Slide 1: Investor Presentation Q3-24 Results
INVESTOR PRESENTATION Q3-24 RESULTS October 24, 2024
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 October 24, 2024 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS October 24, 2024 4
Slide 5: Q3-24 Results Improve Significantly Versus Last Year. Hybrid Bonding Adoption Increases
Q3-24 Results Improve Significantly Versus Last Year. Hybrid Bonding Adoption Increases Guidance € millions Q3-24* Q3-24 ∆ Q2-24 ∆ Q3-23 Revenue Flat (up/down 5%) 156.6 +3.6% +27.0% Orders 151.8 -18.0% +19.2% Gross Margin 64-66% 64.7% -0.3pts +0.1pts Opex Down 0-5% 46.2 -5.7% +25.2% Operating Income
Slide 6: YTD-24 Results Show Improvement In Revenue, Orders and Gross Margin
YTD-24 Results Show Improvement In Revenue, Orders and Gross Margin Due to Advanced Packaging Strength Q2-24/Q3-24 YTD-23/YTD-24 Revenue Net Income Revenue Net Income 500 + 3.6% € 156.6 + 8.3% € 454.1 160 € 151.2 450 € 419.2 400 Gross Margin Gross Margin 65.0 % - 0.3 points 64.7% 64.8% + 0.8points 6
Slide 7: Strong Liquidity Position Maintained. Net Cash Increased
Strong Liquidity Position Maintained. Net Cash Increased Both Sequentially and Year Over Year 800 Q3-24 vs. Q2-24 • Cash and deposits of € 637.4 million Cash and Deposits Net Cash • + € 380.2 million primarily due to: 700 672.2 671.7 • + € 350.0 million Senior Note issuance 637.4 • + € 72.0 million
Slide 8: II. Market & Strategy
II. MARKET & STRATEGY October 24, 2024 8
Slide 9: Assembly Equipment Market Rebound Pushed Out to 2025
Assembly Equipment Market Rebound Pushed Out to 2025 Assembly Market ($B) 7.4 6.6 Downward revisions to 2024 estimates reflect slow 5.7 mainstream recovery 5.6 • Techinsights now forecasts 2.9% increase • Reduction from last forecast of 9.3% 4.1 4.3 3.9 Market expected to recover strongly in 2025/20
Slide 10: Strategy Update
Strategy Update • Contrasting assembly market trends continue • Accelerating AI demand driven by 2.5/3D and photonics applications • AI-related advanced packaging orders ~50% of Besi’s total for past 12 months Business • Slow recovery for mainstream assembly markets: • Smartphones, automotive and Ch
Slide 11: III. Outlook
III. OUTLOOK October 24, 2024 11
Slide 12: Guidance Q4-24 and FY 2024
Guidance Q4-24 and FY 2024 € in millions Q3-24 Q4-24 FY 2024E* vs. FY 2023 +10% Revenue € 156.6 to € 610.7 +5.5% -10% Gross Margin 64.7% 63% - 65% 65.2% +0.3 pts +5% Operating Expenses € 46.2 to 0% € 200.1 +23.2% * Assumes midpoint of guidance for Q4-24 October 24, 2024 12
Slide 13: Financial Calendar
Financial Calendar 14-Nov-24 KBC’S Global Leaders Conference, Paris 20-Nov-24 Morgan Stanley’s TMT Conference, Barcelona 26-Nov-24 Goldman Sachs Virtual AI Enablers Symposium 02-Dec-24 BofA Tech Virtual Field Trip 09-Dec-24 Kepler Cheuvreux Virtual CEO/CFO Tour 10-Dec-24 ING Benelux Conference, New
Slide 14: IV. Financial Appendix
IV. FINANCIAL APPENDIX October 24, 2024 14
Slide 15: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 800 70% 65.2% 700 60% 58.0% 600 51.1% 749 50% 611 500 516 593 39.5% 40% 424 400 34.1% 379 30% 300 302 4 year 351 averages 20% 200 164 191 10% 100 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 16: Revenue/Order Trends
Revenue/Order Trends 250 Quarterly Trends Revenue Orders Q3-24 vs. Q2-24 • Revenue: +€ 5.4 million (+3.6%) 200 185 • Above mid point of guidance 163 160 166 151 157 152 • Higher computing including hybrid bonding and photonics 146 150 133 142 128 • Orders: -€ 33.4 million (-18.0%) 123 127 € millions
Slide 17: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions IDMs Subcontractors 1,000 939.1 900 800 45% 700 663.7 631.1 Orders 600 548.3 500 472.1 45% 39% 46% 53% 39% 400 48% 55% 300 55% 61% 61% 47% 200 55% 54% 52% 100 45% - 2020 2021 2022 2023 LTM* * Last twelve months ended September 30, 2024 October 24, 2024 17
Slide 18: Gross Margin Trends
Gross Margin Trends Quarterly Trends 200 75% Revenue Gross Margin 162.5 159.6 156.6 Q3-24 vs. Q2-24 151.2 150 133.4 146.3 70% • 64.7% vs. 65.0% (-0.3 points) 123.3 • Slightly below midpoint of guidance • Net forex negative: Revenue + USD vs. EUR € millions 67.2% 65.6% 65.1% Costs + MYR vs. EUR 100 6
Slide 19: Baseline Operating Expense Trends
Baseline Operating Expense Trends 60.0 57.6 50.0% 45.0% 49.0 50.0 46.2 40.0% 44.0 43.7 21.2 9.0 Operating Expenses (€ millions) 5.7 35.0% 40.0 37.1 36.9 37.8 11.2 9.5 34.0 2.8 2.2 30.0% 3.3 0.9 27.3% 26.5% 25.9% 30.0 24.9% 24.6% 24.9% 25.0% 22.3% 21.0% 19.6% 20.0% 20.0 40.0 40.5 34.3 34.2 35.6 36.4
Slide 20: Headcount Trends
Headcount Trends 2,500 30.0% 2,141 2,078 2,062 1,996 25.0% 2,000 1,819 1,870 271 496 236 279 134 1,618 144 20.0% 95 • Increasing European and Asian 1,500 fixed headcount to support wafer Headcount 15.0% level assembly expansion 1,193 1,211 1,233 1,244 1,154 1,162 1,000 1,060 • Increasing temporary A
Slide 21: Net Income Trends
Net Income Trends Quarterly Trends Net Income Share-based compensation* Q3-24 vs. Q2-24 60 40% Net Margin • € 46.8 million (+€ 4.9 million) 50 35% • +3.6% higher revenue 34.4% • +€ 3.2 million lower share-based compensation 40 32.4% 29.9% € millions 30 27.7% 30% € 52.6 € 54.9 Q3-24 vs. Q3-23 28.4% €
Slide 22: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 350 Total Cash Flow from Operations As % of Revenue 300 277.9 271.9 250 208.6 200 37.4% 37.1% 37.6% 190.5 36.0% 162.0 150 31.0% 100 50 0 2020 2021 2022 2023 LTM* * Last twelve months ended September 30, 2024 October 24, 2024 22
Slide 23: Dividend Trends
Dividend Trends Cumulative dividends of € 1.4 billion since 2011, or € 17.78 per share* Dividend (€) Dividend Payout Ratio 3.50 3.33 100% 98% 98% 3.00 2.85 97% 96% 95% 2.50 94% 2.15 92% 92% 2.00 1.70 90% 90% 1.50 88% 1.01 1.00 86% 84% 0.50 82% 0.00 80% 2019 2020 2021 2022 2023 Dividend Dividend Payo
Slide 24: Share Repurchase Activity
Share Repurchase Activity Share Repurchases Average Cost per Share 250 160.0 213.4 140.0 € 131.29 200 120.0 Avg Cost per Share 146.8 100.0 € millions 150 € 83.40 80.0 € 69.84 100 60.0 € 54.38 57.4 40.0 € 38.05 50.1 50 17.8 20.0 0 0.0 2020 2021 2022 2023 2024 • Approximately 1.6 million treasury shar
Slide 25: 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