Asmpt Limited · HKEX:522

Asmpt — Q3 2018 Earnings Presentation

50 slides from Asmpt's earnings presentation, Nov 1, 2018

  1. Slide 1: 2018 Q3 Results Announcement

    2018 Q3 Results Announcement November 1, 2018

  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: ASMPT Recognized as TOP 100 Global Tech Leaders

    ASMPT Recognized as TOP 100 Global Tech Leaders “The Top 100 Global Technology Leaders are the organizations poised to propel the future of technology”, Brian Scanlon, Chief Strategy Officer Thomson Reuters, 2018 The ONLY Back-end Equipment Supplier Recognized ASM Pacific Technology © 2018 page 3

  4. Slide 4: Corporate Overview

    CORPORATE OVERVIEW 4 ASM Pacific Technology © 2018 page 4

  5. Slide 5: A World's Technology & Market Leader

    A World’s Technology & Market Leader Q3 2018 LTM Group Revenue (CAGR 2008-Q3 2018 LTM 13.7 %)  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 38.5% Automotive US$2

  6. Slide 6: ASMPT Global Presence

    ASMPT Global Presence Business Center / R&D / Germany (Regensburg) Manufacturing Site Germany (Munich) Sweden Russia Canada USA UK Austria Poland (Boston) The Czech Republic Hungary Netherlands Porto Italy USA France Romania China Korea Spain Malta Japan Morocco India Hong Kong Taiwan Mexico Thailan

  7. Slide 7: ASMPT Major Facilities around the World

    ASMPT Major Facilities around the World Hong Kong Yishun Munich Regensburg Boston Porto Longgang (龙岗) Fuyong (福永) Huizhou (惠州) Chengdu (成都) Taoyuan Weymouth Beuningen Johor Bahru Extension of Malaysia plant ready for operation by 2019 ASM Pacific Technology © 2018 page 7

  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 (2017) PAE #1 Die Bonders #2 Wire Bonders #1/2 Flip Chip Bonders #1 Thermal Compression Bonders (TCB) #1 LED Packaging Equipment #1 CMOS Imaging Senso

  9. Slide 9: 2018 Q3/9M Highlights

    2018 Q3/9M Highlights 9 ASM Pacific Technology © 2018 page 9

  10. Slide 10: Record 9-Month Group Bookings & Billings

    Record 9-Month Group Bookings & Billings Billings (US$ m) Bookings (US$ m) 2,500 2,500 New 9M 18 Record! YoY Growth: +11.2% 9M 17 New YoY Growth: +13.9% Record! 2,000 2,000 1,500 1,500 2,100 1,886 1,000 1,000 500 500 - - 9M 13 9M 14 9M 15 9M 16 9M 17 9M 18 9M 13 9M 14 9M 15 9M 16 9M 17 9M 18 ASM Pac

  11. Slide 11: Q3/9M 2018 Group Financial Highlights

    Q3/9M 2018 Group Financial Highlights Q3 2018 9M 2018 Amount YoY Amount YoY Bookings (USD) 618.6m  7.7% 2.1b  13.9% Billings (USD) 658.3m  1.1% 1.9b  11.2% Gross Margin 37.8%  283bps 39.7%  88bps EBIT (HKD) 818.8m  25.3% 2.7b  2.7%^ Net Profit (HKD) 602.1m  30.2% 2.0b  6.6%^ Net Profit Mar

  12. Slide 12: Strong Q3 Bookings led by SMT/Back-end Equipment

    Strong Q3 Bookings led by SMT/Back-end Equipment Q3 Bookings Q3 Billings Amount YoY Amount YoY (US$m) (US$m) Group 618.6  7.7% 658.3  1.1% Back-end Equipment 263.9  5.8% 302.6  5.4% Materials 53.9  20.8% 76.9  4.1% SMT Solutions 300.8  17.1% 278.8  3.9% New Record Highest in Q3 ASM Pacific T

  13. Slide 13: Strong 9M 2018 Bookings/Billings

    Strong 9M 2018 Bookings/Billings First 9M Bookings First 9M Billings Amount YoY Amount YoY (US$m) (US$m) Group 2,100.5  13.9% 1,885.6  11.2% Back-end Equipment 1,024.8  13.8% 947.9  11.4% Materials 204.9  11.4% 227.9  9.2% SMT Solutions 870.8  22.3% 709.8  11.6% New Record ASM Pacific Techno

  14. Slide 14: Major Drivers for Q3 2018 Bookings/Billings

    Major Drivers for Q3 2018 Bookings/Billings Back-end SMT Solutions IC / Discrete Discrete Automotive Consumer Semiconductors Industrial Automotive Power Industrial Management China Smartphones ASM Pacific Technology © 2018 page 14

  15. Slide 15: 9M 2018 Segments Highlights

    9M 2018 Segments Highlights Back-end SMT Solutions Materials Segment Equipment Segment Segment 9M 2018 9M 2018 YoY 9M 2018 YoY 9M 2018 YoY Bookings (USD) 1,024.8m  13.8% 204.9m  11.4% 870.8m  22.3% Billings (USD) 947.9m  11.4% 227.9m  9.2% 709.8m  11.6% Gross Margin 46.6%  112bps 12.4%  152b

  16. Slide 16: Impacts of Trade War – Insignificant So Far

    Impacts of Trade War – Insignificant So Far  Direct impact: <0.5% of Group Billing  Indirect impact:  Export oriented customers in China: getting more cautious  Domestic oriented customers in China: continue to expand  SEA customers: Increase orders to ASMPT  Prolonged trade war would increase

  17. Slide 17: ASMPT Has Entered a High Growth Period

    ASMPT Has Entered a High Growth Period Group Half Yearly Billings 1H18 Rev (US$ m) vs 1H08 3.3x 1,500 1,400 1,300 1,227 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 - 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 05 05 06 06 07 07 08 08 09 09 10 10 11 11 1

  18. Slide 18: Outlook

    OUTLOOK 18 ASM Pacific Technology © 2018 page 18

  19. Slide 19: Outlook for Q4

    Outlook for Q4  The Group: on track to set new booking and billing records for full year 2018  All 3 business segments: expected to set billing records for full year 2018  SMT solutions segment billing ~ US$1 B  Group billing: US$ 550 ~ US$ 620 million  SMT solutions segment: expected to achiev

  20. Slide 20: Economic Growth Drives Demand for Semiconductors

    Economic Growth Drives Demand for Semiconductors Expected Growth in Major Economies Semiconductor Revenue Growth Forecast 2019 Supporting Strong Demand HIS World GDP Markit, 4.0% 115,000 Jul-18 110,000 IC Insights, 4.0% Mar-18 105,000 Cowan LRA, Aug- 5.0% 100,000 in US$'B 18 WSTS, 95,000 5.2% Aug-18

  21. Slide 21: Demand for Semiconductor Devices Remains Strong

    Demand for Semiconductor Devices Remains Strong Source: IC Insights, January 2018 ASM Pacific Technology © 2018 page 21

  22. Slide 22: New Drivers in Data Centric Era Spurring Semiconductor Demands

    New Drivers in Data Centric Era Spurring Semiconductor Demands Source: SEMI, 2018 ASM Pacific Technology © 2018 page 22

  23. Slide 23: Growth Drivers

    Growth Drivers 23 ASM Pacific Technology © 2018 page 23

  24. Slide 24: Growth Drivers – Advanced Packaging

    Growth Drivers – Advanced Packaging Application Diversification Driving AP Growth Advanced Packaging CAGR (2017- 2023) Types Memory (eMMC) PMIC Embedded Die (ED) ~22% Fan-out (FO) ~15% Through Silicon Via (TSV) ~29% Applications Mobile Artificial Devices Intelligence High Application Bandwidth Proce

  25. Slide 25: ASMPT is Covering All Interconnection Technologies

    ASMPT is Covering All Interconnection Technologies Total Semi. Wire Bond Flip Chip Fan Out 3D TSV Wafers  Wire Bonding  Flip Chip/  NUCLEUS/ NOVA  TCB  Die Bonding NOVA Plus/ Plus Fan Out2  Laser AFC Plus2  ORCAS  PVD1  TCB  SUNBIRD  ECD1  PVD1  Laser  ECD1  CA  PVD1 Source: Prismark

  26. Slide 26: Data is the New Oil!

    New Drivers in Data Centric Era Spurring Semiconductor Demands Data is the New Oil! WLFO WLFO LiFi AI Silicon Photonics WiFi PLFO TPU Data Analytics 5G Transmit LASER Grooving WB Analyse HPC TCB Advanced Packaging Advanced Packaging Active Alignment Precision Die Attach 3D Sensing IIOT AR TCB Camera

  27. Slide 27: Growth Drivers – Data Centres

    Growth Drivers – Data Centres Si-Photonics is Key Enabling Technology for High Speed Data Transfer within and between Data Centres Data Center of Google in Eemshaven, Netherlands Photonics is the enabling technology for 100G / 400G data communication within data centers. ASM Pacific Technology © 201

  28. Slide 28: Growth Drivers – Smartphone Innovations & 5G

    Growth Drivers – Smartphone Innovations & 5G Multi Camera for Car Wide FOV 3D Sensing Folded Camera HD+AF Camera Dual Camera Fixed Focus Camera Depth Camera Triple Camera Bokeh Low Light 120° FOV Tele Photo Driver monitor system Face recognition Featured phone Smartphone / Smart Device Drone Pokemon

  29. Slide 29: Growth Drivers – Mini/Micro LED Displays

    Growth Drivers – Mini/Micro LED Displays Without With Local Dimming Local Dimming Wearables Small – Mid Size Large Displays with Extra Large Display Smartphones | Tablet Displays Backlight True RGB color Walls with True RGB Mobile Gadget Local Dimming color Video Wall MiniLED (Full Colour) LCD TV /

  30. Slide 30: Growth Drivers – Automotive

    Growth Drivers – Automotive Electronic Daytime Running Autopilot LiDAR Headlamp Vehicles Lights (DRLS) ASM Pacific Technology © 2018 page 30

  31. Slide 31: Growth Drivers – Power Management

    Growth Drivers – Power Management Global Power Semiconductor Market 30 Market Size (B USD) 25 CAGR: ~13% 20 15 10 5 0 2017 2018 2019 2020 2021 2022 2023 Source: Marketresearchfuture, Oct 2018 Automotive / Electric Vehicles Communication Equipment Personal Enterprise Systems Industrial Electronics AS

  32. Slide 32: Growth Drivers – IoT

    Growth Drivers – IoT Data Center Cloud Computing CPU / GPU MEMS & Sensor 5G Networking ASM Pacific Technology © 2018 page 32

  33. Slide 33: Growth Drivers – Strategic M&A

    Growth Drivers – Strategic M&A Access to ASMPT’s resources leading to accelerated growth Targets Best of both worlds: Access to good ASMPT technologies now Access to leading backed by a strong technologies & Customers company accelerate penetration into new growth markets ASM Pacific Technology © 20

  34. Slide 34: Shareholder Value Creation

    Shareholder Value Creation  Pursue Sustainable Growth & Profitability GAIN INVEST IN STRATEGIC MARKET NEW GROWTH AREAS M&A SHARE  Wire bonding  CMOS Image Sensor  SMT Placement  Die bonding  Automotive  SMT Printing  Lead Frames  Power Management  LASER Grooving / Dicing  SMT  Advanced P

  35. Slide 35: 2018 Q3 Financial Results

    2018 Q3 FINANCIAL RESULTS 35 ASM Pacific Technology © 2018 page 35

  36. Slide 36: 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 19.0% of the Group’s 9M 2018 sales revenue  Top 20 customers include world’s leading IDMs, Tier 1 OSAT, major OSATs in China,

  37. Slide 37: Revenue Breakdown by Application Markets (9M 2018)

    ASMPT Revenue Breakdown by Application Markets (9M 2018) Mobility, Comm & IT, Optoelectronics and Automotive % of Group Revenue 52% 48% 2017 9M 2018 ASM Pacific Technology © 2018 page 37

  38. Slide 38: Q3/9M 2018 Group Financial Highlights

    Q3/9M 2018 Group Financial Highlights Q3 2018 9M 2018 Amount YoY Amount YoY Bookings (USD) 618.6m  7.7% 2.1b  13.9% Billings (USD) 658.3m  1.1% 1.9b  11.2% Gross Margin 37.8%  283bps 39.7%  88bps EBIT (HKD) 818.8m  25.3% 2.7b  2.7%^ Net Profit (HKD) 602.1m  30.2% 2.0b  6.6%^ Net Profit Mar

  39. Slide 39: Q3/9M 2018 Group Highlights

    Q3/9M 2018 Group Highlights Quarterly Group Billings Quarterly Group Bookings (US$ m) (US$ m) YoY Growth: +7.7% YoY Growth: +1.1% 619 800 800 QoQ Growth: -15.0% QoQ Growth: -2.0% 658 700 700 600 600 500 1H 16 1H 17 500 400 400 300 300 200 200 100 100 0 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  40. Slide 40: Q3/9M 2018 Segment Results – Back-End Equipment Business

    Q3/9M 2018 Segment Results – Back-End Equipment Business Q3 2018 YoY QoQ 9M 2018 YoY Bookings (USD) 263.9m  5.8%  25.5% 1,024.8m  13.8% Billings (USD) 302.6m  5.4%  16.6% 947.9m  11.4% Gross Margin 43.5%  471bps  726bps 46.6%  112bps Segment Profit (HKD) 481.8m  19.1%  44.1% 1,845.8m  5.

  41. Slide 41: Q3/9M 2018 Segment Results – Back-End Equipment Business

    Q3/9M 2018 Segment Results – Back-End Equipment Business Yearly Billings YoY Growth: +11.4% Quarterly Billings (US$ m) New (US$ m) YoY Growth: +5.4% Record! 1,400 450 QoQ Growth: -16.6% 1,199 400 303 1,200 350 1,000 9M 17 9M 18 300 800 250 948 857 600 200 150 400 100 200 50 - - 2013 2014 2015 2016 2

  42. Slide 42: Q3/9M 2018 Segment Results – Materials Business

    Q3/9M 2018 Segment Results – Materials Business Q3 2018 YoY QoQ 9M 2018 YoY Bookings (USD) 53.9m  20.8%  30.4% 204.9m  11.4% Billings (USD) 76.9m  4.1%  1.0% 227.9m  9.2% Gross Margin 11.0%  370bps  230bps 12.4%  152bps Segment Profit (HKD) 26.3m  43.1%  41.4% 110.4m  8.6% Segment Profit

  43. Slide 43: Q3/9M 2018 Segment Results – Materials Business

    Q3/9M 2018 Segment Results – Materials Business YoY Growth: +9.2% Quarterly Billings Yearly Billings YoY Growth: +4.1% New (US$ m) (US$ m) Record! 350 100 QoQ Growth: +1.0% 293 90 300 77 80 250 70 9M 18 9M 17 200 60 210 228 50 150 40 100 30 20 50 10 - - 2013 2014 2015 2016 2017 9M 18 LTM Q1 Q2 Q3 Q4

  44. Slide 44: Q3/9M 2018 Segment Results – SMT Solutions Business

    Q3/9M 2018 Segment Results – SMT Solutions Business Q3 2018 YoY QoQ 9M 2018 YoY Bookings (USD) 300.8m  17.1%  1.6% 870.8m  22.3% Billings (USD) 278.8m  3.9%  19.8% 709.8m  11.6% Gross Margin 39.0%  72bps  228bps 39.2%  52bps Segment Profit (HKD) 435.7m  13.6%  28.3% 975.9m  7.9% Segment

  45. Slide 45: Q3/9M 2018 Segment Results – SMT Solutions Business

    Q3/9M 2018 Segment Results – SMT Solutions Business Yearly Billings YoY Growth: +11.6% New Quarterly Billings YoY Growth: -3.9% Record! (US$ m) (US$ m) QoQ Growth: +19.8% 1,000 935 350 900 279 300 800 9M 18 9M 17 700 250 600 710 200 640 500 150 400 300 100 200 50 100 - - 2013 2014 2015 2016 2017 9M

  46. Slide 46: Awards & Recognition

    AWARDS & RECOGNITION 46 ASM Pacific Technology © 2018 page 46

  47. Slide 47: Recent Awards & Recognition

    Recent Awards & Recognition  Technology Achievement Grand Award of HKIA 2017 (for the third time) Federation of HK Industries  Directors of the Year Awards 2017 Hong Kong Institute of Directors  Hong Kong Outstanding Enterprises 2017 HK Economic Digest  2017 All Stars of the Semiconductor Indust

  48. Slide 48: 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  2017 & 2018 “Triple Crown” with RANKED 1st/10 BEST/BEST Suppliers Awards from VLSIresearch  2016-1

  49. Slide 49: VLSI Awards 2018

    VLSI Awards 2018 ASM Pacific Technology © 2018 page 49

  50. Slide 50: ASM Pacific Technology © 2018 page 50

    ASM Pacific Technology © 2018 page 50

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