Mycronic Releases Interim Report January-September 2023

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Mycronic announces its interim report for January to September 2023.

Third Quarter

• Order intake was SEK 1,467 (1,609) million, a decrease of 9 percent
• Net sales increased 5 percent to SEK 1,274 (1,214) million. Based on constant exchange rates, net sales increased 2 percent
• EBIT amounted to SEK 263 (203) million and the EBIT margin was 21 (17) percent
• Earnings per share were SEK 2.10 (1.56)

January-September

• Order intake amounted to SEK 4,832 (4,253) million, an increase of 14 percent
• Net sales increased 3 percent to SEK 3,738 (3,622) million. Based on constant exchange rates, net sales decreased 1 percent
• EBIT amounted to SEK 615 (632) million and the EBIT margin was 16 (17) percent
• Earnings per share were SEK 5.00 (5.03)

Outlook 2023

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

Anders Lindqvist, President and CEO, comments:

Order intake was good in the third quarter and on an annualized basis above our net sales target for 2023 of SEK 5.5 billion. Due to Pattern Generators having a really strong order intake in the corresponding period the previous year, order intake nevertheless declined 9 percent in the third quarter. Meanwhile, net sales increased and EBIT grew to SEK 263 million, also driven by Pattern Generators. Acquisitions play a key role in Mycronic's profitable growth journey towards net sales of SEK 10 billion, and we constantly assess various potential acquisition candidates within the scope of our business development efforts. One significant project of this nature was terminated in the third quarter without resulting in a transaction. The project was the main reason behind the high business development costs during the first six months.

In Pattern Generators, the photomask market for displays held steady at a high level in the third quarter, while the photomask market for semiconductors remained robust. September saw the delivery of the first Prexision system equipped with a solid state laser, which reduces laser energy consumption by up to 99 percent compared with a gas laser. The laser accounts for a majority of the energy consumed by a mask writer equipped with gas laser. In addition, an order was received after the end of the quarter to upgrade from gas lasers to solid state lasers in previously installed mask writers for displays. While these upgrades will not significantly impact Mycronic's net sales moving forward, they represent - along with the solid state lasers in new mask writers - milestones in our contribution to the development of sustainable electronics production.

For High Flex, the market in both Europe and North America remained robust in the third quarter, while demand in China and the rest of Asia was weak. Demand for pick and place systems remained stable at a good level, while demand for inspection systems kept improving following product enhancements. During the quarter, High Flex took over global responsibility for China-based HC Xin from High Volume. HC Xin provides stencil printers for application of solder paste and shares a common customer base with High Flex. By leveraging the Mycronic brand and the global presence of High Flex, HC Xin will be able to achieve global growth. With a product portfolio that includes both jet printing and stencil printers, the High Flex division can now offer solutions that meet all customer demands related to solder paste dispensing.

The third quarter saw a slight recovery in investments among Chinese mobile phone manufacturers, with a key focus on automating processes to reduce manual labor. The electric vehicle industry remained steady, with High Volume continuing to grow its customer base in this market segment. During the quarter, High Volume took over global responsibility for both the MYSmart dispensing products and the Mexico office from High Flex. This change will enable High Volume to consolidate its position on an international scale.

Global Technologies saw sluggish market demand in the third quarter, especially from China, with the exception of AI-related demand. Regarding this division, I am delighted to announce that Magnus Marthinsson, who has been serving as the acting Sr VP of Global Technologies, has been offered and has accepted the permanent position. Magnus will be based in Boston, where he will dedicate his efforts to bolstering the division's profitability and driving growth, through both organic expansion and acquisitions.