Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Investor Presentation (June 2016)
61 slides from Be Semiconductor Industries's investor presentation, Jun 21, 2016
Slide 1: Analyst Presentation 21 June 2016
ANALYST PRESENTATION 21 JUNE 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to ex
Slide 3: Agenda
Agenda I. Company Overview II. Market III. Technology Update a. Die Attach b. Packaging & Plating IV. Operations Review V. Financial Review June 2016 3
Slide 4: I. Company Overview
I. COMPANY OVERVIEW June 2016 4
Slide 5: Besi Overview
Besi Overview • Leading assembly equipment supplier with #1 and #2 positions in key products. 30% addressable market share • Broad portfolio: die attach, packaging and plating Corporate Profile • Strategic positioning in substrate and wafer level packaging • Global mfg. operations in 6 countries; 1,
Slide 6: Besi Market Information
Besi Market Information Symbol/ • BESI Average Daily Volume Index • Euronext Midcap AMX (Shares 000s) 400 Market • € 943 MM ($1,062 300 Market Profile Cap* MM) 200 100 Dividend • Pay out 40-80% of net 0 Policy income per annum 2013 2014 2015 2016 Top 10 Shareholders By Geography (% of shares outstan
Slide 7: Summary Strategy
Summary Strategy Develop new products and markets • Maintain best in class tech leadership in advanced packaging • Expand tech capabilities and applications for TCB, thin die, eWLB die bonding; large area, ultra thin and wafer level molding • Further develop expertise in solar and battery plating ap
Slide 8: II. Market
BeSi mas ll. MARKET June 2016 8
Slide 9: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 4.0 40% 3.1 4.2 3.8 30% 4.0 3.4 (US$ billions) 29.7% 3.5 20% 3.0 10% 11.0% 9.0% 2.0 0% 1.1% -10% 1.0 -14.1% -20% -22.3% 0.0 -30% 2013 2014 2015E 2016E 2017E 2018E Source: VLSI May 2016 Besi Revenue Revenue YoY
Slide 10: Besi Has Gained Share In Its Addressable Markets
Besi Has Gained Share In Its Addressable Markets Besi Market Share Source: VLSI, May 2016 and Besi estimates 2012 2013 2014 2015 Total Assembly Equipment Sales 8.5% 10.5% 12.7% 11.7% Besi Addressable Market 21.4% 25.9% 29.3% 29.6% Total Die Attach Equipment 26.8% 31.0% 36.1% 36.1% Die Bonding 29.7%
Slide 11: Share of Wallet Increasing
Share of Wallet Increasing Die Attach Packaging In USD 2012 2013 2014 2015 2012 2013 2014 2015 • Customers are largest semi mfrs. Subcontractors • Engaged in most advanced packaging applications ASE 65% 60% 70% 80% 35% 65% 35% 25% Amkor 75% 85% 90% 95% 45% 10% 20% 25% JCET (a) 75% 50% 70% 30% 0% 10%
Slide 12: Besi End User Application Trends
Besi End User Application Trends 2015 35% 32% 30% • Better balance in end user applications 25% 22% 20% • Mobile internet devices 18% are 32% of revenue 15% 15% • Automotive has grown 10% 10% to 18% 5% 3% • Computer/PCs holding up due to high end 0% server market • Service/spare parts has increased
Slide 13: 2016 Industry Outlook
2016 Industry Outlook New technology cycle underway for <20 nano devices amidst global macro uncertainty and customer margin pressure VLSI now forecasts flat 2016. Chinese and Taiwanese purchases of leading edge capacity also aided Besi’s H1-16 outlook Speed, accuracy Selective strength and reliabil
Slide 14: Besi Revenue Growth Drivers
Besi Revenue Growth Drivers World tooling up for new tech cycle <20 nano Emerging Increased process smart phone deployment: functionality TCB and WLP Revenue Increased Growth share of Drivers New device Japanese introductions: supply chain IoT, wearables and China handsets Solar cell plating Wire bo
Slide 15: III. Technology Update
III. TECHNOLOGY UPDATE June 2016 15
Slide 16: The Internet of Tomorrow
The Internet of Tomorrow • Internet of tomorrow will increasingly influence all areas of daily business and personal interaction Source: Freescale June 2016 16
Slide 17: Will Drive Innovation in Many End User Applications
Will Drive Innovation in Many End User Applications June 2016 17
Slide 18: And Lead to Increased Data Traffic
And Lead to Increased Data Traffic CONNECTED DEVICES IP TRAFFIC EB/MONTH 35 250 30 25 200 17% CAGR 20 22% CAGR Billion 150 15 10 100 5 50 0 2015 2021 Cellular IOT Non Cellular IOT 0 PC/Labtop/Tablet Mobile Phones 2015 2016 2017 2018 2019 2020 Source: Cisco June 2016 Fixed Phones Source: Ericsson 201
Slide 19: Which Will Require A New Standard Protocol
Which Will Require A New Standard Protocol • New 5G standard can accommodate: • Increased data traffic • Wider range of applications • Mobile Devices • IOT Devices • Machine to Machine • Autonomous Driving • Medical • Smart Grid • And will require: • Substantial Infrastructure investment • New highe
Slide 20: Driving Improvements in Mobile Technology / New Advanced Packaging Solutions
Driving Improvements in Mobile Technology/ New Advanced Packaging Solutions Key areas of focus: • Sensors: • Camera • Flashlight • Fingerprint • Components: • Memory • CPU/GPU • Communication • Power mgt/wireless charging • Display • Build Features: • Modular Designs • Add Ons • Thickness 5.2 mm New
Slide 21: New Smart Phone Features Expand Besi's Die Attach Addressable Market
New Smart Phone Features Expand Besi‘s Die Attach Addressable Market Process Steps • Sensor Die Attach • Sapphire Crystal Attach • Sensor Die Attach • Logic Die Attach • Flash Die Attach • Camera applications • Flashlight applications June 2016 21
Slide 22: Increased Automotive Electronic Content Also Drives New Advanced Packaging Solutions
Increased Automotive Electronic Content Also Drives New Advanced Packaging Solutions • Key trends: • Autonomous driving • Energy efficiency (hybrid/electric) • Safety/security/reliability • Lifetime operating environment • Power management • Areas of Focus: • Connectivity • Cameras • Motor Managemen
Slide 23: Current Package Types
Current Package Types Leadframe Based Contacts limited to perimeter Substrate Based Contacts all over surface area SIP System In Package Package on Package High Performance BGA CONTACTS OVER FULL SURFACE AREA June 2016 23
Slide 24: Packages Have Become Ever Smaller, More Dense and Complex
Packages Have Become Ever Smaller, More Dense and Complex Qualcomm Snapdragon Apple Processor June 2016 24
Slide 25: Leading to New Assembly Equipment Requirements
Leading to New Assembly Equipment Requirements Key requirements: • Thinner/Smaller Dies • Stacked dies with TSV • Finer Pitches • Thinner packages Accuracy • More Connections • Fan Out eWLB Requiring continuous system improvements: • Speed • Accuracy • Reliability • Process Control • Cost Speed June
Slide 26: Besi Assembly Processes
Besi Assembly Processes • Sorting and mounting chips on substrate materials • Establishing electrical interconnects • Molding/encapsulating devices in packages • Singulation/trim and form of packages • Electro plating of leadframes, substrates and solar cells • Flip chip, TCB, Fan Out and multi modu
Slide 27: Best In Class Product Portfolio
Best In Class Product Portfolio June 2016 27
Slide 28: III.a. Technology Update: Die Attach
III.a. TECHNOLOGY UPDATE: DIE ATTACH June 2016 28
Slide 29: Besi Leading Edge Die Attach Systems
Besi Leading Edge Die Attach Systems 8800 SERIES QUANTUM/CHAMEO/TCB DUAL GANTRY/HEAD Highest UPH 7000 Accuracy 3µ @ L3s 5µ @ G3s Face-up Face-down @ Recipe Tool to Tool Repeatability De facto standard in advanced Flip Chip and eWLP Fan Out systems June 2016 29
Slide 30: Besi's 8800 TCB System
Besi‘s 8800 TCB System Advanced Bondhead Dynamic Bondforce Control Force Position Tilt Individual bond profiles per layer Rapid heater & cooler Max 360c/sec 7 AXIS BONDHEAD CONTROL June 2016 30
Slide 31: More Than Moore: Highly Flexible evo 2200 Multi Chip Applications
More Than Moore: Highly Flexible evo 2200 Multi Chip Applications SIP CAMERA SENSORS AUTOMOTIVE AUTOMOTIVE CAMERA HARD DISK LED June 2016 31
Slide 32: Key Flexibility Features of evo 2200
Key Flexibility Features of evo 2200 AUTOMATIC TOOL MULTIPLE WAFER/ EPOXY WRITING INTEGRATED DISPENSE CHANGER DEVICE HANDLING AXIS AUTO CHIP EJECTOR AUTO WAFER TRANSFER FLIP CHIP CAPABILITY DUAL IN LINE PACKAGE CAROUSEL June 2016 32
Slide 33: TCB/TSV Is Enabling Technology for New High End Memory and Optical Applications
TCB/TSV Is Enabling Technology for New High End Memory and Optical Applications June 2016 33
Slide 34: Besi's TCB Advantage
Besi‘s TCB Advantage 32 Stacked Die Capability High Accuracy Key competitive factors: • Industry leading technology • Capable of stacking 32 die at <5 micron accuracy (current market: 4-8 die stack) • High accuracy over large area placement • Highly stable • Industry leading throughput • Compact for
Slide 35: Fan Out WLP Is an Emerging Technology
Fan Out WLP Is an Emerging Technology Both Fan-In/Fan Out WLP currently in use: • Fan in utilized for basic sensors with low number of contacts • Fan out used for high end advanced packaging Fan Out Advantages: • Eliminates expensive substrate • RDL Layer directly placed on die • No wire bonding nec
Slide 36: Fan Out WLP Process Flow
Fan Out WLP Process Flow Step 1: Redistribute dies on artificial Step 2: Remove carrier, construct RDL carrier then mold layer, attach solder balls, singulate Detailed Chip First / Face Down Process • Start with metal or glass carrier with sticky layer • Die placement (face-down) • Non-die placement
Slide 37: Various Fan Out WLP Methods
Various Fan Out WLP Methods Face-down Face-up Equipment Requirements: • High flexibility • Local/global accuracy Die First • Large size wafer handling capability e.g. IFX eWLB, e.g. DECA FO-WLP Freescale RCP • Attractive cost of ownership • Reduced warpage Die Last no approach yet seen e.g. Amkor SW
Slide 38: Fan Out WLP Market Segmentation
Fan Out WLP Market Segmentation Performance @ Best Cost Form Factor: Keep it Thin! High Density Interconnect Low end Mid end High end Accuracy: Accuracy: Accuracy: 10/10µ line spacing 5/5µ line spacing 2/2µ line spacing . June 2016 38
Slide 39: Besi Has Leading Position in Fan Out WLB
Besi Has Leading Position in Fan Out WLB First Fan Out WLP adopters Preferred process for high data transfer and optical devices in IoT, mobile and power • Besi has largest industry installed base and estimated 75% market share • Principal competition: Shibaura and Shinkawa June 2016 39
Slide 40: III.b. Technology Update: Packaging & Plating
III.b. TECHNOLOGY UPDATE: PACKAGING & PLATING June 2016 40
Slide 41: Besi Has Industry Leading Molding Capabilities
Besi Has Industry Leading Molding Capabilities • Large area 340 x 340 mm • eWLB and C2 • Overmolded and exposed • Glass and silicon interposer • Thin moldcap <0.150 mm • One pass injection molding • 90% mkt share exposed die Modular & flexible construction June 2016 41
Slide 42: Comparison of Molding Processes
Comparison of Molding Processes Compression Molding Injection Molding Compound flow Compound flow Minimum mold cap required Compound from side NCP or NCF needed Underfill and expose in one step Back grinding needed No swim No incomplete fill June 2016 42
Slide 43: Advantage of One Pass Injection Molding
Advantage of One Pass Injection Molding Injection Molding Exposed Dies • Exposed solder balls on silicon interposer • Moldcap of 100 um • Exposed solder balls of 100 um • Total height of solderball is 200 um Injection Molding Exposed Solder Balls Glass- SI Interposer 150 uM Cap CSP Package for 5 or
Slide 44: Increased Shielding Requirements Drive Growth For Singulation Systems
Increased Shielding Requirements Drive Growth For Singulation Systems • Providing shielding from electronic interference is more critical as wireless packages shrink • Besi has specialized cutting technology required to singulate shielding material in single cut Advanced Singulation Line June 2016 4
Slide 45: Besi Solar Plating Capabilities
Besi Solar Plating Capabilities • Replacing current silver screen printed technology with copper plating • Leads to significant cost reduction • Thinner lines yield larger surface area and efficiency improvements • Emerging growth business • Receipt of orders from industry leading suppliers and Asia
Slide 46: Summary
Summary • Semiconductor packaging plays an increasingly important role: • As Internet of Tomorrow becomes a reality • IC devices get smaller, denser and more complex with increased functionality • New technology cycle underway partially driven by under 20 nano device shrink, IoT, increased data volu
Slide 47: IV. Operations Review
IV. OPERATIONS REVIEW June 2016 47
Slide 48: Key Operational Initiatives
Key Operational Initiatives Initiative/Timetable 2015 2016 Transfer certain Die Attach functions to Singapore Transfer die bonding production for local market from Malaysia to China Transfer Plating Production from NL to Malaysia 10% fixed & temporary headcount reduction Transfer die sorting from Au
Slide 49: Increased Asian Production Capacity
Increased Asian Production Capacity Besi Apac, KL Malaysia • Founded 1990 • System Production since 2004 • Production of complete product portfolio • Headcount: 496 FTE Besi Leshan, China • Founded 2002 • Headcount: 259 FTE Current production capabilities • 2100 flip chip and epoxy die bonder • Mold
Slide 50: Asian Production Transfer Has Helped Reduce Break Even Revenue Levels
Asian Production Transfer Has Helped Reduce Break Even Revenue Levels Asian Production Has Leading to Lower European And Reduced Break Even Significantly Expanded Headcount & Related Costs Revenue Levels 1,800 96% 300 1,200 94% 100% 1,543 1,510 270 1,600 1,479 1,499 84% 86% 90% 1,434 1,000 963 250 2
Slide 51: Common Parts Product Redesign Has Potential to Further Reduce Cost and Improve Cycle Times
Common Parts Product Redesign Has Potential to Further Reduce Cost and Improve Cycle Times Potential Unit Cost Savings DB2100 (7%) • Magazine handler* • Wafer gripper 2200evo (11%) • Dispenser* Areas of focus: • Wafer table • Wafer Cassette Handler* • Die Ejector 8800FCQ (11%) • Control Platform Ave
Slide 52: V. Financial Review
V. FINANCIAL REVIEW June 2016 52
Slide 53: Quarterly Revenue/Order/Gross Margin Trends
Quarterly Revenue/Order/Gross Margin Trends Revenue Orders Gross Margin Adjusted Gross Margin • Cyclical quarterly revenue/order 120.0 70.0% patterns: 104.2 104.3 103.9 65.0% • Q3-15 was most recent trough 100.0 94.9 96.8 91.9 • Strong order growth in Q1-16 despite 60.0% uncertain economic environme
Slide 54: Geographic Revenue Trends
Geographic Revenue Trends 100% 90% 80% 70% 67% 67% 74% 60% 50% 40% Asia 30% 16% 18% US 20% 10% Europe 10% 13% 17% 12% 0% 3% 0% 2% Other 2013 2014 2015 € millions % % % China 62 24% 74 20% 80 23% Malaysia 20 8% 54 14% 42 12% Taiwan 53 21% 60 16% 35 10% Singapore (a) - 0% 14 4% 25 7% Korea 10 4% 25 7%
Slide 55: Quarterly Book to Bill Ratio
Quarterly Book to Bill Ratio 1.75 1.63 Besi Assembly Equipment 1.50 1.34 1.26 1.25 1.25 1.15 1.11 1.10 1.10 1.131.09 1.04 1.08 1.00 1.09 1.00 1.10 0.97 0.96 0.94 1.00 Total Semi Equipment 0.75 0.72 0.68 0.69 0.50 May 16 Mar 13 Jun 13 Sept 13 Dec 13 Mar 14 Jun 14 Sept 14 Dec 14 Mar 15 Jun 15 Sept 15
Slide 56: Base Line Operating Expense Trends
Base Line Operating Expense Trends 35 32.0 28.7 29.2 30 26.5 6.3 25.3 5.1 5.7 25 4.1 3.5 20 Other Operating Expenses Base Opex 15 25.7 23.6 22.4 23.5 21.8 10 5 0 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Baseline Opex 21.8 25.7 23.6 22.4 23.5 Other Operating Expenses Capitalization of R&D (1.5) (1.4) (1.2) (1.5
Slide 57: Quarterly Net Income Trends
Quarterly Net Income Trends Net Income ex. NR Non Recurring Net Margin ex. NR 24 40% 21 35% € 17.5 • Through cycle net margins now range 18 30% between approximately 9%-21% € € 15.5 15.5 € 3.3 15 25% (euro in millions) • Q1-16 adjusted net margin is a healthy 11.0% 12 € 9.7 20% post H2-15 industry d
Slide 58: Liquidity Trends
Liquidity Trends Cash Debt Net Cash 180 169.8 161.6 157.8 160 • Solid liquidity position 148.4 • € 169.8 million cash at 3/31/16 140 132.8 133.1 136.5 • € 4.41 per share or 16.8% of stock price (€ 26.31) 120 113.7 • Net cash of € 148.4 million, up 25.8% vs 109.0 year end 2014 (euro in millions) 100
Slide 59: Q2-16 Guidance
Q2-16 Guidance Revenue Gross Margin Operating Expenses € 79.0 49.2% € 29.2 +20% 0% 50% to to - +25% +3% 48% Q1 Q2 Q1 Q2 Q1 Q2 • Revenue +20-25% vs. Q1-16 • Gross margins 48-50% • Opex up 0-3% vs. Q1-16 • Significant sequential operating growth forecast based on revenue growth and cost/expense develo
Slide 60: Summary
Summary Leading semi assembly equipment supplier with #1 Technology leader. Best in Gaining market share in or #2 positions in fastest class product portfolio advanced packaging growing assembly segments Significant upside potential. Scalability and profitability Advanced packaging Committed to enha
Slide 61: Financial Calendar
Financial Calendar 22-Jun-16 Rabobank Investor Conference, London 29/30-Jun-16 European Midcap Event, Paris 28-Jul-16 2016 Second Quarter Results 10/11Aug-16 Canaccord Genuity Growth Conference, Boston 7/8-Sep-16 ING Benelux Conference, London 16-Sep-16 Autumn Conference Kepler Cheuvreux, Paris 27-O
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