Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Besi — FY2020 Earnings Presentation
28 slides from Be Semiconductor Industries's earnings presentation, Feb 19, 2021
Slide 1: Investor Presentation Q4 and FY 2020 Results
INVESTOR PRESENTATION Q4 and FY 2020 RESULTS February 19, 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: Table of Contents
Table of Contents I. Key Highlights II. Market & Strategy III. Outlook IV. Financial Appendix February 19, 2021 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS February 19, 2021 4
Slide 5: Q4-20 Revenue and Net Income up Strongly vs. Q4-19
Q4-20 Revenue and Net Income up Strongly vs. Q4-19 Results Exceed Expectations. Sequential Orders up 65.8% Guidance € millions Q4-20* Q4-20 ∆ Q3-20 ∆ Q4-19 Flat to minus Revenue 109.7 +1.3% +18.7% 15%* Orders 157.3 +65.8% +56.5% Gross Margin 58%-60% 58.3% -2.5 +2.0 Opex 0% to +5%* 23.3 -2.5% -7.5% N
Slide 6: FY-20 Net Income +62.7% vs. FY-19 On 21.7% Revenue Increase
FY-20 Net Income +62.7% vs. FY-19 On 21.7% Revenue Increase FY-20/FY-19 Q4-20/Q4-19 Revenue Net Margin Revenue Net Margin 500 100% 120 100% € 109.7 + 18.7% € 433.6 90% 90% + 21.7% 100 € 92.4 400 € 356.2 80% 80% Gross Margin Gross Margin 55.8% + 3.8 points 59.6% 56.3% + 2.0 points 58.3% 70% 80 OPEX O
Slide 7: 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 8: 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 February 19, 2021 8
Slide 9: Liquidity Position Enhanced
Liquidity Position Enhanced Cash and Deposits Net Cash 700 Q4-20 net cash comparison • + € 40.0 million (+25.2%) vs. Q3-20 to € 198.7 million 598.7 • + € 68.4 million (+52.5%) vs. Q4-19 600 527.8 Q4-20 cash flow movements +46.6% 500 475.5 • +€ 51.7 million cash provided by operations • -€ 8.3 millio
Slide 10: Capital Allocation Trends
Capital Allocation Trends € millions 209.5 200 35.5 Dividends 167.1 Share Repurchases • € 866.1 million distributions since 2011*: 150 44.7 • Approximately 20% of cumulative revenue 123.9 • € 1.70 dividend proposed for FY-20 • 94% payout ratio 100 88.8 91.3 174.0 17.8 • Share repurchase program cont
Slide 11: II. Market & Strategy
II. MARKET & STRATEGY February 19, 2021 11
Slide 12: Climate Index Has Risen Significantly From Q2-19 Trough
Climate Index Has Risen Significantly From Q2-19 Trough Source: VLSI, February 2021 February 19, 2021 12
Slide 13: Assembly Equipment Forecast Upgraded Through 2023
Assembly Equipment Forecast Upgraded Through 2023 Market Size YoY Growth Rate 6.0 50% 4.5 4.9 5.0 4.3 5.0 4.3 30% US$ billions 3.5 3.6 4.0 3.0 25.8% 19.9% 20.3% 10% 3.0 13.3% 12.5% 2.8% -10% -2.5% 2.0 1.0 -30% -31.5% 0.0 -50% 2016 2017 2018 2019 2020E 2021E 2022E 2023E Source: VLSI February 2021 Bes
Slide 14: 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 15: III. Outlook
III. OUTLOOK February 19, 2021 15
Slide 16: Guidance Q1-21
Guidance Q1-21 Revenue Gross Margin Baseline Operating Expenses +30% € 109.7 - 58.3% 58%-60% € 23.3 +15% - +40% +20% Q4-20 Q1-21 Q4-20 Q1-21 Q4-20 Q1-21 € in millions Total Operating Expenses +50% € 23.3 - +55% Q4-20 Q1-21 February 19, 2021 16
Slide 17: Financial Calendar
Financial Calendar 02-Mar-21 TMT conference Morgan Stanley (NY), virtual 09-Mar-21 Susquehanna Technology Conference (NY), virtual 11-Mar-21 ODDO BHF TMT forum, virtual 30-Apr-21 2021 first quarter results 30-Apr-21 Besi Annual General Meeting of Shareholders 17-Jun-21 ING Benelux conference Frankfu
Slide 18: IV. Financial Appendix
IV. FINANCIAL APPENDIX February 19, 2021 18
Slide 19: 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 20: Revenue/Order Trends
Revenue/Order Trends 160 Quarterly Trends 157 Q4-20 vs. Q3-20 • Revenue: € 109.7 million (+1.3%) Revenue Orders 119 124 • Above prior guidance (flat to down 15%) 120 108 110 • Primarily mobile applications for Asian subcontractors 101 101 93 92 95 € millions 90 91 81 83 83 82 • Orders: € 157.3 milli
Slide 21: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 800 IDMs Subcontractors 700 680.9 600 35% 500 483.1 472.1 +35% Orders 400 373.8 32% 348.7 39% 55% 53% 300 39% 49% 39% 200 65% 68% 61% 61% 47% 100 51% 61% 45% - 2016 2017 2018 2019 2020 February 19, 2021 21
Slide 22: Gross Margin Trends
Gross Margin Trends Quarterly Trends 140 70% Q4-20 vs. Q3-20 124.3 Revenue Gross Margin 68% • 58.3% vs. 60.8% 120 108.3 109.7 66% • Within guidance (58%-60%) 100 92.7 89.7 92.4 91.3 64% • Net forex negative: Revenue USD vs EUR 81.4 62.0% Costs Neutral € millions 60.8% 62% 80 60% • Product mix 58.3%
Slide 23: Headcount Trends
Headcount Trends 2,500 20% 18% 2,040 2,000 16% 316 1,759 1,669 14% 67 1,596 1,618 120 62 95 Temp % of Total 1,500 12% Headcount 10% 1,222 1,230 1,000 1,041 1,081 1,060 8% 6% 500 4% 508 502 462 453 463 2% 0 0% 2016 2017 2018 2019 2020 Europe/NA Fixed HC Asia Fixed HC Temporary HC Temp % of Total Febr
Slide 24: Overhead Remains Under Control
Overhead Remains Under Control Baseline Opex Other Opex* Baseline Opex % of Revenue 60% 33.0 30.7 50% 30.0 28.6 7.6 Operating Expenses (€ millions) 5.8 26.8 3.6 40% 25.2 2.3 24.2 23.9 1.5 23.3 0.5 0.8 30.6% 30% 27.8% 26.4% 26.4% 25.7% 20.0 20.1% 21.3% 21.2% 20% 24.9 25.4 25.0 24.5 23.7 23.7 23.1 23.
Slide 25: Net Income Trends
Net Income Trends Q4-20 vs. Q3-20 Net Income Tax benefit Net Margin Adj. Net Margin 50 • € 44.6 million (+€ 10.6 million) € 44.6 • Net margin 40.7% vs. 31.3% 45 60% € 39.8 40 50% • + € 11.2 million tax benefit € 33.7 € 34.0 35 40.7% • - 2.5 point gross margin decrease 30 40% • - € 0.6 million (2.5%)
Slide 26: Dividend Trends
Dividend Trends Dividend (€) Dividend Payout Ratio 3.00 Cumulative dividends of € 700.2 MM since 2011, or € 9.45 per share * 120% 115% 2.50 2.32 110% 2.00 107% 1.70 105% 1.67 1.50 100% 100% 1.01 95% 1.00 0.87 94% 91% 90% 90% 0.50 85% 0.00 80% 2016 2017 2018 2019 2020** Dividend Dividend Payout Ratio
Slide 27: Share Repurchase Activity
Share Repurchase Activity Cumulative share repurchases of € 165.9 MM since 2011 50 40.0 € 38.05 44.6 45 35.0 40 35.5 30.0 35 Avg Cost per Share € 24.31 25.0 € millions 30 € 23.74 € 21.86 25 22.4 22.8 20.0 20 17.8 15.0 15 € 12.44 10.0 10 5.0 5 0 0.0 2016 2017 2018 2019 2020 Share Repurchases Average
Slide 28: 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