Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Investor Presentation (March 2016)
46 slides from Be Semiconductor Industries's investor presentation, March 2016
Slide 1: Investor Presentation March 2016
INVESTOR PRESENTATION March 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. Strategy IV. Financial Review V. Outlook & Summary March 2016 3
Slide 4: I. Company Overview
I. COMPANY OVERVIEW March 2016
Slide 5: Besi Overview
Besi Overview • Leading assembly equipment supplier with #1 and #2 positions in key products. 28.4% 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;
Slide 6: Company History
Company History 60% Die Attach Acquisitions 400 55% € 349.2 •2000 2002 2005 2009 48.8% 50% 300 Restructuring Revenue (€ millions) Gross Margin (%) 45% • European production transferred to Asia • Intellectual property remains in Europe • European headcount and facilities reduced 40% • Break even reve
Slide 7: Best in Class Product Portfolio
Best in Class Product Portfolio Die Attach Die Bonding Multi Module Attach Flip Chip Die Sorting Die Lid Attach • 2100 xP plus / hS New • 2200 evo • 8800 CHAMEO fan-out New • DS9000e • DLA New • 2100 sD plus / PPP plus • 2100 DS • 2200 evo plus • 8800 TCB New • WTT New • 2009 SSI • 2100 SC • 2200 ev
Slide 8: Product Positioning
Product Positioning Semiconductor Manufacturing Equipment (2014: $40.1B) Front end: $32.2B (80%) Assembly: $3.9B (10%) Test: $3.9B (10%) Semiconductor Assembly Process Dicing Die Attach Wire Bond Packaging Plating Die Sort Die Bond Wire Bond Molding Trim & Form Plating Leadframe Assembly Substrate B
Slide 9: Customer Ecosystem
Customer Ecosystem Customers OEMs End Products IDMs Subcontractors • Blue chip customer base, top 10 = 49% of 2015 revenue • Leading IDMs and subcontractors. 60/40% split • Assemble chips for leading fabless companies: Qualcomm, Broadcom, MediaTek • Long term relationships, some exceeding 45 years M
Slide 10: Current Operational Profile
Current Operational Profile Duiven & Drunen, (The Netherlands)* Cham, Radfeld, (Austria)* (Switzerland)* Chandler Suzhou Chengdu Korea Shanghai Leshan Sales Office Taiwan Shenzhen Production Site Malaysia Philippines Sales & Production Site Singapore * * R&D Site as of December 31, 2015 • Developmen
Slide 11: Summary Historical Financials
Summary Historical Financials Year Ended December 31, (€ millions, except share data) 2012 2013 2014 2015 • 2015 Results: Revenue 273.7 254.9 378.8 349.2 • Solid profit and margins maintained Orders 276.1 251.9 407.6 348.3 despite H2 market downturn • Industry leading gross and net margins Gross mar
Slide 12: Besi Market Information
Besi Market Information Symbol/ • BESI Average Daily Volume Index • Euronext Midcap AMX (Shares 000s) 400 Market • € 707.0 MM ($771.6 300 Market Profile Cap* MM) 200 100 Dividend • Pay out 40-80% of net 0 Policy income per annum 2013 2014 2015 Top 10 Shareholders By Geography (% of shares outstandin
Slide 13: Dividend Trends
Dividend Trends Dividend EPS (diluted) Total Dividend Yield (a) 2.00 12.0% 1.87 1.80 10.0% 1.60 1.50 1.40 8.1% 1.27 8.0% 1.20 1.20 Dividend yield Dividend (€) 6.5% 1.00 6.0% 1.00 0.80 0.73 5.2% 4.0% 4.3% 4.0% 0.60 0.42 0.43 0.40 0.30 0.33 0.22 2.0% 0.20 Payout Ratio: 30% 71% 77% 80% 94% 0.00 0.0% 20
Slide 14: II. Market
II. MARKET March 2016
Slide 15: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Size YoY Growth Rate 5.0 4.4 40% 4.0 3.9 3.8 4.1 4.0 3.4 3.3 (US$ billions) 3.1 28.1% 20% 3.0 14.9% 8.6% 0% 2.0 -6.6% -3.9% -9.1% -13.6% -20% 1.0 -22.4% 0.0 -40% 2011 2012 2013 2014 2015E 2016E 2017E 2018E Source: VLSI January 2016 Revenue Y
Slide 16: Assembly Equipment Market Composition
Assembly Equipment Market Composition Assembly Equipment Market * Besi Addressable Market * (2014: $3.9 billion) (2014: $1.7 billion) Lead Trim & Plating Other Form 2.0% Assembly 5.5% (Inspection, Wire Bonding Molds Dicing) 21.7% 13.5% 25.9% Die Bonding 39.7% Presses Plating 11.2% Die Attach 0.9% 59
Slide 17: Advanced Packaging Is the Future
Advanced Packaging Is the Future Greater Miniaturization Higher Accuracy Greater Complexity Fico Sawing Line Esec DB2100 High Growth End User Areas: Esec DB2009 Mobile internet, Autos, MEMS, Data Mining, Cloud Servers, FML wafer molding IoT, Wearable devices Datacon 8800 CHAMEO fan-out Fico ASM-LM D
Slide 18: Driven Primarily by Growth in Internet Connected Devices
Driven Primarily by Growth in Internet Connected Devices • 35% CAGR device growth forecast over next 5 years • Powered primarily by devices used for IoT, Data mining and Cloud applications • Positive trajectory for smart phones, wearables and automotive March 2016 18
Slide 19: Requiring Changes in Process/Equipment Development
Requiring Changes in Process/Equipment Development Front End Today => Tomorrow Transistor scaling Lithography New structures 3D Back End Assembly More contacts Smaller pitches Thinner/denser more complex packages From simple Wire Bond to BGA/Flip Chip to complex 3D structures with TSVs, Stacked stru
Slide 20: Which Has Significantly Increased Equipment Spending for <25 Nano Nodes
Which Has Significantly Increased Equipment Spending for < 25 Nano Nodes • Spending on <25 nano nodes has increased from ~15% in 2011 to an estimated 70% of total spending in 2015 • Node shift below 25 nano = new assembly equipment capacity March 2016 20
Slide 21: And Is Reflected in Besi End User Application Trends
And Is Reflected in Besi End User Application Trends 2015 Spares/ Service Computer, 15% PCs LED 22% 3% • Mobile internet devices Industrial now equal 32% of 2008 10% Besi’s end user Service revenue 2% LED Industrial 3% Mobile 10% Auto Internet Devices • Automotive has also 18% 32% increased in recen
Slide 22: New Smart Phone Designs Increase Besi's Addressable Market Potential
New Smart Phone Designs Increase Besi’s Addressable Market Potential Generation Generation Main Components Manufacturer IDM/OSAT Besi system Utilized - New 2012 2014 Processor X X Apple TSMC ->Amkor/Stats/ASE 8800FCQ, AMS-W/LM DRAM Memory X X Hynix/Micron Hynix/Micron 2100sD, FSL NAND Flash X X Hyni
Slide 23: Flip Chip/Wire Bond Process Shift Is Another Revenue Opportunity
Flip Chip/Wire Bond Process Shift Is Another Revenue Opportunity 2014* 2020* Wire Bonding Flip Chip Bonding Flip Chip $356 Flip Chip 29% Wire Bonding $538 Wire 39% Bonding $827 $861 61% 71% Flip Chip Advantages Reduces board area Offers higher speed CAGR 2014 - 2020* by up to 95%. electrical Flip Ch
Slide 24: Thermo Compression Bonding Is An Emerging Assembly Technology
Thermo Compression Bonding Is An Emerging Assembly Technology Wire Bonded BGA Stacked Die Memory Device • Besi has most advanced industry concept • 7 Axis bondhead, 2 bond heads/system • High throughput => 2x competition • User friendly compact design • Orders significantly expanded in 2015 • Compet
Slide 25: Besi Has Gained Share In Its Addressable Markets
Besi Has Gained Share In Its Addressable Markets Besi Market Share Source: VLSI, May 2015 and Besi estimates 2012 2013 2014 Total Assembly Equipment Sales 8.6% 10.6% 12.7% Besi Addressable Market 21.4% 26.0% 28.4% Total Die Attach Equipment 26.8% 31.2% 34.7% Die Bonding 29.7% 39.2% 38.7% Flip Chip 2
Slide 26: And With Leading Edge Technology Customers
And With Leading Edge Technology Customers Die Attach Packaging In USD 2012 2013 2014 2015 (a) 2012 2013 2014 2015 (a) • Customers are largest semi mfrs. • Engaged in most advanced Subcontractors ASE 67% 59% 69% 74% 36% 65% 36% 28% packaging applications Amkor 75% 84% 89% 100% 45% 11% 22% 38% JCET (
Slide 27: III. Strategy
III. STRATEGY March 2016
Slide 28: 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 29: Besi Revenue Growth Drivers
Besi Revenue Growth Drivers World tooling up for new tech cycle <20 nano TCB Increased expansion to smart phone memory and functionality logic devices Revenue Increased Growth share of Drivers New device Japanese introductions: supply chain IoT, wearables and China handsets Solar cell plating Wire b
Slide 30: Key R&D Initiatives
Key R&D Initiatives 2015 Highlights • Volume production of leading edge TCB systems • Introduction/delivery of new <5 micron flip chip and eWLB systems for higher volume production • Roll out of next generation die attach, packaging and die sorting systems with higher speed and accuracy • Introducti
Slide 31: Key Operational Initiatives
Key Operational Initiatives Initiative/Timetable 2015 2016 Transfer of certain Swiss Die Attach software, logistics and administrative functions to Singapore Transfer of die bonding production for local market from Malaysia to China Transfer of Plating Production from NL to Malaysia 10% fixed & temp
Slide 32: 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 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 1,000 963 250 235 80% 1,400 927
Slide 33: Workforce Has Become More Scalable and Flexible
Workforce Has Become More Scalable and Flexible Fixed Headcount 1,800 70% 1,543 1,479 1,510 1,499 1,600 1,434 63% 1,400 60% 60% 1,200 56% Headcount 54% 1,000 52% • Headcount varies with 50% 800 48% 46% cyclicality and seasonality of 600 44% business 400 40% 40% 37% 200 • Significant revenue ramps 0
Slide 34: Materials Cost Reduction Is Also a Key Priority
Materials Cost Reduction Is Also a Key Priority Supply Chain Actions • Qualify and select Asian Vendors • 75% of material is now purchased in Asia • Significant potential cost savings Estimated savings 2014 2015E 2016/17E Headcount € 0.9 MM € 2.8 MM € 1.0 MM Materials Cost € 2.7 MM € 1.6 MM € 1.5 MM
Slide 35: Partially Achieved Through Common Parts Product Redesign
Partially Achieved Through Common Parts Product Redesign 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 Average (9%) • Development efforts under
Slide 36: IV. Financial Review
IV. FINANCIAL REVIEW March 2016
Slide 37: Solid Profit and Margin Development In Industry Downturn
Solid Profit and Margin Development In Industry Downturn Q4-14/Q4-15 FY 2014/FY 2015 Revenue Net Income ex. NR Non Recurring Revenue Net Income ex. NR Non Recurring 450 € € 95 95% 90% € 89.0 -12.6% 400 € 85% € 378.8 -7.8% 80% € 77.8 € 349.2 350 € Gross Margin € 75 Gross Margin 75% +5.0 points 70% 43
Slide 38: 2011-2015 Quarterly Book to Bill Ratio
2011-2015 Quarterly Book to Bill Ratio 1.75 1.63 1.50 1.44 Assembly Equipment 1.34 1.26 1.25 1.10 1.01 1.10 0.97 1.08 1.00 0.94 0.98 1.00 0.95 0.81 0.75 0.71 Total Semi 0.69 Equipment 0.68 0.50 Jan Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec 16 11 11 11 11 12
Slide 39: Quarterly Revenue/Order/Gross Margin Trends
Quarterly Revenue/Order/Gross Margin Trends Revenue Orders • Cyclical quarterly revenue/order Gross Margin Adjusted Gross Margin patterns: 140 70.0% • Short term patterns due to customer 124 roadmaps, global GDP trends and 120 116 65.0% increased seasonality 111 • Industry downturn began in Q3-15 po
Slide 40: Currency Exposure Trends
Currency Exposure Trends Revenue Expenses 2013 2014 2015 YTD* ∆ vs. € 2013 2014 2015 YTD* ∆ vs. € Euro 28% 34% 29% - 34% 32% 31% - US dollar 71% 65% 70% +11.4% 7% 4% 5% +11.4% Currency Swiss franc Exposure - (2015) - - Forex 26% Financial 18% Impact 22% +10.7% Malaysian ringgit - - - 22% 37% 28% -9.
Slide 41: Base Line Operating Expense Trends
Base Line Operating Expense Trends Base Opex Other Operating Expenses 35 32.0 120 112.5 28.7 30 26.5 100 93.9 19.2 6.4 24.6 24.7 25.3 23.1 5.2 7.1 25 21.5 4.1 2.6 1.7 2.2 3.5 80 20 0.6 60 15 25.6 93.3 86.8 22.0 21.4 22.5 21.8 23.5 22.4 40 10 20.9 5 20 0 0 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4
Slide 42: Quarterly Net Income Trends
Quarterly Net Income Trends Net Income ex. NR Non Recurring Net Margin ex. NR 24 22.9 40% • € 9.7 million Q4-15 net income (€ 10.9 million 21.5 adjusted) 21 19.7 35% • +€ 3.4 million vs. Q3-15 (+€ 4.6 million 23.5 adjusted) 17.5 • -€ 10.0 million vs. Q4-14 (-€ 1.3 million 18 30% 15.5 adjusted) 7.5 3
Slide 43: Liquidity Trends
Liquidity Trends Cash Debt Net Cash 180 161.6 157.8 160 • Solid liquidity position 135.3 • € 157.8 million cash at 12/31/15 140 132.8 133.1 136.5 • € 4.10 per share or 22.1% of year end stock price (€ 18.56) 120 118.0 113.7 • Net cash of € 136.5 million, up 15.7% vs 105.4 109.0 year end 2014 (euro i
Slide 44: V. Outlook & Summary
V. OUTLOOK & SUMMARY March 2016 44
Slide 45: Q1-16 Guidance
Q1-16 Guidance Revenue Gross Margin Operating Expenses € 77.8 50.0% € 26.5 +5% 49% Up to - -5% 47% 10% Q4 Q1 Q4 Q1 Q4 Q1 • Revenue within a range of +5% to -5% vs. Q4-15 • Gross margins 47-49% range due to product mix and less favorable forex than Q4-15 • Opex +10% vs. Q4-15 due to 2015 related shar
Slide 46: 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
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