BE Semiconductor Industries N.V. · EURONEXT:BESI
BE Semiconductor Industries — Shareholder Meeting (April 2022)
31 slides from BE Semiconductor Industries's shareholder meeting presentation, Apr 29, 2022
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING April 29, 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: Agenda
Agenda I. Company Overview II. Market III. Strategy IV. Financial Review V. Q1-22 Results & Outlook April 29, 2022 3
Slide 4: I. Company Overview
I. COMPANY OVERVIEW April 29, 2022 4
Slide 5: Key Highlights 2021 - 2020
Key Highlights 2021 - 2020 2021/20 € millions except % and EPS 2021 2020 Variance Revenue € 749.3 € 433.6 +72.8% Orders € 939.1 € 472.1 +98.9% Gross Margin 59.6% 59.6% - Net Income € 282.4 € 132.3 +113.5% Net Margin 37.7% 30.5% +7.2 EPS (Basic) € 3.70 € 1.82 +103.3% Return on Average Equity 52.1% 39
Slide 6: 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 +73% 50% 500 516 593 39.5% 40% 424 400 34.1% 379 30% 300 4 year 302 averages 351 20% 200 164 191 10% 100 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 7: Performance Significantly Above Last Cycle
Performance Significantly Above Last Cycle Orders (€ millions) Revenue (€ millions) 1000 1000 939 900 900 +37.9% 800 749 800 +26.3% 681 700 700 593 600 600 500 • Orders +37.9% vs. 2017 500 400 349 356 400 348 349 300 300 • Revenue +26.3% 200 200 100 100 0 • Fixed headcount down 5% 0 2015 2017 2019 2
Slide 8: Shareholder Friendly Capital Allocation. €1.2 Billion Since 2011
Shareholder Friendly Capital Allocation. €1.2 Billion Since 2011* € millions 300 Dividends Share Repurchases 287.6 18.4 250 209.5 200 179.5 35.5 167.1 150 50.1 44.7 269.2 88.8 91.3 100 174.0 17.8 23.5 122.4 129.4 50 65.3 73.5 0 2017 2018 2019 2020 2021 2022* 17% 19% 26% 27% 28% 74% 83% 73% 81% 72% *
Slide 9: Peer Leading Financial Metrics
Peer Leading Financial Metrics Key Financial Metrics (LTM*) Worst BESI Best Peer Peer Revenue Growth 129.1% 66.9% 66.9% 69.6% 72.8% 129.1% Besi’s margins and ROE have exceeded direct peers through Gross Margin cycles: 43.7% 43.7% 60.7% 46.7% 59.6% 59.6% • Investment in business model has yielded hig
Slide 10: Total Return Outperformance versus Peers for 2021 and Past 5 Years
Total Return Outperformance versus Peers for 2021 and Past 5 Years 2021 Total Shareholder Return* 5 Year Cumulative Shareholder Return* Besi versus Peer Group, REM Reference Group & SOX Index Besi versus Peer Group, REM Reference Group & SOX Index Besi Peer Group Average REM Reference Group PHLX Sem
Slide 11: Besi Market Cap & Liquidity Has Expanded
Besi Market Cap & Liquidity Has Expanded Shareholdings Migrated from NL to US/UK over Past 5 Years Symbol/ • BESI Avg. Daily Volume and Liquidity Index • Euronext AEX Avg Vol * Avg Price (€ millions) 1,500 100 Market Volume (thousands) 80 1,000 Market • € 6.1 billion 60 Cap* ($ 6.5 billion) Profile
Slide 12: II. Market
Besi comm Il. MARKET ‘April 29, 2022 2
Slide 13: Assembly Equipment Forecast
Assembly Equipment Forecast 8.0 7.2 80% Market Size YoY Growth Rate 71.1% 7.2 7.0 6.5 60% 6.0 4.5 25.0% 4.5 40% 5.0 US$ billions 3.8 18.8% 4.0 3.2 20% 10.8% 3.0 0.0% 0.0% 0% 2.0 -20% 1.0 -28.9% 0.0 -40% 2017 2018 2019 2020 2021E 2022E 2023E Source: Tech Insights, April 2022. Assembly equipment reven
Slide 14: Industry Upturn Continues in H1-22
Industry Upturn Continues in H1-22 Source: Tech Insights, April 2022 April 29, 2022 14
Slide 15: Growth Expected to Favor Besi's Product Portfolio, Particularly Die Attach
Growth Expected to Favor Besi’s Product Portfolio, Particularly Die Attach 8,000 CAGR (2020-2023) Die Attach 26.6% 7,229 7,221 7,000 Packaging & Plating 18.7% 6,522 Other Assembly 22.8% 6,000 2,304 2,463 Total 23.4% 1,894 Besi 5,000 Addressable $ millions 1,016 1,015 Market 3,844 954 4,000 1,214 3,0
Slide 16: Hybrid Bonding Adoption Reflects Industry Shift to Smaller, Integrated Chip Designs
Hybrid Bonding Adoption Reflects Industry Shift To Smaller, Integrated, Heterogeneous Chip Designs. Besi Has Leading Position Direct Cu-Cu Interconnect Ultra-High Bandwidth & Speed Eliminates need for interposer Results in smaller, thinner form factor Contact density increased by factor of 1000x by
Slide 17: Enables New 3D Structures and Growth of Other Wafer Level Assembly Processes
Enables New 3D Structures and Growth of Other Wafer Level Assembly Processes 2 3 3D Chiplet 5 1 Chiplet Chiplet Hybrid Bond Bridge Die Interposer 6 4 Bridge Die Package Substrate 1 2 3 4 5 6 Chip to Wafer TCB Hybrid Bonding High Bandwidth Embedded Bridge Wafer Level HD Interposer to Memory Stacking
Slide 18: Hybrid Bonding Adoption Leads to Higher Capital Intensity per UPH
Hybrid Bonding Adoption Leads to Higher Capital Intensity per UPH 8800 FC Quantum 8800 Ultra Accurate Chip to Wafer Hybrid Bonder 3 micron accuracy <200 nanometer accuracy Pricing: $1.5MM-2.5MM ASP: $500k Configuration dependent ~9,000uph ~1,500uph April 29, 2022 18
Slide 19: Now on Agenda of All Big Players
Now on Agenda of All Big Players Source: TSMC, AMD presentations Source: Intel Archtecture Day 2020 Source: Samsung presentations April 29, 2022 19
Slide 20: Hybrid Die Bonding Market Update
Hybrid Die Bonding Market Update June 2020 estimate Market tracking towards high case developed in June 2020 • High level of customer engagement • Interest expressed by both logic and memory players • AMD recently announced first hybrid bonded 3D chiplet-based processor • Collaboration with Applied
Slide 21: III. Strategy
III. STRATEGY April 29, 2022 21
Slide 22: Strategy Update
Strategy Update • Supply chain constraints and selected component shortages persist both at Besi and at customer manufacturing sites Production • Impacts H1-22 quarterly delivery schedules • Began Hybrid Bonding shipments to customer in Q4-21 • Ramping capacity for 2022/2024 demand • Gross R&D inves
Slide 23: Significant ESG Progress Achieved in 2021
Significant ESG Progress Achieved in 2021 Process Pillar Progress Reduced Scope 1 & 2 and 3 emissions intensity by 27% and 4%, respectively Environmental Impact Relative reductions in fuel, energy, hazardous waste and water consumption Launched sustainable design initiatives for die bonding platform
Slide 24: ESG Ambitions and Targets
ESG Ambitions and Targets Key Targets 2022 Key Targets 2030 100% renewable sources for European 65% renewable sources for global energy needs energy needs 15% reduction in Scope 1 and 2 60% reduction in Scope 1 and 2 carbon emissions* carbon emissions* Above-benchmark employee engagement Reduce ener
Slide 25: IV. Financial Review
IV. FINANCIAL REVIEW April 29, 2022 25
Slide 26: Key Metrics 2017 – 2021
Key Metrics 2017 – 2021 Revenue & Baseline Opex Headcount Net Income Gross Margin 800 749.3 300 45% 140 2,500 282.4 129.2 129.2 68% 700 2,141 12.1 37.7% 40% 120 15.5 2,040 250 592.8 106.9 2,000 600 316 496 35% 100 10.0 1,596 200 500 173.2 62% 62 1,500 30% 80 29.2% € millions 400 356.2 € millions 150
Slide 27: Liquidity Position Enhanced
Liquidity Position Enhanced Cash and Deposits Net Cash 800 700 672.2 • Strong cash flow generation: • Net cash of € 370.4 million at year end (+68.4%) 598.7 600 • Includes outflows of € 179.5 million for dividends 527.8 and share repurchases 500 475.5 • Attractive funding to help finance growth: • C
Slide 28: V. Q1-22 Results & Outlook
V. Q1-22 RESULTS & OUTLOOK April 29, 2022 28
Slide 29: Q1-22 Revenue & Net Income Up Strongly vs Q1-21 & Q4-21
Q1-22 Revenue & Net Income Up Strongly vs Q1-21 & Q4-21 Guidance € millions Q1-22 Q1-22 ∆ Q4-21 ∆ Q1-21 Revenue Up 15% +/-5% 202.4 +17.9% +41.3% Orders 204.8 +1.1% -37.4% Gross Margin 59-61% 60.1% +3.4pts +1.9pts Opex +35-40% 39.9 +31.7% +14.3% Net Income 67.5 +0.6% +79.5% EPS Basic 0.87 +1.2% +70.6
Slide 30: Guidance Q2-22 & H1-22
Guidance Q2-22 & H1-22 € in millions Revenue Gross Margin Total Operating Expenses Q2-22 € 202.4 +10% (+/- 5%) 60.1% 59%-61% € 39.9 Flat to -5% Q1-22 Q2-22 Q1-22 Q2-22 Q1-22 Q2-22 Flat +/- 5% Revenue Gross Margin Total Operating Expenses HY1-22 € 369.3 +15% 60.5% 60% € 68.6 +15% HY1-21 HY1-22* HY1-2
Slide 31: 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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