Lena Olving CEO & President
Torbjörn Wingårdh CFO
Nordea Small & Midcap Seminar 2018
Me
Mycronic in short
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>40 years of experience in
innovation
>1,100 employees
in ten countries
>50 Mycronic is represented
in more than 50 countries
>500 patents proves the power
of innovation
>12,000 production systems at more
than 3,000 customers
>98% of consolidated net sales are
outside Sweden
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”The business partner of choice, enabling the future of electronics”
Our vision
Production solutions for every day life
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Serving the electronics industry
Assembly Solutions
• Leading and innovative production solutions and aftermarket offerings for the electronics assembly industry
• Advanced mask writers indispensible for the production of the world’s displays as well as a broad aftermarket offering
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Pattern Generators
Financial goals
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5 billion Net sales including
acquisitions shall reach SEK 5 billion at the end of the business plan period, 4 to 7
years
GROWTH
>15 % EBIT margin to exceed 15
percent over a business cycle
PROFITABILITY
< 3times Net debt below 3 times the average EBITDA calculated
over three years
CAPITAL STRUCTURE
SVERIGE
Continued execution of strategic direction
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Strengthen the position as a leading supplier within existing market segment
Profitable growth within adjacent market segment
Ensure the power of innovation to increase competitiveness
Profitable growth in Asia within existing and adjacent segments
Value creation through focus on sustainability
Product development
has strengthened our position in
existing markets
Acquisitions have expanded our market within high growth segments
Drives growth under
sustainable profitability
Certification and standards
Clear roadmap since 2013
Assembly Solutions Broad product offering for efficient electronics manufacturing
• Jet printing & dispensing • Pick-and-place assembly equipment • Component storage systems • Advanced software solutions
• Camera module assembly equipment
• Ultra-high precision die bonding equipment
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• Solder Paste Inspection (SPI) • Automated Optical Inspection (AOI) • Advanced software suite (Sigma)
• Broad range of dispensing and coating systems
Cost effective electronics manufacturing
• Cost per placement • Higher productivity • Higher yield
Just-in-time production • Larger product mix and shorter series • Shorter product life cycles • Logistics and material handling
Increased complexity and miniaturization
• More components – large and small • More complex PCB:s • More functionality in less space
Assembly Solutions
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Strategy based on market drivers
Increased reliability demands • High reliability applications • Shock proof and stress reliability • Water, moisture and dust protection
Modern SMT full line solution
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Screen/jet printer Pick & place Reflow oven SPI AOI Dispenser Dispenser AOI
The SMT line
MY700 Jet Printer Solder paste and glue jetting
Π Series 3D solder paste inspection (SPI)
MY300 Pick & place for high mix applications
Κ Series 2D and 3D automated optical inspection (AOI)
MYSmart Series For any dispensing need
SMD Tower Smart storage solutions
Mycronic 4.0 software suite • Material handling and tracking • Fast change overs • SPC
Passive warning
Active safety intervention
Camera module assembly equipment
• Mycronic, through AEi which we acquired in 2016, is the market and technology leader in the Camera Module Assembly & Test (CMAT) market for the automotive sector
• Strong growth, from 130 million units in 2017 to 300 million units in 2022 (CAGR 18%), driven by ADAS (Advanced Driver Assistance Systems) and Autonomous Driving
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Sensors for ADAS applications
2014 2015 2016 2017 2018 2019 2020 2021 2022 General
information Passive warning
Active safety intervention
Active primary vehicle control
Convenience Safety Autonomous
Leading supplier for the automotive industry
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Best-in-class automated die bonding systems MRSI
• Excellent strategic match • Fast growing market • Net sales of USD 31 million (2017) • Founded 1984 and holds 60 employees • Close to the AEi and Mycronic facilities in the Boston area • Creates strong Boston hub • Combined offer from AEi and MRSI to the automotive segment • High commitment of former owners to the company
Michael Chalsen President
Michael Gagnon VP of Operations
Cyriac Devasia VP of Engineering
Presentera företaget och förvärvet ”high level” Will get more up-to-date pictures & marketing material latest Tuesday EOB.
Pattern Generators Indispensable for the display industry
• FPS series
Display Multi-purpose Value Added Products
• Prexision mask writer & metrology series • Upgrades and modifications to improve mask quality
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~160 PPI ~400 PPI ~60 PPI
Capitalizing on market transitions
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Higher and higher resolution
Larger and larger displays
Displays in new applications
Transition from LCD to AMOLED
Investments in P800/P80 & Prex-MMS Investments in P10
Investments in the Prexision series Investments in P800/P80 & Prex-MMS
• Accounts for 30% of revenue • Adds to stability in sales and profits • More than 90% of Pattern Generators customers have
service agreements • MYCare is an after market offering to Assembly
Solutions customers • Creates stickiness to the customer • Roll-out has started in acquired companies
• Digitalization of the after market business
After market adds stability
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Mycronic group:
Strong performance
Net sales 997 MSEK
EBIT margin 3%
Market Cap 1,214 MSEK
2013 Net sales
3,001 MSEK
EBIT margin 28%
Market Cap 8,323 MSEK
2017
Executing of strategic direction
Long term net sales target
Long-term goal in 4-7 years 5,000 MSEK
Outlook 2018 3,500 MSEK
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Q2: Strong order growth and robust development
• Order intake +86% in Q2 (36% YTD) o Good development within Assembly Solutions o Good performance from acquisitions o Prexision-8 replacement
• Net sales at 882 MSEK or -3% (+3% YTD) o Solid performance from Assembly Solutions o Planned deliveries YTD were 3 compared to 7 last year
• Underlying EBIT 265 MSEK with a margin of 30% o Acquisition related costs of 28 MSEK (47 MSEK YTD) o Variation between quarters of delivery volumes of mask writers o Increased investments in R&D
• Order backlog +112% to 1,935 MSEK o Assembly Solutions at record high 545 MSEK or +95% o Good base for deliveries
• MRSI: leading provider of ultra-high precision die bonding equipment
Q2: Strong momentum
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Marketplace • Continued high growth in global electronics industry expected • Strong growth in Mycronic’s market segments • Shift from LCD to AMOLED drives photomask area growth • Market update slides are available at the end of the presentation, pages 29-35
Major Q2 orders, deliveries and launches • Order for a replacement system based on Prexision-8 • Launch of FPS8100 mask writer for the multi-purpose segment • Delivery of two replacement system based on Prexision-8
Executive appointments • Charlott Samuelsson Sr VP Pattern Generators • Lena Båvegård Sr VP Operational Excellence • Anette Mullis Sr VP HR effective August 20
August: Two FPS6100 mask writers to customer in Asia
Favorable market
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Source: Prismark May/June 2018, PROTEC MDC January 2018, IHS April 2018, IHS May 2018.
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Q&A
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