INVESTOR PRESENTATION Q RESULTS

Transcription

1 INVESTOR PRESENTATION Q RESULTS

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 constitutes 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 the discovery of weaknesses in our internal controls and procedures, our inability to maintain continued demand for our products; the impact on our business of potential disruptions to European economies from euro zone sovereign credit issues; 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, incurring additional restructuring charges in the future, acts of terrorism and violence; inability to forecast demand and inventory levels for our products, the integrity of product pricing and protect 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, 2012 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 are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise. 2

3 TABLE OF CONTENTS I. Key Highlights II. Financial Review III. Strategic Highlights IV. Outlook V. Summary 3

4 I. KEY HIGHLIGHTS 4

5 KEY FINANCIAL HIGHLIGHTS Q2 AND H1-13 Besi Reports 72.5% Net Income and 29.5% Order Increase in Q2-13 vs. Q1-13 Results Exceed Expectations Q2-13 H1-13/12 Revenue 72.4 million: +13.1% vs. Q % vs. Q2-12 Orders 82.7 million: +29.5% vs. Q % vs. Q2-12 Net Income 6.5 million in Q2-13 vs. 3.8 million in Q1-13 and 10.0 million in Q2-12 Restructuring charges of 0.6 million Liquidity Net cash million to 56.2 million vs. Q million dividends and stock repurchases Debt down 2.8 million vs. Q1-13 to 24.9 million Revenue million: -4.4% vs Orders million: -16.5% vs Net Income 10.3 million vs million in 2012 Adjusted net of 10.9 million vs million Restructuring charges of 0.8 million in H1-13 Liquidity Net cash million vs. H1-12 5

6 II. FINANCIAL REVIEW 6

7 (euro in millions) (euro in millions) REVENUE/ORDER TRENDS Quarterly Trends Revenue Orders Q2-13 vs. Q1-13 Revenue: 72.4 million (+13.1%) Higher sales for low/mid range smart phones/tablets and mainstream electronics Better than prior guidance (+10.0%) Orders: 82.7 million (+29.5%) Growth by Asian subcons for multi module and flip chip die attach and molding systems million (47.8%) subcontractors million (6.0%) IDMs 0 Q Q Q Q Q Q YTD Trends 250 Revenue Orders Q2-13 vs. Q2-12 Revenue: million (-16.8%) Lower sales of multi module die attach systems for high end smart phones Orders: million (-9.3%) H1-13 vs. H1-12 Revenue: million (-4.4%) Partial offset: higher epoxy die attach and packaging systems Revenue and orders +4.2% /45.5% vs. H2-12 7

8 Gross Margin Gross Margin GROSS MARGIN TRENDS Quarterly Trends 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% YTD Trends 50% 45% 40% 35% 30% 25% 20% 15% Revenue Gross Margin Adj. Gross Margin* 39.4% 41.5% 40.3% 37.7% 39.6% 40.4% Q Q Q Q Q Q * Excludes restructuring charges Revenue Gross Margin Adj. Gross Margin* 40.7% 40.0% Q2-13 vs. Q % vs. 39.6% Higher revenue levels Stable production overhead Partial offset: higher freight and Asian production transfer costs Within guidance (39-41%) Q2-13 vs. Q % vs. 41.5% in Q % revenue decrease Partial offset: lower European production overhead H1-13 vs. H % vs. 40.7% 4.4% revenue decrease Higher freight and Asian transfer costs Partial offset: lower European production personnel 8

9 (euro in millions) (euro in millions) OPERATING EXPENSE TRENDS Quarterly Trends SG&A R&D Restructuring Q Q Q Q Q Q Q2-13 vs. Q1-13 Opex ex restructuring: 20.3 million (-2.4%) 0.8 million lower SG&A personnel costs Lower than guidance ( 20.9 million) 0.6 million restructuring costs in Q2-13 Q2-13 vs. Q2-12 Opex ex restructuring: million (-11.6%) Lower sales/service personnel expenses YTD Trends SG&A R&D Restructuring H1-13 vs. H1-12 Opex ex restructuring: million (-3.2%) vs million sales/service Partial offset: 1.2 million warranty 0.7 million G&A (absence of 1.0 million rental benefit) 9

10 Headcount HEADCOUNT TRENDS Europe/NA Fixed HC Asia Fixed HC 1,800 1,600 1,510 1,543 1,479 1,464 1,458 Headcount trends continue to favorably influence break even revenue levels 1,400 1,200 1,000 1, % % % % % % Fixed European headcount gradually reducing as shift to Asia manufacturing progresses: Down by 1.7% sequentially Down by 12.7% year over year Declined from 56% of total in 2009 to 43% at end of Q Aggregate of 1,520 headcount at Q2-13 quarter end (including temps): Flat vs. Q1-13 Down 9.2% vs. Q % % % % % % Q Q

11 (euro in millions) LIQUIDITY TRENDS Quarterly Trends Cash Debt Q2-13 vs. Q1-13 Net cash down 8.0 million to 56.2 million Q2-13 vs. Q2-12 Net cash million Q2-13 Cash Movements Sources of Cash 7.9 million cash from operations Q Q Q Q Q Q Net Cash Uses of Cash million cash dividends million debt payments million capitalized R&D million share repurchase million capex Share Repurchase Program 0.6 million shares repurchased through Q2-13 end for 3.5 million 11

12 III. STRATEGIC HIGHLIGHTS 12

13 STRATEGIC PRIORITIES Continued Execution of Initiatives to Enhance Market Share and Profitability in Highly Volatile Market Development objectives: Expand customer base and applications for TCB die bonding equipment mm die and wafer handling development continues Die attach common parts re-engineering Further reduction of break even revenue levels Evaluating additional opportunities in global operations Die attach operations Continued Asian operational expansion Completed final production transfer of soft solder machine to Asia in Q2-13. First shipments made in July Volume production starting of epoxy die bonder in Malaysia Expansion of Asian supply chain including outsourcing of certain system modules to further drive down costs 13

14 IV. OUTLOOK 14

15 Jan 10 Mar 10 May 10 Jul 10 Sept 10 Nov 10 Jan 11 Mar 11 May 11 Jul 11 Sept 11 Nov 11 Jan 12 Mar 12 May 12 Jul 12 Sept 12 Nov 12 Jan 13 Mar 12 May 12 % Capacity Utilization 3 Month Avg Pricing ($) IC PRICING AND ASSEMBLY MARKET TRENDS Assembly Capacity Utilization & IC Pricing Book to Bill Ratio 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 2010 JAN MAY SEP 2011 JAN MAY SEP 2012 JAN MAY SEP 2013 JAN MAY Semiconductor Equipment Book to Bill Trends (3 month moving average) Assembly Equipment Total Semi Equipment Assembly Utilization IC ASP Source: VLSI Jul 2013 Source: Semi Jul 2013 High degree of industry volatility over past 3 years. Relatively short seasonal cycles driven by seasonal smart phone and tablet purchasing patterns and macro economic conditions Assembly book/bill and capacity utilization have increased since Q4-12 industry trough 15

16 Q GUIDANCE Revenue Gross Margin Operating Expenses* Capex % Flat - down 10% 41% - 39% Approx. equal 0.3 MM Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 * Excluding restructuring Q3-13 revenue approximately flat to down 10% Gross margins between 39% - 41% Opex approximately equal to 20.3 million (ex restructuring) Capex of 1.4 million 16

17 ASSEMBLY EQUIPMENT MARKET FORECAST Assembly Equipment Market Size YoY Growth Rate 6 160% % 120% % % 80% 3 60% % -6.4% -10.2% -4.7% 15.3% 8.6% 40% 20% 0% -20% E 2014E 2015E Source: VLSI July % Since 2010 rebound, assembly market has been trending lower However, 25%+ growth from 2013 levels anticipated in

18 V. SUMMARY 18

19 SUMMARY Q2-13 Results Exceeded Expectations Strong Growth in H1-13 Post Q4-12 Industry Trough Cautiously Optimistic About 2014/2015 Despite Mixed Picture Currently Strategic Initiatives Offer Upside Potential Ongoing Development of Next Generation Advanced Packaging Continue to Enhance Shareholder Value 19

20 FINANCIAL CALENDAR 13-Aug Aug Sep-13 2/3-Oct Oct-13 Roadshow ABN AMRO, Boston USA Canaccord Growth Conference, Boston USA ABN AMRO Equities Conference, Amsterdam Netherlands Paris Large & Midcap Event, Paris France Q Results 20/22-Nov-13 Morgan Stanley TMT Conference, Barcelona Spain 20