Mycronic Ab · OMXSTO:MYCR
Mycronic Ab — Q1 2023 Earnings Presentation
29 slides from Mycronic Ab's earnings presentation, Apr 27, 2023
Slide 1: First quarter 2023
—~ =< .§ Wee First quarter2023
Slide 2: CEO & President
CEO & President Anders Lindqvist 2
Slide 3: Agenda
Agenda • Q1 in short • Divisional development • Financials • Sustainability • Q&A • Appendix – Market update 3
Slide 4: Increased order intake
Increased order intake • Order intake increased 12% to SEK 1,617 (1,441) million • Driven by a strong performance in Pattern Generators • Net sales increased 7% to SEK 1,219 (1,135) million • 2% organic growth • EBIT at SEK 182 (206) million • In line with previous year, adjusted for the divestment
Slide 5: Pattern Generators
Pattern Generators Share of Group’s net sales Net sales SEK 351 M EBIT SEK 149 M Sustained SLX momentum 29% Order intake SEK 816 M EBIT margin 42% • The photomask market for semiconductors on mature design nodes remained strong • Strong order intake, with eight systems • One Prexision 8 Evo, one FPS
Slide 6: High Flex
High Flex Decent start to 2023 • Demand remained healthy in Europe and North America, while it continued at a low level in China • High level of activity at the APEX trade show in San Diego, an indication of an increased investment interest in the electronics industry in the US and Mexico • Order in
Slide 7: High Volume
High Volume Geographic expansion, with China slow • Investments among consumer electronics manufacturers have not yet recovered after the lifting of covid restrictions in China • Order intake declined 41% • EVs continue to be a focus area, as does geographic expansion outside China. An initial order
Slide 8: Global Technologies
Global Technologies Slow quarter • Electrical testing of PCBs and substrates slowed during the quarter, with weak demand related to the consumer electronics industry • In die bonding, the largest markets – data and telecom – remained weak, as did the Chinese market as a whole • Order intake decrease
Slide 9: Outlook 2023 confirmed
Outlook 2023 confirmed Net sales SEK 5.5 billion 9
Slide 10: CFO & Sr VP Corporate Development
CFO & 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 % 6000 50 45 5000 • Net sales R12 amounted to SEK 5,203 million 40 35 • EBIT margin R12 at 17% 4000 30 • Aftermarket revenue R12 increasing quarter-on-quarter 3000 25 since Q1 2021 20 2000 15 10 1000 5 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023
Slide 12: Group net sales and EBIT margin per quarter
Group net sales and EBIT margin per quarter MSEK % 1600 25 1400 • Net sales increase of 7% vs Q1 2022 mainly explained 20 1200 by positive currency effects 1000 15 • 2% organic growth 800 • Weaker EBIT-margin mainly explained by 600 10 • EBIT related to Group functions decreased SEK 34 million, larg
Slide 13: Group Q1 EBIT bridge
Group Q1 EBIT bridge MSEK -11% -15 38 -41 206 37 -10 -33 182 EBIT Q1 Volume Gross R&D M&S G&A Other EBIT Q1 2022 effect margin 2023 effect % of Sales 2022 18% 44% -13% -12% -5% 4% % of Sales 2023 47% -13% -14% -6% 1% 15% 13
Slide 14: Divisional Q1 EBIT contribution
Divisional Q1 EBIT contribution MSEK 18% 15% 14
Slide 15: Cash flow
Cash flow MSEK Q1 2023 Q1 2022 Cash flow from operations • Healthy cash flow from operations before change in working capital 235 169 • The divestment of AEi generated SEK 215 million in cash Change in working capital 167 -96 flow in Q1 2022 Cash flow from operations 402 73 • Strong net cash positio
Slide 16: CEO & President
CEO & President Anders Lindqvist 16
Slide 17: Sustainability
Sustainability • Mycronic’s divisions established sustainability goals for 2023 and are, in connection with the annual strategy process, working to strengthen their long- term action plans • A working group was formed with the assignment of preparing proposals for science-based climate targets • It
Slide 18: Q&A
Q&A 18
Slide 19: Appendix: Q1 2023 Market update
APPENDIX Q1 2023 Market update
Slide 20: Preliminary outcome 2022
Preliminary outcome 2022 Market summary and updates • Global electronics -2.1% to 2,426 BnUSD1) • Semiconductors 3.1% to 573 BnUSD1) • Optical components 14.5% to 13.6 BnUSD3) • Printed circuit boards and substrates 1.0% to 81.7 BnUSD4 • Display market -21.9% to 123 BnUSD5) • Display photomasks 9.8%
Slide 21: Forecasts 2023
Forecasts 2023 Market summary and updates • Global electronics industry 0.9% to reach 2,447 BnUSD1) • Semiconductor industry -6.6% to reach 535 BnUSD1) • Optical components market 5.1% to reach 14.3 BnUSD2) • Printed circuit boards and substrates market -4.1% to reach 78.4 BnUSD3) • Displays -0.5% t
Slide 22: Electronics industry systems
Electronics industry systems Yearly development by industry segment • Forecast -2.1% in 2022, to reach 2,426 USD billion 3 500 BnUSD, with strongest development in • Industrial 10.9% 3 000 • Automotive 5.0% • Aerospace / Defense 4.4% 2 500 • Modest growth of 0.9% forecast for 2023, to 2 000 reach 2,
Slide 23: Semiconductors
Semiconductors Quarterly development USD billion 200 • Estimated 3.1% growth in 2022 to reach 573 BnUSD 175 • Forecast -6.6% in 2023 to reach 535 150 BnUSD 125 • 2022 to 2027 CAGR growth forecast at 4.6% to reach 716 BnUSD 100 75 50 25 0 2019 2020 2021 2022F 2023F 2024F 2025F 2026F 2027F Actual Fore
Slide 24: SMT and Dispensing
SMT and Dispensing Market update SMT assembly equipment* • The segment declined by 17.9 percent in 2022 to USD 3,062 million, although the markets in Europe and North and South America reported growth.1) Dispensing* • 2022 market estimated at 930 MUSD2), a growth of 2.2%. • Mycronic is the number on
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 22.3 10.4% 20.2 • Optical components production is the main 18.1 driver for die/lens attach and other adjacent 15.9 pr
Slide 26: Pattern Generators: Display panel market
Pattern Generators Display panel market BUSD Display panel revenue BUSD AMOLED display panel revenue 250 70 5.3% -21.9% 3.2% 60 -2.1% 54 200 51 53 50 48 157 43 42 45 150 137 140 144 123 122 131 40 100 30 20 50 10 0 0 2021A 2022F 2023F 2024F 2025F 2026F 2027F 2021A 2022F 2023F 2024F 2025F 2026F 2027F
Slide 27: Pattern Generators: Positive photomask market
Pattern Generators Positive photomask market Billion Japanese Yen Thousands of square meters Mask Revenue Mask Area 140 25 1.8% 1.7% 120 20 100 80 15 60 10 40 5 20 0 0 2021A 2022F 2023F 2024F 2025F 2026F 2021A 2022F 2023F 2024F 2025F 2026F • Display masks expected to have developed strongly during 2
Slide 28: Increasing photomasks demand for AMOLED displays
Pattern Generators Increasing photomasks demand for AMOLED displays Thousands of square meters Mask Area AMOLED 8 • Technology shift from LCD to AMOLED for mobile and IT 3.9% displays drives demand for AMOLED photomasks 7 • Share of AMOLED photomasks will grow from 33% 2022 to 36% 6 2026 in relation
Slide 29: Bringing tomorrow's electronics to life
Bringing tomorrow’s electronics to life MYCRONIC