Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — FY2017 Earnings Presentation
25 slides from Be Semiconductor Industries's earnings presentation, Feb 15, 2018
Slide 1: Investor Presentation: 2017 Annual and Q4 Results
INVESTOR PRESENTATION 2017 ANNUAL AND Q4 RESULTS FEBRUARY 15, 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 February 15, 2018 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS February 15, 2018 4
Slide 5: Besi Posts Strong Q4-17 and FY 2017 Results
Besi Posts Strong Q4-17 and FY 2017 Results € millions Q4-17 ∆ Q3-17 ∆ Q4-16 2017 ∆ 2016 Revenue 153.2 -3.8% +64.6% € 592.8 +57.9% Orders 149.4 -7.5% +63.5% € 680.9 +82.2% Gross 56.3% -2.4 +3.1 57.1% +6.1 Margin Net Income 43.6 -17.6% +161.1% € 173.2 +165.2% EPS 1.09 -16.2% +153.5% € 4.34 +155.3% (D
Slide 6: New Benchmark Levels of Financial Performance in 2017
New Benchmark Levels of Financial Performance in 2017 Q4-16/Q4-17 2016/2017 Revenue Net Income Revenue Net Income 160 100% € 592.8 600 100% € 153.2 +64.6% 90% 550 140 90% +57.9% 500 80% 80% 120 € 93.1 Gross Margin € 375.4 450 Gross Margin 53.2% +3.1 points 56.3% 70% 70% 51.0% +6.1 points 57.1% OPEX
Slide 7: Liquidity Trends
Liquidity Trends Cash and Deposits Net Cash 600 Q4-17 vs. Q3-17 527.8 • Net cash +€ 82.2 million (+49.7%) to 500 € 247.6 million € 65.3 MM Q4-17 cash movements Dividend • +€ 77.7 million cash from operations 400 2016 • -€ 6.0 million share repurchases • -€ 2.4 million capex euro in millions € 45.4 M
Slide 8: Dividend Trends
Dividend Trends Dividend (€) Dividend Yield(a) 5.00 12% Cumulative Dividends: € 9.93/per Share Since 2011* 4.64 4.50 10% 4.00 3.50 8.1% 8% 3.00 6.5% 6.6% 2.50 5.5% 6% 2.00 1.74 4.0% 1.50 4% 1.50 1.20 1.00 2% 0.50 0.33 Payout Ratio(b): 77% 79% 93% 100% 100% 0.00 0% 2013 2014 2015 (c) 2016 (c) 2017* D
Slide 9: Capital Allocation Trends
Capital Allocation Trends € millions 200 Cumulative Distributions: € 449.9 MM Since 2011* 175.8 180 2.8 160 140 120 100 88.1 173.0 80 22.8 67.8 60.9 60 4.0 22.4 40 65.3 56.9 20 14.0 12.4 45.4 2.7 11.3 12.4 0 2013 2014 2015 2016 2017 2018* Dividends Share Repurchases * Assumes proposed 2017 dividend
Slide 10: II. Strategic Review
II. STRATEGIC REVIEW February 15, 2018 10
Slide 11: Step Function Growth in Revenue and Gross Margin Since 2006
Step Function Growth in Revenue and Gross Margin Since 2006 € millions 700 60.0% 600 51.1% 50.0% 500 39.5% 40.0% 424 400 34.1% 30.0% 4 year 300 averages 302 20.0% 200 164 10.0% 100 0 0.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenue Gross Margin February 15, 2018 11
Slide 12: Strategic Priorities
Strategic Priorities Increase share of electronics supply chains Further Continue reduce investment in European WLP overhead Strategic agenda 2018 Packaging Common production in platform China development Chinese capacity expansion February 15, 2018 12
Slide 13: Besi's Asian Expansion
Besi’s Asian Expansion Units Shipped Gross Margin Asian Production Trends Fixed Headcount by Country 1800 2,000 59% 1600 1,724 57.1% 57% 1,600 1400 1,434 452 1200 55% +6.9% 1,200 423 1000 1,301 53% 470 +99.2% 800 236 51.0% 51% 800 68 +207% 600 209 675 49% 48.8% 400 633 400 625 -19.7% 502 47% 200 289
Slide 14: III. Market/Outlook
III. MARKET/OUTLOOK February 15, 2018 14
Slide 15: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 6.0 30% 4.4 5.2 5.0 3.9 20% (US$ billions) 26.8% 3.6 21.4% 4.0 18.1% 10% 3.0 3.2 13.5% 3.0 0% 2.0 -10% 1.0 -20% -22.0% -17.5% 0.0 -30% 2013 2014 2015 2016 2017E 2018E Source: VLSI January 2018 Besi Revenue Revenue
Slide 16: New Era of Chip Growth and Applications
New Era of Chip Growth and Applications Digital Society, A.I. & Big Data Era Mobile & Social 5G Media Era PC + Internet Era 2000 2010 2017 2020 Avg. $25B $32B $45B Semi Eq. Avg. $3B $4B $5B Assembly Eq. Source: Applied Materials Analyst Day 2017 Presentation, pp. 27, Company estimates February 15, 2
Slide 17: Q1-18 Guidance
Q1-18 Guidance Revenue Gross Margin € 153.2 56.3% +5% 55% to - -5% 57% Q4-17 Q1-18 Q4-17 Q1-18 Operating Expenses € 34.2 10% to 15% Q4-17 Q1-18 February 15, 2018 17
Slide 18: Financial Calendar
Financial Calendar 19-Feb-18 Roadshow London, organized by Kempen 20-Feb-18 Roadshow Paris, organized by Kempen 21-Feb-18 Roadshow Frankfurt, organized by ABN AMRO Bank 22-Feb-18 Roadshow Netherlands, organized by ING 7-Mar-18 Deutsche Bank Convertible Conference, London 8-Mar-18 Technology Conferen
Slide 19: IV. Financial Appendix
IV. FINANCIAL APPENDIX February 15, 2018 19
Slide 20: Revenue/Order Trends
Revenue/Order Trends Quarterly Trends Revenue Orders 280 240 240 Q4-17 vs. Q3-17 • Revenue: € 153.2 million (-3.8%) 200 • As per guidance (0% to -10%) and seasonal trends euro in millions 170 159 162 153 • Lower die attach shipments for mobile applications 160 149 130 120 104 109 100 110 • Orders: €
Slide 21: Gross Margin Trends
Gross Margin Trends Quarterly Trends Revenue Gross Margin 200 70% Q4-17 vs. Q3-17 180 170.0 • 56.3% vs. 58.7% 159.3 160 153.2 65% • Within guidance (55-57%) 140 • Less favorable product mix 109.0 110.2 58.7% • - Net forex negative: Revenue -USD vs. EUR 120 60% 57.3% Costs -MYR vs. EUR euro in millio
Slide 22: Base Line Operating Expense Trends
Base Line Operating Expense Trends Base Opex Other Opex 40 34.1 34.2 35 29.8 30.5 30.4 3.0 29.2 29.1 28.2 4.4 30 3.3 4.9 4.3 4.1 5.5 25 5.7 20 15 29.7 31.2 25.6 27.1 23.5 24.8 24.1 24.3 10 5 0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Baseline Opex 23.5 24.8 24.1 24.3 25.6 29.7 27.1 31.2 As %
Slide 23: Currency Exposure Trends
Currency Exposure Trends Revenue Expenses 2017 ∆ 2017 ∆ 2015 2016 2017 2015* 2016 2017 vs. €** vs. €** Currency Exposure (2015) Forex Financial Impact Euro 29% 25% 18% 30% 26% 21% US dollar 70% 74% 82% 5% 5% 9% Swiss franc - - - 23% 21% 19% Malaysian ringgit - - - 28% 30% 31% Chinese renminbi - - -
Slide 24: Net Income Trends
Net Income Trends Quarterly Trends Net Income Net Margin 60 70% € 52.4 € 52.9 60% Q4-17 vs. Q3-17 50 € 43.6 • € 43.6 million (-€ 9.3 million) 50% • Net margin reaches 28.4% vs. 33.2% euro in millions 40 • Lower sequential revenue and gross margins 40% 30 • Partial offset: lower tax rate of 10.6% due
Slide 25: Cash Generation Trends
Cash Generation Trends € millions Cash Conversion Cycle Days 180 168.2 160 208 140 120 169 149 98.7 100 86.5 127 80 73.3 107 60 40 18.1 20 0 2013 2014 2015 2016 2017 Total Cash Flow from Operations Cash Conversion Cycle* * Cash Conversion Cycle = Avg. Days Inventory Outstanding + Avg. Days Sales Out
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