Slide 1: Third quarter 2024
S inird\quarter 2024 Aion a
Slide 2: President and CEO
President and CEO Anders Lindqvist 2
Slide 3: Agenda
Agenda • Q3 in short • Divisional development • Financials • Sustainability • Q&A • Appendix – Market update 3
Slide 4: Q3 in short
Q3 in short Healthy net sales and EBIT • Order intake declined 1% to SEK 1,459 (1,467) million • Net sales increased 40% to SEK 1,780 (1,274) million • Driven mainly by Pattern Generators, but with High Volume and Global Technologies also supporting the positive performance • EBIT more than doubled
Slide 5: Pattern Generators
Pattern Generators Share of Group’s net sales Net sales SEK 807 M EBIT SEK 498 M Strong net sales and EBIT 45% Order intake SEK 274 M EBIT margin 62% • Stable photomask markets for both displays and semiconductors • First SLX order for delivery to Europe • Order intake declined 51% to SEK 274 (561)
Slide 6: High Flex
High Flex Challenging market conditions • In Europe, major markets such as Germany, France, and the UK reported weakening demand, with customers having lower order backlog levels • The market in the US stabilized, albeit at a low level • Order intake declined 5% • Net sales decreased 7% • Gross marg
Slide 7: High Volume
High Volume Positive market development • Demand for High Volume’s products improved during the quarter, both in the Chinese domestic market and the market outside of China • Order intake rose 56% • Net sales increased 37% • Gross margin at 40 (41)% • EBIT amounted to SEK 47 (41) million • Order bac
Slide 8: Global Technologies
Global Technologies AI driven demand continues • In the Die Bonding business line, strong demand for high-speed optical transceivers was driven by AI applications • Demand was also healthy in the PCB Test business line, driven by printed circuit boards used in advanced servers for training AI models
Slide 9: Outlook 2024 confirmed
Outlook 2024 confirmed Net sales 2024 SEK 6.5 billion 9
Slide 10: CFO and Sr VP Corporate Development
CFO and Sr VP Corporate Development Pierre Brorsson 10
Slide 11: Group net sales and EBIT margin rolling 12 months
Group net sales and EBIT margin rolling 12 months MSEK % 8000 50 7000 45 • Net sales R12 amounted to SEK 6,967 million 40 6000 35 • EBIT margin R12 at 30% 5000 30 • Aftermarket revenue R12 at SEK 1,664 million 4000 25 • 24% of net sales 3000 20 • Increasing quarter-on-quarter since Q1 2021 15 2000
Slide 12: Group net sales and EBIT margin per quarter
Group net sales and EBIT margin per quarter MSEK % 2500 40 35 • Net sales increased 40% vs Q3 2023, to SEK 1,780 2000 30 million 1500 25 • Strong EBIT margin, at 31% 20 1000 15 10 500 5 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 Aftermarket System EBIT margin 12
Slide 13: Group Q3 EBIT bridge
Group Q3 EBIT bridge MSEK +108% -21 547 87 -18 -8 -3 247 263 EBIT Q3 Volume Gross R&D M&S G&A Other EBIT Q3 2023 effect margin 2024 effect % of Sales 2023 21% 49% -12% -10% -6% 0% % of Sales 2024 54% -10% -8% -4% 0% 31% 13
Slide 14: Divisional Q3 EBIT contribution
Divisional Q3 EBIT contribution MSEK 31% 9 7 6 21% 6 attern Generators High le High Volume Glo al echnologies Group functions 14
Slide 15: Good cash flow despite dividend payment and acquisition
Good cash flow despite dividend payment and acquisition MSEK YTD 2024 YTD 2023 Cash flow from operations • Strong cash flow from operations before change in working capital 1,617 722 • Increase in working capital driven primarily by higher Change in working capital -400 323 inventory Cash flow from
Slide 16: President and CEO
President and CEO Anders Lindqvist 16
Slide 17: Sustainability
Sustainability • As part of efforts to achieve Mycronic’s Scope 1 and climate targets, several of the Group’s facilities in the US, Japan, and South Korea started purchasing renewable electricity from local electricity suppliers during the quarter • A total of more than 6 percent of the Group’s faci
Slide 18: MYCRONIC
MYCRONIC
Slide 19: Appendix: Q3 2024 Market update
APPENDIX Q3 2024 Market update
Slide 20: Outcome 2023
Outcome 2023 Market summary and updates • Global electronics industry 0.1% to 2,430 BnUSD1) • Semiconductors -8.0% to 527 BnUSD1) • Optical components -7.8% to 11.7 BnUSD3) • Printed circuit boards and substrates -15.0% to 69.5 BnUSD4 • Display market -4.0% to 118 BnUSD5) • Display photomasks 6.4% t
Slide 21: Forecasts 2024
Forecasts 2024 Market summary and updates • Global electronics industry 4.3% to reach 2,534 BnUSD1) • Semiconductor industry 14.7% to reach 605 BnUSD1) • Optical components market 24.1% to reach 14.5 BnUSD2) • Printed circuit boards and substrates market 5.5% to reach 73.3 BnUSD3) • Displays 11.5% t
Slide 22: Electronics industry systems
Electronics industry systems Yearly development by industry segment • Growth of 4.3% forecast for 2024, to reach USD billion 3 500 2,534 BnUSD, with strongest development in • Computers 11.8% 3 000 • Aerospace / Defense 5.4% • Industrial 5.3% 2 500 • Growth of 6.2% forecast for 2025, to reach 2 000
Slide 23: Semiconductors
Semiconductors Quarterly development USD billion 200 • -8.0% in 2023 to reach 527 BnUSD 175 • Forecast 14.7% growth in 2024 to reach 605 BnUSD 150 • 2023 to 2028 CAGR growth forecast at 125 6.9% to reach 737 BnUSD 100 75 50 25 0 2019 2020 2021 2022 2023 2024F 2025F 2026F 2027F 2028F Actual Forecast
Slide 24: SMT and Dispensing
SMT and Dispensing Market update SMT assembly equipment* • In 2023 the market declined 26.5% compared with previous year. Markets in Japan and Europe reported growth, while other markets reported a negative development1). • During the first two quarters, the market declined 17.0% compared with the s
Slide 25: Optical components for data/telecom
Optical components for data/telecom Long-term growth in key die bonding market driven by mega trends Optical components for data/telecom (BUSD) Healthy data/telecom long-term growth 13.0% 26.8 • Optical components production is the main 25.3 23.4 driver for die/lens attach and other adjacent process
Slide 26: Pattern Generators: Display panel market
Pattern Generators Display panel market BUSD Display panel revenue BUSD AMOLED display panel revenue 250 70 7.4% 61 60 54 57 200 4.6% 53 51 50 144 148 42 42 150 131 138 141 123 118 40 100 30 20 50 10 0 0 2022 2023 2024F 2025F 2026F 2027F 2028F 2022 2023 2024F 2025F 2026F 2027F 2028F • Display market
Slide 27: Pattern Generators: Photomask market
Pattern Generators Photomask market continued to develop positively 2023 after a very strong 2022 Billion Japanese Yen Thousands of square meters Mask Revenue Mask Area 200 30 2.4% 2.0% 25 150 20 100 15 10 50 5 0 0 2022 2023 2024F 2025F 2026F 2027F 2028F 2022 2023 2024F 2025F 2026F 2027F 2028F • The
Slide 28: Pattern Generators: AMOLED photomask demand
Pattern Generators Increasing photomask demand for AMOLED displays, 2023 another positive year Thousands of square meters Mask Area AMOLED 9 3.2% • AMOLED development for mobile, IT and TV displays drives 8 demand for AMOLED photomasks • 2023 area growth of photomasks for AMOLED displays was 16.6% 7
Slide 29: Bringing tomorrow's electronics to life
Bringing tomorrow’s electronics to life MYCRONIC