Slide 1: Investor Presentation Q2-2021 Results
INVESTOR PRESENTATION Q2-2021 RESULTS July 27, 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 July 27, 2021 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS July 27, 2021 4
Slide 5: Q2-21 Revenue & Net Income Exceed Guidance. Orders Up 97.6%
Q2-21 Revenue & Net Income Exceed Guidance. Orders Up 97.6% vs. Q2-20 Reflecting Ongoing Order Strength Guidance € millions Q2-21* Q2-21 ∆ Q1-21 ∆ Q2-20 Revenue up 30% to 40% 226.1 +57.9% +81.9% Orders 200.2 -38.8% +97.6% Gross Margin 58-60% 62.1% +3.9pts +0.1pts Opex flat to down 5% 33.6 -3.7% +17.
Slide 6: Revenue, Net Income and Margins Up Strongly in Q2-21 and H1-21
Revenue, Net Income and Margins Up Strongly in Q2-21 and H1-21 Q1-21/Q2-21 H1-20/H1-21 Revenue Net Income Revenue Net Income 250 400 € 369.3 € 226.1 350 € 143.2 + 57.9% € 215.6 + 71.3% 200 Gross Margin Gross Margin 300 58.2% + 3.9 points 62.1% 59.7% + 0.8 points 60.5% OPEX OPEX € 34.9 MM - 3.7% € 33
Slide 7: Revenue and Operating Profit Levels Significantly Above Last Cycle
Revenue and Operating Profit Levels Significantly Above Last Cycle Orders (€MM) Revenue (€MM) 780 682 700 +28.0% 800 700 +44.7% 600 533 600 539 500 • Orders up 44.7% vs. 2017 cycle* 500 400 349 356 400 348 349 300 • LTM Revenue +28.0% vs. LTM Q3-17 300 200 200 • LTM Operating profit +63.3% 100 100 0
Slide 8: Strong Liquidity Position Maintained. Share Buyback Program Expanded
Strong Liquidity Position Maintained. Share Buyback Program Expanded 700 Q2-21 vs. Q1-21 €129.4MM Cash and Deposits Net Cash dividend • Net cash of € 206.7 million decreased by € 9.5 598.7 605.8 million (-4.4%) principally due to: 600 • - € 129.4 million dividends paid 527.8 511.4 • - € 10.1 million
Slide 9: II. Market & Strategy
II. MARKET & STRATEGY July 27, 2021 9
Slide 10: Industry Upturn Continues
Industry Upturn Continues Source: VLSI, July 2021 July 27, 2021 10
Slide 11: Assembly Equipment Forecast Upgraded Through 2023
Assembly Equipment Forecast Upgraded Through 2023 7.0 50% Market Size* YoY Growth Rate 5.9 6.0 41.7% 40% 6.0 25.7% 5.1 30% 5.0 4.5 4.4 13.3% 20.6% 20% US$ billions 15.0% 4.0 3.6 3.6 10% 3.0 2.5% +42% growth now estimated for 2021 3.0 -2.4% 0% -10% 2.0 67% growth forecast 2020-2023E -20% 1.0 • Expect
Slide 12: Strategy Update 2021
Strategy Update 2021 • Maintain employee health and safety in face of new COVID-19 variants • Align operations to support growth of existing portfolio and new wafer-level Organization systems • Expanding US and Taiwanese development and support • Work continues on next generation systems with emphas
Slide 13: III. Outlook
III. OUTLOOK July 27, 2021 13
Slide 14: Guidance Q3-21
Guidance Q3-21 € in millions Q2-21 Q3-21 Seasonal Revenue Trends Q3E/Q2Δ -5% Average decline 2016-2020 (-12.7%) Revenue € 226.1 - -15% -10.0% 2021E* -12.9% 2020 -3.2% 2019 -27.6% 2018 Gross Margin 62.1% 60% - 62% -6.3% 2017 -13.5% 2016 • Projected Q3-21 decrease slightly better than -5% 12.7% averag
Slide 15: Financial Calendar
Financial Calendar 24-Aug-21 Annual Needham SemiCap and EDA conference (virtual) 2-Sep-21 Deutsche Bank European TMT conference (virtual) 7-Sep-21 ING Benelux conference (virtual) 14-Sep-21 Autumn Conference KeplerCheuvreux/Rabobank (virtual) 26-Oct-21 2021 third quarter results 17-Nov-21 Morgan Sta
Slide 16: IV. Financial Appendix
IV. FINANCIAL APPENDIX July 27, 2021 16
Slide 17: Through Cycle Revenue and Gross Margin Trends
Through Cycle Revenue and Gross Margin Trends € millions Revenue Gross Margin Gross Margin 800 70% 60.3% 700 60% 682 600 51.1% +57% 50% 593 500 39.5% 40% 424 400 34.1% 434 379 30% 300 4 year 302 averages 351 20% 200 164 191 10% 100 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 18: Revenue/Order Trends
Revenue/Order Trends Quarterly Trends 360 327 Q2-21 vs. Q1-21 320 • Revenue: +€ 82.9 million (+57.9%) 280 Revenue Orders • Exceeds high end of guidance 240 226 • Broad based growth across end user markets, € millions 200 primarily in high-end mobile 200 157 143 160 119 124 • Orders: € 200.2 million
Slide 19: IDM/Subcontractor Order Trends
IDM/Subcontractor Order Trends € millions 900 IDMs Subcontractors 779.5 800 680.9 700 600 35% 53% 483.1 500 472.1 Orders 32% 400 348.7 39% 53% 39% 55% 300 39% 65% 200 61% 68% 61% 47% 47% 61% 45% 100 - 2017 2018 2019 2020 LTM* * Last twelve months ended June 30, 2021 July 27, 2021 19
Slide 20: Gross Margin Trends
Gross Margin Trends Quarterly Trends 240 226.1 75% Revenue Gross Margin 200 70% Q2-21 vs. Q1-21 • 62.1% vs. 58.2% 160 143.2 • Exceeded high end of guidance (58%-60%) € millions 65% 124.3 • Higher than anticipated shipments from backlog 120 108.3 109.7 91.3 62.0% 60.8% 62.1% • Favorable product mix 8
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 30.0 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 18.2% 20% 30.0 25.4 25.0 26.0 23.1 23.3 13.3% 10% 10.0 0% Q1-20 Q2-20 Q3-20
Slide 22: Headcount Trends
Headcount Trends Increasing Temporary Asian Production Personnel in Response to Increased Customer Demand 2,500 +600 2,218 2,040 (+37%) 2,000 1,901 +554 316 1,759 (+583%) 649 67 1,596 1,618 363 62 95 1,500 Headcount 1,222 1,230 1,000 1,081 1,060 1,070 1,096 500 502 462 453 463 468 473 0 2017 2018 20
Slide 23: Net Income Trends
Net Income Trends 100 Quarterly Trends € 93.5 100% 90 Net Income Net Margin Adj. Net Margin Q2-21 vs. Q1-21 80 80% • € 93.5 million (+€ 55.9 million) 70 • Net margin up 15.0 points to 41.3% 60 60% • +57.9% revenue • +3.9 points gross margin € millions 50 € 44.6 € 39.8 € 37.6 • +€ 1.3 million (3.7%)
Slide 24: Cash Flow Efficiency Trends
Cash Flow Efficiency Trends € millions % of Revenue 200 190.2 184.1 180 168.2 162.0 160 140 120.1 120 37.4% 98.7 35.0% 100 33.7% 32.4% 28.4% 80 26.3% 60 40 20 0 2016 2017 2018 2019 2020 LTM Total Cash Flow from Operations As % of Revenue July 27, 2021 24
Slide 25: Capital Allocation Trends
Capital Allocation Trends € millions 209.5 200 35.5 Dividends 167.1 Share Repurchases 149.6 150 44.7 20.2 € 891.7 million distributions since 2011*: • € 1.70 dividend/share for 2020 paid in May 2021 (€ 129.4 million) 100 88.8 91.3 Share repurchase program increased and 174.0 23.5 17.8 extended 129.4
Slide 26: Dividend Trends
Dividend Trends Dividend (€) Dividend Payout Ratio 3.00 Cumulative dividends of € 705.6 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 27: Share Repurchase Activity
Share Repurchase Activity 50 80.0 44.6 45 70.0 40 € 63.78 35.5 60.0 35 Avg Cost per Share 50.0 € millions 30 25 22.4 22.8 40.0 € 38.05 20.2 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* Share Repurchases Average Cost per Share • 0.4 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