Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q4 2023 Earnings Presentation
30 slides from Be Semiconductor Industries's earnings presentation, Feb 22, 2024
Slide 1: Investor Presentation: Q4 and FY 2023 Results
INVESTOR PRESENTATION Q4 and FY 2023 RESULTS February 22, 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 February 22, 2024 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS February 22, 2024 4
Slide 5: Q4 Results Exceed Guidance. Orders Up 30.7% vs. Q3-23
Q4 Results Exceed Guidance. Orders Up 30.7% vs. Q3-23 Guidance € millions Q4-23* Q4-23 ∆ Q3-23 ∆ Q4-22 Revenue Up 15%-25% 159.6 + 29.4% + 15.9% Orders 166.4 + 30.7% - 7.8% Gross Margin 62%-64% 65.1% + 0.5pts + 2.8pts Opex Up ~5% 37.8 + 2.4% + 1.9% Operating Income 55.5** 66.1 + 54.8% + 35.7% Net Inc
Slide 6: Leadership in Advanced Packaging Helped Offset Weakness in Mainstream Assembly
Leadership Position in Advanced Packaging Helped Offset Weakness in Mainstream Assembly Markets Q3-23/Q4-23 FY-22/FY-23 Revenue Net Income Revenue Net Income 200 800 € 722.9 - 19.9% + 29.4% € 159.6 700 160 € 123.3 € 578.9 Gross Margin Gross Margin 600 64.6% + 0.5 points 65.1% 61.3% + 3.6 points 64.9
Slide 7: End-User Market Trends 2022/2023
End-User Market Trends 2022/2023 February 22, 2024 7
Slide 8: Performance Significantly Above Last Industry Downturn
Performance Significantly Above Last Industry Downturn € MM Revenue € MM Orders 600 578.9 600 548.3 500 500 400 356.2 400 348.7 300 300 200 200 100 100 0 0 2019 2023 2019 2023 € MM Operating Profit Operating Margin 250 40% 36.9% 213.4 35% 200 30% 25.8% 150 25% 20% 100 91.9 15% 10% 50 5% 0 0% 2019 20
Slide 9: Attractive Capital Allocation Policy Continues
Attractive Capital Allocation Policy Continues 500 € 1.9 Billion Distributions Since 2011* 435.5 416.3 400 Dividends Share Repurchases 146.8 • € 435.5 million distributed in 2023 213.4 300 • € 300 million buyback program € millions completed: • ~4.3 million shares purchased 200 179.5 • Average price
Slide 10: II. Market & Strategy
II. MARKET & STRATEGY February 22, 2024 10
Slide 11: Market Conditions Reached Trough in 2023. New Upcycle Underway
Market Conditions Reached Trough in 2023. New Upcycle Underway 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.- China 60 tr
Slide 12: Assembly Equipment Market Trends 2019-2026E
Assembly Equipment Market Trends 2019-2026E 8.0 80% Market Size YoY Growth Rate 7.3 68.5% 7.0 6.4 6.6 60% 6.0 5.5 5.4 US$ billions 40% TechInsights now forecasts 26% downturn 5.0 31.3% 3.9 4.1 in 2023 22.5% 4.0 3.2 18.4% 14.7% 20% • Versus -23% last forecast 3.0 • ~40% decrease from 2021 peak 0% 2.0
Slide 13: Strategic Initiatives Successfully Achieved 2023
Strategic Initiatives Successfully Achieved 2023 Key Highlights ✓ Navigated industry downturn at high profitability levels ✓ Increased orders for next generation AI, HBM and photonics applications ✓ Well positioned for next upturn with leading advanced packaging portfolio ✓ Progress continued on hyb
Slide 14: Advanced Packaging Update
Advanced Packaging Update 2.5D Assembly 3D Hybrid Bonding • AI logic/memory stacking • Installed base of 40+ revenue producing • Photonics, HBM3 primary drivers units • Expanded orders for Multi Module and Flip • Customer adoption expanded from 3 to 9 Chip systems in H2-23 • Year-end backlog and ord
Slide 15: III. Outlook
III. OUTLOOK February 22, 2024 15
Slide 16: Guidance Q1-24
Guidance Q1-24 Revenue Gross Margin Baseline Operating Expenses -5% +5% €159.6 - 65.1% 64% - 66% € 35.6 - -15% 0% Q4-23 Q1-24 Q4-23 Q1-24 Q4-23 Q1-24 € in millions Total Operating Expenses + 55% € 37.8 - + 50% Q4-23 Q1-24 February 22, 2024 16
Slide 17: Financial Calendar
Financial Calendar 1-Mar-24 Susquehanna Technology conference (virtual) 8-Mar-24 ODDO BHF TMT Forum (virtual) 12-Mar-24 Citi’s TMT conference, London 25-Apr-24 Besi’s Q1-2024 results 25-Apr-24 Besi’s Annual General Meeting of Shareholders 6-Jun-24 Besi Analyst Day, Radfeld, Austria 25-Jul-24 Besi’s
Slide 18: IV. Financial Appendix
IV. FINANCIAL APPENDIX February 22, 2024 18
Slide 19: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 800 70% 64.9% 700 60% 58.0% 600 51.1% 749 50% 516 579 500 593 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 20: Revenue/Order Trends
Revenue/Order Trends 350 Quarterly Trends Revenue Orders Q4-23 vs. Q3-23 300 • Revenue: +€ 36.3 million (+29.4%) • Increased shipments for hybrid bonding, photonics 250 202 205 214 and other AI-related computing applications 200 169 181 160 166 € millions 153 163 150 125 138 133 142 123 127 • Orders
Slide 21: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 1,000 939.1 900 800 45% 663.7 700 548.3 600 500 472.1 45% 39% 53% 48% 400 348.7 39% 55% 300 39% 55% 61% 61% 200 47% 55% 52% 100 61% 45% - 2019 2020 2021 2022 2023 IDMs Subcontractors February 22, 2024 21
Slide 22: Gross Margin Trends
Gross Margin Trends Quarterly Trends 250 75% Revenue Gross Margin 214.0 202.4 Q4-23 vs. Q3-23 200 70% • 65.1% vs. 64.6% (+0.5 points) 168.8 162.5 159.6 • Favorable advanced packaging product mix • Net forex neutral € millions 150 137.7 133.4 65.6% 123.3 64.6% 65.1% 65% 64.2% 100 62.3% 62.3% 61.0% Q4
Slide 23: Baseline Operating Expense Trends
Baseline Operating Expense Trends 50.0 45.0% 44.0 43.7 40.0% 39.9 40.0 37.9 37.1 37.8 11.2 9.5 36.9 35.0% Operating Expenses (€ millions) 34.0 2.2 9.4 4.7 2.8 3.3 0.9 30.0% 30.0 27.3% 24.9% 24.6% 25.0% 22.3% 21.0% 19.6% 20.0% 20.0 15.1% 15.5% 35.6 33.1 34.3 32.8 34.2 33.6 15.0% 33.2 30.5 10.0% 10.0
Slide 24: Headcount Trends
Headcount Trends 2,500 30.0% 2,141 1,994 1,968 1,973 25.0% 2,000 1,870 496 1,819 312 279 248 • Headcount aligned with market 134 1,596 1,618 144 20.0% conditions: 62 95 • Temporary headcount down 73% 1,500 vs. last industry peak • Total headcount down by 12.7% Headcount 15.0% 1,162 1,163 1,169 1,193
Slide 25: Net Income Trends
Net Income Trends Quarterly Trends 80 € 75.6 Net Income 60% Q4-23 vs. Q3-23 € 67.5 Net Margin • € 54.9 million (+€ 19.9 million or +56.9%) € 57.3 • +29.4% higher revenue 60 € 52.6 € 54.9 • +0.5 point gross margin increase € 40.2 • Cost control efforts limit opex growth € millions 40 € 34.5 € 35.0 40
Slide 26: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 350 300 277.9 271.9 250 208.6 200 37.4% 37.1% 37.6% 36.0% 162.0 33.7% 150 120.1 100 50 0 2019 2020 2021 2022 2023 Total Cash Flow from Operations As % of Revenue February 22, 2024 26
Slide 27: Strong Liquidity Position Maintained
Strong Liquidity Position Maintained 800 Q4-23 vs. Q3-23 700 672.2 671.7 • Cash and deposits of € 413.5 million • +€ 22.3 million, or 5.7% vs. Q3-23 due to: 598.7 • + € 53.3 million cash flow from operations 600 • - € 23.1 million capital allocation • - € 5.8 million capitalized R&D 500 • - € 1.5 mi
Slide 28: Dividend Trends
Dividend Trends Dividend (€) Cumulative dividends of € 1.4 billion since 2011, or € 17.78 per share* Dividend Payout Ratio 3.50 3.33 100% 98% 98% 3.00 2.85 96% 95% 2.50 94% 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 29: Share Repurchase Activity
Share Repurchase Activity 250 160.0 213.4 140.0 200 120.0 Avg Cost per Share 146.8 100.0 150 € millions € 83.40 80.0 € 69.84 100 60.0 € 54.38 € 38.05 50.1 40.0 50 44.6 € 24.31 17.8 20.0 0 0.0 2019 2020 2021 2022 2023 Share Repurchases Average Cost per Share • Approximately 4.1 million treasury share
Slide 30: Investment Considerations
Investment Considerations Assembly market Long term secular Disciplined strategic Wafer level assembly ever more critical in trends favor 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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