Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
October 22, 2015 Page 1
INVESTOR PRESENTATIONQ3-2015 RESULTS
OCTOBER 22, 2015
October 22, 2015 Page 2
Safe Harbor Statement
This presentation contains statements about management's future expectations, plans and prospects of our business thatconstitute forward-looking statements, which are found in various places throughout the press release, including , but notlimited to, statements relating to expectations of orders, net sales, product shipments, backlog, expenses, timing ofpurchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use ofwords 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 lookingstatements contain these identifying words. The financial guidance set forth under the heading “Outlook” constitutes forwardlooking statements. While these forward looking statements represent our judgments and expectations concerning thedevelopment of our business, a number of risks, uncertainties and other important factors could cause actual developmentsand results to differ materially from those contained in forward looking statements, including the discovery of weaknesses inour internal controls and procedures; our inability to maintain continued demand for our products; the impact on ourbusiness of potential disruptions to European economies from euro zone sovereign credit issues; failure of anticipatedorders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand forsemiconductors and our products and services; failure to adequately decrease costs and expenses as revenues decline,loss of significant customers, lengthening of the sales cycle, incurring additional restructuring charges in the future, acts ofterrorism and violence; inability to forecast demand and inventory levels for our products, the integrity of product pricing andprotection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, currencyfluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturingoperations; 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, 2014 and other key factorsthat could adversely affect our businesses and financial performance contained in our filings and reports, including ourstatutory consolidated statements. We are under no obligation to (and expressly disclaim any such obligation to) update oralter our forward-looking statements whether as a result of new information, future events or otherwise.
October 22, 2015 Page 3
Table of Contents
I. Key Highlights
II. Financial Review
III. Strategic Highlights
IV. Outlook
October 22, 2015 Page 4
I. KEY HIGHLIGHTS
I. KEY HIGHLIGHTS
October 22, 2015 Page 5
Key Financial Highlights
• € 72.1 million :• -30.9% vs. Q2-15• -30.3% vs. Q3-14
Revenue
• € 74.9 million :• -18.5% vs. Q2-15• -17.6% vs. Q3-14
Orders
• € 6.3 million:• -59.4% vs. Q2-15 (€ 15.5 million)• -70.7% vs. Q3-14 (€ 21.5 million)
Net Income
• Net cash of € 109.0 million• +€ 17.6 million (+19.3%) vs. Q2-15
Liquidity
Besi Reports Net Income of € 6.3 Million and € 39.3 Mi llion for Q3-15 and YTD-15, Respectively. Net Cash Position Expands to € 109.0 Million
Q3-15 YTD-15
• € 271.4 million :• -6.3% vs YTD-14
Revenue
• € 271.0 million :• -16.9% vs. YTD-14
Orders
• € 39.3 million, -23.5% vs. YTD-14 (€51.4 million)
Net Income
• Net cash +€ 22.9 million (+26.6%) vs. Q3-14
Liquidity
October 22, 2015 Page 6
Gross Margin
OPEX
Headcount
Effective Tax Rate
10.2% 13.3%
1,649 1,628
€ 23.0 MM
€ 28.7 MM
-1.3%
+3.1%
+24.8%
45.3% 48.7%
-30.3%
-12.1 points
Q3-14/Q3-15 YTD-14/YTD-15*
+3.4 points
€ 6.3
Gross Margin
OPEX
Headcount
Effective Tax Rate
10.0% 12.6%
1,649 1,628
€ 69.1 MM
€ 86.0 MM
43.8% 48.5%
-1.3%
+2.6 points
+24.5%
+4.7 points
-3.2 points
€ 39.3€ 51.4
Solid Profit and Margin Development In Industry Downturn
€ 21.5
* Includes net restructuring benefit of € 3.3 million
-6.3%
October 22, 2015 Page 7
II. FINANCIAL REVIEW
October 22, 2015 Page 8
Revenue/Order Trends
Quarterly Trends
YTD Trends
53.1
70.0
116.2
103.5
89.0 94.9
104.3
72.1
57.2
111.1
124.2
90.9 81.4
104.2
91.9
74.9
0
20
40
60
80
100
120
140
Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3-2015
(eur
o in
mill
ions
)
Revenue Orders
Q3-15 vs. Q2-15• Revenue: € 72.1 million (-30.9%)
• Lower die attach and molding systems for smart phone, tablet and mainstream electronics• Post large 2014 industry capacity build • Customer order push-outs
• Partial offset:• +TCB, +die sorting, +solar plating and
+singulation systems
• Orders: € 74.9 million (-18.5%)• Broad based reduction in smart phone and other
advanced packaging applications • Partial offset: +TCB, + die sorting + singulation • +€ 6.6 million (+13.3%) IDMs, -€ 23.6 million
(-55.8%) subcontractors
Q3-15 vs. Q3-14• Revenue: -€ 31.4 million (-30.3%)• Orders: -€ 16.0 million (-17.6%)• Similar trends
YTD-15 vs. YTD-14• Revenue: -€ 18.3 million (-6.3%)
• Lower advanced packaging, mainstream electronics and automotive
• Partial offset: +TCB, +die sorting, +T&F and +solar plating
• Orders: -€ 55.2 million (-16.9%)
October 22, 2015 Page 9
Gross Margin Trends
Quarterly Trends
YTD Trends
Q3-15 vs. Q2-15• 48.7% vs. 47.9% • Exceeded Q3 guidance (45-47%)
• Asian production and supply chain transfer plus favorable forex benefited material and labor efficiencies despite 30.9% revenue decrease
• Increase in euro vs. Besi’s principal currencies particularly MYR
Q3-15 vs. Q3-14 • 48.7% vs. 45.3%
• Asian headcount and supply chain transfer• Net forex benefits, particularly +USD/euro
YTD-15 vs. YTD-14 • 48.5% (48.2% ex-restructuring) vs. 43.8%• Increased % Asian workforce and supply chain• Forex benefits: +USD and -MYR vs. euro
* Excludes net restructuring benefit
October 22, 2015 Page 10
Forex Influence on Recent Quarterly Results
RevenueCost and Expenses
Euro 34% 28%
US dollar 65% 4%
Swiss franc - 20%
Malaysian ringgit - 40%
Other 1% 8%
Total 100% 100%
Q3-15/Q2-15 Q3-15/Q3-14 YTD 15/YTD 14
MlnEuro Margin
MlnEuro Margin
MlnEuro Margin
Revenue -1.4 +8.1 +34.8 (USD/EUR)
COGS +0.2 +0.8 +2.4 (USD/EUR)
-3.6 +2.7 +20.4(MYR/EURCHF/EUR)
-3.4 +3.5 +22.8
Gross Profit
+2.0 +2.8% +4.6 +6.4% +12.0 +4.4%
Opex -0.2 +0.9 +4.3 (CHF/EUR)
Net +2.2 +3.7 +7.7
Currency Exposure (2014) Forex Financial Impact
October 22, 2015 Page 11
Operating Expense Trends
Quarterly Trends
48.0 57.3
20.2
31.31.0
-2.6
69.1
86.0
-10
10
30
50
70
90
110
2014 2015
(eur
o in
mill
ions
)
Restructuring/Other R&D SG&A
YTD Trends
Q3-15 vs. Q2-15• -€ 3.3 million (-10.3%)
• Slightly better than Q3 guidance• -€ 2.7 million personnel
• headcount reduction• € 0.8 million lower incentive comp• € 0.2 million lower CHF vs. euro
• -€ 0.6 million lower travel and higher R&D grants
Q3-15 vs. Q3-14• +€ 5.7 million (+24.8%)
• + € 1.9 million personnel • Includes € 0.9 million higher CHF vs. euro
• + € 1.7 million of net incremental amortized R&D, mostly TCB related
• + € 0.6 million warranty
YTD-15 vs. YTD-14• +€ 16.9 million (+24.5%)
• +€ 10.4 million of higher personnel related expenses • +€ 4.3 million higher CHF vs. euro• +€ 2.7 million incentive comp
• +€ 5.6 million net R&D amortization costs
* Excludes net restructuring benefit
October 22, 2015 Page 12
Quarterly Base Line Operating Expense Trends
20.9 22.0 21.4 22.5 22.2 26.1 23.9
0.6 2.6 1.7
2.2 3.1
5.9 4.8
21.5 24.6
23.1 24.7 25.3
32.0
28.7
0
5
10
15
20
25
30
35
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15
Base Opex Other Operating Expenses Total
Baseline Opex 20.9 22.0 21.4 22.5 22.2 26.1 23.9
Other Operating Expenses
Capitalization of R&D (2.8) (2.4) (2.0) (2.1) (1.5) (1.4) (1.2)
Amortization of R&D 1.1 1.2 1.3 1.2 1.7 2.2 2.3
Capitalization & Amortization , net (1.7) (1.2) (0.7) (0.9) 0.2 0.8 1.0
Forex CHF/EUR 0.0 0.0 0.0 0.0 1.9 1.5 0.9
Restructuring cost/(benefit) 0.2 0.8 0.0 0.0 (3.0) 0.1 0.2
Variable Pay 2.1 3.0 2.4 3.1 4.0 3.5 2.7
Subtotal 0.6 2.6 1.7 2.2 3.1 5.9 4.8
Total 21.5 24.6 23.1 24.7 25.3 32.0 28.7
October 22, 2015 Page 13
Net Income Trends
Quarterly Trends
YTD Trends
• Q3-15 net income of € 6.3 million • 8.7% net margin
• -€ 9.2 million vs. Q2-15• -30.9% revenue• Slightly higher effective tax rate • Partial offset: improved gross margins
and lower operating expenses
• -€ 15.2 million vs. Q3-14• -30.3% revenue, higher opex and
slightly higher effective tax rate • Partial offset: improved gross margins
• YTD-15 net income of 39.3 million• -€ 12.1 million vs. YTD-14 • Net margin of 14.5% vs. 17.7% in
YTD-14
• Tax rate up slightly in 2015 due to absence of Q2-14 tax benefit ($700k)• 12.6% in YTD-15 vs. 10% in YTD-14
* Quarterly results show net restructuring (€ 3.3 million) and deferred tax benefits (€ 7.5 million) in Q1-15 and Q4-14, respectively, and € 2.0 million non recurring charge in Q4-13. YTD-15 results include net restructuring benefit of € 3.3 million
51.4
39.3 *
17.7%14.5%
-5%
5%
15%
25%
35%
0
10
20
30
40
50
60
2014 YTD 2015 YTD
(eur
o in
mill
ions
)
Net Income ex. NR
October 22, 2015 Page 14
Liquidity Trends
Q3-15 vs. Q2-15• Net cash +€ 17.6 million (+19.3%) to € 109.0
million
Q3-15 cash movements
Principal sources of cash• € 20.3 million cash from operations
Principal uses of cash• -€ 1.2 million capitalized R&D• -€ 1.0 million capex
Q3-15 vs. Q3-14• Net cash +€ 22.9 million (+26.6%)
• Profit plus decreased working capital requirements
• 1.0 million (3%) share buyback announced• 65.6k shares purchased to date• € 0.9 million
October 22, 2015 Page 15
III. STRATEGIC HIGHLIGHTS
October 22, 2015 Page 16
Assembly Equipment Market Trends
• VLSI recently downgraded 2015 and 2016 forecasts significantly• Growth anticipated to reaccelerate in 2017 and 2018• Besi revenue growth exceeding assembly market in 5 of past 6 years
326.9
273.7 254.9
378.8
289.8 271.4
-16.3%-6.9%
48.6%
-6.3%
-50%
0%
50%
100%
150%
-
100.0
200.0
300.0
400.0
2011 2012 2013 2014 YTD 2014 YTD 2015
(€m
illio
ns)
Besi Revenue Revenue YoY Growth Rate
4.44.0
3.1
3.9
3.33.0
3.3
3.9
-9.2%
-22.4%
28.1%
-15.0%-11.1%
11.3%18.3%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
0.0
1.0
2.0
3.0
4.0
5.0
2011 2012 2013 2014 2015F 2016F 2017F 2018F
(US
$ bi
llion
s)
Assembly Equipment Market Size YoY Growth Rate
Source: VLSI October 2015
October 22, 2015 Page 17
Key Development and Operational Objectives
Development Objectives
Advanced TCB die bonding development
Introduction of next generation packaging systems
Common parts/platform activities
Operational Objectives
Transfer of certain Swiss Die Attach software, logistics and administrative functions to Singapore
Transfer of certain die bonding production from Malaysia to China
Transfer of Plating Production from NL to Malaysia
10% fixed & temporary headcount reduction
Further reduction of European based costs
Expansion of Asian supply chain. System module outsourcing
2015 2016
October 22, 2015 Page 18
Workforce Trends
• Aggregate headcount varies with cyclicality and seasonality of business
• Aggregate headcount down 3.3% since Q2-15
• European/NA fixed headcount continues to decline• -6.0% from year end 2014
to Q3-15• Asia 63% now 741 680 624 602 597 597 566
802 799
810 908 933 967 975
64 60
24
122 150 120 87
1,6071,539
1,458
1,6321,680 1,684
1,628
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 Q1 2015 Q2 2015 Q3 2015T
emp
% o
f Tot
al
Hea
dcou
nt
Europe/NA Fixed HC Asia Fixed HC
Temporary HC Temp % of Total
October 22, 2015 Page 19
IV. OUTLOOK
October 22, 2015 Page 20
Q4-15 Guidance
Revenue Gross Margin Operating Expenses
Q3 Q4 Q3 Q4 Q3 Q4
€ 72.1 48.7% € 28.7
• Revenue within a range of +/-10% vs. Q3-15• Gross margins 46-48% range • Opex down approximately 3-5% • Assumes no material change in exchange rates from Q3-15• Net cash position continues to expand• Share repurchase program continues
Down 3-5%
48%-
46%
+10%-
-10%
October 22, 2015 Page 21
Financial Calendar
11/12-Nov-15 Morgan Stanley European TMT Conference, Barcelona
19-Nov-15 Small & Mid Cap Seminar SNS Securities, Amsterdam
25-Nov-15 Kempen Benelux Conference, London
25-Feb-16 2015 Fourth Quarter and Full Year Results