Opportunity Day 2019 1 April 2019 Prompong Chaikul C O N F I D E N - - PowerPoint PPT Presentation

C O N F I D E N T I A L P R O P R I E T A R Y

Opportunity Day 2019

1 April 2019 Prompong Chaikul

C O N F I D E N T I A L P R O P R I E T A R Y

Forward-Looking Statement Disclaimer

All information and other statements contained in this presentation, other than statements of historical fact, constitute forward-looking statements within the meaning of Securities and Exchange Commission Thailand. These forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could affect our future results and cause actual results and events to differ materially from our historical and expected results and those expressed or implied in these forward-looking statements. Our historical financial information, and the risks and other important factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition, are contained in our filings with the Securities and Exchange Commission Thailand. We undertake no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after this presentation.

Disclaimer

C O N F I D E N T I A L P R O P R I E T A R Y

• Company Overview
• Business Strategy
• Financial Outlook
• Summary

Agenda

C O N F I D E N T I A L P R O P R I E T A R Y

Company Overview

C O N F I D E N T I A L P R O P R I E T A R Y

COMPANY OVERVIEW

Full Turn Key

1995

Founded in

(The Stock Exchange

• f Thailand)

Listed in 2009 Located in : Bang Pa-In Industrial Estate Building Spaces:

SQM SQM

Cleanroom Spaces: Number of Employees:

C O N F I D E N T I A L P R O P R I E T A R Y

AFFILIATES AND STRATEGIC PARTNERSHIP

• Location: Meiningen, Germany
• Pre-production for Optics Products
• Location: Montreal, Canada
• Design House for Advanced Consumer
• Location: San Jose, USA
• CM Partner for US Domestic Manufac.
• Location: Osaka, Japan
• Supply Chain / EMS Trading Partner

STARS USA San Jose, USA

Sales Agents Offices

Germany Israel China Singapore Australia

• Location: Melbourne, Australia
• Innovation and Commercialization Partner

STARS Corporate

HQ Thailand

Japan

C O N F I D E N T I A L P R O P R I E T A R Y

Our Location

77 km 59 min

C O N F I D E N T I A L P R O P R I E T A R Y

OUR VALUE CHAIN & SERVICES

Manufacturing Services Quality Supply Chain Management Engineering

C O N F I D E N T I A L P R O P R I E T A R Y

Business Portfolio

C O N F I D E N T I A L P R O P R I E T A R Y

Business Portfolio

Integrated Circuit (IC)

(Wafer Dicing & Adv. Pkg)

SIP

Fiber Optics PCBA & Box Build

C O N F I D E N T I A L P R O P R I E T A R Y

Sales Contribution by Industry

Contribution of Top 3 Industries

80%

2017

37% 23% 19% 8% 8% 3% 1% 1%

1,790 MB

67%

27% 13% 22% 18% 10% 7%

2018 1,718 MB

1% 1%

Smart Phone IoT Consumer Data Center Communication Automotive Medical Energy Industrial

C O N F I D E N T I A L P R O P R I E T A R Y

IC Packaging

Integrated Circuit (IC)

(Wafer Dicing & Adv. Pkg)

SIP

2018 Sale: 1,163 MB Applications:-

• Smartphones
• Communication
• Sensors
• Automotive
• IOT
• Consumer

TPMS – Tire Pressure Monitoring System Air Bag Sensors Air Flow Sensor - Ventilator Power Management LED / Display Driver Asset Tracking Security & Authentication

Diced Wafer MEMS Sensors SoC

Products / Applications Examples:

Standard IC PKG

2019F Sale: 1,362 MB

C O N F I D E N T I A L P R O P R I E T A R Y

PCBA and Box Build

PCBA & Box Build

2018 Sale: 146 MB Applications:-

• Consumers
• Medical
• IOT
• Industrial
• Automotive
• Data Center
• Communication
• Energy

Video Camera Muscle Stimulator Bio-Analytical System Smart Home / IOT

Battery Smart Whiteboard GPS Tracker Inverter Motor Sensor Smart Home Muscle Stimulator Ultrasonic Washer

RFID Reader / IOT Module EV Motor / Inverter

Products / Applications Examples:

Medical Devices

2019F Sale: 321 MB

C O N F I D E N T I A L P R O P R I E T A R Y

Fiber Optics

Fiber Optics

2018 Sale: 400 MB Applications:-

• Communication
• Medical
• Data Center
• Automotive

LiDAR Active Optical Cables

Ultra Narrow Linewidth Laser Optical Adaptor and Extender

SR4 Transceivers LiDAR Illuminator Transceivers VDO Transceivers

Laser for Bio-Analytic System 3D Sensing Short Reach Data Transmission Long Reach Data Transmission

Products / Applications Examples:

2019F Sale: 724 MB

C O N F I D E N T I A L P R O P R I E T A R Y

VCSEL for Solid State LIDAR

LIDAR – Light Detection and Ranging VCSEL - Vertical-cavity surface-emitting laser

VCSEL for Solid State LIDAR Long Range LIDAR Unit

C O N F I D E N T I A L P R O P R I E T A R Y

LiDAR Imaging Example

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Strategy

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Growth Strategy

• 1. Increase revenues in markets other than Smartphone

markets – (ie. Automotive, Data Center/Comm., Medical, etc.)

Targets: 40% Sales YoY, 20% Gross Profit

C O N F I D E N T I A L P R O P R I E T A R Y

Sales Contribution by Industry

Contribution of Top 3 Industries

80%

2017

37% 23% 19% 8% 8% 3% 1% 1%

1,790 MB

67%

27% 13% 22% 18% 10% 7%

2018 1,718 MB

1% 1%

21% 15% 17% 26% 7% 7% 4.3%

2019F 2,407 MB

1% 2%

64%

Smart Phone IoT Consumer Data Center Communication Automotive Medical Energy Industrial

C O N F I D E N T I A L P R O P R I E T A R Y

Growth Strategy

• 1. Increase revenues in markets other than Smartphone

markets – (ie. Automotive, Data Center/Comm., Medical, etc.)

• 2. Build Technology Capability and Portfolio for IC packages

Targets: 40% Sales YoY, 20% Gross Profit

C O N F I D E N T I A L P R O P R I E T A R Y

2017 2018

New Package Qualification

3 New packages for year 2017 20+ New packages

C O N F I D E N T I A L P R O P R I E T A R Y

Growth Strategy

• 1. Increase revenues in markets other than Smartphone

markets – (ie. Automotive, Data Center/Comm, Medical, etc.)

• 2. Build Technology Capability and Portfolio for IC packages
• 3. NPI Focus – Effective Sample Build for New Products
• 4. Diversify Customers and Portfolio
• Expand Customer Base – ie. China, Taiwan, EU, etc.

Targets: 40% Sales YoY, 20% Gross Profit

C O N F I D E N T I A L P R O P R I E T A R Y

Ramp up Plan

Optical Transceiver

• > Telecom.

Fiber Attach of Active Optical Cables

• > Data Center

PCBA

• > Automotive

Connected Thermostat

• > IOT

2018

Sports GPS Tracker

• > Adv. Consumer

Q1 Q2

Smart Whiteboard

• > Industrial / Adv.

Consumer

Q2 Q3 Q4

2019

Flexible Printed Batteries

• > IOT

Q1

IC Packages

• > Automotive
• PCBA/Box Build
• Fiber Optics
• IC Packaging

Illuminator for LiDAR and 3D Sensing

• > Automotive and
• Adv. Consumer

Q4

Tin-Plated Packages

• > Many applications

LiDAR Sensor

• > Automotive

Q3

PCBA / BB

• > Medical Devices

C O N F I D E N T I A L P R O P R I E T A R Y

Growth Strategy

• 1. Increase revenues in markets other than Smartphone

markets – (ie. Automotive, Data Center/Comm., Medical, etc.)

• 2. Build Technology Capability and Portfolio for IC packages
• 3. NPI Focus – Effective Sample Build for New Products
• 4. Diversify Customers and Portfolio
• Expand Customer Base – ie. China, Taiwan, EU, etc.
• 5. Enhance Technical CAPABILITY and Constructive TRAINING
• 6. Focus on Higher Efficiency and Accelerate Cost Saving

Targets: 40% Sales YoY, 20% Gross Profit

C O N F I D E N T I A L P R O P R I E T A R Y

Awards - 2018

รางวัลผู้บริหารดีเด่นด้านบุคลากร ประเภทโรงงานควบคุม โดยกระทรวงพลังงาน ลดการใช้พลังงานลงได้ 34.8% ระหว่างปี 2015-2017 ประเภทการจัดการพลังงาน โดยกระทรวงอุตสาหกรรม

Thailand Energy Award : Executive 2018 The Prime Minister’s Industry Award 2018

17 projects with average 10% energy saving in 5 yrs (2014-2018)

Microchip : Best Assembly Supplier for 4 consecutive Quarters

Metrics:- Cost, Quality, Delivery, Services

C O N F I D E N T I A L P R O P R I E T A R Y

Financial Outlook

C O N F I D E N T I A L P R O P R I E T A R Y

Sales by BU – 2018 Summary

Sales 1,790 1,718 2,407 Optics : Growth 90% Box Build : Growth 120% IC :

• Over-inventory
• Die Shortage
• Capacity Constraints in

some PKGs

57% 13% 30%

GP 192 283 497

2018

2017 2018 2019F Optics 211 400 724 Box Build 66 146 321 IC 1,494 1,163 1,362

• 500

1,000 1,500 2,000 2,500 3,000 Sales (MB)

83%

4%

12%

68%

9%

23% 57% 13% 30%

C O N F I D E N T I A L P R O P R I E T A R Y

2017 2018 2019F Optics 211 400 724 Box Build 66 146 321 IC 1,494 1,163 1,362

• 500

1,000 1,500 2,000 2,500 3,000 Sales (MB)

83%

4%

12%

68%

9%

23% 57% 13% 30%

Sales by BU (2019F)

Sales 1,790 1,718 2,407 GP 192 283 497 Optics : Growth >80% Box Build : Growth >100% IC : Growth >10%

• Committed Demand
• Upside Not Included

40%

YoY Growth

Optics : Growth 90% Box Build : Growth 120% IC :

• Over-inventory
• Die Shortage
• Capacity Constraints in

some PKGs

2019 2018

C O N F I D E N T I A L P R O P R I E T A R Y

1.1% 2.7% 7.1% 10.7% 16.5%

• 1.6%
• 11.1%

Operating Performance

SALES GP

• 376
• 120

104 198 248 192 283 497

• 600
• 400
• 200

200 400 600

2012 2013 2014 2015 2016 2017 2018 2019F MB 3,384 7,337 9,045 7,370 3,468 1,790 1,718 2,407

• 2,000

4,000 6,000 8,000 10,000

2012 2013 2014 2015 2016 2017 2018 2019F MB HDD Others

47% Growth

C O N F I D E N T I A L P R O P R I E T A R Y

1.1% 2.7% 7.1% 10.7% 16.5%

• 1.6%
• 11.1%

Operating Performance

SALES GP

• 376
• 120

104 198 248 192 283 497

• 600
• 400
• 200

200 400 600

2012 2013 2014 2015 2016 2017 2018 2019F MB 3,384 7,337 9,045 7,370 3,468 1,790 1,718 2,407

• 2,000

4,000 6,000 8,000 10,000

2012 2013 2014 2015 2016 2017 2018 2019F MB HDD Others

75% Growth

20.7%

C O N F I D E N T I A L P R O P R I E T A R Y

Dividend Payment Opportunity

BOD Approved to compensate all deficits To be submitted to AGM (29/04/19) Dividend Policy Up to 40%

C O N F I D E N T I A L P R O P R I E T A R Y

Summary

C O N F I D E N T I A L P R O P R I E T A R Y

Summary – Key Highlights

• 2019F Targets:
• Sales YoY Growth :

40%

• Gross Profit Margin: 20%
• Net Profit Margin:

Higher

• More Diversified Portfolio and Balanced Growth

✓ Industry ✓ Customer Base ✓ Customers’ Product Portfolio

• Clearing Deficits in 2019
• Opportunity for Dividend Payment
• More Opportunities ahead…

C O N F I D E N T I A L P R O P R I E T A R Y

World-Class Facility and Clean Room Setup

Class 100k to 1k, upgradable and expandable

Advanced Equipment

Hi-Speed SMT, Hi-Precision Die Attach, Wire Bonding Stealth Laser Dicing

Experienced Engineering & Production Team

With experienced team to support NPI and ensure timely release

I-EA-T Free zone & BOI

Material management with zero duty and zero VAT

Financially Trustable with Strong Management Team

Listed in SET (Stock Exchange of Thailand)

Robust Supply Chain

Global supply chain with low cost region focus, excellent warehousing and logistics management

Thank You