Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q4 2022 Earnings Presentation
31 slides from Be Semiconductor Industries's earnings presentation, Feb 22, 2023
Slide 1: Investor Presentation Q4 and FY 2022 Results
INVESTOR PRESENTATION Q4 and FY 2022 RESULTS February 22, 2023
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 February 22, 2023 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS February 22, 2023 4
Slide 5: Q4-22 Operating Income Above Expectations, Orders Up 44.1% vs. Q3-22
Q4-22 Operating Income Above Expectations Orders Up 44.1% vs. Q3-22 Guidance € millions Q4-22* Q4-22 ∆ Q3-22 ∆ Q4-21 Revenue Down 15% - 25% 137.7 -18.4% -19.8% Orders 180.5 +44.1% -10.9% Gross Margin 60-62% 62.3% - +5.6pts Opex Up ~5% 37.1 +9.1% +22.4% Operating Income 46.7** 48.7 -31.6% -27.5% Net
Slide 6: FY-22 Revenue Down 3.5%, Gross and Net Margins Achieved
FY-22 Revenue Down 3.5%. Gross & Net Margins Achieved of 61.3% and 33.3% in Challenging Environment Q3-22/Q4-22 FY-21/FY-22 Revenue Net Income Revenue Net Income 200 900 € 168.8 - 3.5% 800 € 749.3 - 18.4% € 137.7 € 722.9 160 Gross Margin 700 Gross Margin 62.3% + 0.0 points 62.3% 59.6% + 1.7 points 6
Slide 7: End User Market Trends 2021/2022
End User Market Trends 2021/2022 2021 2022 Revenue Spares/ Industrial/ Revenue Mobile Computing Automotive Service Other February 22, 2023 7
Slide 8: Performance Significantly Above Last Industry Downturn
Performance Significantly Above Last Industry Downturn Revenue (€MM) Orders (€MM) 1000 1,000 939 900 749 900 800 723 800 700 681 593 700 664 600 525 600 500 483 500 400 400 300 300 200 200 100 100 0 2017 2018 2021 2022 - 2017 2018 2021 2022 Operating Profit (€MM) Operating Margin 350 45% 42.4% 318 4
Slide 9: Strong Cash Flow Generation Continues
Strong Cash Flow Generation Continues € 269.5 million Q4-22 vs. Q3-22 800 Cash and Deposits Net Cash dividend • Cash and deposits of € 671.7 million up € 9.9 696.6 million primarily due to: 700 672.2 661.8 671.7 • + € 86.6 million cash flow from operations • - € 65.0 million share repurchases 598.7
Slide 10: Capital Allocation More Than Doubled vs. 2021
Capital Allocation More Than Doubled vs. 2021 Share Buybacks Increased to € 146.8 million 500 € 1.6 Billion Distributions Since 2011* 416.3 400 Dividends • Record € 416.3 million distributed Share Repurchases 146.8 300 267.8 • New € 300 million share buyback € millions program: 209.5 44.1 • Started
Slide 11: II. Market & Strategy
II. MARKET & STRATEGY February 22, 2023 11
Slide 12: Market Conditions Have Weakened Significantly Since Q2-22
Market Conditions Have Weakened Significantly Since Q2-22 TechInsights Global Chip Making Climate Trend Index 120 2/21: Intel, TSMC, 7/22: Memory 110 Samsung hike capex Inventory Correction 100 Temperature in Degrees F 90 2/20: COVID-19 outbreak 80 70 Growth Decline Line 60 5/19: U.S.- China trade w
Slide 13: Downturn Expected to Continue in 2023, Rebound Forecast in 2024
Downturn Expected to Continue in 2023. Rebound Forecast in 2024 8.0 68.0% 80% 6.9 7.0 6.5 Market Size YoY Growth Rate 5.8 60% 6.0 5.8 4.5 4.8 40% US$ billions 5.0 3.9 4.0 3.2 20.6% 17.8% 20% 21.2% 3.0 -2.2% 0% 2.0 -10.6% -16.8% -20% 1.0 -29.9% 0.0 -40% 2018 2019 2020 2021 2022E 2023E 2024E 2025E Sou
Slide 14: Strategy Update
Strategy Update • Responded effectively to industry downturn • Expanded R&D investment for next generation applications Business • Significant progress on wafer level assembly portfolio • Key ESG targets exceeded • Capital allocation to shareholders increased • Gross R&D spending increased 23% in 20
Slide 15: Hybrid Bonding Update
Hybrid Bonding Update Industry Adoption Besi Progress • Active development by leading • 35 units shipped since Q4-21 semiconductor producers • 28 units shipped in 2022 • Full scale commercial production for • 14 new orders post Q3-22 high performance CPUs • 3 to date in Q1-23 • Memory applications i
Slide 16: Significant ESG Progress. Key Targets Met or Exceeded
Significant ESG Progress. Key Targets Met or Exceeded Process Pillar 2022 Target 2022 Progress 15% Reduction in Scope 1 & 2 64% Reduction in Scope 1 & 2 emissions intensity vs 2021 emissions vs. 2019 index 5% reduction in hazardous waste Relative and absolute reduction in hazardous waste Environment
Slide 17: III. Outlook
III. OUTLOOK February 22, 2023 17
Slide 18: Guidance Q1-23
Guidance Q1-23 Revenue Gross Margin Baseline Operating Expenses 0% 0% € 137.7 - 62.3% 61%-63% € 34.3 - -10% -5% Q4-22 Q1-23 Q4-22 Q1-23 Q4-22 Q1-23 € in millions Total Operating Expenses +15 € 37.1 - 20% Q4-22 Q1-23 February 22, 2023 18
Slide 19: Financial Calendar
Financial Calendar 1-Mar-23 The Chiplet Symposium, Milan 3-Mar-23 Susquehanna 12th Annual Technology Conference (virtual) 7-Mar-23 UBS Technology Conference 2023, London 26-Apr-23 Besi’s 2023 first quarter results 26-Apr-23 Besi’s Annual General Meeting of Shareholders 3-May-23 Goldman Sachs Small a
Slide 20: IV. Financial Appendix
IV. FINANCIAL APPENDIX February 22, 2023 20
Slide 21: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 800 70% 61.3% 700 60% 58.0% 600 51.1% 749 723 50% 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 22: Revenue/Order Trends
Revenue/Order Trends 350 327 Quarterly Trends Revenue Orders Q4-22 vs. Q3-22 300 • Revenue: -€ 31.1 million (-18.4%) 250 226 • -Lower computing and mainstream electronics 208 209 202 205 214 200 203 181 • -Ongoing weakness in mobile 200 172 169 • +Partial offset automotive € millions 143 153 150 125
Slide 23: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 1,000 IDMs Subcontractors 939.1 900 800 45% 663.7 700 Orders 600 483.1 39% 45% 53% 500 472.1 39% 400 32% 348.7 55% 300 61% 61% 39% 47% 55% 55% 200 68% 100 61% 45% - 2018 2019 2020 2021 2022 February 22, 2023 23
Slide 24: Gross Margin Trends
Gross Margin Trends Quarterly Trends Revenue Gross Margin 250 70% 226.1 208.3 214.0 68% 202.4 Q4-22 vs. Q3-22 200 171.7 66% • 62.3% vs. 62.3% 168.8 137.7 64% • Above prior guidance 143.2 62.3% • Headcount alignment with market trends € millions 150 62.1% 62.3% 62% 61.0% 61.0% 60.4% 60.1% 60% • Net f
Slide 25: Baseline Operating Expense Trends
Baseline Operating Expense Trends Baseline Opex Other Opex* Baseline Opex % of Revenue 60.0% 39.9 40.0 37.9 50.0% 37.1 34.9 Operating Expenses (€ millions) 9.4 4.7 34.0 2.8 33.6 0.9 40.0% 3.6 30.4 30.3 30.0 8.9 30.0% 34.3 33.2 24.9% 33.1 30.0 30.4 30.3 30.5 18.2% 19.6% 20.0% 20.0 17.6% 15.1% 15.5% 1
Slide 26: Headcount Trends
Headcount Trends 2,500 30.0% 2,308 2,238 2,141 2,015 25.0% 2,000 622 524 496 1,819 1,759 321 67 1,596 1,618 144 20.0% 62 95 1,500 • Reduced temporary HC by 55% in Q4-22 to better align with market Headcount 15.0% conditions 1,230 1,154 1,186 1,203 1,176 1,162 1,000 1,081 1,060 • Increasing European
Slide 27: Net Income Trends
Net Income Trends Quarterly Trends Net Income 100 € 93.5 60% Q4-22 vs. Q3-22 Net Margin € 84.2 • € 40.2 million (-€ 17.1 million) 80 € 75.6 • -18.4% revenue € 67.1 € 67.5 • +9.1% operating expenses € 57.3 60 • Offset: higher interest income. Lower effective tax rate € millions 41.3% 40.4% 40% € 37.6
Slide 28: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 300 277.9 271.9 250 37.4% 37.1% 37.6% 35.0% 200 33.7% 184.1 168.2 162.0 28.4% 150 120.1 100 50 0 2017 2018 2019 2020 2021 2022 Total Cash Flow from Operations As % of Revenue February 22, 2023 28
Slide 29: Dividend Trends
Dividend Trends Cumulative dividends of € 1.2 billion since 2011, or € 15.63 per share* Dividend (€) Dividend Payout Ratio Dividend 3.50 3.33 100% Dividend Payout Ratio 98% 98% 3.00 2.85 96% 2.50 95% 94% 93% 2.00 92% 1.67 1.70 90% 90% 90% 1.50 1.01 88% 1.00 86% 0.50 84% 0.00 82% 2018 2019 2020 2021
Slide 30: Share Repurchase Activity
Share Repurchase Activity Share Repurchases Average Cost per Share 150 146.8 100.0 90.0 125 80.0 € 69.84 70.0 Avg Cost per Share 100 60.0 € 54.38 € millions 75 50.0 40.0 € 38.05 50.1 50 44.6 30.0 35.5 € 24.31 € 21.86 20.0 25 17.8 10.0 0 0.0 2018 2019 2020 2021 2022 • Approximately 2.7 million treasu
Slide 31: 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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