Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q1 2022 Earnings Presentation
28 slides from Be Semiconductor Industries's earnings presentation, Apr 29, 2022
Slide 1: Investor Presentation Q1 Results
INVESTOR PRESENTATION Q1 RESULTS April 29, 2022
Slide 2: Safe Harbor Statement
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 presentation, including, but not limited to, statements relating to exp
Slide 3: Table of Contents
Table of Contents I. Key Highlights II. Market & Strategy III. Outlook IV. Financial Appendix April 29, 2022 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS April 29, 2022 4
Slide 5: Q1-22 Revenue & Net Income Up Strongly vs. Q1-21 & Q4-21
Q1-22 Revenue & Net Income Up Strongly vs. Q1-21 & Q4-21 Guidance € millions Q1-22 Q1-22 ∆ Q4-21 ∆ Q1-21 Revenue Up 15% +/-5% 202.4 +17.9% +41.3% Orders 204.8 +1.1% -37.4% Gross Margin 59-61% 60.1% +3.4pts +1.9pts Opex +35-40% 39.9 +31.7% +14.3% Net Income 67.5 +0.6% +79.5% EPS Basic 0.87 +1.2% +70.
Slide 6: Strong Business Execution Keeps Profit Efficiency at High Levels
Strong Business Execution Keeps Profit Efficiency at High Levels Q1-21/Q1-22 Q4-21/Q1-22 Revenue Net Income Revenue Net Income € 202.4 € 202.4 + 17.9% 200 200 + 41.3% € 171.7 € 143.2 Gross Margin Gross Margin 160 58.2% + 1.9 points 60.1% 160 56.7% + 3.4 points 60.1% OPEX OPEX € 34.9 MM + 14.3% € 39.
Slide 7: Capital Allocation Trends
Capital Allocation Trends 350 Dividends € 1.2 Billion Distributions Since 2011* 300 Share Repurchases 287.6 18.4 250 209.5 € millions 200 179.5 35.5 167.1 150 50.1 44.7 269.2 88.8 91.3 100 174.0 17.8 23.5 122.4 129.4 50 65.3 73.5 0 2017 2018 2019 2020 2021 2022* 17% 27% 19% 28% 26% 74% 83% 73% 81% 7
Slide 8: Liquidity Position Enhanced
Liquidity Position Enhanced 800 Cash and Deposits Net Cash Q1-22 vs. Q4-21 696.6 700 672.2 • Total cash up € 24.4 million (3.6%) • +€ 45.0 million cash flow from operations 598.7 • - € 14.1 million share repurchases 600 • - € 5.7 million capitalized development 527.8 500 475.5 • Net cash of € 407.0
Slide 9: II. Market & Strategy
II. MARKET & STRATEGY April 29, 2022 9
Slide 10: Industry Upturn Continues in H1-22
Industry Upturn Continues in H1-22 Source: Tech Insights, April 2022 April 29, 2022 10
Slide 11: Assembly Equipment Forecast
Assembly Equipment Forecast 8.0 7.2 80% Market Size YoY Growth Rate 71.1% 7.2 7.0 6.5 60% 6.0 4.5 4.5 40% 5.0 US$ billions 25.0% 3.8 4.0 3.2 20% 18.8% 10.8% 3.0 0.0% 0.0% 0% 2.0 -20% 1.0 -28.9% 0.0 -40% 2017 2018 2019 2020 2021E 2022E 2023E Source: Tech Insights, April 2022. Assembly equipment reven
Slide 12: Industry Cross Currents Limit Visibility
Industry Cross Currents Limit Visibility H1-22 growth has continued: • High Performance Computing • Automotive • Hybrid bonding and wafer level assembly • Capex spending plans of leading semi producers • 47 new fabs coming online in next three years • Many focus on advanced packaging Headwinds affec
Slide 13: Strategy Update
Strategy Update • Supply chain constraints and selected component shortages persist both at Besi and at customer manufacturing sites Production • Impacts H1-22 quarterly delivery schedules • Hybrid Bonding shipments increased versus Q4-21 • Ramping HB capacity • Gross R&D investment +23% Q1-22 over
Slide 14: III. Outlook
III. OUTLOOK April 29, 2022 14
Slide 15: Guidance Q2-22 & H1-22
Guidance Q2-22 & H1-22 € in millions Revenue Gross Margin Total Operating Expenses Q2-22 € 202.4 +10% (+/- 5%) 60.1% 59%-61% € 39.9 Flat to -5% Q1-22 Q2-22 Q1-22 Q2-22 Q1-22 Q2-22 Flat +/- 5% Revenue Gross Margin Total Operating Expenses HY1-22 € 369.3 +15% 60.5% 60% € 68.6 +15% HY1-21 HY1-22* HY1-2
Slide 16: Financial Calendar
Financial Calendar 17-May-22 Deep Tech Summit, KBC Securities/IMEC, Antwerp 18-May-22 ABN AMRO/ODDO BHF Benelux Equities Conference, Amsterdam 9-Jun-22 Berenberg Innovation Conference 2022, Zürich 16-Jun-22 Analyst Meeting 22-Jun-22 BofA TMT Conference, London 23-Jun-22 ABN AMRO/ODDO BHF Conference,
Slide 17: IV. Financial Appendix
IV. FINANCIAL APPENDIX April 29, 2022 17
Slide 18: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends Revenue Gross Margin € millions Gross Margin 900 70% 800 60% 58.0% 700 51.1% 805 50% 600 749 500 39.5% 516 40% 593 34.1% 424 400 30% 379 4 year 300 302 averages 20% 351 200 164 10% 100 191 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 19: Revenue/Order Trends
Revenue/Order Trends Revenue Orders 350 327 Q1-22 vs. Q4-21 • Revenue: +€ 30.7 million (+17.9%) 300 • High end of prior guidance (up 15% +/-5%) • Higher HPC shipments, particularly data center, 250 advanced logic and hybrid bonding 226 208 209 200 203 202 205 • Orders: € 204.8 million (+1.1%) 200 •
Slide 20: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 1,000 939.1 IDMs Subcontractors 900 816.8 800 700 45% 41% 600 Orders 483.1 472.1 500 400 32% 39% 53% 348.7 39% 55% 300 39% 55% 59% 200 61% 61% 68% 47% 100 61% 45% - 2018 2019 2020 2021 LTM* * Last twelve month ended March 31, 2022 April 29, 2022 20
Slide 21: Gross Margin Trends
Gross Margin Trends Revenue Gross Margin Adjusted Gross Margin* 240 226.1 70% 220 208.3 68% 202.4 Q1-22 vs. Q4-21 200 66% • 60.1% vs. 56.7%* (+3.4 points) 180 171.7 • Mid-point of prior guidance 160 64% • Comparable to Q4-21 ex-inventory charge 143.2 • Net forex neutral: Revenue +USD vs. EUR € milli
Slide 22: Baseline Operating Expense Trends
Baseline Operating Expense Trends Baseline Opex Other Opex* Baseline Opex % of Revenue 60.0% 39.9 40.0 50.0% 34.9 Operating Expenses (€ millions) 33.6 9.4 40.0% 3.6 30.4 30.3 30.0 28.6 8.9 30.0% 3.6 23.9 23.3 0.8 20.1% 21.3% 21.3% 30.3 18.2% 20.0% 20.0 30.0 30.4 17.6% 30.5 14.6% 15.1% 25.0 26.0 13.3
Slide 23: Headcount Trends
Headcount Trends 2,500 30.0% 2,308 2,141 25.0% 2,000 622 1,759 496 67 1,596 1,618 20.0% 62 95 1,500 • Increasing fixed headcount to support R&D and service/support for wafer level Headcount 15.0% assembly expansion 1,230 1,154 1,186 1,000 1,081 1,060 10.0% • Temporary Asian production HC growth help
Slide 24: Net Income Trends
Net Income Trends Quarterly Trends Net Income Net Margin Adj. Net Margin 100 € 93.5 60% € 84.2 Q1-22 vs. Q4-21 80 • € 67.5 million (+€ 0.4 million) € 67.1 € 67.5 • +€ 9.2 million (+13.9%) on adjusted basis* • +17.9% revenue increase 60 • Baseline opex under control € millions 41.3% • Adjusted net ma
Slide 25: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 350 296.2 300 278 37.4% 37.1% 36.6% 250 35.0% 33.7% 200 28.4% 184.1 168.2 162.0 150 120.1 100 50 0 2017 2018 2019 2020 2021 LTM Total Cash Flow from Operations As % of Revenue April 29, 2022 25
Slide 26: Dividend Trends
Dividend Trends Cumulative dividends of € 969.8 million since 2011, or € 12.78 per share Dividend Dividend (€) Payout Ratio 3.50 100% 3.33 100% 98% 98% 3.00 96% 2.50 2.32 95% 94% 2.00 92% 1.67 1.70 90% 90% 90% 1.50 1.01 88% 1.00 86% 0.50 84% 0.00 82% 2017 2018 2019 2020 2021 Dividend Dividend Payout
Slide 27: Share Repurchase Activity
Share Repurchase Activity Share Repurchases Average Cost per Share 60 90.0 50.1 80.0 50 € 74.43 44.6 € 69.84 70.0 Avg Cost per Share 40 60.0 35.5 50.0 € millions 30 40.0 € 38.05 20 17.8 30.0 € 24.31 14.1 € 21.86 20.0 10 10.0 0 0.0 2018 2019 2020 2021 2022* • Approximately 650,000 treasury shares at
Slide 28: Investment Considerations
Investment Considerations Assembly market Long term secular Disciplined strategic Wafer level assembly ever more critical in trends drive focus has created an new growth semiconductor value advanced packaging industry leader opportunity chain growth Market presence has Tech leadership and Commitment
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