ASM International N.V. updates shareholders prior to the November
27th EGM
ASMI reiterates confidence in Front-end business
No further use of ASM PT dividends for investment in Front-end
operations
BILTHOVEN, the Netherlands, November 24, 2006 - Following our 3rd
Quarter results and recent discussions with many shareholders, ASM
International N.V. (NASDAQ: ASMI and Euronext Amsterdam: ASM) wishes
ahead of the EGM on 27 November to update investors on strategy and
use of ASM-PT dividends.
Confidence in our Front-end Performance
ASM INTERNATIONAL ("ASMI") re-iterates its confidence in
its Front-end business. As we stated at the time of the announcement
of our 3rd Quarter results, we have increased Front-end gross margin
every quarter in 2006, improved working capital by 10 days
year-to-date and are confident we can achieve EBITDA of over
¤10 million for 2006. We are committed to achieving positive
operating cash flow (independent from the ASM-PT dividend) and
positive net earnings in 2007, and beyond that, operating margins in
line with Front-end peers by 2009.
In order to help shareholders track the performance of
the Front-end operations, ASMI will be publishing separate Front-end
and Back-end segment financial information on a quarterly basis
beginning in the first quarter of 2007. We will also provide in our
quarterly reporting an explanation of the key drivers of the
performance of our Front-end business.
Use of Future ASM-PT Dividends
Based on the positive momentum in the Front-end business
and confidence in its future performance, the Supervisory Board and
the Management Board ("the Boards") now consider the Front-end
operations to be financially independent. The Boards have thus
decided that going forward dividends received from ASM-PT will not be
required for investment in the Front-end business.
All future dividends will therefore be used for a
combination of either the reduction of ASMI's outstanding convertible
debt, the buyback of ASMI common shares, cash dividends to ASMI
shareholders or, in the event of dilution resulting from the exercise
of employee stock options in ASM-PT, the purchase of shares of ASM-PT
to maintain ASMI's ownership up to the current level. The Boards
will determine at the relevant time which combination is the most
appropriate for the company and its shareholders. This commitment is
for the foreseeable future, and in any event, for the next three
years.
Current and Future Strategy
As we have indicated before, in accordance with the
undertakings made at the Annual General Meeting in May 2006, the
Boards have considered the company's current strategy regarding its
Front-end and Back-end operations and have concluded that, at
present, the proposed financial independence of the Front-end and
associated dividend policy is the best way to maximise the value of
the ASMI group from both its units.
In the future, both the Boards will continue to evaluate
developments in the semi-conductor industry and the strategy of ASMI
and will give all options, without exception, appropriate
consideration.
Mr. Arthur del Prado, President and Chief Executive of
ASMI, said: "ASMI has built valuable positions through sustained
investment in innovation in recent years, which is now showing up in
the improved financial performance of the Front-end operations. We
are thus confident that future ASM-PT dividends will not be required
for further investment in the Front-end operations. We are pleased
that during the past months, we have been able to exchange views with
our shareholders and clarify further the planned strategy of the
company, and look forward to their support at the upcoming EGM."
About ASM International
ASM International N.V. and its subsidiaries design and manufacture
equipment and materials used to produce semiconductor devices. The
company provides production solutions for wafer processing (Front-end
segment) as well as assembly and packaging (Back-end segment) through
facilities in the United States, Europe, Japan and Asia. ASM
International's common stock trades on NASDAQ (symbol ASMI) and the
Euronext Amsterdam Stock Exchange (symbol ASM). For more information,
visit ASMI's web site at www.asm.com.
Safe Harbor Statement under the U.S. Private Securities Litigation
Reform Act of 1995: All matters discussed in this statement, except
for any historical data, are forward-looking statements.
Forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements. These include, but are not limited to,
economic conditions and trends in the semiconductor industry
generally and the timing of the industry cycles specifically,
currency fluctuations, the timing of significant orders, market
acceptance of new products, competitive factors, litigation involving
intellectual property, shareholder and other issues, commercial and
economic disruption due to natural disasters, terrorist activity,
armed conflict or political instability, epidemics, and other risks
indicated in the Company's filings from time to time with the U.S.
Securities and Exchange Commission, including, but not limited to,
the Company's reports on Form 20-F and Form 6-K. The Company assumes
no obligation nor intends to update or revise any forward-looking
statements to reflect future developments or circumstances.
Contacts
Naud van der Ven Mary Jo Dieckhaus
Chief Financial Officer Investor Relations
+ 31 30 229 8540 +1 212 986 2900
Naud.van.der.ven@asm.com maryjo.dieckhaus@asm.com
Erik Kamerbeek
Director Investor Relations
+ 31 30 229 8500
Erik.kamerbeek@asm.com
