Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q1 2023 Earnings Presentation
28 slides from Be Semiconductor Industries's earnings presentation, Apr 26, 2023
Slide 1: Investor Presentation Q1-23 Results
INVESTOR PRESENTATION Q1-23 RESULTS April 26, 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 April 26, 2023 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS April 26, 2023 4
Slide 5: Strong Performance In Current Industry Downturn
Strong Performance In Current Industry Downturn Guidance € millions Q1-23* Q1-23 ∆ Q4-22 ∆ Q1-22 Revenue Down 0%-10% 133.4 -3.1% -34.1% Orders 142.0 -21.3% -30.7% Gross Margin 61-63% 64.2% +1.9pts +4.1pts Opex +15-20% 44.0 +18.6% +10.3% Operating Income 37.6*** 41.7 -14.4% -49.0% Net Income 34.5 -14
Slide 6: Profit Efficiency Maintained in Challenging Industry Environment
Profit Efficiency Maintained in Challenging Industry Environment Q1-22/Q1-23 Q4-22/Q1-23 Revenue Net Income Revenue Net Income 240 160 € 202.4 - 34.1% € 137.7 - 3.1% € 133.4 200 Gross Margin € 133.4 Gross Margin 120 60.1% + 4.1 points 64.2% 62.3% + 1.9 points 64.2 % 160 OPEX OPEX € 39.9 MM + 10.3% €
Slide 7: Performance Significantly Above Last Industry Downturn
Performance Significantly Above Last Industry Downturn Revenue (€MM) Orders (€MM) 1,000 1,000 939 900 900 800 749 800 654 681 700 700 593 601 600 600 500 452 500 400 400 361 300 300 200 200 100 100 0 - 2017 LTM Q1-19 2021 LTM Q1-23 2017 LTM Q1-19 2021 LTM Q1-23 Operating Profit (€MM) Operating Margi
Slide 8: Capital Allocation Increasing
Capital Allocation Increasing 500 € 1.6 Billion Distributions Since 2011* 416.3 400 Dividends • ~ € 300 million distributed upon payment Share Repurchases 146.8 298.8 of upcoming dividend 300 € millions 77.8 • Current € 300 million share buyback program: 179.5 • ~ € 75 million per quarter 200 167.1
Slide 9: Strong Liquidity Position Maintained
Strong Liquidity Position Maintained 800 Cash and Deposits Net Cash Q1-23 vs. Q4-22 • Cash and deposits of € 644.9 million 700 672.2 671.7 644.9 • -€ 26.8 million primarily due to: 598.7 • + € 61.4 million cash flow from operations 600 • - € 77.8 million share repurchases • - € 5.4 million capitaliz
Slide 10: II. Market & Strategy
II. MARKET & STRATEGY April 26, 2023 10
Slide 11: Industry Downturn Continues in 2023
Industry Downturn Continues in 2023 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 war escalates 50 40 30
Slide 12: Assembly Market Estimates Reduced
Assembly Market Estimates Reduced Rebound Forecast 2024-2025 8.0 68.0% 80% Market Size YoY Growth Rate 7.0 6.5 6.1 5.8 60% 6.0 5.2 40% US$ billions 5.0 4.4 3.9 4.0 3.2 17.0% 18.1% 20% 21.2% TechInsights now forecasts 23.2% 3.0 0% downturn in 2023 2.0 -10.9% • Versus -16.8% prior forecast -20% 1.0 -2
Slide 13: Strategy Update
Strategy Update • Effectively navigating industry downturn Business • Expanded R&D investment continues for next generation applications • Significant progress on wafer level assembly adoption • Gross R&D spending increased 18.8% vs. Q1-22 • 3 hybrid bonding orders received in Q1-23 Development • Fo
Slide 14: III. Outlook
III. OUTLOOK April 26, 2023 14
Slide 15: Guidance Q2-23 & H1-23
Guidance Q2-23 & H1-23 € in millions Revenue Gross Margin Total Operating Expenses Flat Q2-23 € 133.4 +15% - 64.2% 62%-64% € 44.0 - -5% +25% Q1-23 Q2-23 Q1-23 Q2-23 Q1-23 Q2-23 Flat +/- 5% Revenue Gross Margin Total Operating Expenses HY1-23 € 416.4 -30% 60.5% ~63.5% € 77.9 +12% HY1-22 HY1-23* HY1-2
Slide 16: Financial Calendar
Financial Calendar 3-May-23 Goldman Sachs Small and Mid Cap Symposium (virtual) 9-May-23 Roadshow Paris, organized by KBC Securities 16-May-23 J.P. Morgan European TMT conference, London 24-May-23 ABN AMRO Benelux conference, Amsterdam 6-Jun-23 Besi Capital Markets Day, Radfeld, Austria 21-Jun-23 Ba
Slide 17: IV. Financial Appendix
IV. FINANCIAL APPENDIX April 26, 2023 17
Slide 18: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 800 70% 62.7% 700 60% 58.0% 600 51.1% 749 50% 600 500 516 593 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 19: Revenue/Order Trends
Revenue/Order Trends Quarterly Trends 350 Revenue Orders Q1-23 vs. Q4-22 • Revenue: -€ 4.3 million (-3.1%) 300 • -Lower computing and automotive IDMs and Asian subcons • Partial offset: +Increased shipments high-end 250 smartphones 214 202 205 200 • Orders: -€ 38.5 million (-21.3%) € millions 181 16
Slide 20: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 1,000 939.1 IDMs Subcontractors 900 800 45% 663.7 700 600.9 Orders 600 483.1 472.1 45% 500 39% 53% 43% 39% 400 32% 348.7 55% 300 39% 61% 55% 61% 47% 200 68% 55% 57% 100 61% 45% - 2018 2019 2020 2021 2022 LTM* * Last twelve month ended March 31, 2023 April 26
Slide 21: Gross Margin Trends
Gross Margin Trends Quarterly Trends Revenue Gross Margin 250 70% 68% Q1-23 vs. Q4-22 200 66% • 64.2% vs. 62.3% (1.9 points) • Above prior guidance 64.2% 64% • Favorable product mix • Net forex positive: Revenue +USD vs. EUR € millions 150 62.3% 62.3% 62% Costs -MYR/RMB vs. EUR 61.0% 60.1% 60% • Cos
Slide 22: Baseline Operating Expense Trends
Baseline Operating Expense Trends Baseline Opex Other Opex* Baseline Opex % of Revenue 44.0 60.0% 39.9 40.0 37.9 50.0% 37.1 11.2 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 30.0% 24.9% 24.6% 33.2 33.1 30.0 30.4 30.3 30.5 34.3 32.8 19.6% 20.0% 20.0 17.6% 15.1% 1
Slide 23: Headcount Trends
Headcount Trends 2,500 30.0% 2,141 1,994 25.0% 2,000 496 1,819 1,759 312 67 1,596 1,618 144 20.0% 62 95 1,500 • Temporary HC increased in Q1-23 to support Q2-23 revenue growth Headcount 15.0% 1,230 1,154 1,162 1,163 • Increasing European fixed HC to 1,000 1,081 1,060 support wafer level assembly 10.
Slide 24: Net Income Trends
Net Income Trends Q1-23 vs. Q4-22 Quarterly Trends • € 34.5 million (-€ 5.7 million) 80 € 75.6 Net Income 60% • -€ 7.2 million increase share-based compensation Net Margin • Partial offset: € 67.5 • +1.9 point gross margin increase Adj. Net Margin • Lower net financial expense 60 € 57.3 • Adjusted n
Slide 25: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 350 300 288.3 277.9 271.9 44.1% 250 200 37.4% 37.1% 37.6% 162.0 33.7% 150 120.1 100 50 0 2019 2020 2021 2022 LTM Total Cash Flow from Operations As % of Revenue April 26, 2023 25
Slide 26: 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 27: Share Repurchase Activity
Share Repurchase Activity Share Repurchases Average Cost per Share 150 146.8 100.0 90.0 125 80.0 € 69.84 € 69.37 70.0 Avg Cost per Share 100 60.0 77.8 € millions € 54.38 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 2023 • Approximately
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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