Semiconductor Manufacturing International Corp. · HKEX:981
Semiconductor Manufacturing International — Investor Presentation (November 2014)
27 slides from Semiconductor Manufacturing International's investor presentation, November 2014
Slide 1: SMIC Presentation
SMIC Presentation NYSE: SMI HKSE: 0981-HK November 2014
Slide 2: Safe Harbor Statements
Safe Harbor Statements Under the Private Securities Litigation Reform Act of 1995 This presentation presentationcontains, contains,ininaddition additiontotohistorical historicalinformation, information, “forward-looking “forward-looking statements” statements” within within thethe meaning meaning “s
Slide 3: Agenda
Introduction China Semiconductor Opportunity Strategies for Profitable Growth Financial Performance Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 3 SMIC shall not be r
Slide 4: SMIC: Largest and Most Advanced IC Foundry in PRC
SMIC: Largest and Most Advanced IC Foundry in PRC Company Overview Strong Global Presence Established in 2000, headquartered in Shanghai China China Beijing Tianjin Listed both on HKSE and NYSE USA Italy China Headquarters The leading semiconductor foundry in China Santa Clara Shanghai Israel
Slide 5: SMIC Milestones
SMIC Milestones 2007 2012 Achieved Validated Collaborated End User status from with IBM on US Government 2009 28nm technology 2002 Licensed IBM 45nm 65nm volume 40nm volume 2014 Started production technology production production Established a JV 2000 2005 in SH 8’’ fab Started produ
Slide 6: The Leader of China Based Semiconductor Foundry
The Leader of China Based Semiconductor Foundry Beijing 12’’ Fab 36K/mth (55-90nm, 0.13um) Beijing JV 12’’ Fab (tool move-in) Shanghai 12’’Fab Tianjin 8” Fab 14K/mth (28/40/45nm) 39K/mth (0.13-0.35um) Shenzhen 8” Fab Shanghai 8’’ Fab (tool move-in) 96K/mth (0.11-0.35um) Fab Fab 3Q14 1Q14 2014 2014 T
Slide 7: Experienced Management Team
Experienced Management Team 1997–2009: Chairman, Hua Hong Group (first 8” foundry in China) Chairman 1995–1998: Vice Minister, Ministry of Electronics Wenyi Zhang 1983–1995: CEO, IRICO (largest TV CRT manufacturer in China) 2009–2011: President & CEO, HHNEC (foundry) Chairman 2007–2009: Pr
Slide 8: SMIC is Well Positioned to Capture Strong Demand from the China IC Industry
SMIC is Well Positioned to Capture Strong Demand from the China IC Industry SMIC’s Strong Position in China IC Ecosystem… …leading to strong growth in revenues from China 837 Material 578 Fabless 443 431 Equipment Fab-lite 229 213 Mask IP provider CHINA manufacturing IC ECOSYSTEM EDA tool Foundry 20
Slide 9: 3Q14 Financial Highlights
3Q14 Financial Highlights 3Q14 Financial Highlights Revenue: $522mm historical high excluding Wuhan, grew 2.0% QoQ Gross Margin: 25.9%, down 2.1ppts QoQ and up 4.9ppts YoY Profit attributable to SMIC: $47.5mm, down 16.3% QoQ, and up 11.8% YoY Total debt to equity ratio: 32.2%, down 7.5ppts Q
Slide 10: 4Q 2014 Guidance and 2014 Capex Guidance
4Q 2014 Guidance and 2014 Capex Guidance 2014 Capex Guidance 4Q 2014 Guidance (US$mm) -5% to -9% QoQ Revenue $475 to $496 million 1,000 Gross Margin 19.5% to 22.5% Non-GAAP Operating Expenses 50 (1) $99 to $103 million Foundry Operations(2) non-foundry operations(3) (1) Exclude the effect of employe
Slide 11: Prepared for Growth
Prepared for Growth SMIC Customer Count by Year SMIC NTO count by Quarter and Technology 400 200 160 300 Eurasia 120 ≦45nm 200 China 55-90nm America 80 0.11/0.13um ≧0.15um 100 40 0 0 Y08 Y09 Y10 Y11 Y12 Y13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 • Targeting 28nm production in 2015 1H. • Preparing both 8” and
Slide 12: Agenda
Introduction China Semiconductor Opportunity Strategies for Profitable Growth Financial Performance Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 12 SMIC shall not be
Slide 13: Rapid and Sustainable Growth of China IC Market
Rapid and Sustainable Growth of China IC Market China has become the world’s largest IC SMIC sees rapid growth of Chinese fabless market growth (US$bn) market (US$bn) revenue from China (US$mm) 2000 – China market share: 7% Chinese Fabless Global Fabless SMIC's China Revenue USA $64 ~3x Others $100
Slide 14: China IC Market Growth Drives Foundry Potential
China IC Market Growth Drives Foundry Potential Total China IC Market & Local Brands & Design Local foundries Revenue (US$bn) Local foundries Local design 3.2 Local brands* Local design 11.9 2014E Total China IC market 41.5 150.3 2.2 Local brands 4.2 2008 27.0 79.2 *Including local system companies
Slide 15: Benefiting from Industry-Friendly Policies
Benefiting from Industry-Friendly Policies Financing support Preferential treatment Government partnership JV with the investment companies Support for project finance Income tax relief owned by the local municipal Long-term financing from policy Funding from government R&D government bank
Slide 16: Agenda
Introduction China Semiconductor Opportunity Strategies for Profitable Growth Financial Performance Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 16 SMIC shall not be
Slide 17: Executing Three Prongs for Sustainable Profitability & Growth
Executing Three Prongs for Sustainable Profitability & Growth Fully Quality andutilize service, existing fully utilizing assets existing assets Differentiate technology, bringing added value& innovation Pushing onward with advanced technology and capacity SMIC Presentation All copyrights and IP belo
Slide 18: Fully Utilize Existing Assets
Fully Utilize Existing Assets Revenue and Profit* Improvement Delivering Quality 2,069 Improving Service 1,702 Revenue 1,319 Profit* Increasing Efficiency Providing Solutions (247) 23 173 US$mm Profitability 2011 2012 2013 Improved Productivity Improved Asset Turnover Unit: US$K/Headcount
Slide 19: Recent Differentiated Technology Roll out
Recent Differentiated Technology Roll out • In mass production Bank card IC • 4 customers engaged BSI CMOS • 0.13um 1.3M pilot production Image Sensors • 0.13 8M and 0.11 5M NTOs Fingerprint IC • In mass production • Both Overseas and Chinese 55nm e-Flash • In mass production • Both Overseas and Chi
Slide 20: Pushing onward Advanced Technology and Capacity
Pushing onward Advanced Technology and Capacity JIANGSU 12-INCH BUMPING JV Purpose: Advanced bumping 40nm & below Status: JV with JCET established in JiangYin (near Shanghai) Near-term: 2015: 10K/mnth BEIJING 12” JOINT-VENTURE Long-term: 50K/mnth Purpose: 28nm & below IC production Status: Clean-roo
Slide 21: Agenda
Introduction China Semiconductor Opportunity Strategies for Profitable Growth Financial Performance Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 21 SMIC shall not be
Slide 22: Improved Efficiency and Sustained Profitability
Improved Efficiency and Sustained Profitability Strong Revenues Growth (US$mm) Improved Gross Profit Margins Record high revenue Net profit Gross Margin excluding Wuhan XinXin 541 534 522 27% 28% 26% 502 511 24% 25% 486 492 20% 20% 21% 19% 21% 461 451 12% 75 422 57 1% 47 41 42 48 333 307 (7%) 15 20
Slide 23: Capex and cash levels
Capex and cash levels 2014 Capex Cash and Cash Flow Guidance (US$mm) from Operations (US$mm) 1,000 Cash and bank balances Cashflow from Operations Debt/Equity 45.2% 43.1% 38.5% 39.7% 573.0 32.2% 473.5 462.5 437.6 362.0 269.6 205.4 169.4 119.0 134.0 50 Foundry Non-foundry 3Q13 4Q13 1Q14 2Q14 3Q14 Ope
Slide 24: SMIC's Successful Public Fund Raisings
SMIC's Successful Public Fund Raisings Successfully completed $200mm CB offerings (1) Pro-rata participation completed • Date: October 2013 • Amount: ~$86 million • Tenor: 5-year maturity and 3 year put • Date: May 2014 • Conversion Premium: 35% • Participants: CIC and Datang • Coupon: 0.00% • YTM:
Slide 25: Agenda
Introduction China Semiconductor Opportunity Strategies for Profitable Growth Financial Performance Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 25 SMIC shall not be
Slide 26: Concluding Remarks
Concluding Remarks Summary of Highlights The Right SMIC is in the right location – located in China, the Location largest and fastest growing IC market The Right SMIC is in the right market – strong focus on mobile Market communication business SMIC has a focused profitability strategy Focused
Slide 27: Thank You
Thank You Contact us: ir@smics.com SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 27 SMIC shall not be responsible for any party’s reliance on these materials.