* PNG FILE *
MK ELECTRON Investor Relation April - 2017
Since 1982, MKE has been developing and manufacturing key connection materials for semiconductor, such as bonding wire, solder ball, sputtering target and evaporate materials. As the only major supplier specializing in connection materials, MKE commits to serve the market continuously with dedication. * PNG FILE * CONTENTS
Ⅰ History
Ⅱ Company Info.
Ⅲ Shareholder
Ⅳ Business Area
Ⅴ Sales Status
Ⅵ MKE Highlights
Secondary Battery Ⅶ New Business (Anode Material)
Ⅷ Financial Status * ⅠPNG. HistoryFILE *
• 2016. MKE China(Kunshan) Branch was floated on ‘16 the unlisted securities Market(Dec.’16) • 2016. Constructed a new Factory in China(Apr. ‘16)
• 2015. KOREIT(The Korea Real Estate Investment & Trust Co.,Ltd) became an affiliated company(Q4. ‘15)
‘10 • 2014. Became largest shareholder owning 37.56% of KOREIT
• 2009. Started Production in China(Kunshan)
• 2001. Started on Solder Ball Business
• 1997. Registered on KOSDAQ(Korean Stock Market) ‘90 • 1986. Opened Yong-In Plant and R&D Center
• 1983. Patented Gold Bonding Wire Manufacturing Technology and initiated Gold bonding wire business.
‘80 • 1982. Established MK Electron Co.,Ltd. 3 * ⅡPNG. CompanyFILE * Info.
CEO Jin Lee
Established December, 1982
Products Gold, Copper and Silver Bonding wire, Solder Ball, Sputtering Target, EVM
Costumers IDM & Top 5 packaging assembly companies
Capital 10.9 billion(KRW)
Employees Korea : 281, China : 110
Production Sites Location (Domestic : Yongin City in Korea / Overseas : Kunshan in China) Sales Office in Taiwan
4 * ⅢPNG. ShareholderFILE *
Share info.
• Total Number of Issued Stocks : 21,807,689 (Common Stock) • Company Own Stocks : 1,203,198 (5.5%)
1,380,000 [6.3%]
T S Major Shareholder Others S R 5,251,800 13,972,691 P [24.1%] [64.1%]
1,203,198 [5.5%]
Major Shareholder & Specially related Persons
• Major Shareholder : Oceanbe Holdings • Specially related persons : Chairman Cha Jung Hun, Shin Sung Construction Company
5 * ⅣPNG. BusinessFILE * Area
Consumer product Mobile
Bonding Wire Solder Ball (Interconnection Material) (Interconnection Material)
[Gold]
[Copper] [Silver] 6 * ⅣPNG. BusinessFILE * Area
What We Do
Raw materials Raw materials
Bonding Wire Process Solder Ball Process
Refining Casting Drawing Winding Test & Insp. Alloying Ball Forming Sorting Insp.
Customized bonding wires Customized solder balls
Evaporation materials
Multiple functional types of Integrated circuits Solder paste Sputtering target 7 * ⅣPNG. BusinessFILE * Area
Bonding Wire
Market Outlook Technical Trend
▪ ‘16 YoY Estimated about 2.3% growth by length ~ ’11yr ’11 ~ ’14yr ’14yr ~ ▪ ‘17 YoY Forecasted about 2.9% growth by length Gold Wire ▪ ‘17 YoY Forecasted about -3.5% decrease in terms PC/APC Wire of Revenue, due to material changes from gold Ag Wire to non-gold
Bonding wire Length of 1gr Gold
*Sourced by Global Semiconductor Packaging Material outlook
8 * ⅣPNG. BusinessFILE * Area
Semiconductor Package Production Forecast
▪ Semiconductor Package Production Quantity : 233 Billion in 2017 263 Billion in 2020 (13.0% Growth)
▪ Flip Chip & WLP package Production Quantity : 34.4 Billion in 2017 39.7 Billion in 2020 (15.4% Growth)
▪ Flip Chip & WLP package Portion : 14.8% in 2017 15.1% in 2020
▪ Bonding Wire Package Quantity : 198 Billion in 2017 223 Billion in 2020 (12.5% Growth)
*Sourced by 2014 エレクトロニクス実装 ニューマテリアル便覧 9 * ⅣPNG. BusinessFILE * Area
Solder Ball
Market Outlook Technical Trend
Low PKG Count Pin (Using Single Die)
High PKG Counts (Using Multiple Die)
▪ ‘17 YoY Forecasted about 5.2% growth by units ▪ Reliability – High Temperature, Drop Performance due to strong growth of Flip-Chip, SIP & WLP PKG, ▪ Low Melting Temperature Solder Ball in terms of revenue estimated about 2.8% growth Solder ball Size Trend
*Sourced by Global Semiconductor Packaging Material outlook 10 * ⅤPNG. SalesFILE * Status
Global Company Based on Strong Customer Portfolio
Sales by Product(Revenue) 4.5% 4.3% 6.4%
84.5%
Gold Wire Cu Wire Ag Wire Solder Ball Others
Wire Sales by Material(Length)
▪ World Wide Key customers as mainly IDMs, Fabless,
50.7% 47.5% Assembly & Test company(more than 140 companies) ▪ Strong customer portfolio & Stable AR ▪ Export portion is 95.7% including local export. Gold Wire Cu Wire Ag Wire 11 *Yr 2016(MKE Korea) * ⅤPNG. SalesFILE * Status
Global Market Share of MKE (Yr 2016)
12 * ⅤPNG. SalesFILE * Status
Customer Recognition & Awards
TI, Supplier Recognition Award in 2016
TOSHIBA, Excellent Supplier Award in 2016
ST MICROELECTRONICS, Best Supplier Award in 2016
TI, Supplier Appreciation Award in 2014
MKE’s great honor to provide ‘Great Seal of South Korea’
for years
ASE, Excellent Supplier Award in 2011
SPIL, Outstanding Performance Award in 2010
TI, Supplier Excellence Award in 2010
TI, Supplier Appreciation Award in 2010
SAMSUNG, Best in Value Supplier Award in 2005
Amkor, Excellence in Quality in 2005 13 * ⅥPNG. MKEFILE * Highlights
Profit Improvement through New Bonding Wire
Ag wire Market & Biz Status New Alloyed Cu wire Automotive PKG
3. New Cu Wire 3,000 for Automotive 2. Prevention Oxidation 2,000 1. Cost Savings
1,000 Au Wire Pd Coated Cu Wire - Cu Wire
Silver Market(k km) 2014 2015 2016 2017 2018 2019 *Sourced by Global Semiconductor Packaging Material outlook
. No.1 among major 4 suppliers . Cu wire Pd Coated Cu wire . Mass Production : Mobile AP & LED PKG Improvement : Coating Tech for Cu Oxidation . Usage increase forecasted by WW Top . New Alloyed Cu wire for Automotive PKG Memory Companies & LED Lighting Improvement : Low Cost & High Reliability
14 * ⅥPNG. MKEFILE * Highlights
Continuous Growth of Solder Ball Biz & New Biz of Solder
Status of Solder Ball Biz Recycling
1,500
1,000 Ag
500 Sn
- . Plan of Recycling Business of Sn/Ag from 2H, 2017
Sales Volume(B Pcs) Cu Cored Solder Ball(CCSB) 2013 2014 2015 2016 2017 *Sourced by MKE Sales Records Electrical Short Prevent Electrical Short
. Expected growth of supplying to Korea Top Memory Company & their sub-con houses. . Started solder ball Biz. in China from 2H, 2016 . Good stand off property at CCSB . World Wide Customer Portfolio . Good Joint Property, Uniform SAC Composition, Uniform Thickness 15 * ⅥPNG. MKEFILE * Highlights
Continuous Growth of Solder Ball Biz & New Biz of Solder
Solder Paste & Flux Global Market Forecast for Solder Paste
[U$ 10Million]
CAGR 12.5%
. Mass Production for Semiconductor from Nov. 2016
Ultra Fine Solder Powder for Paste
* Sourced by China Electronic Material Industry Association
. Plan of Powder Business from 2017 . Expected Market Growth by Increasing SIP . Ultra Fine Solder Powder for SMT & & Automotive Automotive (Under 50~10um Size) 16 * ⅥPNG. MKEFILE * Highlights
Strong Growth of MKE China Business
Bonding Wire Market Portion of China
18.4M Km 18.9M Km 19.9M Km 19.9M Km . Continuous Growth of China Semiconductor 32% 34% 35% 37% Market (Approxi. CAGR 20%) . Most Biggest Market of Bonding Wire WW (Approxi. 37%~40%, Currently)
2012 2013 2014 2015 Others중국 외 중국China Revenue & Profit Trend(MKE China) * Sourced by Global Semiconductor Packaging Material outlook [Unit : 100Million KRW] 2,000 140 120 1,500 100 80 1,000 60
500 40 20 - - 20142014년 20152015년 20162016년 20172017년 20182018년 20192019년 20202020년
매출액Revenue 영업이익Operating Income 17 * ⅥPNG. MKEFILE * Highlights
First Listing in China Stock Market as Korean Company
18 * ⅥPNG. MKEFILE * Highlights
Share Structure of KOREIT
. MKE Share Ratio of PF : 70.27%(41.44+28.83%) . MKE Quality Share Ratio : 27.43% (70.27*(0.3408)%+3.49%) 19 * ⅦPNG. NewFILE * Business(Secondary Battery)
New Business – Anode Material for Secondary Battery High Capacity Material has being requested for Automotive and Portable IT products
Capacity of Anode Material
Synthetic graphite Natural graphite Silicon Capacity(mAh/g) 350~360 360~370 1,000~2,000 Retention Ratio High High Relatively Low * Source: Argonne National Laboratory
Silicon Type
Si-alloy Si/C Composite SiOx Capacity Retention Ratio(@300 Cy) 80% 80% 80% Initial Capacity Efficiency 90% 89% 75%
. Merits of Si-Alloy Material 1) Better Capacity Retention Ratio 2) Better Initial Capacity Efficiency 3) More better Competitive Manufacturing Cost 20 * ⅦPNG. NewFILE * Business(Secondary Battery)
Market Forecast(Small Cell Battery) Status of Business
. Small Scale Mass Production . Monthly Capa. : 1ton/mon.
. Under testing Small Cell Battery like Portable & IT
* Source : SNE Research . Mass Production plan . Y 2018 Mobile Phone : 38%, 2,700 M Cell/Yr from 2019 for Automotive . Y 2018 Tablet PC : 15%, 1,100 M Cell/Yr . Y 2018 Power Tool : 13%, 900 M Cell/Yr
. Y 2018 Note Book PC : 11%, 700 M Cell/Yr 21 * ⅧPNG. FinancialFILE * Status
Statement of Profit and Loss(Summary) [Unit : Million KRW]
Yr 2016 Yr 2015 Yr 2014
Indiv. Consol. Indiv. Consol. Indiv. Consol.
Revenue(Sales) 337,653 619,601 323,894 453,106 381,237 469,590
Gross Profit 18,348 187,527 19,351 59,997 21,860 28,633
SG&A 11,933 61,988 11,184 35,225 12,402 19,310
Operating Income 6,415 125,539 8,167 24,772 9,458 9,323
Net Income 3,180 74,507 5,562 152,222 6,198 -33,807
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