Slide 1: Investor Presentation Q3-2022 Results
INVESTOR PRESENTATION Q3-2022 RESULTS October 20, 2022
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 October 20, 2022 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS October 20, 2022 4
Slide 5: Q3-22 Results at Favorable End of Guidance Range
Q3-22 Results at Favorable End of Guidance Range Guidance € millions Q3-22* Q3-22 ∆ Q2-22 ∆ Q3-21 Revenue Down 20% - 30% 168.8 -21.1% -19.0% Orders 125.3 -18.2% -40.1% Gross Margin 60-62% 62.3% +1.3pts +1.9pts Opex Down 10% - 15% 34.0 -10.3% +11.8% Operating Income 64.7** 71.2 -23.0% -25.4% Net Inco
Slide 6: YTD Revenue Up 1.3%, Net Income Down 6.9%
YTD Revenue Up 1.3%, Net Income Down 6.9% Gross and Net Margins Remain Elevated Despite Downturn Q2-22/Q3-22 YTD-21/YTD-22 Revenue Net Income Revenue Net Income 240 700 € 214.0 - 21.1% + 1.3% € 585.1 600 € 577.6 200 € 168.8 Gross Margin Gross Margin 61.0% + 1.3 points 62.3% 500 60.5% + 0.6 points 61
Slide 7: Strong Cash Flow Generation Continues
Strong Cash Flow Generation Continues Cash and Net Cash Up 12.1% and 19.0% vs. Q3-21 800 Dividend Q3-22 vs. Q2-22 Cash and Deposits Net Cash € 270MM • Cash and deposits € 661.8 million up € 60.2 696.6 700 672.2 661.8 million (+10.0%) due to: • + € 112.7 million cash flow from operations 598.7 601.6
Slide 8: Enhanced Capital Allocation in 2022. Share Buybacks Increasing
Enhanced Capital Allocation in 2022. Share Buybacks Increasing 400 € 1.3 Billion Distributions Since 2011* 351.3 350 Dividends Share Repurchases 81.8 300 • Record € 351.3 million distributed YTD-22 250 209.5 € millions • € 185 million share repurchase 200 179.5 program completed: 35.5 167.1 • From J
Slide 9: II. Market & Strategy
II. MARKET & STRATEGY October 20, 2022 9
Slide 10: Market Conditions Have Weakened Significantly Since Q2
Market Conditions Have Weakened Significantly Since Q2 Source: TechInsights, October 2022 October 20, 2022 10
Slide 11: Assembly Forecast Also Revised Downwards for 2022 and 2023
Assembly Forecast Also Revised Downwards for 2022 and 2023 69.7% 80% 7.0 6.5 6.4 Market Size YoY Growth Rate 5.9 5.7 60% 6.0 Tech Insights forecasts $ 5.9 billion 5.0 4.6 4.5 40% market in 2022 (-10.0%) US$ billions 4.0 29.6% 3.8 • Growth rates for 2022 and 2023 3.2 20% 20.6% 12.9% adjusted: 3.0 0%
Slide 12: Strategy Update
Strategy Update • Adjusting supply chain and HC to current order trends Production • 13% HC reduction vs. Q1 • 65% reduction Asian temporary production staff • Increased R&D fixed headcount by 7.4% vs. year end • R&D up 49% YTD 2022, gross R&D investment up 25% • Supports HB and wafer level assembly
Slide 13: III. Outlook
III. OUTLOOK October 20, 2022 13
Slide 14: Guidance Q4-22 and FY 2022
Guidance Q4-22 and FY 2022 € in millions Q3-22 Q4-22 FY 2021 FY 2022E* -15% Revenue € 168.8 - € 749.3 -4% -25% Gross Margin 62.3% 60% - 62% 59.6% ~61% Operating Expenses € 34.0 ~+5% € 129.2 +14% -15% -15% * 2022E assumes midpoint of guidance for Q4-22 October 20, 2022 14
Slide 15: Financial Calendar
Financial Calendar 25-Oct-22 Roadshow London, organized by Deutsche Bank (virtual) 15-Nov-22 J.P. Morgan’s Global TMT Conference in Asia (virtual) 16/17-Nov-22 Morgan Stanley TMT Conference, Barcelona 23-Nov-22 Kempen London Conference 30-Nov-22 BofA Tech Hybrid Fieldtrip (virtual) 1-Dec-22 Roadshow
Slide 16: IV. Financial Appendix
IV. FINANCIAL APPENDIX October 20, 2022 16
Slide 17: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 800 70% 700 60% 58.0% 600 51.1% 749 720 50% 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 2017 2018
Slide 18: Revenue/Order Trends
Revenue/Order Trends 350 327 Quarterly Trends Revenue Orders Q3-22 vs. Q2-22 300 • Revenue: -€ 45.2 million (-21.1%) • Favorable end of guidance 250 226 200 208 209 203 202 205 214 • Lower high-end mobile and HPC 200 172 169 • Offset by automotive, industrial and hybrid bonding € millions 143 153 15
Slide 19: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions IDMs Subcontractors 1,000 939.1 900 800 45% 685.8 700 Orders 600 483.1 39% 41% 53% 500 472.1 39% 400 32% 348.7 55% 300 61% 61% 39% 47% 55% 59% 200 68% 100 61% 45% - 2018 2019 2020 2021 LTM* * Last twelve months ended September 30, 2022 October 20, 2022 19
Slide 20: Gross Margin Trends
Gross Margin Trends Quarterly Trends 250 Revenue Gross Margin 70% 226.1 208.3 214.0 68% 202.4 Q3-22 vs. Q2-22 200 171.7 66% • 62.3% vs. 61.0% (+1.3 points) 168.8 64% • Above prior guidance 143.2 • More favorable product mix € millions 150 62.1% 62.3% 62% 61.0% 61.0% 60.4% 60.1% 60% • Net forex posit
Slide 21: Baseline Operating Expense Trends
Baseline Operating Expense Trends Baseline Opex Other Opex* Baseline Opex % of Revenue 60.0% 39.9 40.0 37.9 50.0% 34.9 Operating Expenses (€ millions) 33.6 9.4 4.7 34.0 0.9 40.0% 3.6 30.4 30.3 30.0 8.9 30.0% 23.3 33.2 33.1 21.3% 30.0 30.4 30.3 30.5 18.2% 19.6% 20.0% 20.0 17.6% 15.1% 15.5% 14.6% 26.0
Slide 22: Headcount Trends
Headcount Trends 2,500 30.0% 2,308 2,238 2,141 2,015 25.0% 2,000 622 524 1,759 496 321 67 1,596 1,618 20.0% 62 95 1,500 • Reducing temporary Asian production HC to align with market conditions Headcount 15.0% 1,230 1,154 1,186 1,203 1,176 • Increasing European fixed headcount to 1,000 1,081 1,060 su
Slide 23: Net Income Trends
Net Income Trends Quarterly Trends Net Income 100 € 93.5 Net Margin 60% Q3-22 vs. Q2-22 € 84.2 Adj. Net Margin • € 57.3 million (-€ 18.3 million) 80 € 75.6 • -21.1% revenue € 67.1 € 67.5 • +1.3 points gross margin 60 € 57.3 • - € 2.7 million share-based compensation € millions 41.3% 40.4% 39.1% 37.0
Slide 24: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 350 300 287.1 277.9 37.4% 37.1% 37.9% 250 35.0% 33.7% 200 28.4% 184.1 168.2 162.0 150 120.1 100 50 0 2017 2018 2019 2020 2021 LTM Total Cash Flow from Operations As % of Revenue October 20, 2022 24
Slide 25: Dividend Trends
Dividend Trends Cumulative dividends of € 975.1 million since 2011, or € 12.78 per share Dividend (€) Dividend Payout Ratio 3.50 100% 3.33 100% 98% 98% 3.00 96% 2.50 2.32 95% 94% 2.00 92% 1.67 1.70 90% 90% 90% 1.50 1.01 88% 1.00 86% 0.50 84% 0.00 82% 2017 2018 2019 2020 2021 Dividend Dividend Payout
Slide 26: Share Repurchase Activity
Share Repurchase Activity Share Repurchases Average Cost per Share 90 90.0 81.8 80 80.0 70 € 69.84 70.0 Avg Cost per Share 60 60.0 50.1 € 53.60 50 50.0 € millions 44.6 40 35.5 40.0 € 38.05 30 30.0 € 24.31 20 € 21.86 17.8 20.0 10 10.0 0 0.0 2018 2019 2020 2021 2022* • Approximately 1.5 million treasu
Slide 27: 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