Amkor Technology, Inc. · NASDAQ:AMKR
Amkor Technology — Debt Investor Presentation (May 2013)
15 slides from Amkor Technology's debt investor presentation, May 15, 2013
Slide 1: Disclaimer
Exhibit 99.1 Disclaimer This Presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, revenues, earnings, cash flows, capital expenditures, working capital and other financial items. T
Slide 2: Transaction Overview
Transaction Overview ($ in millions) Sources Uses 6.375% senior notes add-on $200 General corporate purposes 190 Debt issuance premium 8 Inducement premium for Convertible Notes 15 Estimated fees and expenses 3 Total sources $208 Total uses $208 Pro forma capitalization 3/31/13 x EBITDA Adjustments
Slide 3: Pro Forma Debt Maturities
Pro Forma Debt Maturities Current Maturity Profile as of March 31, 2013: $1,578 Million ($ millions) $400 $345 $300 $255 $250 $150 $105 $0 $5 $0 $23 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Term loans Senior Notes Convertible Notes Total Pro Forma Maturity Profile as of March 31, 2013: $
Slide 4: Key Financial Highlights: LTM 1Q13
Key Financial Highlights: LTM 1Q13 Investing for Growth Opportunities Debt Increasing in Line with Improving Profitability and Growing Cash Flow Debt/EBITDA Under 3.0x EBITDA(1) Net Income $2.79 Billion Net Sales $542 Million $43 Million Adjusted(2) $592 Million Adjusted(2) $95 Million (1) EBITDA is
Slide 5: Mobile Communications Driving Semi Growth
Mobile Communications Driving Semi Growth $140 Semiconductor Industry Growth $120 Growth - $43B 2012 - $292B CAGR - 10% 2017F - $380B $112 Growth - $88B $100 CAGR - 5% Growth - $6B $80 CAGR - 2% $74 Growth - $15B $69 CAGR - 6% Growth - $11B $68 CAGR - 4% $60 $62 Growth - $6B $58 CAGR - 3% $47 $47 $4
Slide 6: World-Class Manufacturing Infrastructure, Scale and Scope
World-Class Manufacturing Infrastructure, Scale and Scope Korea 2.3M sf LTM 1Q13 Net Sales and Packaged Units by Factory Location China 1.0M sf 4% 3% 10% 13% 6% 12% 18% 49% 53% Japan 32% Taiwan 210k sf 850k sf Net Sales Units Philippines 1.4M sf Korea Philippines Taiwan China Japan 5.8 Million Sq. F
Slide 7: First Quarter 2013 Summary
First Quarter 2013 Summary 4Q 2012 (In millions, except per share data) 1Q 2012 1Q 2013 Actual Adjusted(3) Net Sales $655 $723 $723 $688 Gross Margin 16% 16% 18% 17% Net Income $12 $7 $27 $13 Earnings Per Diluted Share $0.06 $0.05 $0.13 $0.07 Free Cash Flow (1) ($65) ($49) ($49) ($14) EBITDA(2) $126
Slide 8: Profitability Trends
Profitability Trends Revenue and Gross Profit Selling, General & Administrative and ($ in millions) Research & Development ($ in millions) $3,500 30% $300 30% $3,000 $2,939 $242 $247 $2,776 $2,760 $2,792 25% $250 25% 23% $217 $219 $2,500 18% 20% $200 20% 15% 16% $2,000 15% $150 15% $1,500 10% 11% 10
Slide 9: Free Cash Flow and EBITDA
Free Cash Flow and EBITDA Free Cash Flow (1) EBITDA(2) ($ in millions) ($ in millions) $97 $676 $50 $527 $542 $521 ($93) ($144) 2010 2011 2012 LTM 1Q13 2010 2011 2012 LTM 1Q13 2012 and LTM 1Q13 Include $20 Million Payment for 2012 and LTM 1Q13 Include $50 Million for Loss Loss Contingency Contingenc
Slide 10: Capital Additions and Capital Intensity
Capital Additions and Capital Intensity 2013 Capital Additions of Around $525 Million to LTM 1Q13 Capital Additions Mix Largely Support Demand for Mobile Communications from Major Customers Infrastructure / R&D Based on Current Demand Expectations. Can be Fluid Over Time, Increasing or Decreasing fr
Slide 11: Credit Profile
Credit Profile Excluding Loss Contingency Accrual (1) Total Debt, Net Debt and Cash Balance $2.0 $500 $435 $467 2012 LTM 1Q13 $405 $413 $1.5 $1.6 $400 Debt/EBITDA 2.7x 2.7x $1.5 $1.4 $1.3 $1.1 $1.1 Net Debt/EBITDA 2.0x 1.9x $1.0 $300 $1.0 $0.9 EBIT ($M) $207 $213 $200 EBIT/Interest Expense 2.2x 2.2x
Slide 12: Financial Reconciliation Tables
Financial Reconciliation Tables ($ in millions) 2010 2011 2012 LTM 1Q13 Q112 Q412 Q113 Net Cash Provided by Operating Activities $543 $517 $389 $432 $56 $105 $99 Less: Purchases of Property, Plant and Equipment (446) (467) (534) (525) (121) (154) (113) (1) Free Cash Flow $97 $50 ($144) ($93) ($65) (
Slide 13: Financial Reconciliation Tables
Financial Reconciliation Tables ($ in millions) 2010 2011 2012 LTM 1Q13 Operating Income $374 $194 $153 $159 Plus: Equity in Earnings of Unconsolidated Affiliate 6 7 6 4 Less: Income Tax Expense (19) (7) (17) (19) Net Operating Profit After Tax (NOPAT) $361 $194 $142 $144 Average Debt $1,399 $1,355
Slide 14: Financial Reconciliation Tables
Financial Reconciliation Tables We define free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. Free cash flow is not defined by U.S. generally accepted accounting principles ("U.S. GAAP"). However, we believe free cash flow to be relevant and u
Slide 15: Financial Reconciliation Tables
Financial Reconciliation Tables 4Q12 2012 LTM 1Q13 Gross Margin 16% 15% 16% Plus: Loss Contingency Charge Divided by Net Sales 2% 2% 1% Adjusted Gross Margin 18% 17% 17% Net Income ($ in millions) $7 $42 $43 Plus: Loss Contingency Charge, Net of Tax 20 52 52 Adjusted Net Income $27 $94 $95 Earnings
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