Asmpt Limited · HKEX:522

Asmpt — Q3 2019 Earnings Presentation

45 slides from Asmpt's earnings presentation, Oct 31, 2019

  1. Slide 1: Q3 Results Announcement

    2019 Q3 Results Announcement 31 October 2019

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this presentation is provided for informational These forward-looking statements reflect the Company’s current expectations, purpose only, and should not be relied upon for the purpose of making any beliefs, hopes, intentions or strategies regarding the future

  3. Slide 3: Business Excellence is at the Core of ASMPT

    Business Excellence is at the Core of ASMPT 3

  4. Slide 4: The World's Back-End Equipment Technology & Materials Market Leader

    OVERVIEW The World’s Back-End Equipment Technology & 43.9% Market Leader Q3 2019 Group Revenue: Materials 11.8% SMT Solutions USD 531m 44.3% (CAGR 2009 – Q3 2019 LTM 13.1%) 4

  5. Slide 5: ASMPT Global Presence

    OVERVIEW ASMPT >2,000 >1,400 10 12 Global Presence Global R&D staff Patents on key leading edge R&D centres worldwide Manufacturing facilities technologies Weymouth Beuningen Munich Porto Regensburg Boston Huizhou Taoyuan Hong Kong Shenzhen Sales Offices Chengdu Business Centre / R&D / Johor Manufac

  6. Slide 6: ASMPT's Major Facilities Around The World

    ASMPT’S OVERVIEW Major Facilities Around The World Regensburg Huizhou (惠州) Fuyong (福永) Longgang (龙岗) Weymouth Munich Taoyuan Beuningen Boston Hong Kong Porto Chengdu (成都) Sales Offices Business Centre / R&D / Manufacturing Site Singapore Johor 6

  7. Slide 7: Three Business Segments With Leading Market Positions

    Three Business Segments With OVERVIEW Leading Market Positions S MT SO L UT I O NS #1 in SMT Equipment Market BACK - E ND EQ UI P ME NT Since 2016 #1 in Assembly 2018 Worldwide SMT Market Share: & Packaging ~23% Equipment Market Since 2002 2018 Worldwide PAE Market Share: MAT ERI AL S ~25% #3 in Lea

  8. Slide 8: 2019 Q3 Highlights

    Q3 HIGHLIGHTS 2019 Q3 Highlights

  9. Slide 9: Double-digit Increases in Q3 Billing QoQ

    Q3 HIGHLIGHTS Double-digit Increases in Q3 Billing QoQ USD QoQ  Group: slightly below guidance due to deferral of revenue recognition of Group 531m +15.1% some tools to Q4  BE: Advanced Packaging + CIS Back-end Equipment contributed to >50% Q3 BE revenue 233m +12.8% Segment  SMT: Continued to be

  10. Slide 10: Q3 Billings – Business Segments

    Q3 Billings – Business Segments Q3 HIGHLIGHTS QoQ Growth: QoQ Growth: QoQ Growth: +12.8% +19.0% +9.8% Back-End Equipment (USD’M) SMT (USD’M) Materials (USD’M) 400 350 80 350 300 63 300 60 250 235 250 233 200 200 40 150 150 100 100 20 50 50 - - - Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

  11. Slide 11: Back-end & Materials Booking Momentum Continued in Q3

    Q3 HIGHLIGHTS Back-end & Materials Booking momentum continued in Q3 USD QoQ  BE: Strong bookings led by CIS and China Group 514m -14.6%  Materials: 3 quarters consecutive QoQ bookings growth – a clear sign Back-end Equipment of market recovery Segment 262m +6.2%  SMT: Q3 bookings ▼36.5% vs. high

  12. Slide 12: Q3 Bookings – Business Segments

    Q3 Bookings – Business Segments Q3 HIGHLIGHTS QoQ Growth: QoQ Growth: QoQ Growth: +6.2% -36.5% +7.6% Back-end Equipment (USD'M) SMT (USD'M) Materials (USD'M) 450 350 100 400 90 300 80 350 250 70 300 64 262 60 250 200 188 50 200 150 40 150 100 30 100 20 50 50 10 0 0 0 Q1 16 Q3 16 Q1 17 Q3 17 Q1 18 Q3

  13. Slide 13: Significant Improvement in PBT & Net Profit QoQ

    Q3 HIGHLIGHTS Significant improvement in PBT & Net Profit QoQ Gross Margin QoQ Group 34.7% -100 bps  Back-end: GM ▲267 bps QoQ due to favorable product mix Back-end Equipment Segment 43.4% +267 bps  SMT: GM ▼486 bps due to sustained effort in penetrating Asian customer Materials Segment 10.3% -111

  14. Slide 14: Back-end Equipment Segment

    Q3 HIGHLIGHTS Key Highlights: QoQ Bookings Growth: +6.2% Back-end Equipment Segment  Advanced Packaging and CIS together contributed to more than 50% of BE revenue in Q3  Significant increase in orders contributed by China  Demand for die and wire bonders showed signs of stabilization  Segment p

  15. Slide 15: SMT Segment

    Q3 HIGHLIGHTS Key Highlights: SMT Segment  Excellent performance extended to Q3 with Billings ▲19% QoQ  Orders continued to be driven by 5G infrastructure, though offset by weaker Automotive market  9M Billing ▼ only 8% YoY despite challenging year 15

  16. Slide 16: Materials Segment

    Q3 HIGHLIGHTS QoQ Bookings Growth: Key Highlights: +7.6% Materials Segment Quarterly Materials Bookings (USD'M) 100 90  Lead frame market clearly on track to market 80 recovery with consecutive 3 quarters Bookings 70 growth 60 50 40  Double digit YoY ▲17.9% Bookings growth for 30 Materials 20 10 0

  17. Slide 17: R&D Commitment Makes Us a Preferred Partner of Choice

    Q3 HIGHLIGHTS R&D Commitment Makes Us a Preferred Partner of Choice R&D expenses 250 9 months 2019 R&D 200 12.5% expenditure USD million 150  US$ 161 million 100  12.5% of 50 Equipment Sales 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M 2019 USD1,584 million invested in R&D

  18. Slide 18: An Extensive Customer Base

    Q3 HIGHLIGHTS An Extensive Customer Base Q3 2019 Geographical Distribution of Revenue  No single customer accounted for more than 10% Korea, 3.2% Vietnam, 2.4% of Group revenue Taiwan, 3.2% Japan, 6.4% Thailand, 2.4% Americas, 7.5% Philippines, 1.1%  Top 5 customers accounted for 18% of Group’s In

  19. Slide 19: Endless Opportunities for ASMPT in the Digital World

    Endless Opportunities for ASMPT in the Digital World

  20. Slide 20: Q3 2019 Revenue Drivers

    APPLICATIONS Advanced Packaging Q3 2019 CMOS Imaging Sensor Revenue Drivers 5G China Market 20

  21. Slide 21: Data-Centric Era will spur Semiconductor Demand

    TRENDS Data-Centric Era will spur Semiconductor Demand Collect Transmit Store Analyse Visualise Camera, 3D Sensing, 5G, WiFi, LiFi Big Data Centre, AI, TPU, Data AR, VR, Micro Industry IoT, Sensor, Cloud Computing, Analytics, HPC LED, Mini LED LIDAR Memory ASMPT’s Enabling • CMOS Imaging • Silicon P

  22. Slide 22: Data Traffic To Continue 'Exploding In Waves'

    TRENDS Data Traffic To Continue ‘Exploding In Waves’ Over The Next Years 4.75 3.83 3.05 87x 2.41 1.87 1.46 222x 0.02 2005 - 2017A 2018A 2019F 2020F 2021F 2022F Global Data Traffic Facts (in Zettabytes) Source: Cisco Visual Networking Index: Forecast and Trends, 2017–2022 White Paper (Updated Februar

  23. Slide 23: Smartphone Innovations Continue to Drive CIS Business

    Smartphone Innovations APPLICATIONS Continue to Drive CIS Business Under-Screen Camera (USC) (Super-thin, thread-less lens) Multi-Camera Combo, Folded optics (WFOV -> 50x Super Zoom) Super High Resolution (24MP -> 48MP -> 64MP -> 100MP) Biometrics 3D sensing, Under-Display FPS 23

  24. Slide 24: Even more broad-based applications driving multi-year CIS growth

    APPLICATIONS Even more broad-based applications driving Multi-year CIS growth 21.5 10 20 9.5 Worldwide Unit Shipments (B) 16.1 8 15.5 Worldwide Market ($B) 15 6 6.1 10 7.4 4 5 2.6 2 0 0 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F 2022F 2023F Worldwide Market ($B) Worldwide Unit Shipment (B) Sour

  25. Slide 25: The Role Of The Camera In The Data Era Redefined

    APPLICATIONS The Role Of The Camera In The Data Era Redefined Today Future Industrial Security: Videos Inspection Features with Drones Recognition Still Images Autonomous AR/VR Vehicles Social Media Artificial Content Intelligence Source: Youtube, Facebook, Instagram, IT World Canada, Nvidia, Precis

  26. Slide 26: Advanced Packaging: The Game Changer In Semiconductor Revolution

    APPLICATIONS Advanced Packaging: The Game Changer In FI RE BI RD NE X X PVD | ECD Bumping,TSV LAS E R 1 2 0 5 Laser Separation Wafer Dicing and TCB Semiconductor Revolution FLI & RDL Grooving Advanced Packaging Approaches S I P LACE CA NUCLE US Die Attach & SMT Pick and Place Wafers and SMT Wafer an

  27. Slide 27: Growth of Packaging Market Mainly Driven by Advanced Packaging

    TRENDS Growth of Packaging Market Mainly Driven by Advanced Packaging A.I. Share within Semi Global Packaging Market (Billion $) Industry Expected to Grow $84 B to >$100B 84 in the Next Decade 70 $53 B 56 ~2X 42 28 Deep Language 14 learning processing 0 2014 2023 Robots Vision Advanced Conventional

  28. Slide 28: 5G Will Transform the World Beyond Our Imagination

    5G Will Transform the World Beyond Our Imagination Infrastructure 2019-2025: 25-30mil New 5G Base Stations Terminal Source: Topology Research Institute 2019 Mobile Big Data Cloud Servers ASMPT Solutions: Smart Consumer “Power” Up All Industries 50 MEMS & Sensors Photonics IC & Discrete Solutions Ima

  29. Slide 29: Future Growth Drivers for OPTO Business

    APPLICATIONS Future Growth Drivers for OPTO Business MiniLED MicroLED Medium to Large Small Gadget & RGB / BLU Display Transparent Display ~ 66.1% ~ 139.5% Market Size CAGR Market Size CAGR (2019 – 2027) (2019 – 2027) Source: Yanoresearch, Apr 2019 29

  30. Slide 30: Booming Applications In Photonics Market

    APPLICATIONS Si Photonics-based Transceivers Revenue CAGR (2018 – 2024) Booming Applications ~ 44.5 % In Photonics Market Source: Yole, Apr 2019 Data Center Telecommunication LIDAR & Interconnects Sensors Defence & Intra-car Industrial Medical Aerospace Interconnects Communication 30

  31. Slide 31: How will 'Smart Cars' Drive ASMPT's Growth?

    APPLICATIONS How will ‘Smart Cars’ 5G to Cloud Connectivity Vehicle-to-X (Vehicle, Infrastructure, Drive ASMPT’s Network, Devices) communications Enable “V2X” communications Growth? Sensors Image, LIDAR, Radar The eyes and ears to gather information from the Road Power Management Battery Technology

  32. Slide 32: Equipment Industry to Benefit from China Supply Chain Localisation

    TRENDS Equipment Industry to Benefit from China Supply Chain Localisation Semi Equipment Spending 2020F Growth China: 24% Rest of World: 8% Total Semiconductor Equipment Spending (in US$ bil) 60 80% 51 50 48 60% 44 41 40 40% 35 24% 30 20% 8% 20 0% 13 15 12 10 8 -20% 6 0 -40% 2016 2017 2018 2019F 202

  33. Slide 33: Outlook

    Outlook ASM 1) Pacific Technology

  34. Slide 34: Outlook

    OUTLOOK Outlook  On a full year basis: expect all 3 business segments to experience YoY revenue decline  Q4 Billing  Group Billing: USD 460m to USD 510m (subject to actual timing for revenue recognition)  Materials: anticipate QoQ and YoY revenue growth  BE/SMT: anticipate QoQ and YoY revenue d

  35. Slide 35: On Track to Recovery Amidst Macro Uncertainties

    OUTLOOK On Track to Recovery Amidst Macro Uncertainties  Expect more revenue recognition for substantial orders for Advanced Packaging panel deposition tools  Best-in-class packaging/assembly solutions for mini/micro LED well accepted by leading players  CIS poised to benefit from multi cameras a

  36. Slide 36: Industry Growth Forecast (2019)

    Industry Growth Forecast (2019) OUTLOOK Semiconductor Industry Forecast Global Assembly & Packaging Equipment Market 40% VLSI, Jun-19 -9.7% 30% 20% IHS Markit, Jun-19 -12.5% 10% IC Insights, May-19 -13.0% 0% Cowan LRA, May-19 -12.8% -10% -20% WSTS, Jun-19 -12.1% -30% 2013 2014 2015 2016 2017 2018 20

  37. Slide 37: Recent Awards & Recognition

    AWARDS Recent Awards & Recognition VLSI Awards 2019 Latest 37

  38. Slide 38: 2019 Q3 Financial Highlights

    2019 Q3 Financial Highlights

  39. Slide 39: Q3 Group Bookings

    FINANCIAL REVIEW Q3 Group Bookings QoQ Growth: Q3 2019 Bookings -14.6% USD YoY QoQ 800 700 600 Group 514m -16.9% -14.6% 500 400 300 Back-end Equipment 200 Segment 262m -0.6% +6.2% 100 0 Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Q3 16 Q1 17 Q3 17 Q1 18 Q3 18 Q1 19 Q3 19 Materials Segment 64m +17.9% +7.6% Quarter

  40. Slide 40: Q3 Group Billings

    FINANCIAL REVIEW Q3 Group Billings QoQ Growth: Q3 2019 Billings +15.1% USD YoY QoQ 600 Group 531m -19.5% +15.1% 400 Back-end Equipment Segment 233m -23.2% +12.8% 200 Materials Segment 63m -18.5% +9.8% 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 14 14 15 15 16 16 17 17 18 18 19 19 Quarterly Group Billings

  41. Slide 41: Q3 Group Financial Highlights

    FINANCIAL REVIEW Q3 Group Financial Highlights Q3 2019 YoY QoQ Bookings (USD) 514m -16.9% -14.6% Revenue (USD) 531m -19.5% +15.1% Gross Margin 34.7% -307 bps -100 bps EBIT (HKD) 381m -53.5% +72.6% Net Profit (HKD) 222m -63.1% +217.4% Net Profit Margin 5.3% -631 bps +341 bps 41

  42. Slide 42: Q3 Segment Results – Back-End Equipment Business

    FINANCIAL REVIEW Q3 Segment Results – Back-End Equipment Business Q3 2019 YoY QoQ Bookings (USD) 262m -0.6% +6.2% Billings (USD) 233m -23.2% +12.8% Gross Margin 43.4% -10 bps +267 bps Segment Profit (HKD) 179m -62.8% +168.9% Segment Profit Margin 9.8% -1,047 bps +570 bps 42

  43. Slide 43: Q3 Segment Results – Materials Business

    FINANCIAL REVIEW Q3 Segment Results – Materials Business Q3 2019 YoY QoQ Bookings (USD) 64m +17.9% +7.6% Billings (USD) 63m -18.5% +9.8% Gross Margin 10.3% -63 bps -111 bps Segment Profit (HKD) 18m -30.6% -7.7% Segment Profit Margin 3.7% -65 bps -70 bps 43

  44. Slide 44: Q3 Segment Results – SMT Solutions Business

    FINANCIAL REVIEW Q3 Segment Results – SMT Solutions Business Q3 2019 YoY QoQ Bookings (USD) 188m -37.5% -36.5% Billings (USD) 235m -15.7% +19.0% Gross Margin 32.7% -634 bps -486 bps Segment Profit (HKD) 226m -48.1% +8.4% Segment Profit Margin 12.3% -764 bps -120 bps 44

  45. Slide 45: Enabling the Digital World

    NSN ANS BS Pacific Technology \ ENABLING THE DIGITAL WORLD

ASMPT — Q3 2019 Earnings Presentation on 6ix