Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Investor Presentation (February 2016)
44 slides from Be Semiconductor Industries's investor presentation, February 2016
Slide 1: Investor Presentation February 2016
INVESTOR PRESENTATION February 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including , but not limited to, statements relating to e
Slide 3: Agenda
Agenda I. Company Overview II. Market III. Strategy IV. Financial Review V. Outlook & Summary February 2016 3
Slide 4: I. Company Overview
BeSi mam |. COMPANY OVERVIEW
Slide 5: Besi Overview
Besi Overview • Leading assembly equipment supplier with #1 and #2 positions in key products. 28.5% addressable market share • Broad portfolio: die attach, packaging and plating Corporate Profile • Strategic positioning in substrate and wafer level packaging • Global mfg. operations in 6 countries;
Slide 6: Company History
Company History 55% Die Attach Acquisitions 400 50% € 360.4 • 2000 2002 2005 2009 47.3% 45% Restructuring 300 Revenue (€ millions) • 2006 Dragon I complete: € 6 million cost savings Gross Margin (%) • 2008 Dragon II complete: € 15 million cost savings • 2010 Plan: € 7.0 million cost savings. Headcou
Slide 7: Best in Class Product Portfolio
Best in Class Product Portfolio Die Attach Packaging Die Bonding AMS-i FCL •2100 xP plus / hS New • Leadframe • X New • 2100 sD plus / PPP plus • MEMS • P New • Sensors • P/X New • 2009 SSI • 2100 DS • 2100 SC Multi Module Attach AMS-W/LM FSL • 2200 evo • Substrate • Sorting • 2200 evo plus • 2200 e
Slide 8: Product Positioning
Product Positioning Semiconductor Manufacturing Equipment (2014: $40.1B) Front end: $32.2B (80%) Assembly: $3.9B (10%) Test: $3.9B (10%) Semiconductor Assembly Process Dicing Die Attach Wire Bond Packaging Plating Die Sort Die Bond Wire Bond Molding Trim & Form Plating Leadframe Assembly Substrate B
Slide 9: Customer Ecosystem
Customer Ecosystem Customers OEMs End Products IDMs Subcontractors • Blue chip customer base, top 10 = 60% of 2014 revenue • Leading IDMs and subcontractors. 60/40% split in 2014 • Equipment utilized to produce chips for leading fabless companies: Qualcomm, Broadcom, MediaTek • Long term relationshi
Slide 10: Current Operational Profile
Current Operational Profile Duiven & Drunen, (The Netherlands)* Cham, Radfeld, (Austria)* (Switzerland)* Chandler Suzhou Chengdu Korea Shanghai Leshan Sales Office Taiwan Shenzhen Production Site Malaysia Philippines Sales & Production Site Singapore* * R&D Site as of September 30, 2015 • Developmen
Slide 11: Summary Historical Financials
Summary Historical Financials • Record 2014 Results: • Revenue and orders +48.6% and 61.8% Year Ended December 31, YTD YTD • Gross Margin +4.0% to 43.8% (€ millions, except share data) 2012 2013 2014 2014 2015 • Net Income +341% to € 71.1 million • Net cash +€ 47.0 million Revenue 273.7 254.9 378.8
Slide 12: Stock Price Information
Stock Price Information Market profile improving: • € 745.43 million ($846.17 million) market capitalization as of October 22, 2015 • Upgraded to Euronext AMX mid cap index in March 2015 Liquidity has increased significantly over past three years: • Average daily volume: • 2013: 99,811 • 2014: 117,0
Slide 13: Dividend Trends
Dividend Trends Dividend EPS (diluted) Total Dividend Yield (a) 2.00 12.0% 1.87 1.80 10.0% 1.60 1.50 1.40 8.1% 1.25 8.0% Dividend yield 1.20 Dividend (€) 1.00 5.2% 6.0% 0.80 0.73 4.0% 4.0% 4.3% 4.0% 0.60 0.42 0.43 0.40 0.30 0.33 0.22 2.0% 0.20 0.20 Payout Ratio: 16% 30% 71% 77% 80% 0.00 0.0% 2010 20
Slide 14: II. Market
BeSi mam ll. MARKET
Slide 15: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Size YoY Growth Rate 5.0 28.1% 30% 4.0 14.9% 13.4% 20% 4.4 4.1 4.1 (US$ billions) 4.0 3.9 8.6% 3.6 10% 3.0 3.4 3.3 3.8 3.1 0% (3.9%) 2.0 (9.2%) -10% (11.4%) (13.6%) 1.0 -20% (22.4%) 0.0 -30% 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2019F
Slide 16: Assembly Equipment Market Composition
Assembly Equipment Market Composition Assembly Equipment Market * Besi Addressable Market * (2014: $3.9 billion) (2014: $1.7 billion) Lead Trim & Plating Other Form 2.0% Assembly 5.5% (Inspection, Wire Bonding Molds Dicing) 21.7% 13.5% 25.9% Die Bonding 39.7% Presses Plating 11.2% Die Attach 0.9% 59
Slide 17: Advanced Packaging Unit Volume and Market Share Are Increasing
Advanced Packaging Unit Volume and Market Share Are Increasing Advanced Packaging Silicon Demand Growth & Market Share 2010 - 2019 45 Advanced Packaging Wafers 38% 40% 37% Advanced Packaging Unit Market Share (%) 35% 40 34% 32% 35% 31% 35 CAGR 2010-2019: 21.1% 30% M wafers, 300MM Eq. 26% AP Market S
Slide 18: Driven Primarily by Growth in Internet Connected Devices
Driven Primarily by Growth in Internet Connected Devices • Key End Use Applications: • Mobile internet devices, connectivity, computing power, Big Data analytics, automotive • 35% CAGR device growth forecast over next 5 years • Powered primarily by devices used for IoT • Positive trajectory for smar
Slide 19: Requiring Changes in Process/Equipment Development
Requiring Changes in Process/Equipment Development Front End Today => Tomorrow Transistor scaling Lithography New structures 3D Back End Assembly More contacts Smaller pitches Thinner/denser more complex packages From simple Wire Bond to BGA/Flip Chip to complex 3D structures with TSVs, Stacked stru
Slide 20: Which Has Significantly Increased Equipment Spending for <25 Nano Nodes
Which Has Significantly Increased Equipment Spending for < 25 Nano Nodes • Spending on <25 nano nodes has increased from ~15% in 2011 to an estimated 70% of total spending in 2015 • Node shift below 25 nano = new assembly equipment capacity February 2016 20
Slide 21: Advanced Packaging Growth Favors Besi
Advanced Packaging Growth Favors Besi Greater Miniaturization High Growth End Greater Higher Accuracy Complexity User Areas: Datacon Esec Fico Die Attach • Die Sorting: DS 9000, WTT, TTR, Mobile internet, DLA • Die Bonding: ES 2009, ES2100 Autos, MEMS, Big • Flip Chip: DC 8800, ES2100 • TCB: DC 8800
Slide 22: And Is Reflected in Besi End User Application Trends
And Is Reflected in Besi End User Application Trends 2014 Spares/ Service Computer, 15% PCs LED 20% 3% • Mobile internet devices Industrial now equal 35% of 2008 10% Besi’s end user Service revenue 2% LED Industrial 3% Mobile 10% Internet Auto Devices • Automotive has also 17% 35% increased signific
Slide 23: New Smart Phone Designs Increase Besi's Addressable Market Potential
New Smart Phone Designs Increase Besi’s Addressable Market Potential Generation Generation Main Components Manufacturer IDM/OSAT Besi system Utilized - New 2012 2014 Processor X X Apple TSMC ->Amkor/Stats/ASE 8800FCQ, AMS-W/LM DRAM Memory X X Hynix/Micron Hynix/Micron 2100sD, FSL NAND Flash X X Hyni
Slide 24: Flip Chip/Wire Bond Process Shift Is Another Revenue Opportunity
Flip Chip/Wire Bond Process Shift Is Another Revenue Opportunity 2014* 2020* Wire Bonding Flip Chip Bonding Flip Chip Flip Chip $356 $406 29% 34% Wire Wire Bonding Bonding $861 $801 71% 66% Flip Chip Advantages Reduces board area Offers higher speed CAGR 2014 - 2020* by up to 95%. electrical Flip Ch
Slide 25: Thermo Compression Bonding Is An Emerging Assembly Technology
Thermo Compression Bonding Is An Emerging Assembly Technology TCB: Next Die Bonding Process Evolution: Wire Bonded BGA Stacked Die Memory Device • Besi has most advanced industry concept • 7 Axis bondhead, 2 bond heads/system • High throughput => 2x competition • User friendly compact design • Princ
Slide 26: Besi Has Gained Share In Its Addressable Markets
Besi Has Gained Share In Its Addressable Markets Besi Market Share Source: VLSI, May 2015 and Besi estimates 2012 2013 2014 Total Assembly Equipment Sales 8.6% 10.6% 12.7% Besi Addressable Market 21.4% 26.0% 28.4% Total Die Attach Equipment 26.8% 31.2% 34.7% Die Bonding 29.7% 39.2% 38.7% Flip Chip 2
Slide 27: And With Leading Edge Technology Customers
And With Leading Edge Technology Customers Die Attach Packaging In USD 2012 2013 2014 2015 (a) 2012 2013 2014 2015 (a) • Customers are largest semi mfrs. • Engaged in most advanced Subcontractors ASE 67% 59% 69% 74% 36% 65% 36% 28% packaging applications Amkor 75% 84% 89% 100% 45% 11% 22% 38% JCET (
Slide 28: III. Strategy
BeSi mam Ill. STRATEGY
Slide 29: Summary Strategy
Summary Strategy Develop new products and markets • Maintain best in class tech leadership in advanced packaging • Expand tech capabilities and applications for TCB, thin die, eWLB die bonding; large area, ultra thin and wafer level molding Increase market share in addressable markets • Leverage lea
Slide 30: Besi Revenue Growth Drivers
Besi Revenue Growth Drivers World tooling up for new tech cycle <20 nano TCB Increased expansion to smart phone memory and functionality logic devices Revenue Increased Growth share of Drivers New device Japanese introductions: supply chain IoT, wearables and China handsets Solar cell plating Wire b
Slide 31: Key Development and Operational Objectives
Key Development and Operational Objectives 2015 2016 Development Objectives Advanced TCB die bonding development Introduction of next generation packaging systems Common parts/platform activities Operational Objectives Transfer of certain Swiss Die Attach software, logistics and administrative funct
Slide 32: Asian Production Transfer Has Helped Reduce Break Even Revenue Levels
Asian Production Transfer Has Helped Reduce Break Even Revenue Levels Asian Production Has Leading to Lower European And Reduced Break Even Significantly Expanded Headcount Revenue Levels 1,800 96% 300 1,200 100% 1,543 1,530 1,564 1,541 270 1,600 1,479 1,434 1,510 84% 86% 90% 963 250 235 1,000 1,400
Slide 33: Workforce Has Become More Scalable and Flexible
Workforce Has Become More Scalable and Flexible 2,000 10.0% 1,800 9.0% 1,680 1,684 1,628 1,607 1,632 • Headcount varies with 1,600 64 1,539 122 150 120 87 8.0% cyclicality and seasonality of 1,458 60 business 24 1,400 7.0% • Significant revenue ramps Temp % of Total 1,200 6.0% 802 achieved using pri
Slide 34: Materials Cost Reduction Is Also a Key Priority
Materials Cost Reduction Is Also a Key Priority Supply Chain Actions • Qualify and select Asian Vendors • 75% of material is now purchased in Asia • Significant potential cost savings Estimated savings 2014 2015E 2016/17E Headcount € 0.9 MM € 2.8 MM € 1.0 MM Materials Cost € 2.7 MM € 1.6 MM € 1.5 MM
Slide 35: Partially Achieved Through Common Parts Product Redesign
Partially Achieved Through Common Parts Product Redesign Potential Unit Cost Savings DB2100 (7%) • Magazine handler • Wafer gripper 2200evo (11%) • Dispenser Areas of focus: • Wafer table • Wafer Cassette Handler • Die Ejector 8800FCQ (11%) • Control Platform Average (9%) • Development efforts under
Slide 36: IV. Financial Review
BeSi mam IV. FINANCIAL REVIEW
Slide 37: Solid Profit and Margin Development In Industry Downturn
Solid Profit and Margin Development In Industry Downturn Q3-14/Q3-15 YTD-14/YTD-15* -30.3% -6.3% Gross Margin Gross Margin 45.3% +3.4 points 48.7% 43.8% +4.7 points 48.5% OPEX OPEX € 23.0 € 28.7 € 69.1 +24.5% € 86.0 +24.8% MM MM MM MM Headcount Headcount 1,649 -1.3% 1,628 1,649 -1.3% 1,628 Effective
Slide 38: 2011-2015 Quarterly Book to Bill Ratio
2011-2015 Quarterly Book to Bill Ratio 1.50 Assembly 1.34 Market 1.26 1.25 1.22 1.10 1.10 1.01 0.97 1.00 0.94 0.98 0.96 0.95 0.81 0.75 0.74 0.71 0.69 0.68 Total Semi Equipment 0.50 Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Oct Nov 11 11 11 11 12 12 12 12 13 13
Slide 39: Revenue/Order/Gross Margin Trends
Revenue/Order/Gross Margin Trends Revenue Orders Gross Margin Adjusted Gross Margin • Cyclical quarterly revenue/order 140 60.0% patterns: 124 • Short term patterns due to customer 120 111 116 caution and increased seasonality 55.0% • 2014 year end shows higher base line 104 104 104 order levels tha
Slide 40: Net Income Trends
Net Income Trends Non Recurring Net Margin ex. NR Net Margin 24 22.9 40% 21.5 21 19.7 35% • € 6.3 million Q3-15 net income • -€ 9.2 million vs. €15.5 million in Q2-15 17.5 • -€ 15.2 million vs. Q3-14 18 30% • Industry downturn negatively influences 3.3 15.5 7.5 comparisons this year 15 25% • Q3-15 n
Slide 41: Liquidity Trends
Liquidity Trends Cash Debt Net Cash 180 161.6 160 • Solid liquidity position 135.3 • € 132.8 million cash at 9/30/15 140 132.8 133.1 • € 3.49 per share vs. € 13.85 price (as of Sep 30, 2015) 120 118.0 113.7 • Net cash increased to € 109.0 million at end 105.4 109.0 of Q3-15 (euro in millions) 100 91
Slide 42: V. Outlook & Summary
BeSi mam V. OUTLOOK & SUMMARY
Slide 43: Q4-15 Guidance
Q4-15 Guidance Revenue Gross Margin € 72.1 48.7% +10% 48% - - -10% 46% Q3-15 Q4-15 Q3-15 Q4-15 Operating Expenses € 28.7 Down 3-5% Q3-15 Q4-15 February 2016 43
Slide 44: Summary
Summary Leading semi assembly equipment supplier with #1 Technology leader. Best in Gaining market share in or #2 positions in fastest class product portfolio advanced packaging growing assembly segments Significant upside potential. Scalability and profitability Advanced packaging Committed to enha
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