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Mycronic
Quarterly Report • Oct 24, 2024
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Quarterly Report
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Interim Report January–September 2024
Third quarter
- Order intake amounted to SEK 1,459 (1,467) million, a decrease of 1 percent
- Net sales increased 40 percent to SEK 1,780 (1,274) million. Based on constant exchange rates, net sales increased 45 percent
- EBIT amounted to SEK 547 (263) million and the EBIT margin was 31 (21) percent
- Earnings per share were SEK 4.59 (2.10)
January–September
- Order intake amounted to SEK 5,229 (4,832) million, an increase of 8 percent
- Net sales increased 34 percent to SEK 4,999 (3,738) million. Based on constant exchange rates, net sales increased 37 percent
- EBIT amounted to SEK 1,494 (615) million and the EBIT margin was 30 (16) percent
- Earnings per share were SEK 12.53 (5.00)
"Order intake was basically flat in the third quarter, with decreases in Pattern Generators and High Flex compensated by increases in High Volume and Global Technologies. Net sales increased 40 percent, driven mainly by Pattern Generators, but with High Volume and Global Technologies also supporting the positive development. EBIT more than doubled to SEK 547 million, corresponding to an EBIT margin of 31 percent. I am pleased to note that EBIT of SEK 1,494 million for the first nine months comfortably exceeds the full year result of SEK 1,235 million for 2023, which in turn was our strongest full year result ever", says Anders Lindqvist, President and CEO.
Outlook 2024
The Board of Directors' opinion remains that net sales for 2024 will be at a level of SEK 6.5 billion.
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| Group summary | 2024 | 2023 | 2024 | 2023 | 12 month | 2023 |
| Order intake, SEK million | 1,459 | 1,467 | 5,229 | 4,832 | 6,677 | 6,280 |
| Net Sales, SEK million | 1,780 | 1,274 | 4,999 | 3,738 | 6,967 | 5,706 |
| Book-to-bill | 0.8 | 1.2 | 1.0 | 1.3 | 1.0 | 1.1 |
| Order backlog, SEK million | 4,379 | 4,669 | 4,379 | 4,669 | 4,379 | 4,149 |
| Gross margin, % | 53.8% | 48.9% | 54.3% | 48.0% | 54.2% | 50.0% |
| EBIT, SEK million | 547 | 263 | 1,494 | 615 | 2,114 | 1,235 |
| EBIT margin, % | 30.7% | 20.6% | 29.9% | 16.4% | 30.3% | 21.6% |
| Earnings per share before dilution, SEK | 4.59 | 2.10 | 12.53 | 5.00 | 17.76 | 10.22 |
| Earnings per share after dilution, SEK | 4.59 | 2.10 | 12.53 | 5.00 | 17.76 | 10.22 |
| Cash Flow, SEK million | 10 | 118 | 378 | 475 | 869 | 966 |
| Changes in Net Sales | ||||||
| Total growth, % | 40% | 5% | 34% | 3% | 33% | 11% |
| Organic growth, % | 45% | 2% | 37% | -1% | 35% | 8% |
| Growth from acquisitions/divestments, % | 0% | 0% | 0% | 0% | 0% | 0% |
| Currency effects, % | -6% | 3% | -3% | 5% | -2% | 4% |
CEO comments
Order intake was basically flat in the third quarter, with decreases in Pattern Generators and High Flex compensated by increases in High Volume and Global Technologies. Net sales increased 40 percent, driven mainly by Pattern
Generators, but with High Volume and Global Technologies also supporting the positive development. EBIT more than doubled to SEK 547 million, corresponding to an EBIT margin of 31 percent. I am pleased to note that EBIT of SEK 1,494 million for the first nine months comfortably exceeds the full year result of SEK 1,235 million for 2023, which in turn was our strongest full year result ever.
In Pattern Generators, the photomask markets for both displays and semiconductors were stable. The division received orders for two SLXs during the quarter, including the first order for delivery to Europe. Pattern Generators will thus play a part in ensuring the production of photomasks for the semiconductor industry also on this continent.
In High Flex, major markets in Europe, such as Germany, France, and the UK reported weakening demand, with customers having lower order backlog levels. At the same time, the market in the US stabilized, albeit at a low level. During the quarter, a decision was made to relocate the High Flex division from the current premises in Täby to premises in Kista, Stockholm in the second half of 2025. This will free up production capacity for Pattern Generators and enable continued growth and improved production flows for both Pattern Generators and High Flex.
Order intake and net sales, rolling 12 months Gross and EBIT margin, rolling 12 months
Demand for High Volume's products improved during the third quarter, both in the Chinese domestic market and the market outside of China.
In Global Technologies, the Die Bonding business line reported strong order intake during the third quarter of the year, with strong demand for high-speed optical transceivers driven by AI applications. Demand was also healthy for PCB Test, driven by printed circuit boards used in advanced servers for training AI models. The third business line, Photonic Interconnects, which was created with the acquisition of Vanguard Automation earlier this year, received its first orders since the acquisition.
After the end of the period, the High Volume division completed the acquisition of Modus High-Tech Electronics GmbH, based in Düsseldorf, which operates in the field of automatic optical inspection of coating, soldering and components in PCB assembly. Net sales in 2023 amounted to EUR 4 million. Modus is our second acquisition in 2024, following Global Technologies' acquisition of Vanguard Automation earlier this year. We are continuously working on strengthening our divisions and this is partly taking place through bolt-on acquisitions that will enable the divisions to remain at the forefront of their respective fields. An active acquisition strategy is an important component in achieving our financial goal of net sales of SEK 10 billion in the 2027– 2030 period.
Anders Lindqvist, President and CEO
Financial performance
GROUP
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 12 month | 2023 | |
| Order intake, SEK million | 1,459 | 1,467 | 5,229 | 4,832 | 6,677 | 6,280 |
| Order backlog, SEK million | 4,379 | 4,669 | 4,379 | 4,669 | 4,379 | 4,149 |
| Net Sales, SEK million | 1,780 | 1,274 | 4,999 | 3,738 | 6,967 | 5,706 |
| Gross profit, SEK million | 958 | 623 | 2,715 | 1,792 | 3,778 | 2,855 |
| Gross margin, % | 53.8% | 48.9% | 54.3% | 48.0% | 54.2% | 50.0% |
| EBIT, SEK million | 547 | 263 | 1,494 | 615 | 2,114 | 1,235 |
| EBIT margin, % | 30.7% | 20.6% | 29.9% | 16.4% | 30.3% | 21.6% |
| EBITDA, SEK million | 613 | 331 | 1,689 | 814 | 2,374 | 1,499 |
During the quarter, a decision was made to relocate the High Flex division from the current premises in Täby to premises in Kista, Stockholm in the second half of 2025. This will free up production capacity for Pattern Generators and enable continued growth and improved production flows for both Pattern Generators and High Flex. During the third quarter, the company repurchased 56,214 of its own shares for delivery to participants of the most recent longterm incentive program (LTIP 2024).
Order intake decreased 1 percent to SEK 1,459 (1,467) million in the third quarter. For the first nine months, order intake increased 8 percent to SEK 5,229 (4,832) million. The Group's order backlog at the end of the quarter was SEK 4,379 (4,669) million.
Net sales increased 40 percent to SEK 1,780 (1,274) million for the quarter, driven mainly by Pattern Generators, but with High Volume and Global Technologies also supporting the positive performance. For the first nine months of the year, net sales increased 34 percent to SEK 4,999 (3,738) million. Net sales for the quarter were negatively impacted by currency effects of SEK 72 million, and the first nine months of the year negatively by SEK 105 million.
The gross margin increased to 54 (49) percent during the quarter, driven 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 nine months of the year rose to 54 (48) percent.
EBIT increased to SEK 547 (263) million during the quarter, corresponding to an EBIT margin of 31 (21) percent. EBIT for the first nine months of the year amounted to SEK 1,494 (615) million, corresponding to an EBIT margin of 30 (16) percent. Acquisition-related costs amounted to SEK 17 (17)
million for the quarter and SEK 52 (49) million for the first nine months of the year.
Cash flow and financial position
Consolidated cash and cash equivalents at the end of September amounted to SEK 2,532 (1,745) million. Cash flow amounted to SEK 378 (475) million for the first nine months of the year. Cash flow from operating activities amounted to SEK 1,217 (1,045) million. Working capital increased during the first nine months of the year, with a cash flow impact of SEK -400 (323) million, driven primarily by higher inventory.
Investing activities generated a cash flow of SEK -307 (-140) million during the first nine months, where the acquisition of Vanguard Automation accounted for SEK -159 million, investments in property, plant and equipment for SEK -90 (-93) million and capitalization of product development for SEK -59 (-44) million. Financing activities generated a cash flow of SEK -532 (-431) million, of which SEK -441 (-343) million was related to dividends to shareholders. At the end of September, Mycronic had a strong net cash position of SEK 2,323 (1,523) million.
Sustainability
As part of efforts to achieve Mycronic's Scope 1 and 2 climate targets, several of the Group's facilities in the US, Japan, and South Korea started purchasing renewable electricity from local electricity suppliers during the quarter. A total of more than 60 percent of the Group's facilities' electricity now comes from renewable sources. The Pattern Generators division's laser upgrade program is playing a key role in achieving Mycronic's other climate target, aimed at reducing greenhouse gas emissions from the use of products (Scope 3). The program, which involves replacing gas lasers in our customers' mask writers with significantly more energy-efficient solid state lasers, continued during the quarter and has been very well received by customers.
PATTERN GENERATORS
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 12 month | 2023 | |
| Order intake, SEK million | 274 | 561 | 2,118 | 2,181 | 2,631 | 2,694 |
| Order backlog, SEK million | 2,891 | 3,433 | 2,891 | 3,433 | 2,891 | 3,068 |
| Net Sales, SEK million | 807 | 435 | 2,295 | 1,228 | 3,173 | 2,106 |
| Gross profit, SEK million | 589 | 286 | 1,661 | 789 | 2,261 | 1,389 |
| Gross margin, % | 72.9% | 65.9% | 72.4% | 64.2% | 71.3% | 66.0% |
| EBIT, SEK million | 498 | 203 | 1,384 | 543 | 1,894 | 1,053 |
| EBIT margin, % | 61.7% | 46.6% | 60.3% | 44.2% | 59.7% | 50.0% |
| EBITDA | 513 | 217 | 1,427 | 585 | 1,952 | 1,110 |
| R&D expenditures, SEK million | -81 | -60 | -225 | -182 | -299 | -255 |
| R&D costs, SEK million | -68 | -56 | -197 | -162 | -263 | -228 |
The photomask markets were stable for both displays and semiconductors in the third quarter of the year. During the quarter, the first SLX order for delivery to Europe was received, and Pattern Generators will thus play a part in ensuring the production of photomasks for the semiconductor industry also on this continent.
The division received orders for two SLXs during the quarter. Order intake declined 51 percent to SEK 274 (561) million. For the first nine months of the year, order intake decreased 3 percent to SEK 2,118 (2,181) million.
At the end of the quarter, the order backlog amounted to SEK 2,891 (3,433) million and contained 27 systems, with planned deliveries as follows:
2024 Q4: 1 Prexision 8 Entry Evo, 4 SLXs, 1 MMX
2025 Q1: 3 Prexision 8 Evos, 1 Prexision Lite 8 Evo,
1 FPS10 Evo, 4 SLXs
2025 Q2: 1 Prexision 8 Evo, 1 Prexision Lite 8 Evo, 3 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, 1 SLX
During the quarter Pattern Generators delivered two Prexision 8 Evos and three SLXs, compared with one Prexision Lite 8 Evo and two SLXs during the corresponding period of the preceding year. Net sales increased 86 percent to SEK 807 (435) million. For the first nine months of the year, net sales increased 87 percent to SEK 2,295 (1,228) million. Net sales for the third quarter were negatively impacted by currency effects of SEK 41 million, and the first nine months of the year negatively by SEK 61 million.
The gross margin for the quarter increased to 73 (66) percent due to different product mix and to 72 (64) percent for the first nine months of the year.
EBIT increased to SEK 498 (203) million for the quarter, corresponding to an EBIT margin of 62 (47) percent. EBIT for the first nine months of the year increased to SEK 1,384 (543) million, corresponding to an EBIT margin of 60 (44) percent.
R&D costs for the quarter amounted to SEK 68 (56) million and SEK 197 (162) million for the first nine months. The capitalization of development costs amounted to SEK 13 (5) million for the quarter and SEK 29 (20) million for the first nine months.
HIGH FLEX
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023* | 12 month | 2023* | |
| Order intake, SEK million | 385 | 407 | 1,082 | 1,144 | 1,439 | 1,501 |
| Order backlog, SEK million | 199 | 239 | 199 | 239 | 199 | 120 |
| Net Sales, SEK million | 353 | 378 | 1,002 | 1,059 | 1,478 | 1,535 |
| Gross profit, SEK million | 136 | 156 | 383 | 419 | 604 | 640 |
| Gross margin, % | 38.6% | 41.3% | 38.2% | 39.6% | 40.9% | 41.7% |
| EBIT, SEK million | 31 | 60 | 50 | 99 | 146 | 195 |
| EBIT margin, % | 8.8% | 16.0% | 5.0% | 9.4% | 9.9% | 12.7% |
| EBITDA | 43 | 71 | 84 | 130 | 191 | 237 |
| R&D expenditures, SEK million | -46 | -49 | -156 | -159 | -211 | -214 |
| R&D costs, SEK million | -38 | -40 | -133 | -138 | -177 | -183 |
*Restated for comparability, see Note 1.
In Europe, major markets such as Germany, France, and the UK reported weakening demand, with customers having lower order backlog levels. At the same time, the market in the US stabilized, albeit at a low level.
Order intake declined 5 percent during the quarter to SEK 385 (407) million. For the first nine months of the year, order intake decreased 5 percent to SEK 1,082 (1,144) million. At the end of the quarter, the order backlog totaled SEK 199 (239) million.
Net sales declined 7 percent during the quarter to SEK 353 (378) million. For the first nine months, net sales decreased 5 percent to SEK 1,002 (1,059) million. Net sales for the quarter were negatively impacted by currency effects of SEK 11 million, and the first nine months negatively by SEK 9 million.
The gross margin for the quarter amounted to 39 (41) percent and 38 (40) percent for the first nine months.
EBIT declined to SEK 31 (60) million, corresponding to an EBIT margin of 9 (16) percent. EBIT for the first nine months of the year decreased to SEK 50 (99) million, corresponding to an EBIT margin of 5 (9) percent.
R&D costs for the quarter amounted to SEK 38 (40) million and SEK 133 (138) million for the first nine months. The capitalization of development costs amounted to SEK 9 (11) million for the quarter and SEK 27 (25) million for the first nine months of the year.
HIGH VOLUME
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023* | 12 month | 2023* | |
| Order intake, SEK million | 389 | 249 | 1,136 | 825 | 1,412 | 1,101 |
| Order backlog, SEK million | 832 | 692 | 832 | 692 | 832 | 662 |
| Net Sales, SEK million | 336 | 244 | 966 | 834 | 1,272 | 1,140 |
| Gross profit, SEK million | 134 | 101 | 392 | 363 | 513 | 482 |
| Gross margin, % | 39.9% | 41.5% | 40.6% | 43.5% | 40.4% | 42.3% |
| EBIT, SEK million | 47 | 41 | 147 | 142 | 179 | 173 |
| EBIT margin, % | 14.1% | 16.8% | 15.2% | 17.1% | 14.1% | 15.2% |
| EBITDA | 50 | 47 | 154 | 161 | 189 | 196 |
| R&D expenditures, SEK million | -40 | -32 | -110 | -94 | -144 | -128 |
| R&D costs, SEK million | -39 | -33 | -107 | -98 | -141 | -132 |
*Restated for comparability, see Note 1.
Demand for High Volume's products improved during the third quarter, both in the Chinese domestic market and the market outside of China.
Order intake rose 56 percent during the quarter and amounted to SEK 389 (249) million. For the first nine months of the year, order intake increased 38 percent to SEK 1,136 (825) million. At the end of the quarter, the order backlog totaled SEK 832 (692) million.
Net sales increased 37 percent to SEK 336 (244) million. For the first nine months, net sales increased 16 percent to SEK 966 (834) million. Net sales for the quarter were negatively impacted by currency effects of SEK 12 million, and the first nine months negatively by SEK 28 million.
The gross margin for the quarter amounted to 40 (41) percent and 41 (44) percent for the first nine months.
High Volume's EBIT amounted to SEK 47 (41) million, corresponding to an EBIT margin of 14 (17) percent. EBIT for the first nine months of the year was SEK 147 (142) million, corresponding to an EBIT margin of 15 (17) percent.
R&D costs for the quarter amounted to SEK 39 (33) million and SEK 107 (98) million for the first nine months. The capitalization of development costs amounted to SEK 1 (-) million for the quarter and SEK 4 (-) million for the first nine months.
After the end of the period, the division completed the acquisition of Modus High-Tech Electronics GmbH, based in Düsseldorf, which operates in the field of automatic optical inspection of coating, soldering and components in PCB assembly. Modus' net sales in 2023 amounted to EUR 4 million.
GLOBAL TECHNOLOGIES
| Q3 | Jan-Sep | Rolling | Jan-Dec | ||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 12 month | 2023 | ||
| Order intake, SEK million | 411 | 250 | 894 | 684 | 1,196 | 987 | |
| Order backlog, SEK million | 457 | 305 | 457 | 305 | 457 | 297 | |
| Net Sales, SEK million | 284 | 216 | 735 | 618 | 1,045 | 928 | |
| Gross profit, SEK million | 98 | 80 | 276 | 221 | 398 | 343 | |
| Gross margin, % | 34.5% | 36.9% | 37.6% | 35.8% | 38.0% | 37.0% | |
| EBIT, SEK million | 13 | 10 | 27 | 22 | 64 | 59 | |
| EBIT margin, % | 4.7% | 4.6% | 3.7% | 3.6% | 6.1% | 6.3% | |
| EBITDA | 30 | 25 | 76 | 66 | 126 | 117 | |
| R&D expenditures, SEK million | -25 | -22 | -71 | -61 | -92 | -82 | |
| R&D costs, SEK million | -33 | -29 | -94 | -81 | -123 | -110 |
The Die Bonding business line reported healthy order intake during the third quarter of the year, with strong demand for high-speed optical transceivers driven by AI applications. Demand was also healthy for PCB Test, driven by printed circuit boards used in advanced servers for training AI models. The third business line, Photonic Interconnects, which was created with the acquisition of Vanguard Automation earlier this year, received its first orders since the acquisition, amounting to SEK 15 million.
Order intake increased 64 percent to SEK 411 (250) million during the quarter. For the first nine months of the year, order intake increased 31 percent to SEK 894 (684) million. At the end of the quarter, the order backlog totaled SEK 457 (305) million.
Net sales increased 31 percent to SEK 284 (216) million. For the first nine months of the year, net sales increased 19 percent to SEK 735 (618) million. Photonic Interconnects has had virtually no impact on net sales since the
acquisition. Net sales for the quarter were negatively impacted by currency effects of SEK 7 million, and the first nine months negatively by SEK 8 million.
The gross margin amounted to 35 (37) percent in the quarter and 38 (36) percent for the first nine months.
EBIT amounted to SEK 13 (10) million, corresponding to an EBIT margin of 5 (5) percent. During the quarter, Photonic Interconnects had a negative impact on EBIT of SEK 14 million. For the first nine months of the year, EBIT increased to SEK 27 (22) million despite a negative impact of SEK 31 million from Photonic Interconnects. The EBIT margin for the first nine months of the year amounted to 4 (4) percent.
R&D costs for the quarter amounted to SEK 33 (29) million and SEK 94 (81) million for the first nine months. Global Technologies did not capitalize any development costs.
Electronics industry
The global electronics industry grew by 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 4.8 percent for the period 2023–20281 . Segments with the strongest expected growth during this five-year period are electronics for data centers, industrial applications, defense & aerospace, medical devices and the automotive industry. The electronics industry is forecast to demonstrate growth of 4.3 percent in 2024. Growth is expected to occur in all segments, except in connected/wireless infrastructure and the automotive industry, which are forecast to decline. In 2024, the semiconductor market is expected to grow 14.7 percent, driven by a recovery in prices for memory chips and growth in data centers and certain consumer segments. Market growth is forecast to be positive during the 2023– 2028 period as a whole, with annual growth of 6.9 percent1 . The display market declined 4.0 percent to USD 118 billion2 , mainly due to lower prices for LCD displays. For 2024, the market is forecast to grow 11.5 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 4.6 percent2 . The long-term trend towards a larger share of advanced AMOLED displays is forecast to continue, albeit at a slower pace, as AMOLED now comprises a large share of the total market.
| Size/growth | 2024F | 2023 | 2022 |
|---|---|---|---|
| Electronics industry, percentual change¹ |
+4.3% | +0.1% | -2.1% |
| Semiconductor industry, percentual change¹ |
+14.7% | -8.0% | +3.1% |
| SMT component mounting, percentual change³ |
NA | -26.5% | -17.9% |
| Dispensing, USD million⁴ | NA | 730 | 930 |
| Displays, USD, billion² | 131 | 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 by 26.5 percent in 2023 to USD 2,250 million. During the first two quarters, the market declined 17.0 percent compared with the same period in 2023. All markets displayed a negative trend, except for China which remained unchanged, with the
largest decreases in Europe, North & 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 5.5 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 by 6.4 percent in 2023, from USD 908 million to USD 966 million5,10. The market performance was positive, 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 total area growth amounts to an average of 2.4 percent per year for 2023–20285 . Stronger growth for AMOLED photomasks is expected, with an annual average area growth of 3.2 percent for 2023-20285 , 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 for laser-based mask writers is also expected to develop positively.
- 1) Prismark, latest forecast September 2024
- 2) Omdia, latest forecast July 2024 3) Protec MDC, July 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, September 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 3,037 (1,903) million for the first nine months of the year. EBIT amounted to SEK 1,215 (367) million.
Cash and cash equivalents at the end of September amounted to SEK 1,841 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 October 24, 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.
This report was reviewed by the company's auditor.
PRESENTATION
Mycronic will hold a presentation at 10:00 a.m. CEST on October 24, 2024, with President and CEO Anders Lindqvist and CFO and Sr VP Corporate Development Pierre Brorsson. The presentation will be webcast.
FINANCIAL CALENDAR
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: [email protected]
Pierre Brorsson CFO and Sr VP Corporate Development Tel: +46 8 638 52 00
E-mail: [email protected]
Sven Chetkovich Director Investor Relations Tel: +46 70 558 39 19
E-mail: [email protected]
Täby, October 24, 2024 Mycronic AB (publ)
Anders Lindqvist President and CEO
Mycronic AB (publ)
Box 3141 SE-183 03 Täby, Sweden Tel: +46 8 638 52 00
www.mycronic.com Reg office: Stockholm Reg no: 556351-2374
Group
| Q3 | Jan-Sep | Rolling | Jan-Dec | ||||
|---|---|---|---|---|---|---|---|
| Consolidated profit and loss accounts in summary, SEK million |
Note | 2024 | 2023 | 2024 | 2023 | 12 month | 2023 |
| Net sales | 5, 6 | 1,780 | 1,274 | 4,999 | 3,738 | 6,967 | 5,706 |
| Cost of goods sold | -822 | -650 | -2,284 | -1,945 | -3,189 | -2,850 | |
| Gross profit | 958 | 623 | 2,715 | 1,792 | 3,778 | 2,855 | |
| Research and development | 7 | -179 | -158 | -531 | -480 | -704 | -653 |
| Selling expenses | -148 | -130 | -456 | -496 | -617 | -658 | |
| Administrative expenses | -80 | -72 | -259 | -232 | -365 | -338 | |
| Other income and expenses | -4 | -1 | 25 | 31 | 23 | 28 | |
| EBIT | 547 | 263 | 1,494 | 615 | 2,114 | 1,235 | |
| Financial income and expenses | 14 | 5 | 48 | 12 | 63 | 27 | |
| Profit/loss before tax | 560 | 268 | 1,542 | 627 | 2,177 | 1,262 | |
| Tax | -112 | -64 | -318 | -141 | -443 | -266 | |
| Net Profit/loss | 448 | 204 | 1,223 | 486 | 1,733 | 996 | |
| Earnings per share before dilution, SEK | 4.59 | 2.10 | 12.53 | 5.00 | 17.76 | 10.22 | |
| Earnings per share after dilution, SEK | 4.59 | 2.10 | 12.53 | 5.00 | 17.76 | 10.22 | |
| Results attributable to owners of the Parent | |||||||
| Company | 448 | 205 | 1,223 | 488 | 1,734 | 998 | |
| Results attributable to non-controlling interests | 0 | -1 | 0 | -1 | 0 | -2 | |
| 448 | 204 | 1,223 | 486 | 1,733 | 996 |
| Q3 | Jan-Sep | Rolling | Jan-Dec | ||||
|---|---|---|---|---|---|---|---|
| Consolidated statement of comprehensive income in summary, SEK million |
2024 | 2023 | 2024 | 2023 | 12 month | 2023 | |
| Net Profit/loss | 448 | 204 | 1,223 | 486 | 1,733 | 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 | -57 | -34 | 34 | 27 | -119 | -126 | |
| Changes in cash flow hedges | 51 | 0 | -25 | -48 | 82 | 59 | |
| Total comprehensive income | 443 | 170 | 1,232 | 465 | 1,692 | 925 | |
| Total comprehensive income attributable to owners of the Parent Company |
443 | 172 | 1,231 | 467 | 1,694 | 929 | |
| Total comprehensive income attributable to non controlling interests |
0 | -1 | 1 | -2 | -1 | -4 | |
| 443 | 170 | 1,232 | 465 | 1,692 | 925 |
| Consolidated statements of financial position in summary, SEK million |
Note | 30 Sep 24 | 30 Sep 23 | 31 Dec 23 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 6, 8 | 2,512 | 2,368 | 2,292 |
| Property, plant and equipment | 525 | 509 | 495 | |
| Non-current receivables | 54 | 65 | 58 | |
| Deferred tax assets | 185 | 183 | 175 | |
| Total non-current assets | 3,275 | 3,125 | 3,021 | |
| Current assets | ||||
| Inventories | 6 | 1,974 | 1,732 | 1,602 |
| Trade receivables | 6 | 1,217 | 944 | 1,270 |
| Other current receivables | 378 | 305 | 308 | |
| Cash and cash equivalents | 2,532 | 1,745 | 2,140 | |
| Total current assets | 6,100 | 4,726 | 5,319 | |
| Total assets | 9,376 | 7,851 | 8,340 | |
| EQUITY AND LIABILITIES | ||||
| Equity | 6,071 | 4,818 | 5,282 | |
| Non-current liabilities | ||||
| Non-current interest-bearing liabilities | 131 | 152 | 150 | |
| Deferred tax liabilities | 370 | 324 | 359 | |
| Other non-current liabilities | 95 | 45 | 43 | |
| Total non-current liabilities | 596 | 521 | 551 | |
| Current liabilities | ||||
| Current interest-bearing liabilities | 78 | 69 | 78 | |
| Trade payables | 415 | 403 | 388 | |
| Other current liabilities | 2,216 | 2,040 | 2,041 | |
| Total current liabilities | 2,709 | 2,512 | 2,507 | |
| Total liabilities | 3,305 | 3,033 | 3,058 | |
| Total equity and liabilities | 9,376 | 7,851 | 8,340 |
| Q3 | Jan-Sep | Jan-Dec | ||||
|---|---|---|---|---|---|---|
| Consolidated cash flow statements in summary, SEK million |
2024 | 2023 | 2024 | 2023 | 12 month | 2023 |
| Profit/loss before tax | 560 | 268 | 1,542 | 627 | 2,177 | 1,262 |
| Adjustments for non-cash items and | ||||||
| paid income tax | 52 | 47 | 76 | 95 | 189 | 209 |
| Change in working capital | -514 | -103 | -400 | 323 | -586 | 138 |
| Cash flow from operating activities | 98 | 212 | 1,217 | 1,045 | 1,781 | 1,608 |
| Cash flow from investing activities | -44 | -54 | -307 | -140 | -362 | -195 |
| Cash flow from financing activities | -44 | -40 | -532 | -431 | -549 | -447 |
| Cash flow for the period | 10 | 118 | 378 | 475 | 869 | 966 |
| Cash and cash equivalents, opening balance | 2,535 | 1,632 | 2,140 | 1,274 | 1,745 | 1,274 |
| Exchange difference for cash and cash equivalents | -13 | -6 | 14 | -4 | -82 | -100 |
| Cash and cash equivalents, closing balance | 2,532 | 1,745 | 2,532 | 1,745 | 2,532 | 2,140 |
| Jan-Sep | Jan-Dec | ||
|---|---|---|---|
| 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 | -19 | -17 | -26 |
| Equity-settled share based payments | 16 | 10 | 14 |
| Total comprehensive income | 1,232 | 465 | 925 |
| Closing balance | 6,071 | 4,818 | 5,282 |
| Of which holdings of non-controlling interests | 36 | 38 | 36 |
| Jan-Sep | Jan-Dec | ||
|---|---|---|---|
| Other key figures * | 2024 | 2023 | 2023 |
| Equity per share, SEK | 62.21 | 49.36 | 54.12 |
| Return on equity (rolling 12 months), % | 31.8% | 15.9% | 20.0% |
| Return on capital employed (rolling 12 months), % | 38.7% | 18.6% | 24.3% |
| Net cash, SEK million | 2,323 | 1,523 | 1,912 |
| Average number of employees | 2,122 | 2,024 | 2,027 |
*In addition to the performance indicators presented on page 1. See calculations on page 19.
Parent Company
| Q3 | Jan-Sep | Jan-Dec | ||||
|---|---|---|---|---|---|---|
| Profit/loss accounts in summary, Parent Company, SEK million |
2024 | 2023 | 2024 | 2023 | 12 month | 2023 |
| Net sales | 1,042 | 677 | 3,037 | 1,903 | 4,329 | 3,195 |
| Cost of goods sold | -376 | -303 | -1,123 | -896 | -1,650 | -1,423 |
| Gross profit | 666 | 375 | 1,914 | 1,007 | 2,679 | 1,773 |
| Other operating expenses | -288 | -227 | -699 | -641 | -1,064 | -1,006 |
| EBIT | 378 | 147 | 1,215 | 367 | 1,615 | 767 |
| Result from financial items | 33 | 37 | 89 | 73 | 436 | 421 |
| Profit/loss after financial items | 411 | 185 | 1,304 | 440 | 2,051 | 1,187 |
| Appropriations | - | - | - | - | -74 | -74 |
| Profit/loss before tax | 411 | 185 | 1,304 | 440 | 1,977 | 1,113 |
| Tax | -84 | -35 | -268 | -87 | -341 | -160 |
| Net Profit/loss | 327 | 150 | 1,036 | 353 | 1,637 | 953 |
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
| Statement of comprehensive income, Parent Company, SEK million |
2024 | 2023 | 2024 | 2023 | 12 month | 2023 |
| Net Profit/loss | 327 | 150 | 1,036 | 353 | 1,637 | 953 |
Other comprehensive income - - - - - - Total comprehensive income 327 150 1,036 353 1,637 953
| Balance sheets in summary, Parent Company, SEK million | 30 Sep 24 | 30 Sep 23 | 31 Dec 23 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible and tangible assets | 201 | 159 | 216 |
| Financial assets | 3,312 | 3,058 | 3,056 |
| Total non-current assets | 3,512 | 3,216 | 3,272 |
| Current assets | |||
| Inventories | 926 | 776 | 752 |
| Current receivables | 818 | 742 | 954 |
| Cash and cash equivalents | 1,841 | 844 | 1,371 |
| Total current assets | 3,585 | 2,363 | 3,077 |
| TOTAL ASSETS | 7,097 | 5,580 | 6,349 |
| EQUITY AND LIABILITIES | |||
| Equity | 3,919 | 2,722 | 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 | 1,802 | 1,556 | 1,647 |
| Total current liabilities | 1,805 | 1,556 | 1,647 |
| TOTAL EQUITY AND LIABILITIES | 7,097 | 5,580 | 6,349 |
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
After the end of the period, the High Volume division completed the acquisition of Modus High-Tech Electronics GmbH, based in Düsseldorf, which operates in the field of automatic optical inspection of coating, soldering and components in PCB assembly. Modus' net sales in 2023 amounted to EUR 4 million. After the end of the period, two orders for one SLX each were also received.
NOTE 5 REVENUE FROM CONTRACTS WITH CUSTOMERS
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| Revenue by geographical market, SEK million | 2024 | 2023 | 2024 | 2023 | 12 month | 2023 |
| EMEA | 212 | 218 | 627 | 643 | 903 | 919 |
| North and South America | 208 | 347 | 638 | 836 | 964 | 1,162 |
| Asia | 1,360 | 709 | 3,734 | 2,259 | 5,099 | 3,625 |
| 1,780 | 1,274 | 4,999 | 3,738 | 6,967 | 5,706 | |
| Revenue by type of good/service, SEK million | ||||||
| System | 1,366 | 861 | 3,769 | 2,543 | 5,302 | 4,077 |
| Aftermarket | 414 | 412 | 1,230 | 1,194 | 1,664 | 1,629 |
| 1,780 | 1,274 | 4,999 | 3,738 | 6,967 | 5,706 | |
| Timing of revenue recognition, SEK million | ||||||
| Goods transferred at a point in time | 1,509 | 1,001 | 4,142 | 2,957 | 5,828 | 4,643 |
| Services transferred over time | 271 | 273 | 857 | 780 | 1,139 | 1,063 |
| 1,780 | 1,274 | 4,999 | 3,738 | 6,967 | 5,706 |
NOTE 6 OPERATING SEGMENT REPORTING
| Q3 | Jan-Sep | Jan-Dec | |||||
|---|---|---|---|---|---|---|---|
| SEK million | 2024 | 2023 | 2024 | 2023* | 12 month | 2023* | |
| Net sales by Division | |||||||
| Pattern Generators | 807 | 435 | 2,295 | 1,228 | 3,173 | 2,106 | |
| High Flex | 353 | 378 | 1,002 | 1,059 | 1,478 | 1,535 | |
| High Volume | 336 | 244 | 966 | 834 | 1,272 | 1,140 | |
| Global Technologies | 284 | 216 | 735 | 618 | 1,045 | 928 | |
| Internal net sales between divisions | - | - | - | - | -3 | -3 | |
| 1,780 | 1,274 | 4,999 | 3,738 | 6,967 | 5,706 | ||
| EBIT by Division | |||||||
| Pattern Generators | 498 | 203 | 1,384 | 543 | 1,894 | 1,053 | |
| High Flex | 31 | 60 | 50 | 99 | 146 | 195 | |
| High Volume | 47 | 41 | 147 | 142 | 179 | 173 | |
| Global Technologies | 13 | 10 | 27 | 22 | 64 | 59 | |
| Group functions etc | -44 | -52 | -119 | -194 | -173 | -249 | |
| Effects from IFRS 16 | 1 | 1 | 4 | 3 | 5 | 4 | |
| Group | 547 | 263 | 1,494 | 615 | 2,114 | 1,235 |
| SEK million | 30 Sep 24 | 30 Sep 23 | 31 Dec 23 |
|---|---|---|---|
| Assets by Division | |||
| Capitalized Development Costs | |||
| Pattern Generators | 80 | 62 | 65 |
| High Flex | 81 | 70 | 75 |
| High Volume | 4 | - | - |
| 165 | 133 | 140 | |
| Inventories | |||
| Pattern Generators | 659 | 562 | 519 |
| High Flex | 423 | 401 | 392 |
| High Volume | 587 | 475 | 457 |
| Global Technologies | 306 | 294 | 235 |
| Unrealized profit in inventories | -1 | - | -2 |
| 1,974 | 1,732 | 1,602 | |
| Trade Receivables | |||
| Pattern Generators | 391 | 277 | 571 |
| High Flex | 320 | 280 | 328 |
| High Volume | 343 | 267 | 243 |
| Global Technologies | 163 | 120 | 129 |
| 1,217 | 944 | 1,270 |
*Restated for comparability, see Note 1.
NOTE 7 RESEARCH AND DEVELOPMENT COSTS
| Q3 | Jan-Sep | Jan-Dec | ||||
|---|---|---|---|---|---|---|
| Research and development costs, SEK million | 2024 | 2023 | 2024 | 2023* | 12 month | 2023* |
| R&D expenditures | ||||||
| Pattern Generators | -81 | -60 | -225 | -182 | -299 | -255 |
| High Flex | -46 | -49 | -156 | -159 | -211 | -214 |
| High Volume | -40 | -32 | -110 | -94 | -144 | -128 |
| Global Technologies | -25 | -22 | -71 | -61 | -92 | -82 |
| -192 | -164 | -562 | -495 | -746 | -679 | |
| Capitalization of Development Costs | ||||||
| Pattern Generators | 13 | 5 | 29 | 20 | 36 | 27 |
| High Flex | 9 | 11 | 27 | 25 | 39 | 36 |
| High Volume | 1 | - | 4 | - | 4 | - |
| 23 | 16 | 59 | 44 | 78 | 63 | |
| Amortization of Acquired Technology | ||||||
| High Flex | -1 | -1 | -4 | -4 | -6 | -6 |
| High Volume | - | -1 | - | -4 | 0 | -4 |
| Global Technologies | -8 | -7 | -24 | -21 | -31 | -28 |
| -10 | -10 | -28 | -29 | -37 | -38 | |
| Reported cost | -179 | -158 | -531 | -480 | -704 | -653 |
*Restated for comparability, see Note 1.
NOTE 8 BUSINESS COMBINATIONS
At the beginning of the second quarter 2024, 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. Following this acquisition, Mycronic can provide a broader offering of die bonding and optical packaging solutions to its customers. 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 percent 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 disbursed in 2026.
Work to assign values to acquired assets and liabilities is ongoing and the purchase price allocation is therefore still preliminary as of September 30, 2024. In the preliminary purchase price allocation, intangible assets in the form of 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 September 30, 2024 a contingent consideration has been recorded of EUR 4 million, an equivalent of SEK 48 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 in 2024 is not significant whereas EBIT is negatively impacted by SEK 31 million.
| Vanguard Automation | |
|---|---|
| SEK million | 2024 |
| Acquisition price | |
| Cash paid for the acquisition | 167 |
| Deferred payment | 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 |
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-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|
| Return on equity | 2024 | 2023 | 12 month | 2023 | |
| Net profit/loss (rolling 12 months) | 1,733 | 734 | 1,733 | 996 | |
| Average shareholders' equity | 5,444 | 4,623 | 5,444 | 4,993 | |
| 31.8% | 15.9% | 31.8% | 20.0% | ||
| Return on capital employed | |||||
| Profit/loss before tax (rolling 12 months) | 2,177 | 891 | 2,177 | 1,262 | |
| Financial expenses | 14 | 13 | 14 | 13 | |
| Profit/loss before financial expenses | 2,191 | 903 | 2,191 | 1,275 | |
| Average balance sheet total | 8,613 | 7,392 | 8,613 | 7,840 | |
| Average non-interest-bearing liabilities | 2,954 | 2,526 | 2,954 | 2,599 | |
| Average capital employed | 5,660 | 4,867 | 5,660 | 5,241 | |
| 38.7% | 18.6% | 38.7% | 24.3% | ||
| Book-to-bill | |||||
| Order intake | 5,229 | 4,832 | 6,677 | 6,280 | |
| Net sales | 4,999 | 3,738 | 6,967 | 5,706 | |
| 1.0 | 1.3 | 1.0 | 1.1 | ||
| EBITDA | |||||
| EBIT | 1,494 | 615 | 2,114 | 1,235 | |
| Depreciation/Amortization | 195 | 199 | 260 | 264 | |
| 1,689 | 814 | 2,374 | 1,499 | ||
| Underlying EBIT | |||||
| EBIT | 1,494 | 615 | 2,114 | 1,235 | |
| Acquisition-related costs included in: | |||||
| Cost of goods sold | - | - | - | - | |
| Operating expenses | 52 | 49 | 66 | 63 | |
| 1,546 | 664 | 2,180 | 1,298 | ||
| Equity per share | |||||
| Equity at balance day | 6,071 | 4,818 | 6,071 | 5,282 | |
| No. of outstanding shares at end of period, thousand | 97,590 | 97,597 | 97,590 | 97,597 | |
| 62.21 | 49.36 | 62.21 | 54.12 | ||
| Earnings per share before/after dilution, SEK | |||||
| Net Profit/loss attributable to owners of the Parent Company | 1,223 | 488 | 1,734 | 998 | |
| Average no. of outstanding shares before dilution, thousand | 97,590 | 97,615 | 97,592 | 97,610 | |
| 12.53 | 5.00 | 17.76 | 10.22 | ||
| Average no. of outstanding shares after dilution, thousand | 97,624 | 97,615 | 97,623 | 97,636 | |
| 12.53 | 5.00 | 17.76 | 10.22 | ||
| Net cash, SEK million | |||||
| Cash and cash equivalents | 2,532 | 1,745 | 2,532 | 2,140 | |
| Interest-bearing liabilities | -209 | -222 | -209 | -227 | |
| 2,323 | 1,523 | 2,323 | 1,912 |
| Quarterly data | Q3 24 | Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23* | Q1 23* | Q4 22* |
|---|---|---|---|---|---|---|---|---|
| Order intake | ||||||||
| Pattern Generators | 274 | 1,199 | 645 | 513 | 561 | 804 | 816 | 1,829 |
| High Flex | 385 | 362 | 334 | 359 | 407 | 349 | 386 | 322 |
| High Volume | 389 | 357 | 390 | 276 | 249 | 350 | 226 | 213 |
| Global Technologies | 411 | 207 | 277 | 303 | 250 | 246 | 189 | 164 |
| Internal order intake between divisions | - | - | - | -3 | - | - | - | - |
| 1,459 | 2,125 | 1,645 | 1,448 | 1,467 | 1,748 | 1,617 | 2,529 | |
| Order Backlog | ||||||||
| Pattern Generators | 2,891 | 3,424 | 2,876 | 3,068 | 3,433 | 3,307 | 2,945 | 2,480 |
| High Flex | 199 | 167 | 158 | 120 | 239 | 209 | 207 | 155 |
| High Volume | 832 | 778 | 741 | 662 | 692 | 688 | 584 | 700 |
| Global Technologies | 457 | 330 | 327 | 297 | 305 | 272 | 236 | 239 |
| 4,379 | 4,700 | 4,102 | 4,149 | 4,669 | 4,475 | 3,972 | 3,574 | |
| Net Sales | ||||||||
| Pattern Generators | 807 | 650 | 838 | 878 | 435 | 442 | 351 | 455 |
| High Flex | 353 | 353 | 296 | 477 | 378 | 347 | 334 | 446 |
| High Volume | 336 | 320 | 311 | 306 | 244 | 247 | 342 | 373 |
| Global Technologies | 284 | 203 | 247 | 310 | 216 | 209 | 192 | 224 |
| Internal net sales between divisions | - | - | - | -3 | - | - | - | - |
| 1,780 | 1,527 | 1,692 | 1,968 | 1,274 | 1,245 | 1,219 | 1,497 | |
| Gross Profit | ||||||||
| Pattern Generators | 589 | 438 | 635 | 600 | 286 | 283 | 220 | 247 |
| High Flex | 136 | 140 | 107 | 221 | 156 | 132 | 131 | 185 |
| High Volume | 134 | 131 | 128 | 121 | 101 | 108 | 151 | 154 |
| Global Technologies | 98 | 74 | 104 | 122 | 80 | 73 | 68 | 83 |
| 958 | 783 | 974 | 1,063 | 623 | 599 | 570 | 672 | |
| Gross Margin | ||||||||
| Pattern Generators | 72.9% | 67.3% | 75.8% | 68.4% | 65.9% | 64.0% | 62.5% | 54.4% |
| High Flex | 38.6% | 39.7% | 36.1% | 46.2% | 41.3% | 38.1% | 39.3% | 41.5% |
| High Volume | 39.9% | 40.9% | 41.1% | 39.7% | 41.5% | 43.8% | 44.1% | 41.3% |
| Global Technologies | 34.5% | 36.3% | 42.1% | 39.2% | 36.9% | 35.1% | 35.5% | 37.1% |
| 53.8% | 51.3% | 57.6% | 54.0% | 48.9% | 48.1% | 46.8% | 44.9% | |
| R&D expenses | ||||||||
| Pattern Generators | -68 | -65 | -63 | -66 | -56 | -56 | -50 | -60 |
| High Flex | -38 | -48 | -46 | -45 | -40 | -48 | -51 | -58 |
| High Volume | -39 | -35 | -33 | -34 | -33 | -30 | -35 | -30 |
| Global Technologies | -33 | -34 | -27 | -29 | -29 | -28 | -24 | -28 |
| Total R&D expenses | -179 | -182 | -170 | -174 | -158 | -162 | -160 | -175 |
| Selling expenses | -148 | -173 | -135 | -161 | -130 | -193 | -173 | -166 |
| Administrative expenses | -80 | -94 | -85 | -106 | -72 | -88 | -72 | -87 |
| Other income/expenses | -4 | 15 | 15 | -2 | -1 | 15 | 16 | 18 |
| EBIT | 547 | 348 | 599 | 620 | 263 | 170 | 182 | 262 |
| Of which EBIT Pattern Generators | 498 | 342 | 543 | 510 | 203 | 191 | 149 | 154 |
| Of which EBIT High Flex | 31 | 18 | 1 | 96 | 60 | 12 | 26 | 61 |
| Of which EBIT High Volume | 47 | 45 | 55 | 32 | 41 | 41 | 60 | 89 |
| Of which EBIT Global Technologies | 13 | -15 | 30 | 37 | 10 | 9 | 3 | 6 |
| Of which EBIT Group functions etc | -44 | -43 | -31 | -55 | -52 | -85 | -57 | -48 |
| EBIT margin | 30.7% | 22.8% | 35.4% | 31.5% | 20.6% | 13.7% | 14.9% | 17.5% |
| Equity per share | 62.21 | 57.81 | 59.77 | 54.12 | 49.36 | 47.76 | 50.02 | 48.17 |
| Earnings per share before dilution | 4.59 | 2.94 | 5.01 | 5.23 | 2.10 | 1.37 | 1.52 | 2.56 |
| Earnings per share after dilution | ||||||||
| 4.59 | 2.94 | 5.00 | 5.23 | 2.10 | 1.37 | 1.52 | 2.56 | |
| Closing share price | 395.00 | 408.60 | 378.00 | 287.40 | 226.00 | 267.00 | 254.80 | 195.80 |
*Restated for comparability, see Note 1.
THIS REPORT IS A TRANSLATION FROM THE SWEDISH ORIGINAL
Review report
Mycronic AB (publ), corporate identity number 556351-2374
Introduction
We have reviewed the condensed interim report for Mycronic AB (publ) as at September 30, 2024 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden.
The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Stockholm, October 24, 2024
Ernst & Young AB
Anna Svanberg Authorized Public Accountant