Mycronic Ab · OMXSTO:MYCR
Mycronic Ab — Q4 2023 Earnings Presentation
29 slides from Mycronic Ab's earnings presentation, Feb 8, 2024
Slide 1: Year-end Report 2023
Year-end Report 2023
Slide 2: President and CEO Anders Lindqvist
President and CEO Anders Lindqvist 2
Slide 3: Agenda
Agenda • Q4 in short • Divisional development • Financials • Sustainability • Q&A • Appendix – Market update 3
Slide 4: Q4 in short
Q4 in short Record finish to a record year • Healthy order intake, although not matching the extremely strong order intake from the fourth quarter of the previous year • Order intake declined 43% to SEK 1,448 (2,529) million • Best ever net sales, increasing 31% to SEK 1,968 (1,497) million • EBIT i
Slide 5: Pattern Generators
Pattern Generators Share of Group’s net sales Net sales SEK 878 M EBIT SEK 510 M Focus on execution 45% Order intake SEK 513 M EBIT margin 58% • The division focused on execution and delivery of mask writers • Order intake declined 72% compared with the extremely strong order intake in the correspon
Slide 6: High Flex
High Flex New pick-and-place machine • The MYPro A40 was launched, a new pick-and-place machine, that is the heart of a production line for surface mount technology • High Flex participated at Productronica, one of the world’s largest electronics production trade fairs • The MYPro A40 was exhibited
Slide 7: High Volume
High Volume International expansion • The division is continuing to focus on expanding its business outside China, accompanying • Consumer electronics customers mainly to South-East Asia • EV industry customers mainly to North America and Europe • Order intake rose 29%, compared with a very weak Q4
Slide 8: Global Technologies
Global Technologies AI-driven demand • AI-related demand was reflected in strong order intake and net sales in die bonding • The market for electrical testing of PCBs and substrates has been weak, with the exception of high layer count PCBs associated with AI • Order intake increased 84% • Net sales
Slide 9: Outlook 2024
Outlook 2024 Net sales SEK 6.25 billion 9
Slide 10: CFO and Sr VP Corporate Development
CFO and Sr VP Corporate Development Pierre Brorsson 10
Slide 11: Group net sales and EBIT margin rolling 12 months
Group net sales and EBIT margin rolling 12 months MSEK % 6000 50 45 5000 • Net sales R12 amounted to SEK 5,706 million 40 35 • EBIT margin R12 at 22% 4000 30 • Aftermarket revenue R12 at SEK 1,629 million 3000 25 • 29% of net sales 20 2000 • Increasing quarter-on-quarter since Q1 2021 15 10 1000 5 0
Slide 12: Group net sales and EBIT margin per quarter
Group net sales and EBIT margin per quarter MSEK % 2500 35 30 • Net sales increased 31% vs Q4 2022, to a new record 2000 25 level of SEK 1,968 million 1500 • Improved EBIT margin, driven mainly by Pattern 20 Generators 15 1000 • EBIT margin at 32% 10 500 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 After
Slide 13: Group Q4 EBIT bridge
Group Q4 EBIT bridge MSEK +136% 2 5 -19 620 -21 179 212 262 EBIT Q4 Volume Gross R&D M&S G&A Other EBIT Q4 2022 effect margin 2023 effect % of Sales 2022 18% 45% -12% -11% -6% 1% % of Sales 2023 54% -9% -8% -5% 0% 32% 13
Slide 14: Divisional Q4 EBIT contribution
Divisional Q4 EBIT contribution MSEK 32% 18% 14
Slide 15: Strong cash flow and net cash position
Strong cash flow and net cash position MSEK YTD 2023 YTD 2022 Cash flow from operations • Strong cash flow from operations before change in working capital 1,471 966 • Decrease in working capital mainly attributable to Change in working capital 138 -113 increased advance payments from customers Cash
Slide 16: President and CEO Anders Lindqvist
President and CEO Anders Lindqvist 16
Slide 17: Sustainability
Sustainability • Diversity and inclusion was the highest rated topic in Mycronic’s annual global employee engagement survey, conducted during the fourth quarter. • This supports our ambition to be an attractive employer • We also completed an update to our materiality assessment, in line with forthc
Slide 18: Mycronic
MYCRONIC
Slide 19: Appendix: Q4 2023 Market update
APPENDIX Q4 2023 Market update
Slide 20: Preliminary outcome 2023
Preliminary outcome 2023 Market summary and updates • Global electronics -0.4% to 2,417 BnUSD1) • Semiconductors -9.2% to 520 BnUSD1) • Optical components -8.1% to 11.5 BnUSD3) • Printed circuit boards and substrates -15.0% to 69.5 BnUSD4 • Display market -5.5% to 116 BnUSD5) • Display photomasks 0.
Slide 21: Forecasts 2024
Forecasts 2024 Market summary and updates • Global electronics industry +6.1% to reach 2,564 BnUSD1) • Semiconductor industry +11.3% to reach 579 BnUSD1) • Optical components market 17.8% to reach 13.5 BnUSD2) • Printed circuit boards and substrates market 4.1% to reach 72.4 BnUSD3) • Displays 6.7%
Slide 22: Electronics industry systems
Electronics industry systems Yearly development by industry segment • Modest decline of -0.4% forecast for 2023, to USD billion 3 500 reach 2,417 BnUSD, with strongest development in 3 000 • Automotive 10.0% • Aerospace / Defense 6.8% 2 500 • Medical 4.4% 2 000 • Growth of +6.1% forecast for 2024, t
Slide 23: Semiconductors
Semiconductors Quarterly development USD billion 200 • Forecast -9.2% decline in 2023 to reache 520 BnUSD 175 • Forecast +11.3% growth in 2024 to 150 reach 579 BnUSD 125 • 2022 to 2027 CAGR growth forecast at 4.1% to reach 702 BnUSD 100 75 50 25 0 2019 2020 2021 2022 2023F 2024F 2025F 2026F 2027F Ac
Slide 24: SMT and Dispensing
SMT and Dispensing Market update SMT assembly equipment* • The segment declined by 17.9% in 2022 to USD 3,062 million, although the markets in Europe and North and South America reported growth.1) • In 2023 the market declined by 26.5% compared with the previous year, although markets in Japan and E
Slide 25: Optical components for data/telecom
Optical components for data/telecom Long-term growth in key die bonding market driven by mega trends Optical components for data/telecom (BUSD) Healthy data/telecom long-term growth 24.8 • Optical components production is the main 16.7% 22.7 driver for die/lens attach and other adjacent 20.0 process
Slide 26: Pattern Generators: Display panel market
Pattern Generators Display panel market BUSD Display panel revenue BUSD AMOLED display panel revenue 250 70 6.3% 60 54 56 200 4.7% 52 50 46 48 140 146 42 42 150 131 136 40 123 116 124 100 30 20 50 10 0 0 2022A 2023E 2024F 2025F 2026F 2027F 2028F 2022A 2023E 2024F 2025F 2026F 2027F 2028F • Display ma
Slide 27: Pattern Generators: Photomask market
Pattern Generators Photomask market estimated to stay on a high level 2023 after a very strong 2022 Billion Japanese Yen Thousands of square meters Mask Revenue Mask Area 200 30 25 1.7% 1.7% 150 20 100 15 10 50 5 0 0 2022A 2023E 2024F 2025F 2026F 2027F 2022A 2023E 2024F 2025F 2026F 2027F • For 2023
Slide 28: Pattern Generators: AMOLED photomasks demand
Pattern Generators Increasing photomasks demand for AMOLED displays, estimated 2023 was another positive year Thousands of square meters Mask Area AMOLED 9 • AMOLED development for mobile, IT and TV displays drives 2.7% demand for AMOLED photomasks 8 • 2023 area growth of photomasks for AMOLED displ
Slide 29: Bringing tomorrow's electronics to life
Bringing tomorrow’s electronics to life MYCRONIC