Mycronic Ab · OMXSTO:MYCR
Mycronic Ab — Q2 2024 Earnings Presentation
29 slides from Mycronic Ab's earnings presentation, Jul 12, 2024
Slide 1: Second quarter 2024
Second quarter 2024
Slide 2: President and CEO
President and CEO Anders Lindqvist 2
Slide 3: Agenda
Agenda • Q2 in short • Divisional development • Financials • Sustainability • Q&A • Appendix – Market update 3
Slide 4: Q2 in short: Strong quarter
Q2 in short Strong quarter • Order intake increased 22% to SEK 2,125 (1,748) million • Driven mainly by Pattern Generators and with positive contributions from High Flex and High Volume • Net sales increased 23% to SEK 1,527 (1,245) million • EBIT more than doubled to SEK 348 (170) million • EBIT ma
Slide 5: Pattern Generators
Pattern Generators Share of Group’s net sales Net sales SEK 650 M EBIT SEK 342 M High performance 43% Order intake SEK 1,199 M EBIT margin 53% • Photomask markets for both displays and semiconductors were positive • Prexision 8000 Evo and MMX launched • Very strong order intake, increasing 49% to SE
Slide 6: High Flex
High Flex Positive development • The market for production equipment strengthened slightly compared with the preceding quarter, but can still be considered as cautious • Demand in Europe was good, whereas the US was characterized by uncertainty ahead of the autumn election • Order intake increased 4
Slide 7: High Volume
High Volume Stable Chinese market • High Volume’s Chinese domestic market for consumer electronics noted healthy demand • Orders from the electric vehicle industry outside China were however slow • Order intake increased 2% • Net sales increased 29% • Gross margin at 41 (44)% • EBIT at SEK 45 (41) m
Slide 8: Global Technologies
Global Technologies Mixed development • The PCB test business line reported healthy demand for its products, primarily driven by AI investments • In parallel, demand in die bonding was slow in the second quarter • Integration of Vanguard Automation, acquired at the beginning of the quarter and formi
Slide 9: Outlook 2024 revised upwards
Outlook 2024 revised upwards Net sales SEK 6.5 (6.25) 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 % 7000 50 45 6000 • Net sales R12 amounted to SEK 6,461 million 40 5000 35 • EBIT margin R12 at 28% 4000 30 • Aftermarket revenue R12 at SEK 1,663 million 25 • 26% of net sales 3000 20 • Increasing quarter-on-quarter since Q1 2021 2000 15 10 100
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 23% vs Q2 2023, to SEK 1,527 2000 30 million 1500 25 • Solid EBIT margin, at 23% 20 1000 15 10 500 5 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 Aftermarket System EBIT margin 12
Slide 13: Group Q2 EBIT bridge
Group Q2 EBIT bridge MSEK +105% 348 -20 20 -6 0 49 135 170 EBIT Q2 Volume Gross R&D M&S G&A Other EBIT Q2 2023 effect margin 2024 effect % of Sales 2023 14% 48% -13% -15% -7% 1% % of Sales 2024 51% -12% -11% -6% 1% 23% 13
Slide 14: Divisional Q2 EBIT contribution
Divisional Q2 EBIT contribution MSEK 23% 14% 14
Slide 15: Solid cash flow despite dividend payment and acquisition
Solid 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 1,004 407 • Decrease in working capital primarily driven by lower Change in working capital 115 426 trade receivables and incr
Slide 16: President and CEO
President and CEO Anders Lindqvist 16
Slide 17: Sustainability
Sustainability • The Science Based Target initiative (SBTi) approved Mycronic’s two proposed new climate targets • Replace the Group’s previously communicated climate target • The company’s targets and agenda to reduce the Group’s climate impact is thereby in line with the aim of the Paris Agreement
Slide 18: Q&A
Q&A 18
Slide 19: Appendix: Q2 2024 Market update
APPENDIX Q2 2024 Market update
Slide 20: Preliminary outcome 2023
Preliminary 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 -3.9% to 118 BnUSD5) • Display photo
Slide 21: Forecasts 2024
Forecasts 2024 Market summary and updates • Global electronics industry 5.1% to reach 2,555 BnUSD1) • Semiconductor industry 11.4% to reach 587 BnUSD1) • Optical components market 24.1% to reach 14.5 BnUSD2) • Printed circuit boards and substrates market 5.0% to reach 73.0 BnUSD3) • Displays 13.0% t
Slide 22: Electronics industry systems
Electronics industry systems Yearly development by industry segment • Small growth of 0.1% in 2023, to reach 2,430 USD billion 3 500 BnUSD, with strongest development in • Automotive 11.8% 3 000 • Aerospace / Defense 6.8% • Industrial 5.9% 2 500 • Growth of 5.1% forecast for 2024, to reach 2 000 2,5
Slide 23: Semiconductors
Semiconductors Quarterly development USD billion 200 • -8.0% in 2023 to reach 527 BnUSD 175 • Forecast 11.4% growth in 2024 to reach 587 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 quarter the market declined 26.1% compared to the same peri
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 7.2% 60 60 56 200 5.4% 51 53 49 154 50 144 149 42 42 150 133 140 123 118 40 100 30 20 50 10 0 0 2022A 2023A 2024F 2025F 2026F 2027F 2028F 2022A 2023A 2024F 2025F 2026F 2027F 2028F • Display ma
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 2022A 2023A 2024F 2025F 2026F 2027F 2028F 2022A 2023A 2024F 2025F 2026F 2027F 2028F •
Slide 28: Pattern Generators: Photomask demand for AMOLED displays
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