Asmpt Limited · HKEX:522

Asmpt — H1 2018 Earnings Presentation

58 slides from Asmpt's earnings presentation, Jul 25, 2018

  1. Slide 1: 2018 Interim Results Announcement

    2018 Interim Results Announcement July 25, 2018

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this presentation is provided for informational purpose only, and should not be relied upon for the purpose of making any investment or for any other purpose. Some of the information used in preparing this presentation was obtained from third parties or public

  3. Slide 3: ASMPT Recognized as TOP 100 Global Tech Leaders

    ASMPT Recognized as TOP 100 Global Tech Leaders “The Top 100 Global Technology Leaders are the organizations poised to propel the future of technology”, Brian Scanlon, Chief Strategy Officer Thomson Reuters, 2018 The ONLY Back-end Equipment Supplier Being Recognized ASM Pacific Technology © 2018 pag

  4. Slide 4: Corporate Overview

    CORPORATE OVERVIEW 4 ASM Pacific Technology © 2018 page 4

  5. Slide 5: A World's Technology & Market Leader

    A World’s Technology & Market Leader Q2 2018 LTM Group Revenue (CAGR 2008- Q2 2018 LTM 13.7 %)  A leading Integrated Solutions Provider in the semiconductor assembly and packaging industry as SMT well as in the SMT solutions market Solutions  A leading player for CIS, LED, and 39.1% Automotive US$

  6. Slide 6: ASMPT Global Presence

    ASMPT Global Presence Business Center / R&D / Germany (Regensburg) Manufacturing Site Germany (Munich) Sweden Russia UK Austria Poland Canada The Czech Republic Hungary Netherlands Italy USA Spain France Romania China Korea Malta Japan Morocco India Hong Kong Taiwan Mexico Thailand Costa RIca Philip

  7. Slide 7: ASMPT Major Facilities around the World

    ASMPT Major Facilities around the World Hong Kong Yishun Munich Regensburg Longgang (龙岗) Fuyong (福永) Huizhou (惠州) Chengdu (成都) TaoYuan Weymouth Beuningen Johor Bahru Extension of Malaysia plant ready for operation by 2019 ASM Pacific Technology © 2018 page 7

  8. Slide 8: Three Business Segments With Leading Market Positions

    Three Business Segments With Leading Market Positions Worldwide Market Position & Share Back-end Assembly & Packaging ~25% Equipment Equipment Market (2017) PAE #1 Die Bonders #2 Wire Bonders #1/2 Flip Chip Bonders #1 Thermal Compression Bonders (TCB) #1 LED Packaging Equipment #1 CMOS Imaging Senso

  9. Slide 9: 2018 1H/Q2 Highlights

    2018 1H/Q2 Highlights 9 ASM Pacific Technology © 2018 page 9

  10. Slide 10: Strong 1H/Q2 2018 Bookings/Billings Growth

    Strong 1H/Q2 2018 Bookings/Billings Growth 1H Bookings 1H Billings YoY HoH YoY HoH Back-end Equipment  16.9%  60.9%  14.4%  20.1% Materials  7.5%  12.6%  12.1%  8.7% SMT Solutions  25.3%  22.9%  24.6%  16.4% Group  16.7%  38.4%  17.5%  3.0% Q2 Bookings Q2 Billings YoY QoQ YoY QoQ Bac

  11. Slide 11: ASMPT Entering a High Growth Period

    ASMPT Entering a High Growth Period Group Half Yearly Billings 1H18 Rev (US$ m) vs 1H08 3.29x 1,500 1,400 1,300 1,227 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 - 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12

  12. Slide 12: Record High Quarterly Operating Profits

    Record High Quarterly Operating Profits Group Quarterly Operating Profits ↑4.27x (HK$’m) vs 1H05- New 1H09 Ave Record! 1,400 1,179 1,200 1,000 800 600 400 200 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 ASM Pac

  13. Slide 13: Major Drivers for Strong 1H 2018 Bookings

    Major Drivers for Strong 1H 2018 Bookings Back-end SMT Solutions Power Management IoT IC / Strong Europe Discrete Market Smartphones Automotive Industrial Industrial General Lighting Large Display Panel LED Automotive Dual Camera 3D Sensing CIS China Smartphones ASM Pacific Technology © 2018 page 13

  14. Slide 14: 1H/Q2 2018 Group Financial Highlights

    1H/Q2 2018 Group Financial Highlights Q2 2018 1H 2018 YoY QoQ YoY HoH Bookings  10.1%  3.5%  16.7%  38.4% Billings  19.1%  21.3%  17.5%  3.0% Gross Margin  223bps  567bps  17bps  68bps EBIT  31.4%  58.0%  22.5%*  14.7% Net Profit  4.1%  27.0%  9.4%*  6.2% Net Profit Margin  214b

  15. Slide 15: Q2 2018 Segments Highlights

    Q2 2018 Segments Highlights Back-end Equipment SMT Solutions Materials Segment Segment Segment Q2 2018 YoY QoQ YoY QoQ YoY QoQ Bookings  8.4%  12.9%  3.3%  5.5%  14.1%  8.0% Billings  17.6%  28.8%  7.1%  2.1%  26.3%  17.8% Gross Margin 278bps 649bps 32bps 14bps 115bps 408bps Segmen

  16. Slide 16: 1H 2018 Segments Highlights

    1H 2018 Segments Highlights Back-end Equipment SMT Solutions Materials Segment Segment Segment 1H 2018 YoY HoH YoY HoH YoY HoH Bookings  16.9%  60.9%  7.5%  12.6%  25.3%  22.9% Billings  14.4%  20.1%  12.1%  8.7%  24.6%  16.4% Gross Margin 59bps 59bps 38bps 35bps 40bps 117bps Segme

  17. Slide 17: Q2 2018 Group Financial Highlights

    Q2 2018 Group Financial Highlights Billings Bookings (US$ m) YoY Growth: +19.1% New YoY Growth: +10.1% Record! (US$ m) 800 QoQ Growth: +21.3% 800 QoQ Growth: -3.5% 728 672 700 700 600 600 500 1H 16 1H 17 500 400 400 300 300 200 200 100 100 0 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  18. Slide 18: 1H 2018 Group Financial Highlights

    1H 2018 Group Financial Highlights YoY Growth: +17.5% YoY Growth: +16.7% Billings Bookings (US$ m) HoH Growth: +3.0% New (US$ m) HoH Growth: +38.4% New Record! Record! 3,000 3,000 2,553 2,423 2,500 2,500 1H 18 1H 18 2,000 2,000 1H 17 1H 17 1,227 1,482 1,053 1,269 1,500 1,500 1,000 1,000 500 500 - -

  19. Slide 19: ASMPT is Well Positioned with expected entry to High Growth Period

    ASMPT is Well Positioned with expected entry to High Growth Period 19 ASM Pacific Technology © 2018 page 19

  20. Slide 20: Key Strategies for Sustainable Growth & Profitability

    Key Strategies for Sustainable Growth & Profitability INVEST IN GAIN NEW STRATEGIC MARKET GROWTH M&A SHARE AREAS  Wire bonding  CMOS Image Sensor  SMT Placement  Die bonding  Automotive  SMT Printing  Lead Frames  Power Management  LASER Grooving / Dicing  SMT  Advanced Packaging  MIS 

  21. Slide 21: Dawn of the Data Centric Era

    Dawn of the Data Centric Era Source: VLSI Research, ISS US, January 2018 ASM Pacific Technology © 2018 page 21

  22. Slide 22: Huge amounts of Data will Spur Semiconductor Demand

    Huge amounts of Data will Spur Semiconductor Demand WLFO WLFO LiFi AI Silicon Photonics WiFi PLFO TPU Data Analytics 5G Transmit LASER Grooving WB Analyse HPC TCB Advanced Packaging Advanced Packaging Active Alignment Precision Die Attach 3D Sensing IIOT AR TCB Camera Collect Silicon Display IOT Pho

  23. Slide 23: Technology Roadmap - Advanced Packaging

    Technology Roadmap - Advanced Packaging Thermal Compression Bonding (TCB) Wire Bond / Flip Chip Fan Out - WLP / PLP SoC Heterogeneous SiP Integration Interconnection Technology 16 > 7 nm < 7 nm 14 Nanometer (nm) 12 10 8 6 4 2 0 2014 2016 2018 2020 2022 2024 2026 Mobile Memory Artificial TSV High Ban

  24. Slide 24: ASMPT is Covering All Interconnection Technologies

    ASMPT is Covering All Interconnection Technologies Total Semi. Wire Bond Flip Chip Fan Out 3D TSV Wafers  Wire Bonding  Flip Chip/  NUCLEUS/ NOVA  TCB  Die Bonding NOVA Plus/ Plus Fan Out2  Laser AFC Plus2  ORCAS  PVD1  TCB  SUNBIRD  ECD1  PVD1  Laser  ECD1  CA  PVD1 Source: Prismark

  25. Slide 25: ASMPT is Recognized by Customers as Leader in Advanced Packaging

    ASMPT is Recognized by Customers as Leader in Advanced Packaging  ASMPT is involved in most of our customers’ development programs in Advanced Packaging  ALSI Dicing and Grooving business performed very well this year  1H18 Billings and Bookings had surpassed full year 2017 Billings and Bookings

  26. Slide 26: Data is the New Oil

    DATA is the NEW OIL Si-Photonics is Key Enabling Technology for High Speed Data Transfer within and between Data Centres 450 400G 400 44 Zettabytes (ZB) 1 ZB = 1 Trillion GB Sensor & Devices 350 Images / Gap Multimedia Today 300 Text Bandwidth / G Enterprise Traditional Data 250 2010 2018 2025 Data

  27. Slide 27: An Unparalleled Product Portfolio for Advanced Packaging

    An Unparalleled Product Portfolio for Advanced Packaging FIREBIRD SIPLACE CA NUCLEUS ORCAS LASER 1205 SUNBIRD (TCB) (SiP Pick & Place) (FO WLP & PLP – Pick & Place) (Fan-out Molding) (Singulation ) (WLP Test & Pack) Investing Ahead of the Curve NEXX Conductor FO/FI NEXX StratusTM P500 AMICRA NOVA Pl

  28. Slide 28: Technology Roadmap for CIS/AA

    Technology Roadmap for CIS/AA Multi Camera for Car Wide FOV 3D Sensing Folded Camera HD+AF Camera Dual Camera Fixed Focus Camera Depth Camera Triple Camera Bokeh Low Light 120° FOV Tele Photo Driver monitor system Face recognition Featured phone Smartphone / Smart Device Drone Pokemon Smart Home Aut

  29. Slide 29: Technology Roadmap for Display Applications

    Technology Roadmap for Display Applications Without With Local Dimming Local Dimming Wearables Small – Mid Size Large Displays with Extra Large Display Smartphones | Tablet Displays Backlight True RGB color Walls with True RGB Mobile Gadget Local Dimming color Video Wall MiniLED (Full Colour) LCD TV

  30. Slide 30: New Target Market for ASMPT -- Memory

    New Target Market for ASMPT -- Memory  Wire Bonding System (NAND)  LASER Grooving & Dicing (thin wafer)  TCB (high bandwidth memory)  WLFO / PLFO ASM Pacific Technology © 2018 page 30

  31. Slide 31: Continuing to Pursue Strategic M&A Targets

    Continuing to Pursue Strategic M&A Access to ASMPT’s resources leading to accelerated growth Targets Best of both worlds: Access to good ASMPT technologies now Access to leading backed by a strong technologies & Customers company accelerate penetration into new growth markets ASM Pacific Technology

  32. Slide 32: Continue To Build Business On An Extensive Customer Base

    Continue To Build Business On An Extensive Customer Base  No single customer accounted for more than 10% of the Group’s revenue  Top 5 customers collectively accounted for 19.6% of the Group’s 1H 2018 sales revenue  Top 20 customers include world’s leading IDMs, Tier 1 OSAT, major OSATs in China,

  33. Slide 33: Outlook

    OUTLOOK 33 ASM Pacific Technology © 2018 page 33

  34. Slide 34: Industry Growth Forecast (2017-2018)

    Industry Growth Forecast (2017-2018) Semiconductor Industry Forecast Global Assembly & Packaging Equipment Market 40% 12.4% 9.5% SIA/WSTS, Jun-18 30% 21.6% 20% 14.9% 13.1% VLSI, Jun-18 10% 22.2% 0% 16.0% Semiconductor 12.0% -10% Intelligence, Jun-18 21.0% -20% 11.8% 7.5% -30% Gartner, Apr-18 2013 20

  35. Slide 35: Semiconductor Industry Growth Forecast (2018-2019)

    Semiconductor Industry Growth Forecast (2018-2019) Source: SIA/WSTS, June 2018 ASM Pacific Technology © 2018 page 35

  36. Slide 36: Semi Content in Electronic Systems Forecast to Reach 31.4% in 2018

    Semi Content in Electronic Systems Forecast to Reach 31.4% in 2018 ASM Pacific Technology © 2018 page 36

  37. Slide 37: Semiconductor Shipments Forecast to Exceed 1 Trillion Devices in 2018

    Semiconductor Shipments Forecast to Exceed 1 Trillion Devices in 2018 Source: IC Insights, January 2018 ASM Pacific Technology © 2018 page 37

  38. Slide 38: Outlook

    Outlook  Expect 2018 to be a year of growth for the Group compared with 2017 and anticipate Group Billings to set new record  Unless market conditions deteriorate drastically in 2H18  Anticipate Q3 Group Billings to be in range of US$650M-US$700M, given the strong backlog  Expect QoQ improvement

  39. Slide 39: ASMPT Sustainable Competitive Advantages

    ASMPT Sustainable Competitive Advantages  Multiple product growth drivers (and a strong leader in a few of these drivers including CIS/AA, LED, Automotive, TCB)  Diversified product portfolio addressing multiple applications markets  Unique and comprehensive product portfolio in Advanced Packagin

  40. Slide 40: 2018 Q2 Financial Results

    2018 Q2 FINANCIAL RESULTS 40 ASM Pacific Technology © 2018 page 40

  41. Slide 41: ASMPT Revenue Breakdown by Application Markets (1H 18)

    ASMPT Revenue Breakdown by Application Markets (1H 18) Mobility, Comm & IT, Optoelectronics and Automotive % of Group Revenue 52% 50% 2017 1H 2018 Multiple Application Markets is a key strategy ASM Pacific Technology © 2018 page 41

  42. Slide 42: Q2 2018 Quarterly Billings

    Q2 2018 Quarterly Billings Group Billings New BE EQT Billings New Record! Record! (US$ m) (US$ m) QoQ Growth: +21.3% QoQ Growth: +28.8% 700 672 400 363 YoY Growth: +19.1% YoY Growth: +17.6% 600 350 500 300 250 400 200 300 150 200 100 100 50 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q

  43. Slide 43: Q2 2018 Booking, Backlog and Segment Profits

    Q2 2018 Booking, Backlog and Segment Profits Q2 2018 Booking Quarterly Group Bookings (YoY % Growth) (US$ m) 800 QoQ Growth: -3.5% 728 Group 10.1% 700 YoY Growth: +10.1% 600 500 BE EQT 8.4% 400 300 Materials 3.3% 200 100 - SMT 14.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1

  44. Slide 44: 1H/Q2 2018 Segment Results – Back-End Equipment Business

    1H/Q2 2018 Segment Results – Back-End Equipment Business Q2 2018 QoQ YoY 1H 2018 HoH YoY Bookings (USD) 354.2m  12.9%  8.4% 760.9m  60.9%  16.9% Billings (USD) 362.7m  28.8%  17.6% 645.3m  20.1%  14.4% Gross Margin 50.8%  649bps  278bps 48.0%  59bps  59bps Segment Profit (HKD) 861.9m  7

  45. Slide 45: 1H/Q2 2018 Segment Results – Back-End Equipment Business

    1H/Q2 2018 Segment Results – Back-End Equipment Business Yearly Billings Quarterly Billings (US$ m) YoY Growth: +14.4% New (US$ m) YoY Growth: +17.6% New Record! Record! 1,400 HoH Growth: +20.1% 450 QoQ Growth: +28.8% 1,184 400 363 1,200 350 1,000 1H 17 1H 18 300 569 645 800 250 600 200 150 400 100

  46. Slide 46: 1H/Q2 2018 Segment Results – Materials Business

    1H/Q2 2018 Segment Results – Materials Business Q2 2018 QoQ YoY 1H 2018 HoH YoY Bookings (USD) 77.5m  5.5%  3.3% 150.9m  12.6%  7.5% Billings (USD) 76.1m  2.1%  7.1% 151.0m  8.7%  12.1% Gross Margin 13.3%  14bps  32bps 13.2%  35bps  38bps Segment Profit (HKD) 44.9m  14.3%  29.7% 84.1m

  47. Slide 47: 1H/Q2 2018 Segment Results – Materials Business

    1H/Q2 2018 Segment Results – Materials Business Yearly Billings Quarterly Billings YoY Growth: +7.1% (US$ m) YoY Growth: +12.1% New (US$ m) New Record! 350 100 QoQ Growth: + 2.1% Record! HoH Growth: + 8.7% 290 90 300 76 80 250 1H 18 70 1H 17 136 151 60 200 50 150 40 100 30 20 50 10 - - 2013 2014 201

  48. Slide 48: 1H/Q2 2018 Segment Results – SMT Solutions Business

    1H/Q2 2018 Segment Results – SMT Solutions Business Q2 2018 QoQ YoY 1H 2018 HoH YoY Bookings (USD) 296.1m  8.0%  14.1% 570.1m  22.9%  25.3% Billings (USD) 232.7m  17.8%  26.3% 431.0m  16.4%  24.6% Gross Margin 41.3%  408bps  115bps 39.4%  117bps  40bps Segment Profit (HKD) 339.5m  69.2%

  49. Slide 49: 1H/Q2 2018 Segment Results – SMT Solutions Business

    1H/Q2 2018 Segment Results – SMT Solutions Business Yearly Billings YoY Growth: +24.6% New Quarterly Billings YoY Growth: +26.3% Record! (US$ m) (US$ m) HoH Growth: - 16.4% 948 QoQ Growth: +17.8% 1,000 350 900 300 800 1H 18 1H 17 431 233 700 349 250 600 200 500 150 400 300 100 200 50 100 - - 2013 20

  50. Slide 50: Return of Capital to Shareholders

    Return of Capital to Shareholders Dividend Per Share (HK cents) Interim (HK cents) Final (HK cents) Dividend paid Share buyback 250 1,600 1,357 1,400 1,288 210 190 1,200 305 349 130 1,000 926 140 130 HKD m 800 110 40 600 521 85 487 1,052 939 400 50 120 130 260 100 80 80 200 35 - 2013 2014 2015 2016

  51. Slide 51: Free Cash Flow and Capital Investment

    Free Cash Flow and Capital Investment Free Cash Flow (HK$ m) 2000 1500 1000 437 500 308 0 2013 2014 2015 2016 2017 1H 2018 Capital Investment (US$ m) 150 136 125 19 101 100 19 75 117 50 72 82 25 57 55 61 50 45 0 ASM Pacific Technology © 2018 page 51

  52. Slide 52: Financial Metrics

    Financial Metrics Return On Invested Capital (ROIC) Return On Equity (ROE) 40% 30% 35% 25% 24% 30% 30% 20% 25% 20% 15% 15% 10% 10% 5% 5% 0% 0% 2013 2014 2015 2016 2017 1H2018 2013 2014 2015 2016 2017 1H2018 Annualized Annualized ASM Pacific Technology © 2018 page 52

  53. Slide 53: Working Capital Management

    Working Capital Management Working Capital Cash Conversion Cycle (Days) 12,000 HKD millions 248 10,000 8,000 6,000 4,000 2,000 0 2013 2014 2015 2016 2017 1H 2018 2013 2014 2015 2016 2017 1H 2018 Days Sales Outstanding* Inventory Turnover 100 4.5 90 80 70 3.0 60 50 40 1.5 30 20 10 0 0.0 2013 2014 201

  54. Slide 54: Awards & Recognition

    AWARDS & RECOGNITION 54 ASM Pacific Technology © 2018 page 54

  55. Slide 55: Recent Awards & Recognition

    Recent Awards & Recognition  Technology Achievement Grand Award of HKIA 2017 (for the third time) Federation of HK Industries  Directors of the Year Awards 2017 Hong Kong Institute of Directors  Hong Kong Outstanding Enterprises 2017 HK Economic Digest  2017 All Stars of the Semiconductor Indust

  56. Slide 56: Recent Awards & Recognition

    Recent Awards & Recognition  Factory of the Year 2016 Award (for SMT) by Produktion/AT Kearney  Ranked among Top 10 of Best Managed HK Companies  Ranked among Top 10 of Best at Investor Relations  2017 & 2018 “Triple Crown” with RANKED 1st/10 BEST/THE BEST Suppliers Awards from VLSIresearch  20

  57. Slide 57: VLSI Awards 2018

    VLSI Awards 2018 ASM Pacific Technology © 2018 page 57

  58. Slide 58: ASM Pacific Technology © 2018 page 58

    ASM Pacific Technology © 2018 page 58

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