Solar Applied Materials Technology Corp. · TPEX:1785
Solar Applied Materials Technology — Investor Presentation (September 2022)
37 slides from Solar Applied Materials Technology's investor presentation, September 2022
Slide 1: Investor Presentation
Investor Presentation September 2022
Slide 2: Disclaimer
Disclaimer ▪ This document is provided by Solar Applied Materials Technology Corp. (the "Company"). Except for the numbers and information included in the Company's financial statements, the information contained in this document has not been audited or reviewed by any accountant or independent expe
Slide 3: Table of Contents
PART 1 Understandings PART 2 Table of Trends & Technologies Contents PART 3 Prioritization PART 4 Measurement 3
Slide 4: Understandings
PART 1 Understandings 4
Slide 5: SolarTech: A Leading Circular Materials Technology Company
Circular Economy We are A Leading Circular Materials Technology Company with an extensive expertise in the fields of material science, chemistry and metallurgy SolarTech We are UNIQUE because we provide truly innovative material solutions to solve our customers’ most complex technical challenges Adv
Slide 6: Enabling circular economy
Waste Resources Scrap / Spent Solution / Electronic Waste End of Life High Purity Metals Materials Au Ag Pt Ru Enabling A CLOSED-LOOP Ga Pd Ta In circular SOLUTION economy Electronic Products Advanced Smartphone / PC / Server / Display / Technology Automobile Materials Sputtering Target / Evaporatio
Slide 7: SOLAR at a glance
SOLAR at a glance NT$31.4 Bn NT$22.2 Bn 1978 2005 1,662 Total Sales in 2021 Founded Listed (1785 TT) US$740 Mn Employees (2021) +17.6% YoY Market Cap as of July, 2022 Tainan, Taiwan NT$5.4 Bn Solar’s Industry Position Headquarters Value Added Sales in 2021 +20.4% YoY World No.1 Value Added Sales Bre
Slide 8: Company milestone
Company milestone Alloy design and target manufacturing for thin film applications More Than Target SEMI Digital Transformation OE (Optoelectronics) SEMI Drive Digital Cu MDS Sputtering Target Transformation to (Magnetic Data Storage) (FPD / PV / LED) Ta Expand Margin Sputtering Target 1st in SEMI i
Slide 9: Why invest in Solar?
We are a global leader in advanced materials solutions. We are the world‘s largest manufacturer of sputtering targets for hard-disk drives (HDD), as well as Taiwan's largest manufacturer of sputtering targets for semiconductors. Our unique foundation as a circular materials company and our ability t
Slide 10: Strong track record of growth generation
Strong track record of growth generation Precious Metals Sales (NT$mn) Value Added Sales (NT$mn) Precious Metals Sales 25,948 5,406 5,072 22,175 4,713 4,490 16,174 16,914 3,741 Precious metals are sold mainly as part of raw materials in products. In 12,012 addition to the growth of business volume,
Slide 11: Led by a strong team of experienced professionals
Led by a strong team of experienced professionals VP VP AVP AVP Chairman/President Intelligence Operations Semi & Storage BU Optoelectronics BU Recycling BU Center C.F. Huang Gary Chung Seward Hu Vincent Huang Ben Hong 黃啟峰 鍾怡歡 胡書華 黃明山 洪本展 30 of years 25 of years 20 of years 25 of years 30 of years o
Slide 12: Trends & Technologies
PART 2 Trends & Technologies 12
Slide 13: Key megatrends that propel our growth
Key megatrends that propel our growth Megatrend 1 Megatrend 2 Megatrend 3 Increasing complexity of The growing importance of Companies’ shift electronic devices local supply chains towards a requiring new solutions and and substitutes circular economy more varieties of alloy materials More Volumes M
Slide 14: Megatrend 1: Increasing complexity of electronic devices
The era of the Data-Centric Environment requires a wide range, and a large quantity of chips, storage, and display solutions to deliver the myriad functions and applications Megatrend 1 being designed. Increasing complexity of With these new drivers, there comes an expectation for electronic devices
Slide 15: Industries driven by the era of the data-centric environment
Industries driven by the era of the data-centric environment Data Centric & AI Big data Artificial Intelligence Autonomous Vehicles PC & Internet Mobile Virtual/ Augmented Reality 2000 2010 2025 100’s of chips per household? One PC One mobile device per household 1000’s of chips per factory? per per
Slide 16: Material Spend per Wafer
Semiconductor Solutions More complex chip drive more materials demand $1,000 Global Sputtering Target for Semi 3 nm (Value in US$mn) 2,237 $800 Material Spend per Wafer 1,305 5 nm 10 nm $600 7 nm 2020 2027 $400 16 nm Sputtering Target Consumption Other 28 nm regions, $200 40 nm 65 nm 25% Asia- 90 nm
Slide 17: Our products are used in thin film deposition processes
Semiconductor Solutions Our products are used in thin film deposition processes Target (-) Ion Implantation Lithography Plasma Wafer Semiconductor Manufacturing Process Thin Film Deposition Etching Wafer Chip Characteristics of Our Materials - High Purity - Proper texture - High relative density Pla
Slide 18: Data explosion drive higher HDD capacity demand
Storage Solutions Data explosion drive higher HDD capacity demand HDD Revenue TAM (US$bn) Average HDD platters in each drive 2017-2027E 4.63 4.08 3.31 $29B 2.63 2.85 2.46 $24B 24 24 22 22 2016 2017 2018 2019 2020 2021 20 Seagate Product Roadmap 2019 2020 2021 2022 2023 2024 2025 2026 Rise of Growth
Slide 19: Megatrend 2: The growing importance of local supply chains
The pandemic and supply-chain disruption have inspired a build-out of local supply chains, particularly for critical materials and components. Megatrend 2 Taiwan remains the largest semiconductor hub in the world. The growing importance of local supply chains Growing needs for finding local substitu
Slide 20: Establish partnership with customers to develop designed-in solutions
Establish partnership with customers to develop “designed‐in” solutions 4 - We provide customers the 1 - We work with our customers best solution to solve their to understand their current and manufacturing bottleneck future challenges 4 Customer 1 High Performance Products Technology & Rapid Engine
Slide 21: Megatrend 3: Companies' shift towards a circular economy
Stricter legislation and pressure from society continue to push companies for a lower carbon footprint. Megatrend 3 Increasing resource scarcity and need for closing the loop. Companies’ shift towards a Growing complexity of materials to recycle, in particular end-of-life materials. circular economy
Slide 22: Rising Environmental Awareness
Rising Environmental Awareness Government Regulations EU start carbon EU CBAM China to EU ban EU to achieve China to border become fully hit carbon fossil fuel car climate- achieve climate- adjustment operational emission peak neutral neutral mechanism (CBAM) 2023 2026 2030 2035 2040 2050 2060 Apple
Slide 23: Prioritization
PART 3 Prioritization 23
Slide 24: Strategic shift towards high-value markets
Strategic shift towards high-value markets 2016 – 2020 2020 – 2022 2022 & Beyond Transformation Focus Acceleration • Defined new strategy • Purpose-built portfolio • Growing semiconductor shares • Streamlined business focused on high-end • Provide adjacent technologies portfolio; Introduction of sem
Slide 25: Scale Up, Optimize our Portfolio, Level up in Tech
Scale Up ▪ Capacity investments synchronized to customers’ expansion plans. ▪ Ability to tackle industry challenges & supply reliability. ▪ Continue localizing footprint close to customers in Taiwan and elsewhere in the world. Optimize our Portfolio ▪ Commitment to relevant portfolio breadth in high
Slide 26: Provide Best-fit Solutions to Customers' Most Advanced Technology
Level up in Tech Provide Best-fit Solutions to Customers’ Most Advanced Technology Technical Requirements for Flexible Materials The New HAMR Recording Technology Rising demand for greater storage capacity Diversified Application Size ▪ Data growth fuel the demand for larger HDD Capacity. ▪ Current
Slide 27: Digital transformation to deliver maximum value
Achieve Operational Excellence Digital transformation to deliver maximum value Connecting Our Factories… One Standard Transformed With Automation • Efficient and reliable sourcing • Better execution • Leaner, simpler product line-up - Yield optimization - Predictive algorithms - Proactive maintenanc
Slide 28: Reducing carbon emissions through material recycling
Responsible Business Reducing carbon emissions through material recycling 469,782 tons Metals Recycled (kg) of carbon emissions saved 320,000 per year equivalent to 300,000 291,118 carbon footprint generated by 278,986 105,097 people 280,000 per capita carbon emission in the 252,718 260,000 world (2
Slide 29: Continued progress in ESG
Responsible Business Continued progress in ESG GHG Emission – Scope 1+2 (ton CO2e) Total Energy Consumption (MWh) Total Waste Generation (ton) Intensity (ton CO2e/NT$ million) Intensity (kWh/NT$ thousand) Recycling Rate (%) 100000 7.23 7.5 6000 55 3.62 3.55 44.14 6.67 4 95000 45 7 31.92 44000 5000 2
Slide 30: SolarTech's unique capabilities underpin our success (4Ps)
SolarTech’s unique capabilities underpin our success (4Ps) Products Processes People Partnerships z z World-class materials Unique process Committed team of Deep customer science capabilities; technologies with materials science and partnership from proprietary alloy portfolio proven execution at sc
Slide 31: Measurement
PART 4 Measurement 31
Slide 32: Our revenue model and trends
Our revenue model and trends Precious Metals Sales (NT$mn) Value Added Sales (NT$mn) 25,948 5,406 22,175 5,072 4,713 4,490 16,174 16,914 3,741 12,012 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Precious metals are sold mainly as part of raw Value-added sales (VAS) reflect the true materials in
Slide 33: Strong profitability
Strong profitability Operating Profit (NT$mn) operating profit as % of value Gross Profit (NT$mn) added sales 2017-2021 CAGR: 22% 2017-2021 CAGR: 40% 3,605 1,597 1,617 36% 1,433 3,046 2,901 30% 28% 2,248 1,649 745 16% 423 11% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Slide 34: Income Statement Summary
Income Statement Summary NT$mn 2017 2018 2019 2020 2021 Revenue 15,754 20,887 21,987 26,665 31,355 Gross Profit 1,649 2,248 2,901 3,046 3,605 Operating Expenses 1,226 1,503 1,468 1,449 1,988 Operating Profit 423 745 1,433 1,597 1,617 Non Operating Income/(Loss) -257 -275 -185 -452 -40 Pretax Income
Slide 35: Balance Sheet Summary
Balance Sheet Summary NT$mn 2017 2018 2019 2020 2021 Total Assets 19,055 19,832 21,274 21,259 25,422 Cash 714 795 590 2,161 3,149 AR & NR 1,615 1,465 1,594 1,820 2,099 Inventories 5,484 6,927 7,407 7,893 9,474 Fixed Assets 7,079 6,384 7,031 6,877 7,321 Total Liabilities 14,471 14,662 13,275 12,752 1
Slide 36: Dividend Payout and Capex
Dividend Payout and Capex 1.5 1.2 1.0 2017 2018 2019 2020 2021 Payout Ratio (%) - - 48% 84% 71% Dividend Yield* (%) - - 2.4% 2.5% 3.8% Capex (NT$ mn) 142 266 991 352 706 Capex to Sales (%) 0.9% 1.3% 4.5% 1.3% 2.3% *Note: Cash yield is calculated based on Solar’s market cap on the day before ex -divi
Slide 37: Contact Information
Contact Information Dr. Kerry Hsieh, Maggie Chin, Investor Relations Finance Division Email: shareholders@solartech.com.tw Phone Number: 06-5110123 37
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