Mycronic Ab · OMXSTO:MYCR
Mycronic Ab — Q2 2023 Earnings Presentation
29 slides from Mycronic Ab's earnings presentation, Jul 14, 2023
Slide 1: Second quarter 2023
Second quarter 2023
Slide 2: CEO & President
CEO & President Anders Lindqvist 2
Slide 3: Agenda
Agenda • Q2 in short • Divisional development • Financials • Sustainability • Q&A • Appendix – Market update 3
Slide 4: Strong order intake
Strong order intake • Order intake increased 45% to SEK 1,748 (1,203) million • Driven by a very good performance in Pattern Generators • Net sales decreased 2% to SEK 1,245 (1,273) million • EBIT at SEK 170 (224) million • Impacted by around SEK 60 million in costs during the quarter linked to busi
Slide 5: Pattern Generators
Pattern Generators Share of Group’s net sales Net sales SEK 442 M EBIT SEK 191 M Healthy quarter 36% Order intake SEK 804 M EBIT margin 43% • The photomask market for both displays and semiconductors remained positive • Strong order intake • Increased 357% to SEK 804 (176) million • 6 systems: One P
Slide 6: High Flex
High Flex Consolidation of production • Strong demand from customers’ customers in the High Flex segments of aerospace, defense, medical and industrial applications • Europe and North America performed well, while China was weak • Order intake increased 4% • Net sales rose 13% • Initiated closing do
Slide 7: High Volume
High Volume Feeble demand in China • Investments among consumer electronics manufacturers in China remained at the same weak level as in the first quarter • Focus on replacing manual tasks with automation rather than increasing production capacity by investing in new production lines • High Volume w
Slide 8: Global Technologies
Global Technologies Mixed picture • Electrical testing of printed circuit boards and substrates recovered during the second quarter in terms of system sales, for which demand was driven by investments in AI and servers • In die bonding, demand was strong from aerospace and defense but remained weak
Slide 9: Outlook 2023 confirmed
Outlook 2023 confirmed Net sales 2023 SEK 5.5 billion 9
Slide 10: CFO & Sr VP Corporate Development
CFO & Sr VP Corporate Development Pierre Brorsson 10
Slide 11: Group net sales and EBIT margin rolling 12 months
Group net sales and EBIT margin rolling 12 months MSEK % 6000 50 45 5000 • Net sales R12 amounted to SEK 5,175 million 40 35 • EBIT margin R12 at 16% 4000 30 • Aftermarket revenue R12 increasing quarter-on-quarter 3000 25 since Q1 2021 20 2000 15 10 1000 5 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023
Slide 12: Group net sales and EBIT margin per quarter
Group net sales and EBIT margin per quarter MSEK % 1600 20 1400 18 • Net sales decreased 2% vs Q2 2022, mainly explained 16 1200 by a weak development in High Volume 14 1000 12 • Organic growth was -7% 800 10 • Weaker EBIT-margin mainly explained by around SEK 60 600 8 million linked to business dev
Slide 13: Group Q2 EBIT bridge
Group Q2 EBIT bridge MSEK -24% 1 224 34 -38 -13 -25 -13 170 EBIT Q2 Volume Gross R&D M&S G&A Other EBIT Q2 2022 effect margin 2023 effect % of Sales 2022 18% 45% -13% -12% -5% 2% % of Sales 2023 48% -13% -15% -7% 1% 14% 13
Slide 14: Divisional Q2 EBIT contribution
Divisional Q2 EBIT contribution MSEK 18% 14% 14
Slide 15: Strong cash flow from changes in working capital
Strong cash flow from changes in working capital MSEK YTD 2023 YTD 2022 Cash flow from operations • Decrease in working capital mainly attributable to before change in working capital 407 398 increased advance payments from customers and lower Change in working capital 426 -152 trade receivables Cas
Slide 16: CEO & President
CEO & President Anders Lindqvist 16
Slide 17: Sustainability
Sustainability • We continue to focus on increasing sustainability awareness throughout the organization. During the quarter, members of executive management have visited subsidiaries to discuss local sustainability initiatives. • As of 2024 reporting must be carried out in accordance with the EU Co
Slide 18: Q&A
Q&A 18
Slide 19: APPENDIX: Q2 2023 Market update
APPENDIX Q2 2023 Market update
Slide 20: Preliminary outcome 2022
Preliminary outcome 2022 Market summary and updates • Global electronics -2.1% to 2,428 BnUSD1) • Semiconductors 3.1% to 573 BnUSD1) • Optical components 7.3% to 12.9 BnUSD3) • Printed circuit boards and substrates 1.0% to 81.7 BnUSD4 • Display market -21.9% to 123 BnUSD5) • Display photomasks 24.4%
Slide 21: Forecasts 2023
Forecasts 2023 Market summary and updates • Global electronics industry -0.5% to reach 2,416 BnUSD1) • Semiconductor industry -10.1% to reach 515 BnUSD1) • Optical components market -2.7% to reach 12.4 BnUSD2) • Printed circuit boards and substrates market -9.3% to reach 74.1 BnUSD3) • Displays -0.5
Slide 22: Electronics industry systems
Electronics industry systems Yearly development by industry segment • Forecast -2.1% in 2022, to reach 2,428 USD billion 3 500 BnUSD, with strongest development in • Industrial 11.4% 3 000 • Automotive 5.0% • Aerospace / Defense 4.5% 2 500 • Modest decline of -0.5% forecast for 2023, to 2 000 reach
Slide 23: Semiconductors
Semiconductors Quarterly development USD billion 200 • 3.1% growth in 2022 and reached 573 BnUSD 175 • Forecast -10.1% in 2023 to reach 515 150 BnUSD 125 • 2022 to 2027 CAGR growth forecast at 4.6% to reach 716 BnUSD 100 75 50 25 0 2019 2020 2021 2022 2023F 2024F 2025F 2026F 2027F Actual Forecast So
Slide 24: SMT and Dispensing
SMT and Dispensing Market update SMT assembly equipment* • The segment declined by 17.9 percent in 2022 to USD 3,062 million, although the markets in Europe and North and South America reported growth.1) • First quarter market declined by 21.6 percent compared to same period in 2022, although market
Slide 25: Optical components for data/telecom
Optical components for data/telecom Long-term growth in key die bonding market driven by mega trends Optical components for data/telecom (BUSD) Healthy data/telecom long-term growth 21.4 • Optical components production is the main 11.4% 19.5 driver for die/lens attach and other adjacent 17.5 process
Slide 26: Pattern Generators: Display panel market
Pattern Generators Display panel market BUSD Display panel revenue BUSD AMOLED display panel revenue 250 70 5.3% 60 54 200 3.2% 51 53 50 48 157 43 42 45 150 137 140 144 123 122 131 40 100 30 20 50 10 0 0 2021A 2022F 2023F 2024F 2025F 2026F 2027F 2021A 2022F 2023F 2024F 2025F 2026F 2027F • Display ma
Slide 27: Pattern Generators: photomask market forecast
Pattern Generators Continued positive photomask market forecast after a very strong 2022 Billion Japanese Yen Thousands of square meters Mask Revenue Mask Area 200 30 25 1.3% 1.5% 150 20 100 15 10 50 5 0 0 2021A 2022A 2023F 2024F 2025F 2026F 2027F 2021A 2022A 2023F 2024F 2025F 2026F 2027F • Display
Slide 28: Increasing photomasks demand for AMOLED displays
Pattern Generators Increasing photomasks demand for AMOLED displays, 2022 was a very strong year Thousands of square meters Mask Area AMOLED 9 • Technology shift from LCD to AMOLED for mobile and IT displays 2.8% drives demand for AMOLED photomasks 8 • 2022 area growth of photomasks for AMOLED displ
Slide 29: Bringing tomorrow's electronics to life
Bringing tomorrow’s electronics to life MYCRONIC