Asmpt Limited · HKEX:522
Asmpt — FY2019 Earnings Presentation
44 slides from Asmpt's earnings presentation, Feb 26, 2020
Slide 1: 2019 Annual Results Announcement
2019 Annual Results Announcement 26 February 2020 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is provided for informational These forward-looking statements reflect the Company’s current expectations, purpose only, and should not be relied upon for the purpose of making any beliefs, hopes, intentions or strategies regarding the future
Slide 3: Awards & Accolades 2019
AWARDS Awards & Accolades 2019 3
Slide 4: The World's Back-End Equipment Technology & Materials Market Leader
OVERVIEW The World’s Back-End Equipment Technology & 44.1% Market Leader 2019 Group Revenue: Materials 11.7% SMT Solutions USD 2,027m 44.2% (CAGR 2009 – 2019 12.9%) 4
Slide 5: ASMPT's Major Facilities Around The World
ASMPT’S OVERVIEW Major Facilities Around The World Regensburg Huizhou (惠州) Fuyong (福永) Longgang (龙岗) Weymouth Munich Taoyuan Sales Offices Business Centre / R&D / Beuningen Manufacturing Site Boston Hong Kong Porto Chengdu (成都) >2,000 >1,400 10 12 Global R&D Patents on leading R&D centres Manufactur
Slide 6: Three Business Segments With Leading Market Positions
Three Business Segments With OVERVIEW Leading Market Positions SMT SO L UT I O NS #2 in SMT Equipment Market BACK - E ND EQ UI PMENT 2019 Worldwide SMT Market Share: #1 in Assembly ~22% & Packaging Equipment Market Since 2002 2019 Worldwide PAE Market Share: MAT ERI AL S ~29% #3 in Leadframe Market
Slide 7: 2019 Highlights
2019 HIGHLIGHTS 2019 Highlights
Slide 8: 2019 Group Billings Highlights
2019 HIGHLIGHTS 2019 Group Billings Highlights Billings FY2019 2H2019 USD YoY USD HoH Group 2,027m -18.8% 1,099m +18.3% Group: Market recovery started in 2H19; 18.3% HoH Billings growth BE EQT: Star performers AP + CIS + AOI Back-end Equipment Segment 894m -24.4% 491m +22.0% SMT: Driven by 5G
Slide 9: Q4 Billings
2019 HIGHLIGHTS Q4 Billings QoQ Growth Across All Business Segments QoQ Growth: QoQ Growth: QoQ Growth: +11.1% +3.4% +5.0% Back-End Equipment (USD’M) SMT (USD’M) Materials (USD’M) 400 350 80 350 66 300 300 243 60 259 250 250 200 200 40 150 150 100 100 20 50 50 - - - Q1 16 Q4 16 Q3 17 Q2 18 Q1 19 Q4
Slide 10: 2019 Group Bookings
2019 HIGHLIGHTS 2019 Group Bookings FY2019 Bookings USD YoY Group 2,021m -21.5% BE EQT: Bookings outperformed peers - led by CIS and AP Back-End Equipment 911m -27.6% Segment SMT: Better than expected with 5G infrastructure offsetting weakness in Automotive Materials Segment 238m -2.5% Materia
Slide 11: Q4 Bookings – Business Segments
Q4 Bookings – Business Segments 2019 HIGHLIGHTS QoQ Growth: QoQ Growth: QoQ Growth: -31.9% +4.6% +10.2% Back-End Equipment (USD’M) SMT (USD'M) Materials (USD'M) 450 350 100 400 90 300 80 350 70 250 70 300 196 60 250 200 50 200 179 150 40 150 100 30 100 20 50 50 10 0 0 0 Q1 16 Q4 16 Q3 17 Q2 18 Q1 19
Slide 12: 2019 Group GM & Profitability
2019 HIGHLIGHTS 2019 Group GM & Profitability Group: Lower sales and lower Gross Margin FY2019 YoY 2H2019 HoH production capacity utilization Group 34.8% -326 bps 34.8% -5bps BE EQT: Lower sales and lower production capacity utilization Back-End Equipment 41.1% -472 bps 42.1% +203bps Segment S
Slide 13: Back-End Equipment Segment
2019 HIGHLIGHTS Key Highlights: Back-End Equipment Segment QoQ Bookings Growth: -31.9% Significantly outperformed market: Strong market position, higher AP, CIS and Power Management demand Advanced Packaging > 20% of FY19 BE EQT Revenue Including CIS, collectively contributed >50% of FY19 BE E
Slide 14: SMT Segment
2019 HIGHLIGHTS Key Highlights: SMT Segment SMT performance exceeded expectation, driven by: 5G infrastructure and handsets demands Data centre infrastructure in China Expanded market share in China smartphone supply chain Continued cost reduction efforts: Increasing final assembly work
Slide 15: Materials Segment
2019 HIGHLIGHTS Key Highlights: QoQ Bookings Growth: +10.2% Materials Segment Quarterly Materials Bookings (USD'M) Consecutive 4 quarters of Quarterly Bookings growth; a 100 recovery in the semiconductor cycle 90 80 70 GM and profitability expected to improve due to 60 following restructuring in
Slide 16: R&D Commitment Makes Us a Preferred Partner of Choice
2019 HIGHLIGHTS R&D Commitment Makes Us a Preferred Partner of Choice R&D expenses 250 12.2% 2019 R&D 200 expenditure USD million 150 US$ 218 million 100 12.2% of 50 Equipment Sales 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 USD1,641 million invested in R&D Package I
Slide 17: An Extensive Customer Base
2019 HIGHLIGHTS An Extensive Customer Base 2019 Geographical Distribution of Revenue No single customer accounted for more than 10% Vietnam, 3.8% Korea, 3.1% of Group revenue Taiwan, 3.8% Thailand, 2.7% Japan, 4.3% Malaysia, 6.6% Top 5 customers accounted for 15% of Group’s Philippines, 2.1% Ind
Slide 18: FY2019 Revenue Breakdown by Application Markets
Q2 HIGHLIGHTS FY2019 Revenue Breakdown by Application Markets FY 2019 Billing by Market Application Top 5 Customers Revenue Contribution Mobility, Comm. & IT Other Semicon 20% FY19 Billing 15% US$2.0B 10% Optoelectronics Other SMT 5% Automotive Consumer Power Management & Energy Industrial 0% More R
Slide 19: Sustainable and Gradually Increasing Dividends
2019 HIGHLIGHTS Sustainable and Gradually Increasing Dividends Dividends Per Share (HKD) & Dividend Payout Ratio 2.00 400% 1.80 350% 1.60 1.40 300% 1.40 1.30 1.30 1.30 1.20 250% 1.20 1.10 1.00 1.00 200% 0.80 0.80 0.70 150% 0.60 0.40 100% 0.40 0.20 50% 0.00 0% 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18
Slide 20: ASMPT's Enabling Solutions
TRENDS Data-Centric Era will spur Semiconductor Demand Collect Transmit Store Analyse Visualise Camera, 3D Sensing, 5G, WiFi, LiFi Big Data Centre, AI, TPU, Data AR, VR, Micro Industry IoT, Sensor, Cloud Computing, Analytics, HPC LED, Mini LED LIDAR Memory ASMPT’s Enabling • CMOS Imaging • Silicon P
Slide 21: Growth Drivers For ASMPT
APPLICATIONS China Supply Chain Localization 2019 & 2020 5G Growth Drivers For ASMPT CMOS Imaging Sensor Advanced Packaging 21
Slide 22: 5G Will Transform the World Beyond Our Imagination
5G Will Transform the World Beyond Our Imagination Infrastructure 2019-2025: 25-30mil New 5G Base Stations Terminal Source: Topology Research Institute 2019 2023: 417mil New 5G Handsets Source: IDC, 2019 Big Data Cloud Servers ASMPT Solutions for 5G: Smart Consumer “Power” Up All Industries 50 MEMS
Slide 23: Broad-Based Applications In CIS Market
Broad-Based Applications In CIS Market Worldwide CIS Unit Shipment CAGR (2020 – 2023) Source: Yole, Sep 2019 13% Autonomous Vehicles CIS Market to Reach US$24B by 2024 Smart Source: Yole, Q3 2019 Homes & Cities $7B 1X 10X $17B $17B Security with Facial Recognition 2019F 2024F Advanced CIS Comparable
Slide 24: Advanced Packaging Enables Heterogeneous Integration
Advanced Packaging Enables Heterogeneous Integration S I P LACE CA NE X X LAS E R 1 2 05 Die Attach & SMT PVD | ECD Laser Separation Wafer & Panel Recon Bumping, TSV & RDL Wafer Dicing & Grooving IPD tool CAGR (2019 – 2023) O RCAS End Applications: NUCLE US X P M NUCLE US Compression mold HBM Bonder
Slide 25: Future Growth Drivers for OPTO Business
Future Growth Drivers for OPTO Business MiniLED Market Size CAGR (2019 – 2025) Market Size CAGR (2019 – 2025) MicroLED Medium to Large RGB / BLU Display ~ 35% ~ 131% Small Gadget & Transparent Display Fast Growing Applications Source: LEDInside, Sep 2019 63% 35% 31% 118% 91% 75% Automotive Digital L
Slide 26: Booming Applications in Photonics Market
APPLICATIONS Booming Applications in Photonics Market Medical Silicon Photonics-based Transceivers Revenue CAGR (2018 – 2024) ~ 44.5 % Industrial Communication Intra-car Interconnects Defence & Aerospace LIDAR & Sensors 4,144 Data Center Telecommunication Interconnects 455 2018 2019 2020 2021 2022 2
Slide 27: IIoT & Smart Manufacturing Powered Up by 5G Network
IIoT & Smart Manufacturing Powered Up by 5G Network Factory in Factory in Location A Location C Industrial IoT Factory in Location B ~ 24% CAGR (2019 – 2023) Source: Marketwatch, Sep 2019 Factory in Location D 27
Slide 28: How Will 'Smart Cars' Drive ASMPT's Growth?
5G to Cloud Connectivity Power Management Vehicle-to-X (Vehicle, Infrastructure, Network, Battery Technology for thermal management Devices) communications Thermal management (e.g. Ag Enable “V2X” communications Sintering) will play important role How will ‘Smart Cars’ Drive ASMPT’s Growth? Sensors
Slide 29: Outlook
Outlook ASM &/1 Pacific Technology
Slide 30: Outlook
OUTLOOK Outlook Q1 Group Bookings Booking momentum prior to CNY very strong for all 3 segments with SMT Bookings achieving new record for the month of January Booking momentum tempered by COVID-19; still cautiously optimistic Q1 Group Bookings would achieve YoY growth Difficult to forecast as
Slide 31: A Myriad of Growth Drivers for 2020 & Beyond
OUTLOOK A Myriad of Growth Drivers for 2020 & Beyond 5G infrastructure and handsets: multi-year / multi-country driver Strong pick-up in demand from Chinese manufacturers to localize supply chains New market opportunities for Advanced Packaging, Silicon Photonics, Industrial IOT, mini and micr
Slide 32: Industry Growth Forecast (2020)
Industry Growth Forecast (2020) OUTLOOK Semiconductor Industry Forecast Global Assembly & Packaging Equipment Market 40% 30% Semiconductor Intelligence, Sept-19 8% 20% IHS Markit, July-19 6.0% 10% 0% IC Insights, July-19 6.0% -10% -20% Mike Cowan, Sept-19 7.8% -30% -40% WSTS, Aug-19 4.8% 2013 2014 2
Slide 33: Recent Awards & Recognition
AWARDS Recent Awards & Recognition VLSI Awards 2019 Latest 33
Slide 34: Financial Highlights
2019 Financial Highlights | ASM &l Pacific Technology sss ss ss
Slide 35: 2019 Group Bookings
FINANCIAL REVIEW 2019 Group Bookings QoQ Growth: Q4 2019 Bookings 2H 2019 Bookings -13.3% USD YoY QoQ USD YoY HoH 800 700 600 Group 445m -6.1% -13.3% 959m -12.2% -9.7% 500 400 300 Back-End EQT 179m -23.2% -31.9% 441m -11.2% -6.1% 200 Segment 100 0 Materials Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 70m +7
Slide 36: 2019 Group Billings
FINANCIAL REVIEW 2019 Group Billings QoQ Growth: Q4 2019 Billings 2H 2019 Billings +7.0% USD YoY QoQ USD YoY HoH Group 568m -6.7% +7.0% 1,099m -13.3% +18.3% 600 400 Back-End EQT 259m +10.8% +11.1% 491m -8.4% +22.0% 200 Segment 0 Materials Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 66m +10.2% +5.0% 129m -5.
Slide 37: 2019 Group Financial Highlights
FINANCIAL REVIEW 2019 Group Financial Highlights FY 2019 2H 2019 Q4 2019 FY 2019 YoY HoH YoY QoQ YoY Bookings (USD) 2,021m -21.5% -9.7% -12.2% -13.3% -6.1% Revenue (USD) 2,027m -18.8% +18.3% -13.3% +7.0% -6.7% Gross Margin 34.8% -326 bps -5 bps -73 bps +3 bps +181 bps EBIT (HKD) 1,191m -62.2% +39.9%
Slide 38: 2019 Segment Results – Back-End EQT
FINANCIAL REVIEW 2019 Segment Results – Back-End EQT FY2019 2H 2019 Q4 2019 FY 2019 YoY HoH YoY QoQ YoY Bookings (USD) 911m -27.6% -6.1% -11.2% -31.9% -23.2% Billings (USD) 894m -24.4% +22.0% -8.4% +11.1% +10.8% Gross Margin 41.1% -472 bps +203 bps -128 bps -263 bps -226 bps Segment Profit (HKD) 477
Slide 39: 2019 Segment Results – Materials
FINANCIAL REVIEW 2019 Segment Results – Materials FY2019 2H 2019 Q4 2019 FY 2019 YoY HoH YoY QoQ YoY Bookings (USD) 238m -2.5% +27.2% +42.4% +10.2% +75.6% Billings (USD) 236m -17.8% +19.5% -5.9% +5.0% +10.2% Gross Margin 10.1% -135 bps -159 bps -15 bps -187 bps +79 bps Segment Profit (HKD) 58m -48.7
Slide 40: 2019 Segment Results – SMT Solutions
FINANCIAL REVIEW 2019 Segment Results – SMT Solutions FY2019 2H 2019 Q4 2019 FY 2019 YoY HoH YoY QoQ YoY Bookings (USD) 872m -18.7% -21.1% -23.5% +4.6% -2.7% Billings (USD) 897m -12.6% +14.5% -19.5% +3.4% -22.8% Gross Margin 34.9% -154 bps -184 bps -28 bps +282 bps +521 bps Segment Profit (HKD) 927m
Slide 41: Free Cash Flow and Capital Investment
Free Cash Flow and Capital Investment FINANCIAL REVIEW Free Cash Flow (HK$ m) 2,500 2116 2,000 1,500 1,000 500 0 2013 2014 2015 2016 2017 2018 2019 Capital Investment (US$ m) 200 175 150 125 100 75 50 104 88 90 72 82 82 80 25 55 0 _ 2015 . , 2016 ^ * 2017 - = 2018 + # 2019 2019B 12 1 13 2020B 2020E
Slide 42: Financial Metrics
Financial Metrics FINANCIAL REVIEW Return on Invested Capital (ROIC) Return on Equity (ROE) 40% 30% 35% 25% 30% 20% 25% 20% 15% 15% 10% 10% 5% 5% 0% 0% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 42
Slide 43: Working Capital Management
Working Capital Management FINANCIAL REVIEW 12,000 Working Capital 300 Cash Conversion Cycle (Days) 10,000 250 8,000 200 HKD millions 6,000 150 4,000 100 2,000 50 0 0 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Accounts Receivable 7,000 Inventory 6,000 6,000 5,000 5,000 HKD millions
Slide 44: Enabling the Digital World
NSN ANS BS Pacific Technology \ ENABLING THE DIGITAL WORLD