ir presentation ir...2-2. semiconductor_equipment market 11 source, gartner 2017 0 500 1000 1500...
TRANSCRIPT
Confidential and Proprietary Innovation & Culture
www.jusung.com
240 Opo-ro, Opo-eup, Gwangju-si
Gyeonggi-do, Korea
World 1st Technology
Only 1 in The World
IR Presentation
1Q 2017
Confidential and Proprietary Innovation & Culture
Disclaimer
All information regarding management performance and financial results of JUSUNG ENGINEERING (the “Company”)
during the 1Q 2017 as contained herein has been prepared on a Non-consolidated basis in accordance with
International Financial Reporting Standards (“IFRS”).
The information regarding results of 1Q 2017 has been prepared in advance, prior to being reviewed by outside
auditors, solely for the convenience of investors of the Company, and is subject to change in the process of final
reviewing by external auditors.
The information contained herein includes forward-looking statements in respect to future plans, prospects, and
performances of the Company. These forward-looking statements also refer to the Company’s performance on Non-
consolidated base, as indicated.
The aforementioned forward-looking statements are influenced by changes in the management environment and
relative events, and by their nature, these statements refer to uncertain circumstances. Consequently, due to these
uncertainties, the Company’s actual future results may differ materially from those expressed or implied by such
statements.
Please note that as the forward-looking statements contained herein are based on the current market situation and
the Company’s management direction, they are subject to change according to the changes in future market
environment and business strategy.
The information contained herein should not be utilized for any legal purposes in regards to investors’ investment
results. The Company hereby expressly disclaims any and all liability for any loss or damage resulting from the
investors’ reliance on the information contained herein.
1
Confidential and Proprietary Innovation & Culture 2
Table of Contents
1. Company Overview
2. Market Trend & Competitiveness
3. Financial Status
Confidential and Proprietary Innovation & Culture 3
1-1. Corporate Information
Corporate Data
Name of Company JUSUNG ENGINEERING Co., Ltd. (KOSDAQ 036930)
CEO & Chairman Chul Joo Hwang
Foundation 1995. 4. 13.
Business Area SEMI., DISP., Solar Cell Equipment Manufacturing
The number of Employee
450 persons (2016)
Capital 24.1Wbn
Date of Listing 1999. 12. 24.
Address of Headquarter
240, Opo-ro, Opo-eup, Gwangju-si, Gyeonggi-do
Shareholder Information
Gyeonggi-do Gwangju-si JUSUNG ENGINEERING Headquarter
TOTAL
48,249,212
Major Shareholder & Related Parties
(27.8%)
Domestic Individual & Institutional
(56.7%)
Foreign (15.5%)
CEO & Chairman
Shareholder Number of
Shares % Port
Major Shareholder & Related Parties
13,402,934 27.8%
Foreign 7,496,868 15.5%
Domestic Individual & Institutional
27,349,410 56.7%
Total 48,249,212 100.0%
Chul Joo Hwang(C. J. Hwang)
· B.S., Electrical and Computer Engineering from INHA University
· Honorary Doctorate in Engineering from INHA University
· CEO/Chairman of JUSUNG ENGINEERING
· Honorary Chairman of Korea Venture Business Association
· Member of The National Academy Engineering of Korea
· Director of Korea Institute of Science Tech. Evaluation and Planning
· Vice Chairman of Korea International Trade Association
· Member of Public Enterprise Management Committee
· Member of Gyeonggi-do Economy Policy Advisory Committee
· Director of Daegu Gyeongbuk Institute of Science and Technology
· Establishment of Korea Entrepreneurship Foundation C. J. Hwang / CEO & Chairman
[2016.12.31]
Confidential and Proprietary Innovation & Culture 4
▶ Vision ▶ Mission
▶ People & Culture
Innovate Technology!
Develop New Markets!
Make Happiness!
World’s 1 Technology
Only 1 in the World
st
1. Creative · Innovative People
Think for the First !
Work for the No.1 !
Make New Records !
2. Success-Sharing Culture
Mutual Success of
JUSUNG & Its Customer
Semiconductor, Display, Solar Cell, Technology Integration
1-2. VISION & MISSION
Confidential and Proprietary Innovation & Culture
0
1000
2000
3000
4000
5000
6000
7000
'95'96'97'98'99'00'01'02'03'04'05'06'07'08'09'10'11'12'13'14'15'16
1-3. Future Growth Engine
5
R&D Employee Ratio
USD 585.0M
Number of Patents
R&D Investment (Accumulated)
1,723 1,739 1,875 1,930
2,005
-
300
600
900
1,200
1,500
1,800
2,100
2012 2013 2014 2015 2016
Future Growth Engine = Innovative R&D
46.8%
53.2%
R&D
Total
450 [2016]
Management, Sales, etc
Confidential and Proprietary Innovation & Culture
1-4. Milestone
6
10 World’s First Products & Technology !
World’s
First I
World’s
First II
World’s
First III
World’s
First IV
World’s
First V
World’s
First VI
World’s
First VII
World’s
First VIII
World’s
First IX
World’s
First X
Original Tech. SD Tech LSP Tech TSD Tech
Semicon-ductor
Warm Wall Type
UHV-CVD
Selective
EPI SD-ALD SDP-ALD
SiC SD-CVD
Display (LCD/OLED)
TSD-ALD ALD IGZO
TFT TSD-Etcher
1995 1999 2002 2005 2006 2008 2010 2012 2015 2016
Abbreviation Technical Terms Abbreviation Technical Terms
SD Space Divided LSP Local Space Plasma
SDP Space Divided Plasma TSD Time Space Divided
Confidential and Proprietary Innovation & Culture 7
1-5. Mutual Success of JUSUNG & Its Customers
Outstanding
Contribution Award Appreciation
Plaque Best Partner Award
Best Supplier
Award Outstanding Contribution Award
◆
◆
◆
Best Supplier Award
Headquarter
Subsidiary
Local Office
Sales Agent
Mutual Success of Customers with World’s Best Technology
Appreciation Plaque
Appreciation Plaque
Confidential and Proprietary Innovation & Culture 8
Table of Contents
1. Company Overview
2. Market Trend & Competitiveness
3. Financial Status
Confidential and Proprietary Innovation & Culture 9
2-1. Our Sustainable Market
SEMICONDUCTOR
DRAM
Foundry/Logic
NAND FLASH
▶ DRAM bit growth 20-25%, driven by mobile and server
▶ Several nodes of DRAM shrink below 20nm
▶ Bit growth 35~40% per year through 2020
▶ Sustained investment to capture ~50% storage SAM
▶ Diversified demand drivers for leading-edge growth
DISPLAY CHINA
LCD
OLED
SEMICONDUCTOR
DISPLAY
▶ Shift to large-size panels, The investment move more than 10G TV Size Growth :~1.5”/year(‘13~’19) 1.5” Av Size Growth / year ~ 3 new Fab
▶ VR / AR will be a key driver for display technology roadmap
▶ China 2025 initiative targets 4X growth in China’s semi revenue
▶ Output CAPA of panel maker The annual growth of 131.9% (‘16~’20)
▶ Global OLED output CAPA in China Expansion up to 32% in 2020 (’16=6%)
▶ Extension of OLED panel application rate in Smart Phone Increase of 55% from now to 2020
▶ Rising SEMI Industry in China Investment amount $110.0M to 2018
▶ OLED becomes standard for VR capable phones and HMDs
Confidential and Proprietary Innovation & Culture 10
2-2. Semiconductor_Technology Roadmap
2013 2014 2015 2016 2017 2018 2019 2020 2021 2025 Volume
Production
22/20 nm 14/16 nm 10 nm 7 nm 5 nm 3 nm
Multiple Patterning EUV with Multiple Patterning
FinFET
New Chanel Materials, Nanowire(GAA)
Advanced Interconnect
Planar NAND
20 nm
Multiple Patterning
18 nm 18 nm
3D NAND
32L 48L 64L 96L 128L
3x Mid 2x nm 20 nm 1y nm 1z nm
Multiple Patterning EUV with Multiple Patterning DRAM
1x nm
Memory
Foundry/
Logic
…
Foundry/Logic NAND Memory DRAM
· Shift to 3D structure device(FinFET)
· New structures(nanowire)
· New materials
· Shift to 3D layer stacking
· Deposition technology for high-aspect
structure
· Shift to ALD for capacitor materials
· Possibility of partial replacement with
MRAM
▶Technology Challenges
Accelerate of DRAM tech migration & Increment 3D NAND multi-layer
Confidential and Proprietary Innovation & Culture
2-2. Semiconductor_Equipment Market
11
Source, Gartner 2017
0
500
1000
1500
2000
2500
3000
3500
2014 2015 2016 2017F 2018F 2019F
PECVD Equipment Market Forecast ALD Equipment Market Forecast 단위 : M USD 단위 : B USD
-100
100
300
500
700
900
1100
1300
1500
2014 2015 2016 2017F 2018F 2019F
Increase of demand in ALD equipment
due to DRAM tech migration & Increment 3D NAND multi-layer
Confidential and Proprietary Innovation & Culture 12
LSP Technology (Local Space Plasma)
① Interface Control
② Incubation Time Control
③ Thermal & Plasma Damage Free
④ Easy System / Process Integration
⑤ Source/Reactant Space division Injection
SDP System (Space Divided Plasma)
:Semi-Batch Type
SDP CVD, SDP ALD
TSD System (Time Space Divided)
: Single Type
TSD CVD, TSD ALD, TSD Etcher
2-2.JUSUNG LSP Technology
Confidential and Proprietary Innovation & Culture
Hidden Champion First Mover
13
Future Transistor Tech.
• Si SEG ; Elevated
Source Drain
• SiGe, SiC
• a-Si, Poly Si
• OEC
(Oxide Elimination
Chamber)
UHV-CVD & OEC
(Warm Wall Type )
LSP Technology
• High-K
• Metal
• ULTO
Defect Free Tech.
• High-K
• Metal
• SiO / SiOC / SiON
• SiN / SiBN
• Oxidation
• Nitridation
• High-K
• Metal
Defect Free Tech.
• DPT Partition Etch
• STI & Gate Etch
• Hard Mask Etch
• Poly Etch Back
• MTJ Etch
ICP Etcher SDP-CVD/ALD TSD-CVD/ALD
Defect Free Tech.
• High-K
• Metal
• SiO / SiOC / SiON
• SiN / SiBN
• Oxidation
• Nitridation
TSD-Etcher
Defect Free Tech.
• DPT Partition Etch
• STI & Gate Etch
• Hard Mask Etch
• Poly Etch Back
• MTJ Etch
SD-CVD/ALD MO-CVD/ALD
2-2. Semiconductor_JUSUNG’S Semiconductor Product
Confidential and Proprietary Innovation & Culture 14
Realizing Next-Gen. of Display via TSD-CVD/ALD
RESOLUTION
FORM FACTOR/
PERFORMANCE
SIZE
TV
PHONE
HD
>326ppi
4K
>600ppi
8K
>700ppi
TV
PHONE
40”
3.5”
55”
5”
70”
5.5”
DISPLAY
LCD OLED
Flexible OLED
Transparent OLED
TFT
a-Si
LTPS
OXIDE
OR
JUSUNG LSP Tech.
TSD CVD/ALD
(Up to 11G)
TFT(Oxide) / TFE
TFT(LTPS) / TFE / TOE
TV
PHONE
2-3. Display_Technology Roadmap
PRESENT
Rollable OLED
(8G~)
(~6G)
Confidential and Proprietary Innovation & Culture
Sustain growth of centering around Oxide & LTPS TFT
15
Display Market forecast 단위 : 억 달러
Display TFT Equipment Ratio forecast
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 2016 2017
LTPS a-Si/Oxide a-Si a-Si(G10.5)
Source,IHS Markit
2-3. Display_Equipment Market
-
200
400
600
800
1,000
1,200
1,400
1,600
2015 2016 2017 2018 2019 2020
OLED LCD
LCD CAGR -0.1%(‘15~’20) OLED CAGR 20.4%(‘15~’20)
Confidential and Proprietary Innovation & Culture
First Mover & Market Developer
16
LED
- LED
(GaN on Sapphire)
(GaN on Si)
- Power Device (GaN on Si)
(SiC)
LCD
a-Si LTPS Oxide
G.I
- SiN - SiN
- SiO
- SiN
- SiO
Active - a-Si - a-Si - IGZO
ILD - SiO
- SiN
Passiva
tion
- SiN - SiN
- SiO
2-3. Display_display & LED equipments
OLED
LTPS Oxide TSP
Barrier/
Buffer
- SiO/SiON
- SiN
- AlO/TiO
- Index matching
(SiN,SiO,SiON,TiO)
- Metal layer (ITO, ZnO, Metal Mesh)
- ILD
(SiN, SiON)
- Prevent Scratch
(AIO)
Active - a-Si
- SiO
- IGZO
- SiO
ILD - SiO
- SiN
Passivation - SiN
Encapsulation - AlO/TiO
- SiO / SiON / SiN / SiOX
Organic - HIL / HTL / EML / ETL / EIL
Confidential and Proprietary Innovation & Culture 17
Table of Contents
1. Company Overview
2. Market Trend & Competitiveness
3. Financial Status
Confidential and Proprietary Innovation & Culture
3-1. 1Q 2017 Financial Results(Non-consolidated)
18
1Q 2017 Highlights
· Sales of Display Segment were up 370% yoy through next generation (OLED) & high-definition and new-supplement investment
· Creation of investment profit through withdrawal investment company’s investment
· Through disposal of deficits and accumulated earned surplus
1Q 2017 Sales 760M, Operating profit 122M(OPM 16.1%)
▶ 1Q 2017. Sales revenue were up 42.6% yoy
▶ Record of the highest Net income in the last 5 years
▶ Achieved 16.1% OPM
· Sustain activity of cost innovation and efficiency of R&D cost
▶ Paved the way for a shareholders return policy
Account Code 1Q 2017 1Q 2016
$ % YOY $ %
Sales Revenue 76.0 100.0 42.6 53.3 100.0
COGS 45.4 59.7 48.9 30.5 57.2
Gross Profit 30.6 40.3 34.2 22.8 42.8
SG&A 18.4 24.2 16.5 15.8 29.6
Operating Income 12.2 16.1 74.3 7.0 13.1
Other income & expenses -1.9 -2.5 -2000.0 0.1 0.2
Finance income & expenses 3.1 4.1 -293.8 -1.6 -3.0
Profit before income tax 13.4 17.6 143.6 5.5 10.3
Income Before Income Tax 0.7 0.9 1300.0 0.05 0.1
Net income 12.7 16.7 133.0 5.5 10.2
(Unit : Wbn)
Confidential and Proprietary Innovation & Culture
Revenues By
Segment
Total 76.0
Revenues By
Region
Total 76.0
Backlog By
Segment
Total 50.5
Display
Revenues By
Segment
Total 41.5
3-2. Revenues by Segments & Region(1Q 2017)
19
SEMICONDUCTOR
33.2
DISPLAY
41.5
SOLAR
1.3
43.7%
1.7%
54.6%
50.7%
KOREA
38.6
CHINA
36.9
48.5%
0.8%
OTHERS
0.6
SEMICONDUCTOR
8.5
DISPLAY
38.9
SOLAR
3.1
16.9% 6.1%
77.0%
OLED
12.2
29.4%
LCD
29.3
70.6%
(Unit : Wbn)
Confidential and Proprietary Innovation & Culture
0
200
400
600
800
1000
1200
1400
1600
FY 2014 FY 2015 FY 2016 FY 2017
4Q
3Q
2Q
1Q
0
200
400
600
800
1000
1200
FY 2014 FY 2015 FY 2016 FY 2017
4Q
3Q
2Q
1Q
20
· Sustain its growth due to investment on 3D NAND new fab
and tech migration in semiconductor
∨ Tech Migration(CVD→ALD)
· Improved profit compared to yoy due to sales increase of new
equipment (SDP-CVD) and continuous cost innovation.
∨ 20%(‘15) → 51%(‘16)
SEMI
· Expect sustainable increase of demand in ALD equipment due to DRAM tech migration and increment of 3D NAND multi-layer
· YoY 130% growth due to customer’s new investment on
facility and change to OLED process in Display industry
∨ Environment changes of display industry(LCD → OLED)
· Increase of sales through diversification of OLED equipment
∨ OLED Encapsulation & TFT (LTPS & Oxide)
· Expect sales increase due to enter into china with OLED equipment
∨ Supply contract of OLED encapsulation equipment with China GVO
DISPLAY
83.2
106.0
42.2
58.1
111.8
3-3. 2017 OUTLOOK
(Unit : Wbn) (Unit : Wbn)
133.5
22.3
20.6
15.1
25.1
26.8
31.0
29.4
18.8
41.8
28.0
19.1
22.9
33.2 41.5
8.8
38.1
36.3
50.3
2.0 8.2
20.2
27.7
9.3
6.9
18.0
8.0
Confidential and Proprietary Innovation & Culture
Decreasing loan payable & improvement of debt ratio
thanks to Sales and margin recovery
(Unit : Wbn, %)
21
206.5
143.1
96.3
39.0
3-4. Interest Bearing Loan & Debt Ratio
Interest Bearing Loan Debt ratio Current ratio
183%
169%
122%
103%
65.2%
92.2%
143.8%
155.0%
0%
50%
100%
150%
200%
-
400
800
1,200
1,600
2014 2015 2016 1Q 2017
143.1
96.3
39.0
25.0
Confidential and Proprietary Innovation & Culture
World 1st Technology Only
www.jusung.com
1 in the World
22
Confidential and Proprietary Innovation & Culture 23
Table of Contents
APPENDIX
Confidential and Proprietary Innovation & Culture
Appendix 1. Income Statement(Non-consolidated)
(Unit : Wmn)
24
Accounts 1Q '16 4Q '16 1Q ‘17 QoQ (%)
YoY (%)
1Q 2017 1Q 2016 YoY (%)
Sales Revenue 53,353 100.0% 81,040 100.0% 76,037 100.0% -6.2% 42.5% 76,037 100.0% 53,353 100.0% 42.5%
Solar cell 2,690 5.0% 7,832 9.7% 1,332 1.8% -83.0% -50.5% 1,332 1.8% 2,690 5.0% -50.5%
FPD 8,840 16.6% 50,325 62.1% 41,499 54.6% -17.5% 369.4% 41,499 54.6% 8,840 16.6% 369.4%
Semiconductor 41,823 78.4% 22,883 28.2% 33,206 43.7% 45.1% -20.6% 33,206 43.7% 41,823 78.4% -20.6%
COGS 30,504 57.2% 46,937 57.9% 45,453 59.8% -3.2% 49.0% 45,453 59.8% 30,504 57.2% 49.0%
Gross Profit 22,849 42.8% 34,103 42.1% 30,584 40.2% -10.3% 33.9% 30,584 40.2% 22,849 42.8% 33.9%
SG&A 15,855 29.7% 22,275 27.5% 18,370 24.2% -17.5% 15.9% 18,370 24.2% 15,855 29.7% 15.9%
R&D Expense 8,841 16.6% 15,957 19.7% 10,768 14.2% -32.5% 21.8% 10,768 14.2% 8,841 16.6% 21.8%
Operating Income 6,994 13.1% 11,828 14.6% 12,214 16.1% 3.3% 74.6% 12,214 16.1% 6,994 13.1% 74.6%
Other Operating
Expense 56 0.1% 1,719 2.1% (1,915) -2.5% -211.4% -3519.6% (1,915) -2.5% 56 0.1% -3519.6%
Other Non-
Operating Expense (1,572) -2.9% (8,861) -11.7% 3,111 4.1% -135.1% -297.9% 3,111 4.1% (1,572) -2.9% -297.9%
Income Before
Income Tax 5,478 10.3% 4,658 5.7% 13,410 17.6% 187.9% 144.8% 13,410 17.6% 5,478 10.3% 144.8%
Income Tax
Expense 1 0.0% (7,986) -9.9% 724 1.0% -109.1% 72300.0% 724 1.0% 1 0.0% 72300.0%
Net Income 5,476 10.3% 12,644 15.6% 12,686 16.7% 0.3% 131.7% 12,686 16.7% 5,476 10.3% 131.7%
Confidential and Proprietary Innovation & Culture
Appendix 2. Balance Sheet Summary(Non-consolidated)
Accounts 1Q 2017 FY 2016 FY 2015
Current Assets 155,093 162,250 133,046
Cash and Cash Equivalent
Account Receivables-Trade
Other Current Assets
Inventories
31,119 36,255 50,789 36,930
30,974 45,232 40,408 45,636
28,964 19,106 34,134 50,842
Non-Current Assets 166,815 163,376 174,641
Investment Assets
Tangible Assets
Intangible Assets
Other Non-Current Assets
5,938 136,787 11,373 12,717
9,838 128,497 12,173 12,868
19,824 132,807 14,745 7,265
Total Assets 321,908 325,626 307,687
Current Liabilities 100,731 113,718 144,498
Account Payables -Trade
Short-term Borrowings
Current portion of Long-term debts
Other Current Liabilities
58,168 25,000
0 17,563
59,792 39,000
0 14,926
40,802 92,179 6,000 5,517
Non-Current Liabilities 63,763 65,848 48,757
Long-term Borrowings
Other Non-Current Liabilities 0
63,763 0
65,848 2,100
46,657
Total Liabilities 164,494 179,566 193,255
Capital Stock 24,125 24,125 24,125
Capital Surplus
Other Capital
Accumulated Other Comprehensive Income
Retained Earnings or Accumulated Deficit
109,008 0
11,641 12,640
146,543 0
12,927 -37,535
146,227 316
11,622 -67,858
Total Shareholders’ Equity 157,414 146,060 114,432
Total Liabilities and Total Shareholders’ Equity 321,908 325,626 307,687
25
(Unit : Wmn)