Q2 2021 EARNINGS
PRESENTATION28th July 2021
1
Disclaimer
2
The information contained in this presentation is provided for
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Some of the information used in preparing this presentation was
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contained in this presentation has not been independently verified.
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accuracy, completeness or correctness of such information or
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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
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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”,
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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
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undertake any obligation to update publicly or revise any forward-
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be or may be construed as a profit forecast.
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Key Highlights
Financial Performance
Q&A
AGENDA
3
Outlook
4
KEY HIGHLIGHTS
Strategic Focus on Long-term Profitability
Superior Operational and Fulfilment Execution
Strong Performance from Advanced Packaging
Q2 2021 Group Key Highlights
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FINANCIAL PERFORMANCE
6
Q2 2021 Group Financial ResultsRevenue Exceeded Guidance and Bookings Better than Expected
7
HK$732m
Net Profit
Revenue
US$667m
40.6%
Gross
Margin
Bookings
US$943m
Cash and Bank
DepositsBacklog
US$1.49b
1,009 943
1,952
559667
1,226
0
500
1,000
1,500
2,000
2,500
Q1 2021 Q2 2021 1H 2021
US
D’M
Bookings Revenue
Q2 / 1H 2021 Group Financial PerformanceRecord 1H Revenue and Bookings
8
Record backlog of US$1.49b
1H21 strong revenue performance driven by:
- Acceleration of CAPEX plans and expansion of capacity
investments
- Long-term secular trends (HPC, automotive electrification, 5G)
- Broad-based demand fuelled by reopening of major economies
Better than expected 1H21 Group bookings driven by:
- Automotive, Consumer and Industrial applications more than
doubling HoH
Q2 Group revenue exceeded guidance
Sequential improvement in GM – Q3 2020 to Q2 2021
528
732
1,261
-
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
Q1 2021 Q2 2021 1H 2021
HK
D’M
Net Profit 1 including share of results from Advanced Assembly Materials International Limited (AAMI), a joint-venture, commencing from the beginning of 2021
39.6%Gross
Margin 40.6% 40.1%
1
552681
1,233
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q1 2021 Q2 2021 1H 2021
HK
D’M
Segment Profit
Strong Q2 bookings for mainstream die and wire bonding tools, and
advanced packaging panel-level ECD tools
Q2 Revenue trends:
IC/D: Dominated by mainstream die and wire bonders and test
handlers
Opto: Strong demand for general lighting. More Mini LED
customers adopting HVM deployment and continued engagement
with Micro LED customers
CIS: Slight but encouraging QoQ improvement underpinned by
broad and favourable customer mix
Q2 GM improved YoY due to higher volume, capacity utilization,
increased productivity and effects from Group’s strategic initiatives
Three consecutive quarters of revenue and profit growth
Q2 / 1H 2021 Semiconductor Solutions Segment PerformanceScaled External Manufacturing Capacity to Capture Strong Demand
9
685
553
1,238
349408
756
0
200
400
600
800
1,000
1,200
1,400
Q1 2021 Q2 2021 1H 2021
US
D’M
Bookings Revenue
44.0%Gross
Margin 43.8% 43.9%
Q2 GM registered significant YoY growth due to favourable product
mix, increased volume and utilisation, and positive effects from
strategic initiatives
Q2 revenue grew QoQ for mainstream high-end placement tools
Printing tools experienced increased demand on the back of key
customer wins
Q2 revenue grew QoQ for advanced packaging tools, including
highly accurate SiP tools
Two quarters of record bookings
Sharp improvement in Q2 GM
Q2 / 1H 2021 SMT Solutions Segment PerformanceRecord Bookings
10
325390
714
211259
470
0
100
200
300
400
500
600
700
800
Q1 2021 Q2 2021 1H 2021
US
D’M
Bookings Revenue
165
314
479
-
100
200
300
400
500
600
Q1 2021 Q2 2021 1H 2021
HK
D’M
Segment Profit
32.2%Gross
Margin 35.5% 34.0%
Key partner to industry leading customersWe Serve Industry-Leading Semiconductor and Electronics Manufacturers Across the Globe
Top 5 customers accounted for only 14.4% of Group 1H 2021
revenue reflecting high degree of diversity
1H 2021 Segment Revenue Contribution
(by geography)
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Top customers include leading
companies in:
• Integrated Device Manufacturers (IDMs)
• Outsourced Semiconductor Assembly and Test
vendors (OSATs)
• High-Density Substrate
• Automotive component
• EMS
• Telecommunication and Information Technology
• LED
• Camera module
Europe12%
Americas8%
Taiwan7%
Korea5%
Thailand4%
Malaysia4%
Japan2%
Vietnam2%
Philippines1%
Singapore1%
Others1%
China53%
Key End-Market ApplicationsGrowing Demand Across Several End-Market Applications
Computers
Consumer
Communication
Industrial
Automotive
OthersPersonal Computers
Servers
Datacenters
HPC
Other Computers
TV
Wearables
Audio devices
Video devices
Gaming consoles
Other Consumers
Mobile Phones
Wired Infrastructure
Wireless Infrastructure
EV Charging
Smart Factories
Smart Offices
Other Industrial
Visual Sensors
Infotainment
LIDAR Sensors
5G communications
Entertainment
Platforms
Medical Devices
Aerospace
Others
Others (Spares)*Revenue mix is based on management’s best estimates.
**Others include revenue from spares, services or contribution and other applications that cannot be meaningfully identified.
1H 2021 Revenue Mix*
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1H 2021 Group Billing Application TrendsAll Three End Applications Witnessed Significant HoH and YoY Growth
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▪ Demand for wearables, gaming consoles, conventional fine pitch RGB displays and general lighting
driving growth
▪ Closely engaging key customers in Mini LED
▪ Continued rebound, driven by automotive electrification (in particular, Mainland China) and general
recovery of the Automotive sector
▪ Strong growth in discrete and power management applications from SEMI solutions segment
▪ Strong growth fueled by broad based demand for automation and control devices in varied application,
including smart grids and EV charging infrastructure
Automotive
Industrial
Consumer
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Strong Advanced Packaging Performance from Broadening Customer Base
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Revenue contribution crossed $1B over 3-year period
(2H18 - 1H21)
Panel-level ECD tools maintained dominant position with
tier-1 high density interconnect substrate suppliers
Strong demand for SMT SiP tools
The Group's diverse AP portfolio spans wafer-level to die-level high-accuracy placement tools and SiP placement
tools, addressing a broad range of packaging technologies (2.5D, 3D-IC, Fan-in, Fan-out Wafer-Level and SiP)
1H21 booking exceeded ~80% of FY2020’s booking
DEK Galaxy
Silicon
Interposer
FIREBIRDNUCLEUS NEXXSIPLACE TX
SeriesLaser1205
X-PU
High Bandwidth
Memory
Wafer Level Mold
Underfill (Protects Integrated Wafer)
Selected examples of our Advanced Packaging solutions
1.6
0.60.4
0.81.0
0.81.2 1.3 1.3
0.7
1.3
0.8
0.30.5
1.3
0.41.1
1.31.4
0.7 2.0
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 1H2021
Interim Dividend Final Dividend
32% 53% 61% 53% 59% 53% 36% 49% 132% 68%
Dividend policy of consistent annual dividend payout ratio of around 50% (consistent with average dividend payout ratio 2011-2020)
15
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Dividend Payout (%)
1H 21
1H 2021 DividendsYoY Increase of ~86%
Div
ide
nd
Pe
r S
ha
re
(HK
D)
Annual
Dividend
Payout
OUTLOOK
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Financial OutlookQ3 2021 Revenue Guidance Supported by Record Backlog
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Q3 2021 Revenue Outlook
USD 730m to USD 780m
2H 2021 revenue to remain strong
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FINANCIAL APPENDIX
391
287 299
575528
0
100
200
300
400
500
600
700
FY2017 FY2018 FY2019 FY2020 1H 2021
Shareholders’ Equity
(USD’M)
1,456
1,5531,494
1,7021,745
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
FY2017 FY2018 FY2019 FY2020 1H 2021
Cash and Bank Deposit
(USD’M)
Capital Expenditure
(USD’M)
Net Working Capital (USD’M),
as a percentage of sales
1,252
9411,149 1,221 1,239
56%
38%
56% 56%
0%
10%
20%
30%
40%
50%
60%
-100
100
300
500
700
900
1,100
1,300
1,500
FY2017 FY2018 FY2019 FY2020 1H 2021
19
Group Balance Sheet Highlights
Results of the Group’s former Materials Segment have been deconsolidated since 29 December 2020. Commencing first quarter of 2021, its contributions have been equity accounted for in the Group’s performance.
82104
88
50
130
20
40
60
80
100
120
FY2017 FY2018 FY2019 FY2020 1H 2021
Group Balance Sheet Highlights
241
260272
260 256
170
190
210
230
250
270
290
2017 2018 2019 2020 1H 2021(Annualised)
Cash Conversion Cycle1 (Days)
0
100
200
300
400
500
600
700
800
900
1,000
2017 2018 2019 2020 1H 2021
US
D’M
Inventory1
0
100
200
300
400
500
600
700
800
2017 2018 2019 2020 1H 2021
US
D’M
Accounts Receivable1
1 Excludes contribution from Material Segment from FY2020 onwards, which has been deconsolidated and equity accounted for since 29 December 2020.
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Q&A
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