Slides
Page 1
First quarter 2025
Page 2
President and CEO Anders Lindqvist 2
Page 3
Agenda • Q1 in short • Divisional development • Financials • Sustainability • Q&A • Appendix – Market update 3
Page 4
Q1 in short Stellar first quarter • Order intake increased 25% to SEK 2,058 (1,645) million • Record net sales, increasing 27% to SEK 2,142 (1,692) million • Strongest EBIT ever, at SEK 775 (599) million • EBIT margin at 36 (35)% • Order backlog at SEK 4,617 (4,102) million • Global Technologies acquired Hprobe, which has developed a unique technology for high-speed magnetic testing of Magnetoresistive Random Access Memories (MRAMs) and magnetic sensors • Hprobe forms a new business line within the Global Technologies division, called Magnetic Test • After the quarter, Global Technologies acquired RoBAT, which has developed a technology for rapid and reliable testing of signal quality on PCBs • RoBAT will become part of the PCB Test business line 4
Page 5
Pattern Generators Record net sales and EBIT • Photomask markets for both displays and semiconductors were stable • In January, the first order for a Prexision 8000 Evo was received • The order confirms that the launch was well in line with industry needs for more advanced photomasks • Very strong order intake, increasing 48% to SEK 956 (645) million • Record net sales, increasing 43% to SEK 1,197 (838) million • Gross margin at 76 (76)% • EBIT at record SEK 752 (543) million • Order backlog at SEK 3,092 (2,876) million • 27 systems in order backlog 5 Net sales SEK 1,197 M EBIT SEK 752 M EBIT margin 63% Share of Group’s net sales 56% Order intake SEK 956 M
Page 6
High Flex Very weak demand in Europe • Demand in Europe, High Flex’s largest geographical market, was very weak • High Flex took part in North America’s largest electronics manufacturing fair, APEX, where there was great interest in the division’s products • Order intake declined 12% to SEK 295 (334) million • The new tariffs in the US have led to delays in deliveries and had a negative impact on net sales of around SEK 15 million • Net sales declined 1% to SEK 292 (296) million • Gross margin at 37 (36)% • EBIT declined to SEK -13 (1) million • Order backlog at SEK 105 (158) million Net sales SEK 292 M EBIT SEK -13 M EBIT margin -5% Share of Group’s net sales 14% Order intake SEK 295 M 6
Page 7
High Volume Strong demand in China • High Volume had good demand in the Chinese domestic market • Order intake rose 42% to a record SEK 553 (390) million • Net sales increased 6% to SEK 330 (311) million • Modus contributed SEK 9 million • Gross margin at 43 (41)% • EBIT at SEK 59 (55) million • Modus had an impact on EBIT of SEK -4 million, which corresponds to Modus’ acquisition-related costs of SEK 4 million • Order backlog at SEK 975 (741) million 7 Net sales SEK 330 M EBIT SEK 59 M EBIT margin 18% Share of Group’s net sales 15% Order intake SEK 553 M
Page 8
Global Technologies Acquisition of Hprobe • The Die Bonding business line noted a slowdown in order intake during the quarter, while the market for the PCB Test business line continued to be strong • Acquisition of Hprobe, which has developed a unique technology for high-speed magnetic testing of MRAMs and magnetic sensors • Order intake decreased 8% to SEK 254 (277) million • Net sales increased 31% to SEK 323 (247) million • Gross margin increased to 46 (42)% • EBIT increased to SEK 54 (30) million • Acquired companies (Vanguard and Hprobe) had an impact on EBIT of SEK -18 million • Order backlog at SEK 445 (327) million • After the end of the period, RoBAT was acquired, a company that has developed a technology for rapid and reliable testing of signal quality on PCBs Net sales SEK 323 M EBIT SEK 54 M EBIT margin 17% Share of Group’s net sales 15% Order intake SEK 254 M 8
Page 9
Outlook 2025 revised, due to increased uncertainty Net sales SEK 7.0-7.5 billion 9
Page 10
Effects from tariffs • Around 5% of Mycronic’s net sales are impacted by the high tariffs between the US and China • Around 5 to 10% of net sales are impacted by US base tariffs • Mycronic does not intend to bear the cost of the tariffs • Mycronic is furthermore indirectly affected by tariffs, though it is currently difficult to gain an overview of the cumulative future effects 10
Page 11
CFO and Sr VP Corporate Development Pierre Brorsson 11
Page 12
Group net sales and EBIT margin per quarter MSEK • Net sales increased 27% vs Q1 2024, to the new record level of SEK 2,142 million • Highest ever aftermarket revenue, at SEK 531 million • EBIT margin at 36% 12 0 5 10 15 20 25 30 35 40 0 500 1000 1500 2000 2500 Q2 2023 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Aftermarket System EBIT margin %
Page 13
Group net sales and EBIT margin rolling 12 months MSEK • Net sales R12 amounted to SEK 7,507 million • EBIT margin R12 at 29% • Aftermarket revenue R12 at SEK 1,869 million • 25% of net sales • Increasing quarter-on-quarter since Q1 2021 13 0 5 10 15 20 25 30 35 40 45 50 0 1000 2000 3000 4000 5000 6000 7000 8000 Q2 2023 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Aftermarket System EBIT margin %
Page 14
14 Group Q1 EBIT bridge MSEK 599 775 261 75 EBIT Q1 2024 Volume effect Gross margin effect -52 R&D -41 M&S -21 G&A -46 Other EBIT Q1 2025 +29% % of Sales 2025 % of Sales 2024 35% 58% -10% -8% -5% 1% 36%61% -10% -8% -5% -1%
Page 15
Divisional Q1 EBIT contribution MSEK 599 209 -15 4 24 -46 775 Q1 2024 Pattern Generators High Flex High Volume Global Technologies Group functions Q1 2025 36% 35% 15
Page 16
Lower cash flow due to working capital increase • Strong cash flow from operations • Increase in working capital primarily driven by lower advance payments from customers and higher inventory • Acquisition of Hprobe accounted for SEK -134 million • Relatively large effect from exchange differences on cash at end of period 16 MSEK Q1 2025 Q1 2024 Cash flow from operations before change in working capital 686 610 Change in working capital -444 127 Cash flow from operations 241 737 Investing activities -166 -49 Financing activities -28 -26 Cash flow for the period 47 662 Cash, opening balance 3,014 2,140 Exchange differences -72 40 Cash at end of period 2,990 2,841
Page 17
President and CEO Anders Lindqvist 17
Page 18
Sustainability • An initiative was launched during the quarter to strengthen efforts to ensure good environmental and social conditions in the supply chain • Mycronic also completed its Sustainability Report for 2024, which broadly follows the CSRD’s ESRS reporting standards • To optimize and align sustainability reporting with the company’s strategy, Mycronic will review reporting and related processes in 2025 18
Page 19
Q&A 19
Page 20
APPENDIX Q1 2025 Market update
Page 21
Preliminary outcome 2024 Market summary and updates • Global electronics industry 4.9% to 2,549 BnUSD1) • Semiconductors 19.2% to 628 BnUSD1) • Optical components -7.8% to 11.7 BnUSD3) • Printed circuit boards and substrates 5.8% to 73.6 BnUSD4 • Display market 13.0% to 134 BnUSD5) • Display photomasks 2.0% to 985 MUSD6) • Semiconductor photomasks 15.0% to 9.0 BnUSD7) • SMT assembly equipment -7.7% to 2,077 MUSD2) • Dispensing equipment: 2.7% to 750 MUSD8) 21 Source: 1) Prismark March 2025, 2) PROTEC MDC January 2025, 3）Lightcounting April 2024, 4) Prismark, March 2025, 5) Omdia Jan 2025, 6) Omdia June 2024 (annual update), 141 YEN/USD used as conversion rate, 7) TechInsights Jan 2025 , 8) Prismark April 2025 (annual update)
Page 22
Forecasts 2025 Market summary and updates • Note that all forecasts on the following pages were made before the tariff announcements • Global electronics industry 7.4% to reach 2,738 BnUSD1) • Semiconductor industry 13.3% to reach 712 BnUSD1) • Optical components 24.1% to reach 14.5 BnUSD2) • Printed circuit boards and substrates 6.8%to reach 78.6 BnUSD3) • Displays 6.1% to 142 BnUSD4) • Display photomasks 2.0% to 1,005 MUSD5,6) • Semiconductor photomasks 15.8% to 10.4 BnUSD7) • SMT assembly equipment: not available • Dispensing: not available 22 Source: 1) Prismark March 2025, 2) Lightcounting April 2024, 3) Prismark, March 2025, 4) Omdia Jan 2025, 5) Omdia FPD large-area photomask research June 2024. Information is not an endorsement of Mycronic. Any reliance on these results is at the third party's own risk, 6) 141 YEN per USD used for conversion from JPY to USD, 7) TechInsights Jan 2025
Page 23
Electronics industry systems Yearly development by industry segment USD billion 23 0 500 1 000 1 500 2 000 2 500 3 000 3 500 2018 2019 2020 2021 2022 2023 2024 2025F 2029F Computers Communication Consumer Automotive Industrial Medical Aerospace / Defense • Growth of 4.9% for 2024, to reach 2,549 BnUSD, with strongest development in • Computers 16.7% • Aerospace/Defense 7.0% • Medical 4.4% • Growth of 7.4% forecast for 2025, to reach 2,738 BnUSD, with strongest development in • Computers 18.0% • Aerospace/Defense 6.0% • Industrial 5.2% • Medical 4.7% • 5.5% CAGR expected for 2024-2029, with strongest development in • Computers 7.4% • Aerospace/Defense 6.0% • Industrial 5.8% • Automotive 5.2% Source: Prismark, March 2025
Page 24
Semiconductors Quarterly development USD billion 24 0 25 50 75 100 125 150 175 200 225 250 2020 2021 2022 2023 2024 2025F 2026F 2027F 2028F 2029F • Estimated 19.2% growth in 2024 to reach 628 BnUSD • Forecast 13.3% growth in 2025 to reach 712 BnUSD • 2024 to 2029 CAGR growth forecast at 7.7% to reach 908 BnUSD Source: Prismark, March 2025 Actual Forecast
Page 25
SMT and Dispensing Market update SMT assembly equipment* • In 2023, the market size was 2,250 MUSD1) • The SMT assembly equipment market declined by 7.7% in 2024 to USD 2,077 million. Markets in China and Southeast Asia showed growth while markets in North and South America, Japan and Europe displayed a negative trend2) Dispensing* • 2024 market estimated at 750 MUSD3) • Mycronic is the number one supplier of dispensing equipment for the electronics industry, addressing the major part of the total market 25 Source: 1) PROTEC MDC January 2024, 2) PROTEC MDC January 2025, 3) Prismark April 2025 (annual update) * No forecast available
Page 26
Optical components for data/telecom Long-term growth in key die bonding market driven by mega trends 26 Healthy data/telecom long-term growth • Optical components production is the main driver for die/lens attach and other adjacent processes • Growth driven by mega trends such as high- performance data centers, AI, 5G/6G, EV, IoT, and global supply chain shifting • 2023 data/telecom market is in inventory correction due to over-building during covid. The market is expected to recover in H2 2024 and then assume high growth again to support continuous growth of data demand, particularly driven by recent AI developments Optical components for data/telecom (BUSD) Source: Lightcounting, April 2024 2021 2022 2023 2024F 2025F 2026F 2027F 2028F 2029F 11.9 12.7 11.7 14.5 17.2 20.7 23.4 25.3 26.813.0%
Page 27
Pattern Generators Display panel market 27 Source: Omdia, Display Long-Term Demand Forecast Tracker, Jan 2025. Information is not an endorsement of Mycronic. Any reliance on these results is at the third party's own risk. 0 50 100 150 200 250 BUSD 2023 2024 2025F 2026F 2027F 2028F 2029F 118 134 142 146 150 155 155 3.0% 0 20 40 60 80 100 BUSD 2023 2024 2025F 2026F 2027F 2028F 2029F 43 53 57 59 64 69 70 5.5% Display panel revenue OLED display panel revenue • Display market showed positive growth of 13.0% in 2024, primarily driven by growing markets for automotive, TV and mobile displays • For 2025, growth of 6.1% is expected • Same product categories as in 2024 are expected to drive the growth • After 2025, stable moderate growth is expected • The OLED market showed strong growth of 24.5% during 2024, mainly relating to a larger share of OLED screens for mobile, IT and automotive displays • The long-term trend toward a larger share of advanced OLED displays is forecast to continue • New OLED technologies and applications for larger displays such as TV and IT displays are the primary growth driver going forward
Page 28
Pattern Generators Photomask market expected to have continued to develop positively in 2024 28 Source: Omdia, Technology Group, FPD large-area photomask research, June 2024 Information is not an endorsement of Mycronic. Any reliance on these results is at the third party's own risk. 0 5 10 15 20 25 30 Thousands of square meters 2023 2024 2025F 2026F 2027F 2028F 2.4% 0 50 100 150 200 Billion Japanese Yen 2023 2024 2025F 2026F 2027F 2028F 2.0% Mask AreaMask Revenue • Long-term area growth forecast remains positive • Photomask area expected to have grown 2.7% in 2024 • For 2025, the market is forecast to grow 2.1% • Growth 2024-2028 is forecast at 2.4% CAGR. Strongest growth in segments of complex and high value photomasks • The market continued to grow in 2024 after a stable 2023, showing growth of 2.0% • The good market conditions were driven by more new development and transition to more advanced and high value photomasks • The market is forecast to continue to show growth also in 2025 of 2.0% and the long-term growth trend is also positive, with 2.0% CAGR 2024-2028
Page 29
Pattern Generators Increasing photomask demand for OLED displays - 2024 expected to be another positive year • OLED development for mobile, IT and TV displays drives demand for OLED photomasks • 2024 area growth of photomasks for OLED displays expected to be 3.3% • In 2024, around 35% of the total photomask area was for OLED • The transition to OLED will continue, but at a slower pace, since OLED has come to represent a significant share of the total photomask area • Photomasks for OLED are typically more complex than for LCD • More complex circuit design in each pixel • Requires higher image quality and tighter specs • Expected to drive need for advanced mask writer capacity 29 0 1 2 3 4 5 6 7 8 9 Thousands of square meters 2023 2024 2025F 2026F 2027F 2028F 3.2% Mask Area OLED Source: Omdia, Technology Group, FPD large-area photomask research, June 2024. Information is not an endorsement of Mycronic. Any reliance on these results is at the third party's own risk.
Page 30
30