Semiconductor Manufacturing International Corp. · HKEX:981
Semiconductor Manufacturing International — Q3 2019 Earnings Presentation
19 slides from Semiconductor Manufacturing International's earnings presentation, November 2019
Slide 1: SMIC Presentation
SMIC Presentation HKEX: 0981 OTCQX:SMICY November 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains, in addition to historical information, forward-looking statements. These forward-looking statements, including statements under “Fourth Quarter 2019 Guidance”, “Capex Summary” and the statements contained in the quotes of our Co-Chief Executive
Slide 3: I. Market Opportunity
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth 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. SMIC shall not be responsible for an
Slide 4: Rapid Growth of the China IC Market
RAPID GROWTH OF THE CHINA IC MARKET China: World’s Largest IC Market (US$bn) Chinese Fabless Market Growth (US$bn) Total China IC Market Revenue (US$bn) Chinese Fabless Global Fabless Total China IC Market Local Brands Local Design Local Foundries USA Japan China Others 204 106 64 100 95 89 87 89 20
Slide 5: II. SMIC Introduction
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. SMIC shall not be responsible for an
Slide 6: SMIC: Largest and Most Advanced IC Foundry in PRC
SMIC: LARGEST AND MOST ADVANCED IC FOUNDRY IN PRC Established Listed on #1 #4 Annual Revenue US$ in 2000 HKEX in PRC globally $3.36bn $3.1bn $ 2017 2018 Shareholding Structure SMIC’s Strong Position in China IC Ecosystem Strong Global Presence Material/ Equipment Datang Holdings Fabless Mask China C
Slide 7: Becoming Fundamentally Solid, Returning to Strong Growth
BECOMING FUNDAMENTALLY SOLID， RETURNING TO STRONG GROWTH Early Establishment Turnaround SMIC Annual Revenue Gearing up for New Growth (US$bn) 3.4 3.1 2.9 2.2 Foundry of Choice in China 2.1 2.0 1.6 1.7 Aiming to: 1.5 1.5 1.4 1.2 1.3 1.0 1.1 be a world-class, mainstream foundry 0.4 Y2002~2018, CAGR 30
Slide 8: SMIC Family of IC Manufacturing
SMIC FAMILY OF IC MANUFACTURING 444K TOTAL 8” EQUIV WPM 3Q19-end 222K 8” wpm 99K 12” wpm 112 50 58 38 52 3 8 SH TJ SZ SH BJ BJ-JV SZ Expansion Conditions: New Fabs • Market and customer demand • Technological readiness • Majority-owned advanced JV fab, Shanghai JV 12” 14nm and below • Partnership wi
Slide 9: III. SMIC Performance
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. SMIC shall not be responsible for an
Slide 10: Financial Summary
FINANCIAL SUMMARY Revenue (US$mm) Gross Margin Non-IFRS Opex (US$mm) Non-controlling interests (US$mm) 850 25% 277 833 23% 816 21% 31 19 271 17 0 257 3Q19 Results 4Q Guidance 3Q19 Results 4Q Guidance 3Q19 Results 4Q Guidance Bottom Top 3Q19 Results 4Q Guidance Bottom Top Bottom Top Bottom Top Revenu
Slide 11: Capex, EBITDA, and Cash Levels
CAPEX, EBITDA, AND CASH LEVELS Balance Sheet (US$bn) Capex (US$bn) 0.03 Liabilities 0.11 6.5 0.06 Assets 16.2 Non-Foundry Equity 2.5 2.1 9.6 1.8 Foundry 2017 2018 2019F Cash and EBITDA (US$mm) 56% 48% 49% 45% 45% 34% 38% 39% 33% Cash in hand * EBITDA 18% 16% 3% 12% 6% Gross Debt/Equity 1% -5% Net De
Slide 12: Investment Grade Credit Rating
INVESTMENT GRADE CREDIT RATING S&P investment grade BBB- long-term corporate credit rating since Oct 2013 Moody’s investment grade Baa3 corporate credit rating in Oct 2015 China Chengxin International Credit Rating Agency’s triple A rating in Nov 2015 Committed to Net Debt/EBITDA less than 2
Slide 13: IV. Strategies for Growth
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. SMIC shall not be responsible for an
Slide 14: Platform Strategy Driving Diversified Growth and Loading
PLATFORM STRATEGY DRIVING DIVERSIFIED GROWTH AND LOADING PLATFORMS PLATFORMS Flash Power CMOS RF IoT&Auto Management CIS Fingerprint Power+Flash+CIS Market Revenue (US$bn) Bluetooth Market Revenue (US$bn) Fingerprint & HV Market Revenue (US$bn) 86 83 85 87 88 80 78 8 7 7 7 7 7 7 4 5 3 3 2 1 2 2017 2
Slide 15: Entering New FinFET Era with Total Solution Strategy
ENTERING NEW FINFET ERA WITH TOTAL SOLUTION STRATEGY FINFET TOTAL SOLUTION TO ENABLE LONG-TERM COMMITMENT MASK MAKING Most advanced mask shop in Mainland China Full range of IP INTELLECTUAL PROPERTY FOUNDRY Full FinFET portfolio : 14/12nm, N+1… FINFET TOTAL Mainland China’s most advanced fab SOLUTIO
Slide 16: Business Opportunities
BUSINESS OPPORTUNITIES To best serve customers, SMIC is expanding its FinFET product portfolio with various applications under development Smartphones Smart TV & STB Networking Connectivity Automotive AI IoT FINFET MARKET REVENUE: 14NM AND BELOW FORECAST (US$BN) 83 76 72 66 62 57 53 2019F 2020F 2021
Slide 17: V. Concluding Remarks
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth 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. SMIC shall not be responsible for an
Slide 18: Aiming to Be a World-Class Foundry
AIMING TO BE A WORLD-CLASS FOUNDRY Execution Financial • 4 Years of Consecutive Growth • 2017, 2018 Institutional Investor, • Investment-grade credit rating Most Honored Company • $3.8bn cash on hand at the end of 3Q19 • ~$1.3bn EBITDA in 2019 • JV partnerships for advanced fabs Technology Positioni
Slide 19: 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. SMIC shall not be responsible for any party’s 19 reliance on these materials.
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