Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q1 2020 Earnings Presentation
21 slides from Be Semiconductor Industries's earnings presentation, Apr 30, 2020
Slide 1: Investor Presentation Q1-2020 Results
INVESTOR PRESENTATION Q1-2020 RESULTS April 30, 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 April 30, 2020 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS April 30, 2020 4
Slide 5: Q1-20 Operating Profit Exceeds Expectations
Q1-20 Operating Profit Exceeds Expectations Revenue, Orders and Net Income Rebound vs. Q1-19 Guidance € millions Q1-20* Q1-20 ∆ Q4-19 ∆ Q1-19 Revenue -10% - +10%* 91.3 -1.2% +12.2% Orders 118.6 +18.0% +42.2% Gross Margin 54%-56% 56.7% +0.4 +0.8 Opex +35% - +40%* 33.0 +31.0% +7.5% Net Income 13.9 -58
Slide 6: Q1-20 Profit Metrics Better Than Anticipated
Q1-20 Profit Metrics Better Than Anticipated Q1-19/Q1-20 Q4-19/Q1-20 Revenue Net Margin Revenue Net Margin 100 100% 100 - 1.2% € 92.4 € 91.3 € 91.3 + 12.2% 90% € 81.4 100% 80% 80 80 Gross Margin Gross Margin 55.9% + 0.8 points 56.7% 70% 56.3% + 0.4 points 56.7% OPEX OPEX 75% Revenue (€ millions) 60%
Slide 7: COVID-19 Update
COVID-19 Update Besi operating with varying restrictions • Headcount: nearly 70% located in Asia • Malaysia: Deemed essential business. Permitted to resume full operations recently • Fully operational China • Singapore: Deemed essential business. Open but most staff working remotely • Adjusting Asia
Slide 8: Strong Liquidity Position to Help Navigate COVID-19 Challenge
Strong Liquidity Position to Help Navigate COVID-19 Challenge Cash and Deposits Net Cash 600 527.8 Solid Liquidity Base 507.5 € 122.4 MM • Total cash/deposits grew to €427.6 million Q1-20 500 475.5 Dividend • Net cash increased by € 18.0 million (+13.8%) to 2018 427.6 € 148.3 million 408.4 • Untappe
Slide 9: Capital Allocation Trends
Capital Allocation Trends € millions 209.5 200 35.5 Dividends 167.1 Share Repurchases 150 44.7 • € 729.5 million distributions since 2011: • € 1.01 dividend/share for 2019 payable from May 8, 2020 (€ 73.5 million) 100 88.8 174.0 76.6 • € 70.2 million shares repurchased under 67.4 23.5 3.1 current €
Slide 10: II. Market Environment
II. MARKET ENVIRONMENT April 30, 2020 10
Slide 11: Semi Equipment Climate Index Changed Markedly During Q1-20
Semi Equipment Climate Index Changed Markedly During Q1-20 Source: VLSI April 27, 2020 April 30, 2020 11
Slide 12: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 4.4 4.3 50% 3.7 3.9 4.0 3.5 3.6 30% US$ billions 3.1 3.0 2.8 27.3% 3.0 25.8% 10% 22.9% 12.5% 9.2% 2.0 -2.5% -10% -8.3% 1.0 -16.5% -30% -29.3% 0.0 -50% 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E Source: VL
Slide 13: III. Outlook
III. OUTLOOK April 30, 2020 13
Slide 14: Guidance Q2-20
Guidance Q2-20 € in millions Revenue Gross Margin Operating Expenses -10% € 91.3 +5% - 56.7% 56%-58% € 33.0 - -15% +25% Q1-20 Q2-20 Q1-20 Q2-20 Q1-20 Q2-20 -15% -15% April 30, 2020 14
Slide 15: IV. Financial Appendix
IV. FINANCIAL APPENDIX April 30, 2020 15
Slide 16: Revenue/Order Trends
Revenue/Order Trends Revenue Orders Q1-20 vs. Q4-19 160 • Revenue: € 91.3 million (-1.2%) • Mid-point of guidance • Primarily shipments for high-end logic 119 applications 120 101 93 90 92 91 • Orders: € 118.6 million (+18.8) 81 83 83 82 • +Mobile applications € millions 80 • IDMs and Asian supply c
Slide 17: Gross Margin Trends
Gross Margin Trends Revenue Gross Margin 120 70% Q1-20 vs. Q4-19 • 56.7% vs. 56.3% • Exceeded guidance (54-56%) 100 92.7 92.4 • Favorable product mix 89.7 91.3 65% 81.4 • Net forex neutral: Revenue USD flat vs. EUR 80 Costs MYR/RMB flat vs. EUR 60% € millions 56.7% 60 55.9% 56.0% 56.3% Q1-20 vs. Q1-
Slide 18: Baseline Operating Expense Trends
Baseline Operating Expense Trends 33.0 Baseline Opex Other Opex* 30.7 30 7.1 Operating Expenses (€ millions) 5.4 26.8 25.2 2.1 24.2 1.5 0.9 20 25.3 25.9 24.7 23.7 23.3 10 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 * Other Opex includes both short term and long-term incentive comp, forex effects, restructuring co
Slide 19: 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 67 14.0% 1,596 1,621 120 92 62 1,500 12.0% Temp % of Total Headcount 10.0% 1,222 1,230 1,000 1,041 1,081 1,071 8.0% 6.0% 500 4.0% 508 502 462 453 458 2.0% 0 0.0% 2016 2017 2018 2019
Slide 20: Net Income Trends
Net Income Trends 40 70% Q1-20 vs. Q4-19 • € 13.9 million (- € 19.8 million) 35 € 33.7 • Absence € 11.6 million tax benefit in Q4-19 60% • + € 4.9 million higher share-based compensation 30 • Net margin 15.2% vs. 36.5% (23.9% ex tax benefit) 50% 25 € millions 40% Q1-20 vs. Q1-19 € 18.9 € 19.2 36.5%
Slide 21: Share Repurchase Activity
Share Repurchase Activity 50 35.0 € 33.61 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 5.0 5 4.0 3.1 0 0.0 2015 2016 2017 2018 2019 2020* Share Repurchases Average Cost per Share • 7.9 million treasury share
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