Interim Report January-March 2020

First quarter

• Order intake increased 99 percent to SEK 1,432 (721) million
• Net sales decreased 33 percent to SEK 736 (1,105) million and 35 percent based on constant exchange rates. As planned, no mask writers were delivered during the period, which in its entirety accounts for the decline in the Group’s net sales
• EBIT was SEK 55 (406) million, a decline of 86 percent. As planned, no mask writers were delivered during the period, which in its entirety accounts for the lower EBIT. The EBIT margin was 8 (37) percent  
• The underlying EBIT was SEK 65 (420) million, a decline of 85 percent. The underlying EBIT margin was 9 (38) percent
• Earnings per share were SEK 0.40 (3.20)

“We delivered a stable first quarter, with strong order intake. In a time marked by uncertainty and turbulence, I feel confident in Mycronic’s solid financial position and healthy liquidity. In recent years, we have strengthened our aftermarket sales, which accounted for 28 percent of the Group’s sales in 2019. Our Pattern Generators business is characterized by long lead times, together with customer relationships that extend over decades. Deliveries of mask writers, from a well-filled order book for the year, are continuing as planned. This feels secure,” says Anders Lindqvist, President and CEO
 
Outlook 2020

CEO comments
In a time marked by uncertainty and turbulence, I feel confident in Mycronic’s strong financial position and healthy liquidity. In recent years, we have strengthened our aftermarket sales, which accounted for 28 percent of the Group sales in 2019. Our Pattern Generator business is characterized by long lead times, together with customer relationships that extend over decades. Deliveries of mask writers, from a well-filled order book for the year, are progressing as planned. This feels secure.

We have changed our way of working. As of the beginning of April, our daily operations comprise four divisions with the Assembly Solutions business area being divided between the three divisions; High Flex, High Volume and Global Technologies, while Pattern Generators forms the fourth division. The work in our divisions is characterized by clear accountability and leadership, with a decentralized mandate and responsibility to ensure that we always support and enhance our customers’ operations in the best possible way. We are continuing to prioritize and invest in innovation, at the same time as there is good potential for the divisions to pursue continuous improvement efforts.

Order intake during the quarter was strong and nearly doubled, from a favourable comparison, to SEK 1,432 million, fueled mainly by the five orders for mask writers secured by Pattern Generators: one Prexision 800 Evo, together with four orders for the recently launched SLX, which produces masks for the semiconductor industry. This is very satisfying and it is confirmation from semiconductor manufacturers that we now offer attractive and effective production solutions also in this segment. Assembly Solutions reported strong performance in the High Volume division driven by strong demand for dispensing equipment in China, which contributed to an order intake of SEK 707 million, corresponding to growth of 25 percent. In total, this yields a robust order book of nearly SEK 2.9 billion, compared with SEK 1.5 billion a year ago.

Assembly Solutions displayed healthy net sales growth of 8 percent during the quarter, generated by strong performance by the High Volume division in the Chinese market. The operations in Pattern Generators are characterized by natural variations between the quarters and, as planned, no system deliveries were made during the period, which in its entirety, accounts for the Group’s year-on-year sales decline of 33 percent.

COVID-19 is spreading throughout the world and is having a major impact on communities and businesses. We are monitoring developments closely and taking a structured approach to reduce the risks for personnel and operations, while we are implementing measures that will also secure scope for manoeuvre in the future. The safety and health of our personnel are our priority, while we are following the official instructions. We are also working to support society wherever we see that we can make a difference. For example, we have put production-ready SMT lines from our demo centers at the disposal of the medical devices industry.

We have a strong financial position combined with the fact that we have delivered a stable first quarter with marginal impact from COVID-19. On this basis, the Board of Directors repeats its outlook issued earlier for net sales at a level of SEK 4.1 billion, while adding that the increased uncertainty in the global economy due to COVID-19 should be noted. Also the long term goal of achieving net sales of SEK 5 billion not later than 2023 remains.

Anders Lindqvist, President and CEO

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 (page 8) on April 23, 2020, at 8:00 a.m.

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