REPORTING 2016

With the 2015 Q4 earnings release, published on February 23, 2016, ASMI announced that as of January 1, 2016, it will report its financial results in accordance with IFRS. Up until the last reporting regarding 2015, ASMI's primary external and internal reporting has been based on US GAAP. In addition ASMI issued quarterly reconciliations of net earnings and shareholders' equity and statutory interim reports prepared in accordance with International Financial Reporting Standards (IFRS). Following the voluntary delisting from NASDAQ, August 2015, ASMI migrated to IFRS as its only internal and external reporting standard from January 1, 2016, and discontinued the use of US GAAP as of the same date. During 2016 comparable results based on US GAAP were presented; as from 2017 results based on IFRS only will be reported.

The main deviations between IFRS and US GAAP are explained in Annex 2.

FINANCIAL HIGHLIGHTS
ASMI results based on IFRS.
Quarter EUR million Q4 2015 Q3 2016 Q4 2016
New orders 135.4 122.6 176.9
Net sales 144.7 144.2 172.6
Gross profit margin % 44.8 % 44.2 % 44.9 %
Operating result 4.0 16.8 29.9
Result from investments (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT) 1.6 26.7 18.4
Amortization intangible assets resulting from the sale of the 12% stake of ASMPT
(7.1 ) (6.7 ) (7.0 )
Net earnings 10.8 33.1 61.5
Normalized net earnings (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT) 17.9 39.8 68.5


· Net sales for the fourth quarter 2016 were €173 million, an increase of 20% compared to the previous quarter. Year-on-year net sales increased with 19%.

· New orders at €177 million were 44% above the Q3 2016 level.

· Normalized net earnings for the fourth quarter 2016 increased by €29 million compared to the third quarter 2016. Operating result increased to €30 million. The financing result included €19 million positive effects from currencies compared to €3 million negative effects in the third quarter. The result from investments decreased with €8 million.

COMMENT
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said: "The strong overall market climate for semiconductor equipment towards the end of 2016 led to better sales and a higher order intake for Q4 than forecasted. The net cash position of ASMI remained strong. In addition to a stable proposed dividend of €0.70 per share, we announce today an increase in our current share buyback program from € 50 million to €100 million."

OUTLOOK
We continue to expect a clear improvement in the single wafer ALD market in 2017:

Demand in the Logic/Foundry segment is expected to remain healthy.
We believe the 3D-NAND contribution to the single wafer ALD market will show a strong increase in 2017, leading to increased orders for ASMI.
The DRAM segment is expected to show a modest recovery in 2017.

We expect that the single wafer ALD market experienced a double digit decline in 2016. Based upon that we forecast the single wafer ALD market to reach a size of approx. US$1.5 billion in 2020-2021.

We project a year-on-year sales increase for the first half of 2017, whereby we expect a sales level of €135-145 million for Q1 and €160-200 million for Q2, both on a currency comparable level. The order intake in Q1 is expected to remain healthy at a level of €170-190 million, also on a currency comparable level.

SHARE BUYBACK PROGRAM
On October 26, 2016, ASMI announced a share buyback program for the repurchase of up to €50 million of the Company's common shares within the 2016-2017 time frame. Today, ASMI announces that its Management Board authorized an increase in this program to €100 million.

On May 25, 2016, the Annual General Meeting of Shareholders authorized ASMI to acquire shares for a period of 18 months. The repurchase program is part of ASMI's commitment to use excess cash for the benefit of its shareholders.

The program started on December 13, 2016. On December 31, 2016, 12.9% of the program was completed at an average share price of €42.31.

At the end of 2016 ASMI held 3.98 million treasury shares, which is more than sufficient to cover our outstanding options and restricted/performance shares. Hence ASMI will propose to the Annual General Meeting, to be held on May 22, 2017, to cancel 1.5 million treasury shares.

CREDIT FACILITY
In December 2016, ASMI finalized the renewal of the current standby revolving credit facility. The security of the previous credit agreement has been released. The maturity date of the new credit commitment of €150 million is December 16, 2021, with an extension option for up to two years. As per December 31, 2016, 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 each year, on June 30 and December 31. We were in compliance with these financial covenants as per December 31, 2016.

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ASMI EUR 47,995 -1,30 vol. 132.000