BE Semiconductor Industries N : Investor Presentation Aug 2020

INVESTOR PRESENTATION

August 2020

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 presentation, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, 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; the extent and duration of the COVID-19 pandemic and measures taken to contain the outbreak, and the associated adverse impacts on the global economy, financial markets, and our operations as well as those of our customers and suppliers 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, 2019; 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.

August 2020

2

Agenda

1. Company Overview

1. Market

III. Strategy

IV. Financial Update and Summary

1. Appendix

August 2020

3

I. COMPANY OVERVIEW

August 2020

4

Besi Overview

Corporate Profile

Financial Highlights

Investment Considerations

• Leading assembly equipment supplier with #1 and #2 positions in key markets. 32% addressable market share
• Broad portfolio: die attach, packaging and plating
• Strategic positioning in substrate and wafer level packaging
• Global operations in 6 countries; 1,691 employees. HQ in the Netherlands
• LTM revenue and net income of € 397.7 million and € 106.6 million
• Cash/deposits at Q2-20: € 366.6 million
• Net cash/deposits at Q2-20: € 93.6 million
• € 732.6 million of dividends and share repurchases since 2011*
• Applications for digital society key long term drivers: Internet of Everything, AI, Big Data, Cloud computing, 5G network roll out, 3D imaging
• Advanced packaging critical part of semi value chain
• China market growth and share gains also benefit revenue development
• Asian production optimization, European overhead reduction and common parts initiatives also help drive profit potential

* Includes 2019 dividend payment of € 1.01 per share and share repurchases through June 30, 2020

August 2020

5

Company History

400

(€ millions)	300
Revenue	200
	100	€ 85.5

25.9%

0

2003

August 2020

Die Attach Acquisitions

Product Strategy

• Expanded advanced packaging leadership into die attach area
• Gained market share organically and via acquisitions
• Gained mindshare with key industry leaders
• Growth in China, key customers and electronics supply chains

Successful Execution of Strategic Plan Initiatives

• Asian production transfer combined with European restructuring enhanced profit potential
• Developed Asian production hubs (MY and CN), Singapore development/support center and Asian supply chain
• Scalability enhanced. Break even revenue levels reduced

Financial Metrics

• Achieved peer leading gross and net margins and ROI
• Improved cash flow generation
• Implemented attractive capital allocation policy

Revenue Gross Margin

€ 397.7

57.9%

LTM

70.0%

65.0%

60.0%

55.0%

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

6

Best in Class Product Portfolio

Die Attach

Die Bonding

Multi Module Attach

Flip Chip

Large Panel Size

Die Sorting

• 2100 xP plus / hS

• 2009 SSI

• 2200 evo

• 8800 CHAMEO advanced

New

• 8800 CHAMEO PLP

• WTT

• 2100 sD

plus

/ PPP

plus • 2100 SSI

New

New

• 2200 evo plus

• 8800 TCB advanced

New

• TTR

• 2100 DS

• 2100 sD

advanced

• 2200 evo hS

• 8800 FC Quantum hs

New

New

New

• 2100 hSi

• 2100 Advanced i

• 2200 evo advanced

New

• 2100 FC hS

New

Packaging

Molding	AMS-i					Trim&Form	Trim&Form
AMS-X			AMS-W/LM	FML
New			New
		FCL	FCL X/P	New
• HD Leadframe	• Leadframe	• Substrate	• Wafer
	•	X	Incl Sorting
• 100x300	• MEMS		• Panel
		•	P
• Power Devices	• Sensors

Die Lid Attach

• DLA
• DLA Next GenNew

FSL

• Singulation
• Sorting

Plating

Plating

• Leadframe

• Solar

• Next Gen HD plating with integrated litho New

August 2020

• Film & Foil
• Battery
• Advanced Surface Prep New
• Wettable Flank New

In Development

• Next generation Die Attach
• Next generation Packaging
• Common modules

7

Customer Ecosystem

Customers	OEMs	End Products
IDMs

Subcontractors

• Diversified, blue chip customer base, top 10 = 44% of 2019 revenue
• Leading IDMs and subcontractors. 61%/39% split in 2019
• Also supply leading fabless companies: Qualcomm, Broadcom, MediaTek via subcontractors
• Long term relationships, some exceeding 50 years

August 2020

8

Product Positioning

Semiconductor Manufacturing Equipment

(2019: $61.7B)*

Front end: $53.2B	Assembly: $3.0B	Test: $5.5B
(86.2%)	(4.8%)	(8.9%)

Semiconductor Assembly Process

Dicing

Die Attach Wire Bond Packaging** Plating

Leadframe Assembly

Substrate

Wire Bond Assembly

Substrate

Flip Chip Assembly/TCB

Wafer Level Packaging

Flip Chip Assembly/Fan Out

• Source: VLSI June 2020
• Includes Molding, Trim and Form and Singulation Systems

August 2020

9

Operational Profile

Duiven & Drunen,

(The Netherlands)

	Steinhausen,	Radfeld, (Austria)
	(Switzerland)
Chandler		Suzhou
	Chengdu	Korea
		Leshan	Shanghai
		Taiwan
		Shenzhen

Sales Office

Production Site

Sales, Production and R&D Site

ThailandPhilippines

Malaysia

Singapore

			LTM June 30, 2020
• Development activities in Europe		Europe/NA	Asia
Revenue (MMs)	€ 83.3	20.9%	€ 314.4		79.1%
• Production in Asia
• Sales/service activities in Asia, US and Europe	Headcount	503	29.7%	1,188		70.3%

August 2020

10

Summary Financials

Year Ended December 31,	2017	2018	2019	H1-19H1-20
(€ millions, except share data)
Revenue	592.8	525.3	356.2	174.1	215.6
% seq. change	58%	-11%	-32%		+24%
Gross margin	57.1%	56.8%	55.8%	55.9% 59.7%
EBITDA	222.8	187.7	111.7	49.7	77.1
Pretax income	199.2	154.9	78.1	32.7	61.9
Net income	173.2	136.3	81.3	28.4	53.7
Net margin	29.2% 25.9% 22.8%	16.3% 24.9%
EPS (diluted) (a)	2.17	1.68	1.06	0.39	0.74
EPS (basic) (a)	2.32	1.83	1.12	0.38	0.69
Dividend per share (a)	2.32	1.67	1.01
Net cash	247.6	199.4	130.3	86.1	93.6

1. Adjusted for 2:1 stock split in May 2018 August 2020

Long term, step function revenue growth in cyclical business

• Last peak reached in 2017 at € 592.8 million

H1-20 business prospects have surprised to the upside

• Renewed mobile investment for next cycle
• Increased Chinese investment since H2-19
• Continued logic/AI/cloud expansion
• H1-20revenue and orders +23.8% and 32.5% vs. H1-19
• COVID-19and US/China issues clouding assembly market recovery

Strong margins and profit potential

• Quarterly gross margins of 55%+ achieved in 2018-2019 downturn
• 62% gross margin achieved in Q2-20 with market position, product mix and labor efficiency
• Opex management creates significant operating leverage
• H1-20net margin rose to 24.9% vs. 16.3% in H1-19
• Peer leading financial metrics through market cycles

Improved cash generation supports shareholder friendly capital allocation policy

11

Increased Profitability vs. Last Industry Cycle

€ millions

Trough

2015

2019

€ millions

Post Trough

Nine Months 2016

Nine Months 2020E*

350

300

349.2

+2.0%356.2

25.8%

91.9

		350
140
120
100	Income	300
80

			160
		140
	318.1	120
+12.7%	32.3%			Income
		100
	102.7

Revenue

250

200

+58.7%

16.6%

57.9

Revenue Operating Income

60	Operating	Revenue
		250
40
20
0		200

282.3		+85.4%	80	Operating
	19.6%					60
55.4
								40
								20
								0
			Revenue			Operating Income

* Assumes midpoint of guidance for Q3-20

August 2020

12

Revenue and Gross Margin Cycles Since 2006

€ millions												Revenue	Gross Margin
700
600
																									59.5%
																				593	56.8%
																					55.8%
500																		51.1%
400																			424				-40.0%
									39.5%			379
300				34.1%																	356	+20.6%
											302
																					318
4 year							351
averages																										264
200
					164
100		191
0

Gross Margin

70%

60%

50%

40%

30%

20%

10%

0%

* Nine months assuming midpoint of Q3-20 guidance.

August 2020

13

Business Model Objectives

Revenue

Addressable

Market Share

Gross Margin

Net Margin

Headcount

Split

August 2020

Objectives

€ 800MM

40%+

55-60%

30-35%

80% Asia/20% Euro

14

Capital Allocation Trends

€ millions

209.5

200

35.5

Dividends

167.1

Share Repurchases

150	44.7

100				88.8
					174.0			79.7
		67.4		23.5			6.2
	22.0				122.4
50
				65.3				73.5
	45.4
0
2016		2017	2018	2019	2020*
							8%
	33%	26%	17%	27%
	67%		74%	83%	73%	92%

* Share purchases included as of June 30, 2020

August 2020

• € 732.6 million distributions since 2011:
• • € 79.7 million YTD including May dividend
• € 73.3 million shares repurchased under current € 75 million authorization
• • Average price of € 22.58
  • 7.3 million shares in Treasury at average price of € 15.48 (9.1%/shares outstanding)
• Share repurchase program extended and increased
• • Extended to October 30, 2021
  • Increased by € 50 million to € 125 million

15

II. MARKET

August 2020

16

What Drives Besi's Business?

Macro GDP trends	IDM customer and	Tech capabilities in
supply chain	24/7 production
	choice	environment

Timing of customer	Competitive cycle
roadmaps and
times and
capital spending
scalability
programs

August 2020

17

Assembly Equipment Market Trends

Assembly Equipment Market

	5.0	Market Size		YoY Growth Rate							50%
			4.5	4.3				4.2	4.6
								3.6
billions	4.0	3.1	3.5			3.0	3.3			30%
3.0								10%
		25.8%			11.3%		15.6%
		12.5%			9.5%	9.7%
US$	2.0						-10%
			-2.5%
	1.0	-15.9%									-30%
	0.0					-31.5%					-50%
		2015	2016	2017	2018	2019	2020E	2021E	2022E	2023E

Source: VLSI June 15, 2020
• VLSI 2020 forecast back to pre COVID-19
			Besi Revenue	estimate
			•	+11.3% in 2020
		Revenue	YoY Growth Rate	•	Reversal from -8.3% April forecast

	600			592.8	525.3
							70%	• Multiyear growth 2019 to 2023 (+53%
				57.9%
millions			375.4					50%	total)
400	349.2			356.2	20.6%
		30%
						263.8	318.1	• Market fundamentals very strong
		7.5%					10%	• 5G could be game changer
€
200									• Mobile makers pack more
	-7.8%			-11.4%				-10%
									-30%	features/functionality into handsets
						-32.2%			• WAHE further advances Cloud, AI and
	0								-50%	logic applications
		2015	2016	2017	2018	2019	9mo-2019	9mo-2020*		• Chinese want semi independence

* Assumes midpoint of guidance for Q3-20

August 2020

18

Semi Equipment Climate Index Changed Significantly in H1-20

Source: VLSI June 24, 2020

August 2020

19

Assembly Equipment Market Composition

Assembly Equipment Market * (2019: $3.0 billion)

Other	Wire Bonding
Assembly
18.7%
(Inspection,
Dicing)
33.4%

Plating	Die Attach
0.7%	29.3%
Packaging
17.9%

Besi Addressable Market * (2019: $1.2 billion)

Plating

Lead Trim & Form 1.7%

4.8%

Molds &

Presses

25.1%

	Die Bonding
	49.9%
	Die Attach
	64%
Singulation	Packaging
34%
4.1%
Die Sorting	Plating
4.6%	2%
	Flip Chip / TCB
	9.8%
	* Source: VLSI July 2019

• Roughly half of assembly market represented by die attach and packaging equipment
• Die Attach represents Besi's largest addressable market

August 2020

20

Besi Market Share Trends

	2015	2016	2017	2018	2019
Total Assembly Market ($MM)	$3,148	$3,541	$4,453	$4,343	$2,974
Besi Market Share	12.3%	11.8%	15.0%	13.8%	13.4%
Addressable Market ($MM)	$1,271	$1,506	$1,940	$1,848	$ 1,247
Besi Market Share	29.9%	27.6%	34.2%	32.4%	32.0%
Die Attach	35.5%	34.2%	42.0%	38.6%	37.5%
Packaging & Plating	21.1%	17.6%	18.8%	21.4%	22.1%

Percentage of	2017	2018	2019
Total Revenue
Die Attach	81.6%	76.4%	75.6%
Packaging	15.2%	19.2%	19.6%
Plating	3.2%	4.4%	4.8%

• VLSI updated market data in May 2020
• Besi addressable market share relatively stable between 2018 and 2019

Source: VLSI May 2020 and Besi estimates

August 2020

21

Move to Digital Society Helps Drive Advanced Packaging Growth

August 2020

22

Advanced Packaging Critical to Next Generation Applications

Mobile Revolution

• Mobile internet
• Messaging
• Social media
• Shared economy
• Gaming
• Geo-location
• Audio/video
• Auto electronics

Digital Society

• Smart mfg, cities, mobility and homes
• 5G mobile/wearable devices
• Artificial intelligence
• Driverless cars
• Data mining
• Cloud servers
• High performance Computing
• IoT
• VR/AR
• MEMS

Greater

Miniaturization

Higher	Greater
Accuracy	Complexity

Die Bond	Packaging
Datacon 8800 TC	Fico AMS-LM
Datacon 8800 CHAMEO fan-out	Fico Singulation Line
Esec DB2009	FML Wafer Molding
Esec DB2100	Fico Compact Line - X
Lower Power	Increased
Consumption	Density

Higher

Performance

August 2020

23

Requiring Increased Density, Higher Accuracy and Smaller Form Factors for Next Generation Devices

Front End

• Transistor scaling
• Lithography
• New structures 3D

100

NM

10

1

0.1

2010	2015	2020	2025	2030
		Logic Metal Pitch			Edge Placement Accuracy	Source: Samsung
		Node Name	Source: ASML 3D Conference 2020

Back End Assembly

• More contacts
• Smaller pitches
• Thinner/denser more complex packages

	From Simple Wire Bond	To BGA/Flip Chip	To Complex 3D Structures With	To Complex Chiplet Based
•	Stacked structures		Tsvs,microbumps And Thin Dies	Structures And More Dense
	3D			Contacts With Hybrid Bonding
•	WLP/FOWLP
	packages

August 2020

24

Advanced Packaging Unit Volume and Market Share Are Increasing

Advanced Packaging Silicon Demand Growth & Market Share 2011 - 2023

	55								50%
							43%
	45						40%	41%
				38%	39%		40%
			36%	37%
Eq.		34%
						%
35	32%
300MMwafers,M	31%							ShareMarketAP
		26%						30%
	25

19%	20%
15
13%

• Assembly process step now important

gating item

• Specifications more like front-end

• Advanced packaging applications have

grown significantly since 2010

• Currently, estimated 38% of wafers use

advanced packaging interconnects

• Leading growth segment of assembly

equipment market

5

10%

• Flip chip and WLP are leading AP assembly

processes next five years

1. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0%

Flip Chip		Wafer Level Packaging
Fan-Out Wafer Level Packaging		TSV (3D & 2.5D)
Advanced Packaging Unit Market Share (%)

Source: VLSI February 2020

August 2020

25

Besi Portfolio Well Positioned by Node Size and Accuracy

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Estimated % of 2019 Revenue

Accuracy Size

Micron NM

25%

10+

28+

20%	10	28

40%	7	17

	15%	3	10

Typical Application	Besi Equipment
Automotive, SiP	Die Attach
Packaging
Power
Plating
IOT	Die Attach
Packaging
General ICs
Plating
Computer, PC, Mobile	Die Attach
Cloud Computing	Packaging
High Performance Computing	Die Attach
Memory	Packaging

• 75% of Besi equipment revenue advanced packaging as per VLSI definition
• 55% equipment revenue is < 7 micron accuracy and sub 17 nanometer
• Most rapidly growing market segment

August 2020

26

Besi End User Markets

2019 % of Revenue

	Ind'l/LED
	9%
Automotive	Mobile Internet
Devices
17%	32%

Spares/Service

20%

Computer, PCs

22%

Source: Company Estimates

August 2020

• Mobile Internet, Computing and Automotive are largest end markets
• • Estimated 71% of revenue in 2019
  • Percentages vary p.a. based on customer roadmaps
• Mobile is largest market
• • % varies based on timing and success of new product introductions
• Computing growth due to increased demand for high end logic, cloud and memory solutions
• Growth in automotive reflects ever increasing electronic content
• Spares/service: 20% of 2019 revenue
• • Growth in installed base
  • Less volatile revenue stream

27

Key End User Market Growth Drivers

	Mobile Internet	Computing	Automotive
	5G Ramp Underway	Development Continues Despite
	Digital Society Accelerating
Increasing Mobile Content & Features	Near-Term Weakness

Cloud Infrastructure

Autonomous Driving

HPC/VisionLidar

5G subscriptions expected to reach 2.5	Medical	Work at Home	Electrification	Charging
Economy
billion by 2025 vs. 0.2 billion in 2020		Infrastructure

August 2020

28

Besi Addressable Market Share of Mobile Increasing. Can Support Virtually All Device Platforms in Latest Generation Phones

Main Components

Communications

Video/Audio

Generation		2012	2018	Manufacturer		IDM/OSAT		Besi System Utilized
	iPhone XS
Processor		X		Apple		TSMC ->TSMC		8800CHM, MMS-LM
DRAM Memory		X	X	Hynix/Micron/Samsung		Hynix/Micron/Hanamicron		2100sD, FSL
NAND Flash (Controller IC for flipchip)		X	X	Hynix/Toshiba/SanDisk		Hynix/Amkor/Toshiba/Sandisk		2100sD, AMS-W/LM/FCQ8800
Power Management
Apple PM IC			X	Apple/Dialog		Jcet/Amkor		2100sD, AMS-W/LM
PMIC		X	X	STM				N/A
Power management IC			X	Intel		Amkor		2100sD, AMS-W/LM
M11 Motion coprocessor				Apple		Amkor/ASE		Amkor/ASE
Accelerometer/Gyroscope/Barometric
Gyroscope		X		Invensense		Amkor/ASE/STM		2100xP, 2100sD, AMS-W/LM, FCL
3-ax accelerometer			X	Bosch		Bosch		2200evo
barometric sensor			X	Bosch		Bosch		2200evo
Charging IC			X	TI		Amkor/ASE/TI		2100xP, 2100sD, AMS-W/LM, FCL
Power Delivery IC			X	Cypress		Amkor		None
Wifi/NFC
Wifi/Bluetooth module		X	X	Apple/Murata/		USI		AMS-W/LM / 2100HSi
NFC			X	NXP		Amkor /NXP		8800FCQ, AMS-W/LM,2009SSI
LTE
LTE Modem			X	Qualcomm/Intel		Amkor/Stats/Spil/ASE		8800FCQ, AMS-W/LM
Receiver/Transceiver
RF Transceiver		X	X	Qualcomm/Intel		Amkor/ASE		2100xP, 2100sD, AMS-W/LM
RF Receiver		X	X	Qualcomm/Intel		Amkor/ASE		N/A
Envelop Tracking IC			X	Qorvo		Qorvo		8800FCQ, AMS-W/LM
Antenna Switch		X		RFMD		Amkor/ASE,/RFMD		2100xP, 2100sD
PA
PA		X	X	Skyworks		ASE/Amkor		2100xP, 2100sD, AMS-W/LM
PA Module			X	Skyworks/Broadcom		ASE/Amkor		2200evo, 2100sD
Camera
Back side 12M (OSI)		X	X	Apple		LG, Sharp		2200evo
Front 7M		X	X	Apple		LG		2200evo
Face ID 12M			X	Apple		LG		2200evo
Dot Projectors ( VCSEL)			X	Finisar / Lumentum		Finisar / Lumentum		2200evo
Audio
2+4 microphones			X	Knowles/Goertek		Knowles/Goertek		2100sD
Audio Codec		X	X	Apple		Amkor		2100xP, 2100sD, AMS-W/LM
Touch screen control
Touch screen control		X	X	Broadcom		Signetics		2100sD
OLED PMIC			X	ST		ST		2100xP
Display Port Multiplexer			X	NXP		Amkor/ASE
Sensor
Gyroscope+Accelerometer		X	X	InvenSense/Bosch		STMicroelectronics		2200evo
Barometric Pressure Sensor			X	BOSCH		Carsem/Amkor/Unisem		2200evo
Image Sensor			X	AMS/STMicroelectronics		AMS/STMicroelectronics		2200Evo

August 2020

29

Computing: Advanced Computing & HPC Another Area of Growth

Data Volumes Keep Growing Exponentially Advanced Computing Proliferation In Largest Sections of the Economy
Cloud Computing		Automotive	Manufacturing		Healthcare	Gaming
$ 230B		$ 10T	$ 14T		$ 7T	$ 150B
• 150 B IoT Devices by 2025
• 59 ZB in 2020: 26% CAGR
• Only 10% Original Data

• Next generation processors more	Modular Chips The Way Of The Future: More Advanced 3D Structures Required
powerful and energy-efficient

• Advanced packaging key enabler for leading-edge devices

August 2020

30

Automotive: Progress Continues in EV and Autonomous Driving Development

Electric car sales growing strongly	Increase in EV volume will generate
	substantial growth in semi power devices
	$ Mio
		EV Power Devices Content
	14000
	12000
	10000
	8000
	6000
	4000
Source. McKinsey	2000
0
Electric car infrastructure investment increasing
2018	2020	2025		2030
				Source: Infineon

Autonomous driving will require development of more powerful processors as well as a multitude of advanced sensors

Source: Electrical Vehicle Outlook 2020 Bloomberg

August 2020

31

Hybrid Die Bonding: Next Generation Bonding Technology

Higher accuracy, more dense contact technology

WIRE BOND	FLIP CHIP	FAN OUT and WLCSP	TCB BONDING
1975	1995		2012
	2010
100-55 µm sides only	Pitch	150-80 µm	Pitch 80-25 µm

Source:Amkor	Source:Amkor	Source: Infineon	Source:Micron
Epoxy Die Bond	Create Bump on Die	Create Fan Out Wafer	Create Micro Pillar
Flip Chip	and overmolding dies	TCB Bond
Wire Bond
Reflow	Create RDL Layer direct	Underfill
Mold
Underfill	Bumps	Mold
	Mold	No use of substrate
August 2020

HYBRID BONDING

2018 NEW DtW

Pitch < 20µm

Source:Xperi

Create Cu Bond Pad

Hybrid Bond

Anneal

Mold

32

Hybrid Die Bonding: Significant Total Market Potential Besi Has Leading Position

Hybrid Bonding / Bonding Equipment Market Die to Wafer / Die to Die

Estimated 700-1,400 systems by 2030

1600	Cumulative
1400	Total: € 2.0B
1200
1000

800

600	Cumulative
Total: € 1.0B
400

200

0

2020 2022 2024 2026 2028 2030 -200

1 2 3 4

Pre-maturity First entry Confirmation Mass volume/ efficiency

Key Advantages Hybrid Bonding

• Very high density contacts possible > 1 Mio/Sq Mm with no solder process (no solder bidging)
• Very high contact density permits very high bandwith
• No distance between stacked dies gives faster response times, better heat transfer and allows for more compact design
• Room temperature bonding process reduces stresses and warpage
• Attractive for high end logic as well as memory for high stacks

Bonding Equipment Requirements

• Very high precision (< 200 Nm) for very dense contacts
• High throughput (< 2000 Dies/Hr) for low Cost of Ownership
• Extremely low particle count

Source: Besi estimates

August 2020

33

MicroLED: Another Emerging Growth Opportunity

Watches and Phones, Automotive IT

VR and AR Applications

Larger Size TV and TV+

Mass Transfer Of Individual MicroLEDs

• Very precise placement over wide area
• First system delivered and accepted
• Interest from additional potential customers

Monolithic Based MicroLEDs Solutions

 Utilizing Besi's next generation TCB or Hybrid Bonding System

 Potential application: AR or VR glasses

Requires Substantial Productivity Improvements Prior To Mass Commercialization

August 2020

34

III. STRATEGY

August 2020

35

Summary Strategy

Maintain best in

class

technology leadership

Reward	Increase
market
shareholders
presence in
via capital
addressable
allocation policy
markets

Strategic

Objectives

Acquire	Enhance
companies with
scalability.
complementary
Reduce
technologies
structural costs
and products
	Balance
	business
	objectives with
	social/ecological
	responsibilities

August 2020

36

Current Technology Roadmap

•	IDMs investing in
Customers	next generation
	devices

5G Applications

Artificial Intelligence

Cloud Infrastructure

Advanced Logic and

• Increasing R&DMemory Apps activities

Besi

• Highly focused per customer roadmaps

August 2020

2020 Development Activities

• Shipped first nano-accurate hybrid die bonding system with excellent initial results
• Ongoing development of MicroLED applications
• Next generation TCB system nearing completion
• Next-generationsoft solder and plating systems for automotive and power applications

37

Revenue Initiatives

Customer

Service/Support

Research &

Development

• Expand partnership with next-gen leaders to gain share
• Exploit opportunities for hybrid bonding, micro LED, 5G features, memory/TCB, solar plating
• Increase mainstream penetration with high quality mid range systems
• Expand presence and share of wallet in China
• Sustain service/operational excellence to further installed base growth
• Grow spares/service business
• Better organize R&D group to support revenue objectives

August 2020

38

Cost Initiatives: € 10 Million Target Reduction

Supply Chain

Product Design

Overhead

• Increased production/supply chain flexibility: MY, CHN, SGP
• Vendor consolidation and volume discounts
• Cost reduction with each new generation
• • Reduce number of platforms
  • Increase standardization
  • Reduce cycle times
• Cost down engineering
• Continue West to East transfer. Target 80% Asia
• Further reduce European facilities/overhead NL and CH
• Reduce overhead via WAHE
• Gain efficiency from SGP spares consolidation and web order system

August 2020

39

Asian Production Transfer Has Reduced Break Even Revenue Levels and Improved Cash Generation

Asian Production Has Significantly	Leading to Lower Fixed European	And Reduced Break Even
+ NA Headcount	Revenue Levels
Expanded

	Shipments		2,000	Headcount		€ millions
		829				300	270
		1,600	1,543	1,534		(18.5%)
800		98%			250
						220
			1,200	802		200
	396	655			1,081
400			800			150
	43%			(38.9%)
	396		400	741		100
		174			453
					50
0	-		0
	2010	2019		2011	2019
	China	Other Asian				0
		Europe/NA Fixed HC	Asia Fixed HC		2011	2019
	% Direct

Improved Cash Generation

€ millions

150

120

34%

100

50 49

15%

0

2011 2019

Cash Flow Ops

CF from Ops/ Revenue

August 2020

40

Flexible Production Model Has Generated Consistent Gross

Margins in Market Cycles

						Revenue	Gross Margin
	180												100%
	160	155	161			Downturn				COVID-19
												90%
	140										124
				117								80%
	120
€ millions
						93					103	70%	Margin %
100				93		90	92	91
			81	62.0%
80									59.0%
		58.0%
								56.7%		60%	Gross
	56.5%	56.5%	56.4%	55.9%	56.0%		56.3%
			55.1%
	60
													50%
	40
	20												40%
	0	Q1-18	Q2-18	Q3-18	Q4-18	Q1-19	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20	Q3-20*	30%
					* Midpoint of guidance: Revenue -10 to -25% vs. Q2-20, Gross Margin 58-60%.

August 2020

41

Flexible Asian Workforce Has Significantly Enhanced Scalability

Fixed Headcount

	2,000	1,724	1,692
	1,800		1,534
	1,600
Headcount	1,400
1,200		71%		73%		70%
	1,000
	800
	600

400

200 29% 27% 30%

	0
					2017			2018		2019
						Europe/NA Fixed HC			Asia Fixed HC
	Total Headcount
	2,500
					2,040
	2,000
								1,759
			316
										1,596
							67
Headcount
1,500									62
	1,000				1,222			1,230		1,081
	500
					502			462		453
	0
				2017			2018		2019
					Europe/NA Fixed HC				Asia Fixed HC

1,5291,522

70%70%

30%30%

Q1-20Q2-20

Asia %Europe/NA %

1,6211,691

92169

1,0711,067

458455

Q1-20Q2-20

Temporary HC		Temp % of Total

100%

90%

80%

70%

60%

50%

40%

30%

20%

20%
18%
16%
14%	Total
12%
of
10%
%
8%	Temp
6%
4%

2%

0%

• Headcount adjusted in 2018/2019 downturn:
• • 25.3% reduction from Q1-18 peak to Q4-19
  • • Asian HC rationalized post large 2015-2018 ramp
    • Both fixed and temporary workers
• European and NA fixed HC has declined as per ongoing strategic initiatives:
• • -37.3%since 2011
  • -16.0%vs. 2015
  • Focus on SG&A currently
• Increased Labor Efficiencies in H1-20
• • Fixed HC remains flat/down despite revenue growth
  • Temporary help added in Q2-20 to support increased orders and European development

August 2020

42

And Helped Increase Through Cycle Margin Variance vs. Peers

Gross Margin

								Variance
	2016	2017	2018	2019		YTD	2016/
								2020
Besi	51.0%	57.1%	56.8%	55.8%	59.7%		+8.7%
ASMPT	43.4%	47.9%	45.9%	41.1%		42.2%		-1.2%
(Backend)
K&S*	44.8%	47.2%	46.1%	47.1%		46.0%		+1.2%

Operating Margin

								Variance
	2016	2017	2018	2019		YTD	2016/
								2020
Besi	20.0%	35.3%	32.9%	25.8%	31.2%		+11.2%
ASMPT	20.6%	25.1%	21.7%	6.8%		11.4%		-9.2%
(Backend)
K&S*	6.2%	14.7%	6.3%	1.4%		7.3%		+1.1%

* On fiscal year basis except for LTM and YTD, which are on a calendar year basis.

Return on Average Equity

50.0%

40.0%
30.0%	Besi

20.0%

10.0%
				ASMPT
							K&S*
0.0%
2016	2017	2018	2019	LTM
		Besi	19.3%	44.5%	33.8%	24.3%	29.9%
		ASMPT	16.9%	27.4%	18.8%	5.2%	7.2%
		K&S*	6.2%	14.7%	6.3%	1.4%	6.0%

August 2020

43

Besi Strategic CSR Objectives

Responsible tax practices in all jurisdictions

Reduce

packaging,

waste,

transportation

and energy

Develop sustainable supply chain.

Minimize impact of conflict materials

August 2020

Safeguard

safe and

healthy working conditions

CSR

Objectives

Conserve

natural

resources

Maintain best

practices

environmental

and ethical

behavior

Reduce

environmental

impact of

products and

operations

Promote

employee

talent, training and diversity

44

Progress on CSR Agenda

		CSR Highlights 2019
			Reduced packaging, energy, waste, and water
			usage
			Installed solar panels at Malaysia facility
Environmental			Developed system to better assess
Footprint			sustainability in product design
			Received MISA '19 Audience Award for solar
			panel efficiency
			Implemented video system to reduce travel
Human			New management training, governance and e-
Resources			learning programs
			Achieved RBA gold status
Supply Chain
		Increased supply chain compliance with RoHs
			standards
			CSR Objectives 2020

Review sustainability strategy

Improve reporting and KPI monitoring

Upscale sustainability initiatives

Energy Usage

18 17.7

(15.8%)

16

GWh	14.9
14

12

2017 2019

Waste Usage

200

183

(13.1)%

175

tons	159

150

125

2017 2019

Water Usage

35

32.

6

(16.3%)

30

(000s)m³	27.3
	25

20

2017 2019

August 2020

45

IV. FINANCIAL UPDATE AND SUMMARY

August 2020

46

Strong Quarterly and Half Year Growth

			Q2-19/Q2-20
			Revenue	Net Margin
	140
					€ 124.3
	120		+ 34.1%
				100%
		€ 92.7	Gross Margin
	100	56.0%	+ 6.0 points	62.0%
			OPEX		75%
					Net margin %
Revenue (€ millions)	80	€ 26.8 MM	+ 6.7%		€ 28.6 MM
	Headcount
	1,716	- 25		1,691
60		Effective Tax Rate	50%
	13.5%	- 0.6 points	12.9%
40				32.0%
		+ 11.6 points
		20.4%			25%
	20				€ 39.8
		€ 18.9
	0				0%
		Q2-19			Q2-20

			HY1-19/HY1-20
		Revenue	Net Margin
	240
	220				€ 215.6
		+ 23.8%
	200					100%
	180	€ 174.1	Gross Margin
	160	55.9%	+ 3.8 points	59.7%
		OPEX
millions)(€					75%
	€ 57.5 MM	+ 7.0%		€ 61.5 MM	margin%
140
			Headcount
	120	1,716	- 25		1,691
Revenue	100		Effective Tax Rate		50%	Net
		13.2%	+ 0.1 points	+13.3%
	80
	60		+ 8.6 points	24.9%	25%
	40	16.3%
	20	€ 28.4			€ 53.7
	0					0%
		HY1-19			HY1-20

August 2020

47

Solid Liquidity Position to Help Navigate Uncertain Environment

			Cash and Deposits			Net Cash			Q2-20 vs. Q1-20
										• Net cash decreased by € 54.7 million (-36.9%)
	600										to € 93.6 million
		527.8								•	Principally due to:
			507.5	€ 122.4 MM				€ 73.5 MM		• - € 73.5 million dividends paid
	500		475.5		Dividend				Dividend		•	- €	4.3 million capitalized R&D
			2018				2019
									•	- €	3.1 million share repurchases
								427.6
							408.4			• Partial offset: + € 22.9 million cash from
	400				361.7	383.7			366.6			operations
€ millions	304.8									• € 7.0 million 2016 Convertible Notes converted
300										• € 118 million remains outstanding
	247.6
			229.7						Q2-20 vs. Q2-19
	200		199.4
								• + € 7.5 million (+8.7%)
	168.1
							148.3
							130.3		€ 150 million 0.75% Convertible Notes issued in
	100					106.9
				86.1			93.6	July 2020
										•	Bolsters liquidity
	0									• Provides flexibility for strategic initiatives,
										acquisitions and capital allocation
	2016	2017	2018	Q1-19	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20
	August 2020												48

Guidance Q3-20

€ in millions

Q2-20

Revenue

€ 124.3

Gross Margin

62.0%

Operating Expenses

€ 28.6

August 2020

Q3-20				Seasonal Revenue Trends
						Q3E/Q2
-10%						Average decline (-16.3%)
-
-25%						-	17.5%
									-3.2%
					-27.6%
58% - 60%							-6.3%
								-13.5%
				-30.8%
		• Besi quarterly revenue development influenced by
-10%		seasonal trends
	• Orders typically ramp in H1 and decline
-
-15%	-15%	sequentially in each of Q3 and Q4

• Sequential decrease in line with 16.3% average Q2-Q3 decline past 5 years
• • Assumes midpoint of guidance for Q3-20

49

Summary

Assembly market	Long term secular	Disciplined	Market presence
ever more critical	trends drive	strategic focus	has grown via key
in semiconductor	advanced	has created an	IDM customers
value chain	packaging growth	industry leader	and supply chains

Asian production	Tech leadership	Attractive capital
and scalable
expansion has	model have	allocation policy
been a game	resulted in	rewards
changer	benchmark	shareholders
	financial returns

August 2020

50

V. APPENDIX

August 2020

51

IDM/Subcontractor Order Trends

• millions
  800

	700
	600
Orders	500
400
	300

200

100

-

								680.9
								35%
													483.1
																	402.6
	348.3		373.8										32%		348.7
												52%
	49%
	49%													39%
								65%
													68%		61%
			51%												48%
	51%
2015	2016					2017			2018		2019		LTM*
						IDMs			Subcontractors

* Through June 30, 2020

August 2020

52

Baseline Operating Expense Trends

Operating Expenses (€ millions)

																33.0
									Baseline Opex			Other Opex*
	30.7
30
																			28.6
								7.0
		5.4				26.8											3.3
					2.1						25.2
						24.2	1.5
										0.9

20

25.3	24.7		26.0	25.3
23.3	23.7

10

Q1-19

Q2-19

Q3-19

Q4-19

Q1-20

Q2-20

• Other Opex includes both short term and long-term incentive comp, forex effects, restructuring costs, net R&D capitalization/amortization and certain one-time items.

August 2020

53

Net Income Trends

Net Income		Variable Compensation (a)		Net Margin

									60%
	50
									50%
	40							6.1
					37.5
						3.8			40%
millions	29.3					36.5%
30	26.2						32.0%
3.1						30%
€		3.5		22.4	22.3
	25.1%
	24.5%		3.5
	20		3.1
					38.9
		15.9	20.4%			8.4	20%
			21.4%
	26.2		33.7
		6.4				15.2%
	10	22.7	11.7%	18.9	19.2
					10%
							13.9
			9.5
	0								0%
	Q3-18	Q4-18	Q1-19	Q2-19	Q3-19	Q4-19	Q4-20	Q2-20

(a) Includes variable compensation from both cost of goods sold and operating expenses

August 2020

54

Cash Generation Trends

€ millions	% of Revenue
200

180

160

140

120

100

80

60

40

20

0

184.1

168.2

																		120.1	124.5
			98.7								35.0%
													33.7%
86.5																				31.3%
										28.4%
						26.3%
		24.8%

2015	2016	2017	2018	2019	LTM
		Total Cash Flow from Operations		As % of Revenue

August 2020

55

Dividend Trends

Dividend (€)		Dividend Yield
3.00					120%
		Cumulative dividends of € 578.3M since 2011, or € 7.74 per share*

2.50						115%
		2.32
						110%
2.00			107%			105%
				1.67
1.50		100%				100%
1.00		0.87			1.01	95%
93%		91%
	0.60			90%	90%
0.50						85%
0.00	2015	2016	2017	2018	2019	80%

		Dividend	Dividend Payout Ratio*

* Calculated on Basic EPS. Includes value of both cash and stock dividends

August 2020

56

Share Repurchase Activity

€ millions

50																	35.0
												44.6		€ 33.58
45															30.0
40
								35.5						25.0
35													€ 24.31
						€ 23.74										Share
30											€ 21.86
																20.0	per
25			22.4		22.8
20																	15.0	Cost
				€ 12.44													Avg
15																	10.0
		€ 8.93
10
4.0													6.2		5.0
5
0																	0.0
2015	2016		2017		2018	2019		2020*
					Share Repurchases		Average Cost per Share

• 7.3 million treasury shares at June 30, 2020 at average price of € 15.48 per share
• Represents 9.1% of shares outstanding

* Share purchases included up to June 30, 2020

August 2020

57

Shareholder Base Expanded

Market Profile

Symbol/

Index

Market

Cap*

Dividend

Policy

• BESI
• Euronext Midcap AMX
• € 2.8 billion
  ($ 3.3 billion)
• Pay out 40-100% of net income per annum

Avg. Daily Volume & Liquidity

(thousands)	1000						25,000
800						20,000
	600						15,000
Volume	400						10,000
200						5,000
	0						0
	2016	2017	2018	2019	2020
						YTD

Avg Vol * Avg Price (€ thousands)

Share

Ownership

* As of July 27, 2020 ** Besi estimates

	Top 10 Shareholders**	100%				By Geography
	(% of shares outstanding)	90%			Unidentified
					15%		Europe
70%				80%				15%
						ex. NL
		56%	21%
60%			70%
	48%								23%
50%			60%				27%		NL
41%				20%
40%				50%					18%
30%				40%				16%		UK
20%				30%		22%
10%				20%
					31%	35%		US
0%				10%		20%
2017	2018	2019
	0%
				2017	2018	2019

August 2020

58