Amkor Technology, Inc. · NASDAQ:AMKR
Amkor Technology — Investor Presentation (May 2010)
19 slides from Amkor Technology's investor presentation, May 12, 2010
Slide 1: Amkor Investor Presentation May 2010
Amkor Investor Presentation May 2010
Slide 2: Disclaimer
2 Disclaimer Forward Looking Statement Disclaimer All information and other statements contained in this presentation, other than statements of historical fact, constitute forward looking statements within the meaning of federal securities laws. These forward-looking statements involve a number of r
Slide 3: Amkor Overview
3 A global leader in the growing assembly and test industry Significant size and scale ($2.4B revenues in LTM Q1'10) Industry innovator with broad offering of package design, packaging and test services Diversified global customer base in multiple electronics end markets Strategically positioned man
Slide 4: Outsourcing is Increasing in Importance
4 Outsourcing is Increasing in Importance Total Outsourced Backend Revenue ($ in billions) Outsourced Backend Revenue as % of Total Backend Revenue '09-'14 CAGR: 12.2% Source: Gartner, March 2010 Industry Analyst 2010 Growth Report Date IC Insights +28% Apr. 2010 Semico Research +24% Feb. 2010 Futur
Slide 5: Broad Offering of Packaging and Test Services
5 Broad Offering of Packaging and Test Services Chip Scale Packaging ("CSP") Small form factor greater I/O density Ball Grid Array Packaging ("BGA") High performance and large number of interconnects Leadframe Packaging Enhanced price and performance characteristics Probe and Test Supporting advance
Slide 6: Industry Innovator and Technology Leader
6 Industry Innovator and Technology Leader Moore's Law impact on packaging: IC feature size reductions drive smaller form factor and higher I/O density MLF ChipArray BGA Flip Chip CSP Flip Chip BGA PoP FusionQuad Hybrid SCSP FP Cu Pillar FCMBGA TMV PoP TSV Amkor recognized for 2009 Global Frost & Su
Slide 7: Deep Ties to Tier-I Semiconductor Companies Serving Diverse Electronics End Markets
7 Deep Ties to Tier-I Semiconductor Companies Serving Diverse Electronics End Markets Consumer 0.26 Computing 0.14 Networking 0.14 Other 0.09 Communications 0.37 Consumer Gaming, Set-Top Box, DTV, DVD, DSC, Portable Media Players and Flash Memory Cards Computing PCs, Computing Servers, Displays, HDD
Slide 8: Strategically Positioned Manufacturing
8 Strategically Positioned Manufacturing Net Sales by Factory C c Japan Philippines Taiwan China Korea Units by Factory Based on Q1'10 Net Sales Based on Q1'10 units shipped excluding wafer bumping and test services
Slide 9: CSP Sales and Units - Quarterly Trends
9 CSP Sales and Units - Quarterly Trends ($ and units in millions) Chip Scale Packaging Small form factor and greater I/O density CSP Sales and Units - Annual Trends ($ and units in millions) CSP Sales by End Markets Based on Q1'10 net sales
Slide 10: BGA Sales and Units - Quarterly Trends
10 BGA Sales and Units - Quarterly Trends ($ and units in millions) Ball Grid Array Packaging Large body and high I/O supporting high performance applications BGA Sales and Units - Annual Trends ($ and units in millions) BGA Sales by End Markets Based on Q1'10 net sales
Slide 11: Leadframe Sales and Units - Quarterly Trends
11 Leadframe Sales and Units - Quarterly Trends ($ and units in millions) Leadframe Packaging Favorable cost structure and supporting lower I/O applications Leadframe Sales and Units - Annual Trends ($ and units in millions) Leadframe Sales by End Markets Based on Q1'10 net sales
Slide 12: Test Sales and Units - Quarterly Trends
12 Test Sales and Units - Quarterly Trends ($ and units in millions) Probe and Test Supporting advanced silicon solutions Test Sales and Units - Annual Trends ($ and units in millions) Test Sales by End Markets Based on Q1'10 net sales
Slide 13: Disciplined Growth and Focus on Profitability
13 Maintaining and improving profitability in a cyclical industry through: capacity utilization and strategic capital investments, enhancing product mix using advanced technologies, sustaining a disciplined and competitive pricing strategy, and managing manufacturing costs and improving productivity
Slide 14: Free Cash Flow and Disciplined Capital Investment Focus
14 Free Cash Flow and Disciplined Capital Investment Focus Capital Expenditures Capital Intensity is defined as Purchases of Property, Plant and Equipment as a percentage of Net Sales ($ in millions) Focused capital investment strategy Advanced technologies including: 3-D packaging, copper pillar an
Slide 15: Q1 2010 Overview
15 Q1 2010 Overview (1) Free Cash Flow is defined as Operating Cash Flow less Purchases of Property, Plant and Equipment. Refer to reconciliation of Non-GAAP measures in the appendix. (in millions, except per share data)
Slide 16: Consistent Focus on Deleveraging
16 Consistent Focus on Deleveraging Total Debt and Cash Balance Net Debt and Interest Expense Total Debt ($ bn) Highlights Reduced total debt by $336 million since 2007 Reduced net debt by $351 million since 2007 Reduced annual interest expense by $27 million since 2007 Interest Expense ($ mm)
Slide 17: Pro Forma Maturities
17 Pro Forma Maturities Maturity Profile as of March 31, 2010: $1,428 million ($ millions) Amkor's Pro Forma Maturity Profile as of March 31, 2010(1): $1,408 million ($ millions) (1) Includes the issuance of $345m Senior Notes due 2018 of which the net proceeds and cash on hand will be used to redee
Slide 18: Amkor Moving Forward
18 Industry innovator and technology leader Partnering with our key customers Strong relationships with tier-1 semiconductor companies, foundries and OEMs Global manufacturing footprint Disciplined growth and focus on profitability Managing costs in line with customer demand Focusing on free cash fl
Slide 19: Appendix Financial Reconciliation Table
19 Appendix Financial Reconciliation Table (1) Free Cash Flow is defined as Operating Cash Flow less Purchases of Property, Plant and Equipment. Free cash flow is not defined by generally accepted accounting principles. However, we believe free cash flow to be relevant and useful information to our