Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Investor Presentation (June 2015)
55 slides from Be Semiconductor Industries's investor presentation, Jun 18, 2015
Slide 1: Analyst Presentation 18 June 2015
ANALYST PRESENTATION 18 JUNE 2015
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. Technology Update IV. Operations Review V. Financial Review June 2015 3
Slide 4: I. Company Overview
I. COMPANY OVERVIEW June 2015 4
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 7 countries;
Slide 6: Stock Price Information
Stock Price Information Market profile has improved significantly: • Approximate € 900 million market capitalization • Upgraded to Euronext AMX mid cap index on March 23, 2015 Liquidity has increased over past three years: • Average daily volume: • 2013: 99,811 • 2014: 117,084 • 2015: 219,887 Share
Slide 7: Summary Strategy
Summary Strategy Develop new products and markets • Continue enhancing best in class <20 nano assembly equipment portfolio • Expand tech capabilities and applications for TCB line • IoT and wearables have potential to significantly expand addressable market Increase market share in addressable marke
Slide 8: II. Market
BeSi asm Il. MARKET June 2015
Slide 9: Assembly Equipment Market Composition
Assembly Equipment Market Composition Assembly Equipment Market * Besi Addressable Market * (2014: $4.0 billion) (2014: $1.7 billion) Lead Trim & Plating Other Form 2.0% Assembly 5.5% (Inspection, Wire Bonding Molds Dicing) 21.7% 13.5% 25.9% Die Bonding 39.7% Presses Plating 11.2% Die Attach 0.9% 59
Slide 10: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Size YoY Growth Rate 6.0 40% 5.0 29.1% 30% 4.9 (US$ billions) 4.8 20% 4.0 4.4 4.6 16.3% 4.0 4.0 4.0 3.9 10% 7.7% 3.0 3.1 1.6% 0% -2.5% -2.3% 2.0 -9.2% -10% 1.0 -20% -22.4% 0.0 -30% 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2019F Source: VL
Slide 11: 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 12: Driven Primarily by Growth in Internet Connected Devices
Driven Primarily by Growth in Internet Connected Devices • 35% CAGR device growth forecast over next 5 years • Powered primarily by devices used for IoT • Positive trajectory for smart phones, tablets, wearables, and automotive • Significant potential revenue growth driver June 2015 12
Slide 13: Which Has Significantly Increased Semi Equipment Spending for <25 Nano Nodes
Which Has Significantly Increased Semi 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 20 nano = new assembly equipment capacity June 2015 13
Slide 14: 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 15: Flip Chip/Wire Bond Process Shift Is Another Revenue Opportunity
Flip Chip/Wire Bond Process Shift Is Another Revenue Opportunity 2014* 2019* Wire Bonding Flip Chip Bonding Flip Chip Flip Chip $356 Wire $508 29% Bonding 34% Wire Bonding $994 $861 66% 71% Flip Chip Advantages Reduces board area Offers higher speed CAGR 2014 - 2019* by up to 95%. electrical Flip Ch
Slide 16: 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 17: 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 18: Besi 2015/2016 Growth Drivers
Besi 2015/2016 Growth Drivers World tooling up for new tech cycle • Significant growth < 20nm end user applications: IoT, wearables • Increased TCB usage: memory applications currently, logic devices next Larger addressable market from increased smart phone functionality and new device introductions
Slide 19: III. Technology Update
III. TECHNOLOGY UPDATE June 2015 19
Slide 20: Best in Class Product Portfolio
Best in Class Product Portfolio Die Attach Packaging & Plating In Development • Die Bonding • Molding - 2100 xPplus - AMS series • Next generation Die Attach - 2100 sDplus - AMS LM 95 - 2100 sD PPPplus - MMS series • Next generation Packaging - 2100 hS New - FML New • Common modules Esec - 2009 SSI
Slide 21: Besi Assembly Process Technology Steps
Besi Assembly Process Technology Steps • Sorting and mounting chips on substrate materials • Establish electrical interconnects • Molding/encapsulation in packages • Singulation/trim and form of packages • Electro plating of leadframes, substrates and solar cells • Flip chip, TCB and multi module di
Slide 22: Internet of Everything is Driving Advanced Packaging Growth
Internet of Everything is Driving Advanced Packaging Growth Key End Use Applications: • Mobile internet devices • Connectivity • Computing power • Big Data Analytics Source: Intel • Automotive Source: Nvidia June 2015 22
Slide 23: Requiring Changes in Process/Equipment Development
Requiring Changes in Process/Equipment Development Front End Today=> Tomorrow Transistor Scaling Lithography New Structures 3D Back End More Contacts Smaller Pitches Thinner/denser more complex packages From Simple Wire Bond to BGA/Flip Chip to Complex 3D structures with TSVs, Stacked Structures 3D
Slide 24: Thin Die Usage Is Becoming Increasingly More Important
Thin Die Usage Is Becoming Increasingly More Important in Key End Use/Process Applications Memory Power Flip Chip Drivers Increased volume Thermal Conductivity Thinner packages Increased density Lower resistance Vertical stacking to compensate for slower lateral shrink Current Die 22 um 40 um 100 um
Slide 25: Besi Is Winning in Thin Die Arena
Besi Is Winning in Thin Die Arena DB 2100 Example Technology Besi Spec Competition Disc based No Thin Die Ejector Dual Step No Fusion Die Bonding 2100 sDplus / 2100 sD PPPplus Fast Change No over Dual Mode Die Crack No Detection High Speed & 15.000 No High Accuracy & 10 um June 2015 25
Slide 26: Thermo Compression Bonding Is An Emerging Assembly Technology
Thermo Compression Bonding Is An Emerging Assembly Technology TCB: Next Die Bonding Process Evolution: • Besi has most advanced concept in the industry • 7 Axis bondhead • 2 bond heads per system • High throughput => 2x competition • Compact design • User friendly • Orders/production significantly e
Slide 27: TCB Solution in Advanced Memory Cube Application
TCB Solution in Advanced Memory Cube Application Issue: Memory performance lags CPU performance Gap Solution: Advanced stacking design using TCB In performance with TSV capabilities Performance CPU-Memory • 15x Higher transfer speeds • 70% Less energy per bit • 90% Less space • Wire bonding process
Slide 28: eWLB Is Another Emerging Die Bonding Technology
eWLB Is Another Emerging Die Bonding Technology eWLB = Embedded Wafer Level Ball Grid Array Utilized for extremely small form factors such as logic processors Besi Chameo FC 8800 only proven system to relocate up to 40,000 chips on carrier very precisely over whole 12“ wafer at high speed and accura
Slide 29: Besi Packaging Technology Update
Besi Packaging Technology Update Key Packaging Besi Spec Competition Trends Ultra thin molding .12 mm .2 mm One step 2 steps No warpage Negative Narrow underfill 30 um proven 40 um Exposed dies Foil based, no further Back grinding step process steps required Shielding Flexible FSL concept Limited fl
Slide 30: Besi Offers Leading Edge Molding Technology
Besi Offers Leading Edge Molding Technology First Generation First Generation Product designed around SMT board and standard package • Package is square or right angular • Standard functionalities Evolution Current Generation SMT board dictated by product design. Current Generation Packages become t
Slide 31: Ultra Thin Molding Is Critical Assembly Packaging Process Technology
Ultra Thin Molding Is Critical Assembly Packaging Process Technology • Shift to <28 nano advanced electronics applications has increased Besi’s AMS-LM revenue by 100%+ over past two years • Besi AMS-LM only system which can deliver these specs • Currently qualified for ALL 2015 tablet and smart phon
Slide 32: Wafer and Large Area Molding Is Another Important Process Development
Wafer and Large Area Molding Is Another Important Process Development Besi has most advanced molding capabilities in the industry: • Large area molding up to 340 mm x 340 mm • eWLB and C2 wafer applications • Overmolded and exposed capabilities • Exposed solder balls • Glass and silicon interposer m
Slide 33: Key Development Objectives - Timetable
Key Development Objectives - Timetable 2015 2016 Development Objectives Advanced TCB die bonding development Introduction of next generation packaging systems Common parts/platform activities June 2015 33
Slide 34: Summary
Summary • Semiconductor packaging plays an increasingly important role in electronics as IC devices get smaller, denser and more complex with increased functionality • In new technology cycle due to the Internet of Everything • Besi product portfolio and process technology is at forefront of advance
Slide 35: IV. Operations Review
IV. OPERATIONS REVIEW June 2015 35
Slide 36: 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 31 March 2015 • Development act
Slide 37: Asian Production Has Significantly Expanded
Asian Production Has Significantly Expanded Total Asian Shipments Direct Asian Shipments % Direct 1,200 96.3% 100.0% 84.0% 86.0% 90.0% 1,000 927 963 80.0% % Direct Shipments 68.0% 70.0% 800 Shipments 60.0% 42.9% 600 658 673 50.0% 579 553 40.0% 487 400 396 30.0% 331 20.0% 200 170 10.0% - 0.0% 2010 20
Slide 38: Leading to Lower European Headcount
Leading to Lower European Headcount Europe/NA Fixed HC Asia Fixed HC Total 1,800 1,600 1,543 1,510 1,530 1,479 1,434 1,400 1,200 • Fixed European/North American 802 799 933 headcount reduction: Headcount 52% 54% 810 908 1,000 60% 61% • Down 19.4% since 2011 56% • Declined from 56% of total in 2009 t
Slide 39: And Also Reduced Break Even Revenue Levels
And Also Reduced Break Even Revenue Levels 300 (13.0%) 270 250 235 (9.8%) (2.4%) 200 212 207 (€ millions) 150 100 50 - 2011 2012 2013 2014 June 2015 39
Slide 40: Key Operational Objectives
Key Operational Objectives 2015 2016 Operational Objectives Transfer of certain Swiss Die Attach software, logistics and administrative functions to Singapore Transfer of certain die bonding production from Malaysia to China Transfer of Plating Production from NL to Malaysia Further reduction of Eur
Slide 41: Besi Switzerland/Singapore Function Transfer
Besi Switzerland/Singapore Function Transfer • Transferring certain die attach software engineering, logistics and related admin functions by end of Q4-15 • Swiss headcount to be reduced by 55 people or 40% • Singapore headcount to increase from 75 to 125 people • Current Singapore facility of 17,80
Slide 42: Besi China Die Bonding Production Transfer
Besi China Die Bonding Production Transfer 74,000 sq. ft. Leshan facility principally manufactures molds, mold sets and spare parts. 257 employees currently Transferring DB 2100 SD epoxy die bonding production for the Chinese market from Malaysia to Besi China • Locate production closer to end custo
Slide 43: Plating Production Transfer from NL to Malaysia
Plating Production Transfer from NL to Malaysia • Transfer underway to move plating production from Drunen, NL to Malaysia facilities by end of 2015 • Intellectual property and engineering to remain in Drunen • Benefits: • Increase manufacturing flexibility • Reduce cycle times • Increase revenue po
Slide 44: Further Reduction of European Based Costs
Further Reduction of European Based Costs Further reduction of European personnel costs • Total of 574 fixed European headcount at March 31, 2015 • Approx. 10% headcount reduction by year end 2015 Besi Switzerland Besi Austria Achieve cost savings from facility consolidation • 4 European facilities
Slide 45: 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 45-50% thru cycle Gross Development Actions Margin • Redesign products • Increase standardization of systems • Component parts • Modules • Material costs
Slide 46: Asia Supply Chain Transfer Progress
Asia Supply Chain Transfer Progress Estimated savings 2014 2015E 2016 - 2017E Headcount € 0.9 MM € 2.8 MM € 1.0 MM Materials Cost € 2.7 MM € 1.6 MM € 1.5 MM Subtotal € 3.6 MM € 4.4 MM € 2.5 MM 2015 Focus 2016 - 2017 Focus DB Spares & Module Completed in 2015 Assembly Transfer Plating Completed in 20
Slide 47: V. Financial Review
V. FINANCIAL REVIEW June 2015 47
Slide 48: Revenue Growth and Margin Expansion Yield Increased Profitability
Revenue Growth and Margin Expansion Yield Increased Profitability Q1-15/Q1-14 FY 2014/FY 2013 Revenue Net Income Revenue Net Income 95% 400 € 95% 90% € 378.8 90% € 94.9 € 100 85% +48.6% 85% 350 € +35.6% 80% 80% 75% 75% € 70.0 70% 300 € 70% € 254.9 € 75 Gross Margin 65% Gross Margin 65% 42.3% +6.7 po
Slide 49: Revenue/Order/Gross Margin Trends
Revenue/Order/Gross Margin Trends Revenue Orders Gross Margin Adjusted Gross Margin • Cyclical quarterly revenue/order patterns: 140 60.0% • Three cycles past 3 years 116 124 • Short term patterns due to customer 120 caution and increased seasonality 111 55.0% • 2014 year end shows higher base line
Slide 50: Net Income Trends
Net Income Trends Net Income ex. NR Non Recurring Net Margin 24 22.9 21.5 35% 21 19.7 17.5 18 25% • Quarterly net income trends reflect industry 22.2% 3.3 and seasonal volatility 20.8% 19.7% 15 18.5% 7.5 • Profit/margin increase aided by revenue 15% (euro in millions) growth, through cycle gross mar
Slide 51: Forex Influence on Recent Quarterly Operating Results
Forex Influence on Recent Quarterly Operating Results Forex Financial Impact Currency Exposure (2014) (Q4-14 and Q1-15) Q1-15 vs Q4-14 Q4-14 vs Q3-14 Cost and Mln Mln Revenue Expenses Euro Margin Euro Margin Revenue +7.8 +3.8 (USD/EUR) Euro 34% 28% US dollar 65% 4% COGS -3.3 -1.8 (USD/EUR) (MYR/EUR
Slide 52: Liquidity Trends
Liquidity Trends Cash Debt Net Cash 180 161.6 160 • Solid liquidity position 135.3 • € 161.9 million cash at 3/31/15 140 133.1 • € 4.29 per share vs. € 29.87 price (as of March 31, 2015) 120 118.0 • Net cash reached € 133.1 million at end of 105.4 Q1 2015 (euro in millions) 100 91.9 89.6 81.1 83.8 7
Slide 53: Q2-15 Guidance
Q2-15 Guidance Revenue Gross Margin* Operating Expenses* € 94.9 48.2% € 28.3 Up 48% Up - 10-15% 5-7% 46% Q1 Q2 Q1 Q2 Q1 Q2 *excluding restructuring benefit • Underlying business growth continues • Revenue up approximately 10-15% vs. Q1-15 • Gross margins of 46-48% • Opex up 5-7% vs. Q1-15 due primar
Slide 54: 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 Committed to enhancing of business m
Slide 55: Financial Calendar
Financial Calendar 24-Jun-15 Rabobank “Made in Benelux” Conference, London, United Kingdom 23-Jul-15 2015 Second Quarter Results 12/13-Aug-15 Canaccord Genuity Growth Conference, Boston, USA 9/10-Sep-15 ING Benelux Conference, London, United Kingdom 16/18-Sep-15 Kepler Cheuvreux Autumn Conference, P
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