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1 October 2012
INVESTOR PRESENTATION
Q3-2012 QUARTERLY RESULTS
2 October 2012
SAFE HARBOR STATEMENT
This presentation contains statements about management's future expectations, plans and prospects of our business that
constitute forward-looking statements, which are found in various places throughout the press release, including, but not
limited to, statements relating to expectations of orders, net sales, product shipments, backlog, expenses, timing of
purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use
of words such as “anticipate”, “estimate”, “expect”, “can”, “intend”, “believes”, “may”, “plan”, “predict”, “project”, “forecast”,
“will”, “would”, and similar expressions are intended to identify forward looking statements, although not all forward looking
statements contain these identifying words. The financial guidance set forth under the heading “Outlook” constitute forward
looking statements. While these forward looking statements represent our judgments and expectations concerning the
development of our business, a number of risks, uncertainties and other important factors could cause actual developments
and results to differ materially from those contained in forward looking statements, including our inability to maintain
continued demand for our products; the impact on our business of potential disruptions to European economies from euro
zone sovereign credit issues; failure of anticipated orders to materialize or postponement or cancellation of orders,
generally without charges; the volatility in the demand for semiconductors and our products and services; failure to
adequately decrease costs and expenses as revenues decline, loss of significant customers, lengthening of the sales cycle,
incurring additional restructuring charges in the future, acts of terrorism and violence; risks, such as changes in trade
regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and
foreign manufacturing operations; potential instability in foreign capital markets; the risk of failure to successfully manage
our diverse operations; those additional risk factors set forth in Besi's annual report for the year ended December 31,
2011 and other key factors that could adversely affect our businesses and financial performance contained in our filings and
reports, including our statutory consolidated statements. We are under no obligation to (and expressly disclaim any such
obligation to) update or alter our forward-looking statements whether as a result of new information, future events or
otherwise.
3 October 2012
AGENDA
I. Company Overview
II. Market
III. Strategy
IV. Financial Review
V. Outlook & Summary
4 October 2012
I. COMPANY OVERVIEW
5 October 2012
COMPANY OVERVIEW
• Leading assembly equipment supplier with #1 and #2 positions in key products. 27% addressable market share
• Broad portfolio: die attach, packaging, plating, wire bond
• Strategic positioning in wafer level and substrate packaging
• Global manufacturing operations in 7 countries; 1,615 employees worldwide. HQ in Duiven, the Netherlands
Corporate Profile
• 2011 revenue and net income of € 326.9 and € 26.7 million
• Cash at 9/30/12: € 89.8 million
• Total debt at 9/30/12: € 30.6 million Financial Highlights
• 2009 acquisition, restructuring and Asian production transfer have transformed company and earnings potential
• Advanced packaging, smart phone/tablet growth and Asian production transfer offer significant upside potential
• Stock market valuation at significant discount to peers
Investment Considerations
6 October 2012
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
0
50
100
150
200
250
300
350
400
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Gro
ss M
arg
in
Re
ve
nu
e (
€ m
illio
n)
Revenue Gross Margin
CORPORATE TRANSFORMATION
Restructuring
Asian Production Transfer
Dragon I
complete:
€ 6 million
cost savings
Dragon II
complete:
€ 15 million
cost savings
Die Attach Acquisitions
Record Revenue:
€ 351 million
Record Profit:
€ 47 million
Standard packaging and certain die
bonding systems transferred to
Malaysia
Dutch tooling &
Hungarian die bonding
transferred
DB 2100 transferred to
Malaysia
Asia
capacity
expansion
completed
€ 14 million spent to build, expand and equip Malaysian system and
Chinese tooling operations
Asian headcount increased from 34% in ‘06 to 51% in ‘11
Cost
savings
plan
initiated
13%
Headcount
reduction;
Plating unit
restructuring
DB 2009
transfer to
Malaysia
initiated
7 October 2012
• Market cap € 195 million: 37.8 million shares x € 5.15 price (October 23)
• Shares listed on NYSE Euronext Amsterdam (BESI) and NASDAQ OTCQX
International (BESIY). 2011 average daily volume of 132,079 shares
• Trading at significant discount to industry multiples:
Besi (a) Peers (b, c) Industry (c, d)
TTM P/S 0.7x 1.2x 1.9x
TTM EV/EBITDA 3.7x 6.1x 7.8x
2012E P/S 0.7x 1.1x 1.6x
2012E EV/EBITDA 2.9x 6.2x 8.1x
STOCK PRICE INFORMATION
Source: a) Besi: Canaccord Genuity, SNS Securities research & ABN Amro b) Peers: ASMPT, Disco Corp, Mühlbauer, Tokyo Seimitsu, Shinkawa, Suess Microtec and K&S c) Reuters & MS estimates d) Industry: Reuters semi equipment universe
8 October 2012
BESI EQUIPMENT PORTFOLIO
Die Attach
• Die Bonding
- 2100 xP
- 2009 series
- 2100 hS
- 2100 sD
• Component
Packaging
- 2200 evo
• Flip Chip - 8800 Quantum
- 8800 Chameo
- "Smart Line"
- 2100FC
Packaging & Plating Wire Bonding
• Die Sorting
- DS 9000E
- CS 1250
- DS 11000
• 3100
• 3100
Smart Card
• 3200 Smart
Card
• Molding
- AMS series
- AMS Foil
- AMS WLM
• Trim & Form
- Compact series
- Power series
- Compact Line
XHD
• Singulation
- FSL
• Plating
- Leadframe
- Solar
- Film & foil
New
New
New
In Development
• Common die attach platform
• Common packaging platform
New
New
New
9 October 2012
Dicing
Back-end Semiconductor Assembly Process
Die Attach Wire Bond Packaging Plating
Leadframe Assembly
Substrate
Wire Bond Assembly
Substrate
Flip Chip Assembly
Wafer Level Packaging
Flip Chip Assembly
Wire Bond
Die Bond
FC Die Bond
FC Die Bond
Molding
Molding
Molding
Trim & Form
Singulation
Singulation
Singulation
Plating
Ball Grid Array
Ball Grid Array
Die Sort
Die Sort
Die Sort
Die Attach Packaging Ball Attach
BESI PRODUCT POSITIONING
10 October 2012
GLOBAL OPERATIONS
as of 30 September 2012
Europe/N.A. Asia
Revenue (MMs) € 54.2 24.9% € 163.2 75.1%
Headcount 761 47.1% 854 52.9%
• Development activities in Europe and USA
• Increasing production and sales & service
activities in Asia
Sales Office
Production Site
Sales & Production Site
* R&D Site
Leshan
Chengdu Shanghai
Korea
Taiwan
Philippines Malaysia
Singapore*
Salem* Suzhou
Radfeld, (Austria) Cham,
(Switzerland)
Duiven & Drunen,
(The Netherlands)
Chandler
Shenzhen
11 October 2012
Customers End Products End Use
CUSTOMER ECOSYSTEM
• Blue chip customer base, top 10 customers represent 45% of 2011 revenue
• Leading IDMs and Asian Subcontractors. 41%/59% split in 2011
• Equipment utilized to produce chips for leading fabless companies: Qualcomm,
Broadcom, MediaTek
• Long term relationships, some exceeding 45 years
12 October 2012
Computer, PCs50%
Tablets &
Wireless Devices
22%
Auto13%
Industrial10%
LED3%
Service2%
2008
PRODUCT SHIFT TO ADVANCED PACKAGING
END USER APPLICATIONS
Computer, PCs21%
Tablets & Wireless Devices
35%
Auto17%
Industrial
10%
LED5%
Service12%
2011
Source: 2011 Company Estimates
• Tablets and wireless
devices now equal
35% of end user
revenue
• Automotive has also
increased
significantly in recent
years
• Service/spare parts
have grown to 12%.
Less cyclical revenue
stream
13 October 2012
II. MARKET
14 October 2012
ASSEMBLY EQUIPMENT MARKET COMPOSITION
• 52% assembly market 2011 represented by die attach and wire bonding equipment
• Besi focus: die attach and packaging segments
Die Attach
60%
Packaging
39%
Plating
1%
Flip Chip
12%
Die Sorting
3%
Singulation
8%
Presses
9%
Molds
15%
Lead Trim &
Form
7% Die Bonding
44%
Assembly Equipment Market *
(2011: $4.2 billion) Besi Addressable Market *
(2011: $1.7 billion)
Wire Bonding
25%
Die Attach
27%
Packaging
18%
Plating
1%
Other Assembly
(Inspection, Dicing)
29%
* Source: VLSI January 2012
Plating
2%
15 October 2012
ASSEMBLY EQUIPMENT MARKET FORECAST
Source: VLSI October 2012
• VLSI estimates total assembly market of $4.2 billion in 2011
• 2012/2013 estimates uncertain given market volatility
2.9
2.1
4.5
4.24.0 4.0
-26.2% -28.2%
120.5%
-7.8%-3.7% -1.0%
0
1
2
3
4
5
6
2008 2009 2010 2011 2012E 2013E
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Assembly Equipment Market Size YoY Growth Rate
16 October 2012
IC PRICING AND ASSEMBLY MARKET TRENDS
Assembly Capacity Utilization & IC Pricing
Book to Bill Ratio
16
• Softening seen at end of Q2 accelerated in Q3
• Assembly equipment market fell much more than overall semi equipment market in Q3
• Some mixed signals:
• Assembly capacity utilization trends ok
• Semi pricing seems stable for now…although at much lower levels than 2011
Source: VLSI September 2012 Source: Semi September 2012
1.12
0.81
1.40
0.540.50
0.60
0.70
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
Oct 10
Dec 10
Feb 11
Apr 11
Jun 11
Aug 11
Oct 11
Dec 11
Feb 12
Apr 12
Jun 12
Aug 12
SEMI Equipment Market(3 month moving average)
Assembly
Total
1.16
1.18
1.20
1.22
1.24
1.26
1.28
1.30
1.32
1.34
1.36
1.38
1.40
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2010 JAN
APR JUL OCT 2011 JAN
APR JUL OCT 2012 JAN
APR JUL
3 M
on
th A
vg
Pri
cin
g (
$)
% C
ap
acit
y U
tili
zati
on
Assembly Utilization IC ASP
17 October 2012
27% 24% 27%
0%
10%
20%
30%
40%
2009 2010 2011
Addressable Market Share
13% 10%
12%
0%
10%
20%
30%
40%
2009 2010 2011
Packaging Market Share
29% 29% 32%
0%
10%
20%
30%
40%
2009 2010 2011
Die Attach Market Share
11% 14% 14%
0%
10%
20%
30%
40%
2009 2010 2011
Assembly Market Share
BESI COMPETITIVE POSITION
Mkt Size: $1,015MM Mkt Size: $668MM
*Source: VLSI Jan 2012
Mkt Size: $1,700MM Mkt Size: $4,192MM
Competition: ASM-PT, K/S, Shinkawa, Tokyo
Semitsu, Disco
Company Position: #3
• #3 leading assembly supplier
• #2 in addressable market with
27% share
• Leader in die attach
• Gained market share in 2011:
• Die attach (die bonding and
sorting)
• Packaging (molding)
• Leader in growth areas:
• Multi module die attach
• Flip Chip
• Ultra thin molding
• Accuracy, precision and
speed distinguishes Besi vs.
competition, particularly for
mainstream market
Competition: ASM-PT, Shinkawa, Panasonic,
Muhlbauer
Company Position: #1 Die Bonding, #1 Multi Module,
#1 Flip Chip,
#2 Die Sorting
Competition: Towa, ASM-PT, Yamada, Dai Ichi
Seiko, Gallant, Hanmi, Rocco
Company Position: #2 Molding, #2 T&F
#3 Singulation
Competition: ASM-PT, Disco, Shinkawa, Towa,
Hanmi, Hitachi
Company Position: #2
18 October 2012
III. STRATEGY
19 October 2012
BUSINESS STRATEGY
Vision
Technology-led, mainstream supplier of substrate and wafer level
packaging solutions
How to win
Market
positioning Fast growing, leading edge market segments
World class assembly
equipment manufacturer
Actions
Leverage "One Besi" Strategy
Enter selected
markets with
leading technology
Maximize product
value with transfer
into mainstream
Exit when
technology becomes
“commoditized”
(II) Accelerate revenue growth
(III) Reduce structural costs
(IV) Transfer production to Asia
(V) Acquire complementary companies
(I) Maintain leading edge technology
20 October 2012
PRODUCT STRATEGY:
ADVANCED PACKAGING IS THE FUTURE
Greater Miniaturization
Greater Complexity
Increased Density
Higher Performance
Lower Power Consumption
Higher Accuracy
• High growth applications require ever smaller, denser and more complex chips with increased performance, all at lower power usage.
• <40 nanometer geometry will be the standard chip design over the next 3-5 years
• System on Chip or System in Package via substrate and wafer level packaging process is the only answer
• Besi has full range of AP systems. 2011E revenue: 70% substrate/wafer level vs. 30% leadframe
Die Attach
• Die Sorting: DS 9000
• Die Bonding: ES 2009, 2100
• Flip Chip: DC 8800 FC
• Multi Module: DC EVO 2200
Packaging
• Molding: AMS-W
• Singulation: FCL
High Growth End
User Areas:
Tablets, Smart
phones, Digital set
top boxes, Autos,
MEMS
21 October 2012
Source: Prismark
1,050 900 850 600
400 650 850 1,500
0
500
1,000
1,500
2,000
2,500
2011 2012 2013 2014 2015 2016
mill
ion
ph
on
es
Smart Phones 2011-2016
Basic Phones Smart Phones
62.5%
30.8%
76.4%
Tablets 2011 - 2014
SMART PHONE / TABLET MARKET TRENDS
• Rapid unit growth in smart
phones and tablets forecast
over next 5 years
• Estimated unit growth rates:
• Smart phones:
• 2012: 62.5%
• 2016: 3.5x
• Tablets:
• 2012: 120%
• 2014: 4x
• Significant potential revenue
growth driver
22 October 2012
SMART PHONE ILLUSTRATION
Main Components Manufacturer Country Besi Systems Utilized
Processor Samsung South Korea 8800FCQ, AMS-W, Singulation
DRAM Memory Samsung South Korea 2100sD, AMS-W, Singulation
Flash Memory Chip Samsung South Korea 2100sD, AMS-W, Singulation
Battery Samsung South Korea N/A
Power Management Dialog Germany 2100sD, 2009
Compass AKM Japan N/A
Accelerator/Gyroscope ST Micro Italy/France 2100sD
Communications
Radio Frequency Memory Intel USA 8800FCQ, Singulation
Wi-Fi/Bluetooth/GPS Broadcom USA 2200 evo, AMS-W, Singulation
Receiver/Transceiver Infineon Germany 8800FCQ, AMS-I, Singulation
PA Module Skyworks, Triquint USA
2200 evo, AMS-W, Singulation, 8800 Chameo
Video/Audio
Touch Screen Control TI USA 2100sD, AMS-W, Singulation
Audio Codec Cirrus Logic USA 2100sD, AMS-W, Singulation
LCD Display LG South Korea N/A
Touch Screen Wintek USA N/A
Camera – 5/8 megapixel/VGA LG, Foxconn, CoWell
South Korea, China 2200 evo
Besi systems are capable of assembling components representing up to 50% of smart phone content
23 October 2012
Wire Bonding
$1,067 76%
Flip Chip$337 24%
2016E
FLIP CHIP/WIRE BOND OPPORTUNITY
• Move to <40 nanometer can only be accomplished by flip chip die bonding vs. wire bonding process
• Flip chip revenue represents only 16% of total potential market of $1.3 billion (2011)
• Rapid share gain vs. wire bonding over next 5 years (9.9% CAGR delta) as per VLSI
• Growth rates could accelerate depending on adoption rates of key IDMs/subcons
Wire
Bonding$1,053 84%
Flip Chip
$208 16%
2011
CAGR 2011 – 16
Flip Chip 10.2%
Wire Bond 0.3%
Wire Bonding Flip Chip Bonding
Reduces board area by up to 95%.
Requires far less height
Higher speed electrical
performance
Greater I/O connection flexibility
More durable interconnection
method
Lower cost for high volume production,
with costs below $0.01 per connection
Flip Chip Advantages
* Source: VLSI October 2012
24 October 2012
KEY OPERATIONAL OBJECTIVES
2011 2012 2013
Key Operational Objectives
DB 2100 production transfer to Malaysia
DB 2009 production transfer to Malaysia
50% MY/100% China capacity expansion
Reduce European cost structure
• Asian production transfer on schedule: • 80% of YTD 2012 systems produced in Asia • Transfer of DB 2100 epoxy die bonder from Switzerland to Malaysia completed in 2011 • DB 2009 soft solder system transfer accelerated to Q1-13 from Q4-13
• October 2012 headcount reduction plan initiatives:
• Reduce European fixed headcount • Rationalize Dutch plating operations • Further integrate Die Attach operations • Align Asian production capacity with current demand • € 11 million annualized cost savings
25 October 2012
AQUISITION STRATEGY
1993 1995 1997 2000 2002 2005 2009
• € 50 million packaging company has become € 327 million assembly
equipment supplier
• Consolidating leading edge assembly technologies
• 4 acquisitions since 2000 totaling € 80 million, net have created Die Attach
leader
• Seeking technology led companies which increase advanced packaging
presence and can be incorporated into One Besi platform
Packaging Plating Leadframes Flip Chip Chip Sorting Flip Chip/
Multi Chip
Single Chip
Packaging & Plating Die Attach
26 October 2012
IV. FINANCIAL REVIEW
27 October 2012
SUMMARY FINANCIAL HIGHLIGHTS
• Financial transformation since 2008
• Scale and market presence have changed
due to Esec acquisition:
• Expanded mainstream presence
• Leveraged revenue potential
• Strategic positioning in advanced
packaging has yielded benefits:
• Enhanced top line growth
• Increased gross margins
• Solid gross margins and profits in 2011
despite downturn due to:
• Advanced packaging presence
• Ongoing Asian production transfer
• 2010 product line restructurings
• Solid liquidity base. Expanding net cash
• Dividend initiated in 2010
Year Ended December 31,
(€ millions, except share data) 2009 2010 2011
Revenue
147.9
351.1 326.9
Orders 162.5 376.5 301.1
Gross margin 28% 39% 40%
EBITDA 17.9 60.5 45.8
Pretax income 4.9 47.4 34.6
Net income 5.4 47.3 26.7
EPS (diluted) 0.16 1.25 0.73
Net margin 4% 13% 8%
Adj. net income (loss) (28.0) 41.6 27.4
Adj. EPS (diluted) (0.85) 1.11 0.75
Net Cash 19.6 22.9 62.7
Dividend per share - 0.20 0.22
28 October 2012
REVENUE/GROSS MARGIN TRENDS
56.6
89.5
100.6104.4
91.1
89.9
75.6
70.4
55.8
87.0
74.6
97.3
133.7
88.1
57.4
88.3
82.5
75.1
55.2
84.2
91.1
48.7
33.4%
38.7%
40.1% 40.2% 40.0%
41.2%
40.0%
38.5%39.4%
41.5%
40.3%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
0
20
40
60
80
100
120
140
Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12
(eu
ro in
mill
ion
s)
Revenue Orders Gross Margin
• Quarterly revenue/order patterns show
cyclicality of semiconductor business:
• Two cycles past 24 months; very volatile
• Influenced by global macro demand
• 14.3% decrease in Q3-12 sequential
revenue
• Product mix shift past 3 years to higher
margin advanced packaging systems:
• Multi module and flip chip die attach
• Ultra thin molding systems
• Influenced by smart phones, tablets and
intelligent automotive components
• Exit from lower margin wire bonding and
packaging system sales has also helped
• Gross margins remained relatively stable
despite cyclical revenue/order trends:
• Increased scalability of production model
• Product mix shift to higher margin
advanced packaging systems
• Lower unit costs due to Asian production
transfer
29 October 2012
(2.6)
15.4
19.4
3.4
1.2
11.0
14.4
4.2
10.0
15.0
9.6
8.8
4.9
0.2
4.3
-5
0
5
10
15
20
Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12
(eu
ro in
mill
ion
s)
Net Income Adjusted Net Income
NET INCOME TRENDS
• Cyclical peak earnings of € 47.3 million
reached in 2010
• Significant contribution from Esec
products/turnaround
• Restructuring benefits
• 2011 earnings declined to € 26.7 million.
Adversely affected by:
• Global macro concerns/increased
customer caution
• Increase of CHF vs. euro reduced
operating profit by € 4 million
• Increased incentive stock based comp
of € 3.1 million
• Renewed volatility in 2012:
• Significant quarterly profit swings
• Macro uncertainty causes very short
term customer purchasing patterns
• Significant leverage in operating model
• Quarterly opex have ranged between
€ 20-24 million over past 8 quarters
30 October 2012
47.7 48.1
55.0
69.3
65.5
61.8
76.6
87.5
93.5
77.3
89.8
46.8
49.4 49.9
46.4 45.9
16.1
27.0 24.8
23.1
27.9 30.6
0
10
20
30
40
50
60
70
80
90
100
Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12
(euro
in m
illio
ns)
Cash Debt
LIQUIDITY TRENDS
Net Cash 0.9 (1.3) 5.1 22.9 19.6 45.7 49.6 62.7 70.4 49.4 59.2
• Net cash position has grown to € 59.2
million from € 19.6 million at year end
2009
• Significant increase in profitability
• Redemption and share conversion of
5.5% convertible notes in Q2-11
• Improved inventory management
• € 1.57 per share relative to share price
of € 5.62 at end of Q3-12
• € 25 million spent on share
repurchases and cash dividends in
2011/2012
• Dividends initiated in 2011
• 1.5 million share buyback program
announced in October 2012
• Strong balance sheet supports future
organic growth and acquisition
strategy
31 October 2012
V. OUTLOOK & SUMMARY
32 October 2012
Q4-2012 GUIDANCE
• Customer caution continues into Q4-12
• Q4-12 sequential revenue down 25-35% vs. Q3-12
• Gross margins (ex restructuring) will range between 36-38%
• Opex declines to approximately € 22.0 million (ex restructuring)
• Capex of € 1.8 million to complete Asian capacity expansion
Revenue Gross Margin* Operating Expenses* Capex
Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4
€ 74.6 40.3% € 22.6 € 1.5
36%
-
38%
Down
25%
-
35%
Up
€ 0.3
MM
* Excluding restructuring
Down
€ 0.6
MM
33 October 2012
SUMMARY
Leading semi assembly equipment supplier with #1
or #2 positions in fast growing advanced
packaging segments
Scalability and profitability of business model greatly
enhanced
Macro uncertainty causes volatility in quarterly results
2011-2012
Solid liquidity position.
€ 59.2 million net cash at end of Q3-12
Significant upside potential.
Advanced packaging, smart phone/tablet growth,
ongoing cost reduction and Asian production
transfer
Attractive stock market valuation relative to peers
34 October 2012
FINANCIAL CALENDAR
25-Oct-12 Roadshow Frankfurt, Germany, organized by ABN AMRO Bank
14/16-Nov-12 Morgan Stanley Technology, Media & Telecom Conference,
Barcelona, Spain