Semiconductor Manufacturing International Corp. · HKEX:981
Semiconductor Manufacturing International — Investor Presentation (March 2016)
29 slides from Semiconductor Manufacturing International's investor presentation, March 2016
Slide 1: SMIC Presentation
SMIC Presentation NYSE: SMI HKSE: 0981-HK March 2016 This presentation is available at http://www.smics.com/download/ir_presentation.pdf
Slide 2: Safe Harbor Statements
Safe Harbor Statements Under the Private Securities Litigation Reform Act of 1995 This presentation contains, in addition to historical information, “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These for
Slide 3: Introduction
Introduction Financial Performance China Semiconductor Opportunity Strategies for Profitable Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed w ithout written permission from SMIC. 3 SMIC shall not be
Slide 4: SMIC: Largest and Most Advanced IC Foundry in PRC
SMIC: Largest and Most Advanced IC Foundry in PRC Company Overview Strong Global Presence Established in 2000, headquartered in Shanghai China China Beijing Tianjin Listed both on HKSE and NYSE USA China Italy Santa Clara Headquarters The leading semiconductor foundry in China Shanghai Israel
Slide 5: SMIC Milestones
SMIC Milestones 2007 2012 2014 Achieved Validated Collaborated Established a JV End User status from 2009 with IBM on for 12” bumping and 2005 US Government 28nm technology related testing 65nm volume 2002 Started Licensed IBM 45nm production 40nm volume Co-invested in Started prod
Slide 6: Independent and International Board
Independent and International Board Members Title Background Chairman of the Board & Dr. Zhou joined SMIC in 2015. Previously he served as Chief Economist in the Ministry of Industry and Zhou Zixue Executive Director Information Technology of China (“MIIT”) since April 2009. Chief Executive Officer
Slide 7: Experienced Management Team
Experienced Management Team 2009–2015: Chief Economist, Ministry of Industry and Information Technology of China (“MIIT”) Chairman 2008–2009: Director-General, Department of Finance Dr. Zhou Zixue of MIIT 2002–2008: Director-General, Ministry of Information Industry of China 2009–2011: Presi
Slide 8: 4Q15 Financial Highlights
4Q15 Financial Highlights Revenue: $610.1M, record high Gross profit: $173.9M Gross margin: 28.5% Profit attributable to SMIC: $38.6M • 15th consecutive profitable quarter Cash & Other Financial Assets: $1.3B Gross debt to equity: 33.8% Utilization rate: 100.4% 3Q 2015 Financial Highli
Slide 9: 2015 Financial Achievements (unaudited)
2015 Financial Achievements (unaudited) SMIC Annual Revenue and Profit (US$mm) 2015 Financial Highlights Revenue from Wuhan Xinxin 2,500 Non-GAAP Revenue* Revenue: $2.24B, record high Profit attributable to SMIC Gross Profit: $682.6M, record high 107 2,000 Gross Margin: 30.5%, record high 160
Slide 10: The Leading China-Based Semiconductor Foundry
The Leading China-Based Semiconductor Foundry Beijing 12’’ Fab 37K/mth (55-90nm, 0.13um) Beijing JV 12’’ Fab 6K/mth (28/40/45nm) Shanghai 12’’Fab Tianjin 8” Fab 14K/mth (28/40/45nm) 43K/mth (0.13-0.35um) Shenzhen 8” Fab Shanghai 8’’ Fab 13K/mth (0.15-0.35um) 100K/mth (0.11-0.35um) Fab Fab 4Q15 1Q14
Slide 11: SMIC is Well Positioned to Capture Strong Demand from the China IC Industry
SMIC is Well Positioned to Capture Strong Demand from the China IC Industry SMIC’s Strong Position in China IC Ecosystem… …leading to strong growth in revenues from China 1,067 Material 852 837 Fabless 578 Equipment Fab-lite 443 431 Mask 229 213 IP provider CHINA manufacturing IC ECOSYSTEM EDA tool
Slide 12: Financial Performance
Introduction Financial Performance China Semiconductor Opportunity Strategies for Profitable Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed w ithout written permission from SMIC. 12 SMIC shall not be
Slide 13: Improved Efficiency and Sustained Profitability
Improved Efficiency and Sustained Profitability Strong Revenues Growth (US$mm) Improved Gross Margin and Profit (US$mm) Record high revenue Net profit Gross Margin Target 20% grow th Wuhan Revenue 31% 25% Target mid 20s’ GM Revenue excl. Wuhan 21% 107 20% 160 8% 253 111 173 153 23 2,236 1,962 1,970
Slide 14: Capex, Depreciation, and Cash levels
Capex, Depreciation, and Cash levels 2016 Capex Cash and Cash Flow Guidance from Operations (US$mm) Cash and bank balances Other Financial Assets $2.1B Cashflow from Operations Debt/Equity 48.3% 45.2% 39.0% 38.7% 33.8% 1,005 738 644 608 669 603 435 462 379 358 $60mm 262 240 283 Foundry Non-foundry O
Slide 15: Support from Financial Market
Support from Financial Market Successfully completed $200mm CB offerings Pro-rata participation completed • Date: October 2013 • Amount: ~$86 million • Term: 5-year maturity and 3 year put • Date: May 2014 • Conversion Premium: 35% • Participants: Datang and CIC • Coupon: 0.00% • YTM: 0.00% Successf
Slide 16: Investment Grade Credit Rating
Investment Grade Credit Rating S&P investment grade BBB- long-term corporate credit rating since Oct 2013 Moody’s investment grade Baa3 corporate credit rating in Oct 2015 China Chengxin International Credit Rating Agency’s triple A rating in Nov 2015 Committed to Debt/EBITDA less than 2x to
Slide 17: China Semiconductor Opportunity
Introduction Financial Performance China Semiconductor Opportunity Strategies for Profitable Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed w ithout written permission from SMIC. 17 SMIC shall not be
Slide 18: Rapid and Sustainable Growth of China IC Market
Rapid and Sustainable Growth of China IC Market China has become the world’s largest Chinese fabless market growth SMIC sees rapid growth of IC market (US$bn) (US$bn) revenue from China (US$mm) 2000 – China market share: 7% Chinese Fabless * Global Fabless ** SMIC's China Revenue USA $64 ~6x Others
Slide 19: China IC Market Growth Drives Foundry Potential
China IC Market Growth Drives Foundry Potential Total China IC Market & Local Brands & Design Local foundries Revenue (US$bn) Local foundries Local design* 4 Local brands** Local design 14 2015E Total China IC market 57 147 2.2 Local brands 4.2 2008 27.0 79.2 **Including local system companies China
Slide 20: Strategies for Profitable Growth
Introduction Financial Performance China Semiconductor Opportunity Strategies for Profitable Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed w ithout written permission from SMIC. 20 SMIC shall not be
Slide 21: Executing Three Prongs for Sustainable Profitability & Growth
Executing Three Prongs for Sustainable Profitability & Growth Fully utilize Fully utilize existing assets existing assets Differentiate and diversify technology portfolio to address broad market needs and profitable areas of growth Advance technology in preparation for the migration of the applicati
Slide 22: Technology Migration on Application
Technology Migration on Application Digital Logic 20/14nm RF/MS 28nm 28nm 40nm 40nm e-NVM CIS 65/55nm 65/55nm 55nm 65nm BSI Product 90nm 90nm 90nm 90nm BSI & PMIC Other IC 3DICOther IC & Sensors 0.11µm 0.11µm 0.11µm 0.11µm BSI Process 12” Interposer Technology 0.13µm 0.13µm 0.13µm 0.13µm FSI / BSI 0
Slide 23: Recent Differentiated Technology Roll out
Recent Differentiated Technology Roll out 38nm • In risk production By continuing to roll out NAND • Mobile code storage new technologies, we are increasing our addressable • In mass production market and gaining new 55nm e-Flash • Both Overseas and Chinese market share Worldwide CIS, Smart Cards, •
Slide 24: M Fab, Middle-end Wafer Process Fab
M Fab, Middle-end Wafer Process Fab SMIC established the industry’s leading-edge “middle-end wafer process” Fab, M-Fab, offering integrated capability of advanced specialty process fabrication for vision, sensors, 3DIC and 3D Wafer-Level SiP. MEMS/TSV Bumping WLP(DPS) One Stop Services… Oscillator
Slide 25: SPOCULL 95ULP Technology
SPOCULLTM 95ULP Technology Excellent Performance-Boosting Solution High Density Solution •Excellent 42% Gate Performance Density Increase (270kgates/mm2 vs - Highest Density 190kgates/mm 2) Solution at 8” Foundry Technology 95ULP • 2X density compared to 0.13LL logic • 3X density compared to 0.13LL
Slide 26: Investments in Innovation and Performance
Investments in Innovation and Performance R&D Expense R&D Expensevs vsSales Sales (US$mm) 12% 12% 9% 8% 8% 272 227 171 114 134 2011 2012 2013 2014 2015(unaudited) Note: R&D expense excludes the funding of R&D contracts from the government and fab start-up costs Design IP enabled Wafer Shipments Accu
Slide 27: Concluding Remarks
Introduction Financial Performance China Semiconductor Opportunity Strategies for Profitable Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed w ithout written permission from SMIC. 27 SMIC shall not be
Slide 28: Concluding Remarks
Concluding Remarks Summary of Highlights Healthy With disciplined execution of strategy, resulting in Financials diversification of our products and customer base, we Technology achieved record high revenue, gross margin, and net profit in 2015. Readiness We have made various preparations for gr
Slide 29: Thank You
Thank You Contact us: [email protected] SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed w ithout written permission from SMIC. 29 SMIC shall not be responsible for any party’s reliance on these materials.