investor presentation q1-2016 results …april 29, 2016 page 8 revenue/order trends and pc/tablet...
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April 29, 2016 Page 1
INVESTOR PRESENTATION
Q1-2016 RESULTS
APRIL 29, 2016
April 29, 2016 Page 2
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,
backlog, 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 adequately decrease costs and expenses as revenues decline; loss of significant
customers; lengthening of the sales cycle; acts of terrorism and violence; 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; potential instability
in foreign capital markets; the risk of failure to successfully manage our diverse operations; those additional risk
factors set forth in Besi's annual report for the year ended December 31, 2015; any inability to attract and retain
skilled personnel; 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 29, 2016 Page 3
Table of Contents
I. Key Highlights
II. Financial Review
III. Strategic Highlights
IV. Outlook
April 29, 2016 Page 4
I. KEY HIGHLIGHTS
I. KEY HIGHLIGHTS
April 29, 2016 Page 5
Key Financial Highlights Q1-2016
• € 79.0 million:
• +1.5% vs. Q4-15
• -16.8% vs. Q1-15
Revenue
• € 103.9 million:
• +34.4% vs. Q4-15
• -0.3% vs. Q1-15
Orders
• € 8.0 million:
• -€ 1.7 million vs. Q4-15
• -€ 9.5 million vs. Q1-15 (-€ 5.5 million as adjusted)
Net Income
• Net cash of € 148.4 million:
• +€ 11.9 million vs. Q4-15
• +€ 15.3 million vs. Q1-15
Liquidity
Besi Reports Q1-16 Revenue and Net Income of € 79.0 Million and € 8.0 Million, Respectively.
Results Meet Expectations. Q1-16 Orders Increase by 34.4% Sequentially
April 29, 2016 Page 6
€ 77.8 € 79.0
[VALUE]* [VALUE]*
12.4% 10.1%
-5%
5%
15%
25%
35%
45%
55%
65%
75%
85%
95%
(€ 5)
€ 15
€ 35
€ 55
€ 75
€ 95
Q4 2015 Q1 2016
Net
marg
in %
€ m
illio
ns
Revenue Net Income ex. NR Non Recurring
Gross Margin
OPEX
Headcount
Effective Tax Rate
Quarterly Sequential Financial Highlights
20.6% 15.2%
1,539 1,590
€ 26.5 MM € 29.2 MM
+51
-5.3 points
+10.2%
50.0% 49.2%
+1.5%
-2.3 points
Q1-16/Q4-15
-0.8 points
€ 8.7* € 10.9*
(€ 1.2)
* As adjusted
(€ 0.7)
April 29, 2016 Page 7
II. FINANCIAL REVIEW
April 29, 2016 Page 8
Revenue/Order Trends
94.9
104.3
72.1
77.8 79.0
104.2
91.9
74.9 77.3
103.9
0
20
40
60
80
100
120
Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016
(eu
ro in
mill
ion
s)
Revenue Orders
Q1-16 vs. Q4-15
• Revenue: € 79.0 million (+1.5%)
• Slightly above mid point of guidance
• Industry conditions firmed
• +Die attach/packaging sales for smart phones
• Partial offset: lower sales for high end memory
and PC/tablet related applications
• Orders: € 103.9 million (+34.4%)
• +Chinese and Taiwanese subcontractors for
smart phone applications
• +IDM demand for high end memory and cloud
server applications
• +€ 25.7 million (+79.1%) subcontractors
• +€ 0.9 million (+2.0%) IDMs
Q1-16 vs. Q1-15
• Revenue: -€ 15.9 million (-16.8%)
• -Lower smart phone and mainstream electronics
applications due to H2-15 downturn
• Orders: -€ 0.3 million (-0.3%)
April 29, 2016 Page 9
Gross Margin Trends
94.9
104.3
72.1 77.8 79.0
49.0% 47.9%
48.7% 50.0%
49.2%
20%
25%
30%
35%
40%
45%
50%
55%
60%
0
20
40
60
80
100
120
140
160
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16
(eu
ro in
mill
ion
s)
Revenue Gross Margin Adjusted Gross Margin
* Excludes net restructuring benefit
Q1-16 vs. Q4-15
• 49.2% vs. 50.0%
• Exceeded high end of guidance
• € 0.3 million European restructuring charges
• Higher personnel costs/higher orders
Q1-16 vs. Q1-15
• 49.2% vs. 49.0%
• Increased materials cost efficiencies
• Net forex benefits:
• Revenue: +USD vs. euro
• Costs: -MYR vs. euro, -CHF vs. euro
• Partial offset: absence of € 0.7 million net
restructuring benefit in Q1-15
April 29, 2016 Page 10
Base Line Operating Expense Trends
21.8 25.7
23.6 22.4 23.5
3.5
6.3
5.1 4.1
5.7 25.3
32.0
28.7
26.5
29.2
0
5
10
15
20
25
30
35
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16
Other Operating Expenses
Base Opex
Baseline Opex 21.8 25.7 23.6 22.4 23.5
Other Operating Expenses
Capitalization of R&D (1.5) (1.4) (1.2) (1.5) (1.8)
Amortization of R&D 1.7 2.2 2.3 2.4 2.2
Capitalization & Amortization , net 0.2 0.8 1.0 0.9 0.4
Variable Pay (a) 4.0 3.5 2.7 2.3 5.0
Restructuring cost/(benefit) (3.0) 0.1 0.2 0.0 0.4
Forex (b) 2.3 1.9 1.2 0.9 (0.1)
Subtotal 3.5 6.3 5.1 4.1 5.7
Total 25.3 32.0 28.7 26.5 29.2(a) Includes both incentive comp and sales based variable comp
(b) Year over year comparison
April 29, 2016 Page 11
* Adjusted to exclude:
• Deferred tax adjustment (Q4-15) (€ 1.2 million)
• Net restructuring benefit (Q1-15) (€ 3.3 million)
€ 14.2
€ 15.5
€ 10.9
€ 8.7
€ 3.3
-€ 1.2 -€ 0.7
€ 17.5
€ 15.5
€ 6.3
€ 9.7
€ 8.0 15.0% 14.9%
8.7%
14.0%
11.0%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
(3)
0
3
6
9
12
15
18
21
24
Q1-15* Q2-15 Q3-15 Q4-15 Q1-16
(euro
in m
illio
ns)
Net Income ex. NR Non Recurring Net Margin ex. NR
Net Income Trends
Q1-16 vs. Q4-15
• -€ 1.7 million (-€ 2.2 million as adjusted)
• +1.5% revenue
• -0.8% gross margin
• +10.2% operating expenses
• Lower effective tax rate
• Net margin of 10.1% (11.0% as adjusted)
Q1-16 vs. Q1-15
• -€ 9.5 million (-€ 5.5 million adjusted)
• -16.8% revenue
• +15.4% operating expenses
• +0.2% gross margins
• Restructuring charges (Q1-16) (€ 0.7 million)
April 29, 2016 Page 12
Liquidity Trends
Q1-16 vs. Q4-15
• Net cash +€ 11.9 million (8.7%) to € 148.4
million
Q1-16 cash movements
Principal sources of cash
• € 20.0 million cash from operations
Principal uses of cash
• -€ 5.5 million share repurchases
• -€ 1.8 million capitalized R&D
• -€ 0.9 million capex
Q1-16 vs. Q1-15
• Net cash +€ 15.3 million (+11.5%)
161.6
113.7
132.8
157.8
169.8
28.5 22.3 23.8 21.4 21.4
133.1
91.4
109.0
136.5
148.4
0
20
40
60
80
100
120
140
160
180
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16
(eu
ro in
mill
ion
s)
Cash Debt Net Cash
April 29, 2016 Page 13
III. STRATEGIC HIGHLIGHTS
April 29, 2016 Page 14
Assembly Equipment Market Trends
• 2015 market contraction post large 2014 capacity build
• Modest downturn forecast for 2016. Growth reaccelerates in 2017 and 2018
• Besi revenue growth exceeding assembly market over past three years
3.1 3.9
3.4 3.3 3.8
4.1
-22.4%
28.1%
-13.6%
-3.9%
14.9% 8.6%
-30%
-20%
-10%
0%
10%
20%
30%
40%
0.0
1.0
2.0
3.0
4.0
5.0
2013 2014 2015E 2016E 2017E 2018E
(US
$ b
illi
on
s)
Assembly Equipment Market Market Size YoY Growth Rate
254.9
378.8 349.2
94.9 79.0
-6.9%
48.6%
-7.8% -16.8%
-50%
0%
50%
100%
150%
0
100
200
300
400
2013 2014 2015 YTD 2015 YTD 2016
(€ m
illi
on
s)
Besi Revenue Revenue YoY Growth Rate
Source: VLSI January 2016
April 29, 2016 Page 15
• Customers are largest semi mfrs.
•Most advanced packaging
applications
• Strong customer market shares:
• 30-100% of die attach
requirements
• 25-100% of packaging
requirements
• Customer market shares p.a. vary
based on capacity needs and
development cycles
• Primary competition:
• Die Attach: ASM-PT, Hitachi,
Shinkawa, Toray
• Packaging: Towa, Hanmi,
ASM-PT
Besi Share of Wallet
N/B No reported bookings for Besi nor its competitors
a) Merger completed August 2015
b) Fabless semiconductor companies such as Qualcomm, Broadcom and Mediatek have assembly production
done by subcontractors
c) Samsung satisfies most of its equipment needs internally, particularly for leading edge applications
In USD 2012 2013 2014 2015 2012 2013 2014 2015
Subcontractors
ASE 65% 60% 70% 80% 35% 65% 35% 25%
Amkor 75% 85% 90% 95% 45% 10% 20% 25%
JCET (a) 75% 50% 70% 30% 0% 10% 0% 5%
STATSChippac (a) 95% 100% 85% N/B 30% 100% 100% N/B
SPIL 50% 95% 90% 100% 35% 75% 20% 25%
Nantong Fujitsu N/B 70% 100% 100% N/B 15% 0% 35%
UTAC N/B N/B 100% 100% N/B 100% N/B 100%
Unisem 90% 85% 100% 100% N/B N/B N/B 100%
Cowell/Foxconn
(Camera Modules)
IDMs (b)
Skyworks 100% 95% 100% 100% 15% 25% 40% 90%
ST Micro 90% 70% 80% 95% 45% 75% 40% 45%
Infineon 80% 100% 100% 90% 0% 25% 90% 95%
Micron 85% 100% 45% 80% 50% N/B 100% 100%
NXP N/B 100% 100% 100% N/B 5% 100% 55%
Bosch Europe 100% 100% 100% 95% 100% 0% 100% 100%
Samsung (c) 5% 0% N/B N/B 0% 100% N/B N/B
% of product revenue 49% 52% 64% 41% 54% 70% 65% 70%
Die Attach Packaging
100% N/B 100% 65% N/B N/B N/B N/B
April 29, 2016 Page 16
Key Development & Operational Initiatives
Operational Initiatives
Transfer certain Die Attach functions to Singapore
Transfer die bonding production for local market from Malaysia to China
Transfer Plating Production from NL to Malaysia
10% fixed & temporary headcount reduction
Transfer die sorting from Austria to Malaysia
Expand Asian supply chain. System module outsourcing
2015 2016 Development Initiatives
Advanced TCB & eWLB die bonding equipment
Introduction of next generation systems
Expand solar and battery plating applications
Common parts/platform activities
April 29, 2016 Page 17
IV. OUTLOOK
April 29, 2016 Page 18
Q2-16 Guidance
Revenue Gross Margin Operating Expenses
Q1 Q2 Q1 Q2 Q1 Q2
€ 79.0 49.2% € 29.2
• Revenue +20-25% vs. Q1-16
• Gross margins 48-50%
• Opex up 0-3% vs. Q1-16
• Significant sequential operating growth forecast based on revenue growth and
cost/expense development
• Share repurchase program continues
50%
-
48%
+20%
to
+25%
0%
to
+3%
April 29, 2016 Page 19
Financial Calendar
20-May-16 Rabobank Investor Conference, Milan
25-May-16 Benelux Equities Conference, ABN AMRO, Amsterdam
7/8/9-June-16 Pan European Days ABN AMRO, New York, Boston
22-Jun-16 Rabobank Investor Conference, London
29/30-Jun-16 European Midcap Event, Paris
28-Jul-16 2016 Second Quarter Results
10/11Aug-16 Canaccord Genuity Growth Conference, Boston
7/8-Sep-16 ING Benelux Conference, London
16-Sep-16 Autumn Conference Kepler Cheuvreux, Paris
27-Oct-16 2016 Third Quarter Results
16/18-Nov-16 Morgan Stanley TMT Conference, Barcelona
23/24-Nov-16 Benelux Conference Kempen, London
7/8-Dec-16 ING Benelux Conference, New York
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