Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Besi — Q3 2021 Earnings Presentation
28 slides from Be Semiconductor Industries's earnings presentation, Oct 26, 2021
Slide 1: Investor Presentation Q3-2021 Results
INVESTOR PRESENTATION Q3-2021 RESULTS October 26, 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 October 26, 2021 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS October 26, 2021 4
Slide 5: Results at Midpoint of Guidance; Q3-21 Order Strength Reflects Advanced Packaging Investment
Results at Midpoint of Guidance. Q3-21 Order Strength Reflects Ongoing Advanced Packaging Investment and New Hybrid Bonding Orders Guidance € millions Q3-21* Q3-21 ∆ Q2-21 ∆ Q3-20 Revenue down 5%-15% 208.3 -7.9% +92.3% Orders 209.2 +4.5% +120.4% Gross Margin 60-62% 60.4 -1.7pts -0.4pts Opex down 5-1
Slide 6: Revenue and Profitability up Strongly in Q3-21 and YTD-21
Revenue and Profitability up Strongly in Q3-21 and YTD-21 Q3-20/Q3-21 YTD-20/YTD-21 Revenue Net Income Revenue Net Income 600 € 577.6 250 € 208.3 + 78.3% + 92.3% 500 € 108.3 200 Gross Margin € 323.9 Gross Margin 60.8% - 0.4 points 60.4% 60.1% + 0.4 points 60.5% OPEX 400 OPEX € 23.9 MM + 27.2% € 30.4
Slide 7: Performance Significantly Above Last Cycle
Performance Significantly Above Last Cycle Orders (€MM) Revenue (€MM) 1000 1000 894 900 900 +43.5% 800 765 800 700 +29.0% • LTM Orders +43.5% vs. 2017 700 623 593 600 600 500 500 356 • 2021E Revenue +29.0% vs. 2017 349 400 349 400 348 300 300 200 200 • 2021E Operating profit +59.3% 100 100 0 2015 LT
Slide 8: Liquidity Position Has Also Expanded Q3-21 vs. Q2-21
Liquidity Position Has Also Expanded 700 Q3-21 vs. Q2-21 € 129.4MM Cash and Deposits Net Cash dividend • Total cash +79.1 million (15.5%) 598.7 605.8 590.5 • +€ 98.6 million cash flow from operations 600 • - € 14.2 million share repurchases +15.5% 527.8 511.4 • - € 5.5 million capitalized developmen
Slide 9: II. Market & Strategy
II. MARKET & STRATEGY October 26, 2021 9
Slide 10: Industry Upturn Continues
Industry Upturn Continues Source: VLSI, October 2021 October 26, 2021 10
Slide 11: Assembly Equipment Forecast Upgraded Through 2023
Assembly Equipment Forecast Upgraded Through 2023 7.0 60% Market Size* YoY Growth Rate 52.8% 5.9 5.8 6.0 5.5 40% 25.0% 5.0 4.5 4.4 16.1% 20.0% US$ billions 4.0 3.6 20% 3.6 +52.8% growth now estimated 3.0 7.3% 3.0 0% for 2021 vs. 41.7% at end of Q2 -2.2% -1.7% 2.0 -20% VLSI expects market to grow to
Slide 12: Strategy Update 2021
Strategy Update 2021 • Maintain employee health and safety in face of new COVID-19 variants • Refining strategic plan 2021-2025, organization and management to Organization support growth of <7 nm and existing advanced packaging portfolio • ESG activities expanded to comply with SASB and TCFD framew
Slide 13: III. Outlook
III. OUTLOOK October 26, 2021 13
Slide 14: Guidance Q4-21 and FY 2021
Guidance Q4-21 and FY 2021 € in millions Q3-21 Q4-21 2020 2021E* -5% Revenue € 208.3 - € 433.6 +76% -15% Gross Margin 60.4% 59% - 61% 59.6% ~60% Operating Expenses € 30.4 Flat +/- 5% € 108.7 +19% -15% * 2021E assumes midpoint of guidance for Q4-21 October 26, 2021 14
Slide 15: Financial Calendar
Financial Calendar 26-Oct-21 2021 third quarter results 17-Nov-21 Morgan Stanley TMT conference (virtual) 19-Nov-21 JP Morgan TMT conference Asia (virtual) 24-Nov-21 Kempen London conference, London (virtual) 9-Dec-21 ING Benelux conference, New York (virtual) 11-Jan-22 Annual Needham Growth confere
Slide 16: IV. Financial Appendix
IV. FINANCIAL APPENDIX October 26, 2021 16
Slide 17: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 900 70% 800 60.4% 60% 58.2% 765 700 51.1% +76% 50% 600 593 520 40% 500 39.5% 34.1% 424 400 30% 4 year 379 300 averages 302 351 20% 200 164 10% 100 191 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 201
Slide 18: Revenue/Order Trends
Revenue/Order Trends Quarterly Trends Q3-21 vs. Q2-21 360 327 • Revenue: -€ 17.8 million (-7.9%) 320 Revenue Orders • At favorable end of guidance (-5-15%) 280 • Lower high-end mobile post H1 capacity build 240 226 • Supply chain constrained shipments € millions 200 208 209 200 • Partial offset: Inc
Slide 19: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 1,000 IDMs Subcontractors 893.8 900 800 680.9 700 49% 600 35% 483.1 Orders 472.1 500 400 32% 348.7 39% 53% 39% 55% 300 39% 65% 61% 200 61% 51% 47% 68% 100 61% 45% - 2017 2018 2019 2020 LTM* * Last twelve months ended September 30, 2021 October 26, 2021 19
Slide 20: Gross Margin Trends
Gross Margin Trends Quarterly Trends 240 226.1 75% Revenue Gross Margin 208.3 Q3-21 vs. Q2-21 200 70% • 60.4% vs. 62.1% 160 • Lower end of guidance (60%-62%) 143.2 • Less favorable product mix € millions 124.3 65% 120 108.3 109.7 62.1% 62.0% 91.3 60.8% 60.4% Q3-21 vs. Q3-20 60% 80 58.3% 58.2% • 60.4
Slide 21: Baseline Operating Expense Trends
Baseline Operating Expense Trends Baseline Opex Other Opex* Baseline Opex % of Revenue 40.0 60% 34.9 33.6 50% 33.0 Operating Expenses (€ millions) 3.6 30.4 30.0 8.9 40% 28.6 7.6 3.6 23.9 30% 23.3 27.8% 0.8 20.1% 21.3% 21.2% 30.4 20.0 18.2% 30.0 20% 25.4 25.0 26.0 14.6% 23.1 23.3 13.3% 10% 10.0 0% Q1
Slide 22: Headcount Trends
Headcount Trends 2,500 2,218 2,254 2,040 Increasing R&D and Service HC 2,000 1,901 in 2021: 649 639 316 1,759 67 1,596 1,618 363 • Fixed and temporary 62 95 • R&D + 20% 1,500 • Service + 40% • Expand hybrid and wafer level Headcount 1,222 assembly capabilities 1,230 1,132 1,000 1,081 1,060 1,070 1,0
Slide 23: Net Income Trends
Net Income Trends 100 Quarterly Trends € 93.5 100% Q3-21 vs. Q2-21 € 84.2 • € 84.2 million (-€ 9.3 million) 80 Net Income Net Margin 80% • -7.9% revenue decrease Adj. Net Margin • -1.7 point gross margin decrease • Partial offset: 60 60% € 44.6 • +€ 3.2 million (9.5%) opex decrease: € millions € 39.
Slide 24: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 250 227.8 200 184.1 37.4% 168.2 35.0% 33.7% 162.0 33.2% 150 28.4% 26.3% 120.1 98.7 100 50 0 2016 2017 2018 2019 2020 LTM Total Cash Flow from Operations As % of Revenue October 26, 2021 24
Slide 25: Capital Allocation Trends
Capital Allocation Trends 250 Dividends € 905.9 Million Distributions Since 2011* 209.5 Share Repurchases 200 35.5 167.1 163.8 150 44.7 34.4 € millions 100 88.8 91.3 174.0 17.8 23.5 122.4 129.4 50 73.5 65.3 0 2017 2018 2019 2020 2021* 17% 19% 21% 26% 27% 74% 83% 73% 81% 79% * Shares repurchases incl
Slide 26: Dividend Trends
Dividend Trends Dividend (€) Cumulative dividends of € 705.6 MM since 2011, or € 9.45 per share Dividend Payout Ratio 3.00 120% 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 Share Repurchases Average Cost per Share 50 80.0 44.6 45 70.0 € 67.81 40 35.5 60.0 34.3 35 Avg Cost per Share 50.0 30 € millions 25 22.4 22.8 40.0 € 38.05 20 17.8 30.0 15 € 23.74 € 24.31 € 21.86 20.0 10 € 12.44 10.0 5 0 0.0 2016 2017 2018 2019 2020 2021* • 0.5 million treas
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