Semiconductor Manufacturing International Corp. · HKEX:981
Semiconductor Manufacturing International — Q2 2020 Earnings Presentation
19 slides from Semiconductor Manufacturing International's earnings presentation, August 2020
Slide 1: SMIC Investor Presentation
SMIC Investor Presentation SEHK : 00981 SSE STAR MARKET : 688981 OTCQX : SMICY SMIC Investor Relations August 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains, in addition to historical information, forward-looking statements. These forward-looking statements, including statements under “Third Quarter 2020 Guidance”, “Capex Summary” and the statements contained in the quotes of our Co-Chief Executive O
Slide 3: I. Market Opportunity
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth Remarks SMIC Presentation 3
Slide 4: Rapid Growth of the China IC Market
RAPID GROWTH OF THE CHINA IC MARKET China: World’s Largest IC Market (US$bn) Chinese Fabless Market Growth (US$bn) Chinese IC Industry Revenue Development (US$mn) Chinese Fabless Global Fabless IC Design IC Manufactory IC Packaging and Testing USA Japan China Others 85733 97 97 66417 89 92 91 61 87
Slide 5: II. SMIC Introduction
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth Remarks SMIC Presentation 5
Slide 6: SMIC: Largest and Most Advanced IC Foundry in PRC
SMIC: LARGEST AND MOST ADVANCED IC FOUNDRY IN PRC Established Listed on SEHK and #1 #4 Annual Revenue US$B in 2000 SSE STAR MARKET in PRC globally mid to high teens growth $ 3.1 2019 2020F Shareholding Structure SMIC’s Strong Position in China IC Ecosystem Strong Global Presence Material/ Equipment
Slide 7: Becoming Fundamentally Solid, Returning to Strong Growth
BECOMING FUNDAMENTALLY SOLID, RETURNING TO STRONG GROWTH Early Establishment Turnaround New Phase of Growth SMIC Annual Revenue (US$bn) 3.4 3.1 3.1 2.9 2.1 2.0 2.2 Foundry of Choice in China 1.6 1.7 Aiming to: 1.5 1.5 1.4 1.2 1.3 1.0 1.1 be a world-class, mainstream foundry 0.4 0.0 0.1 0.4 accelerat
Slide 8: SMIC Family of IC Manufacturing
SMIC FAMILY OF IC MANUFACTURING 480K TOTAL 8” EQUIV WPM 2Q20-end 234K 8” wpm 109K 12” wpm 115 52 50 73 46 6 1.4 SH TJ SZ SH BJ BJ-JV SH-JV Expansion Conditions: New Fabs • Market and customer demand • Technological readiness • Majority-owned advanced JV fab, Shanghai JV 12” 14nm and below • Partners
Slide 9: III. SMIC Performance
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth Remarks SMIC Presentation 9
Slide 10: Financial Summary – 2Q 2020
FINANCIAL SUMMARY – 2Q 2020 Revenue (US$mm) Gross Margin Non-IFRS Opex (US$mm) Non-controlling interests (US$mm) 967 12 235 10 948 21% 938 26% 19% 220 215 0 - - 2Q20 Results - 3Q Guidance 2Q20 Results 3Q Guidance 2Q20 Results 3Q Guidance 2Q20 Results 3Q Guidance Revenue and Profitability (US$mm) Div
Slide 11: Capex, EBITDA, and Cash Levels
CAPEX, EBITDA, AND CASH LEVELS Balance Sheet (US$bn) Capex (US$bn) Liabilities 7.2 Assets 20.4 6.7 Equity 13.2 2.5 1.8 2.1 2017 2018 2019 2020F Cash and EBITDA (US$mm) 56% 48% 49% 45% 34% 38% 39% 39% 33% 31% 18% 16% Cash in hand * 1% 3% 12% -5% EBITDA -6% Gross Debt/Equity -17% Net Debt/Equity 6402
Slide 12: 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 since Oct 2015 China Chengxin International Credit Rating Agency’s triple A rating since Nov 2015 Committed to Net Debt/EBITDA less
Slide 13: IV. Strategies for Growth
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth Remarks SMIC Presentation 13
Slide 14: Platform Strategy Driving Diversified Growth and Loading
PLATFORM STRATEGY DRIVING DIVERSIFIED GROWTH AND LOADING eNVM Logic NOR/NAND Mixed-Signal & RF MEMS PMIC CIS HV Chip content within devices is growing exponentially; therefore SMIC is: • Strategically expanding platforms, driven by market demand • Continuously innovating product platforms to drive g
Slide 15: New FinFET Era with Total Solution Strategy
NEW FINFET ERA WITH TOTAL SOLUTION STRATEGY FINFET TOTAL SOLUTION TO ENABLE LONG-TERM COMMITMENT MASK MAKING Most advanced mask shop in Mainland China Full range of IP INTELLECTUAL PROPERTY FOUNDRY Full FinFET portfolio : 14/12nm, N+1… Mainland China’s most advanced fab FINFET 14nm in production TOT
Slide 16: Business Opportunities
BUSINESS OPPORTUNITIES To best serve customers, SMIC is expanding its FinFET product portfolio with various applications under development Smartphones Smart TV & STB HPC Networking Connectivity Automotive AI IoT FINFET MARKET REVENUE: 14NM AND BELOW FORECAST (US$MN) 53,770 48,719 44,382 38,662 33,88
Slide 17: V. Concluding Remarks
I. II. III. IV. V. Market SMIC SMIC Strategies for Concluding Opportunity Introduction Performance Growth Remarks SMIC Presentation 17
Slide 18: Aiming to Be a World-Class Foundry
AIMING TO BE A WORLD-CLASS FOUNDRY Execution • Mature tech platforms solid and Financial mature fabs full. • Investment-grade credit rating • Advanced tech FinFET developed • $6.4bn cash on hand at the end of 2Q20 and ramping up • 2020 annual EBITDA expected close to $1.8bn • JV partnerships for new
Slide 19: Thank You
Thank You Contact us: [email protected] SMIC Presentation 19
Semiconductor Manufacturing International Corporation (SMIC) — Q2 2020 Earnings Presentation on 6ix