Year-end Report January-December 2020

Fourth quarter

• Order intake amounted to SEK 865 (1,706) million, a decline of 49 percent
• Net sales decreased 16 percent to SEK 992 (1,181) million and 11 percent based on constant exchange rates
• EBIT rose 5 percent to SEK 214 (204) million and EBIT margin was 22 (17) percent 
• The underlying EBIT increased 3 percent to SEK 220 (214) million. The underlying EBIT margin was 22 (18) percent
• Earnings per share were SEK 1.80 (1.57)

January-December

• Order intake was SEK 3,687 (4,567) million, a decrease of 19 percent
• Net sales decreased 10 percent to SEK 3,882 (4,307) million and 8 percent based on constant exchange rates
• EBIT was SEK 898 (1,124) million, a decline of 20 percent. The EBIT margin was 23 (26) percent
• The underlying EBIT amounted to SEK 975 (1,169) million, a decline of 17 percent. The underlying EBIT margin was 25 (27) percent
• Earnings per share were SEK 7.10 (8.74)
• The Board of Directors has proposed a dividend of SEK 3.00 (2.00) per share to the 2021 Annual General Meeting

“I am very satisfied with the way in which we closed the year and the way we are addressing and managing the uncertainty in our macro-environment as the pandemic continues to impact our everyday lives. We are demonstrating once more that our long-term view and approach, combined with continuously adapting to the prevailing conditions, provide a stable foundation for our operations. I noted a fluctuating trend for our divisions during the quarter, but it is generally unavoidable that our operations will also be affected. Despite this, the Group’s EBIT increased 5 percent during the quarter and the EBIT margin increased to 22 percent, while net sales declined 16 percent, of which currency effects accounted for 5 percentage points,” says Anders Lindqvist, President and CEO.

Outlook 2021
It is the Board of Directors’ opinion that consolidated net sales for 2021 will be at a level of SEK 3.9 billion, based on 2020 closing exchange rates.

   
CEO comments
I am very satisfied with how we closed the year and the way we are addressing and managing the uncertainty in our macro-environment as the pandemic continues to impact our everyday lives. We are demonstrating once more that our long-term view and approach, combined with continuously adapting to the prevailing conditions, provide a stable foundation for our operations. A key part of the long-term approach is our stable financial position and well-filled order book, but what is most important is that we focus on helping our customers through this difficult period every single day.

Our resilience is also based on having a healthy risk spread, with a business that is diversified across segments and geographies. I noted a fluctuating trend for our divisions during the quarter, and it is generally unavoidable that we also are affected by the pandemic. Despite this, the Group’s EBIT increased 5 percent during the quarter and the EBIT margin increased to 22 percent, while net sales declined 16 percent, of which currency effects accounted for 5 percentage points.

The Pattern Generators division had a strong end to the year, with orders for a Prexision Lite 8 Evo and four SLX. This means that we have secured eight SLX orders during the product’s first year on the market, indicating it was the right decision and time to develop and launch a mask writer for the semiconductor industry. In December, the first system was delivered to a customer in Asia.

Activities in the High Flex division increased from low levels during the last quarter of the year, with for example a couple of major orders received in Western Europe and the USA. The uncertainty remains, although there are signs that postponed investments are now beginning to materialize.

The High Volume division also saw an improved investment climate in the fourth quarter, which was also apparent in a couple of significant orders from, for example, South Korea.

The weak trend for camera modules to the automotive industry continues to impact the Global Technologies Division. Also within optoelectronics, which reported a strong performance, somewhat slower demand is visible in the Chinese market, driven by the earlier accumulation of inventory ahead of an anticipated expansion of the trade barriers between China and the USA.

As part of our more customer-focused and decentralized Group structure, we have choosen to also present performance by division as of this quarter. However, for the three former Assembly Solutions divisions, we will retain the aggregate EBIT margin target of at least 10 percent in 2021. We are well on our way at 5 percent for the quarter and I confirm that the annual target for 2021 stands firm.

For 2021, the Board of Directors and I estimate that we will report sales of SEK 3.9 billion. Our conditions for continued growth are favorable and we can confirm our ambition of achieving SEK 5 billion not later than 2023. We have a strong product portfolio with world-leading solutions in all of our divisions. In addition, we have a strong financial position that enables the implementation of acquisitions, alongside a scalable structure for continued growth.

During the year, we continuously adapted our operations to manage the uncertainty and problems arising in the wake of the pandemic and I am impressed by how our employees are handling the situation on a daily basis. Although we will see variations and uncertainty in the market in the short term, I feel confident that we have a strong platform and the prerequisites for a continued journey of growth in the long term.

Anders Lindqvist, President and CEO

 
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 (page 11) on February 10, 2021, at 8:00 a.m.

Financial reports and press releases are published in Swedish and English and are available on www.mycronic.com.

This report was not reviewed by the company’s auditor.

  
For additional information, please contact

Tags: