Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — FY2016 Earnings Presentation
23 slides from Be Semiconductor Industries's earnings presentation, Feb 23, 2017
Slide 1: Investor Presentation: 2016 Annual and Q4 Results
INVESTOR PRESENTATION 2016 ANNUAL AND Q4 RESULTS FEBRUARY 23, 2017 February 23, 2017 Page 1
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. Financial Review III. Strategic Highlights IV. Outlook February 23, 2017 Page 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS February 23, 2017 Page 4
Slide 5: Key Financial Highlights
Key Financial Highlights Besi Reports Strong 2016 and Q4-16 Results Proposed 2016 Dividend of € 1.74 per Share Is 45% Above 2015 Levels Q4-16 2016/2015 Revenue Revenue • € 93.1 million: • -1.3% vs. Q3-16 • € 375.4 million: • +19.7% vs. Q4-15 • +7.5% vs. 2015 Orders Orders • € 91.4 million: • € 373.8
Slide 6: Q4-16 and 2016 Results Exceed Expectations
Q4-16 and 2016 Results Exceed Expectations Industry Benchmark Margins Q3-16/Q4-16 2015/2016 Revenue Net Income Revenue Net Income € 100 400 € € 94.3 -1.3% € 93.1 +7.5% € 375.4 90% 90% € 349.2 350 € 80% 80% € 80 70% 300 € 70% Gross Margin Gross Margin 50.5% +2.7 points 53.2% 60% 48.8% +2.2 points 51.
Slide 7: Shareholder Returns 2011-2016
Shareholder Returns 2011-2016 80 Cumulative: € 186.0 MM 70 67.8 60.9 60 4.0 22.4 50 € in millions 40 30 56.9 21.9 45.4 20 14.0 15.1 12.4 9.0 2.7 10 0.9 11.3 12.4 6.8 8.1 0 2011 2012 2013 2014 2015 2016 Dividends Share Repurchases • At February 22, 2017, Besi held approximately 2.8 million shares in
Slide 8: Dividend Trends
Dividend Trends Since 2011, € 5.29/Share Paid in Dividends* 2.00 1.89 12.0% 1.80 1.74 1.74 10.0% 1.60 1.50 1.40 8.1% 1.29 8.0% 1.20 1.20 Dividend Yield Dividend (€) 6.5% 1.00 6.0% 5.2% 5.5% 0.80 0.73 4.3% 4.0% 4.0% 0.60 0.42 0.43 0.40 0.30 0.33 0.22 2.0% 0.20 Payout Ratio: 30% 71% 77% 79% 93% 100% 0
Slide 9: II. Financial Review
II. FINANCIAL REVIEW February 23, 2017 Page 9
Slide 10: Revenue/Order Trends
Revenue/Order Trends Quarterly Trends Revenue Orders Q4-16 vs. Q3-16 120 • Revenue: € 93.1 million (-1.3%) 109 104 104 104 100 • Better than prior guidance 100 95 92 94 93 91 • +Flip chip and multi module systems for mobile 79 78 and auto applications (euro in millions) 78 77 80 72 75 • Improved ind
Slide 11: Currency Exposure Trends
Currency Exposure Trends Revenue Expenses 2016 ∆ 2016 ∆ 2013 2014 2015 2016 2013 2014 2015* 2016 vs. €** vs. €** Currency Exposure (2015) Forex Financial Impact Euro 28% 34% 29% 25% 34% 32% 30% 26% US dollar 71% 65% 70% 74% 7% 4% 5% 5% Swiss franc - - - - 26% 18% 23% 21% Malaysian ringgit - - - - 22
Slide 12: Gross Margin Trends
Gross Margin Trends Quarterly Trends Revenue Gross Margin 120 70% 109.0 104.3 94.9 94.3 65% 100 93.1 Q4-16 vs. Q3-16 60% 77.8 79.0 • 53.2% vs. 50.5% 80 72.1 53.2% 50.9% 55% • +Material and freight cost efficiencies (euro in millions) 50.0% 50.5% 49.0% 48.7% 49.2% • Forex benefits: + USD vs. EUR 60 4
Slide 13: Base Line Operating Expense Trends
Base Line Operating Expense Trends Base Opex Other Opex 35 32.0 29.2 29.1 29.8 28.7 28.2 30 26.5 6.3 25.3 4.3 5.5 5.1 5.7 4.1 25 4.1 3.5 20 15 25.7 24.8 24.1 24.3 23.6 22.4 23.5 21.8 10 5 0 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Baseline Opex 21.8 25.7 23.6 22.4 23.5 24.8 24.1 24.3 Other Op
Slide 14: Net Income Trends
Net Income Trends Quarterly Trends Net Income Net Margin 27 € 24.0 40% Q4-16 vs. Q3-16 24 • +€ 0.1 million 21 • Net margin up to 18.0% vs. 17.6% € 17.5 30% (euro in millions) 18 € 16.6 € 16.7 • Strong gross margin improvement and € 15.5 15 22.0% overhead controls offset: 12 € 9.7 20% • -1.3% revenue
Slide 15: Liquidity Trends
Liquidity Trends Cash and Deposits Debt Net Cash Q4-16 vs. Q3-16 350 • Net cash +€ 36.2 million (+27.4%) to € 168.1 million 304.8 • Year end cash includes Note proceeds 300 Q4-16 cash movements • +€ 33.4 million cash from operations 250 • -€ 4.5 million share repurchases € 56.9 MM € 45.4 MM • -€ 2.2
Slide 16: III. Strategic Highlights
III. STRATEGIC HIGHLIGHTS February 23, 2017 Page 16
Slide 17: 2016 Strategic Highlights
2016 Strategic Highlights R&D/Product Initiatives • Ongoing development of new assembly technologies • Significant increase in eWLB bookings confirms leadership position in FOWLP • Successful introduction of next generation die bonding, packaging and plating systems Operational Initiatives • Transfe
Slide 18: Expansion of Besi's Chinese Operations
Expansion of Besi’s Chinese Operations Unit Shipments Besi China China Customer Revenue as % of Total Revenue 150 139 2016 China 120 30% Other 70% +321% 90 Units 60 2015 China 33 23% 30 Other 77% 0 2015 2016 February 23, 2017 Page 18
Slide 19: Strategic Planning Update 2017-2021
Strategic Planning Update 2017-2021 Revenue Initiatives Cost Initiatives • Grow in excess of assembly • Reduce structural costs and equipment market: break-even levels further: • Expand share of mainstream • Continue West-East personnel assembly market transfer • Increase % of global • Target 75% As
Slide 20: IV. Outlook
IV. OUTLOOK February 23, 2017 Page 20
Slide 21: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 40% 3.9 4.1 4.2 30% 4.0 3.7 (US$ billions) 3.1 27.8% 3.3 20% 3.0 10% 12.5% 9.3% 0% 2.0 3.5% -10% 1.0 -16.3% -20% -21.9% 0.0 -30% 2013 2014 2015 2016E 2017E 2018E Source: VLSI January 2017 Besi Revenue Revenue
Slide 22: Q1-17 Guidance
Q1-17 Guidance Revenue Gross Margin € 93.1 53.2% 15% 54% to - 20% 52% Q4-16 Q1-17 Q4-16 Q1-17 Operating Expenses € 29.8 5% to 10% Q4-16 Q1-17 February 23, 2017 Page 22
Slide 23: Financial Calendar
Financial Calendar 27/28-Feb-17 Roadshow London, organized by ING Bank 1-Mar-17 Roadshow Netherlands, organized by NIBC Markets 2-Mar-17 Roadshow Frankfurt, organized by NIBC Markets 17-Mar-17 TMT Conference ING, Amsterdam 25-Apr-17 2017 First Quarter Results 1-May-17 Annual General Meeting of Share
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