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Mycronic Interim / Quarterly Report 2022
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Interim / Quarterly Report
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MYCRONIC
Q2
Interim Report January–June 2022
Second quarter
- Order intake amounted to SEK 1,203 (1,002) million, an increase of 20 percent
- Net sales increased 20 percent to SEK 1,273 (1,064) million. Based on constant exchange rates, net sales increased 10 percent
- EBIT amounted to SEK 224 (241) million and the EBIT margin was 18 (23) percent
- Earnings per share were SEK 1.79 (1.84)
January–June
- Order intake amounted to SEK 2,644 (2,030) million, an increase of 30 percent
- Net sales increased 2 percent to SEK 2,408 (2,355) million. Based on constant exchange rates, net sales decreased 6 percent
- EBIT amounted to SEK 429 (739) million and the EBIT margin was 18 (31) percent
- Earnings per share were SEK 3.47 (5.84)
"The order intake and net sales were fairly stable in local currencies during the second quarter. Supported by positive currency effects and acquisitions, both increased 20 percent compared with the same quarter last year. High Flex, High Volume and Global Technologies showed increases in net sales, whereas Pattern Generators' net sales declined. EBIT was SEK 224 million with an EBIT margin of 18 percent, where all divisions showed double digit EBIT margins. The decline compared to last year was mainly due to the previously communicated change to the sales mix in the Group, resulting in a decrease in Pattern Generators' share of total net sales, but also due to the second quarter last year being a very challenging comparative period for High Volume", says Anders Lindqvist, President and CEO.
Outlook 2022
It remains the Board of Directors' opinion that consolidated net sales for 2022 will be at a level of SEK 5 billion, based on exchange rates at the end of 2021. Due to the product mix of announced orders in Pattern Generators with deliveries in 2022, the Group's EBIT margin is expected to be slightly above the long-term financial goal of >15 percent.
| Group summary | Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | ||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 1,203 | 1,002 | 2,644 | 2,030 | 5,120 | 4,506 |
| Net Sales, SEK million | 1,273 | 1,064 | 2,408 | 2,355 | 4,689 | 4,635 |
| Book-to-bill | 0.9 | 0.9 | 1.1 | 0.9 | 1.1 | 1.0 |
| Order backlog, SEK million | 2,146 | 1,774 | 2,146 | 1,774 | 2,146 | 1,975 |
| Gross margin, % | 45.4% | 52.1% | 44.6% | 56.3% | 43.3% | 49.3% |
| EBIT, SEK million | 224 | 241 | 429 | 739 | 739 | 1,049 |
| EBIT margin, % | 17.6% | 22.7% | 17.8% | 31.4% | 15.8% | 22.6% |
| Earnings per share before/after dilution, SEK | 1.79 | 1.84 | 3.47 | 5.84 | 6.12 | 8.48 |
| Cash Flow, SEK million | -118 | -617 | 86 | -306 | -270 | -662 |
| Changes in Net Sales | ||||||
| Total growth, % | 20% | -2% | 2% | 29% | 6% | 19% |
| Organic growth, % | -3% | 6% | -16% | 39% | -11% | 16% |
| Growth from acquisitions, % | 13% | - | 11% | - | 12% | 7% |
| Currency effects, % | 10% | -8% | 8% | -10% | 5% | -3% |
Interim Report January-June 2022
MYCRONIC
CEO comments
The order intake and net sales were fairly stable in local currencies during the second quarter. Supported by positive currency effects and acquisitions, both increased 20 percent compared with the same quarter last year. High Flex, High Volume and Global
Technologies showed increases in net sales, whereas Pattern Generators' net sales declined. EBIT was SEK 224 million with an EBIT margin of 18 percent, where all divisions showed double digit EBIT margins. The decline compared to last year was mainly due to the previously communicated change to the sales mix in the Group, resulting in a decrease in Pattern Generators' share of total net sales, but also due to the second quarter last year being a very challenging comparative period for High Volume.
In June, the Board of Mycronic decided to investigate the possibility of listing Axxon, the core of the High Volume division, on the STAR market of the Shanghai stock exchange and floating a minority stake. Axxon has developed very successfully since Mycronic's acquisition in 2016. A net sales compound annual growth rate of 39 percent, with healthy profitability, has brought Axxon to a market leadership position in dispensing for the electronics industry. A listing would strengthen Axxon's brand and position as the global leader in dispensing for the electronics industry and make it easier for the company to achieve its full potential. If feasible, the listing could take place during 2024.
The photomask market for both semiconductors and displays was healthy in the second quarter, even though the war in Ukraine and lockdowns in China created uncertainty regarding investment decisions. The authorities in China announced their intent to further stimulate the semiconductor industry, which could be positive for Pattern Generators. The division did not receive any orders for mask writers during the quarter, while 5 SLX systems were delivered.
Order intake and net sales, rolling 12 months
For High Flex, the quarter was characterized by continued high demand despite the current world situation. Primarily Europe but also North America noted a strong market development, while China was weak due to lockdowns. There is a trend in High Flex's market where production of electronics is being relocated to North America and Europe. With our product offering and geographical presence, we are well positioned for this trend and High Flex is in the process of opening an entity in Mexico that is expected to be operational by the end of the year.
For High Volume, demand from suppliers to the electric car industry was strong. They were not seriously impacted by the lockdowns in China, since contractors that supply electronic components to electric car manufacturers also have production in e.g. Taiwan, Vietnam and Mexico. The surface mount technology (SMT) industry that supplies components for consumer electronics was impacted by the lockdowns. However, the consumer electronics industry is expected to recover in the second half of the year if restrictions are eased.
In Global Technologies, the market for electrical testing of PCBs and substrates performed strongly in Asia, but was slightly weaker in Europe and the US. No slowdown was noted in China despite the lockdowns. Demand in die bonding was solid, even though several large data centers and cloud-service providers announced recruitment freezes during the quarter.
I am pleased to conclude that due to our continued hard work in the second quarter we succeeded in managing the challenges related to the supply of components and transportation and mostly succeeded in delivering our production equipment to our customers according to plan. To date, we have also been successful in managing rising inflation. With a strong balance sheet and net cash of SEK 505 million, we are well prepared to face future challenges and opportunities.
Anders Lindqvist, President and CEO Gross and EBIT margin, rolling 12 months
Interim Report January-June 2022
MYCRONIC
Financial performance
GROUP
| Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 1,203 | 1,002 | 2,644 | 2,030 | 5,120 | 4,506 |
| Order backlog, SEK million | 2,146 | 1,774 | 2,146 | 1,774 | 2,146 | 1,975 |
| Net Sales, SEK million | 1,273 | 1,064 | 2,408 | 2,355 | 4,689 | 4,635 |
| Gross profit, SEK million | 578 | 555 | 1,074 | 1,327 | 2,032 | 2,284 |
| Gross margin, % | 45.4% | 52.1% | 44.6% | 56.3% | 43.3% | 49.3% |
| EBIT, SEK million | 224 | 241 | 429 | 739 | 739 | 1,049 |
| EBIT margin, % | 17.6% | 22.7% | 17.8% | 31.4% | 15.8% | 22.6% |
| EBITDA, SEK million | 284 | 288 | 547 | 831 | 969 | 1,254 |
The Group's order intake increased 20 percent to SEK 1,203 (1,002) million in the second quarter, supported by positive currency effects and acquisitions. For the first six months, order intake increased 30 percent to SEK 2,644 (2,030) million. Order intake excluding acquisitions and divestment increased 8 percent during the quarter and 16 percent for the first six months of the year. Order backlog increased to SEK 2,146 (1,774) million at the end of the quarter.
Net sales increased 20 percent to SEK 1,273 (1,064) million, supported by positive currency effects and acquisitions. High Flex, High Volume and Global Technologies showed increases in net sales, whereas Pattern Generators' net sales declined. Net sales for the first six months of the year increased 2 percent to SEK 2,408 (2,355) million. Organic net sales decreased 3 percent during the quarter and 16 percent for the first six months. Net sales were positively impacted by currency effects of SEK 104 million for the quarter and SEK 187 million for the first six months.
The Group's gross margin for the second quarter was 45 (52) percent, with the decline attributable to a changed sales mix, where Pattern Generators' share of the Group's net sales was reduced, but also due to last year being a very challenging comparative period for High Volume. The gross margin for the first six months of the year declined to 45 (56) percent for the same reasons.
Operating expenses increased by SEK 52 million during the quarter, where SEK 25 million were net increases attributable to acquisitions and divestment. The remaining increase is mainly attributable to High Volume. EBIT for the quarter was SEK 224 (241) million, corresponding to an EBIT margin of 18 (23) percent. EBIT for the first six months of the year was SEK 429 (739) million, corresponding to an EBIT margin of 18 (31) percent. Acquisition-related costs amounted to SEK 16 (24) million for the quarter and to SEK 32 (31) million for the first six months.
Cash flow and financial position
Consolidated cash and cash equivalents at the end of June amounted to SEK 819 (1,019) million. Cash flow for the first six months amounted to SEK 86 (-306) million. Cash flow from operating activities amounted to SEK 246 (682) million. Working capital increased SEK 152 million during the first six months of the year, mainly driven by increased trade receivables in China, compared with a decline of SEK 31 million in the preceding year.
Investments generated a positive cash flow of SEK 120 million for the first six months, compared with a negative SEK 1,071 million in the preceding year. The divestment of AEi in February generated SEK 215 million in cash flow, while the capitalization of product development amounted to SEK 20 (24) million and investments in tangible assets to SEK 75 (15) million. Financing activities utilized SEK 279 million, of which SEK 294 million related to dividends to shareholders, compared with a positive cash flow of SEK 83 million in the previous year.
Sustainability
To achieve Mycronic's target of halving $\mathrm{CO}_{2}$ emissions from our own operations by 2030, air freight must be reduced in all divisions. A study was initiated in the second quarter to investigate various opportunities for reducing Mycronic's emissions from transportation. The study is scheduled to be completed in the third quarter and will provide support for the divisions in their ongoing work.
Interim Report January-June 2022
MYCRONIC
PATTERN GENERATORS
| Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 176 | 209 | 559 | 442 | 1,350 | 1,233 |
| Order backlog, SEK million | 635 | 617 | 635 | 617 | 635 | 744 |
| Net Sales, SEK million | 348 | 389 | 668 | 981 | 1,332 | 1,645 |
| Gross profit, SEK million | 193 | 252 | 381 | 728 | 758 | 1,105 |
| Gross margin, % | 55.4% | 64.6% | 57.0% | 74.2% | 56.9% | 67.2% |
| EBIT, SEK million | 110 | 174 | 234 | 593 | 474 | 832 |
| EBIT margin, % | 31.5% | 44.6% | 35.1% | 60.4% | 35.6% | 50.6% |
| EBITDA | 121 | 184 | 255 | 611 | 515 | 870 |
| R&D expenditures, SEK million | -60 | -61 | -109 | -114 | -214 | -219 |
| R&D costs, SEK million | -60 | -57 | -108 | -104 | -205 | -201 |
The photomask market for both semiconductors and displays was healthy in the second quarter, even though the war in Ukraine and lockdowns in China created uncertainty regarding investment decisions. The authorities in China announced their intent to further stimulate the semiconductor industry, which could be positive for Pattern Generators.
The division did not receive any orders for mask writers during the second quarter, although the pipeline for the remainder of the year looks promising. The order intake declined 16 percent to SEK 176 (209) million. For the first six months of the year, order intake increased 26 percent to SEK 559 (442) million. The business is characterized by fluctuations over time and performance should be viewed from a long-term perspective.
At the end of June, the order backlog amounted to SEK 635 (617) million and contained 9 systems, with planned deliveries as follows:
2022 Q3: 2 SLXs
2022 Q4: 3 SLXs, 1 Prevision Lite 8 Evo
2023 Q1: 2 SLXs, 1 Prevision Lite 8 Evo
At the customer's request, the delivery of an SLX has been moved from the third quarter of 2022 to the fourth quarter of 2022.
Pattern Generators delivered 5 SLX mask writers in the second quarter, compared with 4 systems in the previous year, whereof 1 SLX. Net sales declined 11 percent and amounted to SEK 348 (389) million. For the first six months, net sales declined 32 percent to SEK 668 (981) million. Net sales for the second quarter were positively impacted by currency effects of SEK 22 million and the first six months positively by SEK 39 million.
The shortage of components required additional work finding alternative components and solutions, yet remained manageable during the quarter. The gross margin decreased to 55 (65) percent during the quarter due to a less advantageous product mix and to 57 (74) percent for the first six months.
EBIT declined to SEK 110 (174) million during the quarter, corresponding to an EBIT margin of 31 (45) percent. EBIT for the first six months of the year decreased to SEK 234 (593) million, corresponding to an EBIT margin of 35 (60) percent.
R&D costs for the quarter amounted to SEK 60 (57) million and SEK 108 (104) million for the first six months. The capitalization of development costs amounted to SEK 0 (4) million for the quarter and SEK 1 (10) million for the first six months.
Interim Report January-June 2022
MYCRONIC
HIGH FLEX
| Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 332 | 279 | 707 | 602 | 1,325 | 1,220 |
| Order backlog, SEK million | 239 | 150 | 239 | 150 | 239 | 130 |
| Net Sales, SEK million | 309 | 262 | 598 | 538 | 1,236 | 1,176 |
| Gross profit, SEK million | 128 | 97 | 242 | 207 | 504 | 469 |
| Gross margin, % | 41.4% | 36.9% | 40.4% | 38.5% | 40.7% | 39.9% |
| EBIT, SEK million | 35 | 11 | 54 | 46 | 144 | 136 |
| EBIT margin, % | 11.3% | 4.1% | 9.0% | 8.5% | 11.7% | 11.6% |
| EBITDA | 44 | 20 | 72 | 64 | 181 | 174 |
| R&D expenditures, SEK million | -51 | -47 | -96 | -90 | -183 | -177 |
| R&D costs, SEK million | -42 | -42 | -80 | -78 | -153 | -151 |
The quarter was characterized by continued high demand despite the current world situation. Primarily Europe but also North America noted a strong market development, while China was weak due to lockdowns. There is a trend in High Flex's market where production of electronics is being relocated to North America and Europe. With its product offering and geographical presence, the division is well positioned for this trend and High Flex is in the process of opening an entity in Mexico that is expected to be operational by the end of the year. Order intake rose 19 percent during the second quarter and amounted to SEK 332 (279) million. For the first six months, order intake increased 17 percent to SEK 707 (602) million. At the end of the quarter, the order backlog totaled SEK 239 (150) million.
The main difficulty during the quarter was delivering products to the customers. A shortage of components, the transportation situation with closed ports and lockdowns in China, presented a major challenge. Despite this, with the help of positive currency effects, net sales rose 18 percent
during the second quarter and amounted to SEK 309 (262) million. For the first six months, net sales increased 11 percent to SEK 598 (538) million. Net sales were positively impacted by currency effects of SEK 26 million for the quarter and SEK 46 million for the first six months.
Despite general delivery challenges, High Flex succeeded in maintaining good delivery times for its key products within pick-and-place. The gross margin for the quarter was 41 (37) percent and 40 (39) percent for the first six months.
EBIT increased to SEK 35 (11) million with an EBIT margin of 11 (4) percent. EBIT for the first six months of the year was SEK 54 (46) million, corresponding to an EBIT margin of 9 (8) percent.
R&D costs for the quarter amounted to SEK 42 (42) million and SEK 80 (78) million for the first six months. The capitalization of development costs amounted to SEK 10 (6) million for the quarter and SEK 19 (14) million for the first six months.
Interim Report January-June 2022
MYCRONIC
HIGH VOLUME
| Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 484 | 381 | 925 | 771 | 1,489 | 1,336 |
| Order backlog, SEK million | 988 | 758 | 988 | 758 | 988 | 809 |
| Net Sales, SEK million | 381 | 315 | 746 | 683 | 1,264 | 1,200 |
| Gross profit, SEK million | 156 | 166 | 287 | 330 | 464 | 508 |
| Gross margin, % | 40.8% | 52.6% | 38.4% | 48.4% | 36.8% | 42.3% |
| EBIT, SEK million | 65 | 94 | 120 | 184 | 168 | 231 |
| EBIT margin, % | 17.1% | 29.9% | 16.1% | 26.9% | 13.3% | 19.3% |
| EBITDA | 72 | 99 | 134 | 193 | 192 | 251 |
| R&D expenditures, SEK million | -38 | -28 | -71 | -56 | -121 | -107 |
| R&D costs, SEK million | -40 | -29 | -74 | -58 | -128 | -112 |
For High Volume, demand from suppliers to the electric car industry was strong. They were not seriously impacted by the lockdowns in China, since contractors that supply electronic components to electric car manufacturers also have production in e.g. Taiwan, Vietnam and Mexico. The surface mount technology (SMT) industry that supplies components for consumer electronics was impacted by the lockdowns. However, the consumer electronics industry is expected to recover in the second half of the year if restrictions are eased. Order intake for the second quarter of the year increased 27 percent and amounted to SEK 484 (381) million. Order intake excluding acquisitions increased 18 percent, explained by strong positive currency effects, while in local currency order intake was at last year's level. For the first six months, order intake increased 20 percent to SEK 925 (771) million, while the order intake excluding acquisitions increased 12 percent, also explained by strong positive currency effects. At the end of the quarter, the order backlog totaled SEK 988 (758) million.
Lockdowns in China led to a shortage of materials and components as well as challenges regarding transportation. However, the situation could be successfully managed and the impact on the division was limited during the quarter. With the help of the acquisition and supported by positive currency effects, net sales rose 21 percent and amounted to SEK 381 (315) million. For the first six months, net sales increased 9 percent to SEK 746 (683) million. Organic net sales decreased 1 percent during the quarter and 9 percent for the first six months of the year. Net sales were positively impacted by currency effects of SEK 44 million for the quarter and SEK 84 million for the first six months.
The gross margin declined to 41 (53) percent during the quarter, which was attributable to a very favorable sales mix in the same period last year. The gross margin for the first six months decreased to 38 (48) percent.
EBIT declined to SEK 65 (94) million, mainly explained by lower gross profit and increased bad debt provisions, impacting operating expenses. The EBIT margin was 17 (30) percent. EBIT for the first six months of the year decreased to SEK 120 (184) million, corresponding to an EBIT margin of 16 (27) percent.
R&D costs for the quarter amounted to SEK 40 (29) million and SEK 74 (58) million for the first six months.
In June, the Board of Mycronic decided to investigate the possibility of listing Axxon, the core of the High Volume division, on the STAR market of the Shanghai stock exchange and floating a minority stake. Axxon has developed very successfully since Mycronic's acquisition in 2016. A net sales compound annual growth rate of 39 percent, with healthy profitability, has brought Axxon to a market leadership position in dispensing for the electronics industry. A listing would strengthen Axxon's brand and position as the global leader in dispensing for the electronics industry and make it easier for the company to achieve its full potential. If feasible, the listing could take place during 2024.
Interim Report January-June 2022
MYCRONIC
GLOBAL TECHNOLOGIES
| Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 222 | 144 | 481 | 234 | 1,008 | 761 |
| Order backlog, SEK million | 284 | 249 | 284 | 249 | 284 | 291 |
| Net Sales, SEK million | 246 | 107 | 424 | 173 | 908 | 657 |
| Gross profit, SEK million | 102 | 41 | 165 | 62 | 304 | 200 |
| Gross margin, % | 41.5% | 37.9% | 39.0% | 35.7% | 33.4% | 30.4% |
| EBIT, SEK million | 43 | 7 | 73 | -8 | 78 | -3 |
| EBIT margin, % | 17.3% | 6.1% | 17.3% | -4.5% | 8.6% | -0.4% |
| EBITDA | 56 | 12 | 100 | 3 | 131 | 34 |
| R&D expenditures, SEK million | -16 | -13 | -34 | -26 | -76 | -68 |
| R&D costs, SEK million | -22 | -15 | -47 | -29 | -101 | -84 |
The market for electrical testing of PCBs and substrates performed strongly in Asia, but was slightly weaker in Europe and the US. No slowdown was noted in China despite the lockdowns. Demand in die bonding was solid, even though several large data centers and cloud-service providers announced recruitment freezes during the quarter. Order intake amounted to SEK 222 (144) million for the quarter and SEK 481 (234) million for the first six months. Order intake excluding acquisition and divestment decreased 9 percent during the quarter and increased 10 percent for the first six months. At the end of the quarter, the order backlog totaled SEK 284 (249) million.
Both of the operations were successful in delivering machines to their customers despite experiencing challenges in terms of component supplies. Net sales amounted to SEK 246 (107) million for the quarter and SEK 424 (173) million for the first six months. Organic net sales increased 11 percent during the quarter and 12 percent for
the first six months. Net sales for the quarter were positively impacted by currency effects of SEK 14 million and the first six months positively by SEK 21 million.
The gross margin amounted to 41 (38) percent in the quarter and 39 (36) percent for the first six months.
EBIT in the second quarter was very strong for Global Technologies, increasing to SEK 43 (7) million, corresponding to an EBIT margin of 17 (6) percent. EBIT for the first six months of the year was SEK 73 (-8) million, corresponding to an EBIT margin of 17 (-4) percent. The divestment of AEi in February had a positive EBIT impact of SEK 25 million. Acquisition-related costs amounted to SEK 10 million for the quarter and SEK 20 million for the first six months.
R&D costs for the quarter amounted to SEK 22 (15) million and SEK 47 (29) million for the first six months.
Interim Report January-June 2022
MYCRONIC
The electronics industry
The global electronics industry grew 12.3 percent in 2021 to USD 2,480 billion¹. For full-year 2021, the semiconductor market grew 26.7 percent to the equivalent of USD 556 billion¹.
OUTLOOK
Annual growth for the electronics industry is forecast at 3.6 percent for the period 2021-2026¹. Segments with the strongest expected growth during this five-year period are electronics for data centers, automotive industry, communication and industrial applications related to automation and control. The electronics industry is forecast to show negative growth of 1.1 percent in 2022 as a result of increasing weakness in PC, mobile phone and TV markets and the automotive segment not fully recovering the ground lost during the pandemic. The semiconductor market is expected to grow 9.0 percent in the full-year 2022 compared with 2021 and is forecast to be positive during the 2022-2026 period as a whole, with annual growth of 4.9 percent¹. The display market is estimated to have grown 25.8 percent in 2021 to USD 157 billion². For 2022, negative growth of 10.8 percent is forecast due to a reduction in the prices of LCD displays. During the 2022-2026 period, the display market is expected to remain at roughly the same level as in 2022, with the long-term trend towards a larger share of advanced AMOLED displays expected to continue.
| Size/growth | 2022F | 2021 | 2020 |
|---|---|---|---|
| Electronics industry, percentual change¹ | -1.1% | +12.3% | +1.8% |
| Semiconductor industry, percentual change¹ | +9.0% | +26.7% | +6.5% |
| SMT component mounting, percentual change³ | NA | +26.7% | +7.2% |
| Dispensing, USD million⁴ | NA | 910 | 730 |
| Displays, USD, billion² | 140 | 157 | 125 |
| Photomasks for displays, percentual change in value⁵ | +10.1% | +13.7% | -10.6% |
| Photomasks for semiconductors, percentual change in value⁶ | +18.4% | +16.2% | +8.0% |
| Display photomask area, thousand sq. meters⁵ | 19.4 | 18.4 | 16.9 |
SMT AND DISPENSING MARKET AREA
The global market for SMT equipment has annual sales of approximately USD 6,200 million⁷, of which the segment SMT robots for component mounting amounted to USD 3,732 million in 2021. The segment declined as a whole in the first quarter of 2022 compared with the same period last year, even though the markets in Europe, North and South America and Japan reported growth. The dispensing equipment market increased 24.7 percent and had sales of USD 910 million⁴ in 2021.
ASSEMBLY AUTOMATION AND TEST MARKET AREA
Components for optical communication are expected to grow from USD 12.6 billion in 2021 to USD 24.6 billion in 2027, which corresponds to annual growth of 11.7 percent⁸. The global market for printed circuit boards and substrates is expected to grow 4.2 percent in 2022 to USD 84.3 billion⁹ and post annual growth of 4.6 percent⁹ during the 2021-2026 period.
PATTERN GENERATORS MARKET AREA
PHOTOMASKS FOR DISPLAYS
In 2021 the market showed growth of 13.7 percent, from USD 821 million to USD 934 million⁵,¹⁰. The positive trend is largely related to the increase in demand for photomasks in 2021, since the display manufacturers began to re-focus on developing new models after a period with priority on production of existing models. In addition, there is an ongoing shift toward a higher proportion of advanced displays that require more, and more advanced, photomasks. The expectations for 2022 are that the photomask market will continue to grow and post positive growth of 10.1 percent to USD 1,027 million⁵,¹⁰. The market is driven primarily by a higher proportion of advanced photomasks for AMOLED displays. The forecast for the total area growth amounts to an average of 2.4 percent per year for 2021-2026⁵. Strong growth for AMOLED photomasks is expected, with an annual average area growth of 7.0 percent for 2021-2026⁵, which drives the need for photomasks produced by advanced mask writers.
PHOTOMASKS FOR SEMICONDUCTORS
In 2021 the market showed growth of 16.2 percent, from USD 5.3 billion to USD 6.1 billion⁶. Despite the pandemic, the market trend was strong, primarily driven by robust growth for the most advanced photomasks, although the market for mature technology nodes was also positive. The expectations for 2022 are that the market will continue to perform positively, with growth of 18.4 percent to USD 7.2 billion⁶. The market will also remain primarily driven by higher volumes of the most advanced photomasks, which are mainly produced by E-beam mask writers.
1) Prismark, latest forecast June 2022
2) Omdia, latest forecast April 2022
3) Protec MDC, March 2022
4) Prismark, April 2022
5) Omdia, June 2022 (annual update)
6) TechInsights, April 2022 (annual update)
7) Protec MDC, April 2022, Mycronic analysis
8) Lightcounting, April 2022
9) Prismark, May 2022
10) 110 YEN/USD used by Mycronic for conversion
Interim Report January-June 2022
MYCRONIC
Other
PARENT COMPANY
Mycronic AB is the Group's Parent Company.
The Parent Company's net sales amounted to SEK 1,106 (1,373) million for the first six months. EBIT amounted to SEK 289 (526) million.
Cash and cash equivalents at the end of the first six months amounted to SEK 257 million, compared with SEK 116 million at the end of 2021.
FINANCIAL INFORMATION
Mycronic AB (publ) is listed on Nasdaq Stockholm, Large Cap. The information in this report is published in accordance with the EU Market Abuse Regulation and the Swedish Securities Act. The information was submitted for publication through the contact persons stated below on July 14, 2022, at 8:00 a.m CEST.
Financial reports and press releases are published in Swedish and English and are available on www.mycronic.com.
This report was not reviewed by the company's auditor.
CONFERENCE CALL
Mycronic will hold a teleconference at 10:00 a.m. CEST on July 14, 2022, with President and CEO Anders Lindqvist and CFO and Senior VP Corporate Development Pierre Brorsson. To take part of the presentation, please dial one of the numbers or watch via the web link below.
Sweden: +46 8 505 100 31
UK: +44 207 107 0613
United States: +1 631 570 5613
https://mycronic-external.creo.se/220714
FINANCIAL CALENDAR
| Capital Markets Day | September 5, 2022 |
|---|---|
| Interim Report January–September 2022 | October 20, 2022 |
| Year-end report 2022 | February 10, 2023 |
| Annual and Sustainability Report 2022 | April 3, 2023 |
| Interim Report January–March 2023 | April 20, 2023 |
| Annual General Meeting 2023 | May 9, 2023 |
| Interim Report January–June 2023 | July 13, 2023 |
| Interim Report January–September 2023 | October 19, 2023 |
| Year-end report 2023 | February 8, 2024 |
FOR ADDITIONAL INFORMATION, PLEASE CONTACT
Anders Lindqvist
President and CEO
+46 8 638 52 00
[email protected]
Pierre Brorsson
Chief Financial Officer & Sr VP Corporate Development
+46 8 638 52 00
[email protected]
Sven Chetkovich
Director Investor Relations
+46 70 558 39 19
[email protected]
Interim Report January–June 2022
MyCRONIC
The Board of Directors and President certify that this interim report provides a true and fair view of the business activities, financial position and results of operations of the Parent Company and the Group and describes the significant risks and uncertainties to which the Parent Company and the Group are exposed.
Täby, July 14, 2022
Mycronic AB (publ)
Anders Lindqvist
President and CEO
| Patrik Tigerschiöld
Chairman | Arun Bansal
Board member | Anna Belfrage
Board member |
| --- | --- | --- |
| Katarina Bonde
Board member | Staffan Dahlström
Board member | Robert Larsson
Board member |
| Bo Risberg
Board member | Jörgen Lundberg
Employee representative | Sahar Raouf
Employee representative |
Mycronic AB (publ)
PO Box 3141
SE-183 03 Täby, Sweden
Tel: +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–June 2022
10 (20)
MYCRONIC
Group
| Consolidated profit and loss accounts in summary, SEK million | Note | Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | ||
|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | ||||
| Net sales | 5, 6 | 1,273 | 1,064 | 2,408 | 2,355 | 4,689 | 4,635 |
| Cost of goods sold | -695 | -509 | -1,334 | -1,028 | -2,657 | -2,351 | |
| Gross profit | 578 | 555 | 1,074 | 1,327 | 2,032 | 2,284 | |
| Research and development | 7 | -164 | -144 | -309 | -270 | -587 | -548 |
| Selling expenses | -155 | -132 | -288 | -254 | -560 | -526 | |
| Administrative expenses | -64 | -55 | -126 | -112 | -257 | -243 | |
| Other income and expenses | 28 | 17 | 78 | 49 | 111 | 82 | |
| EBIT | 224 | 241 | 429 | 739 | 739 | 1,049 | |
| Financial income and expenses | -2 | -1 | -3 | -1 | -5 | -2 | |
| Profit/loss before tax | 222 | 240 | 426 | 738 | 734 | 1,046 | |
| Tax | -48 | -60 | -88 | -168 | -139 | -219 | |
| Net Profit/loss | 174 | 180 | 338 | 570 | 595 | 827 | |
| Earnings per share before/after dilution, SEK | 1.79 | 1.84 | 3.47 | 5.84 | 6.12 | 8.48 | |
| Average number of outstanding shares, thousand | 97,635 | 97,685 | 97,635 | 97,685 | 97,624 | 97,649 | |
| Results attributable to owners of the Parent Company | 175 | 180 | 339 | 570 | 597 | 828 | |
| Results attributable to non-controlling interests | 0 | - | -1 | - | -2 | -1 | |
| 174 | 180 | 338 | 570 | 595 | 827 | ||
| Consolidated statement of comprehensive income in summary, SEK million | Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | |||
| --- | --- | --- | --- | --- | --- | --- | |
| 2022 | 2021 | 2022 | 2021 | ||||
| Net Profit/loss | 174 | 180 | 338 | 570 | 595 | 827 | |
| Other comprehensive income | |||||||
| Items not to be reclassified to profit/loss, after tax | |||||||
| Actuarial profit/loss from defined benefits to employees | 0 | - | 0 | - | 1 | 1 | |
| Items to be reclassified to profit/loss, after tax | |||||||
| Translation differences at translating foreign entities | 131 | -31 | 195 | 58 | 328 | 191 | |
| Hedging of net investment in foreign entities | - | 0 | - | 0 | -6 | -6 | |
| Changes in cash flow hedges | -28 | 0 | -29 | -52 | -53 | -76 | |
| Total comprehensive income | 276 | 148 | 504 | 576 | 866 | 938 | |
| Total comprehensive income attributable to owners of the Parent Company | 275 | 148 | 502 | 576 | 862 | 936 | |
| Total comprehensive income attributable to non-controlling interests | 1 | - | 2 | - | 4 | 2 | |
| 276 | 148 | 504 | 576 | 866 | 938 |
Interim Report January-June 2022
MYCRONIC
| Consolidated statements of financial position in summary, SEK million | 30 Jun 22 | 30 Jun 21 | 31 Dec 21 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible assets | 2,394 | 2,218 | 2,296 |
| Tangible assets | 497 | 448 | 429 |
| Non-current receivables | 56 | 35 | 55 |
| Deferred tax assets | 167 | 125 | 145 |
| Total fixed assets | 3,113 | 2,826 | 2,926 |
| Current assets | |||
| Inventories | 1,499 | 1,344 | 1,363 |
| Trade receivables | 874 | 659 | 658 |
| Other current receivables | 332 | 303 | 320 |
| Cash and cash equivalents | 819 | 1,019 | 683 |
| Total current assets | 3,524 | 3,326 | 3,024 |
| Assets held for sale* | - | - | 186 |
| Total assets | 6,637 | 6,153 | 6,136 |
| EQUITY AND LIABILITIES | |||
| Equity | 4,214 | 3,610 | 3,997 |
| Long-term liabilities | |||
| Long-term interest-bearing liabilities | 196 | 168 | 181 |
| Deferred tax liabilities | 321 | 298 | 329 |
| Other non-current liabilities | 48 | 55 | 59 |
| Total long-term liabilities | 565 | 521 | 570 |
| Short-term liabilities | |||
| Short-term interest-bearing liabilities | 118 | 537 | 62 |
| Trade payables | 443 | 330 | 295 |
| Other current liabilities | 1,298 | 1,155 | 1,186 |
| Total current liabilities | 1,859 | 2,022 | 1,544 |
| Liabilities directly associated with the assets held for sale* | - | - | 26 |
| Total liabilities | 2,424 | 2,542 | 2,139 |
| Total equity and liabilities | 6,637 | 6,153 | 6,136 |
- Pertains to the divestment of AEi, which was completed at the beginning of February 2022.
Interim Report January-June 2022
MYCRONIC
| Q2 | Jan-Jun | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| Consolidated cash flow statements in summary, SEK million | 2022 | 2021 | 2022 | 2021 | 12 month | 2021 |
| Profit/loss before tax | 222 | 240 | 426 | 738 | 734 | 1,046 |
| Adjustments for non-cash items and paid income tax | 7 | -9 | -28 | -87 | 80 | 20 |
| Change in working capital | -56 | 66 | -152 | 31 | -252 | -68 |
| Cash flow from operating activities | 172 | 297 | 246 | 682 | 562 | 998 |
| Cash flow from investing activities | -27 | -1,050 | 120 | -1,071 | -33 | -1,223 |
| Cash flow from financing activities | -263 | 136 | -279 | 83 | -799 | -437 |
| Cash flow for the period | -118 | -617 | 86 | -306 | -270 | -662 |
| Cash and cash equivalents, opening balance* | 907 | 1,645 | 692 | 1,303 | 1,019 | 1,303 |
| Exchange difference for cash and cash equivalents | 30 | -9 | 41 | 22 | 69 | 51 |
| Cash and cash equivalents classified as assets held for sale | - | - | - | - | - | -9 |
| Cash and cash equivalents, closing balance | 819 | 1,019 | 819 | 1,019 | 819 | 683 |
*Including cash and cash equivalents classified as assets held for sale.
| Jan-Jun | Jan-Dec | ||
|---|---|---|---|
| Consolidated statement of changes in equity in summary, SEK million | 2022 | 2021 | 2021 |
| Opening balance | 3,997 | 3,378 | 3,378 |
| Dividend to owners | -294 | -294 | -294 |
| Dividend to non-controlling interests | - | - | -4 |
| Change of non-controlling interests* | - | -53 | -13 |
| Swap agreement related to own shares | - | - | 10 |
| Repurchase of own shares | - | - | -23 |
| Equity-settled share based payments | 6 | 2 | 6 |
| Total comprehensive income | 504 | 576 | 938 |
| Closing balance | 4,214 | 3,610 | 3,997 |
| Of which holdings of non-controlling interests | 44 | - | 42 |
*Pertains to the acquisition of the non-controlling interest in Axxon Piezoelectric Technology and the non-controlling interest in HC Xin.
| Jan-Jun | Jan-Dec | ||
|---|---|---|---|
| Other key figures * | 2022 | 2021 | 2021 |
| Equity per share, SEK | 43.16 | 36.96 | 40.94 |
| Return on equity (rolling 12 months), % | 15.2% | 29.8% | 22.4% |
| Return on capital employed (rolling 12 months), % | 16.9% | 32.4% | 26.9% |
| Net cash, SEK million | 505 | 313 | 440 |
| Average number of employees | 1,969 | 1,549 | 1,683 |
*In addition to Key Figures presented on page 1. See calculations on page 19.
Interim Report January-June 2022
MYCRONIC
Parent Company
| Q2 | Jan-Jun | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| Profit/loss accounts in summary, Parent Company, SEK million | 2022 | 2021 | 2022 | 2021 | 12 month | 2021 |
| Net sales | 575 | 581 | 1,106 | 1,373 | 2,290 | 2,557 |
| Cost of goods sold | -302 | -282 | -590 | -536 | -1,218 | -1,165 |
| Gross profit | 273 | 300 | 516 | 837 | 1,071 | 1,392 |
| Other operating expenses | -78 | -199 | -227 | -311 | -514 | -598 |
| EBIT | 195 | 101 | 289 | 526 | 557 | 794 |
| Result from financial items | 77 | 127 | 86 | 131 | 95 | 140 |
| Profit/loss after financial items | 272 | 228 | 375 | 656 | 653 | 934 |
| Appropriations | - | - | - | - | -199 | -199 |
| Profit/loss before tax | 272 | 228 | 375 | 656 | 454 | 735 |
| Tax | -42 | -21 | -63 | -110 | -88 | -135 |
| Net Profit/loss | 231 | 206 | 312 | 547 | 366 | 600 |
| Total comprehensive income | 231 | 206 | 312 | 547 | 366 | 600 |
| Balance sheets in summary, Parent Company, SEK million | 30 Jun 22 | 30 Jun 21 | 31 Dec 21 | |||
| --- | --- | --- | --- | |||
| ASSETS | ||||||
| Fixed assets | ||||||
| Intangible and tangible assets | 159 | 346 | 119 | |||
| Financial assets | 2,937 | 2,735 | 2,915 | |||
| Total fixed assets | 3,096 | 3,081 | 3,034 | |||
| Current assets | ||||||
| Inventories | 533 | 495 | 512 | |||
| Current receivables | 611 | 727 | 641 | |||
| Cash and cash equivalents | 257 | 228 | 116 | |||
| Total current assets | 1,400 | 1,451 | 1,269 | |||
| TOTAL ASSETS | 4,496 | 4,531 | 4,303 | |||
| EQUITY AND LIABILITIES | ||||||
| Equity | 2,511 | 2,443 | 2,486 | |||
| Untaxed reserves | 1,275 | 1,076 | 1,275 | |||
| Long-term interest-bearing liabilities | - | - | - | |||
| Other non-current liabilities | 2 | 1 | 1 | |||
| Total long-term liabilities | 2 | 1 | 1 | |||
| Short-term interest bearing liabilities | 50 | 472 | 8 | |||
| Other current liabilities | 658 | 538 | 532 | |||
| Total current liabilities | 708 | 1,010 | 540 | |||
| TOTAL EQUITY AND LIABILITIES | 4,496 | 4,531 | 4,303 |
Interim Report January-June 2022
MYCRONIC
Notes
NOTE 1 ACCOUNTING POLICIES
The 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. The accounting principles 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 period of the lease. The right-of-use asset and the lease liability are thus not reported in the balance sheet.
The nature of financial assets and liabilities is, in all material respects, the same as on December 31, 2021. The carrying amounts and fair values are deemed to essentially correspond with one another.
NOTE 2 TRANSACTIONS WITH RELATED PARTIES
Transactions with related parties are described in Note 8 of the 2021 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, which are described in the 2021 Annual Report. Mycronic is for example exposed to country-specific risks such as political decisions or overarching changes to the regulatory framework, both geographically and product-wise. Mycronic is also exposed to effects from the COVID-19 outbreak.
NOTE 4 EVENTS AFTER THE END OF THE PERIOD
No events took place after the end of the period that had a significant impact on the Group's earnings or financial position.
NOTE 5 REVENUE FROM CONTRACTS WITH CUSTOMERS
| Revenue by geographical market, SEK million | Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | ||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| EMEA | 179 | 118 | 362 | 243 | 761 | 642 |
| North and South America | 172 | 146 | 354 | 246 | 778 | 669 |
| Asia | 922 | 800 | 1,692 | 1,866 | 3,150 | 3,323 |
| 1,273 | 1,064 | 2,408 | 2,355 | 4,689 | 4,635 | |
| Revenue by type of good/service, SEK million | ||||||
| System | 928 | 761 | 1,695 | 1,780 | 3,255 | 3,340 |
| Aftermarket | 345 | 303 | 713 | 575 | 1,434 | 1,295 |
| 1,273 | 1,064 | 2,408 | 2,355 | 4,689 | 4,635 | |
| Timing of revenue recognition, SEK million | ||||||
| Goods transferred at a point in time | 1,032 | 863 | 1,931 | 1,973 | 3,774 | 3,817 |
| Services transferred over time | 242 | 201 | 477 | 381 | 914 | 818 |
| 1,273 | 1,064 | 2,408 | 2,355 | 4,689 | 4,635 |
Interim Report January-June 2022
MYCRONIC
NOTE 6 SEGMENT REPORTING
| SEK million | Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | ||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Net sales by Division | ||||||
| Pattern Generators | 348 | 389 | 668 | 981 | 1,332 | 1,645 |
| High Flex | 309 | 262 | 598 | 538 | 1,236 | 1,176 |
| High Volume | 381 | 315 | 746 | 683 | 1,264 | 1,200 |
| Global Technologies | 246 | 107 | 424 | 173 | 908 | 657 |
| Internal net sales between divisions | -11 | -11 | -28 | -20 | -52 | -44 |
| 1,273 | 1,064 | 2,408 | 2,355 | 4,689 | 4,635 | |
| EBIT by Division | ||||||
| Pattern Generators | 110 | 174 | 234 | 593 | 474 | 832 |
| High Flex | 35 | 11 | 54 | 46 | 144 | 136 |
| High Volume | 65 | 94 | 120 | 184 | 168 | 231 |
| Global Technologies | 43 | 7 | 73 | -8 | 78 | -3 |
| Group functions etc | -30 | -44 | -55 | -74 | -130 | -149 |
| Amortization of previously acquired intangible assets | - | -1 | - | -2 | - | -2 |
| Effects from IFRS 16 | 1 | 0 | 2 | 1 | 5 | 3 |
| Group | 224 | 241 | 429 | 739 | 739 | 1,049 |
| SEK million | 30 Jun 22 | 30 Jun 21 | 31 Dec 21 | |||
| --- | --- | --- | --- | |||
| Assets by Division | ||||||
| Capitalized Development Costs | ||||||
| Pattern Generators | 64 | 72 | 72 | |||
| High Flex | 63 | 50 | 54 | |||
| 127 | 122 | 126 | ||||
| Inventories | ||||||
| Pattern Generators | 392 | 408 | 411 | |||
| High Flex | 297 | 252 | 244 | |||
| High Volume | 622 | 481 | 568 | |||
| Global Technologies | 195 | 205 | 148 | |||
| 1,499 | 1,344 | 1,363 | ||||
| Trade Receivables | ||||||
| Pattern Generators | 221 | 238 | 182 | |||
| High Flex | 235 | 169 | 240 | |||
| High Volume | 262 | 83 | 117 | |||
| Global Technologies | 156 | 170 | 118 | |||
| 874 | 659 | 658 |
Interim Report January-June 2022
MYCRONIC
NOTE 7 RESEARCH AND DEVELOPMENT COSTS
| Research and development costs, SEK million | Q2 | Jan-Jun | Rolling 12 month | Jan-Dec 2021 | ||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| R&D expenditures | ||||||
| Pattern Generators | -60 | -61 | -109 | -114 | -214 | -219 |
| High Flex | -51 | -47 | -96 | -90 | -183 | -177 |
| High Volume | -38 | -28 | -71 | -56 | -121 | -107 |
| Global Technologies | -16 | -13 | -34 | -26 | -76 | -68 |
| -164 | -150 | -310 | -286 | -594 | -570 | |
| Capitalization of Development Costs | ||||||
| Pattern Generators | 0 | 4 | 1 | 10 | 9 | 17 |
| High Flex | 10 | 6 | 19 | 14 | 34 | 29 |
| 10 | 10 | 20 | 24 | 43 | 46 | |
| Amortization of Acquired Technology | ||||||
| High Flex | -1 | -1 | -2 | -2 | -4 | -4 |
| High Volume | -2 | -1 | -4 | -2 | -7 | -5 |
| Global Technologies | -6 | -2 | -13 | -4 | -25 | -16 |
| -9 | -4 | -19 | -8 | -36 | -25 | |
| Reported cost | -164 | -144 | -309 | -270 | -587 | -548 |
Interim Report January-June 2022
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 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. 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 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 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 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.
Interim Report January-June 2022
MYCRONIC
| Jan-Jun | Rolling | Jan-Dec | ||
|---|---|---|---|---|
| Return on equity | 2022 | 2021 | 12 month | 2021 |
| Net profit/loss (rolling 12 months) | 595 | 1,018 | 595 | 827 |
| Average shareholders' equity | 3,912 | 3,422 | 3,912 | 3,687 |
| 15.2% | 29.8% | 15.2% | 22.4% | |
| Return on capital employed | ||||
| Profit/loss before tax (rolling 12 months) | 734 | 1,295 | 734 | 1,046 |
| Financial expenses | 14 | 13 | 14 | 14 |
| Profit/loss before financial expenses | 748 | 1,308 | 748 | 1,060 |
| Average balance sheet total | 6,395 | 5,778 | 6,395 | 5,728 |
| Average non-interest-bearing liabilities | 1,973 | 1,745 | 1,973 | 1,787 |
| Average capital employed | 4,421 | 4,033 | 4,421 | 3,941 |
| 16.9% | 32.4% | 16.9% | 26.9% | |
| Book-to-bill | ||||
| Order intake | 2,644 | 2,030 | 5,120 | 4,506 |
| Net sales | 2,408 | 2,355 | 4,689 | 4,635 |
| 1.1 | 0.9 | 1.1 | 1.0 | |
| EBITDA | ||||
| EBIT | 429 | 739 | 739 | 1,049 |
| Depreciation/Amortization | 117 | 92 | 230 | 205 |
| 547 | 831 | 969 | 1,254 | |
| Underlying EBIT | ||||
| EBIT | 429 | 739 | 739 | 1,049 |
| Acquisition-related costs included in: | ||||
| Cost of goods sold | - | - | 30 | 30 |
| Operating expenses | 32 | 31 | 68 | 67 |
| 32 | 31 | 98 | 97 | |
| Gains from divestments of subsidiaries | -25 | - | -25 | - |
| 437 | 770 | 813 | 1,146 | |
| Equity per share | ||||
| Equity at balance day | 4,214 | 3,610 | 4,214 | 3,997 |
| No. of outstanding shares at end of period, thousand | 97,635 | 97,685 | 97,635 | 97,635 |
| 43.16 | 36.96 | 43.16 | 40.94 | |
| Earnings per share before/after dilution, SEK | ||||
| Net Profit/loss attributable to owners of the Parent Company | 339 | 570 | 597 | 828 |
| Average no. of outstanding shares before dilution, thousand | 97,635 | 97,685 | 97,624 | 97,649 |
| Average no. of outstanding shares after dilution, thousand | 97,654 | 97,685 | 97,643 | 97,709 |
| 3.47 | 5.84 | 6.12 | 8.48 | |
| Net cash, SEK million | ||||
| Cash and cash equivalents | 819 | 1,019 | 819 | 683 |
| Interest-bearing liabilities | -314 | -706 | -314 | -243 |
| 505 | 313 | 505 | 440 |
Interim Report January-June 2022
MYCRONIC
| Quarterly data | Q2 22 | Q1 22 | Q4 21 | Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 |
|---|---|---|---|---|---|---|---|---|
| Order intake | ||||||||
| Pattern Generators | 176 | 383 | 384 | 407 | 209 | 233 | 403 | 122 |
| High Flex | 332 | 374 | 284 | 334 | 279 | 323 | 269 | 296 |
| High Volume | 484 | 441 | 328 | 236 | 381 | 391 | 163 | 235 |
| Global Technologies | 222 | 260 | 245 | 282 | 144 | 90 | 51 | 89 |
| Internal order intake between divisions | -11 | -17 | -7 | -17 | -11 | -10 | -20 | -4 |
| 1,203 | 1,441 | 1,234 | 1,242 | 1,002 | 1,027 | 865 | 739 | |
| Order Backlog | ||||||||
| Pattern Generators | 635 | 807 | 744 | 759 | 617 | 797 | 1,156 | 1,138 |
| High Flex | 239 | 216 | 130 | 214 | 150 | 134 | 86 | 148 |
| High Volume | 988 | 885 | 809 | 759 | 758 | 692 | 669 | 711 |
| Global Technologies | 284 | 308 | 291 | 299 | 249 | 82 | 57 | 100 |
| 2,146 | 2,217 | 1,975 | 2,030 | 1,774 | 1,706 | 1,969 | 2,096 | |
| Net Sales | ||||||||
| Pattern Generators | 348 | 320 | 399 | 265 | 389 | 592 | 385 | 506 |
| High Flex | 309 | 288 | 368 | 271 | 262 | 276 | 331 | 237 |
| High Volume | 381 | 365 | 283 | 235 | 315 | 368 | 203 | 224 |
| Global Technologies | 246 | 179 | 252 | 232 | 107 | 66 | 93 | 104 |
| Internal net sales between divisions | -11 | -17 | -7 | -17 | -11 | -10 | -20 | -4 |
| 1,273 | 1,135 | 1,295 | 986 | 1,064 | 1,291 | 992 | 1,068 | |
| Gross Profit | ||||||||
| Pattern Generators | 193 | 188 | 224 | 154 | 252 | 476 | 283 | 404 |
| High Flex | 128 | 113 | 152 | 111 | 97 | 110 | 136 | 98 |
| High Volume | 156 | 131 | 91 | 87 | 166 | 165 | 68 | 84 |
| Global Technologies | 102 | 64 | 86 | 52 | 41 | 21 | 32 | 35 |
| 578 | 496 | 553 | 405 | 555 | 772 | 519 | 622 | |
| Gross Margin | ||||||||
| Pattern Generators | 55.4% | 58.8% | 56.0% | 58.0% | 64.6% | 80.4% | 73.6% | 79.7% |
| High Flex | 41.4% | 39.3% | 41.2% | 40.8% | 36.9% | 40.1% | 41.0% | 41.2% |
| High Volume | 40.8% | 35.9% | 32.1% | 37.2% | 52.6% | 44.8% | 33.3% | 37.3% |
| Global Technologies | 41.5% | 35.6% | 34.1% | 22.6% | 37.9% | 32.1% | 34.4% | 33.6% |
| 45.4% | 43.7% | 42.7% | 41.0% | 52.1% | 59.8% | 52.3% | 58.3% | |
| R&D expenses | ||||||||
| Pattern Generators | -60 | -48 | -52 | -45 | -57 | -47 | -51 | -35 |
| High Flex | -42 | -38 | -37 | -36 | -42 | -36 | -36 | -35 |
| High Volume | -40 | -35 | -26 | -28 | -29 | -29 | -30 | -22 |
| Global Technologies | -22 | -24 | -29 | -26 | -15 | -14 | -15 | -39 |
| Total R&D expenses | -164 | -145 | -143 | -136 | -144 | -126 | -132 | -130 |
| Selling expenses | -155 | -132 | -152 | -120 | -132 | -123 | -76 | -101 |
| Administrative expenses | -64 | -62 | -65 | -66 | -55 | -57 | -66 | -52 |
| Other income/expenses | 28 | 49 | 11 | 23 | 17 | 32 | -31 | 9 |
| EBIT | 224 | 206 | 204 | 106 | 241 | 498 | 214 | 348 |
| Of which EBIT Pattern Generators | 110 | 125 | 146 | 94 | 174 | 419 | 201 | 364 |
| Of which EBIT High Flex | 35 | 19 | 59 | 31 | 11 | 35 | 25 | 24 |
| Of which EBIT High Volume | 65 | 55 | 17 | 30 | 94 | 90 | 30 | 38 |
| Of which EBIT Global Technologies | 43 | 31 | 21 | -16 | 7 | -14 | -8 | -57 |
| Of which EBIT Group functions | -30 | -25 | -40 | -34 | -44 | -30 | -35 | -22 |
| EBIT margin | 17.6% | 18.1% | 15.8% | 10.7% | 22.7% | 38.6% | 21.5% | 32.6% |
| Equity per share | 43.16 | 43.29 | 40.94 | 38.10 | 36.96 | 38.43 | 34.58 | 33.54 |
| Earnings per share before/after dilution | 1.79 | 1.69 | 1.82 | 0.82 | 1.84 | 3.99 | 1.80 | 2.71 |
| Closing share price | 143.90 | 176.00 | 211.00 | 218.40 | 258.20 | 205.00 | 245.40 | 211.40 |
Interim Report January-June 2022