Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q3 2017 Earnings Presentation
19 slides from Be Semiconductor Industries's earnings presentation, Oct 26, 2017
Slide 1: Investor Presentation Q3-2017 Results
INVESTOR PRESENTATION Q3-2017 RESULTS OCTOBER 26, 2017 October 26, 2017 Page 1
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. Financial Review III. Strategic Highlights IV. Outlook October 26, 2017 Page 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS October 26, 2017 Page 4
Slide 5: Besi Posts Strong Q3-17 and YTD-17 Results
Besi Posts Strong Q3-17 and YTD-17 Results € millions Q3-17 ∆ Q2-17 ∆ Q3-16 YTD-17 ∆ YTD-16 Revenue € 159.3 (6.3%) +68.9% € 439.5 +55.7% Orders € 161.5 +24.1% +107% € 531.5 +88.2% Net Income € 52.9 +1.0% +219% € 129.6 +167% Net Cash € 165.4 +25.8% +25.4% € 165.4 +25.4% October 26, 2017 Page 5
Slide 6: New Benchmark Levels of Revenue, Profit and Margins Achieved in Q3-17 and YTD-17
New Benchmark Levels of Revenue, Profit and Margins Achieved in Q3-17 and YTD-17 Q3-17/Q3-16 YTD-17/YTD-16 Revenue Net Income Revenue Net Income 160 € 159.3 100% € 439.5 450 100% +68.9% 90% +55.7% 90% 140 400 80% 80% € 94.3 350 120 Gross Margin € 282.3 Gross Margin 50.5% +8.2 points 58.7% 70% 70% 50
Slide 7: II. Financial Review
II. FINANCIAL REVIEW October 26, 2017 Page 7
Slide 8: Revenue/Order Trends
Revenue/Order Trends Quarterly Trends Q3-17 vs. Q2-17 Revenue Orders • Revenue: € 159.3 million (-6.3%) 280 • As per guidance and seasonal trend 240 240 • Lower die attach shipments for mobile devices 200 • Orders: € 161.5 million (+24.1%) 170 159 162 • Increased demand by Asian subcontractors for (
Slide 9: Gross Margin Trends
Gross Margin Trends Quarterly Trends Revenue Gross Margin 200 70% Q3-17 vs. Q2-17 180 170.0 • 58.7% vs. 57.3% 159.3 160 65% • +Leading market position in upcycle 140 • +Material cost efficiencies 109.0 110.2 58.7% • - Net forex negative: Revenue -USD vs. EUR 120 60% 94.3 93.1 57.3% Costs -MYR vs. EU
Slide 10: Base Line Operating Expense Trends
Base Line Operating Expense Trends Base Opex Other Opex 40 34.1 35 29.8 30.5 30.4 29.2 29.1 28.2 4.4 30 3.3 4.9 4.3 4.1 5.5 25 5.7 20 15 29.7 25.6 27.1 23.5 24.8 24.1 24.3 10 5 0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Baseline Opex 23.5 24.8 24.1 24.3 25.6 29.7 27.1 As % of Revenue 29.8% 22.8% 25
Slide 11: Net Income Trends
Net Income Trends Quarterly Trends Net Income Net Margin 60 70% € 52.4 € 52.9 60% Q3-17 vs. Q2-17 50 • € 52.9 million (+€ 0.5 million) 50% • Net margin reaches 33.2% vs. 30.8% 40 despite 6.3% revenue decrease (euro in millions) 40% 30 • Gross margin improvement, cost control € 24.0 € 24.3 30.8% 33.2
Slide 12: Liquidity Trends
Liquidity Trends Cash and Deposits Debt Net Cash 350 € 65.3 MM Dividend 2016 Q3-17 vs. Q2-17 304.8 309.0 297.4 • Net cash +€ 33.9 million (+25.8%) to 300 € 165.4 million 263.1 Q3-17 cash movements 250 • +€ 42.2 million cash from operations € 45.4 MM Dividend • -€ 5.0 million share repurchases 2015 •
Slide 13: III. Strategic Highlights
III. STRATEGIC HIGHLIGHTS October 26, 2017 Page 13
Slide 14: Strategic Update 2017
Strategic Update 2017 • Successful execution of revenue and cost initiatives continues • Increased addressable market share • Leading technology position in advanced packaging aids market share and margin development • Scalability of business model improved • Production ramp to € 600 million annual
Slide 15: Cash Generation of Business Model Enhanced
Cash Generation of Business Model Enhanced Inventory / % of Revenue Cash Conversion Cycle* € 80 72 30% 240 69 208 € 70 65 25% 200 € 60 25.6% 54 55 169 20% 160 149 € 50 18.3% 127 € 40 15.4% 14.7% 15% 120 110 13.5% € 30 10% 80 € 20 5% 40 € 10 €0 0% 0 2013 2014 2015 2016 Q3-17 2013 2014 2015 2016 Q3-17
Slide 16: IV. Outlook
IV. OUTLOOK October 26, 2017 Page 16
Slide 17: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 4.7 30% 3.9 4.5 4.0 20% 26.8% 3.6 23.1% 3.0 3.2 10% (US$ billions) 3.0 13.5% 4.7% 0% 2.0 -10% 1.0 -20% -22.0% -17.5% 0.0 -30% 2013 2014 2015 2016 2017E 2018E Besi Revenue Source: VLSI October 2017 Revenue YoY
Slide 18: Q4-17 Guidance
Q4-17 Guidance Revenue Gross Margin Operating Expenses € 159.3 58.7% € 30.4 0% 55% 5% to - to 10% 57% 10% Q3-17 Q4-17 Q3-17 Q4-17 Q3-17 Q4-17 • Q4-17E sequential revenue decrease compares to average Q3-Q4 decline of 9.3% past five years • Based on guidance, Q4-17 revenue and operating income will in
Slide 19: Financial Calendar
Financial Calendar 27-Oct-17 Roadshow London, organized by ING 9-Nov-17 Roadshow Paris, organized by ING 15-Nov-17 Morgan Stanley TMT Conference, Barcelona 15/16-Nov-17 ABN AMRO, Pan European Days, New York 21-Nov-17 ABN AMRO Benelux Equities Conference, Frankfurt 22-Nov-17 Kempen London Conference,
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