BE Semiconductor Industries N.V. · EURONEXT:BESI
BE Semiconductor Industries — Q1 2019 Earnings Presentation
22 slides from BE Semiconductor Industries's earnings presentation, Apr 26, 2019
Slide 1: Investor Presentation Q1-2019 Results
INVESTOR PRESENTATION Q1-2019 RESULTS April 26, 2019
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 26, 2019 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS April 26, 2019 4
Slide 5: Besi Q1-19 Results Exceed Expectations
Besi Q1-19 Results Exceed Expectations Guidance € millions Q1-19* Q1-19 ∆ Q4-18 ∆ Q1-18 Revenue -15.0% 81.4 -12.0% -47.4% Orders - 83.4 +0.4% -59.5% Gross 55%-57% 55.9% -0.5 -0.6 Margin Opex +25%-30% 30.7 +18.5% -21.5% Net Income - 9.5 -58.1% -74.4% EPS Basic - 0.13 -56.7% -74.0% Net Cash - 229.7 +1
Slide 6: Solid Q1-19 Performance in Challenging Market
Solid Q1-19 Performance in Challenging Market Attractive Gross Margin Maintained Q1-18/Q1-19 Q4-18/Q1-19 Revenue Net Income Revenue Net Income 160 € 154.9 100% 100 100% € 92.5 - 12.0% 90% 90% 140 - 47.4% € 81.4 80% 80 80% 120 Gross Margin € 81.4 Gross Margin 56.5% - 0.6 points 55.9% 70% 56.4% - 0.5
Slide 7: Aligning Headcount and Overhead with Customer Demand
Aligning Headcount and Overhead with Customer Demand Headcount Headcount Trends 2,500 20.0% 2,137 18.0% 2,097 1,914 2,000 16.0% 383 343 176 1,759 1,695 67 14.0% 69 1,500 12.0% 10.0% 1,254 1,259 1,255 1,230 1,000 1,174 8.0% 6.0% 500 4.0% 500 495 483 462 452 2.0% 0 0.0% Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 E
Slide 8: Liquidity Trends
Liquidity Trends Cash and Deposits Net Cash 600 571.0 € 174.0 MM Dividend 507.5 Q1-19 vs. Q4-18 500 2017 475.5 • Net cash increased by € 30.3 million (+15.2%) to € 229.7 443.5 million 395.5 400 Q1-19 cash movements • +€ 47.8 million cash from operations € millions • -€ 12.8 million share repurchases
Slide 9: Share Repurchase Activity
Share Repurchase Activity 40 30.0 35.5 35 25.0 € 23.74 30 € 21.86 € 21.49 20.0 Avg Cost per Share 25 22.4 22.8 € millions 20 15.0 € 12.44 15 12.8 10.0 € 8.93 10 5.0 5 4.0 0 0.0 2015 2016 2017 2018 Q1-19 Share Repurchases Average Cost per Share • Regular buyback activity continues: • 0.6 million shar
Slide 10: Besi Shareholder Information
Besi Shareholder Information Symbol/ • BESI Avg. Daily Volume & Liquidity Index • Euronext Midcap AMX Avg Vol * Avg Price (€ thousands) 1000 25,000 Volume (thousands) Market Market • € 2.0 billion 800 20,000 ($2.3 billion) 600 15,000 Profile Cap* 400 10,000 Dividend • Pay out 40-100% of 200 5,000 Po
Slide 11: Key 2018 AGM Agenda Items
Key 2018 AGM Agenda Items Dividend 2018 • Cash dividend payment of € 1.67 per ordinary share • Ex dividend date: April 30, 2019 • Record date: May 2, 2019. Payment starting May 6, 2019 Changes in Supervisory Board Composition • Mr Lodewijk Hijmans van den Bergh joins Board. Four-year term (2023) • M
Slide 12: II. Market & Strategy
II. MARKET & STRATEGY April 26, 2019 12
Slide 13: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 6.0 30% 4.6 4.8 5.0 3.9 4.6 4.1 20% 26.8% 3.7 US$ billions 3.7 23.9% 18.3% 4.0 3.2 10% 16.1% 8.6% 3.0 0% -0.1% 2.0 -10% 1.0 -20% -17.5% -18.3% 0.0 -30% 2014 2015 2016 2017 2018E 2019E 2020E 2021E Source: VLSI Apri
Slide 14: Strategic Agenda 2019
Strategic Agenda 2019 Focus on opportunities to increase revenue and market share in next investment round Continue to align overhead with demand in current downturn Maintain attractive margins and cash flow generation Execute strategic initiatives to further reduce headcount and SG&A Incr
Slide 15: III. Outlook
III. OUTLOOK April 26, 2019 15
Slide 16: Guidance Q2-19
Guidance Q2-19 Revenue Gross Margin Operating Expenses € 81.4 +5% 55.9% 55%-57% € 30.7 -5% Q1-19 Q2-19 Q1-19 Q2-19 Q1-19 Q2-19 -15% April 26, 2019 16
Slide 17: Financial Calendar
Financial Calendar 9-May-19 Roadshow New York organized by Deutsche Bank 23-May-19 Roadshow Frankfurt organized by ING 29-May-19 ABN AMRO Benelux Equities Conference, Amsterdam 6-Jun-19 Analyst meeting, Amsterdam 25-Jun-19 Kempen Conference Small & Mid Cap, Paris 27-Jun-19 ABN AMRO Benelux Equities
Slide 18: IV. Financial Appendix
IV. FINANCIAL APPENDIX April 26, 2019 18
Slide 19: Revenue/Order Trends
Revenue/Order Trends Revenue Orders 240 Q1-19 vs. Q4-18 • Revenue: € 81.4 million (-12.0%) 206 • Better than guidance (-15.0%) 200 • Market weakness continues across products and end user markets 161 160 155 • Orders: € 83.4 million (+0.4%) € millions • Stabilizing order levels 120 117 • Some uptick
Slide 20: Gross Margin Trends
Gross Margin Trends Revenue Gross Margin 200 70% Q1-19 vs. Q4-18 • 55.9% vs. 56.4% 180 • At midpoint of guidance (55-57%) 161.1 160 154.9 65% • Net forex negative: Revenue USD flat vs. EUR Costs +MYR / CNY vs. EUR 140 116.7 120 60% € millions 58.0% Q1-19 vs. Q1-18 56.5% 56.5% 100 92.5 56.4% • 55.9%
Slide 21: Baseline Operating Expense Trends
Baseline Operating Expense Trends Base Opex Other Opex 45 39.1 40 35 7.4 31.6 30.7 0.9 29.1 30 25.9 2.8 5.4 25 0.2 20 15 31.7 30.7 26.3 25.7 25.3 10 5 0 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Baseline Opex 31.7 30.7 26.3 25.7 25.3 As % of Revenue 20.5% 19.1% 22.5% 27.8% 27.3% Other Operating Expenses Capital
Slide 22: Net Income Trends
Net Income Trends Net Income Net Margin 50 70% Q1-19 vs. Q4-18 € 47.2 • € 9.5 million (-€ 13.2 million) 45 • Net margin of 11.6% 60% • Lower revenue 40 € 37.1 • +€ 4.8 million opex increase due to: 50% • Higher share based compensation 35 • Absence of favorable year-end recordings € 29.3 • Net tax b
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