Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q4 2021 and FY2021 Earnings Presentation
28 slides from Be Semiconductor Industries's earnings presentation, Feb 18, 2022
Slide 1: Investor Presentation Q4 and FY 2021 Results
INVESTOR PRESENTATION Q4 and FY 2021 RESULTS February 18, 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: Table of Contents
Table of Contents I. Key Highlights II. Market & Strategy III. Outlook IV. Financial Appendix February 18, 2022 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS February 18, 2022 4
Slide 5: Solid Q4-21 Performance Despite Flood. Orders Exceed Expectations
Solid Q4-21 Performance Despite Flood. Orders Exceed Expectations Guidance € millions Q4-21* Q4-21 ∆ Q3-21 ∆ Q4-20 Revenue -15%-20% 171.7 -17.6% +56.5% Orders € 180-190 202.6 -3.2% +28.8% Gross Margin 59-61% 56.7** -3.7pts -1.6pts Opex Flat +/- 5% 30.3 -0.3% +30.0% Net Income 67.1 -20.3% +50.4% EPS
Slide 6: Revenue and Profitability up Strongly in FY 2021 and Q4-21
Revenue and Profitability up Strongly in FY 2021 and Q4-21 Q4-20/Q4-21 YTD-20/YTD-21 Revenue Net Income Revenue Net Income 200 800 € 749.3 € 171.7 + 72.8% + 56.5% 160 € 109.7 € 433.6 Gross Margin Gross Margin 600 58.3% - 1.6 points 56.7%* 59.6% - 59.6% OPEX OPEX € 23.3 MM + 30.0% € 30.3 MM € 108.7 M
Slide 7: Liquidity Position Expanded in 2021
Liquidity Position Expanded in 2021 800 Cash and Deposits Net Cash € 129.4 million Q4-21 vs. Q3-21 700 dividend 672.2 • Total cash up € 81.7 million (13.8%) • +€ 101.8 million cash flow from operations 598.7 605.8 +13.8% • - € 15.7 million share repurchases 590.5 600 • - € 6.7 million capitalized de
Slide 8: II. Market & Strategy
II. MARKET & STRATEGY February 18, 2022 8
Slide 9: Industry Upturn Continues in 2022
Industry Upturn Continues in 2022 Source: VLSI, February 2022 February 18, 2022 9
Slide 10: Assembly Equipment Forecast Upgraded vs. December 2021
Assembly Equipment Forecast Upgraded vs. December 2021 7.0 6.4 60% Market Size YoY Growth Rate 55.6% 6.0 6.0 5.6 40% 25.0% 5.0 4.5 4.4 20.0% US$ billions 4.0 3.6 20% 14.3% 3.0 3.0 0% -2.2% -6.3% 2.0 -20% 1.0 -31.8% 0.0 -40% 2017 2018 2019 2020 2021E 2022E 2023E Source: VLSI, February 2022. Assembly
Slide 11: 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 12: III. Outlook
III. OUTLOOK February 18, 2022 12
Slide 13: Guidance Q1-22
Guidance Q1-22 Revenue Gross Margin Baseline Operating Expenses € 171.7 +15% (+/- 5%) 56.7%* 59%-61% € 30.3 +0% - +5% Q4-21 Q1-22 Q4-21 Q1-22 Q4-21 Q1-22 € in millions Total Operating Expenses +35% € 30.3 - +40% * Adjusted gross margin of 61.0% excluding inventory impairment charge Q4-21 Q1-22 Febru
Slide 14: Financial Calendar
Financial Calendar 23-Feb-22 Goldman Sachs European Digital Economy Conference: Technology & Internet (virtual) 3-Mar-22 Susquehanna Eleventh Annual Technology Conference (virtual) 9-Mar-22 UBS Technology Conference 2022 (virtual) 14-Mar-22 BofA APAC TMT Conference (virtual) 15-Mar-22 Berenberg EU O
Slide 15: IV. Financial Appendix
IV. FINANCIAL APPENDIX February 18, 2022 15
Slide 16: 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 17: 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 18: Revenue/Order Trends
Revenue/Order Trends Quarterly Trends Q4-21 vs. Q3-21 360 327 • Revenue: -€ 36.6 million (-17.6%) 320 Revenue Orders • Midpoint December guidance (-15-20%) 280 • ~€ 20-25 million flood related shipment deferral 240 226 • Lower mobile shipments as per seasonal trends € millions 200 208 209 203 200 •
Slide 19: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 1,000 939.1 IDMs Subcontractors 900 800 680.9 700 45% 600 35% 483.1 Orders 472.1 500 400 32% 348.7 39% 53% 39% 55% 300 39% 65% 61% 200 61% 55% 47% 68% 100 61% 45% - 2017 2018 2019 2020 2021 February 18, 2022 19
Slide 20: Gross Margin Trends
Gross Margin Trends Quarterly Trends 240 226.1 75% Revenue 208.3 Gross Margin Q4-21 vs. Q3-21 200 Adjusted Gross Margin* 171.7 70% • 56.7% vs. 60.4% 160 143.2 • Grew to 61.0% as adjusted • Net forex neutral: Revenue +USD vs. EUR € millions 124.3 65% 120 108.3 109.7 62.1% Costs +CNY/MYR vs. EUR 62.0%
Slide 21: Baseline Operating Expense Trends
Baseline Operating Expense Trends Baseline Opex Other Opex* Baseline Opex % of Revenue 40.0 60.0% 34.9 33.6 50.0% 33.0 Operating Expenses (€ millions) 3.6 30.4 30.3 30.0 8.9 40.0% 28.6 7.6 3.6 23.9 23.3 30.0% 27.9% 0.8 20.1% 21.3% 21.3% 20.0 18.2% 30.0 30.4 30.3 20.0% 17.6% 25.4 25.0 26.0 14.6% 23.1
Slide 22: Headcount Trends
Headcount Trends 2,500 30.0% 2,218 2,254 2,141 2,040 25.0% 2,000 1,901 649 639 496 Increased R&D/Service HC in 2021: 316 1,759 67 1,618 363 1,596 20.0% • Fixed and temporary 1,500 62 95 • R&D + 20% • Service + 40% Headcount 15.0% 1,222 • Expanded hybrid and wafer level 1,230 1,132 1,154 1,000 1,081
Slide 23: Net Income Trends
Net Income Trends Quarterly Trends € 93.5 Q4-21 vs. Q3-21 100 100% Net Income € 84.2 • € 67.1 million (-€ 17.1 million) 80 Net Margin 80% • -17.6% revenue decrease Adj. Net Margin € 67.1 • Primarily due to shipment deferrals • -€ 7.4 million inventory impairment charge 60 60% € 44.6 • Partial offset
Slide 24: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 300 277.9 250 37.4% 37.1% 35.0% 200 33.7% 184.1 168.2 162.0 28.4% 150 26.3% 120.1 98.7 100 50 0 2016 2017 2018 2019 2020 2021 Total Cash Flow from Operations As % of Revenue February 18, 2022 24
Slide 25: Capital Allocation Trends
Capital Allocation Trends 300 Dividends € 1.2 Billion Distributions Since 2011* 259.6 Share Repurchases 250 209.5 200 35.5 179.5 167.1 50.1 € millions 150 44.7 100 88.8 91.3 174.0 17.8 23.5 122.4 129.4 50 65.3 73.5 0 2017 2018 2019 2020 2021 2022 17% 27% 19% 28% 26% 74% 83% 73% 81% 72% * Includes pr
Slide 26: Dividend Trends
Dividend Trends Cumulative dividends of € 965.3 million since 2011, or € 12.76 per share* Dividend Dividend (€) Payout Ratio 3.50 100% 3.33 100% 98% 98% 3.00 96% 2.50 2.32 94% 2.00 92% 92% 1.67 1.70 90% 90% 90% 1.50 1.01 88% 1.00 86% 0.50 84% 0.00 82% 2017 2018 2019 2020 2021 Dividend Dividend Payou
Slide 27: Share Repurchase Activity
Share Repurchase Activity Share Repurchases Average Cost per Share 60 90.0 50.1 80.0 50 44.6 € 69.84 70.0 Avg Cost per Share 40 60.0 35.5 50.0 € millions 30 40.0 22.4 22.8 € 38.05 20 17.8 30.0 € 23.74 € 24.31 € 21.86 20.0 10 € 12.44 10.0 0 0.0 2016 2017 2018 2019 2020 2021 • 0.6 million treasury sha
Slide 28: 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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