BE Semiconductor Industries N.V. · EURONEXT:BESI
BE Semiconductor Industries — Needham Virtual SemiCap & EDA Conference 2020
34 slides from BE Semiconductor Industries's conference presentation, August 2020
Slide 1: Needham Virtual SemiCap & EDA Conference
NEEDHAM VIRTUAL SEMICAP & EDA CONFERENCE August 2020
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 presentation, including, but not limited to, statements relating to exp
Slide 3: Agenda
Agenda I. Company Overview II. Market III. Outlook and Summary August 2020 3
Slide 4: I. Company Overview
I. COMPANY OVERVIEW August 2020 4
Slide 5: Besi Overview
Besi Overview • Leading assembly equipment supplier with #1 and #2 positions in key markets. 32% addressable market share Corporate Profile • Broad portfolio: die attach, packaging and plating • Strategic positioning in substrate and wafer level packaging • Global operations in 6 countries; 1,691 em
Slide 6: Company History
Company History Die Attach Acquisitions 70.0% € 397.7 65.0% 400 • 60.0% Product Strategy 57.9% 55.0% 300 • Expanded advanced packaging leadership into die attach area Revenue (€ millions) • Gained market share organically and via acquisitions 50.0% • Gained mindshare with key industry leaders • Grow
Slide 7: Best in Class Product Portfolio
Best in Class Product Portfolio Die Attach Die Bonding Multi Module Attach Flip Chip Large Panel Size Die Sorting Die Lid Attach • 2100 xP plus / hS • 2009 SSI • 2200 evo • 8800 CHAMEO advanced New • 8800 CHAMEO PLP • DLA • WTT • 2100 sD plus / PPP plus • 2100 SSI New • 8800 TCB advanced New New • D
Slide 8: Customer Ecosystem
Customer Ecosystem Customers OEMs End Products IDMs Subcontractors • Diversified, blue chip customer base, top 10 = 44% of 2019 revenue • Leading IDMs and subcontractors. 61%/39% split in 2019 • Also supply leading fabless companies: Qualcomm, Broadcom, MediaTek via subcontractors • Long term relati
Slide 9: Product Positioning
Product Positioning Semiconductor Manufacturing Equipment (2019: $61.7B)* Front end: $53.2B Assembly: $3.0B Test: $5.5B (86.2%) (4.8%) (8.9%) Semiconductor Assembly Process Dicing Die Attach Wire Bond Packaging** Plating Leadframe Assembly Substrate Wire Bond Assembly Substrate Flip Chip Assembly/TC
Slide 10: Operational Profile
Operational Profile Duiven & Drunen, (The Netherlands) Steinhausen, Radfeld, (Austria) (Switzerland) Chandler Suzhou Chengdu Korea Shanghai Leshan Taiwan Shenzhen Sales Office Thailand Philippines Malaysia Production Site Singapore Sales, Production and R&D Site LTM June 30, 2020 Europe/NA Asia • De
Slide 11: Summary Financials
Summary Financials Year Ended December 31, (€ millions, except share data) 2017 2018 2019 H1-19 H1-20 Long term, step function revenue growth in cyclical business Revenue 592.8 525.3 356.2 174.1 215.6 • Last peak reached in 2017 at € 592.8 million % seq. change 58% -11% -32% +24% H1-20 business pros
Slide 12: Solid Liquidity Position to Help Navigate Uncertain Environment
Solid Liquidity Position to Help Navigate Uncertain Environment Cash and Deposits Net Cash Q2-20 vs. Q1-20 • Net cash decreased by € 54.7 million (-36.9%) 600 to € 93.6 million • Principally due to: 527.8 507.5 € 122.4 MM € 73.5 MM • - € 73.5 million dividends paid Dividend Dividend 500 475.5 2018 2
Slide 13: Revenue and Gross Margin Cycles Since 2006
Revenue and Gross Margin Cycles Since 2006 € millions Revenue Gross Margin Gross Margin 700 70% 600 59.5% 60% 593 56.8% 55.8% 51.1% 500 50% 424 -40.0% 400 39.5% 40% 34.1% 379 +20.6% 356 300 302 30% 4 year 351 318 averages 264 200 20% 164 191 100 10% 0 0% * Nine months assuming midpoint of Q3-20 guid
Slide 14: Increased Profitability vs. Last Industry Cycle
Increased Profitability vs. Last Industry Cycle Trough Post Trough € millions € millions 2015 2019 Nine Months 2016 Nine Months 2020E* 350 160 140 140 350 +2.0% 356.2 349.2 120 318.1 120 +12.7% 32.3% 25.8% 100 300 Operating Income Operating Income 100 102.7 300 91.9 Revenue 80 Revenue +58.7% 282.3 +
Slide 15: Increased Through Cycle Returns vs. Peers
Increased Through Cycle Returns vs. Peers Gross Margin Return on Average Equity Variance 50.0% 2016 2017 2018 2019 YTD 2016/ 2020 Besi 51.0% 57.1% 56.8% 55.8% 59.7% +8.7% 40.0% ASMPT 43.4% 47.9% 45.9% 41.1% 42.2% -1.2% Besi (Backend) 30.0% K&S* 44.8% 47.2% 46.1% 47.1% 46.0% +1.2% 20.0% Operating Mar
Slide 16: Business Model Objectives
Business Model Objectives Objectives Revenue € 800MM Addressable 40%+ Market Share Gross Margin 55-60% Net Margin 30-35% Headcount 80% Asia/20% Euro Split August 2020 16
Slide 17: Capital Allocation Trends
Capital Allocation Trends € millions 209.5 200 35.5 Dividends 167.1 Share Repurchases • € 732.6 million distributions since 2011: 150 • € 79.7 million YTD including May dividend 44.7 • € 73.3 million shares repurchased under current € 75 million authorization 100 88.8 • Average price of € 22.58 174.
Slide 18: II. Market
II. MARKET August 2020 18
Slide 19: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 4.5 4.3 4.6 50% 4.2 4.0 3.3 3.6 30% 3.5 US$ billions 3.1 3.0 3.0 25.8% 15.6% 10% 11.3% 9.5% 9.7% 12.5% 2.0 -2.5% -10% -15.9% 1.0 -30% -31.5% 0.0 -50% 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E Source: VL
Slide 20: Semi Equipment Climate Index Changed Significantly in H1-20
Semi Equipment Climate Index Changed Significantly in H1-20 Source: VLSI June 24, 2020 August 2020 20
Slide 21: Besi Market Share Trends
Besi Market Share Trends 2015 2016 2017 2018 2019 Total Assembly Market ($MM) $3,148 $3,541 $4,453 $4,343 $2,974 Besi Market Share 12.3% 11.8% 15.0% 13.8% 13.4% Addressable Market ($MM) $1,271 $1,506 $1,940 $1,848 $ 1,247 Besi Market Share 29.9% 27.6% 34.2% 32.4% 32.0% Die Attach 35.5% 34.2% 42.0% 3
Slide 22: Move to Digital Society Helps Drive Advanced Packaging Growth
Move to Digital Society Helps Drive Advanced Packaging Growth August 2020 22
Slide 23: Advanced Packaging Critical to Next Generation Applications
Advanced Packaging Critical to Next Generation Applications Greater Mobile Revolution Miniaturization • Mobile internet • Messaging • Social media • Shared economy Higher Greater • Gaming Accuracy Complexity • Geo-location • Audio/video • Auto electronics Die Bond Packaging Datacon 8800 TC Fico AMS-
Slide 24: Requiring Increased Density, Higher Accuracy and Smaller Form Factors
Requiring Increased Density, Higher Accuracy and Smaller Form Factors for Next Generation Devices 100 NM Front End 10 • Transistor scaling 1 • Lithography 0.1 • New structures 3D 2010 2015 2020 2025 2030 Logic Metal Pitch Edge Placement Accuracy Node Name Source: Samsung Source: ASML 3D Conference 2
Slide 25: 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 2011 - 2023 • Assembly process step now important 55 50% gating item 41% 43% • Specifications more like front-end 45 40% 39% 37% 38% 40% 34% 36% • Advanced packaging applications ha
Slide 26: Besi Portfolio Well Positioned by Node Size and Accuracy
Besi Portfolio Well Positioned by Node Size and Accuracy Estimated % of 2019 Revenue Typical Application Besi Equipment Accuracy Size 100% Micron NM Die Attach 90% 10+ 28+ Automotive, SiP 25% Packaging Power 80% Plating 70% Die Attach 20% IOT 60% 10 28 Packaging General ICs Plating 50% 40% Computer,
Slide 27: Besi End User Markets
Besi End User Markets 2019 % of Revenue • Mobile Internet, Computing and Automotive are largest end markets • Estimated 71% of revenue in 2019 • Percentages vary p.a. based on customer Ind’l/LED roadmaps 9% Automotive Mobile Internet • Mobile is largest market Devices 17% 32% • % varies based on tim
Slide 28: Key End User Market Growth Drivers
Key End User Market Growth Drivers Mobile Internet Computing Automotive 5G Ramp Underway Digital Society Accelerating Development Continues Despite Increasing Mobile Content & Features Near-Term Weakness Cloud Infrastructure Autonomous Driving HPC/Vision Lidar 5G subscriptions expected to reach 2.5
Slide 29: Current Technology Roadmap
Current Technology Roadmap 2020 Development Activities • IDMs investing in • Shipped first nano-accurate hybrid die Customers next generation bonding system with excellent initial devices results 5G Applications Artificial Intelligence • Ongoing development of MicroLED Cloud Infrastructure applicati
Slide 30: Hybrid Die Bonding: Next Generation Bonding Technology
Hybrid Die Bonding: Next Generation Bonding Technology Higher accuracy, more dense contact technology WIRE BOND FLIP CHIP FAN OUT and WLCSP TCB BONDING HYBRID BONDING 1975 1995 2010 2012 2018 NEW DtW 100-55 µm sides only Pitch 150-80 µm Pitch 80-25 µm Pitch < 20µm Source:Amkor Source:Amkor Source: I
Slide 31: MicroLED: Another Emerging Growth Opportunity
MicroLED: Another Emerging Growth Opportunity Watches and Phones, Automotive IT VR and AR Applications Larger Size TV and TV+ Mass Transfer Of Individual MicroLEDs Monolithic Based MicroLEDs Solutions Very precise placement over wide area Utilizing Besi’s next generation TCB or Hybrid Bonding Sy
Slide 32: III. Outlook and Summary
III. OUTLOOK AND SUMMARY August 2020 32
Slide 33: Guidance Q3-20
Guidance Q3-20 € in millions Q2-20 Q3-20 Seasonal Revenue Trends Q3E/Q2Δ -10% Average decline (-16.3%) Revenue € 124.3 - -25% -17.5% -3.2% -27.6% -6.3% Gross Margin 62.0% 58% - 60% -13.5% -30.8% • Besi quarterly revenue development influenced by -10% seasonal trends € 28.6 - • Orders typically ramp
Slide 34: Summary
Summary Assembly market Long term secular Disciplined Market presence ever more critical trends drive strategic focus has grown via key in semiconductor advanced has created an IDM customers value chain packaging growth industry leader and supply chains Tech leadership Asian production and scalable
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