BE Semiconductor Industries N.V. · EURONEXT:BESI
BE Semiconductor Industries — Shareholder Meeting (April 2013)
33 slides from BE Semiconductor Industries's shareholder meeting presentation, Apr 24, 2013
Slide 1: Annual General Meeting
Annual General Meeting April 24, 2013
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 e
Slide 3: Table of Contents
TABLE OF CONTENTS I. Introduction II. Market III. Strategy IV. Financial Review V. Conclusion 3
Slide 4: I. Introduction
Besi l. INTRODUCTION
Slide 5: Key Financial Highlights 2012
KEY FINANCIAL HIGHLIGHTS 2012 Revenue • € 273.7 million: • -16.3% vs. 2011 Orders • € 276.1 million: • -8.3% vs. 2011 Net Income • € 15.8 million vs. € 26.4 million in 2011 • Adjusted net of € 18.2 million vs. € 27.1 million • Includes restructuring charges of € 2.4 million in 2012 vs. € 0.7 million
Slide 6: Stock Price Trends
STOCK PRICE TRENDS BESI SOX 150.0 Q1 2013 Besi +15.7% 140.0 1/2011- 130.0 12/2012 Besi +14.9% 120.0 110.0 100.0 SOX +13.7% 90.0 SOX -6.7% 80.0 70.0 D-10 D-11 D-12 M-11 M-11 M-12 M-12 M-13 O-11 O-12 J-11 J-11 J-11 J-12 J-12 J-12 J-13 A-11 A-11 S-11 N-11 F-12 A-12 A-12 S-12 N-12 F-13 F-11 6
Slide 7: Dividend Trends
DIVIDEND TRENDS Base Dividend Special Dividend Base Dividend Yield (a) Total Dividend Yield (a) 0.50 6.0% 0.45 5.2% 0.40 5.0% 4.3% 4.0% Dividend yield 0.35 3.8% 4.0% Dividend (€) 0.30 0.25 0.08 3.0% 0.20 0.15 2.0% 0.10 0.20 0.22 0.22 1.0% 0.05 0.00 0.0% 2009 2010 2011 2012 (b) a) Based on year end s
Slide 8: Cash as % of Market Value
CASH AS % OF MARKET VALUE Cash Market Value Cash/Market Value 250 70.0% 217.9 200 187.8 60.0% Cash/Market Value 171.1 48.8% (€ million) 150 46.6% 50.0% 40.5% 106.4 100 87.5 40.0% 69.3 50 30.0% 0 20.0% As of Dec 31, 2010 2011 2012 8
Slide 9: II. Market
Besi I. MARKET
Slide 10: Electronic Device Trends
ELECTRONIC DEVICE TRENDS Computing and Communications Evolution Continues Source: ASE GROUP 10
Slide 11: Assembly Equipment Market Forecast
ASSEMBLY EQUIPMENT MARKET FORECAST Assembly Equipment Market Size (Apr 2013 VLSI) YoY Growth Rate (Apr 2013 VLSI) 6 160% CAGR 5.1 ‘12-’17: 2.9% 140% 120.5% 5 4.8 4.6 4.8 4.5 120% 4.2 4.2 4.0 100% 4 80% 3 60% 2.1 40% 2 17.7% 7.3% 20% -0.8% 3.4% -2.7% -7.8% -9.3% 0% 1 -28.2% -20% 0 -40% 2009 2010 2011
Slide 12: Besi Competitive Position
BESI COMPETITIVE POSITION Assembly Addressable Market Share Market Share 40% 40% • #3 leading assembly supplier 27% 24% 27% 11% 14% 14% • #2 in addressable market with 20% 20% 27% share Mkt Size: $4,192MM Mkt Size: $1,700MM • Leader in die attach 0% 0% Competition: 2009 2010 2011 ASM-PT, K/S, Shinka
Slide 13: IC Pricing and Assembly Market Trends
IC PRICING AND ASSEMBLY MARKET TRENDS Assembly Capacity Utilization Book to Bill Ratio & IC Pricing 100.0% 1.40 Semiconductor Equipment Book to Bill Trends 1.38 (3 month moving average) 1.36 1.60 1.51 3 Month Avg Pricing ($) 90.0% % Capacity Utilization 1.34 1.50 Assembly 1.32 Equipment 1.40 1.40 80
Slide 14: 2013 Industry Outlook
2013 INDUSTRY OUTLOOK Market Environment Cautiously Improving Mixed industry VLSI initially picture. Renewed assumed 6.1% Memory and strength in Strong growth assembly market leadframe advanced expected for Besi downturn in 2013. suffering due to packaging (tablets, in Q2 Now forecasts PC slowdown s
Slide 15: Customer Eco System
CUSTOMER ECO SYSTEM Customers End Products End Use • Blue chip customer base, top 10 customers represent 48% of 2012 revenue • Leading Asian Subcontractors and IDMs. 57/43% split in 2012 • Equipment utilized to produce chips for leading fabless companies: Qualcomm, Broadcom, MediaTek • Long term rel
Slide 16: Product Shift to Advanced Packaging End User Applications
PRODUCT SHIFT TO ADVANCED PACKAGING END USER APPLICATIONS 2012 Service 12% • Mobile internet LED Computer, devices now equal 2008 5% PCs 35% of end user 21% Service revenue Industrial 2% 10% Industrial LED 3% 10% • Automotive has also Mobile increased in recent Auto Internet Auto 17% Devices years 1
Slide 17: Mobile Internet Device Market Trends
MOBILE INTERNET DEVICE MARKET TRENDS Smart Phones 2011-2016 2,500 76.4% • Rapid unit growth in smart 2,000 30.8% phones and tablets forecast 62.5% million phones 1,500 over next 5 years 850 1,500 400 650 1,000 • Estimated unit growth rates: 500 1,050 900 850 • Smart phones: 600 • 2012: 62.5% 0 • 201
Slide 18: Flip Chip/Wire Bond Opportunity
FLIP CHIP/WIRE BOND OPPORTUNITY Wire Bonding Flip Chip Bonding 2012 2017E Flip Chip Flip Chip $,238 $,334 20% 25% Wire Flip Chip Advantages Wire Bonding Bonding $,938 $1,010 80% 75% Reduces board area Offers higher speed by up to 95%. electrical CAGR 2012 – 17 Requires far less performance Flip Chip
Slide 19: Semi Equipment Consolidation Trends
SEMI EQUIPMENT CONSOLIDATION TRENDS Top 20 Semiconductor Equipment Suppliers (based on 2011 revenues, after all acquisitions consolidated) Source: VLSI Front-end Back-end Besi Acquisition Criteria: • Technology led mainstream companies which increase IP and can be incorporated into One Besi platform
Slide 20: III. Strategy
Besi Il. STRATEGY
Slide 21: 2012 Product Development Highlights
2012 PRODUCT DEVELOPMENT HIGHLIGHTS Advanced packaging is key focus: tablets, smart phones and intelligent automotive electronics principal end use applications currently Penetration of largest smart phone and tablet ecosystems in 2012 • Shipped 100+ evo multi module systems for die attachment of 8
Slide 22: 2012 Operational Highlights
2012 OPERATIONAL HIGHLIGHTS Business Model Enhanced In Light of Volatile Semi Environment Asian production transfer nearly completed • 35% YOY increase in Asian system production. 274 systems produced in Q2-12 • Record 90% of total systems produced in Asia • Direct shipments increased to 85% of tota
Slide 23: Break Even Revenue Trends
BREAK EVEN REVENUE TRENDS 300 270 250 (13.0%) 235 (10.0% - 15.0%) 200 212 200 (€ millions) 150 100 50 - 2011 2012 2013E 23
Slide 24: Asian Shipment Trends
ASIAN SHIPMENT TRENDS Total Asian Shipments Direct Asian Shipments % Direct 700 100.0% 658 90.0% 600 84.0% 80.0% % Direct Shipments 500 68.0% 553 70.0% 487 Shipments 400 60.0% 396 50.0% 300 331 40.0% 42.9% 200 30.0% 170 20.0% 100 10.0% - 0.0% 2010 2011 2012 24
Slide 25: Headcount Trends
HEADCOUNT TRENDS Europe/NA Fixed HC Asia Fixed HC 1,800 1,600 1,510 1,543 • Headcount trends continue to favorably 1,479 1,465 influence break even revenue levels 1,384 1,400 1,200 802 • Fixed European headcount gradually 772 614 799 reducing as shift to Asian manufacturing Headcount 51% 52% 820 1,0
Slide 26: Strategy Timeline
STRATEGY TIMELINE 2012 2013 2014 Operational Objectives Soft Solder DB production transfer to Malaysia 50% Malaysia/100% China capacity expansion European Die Attach integration activities Expansion of Asian supply chain. System module outsourcing Development Objectives TCB flip chip die bonding dev
Slide 27: IV. Financial Review
Besi IV. FINANCIAL REVIEW
Slide 28: Summary Financial Highlights
SUMMARY FINANCIAL HIGHLIGHTS • Financial transformation since 2008 Year Ended December 31, • Scale and market presence have changed: (€ millions, except share data) 2010 2011 2012 • Esec acquisition expanded mainstream presence and leveraged revenue potential Revenue 351.1 326.9 273.7 Orders 376.5 3
Slide 29: Liquidity Trends
LIQUIDITY TRENDS Cash Total Debt Net Cash • Solid liquidity position 120.0 • € 106.4 million cash at 12/31/12 106.4 • € 2.83 per share relative to share price of 100.0 € 5.79 at year end 87.5 80.0 73.1 69.3 79.5 • Net cash has grown to € 79.5 million 60.0 62.7 from € 19.6 million at year end 2009 •
Slide 30: Key Financial Highlights Q1-13
KEY FINANCIAL HIGHLIGHTS Q1-13 Q1-13 Results Exceed Expectations. Q2-13 Results Expected to Increase vs. Q1-13 Revenue •€ 64.0 million: •+13.7% vs. Q4-12 •+14.8% vs. Q1-12 •Above guidance (+5%) Orders •€ 63.9 million: •+22.8% vs. Q4-12 •-24.2% vs. Q1-12 Pre-tax Income •+€ 7.5 million vs. Q4-12 and €
Slide 31: Q2-2013 Guidance
Q2-2013 GUIDANCE Revenue Gross Margin Operating Expenses* Capex € 64.0 39.6% € 20.9 € 0.4 41% Approx. Up Up - equal € 0.6 10% 39% MM Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 * Excluding restructuring • 10% sequential revenue growth forecast based on backlog and order trends • Gross margins will range between 39%-41%
Slide 32: V. Conclusion
Besi V. CONCLUSION
Slide 33: Summary
SUMMARY Strategic Initiatives Excellent Product Offer Increased Near Term Industry Positioning and Market Scalability, Revenue Outlook Has Improved Acceptance and Higher Profit Potential Development Efforts Dividend and Stock Underway for Next Repurchases Enhance Generation Advanced Shareholder Valu
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