Slide 1: Investor Presentation Q2-2022 Results
INVESTOR PRESENTATION Q2-2022 RESULTS July 21, 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 July 21, 2022 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS July 21, 2022 4
Slide 5: H1-22 Up Solidly vs. H1-21
H1-22 Up Solidly vs. H1-21 Strategic Execution Keeps Profit Efficiency High Q1-22/Q2-22 H1-21/H1-22 Revenue Net Income Revenue Net Income 240 450 + 12.8% € 416.4 + 5.7% € 214.0 € 202.4 400 € 369.3 200 Gross Margin 350 Gross Margin 60.1% + 0.9 points 61.0% 60.5% - 60.5% 160 OPEX 300 OPEX € 39.9 MM -
Slide 6: Q2-22 Sequential Revenue & Net Income Up 5.7% and 12.0%, Respectively
Q2-22 Sequential Revenue & Net Income Up 5.7% and 12.0%, Respectively. Within Prior Guidance Guidance € millions Q2-22 Q2-22 ∆ Q1-22 ∆ Q2-21 Revenue Up 10% +/-5% 214.0 +5.7% -5.4% Orders 153.1 -25.2% -23.5% Gross Margin 59-61% 61.0% +0.9pts -1.1pts Opex Flat to down 5% 37.9 -5.0% +12.8% Net Income 7
Slide 7: Liquidity Position Enhanced
Liquidity Position Enhanced 800 Dividend Q2-22 vs. Q1-22 Cash and Deposits Net Cash € 270MM • Cash and deposits € 601.6 million decreased 696.6 700 672.2 by € 95.0 million (-13.6%) due to: • - € 269.5 million dividends paid 598.7 601.6 • - € 22.2 million share repurchases 600 • - € 5.2 million capit
Slide 8: Capital Allocation Trends
Capital Allocation Trends 400 € 1.2 Billion Distributions Since 2011* 350 Dividends 305.8 300 Share Repurchases 36.3 • € 306 million distributed YTD-22 250 • Share repurchase program to 209.5 € millions increase: 200 179.5 • Will complete € 185 million current 35.5 167.1 program by July 31 150 50.1
Slide 9: II. Market & Strategy
II. MARKET & STRATEGY July 21, 2022 9
Slide 10: Market Conditions Weakened Since Q2-22
Market Conditions Weakened Since Q2-22 Source: TechInsights, July 2022 July 21, 2022 10
Slide 11: Assembly Equipment Forecast Revised
Assembly Equipment Forecast Revised 8.0 80% Market Size YoY Growth Rate 69.7% 7.1 6.7 7.0 6.5 60% 6.0 40% US$ billions 5.0 4.6 4.5 29.6% 3.8 TechInsights forecasts $ 7.1 billion market in 4.0 3.2 20% 20.6% 8.2% 2022 (+8.2%) 3.0 -2.2% -5.0% 0% • Growth rates for 2022 and 2023 reduced 2.0 • 10.2% 8.
Slide 12: Strategy Update
Strategy Update • Supply chain constraints persist both at Besi and at customers • Impacts 2022 quarterly delivery schedules Production • Adjusting supply chain and HC to current order trends • Hybrid Bonding shipments continue as per plan • New 125,000 sq ft. leased Malaysian facility in Q3-22 • Gr
Slide 13: III. Outlook
III. OUTLOOK July 21, 2022 13
Slide 14: Guidance Q3-22
Guidance Q3-22 € in millions Q2-22 Q3-22 Seasonal Revenue Trends Q3E/Q2Δ -20% Average decline 2017-2021 (-11.6%) Revenue € 214.0 - -30% -25.0% 2022E* -7.9% 2021 -12.9% 2020 -3.2% 2019 Gross Margin 61.0% 60% - 62% -27.6% 2018 -6.3% 2017 • Q3-22E decrease above average Q2-Q3 decline -10% - past 5 year
Slide 15: Financial Calendar
Financial Calendar 26-Jul-22 Virtual US roadshow, organized by Goldman Sachs 24-Aug-22 Annual Needham Virtual SemiCap & EDA conference 7-Sep-22 ING Benelux conference, London 14-Sep-22 KeplerCheuvreux Autumn Conference, Paris 20-Oct-22 Besi Q3-2022 results 16/17-Nov-22 Morgan Stanley TMT Conference,
Slide 16: IV. Financial Appendix
IV. FINANCIAL APPENDIX July 21, 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% 749 749 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 Q2-22 vs. Q1-22 300 • Revenue: +€ 11.6 million (+5.7%) 250 226 208 209 203 202 205 214 • Low end of prior guidance 200 200 172 • Increased shipments for high-end mobile € millions 143 153 150 • Orders: € 153.1 million (-25.2%) 100 • Lower
Slide 19: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions IDMs Subcontractors 1,000 939.1 900 769.7 800 45% 700 Orders 600 41% 483.1 472.1 39% 53% 500 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 month ended June 30, 2022 July 21, 2022 19
Slide 20: Gross Margin Trends
Gross Margin Trends Quarterly Trends 250 70% 226.1 Revenue Gross Margin 208.3 214.0 68% 202.4 Q2-22 vs. Q1-22 200 171.7 66% • 61.0% vs. 60.1% (+0.9 points) 64% • High end of prior guidance 143.2 • More favorable product mix € millions 150 62.1% 62% 61.0% 61.0% 60.4% 60.1% 60% • Net forex positive: R
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 40.0% 3.6 30.4 30.3 30.0 8.9 30.0% 23.9 23.3 0.8 33.2 21.3% 21.3% 30.0 30.4 30.3 30.5 18.2% 20.0% 20.0 17.6% 15.1% 15.5% 14.6% 26.0 13.3
Slide 22: Headcount Trends
Headcount Trends 2,500 30.0% 2,308 2,238 2,141 25.0% 2,000 622 524 1,759 496 67 1,596 1,618 20.0% 62 95 1,500 • Increasing fixed headcount to support R&D and service/support for wafer level Headcount 15.0% assembly expansion 1,230 1,154 1,186 1,203 1,000 1,081 1,060 10.0% • Reducing temporary Asian
Slide 23: Net Income Trends
Net Income Trends Quarterly Trends Net Income 100 € 93.5 Net Margin 60% € 84.2 Adj. Net Margin Q2-22 vs. Q1-22 80 € 75.6 • € 75.6 million (+€ 8.1 million) € 67.1 € 67.5 • +5.7% revenue, 60 • +0.9 point gross margin € millions 41.3% 40.4% 39.1% 40% • 5.0% opex reduction, primarily incentive comp € 37
Slide 24: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 300 277.9 272.6 250 37.4% 37.1% 35.0% 200 33.7% 34.2% 184.1 168.2 162.0 28.4% 150 120.1 100 50 0 2017 2018 2019 2020 2021 LTM Total Cash Flow from Operations As % of Revenue July 21, 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 60 90.0 50.1 80.0 50 44.6 € 69.84 70.0 € 61.25 Avg Cost per Share 40 60.0 35.5 36.3 50.0 € millions 30 40.0 € 38.05 20 17.8 30.0 € 24.31 € 21.86 20.0 10 10.0 0 0.0 2018 2019 2020 2021 2022* • Approximately 550,000 treasury shares at
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