be integrated with epitaxy modules on the Intrepid
The A412 is a 300mm batch vertical furnace capable of both atmospheric and low pressure thermal
platform, is available for 300mm Epi applications that require pre-deposition surface cleaning, which
wafer processing. Atmospheric thermal applications include diffusion and activation of dopants,
improves the performance of deposited films. Previum surface cleaning enables quality epitaxial
annealing to affect material properties by heating to a specific temperature, and oxidation to form
depositions for advanced node channel and source/drain engineering applications.
silicon oxide. LPCVD applications include polysilicon, silicon nitride, and silicon oxide.
Intrepid ESA for 300mm is based on the Intrepid ES system, operating in atmospheric mode for
A400 DUO Vertical Furnace system
analog and power applications, as well as silicon epitaxy for wafer manufacturing.
A400 DUO is a batch vertical furnace for 200mm and smaller wafers, and focuses on applications in
Epsilon epitaxy system
the markets for power, analog, RF, and MEMS devices. The new A400 DUO is compatible with the
original A400, so existing process recipes can be easily transferred, accelerating system acceptance
The Epsilon series is a single-wafer, single-chamber tool that deposits silicon-based materials
for production. Atmospheric thermal applications include diffusion and activation of dopants,
for many applications, ranging from high-temperature silicon for wafer manufacturing, to low-
annealing to affect material properties by heating to a specific temperature, and oxidation to form
temperature silicon for analog and power applications. Epsilon is the market leader for epitaxy
silicon oxide. LPCVD applications include polysilicon, silicon nitride, and silicon oxide.
applications in the analog and power devices market.
PLASMA ENHANCED CHEMICAL VAPOR DEPOSITION (PECVD)
We offer single-wafer plasma enhanced CVD (PECVD) systems for various low-temperature
deposition applications.
Services and spare parts
Services and spare parts are important product offerings for our business. We provide service
support to our customers with technical service personnel that are trained to maintain our systems
at customers’ fabrication plants around the world. Our service teams are located at regional and
local service centers to assure prompt availability.
We sell spare parts for our equipment from parts stocks located at local distribution centers.
Other information
Other information
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OTHER INFORMATION
The additional information below includes a brief summary of the most significant provisions
of our Articles of Association.
INFORMATION ON THE PROVISIONS IN THE ARTICLES OF
ASSOCIATION RELATING TO THE APPROPRIATION OF PROFIT
The Articles of Association of ASM International N.V. (the company) provide the following with regard
SPECIAL STATUTORY CONTROL RIGHTS
Article 27 of the Articles of Association provides that each common share gives the right to cast
one vote, each preferred financing share to cast 1,000 votes, and each preferred share to cast
to distribution of profit and can be summarized as follows:
1,000 votes.
From the profits, distributions shall in the first place, if possible, be made on the preferred shares
equal to the EURIBOR rate for six-months loans, increased by one and a half, on the paid-up
Article 29 of the Articles of Association provides that meetings of holders of preferred shares or
amount which had to be paid on the preferred shares, weighted to the number of days to which
of financing preferred shares shall be convened as often and insofar as a decision of the meeting
this was applicable. If profits are insufficient, the dividend will be paid from the reserves with
of holders of preferred shares or financing shares desires this, and furthermore as often as the
priority over any dividends. If the reserves are insufficient, the dividend deficit has to be made up
Management Board and or the Supervisory Board shall decide to hold such a meeting. At the
in future years;
meeting, resolutions will be passed with an absolute majority of the votes. In the event that there
Second, a dividend, if possible, is distributed on financing preferred shares. The dividend is
a percentage of the par value, plus share premium paid, on the financing preferred shares.
is a tie of votes, no resolution will take effect.
The percentage is determined by the Management Board, subject to approval of the Supervisory
The following resolutions and actions can only be taken on a proposal by the Management Board
Board. The percentage is related to the average effective yield on government loans with a
and the Supervisory Board:
weighted average remaining term of no more than 10 years, if necessary increased or decreased
by no more than 3%, subject to the then prevailing market conditions. If profits are insufficient,
the dividend shall be paid from the reserves. If the reserves are insufficient, the dividend deficit
any amendment to the Articles of the company; and
the dissolution of the company.
has to be made up in future years;
For the complete text, please see our website.
With the approval of the Supervisory Board, the Management Board will determine which part of
the profit remaining after adoption of the provisions of the previous paragraphs will be reserved.
The profit after reserving will be at the disposal of the Annual General Meeting of Shareholders;
STICHTING CONTINUÏTEIT ASM INTERNATIONAL
The objective of Stichting Continuïteit ASM International (Stichting) is to serve the interests of the
The company may only make distributions to the shareholders and other persons entitled to
company. To that objective, Stichting may, amongst others, acquire, own and vote on our preferred
profit insofar as its equity exceeds the amount of the paid-up and called amounts of the share
shares in order to maintain our independence and/or continuity and/or identity.
capital increased with the reserves that must be kept by virtue of law; and
Article 33, paragraph 3 of the Articles of Association provides that dividend claims expire after
The members of the board of Stichting are:
the lapse of five years.
For the full text, please see our website.
Dick Bouma (Chairman); retired chairmen Pels Rijcken & Droogleever Fortuijn;
Rob Ruijter, former Chairman Supervisory Board Delta Lloyd; and
Rinze Veenenga Kingma, President Archeus Consulting BV.
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191
NON-IFRS PERFORMANCE MEASURES
Certain parts of this Annual Report contain non-IFRS financial measures, which are not recognized
measures of financial performance or liquidity under IFRS. These are commonly referred to as
non-IFRS financial measures.
ASMI uses items such as working capital and free cash flow as internal measures of performance.
ASMI’s definition of these measures may not be comparable with similarly titled performance
measures and disclosures by other entities.
These measures may not be indicative of the company’s historical operating results nor are such
measures meant to be predictive of the company’s future results.
The presentation of the non-IFRS measures and non-financial operating data in this report should
not be construed as an implication that ASMI’s future results will be unaffected by exceptional or
non-recurring items.
ASMI presents non-IFRS financial measures in this Annual Report because it monitors these
performance measures at a consolidated level and it believes that these measures are relevant
to an understanding of the group’s financial performance. Please see Glossary and definitions
for clarification on how these measures calculated.
Glossary and definitions
Glossary and definitions
ABOUT
VALUE CREATION
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NON-FINANCIAL SUMMARY
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GLOSSARY AND DEFINITIONS
ESG/SUSTAINABILITY DEFINITIONS
Indicators
CDP
CLIMATE ADAPTATION
CLIMATE CHANGE
CMRT
CONFLICT MINERALS
Definitions
CDP is a not-for-profit charity running the global disclosure system for investors, companies, cities, states, and regions to
manage their environmental impacts.
Covered in
Sustainability/Planet
Changes in company processes, practices, and structures to mitigate priority risks moderate potential damages or to benefit from
opportunities associated with climate change.
Sustainability/Planet
Climate change is a long-term change in the average weather patterns that have come to define earth's local, regional and global
climates. These changes have a broad range of observed effects upon the earth.
Sustainability/Planet
The Conflict Free Sourcing Initiative (CFSI) Conflict Minerals Reporting Template (CMRT) is an industry widely adopted standard
template used by companies to collect conflict minerals due diligence data.
Global operations
Tin, tantalum, tungsten and gold (3TGs) containing mineral ores that originate in the Democratic Republic of the Congo or the
10 adjoining areas and are sold illicitly to fund armed conflict in the region.
Global operations
CRITICAL AND STRATEGIC SUPPLIERS
Suppliers that are determined to be critical or strategic to our business either because the business spends, or critical
components or critical materials, or strategic technical partnership.
Global operations
CSR
DATA NORMALIZATION
(AS A FUNCTION OF R&D SPEND)
DRC
EHS
EKOENERGY
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable – to itself,
its stakeholders, and the public.
Sustainability
Total power or water purchases divided by total number of millions of dollars in R&D spend during that calendar year.
Sustainability/Planet
The Democratic Republic of Congo.
Environmental, health, and safety (EHS) is a general term used to refer to laws, rules, regulations, professions, programs, and
workplace efforts to protect the health and safety of employees and the public as well as the environment from hazards associated
with the workplace.
Global operations
Sustainability
A global, nonprofit ecolabel for renewable energy, gas, and heat which certifies renewable energy projects to their sustainability
criteria.
Sustainability/Planet
EMPLOYEES BASED ON NATIONALITIES
The number of nationalities of employees on the last reporting day of the period.
EMPLOYEES COVERED BY COLLECTIVE
BARGAINING AGREEMENTS
The percentage of employees that are covered by collective bargaining agreements per local labor requirement divided by the
total number of employees at reporting year-end.
EMPLOYEES IN R&D
The number of employees on the last day of the reporting period whose work is directly related to the research and development
of the product during a reporting year.
People
People
People
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
(ESG)
The three primary factors for measuring the sustainability and societal impact of a company and/or business.
Sustainability
ETHICS CONCERNS REPORTED FROM
ANONYMOUS GLOBAL REPORTING PROGRAM
SPEAKUP!
The number of any ethics concerns reported by employees through our anonymous employee reporting channel SpeakUp!;
that may be related to a potential violation of the Code of Business Conduct (COBC) and Business Principles or Policies in the
reporting year.
People
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
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Indicators
Definitions
Covered in
ETHICS CONCERNS REPORTED THROUGH
OTHER CHANNELS
The number of any ethics concerns reported by employees through other means, including directly to management or the
Compliance Officer, that may be related to a potential violation of the COBC Business Principles or Policies in the reporting year.
People
EU GOOS
An energy certificate defined in article 15 of the European Directive 2009/28/EU that evidences the origin of electricity from
renewable sources.
Sustainability/Planet
FLBL: FORCED LABOR/BONDED LABOR
Forced labor refers to situations in which persons are coerced to work through the use of violence or intimidation, or by more
subtle means such as accumulated debt, retention of identity papers or threats of denunciation to immigration authorities.
Bonded labor, also known as debt bondage and peonage, happens when people give themselves into slavery as security against
a loan or when they inherit a debt from a relative. The cyclical process begins with a debt, whether acquired or inherited, that
cannot be paid immediately.
Global operations
FOREIGN NATIONAL
A foreign national is any person who is not a national of a specific country.
People
GREENHOUSE GAS (GHG) EMISSIONS
Greenhouse gas emissions from human activity, which strengthens the greenhouse effect causing climate change. See Scope 1,
Scope 2, Scope 3 emissions below for more information.
Sustainability/Planet
GRI
The Global Reporting Initiative (GRI) is an international independent standards organization that helps businesses, governments
and other organizations understand and communicate their impacts on issues such as climate change, human rights and
corruption (www.globalreporting.org). The GRI standard was used to guide our materiality assessment and non-financial
data summary.
Sustainability
INFORMATION RIGHTS MANAGEMENT (IRM)
A subset of digital rights management (DRM) which includes processes and technologies that protect sensitive information from
unauthorized access.
Innovation and products
INJURY RATE
ISO 14001
J-CREDITS
LANDFILL DIVERSION RATE
LIVING WAGE
The injury rate is a measure of all first aid or greater (more serious) injuries per every 100 employees in the reporting period.
People
The ISO 14001 environmental management system (EMS) standard is an internationally recognized environmental management
standard.
Sustainability
A Japanese government program that certifies the amount of greenhouse gas emissions (such as CO2) reduced or removed
through implementation of energy-saving devices or sustainable forestry.
Sustainability/Planet
The percentage of solid waste diverted from landfill via recycling and reuse efforts in the reporting period as generated
at ASMI key manufacturing, engineering, and R&D sites.
Sustainability/Planet
A living wage is defined as the minimum income necessary for a worker to meet the basic needs of an average sized family,
including food, housing, and other essential needs such as clothing.
People
People
NUMBER (#) OF EMPLOYEES COMPLETING
BI-ANNUAL ETHICS TRAINING
All employees completing the online compliance training courses bi-annually during our compliance month within the reporting
year. We track # of employees and % of the total that completed the training. It is applicable to all employees.
OECD
PFAS
Organization for Economic Cooperation and Development is an international organization helping governments tackle the
economic, social and governance challenges of a globalized economy. It publishes guidance and frameworks such as
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
Global operations
A broad family of per and polyfluoroalkyl substances such as Teflon used in engineering applications requiring high thermal
stability and non-stick properties.
Innovation and products
PRODUCT LIFE CYCLE (PLC)
The entire lifecycle of a product from its initial introduction to eventual withdrawal from the market.
Innovation and products
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VALUE CREATION
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NON-FINANCIAL SUMMARY
GENERAL INFORMATION
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Indicators
Definitions
PRODUCT LIFECYCLE MANAGEMENT (PLM)
Product lifecycle management (PLM) refers to the handling of a good as it moves through the typical stages of its product life:
development and introduction, growth, maturity/stability, and decline. This handling involves both the manufacturing of the good
and the marketing of it.
Covered in
Innovation and products
RBA CODE OF CONDUCT
The RBA Code of Conduct is a set of social, environmental and ethical industry standards for governing how companies conduct
business. (www.responsiblebusiness.org/code-of-conduct)
Global operations
RBA SAQ SUPPLIER RISK RANKING
The percent of critical/strategic RBA scorecard suppliers who completed the required supplier RBA self-assessment
questionnaire (SAQ) and resulted with low or medium risks.
RBA SELF-ASSESSMENT QUESTIONNAIRE
(RBA SAQ)
The self-assessment questionnaire is one of the RBA’s standardized risk assessment tools that is useful for assessing a
companies commitment to ethical business conduct and compliance with the RBA Code of Conduct.
RBA SELF-ASSESSMENT QUESTIONNAIRE (SAQ)
RISK RATING/RESULT
We adopted the RBA standard tool for risk assessment self-assessment questionnaire (SAQ) to assess our own and supply
chain risk. This rate applies to our own operation SAQ results with our major sites.
Global operations
Global operations
Global operations
REACH
An EU Regulation of chemical substances intended to protect human health, improve the environment and reduce
chemical-related risks.
Innovation and products
RECORDABLE INJURY RATE
The recordable injury rate measures the number of cases that require a response greater than first aid (or serious injuries) per
100 employees in the reporting period.
People
RENEWABLE ELECTRICITY
Electricity derived from sources that are not depleted upon use, such as wind or solar power.
RESPONSIBLE BUSINESS ALLIANCE (RBA)
World's largest industry coalition seeking to create a industry-wide standards on social, environmental and ethical issues in the
industry supply chain. Rebranded from the Electronics Industry Citizenship Coalition (EICC) in October 2017. ASMI is a member
of the RBA. (responsiblebusiness.org)
Sustainability/Planet
Global operations
RMI: RESPONSIBLE MINERALS INITIATIVE
The Responsible Minerals Initiative provides companies with tools and resources to make sourcing decisions that improve
regulatory compliance and support responsible sourcing of minerals from conflict-affected and high-risk areas.
Global operations
ROHS
SASB
SCOPE 1, SCOPE 2, SCOPE 3 EMISSIONS
SEMI
SEMI MOD
SPEAK UP!
STAFF (EMPLOYEE)
A regulation that originated in the European Union which restricts the use of hazardous materials found in electrical and electronic
products.
Innovation and products
The Sustainability Accounting Standards Board (SASB) is an independent nonprofit organization that sets standards to guide
the disclosure of financially material sustainability information by companies to their investors. (www.sasb.org/about/)
Non-financial summary
Terms used to define the source of greenhouse gas (GHG) emissions of a corporation. Scope 1 are emissions that the company
produces from its operations through use of chemicals, boilers and vehicles. Scope 2 are GHG emissions associated the
purchase of electricity or energy. Scope 3 emissions are all other GHG emissions associated with the company's value chain
and use of its products that occur outside the scope 1 and 2 boundary.
Sustainability/Planet
Global industry association representing the semiconductor manufacturing and design supply chain connecting over
2,400 member companies and 1.3 million professionals worldwide.
Innovation and products
Semiconductor Manufacturing Ownership Diversity (SEMI MOD) is a special interest group dedicated to increasing the number
of diverse owned and led suppliers serving the semiconductor industry.
Global operations
Globally available anonymous reporting channel to report ethics concerns or whistleblower concerns.
Staff (employee) is a person with a fixed contract, excluding temporary labor. Definition may be varied by country per local and
country labor law. The number of employees at the last day of the reporting period.
People
People
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
195
Covered in
Global operations
Global operations
Indicators
Definitions
SUPPLIER CODE OF CONDUCT COMMITMENT %
The percent of critical and strategic suppliers that have acknowledged their commitment to RBA code or whose code of conduct
is assessed to be acceptable as it covers the similar principles of the RBA Code of Conduct.
SUPPLY CHAIN SPEND BY REGION
SUPPLY CHAIN SPENDS PER REGION
(IN EURO AND %)
TCFD
TIGR'S
TOTAL ATTRITION RATE
UN SDG
Total amount of euros spent with our global suppliers for the materials, components and services that are used to produce
our products and services for our customers and for non-product related products services that enable our operations globally
in the reporting period.
Total euro amount we spent and equivalent to the % of total spends with suppliers by each region.
Global operations
The Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD) is a market-driven initiative, set up
to develop a set of recommendations for voluntary and consistent climate-related financial risk disclosures in mainstream filings.
(www.fsb-tcfd.org)
Sustainability/Planet
Tradeable Instrument for Global Renewables (TIGR) is a global standard for the documenting and tracking renewable energy
certificates (RECS) as tradable instruments/assets.
Sustainability/Planet
The percentage of employees in a workforce that leave voluntarily or involuntarily during a reporting period.
Non-financial summary
United Nations Sustainable Development Goals provides an global agenda and plan of action for people, planet and prosperity.
It also seeks to strengthen universal peace and freedom. (https://sdgs.un.org/goals)
Sustainability
VOLUNTARY ATTRITION RATE
The percentage of employees in a workforce that leave voluntarily during a reporting period.
WATER CONSUMPTION
ZERO HARM!
The total amount of water consumption in cubic meters for a reporting period.
Refers to ASMI striving to prevent harm to people, reduce our impact on the environment, and make positive contributions
to society.
People
Sustainability
Sustainability/Planet
NON IFRS FINANCIAL MEASURES
Financial measures
Definitions
CASH FLOWS FROM OPERATING ACTIVITIES AFTER INVESTING ACTIVITIES
Cash flows from operating activities after investing is also referred to as free cash flow.
OPERATING CASH FLOWS BEFORE CHANGES IN WORKING CAPITAL
Cash flows from operating activities excluding the impact of movements in working capital during the period.
WORKING CAPITAL
The sum of accounts receivable, other current assets, inventories, provision for warranty, accounts payable, accrued
expenses and other payables.
Locations worldwide
Locations worldwide
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
196
LOCATIONS WORLDWIDE
EUROPE
THE NETHERLANDS
ASM International NV
(HEADQUARTERS)
Versterkerstraat 8
1322 AP Almere
T: +31 88 100 8810
F: +31 88 100 8820
ASM Europe BV
Versterkerstraat 8
1322 AP Almere
T: +31 88 100 8711
F: +31 88 100 8710
ASM IP Holding BV
Versterkerstraat 8
1322 AP Almere
T: +31 88 100 8810
F: +31 88 100 8820
BELGIUM
ASM Belgium NV
Kapeldreef 75
3001 Leuven
T: +32 472 570 961
FINLAND
ASM Microchemistry Oy
Pietari Kalmin katu 3 F 2
00560 Helsinki
T: +358 9 525 540
FRANCE
ASM France SARL
223 Rue des Bécasses
38920 Crolles
T: +33 4 7692 2824
F: +33 4 3892 0472
GERMANY
ASM Germany Sales BV
Bretonischer Ring 16
85630 Grasbrunn
T: +49 89 462 3650
F: +49 89 462 36566
ASM Germany Sales BV
Hohenbusch Markt 1
01108 Dresden
T: +49 351 3238330
F: +49 351 3238332
NORTH AMERICA
IRELAND
ASM Services & Support Ireland Ltd
UNITED STATES
ASM America, Inc
Unit 23, Hills Industrial Estate
3440 East University Drive
Lucan, K78 P661
Co. Dublin
T: +353 1 621 9100
F: +353 1 628 0206
ISRAEL
ASM Service & Support Israel Ltd
2 Hazaron St
Kiryat-Gat 82109
T: +972 8 612 3077
Phoenix, AZ 85034
T: +1 602 470 5700
Regional Sales/Service Office
2083 East Hospitality Lane
Suite 200
Boise, ID 83716
T: +1 208 424-9534
Regional Service Office
7235 NE Evergreen Parkway
Suite 200
Hillsboro, OR 97124
T: +1 503 629 1360
ABOUT
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ASMI ANNUAL REPORT 2021
197
ASIA
CHINA
ASM China Ltd
Room 201A, Building D
Changtai Plaza 2889 Alley
Jinke Road, Pudong
Shanghai, China, 201203
T: +86 21 50 368 588
F: +86 21 50 368 878
JAPAN
ASM Japan KK
23-1, 6-chome Nagayama
Tama-shi
Tokyo 206-0025
T: +81 42 337 6311
F: +81 42 389 7555
Yokkaichi Service Center
3F, Kosco-Yokkaichi-Nishiura Building
5-10, 1-chome, Yasujima, Yokkaichi-shi
SINGAPORE
ASM Front-End Manufacturing
Singapore Pte Ltd
4 Woodlands Height
Singapore 737860
T: +65 6512 2922
F: +65 6512 2966
SOUTH KOREA
ASM Korea Ltd
Head Office
Mie 510-0075
T: +81 59 340 6100
F: +81 59 340 6099
Hiroshima Service Center
402, Higashi-Hiroshima Sea Place
10-30, Saijosakae-machi
Higashi-Hiroshima-shi
Hiroshima 739-0015
T: +81 42 315 0195
Kitakami Service Center
2F B-C, Iriyama kita Build
3-27, 1-chome Odori,
ASM Front-End Sales &
Services Taiwan Co, Ltd
Lin-Kuo Office
2F, No 50, Fuxing 3rd Rd
Guishan Dist, Taoyuan City 333
T: +886 3 211 5279
F: +886 3 328 5358
ASM Front-End Sales &
Services Taiwan Co, Ltd
Tai-Nan Office
63-11, Dongtan Cheomdan Saneop 1-Ro
3F., No. 3, Nanke 3rd Rd.,
Xinshi Dist., Tainan City 744, Taiwan
T: +886 3 666 7722
F: +886 6 589 2710
Hwaseong-Si
Gyeonggi-Do, 18469
T: +82 31-5176-0000
TAIWAN
ASM Front-End Sales &
Services Taiwan Co, Ltd
Hsin-Chu Office
2F-5, No 1, Jinshan 8th St
East Dist, Hsinchu City 300
T: +886 3 666 7722
F: +886 3 564 8899
Daini Technology Center
Kitakami-shi, Iwate-ken 024-0061
7-2, 2-chome, Kurigi
Asao-ku, Kawasaki-shi
Kanagawa 215-0033
T: +81 44 712 3681
F: +81 44 712 3682
T: +81 42 337 6326
MALAYSIA
ASM Services & Support
Malaysia Sdn Bhd
Suite 17 and 18, First Floor
Kumamoto Service Center
Incubator Block, Kulim Techno Centre
3F, Mayfair-Suizenji
21-30, 1-chome, Suizenji
Chuo-ku, Kumamoto-shi
Kumamoto, 862-0950
T: +81 96 387 7300
Kulim Hi-Tech Park
09000, Kulim
Kedah Darul Aman
T: +604 408 0140
Safe harbor statement
Safe harbor statement
ABOUT
VALUE CREATION
GOVERNANCE
FINANCIAL STATEMENTS
NON-FINANCIAL SUMMARY
GENERAL INFORMATION
ASMI ANNUAL REPORT 2021
198
SAFE HARBOR STATEMENT
In addition to historical information, some of the information posted or referenced herein or on the website contains
statements relating to our future business and/or results, including, among others, statements regarding future revenue,
sales, income, expenditures, sufficiency of cash generated from operations, maintenance of interest in ASM Pacific
Technology Ltd, business strategy, product development, product acceptance, market penetration, market demand,
return on investment in new products, facility completion dates and product shipment dates, corporate transactions,
restructurings, liquidity and financing matters, outlooks, and any other non-historical information. These statements include
certain projections and business trends, which are ‘forward-looking’. We caution readers that no forward-looking statement
is a guarantee of future performance and that actual results could differ materially from those contained in the forward-
looking statements.
You can identify forward-looking statements by the use of words like ‘may’, ‘could’, ‘should’, ‘project’, ‘believe’,
‘anticipate’, ‘expect’, ‘plan’, ‘estimate’, ‘forecast’, ‘potential’, ‘intend’, ‘continue’, and variations of these words or
comparable words.
Forward-looking statements do not guarantee future performance and involve risks and uncertainties. You should be
aware that our actual results may differ materially from those contained in the forward-looking statements as a result of
certain risks and uncertainties. These risks and uncertainties include, but are not limited to, economic conditions and
trends in the semiconductor industry and the duration of industry downturns, currency fluctuations, the timing of significant
orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholder or
other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or geopolitical
tensions or political instability, changes in import/export regulations, epidemics and other risks indicated in our most
recently filed Annual Report and other filings from time to time. The risks described are not the only ones. Some risks are
not yet known and some that we do not currently believe to be material could later become material. Each of these risks
could materially affect our business, revenues, income, assets, liquidity, and capital resources. All statements are made
as of the date of posting unless otherwise noted, and we assume no obligation to update or revise any forward-looking
statements to reflect future developments or circumstances.
ASM International N.V.
Versterkerstraat 8
1322 AP Almere
The Netherlands
Published on March 3, 2022