Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q2 2024 Earnings Presentation
25 slides from Be Semiconductor Industries's earnings presentation, Jul 25, 2024
Slide 1: Investor Presentation Q2-24 Results
INVESTOR PRESENTATION Q2-24 RESULTS July 25, 2024
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 July 25, 2024 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS July 25, 2024 4
Slide 5: Q2-24 Results At High End of Guidance. Orders Up 64.5% vs. Q2-23
Q2-24 Results At High End of Guidance. Orders Up 64.5% vs. Q2-23 Guidance € millions Q2-24* Q2-24 ∆ Q1-24 ∆ Q2-23 Revenue Flat (up/down 5%) 151.2 +3.3% -7.0% Orders 185.2 +45.0% +64.5% Gross Margin 63-65% 65.0% -2.2pts -0.6pts Opex Down 15-20% 49.0 -14.9% +12.1% Operating Income 46.2** 49.3 +21.1% -
Slide 6: H1-24 Results Show Improving Revenue, Orders and Gross Margins
H1-24 Results Show Improving Revenue, Orders and Gross Margins Despite Ongoing Weakness in Mainstream Markets Q1-24/Q2-24 H1-23/H1-24 Revenue Net Income Revenue Net Income 350 + 3.3% € 151.2 + 0.5% € 297.5 160 € 295.9 € 146.3 300 Gross Margin Gross Margin 67.2% - 2.2 points 65.0% 250 65.0% + 1.1 poi
Slide 7: Strong Liquidity Position Maintained. New Senior Note Offering
Strong Liquidity Position Maintained. New Senior Note Offering Provides Funds for Next Decade of Growth Q2-24 vs. Q1-24 Cash and Deposits, as adjusted* • Cash and deposits of € 257.2 million 800 Cash and Deposits • - € 189.9 million primarily due to: Net Cash • - € 186.3 million capital allocation 7
Slide 8: II. Market & Strategy
II. MARKET & STRATEGY July 25, 2024 8
Slide 9: Assembly Equipment Expected to Rebound Strongly Post 2023 Trough
Assembly Equipment Expected to Rebound Strongly Post 2023 Trough Besi Addressable Market Segments Expected to Outperform Growth Rate (29.6%) 22.5% 69.4% (15.9%) (25.8%) 9.3% 34.0% 22.7% 7.4 2023-2028E 2024 growth revised downwards reflecting slow Market Assembly Market ($B) CAGR 6.6 mainstream recov
Slide 10: Strategy Update
Strategy Update • Contrasting assembly market order trends past 12 months • Accelerating AI demand driven by 2.5/3D and photonics applications • AI-related advanced packaging orders ~50% of total for past 12 months Business • Slow recovery for mainstream assembly markets: • Smartphones and automotiv
Slide 11: III. Outlook
Besi comm Ill. OUTLOOK July 25, 2024 nu
Slide 12: Guidance Q3-24
Guidance Q3-24 € in millions Q2-24 Q3-24 Seasonal Revenue Trends +5 Q3E/Q2Δ Revenue € 151.2 to Average change 2019-2023 (-13.8%) -5% Flat (+/-5%) 0.0% 2024E -24.1% 2023 -21.1% 2022 -7.9% 2021 Gross Margin 65.0% 64% - 66% -12.9% 2020 -3.2% 2019 -13.8% 0 - Operating Expenses € 49.0 -5% -15% July 25, 2
Slide 13: Financial Calendar
Financial Calendar 30-Jul-24 Panel discussion Advent Global Opportunities (virtual) 01-Aug-24 NDR New York organized by Goldman Sachs 22-Aug-24 26th Annual Needham Semiconductor & SemiCap conference (virtual) 04-Sep-24 Deutsche Bank European TMT Conference, London 11-Sep-24 Kepler Cheuvreux Autumn C
Slide 14: IV. Financial Appendix
IV. FINANCIAL APPENDIX July 25, 2024 14
Slide 15: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 800 70% 65.6% 700 60% 58.0% 600 51.1% 749 50% 608 500 516 593 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 16: Revenue/Order Trends
Revenue/Order Trends 250 Quarterly Trends Revenue Orders Q2-24 vs. Q1-24 • Revenue: +€ 4.9 million (+3.3%) 200 185 • Above mid point of guidance 163 160 166 151 • Higher shipments for photonics and 2.5D assembly 146 150 133 142 128 123 127 € millions 113 • Orders: +€ 57.5 million (+45.0%) 100 • Hybr
Slide 17: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions IDMs Subcontractors 1,000 939.1 900 800 45% 700 663.7 606.6 Orders 600 548.3 500 472.1 45% 53% 39% 46% 39% 400 48% 55% 300 55% 61% 61% 47% 200 55% 54% 52% 100 45% - 2020 2021 2022 2023 LTM* * Last twelve months ended June 30, 2024 July 25, 2024 17
Slide 18: Gross Margin Trends
Gross Margin Trends Quarterly Trends 200 75% Revenue Gross Margin 162.5 159.6 Q2-24 vs. Q1-24 151.2 150 133.4 146.3 70% • 65.0% vs. 67.2% (-2.2 points) 123.3 • High end of prior guidance • Less favorable product mix € millions 67.2% 100 65.6% 64.6% 65.1% 65.0% 65% • Net forex negative: Revenue USD v
Slide 19: Baseline Operating Expense Trends
Baseline Operating Expense Trends 60.0 57.6 50.0% 45.0% 49.0 50.0 40.0% 44.0 43.7 21.2 9.0 Operating Expenses (€ millions) 35.0% 40.0 37.1 36.9 37.8 11.2 9.5 34.0 2.8 2.2 30.0% 3.3 0.9 27.3% 26.5% 30.0 24.9% 24.6% 24.9% 25.0% 22.3% 21.0% 19.6% 20.0% 20.0 40.0 34.3 34.2 35.6 36.4 15.0% 33.1 32.8 33.6
Slide 20: Headcount Trends
Headcount Trends 2,500 30.0% 2,141 2,062 1,996 25.0% 2,000 1,819 1,870 496 236 279 134 1,618 144 20.0% 95 • Increasing European and Asian 1,500 fixed headcount to support wafer Headcount 15.0% level assembly expansion 1,193 1,211 1,233 1,154 1,162 1,000 1,060 • Temp Asian HC increase to support 10.0
Slide 21: Net Income Trends
Net Income Trends Quarterly Trends Net Income Share-based compensation* Q2-24 vs. Q1-24 60 40% Net Margin • € 41.9 million (+€ 7.9 million) 50 35% • +€ 10.0 million lower share-based compensation 34.4% • +3.3% higher revenue 40 32.4% • Adjusted net income* of € 48.5 million vs. € 50.1 million € mill
Slide 22: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 350 Total Cash Flow from Operations As % of Revenue 300 277.9 271.9 250 208.6 200 37.4% 37.1% 37.6% 183.6 36.0% 162.0 150 31.6% 100 50 0 2020 2021 2022 2023 LTM* * Last twelve months ended June 30, 2024 July 25, 2024 22
Slide 23: Dividend Trends
Dividend Trends Cumulative dividends of € 1.4 billion since 2011, or € 17.78 per share* Dividend (€) Dividend Payout Ratio 3.50 3.33 100% 98% 98% 3.00 2.85 97% 96% 95% 2.50 94% 2.15 92% 92% 2.00 1.70 90% 90% 1.50 88% 1.01 1.00 86% 84% 0.50 82% 0.00 80% 2019 2020 2021 2022 2023 Dividend Dividend Payo
Slide 24: Share Repurchase Activity
Share Repurchase Activity Share Repurchases Average Cost per Share 250 160.0 213.4 € 143.43 140.0 200 120.0 Avg Cost per Share 146.8 100.0 € millions 150 € 83.40 80.0 € 69.84 100 60.0 € 54.38 € 38.05 50.1 40.0 50 29.6 17.8 20.0 0 0.0 2020 2021 2022 2023 2024 • Approximately 1.4 million treasury shar
Slide 25: 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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