Mycronic Ab · OMXSTO:MYCR
Mycronic Ab — Q1 2025 Earnings Presentation
30 slides from Mycronic Ab's earnings presentation, Apr 25, 2025
Slide 1: First quarter 2025
—~ =< . Wee First quarter2025
Slide 2: President and CEO
President and CEO Anders Lindqvist 2
Slide 3: Agenda
Agenda • Q1 in short • Divisional development • Financials • Sustainability • Q&A • Appendix – Market update 3
Slide 4: Q1 in short
Q1 in short Stellar first quarter • Order intake increased 25% to SEK 2,058 (1,645) million • Record net sales, increasing 27% to SEK 2,142 (1,692) million • Strongest EBIT ever, at SEK 775 (599) million • EBIT margin at 36 (35)% • Order backlog at SEK 4,617 (4,102) million • Global Technologies acq
Slide 5: Pattern Generators
Pattern Generators Share of Group’s net sales Net sales SEK 1,197 M EBIT SEK 752 M Record net sales and EBIT 56% Order intake SEK 956 M EBIT margin 63% • Photomask markets for both displays and semiconductors were stable • In January, the first order for a Prexision 8000 Evo was received • The order
Slide 6: High Flex
High Flex Very weak demand in Europe • Demand in Europe, High Flex’s largest geographical market, was very weak • High Flex took part in North America’s largest electronics manufacturing fair, APEX, where there was great interest in the division’s products • Order intake declined 12% to SEK 295 (334
Slide 7: High Volume
High Volume Strong demand in China • High Volume had good demand in the Chinese domestic market • Order intake rose 42% to a record SEK 553 (390) million • Net sales increased 6% to SEK 330 (311) million • Modus contributed SEK 9 million • Gross margin at 43 (41)% • EBIT at SEK 59 (55) million • Mod
Slide 8: Global Technologies
Global Technologies Acquisition of Hprobe • The Die Bonding business line noted a slowdown in order intake during the quarter, while the market for the PCB Test business line continued to be strong • Acquisition of Hprobe, which has developed a unique technology for high-speed magnetic testing of MR
Slide 9: Outlook 2025 revised, due to increased uncertainty
Outlook 2025 revised, due to increased uncertainty Net sales SEK 7.0-7.5 billion 9
Slide 10: Effects from tariffs
Effects from tariffs • Around 5% of Mycronic’s net sales are impacted by the high tariffs between the US and China • Around 5 to 10% of net sales are impacted by US base tariffs • Mycronic does not intend to bear the cost of the tariffs • Mycronic is furthermore indirectly affected by tariffs, thoug
Slide 11: CFO and Sr VP Corporate Development
CFO and Sr VP Corporate Development Pierre Brorsson 11
Slide 12: Group net sales and EBIT margin per quarter
Group net sales and EBIT margin per quarter MSEK % 2500 40 35 • Net sales increased 27% vs Q1 2024, to the new record 2000 30 level of SEK 2,142 million 1500 25 • Highest ever aftermarket revenue, at SEK 531 million 20 • EBIT margin at 36% 1000 15 10 500 5 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2025
Slide 13: Group net sales and EBIT margin rolling 12 months
Group net sales and EBIT margin rolling 12 months MSEK % 8000 50 7000 45 • Net sales R12 amounted to SEK 7,507 million 40 6000 35 • EBIT margin R12 at 29% 5000 30 • Aftermarket revenue R12 at SEK 1,869 million 4000 25 • 25% of net sales 3000 20 • Increasing quarter-on-quarter since Q1 2021 15 2000
Slide 14: Group Q1 EBIT bridge
Group Q1 EBIT bridge MSEK +29% 75 -52 -41 -21 775 -46 261 599 EBIT Q1 Volume Gross R&D M&S G&A Other EBIT Q1 2024 effect margin 2025 effect % of Sales 2024 35% 58% -10% -8% -5% 1% % of Sales 2025 61% -10% -8% -5% -1% 36% 14
Slide 15: Divisional Q1 EBIT contribution
Divisional Q1 EBIT contribution MSEK 36% 209 24 4 775 35% -15 -46 599 Q1 2024 Pattern Generators High Flex High Volume Global Technologies Group functions Q1 2025 15
Slide 16: Lower cash flow due to working capital increase
Lower cash flow due to working capital increase MSEK Q1 2025 Q1 2024 Cash flow from operations • Strong cash flow from operations before change in working capital 686 610 • Increase in working capital primarily driven by lower Change in working capital -444 127 advance payments from customers and hi
Slide 17: President and CEO
President and CEO Anders Lindqvist 17
Slide 18: Sustainability
Sustainability • An initiative was launched during the quarter to strengthen efforts to ensure good environmental and social conditions in the supply chain • Mycronic also completed its Sustainability Report for 2024, which broadly follows the CSRD’s ESRS reporting standards • To optimize and align
Slide 19: Q&A
Q&A 19
Slide 20: Appendix: Q1 2025 Market update
APPENDIX Q1 2025 Market update
Slide 21: Preliminary outcome 2024
Preliminary outcome 2024 Market summary and updates • Global electronics industry 4.9% to 2,549 BnUSD1) • Semiconductors 19.2% to 628 BnUSD1) • Optical components -7.8% to 11.7 BnUSD3) • Printed circuit boards and substrates 5.8% to 73.6 BnUSD4 • Display market 13.0% to 134 BnUSD5) • Display photoma
Slide 22: Forecasts 2025
Forecasts 2025 Market summary and updates • Note that all forecasts on the following pages were made before the tariff announcements • Global electronics industry 7.4% to reach 2,738 BnUSD1) • Semiconductor industry 13.3% to reach 712 BnUSD1) • Optical components 24.1% to reach 14.5 BnUSD2) • Printe
Slide 23: Electronics industry systems
Electronics industry systems Yearly development by industry segment • Growth of 4.9% for 2024, to reach 2,549 USD billion 3 500 BnUSD, with strongest development in • Computers 16.7% 3 000 • Aerospace/Defense 7.0% • Medical 4.4% 2 500 • Growth of 7.4% forecast for 2025, to reach 2 000 2,738 BnUSD, w
Slide 24: Semiconductors
Semiconductors Quarterly development USD billion 250 • Estimated 19.2% growth in 2024 to 225 reach 628 BnUSD 200 • Forecast 13.3% growth in 2025 to reach 712 BnUSD 175 150 • 2024 to 2029 CAGR growth forecast at 7.7% to reach 908 BnUSD 125 100 75 50 25 0 2020 2021 2022 2023 2024 2025F 2026F 2027F 202
Slide 25: SMT and Dispensing
SMT and Dispensing Market update SMT assembly equipment* • In 2023, the market size was 2,250 MUSD1) • The SMT assembly equipment market declined by 7.7% in 2024 to USD 2,077 million. Markets in China and Southeast Asia showed growth while markets in North and South America, Japan and Europe display
Slide 26: Optical components for data/telecom
Optical components for data/telecom Long-term growth in key die bonding market driven by mega trends Optical components for data/telecom (BUSD) Healthy data/telecom long-term growth 13.0% 26.8 • Optical components production is the main 25.3 23.4 driver for die/lens attach and other adjacent process
Slide 27: Pattern Generators: Display panel market
Pattern Generators Display panel market BUSD Display panel revenue BUSD OLED display panel revenue 250 100 3.0% 5.5% 200 80 69 70 150 155 155 64 142 146 57 59 150 134 60 53 118 43 100 40 50 20 0 0 2023 2024 2025F 2026F 2027F 2028F 2029F 2023 2024 2025F 2026F 2027F 2028F 2029F • Display market showed
Slide 28: Pattern Generators: Photomask market
Pattern Generators Photomask market expected to have continued to develop positively in 2024 Billion Japanese Yen Thousands of square meters Mask Revenue Mask Area 200 30 2.4% 2.0% 25 150 20 100 15 10 50 5 0 0 2023 2024 2025F 2026F 2027F 2028F 2023 2024 2025F 2026F 2027F 2028F • The market continued
Slide 29: Pattern Generators: OLED photomask demand
Pattern Generators Increasing photomask demand for OLED displays - 2024 expected to be another positive year Thousands of square meters Mask Area OLED 9 3.2% • OLED development for mobile, IT and TV displays drives demand 8 for OLED photomasks • 2024 area growth of photomasks for OLED displays expec
Slide 30: Bringing tomorrow's electronics to life
Bringing tomorrow’s electronics to life MYCRONIC