Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q3 2018 Earnings Presentation
23 slides from Be Semiconductor Industries's earnings presentation, Oct 25, 2018
Slide 1: Investor Presentation: Q3 and YTD-2018 Results
INVESTOR PRESENTATION Q3 and YTD-2018 RESULTS OCTOBER 25, 2018
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 III. Strategic Review IV. Outlook V. Financial Appendix October 25, 2018 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS October 25, 2018 4
Slide 5: Revenue at Midpoint of Guidance. Operating Profit Exceeds Guidance.
Revenue at Midpoint of Guidance. Operating Profit Exceeds Guidance. Orders Rebound 25% vs. Q2-18 € millions Q3-18 ∆ Q2-18 ∆ Q3-17 Revenue 116.7 -27.6% -26.7% Orders 107.9 +25.0% -33.2% Gross Margin 58.0% +1.5 -0.7 Operating 38.6 -34.9% -38.9% Income Net Income 29.3 -37.9% -44.6% EPS Basic 0.39 -38.1
Slide 6: Solid YTD-18 Performance Despite Softening Market Conditions
Solid YTD-18 Performance Despite Softening Market Conditions. Margins Stay at Elevated Levels YTD-18/YTD-17 Q3-18/Q2-18 Revenue Net Margin Revenue Net Margin 480 100% € 161.1 100% -1.5% 160 € 439.5 440 € 432.7 -27.6% 90% 90% 140 400 80% € 116.7 80% 360 Gross Margin Gross Margin 120 57.4% - 0.5 point
Slide 7: Liquidity Trends
Liquidity Trends Cash and Deposits Net Cash 600 571.0 € 174.0 MM 527.8 Dividend 2017 500 Q3-18 vs. Q2-18 • Net cash of € 160.1 million, up € 49.9 million or 45.3% 443.5 € 65.3 MM • CF from Ops of € 65.7 million grew substantially due to Dividend 395.5 reduced working capital needs 400 2016 Q3-18 cas
Slide 8: Shareholder Distributions and Capital Allocation Mix
Shareholder Distributions and Capital Allocation Mix Cumulative Distributions: € 470.7 MM Since 2011* 196.5 Expanding share repurchases as % of mix 200 22.5 12% • 0.9 million shares bought through Q3-18 180 • Average price € 24.57 or € 22.5 million 160 • 0.6 million shares bought in Q3-18 140 • Regu
Slide 9: II. Market
Besi nam Il. MARKET October 25, 2018 9
Slide 10: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 6.0 26.8% 30% 23.9% 5.0 5.0 4.6 4.7 4.5 20% 16.1% US$ billions 4.0 3.9 3.7 9.9% 10% 3.0 3.2 2.6% 3.0 0% -3.5% 2.0 -10% 1.0 -17.5% -20% -22.0% 0.0 -30% 2013 2014 2015 2016 2017 2018E 2019E 2020E Source: VLSI Octobe
Slide 11: Temporary Pause or Market Downturn?
Temporary Pause or Market Downturn? • Favorable GDP growth environment • High capacity utilization rates • Not consistent with prolonged downturns • 2018 assembly equipment growth rate decelerating vs. large 2017 capacity build • Mobile internet demand correction in H1-18 • Memory correction in Q3-1
Slide 12: III. Strategic Review
III. STRATEGIC REVIEW October 25, 2018 12
Slide 13: Aligning Overhead with Current Market Conditions
Aligning Overhead with Current Market Conditions Fixed & Temporary Headcount 2,400 • 2018 activities: 2,097 (-16%) • Estimated 16% headcount reduction vs. Q2 2,000 1,914 • 269 temps (78%) 343 • Moved remaining tooling to Asia 176 1,762 E • Initiated transfer of 100 European functions to Asia 74 • R&
Slide 14: Besi Revenue Initiatives
Besi Revenue Initiatives Expand in Japanese Market FOWLP, automotive TCB, Panel supply chain Increase Wafer Molding to presence with Asian subcons Grow computing Korean and US business in memory response to Big customers Expand share of Korean and Data and Cloud needs Increase Roll out new Chinese A
Slide 15: IV. Outlook
IV. OUTLOOK October 25, 2018 15
Slide 16: Besi H2 Seasonal Revenue Trends
Besi H2 Seasonal Revenue Trends Q3/Q2Δ Q4E/Q3Δ Average -16.1% decrease Average -11.0% decrease -27.6% 2018 -22.5% 2018E* -6.3% 2017 -3.8% 2017 -13.5% 2016 -1.3% 2016 -30.8% 2015 +7.9% 2015 -10.9% -14.0% 2014 2014 -18.9% 2013 -9.7% 2013 -14.3% -24.5% 2012 2012 * Assumes midpoint of Q4-18 guidance • B
Slide 17: Guidance Q4-18 and FY 2018
Guidance Q4-18 and FY 2018 Q4-18E/Q3-18 2018E/2017* Revenue Revenue € 116.7 € 592.8 -20% 11% - - -25% 12% Q3-18 Q4-18 2017 2018 Gross Margin Gross Margin 58.0% 57.1% 54% 56% - - 56% 57% Q3-18 Q4-18 2017 2018 Operating Expenses Operating Expenses € 29.1 €129.2 Approx. Approx. Equal Equal Q3-18 Q4-18
Slide 18: Financial Calendar
Financial Calendar 14/15-Nov-18 TMT Morgan Stanley Conference, Barcelona 20-Nov-18 ABN AMRO Benelux Equities Conference, Frankfurt 20-Nov-18 ING Benelux Conference, Brussels 21-Nov-18 Kempen Conference, London 29-Nov-18 Degroof Petercam Benelux Conference, Zürich 11-Dec-18 Annual CEO Summit, New Yor
Slide 19: V. Financial Appendix
V. FINANCIAL APPENDIX October 25, 2018 19
Slide 20: Revenue/Order Trends
Revenue/Order Trends Q3-18 vs. Q2-18 • Revenue: € 116.7 million (-27.6%) Revenue Orders • Lower mobile in challenging market 280 • Partial offset: strength in automotive 240 • Orders: € 107.9 million (+25.0%) 240 • Increased mobile demand by Asian customers 206 • Increased IDM demand for logic and m
Slide 21: Gross Margin Trends
Gross Margin Trends Revenue Gross Margin 200 70% Q3-18 vs. Q2-18 • 58.0% vs. 56.5% 180 170.0 • Above guidance (54-56%) 159.3 161.1 160 153.2 154.9 65% • Net forex positive: Revenue +USD, +CHF Costs -MYR vs. EUR 140 116.7 120 110.2 58.7% 60% euro in millions 58.0% 57.3% Q3-18 vs. Q3-17 56.5% 56.5% 10
Slide 22: Base Line Operating Expense Trends
Base Line Operating Expense Trends Base Opex Other Opex 45 39.1 40 34.1 34.2 35 7.4 31.6 30.5 30.4 4.4 3.0 0.9 29.1 30 3.3 4.9 2.9 25 20 15 29.7 31.2 31.7 30.7 25.6 27.1 26.2 10 5 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Baseline Opex 25,6 29,7 27,1 31,2 31,7 30,7 26,2 As % of Revenue 23,2% 17,5%
Slide 23: Net Income Trends
Net Income Trends Q3-18 vs. Q2-18 • € 29.3 million (-€ 17.9 million) • Net margin 25%+ despite revenue decrease Net Income Net Margin • -27.6% revenue 60 70% • +2.0 point effective tax rate • +0.9 million in financial expense, net € 52.4 € 52.9 • Partial offset: 50 € 47.2 60% • +1.5 points gross mar
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