Slide 1: Third quarter 2023
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Slide 2: President and CEO
President and CEO Anders Lindqvist 2
Slide 3: Agenda
Agenda • Q3 in short • Divisional development • Financials • Sustainability • Q&A • Appendix – Market update 3
Slide 4: Q3 in short
Q3 in short A good quarter • First Prexision system equipped with solid state laser delivered • Reduces laser energy consumption by up to 99 percent compared with a gas laser • Order received after the end of the quarter to upgrade from gas lasers to solid state lasers in previously installed mask w
Slide 5: Pattern Generators
Pattern Generators Share of Group’s net sales Net sales SEK 435 M EBIT SEK 203 M Energy efficient laser for displays 34% Order intake SEK 561 M EBIT margin 47% • A Prexision Lite 8 Evo, the first new display mask writer equipped with a solid state laser, was delivered • Order received after Q3 to up
Slide 6: High Flex
High Flex Now offering stencil printing • The market in Europe in particular, as well as in North America, remained robust, while demand in China and the rest of Asia was weak • High Flex took over global responsibility for China- based HC Xin from High Volume • Provides stencil printers for applica
Slide 7: High Volume
High Volume Taking over dispensing globally • The third quarter saw a slight recovery in investments among Chinese mobile phone manufacturers • The electric vehicle industry remained steady • High Volume took over global responsibility for both the MYSmart dispensing products and the Mexico office f
Slide 8: Global Technologies
Global Technologies Permanent Head of division • Sluggish market demand in the third quarter, especially from China, with the exception of AI- related demand • Acting Sr VP Global Technologies Magnus Marthinsson assumed the position on a permanent basis • Order intake rose 8%, helped by a strong dev
Slide 9: Outlook 2023 confirmed
Outlook 2023 confirmed Net sales 2023 SEK 5.5 billion 9
Slide 10: CFO & Sr VP Corporate Development
CFO & Sr VP Corporate Development Pierre Brorsson 10
Slide 11: Group net sales and EBIT margin rolling 12 months
Group net sales and EBIT margin rolling 12 months MSEK % 6000 50 45 5000 • Net sales R12 amounted to SEK 5,235 million 40 35 • EBIT margin R12 at 17% 4000 30 • Aftermarket revenue R12 at SEK 1,609 million 3000 25 • 31% of net sales 20 2000 • Increasing quarter-on-quarter since Q1 2021 15 10 1000 5 0
Slide 12: Group net sales and EBIT margin per quarter
Group net sales and EBIT margin per quarter MSEK % 1600 25 1400 • Net sales increased 5% vs Q3 2022, mainly explained by 20 1200 Pattern Generators 1000 15 • Improved EBIT margin driven by Pattern Generators and 800 a more favorable division mix, with Pattern Generators 10 representing a larger shar
Slide 13: Group Q3 EBIT bridge
Group Q3 EBIT bridge MSEK +30% -6 26 -4 -38 263 55 203 27 EBIT Q3 Volume Gross R&D M&S G&A Other EBIT Q3 2022 effect margin 2023 effect % of Sales 2022 17% 45% -13% -13% -5% 3% % of Sales 2023 49% -12% -10% -6% 0% 21% 13
Slide 14: Divisional Q3 EBIT contribution
Divisional Q3 EBIT contribution MSEK 21% 17% 14
Slide 15: Strong cash flow
Strong cash flow MSEK YTD 2023 YTD 2022 Cash flow from operations • Decrease in working capital mainly attributable to before change in working capital 722 619 increased advance payments from customers Change in working capital 323 -203 • The divestment of AEi generated SEK 216 million in Cash flow
Slide 16: President and CEO
President and CEO Anders Lindqvist 16
Slide 17: Sustainability
Sustainability • September saw the delivery of the first Prexision system equipped with a solid state laser, which reduces laser energy consumption by up to 99 percent compared with a gas laser. • The laser accounts for the majority of the energy consumed by the mask writer • In addition, an order w
Slide 18: Q&A
Q&A 18
Slide 19: Appendix: Q3 2023 Market update
APPENDIX Q3 2023 Market update
Slide 20: Outcome 2022
Outcome 2022 Market summary and updates • Global electronics -2.1% to 2,428 BnUSD1) • Semiconductors 3.1% to 573 BnUSD1) • Optical components 7.3% to 12.9 BnUSD3) • Printed circuit boards and substrates 1.0% to 81.7 BnUSD4 • Display market -22.0% to 123 BnUSD5) • Display photomasks 24.4% to 883 MUSD
Slide 21: Forecasts 2023
Forecasts 2023 Market summary and updates • Global electronics industry -1.0% to reach 2,404 BnUSD1) • Semiconductor industry -9.8% to reach 517 BnUSD1) • Optical components market -2.7% to reach 12.4 BnUSD2) • Printed circuit boards and substrates market -15.0% to reach 69.5 BnUSD3) • Displays -3.6
Slide 22: Electronics industry systems
Electronics industry systems Yearly development by industry segment • Modest decline of -1.0% forecast for 2023, to USD billion 3 500 reach 2,404 BnUSD, with strongest development in 3 000 • Automotive 10.3% • Aerospace / Defense 8.7% 2 500 • Medical 4.4% 2 000 • Growth of +4.7% forecast for 2024, t
Slide 23: Semiconductors
Semiconductors Quarterly development USD billion 200 • 3.1% growth in 2022 and reached 573 BnUSD 175 • Forecast -9.8% in 2023 to reach 517 150 BnUSD 125 • 2022 to 2027 CAGR growth forecast at 4.6% to reach 716 BnUSD 100 75 50 25 0 2019 2020 2021 2022 2023F 2024F 2025F 2026F 2027F Actual Forecast Sou
Slide 24: SMT and Dispensing
SMT and Dispensing Market update SMT assembly equipment* • The segment declined by 17.9% in 2022 to USD 3,062 million, although the markets in Europe and North and South America reported growth.1) • During the first two quarters the market declined by 25.7% compared to same period in 2022, although
Slide 25: 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 21.4 • Optical components production is the main 11.4% 19.5 driver for die/lens attach and other adjacent 17.5 process
Slide 26: Pattern Generators: display panel market
Pattern Generators Display panel market BUSD Display panel revenue BUSD AMOLED display panel revenue 250 70 3.8% 60 200 51 2.0% 47 49 157 50 43 45 42 43 150 129 131 136 40 123 118 124 100 30 20 50 10 0 0 2021A 2022A 2023F 2024F 2025F 2026F 2027F 2021A 2022A 2023F 2024F 2025F 2026F 2027F • Display ma
Slide 27: Pattern Generators: photomask market forecast
Pattern Generators Continued positive photomask market forecast after a very strong 2022 Billion Japanese Yen Thousands of square meters Mask Revenue Mask Area 200 30 25 1.3% 1.5% 150 20 100 15 10 50 5 0 0 2021A 2022A 2023F 2024F 2025F 2026F 2027F 2021A 2022A 2023F 2024F 2025F 2026F 2027F • Display
Slide 28: Increasing photomasks demand for AMOLED displays
Pattern Generators Increasing photomasks demand for AMOLED displays, 2022 was a very strong year Thousands of square meters Mask Area AMOLED 9 • Technology shift from LCD to AMOLED for mobile and IT displays 2.8% drives demand for AMOLED photomasks 8 • 2022 area growth of photomasks for AMOLED displ
Slide 29: Bringing tomorrow's electronics to life
Bringing tomorrow’s electronics to life MYCRONIC