Slide 1: Investor Presentation Q2-2020 Results
INVESTOR PRESENTATION Q2-2020 RESULTS July 28, 2020
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 press release, including, but not limited to, statements relating to ex
Slide 3: Table of Contents
Table of Contents I. Key Highlights II. Market & Strategy III. Outlook IV. Financial Appendix July 28, 2020 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS July 28, 2020 4
Slide 5: Q2-20 Results Exceed Expectations
Q2-20 Results Exceed Expectations Guidance € millions Q2-20* Q2-20 ∆ Q1-20 ∆ Q2-19 Revenue +5% to +25%* 124.3 +36.1% +34.1% Orders 101.3 -14.6% +22.5% Gross Margin 56%-58% 62.0% +5.3 +6.0 Opex -10% to -15%* 28.6 -13.3% +6.7% Net Income 39.8 +186.3% +110.6% EPS Basic 0.55 +189.5% +111.5% Net Cash 93.
Slide 6: Strong Quarterly and Half Year Growth
Strong Quarterly and Half Year Growth Q2-19/Q2-20 HY1-19/HY1-20 Revenue Net Margin Revenue Net Margin 140 240 € 124.3 220 € 215.6 + 34.1% + 23.8% 120 100% 200 100% € 174.1 € 92.7 Gross Margin 180 Gross Margin 100 + 3.8 points 56.0% + 6.0 points 62.0% 55.9% 59.7% OPEX 160 OPEX 75% 75% Revenue (€ mill
Slide 7: Increased Profitability vs. Last Cycle
Increased Profitability vs. Last Cycle Trough Post Trough € millions € millions 2015 2019 Nine Months 2016 Nine Months 2020E* 350 160 140 140 350 +2.0% 356.2 349.2 120 318.1 120 +12.7% 32.3% 25.8% 100 300 Operating Income Operating Income 100 102.7 300 91.9 Revenue 80 Revenue +58.7% 282.3 +85.4% 80
Slide 8: Solid Liquidity Position to Help Navigate Uncertain Environment
Solid Liquidity Position to Help Navigate Uncertain Environment Cash and Deposits Net Cash 600 Q2-20 vs. Q1-20 527.8 • Net cash decreased by € 54.7 million € 122.4 MM € 73.5 MM 507.5 Dividend Dividend (-36.9%) to € 93.6 million 500 475.5 2018 2019 • Principally due to: 427.6 • - € 73.5 million divid
Slide 9: Capital Allocation Trends
Capital Allocation Trends € millions 209.5 200 35.5 Dividends • € 732.6 million distributions since 2011: 167.1 Share Repurchases • € 79.7 million YTD including May dividend 150 44.7 • € 73.3 million shares repurchased under current € 75 million authorization • Average price of € 22.58 100 88.8 • 7.
Slide 10: II. Market Environment
II. MARKET ENVIRONMENT July 28, 2020 10
Slide 11: Semi Equipment Climate Index Changed Significantly in H1-20
Semi Equipment Climate Index Changed Significantly in H1-20 Source: VLSI June 24, 2020 July 28, 2020 11
Slide 12: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 4.5 4.3 4.6 50% 4.2 4.0 3.3 3.6 30% 3.5 US$ billions 3.1 3.0 3.0 25.8% 15.6% 10% 11.3% 9.5% 9.7% 12.5% 2.0 -2.5% -10% -15.9% 1.0 -30% -31.5% 0.0 -50% 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E Source: VL
Slide 13: III. Outlook
III. OUTLOOK July 28, 2020 13
Slide 14: Guidance Q3-20
Guidance Q3-20 € in millions Q2-20 Q3-20 Seasonal Revenue Trends Q3E/Q2Δ -10% Average decline (-16.3%) Revenue € 124.3 - -25% -17.5% -3.2% -27.6% -6.3% Gross Margin 62.0% 58% - 60% -13.5% -30.8% • Besi quarterly revenue development influenced by -10% seasonal trends € 28.6 - • Orders typically ramp
Slide 15: Financial Calendar
Financial Calendar 4/5-Aug-20 Virtual roadshow US, organized by Morgan Stanley 13-Aug-20 Needham conference, virtual 1-Sep-20 ING Benelux London conference, virtual 3-Sep-20 DB European TMT conference, virtual 9-Sep-20 KeplerCheuvreux/Rabobank Autumn conference, virtual 22-Oct-20 2020 Third Quarter
Slide 16: IV. Financial Appendix
IV. FINANCIAL APPENDIX July 28, 2020 16
Slide 17: Revenue/Order Trends
Revenue/Order Trends 160 Quarterly Trends Q2-20 vs. Q1-20 Revenue Orders 119 124 • Revenue: € 124.3 million (+36.1%) 120 101 • Exceeds high end of guidance 101 • Primarily mobile, lesser extent computing € millions 93 90 92 91 83 83 82 80 81 • Increased Chinese demand, continuing trend from H2-19 40
Slide 18: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 800 700 680.9 600 35% 483.1 500 Orders 402.6 400 373.8 32% 348.3 348.7 300 52% 49% 39% 49% 65% 200 68% 100 51% 51% 61% 48% - 2015 2016 2017 2018 2019 LTM* IDMs Subcontractors * Through June 30, 2020 July 28, 2020 18
Slide 19: Gross Margin Trends
Gross Margin Trends Quarterly Trends 140 70% Q2-20 vs. Q1-20 124.3 Revenue Gross Margin 68% • 62.0% vs. 56.7% 120 66% • Exceeded high end of guidance (56%-58%) 100 92.7 89.7 92.4 91.3 64% • Higher than anticipated shipments as full operations 81.4 62.0% resumed € millions 62% 80 60% • More favorable
Slide 20: Revenue and Gross Margin Cycles Since 2006
Revenue and Gross Margin Cycles Since 2006 € millions Revenue Gross Margin Gross Margin 700 70% 600 59.5% 60% 593 56.8% 55.8% 51.1% 500 50% 424 -40.0% 400 39.5% 40% 34.1% 379 +20.6% 356 300 302 30% 4 year 351 318 averages 264 200 20% 164 191 100 10% 0 0% * Nine months assuming midpoint of Q3-20 guid
Slide 21: Baseline Operating Expense Trends
Baseline Operating Expense Trends 33.0 Baseline Opex Other Opex* 30.7 30 28.6 7.0 Operating Expenses (€ millions) 5.4 26.8 3.3 25.2 2.1 24.2 1.5 0.9 20 25.3 26.0 25.3 24.7 23.7 23.3 10 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 * Other Opex includes both short term and long-term incentive comp, forex effec
Slide 22: Headcount Trends
Headcount Trends Europe/NA Fixed HC Asia Fixed HC Temporary HC Temp % of Total 18.0% 2,040 2,000 16.0% 316 1,759 1,669 1,691 14.0% 67 1,621 1,596 120 92 169 62 1,500 12.0% Temp % of Total Headcount 10.0% 1,222 1,230 1,000 1,041 1,081 1,071 1,067 8.0% 6.0% 500 4.0% 508 502 462 453 458 455 2.0% 0 0.0%
Slide 23: Net Income Trends
Net Income Trends Q2-20 vs. Q1-20 45 70% • € 39.8 million (+€ 25.9 million) Net Income € 39.8 • Net margin 32.0% vs. 15.2% 40 60% 35 Net Income € 33.7 • 36.1% revenue increase Net Margin 50% • 5.3 points gross margin increase 30 Adj. Net Margin • € 4.4 million (13.3%) opex decrease due to: € million
Slide 24: Share Repurchase Activity
Share Repurchase Activity 50 35.0 € 33.58 44.6 45 30.0 40 35.5 35 € 24.31 25.0 € 23.74 Avg Cost per Share € 21.86 30 20.0 € millions 25 22.4 22.8 15.0 20 € 12.44 15 10.0 € 8.93 10 6.2 5.0 5 4.0 0 0.0 2015 2016 2017 2018 2019 2020* Share Repurchases Average Cost per Share • 7.3 million treasury share