Micronic Mydata Q4, 2010 Peter Uddfors, President and CEO Carl-Johan Blomberg, CFO 1 February, 2011
Agenda Brief company presentation Key figures Q4, 2010 Market information Outlook Page 2
Micronic Mydata in brief COMPANY Develops and manufactures equipment for the electronics industry through two business areas: Pattern Generators (PG) Surface Mount Technology (SMT) Strong local presence close to customers Listed on NASDAQ OMX Nordic, Stockholm, market cap as of Dec 31, 2010: SEK 1,733 million Revenues 2010: SEK 1,288 million 551 employees 55% Subsidiaries Sales and support Subsidiaries Revenue 2010 by geography Geographical presence 25% Sales and support 31% Revenue 2010 by product area 21% 20% 18% 30% Page 3
Micronic Mydata a high-tech growth company with sustainable profitability COMPANY Business concept Micronic Mydata will operate as a global high-tech growth company with sustainable profitability by utilizing the full potential of present and future product offerings markets SMT equipment We will continue to develop our leading position in the high-mix market for SMT products by enhancing our product portfolio and by growing into new markets We will optimize customer value by further developing aftermarket products Pattern generators We will maintain our strong position in the mask writer market by providing production solutions for current and future needs We will capture a leading position within the exposure equipment market by enabling our customers to take a lead in the electronic packaging market We will optimize customer value by further developing aftermarket products Page 4
Micronic Mydata products and services COMPANY Pattern generators SMT equipment Mask writer Direct writer Jet Printing Pick and Place Prexision LDI MY100 MY500 Sigma7700 Services SMD Tower FPS5300 Services Software Page 5
Significant events Q4, 2010 COMPANY Micronic Mydata shipped three mask writers Micronic Mydata shipped the first LDI tool Continued strong order intake and sales of SMT equipment Page 6
Order intake, SEK million FINANCIAL Q4 order intake MSEK 306 FY 2010 order intake MSEK 1 388 1500 1300 1100 SMT MSEK 231 PG MSEK 74 900 700 500 300 100-100 Page 7 FY 2006 FY 2007 FY 2008 FY 2009 PF FY 2010 Q1 Q2 Q3 Q4 Pattern generators only
Net sales, SEK million FINANCIAL Q4 sales MSEK 552 1400 1200 1000 800 FY 2010 sales MSEK 1 288 PG MSEK 328 SMT MSEK 224 600 400 200 0 Page 8 FY 2006 FY 2007 FY 2008 FY 2009 PF FY 2010 Q1 Q2 Q3 Q4 Pattern generators only
Order backlog, SEK million FINANCIAL 500 400 300 200 100 SMT MSEK 132 0 Q1 2009 PF Q2 2009 PF Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 PG MSEK 21 Order backlog Q4 2010 amount to MSEK 153 Page 9
Gross margin, 12 months rolling FINANCIAL 60% Q4 2010 gross margin at 54% FY 2010 gross margin at 49% 50% 40% 30% 20% 10% 0% Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Page 10
R&D, SEK million FINANCIAL Q4 2010 R&D spending of MSEK 79.5 Q4 2010 capitalized development at MSEK 0.5 in SMT Q4 2010 amortization of capitalized development at MSEK 13, whereof MSEK 7 in PG MSEK 100 90 80 70 60 50 40 30 20 10 0 Q1 2009 PF Q2 2009 PF Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 SMT MSEK 22 reported cost PG MSEK 70 reported cost, whereof LDI MSEK 47 Page 11 R&D spending Reported cost
Profit and loss, SEK million FINANCIAL Q4 2010 Q4 2009 FY 2010 FY 2009 PF Sales 552 230 1 288 1 052 Gross profit 298 49 633 421 R&D expenditure -80-69 -247-226 R&D, Net cap. -13-19 -71-77 SG&A -76-72 -239-250 Other income/expenses -5-40 -4-47 EBIT 124-152 73-179 Non-recurring items in gross profit - -12 - -12 in other income/expenses -5-42 -5-42 Total -5-54 -5-54 Page 12
Balance sheet items, SEK million FINANCIAL December 31, 2010 December 31, 2009 Fixed assets 403 473 - Whereof intangible assets 186 252 Inventories 321 341 Accounts receivables 249 165 Cash 583 277 Total assets 1 714 1 408 Equity 1 315 1 047 Advance payments from customers 22 9 Interest bearing liabilities 12 19 Equity/total assets 77% 74% Page 13
Cash flow statements, SEK million FINANCIAL Page 14 Q4 2010 FY 2010 FY 2009 Cash flow from operations 154 164-14 Change in working capital -101-43 96 Cash flow from operations after changes in working capital 53 121 82 Investments in development 0-3 -1 Other investments, net -10-33 -6 Investments in subsidiaries 0 0 6 Cash flow before financing activities 43 85 81 Financing 7 223-173 Cash flow 50 308-92 Cash at end of period* 583 583 277 * Including effect of exchange rate variances on cash 2010 YTD investments in Täby facility and new ERP-system amount to MSEK 24
Profit and loss by segment, SEK million FINANCIAL Q4 2010 Q4 2009 FY 2010 FY 2009 PF Net Sales Pattern generators 328 76 673 579 SMT equipment 224 154 615 473 Group net sales 552 230 1 288 1 052 Gross margin Pattern generators 61% -3% 56% 45% SMT equipment 44% 33% 42% 33% EBIT Pattern generators 95-125 22-99 SMT equipment 31-25 56-73 Amortization excess value in inventories - - - - Amortization excess value in order backlog - - - - Amortization excess value in intangible assets -2-2 -6-6 Group EBIT 124-152 73-179 Whereof items affecting comparability Pattern generators -3-19 -3-19 SMT equipment -2-34 -2-35 Page 15
Panel and mask prices stabilizing Display industry: MASK WRITER MARKET Total display revenue expected at 115 billion USD in 2010 and 121 billion USD in 2011 Panel price pressure softening LG and Samsung expected to receive approval for production lines in China - no firm schedule Mask industry: 110,0% Panel price development Mask prices stabilizing - declines in 2010 limited Mask writers running with high utilization ratio Price compared to 10-06-21 100,0% 90,0% 80,0% 20" monitor 15.6" Notebook 40" LED TV 2" Mobile 70,0% 60,0% 2010-09-20 2010-10-04 2010-10-18 2010-11-01 2010-11-15 2010-11-29 2010-12-13 2010-12-27 Date Page 16 Source: DisplaySearch, Jan 2011
Display equipment spending returning to normal 16 MASK WRITER MARKET 14 12 10 13,3 10,5 12,6 13,8 13,1 11 9,6 12,3 9,7 $US Billions 8 6 5,2 6,3 8,1 7,0 4 3,8 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2010 on par with previous record years Spending expected to stay on a relatively high level Chinese investments expected to account for around 50% in 2011-2012 G11 spending delayed by one year - starting 2013 Page 17 Source: DisplaySearch, Jan 2011
Semiconductor market strong MASK WRITER MARKET Global semiconductor sales 3-month moving average Semiconductor market up 33% in 2010 to 301 billion USD and expected to grow by moderate ~5% in 2011 Capex increased by 96% to 47 billion USD in 2010, and expected to stabilize at 45 billion USD in 2011 Page 18 Source: Prismark Partners, Jan 2011 VLSI Research, Jan 2011
Mask writer summary Panel prices stabilized during the quarter Mask prices stabilizing and volumes expected to grow Semicon equipment market expected to remain on 2010 level during coming years Some mask makers in need of additional capacity MASK WRITER MARKET Effects on Micronic Mydata Display: Gradual investments in new mask making equipment expected Semicon: Mask makers investing in additional capacity main portion invested in E-beam writers Page 19
SMT market semiconductor revenues SMT MARKET Global semiconductor sales 3-month moving average Semiconductor market, up 33 % in 2010, a good indicator for how the SMT market will develop Indicates demand for SMT equipment will continue to be strong Page 20 Source: Prismark Partners, January 2011
SMT market - assembly equipment Assembly Equipment PnP - Sales by Region SMT MARKET 1 200 1 000 800 600 400 Asia oth China Europe Americas Japan 200 0 2006-Q1 2006-Q2 2006-Q3 2006-Q4 2007-Q1 2007-Q2 2007-Q3 2007-Q4 2008-Q1 2008-Q2 2008-Q3 2008-Q4 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 Sales by Region [MUSD/Q] SMT assembly market has recovered in Asia, exceeding 2008 levels. America and Europe is still below pre-crisis level, but recovering and a strong Q4. Page 21 Source: PROTEC MDC, January 2011
SMT market - summary SMT MARKET Market data indicates a full recovery exceeding 2008 levels Positive trend in Europe and Americas during 2010, but slower recovery compared to Asia. The semiconductor outlook indicates a stable market, but likely a slowdown in growth for the SMT industry in 2011. Effects on Micronic Mydata Increasing demand for high-end SMT equipment and line solutions Expected growth of systems sales, as well as for accessories, spares and services Page 22 Source: PROTEC MDC October 2010, Prismark Partners January 2011
This is advanced electronic packaging The industry is driven by shorter product life cycles, better performance, smaller form factors, longer battery time and the need for lower production costs MARKET ELECTR PACK MARKET Advanced electronic packaging is used to connect the chip to the Printed Circuit Board (PCB) The substrate is a micro-pcb used as a step between the chip and the PCB to enhance miniaturization Page 23
Traditional lithography vs LDI ELECTR PACK MARKET Page 24
Electronic packaging market drivers ELECTR PACK MARKET Micronic Mydata has a leading position in the photomask market for electronic packaging The exposure systems market for packaging substrates is estimated to be between USD 100 and 150 million The market for substrates is expected to grow by 11% annually over the next few years Current installed base is estimated to be in excess of 500 systems Key drivers Shorter product life cycles Profitability Quality Miniaturization Technology trends Shrinking component size Power consumption PIN count Effects on Micronic Mydata New growth market directly connected to semiconductor production volume Need for novel production equipment Opportunity to leverage on core technology and production know-how Page 25 Source: JMS, 2010, IC Insight & Company information
LDI product - summary ELECTR PACK MARKET First system shipped in Q4, 2010, to be evaluated for production The technically challenging LDI program continues to make progress Additional system deliveries expected starting in 2012 Continued intense co-operation with leading partners Page 26
Micronic Mydata future outlook Sales in 2010 amounted to. SEK 1,288 million. The Board s assessment for 2011 is that sales will exceed 2010 somewhat. Page 27