ASE Technology Holding Co., Ltd. · TWSE:3711
ASE Technology — Q3 2002 Earnings Presentation
37 slides from ASE Technology's earnings presentation, Oct 29, 2002
Slide 1: ASE Group 2002 Q3 Institutional Investors Conference
ASE Group 2002 Q3 Institutional Investors Conference October 29, 2002
Slide 2: Safe Harbor Notice
Safe Harbor Notice This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although these forward-looking statements which may include statements regarding our future results of o
Slide 3: Future Trends in IC Packaging & Testing Industry
Future Trends in IC Packaging & Testing Industry
Slide 4: Future Trends in IC Packaging & Testing Industry
Future Trends in IC Packaging & Testing Industry Accelerated Outsourcing Driven by Demand for Advanced Packaging & Testing Capacities and Capabilities IC Packaging Value-adds Shifting from Process to Material Cluster Effect 4
Slide 5: Outsourcing By IDMs
Outsourcing By IDMs IDMs Increasing the Use of Semiconductor Manufacturing Service Providers IDMs are increasingly rationing their resources to focus on their core competencies--design and marketing Industry downturns put focus on cost reduction IDMs have significantly reduced investment in de
Slide 6: Technology Roadmap
Technology Roadmap Wafer 0.35um 0.25um 0.18um 0.13um 0.09um Geometry Single-In- 70um 60um 50um 45um 40um Line Wirebond 2 Row 80/45um 80/40um 70/35um 60/30um 50/25um Pad Pitch Staggered 3 Row 90/45um 80/40um 70/35um 60/30um Staggered Tester Speed 50/100 100/200 200/400 200/800 400/1600 (Clock Rate Te
Slide 7: Paradigm Shift in Customer Requirement to Integrated Solution
Paradigm Shift in Customer Requirement to Integrated Solution Solution Focus Technology • Integrated solution including Focus substrate design and close partnership with complementary service Value providers to reduce cycle Cost time becomes necessary, Focus • Advanced packaging and together with co
Slide 8: Commitment to R&D Investment
Commitment to R&D Investment Driving Technology Lead US$ Million 50 45 41 39 40 30 26 26 20 15 15 17 15 14 12 9 9 10 6 6 7 5 3 0 2000 2001 2002 1H ASE Amkor SPIL ChipPAC STATS ASAT Source: Public information 8
Slide 9: Advanced Packaging
Advanced Packaging (BGA+Flip Chip+BCC) as % of Total Assembly Revenue 60% 57% 53% 54% 53% 49% 51% 47% 40% 20% 0% Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 9
Slide 10: Advanced Packaging
Advanced Packaging Fine Pitch as % of Total Assembly Revenue 60% 54% 55% 50% 51% 46% 47% 43% 40% 20% 0% Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 10
Slide 11: Semiconductor Back-end Capacity Requirement
Semiconductor Back-end Capacity Requirement US$ Billion 40 34 32 33 29 30 28 $17 bn 25 22 20 24 18 16 20 Semicon Back-end Revenues from 10 Incremental Capacity Semicon Back-end Revenues from 2000 0 Capacity 2000 2001 2002 2003 2004 2005 Source: Dataquest 2002, company estimates 11
Slide 12: Commitment to Capital Expenditure
Commitment to Capital Expenditure US$ Million 900 855 600 480 333 350 277 300 242 209 229 150 159161 145 108 84 109 100 93 58 56 46 62 20 12 0 1999 2000 2001 2002 E ASE Amkor SPIL ChipPAC STATS ASAT Source: Public information 12
Slide 13: Well-positioned for IDM Revenue Pickup
Well-positioned for IDM Revenue Pickup IDM as % of Total Revenue 60% 55% 54% 48% 50% 48% 45% 41% 40% 20% 0% Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 13
Slide 14: Technology Evolution Changes The Value Chain
Technology Evolution Changes The Value Chain PDIP SOJ QFP BGA Flip Chip 8 Leads 32 Leads 208 Leads 256 Balls 1100 Balls 13% 6% 15% 40% 15% 30% 23% 30% 25% 21% 22% 6% 8% 4% 6% 11% 17% 6% 11% 35% 45% 36% 13% 26% 36% 1984 1998 1999 2000 2003 Leadframd/Substrate Inspect & Test Mold/Underfill Wirebond/Bu
Slide 15: Global Market of Organic IC Substrate
Global Market of Organic IC Substrate 7,173 CAGR: 21% CAGR: 19% 2,603 CAGR: 26% Source: Prismark 15
Slide 16: Bumping Volume
Bumping Volume Piece 40,000 31,211 30,000 20,000 16,199 14,643 13,937 11,148 9,598 10,000 7,579 0 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 16
Slide 17: Revenue Performance: ASE vs. Industry
Revenue Performance ASE V.S. Industry YoY Growth 60% 54% 42% 38% 40% 31% 26% 21% 25% 20% 14% 7% 1% -6% 3% 0% 0% -5% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2001 -5%-21% 2002 -10% -8% -6% -2% -19% -20% -16% -20% -31% -27% -24% -34% -25% -40% -27% -43% -36%
Slide 18: Revenue Performance: ASE vs. Industry
Revenue Performance ASE vs. Industry YoY Growth 225% 208% 200% 10-year average revenue growth rate multiple: 2 175% 150% 125% 100% 71% 75% 63% 57% 56% 46% 42% 50% 32% 37% 29% 19% 25% 10% 10% 7% 4% 9% 0% -25% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 -9% -8% -25% -50% -32% ASE Industry Indust
Slide 19: ASE Inc. Consolidated Financial Results
ASE Inc. Consolidated Financial Results * 2002 financial numbers are unaudited
Slide 20: Consolidated Income Statement: 2002 Q3 Sequential Comparison
Consolidated Income Statement 2002 Q3 Sequential Comparison Sequential (NT$ Million except EPS) 2002 Q3 % 2002 Q2 % Change Net Revenues: Assembly 9,206 77.6% 8,437 77.9% 9.1% Testing 2,655 22.4% 2,390 22.1% 11.1% Others 0 0.0% 1 0.0% Total Net Revenues 11,861 100.0% 10,828 100.0% 9.5% Gross Profit 1
Slide 21: Consolidated Income Statement: 2002 Q3 YoY Comparison
Consolidated Income Statement 2002 Q3 YoY Comparison YoY (NT$ Million except EPS) 2002 Q3 % 2001 Q3 % Change Net Revenues: Assembly 9,206 77.6% 6,407 76.4% 43.7% Testing 2,655 22.4% 1,970 23.5% 34.8% Others 0 0.0% 4 0.0% Total Net Revenues 11,861 100.0% 8,381 100.0% 41.5% Gross Profit 1,885 15.9% 70
Slide 22: Consolidated Revenue Growth
Consolidated Revenue Growth NT$ Million 15,000 30% 11,861 11,250 21.2% 10,828 10,255 10,044 10,000 20% 8,482 8,381 15.9% 15.1% 14.0% 12.4% 10.4% 8.6% 8.5% 5,000 10% 2,383 1,640 1,885 1,437 1,248 1.9% 968 882 708 -595 -697 -139 -226 28 221 0 0% -1.4% -2.2% 0.3% Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/
Slide 23: Monthly Revenue Trend
Monthly Revenue Trend NT$ Million 4,021 3,984 4,000 3,848 3,919 3,857 3,653 3,692 3,667 3,484 3,594 3,405 3,567 3,196 3,225 3,126 3,126 3,030 3,048 3,018 3,062 2,882 2,870 2,899 3,000 2,771 2,856 2,828 2,771 2,830 2,677 2,596 2,516 2,541 2,504 2,489 2,767 2,456 2,228 2,132 2,154 2,358 1,913 2,000 1,
Slide 24: Selective Balance Sheet Information
Selective Balance Sheet Information (NT$ Million) Sep. 30, 2002 Jun. 30, 2002 Change Cash and Cash Equivalent 8,086 7,608 6.3% Short-term Investments 4,359 3,986 9.4% Long-term Investments 6,673 6,746 -1.1% Total Assets 104,888 102,451 2.4% ST Bank Debt - Revolving Credit 6,529 6,267 4.2% - Current
Slide 25: 2002 Q3 Top Ten Customers
2002 Q3 Top Ten Customers ASE Group Assembly Testing ATI ATI ATMEL ATMEL ESS CONEXANT ESS IBM DSP IBM KAWASAKI ESS LSI MOTOROLA LSI MOTOROLA NVIDIA MOTOROLA NVIDIA RFMD NVIDIA SIS SIS PHILIPS STM STM SIS VIA VIA VIA Top 5 41% 42% 41% of Total Sales Top 10 56% 59% 58% of Total Sales 25
Slide 26: Market Segment Exposure
Market Segment Exposure 2002 Q2 2002 Q3 Others Others Automotive & 1% 1% Communications Automotive & Communications Consumers Consumers 34% 32% 35% 30% Computing Computing 33% 34% 26
Slide 27: Assembly Operations
Assembly Operations
Slide 28: Assembly Operations
Assembly Operations NT$ Million 10,000 30% 9,206 8,142 8,437 8,075 7,815 8,000 6,274 6,407 18.5% 20% 18.5% 17.9% 17.2% 6,000 16.4% 12.4% 13.2% 4,000 10% 2,000 1,507 1,494 1,508 1,580 1,282 779 847 0 0% Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Revenue Gross Profit Gross Margin 28
Slide 29: Assembly Operations – Package Revenue Breakdown
Assembly Operations – Package Revenue Breakdown NT$ Million 10,000 9,206 8,437 8,142 8,075 7,815 20% 8,000 19% 21% 6,407 19% 18% 6,274 12% 6,000 13% 13% 12% 16% 23% 20% 15% 14% 16% 14% 12% 13% 18% 4,000 14% 16% 53% 52% 54% 54% 47% 2,000 49% 53% 0 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 BGA & other
Slide 30: Assembly Operations – End-Application Revenue Breakdown
Assembly Operations – End-Application Revenue Breakdown 100% 1% 1% 24% 27% 28% 24% 29% 28% 33% 80% 60% 30% 32% 40% 34% 39% 34% 31% 40% 20% 38% 42% 43% 37% 36% 34% 35% 0% Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 PC Communication Consumer/Auto Others 30
Slide 31: Test Operations
Test Operations
Slide 32: Test Operations
Test Operations NT$ Million 4,000 40% 3,106 3,000 28.2% 30% 2,655 2,390 2,204 2,179 2,227 1,970 2,000 20% 10.8% 1,000 876 10% 4.7% 5.5% 287 104 -139 -58 132 -34 0 0% -1.5% Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 -2.6% -1,000 -7.1% -10% Revenue Gross Profit Gross Margin 32
Slide 33: Test Operations – Test Revenue Breakdown
Test Operations – Test Revenue Breakdown NT$ Million 4,000 3,106 3,000 9% 2,655 8% 2,390 2,204 2,179 2,227 10% 1,970 6% 7% 10% 8% 7% 8% 2,000 8% 10% 8% 9% 12% 83% 83% 86% 1,000 82% 84% 83% 79% 0 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Final Test Engineering Test Wafer Sort 33
Slide 34: Test Operations – End-Application Revenue Breakdown
Test Operations – End-Application Revenue Breakdown 100% 1% 1% 2% 2% 3% 4% 4% 32% 30% 31% 33% 80% 35% 35% 34% 60% 40% 36% 36% 39% 33% 34% 38% 40% 20% 28% 29% 31% 29% 29% 27% 24% 0% Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 PC Communication Consumer/Auto Others 34
Slide 35: Capital Expenditure
Capital Expenditure Machinery & Equipment US$ Million 80 77 64 60 53 40 34 31 26 25 26 25 26 22 23 19 20 20 16 16 13 8 6 3 2 0 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Assembly Capex Testing Capex Material Capex 35
Slide 36: Capacity Expansion
Capacity Expansion 5,000 4,101 4,169 4,179 3,965 3,780 * 3,912 4,032 4,000 3,000 2,000 1,059 1,052 1,051 1,082 1,036 1,048 1,058 1,000 0 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 # of Wirebonders # of Testers * Note: 400 wirebonders written-off in Q4/01 36
Slide 37: For more information regarding ASE Group
For more information regarding ASE Group http://www.aseglobal.com For all inquiries, suggestion, and comments ir@aseglobal.com 37