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Mycronic Interim / Quarterly Report 2019
2946_10-q_2020-07-23_8f9a79f7-dff6-459d-b76a-30396d9bacf6.pdf
Interim / Quarterly Report
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MYCRONIC
When passion meets innovation
Q3
Interim Report January–September 2019
Strong order intake and launches for the future
"Order intake increased by 52 percent, with strong contributions from both Assembly Solutions and Pattern Generators. The third quarter signaled the launch of Evo, Mycronic's new control platform, which will form a cornerstone of our mask writers and strengthen our customer offering. After the end of the quarter, SLX was launched, which is Mycronic's new mask writer for the semiconductor market," says Anders Lindqvist, President and CEO.
Third quarter
- Order intake increased 52 percent to SEK 1,238 (813) million
- Net sales decreased 18 percent to SEK 900 (1,096) million and 20 percent based on constant exchange rates
- EBIT was SEK 198 (436) million, a decline of 55 percent. The EBIT margin was 22 (40) percent
- The underlying EBIT was SEK 202 (409) million, a decline of 51 percent. The underlying EBIT margin was 22 (37) percent
- Earnings per share were SEK 1.52 (3.55)
January–September
- Order intake increased 22 percent to SEK 2,861 (2,339) million
- Net sales increased 15 percent to SEK 3,125 (2,729) million and 9 percent based on constant exchange rates
- EBIT was SEK 920 (869) million, an increase of 6 percent. The EBIT margin was 29 (32) percent
- The underlying EBIT was SEK 955 (890) million, an increase of 7 percent. The underlying EBIT margin was 31 (33) percent
- Earnings per share amounted to SEK 7.22 (6.77)
Outlook 2019
The Board's assessment remains that consolidated net sales for 2019 will be at a level of SEK 4 billion, excluding any acquisitions made in 2019.
Events after the end of the period
An order was received on October 10 for two Prevision Lite 8 Evo mask writers, which are Mycronic's first orders for this product. On October 18, an order was received for a Prevision 8 Evo mask writer. SLX was launched on October 23, and is Mycronic's new mask writer for the semiconductor industry.
| Group summary | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2018 | ||
|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | |||
| Order intake, SEK million | 1,238 | 813 | 2,861 | 2,339 | 4,164 | 3,642 |
| Net Sales, SEK million | 900 | 1,096 | 3,125 | 2,729 | 4,177 | 3,781 |
| Book-to-bill | 1.4 | 0.7 | 0.9 | 0.9 | 1.0 | 1.0 |
| Order backlog, SEK million | 1,639 | 1,651 | 1,639 | 1,651 | 1,639 | 1,904 |
| Gross margin, % | 51.7% | 60.3% | 58.1% | 58.6% | 55.4% | 55.5% |
| EBIT, SEK million | 198 | 436 | 920 | 869 | 1,071 | 1,020 |
| EBIT margin, % | 21.9% | 39.7% | 29.5% | 31.9% | 25.6% | 27.0% |
| Underlying EBIT margin, % | 22.4% | 37.3% | 30.5% | 32.6% | 27.3% | 28.5% |
| Earnings per share before/after dilution, SEK | 1.52 | 3.55 | 7.22 | 6.77 | 8.55 | 8.09 |
| Cash Flow, SEK million | 118 | -84 | -23 | -607 | 588 | 4 |
| Changes in net sales | ||||||
| Total growth, % | -18% | 123% | 15% | 32% | 14% | 26% |
| Organic growth, % | -20% | 97% | 6% | 23% | 5% | 16% |
| Growth from acquisitions,% | - | 15% | 3% | 8% | 5% | 8% |
| Currency effects, % | 2% | 11% | 5% | 1% | 5% | 2% |
Interim Report January–September 2019
MYCRONIC
CEO comments
These days, I am often asked how Mycronic has been affected by the trade dispute between the USA and China, and how the Assembly Solutions business area has been affected by the slowdown in the electronics industry. In fact, the impact on Mycronic has been limited so far, which is reflected in the 52 percent increase in order intake during the third quarter. In some cases, the effects in the short term may even be
positive, for example when customers in China decide to take back previously outsourced production and therefore need to invest in new production equipment.
During the quarter, the Dispensing division in Assembly Solutions demonstrated a favourable performance in China and broadened its offering and customer base to new segments by adapting products to satisfy market demand. Net sales in the business area grew by 4 percent adjusted for currency effects. Assembly Solutions continues to focus on work to improve profitability and achieve an EBIT margin of above 10 percent. This is for example done by realizing synergies at various levels and by developing the aftermarket business.
Pattern Generators received an order during the third quarter for a limited Prevision 10 mask writer. During the quarter, one mask writer was delivered, compared with two mask writers during the corresponding quarter last year, which led to lower net sales and EBIT margin.
In April, the Prevision Lite 8 became available in the market, after which Evo was launched at the end of the third quarter, representing Mycronic's new control platform. Evo will form a cornerstone of our mask writers and strengthen our customer offering.
On October 23, SLX was launched, a new laser mask writer for the semiconductor industry, which means we are again supplying newly developed systems to this market. We expect good future growth based on long-term and stable trends and a growing need to replace and upgrade the installed base of laser mask writers. With its investments in recent years in the product portfolio for mask writers for displays, Mycronic has established technology and know-how that can be reused, which creates very favorable conditions to also leverage the opportunities in the semiconductor segment. With our existing installed base of semiconductor mask writers with the majority of our customers, we know the market very well and have in-depth expertise of the technical requirements that must be fulfilled. This launch has broadened our customer offering for Pattern Generators and further confirms our position in the market for mask writers.
It is gratifying to see that we are, in many ways, harvesting the fruits of our investments in product development. These investments will continue, even if the distribution between Assembly Solutions and Pattern Generators will shift over time.
Anders Lindqvist, President and CEO
Interim Report January-September 2019
MYCRONIC
Financial performance, Group
| Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2018 | |||
|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | |||
| Order intake, SEK million | 1,238 | 813 | 2,861 | 2,339 | 4,164 | 3,642 |
| Order backlog, SEK million | 1,639 | 1,651 | 1,639 | 1,651 | 1,639 | 1,904 |
| Net Sales, SEK million | 900 | 1,096 | 3,125 | 2,729 | 4,177 | 3,781 |
| Gross profit, SEK million | 465 | 662 | 1,815 | 1,599 | 2,314 | 2,098 |
| Gross margin, % | 51.7% | 60.3% | 58.1% | 58.6% | 55.4% | 55.5% |
| EBIT, SEK million | 198 | 436 | 920 | 869 | 1,071 | 1,020 |
| EBIT margin, % | 21.9% | 39.7% | 29.5% | 31.9% | 25.6% | 27.0% |
| Underlying EBIT, SEK million | 202 | 409 | 955 | 890 | 1,141 | 1,076 |
| Underlying EBIT margin, % | 22.4% | 37.3% | 30.5% | 32.6% | 27.3% | 28.5% |
| EBITDA, SEK million | 270 | 455 | 1,063 | 922 | 1,235 | 1,094 |
MRSI Systems included as of June 1, 2018.
Third quarter
Order intake increased 52 percent to SEK 1,238 (813) million. Assembly Solutions reported continuing strong order intake, with an increase of 59 percent compared with the corresponding period in 2018. Pattern Generators received an order during the quarter for a Prevision 10 mask writer, with production limited to a photomask size of up to generation 8.
Net sales decreased 18 percent to SEK 900 (1,096) million. Organic net sales decreased 20 percent, excluding positive currency effects of SEK 27 million. Assembly Solutions reported growth of 10 percent. During the quarter, Pattern Generators delivered one mask writer, compared with two mask writers in the third quarter of 2018, which led to a decline in net sales of 44 percent.
EBIT for the quarter decreased 55 percent to SEK 198 (436) million, which is primarily a result of fewer deliveries for Pattern Generators. The EBIT margin was 22 (40) percent.
Acquisition-related costs had an adverse effect on earnings for the third quarter of SEK 4 million, compared with a positive SEK 27 million in the corresponding period one year earlier. This includes SEK 36 million attributable to impairment of intangible assets in AEi, and a positive effect of SEK 50 million from a revaluation of contingent considerations attributable to the acquisition of MRSI.
The underlying EBIT fell 51 percent to SEK 202 (409) million, corresponding to an underlying EBIT margin of 22 (37) percent.
January–September
The order intake for the first nine months rose 22 percent to SEK 2,861 (2,339) million, corresponding to growth of 15 percent excluding acquisitions. Assembly Solutions reported continuing favorable growth, with an increase of 34 percent. The order backlog decreased 1 percent to SEK 1,639 million.
Net sales increased 15 percent to SEK 3,125 (2,729) million, where Assembly Solutions in particular contributed to the growth. Organic growth was 6 percent, excluding positive currency effects of SEK 134 million. During the period, Pattern Generators completed delivery of six mask writers and a major upgrade, compared with five mask writers during the corresponding period in 2018.
EBIT rose 6 percent to SEK 920 (869) million, corresponding to an EBIT margin of 29 (32) percent.
Acquisition-related costs amounted to SEK 34 (20) million, and consisted of amortization and impairment of acquired intangible assets and changes in value and revaluation of contingent considerations. The underlying EBIT rose 7 percent to SEK 955 (890) million, corresponding to an underlying EBIT margin of 31 (33) percent.
Cash flow and financial position
Consolidated cash and cash equivalents at the end of September amounted to SEK 826 million, compared with SEK 829 million at the end of 2018. Cash flow amounted to SEK -23 (-607) million for the first nine months of the year. Cash flow from operating activities amounted to SEK 326 (70) million. Working capital tied up increased during the period by SEK 455 (661) million as a result of capital tied up in inventories and trade receivables related to the company's growth. This also included a reduction in current operating liabilities in connection with the delivery of a Prevision system during the first quarter of 2019.
Investments amounted to SEK 69 (420) million, of which SEK 13 (3) million related to the capitalization of product development and SEK 10 million pertained to investments in other intangible assets, including information systems.
Interim Report January–September 2019
MYCRONIC
Investments in tangible assets totaled SEK 47 million and included the refurbishment of new premises in the USA and an upgrade of Mycronic's premises in Täby to a modern environmental standard.
Financing activities utilized SEK 280 (258) million, of which SEK 294 (245) million related to dividends to shareholders paid out during the second quarter.
Financial performance per business area
| Assembly Solutions | Q3 | | Jan-Sep | | Rolling
12 month | Jan-Dec
2018 |
| --- | --- | --- | --- | --- | --- | --- |
| | 2019 | 2018 | 2019 | 2018 | | |
| Order intake, SEK million | 809 | 508 | 2,059 | 1,542 | 2,667 | 2,149 |
| Order backlog, SEK million | 879 | 520 | 879 | 520 | 879 | 507 |
| Net Sales, SEK million | 584 | 533 | 1,687 | 1,391 | 2,308 | 2,012 |
| Gross profit, SEK million | 239 | 216 | 703 | 571 | 971 | 839 |
| Gross margin, % | 40.9% | 40.6% | 41.7% | 41.1% | 42.1% | 41.7% |
| EBIT, SEK million | 46 | 79 | 68 | 52 | 86 | 69 |
| EBIT margin, % | 7.9% | 14.8% | 4.0% | 3.7% | 3.7% | 3.5% |
| Underlying EBIT, SEK million | 50 | 52 | 102 | 72 | 155 | 125 |
| Underlying EBIT margin, % | 8.6% | 9.8% | 6.0% | 5.2% | 6.7% | 6.2% |
| R&D expenditures, SEK million | -79 | -72 | -241 | -225 | -328 | -312 |
| R&D costs, SEK million | -81 | -74 | -244 | -237 | -329 | -322 |
MRSI Systems included as of June 1, 2018.
Assembly Solutions
In the third quarter, order intake for Assembly Solutions was strong and increased 59 percent compared with the corresponding period in 2018. During the first nine months of the year, order intake increased 34 percent compared with the corresponding period last year, with growth of 23 percent excluding acquisitions. The strong order intake contributed to an increase in the backlog of orders by 69 percent to a new record level of SEK 879 (520) million.
Net sales increased 10 percent during the quarter to SEK 584 (533) million. Organic growth was 4 percent, excluding positive currency effects of SEK 27 million. For the nine-month period, net sales increased 21 percent to SEK 1,687 (1,391) million, which corresponds to organic growth of 8 percent, excluding positive currency effects in the amount of SEK 92 million.
During the third quarter, EBIT amounted to SEK 46 (79) million, corresponding to an EBIT margin of 8 (15) percent. This included SEK 36 million in costs attributable to impairment of intangible assets in the form of customer relationships in AEi, due to a slight downward adjustment to growth expectations for the global automotive industry. EBIT also includes a positive effect of SEK 50 million from a revalued earn-out related to the acquisition of MRSI in the second quarter of 2018. MRSI has developed positively with continuing healthy market growth since the acquisition, but the assessment is that the criteria for the contingent consideration have not been met. By comparison, the third quarter of 2018 included a positive effect of SEK 55 million from a revaluation of contingent considerations related to the acquisition of AEi. For the first nine months of the year, EBIT reached SEK 68 (52) million with an EBIT margin of 4 (4) percent.
Acquisition-related costs, including impairment of intangible assets and changes in value of contingent considerations, had a negative impact of SEK 4 million on the result in the third quarter, compared with a positive impact of SEK 27 million in the corresponding period last year. Acquisition-related costs for the first nine months of the year had a negative impact of SEK 34 (20) million on the result.
Underlying EBIT amounted to SEK 50 (52) million in the quarter, corresponding to an EBIT margin of 9 (10) percent. In the first nine months, the underlying EBIT amounted to SEK 102 (72) million, corresponding to an EBIT margin of 6 (5) percent.
Research and development consists of existing product development and investments in future growth. Development costs for the third quarter amounted to SEK 81 (74) million and SEK 244 (237) million for the first nine months.
During the quarter, the business area received a number of orders for several systems as a result of a successful cross sales strategy and has begun to benefit from the compact pick-and-place machine models MY300HX and MY300EX launched earlier this year. The focus for these machines is to
Interim Report January–September 2019
MYCRONIC
achieve high-precision and flexible production with speeds of up to 100,000 components per hour.
| Pattern Generators | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2018 | ||
|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | |||
| Order intake, SEK million | 430 | 304 | 802 | 797 | 1,497 | 1,492 |
| Order backlog, SEK million | 760 | 1,131 | 760 | 1,131 | 760 | 1,397 |
| Net Sales, SEK million | 317 | 563 | 1,438 | 1,338 | 1,869 | 1,769 |
| Gross profit, SEK million | 227 | 445 | 1,113 | 1,028 | 1,343 | 1,259 |
| Gross margin, % | 71.7% | 79.1% | 77.3% | 76.8% | 71.9% | 71.2% |
| EBIT, SEK million | 153 | 357 | 856 | 821 | 990 | 955 |
| EBIT margin, % | 48.2% | 63.5% | 59.5% | 61.3% | 53.0% | 54.0% |
| R&D expenditures, SEK million | -47 | -36 | -157 | -97 | -214 | -154 |
| R&D costs, SEK million | -46 | -36 | -156 | -97 | -213 | -154 |
Pattern Generators
Order intake for the quarter increased 41 percent compared with the third quarter of 2018 and included an order for a limited Prevision 10 system, compared with orders for two multipurpose systems and a major upgrade during the third quarter of 2018. For the first nine months, order intake amounted to SEK 802 (797) million. The order backlog amounted to SEK 760 (1,131) million and includes seven systems, two of which have planned deliveries for 2019 and five for 2020.
One mask writer was delivered in the third quarter compared with two mask writers in the third quarter of the preceding year. During the first nine months of the year, delivery was completed of six mask writers and a major upgrade, compared with five mask writers during the corresponding period in 2018. Net sales decreased 44 percent during the quarter to SEK 317 (563) million. For the first nine months, net sales increased 7 percent to SEK 1,438 (1,338) million. The nine-month period was positively impacted by currency effects of SEK 42 million.
EBIT for the quarter declined 57 percent to SEK 153 (357) million, corresponding to an EBIT margin of 48 (64) percent. The result was affected primarily by lower delivery volumes. Fluctuations between quarters are natural for the business area's operations, as orders for and deliveries of advanced mask writers are irregular. This is why the trend should be considered over a longer period. EBIT for the first nine months of the year increased 4 percent to SEK 856 (821) million, corresponding to an EBIT margin of 60 (61) percent.
Development costs increased to SEK 46 (36) million for the quarter and SEK 156 (97) million for the nine-month period.
The third quarter marked the launch of Evo, Mycronic's new control platform for mask writers. Evo is a new electronics architecture together with new software that enables increased automation, for example in robot solutions and increased production yield for customers in the manufacture of photomasks. Evo also enables a substantial increase in opportunities for data analysis and will be a cornerstone of Mycronic's mask writers in the future.
On October 10, after the end of the period, an order was received for two Prevision Lite 8 Evo mask writers for delivery in 2021, representing Mycronic's first orders for this product. On October 18, an order was received for a Prevision 8 Evo mask writer for delivery in 2020.
SLX was launched on October 23, and is Mycronic's new mask writer for the semiconductor industry. The assessment is that future market growth will be healthy and that the right conditions exist to leverage business opportunities in this segment.
Interim Report January-September 2019
MYCRONIC
The electronics industry
The global electronics industry grew 5.9 percent in 2018 to USD 2,132 billion¹. For 2018, the semiconductor market grew 13.7 percent, corresponding to USD 469 billion¹. This increase can be attributed to the number of semiconductor circuits manufactured and higher prices for memory circuits.
Outlook
Annual growth for the electronics industry is forecast at 3.3 percent for the period 2018–2023¹. Segments with the strongest expected growth during this five-year period are electronics for wireless communication infrastructure, data storage, the automotive industry, consumer electronics and industrial applications. For 2019, growth in the electronics industry is forecast at -0.1 percent. The semiconductor market declined by 15.0 percent¹ in the first half of 2019 compared with the first half of 2018 and is expected to contract by 13.6 percent¹ to USD 405 billion for the full-year 2019. The semiconductor market is expected to grow 7.2 percent in the second half of 2019 compared with the first half of the year and is forecast to be positive during the 2019–2023 period as a whole, with average annual growth of 6.4 percent¹.
| Size/growth | 2019F | 2018 | 2017 |
|---|---|---|---|
| Electronics industry, percentual change¹ | -0.1% | +5.9% | +6.5% |
| Semiconductor industry, percentual change¹ | -13.6% | +13.7% | +21.7% |
| SMT, percentual change² | not available | +17% | +32% |
| Dispensing, USD million³ | not available | 780 | 770 |
| Camera modules, units, million³ | 190 | 165 | 130 |
| Displays, USD, billion⁴ | 105 | 113 | 124 |
| Photomasks, percentual change in value⁵ | +9% | +12% | +18% |
| Photomask area, thousand sq. meters⁵ | 16.3 | 15.9 | 15.4 |
Assembly Solutions
SMT and dispensing market area
The global market for SMT equipment has annual sales of approximately USD 5,300 million⁶. The segment SMT robots for component mounting grew 17 percent in 2018 to USD 3,070 million². The market declined 12 percent in the first half of 2019 compared with the corresponding period in the previous year, driven primarily by a negative trend in Europe, China and Japan. The dispensing equipment market had sales of USD 780 million³ in 2018. Mycronic’s product portfolio comprises production systems for component mounting, non-contact high-speed dispensing of
solder paste, inspection equipment, automated storage solutions, and equipment for dispensing, including coating of circuit boards.
Assembly automation market area
AEi offers automated production solutions for assembly and testing of camera modules. A growing segment within the electronics industry is electronics for the automotive industry, which includes camera modules for advanced driver support, or Advanced Driver Assistance Systems (ADAS). Manufacture of camera modules in 2018 amounted to 165 million units and the forecast for 2023 is for production of 315 million units, corresponding to annual growth of 14 percent³.
MRSI Systems offers die bonding equipment and is operating in a fast-growing sub-segment with extremely high precision.
Pattern Generators
An earlier assessment of the display market for 2019, with growth of 1 percent and stabilization of prices, has been revised to an expectation of growth of -7 percent⁴ and a continuing surplus of displays, which is exerting downward pressure on prices for both LCD and AMOLED displays. The trend toward a larger share of advanced displays will, however, continue. In 2019, AMOLED is expected to grow 7 percent to USD 25 billion⁴, driven by an increased share of AMOLED displays and that more manufacturers are starting to produce displays based on this technology. Meanwhile, the total display area is also increasing, driven by larger screens and more screens in new products.
Photomasks for displays market area
The market grew by 12 percent to USD 814 million in 2018 and the forecast for 2019 is for growth of 9 percent to USD 886 million⁵,⁷. Growth is driven by a higher proportion of advanced photomasks for AMOLED and an increased need for G10 photomasks in China⁵. The forecast for total area growth is an average of 2.3 percent per year for 2018–2023⁵. Strong growth for AMOLED photomasks is expected, with an annual area growth of 19 percent for 2018–2023⁵, which drives the need for photomasks produced by Prevision 80 and Prevision 800 systems.
Interim Report January–September 2019
MYCRONIC
Other
Parent Company
Mycronic AB is the Group's Parent Company.
The Parent Company's net sales for the first nine months amounted to SEK 2,136 (1,931) million. EBIT was SEK 940 (823) million.
Cash and cash equivalents at the end of the third quarter amounted to SEK 425 million, compared with SEK 538 million at the end of 2018.
Financial information
Mycronic AB (publ) is listed on NASDAQ Stockholm, Mid Cap, MYCR. 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 (page 8) on October 24, 2019, at 8:00 a.m.
Financial reports and press releases are published in Swedish and English and are available on www.mycronic.com.
This report was reviewed by the company's auditor.
Financial calendar
| Full-year report 2019 | February 6, 2020 |
|---|---|
| Interim Report January-March 2020 | April 23, 2020 |
| Annual General Meeting | May 7, 2020 |
| Interim Report January-June 2020 | July 16, 2020 |
| Interim Report January-September 2020 | October 22, 2020 |
| Full-year report 2020 | February 10, 2021 |
Täby, October 24, 2019
Mycronic AB (publ)
Anders Lindqvist
President and CEO
Interim Report January–September 2019
MYCRONIC
Mycronic's vision
The business partner of choice, enabling the future of electronics.
Mycronic's mission
- We aim to be the market leader within our key segments across the globe
- We continuously improve and develop innovative solutions, products and services to meet the changing needs of our customers
- We do not compromise with our goal to deliver sustainable growth, profitability and shareholder value
- We meet our challenging goals by engaging the passion and talent of people dedicated to deliver
Mycronic's long-term financial goals announced in February 2017
Growth
Consolidated net sales including acquisitions will reach SEK 5 billion at the end of the business plan period, four to seven years.
Profitability
EBIT will exceed 15 percent of net sales over a business cycle.
Capital structure
Net debt should be less than 3 times the average EBITDA (earnings before interest, tax, depreciation, and amortization). The average is calculated over three years.
Mycronic's dividend policy
The objective of the company is to provide both good returns and value growth. Between 30 and 50 percent of net profit will be distributed to the shareholders, provided the company has a net debt lower than 3 times EBITDA after stipulated dividend. In each case, account shall be taken of the Company's financial position, profitability trends, growth potential and future investment needs.
About Mycronic
Mycronic AB is a Swedish high-tech company engaged in the development, manufacture and marketing of production equipment with high precision and flexibility requirements for the electronics industry. Mycronic's headquarters are located in Täby, north of Stockholm and the Group has subsidiaries in France, Japan, China, the Netherlands, Singapore, the United Kingdom, South Korea, Germany and the USA. Mycronic (MYCR) is listed on Nasdaq Stockholm. www.mycronic.com
For further information, please contact
Anders Lindqvist
President and CEO
+46 8 638 52 00
[email protected]
Torbjörn Wingårdh
CFO
+46 8 638 52 00
[email protected]
Sven Chetkovich
Acting Director IR & Corporate Communications
+46 70 558 39 19
[email protected]
Mycronic AB (publ)
PO Box 3141
SE-183 03 Täby, Sweden
Phone: +46 8 638 52 00
Fax: +46 8 638 52 90
www.mycronic.com
Reg office: Stockholm
Reg no: 556351-2374
VAT no: SE556351237401
Interim Report January–September 2019
MYCRONIC
Group
| Consolidated profit and loss accounts, SEK million | Note | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2018 | ||
|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | ||||
| Net sales | 5, 6 | 900.5 | 1,096.4 | 3,125.3 | 2,729.0 | 4,176.9 | 3,780.6 |
| Cost of goods sold | -435.0 | -434.8 | -1,310.3 | -1,129.9 | -1,863.4 | -1,683.1 | |
| Gross profit | 465.5 | 661.6 | 1,815.1 | 1,599.1 | 2,313.5 | 2,097.5 | |
| Research and development | 7 | -127.4 | -109.6 | -400.1 | -334.2 | -542.0 | -476.1 |
| Selling expenses | -152.6 | -109.6 | -392.9 | -288.2 | -525.6 | -420.8 | |
| Administrative expenses | -54.8 | -55.4 | -171.3 | -166.4 | -233.0 | -228.1 | |
| Other income and expenses | 66.9 | 48.6 | 69.8 | 59.0 | 58.3 | 47.6 | |
| EBIT | 1 | 197.5 | 435.6 | 920.5 | 869.3 | 1,071.2 | 1,020.0 |
| Financial income and expenses | 1 | 0.0 | -0.3 | -1.6 | -6.5 | -4.1 | -8.9 |
| Profit/loss before tax | 197.4 | 435.3 | 918.9 | 862.8 | 1,067.1 | 1,011.1 | |
| Tax | 1 | -48.3 | -88.0 | -211.9 | -200.4 | -230.1 | -218.6 |
| Net Profit/loss | 149.1 | 347.3 | 706.9 | 662.4 | 837.0 | 792.5 | |
| Earnings per share before/after dilution, SEK | 1.52 | 3.55 | 7.22 | 6.77 | 8.55 | 8.09 | |
| Average number of shares, thousand | 97,917 | 97,917 | 97,917 | 97,917 | 97,917 | 97,917 | |
| Company | 146.8 | 347.1 | 702.3 | 662.1 | 829.8 | 789.5 | |
| Results attributable to non-controlling interests | 2.3 | 0.20 | 4.6 | 0.3 | 7.2 | 2.9 | |
| 149.1 | 347.3 | 706.9 | 662.4 | 837.0 | 792.5 | ||
| Consolidated statement of comprehensive income, SEK million | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2018 | |||
| --- | --- | --- | --- | --- | --- | --- | |
| 2019 | 2018 | 2019 | 2018 | ||||
| Net Profit/loss | 149.1 | 347.3 | 706.9 | 662.4 | 837.0 | 792.5 | |
| Other comprehensive income | |||||||
| Items not to be reclassified to profit/loss, after tax | |||||||
| Actuarial profit/loss from defined benefits to employees | - | - | - | - | -2.0 | -2.0 | |
| Items to be reclassified to profit/loss, after tax | |||||||
| Translation differences at translating foreign entities | 61.8 | -45.1 | 122.6 | 50.3 | 147.7 | 75.3 | |
| Hedging of net investment in foreign entities | -4.7 | 10.5 | -12.7 | -3.3 | -15.5 | -6.1 | |
| Changes in cash flow hedges | -14.2 | 15.7 | -13.1 | -16.3 | -12.9 | -16.1 | |
| Total comprehensive income | 192.0 | 328.4 | 803.8 | 693.2 | 954.2 | 843.6 | |
| Total comprehensive income attributable to owners of the Parent Company | 189.5 | 328.2 | 799.1 | 692.9 | 946.8 | 840.7 | |
| Total comprehensive income attributable to non-controlling interests | 2.4 | 0.2 | 4.8 | 0.3 | 7.4 | 2.9 | |
| 192.0 | 328.4 | 803.8 | 693.2 | 954.2 | 843.6 |
Interim Report January–September 2019
MYCRONIC
| Consolidated statements of financial position, SEK million | Note | 30 Sep 19 | 30 Sep 18 | 31 Dec 18 |
|---|---|---|---|---|
| ASSETS | ||||
| Fixed assets | ||||
| Intangible assets | 1,412.1 | 1,374.5 | 1,380.6 | |
| Tangible assets | 1 | 282.6 | 97.9 | 106.0 |
| Non-current receivables | 60.0 | 22.1 | 22.5 | |
| Deferred tax assets | 1 | 108.4 | 85.4 | 83.4 |
| Total fixed assets | 1,863.1 | 1,579.9 | 1,592.5 | |
| Current assets | ||||
| Inventories | 1,085.4 | 923.0 | 868.2 | |
| Trade receivables | 773.7 | 792.8 | 663.9 | |
| Other current receivables | 1 | 235.6 | 251.2 | 246.1 |
| Cash and cash equivalents | 826.2 | 215.9 | 828.6 | |
| Total current assets | 2,921.0 | 2,182.9 | 2,606.8 | |
| Total assets | 4,784.1 | 3,762.7 | 4,199.3 | |
| EQUITY AND LIABILITIES | ||||
| Equity | 1 | 2,883.1 | 2,228.5 | 2,379.0 |
| Long-term liabilities | ||||
| Long-term interest-bearing liabilities | 1 | 142.3 | - | - |
| Deferred tax liabilities | 160.5 | 296.8 | 162.7 | |
| Other non-current liabilities | 51.4 | 113.0 | 97.9 | |
| Total long-term liabilities | 354.1 | 409.8 | 260.6 | |
| Short-term liabilities | ||||
| Short-term interest-bearing liabilities | 1 | 68.4 | 0.9 | 1.3 |
| Trade payables | 274.2 | 264.9 | 236.4 | |
| Other current liabilities | 1,204.3 | 858.5 | 1,322.1 | |
| Total current liabilities | 1,546.9 | 1,124.4 | 1,559.7 | |
| Total liabilities | 1,901.0 | 1,534.2 | 1,820.3 | |
| Total equity and liabilities | 4,784.1 | 3,762.7 | 4,199.3 |
Interim Report January–September 2019
MYCRONIC
| Consolidated cash flow statements, SEK million | Note | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2018 | ||
|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | ||||
| Cash flow from operating activities | |||||||
| before changes in working capital | 102.9 | 369.4 | 781.4 | 731.7 | 977.3 | 927.6 | |
| Change in working capital | -0.8 | -261.5 | -455.0 | -661.4 | -18.8 | -225.2 | |
| Cash flow from operating activities | 1 | 102.1 | 107.9 | 326.4 | 70.3 | 958.5 | 702.4 |
| Cash flow from investing activities | -24.7 | -37.9 | -69.1 | -419.5 | -90.1 | -440.5 | |
| Cash flow from financing activities | 1 | 41.0 | -154.0 | -279.9 | -258.1 | -280.0 | -258.2 |
| Cash flow for the period | 1 | 118.5 | -84.0 | -22.5 | -607.3 | 588.4 | 3.7 |
| Cash and cash equivalents, opening balance | 696.2 | 306.4 | 828.6 | 812.7 | 215.9 | 812.7 | |
| Exchange difference for cash and cash equivalents | 11.5 | -6.5 | 20.2 | 10.5 | 21.9 | 12.2 | |
| Cash and cash equivalents, closing balance | 826.2 | 215.9 | 826.2 | 215.9 | 826.2 | 828.6 | |
| Jan-Sep | Jan-Dec | ||||||
| --- | --- | --- | --- | ||||
| Consolidated statement of changes in equity, SEK million | 2019 | 2018 | 2018 | ||||
| Opening balance | 2,379.0 | 1,780.2 | 1,780.2 | ||||
| Dividend to owners | -293.7 | -244.8 | -244.8 | ||||
| Dividend to non-controlling interests | -5.9 | - | - | ||||
| Total comprehensive income | 803.8 | 693.2 | 843.6 | ||||
| Closing balance | 2,883.1 | 2,228.5 | 2,379.0 | ||||
| Of which holdings of non-controlling interests | 7.0 | 0.3 | 2.9 | ||||
| Jan-Sep | Jan-Dec | ||||||
| --- | --- | --- | --- | ||||
| Other key figures * | 2019 | 2018 | 2018 | ||||
| Equity per share, SEK | 29.44 | 22.76 | 24.30 | ||||
| Return on equity (rolling 12 months), % | 32.7% | 47.4% | 38.1% | ||||
| Return on capital employed (rolling 12 months), % | 40.5% | 62.4% | 49.0% | ||||
| Net cash, SEK million | 615.5 | 215.0 | 827.3 | ||||
| Average number of employees | 1,327 | 1,140 | 1,175 |
*In addition to key figures presented on page 1
Interim Report January–September 2019
MYCRONIC
Parent Company
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| Profit/loss accounts in summary, Parent Company, SEK million | 2019 | 2018 | 2019 | 2018 | 12 month | 2018 |
| Net sales | 518.1 | 741.0 | 2,135.6 | 1,930.5 | 2,826.3 | 2,621.1 |
| Cost of goods sold | -217.4 | -231.0 | -777.4 | -697.7 | -1,155.7 | -1,076.0 |
| Gross profit | 300.7 | 510.0 | 1,358.3 | 1,232.8 | 1,670.5 | 1,545.1 |
| Other operating expenses | -102.1 | -165.5 | -418.7 | -409.9 | -611.1 | -602.3 |
| EBIT | 198.6 | 344.4 | 939.6 | 823.0 | 1,059.4 | 942.8 |
| Result from financial items | 26.1 | 3.1 | 36.4 | 5.1 | 56.9 | 25.6 |
| Profit/loss after financial items | 224.7 | 347.5 | 976.0 | 828.1 | 1,116.3 | 968.4 |
| Appropriations | - | - | - | - | -234.9 | -234.9 |
| Profit/loss before tax | 224.7 | 347.5 | 976.0 | 828.1 | 881.4 | 733.5 |
| Tax | -48.1 | -77.8 | -209.3 | -187.9 | -182.2 | -160.8 |
| Net Profit/loss | 176.6 | 269.7 | 766.6 | 640.2 | 699.2 | 572.7 |
| Total comprehensive income | 176.6 | 269.7 | 766.6 | 640.2 | 699.2 | 572.7 |
| Balance sheets in summary, Parent Company, SEK million | 30 Sep 19 | 30 Sep 18 | 31 Dec 18 | |||
| --- | --- | --- | --- | |||
| ASSETS | ||||||
| Fixed assets | ||||||
| Intangible and tangible assets | 69.8 | 47.4 | 55.5 | |||
| Financial assets | 1,927.8 | 1,731.8 | 1,765.9 | |||
| Total fixed assets | 1,997.6 | 1,779.2 | 1,821.4 | |||
| Current assets | ||||||
| Inventories | 464.7 | 487.7 | 446.2 | |||
| Current receivables | 824.3 | 726.9 | 639.1 | |||
| Cash and cash equivalents | 424.9 | 12.8 | 538.1 | |||
| Total current assets | 1,713.9 | 1,227.4 | 1,623.5 | |||
| TOTAL ASSETS | 3,711.6 | 3,006.6 | 3,444.9 | |||
| EQUITY AND LIABILITIES | ||||||
| Equity | 2,109.2 | 1,703.7 | 1,636.3 | |||
| Untaxed reserves | 645.7 | 410.8 | 645.7 | |||
| Long-term interest-bearing liabilities | 39.6 | - | - | |||
| Other non-current liabilities | 4.6 | 211.2 | 7.4 | |||
| Total long-term liabilities | 44.2 | 211.2 | 7.4 | |||
| Short-term interest bearing liabilities | 20.3 | - | - | |||
| Other current liabilities | 892.2 | 680.9 | 1,155.5 | |||
| Total current liabilities | 912.5 | 680.9 | 1,155.5 | |||
| TOTAL EQUITY AND LIABILITIES | 3,711.6 | 3,006.6 | 3,444.9 |
Interim Report January–September 2019
MYCRONIC
Notes
Note 1 Accounting policies
This interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting together 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 with the exception of the changes described below. The accounting principles of the segments are the same as for the Group with the exception of IFRS 16 Leases, see below.
The nature of financial assets and liabilities is in all material respects the same as on December 31, 2018. As was the case at the end of 2018, the carrying amounts and fair values are deemed to essentially correspond with one another.
Effects of IFRS 16 Leases
As of January 1, 2019, IFRS 16 Leases replaces the previous standard, IAS 17 Leases and the associated interpretations IFRIC 4, SIC 15 and SIC 27. IFRS 16 entails that a majority of all leases are recognized in the statement of financial position. When the standard came into force, Mycronic applied the modified retrospective approach, entailing that comparative information from prior periods is not presented. The lease liability comprised the discounted remaining lease payments at January 1, 2019. For all leases, the right-of-use asset was an amount corresponding to the lease liability adjusted for prepaid or accrued lease payments recognized in the statement of financial position on the first day of application. Accordingly, the transition to IFRS 16 had no effect on equity.
Mycronic has elected to apply the practical exemptions regarding leases where the underlying asset has a low value and for leases with a lease term of less than 12 months. These leases are not included in amounts recognized in the statement of financial position. Nor are leases included that were originally of a term longer than 12 months but which end in 2019. Mycronic's material leases currently primarily comprise rented premises, but also vehicles and office equipment. Rented premises are presented as one class of underlying assets, and vehicles and office equipment under Other, as they are not considered material individually. In the transition to IFRS 16, these leases are recognized in the statement of financial position, which involves an increase in the Group's total assets as a result of the addition of right-of-use assets and lease liabilities. The lease payments recognized earlier as other external expenses have been replaced by depreciation costs for the right-of-use assets, which are recognized in EBIT and interest on the lease liability, which is recognized as a financial expense. The lease fee is divided between repayment of the lease liability and payment of interest.
The Parent Company utilizes the exception included in RFR 2 Accounting for Legal Entities and all leases have continued to be recognized as operating leases. Moreover, IFRS 16 is not applied in segment reporting.
In the transition to IFRS 16, all remaining lease payments were measured at present value applying Mycronic's incremental borrowing rate. The average borrowing rate on January 1, 2019 was 1.3 percent. When the standard came into force, the following adjustments were recognized in the Group's statement of financial position:
| Right-of-use assets | SEK 179.5 million |
|---|---|
| of which Rented premises | SEK 168.4 million |
| Prepaid expenses | SEK -5.4 million |
| Lease liabilities | SEK 174.1 million |
Reconciliation of operating lease obligations, SEK million
| Future lease charges for operating leases as of December 31 2018 | 193.0 |
|---|---|
| Adjustment of IAS 17 lease payments | -5.4 |
| Contracts regarding short-term leases charged against profit | -7.3 |
| Contracts regarding leases of low value assets charged against profit | -1.0 |
| Discounting with the application of the Group's incremental borrowing rate | -5.2 |
Reported lease liability as of January 1 2019 174.1
Interim Report January-September 2019
MYCRONIC
The effects of the new standard are shown in the tables below.
| Effects on consolidated profit and loss accounts, SEK million | Q3 2019 | Jan-Sep 2019 |
|---|---|---|
| EBIT | 0.0 | -0.3 |
| Financial income and expenses | -0.5 | -1.5 |
| Tax | 0.0 | 0.1 |
| Net Profit/loss | -0.5 | -1.7 |
| EBITDA | 13.5 | 39.2 |
| Effects on Group statements of financial position, SEK million | 30 Sep 2019 | |
| --- | --- | |
| ASSETS | ||
| Tangible assets | 154.0 | |
| Deferred tax assets | 0.1 | |
| Total fixed assets | 154.1 | |
| Other current receivables | -5.4 | |
| Total assets | 148.7 | |
| EQUITY AND LIABILITIES | ||
| Net profit/loss | -1.7 | |
| Total equity | -1.7 | |
| Long-term interest-bearing liabilities | 102.7 | |
| Short-term interest-bearing liabilities | 47.7 | |
| Total liabilities | 150.4 | |
| Total equity and liabilities | 148.7 | |
| Effects on consolidated cash flow statements, SEK million | Q3 2019 | Jan-Sep 2019 |
| --- | --- | --- |
| Cash flow from operating activities | 13.4 | 39.2 |
| Cash flow from financing activities | -13.4 | -39.2 |
| Cash flow for the period | 0.0 | 0.0 |
Note 2 Transactions with related parties
Transactions with related parties are described in Note 13 of the 2018 Annual Report. The scope and focus of these transactions did not change significantly during the period.
Note 3 Risks and uncertainty factors
There are a number of risks and uncertainty factors of an operational and financial character to which the Group is exposed through its operations, these are described in the 2018 Annual Report. 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
An order was received on October 10 for two Prevision Lite 8 Evo mask writers, which are Mycronic's first orders for this product. On October 18, an order was received for a Prevision 8 Evo mask writer. SLX was launched on October 23, and is Mycronic's new mask writer for the semiconductor market.
Interim Report January–September 2019
MYCRONIC
Note 5 Revenue from Contracts with Customers
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| Revenue by geographical market, SEK million | 2019 | 2018 | 2019 | 2018 | 12 month | 2018 |
| EMEA | 189.8 | 164.8 | 517.3 | 532.4 | 741.4 | 756.5 |
| North and South America | 145.0 | 115.0 | 782.5 | 350.9 | 1,121.1 | 689.6 |
| Asia | 565.6 | 816.7 | 1,825.6 | 1,845.6 | 2,314.4 | 2,334.5 |
| 900.5 | 1,096.4 | 3,125.3 | 2,729.0 | 4,176.9 | 3,780.6 | |
| Revenue by type of good/service, SEK million | ||||||
| System | 600.5 | 743.0 | 2,245.1 | 1,910.6 | 3,011.9 | 2,677.4 |
| Aftermarket | 300.0 | 353.4 | 880.2 | 818.4 | 1,165.0 | 1,103.2 |
| 900.5 | 1,096.4 | 3,125.3 | 2,729.0 | 4,176.9 | 3,780.6 | |
| Timing of revenue recognition, SEK million | ||||||
| Goods transferred at a point in time | 700.5 | 925.2 | 2,550.3 | 2,252.7 | 3,423.5 | 3,125.9 |
| Services transferred over time | 200.0 | 171.2 | 575.0 | 476.3 | 753.4 | 654.7 |
| 900.5 | 1,096.4 | 3,125.3 | 2,729.0 | 4,176.9 | 3,780.6 |
Note 6 Segment reporting
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| SEK million | 2019 | 2018 | 2019 | 2018 | 12 month | 2018 |
| Net sales | ||||||
| Assembly Solutions | 583.8 | 533.1 | 1,686.9 | 1,390.6 | 2,308.2 | 2,011.9 |
| Pattern Generators | 316.7 | 563.4 | 1,438.5 | 1,338.4 | 1,868.8 | 1,768.7 |
| 900.5 | 1,096.4 | 3,125.3 | 2,729.0 | 4,176.9 | 3,780.6 | |
| EBIT | ||||||
| Assembly Solutions | 45.9 | 79.1 | 67.8 | 51.5 | 85.8 | 69.5 |
| Pattern Generators | 152.7 | 357.5 | 856.0 | 820.8 | 989.8 | 954.6 |
| Amortization of previously acquired intangible assets | -1.0 | -1.0 | -3.0 | -3.0 | -4.0 | -4.0 |
| Group | 197.5 | 435.6 | 920.5 | 869.3 | 1,071.2 | 1,020.0 |
Interim Report January–September 2019
MYCRONIC
Note 7 Research and development expenses
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| Research and development costs, SEK million | 2019 | 2018 | 2019 | 2018 | 12 month | 2018 |
| R&D expenditures | ||||||
| Assembly Solutions | -78.8 | -71.6 | -241.0 | -224.7 | -327.8 | -311.5 |
| Pattern Generators | -47.5 | -35.9 | -157.2 | -97.2 | -214.4 | -154.5 |
| -125.8 | -107.5 | -398.2 | -322.0 | -542.3 | -466.0 | |
| Capitalization of development costs | ||||||
| Assembly Solutions | 2.5 | 2.7 | 11.8 | 3.0 | 18.8 | 10.0 |
| Pattern Generators | 1.0 | - | 1.5 | - | 1.5 | - |
| Amortization of capitalized development* | ||||||
| Assembly Solutions | - | - | - | -3.7 | - | -3.7 |
| 3.6 | 2.7 | 13.3 | -0.7 | 20.3 | 6.3 | |
| Amortization of acquired technology | ||||||
| Assembly Solutions | -5.1 | -4.8 | -15.2 | -11.6 | -20.1 | -16.5 |
| Reported cost | -127.4 | -109.6 | -400.1 | -334.2 | -542.0 | -476.1 |
*From the third quarter of 2018, the amortization of capitalized development costs is included in the acquisition cost of inventories, which by extension impacts the cost of goods sold in the Group. Given that the amortization is for relatively insignificant amounts, the comparative figures were not restated.
Interim Report January-September 2019
MYCRONIC
Note 8 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 divided by the number of shares at the end of the period. Used to show a company's results per share.
EBITDA
Operating result (EBIT) before depreciation and amortization, interest and tax. EBITDA is a component used in expressing the company's financial goals and dividend policy.
Equity per share
Equity on balance day divided by the number of 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 aftermarket, 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, recalculated to the previous year's currency 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 profit/loss excluding acquisition-related costs. 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.
Interim Report January-September 2019
MYCRONIC
| Jan-Sep | Rolling | Jan-Dec | ||
|---|---|---|---|---|
| Return on equity | 2019 | 2018 | 12 month | 2018 |
| Net profit/loss (rolling 12 months) | 837.0 | 889.8 | 837.0 | 792.5 |
| Average shareholders' equity | 2,555.8 | 1,878.8 | 2,555.8 | 2,079.6 |
| 32.7% | 47.4% | 32.7% | 38.1% | |
| Return on capital employed | ||||
| Profit/loss before tax (rolling 12 months) | 1,067.1 | 1,166.2 | 1,067.1 | 1,011.1 |
| Financial expenses | 10.3 | 10.9 | 10.3 | 11.5 |
| Profit/loss before financial expenses | 1,077.4 | 1,177.1 | 1,077.4 | 1,022.6 |
| Average balance sheet total | 4,273.4 | 3,341.1 | 4,273.4 | 3,721.8 |
| Average non-interest-bearing liabilities | 1,611.8 | 1,455.7 | 1,611.8 | 1,635.3 |
| Average capital employed | 2,661.6 | 1,885.4 | 2,661.6 | 2,086.5 |
| 40.5% | 62.4% | 40.5% | 49.0% | |
| Book-to-bill | ||||
| Order intake | 2,860.7 | 2,338.9 | 4,163.7 | 3,641.9 |
| Net sales | 3,125.3 | 2,729.0 | 4,176.9 | 3,780.6 |
| 0.9 | 0.9 | 1.0 | 1.0 | |
| EBITDA | ||||
| EBIT | 920.5 | 869.3 | 1,071.2 | 1,020.0 |
| Depreciation/Amortization | 142.2 | 52.6 | 163.5 | 73.9 |
| 1,062.7 | 921.9 | 1,234.7 | 1,093.9 | |
| Underlying EBIT | ||||
| EBIT | 920.5 | 869.3 | 1,071.2 | 1,020.0 |
| Acquisition-related costs included in: | ||||
| Cost of goods sold | - | 15.0 | 3.7 | 18.6 |
| Operating expenses | 34.1 | 5.3 | 65.8 | 37.0 |
| 954.6 | 889.6 | 1,140.7 | 1,075.6 | |
| Equity per share | ||||
| Equity at balance day | 2,883.1 | 2,228.5 | 2,883.1 | 2,379.0 |
| No. of shares at end of period, thousand | 97,917 | 97,917 | 97,917 | 97,917 |
| 29.44 | 22.76 | 29.44 | 24.30 | |
| Earnings per share | ||||
| Net Profit/loss | 706.9 | 662.4 | 837.0 | 792.5 |
| No. of shares at end of period, thousand | 97,917 | 97,917 | 97,917 | 97,917 |
| 7.22 | 6.77 | 8.55 | 8.09 | |
| Net cash, SEK million | ||||
| Cash and cash equivalents | 826.2 | 215.9 | 826.2 | 828.6 |
| Interest-bearing liabilities | -210.7 | 0.9 | -210.7 | -1.3 |
| 615.5 | 215.0 | 615.5 | 827.3 |
Interim Report January–September 2019
MYCRONIC
| Quarterly data | Q3 19 | Q2 19 | Q1 19 | Q4 18 | Q3 18 | Q2 18 | Q1 18 | Q4 17* |
|---|---|---|---|---|---|---|---|---|
| Order Intake Assembly Solutions | 808.9 | 684.6 | 565.6 | 607.7 | 508.4 | 553.5 | 479.9 | 374.4 |
| Order Intake Pattern Generators | 429.5 | 216.5 | 155.7 | 695.4 | 304.2 | 316.9 | 176.0 | 197.6 |
| 1,238.4 | 901.1 | 721.3 | 1,303.1 | 812.5 | 870.5 | 655.9 | 571.9 | |
| Order Backlog Assembly Solutions | 878.7 | 653.9 | 553.0 | 506.6 | 519.8 | 544.9 | 391.1 | 290.3 |
| Order Backlog Pattern Generators | 760.3 | 647.0 | 971.9 | 1,397.0 | 1,131.0 | 1,390.1 | 1,477.1 | 1,672.3 |
| 1,638.9 | 1,300.9 | 1,524.9 | 1,903.6 | 1,650.8 | 1,935.0 | 1,868.2 | 1,962.6 | |
| Net Sales Assembly Solutions | 583.8 | 579.0 | 524.1 | 621.3 | 533.1 | 478.5 | 379.0 | 472.9 |
| Net Sales Pattern Generators | 316.7 | 540.9 | 580.9 | 430.3 | 563.4 | 403.8 | 371.2 | 452.7 |
| 900.5 | 1,119.9 | 1,105.0 | 1,051.6 | 1,096.4 | 882.3 | 750.2 | 925.6 | |
| Gross Profit Assembly Solutions | 239.0 | 250.1 | 214.0 | 267.6 | 216.2 | 194.7 | 160.2 | 207.3 |
| Gross Profit Pattern Generators | 227.1 | 407.3 | 478.2 | 230.8 | 445.4 | 304.3 | 278.2 | 364.0 |
| 465.5 | 657.5 | 692.1 | 498.4 | 661.6 | 499.0 | 438.4 | 571.3 | |
| Gross Margin Assembly Solutions | 40.9% | 43.2% | 40.8% | 43.1% | 40.6% | 40.7% | 42.3% | 43.8% |
| Gross Margin Pattern Generators | 71.7% | 75.3% | 82.3% | 53.6% | 79.1% | 75.4% | 75.0% | 80.4% |
| 51.7% | 58.7% | 62.6% | 47.4% | 60.3% | 56.6% | 58.4% | 61.7% | |
| R&D expenses Assembly Solutions | -81.4 | -85.6 | -77.4 | -84.7 | -73.7 | -85.9 | -77.4 | -79.6 |
| R&D expenses Pattern Generators | -46.4 | -58.6 | -50.6 | -57.2 | -35.9 | -36.0 | -25.4 | -25.9 |
| Total R&D expenses | -127.4 | -144.6 | -128.2 | -141.9 | -109.6 | -121.8 | -102.8 | -105.4 |
| Selling expenses | -152.6 | -127.6 | -112.7 | -132.6 | -109.6 | -97.4 | -81.1 | -92.9 |
| Administrative expenses | -54.8 | -60.6 | -55.9 | -61.7 | -55.4 | -52.9 | -58.1 | -60.8 |
| Other income/expenses | 66.9 | -7.5 | 10.4 | -11.5 | 48.6 | 10.7 | -0.3 | -6.2 |
| EBIT | 197.5 | 317.3 | 405.7 | 150.7 | 435.6 | 237.6 | 196.1 | 306.0 |
| Of which EBIT Assembly Solutions | 45.9 | 16.6 | 5.3 | 17.9 | 79.1 | -3.4 | -24.2 | 8.5 |
| Of which EBIT Pattern Generators | 152.7 | 301.8 | 401.5 | 133.7 | 357.5 | 242.0 | 221.3 | 298.5 |
| EBIT margin | 21.9% | 28.3% | 36.7% | 14.3% | 39.7% | 26.9% | 26.1% | 33.1% |
| Equity per share after tax | 29.44 | 27.49 | 28.01 | 24.30 | 22.76 | 19.41 | 19.95 | 18.18 |
| Net earnings per share | 1.52 | 2.50 | 3.20 | 1.33 | 3.55 | 1.77 | 1.44 | 2.32 |
| Closing share price | 121.90 | 112.80 | 132.50 | 118.10 | 93.05 | 100.20 | 106.80 | 85.00 |
*Restated to account for the effects of the accounting standard for revenue recognition, IFRS 15 Revenue from Contracts with Customers.
Interim Report January–September 2019
MYCRONIC
Review report
To: Mycronic AB (publ), corporate identity number 556351-2374
Introduction
We have reviewed the condensed interim report for Mycronic AB (publ) as at September 30, 2019 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, 2019
Ernst & Young AB
Erik Sandström
Authorized Public Accountant
Interim Report January–September 2019