Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Q4 2018 Earnings Presentation
26 slides from Be Semiconductor Industries's earnings presentation, Feb 20, 2019
Slide 1: Investor Presentation Q4 and FY 2018 Results
INVESTOR PRESENTATION Q4 and FY 2018 RESULTS FEBRUARY 20, 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 III. Strategic Review IV. Outlook V. Financial Appendix February 20, 2019 3
Slide 4: I. Key Highlights
I. KEY HIGHLIGHTS February 20, 2019 4
Slide 5: Q4-18 Operating Profit Exceeds Guidance. Net Cash Grows
Q4-18 Operating Profit Exceeds Guidance. Net Cash Grows € millions Q4-18 Q3-18 Q4-17 ∆ Q3-18 ∆ Q4-17 Revenue 92.5 116.7 153.2 -20.7% -39.6% Orders 83.1 107.9 149.4 -23.0% -44.4% Gross Margin 56.4% 58.0% 56.3% 1.6 +0.1 Operating 26.3 38.6 52.1 -31.9% -49.5% Income Net Income 22.7 29.3 43.6 -22.5% -47
Slide 6: Solid FY-18 Performance Despite Challenging Market
Solid FY-18 Performance Despite Challenging Market. Attractive Margins Maintained FY-18/FY-17 Q4-18/Q3-18 Revenue Net Margin Revenue Net Margin 600 € 592.8 100% 100% -11.4% 120 € 116.7 560 € 525.3 -20.7% 90% 90% 520 480 100 € 92.5 80% 80% 440 Gross Margin Gross Margin 57.1% -0.3 points 56.8% 58.0% -
Slide 7: Aligning Overhead with Industry Conditions
Aligning Overhead with Industry Conditions Headcount Headcount Trends Temp % of Total 2,500 20% 2,137 18% 2,097 2,040 1,914 2,000 16% 383 343 316 1,759 176 67 14% 1,500 12% 10% 1,222 1,254 1,259 1,255 1,230 1,000 8% 6% 500 4% 502 500 495 483 462 2% 0 0% Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Europe/NA Fixed
Slide 8: Liquidity Trends
Liquidity Trends Cash and Deposits Net Cash 600 571.0 527.8 € 174.0 MM Dividend Q4-18 vs. Q3-18 500 475.5 2017 • Net cash of € 199.4 million, up € 39.3 million or 24.5% 443.5 € 65.3 MM Dividend 395.5 Q4-18 cash movements 400 2016 • +€ 56.6 million cash from operations • -€ 12.5 million share repurch
Slide 9: Cash Generation Trends
Cash Generation Trends € millions 200 184.1 180 168.2 35.0% 160 140 28.4% 26.3% 24.8% 120 98.7 100 19.3% 86.5 80 73.3 60 40 20 0 2014 2015 2016 2017 2018 Total Cash Flow from Operations CFO/Revenue February 20, 2019 9
Slide 10: Capital Allocation Trends
Capital Allocation Trends € millions 250 Cumulative: € 608.4 MM of distributions since 2011* 209.5 200 35.5 150 129.8 6.9 100 88.8 174.0 67.4 23.5 60.4 122.9 22.0 50 56.9 65.3 12.4 45.4 12.4 0 2014 2015 2016 2017 2018 2019* Dividends Share Repurchases * Assumes proposed dividend payment of € 1.67 pe
Slide 11: Dividend Trends
Dividend Trends Dividend (€) Dividend Yield(a) 3.00 12% Cumulative dividends: € 6.70/per share since 2011* 2.50 2.32 10% 9.0% 2.00 8.1% 8% 6.6% 1.67 6.5% 1.50 6% 5.5% 1.00 0.87 4% 0.75 0.60 0.50 2% Payout Ratio (b): 77% 79% 93% 100% 91% 0.00 0% 2014 2015 (c) 2016 (c) 2017 2018* Dividend Total Divide
Slide 12: II. Market
II. MARKET February 20, 2019 12
Slide 13: Assembly Equipment Market Trends
Assembly Equipment Market Trends Assembly Equipment Market Market Size YoY Growth Rate 5.0 4.6 4.6 4.4 30% 3.9 4.0 4.0 3.7 20% US$ billions 26.8% 3.0 3.2 23.9% 10% 3.0 16.1% 9.9% 0% 2.0 0.0% -10% 1.0 -12.4% -20% -22.0% -17.5% 0.0 -30% 2013 2014 2015 2016 2017 2018E 2019E 2020E Source: VLSI October 2
Slide 14: New Era of Chip Growth and Applications Will Drive Greater Computing and Data Needs
New Era of Chip Growth and Applications Will Drive Greater Computing and Data Needs Source: IMEC ITF 2018 KB – MB – GB – TB – PB – EB – ZB - YB 3 6 9 12 15 18 21 24 February 20, 2019 14
Slide 15: Adoption of 5G Will Expand Applications and Features With Increased Performance
Adoption of 5G Will Expand Applications and Features With Increased Performance Source: Qualcomm May 2017 ITF Conference February 20, 2019 15
Slide 16: III. Outlook
III. OUTLOOK February 20, 2019 16
Slide 17: Guidance Q1-19
Guidance Q1-19 Q4-18/Q1-19 Revenue Gross Margin Operating Expenses € 92.5 56.4% € 25.9 -15% +25% 55%-57% - +30% Q4-18 Q1-19 Q4-18 Q1-19 Q4-18 Q1-19 Base Line Operating Expenses € 25.7 +5% - +10% Q4-18 Q1-19 February 20, 2019 17
Slide 18: Financial Calendar
Financial Calendar 26-Feb-19 Roadshow London, organized by Kempen 27-Feb-19 Roadshow Paris, organized by Deutsche Bank 14-Mar-19 Bryan, Garnier & Co. European Technology Conference, Paris 19-Mar-19 Kepler Cheuvreux European GEMS Seminar, New York 26- Apr-19 2019 First Quarter Results 26-Apr-19 Besi
Slide 19: IV. Financial Appendix
IV. FINANCIAL APPENDIX February 20, 2019 19
Slide 20: Revenue/Order Trends
Revenue/Order Trends Q4-18 vs. Q3-18 • Revenue: € 92.5 million (-20.7%) Revenue Orders • Lower mobile demand in challenging market 280 • Orders: € 83.1 million (-23.0%) 240 • Lower mobile demand and seasonality 240 • Partial offset: Increased cloud server demand 206 • IDMs 78%/Subcontractors 22% 200
Slide 21: Revenue and Gross Margin Cycles Since 2006
Revenue and Gross Margin Cycles Since 2006 € millions 700 60.0% 56.8% Revenue Gross Margin 600 51.1% -11.4% 50.0% 525 500 39.5% 40.0% 424 400 34.1% -7.8% -6.9% 593 30.0% 4 year averages 300 302 -12.9% 379 20.0% 200 351 164 10.0% 100 191 0 0.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2
Slide 22: Gross Margin Trends
Gross Margin Trends Revenue Gross Margin 200 70% Q4-18 vs. Q3-18 • 56.4% vs. 58.0% 180 170.0 • Above guidance (54-56%) 159.3 161.1 160 153.2 154.9 65% • Product mix • Net forex positive: Revenue +USD, +CHF 140 Costs -MYR vs. EUR 116.7 120 110.2 58.7% 60% € millions 58.0% 57.3% 100 56.3% 56.5% 56.5%
Slide 23: Base Line Operating Expense Trends
Base Line Operating Expense Trends Base Opex Other Opex 45 39.1 40 34.1 34.2 35 7.4 31.6 30.5 30.4 4.4 3.0 0.9 29.1 30 3.3 25.9 4.9 2.8 25 0.2 20 15 29.7 31.2 31.7 30.7 25.6 27.1 26.3 25.7 10 5 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Baseline Opex 25.6 29.7 27.1 31.2 31.7 30.7 26.3 25.7 As
Slide 24: Currency Exposure Trends
Currency Exposure Trends Revenue Expenses 2018 ∆ 2018 ∆ 2016 Currency Exposure 2017 (2015) 2018 2016 2017 2018 vs. €* Forex Financial Impact vs. €* Euro 25% 18% 33% 26% 21% 29% US dollar 74% 82% 67% 5% 9% 9% Swiss franc - - - 21% 19% 12% Malaysian ringgit - - - 30% 31% 31% Chinese renminbi - - - 11%
Slide 25: Net Income Trends
Net Income Trends Net Income Net Margin 60 70% Q4-18 vs. Q3-18 • € 22.7 million (-€ 6.6 million) € 52.4 € 52.9 • Net margin 24.5% despite revenue decrease 50 € 47.2 60% • Innovation Box tax credit of € 4.8 million resulted in Q4-18 € 43.6 tax benefit 50% 40 € 37.1 Q4-18 vs. Q4-17 € in millions 40% •
Slide 26: Share Repurchase Activity
Share Repurchase Activity 40 30.0 35.5 35 25.0 € 23.74 30 € 21.79 20.0 Avg Cost per Share 25 22.4 22.8 € millions 20 15.0 € 12.44 15 10.0 € 8.93 10 5.0 5 4.0 0 0.0 2015 2016 2017 2018 Share Repurchases Average Cost per Share February 20, 2019 26
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