1 21 June 2012
SNS SECURITIES SMALL & MIDCAP SEMINAR,
21 JUNE 2012
2 21 June 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 21 June 2012
AGENDA
I. Company Overview
II. Market
III. Strategy
IV. Financial Review
V. Summary
4 21 June 2012
I. COMPANY OVERVIEW
5 21 June 2012
I. 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; 1,618 employees worldwide. HQ in Duiven, the Netherlands
Corporate Profile
• 2011 revenue and net income of € 326.9 and € 26.7 million
• Cash at 3/31/12: € 93.5 million
• Total debt at 3/31/12: € 23.1 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 21 June 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
I. BESI PRODUCT POSITIONING
7 21 June 2012
I. 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
8 21 June 2012
0
50
100
150
200
250
300
350
400
2003 2004 2005 2006 2007 2008 2009 2010 2011
Re
ve
nu
e (
€ m
illio
n)
I. 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 DC die bonding
systems transferred to Malaysia
Dutch tooling & Hungarian
die bonding transferred
Initial
shipments
of Esec
2100 from
Malaysia
Expanding
Asian
capacity in
‘12/’13
€ 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
Esec 2100
transfer
completed
€ 8.5 million
cost savings
plan
initiated
9 21 June 2012
Customers End Products End Use
I. CUSTOMER ECOSYSTEM
• Blue chip customer base, top 10 customers represent 44.7% of 2011 revenue
• Leading IDMs and Asian Subcontractors. 41%/59% split in 2011
• Long term relationships, some exceeding 45 years
10 21 June 2012
Computer, PCs50%
Tablets & Wireless Devices
22%
Auto13%
Industrial10%
LED
3%
Service2%
2008
I. PRODUCT SHIFT TO ADVANCED PACKAGING
END USER APPLICATIONS
Computer, PCs21%
Tablets &
Wireless Devices
35%
Auto
17%
Industrial10%
LED
5%
Service12%
2011
Source: 2011 Company Estimates
• Tablets and
wireless devices
now represent
35% of estimated
end user revenue
• Automotive has
also grown
significantly in
recent years
• Service/spare
parts has grown
to 12%. Less
cyclical revenue
stream
11 21 June 2012
II. MARKET
12 21 June 2012
2,9
2,1
4,5
4,24,0
4,4
4,8
4,3
5,0
-26,2% -28,2%
120,5%
-7,8% -5,3%
11,7%7,4%
-9,2%
15,6%
0
1
2
3
4
5
6
2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Assembly Equipment Market Size (Apr 2012 VLSI) YoY Growth Rate (Apr 2012 VLSI)
CAGR
‘11-’16: 3.6%
II. ASSEMBLY EQUIPMENT MARKET FORECAST
• 2011 assembly market revised growth revised downwards by VLSI to -7.8%
• 2012 looks much better than initial forecasts. -5% vs. initial forecast of -21%
Source: VLSI April 2012
13 21 June 2012
(In US$ millions)
2011
Market Size
2011
Market
Share
2010
Market
Share
2009
Market
Share
2008
Market
Share
Competition
Company
Position
Die Attach 1,015.2 32% 29% 29% 27%
Die Bonding 749.7 33% 28% 27% N/A ASM-PT, Shinkawa,
Panasonic, Renesas, K/S
#1
Multi Module N/A N/A N/A N/A N/A Panasonic #1
Flip Chip 207.7 29% 33% 32% N/A Panasonic, ASM-PT #1
Die Sorting 57.8 30% 26% 11% N/A Muhlbauer, ASM-PT #2
Packaging 668.0 12% 10% 13% 12%
Molding 407.2 15% 9% 13% 13% Towa, ASM-PT, Yamada, Dai
Ichi Seiko
#2
T&F 113.9 11% 19% 17% 12% ASM-PT, Gallant #2
Saw/Laser Singulation 138.2 4% 4% 8% 13% Hanmi, Rocco #3
Plating 25.9 92% 90% 98% 38% AGM, Technic #1
Total Addressable Mkt 1,700 27% 24% 27% 21% ASM-PT, Panasonic #1
Total Assembly Mkt 4,192 14% 14% 11% 12% ASM-PT, K/S #3
• Gained market share in 2011 particularly in molding, die sorting and die bonding products
• 27% addressable market share. Well positioned in highest growth areas
• Accuracy, precision and speed distinguishes Besi vs. competition, particularly for mainstream market
Source: VLSI January 2012
II. BESI COMPETITIVE POSITION
14 21 June 2012
II. 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 energy 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:
Media Tablets,
Smart phones,
Digital set top
boxes, Autos, Mems
15 21 June 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
II. 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
16 21 June 2012
II. 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
17 21 June 2012
III. STRATEGY
18 21 June 2012
III. 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
19 21 June 2012
III. STRUCTURAL TRANSFORMATION CONTINUES
2011 2012 2013
Key Operational Objectives
ES 2100 production transfer to Malaysia
ES 2009 production transfer to Malaysia
50% MY/100% China capacity expansion
12% HC reduction plan
• Keys: transfer of production and personnel to Asia. Increased efficiency of euro operations
• Asian production transfer on schedule • 32% YOY increase in Malaysian shipments in 2011. 2x increase in direct shipments • Transfer of ES 2100 production from Switzerland to Malaysia completed in 2011
• 12% headcount reduction plan initiated October 2011: € 8.5 million savings targeted. On
hold given Q1 order ramp
• € 60 million quarterly break even revenue target bettered in Q1-12
20 21 June 2012
III. AQUISITION STRATEGY
1993 1995 1997 2000 2002 2005 2010
• € 50 million packaging company has become € 327 million assembly
equipment supplier
• 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
21 21 June 2012
IV. FINANCIAL REVIEW
22 21 June 2012
IV. 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
23 21 June 2012
47.7 48.1
55.0
69.3
65.5
61.8
76.6
87.5
93.5
46.8
49.4 49.9
46.4 45.9
16.1
27.0 24.8
23.1
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
(euro
in m
illio
ns)
Cash Debt
IV. LIQUIDITY TRENDS
Net Cash 0.9 (1.3) 5.1 22.9 19.6 45.7 49.6 62.7 70.4
• Net cash position has grown to
€ 70.4 million from € 19.6
million at year end 2009
• Significant increase in
profitability
• Redemption and share
conversion of 5.5% convertible
notes in Q2 2011
• Improved inventory
management
• Includes € 20.2 million for
share repurchases and cash
dividends in 2011
• € 1.92 per share relative to
share price of € 5.70 at end of
Q1-12
• Strong balance sheet supports
future organic growth and
acquisition strategy
24 21 June 2012
V. SUMMARY
25 21 June 2012
V. SUMMARY
• Leading semi assembly equipment supplier with #1 or #2 positions in fastest
growing segments (smart phones/tablets). Gaining share
• Structural transformation continues. Scalability of business model seen in
recent industry cycle
• Solid profit in 2011 in challenging environment. Shareholder value enhanced
through € 20.2 million share repurchases and dividends
• Strong liquidity. € 70.4 million net cash at 3/31/12 (€ 1.92 per share)
• Business outlook for 2012 improving. 50% sequential revenue growth and
substantial profit improvement forecast for Q2-12
• Advanced packaging presence, smart phone/tablet growth and Asian
production transfer offer significant upside potential
• Attractive stock market valuation relative to peers
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