Mycronic Posts Interim Report January–June 2023

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Mycronic announces 45 percent order intake in second quarter and 27 percent in January-June of 2023.

Second quarter

• Order intake amounted to SEK 1,748 (1,203) million, an increase of 45 percent
• Net sales decreased 2 percent to SEK 1,245 (1,273) million. Based on constant exchange rates, net sales decreased 7 percent
• EBIT amounted to SEK 170 (224) million and the EBIT margin was 14 (18) percent
• Earnings per share were SEK 1.37 (1.79)

January–June

• Order intake amounted to SEK 3,365 (2,644) million, an increase of 27 percent
• Net sales increased 2 percent to SEK 2,464 (2,408) million. Based on constant exchange rates, net sales decreased 3 percent
• EBIT amounted to SEK 352 (429) million and the EBIT margin was 14 (18) percent
• Earnings per share were SEK 2.90 (3.47)

Outlook 2023

The Board of Directors’ opinion remains that net sales for 2023 will be at a level of SEK 5.5 billion.

CEO Anders Lindqvist, President and CEO, Comments:

Order intake was strong during the second quarter, with an increase of 45 percent, driven by a very good performance in Pattern Generators. EBIT amounted to SEK 170 million, despite around SEK 60 million in costs during the quarter linked to business development projects.

In Pattern Generators, the photomask market for both displays and semiconductors remained positive during the second quarter. Pattern Generators reported a strong order intake and received orders for six systems, distributed as follows: one Prexision 8 Evo, one Prexision Lite 8 Evo and four SLXs.

Demand was strong from end customers in the High Flex segments of aerospace, defense, medical and industrial applications during the second quarter. Despite this, their suppliers - High Flex customers - to some extent remained cautious when placing orders for new production equipment. Geographically Europe and North America performed well, while China was weak.

In High Volume, investments in the second quarter among consumer electronics manufacturers in China remained at the same level as in the first quarter. They have not yet recovered after the end of covid restrictions in China. Investments focused on replacing manual tasks with automation rather than increasing production capacity by investing in new production lines. During the quarter, High Volume was successful in selling to new customers in the electric vehicle industry. This is an attractive segment, even if in terms of size it is a smaller business for the division than the consumer electronics segment.

Demand within Global Technologies for electrical testing of printed circuit boards and substrates recovered during the second quarter in terms of system sales, for which demand was driven by investments in AI and servers. However, weak demand from the consumer electronics industry had a negative impact on the aftermarket business, with lower sales of consumable components and spare parts. In die bonding, demand was strong from aerospace and defense but remained weak from the largest markets data and telecom.

We continue to focus on increasing sustainability awareness throughout the organization. During the quarter, members of executive management have visited subsidiaries to discuss local sustainability initiatives.

Mycronic is in a favorable position, with a record order backlog, a very competitive and well-invested product offering and a strong balance sheet, including a net cash position of SEK 1,395 million. We have a number of exciting development projects ongoing and despite continued global uncertainty, I look forward to the second half of 2023 with confidence.