Mycronic Ab · OMXSTO:MYCR
Mycronic Ab — Micronic Laser Systems — Q4 2005 Earnings Presentation
31 slides from Mycronic Ab's earnings presentation, March 2006
Slide 1: Micronic Q4 and full year 2005
Micronic Q4 and full year 2005 Sven Löfquist, President & CEO Carl-Johan Blomberg, CFO
Slide 2: Agenda
Agenda Short Company Presentation Key Events Q4, 2005 Key Figures Q4, 2005 Market Information Outlook 2
Slide 3: Micronic in Every Home
Micronic in Every Home PC Camera Phone LCD-TV Laptop 3
Slide 4: Micronic in the Industry
Micronic in the Industry • Micronic’s laser pattern generators write photomasks for the production of electronic components NewSigma7500 LRS11000/LRS15000 MP80+ Flat panel displays for monitors, Semiconductor packaging Advanced semiconductors laptops, phones and TVs Passive displays MMS15000 Omega68
Slide 5: Micronic's Product Offering Covers the Electronics Industry's Total Photomask Requirements
Micronic’s Product Offering Covers the Electronics Industry’s Total Photomask Requirements Advanced semiconductor masks Flat panel display masks Electronic packaging masks 5
Slide 6: Key Events Q4 2005
Key Events Q4 2005 • Micronic received exchange order for an LRS series laser pattern generator for TFT-LCD photomasks • Received order for an Omega series laser pattern generator for semiconductor photomasks • Micronic launched the Sigma7500, thereby setting a new standard for advanced semiconducto
Slide 7: Key Events after Reporting Period
Key Events after Reporting Period • Micronic has established a wholly owned subsidiary in South Korea to conduct sales and service activities in the local market under its own management 7
Slide 8: Order Intake, SEK million
Order Intake, SEK million 1400 1. Order intake 2005 of 1200 15 systems 1000 2. SEK 1,306 million 800 600 400 200 0 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 Q1 Q2 Q3 Q4 8
Slide 9: Order Backlog, SEK million
Order Backlog, SEK million 900 800 700 600 500 400 300 200 100 0 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 1. Entire order backlog for shipment during 2006 9
Slide 10: Net Sales, SEK million
Net Sales, SEK million 1400 1. Sales 52% over 1200 last year 1000 800 600 400 200 0 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 Q1 Q2 Q3 Q4 10
Slide 11: Gross Margin, SEK million
Gross Margin, SEK million 60% 1. Gross margin 54% 50% in 2005 and 56% in Q4 40% 30% 20% 10% 0% FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 11
Slide 12: R&D, SEK million
R&D, SEK million 1. R&D expenditures below SEK 200 million 2. Reported costs include net amortization of SEK 112 million 350 300 250 200 150 100 50 0 FY 2001 FY 2002 FY 2003 FY 2004 FY2005 R&D spending Reported costs 12
Slide 13: Earnings per Share, SEK
Earnings per Share, SEK 5 40,0% 20,0% 3 0,0% 1 -20,0% -1 -40,0% -3 -60,0% -5 -80,0% -7 -100,0% FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 Earnings per share EBIT margin Adjusted EBIT margin 1. Adjusted EBIT equals SEK 285 million, reaching 22% 13
Slide 14: Balance Sheet Items 2005, SEK million
Balance Sheet Items 2005, SEK million 2005 2004 Fixed assets 606 718 - Whereof intangible assets 266 385 Inventories 358 344 Accounts receivables 243 148 Cash 562 306 Total assets 1 870 1 572 Equity 1 025 908 Advance payments from customers 138 86 Equity/total assets 55% 58% 14
Slide 15: Cash Flow Analysis 2005
Cash Flow Analysis 2005 SEK Million 2005 2004 Cash flow from operations 476 228 Change in working capital -153 -239 Cash flow from operations after changes in working capital 323 -11 Investments -40 -138 Financing -29 -132 Cash flow 256 -280 1. Strong cash flow from operations 15
Slide 16: Sales Distribution
Sales Distribution Net sales 2005 by geographic market Net sales 2004 by geographic market Japan 37% Asia 62% USA 1% Japan 59% Asia 27% USA 14% 16
Slide 17: Sales Distribution
Sales Distribution Net sales 2005 by product market Net sales 2004 by product market Semiconductor 8% Multi Purpose 2% Semiconductor 13% Multi Purpose 5% Service 10% Display 80% Service 13% Display 69% 17
Slide 18: Industry Outlook 2006
Industry Outlook 2006 • Worldwide electronic system sales increase >6% – Semiconductor content above 20% • PC/Cell Phone still key demand driver • Consumer market growth is strong – HDTV – Digital camera/Digital Video Recorder – Portables MP3, iPod – Game – Wireless broadband – Flash storage – … • O
Slide 19: Pushing the limits: iSuppli Semiconductor demand profile
Pushing the limits a MICRONIC LASER SYSTEMS iSuppli Semiconductor demand profile » Other than PCs and handsets, semiconductor demand will be highly fragmented with many markets fading fast... $60,000 oi $55,000 Desktop PC = N $50,000 £ 5 e $45,000 Mobile Handsets r= a $40,000 - & $35,000 Optical WAN
Slide 20: The digital home is creating new opportunities
The digital home is creating new opportunities Network & communication 20
Slide 21: FPD Market, Steady Growth 2006-2007
FPD Market, Steady Growth 2006-2007 120 100 80 US$ billion March '05 fcst 60 Jan '06 fcst 40 20 0 2003 2004 2005 2006 2007 2008 2009 21 Source: DisplaySearch March 2005, Jan 2006
Slide 22: FPD Revenues by Application
FPD Revenues by Application 120 100 80 Others Plasma TV US$ billion Notebook PC 60 LCD TV Mobile Telephone 40 Desktop Monitor 20 0 2004 2005 2006 2007 2008 2009 • Main growth application is LCD TV 22 Source: DisplaySearch, Jan 2006
Slide 23: FPD Equipment Forecasts
FPD Equipment Forecasts 14 14 14 12 12 12 10 10 10 December 2004 billion 8 billion December December2004 billion 88 2004 billion February 2005 February February2005 December 2004 2005 June 2005 2004 December US$ June June2005 February 2005 US$ 2005 US$ US$ 6 September 2005 66 September 2005 January
Slide 24: Photomask Market Forecast by Area
Photomask Market Forecast by Area 6 000 Pattern Generator 5 000 (PG) Market • Increasing mask size 4 000 Gen 8 (4x from G5 to G8) Gen 7 Gen 6 • Constant PG throughput m2 3 000 Gen 5 Gen 4 Gen 3 • More mask shop sites 2 000 that all need latest generation PG 1 000 => Drives demand for PG’s 0 2003 200
Slide 25: Conclusion
Conclusion 1 • The LCD TV market growth outperformed analysts expectation for 2005 • Substantial expansion of display manufacturing capacity announced for 2007 • Continued strong PG market in 2006 • Continued geographical expansion among mask makers 25
Slide 26: Semiconductor market forecast
Semiconductor market forecast IC sales and SC Equipment sales (B$) 250 200 Billion $ 150 IC Sales 100 Eq. Sales 50 0 2000 2001 2002 2003 2004 2005 2006 • Continued modest market growth expected; supply/demand balanced • Single digit growth expected in both IC and equipment sales for next 2-3 years •
Slide 27: Semiconductor Photomask Industry Trends
Semiconductor Photomask Industry Trends • Consolidation in our industry (fewer customers and fewer sites) – DuPont acquired by Toppan – Photronics no further investments in the US / Europe • Still some overcapacity among merchant mask shops • Photomask revenues in 2005 up 8%, passing USD 3 billion •
Slide 28: Semiconductor Photomask Industry Trends
Semiconductor Photomask Industry Trends Pattern Generator (PG) demand • PG demand at about 20 systems per year – ASP increases for lasers • Replacement opportunities at mature technologies (many old PGs) PG makers consolidation • PG market has been in a slump for several years, oversupply and heavy
Slide 29: Taking Market Share @ 20 Systems/Year
Taking Market Share @ 20 Systems/Year Market share 2005 2006-> opportunity NuFlare Je ol NuFlare yy% M icronic xx% Jeol Applie d Micronic Hitachi zz% Market: 200 MUSD * Market: 300 MUSD ? Market size variation partly affected by extended tool acceptance procedure in a low volume market 29 Source: *G
Slide 30: Conclusion
Conclusion 2 • Sigma established as a production tool – Captive mask shops ahead – Systems under evaluation and qualification progressing well • Omega for main stream production – Order for capacity increase – Replacement market slowly coming • Good opportunities to significantly increase the semico
Slide 31: Outlook 2006
Outlook 2006 • Order intake for the first half year in line with H1 2005 (SEK 557 million) • Sales for H1 2006 are expected to exceed SEK 600 million • Sales for the full year 2006 are expected to exceed 2005 (SEK 1,276 million) 31
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