ANALYST PRESENTATION 18 JUNE 2015

Transcription

1 ANALYST PRESENTATION 18 JUNE 2015

2 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 constitutes 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 the discovery of weaknesses in our internal controls and procedures, our inability to maintain continued demand for our products; the impact on our business of potential disruptions to European economies from euro zone sovereign credit issues; 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 adequately decrease costs and expenses as revenues decline, loss of significant customers, lengthening of the sales cycle, incurring additional restructuring charges in the future, acts of terrorism and violence; inability to forecast demand and inventory levels for our products, the integrity of product pricing and protect 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; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; those additional risk factors set forth in Besi's annual report for the year ended December 31, 2014 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 are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise. 2

3 Agenda I. Company Overview II. Market III. Technology Update IV. Operations Review V. Financial Review 3

4 I. COMPANY OVERVIEW 4

5 Besi Overview Corporate Profile Leading assembly equipment supplier with #1 and #2 positions in key products. 28.5% addressable market share Broad portfolio: die attach, packaging and plating Strategic positioning in substrate and wafer level packaging Global mfg. operations in 7 countries; 1,680 employees worldwide. HQ in Duiven, the Netherlands Financial Highlights LTM revenue and net income of and 81.6 million Cash at 3/31/15: million Total debt at 3/31/15: 28.4 million 114 million of dividends and share repurchases since 2011 Investment Considerations Growth of <20 nano advanced packaging, smart phones, wearable devices, auto electronics, IoT 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 5

6 Stock Price Information Market profile has improved significantly: Approximate 900 million market capitalization Upgraded to Euronext AMX mid cap index on March 23, 2015 Liquidity has increased over past three years: Average daily volume: 2013: 99, : 117, : 219,887 Share concentration has reduced: Top 10 shareholders = 30% of shares outstanding. Down from 60% in 2011 Largest shareholder less than 7% currently Geographic ownership has diversified: 40% NL 30% US 30% Europe ex NL Highest dividend yield among peers 6.6% currently Dividend payout ratio of between 40-80% net income per annum 6

7 Summary Strategy Develop new products and markets Continue enhancing best in class <20 nano assembly equipment portfolio Expand tech capabilities and applications for TCB line IoT and wearables have potential to significantly expand addressable market Increase market share in addressable markets Leverage <20 nano expertise in flip chip, molding, multi module attach to further penetrate largest smart phone supply chains and expand in Chinese handset market Apply TCB tech advantage to more mainstream applications Flip Chip/Wire Bond conversion for advanced applications can further grow market share Achieve a more scalable, flexible and lower cost manufacturing model Expand Asian materials sourcing and direct shipments Expand Malaysian and Singapore operations. Increase Chinese die bonding production Develop common platforms, common modules and common parts Continue to reduce euro based costs. Better align USD/CHF/EUR exposure Acquire companies with complementary technologies and products Expand tech leadership in advanced packaging including wafer level assembly 7

8 II. MARKET 8

9 Assembly Equipment Market Composition Assembly Equipment Market * (2014: $4.0 billion) Besi Addressable Market * (2014: $1.7 billion) Other Assembly (Inspection, Dicing) 25.9% Wire Bonding 21.7% Molds 13.5% Lead Trim & Form 5.5% Plating 2.0% Die Bonding 39.7% Plating 0.9% Presses 11.2% Die Attach 59% Packaging 21.8% Die Attach 29.7% Singulation 9.3% Die Sorting 3.0% Flip Chip 15.8% Packaging 39% Plating 2% * Source: VLSI May 2015 Half of assembly market represented by die attach and wire bonding equipment Die Attach represents Besi s largest addressable market 9

10 Assembly Equipment Market Trends ( millions) (US$ billions) % % % 29.1% Besi Revenue Revenue YoY Growth Rate % % VLSI forecasts flat growth in 2015 and 2016 after big 2014 increase as capacity digested Growth reaccelerates in 2017 and 2018 Besi revenue growth exceeding assembly market in 5 of past 6 years 1.6% -2.5% % YTD 2014 YTD % % % F 2016F 2017F 2018F 2019F Source: VLSI May 2015 Assembly Equipment Market Size YoY Growth Rate 40% 30% 20% 10% 0% -10% -20% -30% 150% 100% 50% 0% -50% 10

11 Advanced Packaging Unit Volume and Market Share Are Increasing Advanced Packaging Silicon Demand Growth & Market Share M wafers, 300MM Eq % Advanced Packaging Wafers Advanced Packaging Unit Market Share (%) CAGR : 21.1% CAGR : 10.3% 13% 19% 26% 31% 32% 34% 35% 37% 38% 40% 35% 30% 25% 20% 15% 10% AP Market Share % 5 5% % Source: VLSI February 2015 Advanced Packaging (Flip Chip/WLP) is fastest growing assembly process In growth phase with move to <20 nano internet device applications 11

12 Driven Primarily by Growth in Internet Connected Devices 35% CAGR device growth forecast over next 5 years Powered primarily by devices used for IoT Positive trajectory for smart phones, tablets, wearables, and automotive Significant potential revenue growth driver 12

13 Which Has Significantly Increased Semi Equipment Spending for < 25 Nano Nodes Spending on <25 nano nodes has increased from ~15% in 2011 to an estimated 70% of total spending in 2015 Node shift below 20 nano = new assembly equipment capacity 13

14 New Smart Phone Designs Increase Besi s Addressable Market Potential - New Main Components Generation Generation Manufacturer 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 Communications Generation 2012 Generation 2014 Manufacturer 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/Transceiver RF 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/Audio Generation 2012 Generation 2014 Manufacturer 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 Besi systems can assemble 50% of 2012 generation components and 70% of 2014 generation components 14

15 Flip Chip/Wire Bond Process Shift Is Another Revenue Opportunity 2014* 2019* Wire Bonding Flip Chip Bonding Flip Chip Advantages Wire Bonding $861 71% Flip Chip $356 29% Wire Bonding $994 66% Flip Chip $508 34% Reduces board area by up to 95%. Requires far less height Offers higher speed electrical performance CAGR * Flip Chip 7.4% Wire Bond 2.9% Greater I/O connection flexibility More durable interconnection method 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 Lower cost for high volume production, with costs below $0.01 per connection Flip chip expected to gain share over next 5 years Growth could accelerate depending on adoption rates by key IDMs/subcons * Source: VLSI May

16 Besi Has Gained Share In Its Addressable Markets Besi Market Share Source: VLSI, May 2015 and Besi estimates Total Assembly Equipment Sales 8.6% 10.6% 12.7% Besi Addressable Market 21.4% 26.0% 28.4% Total Die Attach Equipment 26.8% 31.2% 34.7% Die Bonding 29.7% 39.2% 38.7% Flip Chip 22.2% 24.4% 31.8% Other 17.1% 4.8% 9.1% Total Packaging Equipment 11.1% 15.9% 16.4% Molds 12.0% 19.1% 19.5% Lead Trim & Form 15.0% 17.6% 19.0% Singulation 5.3% 5.1% 6.8% Total Plating 75.8% 82.3% 75.4% Gaining share in fastest growing segments of the assembly equipment market: Flip chip and multi module die attach and ultra thin molding for advanced packaging applications 16

17 And With Leading Edge Technology Customers Die Attach Packaging In USD (a) (a) Subcontractors ASE 67% 59% 69% 74% 36% 65% 36% 28% Amkor 75% 84% 89% 100% 45% 11% 22% 38% JCET (b) 75% 48% 67% N/B 0% 8% 0% N/B STATSChippac (b) 95% 100% 85% N/B 28% 100% 100% N/B SPIL 47% 93% 89% 100% 37% 76% 19% 38% Nantong Fujitsu N/B 72% 100% 100% N/B 14% 0% 100% UTAC N/B N/B 100% 100% N/B 100% N/B 100% Unisem 92% 84% 100% 100% N/B N/B N/B N/B Cowell/Foxconn (Camera Modules) 100% N/B 100% 100% N/B N/B N/B N/B IDMs (c) Skyworks 100% 96% 100% N/B 13% 24% 38% 100% ST Micro 91% 72% 78% 94% 44% 76% 42% 46% Infineon 81% 97% 100% 100% 0% 24% 90% 100% Micron 86% 100% 43% 42% 50% N/B 100% 100% NXP N/B 100% 100% 100% N/B 7% 100% 86% Samsung (d) 5% 0% N/B N/B 0% 100% N/B N/B % of product revenue 49% 52% 64% 51% 54% 70% 65% 70% Customers are largest semi mfrs. Engaged in most advanced packaging applications Strong customer market shares: % of die attach requirements % of packaging requirements Customer market shares p.a. vary based on capacity needs and purchasing cycles Primary competition: Die Attach: ASM-PT, Hitachi, Shinkawa, Panasonic, Toray Packaging: Towa, Hanmi, ASM-PT N/B No reported bookings for Besi or its competitors a) Year to date through April 30, 2015 b) Merger pending c) Fabless semiconductor companies such as Qualcomm, Broadcom and Mediatek have assembly production done by subcontractors d) In general, Samsung satisfies approximately 50% of its equipment needs internally 17

18 Besi 2015/2016 Growth Drivers World tooling up for new tech cycle Significant growth < 20nm end user applications: IoT, wearables Increased TCB usage: memory applications currently, logic devices next Larger addressable market from increased smart phone functionality and new device introductions Increased market penetration Chinese handset market: IDMs/Xiaomi, Mediatek, Huawei. Subcons/JCET, Nantong Fujitsu, ASE, Amkor Increased market share In key electronics supply chains Primarily at expense of Japanese suppliers lagging in innovation cycle Flip chip and TCB gaining share from Wire Bond assembly processes Consolidation offers positive opportunities with semi manufacturers 18

19 III. TECHNOLOGY UPDATE 19

20 Best in Class Product Portfolio Die Attach Packaging & Plating In Development Esec Die Bonding xp plus sd plus sd PPP plus hs New SSI DS New SC Fico Molding - AMS series - AMS LM 95 - MMS series - FML New Next generation Die Attach Next generation Packaging Common modules Datacon Multi Module Die Attach evo evo plus New Trim & Form - Compact series - Power series - Compact Line XHD New Fico Datacon/Esec Flip Chip FCQ Sigma CHAMEO TCB New FC New Fico Singulation - FSL Datacon Die Sorting - DS 9000E - WTT New - TTR New - DLA New Meco Plating - Leadframe - Solar - Film & Foil 20

21 Besi Assembly Process Technology Steps Sorting and mounting chips on substrate materials Establish electrical interconnects Molding/encapsulation in packages Singulation/trim and form of packages Electro plating of leadframes, substrates and solar cells Flip chip, TCB and multi module die bonding and ultra thin molding are key core competencies 21

22 Internet of Everything is Driving Advanced Packaging Growth Key End Use Applications: Mobile internet devices Connectivity Computing power Big Data Analytics Source: Intel Automotive Source: Nvidia 22

23 Requiring Changes in Process/Equipment Development Front End Transistor Scaling Today=> Tomorrow Lithography New Structures 3D Back End More Contacts Smaller Pitches Thinner/denser more complex packages Stacked Structures 3D From Simple Wire Bond to BGA/Flip Chip to Complex 3D structures with TSVs, Microbumps and thin dies 23

24 Thin Die Usage Is Becoming Increasingly More Important in Key End Use/Process Applications Drivers Memory Power Flip Chip Increased volume Increased density Thermal Conductivity Lower resistance Thinner packages Current Die Thickness Vertical stacking to compensate for slower lateral shrink 22 um 40 um 100 um Future spec < 15 um 25 um 50 um Examples Die thickness anticipated to reduce by 35-50% over next 3 years 24

25 Besi Is Winning in Thin Die Arena DB 2100 Example Technology Besi Spec Competition Disc based Thin Die Ejector Dual Step Fusion Die Bonding No No 2100 sd plus / 2100 sd PPP plus Fast Change over Dual Mode Die Crack Detection High Speed & High Accuracy & 10 um No No No 25

26 Thermo Compression Bonding Is An Emerging Assembly Technology TCB: Next Die Bonding Process Evolution: Besi has most advanced concept in the industry 7 Axis bondhead 2 bond heads per system High throughput => 2x competition Compact design User friendly Orders/production significantly expanded in 2015 Memory producers first adopters Principal competition: ASM PT, KLIC (in development) TORAY SHINKAWA Production transferred to Besi APac to reduce cost Added control functions and production features 26

27 TCB Solution in Advanced Memory Cube Application Performance Gap In performance CPU-Memory Issue: Memory performance lags CPU performance Solution: Advanced stacking design using TCB with TSV capabilities 15x Higher transfer speeds 70% Less energy per bit 90% Less space Wire bonding process eliminated Wire Bonded BGA Stacked Die Memory Device Time TSV TCB Memory Cube Connected using Thermal Compression Bonding Wire Bond connections replaced by direct connection 27

28 ewlb Is Another Emerging Die Bonding Technology ewlb = Embedded Wafer Level Ball Grid Array Utilized for extremely small form factors such as logic processors Besi Chameo FC 8800 only proven system to relocate up to 40,000 chips on carrier very precisely over whole 12 wafer at high speed and accuracy (<2um) Besi s expanded wafer size thin molding and exposed die molding eliminates mold back grinding 28

29 Besi Packaging Technology Update Key Packaging Trends Ultra thin molding Besi Spec.12 mm One step No warpage Competition.2 mm 2 steps Negative Narrow underfill 30 um proven 40 um Exposed dies Foil based, no further process steps Back grinding step required Shielding Flexible FSL concept Limited flexibility Larger wafer sizes 340x340 mm Same Odd mold formats Ultra precise molding Less precise 29

30 Besi Offers Leading Edge Molding Technology First Generation First Generation Product designed around SMT board and standard package Package is square or right angular Standard functionalities Current Generation SMT board dictated by product design. Packages become thin and multifunctional Very thin moldcap (<120 um) Narrow underfill for flip chip packages (<30um) Next Generation Package is defined by product Package has odd shapes to fit in device More MEMS devices => exposed die Shielding of products to prevent communication interference Evolution Current Generation Next Generation Integration 30

31 Ultra Thin Molding Is Critical Assembly Packaging Process Technology Shift to <28 nano advanced electronics applications has increased Besi s AMS-LM revenue by 100%+ over past two years Besi AMS-LM only system which can deliver these specs Currently qualified for ALL 2015 tablet and smart phone platforms Ultra Thin Molding exposed die with underfill TCB Key Features: Can reach.12 mm overall package thickness One step molding of molded underfill and bleed free products Flash and bleed free product No warping Mold cap polarities of +/- 5 um 31

32 Wafer and Large Area Molding Is Another Important Process Development Besi has most advanced molding capabilities in the industry: Large area molding up to 340 mm x 340 mm ewlb and C2 wafer applications Overmolded and exposed capabilities Exposed solder balls Glass and silicon interposer molding Thin moldcap moving to <250 mm 32

33 Key Development Objectives - Timetable Development Objectives Advanced TCB die bonding development Introduction of next generation packaging systems Common parts/platform activities 33

34 Summary Semiconductor packaging plays an increasingly important role in electronics as IC devices get smaller, denser and more complex with increased functionality In new technology cycle due to the Internet of Everything Besi product portfolio and process technology is at forefront of advanced packaging trends 34

35 IV. OPERATIONS REVIEW 35

36 Current Operational Profile Chandler Sales Office Production Site Sales & Production Site * R&D Site Duiven & Drunen, (The Netherlands)* Cham, (Switzerland)* Radfeld, (Austria)* Suzhou Chengdu Leshan Shenzhen Malaysia Singapore* Korea Shanghai Taiwan Philippines Development activities in Europe Production and sales/service activities in Asia as of 31 March 2015 Europe/NA Asia Revenue (MMs) % % Headcount % 1, % 36

37 Asian Production Has Significantly Expanded 1,200 Total Asian Shipments Direct Asian Shipments % Direct 96.3% 100.0% Shipments 1, % % % % % 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% % Direct Shipments % 10.0% % 37

38 Leading to Lower European Headcount Europe/NA Fixed HC Asia Fixed HC Total 1,800 1,600 1,400 1,543 1,479 1,434 1,510 1,530 Headcount 1,200 1, % % % 60% 61% Fixed European/North American headcount reduction: Down 19.4% since 2011 Declined from 56% of total in 2009 to 39% at Q % % % 40% 39% Q

39 And Also Reduced Break Even Revenue Levels (13.0%) (9.8%) (2.4%) ( millions)

40 Key Operational Objectives Operational Objectives Transfer of certain Swiss Die Attach software, logistics and administrative functions to Singapore Transfer of certain die bonding production from Malaysia to China Transfer of Plating Production from NL to Malaysia Further reduction of European based costs Expansion of Asian supply chain. System module outsourcing 40

41 Besi Switzerland/Singapore Function Transfer Transferring certain die attach software engineering, logistics and related admin functions by end of Q4-15 Swiss headcount to be reduced by 55 people or 40% Singapore headcount to increase from 75 to 125 people Current Singapore facility of 17,800 sq. ft. Minimal additional capex necessary Annualized cost savings of approximately 6.5 million Includes 0.5 million of Cham CH facility savings Total net pre-tax restructuring benefit of 3.7 million recorded in Q1-15 Pension related curtailment gain of 5.3 million Partial offset: restructuring charges of 1.6 million Minimal Q2-15 impact 41

42 Besi China Die Bonding Production Transfer 74,000 sq. ft. Leshan facility principally manufactures molds, mold sets and spare parts. 257 employees currently Transferring DB 2100 SD epoxy die bonding production for the Chinese market from Malaysia to Besi China Locate production closer to end customer with potential for incremental revenue To be completed by year end 2015 Potential annualized cost savings: 1.0 million/annum Capex requirement: 0.3 million Incremental headcount required: 42 people 42

43 Plating Production Transfer from NL to Malaysia Transfer underway to move plating production from Drunen, NL to Malaysia facilities by end of 2015 Intellectual property and engineering to remain in Drunen Benefits: Increase manufacturing flexibility Reduce cycle times Increase revenue potential with direct Asian presence No material restructuring costs required Potential 5%+ gross margin improvement on plating production in

44 Further Reduction of European Based Costs Further reduction of European personnel costs Total of 574 fixed European headcount at March 31, 2015 Approx. 10% headcount reduction by year end 2015 Besi Switzerland Besi Austria Achieve cost savings from facility consolidation Besi Netherlands Duiven Besi Netherlands Meco Drunen 4 European facilities currently Duiven NL 154,000 sq. ft. (leased) Drunen NL 53,000 sq. ft.(leased) Cham, CH 83,500 sq. ft.(leased) Radfeld, AU 125,400 sq. ft.(owned) Total 415,900 sq. ft. Reducing footprint of Duiven and Cham facilities by 111,500 sq. ft. (27%) by end of 2016 Potential annualized cost savings of 1.5 million, net 44

45 Materials Cost Reduction Is Also a Key Priority Supply Chain Actions Qualify and Select Asian Vendors 75% of material is now purchased in Asia Development Actions 45-50% thru cycle Gross Margin Redesign products Increase standardization of systems Component parts Modules Material costs represent approximately 45% of revenue Shift to Asia centric supply chain: Reduces transport, inventory costs and obsolescence Improves cycle time and ramping flexibility Management Board reviews progress weekly component by component 45

46 Asia Supply Chain Transfer Progress Estimated savings E E Headcount 0.9 MM 2.8 MM 1.0 MM Materials Cost 2.7 MM 1.6 MM 1.5 MM Subtotal 3.6 MM 4.4 MM 2.5 MM 2015 Focus Focus DB Spares & Module Assembly Transfer Plating NL-MY Transfer DB 2100 MY-China Swiss/MY transfer WB Spares & Module Assy Completed in 2015 Completed in 2015 Extend Supply Chain inside China Start transfer DB 2009 and EVO MY- China Transfer last remaining modules possible to Asia Completed in

47 V. FINANCIAL REVIEW 47

48 Revenue Growth and Margin Expansion Yield Increased Profitability Q1-15/Q1-14 FY 2014/FY 2013 Revenue Net Income Revenue Net Income % % 90% 85% 80% % % 90% 85% 80% millions MM 10.0% Gross Margin 42.3% +6.7 points 49.0% OPEX +17.6% Headcount 1, ,680 Effective Tax Rate 25.3 MM 11.6% +1.3 points 12.9% points 18.5% 17.5 Q Q % 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Net margin % millions % Gross Margin 39.8% +4.0 points 43.8% 82.7 MM OPEX +13.4% Headcount 1, ,632 Effective Tax Rate 15.8% points 0.3% points 93.8 MM 18.8% % 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Net margin % 48

49 Revenue/Order/Gross Margin Trends euro in millions Revenue Gross Margin % 39.2% 40.1% Orders Adjusted Gross Margin % 48.2% 45.3% 42.3% 43.2% 43.8% 60.0% 55.0% 50.0% 45.0% 40.0% Gross Margin % Cyclical quarterly revenue/order patterns: Three cycles past 3 years Short term patterns due to customer caution and increased seasonality 2014 year end shows higher base line order levels than prior years Gross margins have improved despite cyclicality: Increased scalability of production model Shift to higher margin advanced packaging systems Lower unit costs due to: Asian production transfer More direct shipments Reduction in European personnel Favorable USD/euro starting in H Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q % 49

50 Net Income Trends Net Income ex. NR Non Recurring Net Margin % % Quarterly net income trends reflect industry and seasonal volatility (euro in millions) % % % % % 20.8% 22.2% 18.5% % 5% -5% Profit/margin increase aided by revenue growth, through cycle gross margin expansion and opex leverage in business model Significant reduction in effective tax rate has also helped Net margin of 18.5% in Q1-15, up significantly from 10.0% in Q (0.5) 3.4 (2.0) -15% (3) Q2-13 (a) Q3-13 Q4-13 (a) Q1-14 Q2-14 Q3-14 Q4-14 (a) Q1-15 (a) -25% (a) Adjusted to exclude: After tax net restructuring (Q1-15) Deferred tax benefits (Q4-14) 0.5 million and 2.0 million non recurring charges in Q2-13 and Q4-13, respectively 50

51 Forex Influence on Recent Quarterly Operating Results Currency Exposure (2014) Forex Financial Impact (Q4-14 and Q1-15) Revenue Euro 34% 28% US dollar 65% 4% Swiss franc - 20% Malaysian ringgit - 40% Other 1% 8% Cost and Expenses Total 100% 100% Q1-15 vs Q4-14 Q4-14 vs Q3-14 Mln Mln Euro Margin Euro Margin Revenue (USD/EUR) COGS (USD/EUR) (MYR/EUR and CHF/EUR) Gross Profit % % Opex (CHF/EUR) Net

52 Liquidity Trends (euro in millions) Cash Debt Net Cash Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Solid liquidity position million cash at 3/31/ per share vs price (as of March 31, 2015) Net cash reached million at end of Q Has Been Utilized to Enhance Shareholder Value 114 million spent on cash dividends and share repurchases Includes May dividend payment Strong balance sheet helps support future organic growth and acquisition opportunities 52

53 Q2-15 Guidance Revenue Gross Margin* Operating Expenses* % 28.3 Up 10-15% 48% - 46% Up 5-7% Q1 Q2 Q1 Q2 Q1 Q2 *excluding restructuring benefit Underlying business growth continues Revenue up approximately 10-15% vs. Q1-15 Gross margins of 46-48% Opex up 5-7% vs. Q1-15 due primarily to higher forex, R&D and warranty Sequential Q2-15 and H1-15/H1-14 revenue and net income growth 53

54 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, operating initiatives and optimization of Asian production model Committed to enhancing shareholder value. Attractive dividend yield relative to peers 54

55 Financial Calendar 24-Jun Jul-15 12/13-Aug-15 9/10-Sep-15 16/18-Sep Oct-15 11/13-Nov-15 Rabobank Made in Benelux Conference, London, United Kingdom 2015 Second Quarter Results Canaccord Genuity Growth Conference, Boston, USA ING Benelux Conference, London, United Kingdom Kepler Cheuvreux Autumn Conference, Paris, France 2015 Third Quarter Results Morgan Stanley European TMT Conference, Barcelona, Spain 55