Slide 1: Amkor Technology, Inc. Investor Presentation
Amkor Technology, Inc. Investor Presentation May 16, 2011
Slide 2: Disclaimer
2 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. These statem
Slide 3: Key Investment Highlights
3 Key Investment Highlights One of the World's Leading Outsourced Assembly and Test Providers Industry Pioneer and Technology Leader Driving Innovation for Over 40 Years In the Right Markets With the Right Customers Strong Competitive Position Favorable OSAT Industry Trends
Slide 4: Key Investment Highlights (continued)
Key Investment Highlights (continued) 4 Continued Focus on Profitable Growth and Strong Cash Flow Generation Continued Focus on Profitable Growth and Strong Cash Flow Generation Continued Focus on Profitable Growth and Strong Cash Flow Generation Managing Profitability Through Industry Cycles Managi
Slide 5: End Markets: In the Right Markets
End Markets In the Right Markets Significant Penetration in Key Devices Deep Ties With the Right Customers Strong OEM Presence Technology Flip Chip Growth 3-D Interconnects Copper Pillar Platform MEMS Gold Wirebonding to Copper Assembly and Test Industry Semiconductor Unit Growth IDM Outsourcing and
Slide 6: In the Right Markets
Smartphone 4.0 Billion Unit Sales From 2011-2015 (31% CAGR)(1) 48% of Handsets by 2015(1) Consumer Electronics Penetration in All Three Gaming Consoles "Always Connected" Devices Digital Home Networking 2014 Global IP Traffic at 64 Exabytes per Month (34% CAGR)(2) 2015 Global Mobile Data Traffic at
Slide 7: Deep Ties With the Right Customers
7 Deep Ties With the Right Customers Customer Share of 2010 Net Sales Top 10 - 54% / Top 25 - 80%
Slide 8: World-Class Manufacturing Infrastructure, Scale and Scope
8 World-Class Manufacturing Infrastructure, Scale and Scope 2010 Net Sales and Units by Factory C c Japan Philippines Taiwan China Korea Note: Based on units shipped excluding wafer bumping and test services
Slide 9: First Quarter 2011 Summary
Free Cash Flow is defined as Operating Cash Flow less Purchases of Property, Plant and Equipment - Refer to reconciliation of Non-GAAP measures in the appendix EBITDA is defined as net income before interest expense, income tax expense and depreciation and amortization - Refer to reconciliation of N
Slide 10: Profitable Growth
10 Profitable Growth Revenue and Gross Profit ($ in millions) Growing Scale with Record Revenues and Net Income in 2010 Managing Profitability through Cycles Strong Operating Results Careful Management of Operating Costs Focused R&D Efforts Selling, General & Administrative and Research & Developmen
Slide 11: Disciplined Capital Investment
11 Disciplined Capital Investment Spending Closely Aligned with Customer Opportunities Significant Control to Adjust Spending to Market Conditions Maintained Market Share Among Top Four OSAT Competitors (Tier 1) With the Lowest Capital Intensity Capital Intensity Capital Intensity is defined as Capi
Slide 12: Free Cash Flow Generation
12 Free Cash Flow Generation Consistent Positive Annual Free Cash Flow Generation Facilitates Continued Debt Reduction Free Cash Flow (1) ($ in millions) (3) (1) Free Cash Flow is defined as Operating Cash Flow less Purchases of Property, Plant and Equipment - Refer to reconciliation of Non-GAAP mea
Slide 13: Consistent Focus on Deleveraging
13 Consistent Focus on Deleveraging Total Debt, Net Debt and Cash Balance Debt Reductions 2005 to 1Q11 Total Debt Down $0.9 Billion Net Debt Down $1.1 Billion Subsidiary Debt Reduction of $56 Million From 2Q11 to 4Q11 Through Paydowns at Maturity Debt/EBITDA and Net Debt/EBITDA 2008 EBIT and EBITDA
Slide 14: Financial Reconciliation Tables
14 Financial Reconciliation Tables
Slide 15: Financial Reconciliation Tables
15 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 GAAP. However, we believe free cash flow to be relevant and useful information to our investors because it provid
Slide 16: Financial Calculation Table
16 Financial Calculation Table