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Mycronic Interim / Quarterly Report 2022
2946_10-q_2022-10-20_05eedc0a-8acc-4518-95f4-afa7d0be1668.pdf
Interim / Quarterly Report
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MYCRONIC
Q3
Interim Report January–September 2022
Third quarter
- Order intake amounted to SEK 1,609 (1,242) million, an increase of 30 percent
- Net sales increased 23 percent to SEK 1,214 (986) million. Based on constant exchange rates, net sales increased 10 percent
- EBIT amounted to SEK 203 (106) million and the EBIT margin was 17 (11) percent
- Earnings per share were SEK 1.56 (0.82)
January–September
- Order intake amounted to SEK 4,253 (3,272) million, an increase of 30 percent
- Net sales increased 8 percent to SEK 3,622 (3,341) million. Based on constant exchange rates, net sales decreased 1 percent
- EBIT amounted to SEK 632 (845) million and the EBIT margin was 17 (25) percent
- Earnings per share were SEK 5.03 (6.66)
"Order intake increased during the third quarter by 30 percent compared with a relatively weak corresponding quarter in the preceding year, mainly driven by a strong performance by Pattern Generators, and supported by positive currency effects. Net sales increased 23 percent, with good growth in High Flex and High Volume, here again supported by positive currency effects. EBIT increased to SEK 203 million with an EBIT margin of 17 percent and I am pleased to note that all divisions reported double-digit EBIT margins for the second consecutive quarter," says Anders Lindqvist, President and CEO.
Outlook 2022
It is the Board of Directors' revised opinion that consolidated net sales for 2022 will be at a level of SEK 5 billion at prevailing exchange rates*. Due to the product mix of announced orders in Pattern Generators with deliveries in 2022, the Group's EBIT margin is, as before, expected to be slightly above the previous long-term financial target of >15 percent.
*The previous opinion was of net sales of SEK 5 billion, based on exchange rates at the end of 2021.
| Group summary | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | ||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 1,609 | 1,242 | 4,253 | 3,272 | 5,487 | 4,506 |
| Net Sales, SEK million | 1,214 | 986 | 3,622 | 3,341 | 4,917 | 4,635 |
| Book-to-bill | 1.3 | 1.3 | 1.2 | 1.0 | 1.1 | 1.0 |
| Order backlog, SEK million | 2,542 | 2,030 | 2,542 | 2,030 | 2,542 | 1,975 |
| Gross margin, % | 44.6% | 41.0% | 44.6% | 51.8% | 44.1% | 49.3% |
| EBIT, SEK million | 203 | 106 | 632 | 845 | 836 | 1,049 |
| EBIT margin, % | 16.7% | 10.7% | 17.5% | 25.3% | 17.0% | 22.6% |
| Earnings per share before/after dilution, SEK | 1.56 | 0.82 | 5.03 | 6.66 | 6.86 | 8.48 |
| Cash Flow, SEK million | 67 | -138 | 153 | -444 | -64 | -662 |
| Changes in Net Sales | ||||||
| Total growth, % | 23% | -8% | 8% | 16% | 13% | 19% |
| Organic growth, % | 9% | -22% | -9% | 16% | -3% | 16% |
| Growth from acquisitions, % | 1% | 13% | 8% | 5% | 9% | 7% |
| Currency effects, % | 13% | 1% | 9% | -6% | 8% | -3% |
Interim Report January–September 2022
MYCRONIC
CEO comments
Order intake increased during the third quarter by 30 percent compared with a relatively weak corresponding quarter in the preceding year, mainly driven by a strong performance by Pattern Generators, and supported by positive currency effects. Net sales increased 23 percent, with good growth in High Flex and High Volume, here again supported by positive currency effects. EBIT increased to SEK 203 million with an EBIT margin of 17 percent and I am pleased to note that all divisions reported double-digit EBIT margins for the second consecutive quarter.
In conjunction with Mycronic's Capital Markets Day in September, we presented new, ambitious growth and profitability targets. We also highlighted the previously communicated climate target and presented it together with the financial targets. By 2030, we will double net sales and EBIT while halving our own $\mathrm{CO}_{2}$ emissions. The Group's EBIT margin is to be above 20 percent, the EBIT margin for individual divisions is to be above 10 percent and we undertake to set new climate targets in accordance with Science Based Targets.
At the end of September, we renewed a revolving credit facility of SEK 1,000 million until September 2026 to secure flexibility in connection with business opportunities. In total, we continue to have access to SEK 2,000 million in bank financing, though at present the credit facility is not utilized.
Pattern Generators received its first order for a Prevision 8 Entry Evo during the quarter. This is a new model in the Prevision Evo series of mask writers to write photomasks for displays up to mask size G8. Third quarter order intake was strong and the division received orders for seven mask
Order intake and net sales, rolling 12 months
writers: one Prevision 8 Entry Evo, two Prevision Lite 8 Evos and four SLXs. At the same time, one SLX was delivered.
Demand remained at a healthy level for High Flex during the third quarter, despite an uncertain macroeconomic environment. Europe has continued to show positive development, with particularly strong demand noted in Italy. North America also performed well. High Flex's sales and service center in Mexico is expected to be operational in the fourth quarter.
For High Volume, suppliers to the electric car industry witnessed high demand and continued to invest. Consumer electronics remained weak and the division's customers in this industry are thus postponing new investments.
For Global Technologies, customers' investments in China continued in substrates, which meant that the division's electrical test equipment for substrates continued to demonstrate strong performance. In parallel, demand for test equipment for PCBs was stable, with the decline in investments in consumer electronics offset by demand driven by high layer count PCBs. Demand in die bonding from China in telecom and datacom developed negatively.
During the quarter, our die bonding operations within Global Technologies struggled with component shortages, while the other divisions were largely successful in delivering as planned. The high energy prices have not had a material direct impact on cost.
The revised opinion of the Board of Directors and myself is that consolidated net sales for 2022 remain at a level of SEK 5 billion, but based on prevailing exchange rates, where a softer SEK has compensated for weaker demand in China.
Anders Lindqvist, President and CEO
Gross and EBIT margin, rolling 12 months
Interim Report January-September 2022
MYCRONIC
Financial performance
GROUP
| Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 1,609 | 1,242 | 4,253 | 3,272 | 5,487 | 4,506 |
| Order backlog, SEK million | 2,542 | 2,030 | 2,542 | 2,030 | 2,542 | 1,975 |
| Net Sales, SEK million | 1,214 | 986 | 3,622 | 3,341 | 4,917 | 4,635 |
| Gross profit, SEK million | 541 | 405 | 1,615 | 1,731 | 2,168 | 2,284 |
| Gross margin, % | 44.6% | 41.0% | 44.6% | 51.8% | 44.1% | 49.3% |
| EBIT, SEK million | 203 | 106 | 632 | 845 | 836 | 1,049 |
| EBIT margin, % | 16.7% | 10.7% | 17.5% | 25.3% | 17.0% | 22.6% |
| EBITDA, SEK million | 265 | 162 | 811 | 993 | 1,072 | 1,254 |
In September, Mycronic held a Capital Markets Day at the company's headquarters, during which new financial and sustainability targets were presented. The financial targets state that Mycronic is to achieve net sales of SEK 10 billion and that EBIT is to exceed SEK 2 billion by 2030. In addition, the Group's EBIT margin is to be above 20 percent, while the EBIT margin for individual divisions is to be above 10 percent.
During the quarter, the company repurchased 113,900 of its own shares for delivery to participants of LTIP 2022. At the end of September, a revolving credit facility with Nordea of SEK 1,000 million was renewed until September 2026.
The Group's order intake increased in the third quarter by 30 percent to SEK 1,609 (1,242) million, mainly driven by a favorable performance by Pattern Generators, and supported by positive currency effects. For the first nine months, order intake increased 30 percent to SEK 4,253 (3,272) million. Order intake excluding acquisitions and divestment increased 31 percent in the quarter and 22 percent for the first nine months of the year. The Group's order backlog was SEK 2,542 (2,030) million at the end of the quarter.
Net sales increased 23 percent to SEK 1,214 (986) million, with good growth in High Flex and High Volume, here again supported by positive currency effects. For the first nine months, net sales increased 8 percent to SEK 3,622 (3,341) million. Net sales were positively impacted by currency effects of SEK 127 million for the quarter and SEK 315 million for the first nine months.
In the third quarter 2021, the Group's gross margin was negatively affected by SEK 26 million in acquisition-related costs due to the acquisition of atg L&M. This partly explains the improvement in gross margin this year to 45 (41) percent. The gross margin for the first nine months was 45 (52) percent.
EBIT increased to SEK 203 (106) million during the quarter, corresponding to an EBIT margin of 17 (11) percent. EBIT for the first nine months of the year amounted to SEK 632 (845) million, corresponding to an EBIT margin of 17 (25) percent. Acquisition-related costs amounted to SEK 17 (42) million for the quarter and SEK 49 (73) million for the first nine months of the year.
Cash flow and financial position
Consolidated cash and cash equivalents at the end of September amounted to SEK 906 (887) million. Cash flow amounted to SEK 153 (-444) million for the first nine months of the year. Cash flow from operating activities amounted to SEK 416 (758) million. Working capital increased SEK 203 million, driven by trade receivables and inventory.
Investments during the first nine months of the year generated a positive cash flow of SEK 104 million, compared with a negative cash flow of SEK 1,093 million in the preceding year. The divestment of AEi in February generated SEK 216 million in cash flow, while the capitalization of product development amounted to SEK 25 (33) million and investments in tangible assets to SEK 87 (29) million. Financing activities utilized SEK 366 (108) million, of which SEK 294 million related to dividends to shareholders.
Sustainability
In conjunction with Mycronic's Capital Market Day, the company's climate target was presented together with the financial targets. Mycronic's ambition is to cut $\mathrm{CO}_{2}$ emissions from production sites, offices, transportation and travel with 50 percent by 2030. In addition, Mycronic has undertaken to set Science Based Targets.
Interim Report January-September 2022
MYCRONIC
PATTERN GENERATORS
| Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 718 | 407 | 1,276 | 849 | 1,660 | 1,233 |
| Order backlog, SEK million | 1,106 | 759 | 1,106 | 759 | 1,106 | 744 |
| Net Sales, SEK million | 246 | 265 | 914 | 1,246 | 1,313 | 1,645 |
| Gross profit, SEK million | 154 | 154 | 535 | 881 | 758 | 1,105 |
| Gross margin, % | 62.5% | 58.0% | 58.5% | 70.7% | 57.7% | 67.2% |
| EBIT, SEK million | 76 | 94 | 311 | 686 | 457 | 832 |
| EBIT margin, % | 31.0% | 35.3% | 34.0% | 55.1% | 34.8% | 50.6% |
| EBITDA | 88 | 103 | 343 | 714 | 499 | 870 |
| R&D expenditures, SEK million | -50 | -48 | -159 | -162 | -215 | -219 |
| R&D costs, SEK million | -49 | -45 | -157 | -149 | -209 | -201 |
Pattern Generators received its first order for a Prevision 8 Entry Evo during the quarter. This is a new model in the Prevision Evo series of mask writers to write photomasks for displays up to mask size G8. Unlike Prevision Lite 8 Evo, this model is supplied with flexible configuration options, which allows the customers to upgrade to a Prevision 8 Evo in order to produce more advanced photomasks.
Third quarter order intake was strong and the division received orders for seven mask writers: one Prevision 8 Entry Evo, two Prevision Lite 8 Evos and four SLXs. Order intake increased 76 percent to SEK 718 (407) million. For the first nine months of the year, order intake increased 50 percent to SEK 1,276 (849) million.
At the end of the September, the order backlog amounted to SEK 1,106 (759) million and contained 15 systems with planned deliveries as follows:
2022 Q4: 4 SLXs, 1 Prevision Lite 8 Evo
2023 Q1: 2 SLXs, 1 Prevision Lite 8 Evo
2023 Q2: 1 SLX
2023 Q3: 1 Prevision Lite 8 Evo
2023 Q4: 2 SLXs, 1 Prevision 8 Entry Evo, 1 Prevision Lite 8 Evo
2024 Q1: 1 SLX
The delivery of an SLX announced earlier, has been moved from the third to the fourth quarter of 2022.
Pattern Generators delivered one SLX during the third quarter, compared with one Prevision Lite 8 Evo and one SLX during the same period last year. Net sales declined 7 percent and amounted to SEK 246 (265) million. For the first nine months of the year, net sales decreased 27 percent to SEK 914 (1,246) million. Net sales were positively impacted by currency effects of SEK 19 million for the third quarter and SEK 58 million for the first nine months.
The gross margin for the quarter amounted to 62 (58) percent and 59 (71) percent for the first nine months of the year.
EBIT declined to SEK 76 (94) million during the quarter, corresponding to an EBIT margin of 31 (35) percent. Due to lower net sales and a less advantageous product mix, EBIT for the first nine months of the year decreased to SEK 311 (686) million, corresponding to an EBIT margin of 34 (55) percent.
R&D costs for the quarter amounted to SEK 49 (45) million and SEK 157 (149) million for the first nine months. The capitalization of development costs amounted to SEK 0 (3) million for the quarter and SEK 2 (13) million for the first nine months.
Interim Report January–September 2022
MYCRONIC
HIGH FLEX
| Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 346 | 334 | 1,052 | 936 | 1,337 | 1,220 |
| Order backlog, SEK million | 243 | 214 | 243 | 214 | 243 | 130 |
| Net Sales, SEK million | 341 | 271 | 939 | 809 | 1,307 | 1,176 |
| Gross profit, SEK million | 139 | 111 | 381 | 318 | 532 | 469 |
| Gross margin, % | 40.8% | 40.8% | 40.5% | 39.3% | 40.7% | 39.9% |
| EBIT, SEK million | 43 | 31 | 97 | 77 | 157 | 136 |
| EBIT margin, % | 12.7% | 11.5% | 10.4% | 9.5% | 12.0% | 11.6% |
| EBITDA | 53 | 41 | 125 | 105 | 194 | 174 |
| R&D expenditures, SEK million | -45 | -41 | -141 | -131 | -186 | -177 |
| R&D costs, SEK million | -42 | -36 | -121 | -114 | -158 | -151 |
Demand remained at a healthy level during the third quarter, despite an uncertain macroeconomic environment. Europe has continued to show positive development, with particularly strong demand noted in Italy. North America also performed well. High Flex's sales and service center in Mexico is expected to be operational in the fourth quarter. Order intake rose 4 percent in the quarter and amounted to SEK 346 (334) million. At the end of the quarter, High Flex received an order of almost USD 2 million, for installation in Australia. For the first nine months of the year, order intake increased 12 percent to SEK 1,052 (936) million. At the end of the quarter, the order backlog totaled SEK 243 (214) million.
During the quarter High Flex successfully managed the situation with components shortage and logistics challenges. Net sales increased 26 percent to SEK 341 (271) million. For the first nine months, net sales increased 16 percent to SEK
939 (809) million. Net sales were positively impacted by currency effects of SEK 35 million for the quarter and SEK 81 million for the first nine months.
High Flex continued maintaining good delivery times for its key products. The gross margin for the quarter was 41 (41) percent and 41 (39) percent for the first nine months.
EBIT increased to SEK 43 (31) million with an EBIT margin of 13 (11) percent. EBIT for the first nine months of the year was SEK 97 (77) million, corresponding to an EBIT margin of 10 (9) percent.
R&D costs for the quarter amounted to SEK 42 (36) million and SEK 121 (114) million for the first nine months. The capitalization of development costs amounted to SEK 4 (6) million for the quarter and SEK 23 (20) million for the first nine months of the year.
Interim Report January–September 2022
MYCRONIC
HIGH VOLUME
| Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 331 | 236 | 1,257 | 1,007 | 1,585 | 1,336 |
| Order backlog, SEK million | 894 | 759 | 894 | 759 | 894 | 809 |
| Net Sales, SEK million | 426 | 235 | 1,172 | 918 | 1,455 | 1,200 |
| Gross profit, SEK million | 166 | 87 | 452 | 418 | 543 | 508 |
| Gross margin, % | 38.9% | 37.2% | 38.6% | 45.5% | 37.3% | 42.3% |
| EBIT, SEK million | 95 | 30 | 216 | 214 | 233 | 231 |
| EBIT margin, % | 22.4% | 12.8% | 18.4% | 23.3% | 16.0% | 19.3% |
| EBITDA | 102 | 35 | 236 | 228 | 260 | 251 |
| R&D expenditures, SEK million | -38 | -27 | -109 | -83 | -133 | -107 |
| R&D costs, SEK million | -40 | -28 | -114 | -86 | -140 | -112 |
During the quarter, suppliers to the electric car industry witnessed high demand and continued to invest. Consumer electronics remained weak and the division's customers in this industry are thus postponing new investments. Order intake rose 41 percent in the quarter and amounted to SEK 331 (236) million. Order intake excluding acquisitions increased 30 percent, supported by strong positive currency effects, while in local currency order intake increased 17 percent. For the first nine months of the year, order intake increased 25 percent to SEK 1,257 (1,007) million, while the order intake excluding acquisitions increased 16 percent, fully explained by positive currency effects. At the end of the quarter, the order backlog totaled SEK 894 (759) million.
Component and raw material availability, as well as the distribution logistics situation, improved in the third quarter. High Volume has found alternative local suppliers and freight prices fell sharply from peak levels. During the quarter, the division also established increased production capacity in Shenzhen. Net sales increased 81 percent in the
period to SEK 426 (235) million compared to a weak corresponding quarter in the previous year, with strong volume increases supported by the acquisition and positive currency effects. For the first nine months, net sales increased 28 percent to SEK 1,172 (918) million. Organic net sales increased 49 percent during the quarter and 6 percent for the first nine months of the year. Net sales were positively impacted by currency effects of SEK 51 million for the quarter and SEK 135 million for the first nine months.
The gross margin for the third quarter amounted to 39 (37) percent and 39 (46) percent for the first nine months.
The division's EBIT for the third quarter increased to SEK 95 (30) million, corresponding to an EBIT margin of 22 (13) percent. EBIT for the first nine months of the year amounted to SEK 216 (214) million, corresponding to an EBIT margin of 18 (23) percent.
R&D costs for the quarter amounted to SEK 40 (28) million and SEK 114 (86) million for the first nine months.
Interim Report January–September 2022
MYCRONIC
GLOBAL TECHNOLOGIES
| Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Order intake, SEK million | 232 | 282 | 713 | 517 | 958 | 761 |
| Order backlog, SEK million | 298 | 299 | 298 | 299 | 298 | 291 |
| Net Sales, SEK million | 218 | 232 | 642 | 405 | 894 | 657 |
| Gross profit, SEK million | 85 | 52 | 250 | 114 | 336 | 200 |
| Gross margin, % | 38.9% | 22.6% | 39.0% | 28.2% | 37.6% | 30.4% |
| EBIT, SEK million | 22 | -16 | 95 | -23 | 116 | -3 |
| EBIT margin, % | 10.0% | -6.7% | 14.8% | -5.8% | 13.0% | -0.4% |
| EBITDA | 35 | -2 | 135 | 1 | 169 | 34 |
| R&D expenditures, SEK million | -16 | -20 | -50 | -45 | -73 | -68 |
| R&D costs, SEK million | -23 | -26 | -69 | -55 | -98 | -84 |
In China, customers' investments continued in substrates, which meant that the division's electrical test equipment for substrates continued to demonstrate strong performance. In parallel, demand for test equipment for PCBs was stable, with the decline in investments in consumer electronics offset by demand driven by high layer count PCBs. Demand in die bonding from China in telecom and datacom developed negatively. Global Technologies' order intake amounted to SEK 232 (282) million for the quarter and SEK 713 (517) million for the first nine months. Order intake excluding acquisition and divestment was during the third quarter at the same level as the previous year and increased 4 percent for the first nine months. At the end of the quarter, the order backlog totaled SEK 298 (299) million.
During the quarter, the operations in die bonding faced challenges in terms of the supply of components while electrical testing successfully executed its production plan despite the strained component supply situation. Net sales amounted to SEK 218 (232) million for the quarter and SEK 642 (405) million for the first nine months. Organic net sales decreased 10 percent in the quarter and was for the first nine months at the same level as the previous year. Net sales for the quarter were positively impacted by currency effects of SEK 24 million and the first nine months positively by SEK 45 million.
During the third quarter 2021, Global Technologies' gross margin was negatively affected by SEK 26 million in acquisition-related costs due to the acquisition of atg L&M. This partly explains the improvement in gross margin this year to 39 (23) percent. For the first nine months, the gross margin was 39 (28) percent.
EBIT for the quarter increased to SEK 22 (-16) million corresponding to an EBIT margin of 10 (-7) percent. EBIT for the first nine months of the year amounted to SEK 95 (-23) million, corresponding to an EBIT margin of 15 (-6) percent. The divestment of AEi in February had a positive EBIT impact of SEK 25 million.
R&D costs for the quarter amounted to SEK 23 (26) million and SEK 69 (55) million for the first nine months.
Interim Report January–September 2022
The electronics industry
The global electronics industry grew by 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 2.8 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 6.3 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 5.6 percent1. The display market is estimated to have grown 25.7 percent in 2021 to USD 157 billion2. For 2022, negative growth of 21.9 percent is forecast due to a reduction in the prices of LCD displays. During the 2022-2026 period, the display market is expected to return to positive growth, with the long-term trend towards a larger share of advanced AMOLED displays expected to continue.
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 half of 2022 compared with the same period last year, even though the markets in Europe, North and South America and Japan reported growth3. 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 by 16.4 percent in 2022, to USD 14.7 billion8. For the period 2021-2027 the market is forecast to grow to USD 24.6 billion8, which corresponds to annual growth of 11.7 percent. Growth expectations for the global market for printed circuit boards and substrates has been revised downward to 1.5 percent in 2022 to USD 82.1 billion9. Growth continues to be driven by high layer count PCBs and substrates. For the period 2021-2026, the market is forecast to grow to USD 101.6 billion9, which corresponds to annual growth of 4.6 percent.
PATTERN GENERATORS MARKET AREA
PHOTOMASKS FOR DISPLAYS
In 2021 the market showed growth of 14.0 percent, from USD 821 million to USD 936 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 show positive growth of 9.8 percent to USD 1,028 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 6.0 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 addressed by laser-based mask writers 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.
MYCRONIC
Other
PARENT COMPANY
Mycronic AB is the Group’s Parent Company.
The Parent Company’s net sales amounted to SEK 1,566 (1,830) million for the first nine months of the year. EBIT amounted to SEK 434 (634) million.
Cash and cash equivalents at the end of September amounted to SEK 269 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 October 20, 2022 at 08:00 a.m. CEST.
Financial reports and press releases are published in Swedish and English and are available on www.mycronic.com.
This report was reviewed by the company’s auditor.
CONFERENCE CALL
Mycronic will hold a teleconference at 10:00 a.m. CEST on October 20, 2022, with President and CEO Anders Lindqvist and CFO & Sr VP Corporate Development Pierre Brorsson. To participate, please dial one of the numbers or watch via the web link below.
Täby, October 20, 2022
Mycronic AB (publ)
Anders Lindqvist
President and CEO
Sweden: +46 8 505 100 31
UK: +44 207 107 0613
United States: +1 631 570 5613
https://mycronic-external.creo.se/221020
FINANCIAL CALENDAR
| Year-end report 2022 | February 10, 2023 |
|---|---|
| Annual and Sustainability Report 2022 | April 3, 2023 |
| Interim Report January–March 2023 | April 27, 2023 |
| Annual General Meeting 2023 | May 9, 2023 |
| Interim Report January–June 2023 | July 14, 2023 |
| Interim Report January–Sept. 2023 | October 19, 2023 |
| Year-end report 2023 | February 8, 2024 |
FOR ADDITIONAL INFORMATION, PLEASE CONTACT
Anders Lindqvist
President and CEO
Tel: +46 8 638 52 00
E-mail: [email protected]
Pierre Brorsson
CFO & Sr VP Corporate Development
Tel: +46 8 638 52 00
E-mail: [email protected]
Sven Chetkovich
Director Investor Relations
Tel: +46 70 558 39 19
E-mail: [email protected]
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–September 2022
MYCRONIC
Group
| Consolidated profit and loss accounts in summary, SEK million | Note | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | ||
|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | ||||
| Net sales | 5, 6 | 1,214 | 986 | 3,622 | 3,341 | 4,917 | 4,635 |
| Cost of goods sold | -672 | -581 | -2,007 | -1,609 | -2,748 | -2,351 | |
| Gross profit | 541 | 405 | 1,615 | 1,731 | 2,168 | 2,284 | |
| Research and development | 7 | -154 | -136 | -462 | -405 | -606 | -548 |
| Selling expenses | -157 | -120 | -445 | -374 | -597 | -526 | |
| Administrative expenses | -65 | -66 | -191 | -179 | -256 | -243 | |
| Other income and expenses | 37 | 23 | 115 | 71 | 126 | 82 | |
| EBIT | 203 | 106 | 632 | 845 | 836 | 1,049 | |
| Financial income and expenses | -2 | -1 | -5 | -2 | -6 | -2 | |
| Profit/loss before tax | 201 | 105 | 627 | 843 | 830 | 1,046 | |
| Tax | -50 | -25 | -138 | -193 | -164 | -219 | |
| Net Profit/loss | 151 | 80 | 489 | 650 | 666 | 827 | |
| Earnings per share before/after dilution, SEK | 1.56 | 0.82 | 5.03 | 6.66 | 6.86 | 8.48 | |
| Average number of outstanding shares, thousand | 97,523 | 97,599 | 97,597 | 97,656 | 97,605 | 97,649 | |
| Results attributable to owners of the Parent Company | 152 | 80 | 491 | 650 | 669 | 828 | |
| Results attributable to non-controlling interests | -1 | - | -2 | - | -3 | -1 | |
| 151 | 80 | 489 | 650 | 666 | 827 | ||
| Consolidated statement of comprehensive income in summary, SEK million | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | |||
| --- | --- | --- | --- | --- | --- | --- | |
| 2022 | 2021 | 2022 | 2021 | ||||
| Net Profit/loss | 151 | 80 | 489 | 650 | 666 | 827 | |
| Other comprehensive income | |||||||
| Items not to be reclassified to profit/loss, after tax | |||||||
| Actuarial profit/loss from defined benefits to employees | - | - | - | - | 1 | 1 | |
| Items to be reclassified to profit/loss, after tax | |||||||
| Translation differences at translating foreign entities | 108 | 62 | 303 | 120 | 374 | 191 | |
| Hedging of net investment in foreign entities | - | -3 | - | -3 | -3 | -6 | |
| Changes in cash flow hedges | -31 | -8 | -60 | -60 | -76 | -76 | |
| Total comprehensive income | 228 | 131 | 732 | 707 | 963 | 938 | |
| Total comprehensive income attributable to owners of the Parent Company | 228 | 131 | 729 | 707 | 958 | 936 | |
| Total comprehensive income attributable to non-controlling interests | 0 | - | 3 | - | 4 | 2 | |
| 228 | 131 | 732 | 707 | 963 | 938 |
Interim Report January–September 2022
MYCRONIC
| Consolidated statements of financial position in summary, SEK million | 30 Sep 22 | 30 Sep 21 | 31 Dec 21 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible assets | 2,440 | 2,154 | 2,296 |
| Tangible assets | 506 | 454 | 429 |
| Non-current receivables | 57 | 37 | 55 |
| Deferred tax assets | 160 | 135 | 145 |
| Total fixed assets | 3,162 | 2,780 | 2,926 |
| Current assets | |||
| Inventories | 1,587 | 1,363 | 1,363 |
| Trade receivables | 972 | 604 | 658 |
| Other current receivables | 308 | 317 | 320 |
| Cash and cash equivalents | 906 | 887 | 683 |
| Total current assets | 3,772 | 3,172 | 3,024 |
| Assets held for sale* | - | 167 | 186 |
| Total assets | 6,934 | 6,118 | 6,136 |
| EQUITY AND LIABILITIES | |||
| Equity | 4,428 | 3,719 | 3,997 |
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | 195 | 188 | 181 |
| Deferred tax liabilities | 311 | 286 | 329 |
| Other non-current liabilities | 51 | 56 | 59 |
| Total non-current liabilities | 556 | 529 | 570 |
| Current liabilities | |||
| Current interest-bearing liabilities | 72 | 377 | 62 |
| Trade payables | 369 | 301 | 295 |
| Other current liabilities | 1,509 | 1,163 | 1,186 |
| Total current liabilities | 1,950 | 1,840 | 1,544 |
| Liabilities directly associated with the assets held for sale* | - | 30 | 26 |
| Total liabilities | 2,506 | 2,399 | 2,139 |
| Total equity and liabilities | 6,934 | 6,118 | 6,136 |
- Pertains to the divestment of AEi, which was completed at the beginning of February 2022.
Interim Report January–September 2022
MYCRONIC
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| Consolidated cash flow statements in summary, SEK million | 2022 | 2021 | 2022 | 2021 | 12 month | 2021 |
| Profit/loss before tax | 201 | 105 | 627 | 843 | 830 | 1,046 |
| Adjustments for non-cash items and paid income tax | 20 | 7 | -8 | -80 | 92 | 20 |
| Change in working capital | -51 | -37 | -203 | -5 | -266 | -68 |
| Cash flow from operating activities | 170 | 76 | 416 | 758 | 656 | 998 |
| Cash flow from investing activities | -16 | -23 | 104 | -1,093 | -26 | -1,223 |
| Cash flow from financing activities | -87 | -191 | -366 | -108 | -694 | -437 |
| Cash flow for the period | 67 | -138 | 153 | -444 | -64 | -662 |
| Cash and cash equivalents, opening balance* | 819 | 1,019 | 692 | 1,303 | 895 | 1,303 |
| Exchange difference for cash and cash equivalents | 20 | 15 | 60 | 37 | 75 | 51 |
| Cash and cash equivalents classified as assets held for sale | - | -8 | - | -8 | - | -9 |
| Cash and cash equivalents, closing balance | 906 | 887 | 906 | 887 | 906 | 683 |
*Cash and cash equivalents at the beginning of 2022 and rolling 12 months include cash and cash equivalents classified as assets held for sale.
| Jan-Sep | 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 | -4 |
| Change of non-controlling interests* | - | -53 | -13 |
| Swap agreement related to own shares | - | 4 | 10 |
| Repurchase of own shares | -16 | -23 | -23 |
| Equity-settled share based payments | 9 | 4 | 6 |
| Total comprehensive income | 732 | 707 | 938 |
| Closing balance | 4,428 | 3,719 | 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-Sep | Jan-Dec | ||
|---|---|---|---|
| Other key figures * | 2022 | 2021 | 2021 |
| Equity per share, SEK | 45.40 | 38.10 | 40.94 |
| Return on equity (rolling 12 months), % | 16.4% | 23.7% | 22.4% |
| Return on capital employed (rolling 12 months), % | 18.8% | 27.2% | 26.9% |
| Net cash, SEK million | 639 | 323 | 440 |
| Average number of employees | 1,987 | 1,636 | 1,683 |
*In addition to Key Figures presented on page 1. See calculations on page 18.
Interim Report January–September 2022
MYCRONIC
Parent Company
| Q3 | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| Profit/loss accounts in summary, Parent Company, SEK million | 2022 | 2021 | 2022 | 2021 | 12 month | 2021 |
| Net sales | 460 | 457 | 1,566 | 1,830 | 2,293 | 2,557 |
| Cost of goods sold | -244 | -243 | -834 | -779 | -1,219 | -1,165 |
| Gross profit | 216 | 214 | 732 | 1,051 | 1,073 | 1,392 |
| Other operating expenses | -71 | -106 | -298 | -417 | -479 | -598 |
| EBIT | 145 | 108 | 434 | 634 | 594 | 794 |
| Result from financial items | 9 | 3 | 95 | 134 | 101 | 140 |
| Profit/loss after financial items | 154 | 111 | 529 | 768 | 696 | 934 |
| Appropriations | - | - | - | - | -199 | -199 |
| Profit/loss before tax | 154 | 111 | 529 | 768 | 496 | 735 |
| Tax | -34 | -23 | -96 | -132 | -99 | -135 |
| Net Profit/loss | 121 | 88 | 433 | 635 | 398 | 600 |
| Total comprehensive income | 121 | 88 | 433 | 635 | 398 | 600 |
| Balance sheets in summary, Parent Company, SEK million | 30 Sep 22 | 30 Sep 21 | 31 Dec 21 | |||
| --- | --- | --- | --- | |||
| ASSETS | ||||||
| Fixed assets | ||||||
| Intangible and tangible assets | 151 | 340 | 119 | |||
| Financial assets | 3,023 | 2,762 | 2,915 | |||
| Total fixed assets | 3,174 | 3,102 | 3,034 | |||
| Current assets | ||||||
| Inventories | 601 | 553 | 512 | |||
| Current receivables | 565 | 691 | 641 | |||
| Cash and cash equivalents | 269 | 157 | 116 | |||
| Total current assets | 1,435 | 1,401 | 1,269 | |||
| TOTAL ASSETS | 4,609 | 4,504 | 4,303 | |||
| EQUITY AND LIABILITIES | ||||||
| Equity | 2,618 | 2,515 | 2,486 | |||
| Untaxed reserves | 1,275 | 1,076 | 1,275 | |||
| Non-current interest-bearing liabilities | - | - | - | |||
| Other non-current liabilities | 2 | 1 | 1 | |||
| Total non-current liabilities | 2 | 1 | 1 | |||
| Current interest bearing liabilities | - | 323 | 8 | |||
| Other current liabilities | 713 | 587 | 532 | |||
| Total current liabilities | 713 | 911 | 540 | |||
| TOTAL EQUITY AND LIABILITIES | 4,609 | 4,504 | 4,303 |
Interim Report January–September 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
After the end of the period, an order for two SLX mask writers was received.
NOTE 5 REVENUE FROM CONTRACTS WITH CUSTOMERS
| Revenue by geographical market, SEK million | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | ||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| EMEA | 185 | 168 | 547 | 411 | 778 | 642 |
| North and South America | 212 | 126 | 567 | 372 | 864 | 669 |
| Asia | 817 | 692 | 2,509 | 2,557 | 3,275 | 3,323 |
| 1,214 | 986 | 3,622 | 3,341 | 4,917 | 4,635 | |
| Revenue by type of good/service, SEK million | ||||||
| System | 821 | 631 | 2,516 | 2,412 | 3,445 | 3,340 |
| Aftermarket | 392 | 354 | 1,106 | 929 | 1,471 | 1,295 |
| 1,214 | 986 | 3,622 | 3,341 | 4,917 | 4,635 | |
| Timing of revenue recognition, SEK million | ||||||
| Goods transferred at a point in time | 965 | 791 | 2,896 | 2,764 | 3,948 | 3,817 |
| Services transferred over time | 249 | 195 | 726 | 576 | 968 | 818 |
| 1,214 | 986 | 3,622 | 3,341 | 4,917 | 4,635 |
Interim Report January–September 2022
MYCRONIC
NOTE 6 SEGMENT REPORTING
| SEK million | Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | ||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Net sales by Division | ||||||
| Pattern Generators | 246 | 265 | 914 | 1,246 | 1,313 | 1,645 |
| High Flex | 341 | 271 | 939 | 809 | 1,307 | 1,176 |
| High Volume | 426 | 235 | 1,172 | 918 | 1,455 | 1,200 |
| Global Technologies | 218 | 232 | 642 | 405 | 894 | 657 |
| Internal net sales between divisions | -17 | -17 | -45 | -37 | -52 | -44 |
| 1,214 | 986 | 3,622 | 3,341 | 4,917 | 4,635 | |
| EBIT by Division | ||||||
| Pattern Generators | 76 | 94 | 311 | 686 | 457 | 832 |
| High Flex | 43 | 31 | 97 | 77 | 157 | 136 |
| High Volume | 95 | 30 | 216 | 214 | 233 | 231 |
| Global Technologies | 22 | -16 | 95 | -23 | 116 | -3 |
| Group functions etc | -34 | -34 | -89 | -109 | -130 | -149 |
| Amortization of previously acquired intangible assets | - | - | - | -2 | - | -2 |
| Effects from IFRS 16 | 1 | 1 | 3 | 2 | 5 | 3 |
| Group | 203 | 106 | 632 | 845 | 836 | 1,049 |
| SEK million | 30 Sep 22 | 30 Sep 21 | 31 Dec 21 | |||
| --- | --- | --- | --- | |||
| Assets by Division | ||||||
| Capitalized Development Costs | ||||||
| Pattern Generators | 60 | 71 | 72 | |||
| High Flex | 62 | 50 | 54 | |||
| 122 | 122 | 126 | ||||
| Inventories | ||||||
| Pattern Generators | 439 | 430 | 411 | |||
| High Flex | 323 | 260 | 244 | |||
| High Volume | 600 | 521 | 568 | |||
| Global Technologies | 235 | 155 | 148 | |||
| 1,587 | 1,363 | 1,363 | ||||
| Trade Receivables | ||||||
| Pattern Generators | 215 | 150 | 182 | |||
| High Flex | 289 | 201 | 240 | |||
| High Volume | 312 | 91 | 117 | |||
| Global Technologies | 155 | 161 | 118 | |||
| 972 | 604 | 658 |
Interim Report January–September 2022
MYCRONIC
NOTE 7 RESEARCH AND DEVELOPMENT COSTS
| Q3 | Jan-Sep | Rolling 12 month | Jan-Dec 2021 | |||
|---|---|---|---|---|---|---|
| Research and development costs, SEK million | 2022 | 2021 | 2022 | 2021 | ||
| R&D expenditures | ||||||
| Pattern Generators | -50 | -48 | -159 | -162 | -215 | -219 |
| High Flex | -45 | -41 | -141 | -131 | -186 | -177 |
| High Volume | -38 | -27 | -109 | -83 | -133 | -107 |
| Global Technologies | -16 | -20 | -50 | -45 | -73 | -68 |
| -149 | -136 | -459 | -422 | -607 | -570 | |
| Capitalization of Development Costs | ||||||
| Pattern Generators | 0 | 3 | 2 | 13 | 6 | 17 |
| High Flex | 4 | 6 | 23 | 20 | 32 | 29 |
| 5 | 9 | 25 | 33 | 38 | 46 | |
| Amortization of Acquired Technology | ||||||
| High Flex | -1 | -1 | -3 | -3 | -4 | -4 |
| High Volume | -2 | -1 | -6 | -3 | -7 | -5 |
| Global Technologies | -7 | -6 | -19 | -10 | -25 | -16 |
| -10 | -9 | -28 | -17 | -37 | -25 | |
| Reported cost | -154 | -136 | -462 | -405 | -606 | -548 |
Interim Report January–September 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.
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–September 2022
MYCRONIC
| Return on equity | Jan-Sep | Rolling | Jan-Dec | |||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 12 month | 2021 | 12 month | 2021 | |
| Net profit/loss (rolling 12 months) | 666 | 830 | 666 | 827 | ||
| Average shareholders’ equity | 4,073 | 3,497 | 4,073 | 3,687 | ||
| 16.4% | 23.7% | 16.4% | 22.4% | |||
| Return on capital employed | ||||||
| Profit/loss before tax (rolling 12 months) | 830 | 1,054 | 830 | 1,046 | ||
| Financial expenses | 13 | 14 | 13 | 14 | ||
| Profit/loss before financial expenses | 843 | 1,068 | 843 | 1,060 | ||
| Average balance sheet total | 6,526 | 5,669 | 6,526 | 5,728 | ||
| Average non-interest-bearing liabilities | 2,037 | 1,738 | 2,037 | 1,787 | ||
| Average capital employed | 4,489 | 3,931 | 4,489 | 3,941 | ||
| 18.8% | 27.2% | 18.8% | 26.9% | |||
| Book-to-bill | ||||||
| Order intake | 4,253 | 3,272 | 5,487 | 4,506 | ||
| Net sales | 3,622 | 3,341 | 4,917 | 4,635 | ||
| 1.2 | 1.0 | 1.1 | 1.0 | |||
| EBITDA | ||||||
| EBIT | 632 | 845 | 836 | 1,049 | ||
| Depreciation/Amortization | 179 | 149 | 236 | 205 | ||
| 811 | 993 | 1,072 | 1,254 | |||
| Underlying EBIT | ||||||
| EBIT | 632 | 845 | 836 | 1,049 | ||
| Acquisition-related costs included in: | ||||||
| Cost of goods sold | - | 26 | 4 | 30 | ||
| Operating expenses | 49 | 47 | 69 | 67 | ||
| 49 | 73 | 73 | 97 | |||
| Gains from divestments of subsidiaries | -25 | - | -25 | - | ||
| 655 | 917 | 884 | 1,146 | |||
| Equity per share | ||||||
| Equity at balance day | 4,428 | 3,719 | 4,428 | 3,997 | ||
| No. of outstanding shares at end of period, thousand | 97,529 | 97,608 | 97,529 | 97,635 | ||
| 45.40 | 38.10 | 45.40 | 40.94 | |||
| Earnings per share before/after dilution, SEK | ||||||
| Net Profit/loss attributable to owners of the Parent Company | 491 | 650 | 669 | 828 | ||
| Average no. of outstanding shares before dilution, thousand | 97,597 | 97,656 | 97,605 | 97,649 | ||
| Average no. of outstanding shares after dilution, thousand | 97,613 | 97,690 | 97,624 | 97,709 | ||
| 5.03 | 6.66 | 6.86 | 8.48 | |||
| Net cash, SEK million | ||||||
| Cash and cash equivalents | 906 | 887 | 906 | 683 | ||
| Interest-bearing liabilities | -267 | -564 | -267 | -243 | ||
| 639 | 323 | 639 | 440 |
Interim Report January–September 2022
18 (20)
MYCRONIC
| Quarterly data | Q3 22 | Q2 22 | Q1 22 | Q4 21 | Q3 21 | Q2 21 | Q1 21 | Q4 20 |
|---|---|---|---|---|---|---|---|---|
| Order intake | ||||||||
| Pattern Generators | 718 | 176 | 383 | 384 | 407 | 209 | 233 | 403 |
| High Flex | 346 | 332 | 374 | 284 | 334 | 279 | 323 | 269 |
| High Volume | 331 | 484 | 441 | 328 | 236 | 381 | 391 | 163 |
| Global Technologies | 232 | 222 | 260 | 245 | 282 | 144 | 90 | 51 |
| Internal order intake between divisions | -17 | -11 | -17 | -7 | -17 | -11 | -10 | -20 |
| 1,609 | 1,203 | 1,441 | 1,234 | 1,242 | 1,002 | 1,027 | 865 | |
| Order Backlog | ||||||||
| Pattern Generators | 1,106 | 635 | 807 | 744 | 759 | 617 | 797 | 1,156 |
| High Flex | 243 | 239 | 216 | 130 | 214 | 150 | 134 | 86 |
| High Volume | 894 | 988 | 885 | 809 | 759 | 758 | 692 | 669 |
| Global Technologies | 298 | 284 | 308 | 291 | 299 | 249 | 82 | 57 |
| 2,542 | 2,146 | 2,217 | 1,975 | 2,030 | 1,774 | 1,706 | 1,969 | |
| Net Sales | ||||||||
| Pattern Generators | 246 | 348 | 320 | 399 | 265 | 389 | 592 | 385 |
| High Flex | 341 | 309 | 288 | 368 | 271 | 262 | 276 | 331 |
| High Volume | 426 | 381 | 365 | 283 | 235 | 315 | 368 | 203 |
| Global Technologies | 218 | 246 | 179 | 252 | 232 | 107 | 66 | 93 |
| Internal net sales between divisions | -17 | -11 | -17 | -7 | -17 | -11 | -10 | -20 |
| 1,214 | 1,273 | 1,135 | 1,295 | 986 | 1,064 | 1,291 | 992 | |
| Gross Profit | ||||||||
| Pattern Generators | 154 | 193 | 188 | 224 | 154 | 252 | 476 | 283 |
| High Flex | 139 | 128 | 113 | 152 | 111 | 97 | 110 | 136 |
| High Volume | 166 | 156 | 131 | 91 | 87 | 166 | 165 | 68 |
| Global Technologies | 85 | 102 | 64 | 86 | 52 | 41 | 21 | 32 |
| 541 | 578 | 496 | 553 | 405 | 555 | 772 | 519 | |
| Gross Margin | ||||||||
| Pattern Generators | 62.5% | 55.4% | 58.8% | 56.0% | 58.0% | 64.6% | 80.4% | 73.6% |
| High Flex | 40.8% | 41.4% | 39.3% | 41.2% | 40.8% | 36.9% | 40.1% | 41.0% |
| High Volume | 38.9% | 40.8% | 35.9% | 32.1% | 37.2% | 52.6% | 44.8% | 33.3% |
| Global Technologies | 38.9% | 41.5% | 35.6% | 34.1% | 22.6% | 37.9% | 32.1% | 34.4% |
| 44.6% | 45.4% | 43.7% | 42.7% | 41.0% | 52.1% | 59.8% | 52.3% | |
| R&D expenses | ||||||||
| Pattern Generators | -49 | -60 | -48 | -52 | -45 | -57 | -47 | -51 |
| High Flex | -42 | -42 | -38 | -37 | -36 | -42 | -36 | -36 |
| High Volume | -40 | -40 | -35 | -26 | -28 | -29 | -29 | -30 |
| Global Technologies | -23 | -22 | -24 | -29 | -26 | -15 | -14 | -15 |
| Total R&D expenses | -154 | -164 | -145 | -143 | -136 | -144 | -126 | -132 |
| Selling expenses | -157 | -155 | -132 | -152 | -120 | -132 | -123 | -76 |
| Administrative expenses | -65 | -64 | -62 | -65 | -66 | -55 | -57 | -66 |
| Other income/expenses | 37 | 28 | 49 | 11 | 23 | 17 | 32 | -31 |
| EBIT | 203 | 224 | 206 | 204 | 106 | 241 | 498 | 214 |
| Of which EBIT Pattern Generators | 76 | 110 | 125 | 146 | 94 | 174 | 419 | 201 |
| Of which EBIT High Flex | 43 | 35 | 19 | 59 | 31 | 11 | 35 | 25 |
| Of which EBIT High Volume | 95 | 65 | 55 | 17 | 30 | 94 | 90 | 30 |
| Of which EBIT Global Technologies | 22 | 43 | 31 | 21 | -16 | 7 | -14 | -8 |
| Of which EBIT Group functions | -34 | -30 | -25 | -40 | -34 | -44 | -30 | -35 |
| EBIT margin | 16.7% | 17.6% | 18.1% | 15.8% | 10.7% | 22.7% | 38.6% | 21.5% |
| Equity per share | 45.40 | 43.16 | 43.29 | 40.94 | 38.10 | 36.96 | 38.43 | 34.58 |
| Earnings per share before/after dilution | 1.56 | 1.79 | 1.69 | 1.82 | 0.82 | 1.84 | 3.99 | 1.80 |
| Closing share price | 135.00 | 143.90 | 176.00 | 211.00 | 218.40 | 258.20 | 205.00 | 245.40 |
Interim Report January–September 2022
MYCRONIC
THIS REPORT IS A TRANSLATION FROM THE SWEDISH ORIGINAL
Review report
Mycronic AB (publ), corporate identity number 556351-2374
Introduction
We have reviewed the condensed interim report for Mycronic AB (publ) as at September 30, 2022 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, date as evidenced by our digital signature
Ernst & Young AB
Erik Sandström
Authorized Public Accountant
Interim Report January–September 2022