Slide 1: Investor Presentation Q2-23 Results
INVESTOR PRESENTATION Q2-23 RESULTS July 27, 2023
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 27, 2023 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS July 27, 2023 4
Slide 5: Q2-23 Revenue and Net Income Up 21.8% and 52.5% vs. Q1-23
Q2-23 Revenue and Net Income Up 21.8% and 52.5% vs. Q1-23 Revenue and Operating Profit Above Mid-point of Guidance Guidance € millions Q2-23* Q2-23 ∆ Q1-23 ∆ Q2-22 Revenue Up 15%-25% 162.5 + 21.8% - 24.1% Orders 112.6 - 20.7% - 26.5% Gross Margin 62%-64% 65.6% + 1.4pts + 4.6pts Opex Down 0-5% 43.7 -
Slide 6: H1-23 Affected by Broad Based Weakness in Computing Applications
H1-23 Affected by Broad Based Weakness in Computing Applications Q1-23/Q2-23 H1-22/H1-23 Revenue Net Income Revenue Net Income 200 € 416.4 € 162.5 - 28.9% + 21.8% 400 € 133.4 160 Gross Margin Gross Margin € 295.9 64.2% + 1.4 points 65.6% 60.5% + 4.5 points 65.0 % OPEX 300 OPEX € 44.0 MM - 0.7% € 43.
Slide 7: Continued Outperformance vs. Last Industry Downturn
Continued Outperformance vs. Last Industry Downturn Revenue (€MM) Orders (€MM) 1,000 1,000 939 900 900 800 749 800 681 700 700 593 602 600 600 560 500 500 383 400 400 357 300 300 200 200 100 100 0 - 2017 LTM Q2-19 2021 LTM Q2-23 2017 LTM Q2-19 2021 LTM Q2-23 Operating Profit (€MM) Operating Margin 3
Slide 8: Capital Allocation Increasing
Capital Allocation Increasing 500 € 1.7 Billion Distributions Since 2011* 416.3 400 366.8 Dividends • € 367 million distributed YTD-23 Share Repurchases 146.8 including € 289 million in Q2-23 300 144.7 € millions • Current € 300 million share buyback program: 179.5 • ~3.7 million shares purchased th
Slide 9: Strong Liquidity Position Maintained
Strong Liquidity Position Maintained 800 Q2-23 vs. Q1-23 Cash and Deposits Net Cash • Cash and deposits of € 378.3 million 700 672.2 671.7 • -€ 266.6 million primarily due to: 644.9 • + € 28.7 million cash flow from operations 598.7 • - € 289.1 million capital allocation 600 • - € 5.3 million capita
Slide 10: II. Market & Strategy
II. MARKET & STRATEGY July 27, 2023 10
Slide 11: Industry Downturn Appears to Have Bottomed in Q2-23
Industry Downturn Appears to Have Bottomed in Q2-23 TechInsights Global Chip Making Climate Trend Index 120 7/22: Memory 110 Inventory 2/21: Intel, TSMC, Correction Samsung hike capex 100 Temperature in Degrees F 90 2/20: COVID-19 80 outbreak 70 Growth Decline Line 60 5/19: U.S.- China trade war esc
Slide 12: Assembly Market Rebound Forecast 2024-2025
Assembly Market Rebound Forecast 2024-2025 8.0 68.5% 80% Market Size YoY Growth Rate 7.0 6.6 6.6 5.5 6.1 60% 6.0 5.1 40% US$ billions 5.0 4.2 3.9 4.0 21.5% 18.3% 20% 3.2 22.5% 7.7% TechInsights forecasts 23.4% downturn 3.0 0% in 2023 2.0 • Unchanged versus last forecast -16.2% -20% 1.0 -29.7% -23.4%
Slide 13: Strategy Update
Strategy Update • Effectively navigating industry downturn at high profitability levels • Overhead aligned with market conditions Business • 47% and 12% reduction in temps and total HC vs. Q2-22 • 2023 Strategic Review completed • Preparing for next industry upturn • Continued R&D investment in futu
Slide 14: III. Outlook
III. OUTLOOK July 27, 2023 14
Slide 15: Guidance Q3-23
Guidance Q3-22 € in millions Q2-23 Q3-23 Seasonal Revenue Trends Q3E/Q2Δ -20% Average decline 2018-2022 (-14.5%) Revenue € 162.5 - -30% -25.0% 2023E* -21.1% 2022 -7.9% 2021 -12.9% 2020 Gross Margin 65.6% 62% - 64% -3.2% 2019 -27.6% 2018 • Q2/Q3-23E decrease comparable to 2018 -10% - downturn Operati
Slide 16: Financial Calendar
Financial Calendar 31-Jul-23 Roadshow New York, organized by Morgan Stanley 22-Aug-23 4th Annual Needham virtual Semiconductor & SemiCap conference 6-Sep-23 Deutsche Bank TMT conference, London 13-Sep-23 Roadshow Helsinki, organized by ING 14-Sep-23 Roadshow Stockholm, organized by ING 15/16-Nov-23
Slide 17: IV. Financial Appendix
IV. FINANCIAL APPENDIX July 27, 2023 17
Slide 18: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 800 70% 63.9% 700 60% 58.0% 600 51.1% 749 50% 500 516 593 556 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 19: Revenue/Order Trends
Revenue/Order Trends 350 Quarterly Trends Revenue Orders Q2-23 vs. Q1-23 300 • Revenue: +€ 29.1 million (+21.8%) • Above mid point of prior guidance 250 202 205 214 • Primarily increased mobile for high-end & 200 169 181 mainstream applications € millions 153 163 150 125 138 133 142 113 • Orders: -€
Slide 20: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 1,000 939.1 IDMs Subcontractors 900 800 45% 663.7 700 560.4 Orders 600 483.1 472.1 45% 500 39% 53% 39% 44% 400 32% 348.7 55% 300 39% 61% 55% 61% 47% 200 68% 55% 56% 100 61% 45% - 2018 2019 2020 2021 2022 LTM* * Last twelve months ended June 30, 2023 July 27,
Slide 21: Gross Margin Trends
Gross Margin Trends Quarterly Trends 250 75% Revenue Gross Margin 214.0 202.4 Q2-23 vs. Q1-23 200 70% • 65.6% vs. 64.2% (+1.4 points) 168.8 133.4 162.5 • Above prior guidance 137.7 65.6% • Favorable product mix € millions 150 65% 64.2% 62.3% • Cost control efforts 62.3% 100 60.1% 61.0% 60% • Net for
Slide 22: Baseline Operating Expense Trends
Baseline Operating Expense Trends Baseline Opex Other Opex* Baseline Opex % of Revenue 50.0 50.0% 44.0 45.0% 43.7 39.9 40.0% 40.0 Operating Expenses (€ millions) 37.9 9.5 37.1 11.2 35.0% 9.4 4.7 34.0 2.8 0.9 30.0% 30.4 30.3 30.0 24.9% 24.6% 25.0% 21.0% 19.6% 20.0% 17.6% 15.1% 15.5% 34.3 34.2 15.0% 1
Slide 23: Headcount Trends
Headcount Trends 2,500 30.0% 2,141 1,994 1,968 25.0% 2,000 496 1,819 1,759 312 279 67 1,596 1,618 144 • HC aligned with market conditions: 20.0% 62 95 • Temporary HC down 47% from Q2-22 1,500 • Total HC down 12% Headcount 15.0% • Increasing European fixed HC to support 1,230 1,154 1,162 1,163 1,169
Slide 24: Net Income Trends
Net Income Trends Quarterly Trends 80 € 75.6 Net Income 60% Q2-23 vs. Q1-23 € 67.5 Net Margin • € 52.6 million (+€ 18.1 million) Adj. Net Margin • +21.8% higher revenue € 57.3 60 € 52.6 • +1.4 point gross margin increase • +€ 3.8 million decrease share-based compensation € millions € 40.2 40 € 34.5
Slide 25: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 350 48.1% 300 289.5 277.9 271.9 250 200 37.4% 37.1% 37.6% 162.0 33.7% 150 120.1 100 50 0 2019 2020 2021 2022 LTM Total Cash Flow from Operations As % of Revenue July 27, 2023 25
Slide 26: Dividend Trends
Dividend Trends Cumulative dividends of € 1.2 billion since 2011, or € 15.63 per share Dividend (€) Dividend Payout Ratio Dividend 3.50 3.33 100% Dividend Payout Ratio 98% 98% 3.00 2.85 96% 2.50 95% 94% 2.00 92% 92% 1.67 1.70 90% 90% 90% 1.50 1.01 88% 1.00 86% 0.50 84% 0.00 82% 2018 2019 2020 2021 2
Slide 27: Share Repurchase Activity
Share Repurchase Activity Share Repurchases Average Cost per Share 160 100.0 146.8 144.7 90.0 € 76.83 80.0 120 € 69.84 70.0 Avg Cost per Share 60.0 € millions € 54.38 80 50.0 40.0 € 38.05 50.1 44.6 30.0 40 35.5 € 24.31 € 21.86 20.0 17.8 10.0 0 0.0 2018 2019 2020 2021 2022 2023 • Approximately 3.6 mi
Slide 28: 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