Be Semiconductor Industries N.v. · EURONEXT:BESI

Be Semiconductor Industries — Q3 2020 Earnings Presentation

25 slides from Be Semiconductor Industries's earnings presentation, Oct 22, 2020

  1. Slide 1: Investor Presentation Q3-2020 Results

    INVESTOR PRESENTATION Q3-2020 RESULTS October 22, 2020

  2. 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

  3. Slide 3: Table of Contents

    Table of Contents I. Key Highlights II. Market & Strategy III. Outlook IV. Financial Appendix October 22, 2020 3

  4. Slide 4: I. Key Highlights

    I. KEY HIGHLIGHTS October 22, 2020 4

  5. Slide 5: Q3-20 Results At High End of Guidance Range

    Q3-20 Results At High End of Guidance Range Guidance € millions Q3-20* Q3-20 ∆ Q2-20 ∆ Q3-19 Revenue -10% to -25%* 108.3 -12.9% +20.7% Orders 94.9 -6.3% +15.5% Gross Margin 58%-60% 60.8% -1.2 +5.7 Opex -10% to -15%* 23.9 -16.4% -1.2% Net Income 34.0 -14.6% +77.1% EPS Basic 0.47 -14.5% +80.8% Net Cas

  6. Slide 6: Strong Quarterly and Year to Date Growth

    Strong Quarterly and Year to Date Growth Q3-19/Q3-20 YTD-19/YTD-20 Revenue Net Margin Revenue Net Margin 120 360 € 108.3 € 323.9 + 20.7% 320 + 22.8% 100 100% 100% € 89.7 € 263.8 280 Gross Margin Gross Margin 55.1% + 5.7 points 60.8% 55.7% + 4.4 points 60.1% 80 240 OPEX OPEX 75% 75% Revenue (€ millio

  7. Slide 7: Liquidity Expanded

    Liquidity Expanded Cash and Deposits Net Cash Q3-20 vs. Q2-20 600 • Cash and deposits increased € 197.9 million: 564.5 • Includes net proceeds from 2027 Convertible Note 527.8 issuance in August € 73.5 MM 500 475.5 Dividend • As well as significant free cash flow from operations 2019 427.6 408.4 • N

  8. Slide 8: II. Market & Strategy

    II. MARKET & STRATEGY October 22, 2020 8

  9. Slide 9: Chip Making Climate Index Has Risen Significantly Since 2019 Trough

    Chip Making Climate Index Has Risen Significantly Since 2019 Trough. Upward Trajectory Interrupted by COVID-19 Pandemic Source: VLSI October 13, 2020 October 22, 2020 9

  10. Slide 10: VLSI Forecasts Renewed Assembly Equipment Growth Cycle

    VLSI Forecasts Renewed Assembly Equipment Growth Cycle Assembly Equipment Market Market Size YoY Growth Rate 5.0 4.5 4.3 4.4 50% 4.0 4.0 3.5 3.1 3.4 30% US$ billions 3.1 3.0 3.0 25.8% 16.4% 10% 12.5% 10.2% 10.6% 4.5% 2.0 -2.5% -10% -15.9% 1.0 -30% -31.5% 0.0 -50% 2015 2016 2017 2018 2019 2020E 2021E

  11. Slide 11: Joint Development Agreement With Applied Materials

    Joint Development Agreement With Applied Materials Industry Shifting Towards Smaller, Integrated, Heterogeneous Chip Designs For Leading-edge 5G, AI, HPC, Data Storage, And Auto Applications Industry’s First Complete, One-Stop Solution Create Best Hybrid Bonding Process Suite Front & Back End Proces

  12. Slide 12: III. Outlook

    III. OUTLOOK October 22, 2020 12

  13. Slide 13: Guidance Q4-20

    Guidance Q4-20 € in millions Q3-20 Q4-20 2019 2020E 0% +17% Revenue € 108.3 - € 356.2 - -15% +21% Gross Margin 60.8% 58% - 60% 55.8% ~60% 0% +2% Operating Expenses € 23.9 - € 106.9 - +5% -15% +3% October 22, 2020 13

  14. Slide 14: Financial Calendar

    Financial Calendar 18-Nov-20 Morgan Stanley virtual European TMT conference 24-Nov-20 Kempen’s 17th (virtual) London conference 2-Dec-20 Credit Suisse Virtual Investor Conference 10-Dec-20 ING Benelux Conference New York, virtual 12-Jan-21 23rd Annual Needham Virtual Growth Conference 13-Jan-21 Bere

  15. Slide 15: IV. Financial Appendix

    IV. FINANCIAL APPENDIX October 22, 2020 15

  16. Slide 16: Revenue/Order Trends

    Revenue/Order Trends 160 Quarterly Trends Q3-20 vs. Q2-20 • Revenue: € 108.3 million (-12.9%) Revenue Orders 119 124 • At high end of guidance (-10 to -25%) 120 108 • Primarily mobile 101 101 93 92 95 • Both US and Asian demand € millions 90 91 81 83 83 82 80 • Orders: € 94.9 million (-6.3%) • Seaso

  17. Slide 17: Besi's Long Term Revenue Trends Suggest Renewed Cycle With Increased Profitability

    Besi’s Long Term Revenue Trends Suggest Renewed Cycle With Increased Profitability € millions Revenue Gross Margin Gross Margin 700 70% 59.8% 600 60% 56.8% 593 55.8% 51.1% 500 -32% 50% 424 +19% 400 39.5% 424 40% 34.1% 379 356 300 302 30% 4 year 351 averages 200 20% 164 191 100 10% 0 0% 2006 2007 200

  18. Slide 18: Orders: Return to More Typical IDM/Subcontractor Mix

    Return to More Typical IDM/Subcontractor Mix Post Large IDM Investment in Last Cycle € millions 800 IDMs Subcontractors 700 680.9 600 35% 483.1 500 415.0 Orders 400 373.8 32% 348.3 348.7 300 53% 49% 39% 49% 68% 200 65% 61% 100 47% 51% 51% - 2015 2016 2017 2018 2019 TTM* * Trailing twelve months (TTM

  19. Slide 19: Gross Margin Trends

    Gross Margin Trends Quarterly Trends 140 70% Q3-20 vs. Q2-20 124.3 Revenue Gross Margin 68% • 60.8% vs. 62.0% 120 108.3 66% • Exceeded high end of guidance (58%-60%) 100 92.7 89.7 92.4 91.3 64% • 12.9% lower revenue levels 81.4 62.0% • Favorable product mix, labor efficiencies keep € millions 60.8%

  20. Slide 20: 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 1,665 14.0% 67 1,621 1,596 120 92 169 152 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% 1,054 6.0% 500 4.0% 508 502 462 453 458

  21. Slide 21: Overhead Remains Under Control

    Overhead Remains Under Control Baseline Opex Other Opex* Baseline Opex % of Revenue 60.0% 33.0 30.7 50.0% 30.0 28.6 Operating Expenses (€ millions) 9.1 26.8 7.4 40.0% 25.2 24.2 5.9 3.3 23.9 1.8 3.0 2.8 30.0% 28.7% 25.3% 26.1% 25.0% 20.0 24.0% 18.2% 19.5% 20.0% 23.3 23.5 23.9 22.4 22.2 22.6 21.1 10.0

  22. Slide 22: Net Income Trends

    Net Income Trends Quarterly Trends Q3-20 vs. Q2-20 Net Income Tax benefit Net Margin Adj. Net Margin • € 34.0 million (-€ 5.8 million) 45 70% € 39.8 • Net margin 31.3% vs. 32.0% 40 € 33.7 € 34.0 60% • - 12.9% revenue decrease 35 50% • - 1.2 point gross margin decrease 30 • + € 4.7 million (16.4%) op

  23. Slide 23: Capital Allocation Trends. € 736.1 Million Distributed Since 2011

    Capital Allocation Trends. € 736.1 Million Distributed Since 2011 € millions 209.5 200 35.5 • Primarily dividends Dividends 167.1 • € 480.6 million paid out over past five years Share Repurchases • Dividend pay out ratio 95%+ (5 year avg.) 150 44.7 • Stock repurchases increasing as % of mix • € 76.5

  24. Slide 24: Strong Cash Flow Generation Helps Fund Capital Allocation Program

    Strong Cash Flow Generation Helps Fund Capital Allocation Program € millions % of Revenue 200 184.1 180 168.2 160 146.6 140 120.1 120 98.7 35.0% 35.2% 100 33.7% 86.5 28.4% 80 26.3% 24.8% 60 40 20 0 2015 2016 2017 2018 2019 TTM* Total Cash Flow from Operations As % of Revenue * Trailing twelve months

  25. Slide 25: Share Repurchase Activity

    Share Repurchase Activity 50 40.0 44.6 45 € 35.15 35.0 40 35.5 30.0 35 Avg Cost per Share € 24.31 25.0 30 € 23.74 € millions € 21.86 25 22.4 22.8 20.0 20 15.0 15 € 12.44 10.0 € 8.93 9.5 10 4.0 5.0 5 0 0.0 2015 2016 2017 2018 2019 2020* Share Repurchases Average Cost per Share * Share purchases inclu

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