BE Semiconductor Industries N.V. · EURONEXT:BESI
BE Semiconductor Industries — Shareholder Meeting (April 2021)
39 slides from BE Semiconductor Industries's shareholder meeting presentation, Apr 30, 2021
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING April 30, 2021
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 press release, including, but not limited to, statements relating to ex
Slide 3: Agenda
Agenda I. Company Overview II. Market III. Strategy IV. Financial Review V. Q1-21 Results, Outlook & Summary April 30, 2021 3
Slide 4: I. Company Overview
I. COMPANY OVERVIEW April 30, 2021 4
Slide 5: Key Highlights 2019 - 2020
Key Highlights 2019 - 2020 2019/20 € millions except % and EPS 2019 2020 Variance Revenue € 356.2 € 433.6 +21.7% Orders € 348.7 € 472.1 +35.4% Gross Margin 55.8% 59.6% +3.8 Net Income € 81.3 € 132.3 +62.7% Net Margin 22.8% 30.5% +7.7 EPS (Basic) € 1.12 € 1.82 +62.5% Return on Average Equity 24.2% 39
Slide 6: History of Superior Long-Term Value Creation
History of Superior Long-Term Value Creation Disciplined Strategic Execution Capital Allocation Program Total Shareholder Return € 866 million of dividends and Consistent outperformance vs. Leader in advanced packaging share repurchases since 2011* peers for assembly equipment Total shareholder retu
Slide 7: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 700 70% 59.6% 600 60% 593 51.1% 500 50% 424 +22% 400 39.5% 434 40% 34.1% 379 356 300 302 30% 4 year 351 averages 200 20% 164 191 100 10% 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 8: Coping with COVID-19
Coping with COVID-19 Strong liquidity position, flexible Asian production and supply chain helped Besi navigate COVID challenges Initiatives developed in H1-20 to adjust business model • Precautionary measures taken to protect safety and health of employees, customers and suppliers • Increased frequ
Slide 9: Attractive Gross Margins Maintained in Challenging Environment
Attractive Gross Margins Maintained in Challenging Environment Revenue Gross Margin 160 100% Downturn COVID-19 140 90% 124 120 108 110 80% € millions 100 93 92 Gross Margin % 90 91 81 70% 80 62.0% 60.8% 58.3% 55.9% 56.0% 56.3% 56.7% 60% 55.1% 60 50% 40 20 40% 0 30% Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-2
Slide 10: Increased Profitability vs. Last Cycle
Increased Profitability vs. Last Cycle Trough Post Trough € millions € millions 2015 2019 2016 2020 450 200 450 200 180 433.6 180 +15.5% 400 160 400 34.6% 160 140 149.9 140 Operating Income Operating Income +2.0% 375.4 350 120 +99.3% Revenue 350 120 356.2 Revenue 349.2 25.8% 100 100 +58.7% 91.9 20.0
Slide 11: Attractive Capital Allocation. €883.6 Million Since 2011
Attractive Capital Allocation. € 883.6* Million Since 2011 € millions 250 Dividends Share Repurchases 209.5 200 35.5 167.1 150 141.4 44.7 13.1 100 88.8 91.3 174.0 67.4 17.8 23.5 60.4 122.4 128.3 3.5 22.0 50 65.3 73.5 56.9 45.4 0 2015 2016 2017 2018 2019 2020 2021* 6% 17% 33% 26% 27% 19% 94% 67% 74%
Slide 12: Primary Valuation Drivers (2020)
Primary Valuation Drivers (2020) Peer Leading Financial Metrics Worst Best BESI Peer Peer Revenue Growth 41.7% 5.6% 5.6% 13.8% 21.7% 22.8% 41.7% Gross Margin 59.6% 32.2% 38.2% 46.8% 59.2% 59.6% 32.2% Operating Margin 34.6% 8.6% 8.6% 10.8% 13.3% 28.4% 34.6% Net Margin 7.6% 30.5% 20.4% 7.6% 9.7% 11.7%
Slide 13: Besi TSR Outperforms Peers and SOX Index For Past Five Years
Besi TSR Outperforms Peers and SOX Index For Past Five Years 2020 Total Shareholder Return* Total Cumulative Shareholder Return* Besi vs. Peer Group and SOX Index Besi vs. SOX Index 2016-2020 Besi Peer Group Average PHLX Semiconductor (SOX) Besi Peer Group Average PHLX Semiconductor (SOX) 60.0% 700%
Slide 14: Besi Market Cap & Liquidity Significantly Expanded
Besi Market Cap & Liquidity Significantly Expanded. Shareholder Base Has Migrated from NL to US/UK over Past 5 Years Symbol/ • BESI Avg. Daily Volume & Liquidity Index • Euronext AEX Avg Vol * Avg Price (€ thousands) 1400 50,000 1200 Volume (thousands) Market Market • € 5.2 billion 1000 40,000 ($ 6.
Slide 15: II. Market
Besi comm Il. MARKET April 30, 2021 15
Slide 16: Assembly Equipment Forecast Upgraded Through 2023
Assembly Equipment Forecast Upgraded Through 2023 Market Size YoY Growth Rate 6.0 5.1 50% 4.5 4.4 5.2 5.0 4.5 30% US$ billions 3.6 3.5 30.5% 4.0 3.0 25.7% 15.6% 10% 14.4% 3.0 13.3% -2.4% -0.4% -10% 2.0 1.0 -30% -31.7% 0.0 -50% 2016 2017 2018 2019 2020E 2021E 2022E 2023E Source: VLSI, April 2021 Besi
Slide 17: Industry Conditions Have Improved Significantly From Q2-19 Trough
Industry Conditions Have Improved Significantly From Q2-19 Trough Source: VLSI, April 2021 April 30, 2021 17
Slide 18: Move to Digital Society Helps Drive Advanced Packaging Growth
Move to Digital Society Helps Drive Advanced Packaging Growth Technology Drivers 5G AI IoT On the road to augmented intelligence Imaging HD voice Augmented Driverless human processing Audio Motion sensing Olfactometry Disruptive technology Next gen Robot Hyper data Holographic assistant home interac
Slide 19: Besi End User Markets
Besi End User Markets 2019 % Revenue 2020 % Revenue Other Other 10% 9% Mobile Internet Spares/Service Spares/Service Mobile Internet 33% 17% 19% 39% Automotive Automotive 13% 17% Computing Computing 22% 21% Source: Company estimates April 30, 2021 19
Slide 20: 5G Adoption Drives Growth in Mobile Features and Functionality
5G Adoption Drives Growth in Mobile Features and Functionality 5G connections 1.8 Billion connections 42m Korea 217m North America CAGR (+23%) 91m Japan 5G Penetration 808m Greater China Rates 203m Europe 14MM 2019-2025 connections Source: GSMA Mobile Economy and Besi analysis, March 2020 April 30,
Slide 21: Computing Demand Expanding Rapidly
Computing Demand Expanding Rapidly Advanced computing Data volumes growing Digital society accelerating expanding in largest exponentially sections of economy Data Mining Manufacturing $ 14T Artificial Intelligence Automotive $ 10T CAGR (+28%) Medical Healthcare $ 7T Cloud Infrastructure Cloud Compu
Slide 22: Automotive Growth Rebounding Post COVID Downturn
Automotive Growth Rebounding Post COVID Downturn Semiconductor Cost Content Per Car Is Increasing Electric Autonomous Connected Mobility as vehicles vehicles vehicles a service New powertrain Sensors Vehicle Ridesharing Charging Infrastructure Car sharing HPC infrastructure Better Big data / Cloud F
Slide 23: III. Strategy
III. STRATEGY April 30, 2021 23
Slide 24: Besi Strategy
Besi Strategy Maintain best in class technology leadership Increase Reward market shareholders presence in via capital addressable allocation policy markets Strategic Objectives Acquire Enhance companies with scalability. complementary Reduce technologies structural costs and products Balance busine
Slide 25: Strategic Update
Strategic Update • Adjusted business model to cope with COVID-19 pandemic • Continued consolidation and reduction of European footprint 2020 • Reorganized R&D to better align with customer roadmaps • Joint development agreement with Applied Materials • Developed new ESG framework and short, medium a
Slide 26: Strategic Revenue Initiatives
Strategic Revenue Initiatives “Pick the winners” Expand high quality mainstream product offerings Wire bonding/flip chip conversion Hybrid bonding market expansion Revenue Growth New 5G and AI applications Initiatives Increased penetration of Korean and Chinese android markets Expand presence in Chi
Slide 27: Joint Development Agreement With Applied Materials
Joint Development Agreement With Applied Materials Industry’s first complete, one-stop solution creates best hybrid bonding process suite Front and back-end process expertise Harness leadership positions in Assembly equipment process expertise • Etch front-/back-end • Planarization • Die placement •
Slide 28: Hybrid Die Bonding: Significant Total Market Potential
Hybrid Die Bonding: Significant Total Market Potential Besi Has Leading Position Hybrid Bonding / Bonding Equipment Market Key Advantages Hybrid Bonding Die to Wafer / Die to Die Very high density contacts possible > 1 mio/Sq Mm with no solder Estimated installed base of 700-1,400 systems by 2030
Slide 29: ESG Progress and Highlights 2020
ESG Progress and Highlights 2020 Direct Emissions – Scope 1 & 2 Additional safety, health and organizational measures implemented due to COVID-19 Near and long-term ESG ambitions, targets and KPIs set 100% renewable energy achieved across three operating locations Reduction of Scope 1 and 2
Slide 30: Enhanced ESG Strategy. Strategic Pillars, Material Topics and Key Targets Established
Enhanced ESG Strategy. Strategic Pillars, Material Topics and Key Targets Established Strategic Environmental People Responsible Pillars: Impact Wellbeing Business • Impact at Besi: • Diversity and inclusion • Ethics and compliance • Energy use and renewable • Employee health and safety • Responsibl
Slide 31: IV. Financial Review
IV. FINANCIAL REVIEW April 30, 2021 31
Slide 32: Key Metrics 2016 – 2020
Key Metrics 2016 – 2020 Revenue & Baseline Opex Headcount Net Income Gross Margin 600 160 45% 140 2,000 525.3 125.7 1,759 136.3 1,800 140 132.3 40% 500 116.3 1,669 64% 120 11.3 67 1,618 433.6 108.7 1,600 120 95 120 19.6 35% 100 11.9 400 375 1,400 59.6% 100 30.5% 58% 1,200 30% 80 € millions 300 56.8%
Slide 33: Structural, Through Cycle Outperformance Achieved vs. Peers
Structural, Through Cycle Outperformance Achieved vs. Peers Return on Average Equity* Gross Margin 45.0 Δ Besi 2016 2017 2018 2019 2020 2016/ 40.0 Besi’s margins and ROE have 2020 exceeded direct peers through 35.0 cycles: Besi 51.0% 57.1% 56.8% 55.8% 59.6% +8.6% 30.0 ASM PT • Investment in business
Slide 34: Cash Flow Efficiency Increasing
Cash Flow Efficiency Increasing € millions % of Revenue 200 184.1 180 168.2 162.0 160 +34.9% 140 120.1 120 37.4% 98.7 35.0% 100 33.7% 28.4% 80 26.3% 60 40 20 0 2016 2017 2018 2019 2020 Total Cash Flow from Operations As % of Revenue April 30, 2021 34
Slide 35: Liquidity Position Enhanced
Liquidity Position Enhanced • Strong cash flow generation: Cash and Deposits Net Cash 700 • Net cash of € 198.7 million at year end (+52.5%) • Includes outflows of € 91.3 million for dividends 598.7 and share repurchases 600 • Aided by increased profits and improved working 527.8 +46.6% capital mana
Slide 36: V. Q1-21 Results, Outlook and Summary
V. Q1-21 RESULTS, OUTLOOK AND SUMMARY April 30, 2021 36
Slide 37: Record Q1-21 Order Intake. €484 Million Orders Past Six Months
Q1-21 Revenue & Net Profit Up 56.8% and 170.5% vs Q1-20. Record Q1-21 Order Intake. € 484 Million Orders Past Six Months Guidance € millions Q1-21* Q1-21 ∆ Q4-20 ∆ Q1-20 Revenue +30% - +40% 143.2 +30.5% +56.8% Orders n/a 327.1 +107.9% +175.8% Gross Margin 58-60% 58.2% -0.1 +1.5 Opex + 50% - +55% 34.
Slide 38: Guidance Q2-21
Guidance Q2-21 Revenue Gross Margin Operating Expenses +30% € 143.2 - 58.2% 58%-60% € 34.9 0% - +40% -5% Q1-21 Q2-21 Q1-21 Q2-21 Q1-21 Q2-21 € in millions April 30, 2021 38
Slide 39: Investment Considerations
Investment Considerations Market presence Assembly market Long term secular Disciplined has grown via key ever more critical trends drive strategic focus IDMs, supply in semiconductor advanced has created an chains and value chain packaging growth industry leader partners Tech leadership Commitment
Be Semiconductor Industries — Shareholder Meeting (April 2021) on 6ix