ANNUAL GENERAL MEETING
April 30, 2020
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 expectations of orders, net sales, product shipments, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as "anticipate", "estimate", "expect", "can", "intend", "believes", "may", "plan", "predict", "project", "forecast", "will", "would", and similar expressions are intended to identify forward looking statements, although not all forward looking statements contain these identifying words. The financial guidance set forth under the heading "Outlook" contains such forward looking statements. While these forward looking statements represent our judgments and expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from those contained in forward looking statements, including any inability to maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including through consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel; those additional risk factors set forth in Besi's annual report for the year ended December 31, 2019; and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
April 30, 2020 | 2 |
Agenda
- Company Overview
- Market
- Strategy
IV. Financial Review
- Q1-20Results, Outlook & Summary
April 30, 2020 | 3 |
I. COMPANY OVERVIEW
April 30, 2020 | 4 |
Summary Financials 2017 - 2019
€ millions except % | 2018/19 | |||||
2017 | 2018 | 2019 | Variance | |||
& EPS | ||||||
Revenue | € 592.8 | € 525.3 | € 356.2 | -32.2% | ||
Orders | € 680.9 | € 483.1 | € 348.7 | -27.8% | ||
Gross Margin | 57.1% | 56.8% | 55.8% | -1.0 | ||
Net Income | € 173.2 | € 136.3 | € 81.3 | -40.4% | ||
Net Margin | 29.2% | 25.9% | 22.8% | -3.1 | ||
EPS (Basic)* | € 2.32 | € 1.83 | € 1.12 | -38.8% | ||
Net Cash | € 247.6 | € 199.4 | € 130.3 | -34.7% | ||
* Adjusted for two for one stock split effected on May 4, 2018 | ||||||
April 30, 2020 | 5 |
Revenue and Gross Margin Cycles Since 2006
€ millions | Revenue | Gross Margin | Gross Margin | |||||
700 | 60% | |||||||
56.8% | ||||||||
55.8% |
600
500
400
4 year | 300 |
averages | |
51.1% | 50% | ||||||||||||||||||
593 | |||||||||||||||||||
40% | |||||||||||||||||||
39.5% | |||||||||||||||||||
424 | |||||||||||||||||||
34.1% | |||||||||||||||||||
379 | 356 | 30% | |||||||||||||||||
302 | |||||||||||||||||||
351 | 20% | ||||||||||||||||||
164 | |||||||||||||||||||
191 | 10% | ||||||||||||||
100 | |||||||||||||||
0 | 0% | ||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
April 30, 2020 | 6 |
Attractive Gross Margins Maintained
Revenue | Gross Margin | ||||||||||||||||||
180 | 170 | 159 | 161 | 100% | |||||||||||||||
160 | 153 | 155 | Downturn | ||||||||||||||||
90% | |||||||||||||||||||
140 | |||||||||||||||||||
117 | 80% | ||||||||||||||||||
120 | 109 | 110 | |||||||||||||||||
€ millions | Margin % | ||||||||||||||||||
100 | 94 | 93 | 93 | 93 | 90 | 92 | 70% | ||||||||||||
81 | |||||||||||||||||||
80 | 79 | 58.7% | 58.0% | 60% | |||||||||||||||
55.7% | 57.3% | 56.3% | 56.5% | 56.5% | 56.4% | 55.9% | 56.0% | 56.3% | Gross | ||||||||||
55.1% | |||||||||||||||||||
53.2% | |||||||||||||||||||
60 | 50.9% | ||||||||||||||||||
49.2% | 50.5% | ||||||||||||||||||
50% | |||||||||||||||||||
40 | |||||||||||||||||||
20 | 40% | ||||||||||||||||||
0 | Q1-16 | Q2-16 | Q3-16 | Q4-16 | Q1-17 | Q2-17 | Q3-17 | Q4-17 | Q1-18 | Q2-18 | Q3-18 | Q4-18 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | 30% | ||
April 30, 2020 | 7 |
Overhead Alignment With Market Cycles
- millions
140
Baseline Opex Trends 2015-2019 | 45% |
120 | 113.7 | 40% | ||||
Baseline Operating Expense | 94.8 | 96.9 | 35% | |||
100 | 30% | |||||
Opex/Revenues | ||||||
80 | 27.1% | 27.2% | 25% | |||
60 | 19.2% | 20% | ||||
40 | 15% | |||||
10% | ||||||
20 | 5% | |||||
0 | 0% | |||||
2015 | 2017 | 2019 | ||||
Baseline Opex | Baseline Opex/Revenues |
- Overhead aligned with order patterns
- Substantial operating leverage in business model
April 30, 2020 | 8 |
Increased Profitability vs. Last Market Downturn
2015 | 2019 |
€ millions
+2.0% | ||||||
350 | 356.2 | |||||
349.2 | ||||||
25.8% | ||||||
Revenue | 300 | 91.9 | ||||
+58.7% | ||||||
16.6% | ||||||
57.9
250
200
Revenue | Operating Income | |
140 | |
120 | |
100 | Income |
80 | |
Operating | |
60 | |
40 | |
20 | |
0 |
April 30, 2020 | 9 |
Attractive Capital Allocation. € 167.1 Million Distributions in 2019.
- 729.5* Million Since 2011.
€ millions
250 | ||||||||||||||||||||
Dividends | Share Repurchases | |||||||||||||||||||
200 | 209.5 | |||||||||||||||||||
35.5 | ||||||||||||||||||||
167.1 | ||||||||||||||||||||
150 | ||||||||||||||||||||
44.7 | ||||||||||||||||||||
100 | ||||||||||||||||||||
88.8 | ||||||||||||||||||||
174.0 | 76.6 | |||||||||||||||||||
67.4 | 23.5 | |||||||||||||||||||
3.1 | ||||||||||||||||||||
60.4 | 122.4 | |||||||||||||||||||
50 | 3.5 | 22.0 | ||||||||||||||||||
56.9 | 65.3 | 73.5 | ||||||||||||||||||
45.4 | ||||||||||||||||||||
0 | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020* | |||||||||||||||
6% | ||||||||||||||||||||
33% | 26% | 17% | 27% | 4% | ||||||||||||||||
94% | 67% | 74% | 83% | 73% | 96% | |||||||||||||||
* Assumes proposed 2019 dividend payment of € 1.01 per share and share repurchases through March 31, 2020.
April 30, 2020 | 10 |
Primary Valuation Drivers (2019)
Leading LTM Profit, Cash Flow and ROE Metrics
Worst | BESI |
Peer |
Revenue Growth | -36.7% | |||||||||||
-36.7% | -32.2% | -24.4% | -13.3%-12.4% | |||||||||
Gross Margin | 24.6% | |||||||||||
24.6% | 41.1% | 47.5% | 55.8% | 60.1% | ||||||||
Operating Margin | 2.0% | |||||||||||
2.0% | 3.9% | 6.8% | 24.6% | 25.9% | ||||||||
Net Margin | 1.6% | 3.9% | ||||||||||
18.9% | ||||||||||||
1.6% | 3.3% | 22.8% | ||||||||||
CFO/Revenue | -9.2% | 17.8%18.5% | ||||||||||
-9.2% | 6.6% | 33.7% | ||||||||||
ROE | 1.5% | |||||||||||
1.5% 2.2% | 5.2% | 11.9% | 24.2% | |||||||||
ASM Pacific | Towa | K&S | Besi | Disco |
Source: Bloomberg Consensus April 8, 2020, ASM PT backend segment information used for revenue, gross margin and operating margins
April 30, 2020
Best
Peer
-12.4%
60.1%
25.9%
22.8%
33.7%
24.2%
11
Total Shareholder Return Outpaces Peers and SOX Index In 2019 And For Past Five Years
2019 Total Shareholder Return | Total Cumulative Shareholder Return |
Besi vs. SOX Index | |
Besi vs. Peer Group & SOX Index | |
2015-2019 | |
Besi | Peer Group Average | PHLX Semiconductor (SOX) | 450% |
120% | |||
98.7% | 400% | ||
100% | |||
350% | |||
80% | 71.3% | 300% | |
66.5% | 250% | ||
60% | |||
200% | |||
40% | 150% | ||
100% | |||
20% | |||
50% | |||
0% | 0% |
Besi Peer Group Average PHLX Semiconductor (SOX)
395.7% |
218.5% |
133.2% |
- Total shareholder return includes reinvestment of dividends
- Besi returns calculated in EUR, Philadelphia SOX returns calculated in USD
- Peer group average consists of Kulicke & Soffa, ASM PT, Disco Corp, Towa, Tokyo Seimitsu.
Source: Bloomberg
April 30, 2020 | 12 |
Shareholder Base Expanded
Market Profile
Symbol/
Index
Market
Cap*
Dividend
Policy
- BESI
- Euronext Midcap AMX
- € 2.0 billion ($ 2.1 billion)
- Pay out40-100% of net income per annum
Avg. Daily Volume & Liquidity
(thousands) | 1000 | 25,000 | |||||
800 | 20,000 | ||||||
600 | 15,000 | ||||||
Volume | 400 | 10,000 | |||||
200 | 5,000 | ||||||
0 | 0 | ||||||
2015 | 2016 | 2017 | 2018 | 2019 |
Avg Vol * Avg Price (€ thousands)
Share
Ownership
* As of March 31, 2020 ** Besi estimates
Top 10 Shareholders** | 100% | By Geography | |||||||||||
(% of shares outstanding) | 90% | Unidentified | |||||||||||
15% | Europe | ||||||||||||
70% | 80% | 15% | |||||||||||
ex. NL | |||||||||||||
56% | 21% | ||||||||||||
60% | 70% | ||||||||||||
48% | 23% | ||||||||||||
50% | 60% | 27% | NL | ||||||||||
41% | 20% | ||||||||||||
40% | 50% | 18% | |||||||||||
30% | 40% | 16% | UK | ||||||||||
20% | 30% | 22% | |||||||||||
10% | 20% | ||||||||||||
31% | 35% | US | |||||||||||
0% | 10% | 20% | |||||||||||
2017 | 2018 | 2019 | |||||||||||
0% | |||||||||||||
2017 | 2018 | 2019 | |||||||||||
April 30, 2020 | 13 |
II. MARKET
April 30, 2020 | 14 |
Assembly Equipment Market Trends
Assembly Equipment Market
5.0 | Market Size | YoY Growth Rate | 50% | ||||||||
4.4 | 4.3 | ||||||||||
3.7 | 3.9 | ||||||||||
4.0 | 3.5 | 3.6 | 30% | ||||||||
billions | 3.1 | 3.0 | 2.8 | ||||||||
3.0 | 27.3% | 10% | |||||||||
22.9% | 25.8% | ||||||||||
12.5% | 9.2% | ||||||||||
US$ | 2.0 | -10% | |||||||||
-2.5% | -8.3% | ||||||||||
-16.5% | |||||||||||
1.0 | -30% | ||||||||||
-29.3% | |||||||||||
0.0 | -50% | ||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020E | 2021E | 2022E |
Source: VLSI April 2020
Besi Revenue
Revenue | YoY Growth Rate | |||||||
600 | 592.8 | 525.3 | 100% | |||||
€ millions | 378.8 | 375.4 | 57.9% | |||||
400 | 48.6% | 349.2 | 356.2 | 50% | ||||
200 | 7.5% | 0% | ||||||
-7.8% | -11.4% | |||||||
-32.2% | ||||||||
0 | -50% | |||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
- VLSI revised 2019 forecast to-29.3% from more optimistic view at start of 2019
- 2020 forecast upturn of 10.3% downgraded to-8.3% in April due to COVID-19
- Assumes economic activity regains traction inQ3-20
- Strong rebound from depressed levels anticipated in 2021 and 2022
April 30, 2020 | 15 |
Move to Digital Society Helps Drive Advanced Packaging Growth
April 30, 2020 | 16 |
Expansion of Cloud Infrastructure and Connected Devices Also Aids Growth
April 30, 2020 | 17 |
Besi Portfolio Well Positioned For Assembly Requirements of Next Generation Applications
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Estimated % of 2019 Revenue
Accuracy Size
Micron NM
25% | 10+ | 28+ |
20% | 10 | 28 |
40% | 7 | 18 |
15% | 3 | 10 | |||
Typical Application | Besi Equipment |
Automotive, SiP | Die Attach |
Packaging | |
Power | |
Plating | |
IOT | Die Attach |
Packaging | |
General ICs | |
Plating | |
Computer, PC, Mobile | Die Attach |
Cloud Computing | Packaging |
High Performance Computing | Die Attach |
Memory | Packaging |
- 75% of Besi equipment revenue advanced packaging as per VLSI definition
- 55% equipment revenue is < 7 micron accuracy and sub 18 nanometer
- Most rapidly growing market segment
April 30, 2020 | 18 |
III. STRATEGY
April 30, 2020 | 19 |
Besi Strategy
Besi Strategy
Increase | Enhance | Pursue CSR | Acquire | Reward | |
Maintain best | scalability of | strategy | |||
market | companies with | Shareholders | |||
in class | manufacturing | balancing | |||
presence in | complementary | via capital | |||
technology | model. | business with | |||
addressable | technologies | allocation | |||
leadership | Reduce | social/ecological | |||
markets | and products | policy | |||
structural costs | responsibilities | ||||
April 30, 2020 | 20 |
2019 End User Application Trends
35%
30%
2019 % of Revenue
32%
- Mobile Internet, Computing and Automotive largest end markets
- Estimated 71% of revenue in 2019
- % vary p.a. based on customer roadmaps
25% | ||||
22% | •Mobile is largest market | |||
20% | ||||
20% | • | Varies based on timing/success of new | ||
17% | ||||
15% | features and product introductions | |||
•Computing growth due to increased | ||||
9% | ||||
10% | ||||
demand for high end logic, cloud and | ||||
5% | memory solutions | |||
0% | •Growth in automotive reflects ever | |||
increasing electronic content | ||||
•Spares/service: 20% of 2019 revenue | ||||
• | Growth in installed base | |||
• | Less volatile revenue stream | |||
Source: Company Estimates | ||||
April 30, 2020 | 21 |
Business Model Objectives
Revenue
Addressable
Market Share
Gross Margin
Net Margin
Headcount
Split
April 30, 2020
Objectives
€ 800MM
40%+
55-60%
30-35%
80% Asia/20% Euro
22
Strategic Plan Update
Revenue Initiatives | Cost Initiatives | |||
Customer: | Supply Chain: | |||
• Expand partnership with next-generation | ||||
• Increased production/supply chain flexibility: | ||||
leaders to gain share | ||||
MY, CHN, SGP | ||||
• Exploit opportunities for hybrid bonding, micro | ||||
• Vendor consolidation and volume discounts | ||||
LED, memory/TCB, solar plating | ||||
• | Increased common parts | |||
Service/Support | Product Design: | |||
• Sustain operational and service excellence to | • Cost reduction with each new generation | |||
support installed base growth | • Reduce number of platforms | |||
• Grow spares/service business | • Increase standardization | |||
• | Cost down engineering | |||
Research and Development | Headcount | |||
• Organize R&D group to support revenue | • Continue West to East transfer | |||
objectives | ||||
April 30, 2020 | 23 |
Progress on CSR Agenda
CSR Highlights 2019 | ||
| Reduced packaging, energy, waste, and water usage | |
| Installed solar panels at Malaysia facility | |
Environmental | | Developed system to better assess sustainability in |
Footprint | product design | |
| Received MISA '19 Audience Award for solar panel | |
efficiency | ||
| Implemented video conferencing system to reduce | |
travel | ||
Human Resources | | New management training, governance and e- |
learning programs | ||
| Achieved RBA gold status | |
Supply Chain | ||
| Increased supply chain compliance with RoHs | |
standards | ||
April 30, 2020
CSR Objectives 2020
Review sustainability strategy
Improve reporting and KPI
monitoring
Upscale sustainability initiatives
24
Reductions in Besi's Environmental Impact
GWh
Energy Usage
1817.7
(15.8%)
16
14.9
14
12
2017 2019
Waste Usage
200
183
175 | ||
tons | (13.1)% | |
159 |
150
125
2017 2019
Water Usage
35
32.6
(16.3%)
³thousands)(inm | 30 | |
27.3 | ||
25 | ||
20
2017 2019
April 30, 2020 | 25 |
IV. FINANCIAL REVIEW
April 30, 2020 | 26 |
Solid 2019 Performance In Challenging Market
2018/2019 Comparison
600 | Revenue | Net Margin | |||||||||||
€ 525.3 | |||||||||||||
550 | 32.2% | ||||||||||||
500 | |||||||||||||
€ 356.2 | |||||||||||||
450 | |||||||||||||
Gross Margin | |||||||||||||
400 | 56.8% | - 1.0 points | 55.8% | ||||||||||
OPEX | |||||||||||||
millions) | 350 | € 125.7 MM | - 15.0% | € 106.9 MM | |||||||||
1,759 | - 163 | 1,596 | |||||||||||
300 | |||||||||||||
Headcount | |||||||||||||
(€ | Effective Tax Rate | ||||||||||||
Revenue | 250 | ||||||||||||
12.1% | - 16.2 points | (4.1%) | |||||||||||
200 | |||||||||||||
25.9% | - 3.1 points | 22.8% | |||||||||||
150 | |||||||||||||
€ 11.6 | |||||||||||||
100 | |||||||||||||
€ 136.3 | |||||||||||||
50 | € 69.7 | ||||||||||||
0 | |||||||||||||
2018 | 2019* | ||||||||||||
- Includes € 11.6 million tax benefit at Besi Switzerland inQ4-19
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Net margin %
April 30, 2020 | 27 |
Key Financial Metrics 2015 - 2019
Revenue &
Gross Margin
700
600 | 593 | ||||||||||||
64% | |||||||||||||
500 | |||||||||||||
356.2 | |||||||||||||
millions€ | 400 | 349 | 58% | ||||||||||
57.1% | MarginGross | ||||||||||||
300 | 55.8% | ||||||||||||
200 | 52% | ||||||||||||
100 | |||||||||||||
48.8% | |||||||||||||
0 | 46% | ||||||||||||
2015 | 2017 | 2019 | |||||||||||
Revenue | Gross Margin | ||||||||||||
Baseline | Net Income |
Opex |
140 | 129.2 | 200 | 45% | ||||||
120 | 112.5 | 15.5 | 180 | 173.2 | 40% | ||||
106.9 | |||||||||
160 | |||||||||
100 | 17.7 | 10.0 | 140 | 35% | |||||
80 | 120 | 30% | |||||||
millions€ | millions€ | 29.2% | 81.3 | ||||||
60 | 25% | ||||||||
100 | |||||||||
113.7 | 80 | 22.8% | |||||||
94.8 | 96.9 | ||||||||
60 | 49.0 | ||||||||
40 | 20% | ||||||||
40 | |||||||||
20 | 20 | 14.0% | 15% | ||||||
0 | 0 | 10% | |||||||
2015 | 2017 | 2019 | 2015 | 2017 | 2019 | ||||
Base Opex | Other Operating Expenses | Net Income | Net Margin | ||||||
April 30, 2020 | 28 |
Flexible Asian Workforce Has Significantly Enhanced Scalability
Fixed Headcount
2,000 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,724 | 1,692 | 1,626 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,800 | 1,549 | 1,605 | 1,546 | 1,534 | 90% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
80% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Headcount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
73% | 72% | 72% | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,200 | 71% | 71% | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
67% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,000 | 60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
800 | 50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
40% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
200 | 33% | 29% | 29% | 30% | 30% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
27% | 28% | 28% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
0 | 20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 2017 | 2018 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe/NA Fixed HC | Asia Fixed HC | Asia % | Europe/NA % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Headcount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,500 | 20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,040 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,000 | 16% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,759 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,716 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,669 | 316 | 1,695 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,634 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,596 | Totalof%Temp | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
67 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Headcount | 69 | 111 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
120 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
88 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
62 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,500 | 12% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,222 | 10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,000 | 1,041 | 1,230 | 1,174 | 1,155 | 1,093 | 1,081 | 8% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
500 | 4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
508 | 502 | 462 | 452 | 450 | 453 | 453 | 2% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
0 | 0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 2017 | 2018 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe/NA Fixed HC | Asia Fixed HC | Temporary HC | Temp % of Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Headcount adjusted in downturn:
- 25.3% reduction fromQ1-18 peak to Q4-19
- Focus on SG&A structure currently
- Asian HC rationalized in 2019 post large2015-2018 ramp
- Both fixed and temporary workers
- European and NA fixed HC has declined:
- -37.3%since 2011
- -16.0%vs. 2015
- Stable in 2019 due to R&D ramp
April 30, 2020 | 29 |
Cash Generation Trends
€ millions | % of Revenue | |||||||||||
200 | ||||||||||||
Total Cash Flow from Operations | 184.1 | |||||||||||
180 | As % of Revenue | 168.2 | ||||||||||
160 | ||||||||||||
140 | ||||||||||||
120.1 | ||||||||||||
120 | ||||||||||||
98.7 | 35.0% | |||||||||||
100 | 33.7% | |||||||||||
86.5 | ||||||||||||
28.4% | ||||||||||||
8026.3% 24.8%
60
40
20
0
2015 | 2016 | 2017 | 2018 | 2019 |
April 30, 2020 | 30 |
V. Q1-20 RESULTS, OUTLOOK
AND SUMMARY
April 30, 2020 | 31 |
Q1-20 Operating Profit Exceeds Expectations
Revenue, Orders and Net Income Rebound vs. Q1-19
Guidance | ||||
€ millions | Q1-20* | Q1-20 | ∆ Q4-19 | ∆ Q1-19 |
Revenue | -10% - +10%* | 91.3 | -1.2% | +12.2% |
Orders | 118.6 | +18.0% | +42.2% | |
Gross Margin | 54%-56% | 56.7% | +0.4 | +0.8 |
Opex | +35% - +40%* | 33.0 | +31.0% | +7.5% |
Net Income | 13.9 | -58.8%** | +46.3% | |
EPS Basic | 0.19 | -59.6%** | +46.2% | |
Net Cash | 148.3 | +13.8% | -35.4% | |
- As compared toQ4-19
- Q4-19included € 11.6 million tax benefit at Besi's Swiss operations
April 30, 2020 | 32 |
Strong Liquidity Position
Cash and Deposits | Net Cash | |
600 | •Strong cash flow generation during downturn: | ||||||||||
527.8 | •Net cash of € 130.3 million at year end | ||||||||||
507.5 | •Includes € 167.1 million of dividends and share | ||||||||||
€ 122.4 MM | |||||||||||
repurchases | |||||||||||
500 | 475.5 | Dividend | |||||||||
2018 | •Net cash increased to € 148.3 million at Q1-20 | ||||||||||
427.6 | |||||||||||
408.4 | •Improved working capital management and faster | ||||||||||
400 | 361.7 | 383.7 | cycle times | ||||||||
millions | |||||||||||
300 | • | Convertible debt: | |||||||||
304.8 | •Attractive funding to help finance growth: | ||||||||||
€ | •€ 300 million (2 issues/1.33% blended rate) | ||||||||||
247.6 | 229.7 | •4.5 year blended average maturity | |||||||||
200 | |||||||||||
199.4 | |||||||||||
157.8 | 168.1 | • | Revolving credit facility: | ||||||||
148.3 | |||||||||||
136.5 | |||||||||||
130.3 | •€ 80 million expandable to € 136 million | ||||||||||
100 | 106.9 | ||||||||||
86.1 | •5-year term extendable to 7 years | ||||||||||
•Consolidates subsidiary credit lines at N.V. | |||||||||||
0 | |||||||||||
2015 | 2016 | 2017 | 2018 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | Q1-20 | |||
April 30, 2020 | 33 |
Semi Equipment Recovery Changed Markedly at End of Q1-20
Source: VLSI April 2020 | Source: VLSI February 2020 |
April 30, 2020 | 34 |
COVID-19 Update
Besi operating with varying restrictions
- Headcount: nearly 70% located in Asia
- Malaysia: Deemed essential business. Permitted to resume full operations recently
- Fully operational China
- Singapore: Deemed essential business. Open but most staff working remotely
- Adjusting Asian production as necessary according to local circumstances and regulations
- Europe R&D, product management, sales working remotely
Supply chain functioning
- Not optimally, but good enough
- 80% sourced in Asia
- Dual sourcing strategy and inventory stocking of critical parts have lessened bottlenecks so far
- Somenon-critical components can cause delays
Strong liquidity position, flexible Asian production and supply chain help Besi navigate COVID challenges
April 30, 2020 | 35 |
Guidance Q2-20
- in millions
Revenue
€ 91.3 | +5% |
- | |
+25% |
Q1-20Q2-20
April 30, 2020
Gross Margin
56.7%56%-58%
Q1-20Q2-20
-15%
-15%
Operating Expenses
-10% | |
€ 33.0 | - |
-15% | |
Q1-20Q2-20
36
Summary
Assembly market | Long term secular | Disciplined | Market presence |
ever more critical | trends drive | strategic focus | has grown via key |
in semiconductor | advanced | has created an | IDM customers |
value chain | packaging growth | industry leader | and supply chains |
Asian production | Tech leadership | Attractive capital |
and scalable | ||
expansion has | model have | allocation policy |
been a game | resulted in | rewards |
changer | benchmark | shareholders |
financial returns |
April 30, 2020 | 37 |
ANNUAL GENERAL MEETING
April 30, 2020
April 30, 2020 | 38 |
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Disclaimer
BE Semiconductor Industries NV published this content on 30 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 May 2020 21:38:09 UTC