Semiconductor Manufacturing International Corp. · HKEX:981
Semiconductor Manufacturing International — Q2 2018 Earnings Presentation
20 slides from Semiconductor Manufacturing International's earnings presentation, August 2018
Slide 1: SMIC Presentation
SMIC Presentation NYSE: SMI HKSE: 0981 August 2018
Slide 2: Safe Harbor Statements
Safe Harbor Statements Under the Private Securities Litigation Reform Act of 1995 This presentation contains, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These for
Slide 3: China Semiconductor Opportunity agenda
China Semiconductor Opportunity SMIC Introduction SMIC Performance Strategies for Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 3 SMIC shall not be responsible
Slide 4: Rapid Growth of China IC Market
Rapid Growth of China IC Market China has become the world’s largest Chinese fabless market growth SMIC sees rapid growth of IC market (US$bn) (US$bn) revenue from China (US$mn) 2000 – China market share: 7% Chinese Fabless Global Fabless SMIC's China Revenue USA $64 Others $100 106 Japan ~3.5x 99 C
Slide 5: China IC Market Drives Foundry Growth
China IC Market Drives Foundry Growth Total China IC Market , Local Brands, Design & Local foundries Foundries Revenue (US$bn) Local foundries Local design 6 Local brands* Local design 26 2018F Total China IC market 94 213 2.2 Local brands 4.2 2008 27.0 79.2 China IC Demand and Supply Dynamics (US$b
Slide 6: SMIC Introduction agenda
China Semiconductor Opportunity SMIC Introduction SMIC Performance Strategies for Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 6 SMIC shall not be responsible
Slide 7: SMIC: Largest and Most Comprehensive IC Foundry in PRC
SMIC: Largest and Most Comprehensive IC Foundry in PRC Company Overview Strong Global Presence Italy China China Beijing Tianjin Established in 2000, headquartered in Shanghai Avezzano Germany USA China Italy Headquarters Listed both on HKSE and NYSE Shanghai No.1 pure-play foundry in PRC; No.
Slide 8: Independent and International Board
Independent and International Board Executive Directors Zhou Zixue Zhao HaiJun Liang Mong Song Gao Yonggang Chairman Co-CEO Co-CEO CFO Non-Executive Directors Tong Guohua Chen Shanzhi Lu Jun Ren Kai Zhou Jie Datang Datang Sino IC-Capital Sino IC-Capital Haitong Securities President and ED SVP and CI
Slide 9: Transitional Period: Becoming Fundamentally Solid
Transitional Period: Becoming Fundamentally Solid Gearing up for Growth Turnaround Early Establishment 3,101 Foundry of Choice in China Y2002~2017, CAGR 32% Revenue Growth 2,914 2,236 Aiming to: 2,069 1,970 1,702 1,465 1,550 1,354 1,555 1,319 be a world-class, mainstream foundry 1,171 1,070 975 Re
Slide 10: SMIC Family of IC Manufacturing
SMIC Family of IC Manufacturing Beijing Shanghai 12’’ Fab 8’’ Fab 12’’ JV Fab 12’’Fab Italy 12’’JV Fab-New LF 8” JV Fab Tianjin Shenzhen 8” Fab 8” Fab 8” Fab-New 12” Fab 2017 Year-End 2018 Year-End Expansion Conditions: Existing Fabs (production Target (installed New Fabs • Market and customer deman
Slide 11: SMIC Performance agenda
China Semiconductor Opportunity SMIC Introduction SMIC Performance Strategies for Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 11 SMIC shall not be responsible
Slide 12: Financial Highlights
Financial Highlights 2Q 2018 Guidance 2Q 2018 Results 3Q 2018 Guidance -4% to -6% QoQ +7% to +9% QoQ +7.2% QoQ Revenue (flat to +2% for core) $889M~$906M $891 million (3) $838M~$855M 23% to 25% 24.5% 19% to 21% Gross Margin (18% to 20% for core) (19.7% for core) (19% to 21% for core) Non-GAAP Operat
Slide 13: Capex, EBITDA, and Cash Levels
Capex, EBITDA, and Cash Levels Capex Cash and EBITDA (US$mm) (US$mm) Foundry non-Foundry Cash in hand * EBITDA Gross Debt/Equity Net Debt/Equity 2,458 2,300 56% 2,710 48% 2,52249% 50% 45% 2,298 45% 2,158 39% 34% 33% 1,247 1,288 1,063 1,118 18% 767 16% 620 703 760 708 12% 16% 10% 358 312 3% 325 1% 13
Slide 14: Investment Grade Credit Rating
Investment Grade Credit Rating S&P investment grade BBB- long-term corporate credit rating since Oct 2013 Moody’s investment grade Baa3 corporate credit rating in Oct 2015 China Chengxin International Credit Rating Agency’s triple A rating in Nov 2015 Committed to Net Debt/EBITDA less than 2
Slide 15: Strategies for Growth agenda
China Semiconductor Opportunity SMIC Introduction SMIC Performance Strategies for Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 15 SMIC shall not be responsible
Slide 16: Strategies for Growth: Expand Addressable Market by Accelerating Technology Development
Strategies for Growth: Expand Addressable Market by Accelerating Technology Development Mature Technology 28nm Technology FinFET Technology Platform Platform Platform Flash PolySiON Power HKC 14nm CIS HKC+ Power+Flash+CIS Rev (billion) 28nm Rev (billion) 14nm Rev (billion) 93 96 98 82 86 12 71 10 10
Slide 17: Invest for the Next Stage Growth
Invest for the Next Stage Growth The increasing investment in R&D and Capex will accelerate 1 R&D breakthroughs and increase market share Shorten advance node development time and narrow the gap 2 with leading peers Focus on key platforms in mature nodes with more 3 enhancements and more cost effici
Slide 18: Concluding Remarks agenda
Introduction SMIC Performance China Semiconductor Opportunity Strategies for Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 18 SMIC shall not be responsible for
Slide 19: Aiming to be a World-Class Foundry
Aiming to be a World-Class Foundry Execution Financial • 2018 most honored company, ranked by Institutional Investors • Operating cash • JV business model Technology Positioning Capacity • Accelerate advanced technology • Most preferred foundry • Increase competitiveness of • Prioritize capacity mix
Slide 20: Thank You
Thank You Contact us: ir@smics.com SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 20 SMIC shall not be responsible for any party’s reliance on these materials.
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