Mycronic Ab · OMXSTO:MYCR
Mycronic Ab — Q1 2024 Earnings Presentation
29 slides from Mycronic Ab's earnings presentation, Apr 18, 2024
Slide 1: First quarter 2024
—~ = . Wee First quarter2024 !
Slide 2: President and CEO Anders Lindqvist
President and CEO Anders Lindqvist 2
Slide 3: Agenda
Agenda • Q1 in short • Divisional development • Financials • Sustainability • Q&A • Appendix – Market update 3
Slide 4: Q1 in short
Q1 in short Good start to the year • Order intake at the same favorable level as last year • Increased 2% to SEK 1,645 (1,617) million • Net sales increased 39% to SEK 1,692 (1,219) million • Driven mainly by Pattern Generators • Second-strongest EBIT ever, at SEK 599 (182) million • EBIT margin inc
Slide 5: Pattern Generators
Pattern Generators Share of Group’s net sales Net sales SEK 838 M EBIT SEK 543 M Strong net sales and EBIT 50% Order intake SEK 645 M EBIT margin 65% • The photomask market for displays was stable in Q1 after having slowed slightly in Q4 2023, while the photomask market for semiconductors remained a
Slide 6: High Flex
High Flex Slow start to 2024 • Demand in Europe and the US slowed slightly, while China showed indications of recovery • Positive feedback from customers regarding stencil printer, which combines well with the new and faster pick-and-place machine MYPro A40 • Order intake declined 13% • Net sales de
Slide 7: High Volume
High Volume Market recovery • Recovery in demand in both China and foreign markets • Customers in both consumer electronics and the electric vehicle industry • Order intake rose 73% • Net sales declined 9% • Gross margin at 41 (44)% • EBIT slightly lower, at SEK 55 (60) million • Order backlog at SE
Slide 8: Global Technologies
Global Technologies Strong quarter • The die bonding business line launched a product for active alignment of optical components • Will address additional steps in customers’ production process • Agreement signed to acquire Vanguard Automation, a small company which has developed a technology and au
Slide 9: Outlook 2024 confirmed
Outlook 2024 confirmed Net sales SEK 6.25 billion 9
Slide 10: CFO and Sr VP Corporate Development Pierre Brorsson
CFO and 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 % 7000 50 45 6000 • Net sales R12 amounted to SEK 6,179 million 40 5000 35 • EBIT margin R12 at 27% 4000 30 • Aftermarket revenue R12 at SEK 1,646 million 25 • 27% of net sales 3000 20 • Increasing quarter-on-quarter since Q1 2021 2000 15 10 100
Slide 12: Group net sales and EBIT margin per quarter
Group net sales and EBIT margin per quarter MSEK % 2500 40 35 • Net sales increased 39% vs Q1 2023, to SEK 1,692 2000 30 million 1500 25 • Strong EBIT margin, primarily driven by Pattern 20 Generators 1000 15 • EBIT margin at 35% 10 500 5 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 Aftermarket System
Slide 13: Group Q1 EBIT bridge
Group Q1 EBIT bridge MSEK +230% -13 599 38 -2 -10 183 221 182 EBIT YTD Volume Margin R&D M&S G&A Other EBIT YTD 2023 effect effect 2024 % of Sales 2023 15% 47% -13% -14% -6% 1% % of Sales 2024 58% -10% -8% -5% 1% 35% 13
Slide 14: Divisional Q1 EBIT contribution
Divisional Q1 EBIT contribution MSEK 35% 15% 14
Slide 15: Impressive cash flow and very strong net cash position
Impressive cash flow and very strong net cash position MSEK Q1 2024 Q1 2023 Cash flow from operations • Strong cash flow from operations before change in working capital 610 235 • Decrease in working capital primarily driven by lower Change in working capital 127 167 trade receivables Cash flow from
Slide 16: President and CEO Anders Lindqvist
President and CEO Anders Lindqvist 16
Slide 17: Sustainability
Sustainability • Compiled environmental data showed that Mycronic’s emissions declined in 2023 compared with the preceding year • Mainly due to lower electricity consumption from product use, reduced volumes of purchased materials and a decrease in the use of natural gas • However, electricity consu
Slide 18: Q&A
Q&A 18
Slide 19: Appendix: Q1 2024 Market update
APPENDIX Q1 2024 Market update
Slide 20: Preliminary outcome 2023
Preliminary outcome 2023 Market summary and updates • Global electronics industry unchanged at 2,428 BnUSD1) • Semiconductors -8.0% to 527 BnUSD1) • Optical components -8.1% to 11.5 BnUSD3) • Printed circuit boards and substrates -15.0% to 69.5 BnUSD4 • Display market -5.5% to 116 BnUSD5) • Display
Slide 21: Forecasts 2024
Forecasts 2024 Market summary and updates • Global electronics industry 6.0% to reach 2,573 BnUSD1) • Semiconductor industry 11.4% to reach 587 BnUSD1) • Optical components market 17.8% to reach 13.5 BnUSD2) • Printed circuit boards and substrates market 5.0% to reach 73.0 BnUSD3) • Displays 6.7% to
Slide 22: Electronics industry systems
Electronics industry systems Yearly development by industry segment • Flat development estimated for 2023, at 2,428 USD billion 3 500 BnUSD, with strongest development in • Automotive 10.0% 3 000 • Industrial 7.0% • Aerospace / Defense 6.8% 2 500 • Growth of 6.0% forecast for 2024, to reach 2 000 2,
Slide 23: Semiconductors
Semiconductors Quarterly development USD billion 200 • Forecast -8.0% in 2023 to reach 527 BnUSD 175 • Forecast 11.4% growth in 2024 to 150 reach 587 BnUSD 125 • 2023 to 2028 CAGR growth forecast at 6.9% to reach 737 BnUSD 100 75 50 25 0 2019 2020 2021 2022 2023E 2024F 2025F 2026F 2027F 2028F Actual
Slide 24: SMT and Dispensing
SMT and Dispensing Market update SMT assembly equipment* • The segment declined by 17.9% in 2022 to 3,062 MUSD, although the markets in Europe and North and South America reported growth.1) • In 2023 the market declined by 26.5% compared with the previous year, although markets in Japan and Europe r
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 24.8 • Optical components production is the main 16.7% 22.7 driver for die/lens attach and other adjacent 20.0 process
Slide 26: Pattern Generators: Display panel market
Pattern Generators Display panel market BUSD Display panel revenue BUSD AMOLED display panel revenue 250 70 6.3% 60 54 56 200 4.7% 52 50 46 48 140 146 42 42 150 131 136 40 123 116 124 100 30 20 50 10 0 0 2022A 2023E 2024F 2025F 2026F 2027F 2028F 2022A 2023E 2024F 2025F 2026F 2027F 2028F • Display ma
Slide 27: Pattern Generators: Photomask market
Pattern Generators Photomask market estimated to have stayed on a high level 2023 after a very strong 2022 Billion Japanese Yen Thousands of square meters Mask Revenue Mask Area 200 30 25 1.7% 1.7% 150 20 100 15 10 50 5 0 0 2022A 2023E 2024F 2025F 2026F 2027F 2022A 2023E 2024F 2025F 2026F 2027F • Fo
Slide 28: Pattern Generators: Increasing photomask demand for AMOLED displays
Pattern Generators Increasing photomask demand for AMOLED displays, 2023 another positive year Thousands of square meters Mask Area AMOLED 9 • AMOLED development for mobile, IT and TV displays drives 2.7% demand for AMOLED photomasks 8 • 2023 area growth of photomasks for AMOLED displays is expected
Slide 29: Bringing tomorrow's electronics to life
Bringing tomorrow’s electronics to life MYCRONIC