Asmpt Limited · HKEX:522

Asmpt — ASM Pacific Technology — Q3 2017 Earnings Presentation

37 slides from Asmpt's earnings presentation, Nov 1, 2017

  1. Slide 1: 2017 Q3 Results Announcement

    2017 Q3 Results Announcement November 1, 2017

  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: Corporate Overview

    CORPORATE OVERVIEW 3 ASM Pacific Technology © 2017 page 3

  4. Slide 4: A World's Technology & Market Leader

    A World’s Technology & Market Leader 2017 LTM Group Revenue (CAGR 2007- 2017 LTM 12.1 %)  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 37.5% Automotive US$2.16B

  5. Slide 5: ASMPT Global Presence

    ASMPT Global Presence Business Centre / R&D / Sweden Manufacturing Site The Netherlands Germany Russia UK Poland Canada Czech Republic Austria Hungary Italy USA Spain France Romania China Korea Malta Japan Morocco India Hong Kong Taiwan Mexico Thailand Costa RIca Philippines Malaysia Singapore Indon

  6. Slide 6: ASMPT Major Facilities around the World

    ASMPT Major Facilities around the World New facility in Hong Kong ready by early 2018 Yishun, Singapore Munich, Germany Longgang, China (龙岗) Fuyong, China (福永) Huizhou, China (惠州) Chengdu, China (成都) Johor Bahru, Malaysia Extension of Malaysia plant Weymouth, UK Beuningen, Netherlands ready for oper

  7. Slide 7: Strategic Partner For The Electronics Assembly Industry

    Strategic Partner For The Electronics Assembly Industry 2nd Level / Board Level Assembly Carrier for chip 1st Level / Chip Level Assembly Chips and components interconnection Chip Assembly & Packaging on printed circuit Board (“Materials”) (“Back-End”) (“SMT Solutions”) Materials Back-end Equipment

  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 (2016) PAE #1 Die Bonders #2 Wire Bonders #1 Flip Chip Bonders #1 Thermal Compression Bonders (TCB) #1 LED Packaging Equipment #1 CMOS Imaging Sensors

  9. Slide 9: Q3 2017 Financial Results

    Q3 2017 Financial Results 9 ASM Pacific Technology © 2017 page 9

  10. Slide 10: Yearly Billings

    Yearly Billings Group Billings New BE EQT Billings New Record! Record! (US$ m) (US$ m) 2500 9mth YoY Growth: +23.9% 1200 9mth YoY Growth: +21.6% 2,162 1,080 2000 1000 800 1500 1,707 857 1,382 707 600 1000 400 500 200 0 0 2010 2011 2012 2013 2014 2015 2016 Q3 17 2010 2011 2012 2013 2014 2015 2016 Q3

  11. Slide 11: Quarterly Billings

    Quarterly Billings Group Billings New BE EQT Billings Record! (US$ m) (US$ m) YoY Growth: +21.8% YoY Growth: +1.1% 700 654 350 600 300 288 500 250 400 200 300 150 200 100 100 50 - - Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 10 10 11 11 12 12 13 1

  12. Slide 12: Quarterly Profits

    Quarterly Profits Group Net Profit New BE EQT Segment Profit (HK$ m) Record! (HK$ m) 1,000 YoY Growth: +49.3% 900 YoY Growth: +9.1% 863 900 800 800 700 596 700 600 600 500 400 500 300 400 200 300 100 200 - 100 (100) - (200) (100) (300) Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q

  13. Slide 13: Booking & Backlog

    Booking & Backlog New Yearly Group Bookings Record! Quarterly Group Bookings (US$ m) (US$ m) 2,500 9mth YoY Growth: +31.1% 2,315 700 YoY Growth: +31.8% 600 574 2,000 500 1,844 1,500 400 1,407 1,000 300 200 500 100 - - 2010 2011 2012 2013 2014 2015 2016 Q3 17 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

  14. Slide 14: 9mth/Q3 2017 Group Financial Highlights

    9mth/Q3 2017 Group Financial Highlights 9mth Q3 2017 2017 Margins (%) YoY QoQ YoY Gross Margin % Net Profit Margin % Bookings  31.1%  13.1%  31.8% 45% 40.6% 40% Billings  23.9%  15.5%  21.8% 35% 30% Gross Margin  295bps  38bps  123bps 25% 20% 17.6% Operating Profits  76.6%  23.0%  39.5%

  15. Slide 15: 9mth/Q3 2017 Segment Results - Back-End Equipment Business

    9mth/Q3 2017 Segment Results - Back-End Equipment Business 9mth 2017 Q3 2017 Margins (%) Gross Margin % Segment Margin % YoY QoQ YoY 50% 47.7% 45% Bookings  28.7%  23.6%  20.3% 40% 35% Billings  21.6%  6.9%  1.1% 30% 26.2% 25% Gross Margin  407bps  23bps  299bps 20% 15% 10% Segment Profits

  16. Slide 16: 9mth/Q3 2017 Segment Results - Materials Business

    9mth/Q3 2017 Segment Results - Materials Business 9mth 2017 Q3 2017 Margins (%) Gross Margin % Segment Margin % YoY QoQ YoY 18% 16% Bookings  23.2%  9.2%  6.5% 14.0% 14% 12% Billings  16.7%  3.9%  17.3% 10% 8% 7.4% Gross Margin  174bps  171bps  37bps 6% 4% Segment Profits  5.9%  33.7%  2

  17. Slide 17: 9mth/Q3 2017 Segment Results - SMT Solutions Business

    9mth/Q3 2017 Segment Results - SMT Solutions Business 9mth 2017 Q3 2017 Margins (%) Gross Margin % Segment Margin % YoY QoQ YoY 45% 39.8% 40% Bookings  37.2%  1.0%  56.2% 35% 30% Billings  30.0%  57.5%  54.5% 25% 20% 18.1% Gross Margin  273bps  41bps  74bps 15% 10% Segment Profits  112.5%

  18. Slide 18: Total Shareholder Return

    Total Shareholder Return 300% Share Buyback Program 262%  Maximum total value of HKD780m, up to 250% 4% of shares outstanding  Period: Till Next AGM 200%  Amount exercised so far: HKD24m, 0.054% of shares outstanding 150% Cash Dividend Policy 100%  Sustainable and gradually increasing 50% Return

  19. Slide 19: ASMPT Revenue Breakdown by Application Markets

    ASMPT Revenue Breakdown by Application Markets Other Semicon Dual Cameras & 3D Sensing Mobility, Comm, & IT Other SMT Optoelectronics Consumer Automotive Industrial Power Management & Energy Annual Power Management IC Forecast for Automotive Semiconductor Market Revenue (US$B) Revenue from Autonomou

  20. Slide 20: Strategic Transformation at ASMPT

    Strategic Transformation at ASMPT Shifted from purely organic growth to pursuing both Top line organic growth plus M&A TAM Moved from 100% vertical integration to increased Profitability external manufacturing/outsourcing and flexible workforce (Structural) Pursue robotics and smart manufacturing to

  21. Slide 21: 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 19.2% of the Group’s 9mth 2017 sales revenue  Top 20 customers include world’s leading IDMs, Tier 1 OSAT, major OSATs in Chin

  22. Slide 22: R&D Commitment Makes Us a Preferred Partner of Choice

    R&D Commitment Makes Us a Preferred Partner of Choice R&D expenses 200 9.4% 180 160 Q3 2017 LTM R&D 140 expenditure USD million 120 100 80  US$ 179 million 60 40  9.4% of 20 equipment sales 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 17 LTM USD1,212 million invested in R&D Package

  23. Slide 23: Pursue Robotics/Smart Manufacturing to Enhance Productivity

    Pursue Robotics/Smart Manufacturing to Enhance Productivity Automation/Robots Deployed At ASMPT Actual production cell at ASM Technology Huizhou ASM Pacific Technology © 2017 page 23

  24. Slide 24: Capital Investment

    Capital Investment US$ m 120 101 100 80 72 59 60 55 43 40 20 0 2011 2012 2013 2014 2015 2016 2017B 2017E D&A 2017 YTD ASM Pacific Technology © 2017 page 24

  25. Slide 25: Outlook

    Outlook 25 ASM Pacific Technology © 2017 page 25

  26. Slide 26: Industry Growth Forecast (2016-2018)

    Industry Growth Forecast (2016-2018) Semiconductor Industry Forecast Global Assembly & Packaging Equipment Market 40.0% 4.0% Gartner, Oct-17 19.7% 16.8% 30.0% 1.5% 20.0% 7.0% VLSI, Oct-17 19.8% 10.0% 17.6% 2.1% 0.0% 10.0% -10.0% Semiconductor 18.5% Intelligence, Sep-17 16.0% -20.0% 4.3% -30.0% 2013

  27. Slide 27: Electronic System Semi Content to set new record in 2017

    Electronic System Semi Content to set new record in 2017 Source: IC Insights, July 2017 ASM Pacific Technology © 2017 page 27

  28. Slide 28: Outlook

    Outlook  Expect Q4 Group Billings to achieve low to high teen percent YoY growth  With all 3 business segments showing positive YoY growth  Expect Q4 Group GM to come down from the Q3 level in line with lower volume  Expect Q4 Group Bookings to show a single digit percent YoY growth  Customers

  29. Slide 29: Broad-based Market Growth Drivers

    Broad-based Market Growth Drivers Dual Camera & 3D Sensing Automotive IoT Artificial Intelligence ADAS 5G Network Cloud Computing Health Care Industry 4.0 ASM Pacific Technology © 2017 page 29

  30. Slide 30: Explosion of "Connected Things" Reshaping Semi Industry

    Explosion of “Connected Things” Reshaping Semi Industry : Source: IHS Markit, Oct 2017 ASM Pacific Technology © 2017 page 30

  31. Slide 31: Increasing Electronic Content Driving More Semi Devices

    Increasing Electronic Content Driving More Semi Devices Environmental Conservation Connectivity Security AC / DC Charging Advanced Driving with Extra High Safety – ADAS Present - L0, L1, L2 Vehicles Future - L3, L,4 L5 Vehicles Human Decide Car Operation Central Computers Decide Car Operation ASM Pa

  32. Slide 32: Dual Camera and 3D Sensing as Leading Growth Drivers for CIS Market

    Dual Camera and 3D Sensing as Leading Growth Drivers for CIS Market 3D Facial Recognition  3D sensing to open up opportunities for Chatting with AI System new apps such as AR/AI  Believe 3D sensing feature will be available in some Android phones in 2018 ASM Pacific Technology © 2017 page 32

  33. Slide 33: ASMPT Sustainable Competitive Advantages

    ASMPT Sustainable Competitive Advantages  Diversified product portfolio addressing multiple applications markets  Broad and diverse customer base  Breadth and depth of enabling technologies  Investing ahead of the curve  Strong and extensive marketing/support network  Size, scale and strong fi

  34. Slide 34: ASMPT Strategic Direction

    ASMPT Strategic Direction traditional volume market advanced products packaging insensitive to technologies interconnection technologies sustainable profitability improvement SMT Solutions SMT as Second Growth Engine Strategic M&A ASM Pacific Technology © 2017 page 34

  35. Slide 35: 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  Ranked among Top 5 of the 10 BEST Chip Making Equipment Suppliers  Ranked among Top 3 of Assembly

  36. Slide 36: VLSI Awards 2017

    VLSI Awards 2017 ASM Pacific Technology © 2017 page 36

  37. Slide 37: ASM Pacific Technology © 2017 page 37

    ASM Pacific Technology © 2017 page 37

ASM Pacific Technology — Q3 2017 Earnings Presentation on 6ix