Semiconductor Manufacturing International Corp. · HKEX:981
Semiconductor Manufacturing International — Investor Presentation (November 2017)
26 slides from Semiconductor Manufacturing International's investor presentation, November 2017
Slide 1: SMIC Presentation
SMIC Presentation NYSE: SMI HKSE: 0981-HK Nov 2017 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: Agenda
Introduction SMIC 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 without written permission from SMIC. 3 SMIC shall not be respon
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 Italy China China Avezzano Beijing Tianjin Established in 2000, headquartered in Shanghai Germany USA China Italy Listed both on HKSE and NYSE Headquarters Shanghai The leading semiconductor foundry in Ch
Slide 5: SMIC's Milestones
SMIC’s Milestones 2,914 Revenue($M) Net Profit attributable to SMIC($M) Q1~Q3 2,236 2,314 2,069 (unaudited) 1,970 1,702 1,465 1,550 1,555 1,354 1,319 1,171 975 1,070 Q1~Q3 366 377 132 173 253 90 153 (unaudited) 50 14 23 (3) (66) (44) (19) (440) 2014: Exited Wuhan business (103) (112) 2008: Completed
Slide 6: Independent and International Board
Independent and International Board Executive Directors Zhou Zixue Zhao HaiJun Liang Mong Song Gao Yonggang Chairman Non-Executive Directors Tzu-Yin Chiu Tong Guohua Chen Shanzhi Lu Jun Ren Kai Zhou Jie Vice Chairman Datang Datang Sino IC-Capital Sino IC-Capital Haitong Securities Previous SMIC Pres
Slide 7: International and Experienced Management Team
International and Experienced Management Team Co-CEO CEO Co-CEO Dr. Haijun Dr.Zhao Zhao Dr. Liang HaiJun Mong Song Technology Legal CFO Sales & Engineering & Design Service R&D Public Affairs/ Dr. Gao Marketing Services Dr. Tianshen Yonggang Mike Rekuc Dr. Zhou Tang Corp. GA Dr. Jyishyang Liu MeiShe
Slide 8: 3Q17 Financial Highlights
3Q17 Financial Highlights 3Q 2017 Guidance 3Q 2017 Results flat to +3% QoQ +2.5% QoQ Revenue $751 to $774 million $770 million Gross Margin 22% to 24% 23.0% Non-GAAP Operating Expenses (1) $179 to $185 million $184 million Non-controlling interests (2) $0 to $3 million -$4.7 million 3Q 2017 Financia
Slide 9: SMIC Family of IC Manufacturing – Existing Fabs
SMIC Family of IC Manufacturing – Existing Fabs Beijing 12’’ Fab 50K/mth (55-90nm, 0.13um) Shanghai 8’’ Fab Beijing JV 12’’ Fab 114K/mth (0.11-0.35um) 27.5K/mth (28/40/45nm) Italy LF 8” Fab Shanghai 12’’Fab 40K/mth (90nm-0.18um) 18K/mth (28/40/45nm) Tianjin 8” Fab 47K/mth (0.13-0.35um) Shenzhen 8” F
Slide 10: New Fabs for Future Growth
New Fabs for Future Growth Tianjin • 8-inch fab • Targeting to be the World's Largest Integrated 8-inch IC Production Line Shanghai • Advanced 12-inch fab Shenzhen • Mature 12-inch fab • 1st 12-inch line in Expansion Conditions: South China • Assured customer demand • Technological readiness • Susta
Slide 11: Agenda
Introduction SMIC Performance China Semiconductor Opportunity Strategies for Profitable Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 11 SMIC shall not be respo
Slide 12: Efficiency & Profitability
Efficiency & Profitability Revenues ($M) Profit Capabilities ($M) Revenue excl. Wuhan Net profit Gross Margin 31% 29% 28% 25% 26% 377 23% 21% 20% 2,914 253 2,236 1,962 1,970 173 1,541 153 793 751 770 70 23 36 26 2012 2013 2014 2015 2016 1Q17 2Q17 3Q17 2012 2013 2014 2015 2016 1Q17 2Q17 3Q17 Utilizat
Slide 13: Capex, EBITDA, and Cash Levels
Capex, EBITDA, and Cash Levels 2017 Capex Cash and EBITDA Guidance (US$M) $2.3B Cash in hand * EBITDA Gross Debt/Equity Net Debt/Equity 56% 52% 48% 47% 48% 45% 2,158 2,109 39% 34% 1,726 33% 1,247 1,288 1,392 24% 25% 1,063 18% 767 16% 620 703 760 708 11% 358 312 260 3% 287 $70M 1% 2012 2013 2014 2015
Slide 14: Investment Grade Credit Rating
Investment Grade Credit Rating S&P investment grade BBB- long-term corporate credit rating since Oct 2013 Moody’s investment grade Baa3 corporate credit rating in Oct 2015 China Chengxin International Credit Rating Agency’s triple A rating in Nov 2015 Committed to Net Debt/EBITDA less than 2
Slide 15: Agenda
Introduction SMIC Performance China Semiconductor Opportunity Strategies for Profitable Growth Concluding Remarks SMIC Presentation All copyrights and IP belong to SMIC. For reference only and may not be copied or distributed without written permission from SMIC. 15 SMIC shall not be respo
Slide 16: Rising Chinese Brands in Global Markets
Rising Chinese Brands in Global Markets Worldwide Shipment Share (Y16) Smartphone Brands Shipment (Y14~Y16) Chinese brands are gaining market share Mobile Phone LCD TV ~40% of WW ~35% of WW 31% 29% 29% Others Others 3% 2% 3% 4% 3% 5% TCL TCL 3% 5% 4% 5% LG 4% LG 3% 4% Lenovo 5% Lenovo 5% 5% ZTE 2% Z
Slide 17: Rapid Growth of China IC Market
Rapid Growth of China IC Market China has become the world’s largest Chinese fabless market growth SMIC sees rapid growth of IC market (US$bn) (US$bn) revenue from China (US$mm) 2000 – China market share: 7% Chinese Fabless Global Fabless SMIC's China Revenue USA $64 Others $100 111 105 Japan ~4x 10
Slide 18: China IC Market Drives Foundry Growth
China IC Market Drives Foundry Growth Total China IC Market , Local Brands & Design Local foundries Revenue ($B) Local foundries Local design 5 Local brands* Local design 21 2017F Total China IC market 83 186 2.2 Local brands 4.2 2008 27.0 79.2 *Including local system companies China Smartphone Unit
Slide 19: Agenda
Introduction SMIC 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 without written permission from SMIC. 19 SMIC shall not be respo
Slide 20: Strategy for Sustainable Profitability & Growth
Strategy 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 applications we serve S
Slide 21: Growth Drivers & Opportunities
Growth Drivers & Opportunities NAND/ IOT Auto PMIC e-Flash NOR IOT Rev (billion) Auto Rev (billion) NAND/NOR Rev (billion) PMIC Rev (billion) 53 52 53 50 44 40 39 41 38 38 39 35 35 36 33 32 34 32 33 31 28 29 24 25 2015 2016 2017F2018F2019F2020F 2015 2016 2017F2018F2019F2020F 2015 2016 2017F2018F2019
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 3DIC & Sensors Other IC 0.11µm 0.11µm 0.11µm 0.11µm BSI 12” Interposer Process Technology 0.13µm 0.13µm 0.13µm 0.13µm FSI / BSI
Slide 23: Investments in Innovation and Performance
Investments in Innovation and Performance R&D Expense vs Sales R&D Expense vs Sales (US$mm) Q1~Q3 15% 14% 11% (unaudited) 10% 11% 11% 7% Q1~Q3 318 326 237 (unaudited) 191 194 190 145 2011 2012 2013 2014 2015 2016 2017 Accumulative Number of Design IP enabled Wafer Shipments Granted Patents vs Total
Slide 24: Agenda
Introduction SMIC 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 without written permission from SMIC. 24 SMIC shall not be respo
Slide 25: Concluding Remarks
Concluding Remarks • China is building semi ecosystem • Room to grow our foundry market share • Disruptive innovation: IOT(shared bikes), etc Execution Financial • 22 consecutive quarters of profit • 2016 Rev grew 30% YoY • Operating cash • 2016-2019 target 20% rev CAGR • JV & leasing Technology Pos
Slide 26: 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 without written permission from SMIC. 26 SMIC shall not be responsible for any party’s reliance on these materials.