2018 Q3 Results Announcement - ASM Pacific€¦ · Automotive 3 high growth markets accounted for 48% of group revenue in first 9M 2018 SMT Solutions 38.5% Back-end Equipment 49.4%

2018 Q3 Results

Announcement

November 1, 2018

page 2ASM 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.

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The ONLY Back-end Equipment Supplier 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


CORPORATE

OVERVIEW

4


A World’s Technology & Market Leader

Q3 2018 LTM Group Revenue(CAGR 2008-Q3 2018 LTM 13.7 %) 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 48% of group revenue in first 9M

2018

SMT

Solutions

38.5%

Back-end

Equipment

49.4%

Materials

12.1%

US$2.43B

Q3 2018 LTM: October 1, 2017 – September 30, 2018


ASMPT Global Presence

USA

Canada

Mexico

Costa RIca

Brazil

UK

The

Netherlands

Germany

(Munich)

Spain

Morocco

FranceItaly

Sweden

Malta

Czech Republic

Romania

Hungary

Austria Poland

Singapore

Malaysia

Hong Kong

China

Japan

Korea

Taiwan

Philippines

Russia

India

Thailand

Indonesia

Porto

Business Center / R&D /

Manufacturing Site

R&D centers

worldwideglobal R&D staff

patents on key leading

edge technologies

12manufacturing

facilities

10> 1,100> 2,000

Germany

(Regensburg)

USA

(Boston)

Added 4 R&D Centers this year in Taoyuan, Regensburg, Porto, and Boston

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

Hong Kong

Extension of Malaysia plant

ready for operation by 2019

Yishun

Johor BahruWeymouth Beuningen

Munich

Longgang (龙岗) Fuyong (福永) Chengdu (成都)Huizhou (惠州)

Taoyuan

Regensburg Boston

Porto


Three Business Segments With Leading Market PositionsWorldwide Market Position & Share

~8.7%(2017)

~25%(2017)

~22%(2017)

Assembly & Packaging

Equipment Market

SMT Equipment MarketSMT

Solutions

Back-end

Equipment

Leadframe MarketMaterials

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


2018 Q3/9M Highlights

9


1,8

86

-

500

1,000

1,500

2,000

2,500

9M 13 9M 14 9M 15 9M 16 9M 17 9M 18

Billings (US$ m) Bookings (US$ m)

9M 17

9M 18

2,1

00

-

500

1,000

1,500

2,000

2,500

9M 13 9M 14 9M 15 9M 16 9M 17 9M 18

Record 9-Month Group Bookings & Billings

YoY Growth: +13.9%YoY Growth: +11.2% New

Record!

New

Record!


Q3/9M 2018 Group Financial Highlights

Q3 2018 9M 2018

Amount YoY Amount YoY

Bookings (USD) 618.6m 7.7% 2.1b 13.9%

Billings (USD) 658.3m 1.1% 1.9b 11.2%

Gross Margin 37.8% 283bps 39.7% 88bps

EBIT (HKD) 818.8m 25.3% 2.7b 2.7%^

Net Profit (HKD) 602.1m 30.2% 2.0b 6.6%^

Net Profit Margin 11.7% 523bps 13.5% 257bps^

New Record

^Excludes adj. of liability component of CB

Highest in Q3


Q3 Bookings Q3 Billings

Amount

(US$m)

YoY Amount

(US$m)

YoY

Group 618.6 7.7% 658.3 1.1%

Back-end Equipment 263.9 5.8% 302.6 5.4%

Materials 53.9 20.8% 76.9 4.1%

SMT Solutions300.8 17.1% 278.8 3.9%

Strong Q3 Bookings led by SMT/Back-end Equipment

New Record

Highest in Q3


First 9M Bookings First 9M Billings

Amount

(US$m)

YoY Amount

(US$m)

YoY

Group 2,100.5 13.9% 1,885.6 11.2%

Back-end Equipment1,024.8 13.8% 947.9 11.4%

Materials 204.9 11.4% 227.9 9.2%

SMT Solutions870.8 22.3% 709.8 11.6%

Strong 9M 2018 Bookings/Billings

New Record


Major Drivers for Q3 2018 Bookings/Billings

IC /

Discrete

Automotive

IndustrialDiscrete

SemiconductorsConsumer

Power

ManagementIndustrial

Back-end SMT Solutions

Automotive

China

Smartphones


9M 2018 Segments Highlights

9M 2018

Back-end

Equipment SegmentMaterials Segment

SMT Solutions

Segment

9M 2018 YoY 9M 2018 YoY 9M 2018 YoY

Bookings (USD) 1,024.8m 13.8% 204.9m 11.4% 870.8m 22.3%

Billings (USD) 947.9m 11.4% 227.9m 9.2% 709.8m 11.6%

Gross Margin 46.6% 112bps 12.4% 152bps 39.2% 52bps

Segment Profit (HKD) 1,845.8m 5.7% 110.4m 8.6% 975.9m 7.9%

Segment Profit

Margin24.8% 133bps 6.2% 121bps 17.5% 59bps

New Record


Impacts of Trade War – Insignificant So Far

Direct impact: <0.5% of Group Billing

Indirect impact:

Export oriented customers in China: getting more cautious

Domestic oriented customers in China: continue to expand

SEA customers: Increase orders to ASMPT

Prolonged trade war would increase market uncertainties


1,227

-

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09

2H09

1H10

2H10

1H11

2H11

1H12

2H12

1H13

2H13

1H14

2H14

1H15

2H15

1H16

2H16

1H17

2H17

1H18

ASMPT Has Entered a High Growth Period

1H18 Rev vs 1H08

3.3x

Group Half Yearly Billings(US$ m)


OUTLOOK

18


Outlook for Q4

The Group: on track to set new booking and billing records for full year 2018

All 3 business segments: expected to set billing records for full year 2018

SMT solutions segment billing ~ US$1 B

Group billing: US$ 550 ~ US$ 620 million

SMT solutions segment: expected to achieve both QoQ and YoY growth

Back-end Equipment: sequential decline

Materials: sequential decline

Group booking: double digit percentage decline from Q3 18


Semiconductor Revenue Growth Forecast 2019

7.0%

5.2%

5.0%

4.0%

4.0%

Gartner,Jul-18

WSTS,Aug-18

CowanLRA, Aug-

18

IC Insights,Mar-18

HISMarkit,Jul-18

80,000

85,000

90,000

95,000

100,000

105,000

110,000

115,000

2017 2018 2019 2020 2021 2022

in U

S$'B

World GDP

Expected Growth in Major Economies

Supporting Strong Demand

Source: OECD, Real GDP long-term forecast (indicator) Oct 18

Economic Growth Drives Demand for Semiconductors


Demand for Semiconductor Devices Remains Strong

Source: IC Insights, January 2018


Source: SEMI, 2018

New Drivers in Data Centric Era Spurring Semiconductor Demands


Growth Drivers

23


Application Diversification Driving AP Growth

Growth Drivers – Advanced Packaging

Memory(eMMC) PMIC

Mobile Devices

ArtificialIntelligence

TSVMemory

High Bandwidth Memory

Application Processor

IoT SiP

Ap

plic

atio

ns

CAGR (2017- 2023)

Embedded Die (ED)

Fan-out (FO)

Through Silicon Via (TSV)

Advanced Packaging

Types

~22%

~15%

~29%


NUCLEUS/ NOVA

Plus Fan Out2

ORCAS

SUNBIRD

Laser

CA

PVD1

ECD1

ASMPT is Covering All Interconnection Technologies

Source: Prismark Wafer Starts, 2017

Wire Bonding

Die Bonding

Wire Bond Flip Chip Fan Out 3D TSVTotal Semi.

Wafers

Flip Chip/

NOVA Plus/

AFC Plus2

TCB

PVD1

ECD1

TCB

Laser

PVD1

ECD1

1 NEXX Product2 AMICRA Product


Collect

TransmitAnalyse

Store

IIOT

Camera

3D Sensing

Sensor

5G

LiFiWiFi

Data Analytics

Big Data

Centre

Memory

AI

Silicon Photonics

Advanced Packaging

CloudComputing

IOT

LIDAR

TPU

Display

TCB

LASER Grooving

WLFO

TCB

Advanced Packaging

WLFO

WB

Active Alignment

CIS

LASER Dicing

Silicon

Photonics

TCB

PLFOWB

PrecisionDie Attach

Precision

Die Attach

AR

VR

Micro LED

Mini LED

PLFO

HPC

New Drivers in Data Centric Era Spurring Semiconductor DemandsData is the New Oil!


Growth Drivers – Data CentresSi-Photonics is Key Enabling Technology for High Speed Data Transfer within and between Data Centres

Data Center of Google in Eemshaven, Netherlands

Photonics is the enabling technology for 100G / 400G data communication within data centers.


Growth Drivers – Smartphone Innovations & 5G

Year

2000 2008 2016 2018 2019 2020 2021

VR / AR

Folded Camera

Triple Camera

Dual CameraHD+AF Camera

Drone

Driver monitor system

Featured

phone

Smartphone / Smart Device

3D Sensing

Smart Home

Wide FOV

Fixed Focus Camera

Pokemon

Face recognition

Depth Camera

Tele PhotoLow Light 120° FOVBokeh

Autonomous driving

Multi Camera for Car

https://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=https://blog.vodafone.co.uk/2014/10/21/apple-iphone-6-plus-reviews-roundup&psig=AFQjCNHbiERNRqdx74n_JPuN0tTa0UnuGA&ust=1499238732775301

https://www.google.com.hk/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjUmaTugJnbAhWEfbwKHcGyCQsQjRx6BAgBEAU&url=https://www.juegostudio.com/augmented-reality-company.html&psig=AOvVaw3AK6fF7hqoEchxSZZm9kkd&ust=1527067387904105

https://www.google.com.hk/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiIkdWchpnbAhWJiLwKHdgZCpkQjRx6BAgBEAU&url=http://image-sensors-world.blogspot.com/2017/01/vivo-announces-smartphone-with-20mp-8mp.html&psig=AOvVaw0duWscvvwaSsjrQOEOcEm3&ust=1527069197410957


Growth Drivers – Mini/Micro LED Displays

LCD / OLED

MicroLED (Full Colour)

LCD TV / OLED

MiniLED (Local Dimming)

LCD TV / OLED

MiniLED (Full Colour)

Video Wall

MiniLED (Full Colour)

Without Local Dimming

WithLocal Dimming

Wearables

Smartphones | Tablet

Mobile Gadget

Small – Mid Size

Displays Backlight

Local Dimming

Large Displays with

True RGB color

Extra Large Display

Walls with True RGB

color


Growth Drivers – Automotive

Autopilot LiDAR HeadlampDaytime Running

Lights (DRLS)Electronic

Vehicles


Growth Drivers – Power Management

Automotive / Electric Vehicles Communication Equipment

Enterprise Systems IndustrialPersonal

Electronics

0

5

10

15

20

25

30

2017 2018 2019 2020 2021 2022 2023

Ma

rke

t Siz

e (

B U

SD

)

Global Power Semiconductor Market

CAGR: ~13%

Source: Marketresearchfuture, Oct 2018


Growth Drivers – IoT

Data Center Cloud Computing

CPU / GPU

MEMS & Sensor 5G Networking


Customers

ASMPT

Targets

Access to leading technologies & accelerate penetration into new growth markets

Access to ASMPT’s resources leading to accelerated growth

Best of both worlds: Access to good technologies now backed by a strong company

Growth Drivers – Strategic M&A


Pursue Sustainable Growth & Profitability

GAINMARKETSHARE

INVEST INNEW GROWTH AREAS

STRATEGICM&A

Wire bonding

Die bonding

Lead Frames

SMT

CMOS Image Sensor

Automotive

Power Management

Advanced Packaging

Data Communication

Micro / Mini LED

SMT Placement

SMT Printing

LASER Grooving / Dicing

MIS

AMICRA

NEXX

Continue to Fine-Tune Organization Structure & Business Strategies

Div

ide

nd

s

Share Buyback

Sustainable and Gradually Increasing Dividends

Shareholder Value Creation


35

2018 Q3

FINANCIAL RESULTS


Continue To Build Business On An Extensive Customer Base

China50.2%

Europe15.5%

Malaysia7.2%

Americas6.7%

Taiwan4.4%

Thailand3.7%

Korea3.1%

Japan2.1%

Philippines1.9%

India1.0%

Others4.2%

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

Top 5 customers collectively accounted for 19.0% of the Group’s 9M 2018 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, 7 were from SMT Solutions segment, and 4 were key

customers from both Back-end business and SMT Solutions segment

9M 2018 Revenue Contribution from Top 5 Customers9M 2018 Geographical Distribution of Revenue

17.5%19.0%

2017 9M 2018


Mobility, Comm & IT, Optoelectronics

and Automotive % of Group Revenue

52%48%

2017 9M 2018

ASMPT Revenue Breakdown by Application Markets (9M 2018)


Q3/9M 2018 Group Financial Highlights

Q3 2018 9M 2018

Amount YoY Amount YoY

Bookings (USD) 618.6m 7.7% 2.1b 13.9%

Billings (USD) 658.3m 1.1% 1.9b 11.2%

Gross Margin 37.8% 283bps 39.7% 88bps

EBIT (HKD) 818.8m 25.3% 2.7b 2.7%^

Net Profit (HKD) 602.1m 30.2% 2.0b 6.6%^

Net Profit Margin 11.7% 523bps 13.5% 257bps^

New Record

^Excludes adj. of liability component of CB

Highest in Q3


Gross Margin(%)

Q3/9M 2018 Group Highlights

39.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1H 13 2H 13 1H 14 2H 14 1H 15 2H 15 1H 16 2H 16 1H 17 2H 17 9M 18

1H 16 1H 17

658

0

100

200

300

400

500

600

700

800

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Quarterly Group Billings(US$ m)

YoY Growth: +1.1%

QoQ Growth: -2.0%

Quarterly Group Bookings(US$ m)

Quarterly Group Backlog(US$ m)

619

-

100

200

300

400

500

600

700

800

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

Q116

Q216

Q316

Q416

Q117

Q217

Q317

Q417

Q118

Q218

Q318

770

-

100

200

300

400

500

600

700

800

900

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

Q215

Q315

Q415

Q116

Q216

Q316

Q416

Q117

Q217

Q317

Q417

Q118

Q218

Q318

YoY Growth: +7.7%

QoQ Growth: -15.0%

QoQ Growth: -4.8%

YoY Growth: +33.1%


Q3 2018 YoY QoQ 9M 2018 YoY

Bookings (USD) 263.9m 5.8% 25.5% 1,024.8m 13.8%

Billings (USD) 302.6m 5.4% 16.6% 947.9m 11.4%

Gross Margin 43.5% 471bps 726bps 46.6% 112bps

Segment Profit (HKD) 481.8m 19.1% 44.1% 1,845.8m 5.7%

Segment Profit Margin 20.3% 616bps 999bps 24.8% 133bps

Q3/9M 2018 Segment Results – Back-End Equipment Business

New Record

Highest in Q3


Yearly Billings(US$ m)

Gross Margin(%)

0%

10%

20%

30%

40%

50%

60%

2013 2014 2015 2016 2017 9M 18

YoY Growth: +11.4%

857 948

1,199

-

200

400

600

800

1,000

1,200

1,400

2013 2014 2015 2016 2017 9M 18 LTM

9M 17 9M 18

303

-

50

100

150

200

250

300

350

400

450

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Quarterly Billings(US$ m) YoY Growth: +5.4%

QoQ Growth: -16.6%

Q3/9M 2018 Segment Results – Back-End Equipment Business

Segment Profit Margin(%)

New

Record!

0%

5%

10%

15%

20%

25%

30%

35%

2013 2014 2015 2016 2017 9M 18

46.6%

24.8%



Bookings (USD) 53.9m 20.8% 30.4% 204.9m 11.4%

Billings (USD) 76.9m 4.1% 1.0% 227.9m 9.2%


Segment Profit (HKD) 26.3m 43.1% 41.4% 110.4m 8.6%


Q3/9M 2018 Segment Results – Materials Business

New Record

Highest in Q3



YoY Growth: +9.2%

12.4%

0%

5%

10%

15%

20%

2013 2014 2015 2016 2017 9M 18

Gross Margin(%)

210 228

293

-

50

100

150

200

250

300

350

2013 2014 2015 2016 2017 9M 18 LTM

9M 179M 18

Quarterly Billings(US$ m)

77

-

10

20

30

40

50

60

70

80

90

100

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q3/9M 2018 Segment Results – Materials Business

New

Record!


6.2%

0%

5%

10%

15%

2013 2014 2015 2016 2017 9M 18

YoY Growth: +4.1%

QoQ Growth: +1.0%



Bookings (USD) 300.8m 17.1% 1.6% 870.8m 22.3%

Billings (USD) 278.8m 3.9% 19.8% 709.8m 11.6%


Segment Profit (HKD) 435.7m 13.6% 28.3% 975.9m 7.9%


Q3/9M 2018 Segment Results – SMT Solutions Business

New Record


39.2%

0%

10%

20%

30%

40%

50%

2013 2014 2015 2016 2017 9M 18


Gross Margin(%)

YoY Growth: +11.6%

640 710

935

-

100

200

300

400

500

600

700

800

900

1,000

2013 2014 2015 2016 2017 9M 18 LTM

9M 179M 18

YoY Growth: -3.9%

QoQ Growth: +19.8%

Quarterly Billings(US$ m)

279

-

50

100

150

200

250

300

350

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q3/9M 2018 Segment Results – SMT Solutions Business

New

Record!


17.5%

0%

5%

10%

15%

20%

2013 2014 2015 2016 2017 9M 18


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

2017 & 2018 “Triple Crown” with RANKED 1st/10 BEST/BEST Suppliers Awards

from VLSIresearch

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 2018


Documents

2018 Q3 Results Announcement - ASM Pacific€¦ · Automotive 3 high growth markets accounted for 48% of group revenue in first 9M 2018 SMT Solutions 38.5% Back-end Equipment 49.4%