Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Investor Presentation (June 2017)
63 slides from Be Semiconductor Industries's investor presentation, Jun 15, 2017
Slide 1: Analyst Presentation June 15, 2017
ANALYST PRESENTATION JUNE 15, 2017 1
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 ex
Slide 3: Agenda
Agenda I. Company Overview II. Market III. Strategic Agenda IV. Technology Update a. Die Attach b. Packaging & Plating V. Financial Review & Summary June 2017 3
Slide 4: I. Company Overview
I. COMPANY OVERVIEW June 2017 4
Slide 5: Besi Overview
Besi Overview • Leading assembly equipment supplier with #1 and #2 positions in key markets. 30% 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; 1,8
Slide 6: Besi Market Information
Besi Market Information Symbol/ • BESI Avg. Daily Volume & Liquidity Index • Euronext Midcap AMX 350 8,000 300 7,000 Volume (thousands) Avg Vol * Avg Price 6,000 (€ thousands) Market 250 • € 1,895 MM ($2,123 5,000 Market Profile Cap* MM) 200 4,000 150 3,000 100 2,000 Dividend • Pay out 40-80% of net
Slide 7: Besi Has Achieved Best in Class Metrics
Besi Has Achieved Best in Class Metrics Besi Worst Best LTM* Peer ASM Pacific Suss K&S Besi Peer Revenue Growth 16.0% 29.7% 16.0% 18.5% 22.0% 29.7% Gross Margin 32.6% 52.6% 32.6% 39.0% 45.7% 52.6% EBITDA Margin** 7.3% 27.2% 7.3% 16.3% 17.1% 27.2% Net Margin 1.7% 12.9% 14.1% 20.1% 1.7% 20.1% Return o
Slide 8: Shareholder Returns 2011-2017
Shareholder Returns 2011-2017* 80 Cumulative: € 258.7 MM Dividends and 72.7 Share Repurchases 70 67.8 7.4 Dividends Share Repurchases 60.9 60 4.0 22.4 50 euro in millions 40 65.3 30 56.9 21.9 45.4 20 14.0 15.1 12.4 9.0 2.7 10 0.9 11.3 12.4 6.8 8.1 0 2011 2012 2013 2014 2015 2016 2017 YTD * * As of J
Slide 9: II. Market
II. MARKET June 2017 9
Slide 10: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 30% 3.9 4.1 4.3 4.0 27.1% 3.7 20% (US$ billions) 3.0 3.2 10% 15.4% 3.0 11.8% 5.0% 0% 2.0 -10% 1.0 -20% -22.0% -17.3% 0.0 -30% 2013 2014 2015 2016E 2017E 2018E Source: VLSI May 2017 Besi Revenue Revenue YoY Gro
Slide 11: Assembly Equipment Market Composition
Assembly Equipment Market Composition Assembly Equipment Market * Besi Addressable Market * (2016: $3.6 billion) (2016: $1.4 billion) Lead Trim & Plating Other Form 2.0% Assembly 6.6% Wire Bonding Molds (Inspection, 21.8% 9.8% Dicing) 29.7% Die Attach 41.0% Presses 16.8% Die Attach 55% Plating 0.8%
Slide 12: Besi Has Gained Share In Its Addressable Markets
Besi Has Gained Share In Its Addressable Markets Source: VLSI, May 2017 and Besi estimates 2012 2013 2014 2015 2016 2017E* Besi Addressable Market 21.7% 26.4% 30.5% 31.3% 29.8% 35% Total Die Attach 27.5% 31.9% 37.1% 37.5% 37.2% Die Bonding 29.7% 39.1% 40.3% 38.9% 37.5% Flip Chip 22.2% 24.1% 33.2% 31
Slide 13: Besi Share of Wallet
Besi Share of Wallet Die Attach Packaging 2017 2017 • Customers are largest 2014 2015 2016 2014 2015 2016 YTD* YTD* semi mfrs. engaged in Subcons most advanced packaging ASE 70% 80% 70% 40% 35% 25% 15% 20% Amkor 90% 95% 95% 100% 20% 25% 10% 35% applications JCET/Stats 70% 30% 60% 70% 50% 5% 30% 35%
Slide 14: III. Strategic Agenda
III. STRATEGIC AGENDA June 2017 14
Slide 15: Besi Has Realized Vision of 2008 Strategic Plan
Besi Has Realized Vision of 2008 Strategic Plan 450 Products 70% € 406.7 •Expanded A/P leadership position organically and via Esec acquisition 65% •Gained mindshare with key industry leaders •Growth in China, key customers and electronics supply chains 350 60% Revenue and Net Profit (€ millions) Op
Slide 16: Strategic Priorities: 2017-2021
Strategic Priorities: 2017-2021 Revenue Initiatives Cost Initiatives • Grow in excess of assembly • Reduce structural costs and break- equipment market: even levels further: • Expand addressable market with • Continue West-East personnel transfer particular focus on mainstream • Increase Asian perso
Slide 17: Revenue Initiative: Expand Addressable Market and Market Penetration
Revenue Initiative: Expand Addressable Market and Market Penetration End User Opportunities Market Segments Applications/Markets High End: End User Applications: Increase Penetration of • Maintain Tech Leadership • Memory/Logic Key Electronics Supply • Leverage market position • Mobile Internet Chai
Slide 18: Revenue Initiative: Expand Chinese Market Presence
Revenue Initiative: Expand Chinese Market Presence Via Increased Local Production China Customer Revenue and Units Shipped 100% 200 20% 23% 30% 80% 50% 150 % of total revenue 139 60% Units 100 40% 80% 77% 70% 50% 50 20% 33 0% 0 0 2014 2015 2016 Objective Other Besi Revenue China Revenue Units shippe
Slide 19: Revenue Initiative: Invest in Chinese process and technical capabilities
Revenue Initiative: Invest in Chinese process and technical capabilities to support future growth Growth of Service and Technical Support Personnel in China 180 165 160 150 143 140 120 100 63 39 80 40 60 40 20 0 2015 2016 Q1 17 Taiwan Other Asia Singapore Korea China Malaysia • Service, engineering
Slide 20: Cost Initiatives
Cost Initiatives ~€ 15 Million Potential Cost Reduction Over Next Five Years Supply Chain (~40%) Headcount (~35%) Product Design (~25%) • Increased outsourcing • West – East Transfer • With each new product • Vendor consolidation and • Certain SG&A and R&D generation: volume discounts functions • Re
Slide 21: Cost Initiative Timeline
Cost Initiative Timeline 2017 2018 2019 2020 2021 Supply Chain Increased outsourcing Vendor consolidation Common parts Headcount West – East Transfer (SGA) West – East Transfer (R&D) Product Design Common platforms June 2017 21
Slide 22: IV. Technology Update
IV. TECHNOLOGY UPDATE June 2017 22
Slide 23: Besi Assembly Processes
Besi Assembly Processes • Sorting and mounting chips on substrate materials • Establishing electrical interconnects • Molding/encapsulating devices in packages • Singulation/trim and form of packages • Electro plating of leadframes, substrates and solar cells • Flip chip, multi module, Fan Out + TCB
Slide 24: Best in Class Product Portfolio
Best in Class Product Portfolio Die Attach Die Bonding Multi Module Attach Flip Chip Die Sorting Die Lid Attach • 2009 SSI • 2200 evo • 8800 CHAMEO advanced New • WTT New • DLA New • 2100 xP plus / hS • 2100 sD plus / PPP plus • 2100 DS New • 2200 evo plus • 8800 TCB advanced New • TTR New • 2100 sD
Slide 25: Key Trends Affecting Next Generation Devices
Key Trends Affecting Next Generation Devices Data usage keeps increasing Ever smaller transitors for faster/lower energy use Source: Imec An Steegen ITF May 2017 Source: Imec ITF May 2017 Cost reduction becomes more difficult to achieve 3D Integration coming Source: Qualcomm May 2017 June 2017 25
Slide 26: Projected Performance and Power Requirements
Projected Performance and Power Requirements Source: Imec ITF May 2017 June 2017 26
Slide 27: Advanced Packaging is Critical Step in Realizing Future Technology Roadmap
Advanced Packaging is Critical Step in Realizing Future Technology Roadmap Intel Mix and Match approach Not all dies use most advanced/expensive node Source: Intel Qualcomm 3D Stacking increases speed Global Foundries indicates 3D may be at reduced cost more cost effective than 2.5D Source: Qualcomm
Slide 28: Key Trends Affecting Besi's End User Markets
Key Trends Affecting Besi‘s End User Markets 2016 % of Revenue 35% 30% 30% 25% 24% 20% 18% 15% 15% 10% 10% 5% 3% 0% • Mobile Internet devices, Computing and Automotive are Besi’s three largest and most rapidly growing end user markets Source: Company estimates June 2017 28
Slide 29: Key Trends Affecting Besi's End User Markets
Key Trends Affecting Besi‘s End User Markets 2016 % of Revenue 35% 30% 30% 25% 24% 20% 18% 15% 15% 10% 10% 5% 3% 0% Source: Company estimates June 2017 29
Slide 30: Mobile: Proliferation of Internet Connected Devices Will Drive Innovation
Mobile: Proliferation of Internet Connected Devices Will Drive Innovation Source: Ericson Mobility Report Nov 2016 • Mobile unit growth is slowing but features/functionality increasing rapidly • Requires move to more advanced phones and higher network infrastructure investment June 2017 30
Slide 31: Mobile: Adoption of 5G Will Expand Applications and Features
Mobile: Adoption of 5G Will Expand Applications and Features With Increased Performance Source: Qualcomm May 17 ITF Conference June 2017 31
Slide 32: Mobile: Increased Complexity and Density Drive Higher Semiconductor Content
Mobile: Increased Complexity and Density Drive Higher Semiconductor Content Rough Mobile Phone Schematic Memory Display RF Phone -DRAM Touch Network -NAND -Switches -Amplifiers Audio -Filters -Amplifiers -Tranceivers Base Band Application -Speakers Processor Processor -Microphone -Handling all -Hand
Slide 33: Mobile: Key Component Trends: Baseband/Application Processor
Mobile: Key Component Trends: Baseband/ Application Processor Heart of the mobile phone: - Qualcomm Snapdragon - Apple A10 - Samsung Exynos - Mediatek Helio Snapdragon 835 10 nm Samsung Key equipment requirements: • FC FO WLP with clear chip partitioning needed for > 400 Gbps • High precision placem
Slide 34: Mobile: Key Component Trends: Sensors & MEMS
Mobile: Key Component Trends: Sensors & MEMS Devices getting smaller and more advanced with multiple sensors in one package Key equipment requirements: • High precision epoxy dispense and bond line control • High precision placement • Multiple die handling • Very precise molding with open areas Fast
Slide 35: Mobile: Key Component Trends: RF
Mobile: Key Component Trends: RF RF components must address an increasing number of standards, all at lower cost GSM/EDGE/CDMA/UMTS/WCDMA/LTE/ LTE-A/TD-SCMA/TD-LTE /5G/WIFI/ GNSS/NFC Source: Infineon Key equipment requirements: • Handling and integration of smaller, more fragile and multiple die typ
Slide 36: Mobile: Key Component Trends: Cameras
Mobile: Key Component Trends: Cameras Cameras have become key selling items for mobile internet devices 20 MP+/Dual Cameras/3D recognition Key equipment requirements: • Complex parts handling • Fast development and production Source: Henkel cycles • Very precise dispensing • Precise curing • Large a
Slide 37: Key Trends Affecting Besi's End User Markets
Key Trends Affecting Besi‘s End User Markets 2016 % of Revenue 35% 30% 30% 25% 24% 20% 18% 15% 15% 10% 10% 5% 3% 0% Source: Company estimates June 2017 37
Slide 38: Computing: Growth Driven by Cloud Services, AI and Data Analytics
Computing: Growth Driven by Cloud Services, AI and Data Analytics Applications Key equipment requirements: • Sorting and handling of expensive dies • High accuracy • High Speed TCB • Photonics Integration Besi products: • 2100 Source: Google • 2200 • 8800 • WTT/TTR • DLA • AMS-LM • FSL Source: Imec
Slide 39: Computing: And Increased Memory and Storage Needs
Computing: And Increased Memory and Storage Needs Data size growing exponentially. Requires: • More memory • New device technologies such as 3D Nand and xPoint • New configurations such as High Band Width Memory, Hybrid Memory Cube Key equipment requirements: Source: Imec • Handling of thin, fragile
Slide 40: Key Trends Affecting Besi's End User Markets
Key Trends Affecting Besi‘s End User Markets 2016 % of Revenue 35% 30% 30% 25% 24% 20% 18% 15% 15% 10% 10% 5% 3% 0% Source: Company estimates June 2017 40
Slide 41: Auto: Increased Intelligence Requirements Drive Higher Semiconductor Content
Auto: Increased Intelligence Requirements Drive Higher Semiconductor Content in Auto Market Key equipment requirements: • Increased computing capabilities • Utilization of multiple device types • Higher usage and integration of sensors • High operating reliability and safety needs • Exact tracking S
Slide 42: Auto: Electric Vehicles Will Also Drive High-End Semiconductor Demand
Auto: Electric Vehicles Will Also Drive High-End Semiconductor Demand Move from combustion to electric engines greatly increases need for advanced electronic content Key equipment requirements: • Very reliable void-free and diffusion Source: NREL soldering • New soldering processes • Direct sinterin
Slide 43: IV.a. Technology Update: Die Attach
IV.a. TECHNOLOGY UPDATE: DIE ATTACH June 2017 43
Slide 44: Next Generation evo 2200 Multi Module Die Attach System
Next Generation evo 2200 Multi Module Die Attach System SIP CAMERA SENSORS AUTOMOTIVE Key competitive advantages: • Accuracy 7-10 um with very high reliability and Cpk PHOTONICS • Handles multiple and large dies and complete modules • Very flexible with fast transfer from R&D to production New in 20
Slide 45: Next Generation 2100 Stacked Die Epoxy Die Bonder and FC Bonder
Next Generation 2100 Stacked Die Epoxy Die Bonder and FC Bonder Advanced ICs Memory Key competitive advantages: • High accuracy and stability realized in production MEMS • High Cpk and reliability • Highest accuracy in QFN, LGA and QFP • Superior in automotive and MEMS by BLT control New in 2017: •
Slide 46: Next Generation 8800 FC/Fan Out/TCB Die Bonder
Next Generation 8800 FC/Fan Out/TCB Die Bonder Fan Out TCB Key competitive advantages: High Accuracy • Qualified for Qualcomm FC-CSP (AP&BB) since 2008 • De facto Fan Out eWLB standard since 2012 Flip Chip • 30% higher productivity • Continued spec improvements • New applications such as saw filters
Slide 47: Next Generation TCB Process Technology VCB Bonding
Next Generation TCB Process Technology VCB Bonding VCB Step 1: Step 2: Tacking in TC Bonder VCB in Press New bond unit New bondhead with 12 heads with auto tilt compensation • TCB is attractive process but slow and expensive • Introduction of vertical collective bonding with multiple (12) bondheads
Slide 48: Next Generation Solder Die Bonding Systems
Next Generation Solder Die Bonding Systems 2009 2100 High Power Power ICs Standard Key competitive advantages: Power • Best solder system with best indexer • Continuous upgrading aligned with customer roadmaps Dense LF New in 2017: • High Speed dual direct writing solder dispense • Diffusion solderi
Slide 49: IV.b. Technology Update: Packaging & Plating
IV.b. TECHNOLOGY UPDATE: PACKAGING & PLATING June 2017 49
Slide 50: Next Generation AMS-W/LM
Next Generation AMS-W/LM Miniaturization of Communication Devices Drives Alternative Packages System in Package Exposed Die Key competitive advantages: • Standard in molding ultra thin dies • Exposed mold capability for SIP, CPU & MEMS Double sided • Superior system quality & mold chase design • Str
Slide 51: Next Generation FML
Next Generation FML System in package Processors Key competitive advantages: • 30% cost reduction compared to compression molding Package on Package • No die swim, narrow gap filling of 50 um • Accuracy placement of 0.1 mm New in 2017:AMS-LM • inFine New 2017: filler compound handling • Integration
Slide 52: Next Generation Fico Compact Line (FCL)
Next Generation Fico Compact Line (FCL) Component Traceability is Key in Auto Market Key competitive advantages: • Can handle difficult leadframes • 30% higher productivity • Less conversion in system design New in 2017:FCL-X/P New in 2017: • • Full Full traceability forautomotive traceability for a
Slide 53: Next Generation CD-EDF-EPL Plating Systems
Next Generation CD-EDF-EPL Plating Systems Key competitive advantages: • Very efficient material usage • De facto plating standard • Very high accuracy in plating zone • Active development program • Approved for automotive applications New in 2017: • Chemical deflash • Durable rotational nozzles for
Slide 54: Next Generation CPL Plating System
Next Generation CPL Plating System Hetero Junction cells Bi-facial PERC cells Key competitive advantages: • Best in class cost of ownership • Process controllability state-of-art • Industry 4.0 compatible • Smaller ecological footprint New in 2017: • Integrated strip-etch back processes • Bi-facial
Slide 55: Technology Summary
Technology Summary • Semiconductor assembly plays an increasingly important role in the development of next generation devices • Slowing of Moore‘s law requires greater advancements in packaging technology • Advanced packaging demand continues to expand driven by ever smaller form factors; increased
Slide 56: V. Financial Review
V. FINANCIAL REVIEW June 2017 56
Slide 57: Revenue and Gross Margin Development
Revenue and Gross Margin Development 450 66% 407 400 379 375 349 60% • Positive trajectory for Besi’s revenue 350 and gross margin development • Revenue CAGR of 10.4% between 2012 300 54% and LTM 2017 274 52.6% • Gross margins grew by 12.9 points 255 51.0% between 2012 and LTM 2017 € in millions 250
Slide 58: Operating Expense Development
Operating Expense Development 140.0 35.0% 116.3 117.6 120.0 30.0% 112.5 • Strategic initiatives have limited 18.8 17.7 19.6 baseline opex growth relative to 100.0 93.9 25.0% revenue development 87.9 23.7% 7.1 • Significant operating leverage in 82.7 1.0 1.0 business model € in millions 80.0 20.0% 20
Slide 59: Profit Development
Profit Development 90 55% 81.6 80 45% • Similarly, net profit generation has 70 increased strongly 64.5 65.2 • Adjusted net income up € 63.4 million 60 35% between 2012 and LTM 2017 • Net margins have grown from 6.6% in € in millions 50 2012 to 20.1% in LTM 46.9 25% • Through cycle profitability ach
Slide 60: Liquidity Trends
Liquidity Trends Cash and Deposits Net Cash 350 304.8 309.0 300 Besi has significantly increased cash flow generation over past five years • Net cash up > 2x between 2012 and 250 2016 • Despite € 164.1 million of dividends and share repurchases € in millions 200 • Increased profits, faster cycle tim
Slide 61: Q2-17 Guidance
Q2-17 Guidance* Revenue Gross Margin € 110.2 55.7% 40% 54% to - 50% 56% Q1-17 Q2-17 Q1-17 Q2-17 Operating Expenses € 30.5 10% to 15% Q1-17 Q2-17 * Guidance issued on 4/25/17 June 2017 61
Slide 62: 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 segments Significant upside potential. Scalability and profitability Committed to enhancing of business model grea
Slide 63: Financial Calendar
Financial Calendar 12-Jul-17 2017 CEO Summit, San Francisco 27-Jul-17 2017 Second Quarter Results 7/8-Sep-17 Deutsche Bank TMT Conference, London Autumn Conference Kepler Cheuvreux in partnership with 14-Sep17 Rabobank, Paris 1-Nov-17 2017 Third Quarter Results 15/17-Nov-17 Morgan Stanley TMT Confer
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