ANALYST PRESENTATION JUNE 14, 2018 - besi.com · 4.0 5.0 6.0 2013 2014 2015 2016 ... • +23.9% vs. 2016 as per latest VLSI estimate ... Key developments in mobile world Smart phone

ANALYST PRESENTATION

JUNE 14, 2018

Safe Harbor Statement

This presentation contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking

statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders,

net sales, product shipments, backlog, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and

capital expenditures. The use of words such as “anticipate”, “estimate”, “expect”, “can”, “intend”, “believes”, “may”, “plan”, “predict”, “project”, “forecast”,

“will”, “would”, and similar expressions are intended to identify forward looking statements, although not all forward looking statements contain these

identifying words. The financial guidance set forth under the heading “Outlook” contains such forward looking statements. While these forward looking

statements represent our judgments and expectations concerning the development of our business, a number of risks, uncertainties and other important

factors could cause actual developments and results to differ materially from those contained in forward looking statements, including any inability to

maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without

charges; the volatility in the demand for semiconductors and our products and services; failure to develop new and enhanced products and introduce

them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including

through consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our

information technology systems; inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our

intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with

substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region; potential

instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled

personnel; those additional risk factors set forth in Besi's annual report for the year ended December 31, 2017; and other key factors that could

adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We

expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.

June 2018 2

Agenda

I. Strategic Overview Richard Blickman

II. Application End Markets & Drivers Ruurd Boomsma

III. Product Development Strategy Ruurd Boomsma

IV. Strategic Revenue Initiatives Richard Blickman

V. Strategic Cost Initiatives Richard Blickman

VI. Capital Allocation & Acquisition Strategy Richard Blickman

VII. Outlook and Summary Richard Blickman

June 2018 3

I. STRATEGIC OVERVIEW

June 2018 4

• Disciplined strategic focus on most rapidly growing areas of advanced packaging space has

created an industry leader

• Assembly market ever more critical step in semi production and value chain, particularly for the

emerging digital society

• Successful Asian production and supply chain expansion has been a game changer

• Technology leadership, scalability and competitive lead times have greatly increased market

presence

• Success breeds success. Customer base has grown and diversified geographically. Increased

market penetration of global supply chains

• Profitability versus market share has been a long term winning bet

• Attractive capital allocation policy rewards shareholders for their investment

• Timely financings have positioned us well to capitalize on opportunities over the next five years

CEO Summary

June 2018 5

Assembly Equipment Market Trends

3.0

3.9

3.23.7

4.6 4.9

-22.0%

27.2%

-16.1%

14.0%

23.9%

7.7%

-30%

-20%

-10%

0%

10%

20%

30%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2013 2014 2015 2016 2017E* 2018E**

US

$ b

illio

ns

Assembly Equipment MarketMarket Size YoY Growth Rate

Source: VLSI June 2018* / April 2018**

• Assembly equipment market reached record $4.6 billion in 2017

• +23.9% vs. 2016 as per latest VLSI estimate

• Growth anticipated to continue in 2018 although at lower rate than 2017

254.9

378.8

349.2 375.4

592.8

110.2

154.9

-6.9%

48.6%

-7.8%7.5%

57.9%

40.5%

-50%

0%

50%

100%

150%

0

200

400

600

2013 2014 2015 2016 2017 Q1-17 Q1-18

eu

ro m

illio

ns

Besi RevenueRevenue YoY Growth Rate

CAGR

13-17

11%

CAGR

13-17

23%

June 2018 6

• Based on higher VLSI 2017 assembly market estimate, the 2018 growth rate forecast is

reduced to 8%

• Anticipates 2019 cyclical downturn followed by renewed upcycle in 2020

• Assembly growth to date in 2018 focused mostly on low-mid range equipment for LED and

memory in still favorable GDP environment

• Q1 slow down in high end smart phones

• Customers digesting significant capacity added in 2017

• 3D imaging roll out not the game changer anticipated. Delayed introduction for some

applications

• Mobile internet slow down affects Besi revenue development in 2018

2018 Market Update

June 2018 7

• Long term favorable secular trends intact: digital society, AI, big data, 5G, expansion of the cloud,

increasing automotive electronics content

• Assembly market ever more critical step in semi production and value chain, particularly for the emerging

digital society. Advanced packaging is only way forward

• Near term Besi revenue drivers:

• Substantial expansion of semiconductor infrastructure as per five year Chinese government plan

• Introduction of complete Besi portfolio for sale in local Chinese market

• Ongoing push for ever greater cloud memory/logic capacity

• Steady growth of automotive business in favorable GDP environment

• Expanding spares/service business related to installed base growth

• Strategic initiatives being implemented to further drive down costs and improve efficiency

Where Do We Go From Here?

8June 2018

II. APPLICATION END MARKETS

AND DRIVERS

June 2018 9

Digital Society

10June 2018

New Era of Chip Growth and Applications

Digital society

Driven by new technologies

- 5G

- AI – big data

- Robotics

- Transportation

- Environment

- Health care

Will need continuous new solutions

- 1zb = 1,000,000,000 tb

- 1zb= 1,000 data centres

- 1zb = 180,000,000 home energy

Source: IMEC ITF 2018

KB – MB – GB – TB – PB – EB – ZB - YB

3 6 9 12 15 18 21 24

June 2018 11

Trend to Smaller and More Efficient Devices to Continue

Source: IMEC ITF 2018

June 2018 12

Will Require Changes in Process and Equipment

New Device Architecture

- Beyond FinFet

- Nanowire FET

- Vertical Fets

- Vertical NAND

Front End Equipment

- EUV (Reduced Mask Set)

- New deposition / etching technologies

New Assembly Structures

- 2D/2.5D/3D Structures

- Die to Die or to Wafer Stacking

- Integrated with Photonics

Back End Equipment

- High Accuracy 200nm and beyond

- Super Clean

- Handling Photonic Elements

- TCB and Direct Bonding

- Substrateless solutions – Fan Out

- Large Panel low cost or specific high end requirements

Sources: IMEC,GF, Chipworks, ASML

13June 2018

Portfolio Positioning by Node Size and Accuracy

15%

40%

20%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Typical Application Besi Equipment

Automotive, SiP

Power

Softsolder, Epoxy, MultiModule

Flip Chip Die Bonders

Packaging

Plating

IOT

General ICs

Softsolder, Epoxy, MultiModule


Packaging

Plating

Computer, PC, Mobile Epoxy, MultiModule Fan Out


Packaging

High Performance Computing

Memory

Epoxy, TCB, D2W, Fan Out


Packaging

Accuracy

Micron

10+

10

7

3

Size

NM

28+

28

17

10

Estimated % of 2017 Revenue

• 75% of Besi equipment revenue advanced packaging as per VLSI definition

• 55% equipment revenue is < 7 micron accuracy & sub 17 nanometer

• Most rapidly growing segment of the market

June 2018 14

Besi Markets

15June 2018

Mobile

Key developments in mobile world

Smart phone market unit growth slowing,

but introduction of advanced features increasing

2nd tier suppliers typically follow 1 to 3 cycles later

Improved face recognition

Improved fingerprint recognition

Dual and triple cameras

Artificial intelligence

Augmented reality

Better display technologies

5G introduction

More and improved sensors

More powerful processors

Besi Revenue Mobile Internet Devices (million euro)

CAGR 2018-2022

Premium Smart Phones +2%

Basic Smart Phones +1%

Gartner April 2018

16June 2018

CAGR 2013-2017: 23.5%

Besi Addressable Market Share of Mobile Increasing

WIDE RANGE OF BESI PLATFORMS USEDSource: Tech Insights

June 2018 17

Computing

Key developments computing

High performance computing

AI/deep learning

Autonomous driving

Big data

Robotics

Strong growth data storage

Faster data communication/photonics

Key area for continuing „Moore“ and advanced packaging

Besi Revenue Computers / PC (million euro)

CAGR 2018-2022

Server +7%

SSD +15%

Tablet -3%

PC -6% +9%

Gartner April 2018

18June 2018

CAGR 2013-2017: 30.5%

Besi Penetration of Computing Market Increasing

19June 2018

Automotive

Key developments automotive

Hybridization/electrification

Increased safety features and sensor content

Ecall

Autonomous driving

Connectivity

Energy efficiency

Entertainment

Car lighting

Increased reliability

Zero defect

CAGR 2018-2022

Automotive +11%

Gartner April 2018

20June 2018

Besi Revenue Automotive (million euro)

CAGR 2013-2017: 23.8%

Besi Penetration of Automotive Market Increasing

21June 2018

Industrial

Key developments industrial

Smarter and energy efficient

Smart industry factory automation

Smart homes and buildings

Surveillance

Lighting

Power control/inverters higher voltages

More efficient appliances

Smarter more efficient machines

Smarter and more efficient power tools

IoT

Besi Revenue Industrial & LED (million euro)

CAGR 2018-2022

Industrial +10%

Gartner April 2018

22June 2018

CAGR 2013-2017: 21.1%

Industrial Growth Opportunities

Industrial Technology Period CAGR %

Full SiC based Pwr Modules 2017-2024 +31%

Air Conditioning systems 2018-2022 +11%

General Purpose Microcontrollers 2017-2020 +7%

Secure Microcontrollers Automotive/IOT/Machine 2017-2020 +7%

Source: ST, Infineon, NXPInfineon Digital Powercontroller

23June 2018

Technical Trends Drive Growth Opportunities: Low and Mid End Devices

LOW END

Leadframes QFN

SOT

TSOP

Waferlevel CSP

Single Chip FOWLP

Transition from mature package formats

to wafer level packaging mems pmics codec,

RF, DC-DC, WiFi

Smaller form factors

Higher speed

MID END

Wire Bond BGA

PoP Fan Out PoP

Flip Chip CSP

Embedded Die Embedded Die Adv FC MCeP

Transition from first generation advanced package

formats to next generation

APU smart phones

Smaller form factors

Higher speed

Source: Yole

24June 2018

HIGH END

Flip Chip BGA

Multi Die FC BGA

Interposer Less Solutions like EMIB

Complex 2.5 D-3D structures

Multi Die Fan Out BGA

Technical Trends Drive Growth Opportunities: High Devices

SENSORS

From high end single die to more integrated

and stacked or horizontally connected dies

Interposer or no interposer

Using fan out technologies

Sensor fusion

Integrating more sensors

Integrating optical elements

Multi Die Interposer Based

Substrate

25June 2018

Typical High End Fan Out Technology Amkor Swift

From Wire Bond on Substrate To Flip Chip on Substrate To Substrateless Solution with Fan Out

June 2018 26

Example: ASE FoCos

ASE FoCoS

- Fan out Chip on Substrate

- 2/2.5 um L/S

- 4 metal layers

- 16 and 28 nm technology dies

- 32 x 26 mm FO

- 67 x 67 mm package

Interposer No Interposer

RDL using Fan Out Technology

27June 2018

Many Formats Advanced Assembly Technology

28June 2018

III. PRODUCT DEVELOPMENT STRATEGY

June 2018 29

Product/Development Strategy Objectives

• Expand presence in advanced packaging for next generation applications

• Customer focused development strategy with largest players

• Refresh existing products every one to two years to stay at leading edge

Focus on fastest growing segments of assembly equipment market

• eWLB –Fan Out , TCB, Direct Bonding and ultra thin die bonding

• Large area, ultra thin, wafer level molding

• New semiconductor requirements in plating

Expand capabilities for:

June 2018 30

Best in Class Product Portfolio

Multi Module Attach• 2200 evo

• 2200 evo plus

• 2200 evo hS New

Die Sorting• WTT

• TTR

New

New

Die Bonding

• 2100 xP plus / hS

• 2100 sD plus / PPP plus

• 2100 sD advanced

Flip Chip• 8800 CHAMEO advanced

• 8800 TCB advanced

• 8800 FC Quantum advanced

• 2100 FC hS

New

New

Plating• Leadframe

• Solar

•Next generation Die Attach

•Next generation Packaging

•Common modules

AMS-W/LM• Substrate

AMS-i• Leadframe

• MEMS

• Sensors

FML• Wafer

• Panel

New FSL• Singulation

• Sorting

FCL• X

• P

• X/PNew

New

• 2009 SSI

• 2100 DS

• 2100 SC

Die Lid Attach• DLA New

• Film & Foil

• Battery

Die Attach

Packaging

Plating In Development

New

New

New

New

June 2018 31

CAMERA

SENSORS

AUTOMOTIE

PHOTONICS

LED

Evo 2200 Series Multi Module Die Attach System

2200 series

Key competitive advantages

High accuracy and speed

Multi die multi wafer

Extreme wide application field

Fast R&D to production

New developments 2018

3 um accuracy / photonics

6 axis bondhead

3D topology measurement

Target markets 2018 - 2020

Mobile advanced SiP

Computing HPC photonics

Mobile and automotive cameras and camera modules incl. 3D

Automotive incl. power and lidar

High end LED

32June 2018

2100 Series i hS and SD Stacked Die Epoxy Die Bonder and HSFC Bonder

2100 series


High accuracy and speed

High system to system repeatability

Very stable in 24/7 production


Dual dispenser

Epoxy auto volume correction

Uplooking camera

Low contrast handling

Auto BLT correction

Industry 4.0


Automotive MEMS and sensors

Mobile and computing memory (NAND)

Mobile, computer, automotive, industrial high end ICs

Mobile FCoL Pwr packages

33June 2018

Fan Out

TCB

High Accuracy Flip

Chip

Panel

8800 Series Quantum & Chameo FC/Fan Out/TCB Die Bonder

8800 series


De facto fan out standard since 2008

Highest accuracy and speed in industry

Includes TCB version


Parallel die handling => speed

Ultra accuracy system 200nm

Large panel system


Computing fan out high end

Computing and mobile FC and TCB

New interposerless technologies

Micro LEDs

June 2018 34

Next Generation Fan Out Systems => High Speed

Fan out strongly growing in many applications

We are developing next gen 8800 fan out system

Parallel die processing

Current gantry technology at speed limit

To further increase speed use parallel die transfer

For accuracy, place every die individually

- Multiple synchronous die ejection

- Parallel transfer of max 4 dies per head

- Upward vision check of 4 dies per head

- Sequential individual bonding of 4 dies per head

Target markets

- Mobile fan out high volume

June 2018 35

Ultra Accuracy Bonding System

European patent

EP 1 802 192 A1

Upcoming technology hybrid bonding

For the most advanced devices

Accuracy need in 200 nm range

Actively developing technology

Based on advanced optical system

Combined with local piezo actuators

Super clean concept

First pre-production shipment this summer

Target market

High end processors and memory

Not to scale

June 2018

TCB BASED HYBRID BONDING

36

Panel Size WLP System

Large panel system

For fan out and micro LED applications

720 x 650 mm working area

Includes new high accurate gantry system

Decoupled metrology

2 um global accuracy

Target markets

High end interposerless substrates

High end micro LEDs

General fan out

37June 2018

High Power

Power ICs

Standard Power

Dense LF

Diffusion Soldering

2009 - 2100 Series Soft Solder Die Bonding Systems

2009 - 2100 SSD series


Best in class soldering systems

Defacto industry standard


High force bond head (diffusion)

Product traceability (automotive)


Automotive

Industrial power

Green energy (IGBT)

38June 2018

Next Generation AMS-W/LM Molding Systems

New in 2017:AMS-LM

• Fine filler compound handling

• Package height measurement

• Increased speed

AMS-W/LM Series


Standard in molding ultra thin dies

Exposed die molding

Superior mold chase design

Strong position in wafer level molding


Double side molding with exposed die in one step

120 ton molding capabilities large strips


Mobile/wearables

Advanced SiP applications

Automotive

39June 2018

Next Generation FML

New in 2017:AMS-LM

• Fine filler compound handling

• Package height measurement

• Increased speed

Molding FML Series


30% cost reduction compared to compression mold

Excellent narrow gap fill 50um

Proven in advanced processor production


Double side molding with exposed die in one step

120 ton molding capabilities large strips


Processors

Package on package

Wafer molding

June 2018 40

Trim & Form

Trim & Form Fico Compact Line (FCL)


Handling complex frames

Low conversion times

Product tracability


Advanced vision system for zero defect output

Laser marking system


Automotive

Industrial

June 2018 41

Next Generation CD-EDF-EPL Plating Systems

Semiconductor Plating Technology


De facto plating standard for leadframes

Very efficient chemical usage

Very precise plating


Continuous Deflash Line CDL 800

Wettable flank plating

Initiated R&D program wafer and panel plating


Automotive

Industrial

June 2018 42

Solar and Battery Plating Systems

Solar and Battery Plating Technology


Best in class cost of ownership

Small ecological footprint


Backside contact cells with etch back

Hit solar cells

Double sided active solar cells


Industrial solar

Industrial battery technology

43June 2018

Technology Summary

• Semiconductor assembly plays an increasingly important role in the development of next generation devices

• Slowing of Moore‘s law requires greater advancements in packaging technology

• Advanced packaging demand continues to expand driven by ever smaller form factors; increased functionality, density,

complexity and lower power consumption

• Next generation systems required with higher levels of accuracy for production volumes of <10 nm devices

• Besi product portfolio and process technology at forefront of advanced packaging trends and leading customer roadmaps.

Substantial progress made in:

• Fan Out WLP and TCB die attach systems

• High speed/high accuracy epoxy die bonding

• Camera and sensor system development

• Exposed die packaging for both substrate and wafer level

• Trim and form systems for auto sector

• Ultra fine leadframe plating

44June 2018

IV. STRATEGIC REVENUE INITIATIVES

June 2018 45

Summary Initiatives

• Besi grew by 23% CAGR in 2013-2017 versus an addressable market growth of 11%

Grow in excess of underlying addressable market rates

• Leverage technology leadership to increase market share to 40-45% in next five years

• Introduce next generation products to win business from competitors

• Increase mainstream penetration of global supply chains with high quality mid-range products

• Expand presence and share of wallet in China via production and sale of full range of Besi die attach, packaging and plating systems

• Expand software and process support in Asia to better serve installed base

Increase market presence and share in addressable markets

June 2018 46

1,200

1,622

1,233

1,453

1,844 1,939

26.4%

30.5%

31.3%29.8%

36.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

-

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017 2018E

Addressable Market Besi % of Addressable Market

Besi Addressable Market Growth

CAGR

2013-2017

11.4%

Source: VLSI June 2018

USD millions

Annual growth 35% -24% 18% 27% 5%

June 2018 47

Besi Has Gained Share In Its Addressable Markets

• Gained significant market share in 2017 based on VLSI estimates

Source: VLSI June 2018 and Besi estimates 2016 2017E

Besi Addressable Market 28.6% 36.0%

Total Die Attach 35.4% 44.2%

Die Bonding 35.3% 48.4%

Flip Chip 33.0% 28.9%Die Sorting 44.6% 39.9%

Total Packaging 14.9% 17.1%

Molding 14.1% 16.0%

Lead Trim & Form 22.9% 30.3%Singulation 10.6% 7.9%

Total Plating 85.6% 78.2%

Total Assembly Equipment 11.3% 14.5%

June 2018 48

• Increase Share of Wallet of existing customers with new product introductions

• Reduce unit cost to expand mainstream system sales and gain share vs. competitors

• Sell next generation equipment to increase SoW in the Memory/Logic space, in particular to:

Potential Customer Market Share Growth Opportunities

June 2018 49

Revenue Initiative: Expand Chinese Market Presence Via Increased Local Production

• Chinese government hopes to quadruple semi production output by 2021

• Produce and sell full range of Besi die attach, packaging and plating systems by 2019

• Objective: 50% consolidated Besi revenue

• Increased service and technical support personnel to match revenue ramp

73.980.2

114.0122.6

0

33

139

289

0

50

100

150

200

250

300

350

0

10

20

30

40

50

60

70

80

90

100

110

120

130

2014 2015 2016 2017 Objective

euro

mill

ions

China Customer Revenue and Units Shipped

Chinese Revenue China Units Shipped

% of revenue 19.5% 23.0% 30.3% 20.7% 50%

June 2018 50

Revenue Initiative: Invest in Chinese Process and Technical Capabilities to Support Future Growth

3940

81

150143

197

0

50

100

150

200

250

2015 2016 2017

Growth of Service and Technical Support Personnel in China

Taiwan Other Asia Singapore Korea China Malaysia

• Service, engineering and technical support personnel in China doubled

since 2015 to better service growing installed base in the region

June 2018 51

V. STRATEGIC COST INITIATIVES

June 2018 52

Summary Initiatives

• Expand production capacity to meet € 800 million run rate

• Further develop European owned Asian suppliers

Achieve a more scalable, flexible and lower cost business model

• Optimize production between MY and CH to reduce cost and better meet local needs

• Gain further supply chain efficiencies

Target 53-57% through cycle gross margin

• Supply chain 40%

• Headcount 35%

• Product Design/Common Platforms 25%

Seek € 15 million cost savings over next five years

June 2018 53

Cost Initiatives

~€ 15 Million Potential Cost Reduction Over Next Five Years

Supply Chain (~40%)

• Increased outsourcing

• Vendor consolidation and volume discounts

• Increased common parts

• Increased Asian sourcing/selected products

Headcount (~35%)

• West – East Transfer

• Certain SG&A and R&D functions

• Further reduction of European personnel

Product Design (~25%)

• With each new product generation:

• Reduce number of platforms

• Increase standardization

54June 2018

Supply Chain Initiatives

• Increased outsourcing

• Vendor consolidation and volume discounts

• Increased common parts

• Increased Asian sourcing/selected products

Supply Chain Actions

• Management reviews progress weekly component by component

Material costs are largest single cost = ~40% of revenue

June 2018 55

Continue West-East Headcount Transfer to Reduce SG&A Costs

1,434 1,489 1,489

1,549 1,724 1,754

56%

60%64%

67%

71% 71%

44%

40%36%

33%

29% 29%

25%

35%

45%

55%

65%

75%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2013 2014 2015 2016 2017 Q1-18

Headcount

Europe/NA Fixed HC Asia Fixed HC Asia % Europe/NA %

Fixed Headcount

• Transfer 130 more positions

from Europe to Asia by 2021

• Target 75% Asian headcount

by 2021

82 91

625 502

68 209

236470

423

4521,434

1,724

0

400

800

1,200

1,600

2,000

2013 2017

Other Europe/NA Singapore China Malaysia

+6.9%

+99.2%

+207%

-19.7%

June 2018 56

Fixed Headcount by Country

5%

17% 18%

50%

95%

83%

82%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 Target

Asian Production Trends

Chinese Shipments Malaysian Shipments

Chinese Production Transfer Offers Cost Reduction Opportunities

Units Shipped

• Shift production from Malaysia to Leshan for

China market specific systems to better balance

production/sales representation

• Significant cost savings available

• Headcount

• Logistics and Supply chain

• Import duties

• Service support

June 2018 57

Common Platform Development Update

• Redesign products for common parts, platforms

• Increase standardization

• Lower unit cost, design and maintenance hours

• Shorten cycle times

Development Actions

June 2018 58

Base Line Operating Expense Trends

93.5 96.7

113.6

19.0 19.6

15.6 112.5 116.3

129.2

0

20

40

60

80

100

120

140

2015 2016 2017

euro

in m

illio

ns

Base Opex Other Operating Expenses

2015 2016 2017

Base line opex increase +7.7% +3.4% +17.5%

Revenue vs. prior year -7.8% +7.5% +57.9%

Base line opex as % of revenue 26.8% 25.8% 19.2%

June 2018 59

• Strategic initiatives have limited

baseline opex growth relative to

revenue development

• Significant operating leverage

in business model

VI. CAPITAL ALLOCATION AND

ACQUISITION STRATEGY

June 2018 60

Besi Has Shared Its Progress with Shareholders

euro millions

11.3 12.4

56.945.4

65.3

174.0

2.7

4.0 22.4

22.8

9.4

14.0 12.4

60.967.8

88.1

183.4

0

20

40

60

80

100

120

140

160

180

200

2013 2014 2015 2016 2017 2018*

Dividends Share Repurchases

Cumulative Distributions: € 457.5 MM Since 2011*

* Dividend and share repurchases through May 31, 2018.

June 2018 61

Highest Dividend Yield vs. Peers

8.1%

2.4%2.2%

1.9%1.6%

1.2%1.0%

0.0% 0.0% 0.0%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

* Source: Morningstar as of June 12, 2018

62June 2018

Div

idend Y

ield

*

Significant Liquidity Available to Fund Growth Opportunities

Cash flow generation has significantly improved

over past five years:

• Total cash reached € 571.0 million in Q1-18

• Net cash grew to € 290.1 million

• Reflects € 243.3 million of dividends and share

repurchases 2013-2017

€ 300 million Convertible Note issuance provides

solid base to fund growth opportunities:

• 1.33% blended coupon

• 6.5 year blended average maturity

• Minimal operating restrictions

89.6

135.3

157.8

304.8

527.8

571.0

71.0

118.0 136.5

168.1

247.6

290.1

0

100

200

300

400

500

600

2013 2014 2015 2016 2017 Q1-18

eu

ro in

mill

ion

s

Cash and Deposits Net Cash

June 2018 63

• Ever more demanding technological capabilities, scale and cycle times driving consolidation

• Increases opportunities for the survivors

Assembly Equipment Market is Consolidating

June 2018 64

44.7%38.6%

55.3% 61.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017

Top 4 Suppliers

(Besi, ASM PT, Disco, K&S)

Other Assembly Suppliers

VII. OUTLOOK AND SUMMARY

June 2018 65

• GDP trends

• Customer road maps and capital spending programs

• Pick the right IDM customers with greatest mind share

• Deliver on technical specs - node size, accuracy, throughput

• Reliable performance in 24/7 production environment

• Competitive cycle times

• Production scalability to meet ever shorter product ramps

What Drives Besi’s Business?

June 2018 66

Q2-18 and H1-18 Guidance

HY1-17 HY1-18

Gross Margin

56.7%

56%

-

57%

Q1-18 Q2-18

Gross Margin

56.5%55%

-

57%

Revenue

Q1-18 Q2-18

€ 154.9+10%

-

+15%

Operating Expenses

€ 39.15%

-

10%

Q1-18 Q2-18

Revenue

HY1-17 HY1-18

€ 280.2+16%

-

+19%

Operating Expenses

€ 64.7+15%

-

+18%

HY1-17 HY1-18

Q2-18/Q1-18 HY1-18/HY1-17

June 2018 67

Summary

Leading assembly equipment supplier

with #1 or #2 positions in fastest growing segments

Best in class advanced packaging

portfolio

Gaining market share

Scalability and profitability greatly

enhanced in cyclical industry

Upside potential from next generation

and <20 nano applications and

strategic initiatives

Attractive capital allocation program

June 2018 68

Documents

ANALYST PRESENTATION JUNE 14, 2018 - besi.com · 4.0 5.0 6.0 2013 2014 2015 2016 ... • +23.9% vs. 2016 as per latest VLSI estimate ... Key developments in mobile world Smart phone