Asmpt Limited · HKEX:522

Asmpt — 1H 2020 Earnings Presentation

49 slides from Asmpt's earnings presentation, Jul 29, 2020

  1. Slide 1: Interim Results Announcement

    2020 Interim Results Announcement 29 July 2020

  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: Awards & Accolades

    Awards & Accolades Forbes Asia — 2019 — BEST OVER scar A BILLION "AWARD e Winner of the v productronica y innovation award 2019 ARETE ~ 2019) ZZ & BA ASM [{1)) Pacific Technology

  4. Slide 4: Overview: The World's Technology & Market Leader

    OVERVIEW The World’s SMT Solutions 36.6% Technology & Market Leader Q2 2020 Group Revenue: Materials 13.3% Semiconductor USD 557m Solutions 50.1% 4

  5. Slide 5: Major Facilities Around The World

    ASMPT’S OVERVIEW Major Facilities Around The World Huizhou (惠州) Regensburg Fuyong (福永) Longgang (龙岗) Weymouth Taoyuan Munich Sales Offices Business Centre / R&D / Beuningen Manufacturing Site Boston Hong Kong Porto Chengdu (成都) >2,000 >1,400 10 12 Global R&D Patents on leading R&D centres Manufactur

  6. Slide 6: Three Business Segments With Leading Market Positions

    Three Business Segments With OVERVIEW Leading Market Positions SMT SO L UT I O NS #2 in SMT Equipment Market SEMI CO NDUCT O R 2019 Worldwide SO L UT I O NS 1 SMT Market Share: #1 in Assembly ~22% & Packaging Equipment Market Since 2002 2019 Worldwide PAE Market Share: MAT ERI AL S ~29% #3 in Leadfr

  7. Slide 7: Our Strategic Value-added Acquisitions

    Our Strategic Value-added Acquisitions Advanced Packaging Silicon Photonics Manufacturing Execution Software  Largest installed base of panel  Ultra high precision sub-micron die  Provider of automation and  Well-established MES solutions deposition tools attach equipment solutions manufacturing

  8. Slide 8: Our Participation in Emerging and Disruptive Technologies

    Our Participation in Emerging and Disruptive Technologies Minority Investments Strategic Collaborations in Start-ups X-ray Inspection 3D Laser Printing Data Analytics AI Chip Technology  X-ray inspection of  Israeli company with advanced semiconductor cutting-edge packages technology  Industrial

  9. Slide 9: 2020 Q2 Highlights

    Q2 2020 HIGHLIGHTS 2020 Q2 Highlights

  10. Slide 10: Q2/1H 2020 Billings

    Q2 2020 HIGHLIGHTS Q2/1H 2020 Billings Group  1H Group Billings ~US$1B Q2 1H  ▲ 5.9% YoY ▼ 10.5% HoH USD QoQ YoY USD HoH YoY  Q2 Group Billings  ▲ 19.5% YoY ▲ 27.8% QoQ Group 557m +27.8% +19.5% 992m -10.5% +5.9% SEMI Key drivers for Q2 YoY billings growth  Advanced Packaging Semi  NEXX deliver

  11. Slide 11: Q2 2020 Billings – Business Segments

    Q2 2020 Billings – Business Segments Q2 2020 HIGHLIGHTS QoQ Growth: QoQ Growth: QoQ Growth: +43.0% +8.0% +43.2% Semiconductor Solutions SMT (USD’M) Materials (USD’M) 400 (USD’M) 350 80 74 350 300 300 279 60 250 250 204 200 200 40 150 150 100 100 20 50 50 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

  12. Slide 12: Q2/1H 2020 Group Bookings

    Q2 2020 HIGHLIGHTS Q2/1H 2020 Group Bookings Group  1H Bookings ▲ HoH and YoY  Q2 Bookings ▼ QoQ and YoY as a result of Q2 1H overall weak sentiment due to COVID-19 USD QoQ YoY USD HoH YoY SEMI  Q2 Bookings ▼ QoQ due to higher Q1 base  Key drivers of Q2 Bookings Group 472m -29.4% -21.6% 1,141m +

  13. Slide 13: Q2 2020 Bookings – Business Segments

    Q2 2020 Bookings – Business Segments Q2 2020 HIGHLIGHTS QoQ Growth: QoQ Growth: QoQ Growth: -26.7% -38.4% -11.8% Semiconductor Solutions SMT (USD'M) Materials (USD'M) (USD’M) 350 100 450 90 300 400 80 78 350 250 70 300 60 200 250 227 167 50 200 150 40 150 30 100 100 20 50 50 10 0 0 0 Q1 Q2 Q3 Q4 Q1

  14. Slide 14: Q2/1H 2020 Group GM & Profitability

    Q2 2020 HIGHLIGHTS Q2/1H 2020 Group GM & Profitability Gross Margin 1H HoH YoY Q2 QoQ YoY Group  Q2 Group GM close to mid-point of guidance Group 34.5% -29 bps -34 bps 35.2% +169 bps -54 bps  Q2 Group Billing, Operating Profit and Net Profit ▲ QoQ and YoY Semi Solutions 42.2% +16bps +219 bps 42.9%

  15. Slide 15: Semiconductor Solutions Segment

    Q2 2020 HIGHLIGHTS Key Highlights: 1H YoY Bookings Growth: Semiconductor Solutions Segment +14.2%  Strong global demand for HPC for datacentre and 5G applications  Q2 Billings growth YoY underpinned by Advanced Packaging  Q2 NEXX Bookings ▲ ~100% YoY  Largest installed base to-date worldwide for

  16. Slide 16: SMT Segment

    Q2 2020 HIGHLIGHTS 1H YoY Bookings Growth: -10.3% Key Highlights: SMT Segment  Market leader in System-in-Packaging (SiP)  1H booking momentum driven by  5G-related investments  SiP – fast growing business within SMT 16

  17. Slide 17: Materials Segment

    Q2 2020 HIGHLIGHTS 1H YoY Bookings Growth: +59.3% Key Highlights: Materials Segment Materials Bookings (USD'M) 100  Segment new bookings increased five out of the 90 last six quarters 80 78 70  GM improvements resulted from higher volume 60 effect and discontinuation of loss-making MIS 50 business

  18. Slide 18: R&D Commitment Makes Us a Preferred Partner of Choice

    Q2 2020 HIGHLIGHTS R&D Commitment Makes Us a Preferred Partner of Choice R&D expenses (USD million) 250 1H 2020 R&D 200 expenditure USD million 150 11.7%  US$ 101 million 100  11.7% of 50 Equipment Sales 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H 2020 USD1,742 milli

  19. Slide 19: An Extensive Customer Base

    Q2 2020 HIGHLIGHTS An Extensive Customer Base 1H 2020 Geographical Distribution of Revenue  No single customer accounted for more than 10% Korea, 3.0% Thailand, 2.8% of Group revenue Japan, 4.4% Malaysia, 5.1% Vietnam, 1.7% Taiwan, 8.6% Americas, 8.4% Philippines, 1.6%  Top 5 customers accounted f

  20. Slide 20: 1H 2020 Revenue Breakdown by Application Markets

    Q2 2020 HIGHLIGHTS 1H 2020 Revenue Breakdown by Application Markets Top 5 Customers Revenue Contribution 20% 15% 10% 5% 0% More Resilient in a Downturn with Multiple Application 2019 1H 2020 Markets Strategy 20

  21. Slide 21: 1H2020 Dividends

    Q2 2020 HIGHLIGHTS 1H2020 Dividends Dividends Per Share (HKD) & Dividend Payout Ratio 2.00 400% 1.80 350% 1.60 1.40 300% 1.40 1.30 1.30 1.30 1.20 250% 1.20 1.10 1.00 1.00 200% 0.80 0.80 0.70 0.70 150% 0.60 0.40 100% 0.40 0.20 50% 0.00 0% 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 DPS Div

  22. Slide 22: New Lifestyle Norms Fast-tracking Digitalisation

    New Lifestyle Norms Fast-tracking Digitalisation “Zoom, Microsoft Teams usage are rocketing” Marketwatch, April 2020 ‘Work from Home’ Initiatives by Companies Home-based Learning adopted by schools Worldwide “First-Quarter Demand Picked Up on Laptop Orders” Intel “Apple and Google partner on COVID-1

  23. Slide 23: ASMPT's Enabling Solutions

    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

  24. Slide 24: Q2 2020 Growth Drivers For ASMPT

    APPLICATIONS Advanced Packaging China Supply Chain Q2 2020 Localisation Growth Drivers For ASMPT 5G Optoelectronics 24

  25. Slide 25: Digital Acceleration Opportunities in China

    Digital Acceleration Opportunities in China Crisis Opportunity Source: Trendforce and Nikkei Asian Review reporting 25

  26. Slide 26: 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 2023: 417mil New 5G Big Data Handsets Cloud Servers Source: IDC, 2019 ASMPT Solutions for 5G: Smart Consumer “Power” Up All Industries Photonic

  27. Slide 27: Complete CIS Camera Assembly Solution

    Complete CIS Camera Assembly Solution Market Leader for Unique In-line Solutions SECURITY CHECK APPROVED IDEALine TM ACamLine TM AUTOPIA FT (CMOS Image Sensor Solution) (Automotive Camera Assembly Solution) (Automatic Camera Testing System) Smartphone Automotive Solutions Solutions 27

  28. Slide 28: Advanced Packaging Enables Heterogeneous Integration

    Advanced Packaging Enables Heterogeneous Integration S I P LACE CA NE X X LAS E R 1 2 05 Die Attach & SMT PVD | ECD Laser Separation Wafer & Panel Recon Bumping, TSV & RDL Wafer Dicing & Grooving IPD tool O RCAS NUCLE US X P M NUCLE US Compression mold Pick & Place End Applications: HBM Bonder Wafer

  29. Slide 29: Hybrid Bonding Solution

    Hybrid Bonding Solution Next Generation Heterogeneous Integration Technology Bringing Heterogeneous Integration to the next level to enable ASM Advanced Packaging Technology enables high performance device, driving for future AI & HPC technology Hybrid bonding solution for Heterogeneous Integration

  30. Slide 30: Future Growth Drivers for OPTO Business

    Future Growth Drivers for OPTO Business MiniLED Market Size CAGR (2019 – 2025) Market Size CAGR (2019 – 2025) MicroLED Medium to Large RGB / BLU Display ~ 35% ~ 131% Small Gadget & Transparent Display Fast Growing Applications Source: LEDInside, Sep 2019 63% 35% 31% 118% 91% 75% Automotive Digital L

  31. Slide 31: Mini & Micro LED Solution: Mass Transfer

    Unique and Ready for Mass Production Mini & Micro LED Solution MASS TRANSFER Up to 300,000 chips per bonding cycle 31

  32. Slide 32: Booming Applications in Photonics Market

    Booming Applications in Photonics Market Si Photonics Market Size (USD’M) Source: Yole, 2020 32

  33. Slide 33: IIoT & Smart Manufacturing Powered Up by 5G Network

    IIoT & Smart Manufacturing Powered Up by 5G Network Factory in Factory in Location A Location C Industrial IoT Factory in Location B ~ 24% CAGR (2019 – 2023) Source: Marketwatch, Sep 2019 Factory in Location D 33

  34. Slide 34: Digital Technologies Enabling the Autonomous Driving Experience

    Digital Technologies Enabling the Autonomous Driving Experience 5G NETWORK MEMS POWER DISPLAY 34

  35. Slide 35: Outlook

    Outlook & ASM & Pacific Technology

  36. Slide 36: Outlook

    OUTLOOK Outlook  Global full year 2020 growth projections revised downwards from -3.0% to -4.9% by IMF during June 2020 review.  Threat from a second wave of COVID-19 infection and continued fallout from the worsening US-China tension remains a global concern for 2H2020.  In light of these uncert

  37. Slide 37: Industry Growth Forecast (2020)

    Industry Growth Forecast (2020) OUTLOOK Semiconductor Industry Forecast Global Assembly & Packaging Equipment Market 40% Gartner, Apr-20 -0.9% 30% 20% Omdia, Apr-20 2.5% 10% IDC, May-20 -4.2% 0% -10% Cowan LRA Model, May-20 7.6% -20% Semiconductor Intelligence, May-20 -6.0% -30% -40% 2013 2014 2015

  38. Slide 38: Recent Awards & Recognition

    AWARDS Recent Awards & Recognition VLSI Awards 2019 Latest 38

  39. Slide 39: Q2/1H 2020 Financial Highlights

    Q2/1H 2020 Financial Highlights

  40. Slide 40: Q2/1H 2020 Group Bookings

    FINANCIAL REVIEW Q2/1H 2020 Group Bookings QoQ Growth: Q2 2020 Bookings 1H 2020 Bookings -29.4% USD YoY QoQ USD YoY HoH 800 700 600 Group 472m -21.6% -29.4% 1,141m +7.4% +19.0% 500 400 300 Semi Solutions 227m -8.1% -26.7% 537m +14.2% +21.7% 200 Segment 100 0 Materials Q1 14 Q2 15 Q3 16 Q4 17 Q1 19 Q

  41. Slide 41: Q2/1H 2020 Group Billings

    FINANCIAL REVIEW Q2/1H 2020 Group Billings QoQ Growth: Q2 2020 Billings 1H 2020 Billings +27.8% USD YoY QoQ USD YoY HoH Group 557m +19.5% +27.8% 992m +5.9% -10.5% 600 400 Semi Solutions 279m +33.8% +43.0% 473m +16.6% -4.5% 200 Segment 0 Materials Q1 14 Q2 15 Q3 16 Q4 17 Q1 19 Q2 20 74m +28.2% +43.2%

  42. Slide 42: Q2/1H 2020 Group Financial Highlights

    FINANCIAL REVIEW Q2/1H 2020 Group Financial Highlights Q2 2020 1H 2020 Q2 2020 1H 2020 YoY QoQ YoY HoH Bookings (USD) 472m -21.6% -29.4% 1,141m +7.4% +19.0% Revenue (USD) 557m +19.5% +27.8% 992m +5.9% -10.5% Gross Margin 35.2% -54 bps +169 bps 34.5% -34 bps -29 bps EBIT (HKD) 457m +107.4% +269.6% 58

  43. Slide 43: Q2/1H 2020 Segment Results – Semiconductor Solutions

    FINANCIAL REVIEW Q2/1H 2020 Segment Results – Semiconductor Solutions Q2 2020 1H 2020 Amount YoY QoQ Amount YoY HoH Bookings (USD) 227m -8.1% -26.7% 537m +14.2% +21.7% Billings (USD) 279m +33.8% +43.0% 473m +16.6% -4.5% Gross Margin 42.9% +211 bps +162 bps 42.2% +219 bps +16 bps Segment Profit (HKD)

  44. Slide 44: Q2/1H 2020 Segment Results – Materials

    FINANCIAL REVIEW Q2/1H 2020 Segment Results – Materials Q2 2020 1H 2020 Amount YoY QoQ Amount YoY HoH Bookings (USD) 78m +32.7% -11.8% 167m +59.3% +25.2% Billings (USD) 74m +28.2% +43.2% 126m +15.6% -3.2% Gross Margin 16.9% +546 bps +838 bps 13.5% +250 bps +409 bps Segment Profit (HKD) 58m +193.7% +

  45. Slide 45: Q2/1H 2020 Segment Results – SMT Solutions

    FINANCIAL REVIEW Q2/1H 2020 Segment Results – SMT Solutions Q2 2020 1H 2020 Amount YoY QoQ Amount YoY HoH Bookings (USD) 167m -43.7% -38.4% 437m -10.3% +13.7% Billings (USD) 204m +2.2% +8.0% 393m -6.9% -18.7% Gross Margin 31.3% -616 bps -101 bps 31.8% -409 bps -225 bps Segment Profit (HKD) 159m -24.

  46. Slide 46: Free Cash Flow and Capital Investment

    Free Cash Flow and Capital Investment FINANCIAL REVIEW Free Cash Flow (HK$ m) 2,500 2,000 1,500 1,000 2,116 1,604 500 1,108 1,095 806 418 605 437 0 2013 2014 2015 2016 2017 2018 2019 1H 2020 Capital Investment (US$ m) 200 175 150 125 100 75 50 104 88 90 72 82 82 80 25 55 0 15 _ 2015 . , 2016 ^ * 201

  47. Slide 47: Financial Metrics

    Financial Metrics FINANCIAL REVIEW Return on Invested Capital (ROIC) Return on Equity (ROE) 40% 30% 35% 25% 30% 20% 25% 20% 15% 15% 10% 10% 5% 5% 0% 0% 2014 2015 2016 2017 2018 2019 1H 2020 2014 2015 2016 2017 2018 2019 1H 2020 (Annualized) (Annualized) 47

  48. Slide 48: Working Capital Management

    Working Capital Management FINANCIAL REVIEW 12,000 Working Capital 300 Cash Conversion Cycle (Days) 10,000 250 8,000 200 HKD millions 6,000 150 4,000 100 2,000 50 0 0 2014 2015 2016 2017 2018 2019 1H 2020 2014 2015 2016 2017 2018 2019 1H 2020 Accounts Receivable 7,000 Inventory 6,000 6,000 5,000 5,0

  49. Slide 49: Slide 49

ASMPT — 1H 2020 Earnings Presentation on 6ix