Post on 23-Sep-2020
INVESTOR PRESENTATION
August 2016
August 2016
Safe Harbor Statement
2
This presentation contains statements about management's future expectations, plans and prospects of ourbusiness that constitute forward-looking statements, which are found in various places throughout the pressrelease, 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 resultsand 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 identifyforward looking statements, although not all forward looking statements contain these identifying words. Thefinancial guidance set forth under the heading “Outlook” contains such forward looking statements. While theseforward looking statements represent our judgments and expectations concerning the development of ourbusiness, a number of risks, uncertainties and other important factors could cause actual developments andresults to differ materially from those contained in forward looking statements, including any inability to maintaincontinued demand for our products; failure of anticipated orders to materialize or postponement or cancellation oforders, generally without charges; the volatility in the demand for semiconductors and our products and services;failure to adequately decrease costs and expenses as revenues decline; loss of significantcustomers; lengthening of the sales cycle; acts of terrorism and violence; inability to forecast demand andinventory levels for our products; the integrity of product pricing and protection of our intellectual property inforeign jurisdictions; risks, such as changes in trade regulations, currency fluctuations, political instability and war,associated with substantial foreign customers, suppliers and foreign manufacturing operations; potential instabilityin foreign capital markets; the risk of failure to successfully manage our diverse operations; those additional riskfactors set forth in Besi's annual report for the year ended December 31, 2015; any inability to attract and retainskilled personnel; and other key factors that could adversely affect our businesses and financial performancecontained in our filings and reports, including our statutory consolidated statements. We expressly disclaimany obligation to update or alter our forward-looking statements whether as a result of new information, futureevents or otherwise.
August 2016
Agenda
I. Company Overview
II. Market
III. Strategy
IV. Financial Review
V. Outlook & Summary
3
August 2016
I. COMPANY OVERVIEW
4
August 2016
Besi Overview
• Leading assembly equipment supplier with #1 and #2 positions in key products. 30% addressable market share
• Broad portfolio: die attach, packaging and plating• Strategic positioning in substrate and wafer level packaging • Global mfg. operations in 6 countries; 1,638 employees
worldwide. HQ in Duiven, the Netherlands
Corporate Profile
• LTM revenue and net income of € 337.9 and € 48.0 million• Cash at 6/30/16: € 132.1 million• Total debt at 6/30/16: € 21.4 million• € 176 million of dividends and share repurchases since 2011
Financial Highlights
• Growth of <20 nano advanced packaging, smart phone features, wearables, auto electronics, IoT, solar plating and market share gains offer revenue upside
• Significant unrealized earnings potential from optimization of Asian production, supply chain efficiencies and development of common parts/platforms
Investment Considerations
5
August 2016
Company History
6
€ 85.5
€ 337.9
25.9%
49.8%
20%
25%
30%
35%
40%
45%
50%
55%
60%
0
100
200
300
400
2003 LTM
Gro
ss M
argi
n (%
)
Rev
enue
(€
mill
ions
)
Revenue Gross Margin
•2000 2002 2005 2009
Die Attach Acquisitions
• European production transferred to Asia• Intellectual property remains in Europe• European headcount and facilities reduced• Break even revenue levels decreased
Restructuring
• Die attach, packaging and plating production transferred to Malaysia
• Chinese facility produces die attach systems for local market as well as Besi tooling and molds
• Singapore die attach engineering expanded • 75% of supply chain moved to Asian vendors
Asian Production Transfer
August 2016
Best in Class Product Portfolio
7
Multi Module Attach• 2200 evo• 2200 evo plus
• 2200 evo hS New
Die Sorting• DS9000e• WTT• TTR• DLA
New
NewNew
Die Bonding
• 2100 xP plus / hS• 2100 sD plus / PPP plus
• 2009 SSI
New
Flip Chip• 8800 CHAMEO fan-out• 8800 TCB• 8800 FCQ sigma
• 2100 FCNew
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• Sorting
FCL• X• P• P/X
NewNew
New
• 2100 DS• 2100 SC
Die Lid Attach• DLA New
• Film & Foil• Battery
Die Attach
Packaging
Plating In Development
New
New
August 2016
Dicing
Semiconductor Assembly Process
Die Attach Wire Bond Packaging Plating
Leadframe Assembly
SubstrateWire Bond Assembly
SubstrateFlip Chip Assembly
Wafer Level PackagingFlip Chip Assembly
Wire BondDie Bond
Die Bond
FC Die Bond
Molding
Molding
Molding
Trim & Form
Singulation
Singulation
Plating
Ball Grid Array
Ball Grid Array
Die Sort
Die Sort
Die Sort
Die Attach Packaging Ball Attach
Product Positioning
8
Semiconductor Manufacturing Equipment (2015: $38.8B)
Front end: $32.1B (82%) Assembly: $3.3B (9%) Test: $3.5B (9%)
August 2016
Customers OEMs End Products
Customer Ecosystem
• Blue chip customer base, top 10 = 49% of 2015 revenue • Leading IDMs and subcontractors. 60/40% split in 2015• Assemble chips for leading fabless companies: Qualcomm, Broadcom, MediaTek• Long term relationships, some exceeding 45 years
IDMs
Subcontractors
9
August 2016
Current Operational Profile
10
as of June 30, 2016
Europe/NA Asia
Revenue (MMs) € 39.7 21.1% € 148.3 78.9%
Headcount 572 34.9% 1,066 65.1%
• Development activities in Europe • Production in Asia• Sales/service activities in Asia, US and
Europe
Sales Office
Production Site
Sales & Production Site
* R&D Site
Leshan
ChengduShanghai
Korea
Taiwan
PhilippinesMalaysia
Singapore *
Suzhou
Radfeld, (Austria)*Cham,(Switzerland)*
Duiven & Drunen,(The Netherlands)*
Chandler
Shenzhen
August 2016
Year Ended December 31, (€ millions, except share data) 2013 2014 2015
H1 2015
H1 2016
Revenue 254.9 378.8 349.2 199.2 188.0
Orders 251.9 407.6 348.3 196.1 204.4
Gross margin 40% 44% 49% 48% 50%
EBITDA 27.9 82.1 73.0 46.0 43.4
Pretax income 19.2 71.3 57.1 37.7 35.2
Net income 16.1 71.1 49.0 33.0 32.0
EPS (diluted) 0.43 1.87 1.27 0.86 0.84
Net margin 6% 19% 14% 17% 17%
Net cash 71.0 118.0 136.5 91.4 110.7
Summary Historical Financials
• 2015 Results:• Solid profit and margins maintained
despite H2 market downturn• Industry leading gross and net margins• Net cash position continues to build
• H1-2016 Results:• Renewed order growth due to new tech
cycle and Asian capacity build• Both high end and mainstream market
penetration. Strength in fan out WLP• Solid profit and cash generation
• Market position and operating initiatives have supported favorable gross and net margin development
• Strong cash flow generation:• Solid liquidity base to finance growth • Supports shareholder friendly capital
allocation policy
11
August 2016
Besi Market Information
12
Market Profile
Share Ownership
0
100
200
300
400
2013 2014 2015 2016
Average Daily Volume(Shares 000s)
60%
46%
0%
20%
40%
60%
80%
2011 2016
Top 10 Shareholders(% of shares outstanding)
• BESI• Euronext Midcap AMX
Symbol/ Index
• € 1,073 MM ($1,198 MM)
Market Cap*
• Pay out 40-80% of net income per annum
Dividend Policy
• As of 7/28/16• Source: Besi estimates
NL46%
US & UK27%
Europe ex. NL
14%
Other13%
By Geography
August 2016
Dividend Trends
13
0.22 0.30 0.33
1.50
1.00 0.73
0.42 0.43
1.87
1.27
4.3%
5.2%
4.0%
8.1%
6.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2011 2012 (b) 2013 2014 2015 (c)
Div
iden
d yi
eld
Div
iden
d (€
)
Dividend EPS (diluted) Total Dividend Yield (a)
1.20
a) Based on year end stock priceb) Includes special dividend of € 0.08 c) Includes special dividend of € 0.20. Payout ratio for base dividend is approximately 80%d) ASM International NV ADR, ASM Pacific Technology, Axcelis Technologies, Brooks Automation, Cohu, Disco Corporation, Kulicke & Soffa Industries,
Mattson Technology, Shinkawa, Suss Microtec, Tokyo Seimitsu, Ultratech, Veeco Instruments
30% 71% 77% 80%Payout Ratio: 94%
• Highest dividend yield vs. peers (d)
August 2016
II. MARKET
14
August 2016
Assembly Equipment Market Trends
• VLSI has upwardly adjusted market trajectory in 2016• Besi revenue growth rates exceeding assembly market over past three years
3.14.0
3.3 3.43.8 4.1
-22.3%
29.7%
-17.1%
4.1%10.9% 8.3%
-30%
-20%
-10%
0%
10%
20%
30%
40%
0.0
1.0
2.0
3.0
4.0
5.0
2013 2014 2015E 2016E 2017E 2018E
(US
$ bi
llion
s)
Assembly Equipment MarketMarket Size YoY Growth Rate
254.9
378.8 349.2
199.2 188.0-6.9%
48.6%
-7.8% -5.6%
-50%
0%
50%
100%
150%
0
100
200
300
400
2013 2014 2015 YTD 2015 YTD 2016
(€m
illio
ns)
Besi RevenueRevenue YoY Growth Rate
Source: VLSI July 2016
15
August 2016
Die Attach[VALUE]
Flip Chip15.4%
Die Sorting5.3%
Singulation8.1%
Presses14.5%
Molds8.9%
Lead Trim & Form6.6%
Plating2.3%
Assembly Equipment Market Composition
• Roughly half of assembly market represented by die attach and packaging equipment
• Die attach represents Besi’s largest addressable market
Die Attach 60%
Packaging 38%
Plating2%
Assembly Equipment Market * (2015: $3.3 billion)
Besi Addressable Market *(2015: $1.3 billion)
* Source: VLSI June 2016
Wire Bonding21.5%
Die Attach26.7%
Packaging19.6%
Plating0.9%
Other Assembly
(Inspection, Dicing)31.3%
16
August 2016
Advanced Packaging Is the Future
• High growth applications require ever smaller, denser and more complex chips with increased performance, all at lower power usage
• <20 nanometer geometry will be the standard chip design over the next 3-5 years
• System on Chip or System in Package via substrate and wafer level packaging process is the only answer
• Besi has full range of AP systems. 2015 revenue: 70% substrate/wafer level vs. 30% leadframe
High Growth EndUser Areas:
Mobile internet, Autos, MEMS, Data Mining,
Cloud Servers, IoT, Wearable
devices
17
Increased Density
Greater Complexity
Greater Miniaturization
Higher Performance
Lower Power Consumption
Higher Accuracy
Esec DB2009
Esec DB2100
Datacon 8800 CHAMEO fan-out
Fico ASM-LM
Fico Sawing Line
Datacon 8800 TC
Fico Compact Line - X
FML wafer molding
August 2016
Advanced Packaging Unit Volume and MarketShare Are Increasing
• 32% of wafers use advanced packaging interconnects currently• Rapid expansion in mobile demand• All future personal devices will use
advanced packaging
• Advanced packaging production wafers 9.5% CAGR vs. 5.6% CAGR overall
• Flip chip and WLP are leading AP assembly processes next 5 years:• Flip Chip 5.0%, WLP 7.5% CAGR • Fan out WLP and TSV/TCB are
emerging • OSATs have significant investment
18
9.3%11.7%
18.0%
25.3%
29.5%31.1%
32.7%34.2% 35.2% 36.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
-
5
10
15
20
25
30
35
40
45
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
AP
Mar
ket S
hare
%
M w
afer
s, 3
00M
M E
q.
Advanced Packaging Silicon Demand Growth & Market S hareAdvanced Packaging Wafers
Advanced Packaging Unit MarketShare (%) CAGR 2010-2019: 21.8%
0
5
10
15
20
25
30
35
40
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
M w
afer
s, 3
00m
m E
q.
Substrate Demand for Advanced PackagingFlip Chip Wafer Level Packaging TSV (3D & 2.5D)
Source: VLSI Feb 2016
August 2016
Internet of Tomorrow Drives New Innovation Cycle
19
Internet of Tomorrow
Will Drive Innovation in Many End User
Applications
And Lead to Increased Data Traffic
Which Will Require A New Standard Protocol
Driving Improvement in Mobile Technology/New
Advanced Packaging Solutions
0
50
100
150
200
250
2015 2016 2017 2018 2019 2020
IP TRAFFIC EB/MONTH
August 2016
Generating Strong Forecasted Growth in Internet Connected Devices
• 35% CAGR device growth forecast over next 5 years
• Powered primarily by devices used for IoT, Data mining and Cloud applications
• Positive trajectory for smart phones, wearables and automotive
20
August 2016
Requiring Changes in Process/Equipment Development
21
Today => TomorrowFront End
Transistor scaling
Lithography
New structures 3D
Back End Assembly
More contacts
Smaller pitches
Thinner/densermore complex packages
Stacked structures 3D
WLP/FOWLP packages
From simple Wire Bond to BGA/Flip Chip to complex 3D structures with TSVs,microbumps and thin dies
to WLP/FOWLP packageswithout substrate interposer
August 2016
And Is Reflected in Besi End User Application Trends
Source: Company Estimates
22
• Better balance in end user applications
• Mobile internet devices are 32% of revenue
• Automotive has grown to 18%
• Computer/PCs holding up due to high end server market
• Service/spare parts has increased to 15%
32%
22%
18%
10%
3%
15%
0%
5%
10%
15%
20%
25%
30%
35%
2015
August 2016
New Smart Phone Designs Increase Besi’s Addressable Market Potential
• Besi systems can assemble 50% of 2012 generation components and 70% of 2014 generation components
- NewMain Components
Generation
2012
Generation
2014Manufacturer IDM/OSAT Besi system Utilized
Processor X X Apple TSMC ->Amkor/Stats/ASE 8800FCQ, AMS-W/LM
DRAM Memory X X Hynix/Micron Hynix/Micron 2100sD, FSL
NAND Flash X X Hynix/Toshiba Hynix/Amkor/Toshiba 8800FCQ, AMS-W/LM
Power Management
Apple PM IC X Dialog Dialog 2100sD
PMIC X X Qualcomm N/A
M3 Microcontroller X NXP Amkor/NXP 8800FCQ, AMS-W/LM
Accelerometer/Gyroscope/Barometric
Gyroscope X X Invensense Amkor/ASE/STM 2100xP, 2100sD, AMS-W/LM, FCL
3-ax accelerometer X Bosch Bosch evo
barometric sensor X Bosch Bosch evo
CommunicationsGeneration
2012
Generation
2014Manufacturer IDM/OSAT Besi system Utilized
Wifi/NFC
Wifi module X X Murata Murata Murata's equipment
NFC X NXP Amkor 8800FCQ, AMS-W/LM
NFC Booster IC X AMS Daca N/A
LTE
LTE Modem X Qualcomm Amkor/Stats/Spil/ASE 8800FCQ, AMS-W/LM
Low Band LTE PAD X Skyworks Skyworks 2200evo, FSL
Mid Band PAD X Skyworks Skyworks 2200evo, FSL
High Band PAD X Avago ASE/Amkor 2100xP, 2100sD, AMS-W/LM
Receiver/TransceiverRF Transceiver X X Qualcomm Amkor 2100xP, 2100sD, AMS-W/LM
RF Receiver X X Qualcomm N/A
Envelop Tracking IC X Qualcomm TSMC ->Amkor/Stats/ASE 8800FCQ, AMS-W/LM
Antenna Switch X X RFMD Amkor/ASE,/RFMD 2100xP, 2100sD
PA
PA X X Avago ASE/Amkor 2100xP, 2100sD, AMS-W/LM
PA Module X Triquint ASE 2200evo, 2100sD
Video/AudioGeneration
2012
Generation
2014Manufacturer IDM/OSAT Besi system Utilized
Camera
Back side 8M (OSI) X X Apple LG, Sharp, Mitsumi 2200evo
Front 1.2M X X Apple Cowell, Sony 2200evo
Finger print sensor X Apple ASE 2200evo
Audio
2+4 microphones X ST ST 2100 xp
Audio Codec X X Cirrus Logic Amkor 2100xP, 2100sD, AMS-W/LM
Touch screen control
Touch screen control X X Broadcom Signetics 2100sD
Touch Transmitter X TI TI FCL
23
August 2016
Flip Chip/Wire Bond Process Shift Is Another Revenue Opportunity
Wire Bonding Flip Chip Bonding
Reduces board area by up to 95%.
Requires far less height
Offers higher speed electrical
performance
Greater I/O connection flexibility
More durable interconnection
method
Lower cost for high volume production,
with costs below $0.01 per connection
Flip Chip Advantages
* Source: VLSI July 2016
24
• Move to <20 nanometer can only be accomplished by use of flip chip die bonding vs. wire bonding process
• Flip chip revenue represents only 29% currently of total potential market of $1.2 billion
• Flip chip expected to gain share over next 5 years
• Growth could accelerate depending on adoption rates by key IDMs/subcons
CAGR 2015 - 2021Flip Chip 8.8%Wire Bond 4.6%
Flip Chip$438 32%
Wire Bonding
$935 68%
2021
Flip Chip$265 27%
Wire Bonding
$712 73%
2015
TCB/TSV and Fan Out WLP Are Emerging Process Technologies
August 2016 25
Enabling technology for high end memory and optical applications
Next step beyond Flip Chip
TCB/TSV (Substrate Based) Fan Out WLP (Wafer Level)
Fan Out Advantages :• Wafer scale. Eliminates expensive substrate• No wire bonding • More cost effective than TSV in many applications by
factor of 2x
Leading market position :• Installed base of 60 systems in production• Estimated 75% market share• Principal Competition: Shibaura and Shinkawa
32 Stacked Die Capability
Besi TCB Advantage• 32 die stack at <5 micron accuracy (current market: 4-
8 die stack)• High accuracy over large area placement• Highly stable• Industry leading throughput• Compact form factor
Leading market position• Installed base of 40 systems in production• Estimated 50% market share of active systems • Highest penetration of memory and GPU markets• Principal competition: Toray, ASM PT, Shinkawa
Preferred process for high data transfer and optical devices in IoT, mobile and power
August 2016
Besi Has Gained Share In Its Addressable Markets
• Gaining share in fastest growing segments of the assembly equipment market
Besi Market Share
Source: VLSI, May 2016 and Besi estimates 2012 2013 2014 2015
Total Assembly Equipment Sales 8.5% 10.5% 12.7% 11.7%
Besi Addressable Market 21.4% 25.9% 29.3% 29.6%
Total Die Attach Equipment 26.8% 31.0% 36.1% 36.1%
Die Bonding 29.7% 39.1% 40.3% 38.5%
Flip Chip 22.2% 24.1% 33.2% 31.4%
Other* 17.1% 4.8% 9.5% 33.0%
Total Packaging Equipment 11.1% 15.9% 16.8% 16.6%
Molding 12.0% 19.1% 19.9% 15.6%
Lead Trim & Form 15.0% 17.6% 19.7% 27.8%
Singulation 5.3% 5.1% 7.0% 10.4%
Total Plating 75.8% 82.3% 75.4% 78.5%
26
* Includes die sorting, die lid attach and other equipment
August 2016
• Customers are largest semi mfrs. • Most advanced packaging applications
• Strong customer market shares:• ≈ 30-100% of die attach requirements
• ≈ 25-100% of packaging requirements
• Customer market shares p.a. vary based on capacity needs and development cycles
• Primary competition:• Die Attach: ASM-PT, Hitachi,
Shinkawa, Toray• Packaging: Towa, Hanmi,
ASM-PT
Besi Share of Wallet Increasing
N/B No reported bookings for Besi nor its competitors
a) Merger completed August 2015b) Fabless semiconductor companies such as Qualcomm, Broadcom and Mediatek have assembly production done by subcontractorsc) Samsung satisfies most of its equipment needs internally, particularly for leading edge applications
In USD 2012 2013 2014 2015 2012 2013 2014 2015
Subcontractors
ASE 65% 60% 70% 80% 35% 65% 35% 25%Amkor 75% 85% 90% 95% 45% 10% 20% 25%JCET (a) 75% 50% 70% 30% 0% 10% 0% 5%STATSChippac (a) 95% 100% 85% N/B 30% 100% 100% N/BSPIL 50% 95% 90% 100% 35% 75% 20% 25%Nantong Fujitsu N/B 70% 100% 100% N/B 15% 0% 35%UTAC N/B N/B 100% 100% N/B 100% N/B 100%Unisem 90% 85% 100% 100% N/B N/B N/B 100%
Cowell/Foxconn
(Camera Modules)
IDMs (b)
Skyworks 100% 95% 100% 100% 15% 25% 40% 90%ST Micro 90% 70% 80% 95% 45% 75% 40% 45%Infineon 80% 100% 100% 90% 0% 25% 90% 95%Micron 85% 100% 45% 80% 50% N/B 100% 100%NXP N/B 100% 100% 100% N/B 5% 100% 55%Bosch Europe 100% 100% 100% 95% 100% 0% 100% 100%Samsung (c) 5% 0% N/B N/B 0% 100% N/B N/B
% of product revenue 49% 52% 64% 41% 54% 70% 65% 70%
Die Attach Packaging
100% N/B 100% 65% N/B N/B N/B N/B
27
August 2016
III. STRATEGY
28
August 2016
Summary Strategy
Maintain best in class tech leadership and market position
• TCB, thin die, eWLB die bonding • Large area, ultra thin, wafer level molding• Solar and battery plating
Expand technology capabilities for:
Increase market share in addressable markets
• Expand Malaysian, Singapore and Chinese operations. Target more local production. Shorter cycle times
• Develop common platforms, common modules and common parts • Continue to reduce euro based costs
Achieve a more scalable, flexible and lower cost manufacturing model
Acquire companies with complementary technologies and products
29
August 2016
Besi Revenue Growth Drivers
Revenue Growth Drivers
World tooling up for new
tech cycle <20 nano
Increased smart phone functionality
New device introductions: IoT, wearables
Wire bond/flip chip
conversion
Solar cell plating
transition from silver to copper
Increased share of
Japanese supply chain and China handsets
Emerging process
deployment: TCB and WLP
30
August 2016
Key Operational Initiatives
Operational Initiatives
Transfer certain Die Attach functions to Singapore
Transfer die bonding production for local market from Malaysia to China
Transfer Plating Production from NL to Malaysia
10% fixed & temporary headcount reduction
Transfer die sorting from Austria to Malaysia
Expand Asian supply chain. System module outsourcing
2015 2016
31
August 2016
Asian Production Transfer Has Helped Reduce Break Even Revenue Levels
Asian Production Has Significantly Expanded
Leading to Lower European Headcount
And Reduced Break Even Revenue Levels
396 487
658 673
963
709
170
331
553 579
927
666 43%
68%
84% 86%
96%94%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
200
400
600
800
1,000
1,200
2010
2011
2012
2013
2014
2015
% D
irect
Shi
pmen
ts
Shi
pmen
ts
Total Asian ShipmentsDirect Asian Shipments% Direct
741 680 624 602 549
802 799 810 908 950
1,543 1,479 1,434
1,510 1,499
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2011
2012
2013
2014
2015
Hea
dcou
nt
Europe/NA Fixed HC Asia Fixed HC
270
235 212 207 201
-
50
100
150
200
250
300
2011
2012
2013
2014
2015
(€m
illio
ns)
32
August 2016
Workforce Has Become More Asia Centric, Scalable and Flexible
741 680 624 602 549 533 519
802 799 810 908 950 951 1,007
64 60
24 122 40 106 112
1,607 1,5391,458
1,6321,539 1,590 1,638
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2011 2012 2013 2014 2015 Q1 2016 Q2 2016
Tem
p %
of T
otal
Hea
dcou
nt
Europe/NA Fixed HC Asia Fixed HC Temporary HC Temp % of Total
1,543 1,479 1,434
1,510 1,499 1,484 1,526
52%54%
56%
60%63% 64%
66%
48%46%
44%
40%37% 36%
34%
30%
40%
50%
60%
70%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2011 2012 2013 2014 2015 Q1 2016 Q2 2016
Hea
dcou
nt
Europe/NA Fixed HC Asia Fixed HC Asia % Europe/NA %
Fixed Headcount
Total Headcount
33
• Asia now represents 66% of total fixed headcount• Up from 52% 5 years ago
• Significant upward/downward revenue ramps handled primarily by Asian temp workers
• European and NA fixed headcount continues to decline:• -30.0% since 2011• -13.8% vs. 2014
August 2016
Materials Cost Reduction Is Also a Key Priority
• Asian supply chain transfer in recent years• 75% of material now purchased in Asia• Reduces personnel, transport, logistics and
inventory• Enhances cycle time/revenue ramping capability• € 2.5 MM estimated savings in 2016/17
Supply Chain Actions
• Redesign products: common parts, platforms• Increase standardization • Lower unit cost, design and maintenance hours• Shorten cycle times. Increase inventory turns• Average 9% unit cost savings realized through
common parts efforts
Development Actions
45-50% thru cycle Gross
Margin
• Management reviews progress weekly component by component
34
Material costs = 45% of revenue. Largest single cost
August 2016
IV. FINANCIAL REVIEW
35
August 2016
€ 79.0
€ 109.0
10.1%
22.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
€ 0
€ 20
€ 40
€ 60
€ 80
€ 100
€ 120
€ 140
Q1 2016 Q2 2016
Net
mar
gin
%
€m
illio
ns
Revenue Net Income
Gross Margin
OPEX
Headcount
Effective Tax Rate
15.2% 6.9%
1,590 1,638
€ 29.2 MM
€ 29.1 MM
+48
-8.3%
-0.3%
49.2% 50.9%
+38.0%
+11.9 points
Q2-16/Q1-16 H1-16/H1-15*
+1.7 points
€ 24.0
€ 199.2 € 188.0
14.8%16.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0 €
50 €
100 €
150 €
200 €
250 €
2015 2016
Net
mar
gin
%
€m
illio
ns
Revenue Net Income
Gross Margin
OPEX
Headcount
Effective Tax Rate
13.6% 11.9%
1,684 1,638
€ 60.1 MM
€ 57.9 MM
48.1% 50.2%
-46
-1.7 points
-3.8%
+2.1 points
-5.6%
+2.1 points
€ 31.8€ 29.5
Strong Q2-16 Revenue Growth and Peer LeadingMargins
€ 8.0
* Excluding restructuring charges/benefit and tax adjustment
36
August 2016
Quarterly Book to Bill Ratio
Mar 13 Jun 13 Sept 13 Dec 13 Mar 14 Jun 14 Sept 14 Dec 14 Mar 15 Jun 15 Sept 15 Dec 15 Mar 16 Jun 16
Total Equipment 1.11 1.10 0.97 1.02 1.06 1.10 0.94 0.99 1.10 0.98 1.04 1.00 1.15 1.00
Assembly Market 1.08 1.26 0.68 1.06 1.25 1.25 0.69 0.84 1.34 0.92 0.72 1.63 1.00 0.90
Besi 1.00 1.14 0.74 1.07 1.59 1.10 0.88 0.91 1.10 0.88 1.04 0.99 1.32 0.92
1.11
1.10 0.97
1.10
0.94
1.10 1.04
1.00
1.15
1.00 1.08
1.26
0.68
1.25
0.69
1.34
0.72
1.63
0.90
0.50
0.75
1.00
1.25
1.50
1.75
Source: SEMI July 2016
Assembly Equipment
Total Semi Equipment
Besi
37
August 2016
• Cyclical quarterly revenue/order patterns :
• Short term patterns due to customer roadmaps, global GDP trends and increased seasonality
• Q3-15 appears to be most recent trough• Strong order growth in H1-16 despite
uncertain economic environment
• Gross margins have improved despite cyclicality :
• Strength of portfolio/market position• Lower unit costs:
• Asian production/supply chain transfer• Reduction in European personnel
• Increased scalability• Larger production runs• Shorter cycle times
Quarterly Revenue/Order/Gross Margin Trends
94.9
104.3
72.1
77.8 79.0
109.0
89.9
104.2
91.9
74.9 77.3
103.9 100.5
49.0%47.9%
48.7%50.0%
49.2%50.9%
50.0%
48.2%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
-
20.0
40.0
60.0
80.0
100.0
120.0
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16E*G
ross
Mar
gin
%
euro
in m
illio
ns
Revenue Orders
Gross Margin Adjusted Gross Margin
* Midpoint of guidance: Revenue -15-20% vs. Q2-16, Gross Margin between 49-51%
38
August 2016
Currency Exposure Trends
Currency Exposure (2015) Forex Financial Impact
• USD/euro revenue mix relatively stable at 70/30%
• Cost exposure shifting: Asian production transfer increases relevance of MYR, Chinese renminbi and Singapore dollar to cost structure
• Euro and CHF cost % should reduce in 2016 based on 2015 operating initiatives
Revenue Expenses
2013 2014 2015 2015 ∆ vs. € 2013 2014 2015 2015 ∆ vs. €Euro 28% 34% 29% - 34% 32% 31% -
US dollar 71% 65% 70% +11.4% 7% 4% 5% +11.4%Swiss franc - - - 26% 18% 22% +10.7%
Malaysian ringgit - - - 22% 37% 28% -9.4%Chinese renminbi - - - 5% 5% 7% +6.5%Singapore dollar - - - 3% 2% 4% +4.2%
Other 1% 1% 1% - 3% 2% 3% -Total 100% 100% 100% - 100% 100% 100% -
* Through December 31, 2015
39
August 2016
Base Line Operating Expense Trends
21.8 25.7
23.6 22.4 23.5 24.8
3.5
6.3
5.1 4.1
5.7 4.3 25.3
32.0
28.7 26.5
29.2 29.1
0
5
10
15
20
25
30
35
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
Other Opex
Base Opex
Baseline Opex 21.8 25.7 23.6 22.4 23.5 24.8
Other Operating Expenses
Capitalization of R&D (1.5) (1.4) (1.2) (1.5) (1.8) (1.5)
Amortization of R&D 1.7 2.2 2.3 2.4 2.2 2.3
Capitalization & Amortization , net 0.2 0.8 1.0 0.9 0.4 0.8
Variable Pay (a) 4.0 3.5 2.7 2.3 5.0 3.9
Restructuring cost/(benefit) (3.0) 0.1 0.2 0.0 0.4 0.1
Forex (b) 2.3 1.9 1.2 0.9 (0.1) (0.5)
Subtotal 3.5 6.3 5.1 4.1 5.7 4.3
Total 25.3 32.0 28.7 26.5 29.2 29.1
(a) Includes both incentive comp and sales based variable comp(b) Year over year comparison
40
August 2016
Quarterly Net Income Trends
41
• Through cycle net margins now range between approximately 9%-22%
• 22.0% reached in Q2-16 (21.2% adjusted)• Gross margins remain at high end of target
range of 45-50%• Baseline opex of € 20 - € 25MM provides
significant operating leverage
• H1-16 adjusted net income of € 31.8 million is +7.8% vs. H1-15• Gross margin +2.1% despite 5.6% revenue
decrease• Opex down 3.8%• Effective tax rate at low end of 10-15%
target due to profit mix and € 1.0 million upward NOL revaluation
€ 14.2 € 15.3€ 10.9
€ 8.7
€ 23.1
€ 3.3€ 0.2
(€ 1.2)(€ 0.7)
€ 0.9
€ 17.5 € 15.5
€ 6.3
€ 9.7
€ 8.0
€ 24.0
15.0% 14.6%
8.7%
14.0%
11.0%
21.2%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
(3)
0
3
6
9
12
15
18
21
24
27
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
(eur
o in
mill
ions
)
Adjusted Net Income Adjustments Adjusted Net Margin
* Adjusted to exclude:• Upward revaluation of tax loss carry forwards (Q2-16) (€ 1.0 million)• Restructuring charges (Q1-16, Q2-16) (€ 0.7 million, € 0.1 million)• Net restructuring benefit (Q1-15, Q2-15) (€ 3.3 million, € 0.2 million)
August 2016
Liquidity Trends
Besi has significantly increased cash flow generation over past 5 years• Increased profits, faster cycle times, Asian
supply chain transfer• Supports capital allocation policy• ≈75% of current 1.0 million share buyback
completed
Q2-16 vs. Q2-15• Net cash +€ 19.3 million (+21.1%)• Inventory down € 11.3 million (15.7%) YOY
• Despite 38% H1-16 quarterly ramp (9.9% ramp H1-15)
Q2-16 vs. Q1-16• Net cash -€ 37.7 million (-25.4%) to
€ 110.7 million• Principal Q2-16 uses of cash:
• -€ 45.4 million dividend payment• -€ 5.6 million share repurchases
161.6
113.7
132.8
157.8
169.8
132.1
28.5 22.3 23.8 21.4 21.4 21.4
133.1
91.4
109.0
136.5
148.4
110.7
0
20
40
60
80
100
120
140
160
180
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
(eur
o in
mill
ions
)
Cash Debt Net Cash
€ 56.9 MMDividend
€ 45.4 MMDividend
42
August 2016
V. OUTLOOK & SUMMARY
43
August 2016
Q3-16 Guidance
Revenue Gross Margin
Operating Expenses
Q2 Q3 Q2 Q3
Q2 Q3
€ 109.0 50.9%
€ 29.1
51%-
49%
-15%to
20%
0%to
-5%
44
August 2016
Summary
Leading semi assembly equipment supplier with #1
or #2 positions in fastest growing assembly
segments
Technology leader. Best in class product portfolio
Gaining market share in advanced packaging
Scalability and profitability of business model greatly
enhanced in cyclical industry
Significant upside potential.Advanced packaging
growth from new technology cycle, operating initiatives and optimization of Asian production model
Committed to enhancing shareholder value.
Attractive capital allocation program
45