INVESTOR PRESENTATION ANNUAL AND Q4-2015 RESULTS … · 2016-08-18 · INVESTOR PRESENTATION ANNUAL AND Q4-2015 RESULTS FEBRUARY 25, 2016. February 25, 2016 Page 2 Safe Harbor Statement

February 25, 2016 Page 1

INVESTOR PRESENTATIONANNUAL AND Q4-2015 RESULTS

FEBRUARY 25, 2016


Safe Harbor Statement

This presentation contains statements about management's future expectations, plans and prospects of ourbusiness that constitute forward-looking statements, which are found in various places throughout the pressrelease, 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 resultsand 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 identifyforward looking statements, although not all forward looking statements contain these identifying words. Thefinancial guidance set forth under the heading “Outlook” contains such forward looking statements. While theseforward looking statements represent our judgments and expectations concerning the development of ourbusiness, a number of risks, uncertainties and other important factors could cause actual developments andresults to differ materially from those contained in forward looking statements, including any inability to maintaincontinued demand for our products; failure of anticipated orders to materialize or postponement or cancellation oforders, 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 significantcustomers; lengthening of the sales cycle; acts of terrorism and violence; inability to forecast demand andinventory levels for our products; the integrity of product pricing and protection of our intellectual property inforeign 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 instabilityin foreign capital markets; the risk of failure to successfully manage our diverse operations; those additional riskfactors set forth in Besi's annual report for the year ended December 31, 2014; any inability to attract and retainskilled personnel; and other key factors that could adversely affect our businesses and financial performancecontained in our filings and reports, including our statutory consolidated statements. We expressly disclaimany obligation to update or alter our forward-looking statements whether as a result of new information, futureevents or otherwise.


Table of Contents

I. Key Highlights

II. Financial Review

III. Strategic Highlights

IV. Outlook


I. KEY HIGHLIGHTS

I. KEY HIGHLIGHTS


Key Financial Highlights

• € 77.8 million :• +7.9% vs. Q3-15• -12.6% vs. Q4-14

Revenue

• € 77.3 million :• +3.2% vs. Q3-15• -5.0% vs. Q4-14

Orders

• € 9.7 million (€ 10.9 million ex adjustments):• +54.0% vs. Q3-15 (€ 6.3 million)• -50.8% vs. Q4-14 (€ 19.7 million)• -10.7% vs. Q4-14 (ex adjustment € 12.2 million)

Net Income

• Net cash of € 136.5 million• +€ 27.5 million (+25.2%) vs. Q3-15

Liquidity

Besi reports Q4-15 revenue at high end of guidance. Operating profit exceeds expectations. Net cash position increases to € 136.5 million. Prop osed 2015 dividend of € 1.20 per share.

Q4-15 FY 2015

• € 349.2 million :• -7.8% vs. 2014

Revenue

• € 348.3 million :• -14.5% vs. 2014

Orders

• € 49.0 million (€ 46.9 million ex adjustments):• -31.1% vs. 2014 (€71.1 million)• -27.3% ex adjustments

Net Income

• Net cash +€ 18.5 million (+15.7%) vs. Q4-14

Liquidity


Q4-14/Q4-15

€ 89.0

€ 77.8

13.7% 14.0%

22.2%

12.4%

-5%

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

(€ 5)

€ 15

€ 35

€ 55

€ 75

€ 95

Q4 2014 Q4 2015

Net

mar

gin

%

€m

illio

ns

Revenue Net Income ex. NR Non Recurring

Gross Margin

OPEX

Headcount

Effective Tax Rate

-38.9% 20.6%

1,632 1,539

€ 24.6 MM

€ 26.5 MM

-5.7%

+59.5 points

+7.7%

43.8% 50.0%

-12.6%

-9.7 points

FY 2014/FY 2015

+6.2 points

€ 10.9*

€ 378.8

€ 349.2

17.0% 13.4%

18.8%

14.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0 €

50 €

100 €

150 €

200 €

250 €

300 €

350 €

400 €

450 €

2014 2015

Net

mar

gin

%

€m

illio

ns

Revenue Net Income ex. NR Non Recurring

Gross Margin

OPEX

Headcount

Effective Tax Rate

0.3% 14.3%

1,632 1,539

€ 93.8 MM

€ 112.5 MM

43.8% 48.8%

-5.7%

+14.0 points

+19.9%

+5.0 points

-4.8 points

€ 64.5* € 46.9*

Solid Profit and Margin Development In Industry Downturn

€ 12.2*

-7.8%

€ 7.5

(€ 1.2)

€ 6.5

€ 2.1

* As adjusted* As adjusted


Dividend Trends

0.22 0.30 0.33

1.50

1.00 0.73

0.42 0.43

1.87

1.27

4.3%

5.2% 4.0%

8.1%

6.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2011 2012 (b) 2013 2014 2015 (c)

Div

iden

d yi

eld

Div

iden

d (€

)

Dividend EPS (diluted) Total Dividend Yield (a)

1.20

a) Based on year end stock priceb) Includes special dividend of € 0.08 c) Proposed for April 2016 AGM. Includes special dividend of € 0.20. Payout ratio for base dividend is approximately 80%

30% 71% 77% 80%Payout Ratio: 94%


II. FINANCIAL REVIEW


Revenue/Order Trends

Quarterly Trends

YTD Trends

70.0

116.2

103.5

89.0 94.9

104.3

72.1 77.8

111.1

124.2

90.9

81.4

104.2

91.9

74.9 77.3

0

20

40

60

80

100

120

140

Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015

(eur

o in

mill

ions

)

Revenue Orders

378.8349.2

407.6348.3

0

100

200

300

400

500

2014 2015

(eur

o in

mill

ions

)

Revenue Orders

Q4-15 vs. Q3-15• Revenue: € 77.8 million (+7.9%)

• Higher shipments for smart phone, high end server and solar applications

• Orders: € 77.3 million (+3.2%)• Renewed growth in smart phone, mobile and

auto applications• +€ 13.8 million (+73.8%) subcontractors• -€ 11.4 million (-20.3%) IDMs

Q4-15 vs. Q4-14• Revenue: -€ 11.2 million (-12.6%)• Lower smart phone and mainstream electronics

applications due to downturn

• Orders: -€ 4.1 million (-5.0%)

2015 vs. 2014• Revenue: -€ 29.6 million (-7.8%)

• Industry downturn and slower Chinese growth• Lower smart phone and electronics demand• Partial offset TCB and die sorting systems for

memory and high end servers

• Orders: -€ 59.3 million (-14.5%)


Currency Exposure Trends

Currency Exposure (2015) Forex Financial Impact

Revenue Expenses

2015 2014 2013 2015 2014 2013Euro 29% 34% 28% 31% 32% 34%

US dollar 70% 65% 71% 5% 4% 7%Swiss franc - - - 22% 18% 26%

Malaysian ringgit - - - 28% 37% 22%Chinese renminbi - - - 7% 5% 5%Singapore dollar - - - 4% 2% 3%

Other 1% 1% 1% 3% 2% 3%Total 100% 100% 100% 100% 100% 100%

• USD/euro revenue mix relatively stable at 70/30%

• Cost exposure shifting: Asian production transfer increases relevance of MYR, Chinese renminbi and Singapore dollar to cost structure

• Euro and CHF cost % should reduce in 2016 based on 2015 operating initiatives


Gross Margin Trends

Quarterly Trends

378.8 349.2

43.8%

48.8%

48.6%

40%

45%

50%

55%

0

100

200

300

400

2014 2015

(eur

o in

mill

ions

)

Revenue Gross MarginYTD Trends

70.0

116.2 103.5

89.0 94.9

104.3

72.1 77.8

42.3%43.2%

45.3%43.8%

49.0% 47.9%48.7%

50.0%

48.2%*

20%

25%

30%

35%

40%

45%

50%

55%

0

20

40

60

80

100

120

140

160

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

(eur

o in

mill

ions

)

Revenue Gross Margin Adjusted Gross Margin

* Excludes net restructuring benefit

Q4-15 vs. Q3-15• 50.0% vs. 48.7%

• Exceeded guidance• High end of target range• Improved material efficiencies• Net forex benefits:

• Revenue: +USD vs euro• Costs: -MYR and -CHF vs. euro

Q4-15 vs. Q4-14 • 50.0% vs. 43.8%

• Improved material and personnel efficiencies• Net forex benefits:

• Revenue: +USD vs. euro• Costs: -MYR vs. euro, +CHF vs. euro

2015 vs. 2014 • 48.8% vs. 43.8%• Improved material and personnel efficiencies• Net forex benefits:

• Revenue: +USD vs. euro• Costs: +CHF vs. euro, MYR flat


Base Line Operating Expense Trends

20.9 22.0 21.4 22.5 22.2 26.1

23.9 22.6

0.6 2.6

1.7 2.2 3.1

5.9

4.8 3.9 21.5

24.6 23.1

24.7 25.3

32.0

28.7 26.5

0

5

10

15

20

25

30

35

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

Base Opex Other Operating Expenses

Baseline Opex 20.9 22.0 21.4 22.5 22.2 26.1 23.9 22.6 86.8 94.6

Other Operating Expenses

Capitalization of R&D (2.8) (2.4) (2.0) (2.1) (1.5) (1.4) (1.2) (1.5) (9.3) (5.5)

Amortization of R&D 1.1 1.2 1.3 1.2 1.7 2.2 2.3 2.4 4.8 8.6

Capitalization & Amortization , net (1.7) (1.2) (0.7) (0.9) 0.2 0.8 1.0 0.9 (4.5) 3.1

Forex CHF/EUR 0.0 0.0 0.0 0.0 1.9 1.5 0.9 0.7 0.0 5.0

Restructuring cost/(benefit) 0.2 0.8 0.0 0.0 (3.0) 0.1 0.2 0.0 1.0 (2.7)

Variable Pay 2.1 3.0 2.4 3.1 4.0 3.5 2.7 2.3 10.5 12.5

Subtotal 0.6 2.6 1.7 2.2 3.1 5.9 4.8 3.9 7.0 17.7

Total 21.5 24.6 23.1 24.7 25.3 32.0 28.7 26.5 93.9 112.5

86.8 94.8

7.1

17.7 93.9

0

20

40

60

80

100

120

2014 2015

112.5


Headcount Trends

• Aggregate headcount down 5.7% vs. 2014• -8.6% since Q2-15

• European/NA fixed headcount continues to decline• -8.8% from year end 2014• Asia 63% of total now

741 680 624 602 549

802 799 810 908 950

64 60

24 122 40

1,607 1,5391,458

1,6321,539

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2011 2012 2013 2014 2015

Tem

p %

of T

otal

Hea

dcou

nt

Europe/NA Fixed HC Asia Fixed HC Temporary HC Temp % of Total

1,543 1,479 1,434 1,510 1,499

52%54%

56%

60%63%

48%46%

44%

40%37%

30%

40%

50%

60%

70%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2011 2012 2013 2014 2015

Hea

dcou

nt

Europe/NA Fixed HC Asia Fixed HC Asia % Europe/NA %

Fixed Headcount

Total Headcount


* Adjusted to exclude:• Deferred tax adjustment (Q4-15) (€ 1.2 million)• Net restructuring benefit (Q1-15) (€ 3.3 million)

7.3

23.5

12.2 14.2

10.9

(0.3) (0.6)

7.5 3.3

(1.2)

7.0

22.9 21.5

19.7

17.5 15.5

6.3

9.7

10.4%

20.2% 20.8%

13.7%15.0% 14.9%

8.7%

14.0%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

(3)

0

3

6

9

12

15

18

21

24

Q1-14 Q2-14 Q3-14 Q4-14* Q1-15* Q2-15 Q3-15 Q4-15

(eur

o in

mill

ions

)

Net Income ex. NR Non Recurring Net Margin ex. NR

Net Income Trends

Quarterly Trends

YTD Trends

64.5

46.9

6.5

2.1

71.1

49.0

17.0%13.4%

-5%

5%

15%

25%

35%

0

20

40

60

80

2014 YTD* 2015 YTD*

(eur

o in

mill

ions

)

Non Recurring Net Income ex. NR Net Margin ex. NR

Q4-15 vs. Q3-15• +€ 3.4 million (€ 4.6 million adjusted)• +7.9% revenue• +1.3% gross margin• -7.7% operating expenses • Higher reported tax rate• Net margin increases from 8.7% to 14.0% as

adjusted

Q4-15 vs. Q4-14• -€ 10.0 million (-€1.3 million adjusted)• € 8.7 million variance in deferred tax

adjustments• -12.6% revenue• +7.7% operating expenses • +6.2% gross margins• Net margin 14.0% vs. 13.7% adjusted

2015 vs. 2014: • -€ 22.1 million (€ 17.6 million adjusted)• -7.8% revenue decrease • € 9.3 million variance in deferred tax

adjustments• +€ 18.8 million operating expenses • +5.0% gross margin• +€ 4.9 million restructuring variance

• Deferred tax adjustment (Q2-14, Q4-14) (€ 0.7 million, € 7.5 million)• Restructuring charges (Q1-14, Q2-14) (€ 0.3 million, € 1.3 million)


Liquidity Trends

Q4-15 vs. Q3-15• Net cash +€ 27.5 million (25.2%) to € 136.5

million

Q4-15 cash movements

Principal sources of cash• € 32.5 million cash from operations

Principal uses of cash• -€ 3.5 million share repurchases• -€ 2.4 million debt payments • -€ 1.5 million capitalized R&D• -€ 0.6 million capex

Q4-15 vs. Q4-14• Net cash +€ 18.5 million (+15.7%)

• Strong profit generation plus decreased working capital requirements

91.9 83.8

105.4

135.3

161.6

113.7

132.8

157.8

19.1 21.3 19.3 17.3

28.5 22.3 23.8 21.4

72.8

62.5

86.1

118.0

133.1

91.4

109.0

136.5

0

20

40

60

80

100

120

140

160

180

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

(eur

o in

mill

ions

)

Cash Debt Net Cash


III. STRATEGIC HIGHLIGHTS


4.44.0

3.1

3.9

3.4 3.3

3.8 4.1

-6.6%-9.1%

-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

2011 2012 2013 2014 2015E 2016E 2017E 2018E

(US

$ bi

llion

s)

Assembly Equipment Market Size YoY Growth Rate

326.9

273.7 254.9

378.8 349.2

-6.9%-16.3%

-6.9%

48.6%

-7.8%

-50%

0%

50%

100%

150%

0

100

200

300

400

2011 2012 2013 2014 2015

(€m

illio

ns)

Besi RevenueRevenue YoY Growth Rate

Assembly Equipment Market Trends

Source: VLSI January 2016


Key R&D Highlights

Initiative/Timetable

Advanced TCB & eWLB die bonding equipment

Introduction of next generation systems

Expand solar and battery plating applications

Common parts/platform activities

2015 2016

• Volume production of leading edge TCB systems• Introduction/delivery of new <5 micron flip chip and eWLB systems for higher volume production • Roll out of next generation die attach, packaging and die sorting systems with higher speed and

accuracy• Introduction of new solar and 3D lithium-ion battery plating systems• Ongoing development of TCB, TSV, copper pillar and WLP

2015


Key Operating Initiatives

Initiative/Timetable

10% fixed & temporary headcount reduction

Transfer of die bonding production for local market from Malaysia to China

Transfer of certain Swiss Die Attach software, logistics and administrative

functions to Singapore

Transfer of Plating Production from NL to Malaysia

Transfer of die sorting from Austria to Malaysia

Expansion of Asian supply chain. System module outsourcing

2015 2016


IV. OUTLOOK


Q1-16 Guidance

Revenue Gross Margin Operating Expenses

Q4 Q1 Q4 Q1 Q4 Q1

€ 77.8 50.0% € 26.5

• Revenue within a range of +5% to -5% vs. Q4-15• Gross margins 47-49% range due to product mix and less favorable forex than

Q4-15• Opex +10% due to 2015 related share based compensation expense • Share repurchase program continues

Up

10%

49%-

47%

+5%to

-5%


Financial Calendar

29-Feb-16/1-Mar-16 Roadshow London organized by SNS Securities

2/3-Mar-16 Roadshow Frankfurt, Paris organized by ING Bank

4-Mar-16 Roadshow Switzerland organized by Rabobank

18-Mar-16 Rabobank Investor Conference, Amsterdam

29-Apr-16 2016 First Quarter Results

29-Apr-16 Annual General Meeting of Shareholders

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

28-Jul-16 2016 Second Quarter Results

Aug-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

Documents

INVESTOR PRESENTATION ANNUAL AND Q4-2015 RESULTS … · 2016-08-18 · INVESTOR PRESENTATION ANNUAL AND Q4-2015 RESULTS FEBRUARY 25, 2016. February 25, 2016 Page 2 Safe Harbor Statement