Financial expense, net, decreased by € 1.9 million versus Q3-22 primarily as a result of increased interest income earned on cash balances outstanding.

€ millions	Q4-2022		Q3-2022		Δ		Q4-2021		Δ
Net Income	40.2		57.3		-29.8	%	67.1		-40.1	%
Net Margin	29.2	%	34.0	%	-4.8		39.1	%	-9.9
Tax Rate	10.9	%	12.8	%	-1.9		-4.6	%	+15.5	%

Besi’s Q4-22 net income of € 40.2 million decreased € 17.1 million, or 29.8%, versus Q3-22. The profit reduction was primarily due to an 18.4% sequential revenue decrease and a 9.1% increase in operating expenses associated primarily with higher R&D spending levels partially offset by higher interest income earned and a lower effective tax rate. Versus Q4-21, net income decreased by € 26.9 million, or 40.1%, principally as a result of (i) a 19.8% revenue decrease, (ii) increased R&D spending and (iii) a higher effective tax due to the absence of € 8.9 million in tax benefits recognized in the prior year period partially offset by a 5.6 point gross margin increase. As a result, Besi’s net margin decreased to 29.2% in Q4-22 versus 34.0% in Q3-22 and 39.1% in Q4-21.

Full Year Results of Operations

€ millions	FY 2022		FY 2021*		Δ
Revenue	722.9		749.3		-3.5	%
Orders	663.7		939.1		-29.3	%
Gross Margin	61.3	%	59.6	%	+1.7
Operating Income	294.1		317.6		-7.4	%
Net Income*	240.6		282.4		-14.8	%
Net Margin*	33.3	%	37.7	%	-4.4
Tax Rate *	12.6		7.1	%	+5.5

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