Mycronic

Interim / Quarterly Report • Jul 12, 2024

Interim Report January–June 2024

Second quarter

• Order intake amounted to SEK 2,125 (1,748) million, an increase of 22 percent
• Net sales increased 23 percent to SEK 1,527 (1,245) million. Also based on constant exchange rates, net sales increased 23 percent
• EBIT amounted to SEK 348 (170) million and the EBIT margin was 23 (14) percent
• Earnings per share were SEK 2.94 (1.37)

January–June

• Order intake amounted to SEK 3,770 (3,365) million, an increase of 12 percent
• Net sales increased 31 percent to SEK 3,219 (2,464) million. Based on constant exchange rates, net sales increased 32 percent
• EBIT amounted to SEK 947 (352) million and the EBIT margin was 29 (14) percent
• Earnings per share were SEK 7.94 (2.90)

"Order intake increased 22 percent during the second quarter, driven mainly by Pattern Generators and with positive contributions from High Flex and High Volume. Net sales also posted a strong trend, with an increase of 23 percent. EBIT more than doubled to SEK 348 million, corresponding to an EBIT margin of 23 percent," says Anders Lindqvist, President and CEO.

Outlook 2024

The Board of Directors adjusts its opinion regarding net sales for 2024, from being at a level of SEK 6.25 billion to being at a level of SEK 6.5 billion.

		Q2		Jan-Jun		Jan-Dec
Group summary	2024	2023	2024	2023	12 month	2023
Order intake, SEK million	2,125	1,748	3,770	3,365	6,685	6,280
Net Sales, SEK million	1,527	1,245	3,219	2,464	6,461	5,706
Book-to-bill	1.4	1.4	1.2	1.4	1.0	1.1
Order backlog, SEK million	4,700	4,475	4,700	4,475	4,700	4,149
Gross margin, %	51.3%	48.1%	54.6%	47.4%	53.3%	50.0%
EBIT, SEK million	348	170	947	352	1,830	1,235
EBIT margin, %	22.8%	13.7%	29.4%	14.3%	28.3%	21.6%
Earnings per share before dilution, SEK	2.94	1.37	7.94	2.90	15.27	10.22
Earnings per share after dilution, SEK	2.94	1.37	7.94	2.90	15.27	10.22
Cash Flow, SEK million	-293	40	369	357	977	966
Changes in Net Sales
Total growth, %	23%	-2%	31%	2%	25%	11%
Organic growth, %	23%	-7%	32%	-3%	25%	8%
Growth from acquisitions/divestments, %	0%	0%	0%	0%	0%	0%
Currency effects, %	0%	5%	-1%	6%	0%	4%

CEO comments

Order intake increased 22 percent during the second quarter, driven mainly by Pattern Generators and with positive contributions from High Flex and High Volume. Net sales also posted a strong trend, with an increase of 23 percent. EBIT more than doubled to

SEK 348 million, corresponding to an EBIT margin of 23 percent.

In Pattern Generators, the photomask markets for both displays and semiconductors were positive during the second quarter. Prexision 8000 Evo, our most advanced mask writer for displays to date, and MMX, our first metrology system for photomasks for semiconductors, were launched at the beginning of April. Both were well received by the market and we won our first MMX order already in May. During the quarter, the division received orders for eight systems: one Prexision 80 Evo, one Prexision 8 Evo, one Prexision Lite 8 Evo, four SLXs and one MMX.

The High Flex market for production equipment strengthened slightly compared with the preceding quarter, but can still be considered as cautious. Demand in Europe was good, whereas the US was characterized by uncertainty ahead of the autumn election.

High Volume's Chinese domestic market for consumer electronics noted healthy demand during the second quarter while orders from the electric vehicle industry outside China were slow.

In Global Technologies, the PCB test business line reported healthy demand for its products, driven by printed circuit boards used in advanced servers for training AI models, as

well as investments in South-East Asia as part of a supply chain diversification. In parallel, demand in die bonding slowed. The integration of Vanguard Automation, which was acquired at the beginning of the second quarter and forms a new business line within the division, progressed according to plan.

In May, the Science Based Target initiative (SBTi) approved Mycronic's two proposed new climate targets, which will now replace our previously communicated climate target. The reason for the change is to include most of Mycronic's climate impact in our sustainability targets and to ensure that this is in line with the aim of the Paris Agreement to limit global warming to 1.5°C. We undertake to reduce absolute greenhouse gas emissions in Scope 1 and 2 by 56 percent by 2030, with 2022 as base year. We also commit to reduce indirect greenhouse gas emissions from the use of sold products during the same period. The emissions from sold products, included in Scope 3, represent the absolute majority of our emissions. Our target is to reduce these by 52 percent in relation to our gross profit, with 2022 as the base year. This approval represents a milestone for us and I am pleased that we now have a solid foundation for our efforts to reduce greenhouse gas emissions in line with the Paris Agreement.

Anders Lindqvist, President and CEO

Order intake and net sales, rolling 12 months Gross and EBIT margin, rolling 12 months

Interim Report January–June 2024 2 (21)

Financial performance

GROUP

	Q2		Jan-Jun		Rolling	Jan-Dec
	2024	2023	2024	2023	12 month	2023
Order intake, SEK million	2,125	1,748	3,770	3,365	6,685	6,280
Order backlog, SEK million	4,700	4,475	4,700	4,475	4,700	4,149
Net Sales, SEK million	1,527	1,245	3,219	2,464	6,461	5,706
Gross profit, SEK million	783	599	1,757	1,169	3,443	2,855
Gross margin, %	51.3%	48.1%	54.6%	47.4%	53.3%	50.0%
EBIT, SEK million	348	170	947	352	1,830	1,235
EBIT margin, %	22.8%	13.7%	29.4%	14.3%	28.3%	21.6%
EBITDA, SEK million	415	237	1,075	484	2,091	1,499

Order intake increased 22 percent to SEK 2,125 (1,748) million during the second quarter, driven mainly by Pattern Generators and with positive contributions from High Flex and High Volume. For the first six months, order intake increased 12 percent to SEK 3,770 (3,365) million. The Group's order backlog at the end of the quarter was SEK 4,700 (4,475) million.

Net sales increased 23 percent to SEK 1,527 (1,245) million, driven mainly by Pattern Generators, but also with a positive contribution from High Volume. Net sales for the first six months of the year increased 31 percent to SEK 3,219 (2,464) million. Net sales were positively impacted by currency effects of SEK 1 million for the quarter and negatively impacted by SEK 33 million for the first six months.

The gross margin increased to 51 (48) percent during the quarter, driven mainly by a positive gross margin performance in Pattern Generators and a more favorable division mix, with Pattern Generators representing a larger share of the Group's net sales. The gross margin for the first six months of the year rose to 55 (47) percent.

EBIT increased to SEK 348 (170) million during the quarter, corresponding to an EBIT margin of 23 (14) percent. EBIT for the first six months of the year amounted to SEK 947 (352) million, corresponding to an EBIT margin of 29 (14) percent. Acquisition-related costs amounted to SEK 23 (16) million for the quarter and to SEK 35 (33) million for the first six months.

Cash flow and financial position

Consolidated cash and cash equivalents at the end of June amounted to SEK 2,535 (1,632) million. Cash flow for the first six months amounted to SEK 369 (357) million. Cash

flow from operating activities amounted to SEK 1,119 (834) million. Working capital decreased during the first six months of the year and contributed SEK 115 (426) million in positive cash flow, primarily driven by lower trade receivables and increased trade payables.

Investing activities generated a cash flow of SEK -262 (-86) million during the first six months, where the acquisition of Vanguard Automation accounted for SEK -159 million, investments in property, plant and equipment for SEK -68 (-54) million and capitalization of product development for SEK -36 (-29) million. Financing activities generated a cash flow of SEK -488 (-391) million, of which SEK -441 (-343) million was related to dividends to shareholders. At the end of June, Mycronic had a strong net cash position of SEK 2,322 (1,395) million.

Sustainability

During the second quarter, the Science Based Target initiative (SBTi) approved Mycronic's two proposed new climate targets. The company's targets and agenda to reduce the Group's climate impact is thereby in line with the aim of the Paris Agreement to limit global warming to 1.5°C. Mycronic undertakes to reduce absolute greenhouse gas emissions in Scope 1 and 2 by 56 percent by 2030, with 2022 as base year. Mycronic also commits to reduce indirect greenhouse gas emissions from the use of sold products during the same period. The emissions from sold products, included in Scope 3, represent the absolute majority of Mycronic's emissions. The target is to reduce these by 52 percent in relation to the Group's gross profit, with 2022 as the base year.

Interim Report January–June 2024 3 (21)

PATTERN GENERATORS

	Q2		Jan-Jun		Rolling	Jan-Dec
	2024	2023	2024	2023	12 month	2023
Order intake, SEK million	1,199	804	1,844	1,620	2,918	2,694
Order backlog, SEK million	3,424	3,307	3,424	3,307	3,424	3,068
Net Sales, SEK million	650	442	1,488	794	2,800	2,106
Gross profit, SEK million	438	283	1,073	503	1,959	1,389
Gross margin, %	67.3%	64.0%	72.1%	63.4%	70.0%	66.0%
EBIT, SEK million	342	191	886	340	1,598	1,053
EBIT margin, %	52.6%	43.3%	59.5%	42.9%	57.1%	50.0%
EBITDA	357	206	914	368	1,656	1,110
R&D expenditures, SEK million	-75	-65	-144	-121	-278	-255
R&D costs, SEK million	-65	-56	-129	-106	-251	-228

The photomask markets for both displays and semiconductors were positive during the second quarter. Prexision 8000 Evo, Pattern Generator's most advanced mask writer for displays to date, and MMX, the division's first metrology system for photomasks for semiconductors, were launched at the beginning of April. Both were well received by the market and Pattern Generators won its first MMX order already in May. The delivery of the MMX has been moved from the third to the fourth quarter of 2024.

During the quarter, the division received orders for eight systems: one Prexision 80 Evo, one Prexision 8 Evo, one Prexision Lite 8 Evo, four SLXs and one MMX. Order intake was very strong and increased 49 percent from an already strong second quarter last year, to SEK 1,199 (804) million. For the first six months of the year, order intake increased 14 percent to SEK 1,844 (1,620) million.

At the end of the quarter, the order backlog amounted to SEK 3,424 (3,307) million and contained 30 systems with planned deliveries as follows:

2024 Q3: 2 Prexision 8 Evo, 3 SLXs

2024 Q4: 1 Prexision 8 Entry Evo, 4 SLXs, 1 MMX

2025 Q1: 3 Prexision 8 Evo, 1 Prexision Lite 8 Evo,

1 FPS10 Evo, 4 SLXs

2025 Q2: 1 Prexision 8 Evo, 1 Prexision Lite 8 Evo, 2 SLXs 2025 Q3: 1 Prexision 80 Evo, 1 Prexision Lite 8 Evo, 1 SLX

2025 Q4: 1 Prexision Lite 8 Evo, 1 SLX

2026 Q1: 1 Prexision 8 Evo

Compared to the delivery schedule presented in the latest quarterly report, delivery of one SLX has been moved from the third to the second quarter of 2025.

During the quarter, Pattern Generators delivered one Prexision 8 Evo, one Prexision MMS and three SLXs, compared with five SLXs during the corresponding period of the preceding year. Net sales increased 47 percent to SEK 650 (442) million. For the first six months, net sales increased 87 percent to SEK 1,488 (794) million. Net sales for the second quarter were positively impacted by currency effects of SEK 1 million and the first six months negatively by SEK 19 million.

The gross margin for the quarter increased to 67 (64) percent and to 72 (63) percent for the first six months.

EBIT increased to SEK 342 (191) million, corresponding to an EBIT margin of 53 (43) percent. For the first six months, EBIT increased to SEK 886 (340) million, corresponding to an EBIT margin of 60 (43) percent.

R&D costs for the quarter amounted to SEK 65 (56) million and SEK 129 (106) million for the first six months. The capitalization of development costs amounted to SEK 10 (8) million for the quarter and SEK 16 (15) million for the first six months.

HIGH FLEX

	Q2		Jan-Jun		Rolling	Jan-Dec
	2024	2023*	2024	2023*	12 month*	2023*
Order intake, SEK million	362	349	696	735	1,462	1,501
Order backlog, SEK million	167	209	167	209	167	120
Net Sales, SEK million	353	347	649	680	1,504	1,535
Gross profit, SEK million	140	132	247	263	624	640
Gross margin, %	39.7%	38.1%	38.0%	38.7%	41.5%	41.7%
EBIT, SEK million	18	12	19	38	176	195
EBIT margin, %	5.1%	3.6%	3.0%	5.7%	11.7%	12.7%
EBITDA	30	23	41	59	220	237
R&D expenditures, SEK million	-57	-56	-110	-110	-214	-214
R&D costs, SEK million	-48	-48	-94	-99	-179	-183

^*Restated for comparability, see Note 1.

The High Flex market for production equipment strengthened slightly compared with the preceding quarter, but can still be considered as cautious. Demand in Europe was good, whereas the US was characterized by uncertainty ahead of the autumn election.

Order intake increased 4 percent during the quarter to SEK 362 (349) million. For the first six months, order intake decreased 5 percent to SEK 696 (735) million. At the end of the quarter, the order backlog totaled SEK 167 (209) million.

Net sales increased 2 percent during the quarter to SEK 353 (347) million. For the first six months, net sales declined 5 percent to SEK 649 (680) million. Net sales were positively impacted by currency effects of SEK 2 million for the quarter and SEK 2 million for the first six months.

The gross margin for the quarter amounted to 40 (38) percent and 38 (39) percent for the first six months.

EBIT increased to SEK 18 (12) million, corresponding to an EBIT margin of 5 (4) percent. EBIT for the first six months of the year decreased to SEK 19 (38) million, corresponding to an EBIT margin of 3 (6) percent.

R&D costs for the quarter amounted to SEK 48 (48) million and SEK 94 (99) million for the first six months. The capitalization of development costs amounted to SEK 11 (10) million for the quarter and SEK 18 (14) million for the first six months.

Interim Report January–June 2024 5 (21)

HIGH VOLUME

	Q2		Jan-Jun		Rolling	Jan-Dec
	2024	2023*	2024	2023*	12 month*	2023*
Order intake, SEK million	357	350	747	576	1,272	1,101
Order backlog, SEK million	778	688	778	688	778	662
Net Sales, SEK million	320	247	631	589	1,181	1,140
Gross profit, SEK million	131	108	258	259	481	482
Gross margin, %	40.9%	43.8%	41.0%	44.0%	40.7%	42.3%
EBIT, SEK million	45	41	100	101	172	173
EBIT margin, %	14.1%	16.6%	15.8%	17.1%	14.6%	15.2%
EBITDA	47	47	104	113	187	196
R&D expenditures, SEK million	-37	-29	-70	-62	-136	-128
R&D costs, SEK million	-35	-30	-68	-65	-135	-132

^*Restated for comparability, see Note 1.

High Volume's Chinese domestic market for consumer electronics noted healthy demand during the second quarter while orders from the electric vehicle industry outside China were slow.

Order intake rose 2 percent during the quarter and amounted to SEK 357 (350) million. For the first six months, order intake increased 30 percent to SEK 747 (576) million. At the end of the quarter, the order backlog totaled SEK 778 (688) million.

Net sales increased 29 percent to SEK 320 (247) million. For the first six months, net sales increased 7 percent to SEK 631 (589) million. Net sales were negatively impacted by currency effects of SEK 2 million for the quarter and SEK 16 million for the first six months.

The gross margin amounted to 41 (44) percent in the quarter and 41 (44) percent for the first six months.

High Volume's EBIT amounted to SEK 45 (41) million, corresponding to an EBIT margin of 14 (17) percent. EBIT for the first six months of the year was SEK 100 (101) million, corresponding to an EBIT margin of 16 (17) percent.

R&D costs for the quarter amounted to SEK 35 (30) million and SEK 68 (65) million for the first six months. The capitalization of development costs amounted to SEK 2 (-) million for the quarter and SEK 2 (-) million for the first six months.

Interim Report January–June 2024 6 (21)

GLOBAL TECHNOLOGIES

	Q2			Jan-Jun		Jan-Dec
	2024	2023	2024	2023	12 month	2023
Order intake, SEK million	207	246	483	434	1,035	987
Order backlog, SEK million	330	272	330	272	330	297
Net Sales, SEK million	203	209	451	402	977	928
Gross profit, SEK million	74	73	178	142	379	343
Gross margin, %	36.3%	35.1%	39.5%	35.3%	38.8%	37.0%
EBIT, SEK million	-15	9	14	12	61	59
EBIT margin, %	-7.6%	4.5%	3.1%	3.0%	6.2%	6.3%
EBITDA	2	24	45	41	121	117
R&D expenditures, SEK million	-26	-21	-46	-39	-90	-82
R&D costs, SEK million	-34	-28	-61	-52	-119	-110

The PCB test business line reported healthy demand for its products, supported by printed circuit boards used in advanced servers for training AI models, as well as investments in South-East Asia as part of a supply chain diversification. In parallel, demand in die bonding slowed. The integration of Vanguard Automation, which was acquired at the beginning of the second quarter and forms a new business line within the division, progressed according to plan. Vanguard Automation did not have an impact on order intake or net sales during the quarter.

Order intake declined 16 percent during the quarter to SEK 207 (246) million, explained by die bonding. For the first six months, order intake increased 11 percent to SEK 483 (434) million. At the end of the quarter, the order backlog totaled SEK 330 (272) million.

Net sales decreased 3 percent to SEK 203 (209) million, explained by die bonding. For the first six months, net sales increased 12 percent to SEK 451 (402) million. Net sales for the quarter were positively impacted by currency effects of SEK 1 million whereas the first six months were not impacted by currency effects.

The gross margin amounted to 36 (35) percent in the quarter and 39 (35) percent for the first six months.

EBIT amounted to SEK -15 (9) million, resulting in an EBIT margin of -8 (5) percent. During the quarter, Vanguard Automation had a negative impact on EBIT of SEK 16 million. EBIT for the first six months of the year was SEK 14 (12) million, corresponding to an EBIT margin of 3 (3) percent.

R&D costs for the quarter amounted to SEK 34 (28) million and SEK 61 (52) million for the first six months. Global Technologies did not capitalize any development costs.

Interim Report January–June 2024 7 (21)

Electronics industry

The global electronics industry grew 0.1 percent in 2023 to USD 2,430 billion¹ . For full year 2023, the semiconductor market declined 8.0 percent to the equivalent of USD 527 billion¹ .

OUTLOOK

Annual growth for the electronics industry is forecast at 4.5 percent for the period 2023–2028¹ . Segments with the strongest expected growth during this five-year period are electronics for data centers, wearable electronics, industrial applications, defense & aerospace and the automotive industry. The electronics industry is forecast to demonstrate growth of 5.1 percent in 2024. Growth is expected to occur in all segments, except in wireless infrastructure, which is forecast to decline. In 2024, the semiconductor market is expected to grow 11.4 percent, driven by a recovery in prices for memory chips and growth in data centers and certain consumer segments and is forecast to be positive during the 2023–2028 period as a whole, with annual growth of 6.9 percent¹ . The display market declined 3.9 percent to USD 118 billion² , mainly due to lower prices for LCD displays. For 2024, the market is forecast to grow 13.0 percent due to growth in both LCD and AMOLED displays. During the 2023–2028 period, the display market is expected to demonstrate annual growth of 5.4 percent² . The long-term trend towards a larger share of advanced AMOLED displays is forecast to continue, albeit at a slower pace, as AMOLED has come to represent a large share of the total market.

Size/growth	2024F	2023	2022
Electronics industry, percentual change¹	+5.1%	+0.1%	-2.1%
Semiconductor industry, percentual change¹	+11.4%	-8.0%	+3.1%
SMT component mounting, percentual change³	NA	-26.5%	-17.9%
Dispensing, USD million⁴	NA	730	930
Displays, USD, billion²	133	118	123
Photomasks for displays, percentual change in value⁵	+2.0%	+6.4%	+24.4%
Photomasks for semiconductors, percentual change in value⁶	+16.9%	+7.4%	+18.9%
Display photomask area, thousand sq. meters⁵	22.3	21.7	21.1

SMT AND DISPENSING MARKET AREA

The global market for SMT equipment has annual sales of approximately USD 4,300 million⁷ . The segment SMT robots for component mounting declined 26.5 percent in 2023 to USD 2,250 million. During the first quarter, the market declined 26.1 percent compared with the same period in 2023. All markets experienced a negative development, with the largest declines in North and South America and Japan³ .

The dispensing equipment market decreased 22 percent and had sales of USD 730 million⁴ in 2023.

ASSEMBLY AUTOMATION AND TEST MARKET AREA

In die bonding, the market for optical components in data/telecommunications is assessed to have decreased by 7.8 percent in 2023, to USD 11.7 billion⁸ . The market is expected to recover in 2024 and post annual growth of 13.0 percent during the 2024–2029 period, to USD 26.8 billion⁸ . In electrical testing, the market for printed circuit boards and substrates is assessed to have declined by 15.0 percent in 2023, to USD 69.5 billion⁹ . The market is expected to grow 5.0 percent in 2024 and to post annual growth of 5.4 percent during the 2023–2028 period, to USD 90.4 billion⁹ .

PATTERN GENERATORS MARKET AREA

PHOTOMASKS FOR DISPLAYS

The market grew 6.4 percent in 2023, from USD 908 million to USD 966 million5,10. The market developed positively, following a very strong 2022 and display manufacturers continued to develop new LCD and AMOLED displays at a good pace. The market continues to be driven by an ongoing shift towards a higher proportion of advanced displays that require more, and more advanced, photomasks. The expectations for 2024 are that the photomask market will grow by 2.0 percent to USD 985 million5,10. The forecast for the total area growth amounts to an average of 2.4 percent per year for 2023–2028 5 . Stronger growth for AMOLED photomasks is expected, with an annual average area growth of 3.2 percent for 2023– 2028 5 , which drives the need for photomasks produced by advanced mask writers.

PHOTOMASKS FOR SEMICONDUCTORS

For 2023, the assessment is that the market continued to show good growth of 7.4 percent to USD 7.8 billion⁶ . The market trend was mixed, with some segments and regions performing strongly, although there were also weaker segments, particularly the market for memory chips. The expectations for 2024 are that the market will perform positively, with growth of 16.9 percent to USD 9.1 billion⁶ . The market value will continue to be primarily driven by the volume trend for the most advanced photomasks, which are mainly produced by E-beam mask writers. The market addressed by laser-based mask writers is also expected to develop positively.

• 1) Prismark, latest forecast May 2024
• 2) Omdia, latest forecast April 2024
• 3) Protec MDC, April 2024
• 4) Prismark, April 2024 (annual update)
• 5) Omdia, June 2024 (annual update) 6) TechInsights, April 2024
• 7) Protec MDC, January 2024, Mycronic analysis, May 2024
• 8) Lightcounting, April 2024
• 9) Prismark, May 2024
• 10) 141 YEN/USD used by Mycronic for conversion

Other

PARENT COMPANY

Mycronic AB is the Group's Parent Company.

The Parent Company's net sales amounted to SEK 1,996 (1,226) million for the first six months. EBIT amounted to SEK 837 (219) million.

Cash and cash equivalents at the end of the first six months amounted to SEK 1,835 million, compared with SEK 1,371 million at the end of 2023.

FINANCIAL INFORMATION

Mycronic AB (publ) is listed on Nasdaq Stockholm, Large Cap. The information in this report is published in accordance with the EU Market Abuse Regulation and the Swedish Securities Act. The information was submitted for publication through the contact persons stated below on July 12, 2024, at 8:00 a.m CEST.

Financial reports and press releases are published in Swedish and English and are available at www.mycronic.com. In case of discrepancies between the two versions, the Swedish version shall prevail.

This report was not reviewed by the company's auditor.

PRESENTATION

Mycronic will hold a presentation at 10:00 a.m. CEST on July 12, 2024, with President and CEO Anders Lindqvist and CFO and Sr VP Corporate Development Pierre Brorsson. The presentation will be webcast.

FINANCIAL CALENDAR

Interim Report January–September
2024	October 24, 2024
Year-end report 2024	February 6, 2025
Annual and Sustainability Report 2024	April 1, 2025
Interim Report January–March 2025	April 25, 2025
Annual General Meeting 2025	May 7, 2025
Interim Report January–June 2025	July 11, 2025
Interim Report January–September
2025	October 23, 2025
Year-end report 2025	February 5, 2026

FOR ADDITIONAL INFORMATION, PLEASE CONTACT

Anders Lindqvist President and CEO Tel: +46 8 638 52 00

E-mail: anders.lindqvist@mycronic.com

Pierre Brorsson CFO and Sr VP Corporate Development

Tel: +46 8 638 52 00

E-mail: pierre.brorsson@mycronic.com

Sven Chetkovich Director Investor Relations Tel: +46 70 558 39 19

E-mail: sven.chetkovich@mycronic.com

Interim Report January–June 2024 9 (21)

The Board of Directors and President certify that this interim report provides a true and fair view of the business activities, financial position and results of operations of the Parent Company and the Group and describes the significant risks and uncertainties to which the Parent Company and the Group are exposed.

Täby, July 12, 2024 Mycronic AB (publ)

Anders Lindqvist President and CEO

Patrik Tigerschiöld Arun Bansal Anna Belfrage Chairman Board member Board member

Katarina Bonde Staffan Dahlström Jens Hinrichsen Board member Board member Board member

Bo Risberg Jörgen Lundberg Sahar Raouf Board member Employee representative Employee representative

Mycronic AB (publ) PO Box 3141

SE-183 03 Täby, Sweden Tel: +46 8 638 52 00

www.mycronic.com Reg office: Stockholm Reg no: 556351-2374

Group

		Q2			Jan-Jun		Jan-Dec
Consolidated profit and loss accounts in summary, SEK million	Note	2024	2023	2024	2023	12 month	2023
Net sales	5, 6	1,527	1,245	3,219	2,464	6,461	5,706
Cost of goods sold		-744	-646	-1,462	-1,295	-3,017	-2,850
Gross profit		783	599	1,757	1,169	3,443	2,855
Research and development	7	-182	-162	-352	-322	-683	-653
Selling expenses		-173	-193	-307	-366	-599	-658
Administrative expenses		-94	-88	-180	-161	-357	-338
Other income and expenses		15	15	30	32	26	28
EBIT		348	170	947	352	1,830	1,235
Financial income and expenses		17	4	34	7	54	27
Profit/loss before tax		365	174	981	359	1,884	1,262
Tax		-78	-41	-206	-77	-395	-266
Net Profit/loss		287	134	775	282	1,489	996
Earnings per share before dilution, SEK		2.94	1.37	7.94	2.90	15.27	10.22
Earnings per share after dilution, SEK		2.94	1.37	7.94	2.90	15.27	10.22
Results attributable to owners of the Parent
Company		287	134	775	283	1,490	998
Results attributable to non-controlling interests		0	-1	0	-1	-1	-2
		287	134	775	282	1,489	996

		Q2		Jan-Jun	Rolling	Jan-Dec
Consolidated statement of comprehensive income in summary, SEK million	2024	2023	2024	2023	12 month	2023
Net Profit/loss	287	134	775	282	1,489	996
Other comprehensive income
Items not to be reclassified to profit/loss, after tax
Actuarial profit/loss from defined benefits to employees	-	-	-	-	-4	-4
Items to be reclassified to profit/loss, after tax
Translation differences at translating foreign entities	-47	49	91	61	-96	-126
Changes in cash flow hedges	2	-66	-77	-49	31	59
Total comprehensive income	242	117	789	294	1,420	925
Total comprehensive income attributable to owners of the Parent Company	242	118	788	295	1,422	929
Total comprehensive income attributable to non controlling interests	0	-1	1	-1	-2	-4
	242	117	789	294	1,420	925

Interim Report January–June 2024 11 (21)

Consolidated statements of financial position in summary, SEK million	Note	30 Jun 24	30 Jun 23	31 Dec 23
ASSETS
Non-current assets
Intangible assets	6, 8	2,551	2,404	2,292
Property, plant and equipment		527	505	495
Non-current receivables		58	68	58
Deferred tax assets		192	185	175
Total non-current assets		3,327	3,163	3,021
Current assets
Inventories	6	1,937	1,636	1,602
Trade receivables	6	959	923	1,270
Other current receivables		326	278	308
Cash and cash equivalents		2,535	1,632	2,140
Total current assets		5,757	4,470	5,319
Total assets		9,085	7,633	8,340
EQUITY AND LIABILITIES
Equity		5,642	4,663	5,282
Non-current liabilities
Non-current interest-bearing liabilities		131	165	150
Deferred tax liabilities		357	326	359
Other non-current liabilities		90	46	43
Total non-current liabilities		578	536	551
Current liabilities
Current interest-bearing liabilities		82	72	78
Trade payables		556	375	388
Other current liabilities		2,226	1,986	2,041
Total current liabilities		2,864	2,434	2,507
Total liabilities		3,442	2,970	3,058
Total equity and liabilities		9,085	7,633	8,340

Interim Report January–June 2024 12 (21)

	Q2		Jan-Jun		Rolling	Jan-Dec
Consolidated cash flow statements in summary, SEK million	2024	2023	2024	2023	12 month	2023
Profit/loss before tax	365	174	981	359	1,884	1,262
Adjustments for non-cash items and
paid income tax	29	-2	23	48	184	209
Change in working capital	-12	259	115	426	-174	138
Cash flow from operating activities	382	431	1,119	834	1,894	1,608
Cash flow from investing activities	-213	-22	-262	-86	-372	-195
Cash flow from financing activities	-462	-369	-488	-391	-545	-447
Cash flow for the period	-293	40	369	357	977	966
Cash and cash equivalents, opening balance	2,841	1,590	2,140	1,274	1,632	1,274
Exchange difference for cash and cash equivalents	-13	2	27	2	-74	-100
Cash and cash equivalents, closing balance	2,535	1,632	2,535	1,632	2,535	2,140

		Jan-Jun
Consolidated statement of changes in equity in summary, SEK million	2024	2023	2023
Opening balance	5,282	4,703	4,703
Dividend to owners	-441	-343	-343
Swap agreement related to own shares	-	-	9
Repurchase of own shares	-	-	-26
Equity-settled share based payments	12	8	14
Total comprehensive income	789	294	925
Closing balance	5,642	4,663	5,282
Of which holdings of non-controlling interests	37	39	36

	Jan-Jun	Jan-Dec
Other key figures *	2024	2023	2023
Equity per share, SEK	57.81	47.76	54.12
Return on equity (rolling 12 months), %	28.9%	15.3%	20.0%
Return on capital employed (rolling 12 months), %	35.3%	17.7%	24.3%
Net cash, SEK million	2,322	1,395	1,912
Average number of employees	2,027	2,026	2,027

^*In addition to the performance indicators presented on page 1. See calculations on page 20.

Parent Company

		Q2	Jan-Jun		Rolling	Jan-Dec
Profit/loss accounts in summary, Parent Company, SEK million	2024	2023	2024	2023	12 month	2023
Net sales	906	686	1,996	1,226	3,965	3,195
Cost of goods sold	-377	-329	-747	-593	-1,577	-1,423
Gross profit	530	358	1,249	633	2,388	1,773
Other operating expenses	-264	-210	-411	-414	-1,003	-1,006
EBIT	265	148	837	219	1,385	767
Result from financial items	28	19	55	36	440	421
Profit/loss after financial items	294	167	893	255	1,825	1,187
Appropriations	-	-	-	-	-74	-74
Profit/loss before tax	294	167	893	255	1,751	1,113
Tax	-60	-34	-184	-52	-291	-160
Net Profit/loss	233	133	709	203	1,460	953
	Q2		Jan-Jun		Rolling	Jan-Dec
Statement of comprehensive income, Parent Company, SEK million	2024	2023	2024	2023	12 month	2023
Net Profit/loss	233	133	709	203	1,460	953
Other comprehensive income	-	-	-	-	-	-
Total comprehensive income	233	133	709	203	1,460	953

Balance sheets in summary, Parent Company, SEK million	30 Jun 24	30 Jun 23	31 Dec 23
ASSETS
Non-current assets
Intangible and tangible assets	207	170	216
Financial assets	3,335	3,071	3,056
Total non-current assets	3,542	3,240	3,272
Current assets
Inventories	893	702	752
Current receivables	532	678	954
Cash and cash equivalents	1,835	781	1,371
Total current assets	3,259	2,161	3,077
TOTAL ASSETS	6,801	5,401	6,349
EQUITY AND LIABILITIES
Equity	3,607	2,588	3,327
Untaxed reserves	1,374	1,300	1,374
Non-current interest-bearing liabilities	-	-	-
Other non-current liabilities	3	2	2
Total non-current liabilities	3	2	2
Current interest-bearing liabilities	-	-	-
Other current liabilities	1,818	1,512	1,647
Total current liabilities	1,818	1,512	1,647
TOTAL EQUITY AND LIABILITIES	6,801	5,401	6,349

Interim Report January–June 2024 14 (21)

Notes

NOTE 1 ACCOUNTING POLICIES

This interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting, along with applicable provisions in the Swedish Annual Accounts Act. The report for the Parent Company has been prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act. For the Group and Parent Company, accounting policies, valuation policies and assumptions were applied in accordance with the latest annual report. The accounting policies of the segments are the same as for the Group, with the exception of IFRS 16 Leases. The segments and the Parent Company recognize lease payments as a cost on a straight-line basis over the term of the lease. The right-of-use asset and the lease liability are thus not reported in the balance sheet.

During the third quarter of 2023, High Flex took over global responsibility for China-based HC Xin from High Volume, while High Volume took over global responsibility for both the MYSmart dispensing products and the Mexico office from High Flex. Comparative figures for 2022 and the first two quarters of 2023 are restated in this interim report.

The nature of financial assets and liabilities is, in all material respects, the same as on December 31, 2023. The carrying amounts and fair values are deemed to essentially correspond with one another.

NOTE 2 RELATED PARTY TRANSACTIONS

A description of related party transactions can be found in Note 8 of the 2023 annual report. The scope and nature of these transactions did not change significantly during the period.

NOTE 3 RISKS AND UNCERTAINTIES

The Group's business is exposed to a number of risks and uncertainties that are both operational and financial in nature, which are in all material aspects the same as presented in the 2023 annual report. For example, Mycronic is exposed to country-specific risks such as political decisions or overarching changes to the regulatory framework, both geographically and product-wise.

NOTE 4 EVENTS AFTER THE END OF THE PERIOD

No events took place after the end of the period that had a significant impact on the Group's earnings or financial position.

NOTE 5 REVENUE FROM CONTRACTS WITH CUSTOMERS

		Q2		Jan-Jun		Jan-Dec
Revenue by geographical market, SEK million	2024	2023	2024	2023	12 month	2023
EMEA	209	220	415	424	910	919
North and South America	194	266	430	489	1,102	1,162
Asia	1,124	758	2,374	1,550	4,448	3,625
	1,527	1,245	3,219	2,464	6,461	5,706
Revenue by type of good/service, SEK million
System	1,119	853	2,403	1,682	4,798	4,077
Aftermarket	408	392	816	782	1,663	1,629
	1,527	1,245	3,219	2,464	6,461	5,706
Timing of revenue recognition, SEK million
Goods transferred at a point in time	1,232	990	2,633	1,957	5,320	4,643
Services transferred over time	294	255	586	507	1,141	1,063
	1,527	1,245	3,219	2,464	6,461	5,706

NOTE 6 OPERATING SEGMENT REPORTING

		Q2		Jan-Jun	Rolling	Jan-Dec
SEK million	2024	2023*	2024	2023*	12 month*	2023*
Net sales by Division
Pattern Generators	650	442	1,488	794	2,800	2,106
High Flex	353	347	649	680	1,504	1,535
High Volume	320	247	631	589	1,181	1,140
Global Technologies	203	209	451	402	977	928
Internal net sales between divisions	-	-	-	-	-3	-3
	1,527	1,245	3,219	2,464	6,461	5,706
EBIT by Division
Pattern Generators	342	191	886	340	1,598	1,053
High Flex	18	12	19	38	176	195
High Volume	45	41	100	101	172	173
Global Technologies	-15	9	14	12	61	59
Group functions etc	-43	-85	-74	-141	-182	-249
Effects from IFRS 16	1	1	3	2	5	4
Group	348	170	947	352	1,830	1,235

SEK million	30 Jun 24	30 Jun 23*	31 Dec 23
Assets by Division
Capitalized Development Costs
Pattern Generators	72	62	65
High Flex	80	65	75
High Volume	2	-	-
	153	128	140
Inventories
Pattern Generators	608	506	519
High Flex	458	392	392
High Volume	579	437	457
Global Technologies	293	302	235
Unrealized profit in inventories	-2	0	-2
	1,937	1,636	1,602
Trade Receivables
Pattern Generators	200	231	571
High Flex	261	281	328
High Volume	344	270	243
Global Technologies	153	141	129
	959	923	1,270

^*Restated for comparability, see Note 1.

NOTE 7 RESEARCH AND DEVELOPMENT COSTS

	Q2		Jan-Jun		Rolling	Jan-Dec
Research and development costs, SEK million	2024	2023*	2024	2023*	12 month*	2023*
R&D expenditures
Pattern Generators	-75	-65	-144	-121	-278	-255
High Flex	-57	-56	-110	-110	-214	-214
High Volume	-37	-29	-70	-62	-136	-128
Global Technologies	-26	-21	-46	-39	-90	-82
	-195	-171	-370	-332	717	-679
Capitalization of Development Costs
Pattern Generators	10	8	16	15	28	27
High Flex	11	10	18	14	41	36
High Volume	2	-	2	-	2	-
	23	18	36	29	71	63
Amortization of Acquired Technology
High Flex	-1	-1	-3	-3	-6	-6
High Volume	-	-1	-	-3	-2	-4
Global Technologies	-8	-7	-15	-14	-29	-28
	-10	-10	-18	-19	-37	-38
Reported cost	-182	-162	-352	-322	-683	-653

^*Restated for comparability, see Note 1.

NOTE 8 BUSINESS COMBINATIONS

At the beginning of the second quarter, Mycronic acquired 100 percent of the shares in Vanguard Automation, a company headquartered in Karlsruhe, Germany, which has developed a technology and automated equipment for 3D microfabrication of optical interconnects. With this acquisition, Mycronic can offer a wider range of die bonding and optical packaging solutions to its customers. Following the transaction, Vanguard Automation forms a new business line within the Global Technologies division. In 2023, Vanguard Automation's net sales amounted to EUR 5.2 million. The company has 26 employees. The purchase consideration amounts to EUR 18 million, corresponding to SEK 207 million, on a cash and debtfree basis, of which 95% was paid in the second quarter. Under certain conditions, based on parameters such as sales and earnings, an additional purchase consideration of a maximum of EUR 8 million will be paid in 2026.

Work to assign values to acquired assets and liabilities is ongoing and the purchase price allocation is therefore still preliminary as of June 30, 2024. In the preliminary purchase price allocation, intangible assets in technology, customer relationships, brand and goodwill were identified. Goodwill amounts to SEK 155 million and is primarily attributable to the complementing nature of Vanguard Automation's and MRSI's offerings that cater to the photonics industry. The acquisition price is adjusted for contingent considerations, which are deemed to correspond to fair value. As of June 30, 2024 a contingent consideration has been recorded of EUR 4 million, an equivalent of SEK 47 million. The contingent consideration is recorded as Other non-current liabilities in the consolidated statements of financial position in summary. The company was consolidated in the Mycronic Group as of April 1, 2024. The impact of Vanguard Automation's operations on consolidated net sales and EBIT is not significant.

	Vanguard Automation
SEK million	2024
Acquisition price
Cash paid for the acquisition	167
Short-term deferred considerations	10
Long-term contingent considerations (estimated fair value)	47
Total	224
Acquired assets and liabilities at fair value
Intangible assets	56
Property, plant and equipment	12
Inventories	8
Current receivables	16
Cash and cash equivalents	9
Non-current liabilities	-22
Current liabilities	-11
Total	69
Goodwill	155
Changes in consolidated cash and cash equivalents as of the acquisition
Cash paid for the acquisition	167
Cash and cash equivalents in acquired subsidiaries	-9
Total	159

Interim Report January–June 2024 18 (21)

NOTE 9 DEFINITIONS AND RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES, ETC

The European Securities and Markets Authority (ESMA) has issued guidelines regarding alternative performance measures for listed companies.

These relate to financial key figures used by management, to control and evaluate the Group's business, which cannot be directly inferred from the financial statements. Alternative performance measures are also considered to be of interest to external investors and analysts who monitor the company. For definitions of other key ratios, please refer to the annual report.

Acquisition-related costs

Acquisition-related costs include expensing of acquired inventories at fair value, amortization and impairment of acquired intangible assets, changes in value and revaluation of contingent considerations and transaction expenses.

Book-to-bill

Order intake in relation to net sales. Indicates future development of net sales.

Capital employed

Balance sheet total less non-interest bearing liabilities. Used to show a company's ability to meet capital needs from operations.

Earnings per share

Net result attributable to the owners of the Parent Company divided by the average number of outstanding shares before and after dilution. Used to show a company's results per share.

EBITDA

Operating result, EBIT, before depreciation and amortization.

Equity per share

Equity on balance day divided by the number of outstanding shares at the end of the period. Used to measure the value of the company per share.

Net cash

Cash and cash equivalents less interest-bearing liabilities.

Order backlog

Remaining orders for goods, valued at the closing date exchange rate. Used to show secured future net sales of goods.

Order intake

Received orders for goods and services, valued at average exchange rates. The order intake also includes revaluation of the order backlog at closing date exchange rates. Used to show orders received.

Organic growth

Change in net sales, excluding increase related to acquisitions and decrease related to divestments, recalculated to the previous year's exchange rates as a percentage of the previous year's net sales. Net sales from acquired companies are included in the calculation of organic growth as of the first day of the first month which falls 12 months after the date of acquisition.

Return on capital employed

Earnings before financial expenses as a percentage of average capital employed. Used to show return on capital needed for operations.

Return on equity

Net profit/loss as a percentage of average equity. Used to demonstrate return on shareholder capital over time.

Underlying EBIT and underlying EBIT margin

Underlying EBIT consists of operating result excluding acquisition-related costs and gains/losses from divestments of subsidiaries. The underlying EBIT margin is underlying EBIT as a percentage of net sales. Used to describe how operations are developing and performing excluding acquisition-related costs and gains/losses from divestments.

	Jan-Jun		Rolling	Jan-Dec
Return on equity	2024	2023	12 month	2023
Net profit/loss (rolling 12 months)	1,489	680	1,489	996
Average shareholders' equity	5,153	4,438	5,153	4,993
	28.9%	15.3%	28.9%	20.0%
Return on capital employed
Profit/loss before tax (rolling 12 months)	1,884	823	1,884	1,262
Financial expenses	13	13	13	13
Profit/loss before financial expenses	1,898	836	1,898	1,275
Average balance sheet total	8,359	7,135	8,359	7,840
Average non-interest-bearing liabilities	2,981	2,421	2,981	2,599
Average capital employed	5,378	4,714	5,378	5,241
	35.3%	17.7%	35.3%	24.3%
Book-to-bill
Order intake	3,770	3,365	6,685	6,280
Net sales	3,219	2,464	6,461	5,706
	1.2	1.4	1.0	1.1
EBITDA
EBIT	947	352	1,830	1,235
Depreciation/Amortization	128	132	261	264
	1,075	484	2,091	1,499
Underlying EBIT
EBIT	947	352	1,830	1,235
Acquisition-related costs included in:
Cost of goods sold	-	-	-	-
Operating expenses	35	33	66	63
	983	385	1,896	1,298
Equity per share
Equity at balance day	5,642	4,663	5,642	5,282
No. of outstanding shares at end of period, thousand	97,597	97,631	97,597	97,597
	57.81	47.76	57.81	54.12
Earnings per share before/after dilution, SEK
Net Profit/loss attributable to owners of the Parent Company	775	283	1,490	998
Average no. of outstanding shares before dilution, thousand	97,597	97,631	97,593	97,610
	7.94	2.90	15.27	10.22
Average no. of outstanding shares after dilution, thousand	97,633	97,646	97,616	97,636
	7.94	2.90	15.27	10.22
Net cash, SEK million
Cash and cash equivalents Interest-bearing liabilities	2,535 -213	1,632 -237	2,535 -213	2,140 -227

Interim Report January–June 2024 20 (21)

Quarterly data	Q2 24	Q1 24	Q4 23	Q3 23	Q2 23*	Q1 23*	Q4 22*	Q3 22*
Order intake
Pattern Generators	1,199	645	513	561	804	816	1,829	718
High Flex	362	334	359	407	349	386	322	354
High Volume	357	390	276	249	350	226	213	306
Global Technologies	207	277	303	250	246	189	164	232
Internal order intake between divisions	-	-	-3	-	-	-	-	-
	2,125	1,645	1,448	1,467	1,748	1,617	2,529	1,609
Order Backlog
Pattern Generators	3,424	2,876	3,068	3,433	3,307	2,945	2,480	1,106
High Flex	167	158	120	239	209	207	155	279
High Volume	778	741	662	692	688	584	700	858
Global Technologies	330	327	297	305	272	236	239	298
	4,700	4,102	4,149	4,669	4,475	3,972	3,574	2,542
Net Sales
Pattern Generators	650	838	878	435	442	351	455	246
High Flex	353	296	477	378	347	334	446	352
High Volume	320	311	306	244	247	342	373	398
Global Technologies	203	247	310	216	209	192	224	218
Internal net sales between divisions	-	-	-3	-	-	-	-	-
	1,527	1,692	1,968	1,274	1,245	1,219	1,497	1,214
Gross Profit
Pattern Generators	438	635	600	286	283	220	247	154
High Flex	140	107	221	156	132	131	185	141
High Volume	131	128	121	101	108	151	154	163
Global Technologies	74	104	122	80	73	68	83	85
	783	974	1,063	623	599	570	672	541
Gross Margin
Pattern Generators	67.3%	75.8%	68.4%	65.9%	64.0%	62.5%	54.4%	62.5%
High Flex	39.7%	36.1%	46.2%	41.3%	38.1%	39.3%	41.5%	40.1%
High Volume	40.9%	41.1%	39.7%	41.5%	43.8%	44.1%	41.3%	41.1%
Global Technologies	36.3%	42.1%	39.2%	36.9%	35.1%	35.5%	37.1%	38.9%
	51.3%	57.6%	54.0%	48.9%	48.1%	46.8%	44.9%	44.6%
R&D expenses
Pattern Generators	-65	-63	-66	-56	-56	-50	-60	-49
High Flex	-48	-46	-45	-40	-48	-51	-58	-45
High Volume	-35	-33	-34	-33	-30	-35	-30	-37
Global Technologies	-34	-27	-29	-29	-28	-24	-28	-23
Total R&D expenses	-182	-170	-174	-158	-162	-160	-175	-154
Selling expenses	-173	-135	-161	-130	-193	-173	-166	-157
Administrative expenses	-94	-85	-106	-72	-88	-72	-87	-65
Other income/expenses	15	15	-2	-1	15	16	18	37
EBIT	348	599	620	263	170	182	262	203
Of which EBIT Pattern Generators	342	543	510	203	191	149	154	76
Of which EBIT High Flex	18	1	96	60	12	26	61	45
Of which EBIT High Volume	45	55	32	41	41	60	89	94
Of which EBIT Global Technologies	-15	30	37	10	9	3	6	22
Of which EBIT Group functions etc	-43	-31	-55	-52	-85	-57	-48	-34
EBIT margin	22.8%	35.4%	31.5%	20.6%	13.7%	14.9%	17.5%	16.7%
Equity per share	57.81	59.77	54.12	49.36	47.76	50.02	48.17	45.40
Earnings per share before dilution
	2.94	5.01	5.23	2.10	1.37	1.52	2.56	1.56
Earnings per share after dilution	2.94	5.00	5.23	2.10	1.37	1.52	2.56	1.56
Closing share price	408.60	378.00	287.40	226.00	267.00	254.80	195.80	135.00

^*Restated for comparability, see Note 1.

Interim Report January–June 2024 21 (21)