Technoprobe Spa · MIL:TPRO
Technoprobe Spa — Investor Presentation (December 2023)
43 slides from Technoprobe Spa's investor presentation, December 2023
Slide 1: Technoprobe S.p.A. Company Presentation
Technoprobe S.p.A. Company Presentation December 2023
Slide 2: Disclaimer
Disclaimer This document has been prepared by Technoprobe S.p.A. (the “Company”) solely for use in the presentation. This document does not constitute or form part of any offer or invitation to sell, or any solicitation to purchase any security issued by the Company. The information contained and th
Slide 3: Summary
Summary Company overview A piece of Reference Market Silicon Valley just outside Business Model Milan Key Financial data INNOVATION BEGINS WITH US 3
Slide 4: Company Overview
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Slide 5: Company Overview
Company Overview 2022 Key financial metrics Leading player in designing and manufacturing of probe cards Revenue EBITDA Net income €549m €245m €148m +39% 45% 27% Vertically integrated with 100% in house production CAGR 19-22 EBITDA margin Net income of critical components leveraging on ~2,700 employ
Slide 6: What does Technoprobe do?
What does Technoprobe do? Chips are everywhere around us is specialized in the design, development and manufacture of Probe Cards for chips testing INNOVATION BEGINS WITH US 6
Slide 7: What is a Probe Card? (1/2)
What is a Probe Card? (1/2) A Probe Card is an electromechanical interface that allows a chip to be tested when it is still on the wafer Chip is packed PROBE CARD Application - integration on printed circuit Probe Card Wafer testing Wafer – multi-chip Single chip INNOVATION BEGINS WITH US 7
Slide 8: What is a Probe Card? (2/2)
What is a Probe Card? (2/2) The probe card has very thin needles (probes) that touch the terminals (pads) of chips, thus electrically connecting to a tester Test head PROBE CARD WAFER MULTI-CHIP Prober Tester INNOVATION BEGINS WITH US 8
Slide 9: Our growth path
Our growth path 2019 2021-2022 2001 2002 2008 2010 Philippines 2011 2015 2017 TP Taiwan TP Japan TP China Huge dimensional expansion: France Singapore America Italy TP Korea New fab and New new fabs,offices and R&D centers in Italy: 1996 expansion HQ in Italy Acquisition of (Agrate,TPI5 Cernusco, Os
Slide 10: Our leadership team
Our leadership team Cristiano Crippa Stefano Felici Marco Prea 26 years 23 years 11 years in Technoprobe Roberto Crippa in Technoprobe Fabio Morgana in Technoprobe Stefano Beretta Chairman 18 years CEO, 6 years CCO 1 year (Executive), in Technoprobe shareholder in Technoprobe in Technoprobe sharehol
Slide 11: Reference Market
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Slide 12: Overview of the Semiconductor Probe Cards market
Overview of the Semiconductor Probe Cards market 2022 Semiconductor Probe Cards Market* 2022 Non-Memory applications by type* Overall market value: $2.5bn Memory Other Advanced applications $150 Vertical Probes $805m Cards $361 Epoxy/Cantilever $242 Others $16m Non Memory applications $1.720m Vertic
Slide 13: Our serviceable available market
Our serviceable available market Semiconductor Probe Cards Market 2019-2022 CAGR* Overall market growth: +12.5% Non-memory applications market share Memory applications 2021 Market Share 2022 Market Share +8.8% Others +3.2% Non Memory applications +15.3% 28% 34% INNOVATION BEGINS WITH US *Source: Te
Slide 14: Our serviceable available market
Our serviceable available market Non-Memory applications by type CAGR 2019-2022* Vertical MEMS Probe Cards Vertical Probes market share Cards +12.0% 2021 Market Share 2022 Market Share Other Advanced +13.4% Epoxy/Cantilever +4.0% Vertical MEMS Probes Cards 44% 60% +20.8% INNOVATION BEGINS WITH US *S
Slide 15: Compelling market characterized by solid entry barriers
Compelling market characterized by solid entry barriers Limited impact of probe card Strict quality cost on tested products Single use requirements price Solutions and market intrinsic features… Long approval process Patent-protected engineered Additive manufacturing products technology INCLUSION IN
Slide 16: Probe cards in the semiconductor manufacturing process
Probe cards in the semiconductor manufacturing process Front-End Process Back-End Process Wafer Wafer Wafer Device Assembly 1 2 3 4 5 5 Final Test fabrication Probe Test Dicing & Packaging • Construction of the • Wafer’s dies testing for • Wafer separation into • Individual die enclosure • Chip fina
Slide 17: Business Model
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Slide 18: A successful and vertically integrated business model
A successful and vertically integrated business model A winning business model has allowed Technoprobe to become the point of reference in the MEMS non-memory-use market thanks to the superior quality and performance of its products In-house In-house Outsourced Development of new Probe Cards designe
Slide 19: Overview of the Probe Cards manufacturing process
Overview of the Probe Cards manufacturing process Pinted Circuit Board Probe unit Probe Head unit (PCB) Production of probes Outsourced Front End Back End leveraging a highly innovative and proprietary technology + Production of Assembly of assembly of Microfabrica the Ceramic Ceramic Plates probes
Slide 20: Extensive global presence and widespread local footprint
Extensive global presence and widespread local footprint CLEAR STRATEGY UK to ensure global reach Germany #3 #2 Italy South Korea Japan LOCAL FOR LOCAL China production and assembly Taiwan Philippines France #4 California (US) PROXIMITY TO Singapore CUSTOMERS across all geographies COMPETITIVE ADVAN
Slide 21: A wide range of highly innovative technologies
A wide range of highly innovative technologies Advanced Micromachining 3D MEMS Thin film Advanced manufacturing Advanced laser cutting: High Acquisition of MICROFABRICA Strong investment in advanced Advanced manufacturing for accuracy and fast lead time in 2019; the sole company in the thin film tec
Slide 22: Technoprobe ranked 1st Probe Cards Supplier of 2023
Technoprobe ranked 1st Probe Cards Supplier of 2023 For the sixth year in a row, we are the Highest-Rated Test Subsystems Supplier in the TechInsights Customer Satisfaction Survey* Rating: 9.81 TechInsights Stars: INNOVATION BEGINS WITH US 22
Slide 23: Semiconductor Probe Cards market future estimates
Semiconductor Probe Cards market future estimates Non-memory Vertical MEMS and vertical probe cards evolution (2020-2026, $m)* Digital transformation macro-trends driving market growth DIGITAL DATA AND 5G: increasing flow of data and ability to access it will drive market growth 1,615 DATA CENTER: u
Slide 24: Overview of main strategic initiatives
Overview of main strategic initiatives Higher-than-market At forefront of Engineered M&A strategy revenues growth innovation to expand into new businesses Strategic Future technology- driven M&A Product portfolio Vertical integration in expansion additional Probe Innovation Cards components thrust T
Slide 25: Key Financial Data
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Slide 26: 2019 – 2022 Key financial figures
2019 – 2022 Key financial figures Organic double-digit growth Outstading profitability level High conversion to net income Revenue EBITDA Net income (€m) (€m and margin %) (€m and margin %) 549 45% 245 45% 392 48% 27% 330 175 159 148 30% 31% 42% 119 204 32% 102 86 66 2019 2020 2021 2022 2019 2020 20
Slide 27: 2019 – 2022 Key financial figures
2019 – 2022 Key financial figures Strong financial position High Cash Generation Net Financial Position Operating Cash Flow (€m) (€m) 403 260 191 156 135 96 121 90 2019 2020 2021 2022 2019 2020 2021 2022 The combined consolidated financial statements as of and for the years ended December 31, 2020 a
Slide 28: Technoprobe & Teradyne combined transaction
Technoprobe & Teradyne combined transaction
Slide 29: The combined transaction
The combined transaction Asset Share Acquisition of Acquisition of Device Interface Solution (DIS) 10% stake division from in Teradyne Inc. and Technoprobe S.p.A. agreed to establish a strategic partnership on joint development projects to accelerate growth for both companies through roadmap sharing
Slide 30: Transaction highlights
Transaction highlights Asset • Closing: expected in the first half of 2024 • Purchase price: USD 85 million in cash • Subject to US and other Foreign Direct Investment approvals, Taiwan merger control review and other customary closing conditions Share • Closing: expected in the first half of 2024 •
Slide 31: DIS overview (1/2)
Asset DIS overview (1/2) CHIP MANUFACTURING PROCESS Wafer Wafer Device Assembly 1 3 4 5 fabrication Dicing & Packaging 2 Wafer 5 Final Test Probe Test DIS expertise to design PROBE CARDS FINAL TEST BOARD Final Test Interface Boards (DIB)* Probe Interface Boards (PIB)* Probe Card Interface Board (PCI
Slide 32: DIS overview (2/2)
Asset DIS overview (2/2) - Excellence in design of Test Interfaces - more than 400 employees, operating all over the world - Major design teams concentrated in the United States, China and Taiwan. - Recorded revenue of USD 54 million, with a Gross Margin of 15% in the first half of 2023 INNOVATION B
Slide 33: Rationale of the acquisition
Asset Rationale of the acquisition Device complexity advanced manufacturing technology Interface development process PROBE CARDS mastery and optimization interface design Interface Speed FINAL TEST DIS BOARD design all components of wafer probe and final test interfaces as a single complete solution
Slide 34: Probe & Final Test Interface Business Mission
Asset Probe & Final Test Interface Business Mission Improve Performance Best electrical & mechanical performance possible limited by only physics Improve Quality Defect free to demanding Automated Testing Equipment standards On-time Delivery Fulfill delivery commitments conforming to agreed specific
Slide 35: Expected Synergies (1/2)
Asset Expected Synergies (1/2) Consolidating the full vertical integration of our business model also leveraging on Harbor Electronics competencies In-house In-house Outsourced Probe Cards components designed manufacturing manufacturing 1 PCB: Printed Circuit Board ✓ ✓ (Partially) ✓ (Partially) DIS
Slide 36: Expected Synergies (2/2)
Asset Expected Synergies (2/2) Acceleration in the process to enter the final test and probe card interface markets Test Consumables Market* Test Interface Market* • TAM expansion into the $1.1B* final test and TAM probe card interface market Expansion 272 1,389 1,837 739 • Teradyne DIS and Harbor c
Slide 37: Acquisition of a 10% stake by Teradyne (1/2)
Share Acquisition of a 10% stake by Teradyne (1/2) Open the share capital to an industrial player acting as a strategic partner to jointly develop new advanced testing solutions enlarge product offering and cross selling opportunities accelerate the development of advanced semiconductor interface te
Slide 38: Acquisition of a 10% stake by Teradyne (2/2)
Share Acquisition of a 10% stake by Teradyne (2/2) Shareholder base Shareholder base BEFORE the transaction AFTER the transaction Total share capital (n.): 601.000.000 Total share capital (n.): 653.260.870 TERADYNE 10.0% *6.0% Free Float Free Float 25.0% 23.0% *14.3% *13.8% TPLUS TPLUS 67.9% 60.5% C
Slide 39: Transaction main highlights
Transaction main highlights Acquire new competences to better serve the needs of our clients Consolidate the full vertical integration of our business model also leveraging on Harbor Electronics competencies Accelerate the process to enter the final test and probe card interface markets Open the sha
Slide 40: Appendix
LAA/ Appendix (vvv) TECHNOPROBE
Slide 41: Glossary
Glossary Device Interface Board (DIB): a Board used in the Final Testing of packaged devices. A DIB is typically composed of a large, high layer count PCB and assembled with thousands of components. Probe Interface Board (PIB): a Board used as interface between tester and Probe Card Interface Board.
Slide 42: Glossary
Glossary WAFER LEVEL TESTING FINAL TESTING Probe Cards & Tester Components Final Test Components 0 PIB: Probe Card Interface Board(*) 1 DIB: Device Interface Board 1 PCB: Printed Circuit Board 3 Socket 2 MLO: Multi-Layer Organic 3 Ceramic Plates 4 Pogo Pins 4 Contact Probes *If requested INNOVATION
Slide 43: Technoprobe
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