Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q2 2017 Earnings Presentation
20 slides from Be Semiconductor Industries's earnings presentation, Jul 27, 2017
Slide 1: Investor Presentation Q2-2017 Results
INVESTOR PRESENTATION Q2-2017 RESULTS JULY 27, 2017 July 27, 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 July 27, 2017 Page 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS July 27, 2017 Page 4
Slide 5: Key Financial Highlights
Key Financial Highlights Besi Posts Strong Q2-17 and H1-17 Results H1-17 Net Income Exceeds FY 2016 Levels by 17.5% Q2-17 H1-17 Revenue Revenue • € 170.0 million: • +54.3% vs. Q1-17 • € 280.2 million: • +56.0% vs. Q2-16 • +49.0% vs. H1-16 Orders Orders • € 130.1 million: • -45.7% vs. Q1-17 • € 369.9
Slide 6: Q2-17 Results Exceed Expectations; Margin Expansion
Q2-17 Results Exceed Expectations. Revenue Growth and Efficiencies Lead to Margin Expansion Q2-17/Q2-16 H1-17/H1-16 Revenue Net Income Revenue Net Income 180 100% 300 100% € 170.0 € 280.2 160 90% 90% +56.0% +49.0% 250 80% 80% 140 € 109.0 Gross Margin 70% € 188.0 50.9% +6.4 points 57.3% 70% 120 Gross
Slide 7: II. Financial Review
II. FINANCIAL REVIEW July 27, 2017 Page 7
Slide 8: Revenue/Order Trends
Revenue/Order Trends Quarterly Trends Q2-17 vs. Q1-17 Revenue Orders • Revenue: € 170.0 million (+54.3%) 280 • Favorable industry conditions 240 240 • Advanced packaging capacity build: • + smart phone applications 200 170 • +cloud server and automotive • Above guidance due to pull in of certain Q3
Slide 9: Gross Margin Trends
Gross Margin Trends Quarterly Trends Revenue Gross Margin 200 70% Q2-17 vs. Q1-17 180 170.0 • 57.3% vs. 55.7% 160 65% • Leading market position in advanced packaging 140 applications 109.0 110.2 • +Labor efficiencies 120 60% 94.3 93.1 57.3% • Forex: -USD vs. EUR 100 55.7% • More favorable product mi
Slide 10: Base Line Operating Expense Trends
Base Line Operating Expense Trends Base Opex Other Opex 40 34.1 35 29.8 30.5 29.2 29.1 28.2 4.4 30 4.9 4.3 4.1 5.5 25 5.7 20 15 29.7 24.8 24.1 24.3 25.6 23.5 10 5 0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Baseline Opex 23.5 24.8 24.1 24.3 25.6 29.7 As % of Revenue 29.8% 22.8% 25.6% 26.1% 23.2% 17.5% Oth
Slide 11: Net Income Trends
Net Income Trends Quarterly Trends Net Income Net Margin 60 70% € 52.4 60% Q2-17 vs. Q1-17 50 • +€ 28.1 million 50% • Net margin reaches 30.8% vs. 22.0% 40 • Strong revenue development, gross margin (euro in millions) 40% 30 improvement and fixed cost overhead control € 24.0 € 24.3 30.8% 30% 20 € 16
Slide 12: Liquidity Trends
Liquidity Trends Cash and Deposits Debt Net Cash 350 € 65.3 MM Q2-17 vs. Q1-17 304.8 309.0 Dividend 2016 • Net cash -€ 44.2 million (-25.2%) to 300 € 131.5 million 263.1 • Excluding € 65.3 million dividend payment, net cash up by € 21.1 million (+12.0%) 250 € 45.4 MM Dividend Q2-17 cash movements 20
Slide 13: III. Strategic Highlights
III. STRATEGIC HIGHLIGHTS July 27, 2017 Page 13
Slide 14: Summary Strategy
Summary Strategy Maintain best in class tech leadership. Expand capabilities for: • eWLB, TCB, ultra thin die bonding • Large area, ultra thin, wafer level molding • Solar and battery plating Increase market presence and share in addressable markets • Increase addressable market share to 35-40% over
Slide 15: Increased Production Scalability and Profitability
Increased Production Scalability and Profitability 700 80% H1-17: +40.1% 789 units 600 75% • Compared 2014 and 2017 H1-14: production ramps 500 563 units 496 70% • 40.1% increase in 2017 unit production vs. H1-14 (789 vs. 390 65% 563 units) 400 378 Units Shipped • Gross margins improved from Gross M
Slide 16: IV. Outlook
IV. OUTLOOK July 27, 2017 Page 16
Slide 17: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 30% 3.9 4.2 4.4 4.0 20% 26.8% 3.6 3.0 3.2 16.0% 10% (US$ billions) 3.0 13.5% 4.0% 0% 2.0 -10% 1.0 -20% -22.0% -17.5% 0.0 -30% 2013 2014 2015 2016 2017E 2018E Besi Revenue Source: VLSI June 2017 Revenue YoY Gro
Slide 18: Besi Q3 Seasonal Revenue Trends
Besi Q3 Seasonal Revenue Trends Q3E/Q2Δ ’12-’16 Average Decrease: -15.8% -10.0% 2017E* -13.5% 2016 -30.8% 2015 -10.9% 2014 -9.7% 2013 -14.3% 2012 * Assumes midpoint of Q3-17 guidance • Besi quarterly revenue development influenced by seasonal trends • Orders typically ramp in H1 and decline sequenti
Slide 19: Q3-17 Guidance
Q3-17 Guidance Revenue Gross Margin € 170.0 57.3% 5% 55% to - 15% 57% Q2-17 Q3-17 Q2-17 Q3-17 Operating Expenses € 34.1 5% to 10% Q2-17 Q3-17 July 27, 2017 Page 19
Slide 20: Financial Calendar
Financial Calendar 7/8-Sep-17 Deutsche Bank TMT Conference, London 14-Sep17 Autumn Conference Kepler Cheuvreux and Rabobank, Paris 1-Nov-17 2017 Third Quarter Results 15/17-Nov-17 Morgan Stanley TMT Conference, Barcelona 15/16-Nov-17 ABN AMRO, Pan European Days, New York 21-Nov-17 ABN AMRO Benelux E
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