Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q3 2019 Earnings Presentation
23 slides from Be Semiconductor Industries's earnings presentation, Oct 24, 2019
Slide 1: Investor Presentation Q3-2019 Results
INVESTOR PRESENTATION Q3-2019 RESULTS October 24, 2019
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 October 24, 2019 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS October 24, 2019 4
Slide 5: Besi Q3-19 Results Exceed Expectations
Besi Q3-19 Results Exceed Expectations Order Levels Stable Despite Seasonal Influences Guidance € millions Q3-19 Q3-19 ∆ Q2-19 ∆ Q3-18 Revenue -10%* 89.7 -3.2% -23.1% Orders 82.2 -0.6% -23.8% Gross 55%-57% 55.1% -0.9 -2.9 Margin Opex 0% to -5%* 24.2 -9.7% -16.8% Net Income 19.2 +1.6% -34.5% EPS Basi
Slide 6: Attractive Profit and Margins Maintained in Downturn
Attractive Profit and Margins Maintained in Downturn Q2-19/Q3-19 YTD-18/YTD-19 Revenue Net Margin Revenue Net Margin 100 100% 450 € 432.7 100% € 92.7 - 3.2% € 89.7 90% 400 90% - 39.0% 80 80% 80% 350 Gross Margin Gross Margin € 263.8 -0.9 points 70% 56.9% - 1.2 points 55.7% 70% 56.0% 55.1% 300 OPEX O
Slide 7: Liquidity Trends
Liquidity Trends Cash and Deposits Net Cash 600 571.0 € 174.0 MM Dividend 507.5 500 2017 475.5 € 122.4 MM Dividend Q3-19 vs. Q2-19 443.5 2018 • Net cash increased by € 20.8 million (+24.2%) to 395.5 383.7 € 106.9 million 400 361.7 € millions Q3-19 cash movements • +€ 38.8 million cash provided by op
Slide 8: Capital Allocation Trends
Capital Allocation Trends € millions 209.5 Dividends Share Repurchases 200 35.5 • Shareholder friendly capital allocation program 161.3 • € 644.6 million distributions since 2011: 150 • € 161.3 million YTD 2019 38.9 • Share repurchases have increased as % of mix in recent years 100 88.8 • Current sh
Slide 9: II. Market & Strategy
II. MARKET & STRATEGY October 24, 2019 9
Slide 10: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 30% 22.3% 4.4 4.3 4.2 4.0 20% 3.7 3.5 3.5 US$ billions 25.8% 3.5 17.9% 3.1 10% 3.0 3.0 12.7% 0% 2.4% 2.0 -2.5% -10% 1.0 -20% -16.3% -20.0% 0.0 -30% 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E Source: VLSI
Slide 11: Semiconductor Equipment Trends
Semiconductor Equipment Trends Source: VLSI October 2019 October 24, 2019 11
Slide 12: Technology Road Map
Technology Road Map IDMs actively investing in new solutions for next investment round • Considering assembly interconnect in front end design process given ever smaller design geometry <14 nm and greater density/complexity Besi increasing R&D activities • Leverage leading tech position in next uptu
Slide 13: III. Outlook
III. OUTLOOK October 24, 2019 13
Slide 14: Guidance Q4-19
Guidance Q4-19 Revenue Gross Margin Operating Expenses -5% € 89.7 MM to 55.1% 54%-56% € 24.2 MM 5% - 10% +5% Q3-19 Q4-19 Q3-19 Q4-19 Q3-19 Q4-19 -15% October 24, 2019 14
Slide 15: Financial Calendar
Financial Calendar 13/14-Nov-19 Morgan Stanley TMT Conference, Barcelona 19-Nov-19 ABN AMRO Benelux Equities Conference, Frankfurt 27/28-Nov-19 Kempen Conference, London 10-Dec-19 Degroof Petercam Benelux Conference, Zurich 12-Dec-19 ING Benelux Conference, New York 16-Dec-19 Roadshow New York, orga
Slide 16: IV. Financial Appendix
IV. FINANCIAL APPENDIX October 24, 2019 16
Slide 17: Revenue/Order Trends
Revenue/Order Trends 240 Quarterly Trends Q3-19 vs. Q2-19 206 • Revenue: € 89.7 million (-3.2%) 200 • Better than guidance (-10%) Revenue Orders 155 161 • Higher epoxy die bonding shipments to Chinese 160 € millions subcontractors 117 120 108 86 93 83 81 83 93 83 90 82 • Orders: € 82.2 million (-0.6
Slide 18: Gross Margin Trends
Gross Margin Trends Quarterly Trends 200 70% Q3-19 vs. Q2-19 Revenue Gross Margin 68% • 55.1% vs. 56.0% 161.1 160 154.9 66% • Within guidance (55-57%) 64% • Less favorable product and customer mix 116.7 • Net forex negative: Revenue +USD vs EUR € millions 120 62% 92.5 92.7 89.7 60% Costs MYR / CNY v
Slide 19: Organization Aligned with Market Conditions
Organization Aligned with Market Conditions Headcount Trends 2015-2019E 2,040 2,000 • Headcount adjusted consistent with 316 1,759 downturn: 1,716 1,669 67 1,695 1,634 • 24% reduction realized from peak in Q1-18 1,539 69 111 to Q3-19 120 88 1,500 50 • Particular focus on SG&A structure currently Hea
Slide 20: Baseline Operating Expense Trends
Baseline Operating Expense Trends Base Opex Other Opex 45 39.1 40 34.2 35 7.4 31.8 30.7 3.0 1.0 29.1 30 25.9 26.8 2.8 5.4 24.2 25 0.2 2.1 0.9 20 15 31.2 31.7 30.7 26.3 25.7 25.3 24.7 23.3 10 5 0 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Baseline Opex 31.2 31.7 30.7 26.3 25.7 25.3 24.7 23.3 As
Slide 21: Net Income Trends
Net Income Trends Quarterly Trends 50 € 47.2 70% Q3-19 vs. Q2-19 45 Net Income Net Margin 60% • € 19.2 million (+€ 0.3 million) 40 € 37.1 • Net margin of 21.4% vs. 20.4% 35 50% • Primarily due to € 2.6 million opex decrease: 30 € 29.3 • Additional R&D grants € millions 40% • Seasonal influences 25 €
Slide 22: Cash Generation Trends
Cash Generation Trends € millions Total Cash Flow from Operations As % of Revenue % of Revenue 200 184.1 180 168.2 160 140 127.5 120 98.7 83.8 100 35.0% 86.5 31.8% 80 73.3 28.4% 29.0% 26.3% 24.8% 60 19.3% 40 20 0 2014 2015 2016 2017 2018 YTD-18 YTD-19 October 24, 2019 22
Slide 23: Share Repurchase Activity
Share Repurchase Activity 45 30.0 40 38.8 35.5 25.0 35 € 23.74 € 23.52 € 21.86 30 20.0 Avg Cost per Share € 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 YTD-19 Share Repurchases Average Cost per Share • 2.9 million shares bought cumulatively through Sep
Be Semiconductor Industries — Q3 2019 Earnings Presentation on 6ix