Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q1 2024 Earnings Presentation
27 slides from Be Semiconductor Industries's earnings presentation, Apr 25, 2024
Slide 1: Investor Presentation Q1-24 Results
INVESTOR PRESENTATION Q1-24 RESULTS April 25, 2024
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 April 25, 2024 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS April 25, 2024 4
Slide 5: Q1-24 Revenue Exceeds Midpoint of Guidance. Gross Margin above Guidance
Q1-24 Revenue Exceeds Midpoint of Guidance. Gross Margin above Guidance Guidance € millions Q1-24* Q1-24 ∆ Q4-23 ∆ Q1-23 Revenue Down 5%-15% 146.3 -8.3% +9.7% Orders 127.7 -23.3% -10.1% Gross Margin 64-66% 67.2% +2.1pts +3.0pts Opex +50-55% 57.6 +52.4% +30.9% Operating Income 35.8*** 40.7 -38.4% -2.
Slide 6: Solid Performance In Extended Industry Downturn
Solid Performance In Extended Industry Downturn Q1-23/Q1-24 Q4-23/Q1-24 Revenue Net Income Revenue Net Income € 159.6 - 8.3% 160 160 + 9.7% € 146.3 € 146.3 € 133.4 Gross Margin Gross Margin 64.2% + 3.0 points 67.2% 65.1% + 2.1 points 67.2% 120 120 OPEX OPEX € 44.0 MM + 30.9% € 57.6 MM € 37.8 MM + 52
Slide 7: Strong Liquidity Position Maintained. Cash and Net Cash Increasing
Strong Liquidity Position Maintained. Cash and Net Cash Increasing 800 Cash and Deposits Net Cash Q1-24 vs. Q4-23 • Cash and deposits of € 447.1 million 700 672.2 671.7 • +€ 33.6 million primarily due to: 598.7 • + € 60.3 million cash flow from operations 600 • - € 14.8 million share repurchases • -
Slide 8: II. Market & Strategy
II. MARKET & STRATEGY April 25, 2024 8
Slide 9: Market Conditions Reached Trough in 2023. Slow Assembly Market Recovery
Market Conditions Reached Trough in 2023. Slow Assembly Market Recovery TechInsights Global Chip Making Climate Trend Index 120 7/22: Memory Inventory 110 Correction 2/21: Intel, TSMC, Samsung hike capex 100 Temperature in Degrees F 90 2/20: COVID-19 outbreak 80 70 Growth Decline Line 5/19: U.S.- Ch
Slide 10: Assembly Equipment Market Trends 2020-2026E
Assembly Equipment Market Trends 2020-2026E 8.0 80% Market Size YoY Growth Rate 7.6 68.5% 70% 7.0 6.5 6.6 60% 6.0 5.5 50% 5.1 US$ billions 5.0 40% TechInsights now forecasts 21% decrease in 3.9 4.4 27.2% 30% in 2023 4.0 22.5% 16.3% 16.8% 20% • Versus -26% last forecast 3.0 10% • ~34% decrease from 2
Slide 11: Strategy Update
Strategy Update • Effectively navigating industry downturn at peer leading profitability • Expanded R&D investment Business • Gross R&D spending up 13.1% vs. Q1-23 • Significant progress on wafer level assembly adoption • Increased resources allocated for 2.5D, 3D and photonics applications • Partic
Slide 12: III. Outlook
III. OUTLOOK April 25, 2024 12
Slide 13: Guidance Q2-24 & H1-24
Guidance Q2-24 & H1-24 € in millions Revenue Gross Margin Total Operating Expenses -15% +5 Q2-24 € 146.3 to 67.2% 63%-65% € 57.6 to -20% -5% Q1-24 Q2-24 Q1-24 Q2-24 Q1-24 Q2-24 Flat +/- 5% Revenue Gross Margin Total Operating Expenses HY1-24 € 295.6 -1% 65.0% +0.6pts € 87.7 +20%** HY1-23 HY1-24* HY1
Slide 14: Financial Calendar
Financial Calendar 25-Apr-24 Besi’s Annual General Meeting of Shareholders 29-Apr-24 Ex-dividend date 30-Apr-24 Dividend record date 03-May-24 Payment 2023 dividend starting 22-May-24 ABN AMRO/ODDO Benelux Equities Conference, Amsterdam 29-May-24 Goldman Sachs Global Semiconductor Conference, New Yo
Slide 15: IV. Financial Appendix
IV. FINANCIAL APPENDIX April 25, 2024 15
Slide 16: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 800 65.2% 70% 700 60% 58.0% 600 51.1% 749 50% 500 516 576 593 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 201
Slide 17: Performance Significantly Above Last Industry Downturn
Performance Significantly Above Last Industry Downturn Revenue (€MM) Orders (€MM) 1,000 700 664 900 600 534 800 723 483 700 500 592 600 525 384 400 500 400 366 300 300 200 200 100 100 0 - 2018 LTM Q1-20 2022 LTM Q1-24 2018 LTM Q1-20 2022 LTM Q1-24 Operating Profit (€MM) Operating Margin 350 45% 40.7
Slide 18: Revenue/Order Trends
Revenue/Order Trends Quarterly Trends 200 Q1-24 vs. Q4-23 Revenue Orders • Revenue: -€ 13.3 million (-8.3%) 166 • -Lower high-performance computing and automotive 163 160 • Partial offset: +Increased shipments high-end 150 142 146 smartphones 133 127 128 123 • Orders: -€ 38.7 million (-23.3%) 113 •
Slide 19: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions IDMs Subcontractors 1,000 939.1 900 800 45% 700 663.7 Orders 600 548.3 534.0 500 472.1 45% 39% 53% 39% 400 48% 50% 55% 300 55% 61% 61% 47% 200 55% 52% 50% 100 45% - 2020 2021 2022 2023 LTM* * Last twelve month ended March 31, 2024 April 25, 2024 19
Slide 20: Gross Margin Trends
Gross Margin Trends Quarterly Trends Revenue Gross Margin 250 70% 68% 67.2% Q1-24 vs. Q4-23 200 66% • 67.2% vs. 65.1% (+2.1 points) 65.6% 64.6% 65.1% • Above prior guidance 64.2% 64% • Favorable advanced packaging product mix • Net forex positive: Revenue +USD vs. EUR € millions 150 62% Costs -MYR/R
Slide 21: Baseline Operating Expense Trends
Baseline Operating Expense Trends 60.0 57.6 50.0% 45.0% 50.0 40.0% 44.0 43.7 21.2 Operating Expenses (€ millions) 35.0% 40.0 37.9 37.1 36.9 37.8 11.2 9.5 34.0 2.8 2.2 30.0% 4.7 3.3 0.9 27.3% 30.0 24.9% 24.6% 24.9% 25.0% 22.3% 21.0% 19.6% 20.0% 20.0 15.5% 34.3 34.2 35.6 36.4 15.0% 33.2 33.1 32.8 33.6
Slide 22: Headcount Trends
Headcount Trends 2,500 30.0% 2,141 1,996 25.0% 2,000 1,819 1,870 496 236 134 1,618 144 20.0% 95 1,500 • Increasing European and Asian Headcount 15.0% 1,211 fixed headcount to support 1,162 1,193 1,154 wafer level assembly expansion 1,000 1,060 10.0% 500 5.0% 463 491 513 543 549 0 0.0% 2020 2021 2022
Slide 23: Net Income Trends
Net Income Trends Net Income Q1-24 vs. Q4-23 Quarterly Trends Share-based compensation* • € 34.0 million (-€ 20.9 million) 60 Net Margin 40% • -8.3% lower revenue • -€ 14.1 million increase share-based compensation • -Higher R&D spending • Partial offset: • +2.1 point gross margin increase 34.4% 40
Slide 24: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 350 Total Cash Flow from Operations As % of Revenue 300 277.9 271.9 250 208.6 207.4 200 37.4% 37.1% 37.6% 36.0% 162.0 35.0% 150 100 50 0 2020 2021 2022 2023 LTM* * Last twelve months ended March 31, 2024 April 25, 2024 24
Slide 25: Dividend Trends
Dividend Trends Cumulative dividends of € 1.4 billion since 2011, or € 17.78 per share* Dividend (€) Dividend Payout Ratio 3.50 3.33 100% 98% 98% 3.00 2.85 97% 96% 95% 2.50 94% 2.15 92% 92% 2.00 1.70 90% 90% 1.50 88% 1.01 1.00 86% 84% 0.50 82% 0.00 80% 2019 2020 2021 2022 2023 Dividend Dividend Payo
Slide 26: Share Repurchase Activity
Share Repurchase Activity Share Repurchases Average Cost per Share 250 160.0 € 146.11 213.4 140.0 200 120.0 Avg Cost per Share 146.8 100.0 € millions 150 € 83.40 80.0 € 69.84 100 60.0 € 54.38 € 38.05 50.1 40.0 50 17.8 20.0 14.8 0 0.0 2020 2021 2022 2023 2024 • Approximately 3.4 million treasury shar
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
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