2017 annual results announcement - asm pacific€¦ · asm pacific technology © 2018 page 2...

2017 Annual Results

Announcement

March 1, 2018

ASM Pacific Technology © 2018

Disclaimer

The information contained in this presentation is provided for informational purpose only, and should not be relied upon for the purpose

of making any investment or for any other purpose.

Some of the information used in preparing this presentation was obtained from third parties or public sources. The information contained

in this presentation has not been independently verified. No representation or warranty, expressed or implied, is made as to, and no

reliance should be placed on, the fairness, reasonableness, accuracy, completeness or correctness of such information or opinions

contained herein. It is not the intention to provide, and you may not rely on this presentation as providing, a complete or comprehensive

analysis of our financial or trading position or prospects. The information and opinions contained in this presentation are provided as at

the date of this presentation and are subject to change without notice and will not be updated to reflect any developments which may

occur after the date of this presentation.

All statements, other than statements of historical facts included in this presentation, are or may be forward-looking statements.

Forward-looking statements include, but are not limited to, those using words such as “seek”, “expect”, “anticipate”, “estimate”, “believe”,

“intend”, “project”, “plan”, “strategy”, “forecast” and similar expressions or future or conditional verbs such as “will”, “would”, “should”,

“could”, “may” and “might”. These forward-looking statements reflect the Company’s current expectations, beliefs, hopes, intentions or

strategies regarding the future and assumptions in light of currently available information. Such forward-looking statements are not

guarantees of future performance or events and involve known or unknown risks and uncertainties. Accordingly, actual results may differ

materially from information contained in the forward-looking statements as a result of a number of factors. You should not place undue

reliance on such forward-looking statements, and the Company does not undertake any obligation to update publicly or revise any

forward-looking statements. No statement in this presentation is intended to be or may be construed as a profit forecast.

We also do not undertake any obligation to provide you with access to any additional information or to update this presentation or any

additional information or to correct any inaccuracies in this presentation or any additional information which may become apparent.

This presentation does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of

or be relied upon in connection with any contract, commitment or investment decision in relation thereto.


CORPORATE

OVERVIEW

3


A World’s Technology & Market Leader

2017 Group Revenue (CAGR 2007- 2017 12.5 %) A leading Integrated Solutions

Provider in the semiconductor

assembly and packaging industry as

well as in the SMT solutions market

A leading player for CIS, LED, and

Automotive

3 high growth markets accounted

for 52% of group revenue in 2017

SMT

Solutions

38.5%

Back-end

Equipment

49.3%

Materials

12.2%

US$2.25B


ASMPT Global Presence

USA

Canada

Mexico

Costa RIca

Brazil

UK

The

Netherlands Germany

Spain

Morocco

France

Italy

Sweden

Malta

Czech Republic

Romania

Hungary Austria

Poland

Singapore

Malaysia

Hong Kong

China

Japan

Korea

Taiwan

Philippines

Russia

India

Thailand

Indonesia

Business Centre / R&D /

Manufacturing Site

R&D centres

worldwide global R&D staff

patents on key leading

edge technologies

10 manufacturing

facilities

7 > 1,100 > 1,800

http://www.google.com.sg/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCOGhm6iBgMgCFUiMlAodLfkBXw&url=http://www.rootwork.it/portfolio/research-and-development/&bvm=bv.102829193,d.dGo&psig=AFQjCNEAIWgSj4gwWUafkV2rypp8iQc5Zg&ust=1442645803253719

https://www.google.com.sg/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMm18NOEgMgCFZJajgodXA8ASw&url=https://www.iconfinder.com/icons/211793/people_icon&bvm=bv.102829193,d.dGo&psig=AFQjCNEHtERCV-85Sopye1INFrOSo7aBVQ&ust=1442646902222855


ASMPT Major Facilities around the World

New facility in Hong Kong

ready by early 2018

Extension of Malaysia plant

ready for operation by 2019

Longgang, China (龙岗)

Fuyong, China (福永) Chengdu, China (成都)

Yishun, Singapore

Johor Bahru, Malaysia Weymouth, UK Beuningen, Netherlands

Munich, Germany

Huizhou, China (惠州)


Strategic Partner For The Electronics Assembly Industry

2nd Level / Board Level Assembly

Chips and components

on printed circuit Board

(“SMT Solutions”)

1st Level / Chip Level Assembly

Chip Assembly & Packaging

(“Back-End”)

Carrier for chip

interconnection

(“Materials”)

Materials

leadframes

advanced packaging

materials (molded

interconnect substrates)

Back-end Equipment

laser grooving and dicing

wire bonders & die bonders

encapsulation solutions, test

handlers, clip bonders, CIS

equipment

TCB bonders, flip chip

bonders, Mold Under Fill

(MUF), panel molding

SMT Solutions

assembly line solutions

DEK printing systems

SIPLACE placement

systems

ASM smart factory tools

& services


Three Business Segments With Leading Market Positions Worldwide Market Position & Share

~8.7% (2017)

~25% (2017)

~22% (2017)

Assembly & Packaging

Equipment Market

SMT Equipment Market SMT

Solutions

Back-end

Equipment

Leadframe Market

Materials

SMT

Leadframe

PAE

Sources: Market share for Back-end Equipment is based on information on packaging and assembly equipment market by VLSI, leadframe market by SEMI, and SMT market by ASMPT SIPLACE Market Intelligence

#1 Die Bonders

#2 Wire Bonders

#1/2 Flip Chip Bonders

#1 Thermal Compression Bonders (TCB)

#1 LED Packaging Equipment

#1 CMOS Imaging Sensors (CIS) Equipment

#2 Encapsulation & Post Encapsulation Solutions

#4 Turret Test Equipment (Test Handlers)

#2 Laser Dicing and Grooving


2017 FINANCIAL HIGHLIGHTS

9


2017 Financial Highlights: A Record Breaking Year

Billings (US$ m)

Bookings (US$ m)

1,877

2,340

2016 2017

Net Profits (HK$ m)

931 1,108

241

275

664

866 1,836

2,249

2016 2017

1,438

2,796

2016 2017

New

Record!

New

Record!

New

Record!

New

Record!

New

Record!

Close to

historical

peak


1,108

-

200

400

600

800

1,000

1,200

2013 2014 2015 2016 2017

2,249

-

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017

Yearly Billings

Group Billings (US$ m)

BE EQT Billings (US$ m)

Materials Billings (US$ m)

SMT Billings (US$ m)

275

-

50

100

150

200

250

300

2013 2014 2015 2016 2017

866

-

150

300

450

600

750

900

2013 2014 2015 2016 2017

YoY Growth: +23.0% YoY Growth: +19.5%


New

Record! New

Record!

New

Record! New

Record!


2,169

-

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017

2,796

-

500

1,000

1,500

2,000

2,500

3,000

2013 2014 2015 2016 2017

Yearly Profits

Group Net Profit (HK$ m)

BE EQT Segment Profit (HK$ m)

Materials Segment Profit (HK$ m)

SMT Segment Profit (HK$ m)

128

-

50

100

150

200

2013 2014 2015 2016 2017

1,084

-

200

400

600

800

1,000

1,200

2013 2014 2015 2016 2017


YoY Growth: -24.7% YoY Growth: +87.4%

New

Record!


2,340

-

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017

Booking & Backlog

Yearly Group Bookings (US$ m)

Quarterly Group Bookings (US$ m)

2017 Booking (YoY % Growth)

Quarterly Group Backlog (US$ m)

496

-

100

200

300

400

500

600

700

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

Q116

Q216

Q316

Q416

Q117

Q217

Q317

Q417

539

-

100

200

300

400

500

600

700

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

Q116

Q216

Q316

Q416

Q117

Q217

Q317

Q417

24.7%

20.0%

13.5%

35.4%

Group

BE EQT

Materials

SMT


YoY Growth: +27.2%

New

Record!


Multiple Application Markets is a key strategy

Mobility, Comm & IT, Optoelectronics

and Automotive % of Group Revenue

50% 52%

2016 2017

ASMPT Revenue Breakdown by Application Markets (2017)


2017 Highlights for Group and 3 Business Segments

ASMPT achieved multiple records in 2017

All 3 business segments achieved new record revenue

Group Net Profit very close to historical peak

YoY GM improvement of 264bps to 40.2%

Back-end Equipment Segment achieved new revenue record and a six-year high GM

IC/discrete led the growth in BE segment, next leading pillars being CIS and LED

2017 was a year of digestion for LED customers, expect our LED business to rebound in 2018

Continued to enjoy a dominant position in Power Management

Progress and development in Advanced Packaging well on track including Flip Chip bonders,

TCB, WLFO/PLFO, Laser Grooving & Dicing, Test & Pack (Sunbird)

Materials Segment attained many new records in 2017 including revenue and bookings

Lean manufacturing structure enabling market share gain

Diversifying beyond leadframes to advanced packaging substrates (MIS)

SMT Segment achieved new records in revenue, bookings and segment profit

Strong demand from Automotive and Industrial Electronics drove SMT business to a high level

Further benefited from smartphone upgrade cycle in 2017

Continued to make good progress in offering SMT products to SiP, WLFO and PLFO markets


DAWN OF THE

DATA CENTRIC ERA

16


Changing Landscape of the Semiconductor Industry

Demand for semiconductor devices at historical high and will become much higher in the next

decade

Driven by market drivers such as IoT, Smart City, Smart Factory, Industry 4.0, AI, AR, VR, Big

Data Analytics, Automotive, and 5G Network

The future is all about data

Huge amounts of data will be collected, transmitted, stored, processed and displayed

Broad-based drivers for the semiconductors market all generate data

Semiconductor industry is anticipated to experience strong growth but cycles bound to be there

Probably shorter cycles


Dawn of the Data Centric Era

Source: VLSI Research, ISS US, January 2018


Future Is About Data and Only Just Beginning

Source: Yole Developpement, May 2017


Data spurs demand for semiconductor devices

Collect

Transmit Analyse

Store

IIOT

Camera

3D Sensing

Sensor

5G

LiFi WiFi

Data Analytics

Big Data

Centre

Memory

AI

Silicon Photonics

Advanced Packaging

Cloud Computing

IOT

LIDAR

CPU/GPU

Display

TCB

LASER Grooving

WLFO

TCB

Advanced Packaging

WLFO

WB

Active Alignment

CIS

LASER Dicing

Silicon

Photonics

TCB

PLFO WB

Precision

Die Attach

Precision

Die Attach

AR

VR

Micro LED

Mini LED

PLFO


5G will be the Data Highway


Broad-based Market Growth Drivers

Dual Camera & 3D Sensing Automotive IoT

ADAS 5G Network

Cloud Computing Health Care Industry 4.0

Artificial Intelligence

https://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjmvNOnzIXXAhVFQLwKHcuuCh0QjRwIBw&url=https://techcrunch.com/2017/01/10/omidyar-hoffman-create-27m-research-fund-for-ai-in-the-public-interest/&psig=AOvVaw2PxIlpzuI6ZvvZ8kabemXt&ust=1508808623277068


WE ARE READY ASMPT STRATEGIES

23


Key Strategies for Sustainable Growth & Profitability

Gain

Market Share

Invest in

New Growth Areas

Strategic

M&A

Continue To Fine-tune Organization Structure & Business Strategies

- Wire Bonder - Die Bonder - Lead frames - SMT

- CIS - Advanced Packaging - Automotive - Power management

- Mini LED - Micro LED


Strategic Transformation at ASMPT

Shifted from purely organic growth to pursuing both

organic growth plus M&A

Moved from 100% vertical integration to increased

external manufacturing/outsourcing and flexible workforce

Pursue robotics and smart manufacturing to

enhance productivity

Engage leading customers in development of new

cutting-edge solutions

Focus on Innovation to create higher values for

customers

Reorganized into three business segments with full P&L

accountability

Top line

TAM

Profitability

(Structural)

Productivity

Bottom line

All 3 segments broke

new records in 2017

Top line

Time to market

Top line

Bottom line


Continue To Build Business On An Extensive Customer Base

China 49.2%

Europe 15.2%

Malaysia 7.1%

Americas 5.9%

Taiwan 5.7%

Thailand 4.1%

Korea 4.0%

Philippines 2.9%

Japan 2.5%

Others 3.4%

No single customer accounted for more than 10% of the Group’s revenue

Top 5 customers collectively accounted for 17.5% of the Group’s 2017 sales revenue

Top 20 customers include world’s leading IDMs, Tier 1 OSAT, major OSATs in China, key LED players,

major camera module makers, top EMS providers, and leading automotive component suppliers

Among the top 20 customers of the Group, 3 were from SMT Solutions segment, and 3 were key

customers from both Back-end business and SMT Solutions segment

2017 Revenue Contribution from Top 5 Customers 2017 Geographical Distribution of Revenue

18.8% 17.5%

2016 2017


R&D Commitment Makes Us a Preferred Partner of Choice

2017 R&D

expenditure

US$ 184 million

9.3% of

equipment sales

Laser dicing & grooving SMT

0

20

40

60

80

100

120

140

160

180

200

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

US

D m

illi

on

R&D expenses

USD1,217 million invested in R&D

Package Interconnection Optics precision engineering Vibration control

9.3%


Pursue Robotics/Smart Manufacturing to Enhance Productivity

Automation/Robots Deployed

At ASMPT Actual production cell at ASM Technology Huizhou


23 Key Customer Engagements

in Advanced Packaging

(currently) covering:

Foundries/IDMs/Major

OSATs/Substrate Suppliers

(Either In Technical Qualification,

Preparation for HVM mode or HVM

mode)

NUCLEUS(FO WLP & PLP – Pick & Place)

ORCAS(Fan-out Molding)FIREBIRD

(TCB)

SIPLACE CA

(SiP Pick & Place)

SUNBIRD(WLP Test & Pack)

Laser 1205(Singulation)

Most comprehensive and unparalleled AP product portfolio

Strategically engaging in key processes w/ good growth

Investing Ahead of the Curve Bearing Fruits


New Target Market for ASMPT -- Memory

Wire Bonding System (NAND)

LASER Grooving & Dicing (thin wafer)

TCB (high bandwidth memory)

WLFO / PLFO


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

ASMPT Recognized as TOP 100 Global Tech Leaders


OUTLOOK

32


20.6%

21.0%

20.6%

22.2%

4.3%

10.0%

7.1%

4.0%

7.0%

12.0%

7.8%

7.5%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

SIA/WSTS, Nov-17

SemiconductorIntelligence, Dec-17

VLSI, Dec-17

Gartner, Jan-18

Latest 2018 forecast Previous 2018 forecast 2017

Industry Growth Forecast (2017-2018)

2013 2014 2015 2016 2017F 2018F

VLSI Assembly &Packaging Equipment

(Jan-18)-22% 27% -18% 13% 21% 18%

SEMI Assembly &Packaging Equipment

(Dec-17)-26% 33% -18% 20% 26%

-30%

-20%

-10%

0%

10%

20%

30%

40%

Semiconductor Industry Forecast Global Assembly & Packaging Equipment Market


Semiconductor Shipments Forecast to Exceed 1 Trillion Devices in 2018

Source: IC Insights, January 2018


Outlook

Customers are generally optimistic about the business environment in 1H 2018

Anticipate Group Booking in Q1 2018 to rebound strongly over Q4 2017

Booking of BE equipment segment expected to take the lead

Anticipate Group Billing in Q1 2018 to achieve YoY growth in the range of a high single digit to a

low double digit percent

All 3 business segments are anticipated to deliver positive YoY growth rate

Expect demand for CIS continue be strong

Expect LED business to rebound in 2018

Anticipate Automotive & Industrial Electronics markets to continue to drive SMT business

Broad based market drivers spurring strong growth of the semiconductor industry

With our strategic transformation and investments, ASMPT is ready to capture the growth

opportunities brought about by the new Data Centric era


ASMPT Sustainable Competitive Advantages

Multiple product growth drivers (and a strong leader in a few of these drivers

including CIS/AA, LED, Automotive, TCB)

Diversified product portfolio addressing multiple applications markets

Unique and comprehensive product portfolio in Advanced Packaging

Broad and diverse customer base

Breadth and depth of enabling technologies

Investing ahead of the curve and bearing fruits

Strong and extensive marketing/support network

Size, scale and strong balance sheet & financial resources

Steadfast execution of strategies

Keep reinventing itself


37

2017

FINANCIAL RESULTS


2017 Group Financial Highlights

2017 2H 2017 Q4 2017

YoY HoH YoY QoQ YoY

Bookings 24.7% 15.6% 18.1% 13.6% 5.5%

Billings 23.0% 14.1% 21.0% 17.3% 20.1%

Gross Margin 264bps 50bps 143bps 139bps 167bps

Operating Profits 54.9% 6.4% 33.7% 46.9% 23.8%

Profit After Tax 94.4% 11.1% 37.6% 47.5% 19.8%

Net Profit Margin 586bps 399bps 170bps 617bps 2bps

40.2%

16.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2013 2014 2015 2016 2017

Gross Margin % Net Profit Margin %

Margins (%)


2017 Segment Results - Back-End Equipment Business

47.9%

25.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2013 2014 2015 2016 2017

Gross Margin % Segment Profit Margin %

Margins (%)

2017 2H 2017 Q4 2017

YoY HoH YoY QoQ YoY

Bookings 20.0% 27.4% 6.5% 10.4% 5.6%

Billings 19.5% 4.7% 6.3% 13.1% 13.1%


Segment Profit 45.8% 11.5% 15.3% 29.0% 25.3%

Segment Profit

Margin 453bps 184bps 187bps 485bps 210bps


2017 Segment Results - Materials Business

Margins (%)

2017 2H 2017 Q4 2017

YoY HoH YoY QoQ YoY

Bookings 13.5% 17.9% 2.9% 3.1% 11.0%

Billings 14.5% 3.1% 12.8% 12.3% 8.1%


Segment Profit 24.7% 27.9% 33.0% 83.7% 82.0%

Segment Profit


Exclude: Goodwill

Impairment

Adjusted Segment

Profit 11.4% 2.4% 4.9% 34.8% 28.3%

Adjusted Segment

Profit Margin 206bps 5bps 131bps 205bps 301bps

13.6%

6.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2013 2014 2015 2016 2017



2017 Segment Results - SMT Solutions Business

Margins (%)

2017 2H 2017 Q4 2017

YoY HoH YoY QoQ YoY

Bookings 35.4% 1.9% 43.0% 19.4% 29.5%

Billings 30.9% 49.0% 44.6% 22.7% 33.5%


Segment Profit 87.4% 71.4% 80.5% 64.3% 17.7%

Segment Profit


38.9%

16.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2013 2014 2015 2016 2017



Return of Capital to Shareholders

Share Buyback Program

Amount exercised up to 26 Jan 2018:

HKD452.7m, 1.03% of shares outstanding

Cash Dividend Policy

Sustainable and gradually increasing

35

80 100

80

120 50

130

40

110

130

85

210

140

190

250

2013 2014 2015 2016 2017

Interim (HK cents) Final (HK cents)

Dividend Per Share (HK cents)

* Per Year-to-date share repurchase and proposed DPS of HKD1.30

939

528

349

104

260

521

926

487

1,288

632

-

200

400

600

800

1,000

1,200

1,400

2013 2014 2015 2016 2017 1H 2018*

HK

D m

Dividend paid Share buyback

Cumulative cash returned: HKD4.1bn


Capital Investment (US$ m)

437

0

500

1000

1500

2000

2013 2014 2015 2016 2017

Free Cash Flow (HK$ m)

45 57 72

55 82

101

117

61

19

0

25

50

75

100

125

150

Free Cash Flow and Capital Investment

136

19


27.4%

0%

5%

10%

15%

20%

25%

30%

2013 2014 2015 2016 2017

36.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2013 2014 2015 2016 2017

Return On Invested Capital (ROIC) Return On Equity (ROE)

Financial Metrics


A/R

0

1,000

2,000

3,000

4,000

5,000

6,000

2013 2014 2015 2016 2017

HK

D m

illio

ns

Inventory

0

1,000

2,000

3,000

4,000

5,000

6,000

2013 2014 2015 2016 2017

HK

D m

illio

ns

0

2,000

4,000

6,000

8,000

10,000

12,000

2013 2014 2015 2016 2017

HK

D m

illio

ns

Working Capital

2013 2014 2015 2016 2017

Cash Conversion Cycle (Days)

Working Capital Management


46

AWARDS & RECOGNITION


Recent Awards & Recognition

Technology Achievement Grand Award of HKIA 2017

(for the third time)

Federation of HK Industries

Hong Kong Outstanding Enterprises 2017

HK Economic Digest

Directors of the Year Awards 2017

Hong Kong Institute of Directors

2017 All Stars of the Semiconductor Industry

VLSI Research


Recent Awards & Recognition

Ranked among Top 5 of the 10 BEST Chip Making Equipment Suppliers

Ranked among Top 3 of Assembly Equipment

Ranked among Top 4 of Test Equipment

Ranked among Top 10 of Best Managed HK Companies

Ranked among Top 10 of Best at Investor Relations

2015 Hong Kong Awards for Industries: Technology Achievement Grand Award

2016-17 Corporate Governance Asia – Best Investor Relations Company (HK)

2017 Corporate Governance Asia – Best CEO (Investor Relations)

Factory of the Year 2016 Award (for SMT) by Produktion/AT Kearney


VLSI Awards 2017

2017 annual results announcement - asm pacific€¦ · asm pacific technology © 2018 page 2...

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