BE Semiconductor Industries N.V. · EURONEXT:BESI
BE Semiconductor Industries — Q4 2019 Earnings Presentation
27 slides from BE Semiconductor Industries's earnings presentation, Feb 20, 2020
Slide 1: Investor Presentation Q4 and FY 2019 Results
INVESTOR PRESENTATION Q4 and FY 2019 RESULTS February 20, 2020
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 February 20, 2020 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS February 20, 2020 4
Slide 5: Besi Q4-19 Results Exceed Expectations
Besi Q4-19 Results Exceed Expectations Sequential Orders Increase by 22.3% Guidance € millions Q4-19 Q4-19 ∆ Q3-19 ∆ Q4-18 Revenue -5% - +5%* 92.4 +3.0% -0.1% Orders 100.5 +22.3% +20.9% Gross 54%-56% 56.3% +1.2 -0.1 Margin Opex +5% - +10%* 25.2 +4.1% -2.7% Net Income 33.7 +75.5% +48.5% EPS Basic 0.4
Slide 6: Solid FY-19 Performance in Downturn
Solid FY-19 Performance in Downturn Attractive Profit and Margins Maintained FY-19/FY-18 Q4-19/Q3-19 Revenue Net Margin Revenue Net Margin 600 100% 100 100% € 89.7 + 3.0% € 92.4 € 525.3 90% 90% - 32.2% 500 80% 80 80% € 356.2 Gross Margin Gross Margin 56.8% - 1.0 points 55.8% 70% 55.1% + 1.2 points 5
Slide 7: Increased Profitability vs. Last Downturn
Increased Profitability vs. Last Downturn 2015 2019 € millions 140 350 356.2 349.2 120 25.8% 100 Operating Income 300 91.9 Revenue +58.7% 80 16.6% 60 57.9 250 40 20 200 0 Revenue Operating Income February 20, 2020 7
Slide 8: Liquidity Trends
Liquidity Trends Cash and Deposits Net Cash 600 527.8 507.5 500 475.5 € 122.4 MM Q4-19 vs. Q3-19 Dividend 2018 • Net cash increased by € 23.4 million 408.4 (+21.9%) to € 130.3 million 400 383.7 361.7 Q4-19 cash movements • +€ 36.3 million cash provided by operations € millions 304.8 300 • - € 5.8 mi
Slide 9: Capital Allocation Trends
Capital Allocation Trends € millions 209.5 200 35.5 Dividends • Shareholder friendly capital allocation program 167.1 Share Repurchases • € 652.9 million distributions since 2011: 150 44.7 • € 167.1 million in 2019 • € 1.01 dividend proposal 2019, for approval at AGM 100 88.8 • Current € 75 million
Slide 10: II. Market & Strategy
II. MARKET & STRATEGY February 20, 2020 10
Slide 11: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 4.4 4.3 50% 3.7 4.0 3.5 30% 3.5 US$ billions 3.0 3.3 3.1 3.0 25.8% 10% 22.9% 10.3% 12.5% 7.2% 2.0 -2.5% -10% 1.0 -16.5% -30% -30.4% 0.0 -50% 2014 2015 2016 2017 2018 2019E 2020E 2021E Source: VLSI January 2020
Slide 12: Semiconductor Equipment Outlook
Semiconductor Equipment Outlook Q4 VLSI Update Source: VLSI February 2020 February 20, 2020 12
Slide 13: Current Technology Roadmap
Current Technology Roadmap • IDMs investing in next Customers generation devices 5G Applications Artificial Intelligence Cloud Infrastructure Advanced Logic Apps • Increasing R&D activities Besi • Highly focused per customer roadmaps February 20, 2020 13
Slide 14: III. Outlook
III. OUTLOOK February 20, 2020 14
Slide 15: Guidance Q1-20
Guidance Q1-20 Q4-19/Q1-20 Revenue Gross Margin Operating Expenses € 92.4 56.3% € 25.2 -10% +35% - 54%-56% - +10% +40% Q4-19 Q1-20 Q4-19 Q1-20 Q4-19 Q1-20 Baseline Operating Expenses € 23.7 +10% - +15% Q4-19 Q1-20 February 20, 2020 15
Slide 16: Financial Calendar
Financial Calendar 25-Feb-20 Roadshow London, organized by Kempen 26-Feb-20 Roadshow Frankfurt, organized by ING 27-Feb-20 Roadshow the Netherlands, organized by Degroof Petercam 10-Mar-20 Berenberg Benelux Conference, London 12-Mar-20 Susquehanna’s Ninth Annual Technology Conference, New York 12-Ma
Slide 17: IV. Financial Appendix
IV. FINANCIAL APPENDIX February 20, 2020 17
Slide 18: Revenue and Gross Margin Cycles Since 2006
Revenue and Gross Margin Cycles Since 2006 € millions 700 60.0% 55.8% Revenue Gross Margin 600 51.1% 50.0% -32.2% 500 39.5% 40.0% 424 400 34.1% -7.8% -6.9% 356 593 30.0% 4 year 300 302 averages 379 20.0% -12.9% 200 351 164 10.0% 100 191 0 0.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2
Slide 19: Revenue/Order Trends
Revenue/Order Trends 240 Quarterly Trends Q4-19 vs. Q3-19 206 • Revenue: € 92.4 million (+3.0%) 200 • High end of guidance Revenue Orders 155 161 • More IDM sales for logic/cloud servers 160 € millions Current Downturn 120 117 108 • Orders: € 100.5 million (+22.3%) 101 86 93 83 81 83 93 83 90 82 92
Slide 20: IDM/Subcontractor Trends
IDM/Subcontractor Trends € millions 800 IDMs Subcontractors 680.9 700 600 35% 483.1 500 Orders 400 373.8 32% 348.3 348.7 300 49% 39% 49% 65% 200 68% 100 61% 51% 51% - 2015 2016 2017 2018 2019 February 20, 2020 20
Slide 21: Gross Margin Trends
Gross Margin Trends Quarterly Trends 200 70% Revenue Gross Margin 68% 154.9 161.1 160 66% 64% Q4-19 vs. Q3-19 116.7 • 56.3% vs. 55.1% € millions 120 62% 92.5 92.7 89.7 92.4 60% • Above guidance (54-56%) 58.0% 81.4 • Favorable product and customer mix 80 56.5% 56.5% 56.4% 58% 55.9% 56.0% 55.1% 56.3%
Slide 22: Baseline Operating Expense Trends
Baseline Operating Expense Trends 40 39.1 Baseline Opex Other Opex* 7.4 31.8 Operating Expenses (€ millions) 30.7 1.0 30 29.1 2.8 5.4 26.8 25.9 25.2 0.2 2.1 24.2 1.5 0.9 31.7 30.7 20 26.3 25.7 25.3 24.7 23.3 23.7 10 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 * Other Opex includes both short ter
Slide 23: Headcount Trends
Headcount Trends Headcount Headcount Trends Temp % of Total 2,040 20% 2,000 316 18% 1,759 1,669 67 1,596 16% 1,539 120 62 1,500 50 14% 12% 1,222 1,230 10% 1,000 949 1,041 1,081 8% 6% 500 4% 540 508 502 462 453 2% 0 0% 2015 2016 2017 2018 2019 Europe/NA Fixed HC Asia Fixed HC Temporary HC Temp % of T
Slide 24: Net Income Trends
Net Income Trends Quarterly Trends 50 € 47.2 70% 45 Q4-19 vs. Q3-19 60% 40 € 37.1 • € 33.7 million (+€ 14.5 million) € 33.7 35 50% • € 11.6 million deferred tax benefit at Swiss € 29.3 30 operations due to change in Swiss fiscal policy € millions 40% 25 € 22.7 36.5% • Net margin 36.5% (23.9% ex tax
Slide 25: Cash Generation Trends
Cash Generation Trends € millions 200 184.1 180 168.2 160 140 120.1 120 35.0% 33.7% 98.7 100 86.5 28.4% 26.3% 80 24.8% 60 40 20 0 2015 2016 2017 2018 2019 Total Cash Flow from Operations CFO/Revenue February 20, 2020 25
Slide 26: Share Repurchase Activity
Share Repurchase Activity 50 35.0 44.7 45 30.0 40 35.5 35 € 24.31 25.0 € 23.74 Avg Cost per Share € 21.79 30 20.0 € millions 25 22.4 22.8 15.0 20 € 12.44 15 10.0 € 8.93 10 5.0 5 4.0 0 0.0 2015 2016 2017 2018 2019 Share Repurchases Average Cost per Share • 3.1 million shares (€ 67.1 million) purchase
Slide 27: Dividend Trends
Dividend Trends Dividend (€) Dividend Yield 3.00 Cumulative dividends of € 577.0M since 2011, or € 7.74 per share* 120% 115% 2.50 2.32 110% 2.00 107% 105% 1.67 1.50 100% 100% 1.01 95% 1.00 93% 0.87 91% 0.60 90% 90% 0.50 85% 0.00 80% 2015 2016 2017 2018 2019** Dividend Dividend Payout Ratio* * Calcul
Be Semiconductor Industries — Q4 2019 Earnings Presentation on 6ix