Asmpt Limited · HKEX:522
Asmpt — Q1 2019 Earnings Presentation
44 slides from Asmpt's earnings presentation, Apr 25, 2019
Slide 1: 2019 Q1 Results Announcement
2019 Q1 Results Announcement 25 April 2019 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is provided for statements reflect the Company’s current expectations, beliefs, hopes, informational purpose only, and should not be relied upon for the intentions or strategies regarding the future and assumptions in light of purpose of maki
Slide 3: ASMPT Recognized as TOP 100 Global Tech Leaders
ASMPT Recognized as TOP 100 Global Tech Leaders ONLY Back-end Equipment Supplier Being Recognized “The Top 100 Global Technology Leaders are the organizations poised to propel the future of technology”, Brian Scanlon, Chief Strategy Officer Thomson Reuters, 2018 3 3
Slide 4: Corporate Overview
Corporate Overview 4
Slide 5: A World's Technology & Market Leader
A World’s Q1 2019 Group Revenue (CAGR 2009- Q1 2019 LTM 14.8%) Technology & Market Leader USD 467m In the semiconductor packaging equipment industry In the SMT solutions industry In CIS (CMOS Imaging Sensor) assembly equipment In LED equipment In Automotive electronics assembly equipment
Slide 6: ASMPT's Global Presence
ASMPT’s Global Presence Beuningen Weymouth Munich, Regensburg Boston Porto Chengdu Huizhou Taoyuan Shenzhen Hong Kong Sales Offices Johor Business Centre / R&D / Singapore Manufacturing Site >2,000 >1,400 10 12 Patents on key leading R&D centres Manufacturing Global R&D staff edge technologies world
Slide 7: ASMPT Major Facilities around the World
ASMPT Major Facilities around the World Hong Kong Singapore Munich Regensburg Boston Porto Longgang (龙岗) Fuyong (福永) Huizhou (惠州) Chengdu (成都) Johor Expansion Taoyuan Weymouth Beuningen Johor (Ready 2019) 7 7
Slide 8: Three Business Segments With Leading Market Positions
Three Business Segments With Leading Market Positions Worldwide Market Position & Share Back-end Equipment 1 Assembly & Packaging Equipment Market ~25% #1 Die Bonders (2018) PAE #2 Wire Bonders #1/2 Flip Chip Bonders #1 Thermal Compression Bonders (TCB) #1 LED Packaging Equipment #1 CMOS Imaging Sen
Slide 9: 2019 Q1 Financial Highlights
2019 Q1 Financial Highlights 9
Slide 10: Q1 Financial Highlights
Q1 Financial Highlights Quarterly Group Billings (US$ m) YoY Growth: -15.8% Q1 2019 Billings QoQ Growth: -23.2% 700 USD YoY QoQ 600 500 467 Group 466.6m -15.8% -23.2% 400 300 Back-end Equipment Segment 195.9m -30.4% -15.9% 200 100 Materials Segment 50.5m -32.3% -15.5% 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
Slide 11: Group Bookings
Group Bookings Quarterly Group Bookings (US$ m) 800 The Worst is Over? YoY Growth: -39.0% QoQ Growth: -3.0% 700 Q1 Group Booking: ▼ 3.0% QoQ 600 Q1 Backend EQT Booking: ▼ 4.2% QoQ 500 460 CIS rebound > 100% QoQ 400 Q1 Materials Booking: ▲ 15.2% QoQ Historically a leading indicator for the
Slide 12: Q1 Group Financial Highlights
Q1 Group Financial Highlights Q1 2019 Group YoY QoQ Bookings -39.0% -3.0% Factors affecting Q1 Profitability Revenue -15.8% -23.2% Product Mix Lower Sales volume Gross Margin -369bps +93bps Underutilization of capacity YoY OPEX increased by 6.6% EBIT -64.1% -34.7% mainly due to new acquisiti
Slide 13: We Are Ready to Ride the Next Wave of Growth
We Are Ready to Ride the Next Wave of Growth 13
Slide 14: The "Smart" Era Made Possible with Data
The “Smart” Era Made Possible with Data Smart Factories Smart Cars Smart Things By 2022... By 2025... By 2030... 7 billion more 8 million more 100 billion more Machine-to- Autonomous units Machine devices Vehicles 300 EB/year 21,920 EB/year 11,500 EB/year 34 ZB more data generated in a y
Slide 15: Data Traffic to continue 'Exploding in Waves' over the next years
Data Traffic to continue ‘Exploding in Waves’ over the next years Global Data Traffic Facts (in Zettabytes) 6.0 5.0 222x 4.75 4.0 3.83 3.0 87x 3.05 2.41 2.0 1.87 1.46 1.0 0.02 0.0 2005 _ ... _ 2017A 2018A 2019F 2020F 2021F 2022F Source: Cisco Visual Networking Index: Forecast and Trends, 2017–2022 W
Slide 16: Data-Centric Era will spur Semiconductor Demand
Data-Centric Era will spur Semiconductor Demand WLFO WLFO AI WiFi LiFi PLFO Silicon Photonics TPU LASER Grooving Transmit Data 5G Analytics Analyse HPC Wire Bonding TCB Advanced Packaging Advanced Packaging Active Alignment 3D Precision Sensing Silicon Die Attach Camera Industry Photonics IoT TCB AR
Slide 17: Critical Requirements to Enable the Digital World
Critical Requirements to Enable the Digital World Critical Requirements Technology Enabling Solutions Advanced Packaging Greater Storage New structures, “right” form factor – Having more with less Higher Bandwidth 5G Connectivity Infrastructure 100x faster than 4G Creates “near zero latency” No Late
Slide 18: More than Moore: Heterogeneous Integration & Advanced Packaging
More than Moore: Heterogeneous Integration & Advanced Packaging Shifting the Value Chain Shrinkage in Die Geometry Solution: Heterogeneous Integration and Advanced Packaging Moore’s Law Era ‘More than Moore’ Era 16 14 Node Size (nm) Increasing Cost of Die Geometry Shrinkage 12 Cost 10 Cost 8 6 Cost
Slide 19: Heterogeneous Integration & Advanced Packaging Unleashes the Power of A.I.
Heterogeneous Integration & Advanced Packaging Unleashes the Power of A.I. Advantages of Heterogeneous Integration • Integrating multi-mode technologies to enable “More than Moore” • Faster time to market Crucial enabling technology for • Less IP issues Artificial Intelligence • Flexibility • Cost s
Slide 20: Advanced Packaging: The Game Changer in Semiconductor Revolution
Advanced Packaging: The Game Changer in Semiconductor Revolution End Applications Advanced Packaging Technology Enabler FIREBIRD HBM / Datacenters for HPC, TCB Memory Machine Learning Automotive – Sensors, Camera, FLI Body Electronics, Safety Systems, X-PU Infotainment 2.5D Silicon Interposer HDI Su
Slide 21: Applications Fueling OPTO Business Growth
Applications Fueling OPTO Business Growth MiniLED MicroLED Photonics Market Size CAGR 2019 – 2025 ~ 23.4 % Current Data Center Silicon TAM Market Size CAGR 2019 – 2023 2160 x 1200 Resolution ~ 90 % MicroLED is expected to offer 10X higher resolution Source: Intel Data Centre / Video Walls / Large Di
Slide 22: Smartphone Innovations Continue to Drive CIS Business
Smartphone Innovations Continue to Drive CIS Business 50X Zooming Capability (5X Optical + 10X Digital Zoom) 22 22
Slide 23: The Role of the Camera in the Data Era Redefined
The Role of the Camera in the Data Era Redefined Today… Videos Social Media Content Still Images Autonomous Vehicles AR/VR Security: Features Recognition Future… Artificial Intelligence Industrial Inspection with Drones 23 23 Source: Youtube, Facebook, Instagram, IT World Canada, Nvidia, Precision S
Slide 24: 'Smart Cars' will drive Semiconductor Industry Growth
‘Smart Cars’ will drive Semiconductor Industry Growth Semiconductor Content Value in a single unit vehicle, 2018 (in US$) $20,000 $18,000 $16,000 $15,000 per Vehicle $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 per Vehicle $2,000 $400 per Vehicle $0 Standard Vehicle Electric Vehicle Autonomou
Slide 25: How will 'Smart Cars' drive ASMPT's Growth?
How will ‘Smart Cars’ drive ASMPT’s Growth? 5G to Cloud Connectivity Vehicle-to-X (Vehicle, Infrastructure, Network, Devices) communications Sensors Image, LIDAR, Radar Sensors The eyes and ears to gather information from the Road Power Management Power Battery Technology for thermal Thermal managem
Slide 26: Artificial Intelligence (AI) is a Significant Driving Force for ASMPT
Artificial Intelligence (AI) is a Significant Driving Force for ASMPT Worldwide Deep Learning Chipset Revenue 80 SoC Accelerator & Other CAGR: 70 ~49.56% ASIC / AASP Revenue (USD B) 60 FPGA 50 GPU 40 CPU 30 20 10 A.I. Share within Semi industry Expected to grow to 0 Source: Tractica, 2017 Mar 2019 2
Slide 27: 5G to Bring About New Array of Applications in the Data-Era
5G to Bring About New Array of Applications in the Data-Era 5G Opportunities Antennas Array Greater Demand for Chips 27 More Base Stations Substrate Like PCB and RF Filters 27
Slide 28: Hardware + Software + Services
Hardware + Software + Services ASM SMART FACTORY SOLUTIONS ENABLING THE DIGITAL WORLD IIoT applications & services, IIoT portal (Data Analytics, Business Intelligence, Cloud based) Factory Level (MES) (Planning, Process Flow Maintenance, Visualization) Smart Factory Line Level (Automation, Material
Slide 29: Expanding Beyond Assembly and Packaging Solutions
Expanding Beyond Assembly and Packaging Solutions Application Markets Industry Requirements ASMPT’s Enabling Solutions Zero Foreign Particles 1µm Particle Inspection Capability with Auto Clean Solution CIS Demands High Quality 2D and 3D All-in-one Vision System Zero PPM Defects Automotive
Slide 30: Outlook
Outlook 30
Slide 31: Industry Growth Forecast (2019)
Industry Growth Forecast (2019) Semiconductor Industry Forecast Global Assembly & Packaging Equipment Market 40% VLSI, Jan-19 30% -1.0% IHS Markit, Jul-18 20% 4.0% 10% IC Insights, Jan-19 6.7% 1.6% 0% Cowan LRA, Aug-18 5.0% -10% 2.6% WSTS, Mar-19 -20% -3.0% Gartner, Jan-19 -30% 2.6% 2013 2014 2015 2
Slide 32: Outlook
Outlook Q2 Group Billing: US$490 million to US$540 million Expect Back-end business to lead the QoQ improvement Q2 Group Booking: Anticipate double-digit percentage improvement QoQ Many customers believe chance of market improvement greater than chance of further market deterioration 32 32
Slide 33: 2019 Q1 Financial Results
2019 Q1 Financial Results 33
Slide 34: Q1 Segment Financial Highlights
Q1 Segment Financial Highlights Q1 2019 Back-end Equipment Materials Segment SMT Solutions Segment Segment YoY QoQ YoY QoQ YoY QoQ Bookings -45.2% -4.2% -37.4% +15.2% -30.1% -5.1% Revenue -30.4% -15.9% -32.3% -15.5% +11.4% -30.1% Gross Margin -508bps -383bps -271bps +275bps -269bps +423bps Segment P
Slide 35: Q1 2019 Segment Results - Back-End Equipment Business
Q1 2019 Segment Results - Back-End Equipment Business IC/Discrete and CIS took the lead in Backend EQT Booking Q1 2019 YoY QoQ Booking for IC/Discrete ▲ 30% QoQ (excluding ASM NEXX) Bookings (USD) 223m -45.2% -4.2% CIS Booking more than double QoQ Gross Margin ▼: Lower sales volume and under
Slide 36: Q1 2019 Segment Results - Materials Business
Q1 2019 Segment Results - Materials Business Q1 2019 YoY QoQ Booking ▲ 15.2% QoQ Historically a leading indicator for the market Bookings (USD) 46m -37.4% +15.2% GM ▲ 275 bps QoQ to 10.4% Billings (US$ m) Billings (USD) 50m -32.3% -15.5% YoY Growth: -32.3% 90 QoQ Growth: -15.5% 80 70 Gross Mar
Slide 37: Q1 2019 Segment Results - SMT Solutions Business
Q1 2019 Segment Results - SMT Solutions Business Q1 2019 YoY QoQ Billing ▲ 11.4% YoY Segment Profit ▲ 6.4% YoY Bookings (USD) 192m -30.1% -5.1% Billings Billings (USD) 220m +11.4% -30.1% (US$ m) YoY Growth: 11.4% QoQ Growth: -30.1% 350 300 Gross Margin 34.5% -269bps +423bps 250 220 200 150 Segme
Slide 38: R&D Commitment Makes Us a Preferred Partner of Choice
R&D Commitment Makes Us a Preferred Partner of Choice R&D expenses 250 9.3% 2018 R&D 200 expenditure USD million 150 US$ 205 million 100 9.3% of 50 equipment sales 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 USD1,423 million invested in R&D Package Interconnection Optics p
Slide 39: An Extensive Customer Base
An Extensive Customer Base Q1 2019 Geographical Distribution of Revenue No single customer accounted for more than 10% of Group Taiwan Thailand Korea revenue Malaysia 4.9% Philippines 2.8% 2.6% 2.5% 6.7% Vietnam Japan Top 5 customers accounted for 18% of Group’s Q1 2019 8.7% 1.1% India revenue 0
Slide 40: Awards & Recognition
Awards & Recognition 40
Slide 41: Recent Awards & Recognition
Recent Awards & Recognition Technology Achievement Grand Award of HKIA 2017 (for the third time) Federation of HK Industries Directors of the Year Awards 2017 (Collective Board) Directors of the Year Awards 2018 (Individual Director) Hong Kong Institute of Directors Hong Kong Outstanding Ent
Slide 42: Recent Awards & Recognition
Recent Awards & Recognition Factory of the Year 2016 Award (for SMT) by Produktion/AT Kearney Ranked among Top 10 of Best Managed HK Companies Ranked among Top 10 of Best at Investor Relations 2017 & 2018 “Triple Crown” with RANKED 1st/10 BEST/BEST Suppliers Awards from VLSIresearch 2016-1
Slide 43: VLSI Awards 2018
Customer Satisfaction VLSI Awards 2018 @amec : ASM (D Pocif Technology eve Hitachi HighTech: ‘vom ecermonie wares °Tn ASM &{ Pacific Technology ADVANTEST. : () APPLIED MATERIALS ASML 2c 43
Slide 44: Enabling the Digital World
ENABLING THE DIGITAL WORLD 44