Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q2 2018 Earnings Presentation
20 slides from Be Semiconductor Industries's earnings presentation, Jul 26, 2018
Slide 1: Investor Presentation: Q2 and H1-2018 Results
INVESTOR PRESENTATION Q2 and H1-2018 RESULTS JULY 26, 2018
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. Strategic Review III. Market/Outlook IV. Financial Appendix July 26, 2018 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS July 26, 2018 4
Slide 5: Besi Q2-18 Results In Line with Revised Revenue Guidance
Besi Q2-18 Results In Line with Revised Revenue Guidance. Exceed Operating Profit Expectations € millions Q2-18 ∆ Q1-18 ∆ Q2-17 Revenue 161.1 +4.0% -5.2% Orders 86.3 -58.1% -33.7% Gross Margin 56.5% 0.0 -0.8 Net Income 47.2 +27.2% -9.9% EPS Basic 0.63 +26.0% -10.0% EPS Diluted 0.58 +26.1% -10.8% Net
Slide 6: Solid HY1-18 and Sequential Quarterly Performance
Solid HY1-18 and Sequential Quarterly Performance HY1-18/HY1-17 Q2-18/Q1-18 Revenue Net Margin Revenue Net Margin 360 100% 180 100% +12.8% +4.0% € 316.0 € 161.1 320 90% 160 € 154.9 90% € 280.2 280 80% 140 80% Gross Margin Gross Margin 56.7% -0.2 points 56.5% 56.5% = 56.5% 240 70% 120 70% OPEX OPEX €
Slide 7: HY1-18 Performance Varies by Besi End User Market
HY1-18 Performance Varies by Besi End User Market Estimated Revenue % By End User Application 35% 25% 17% • Q2-18 slow down in high end smart phone orders 12% 11% • Customers digesting significant capacity added in 2017 and Q1-18 • Roll out of advanced features delayed 2017 2018E 2017 2018E 2017 201
Slide 8: Liquidity Trends
Liquidity Trends Cash and Deposits Net Cash Q2-18 vs. Q1-18 600 571.0 • Net cash of € 110.2 million post dividend payment of € 174.0 MM Dividend € 174.0 million 527.8 2017 • CF from Ops of € 7.0 million limited primarily due to € 26 500 million A/R increase • Q3-18 cash flow generation to rebound se
Slide 9: Capital Allocation Mix
Capital Allocation Mix Cumulative Distributions: € 459.5 MM Since 2011* 200 Current policy: 185.3 • Net cash above € 80 million available for dividends and share 180 11.3 6% repurchases 160 • Absolute level and mix can vary per annum 140 • Pay 40-100% of net income/annum in dividends • Convertible f
Slide 10: II. Strategic Review
II. STRATEGIC REVIEW July 26, 2018 10
Slide 11: Revenue Opportunities
Revenue Opportunities Roll out of 3D imaging and other advanced features to mobile supply chains Ongoing push for ever greater cloud memory/logic capacity Steady growth of electronic content and safety requirements in automotive business Substantial expansion of Chinese semiconductor infrastructure
Slide 12: Cost Opportunities
Cost Opportunities • On target to reach annual cost savings of € 15-20 million by 2021 • 2018 Activities: • Moved remaining tooling from NL to Asia • Initiated transfer of 100 European personnel functions to Asia over next two years in areas of R&D support, supply chain, administration and IT • Bega
Slide 13: III. Outlook
Besi nam Ill. OUTLOOK July 26, 2018 3
Slide 14: Guidance Q3 and Nine Months 2018
Guidance Q3 and Nine Months 2018 Q3-18/Q2-18 YTD-18/YTD-17* Revenue Revenue € 161.1 € 439.5 -25% 0% - - -30% -2% Q2-18 Q3-18 YTD-17 YTD-18 Gross Margin Gross Margin 56.5% 57.4% 54% 55% - - 56% 57% Q2-18 Q3-18 YTD-17 YTD-18 Operating Expenses Operating Expenses € 31.8 € 95.0 Approx. +8% Equal Q2-18 Q
Slide 15: Financial Calendar
Financial Calendar 6-Sep-18 ING Benelux Conference, London 7-Sep-18 Deutsche Bank TMT Conference, London 12/13-Sep-18 Deutsche Bank Technology Conference, Las Vegas 13-Sep-18 Kepler Cheuvreux Autumn Conference, Paris 3-Oct-18 Berenberg TMT Conference, Zurich 25-Oct-18 2018 Third Quarter Results 14/1
Slide 16: IV. Financial Appendix
IV. FINANCIAL APPENDIX July 26, 2018 16
Slide 17: Revenue/Order Trends
Revenue/Order Trends Q2-18 vs. Q1-18 • Revenue: € 161.1 million (+4.0%) Revenue Orders • Orders: € 86.3 million (-58.1%) 280 • Reduced demand for high end smart phones after significant 2017/Q1-18 capacity build 240 • IDMs 82%/Subcontractors 18% 240 206 Q2-18 vs. Q2-17 euro in millions 200 • Revenue
Slide 18: Gross Margin Trends
Gross Margin Trends Revenue Gross Margin 200 70% Q2-18 vs. Q1-18 180 170.0 • 56.5% vs. 56.5% 161.1 160 159.3 153.2 154.9 65% • Within guidance (55-57%) • Net forex negative: Revenue +USD, -CHF 140 Costs +MYR vs. EUR 120 110.2 58.7% 60% euro in millions 57.3% 100 56.3% 56.5% 56.5% Q2-18 vs. Q2-17 55.
Slide 19: Base Line Operating Expense Trends
Base Line Operating Expense Trends Base Opex Other Opex 45 39.1 40 34.1 34.2 35 30.5 30.4 7.4 31.6 4.4 3.0 0.9 30 3.3 4.9 25 20 15 29.7 31.2 31.7 30.7 25.6 27.1 10 5 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Baseline Opex 25.6 29.7 27.1 31.2 31.7 30.7 As % of Revenue 23.2% 17.5% 17.0% 20.4% 20.5% 19.1%
Slide 20: Net Income Trends
Net Income Trends Q2-18 vs. Q1-18 • € 47.2 million (+€ 10.1 million) Net Income Net Margin • +4.0% revenue • -€ 7.3 million lower opex due to lower share based 60 70% compensation and lower warranty € 52.4 € 52.9 • -3.4 point effective tax rate 60% • +0.8 million increase in financial expense, net 5
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