Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q1 2021 Earnings Presentation
27 slides from Be Semiconductor Industries's earnings presentation, Apr 30, 2021
Slide 1: Investor Presentation Q1-2021 Results
INVESTOR PRESENTATION Q1-2021 RESULTS April 30, 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 April 30, 2021 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS April 30, 2021 4
Slide 5: Record Q1-21 Order Intake. € 484 Million Orders Past Six Months
Q1-21 Revenue & Net Profit Up 56.8% and 170.5% vs Q1-20. Record Q1-21 Order Intake. € 484 Million Orders Past Six Months Guidance € millions Q1-21* Q1-21 ∆ Q4-20 ∆ Q1-20 Revenue +30% - +40% 143.2 +30.5% +56.8% Orders n/a 327.1 +107.9% +175.8% Gross Margin 58-60% 58.2% -0.1 +1.5 Opex + 50% - +55% 34.
Slide 6: Strong Quarterly Revenue and Profit Growth
Strong Quarterly Revenue and Profit Growth Q1-20/Q1-21 Q4-20/Q1-21 Revenue Net Income Revenue Net Income 160 160 € 143.2 € 143.2 + 30.5% 140 140 + 56.8% € 109.7 120 € 91.3 120 Gross Margin Gross Margin + 1.5 points 58.3% - 0.1 points 58.2% 56.7% 58.2% OPEX 100 OPEX 100 Revenue (€ millions) Revenue (
Slide 7: Liquidity Position Enhanced
Liquidity Position Enhanced Cash and Deposits Net Cash 700 Q1-21 net cash comparison • + € 17.5 million (+8.8%) vs. Q4-20 to € 216.2 million 598.7 605.8 • Invested € 35.6 million in working capital to help 600 support order ramp 527.8 • + € 67.9 million (+45.8%) vs. Q1-20 500 475.5 408.4 Q1-21 cash
Slide 8: II. Market & Strategy
II. MARKET & STRATEGY April 30, 2021 8
Slide 9: Industry Upturn Continues
Industry Upturn Continues Source: VLSI, April 2021 April 30, 2021 9
Slide 10: Assembly Equipment Forecast Upgraded Through 2023
Assembly Equipment Forecast Upgraded Through 2023 Market Size YoY Growth Rate 6.0 5.1 50% 4.5 4.4 5.2 5.0 4.5 30% US$ billions 3.6 3.5 30.5% 4.0 3.0 25.7% 15.6% 10% 14.4% 3.0 13.3% -2.4% -0.4% -10% 2.0 1.0 -30% -31.7% 0.0 -50% 2016 2017 2018 2019 2020E 2021E 2022E 2023E Source: VLSI, April 2021 Besi
Slide 11: Strategy Update
Strategy Update • Scaling production to align with rapidly growing order book • Malaysia/China facilities fully operational Production • Increased temporary Asian production personnel by 264 people (~8x) versus year end 2020 • Current delays caused by issues including basic components such as motors
Slide 12: III. Outlook
III. OUTLOOK April 30, 2021 12
Slide 13: Guidance Q2-21
Guidance Q2-21 Revenue Gross Margin Operating Expenses +30% € 143.2 - 58.2% 58%-60% € 34.9 0% - +40% -5% Q1-21 Q2-21 Q1-21 Q2-21 Q1-21 Q2-21 € in millions April 30, 2021 13
Slide 14: Financial Calendar
Financial Calendar 7-May-21 Goldman Sachs European Small and Mid Cap Symposium (virtual) 26-May-21 ABN AMRO – ODDO BHF Benelux Conference (virtual) 10-Jun-21 Besi analyst meeting (virtual) 17-Jun-21 Goldman Sachs Inaugural Digital Economy Conference (virtual) 17-Jun-21 ING Benelux conference Frankfu
Slide 15: IV. Financial Appendix
IV. FINANCIAL APPENDIX April 30, 2021 15
Slide 16: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 700 70% 59.0% 600 60% 593 51.1% 555 500 +28% 50% 424 +22% 400 39.5% 434 40% 34.1% 379 356 300 302 30% 4 year 351 averages 200 20% 164 191 100 10% 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 17: Revenue/Order Trends
Revenue/Order Trends Revenue Orders Q1-21 vs. Q4-20 350 327 • Revenue: € 143.2 million (+30.5%) • Primarily high-end smartphone applications 300 • Lower end of guidance (up 30-40%) due to certain supply chain constraints 250 • Orders: € 327.1 million (+107.9%) • Record quarterly orders 200 • Broad b
Slide 18: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 800 IDMs Subcontractors 700 680.9 680.6 600 35% 500 483.1 472.1 56% Orders 400 32% 348.7 55% 39% 53% 300 39% 39% 65% 200 68% 61% 61% 44% 47% 100 61% 45% - 2017 2018 2019 2020 LTM* * Last twelve month ended March 31, 2021 April 30, 2021 18
Slide 19: Gross Margin Trends
Gross Margin Trends Revenue Gross Margin 160 70% Q1-21 vs. Q4-20 143.2 • 58.2% vs. 58.3% 140 68% • Within guidance (58%-60%) 124.3 66% • Gross margins adversely affected by net forex 120 negative & additional costs to ramp supply chain 108.3 109.7 64% • Net forex negative: Revenue USD vs EUR 62.0% C
Slide 20: Baseline Operating Expense Trends
Baseline Operating Expense Trends Baseline Opex Other Opex* Baseline Opex % of Revenue 40.0 60% 34.9 50% 33.0 Operating Expenses (€ millions) 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% 20.0 20% 18.2% 25.4 25.0 26.0 23.1 23.3 10% 10.0 0% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 * Other
Slide 21: Increasing Temporary Asian Production Personnel in Response to Increased Customer Demand
Increasing Temporary Asian Production Personnel in Response to Increased Customer Demand 2,500 20% 18% 2,040 2,000 1,901 16% +283 316 1,759 67 1,618 +264 363 14% 1,596 62 95 Temp % of Total 1,500 12% Headcount 10% 1,222 1,230 1,000 1,081 1,060 1,070 8% 6% 500 4% 502 462 453 463 468 2% 0 0% 2017 2018
Slide 22: Net Income Trends
Net Income Trends 50 € 47.4 € 44.6 60% 45 € 42.0 Q1-21 vs. Q4-20 € 39.8 • € 37.6 million (-€ 7.0 million) 40 € 37.6 50% • Adjusted € 47.4 million* vs. € 34.9 million € 35.0 € 34.9 € 34.0 35 • Adjusted net margin* 33.1% vs. 31.8% 30 40.7% 40% • + 30.5% higher revenue 33.8% 32.3% • - € 2.7 million inc
Slide 23: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 200 184.1 180 168.2 162.0 161.7 160 140 120.1 120 37.4% 98.7 35.0% 100 33.7% 33.3% 28.4% 80 26.3% 60 40 20 0 2016 2017 2018 2019 2020 LTM Total Cash Flow from Operations As % of Revenue April 30, 2021 23
Slide 24: Capital Allocation Trends
Capital Allocation Trends € millions 209.5 200 35.5 Dividends 167.1 Share Repurchases € 883.6 million distributions since 2011*: 150 44.7 141.4 • € 1.70 dividend/share for 2020 payable from 13.1 May 7, 2021 (€ 128.3 million) Share repurchase program continues until 100 88.8 91.3 October 2021: 174.0
Slide 25: Dividend Trends
Dividend Trends Dividend (€) Dividend Payout Ratio 3.00 Cumulative dividends of € 704.6 MM since 2011, or € 9.45 per share 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 26: Share Repurchase Activity
Share Repurchase Activity 50 80.0 44.6 45 70.0 40 35.5 € 59.45 60.0 35 Avg Cost per Share 50.0 € millions 30 25 22.4 22.8 40.0 € 38.05 20 17.8 30.0 15 € 23.74 € 24.31 € 21.86 10.1 20.0 10 € 12.44 10.0 5 0 0.0 2016 2017 2018 2019 2020 2021* Share Repurchases Average Cost per Share • 5.2 million treas
Slide 27: 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
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