INVESTOR PRESENTATION

November 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.

November 2020

2

Agenda

  1. Company Overview
  1. Market

III. Strategy

IV. Financial Update and Summary

  1. Appendix

November 2020

3

I. COMPANY OVERVIEW

November 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
  • ~75% of systems used for advanced packaging applications
  • Global operations in 6 countries; 1,665 employees. HQ in the Netherlands
  • LTM revenue and net income of € 121.4 million and € 106.6 million
  • Cash/deposits at Q3-20: € 564.5 million
  • Net cash/deposits at Q3-20: € 158.7 million
  • € 736.1 million of dividends and share repurchases since 2011*
  • Advanced packaging ever more critical part of semi value chain
  • Leading market position in advanced packaging. Peer leading financial metrics
  • Key long term drivers: Move to digital society, Internet of Everything, AI, Big Data, Cloud computing, 5G, 3D imaging
  • China growth and increased market share also benefit revenue development

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

November 2020

5

Company History

400

(€ millions)

300

Revenue

200

100

€ 85.5

25.9%

0

2003

November 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

70.0%

€ 416.3

65.0%

60.0%

59.2%

55.0%

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

LTM

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

November 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

November 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/Fan Out/Hybrid

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

November 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 September 30, 2020

• Development activities in Europe

Europe/NA

Asia

Revenue (MMs)

€ 82.6

19.8%

€ 333.7

80.2%

• Production in Asia

• Sales/service activities in Asia, US and Europe

Headcount

516

31.0%

1,149

69.0%

November 2020

10

Summary Financials

Year Ended December 31,

(€ millions, ex share data)

2017

2018

2019

YTD-19YTD-20

Revenue

592.8

525.3

356.2

263.8

323.9

% seq. change

58%

-11%

-32%

+23%

Gross margin

57.1%

56.8%

55.8%

55.7%

60.1%

EBITDA

222.8

187.7

111.7

79.8

123.5

Pretax income

199.2

154.9

78.1

54.7

100.7

Net income

173.2

136.3

81.3

47.6

87.6

Net margin

29.2%

25.9%

22.8%

18.0%

27.1%

EPS (diluted) (a)

2.17

1.68

1.06

0.65

1.21

EPS (basic) (a)

2.32

1.83

1.12

0.63

1.12

Dividend per share (a)

2.32

1.67

1.01

Net cash

247.6

199.4

130.3

106.9

158.7

(a) Adjusted for 2:1 stock split in May 2018

YTD to September 30, 2020.

November 2020

Long term, step function growth in cyclical business

  • Last revenue peak of € 592.8 million reached in 2017
  • Increased profitability per cycle
  • Quarterly gross margins of 55%+ achieved in last 2018-2019 downturn

YTD-20 business prospects have surprised to the upside

  • YTD-20revenue and orders +22.8% and +26.8% vs. YTD-19
  • Renewed mobile investment for new features and 5G rollout
  • Increased Chinese investment
  • Continued logic/AI/cloud expansion
  • COVID-19and US/China issues have limited assembly market recovery

Strong margins and profit potential

  • Peer leading financial metrics through market cycles
  • >60% gross margin achieved in YTD-20 due to increased revenue, favorable product mix and increased labor efficiencies
  • Tight overhead management creates significant operating leverage
  • YTD-20net margin rose to 27.1% vs. 18.0% in YTD-19
  • Net margins approaching 2017 cyclical peak at lower revenue levels

Improved cash generation supports shareholder friendly capital allocation policy

11

Increased Profitability vs. Last Industry Cycle

€ millions

Trough

2015

2019

€ millions

Post Trough

2016

2020E*

350

300

349.2

+2.0%356.2

25.8%

91.9

450

140

120

400

100

Income

350

80

200

180

+13.0%

424.2

160

33.9%

140

375.4

143.8

Income

120

+91.2%

Revenue

250

200

+58.7%

16.6%

57.9

Revenue

Operating Income

60

Operating

Revenue

300

40

250

20

0

200

100

Operating

20.0%

80

75.2

60

40

20

0

Revenue

Operating Income

*Assumes midpoint of guidance for Q4-20

November 2020

12

Besi's Long Term Revenue Trends Suggest Renewed Cycle With

Increased Profitability

€ millions

Revenue

Gross Margin

Gross Margin

700

70%

600

59.8%

60%

56.8%

593

55.8%

500

51.1%

50%

-32%

+19%

400

424

40%

424

39.5%

379

34.1%

356

300

30%

302

351

4 year

averages

20%

200

164

191

100

10%

0

0%

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020*

* Assumes midpoint of guidance for Q4-20

November 2020

13

Business Model Objectives

Revenue

Addressable

Market Share

Gross Margin

Net Margin

Headcount

Split

November 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

83.0

67.4

23.5

9.5

22.0

122.4

50

65.3

73.5

45.4

0

2016

2017

2018

2019

2020*

11%

33%

26%

17%

27%

67%

74%

83%

73%

89%

* Share purchases included as of September 30, 2020

November 2020

  • Mix skewed to dividends
    • € 480.6 million paid out over past five years
    • Dividend pay out ratio 95%+ (5 year avg.)
  • Stock repurchases increasing as % of mix
    • € 76.5 million bought under current € 125 million program
    • 5.9 million shares in Treasury (7.5% shares outstanding)
    • Will expand quarterly buyback to € 10 million/quarter from ~ € 3 million currently

15

II. MARKET

November 2020

16

What Drives Besi's Business?

Timing of customer

IDM customer and

Macro GDP trends

roadmaps and

supply chain

capital spending

choice

programs

Tech capabilities

Competitive cycle

for 24/7 production

times and

environment

scalability

November 2020

17

VLSI Forecasts Renewed Assembly Equipment Growth Cycle

Assembly Equipment Market

5.0

Market Size

YoY Growth Rate

50%

4.5

4.3

4.0

4.4

4.0

3.4

30%

billions

3.1

3.5

3.0

3.1

3.0

10%

25.8%

16.4%

10.2%

10.6%

12.5%

US$

4.5%

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 September 3, 2020

Besi Revenue

Revenue

YoY Growth Rate

600

592.8

525.3

70%

57.9%

millions

424.2

50%

400

349.2

375.4

356.2

30%

19.1%

10%

7.5%

€

200

-7.8%

-11.4%

-10%

-32.2%

-30%

0

-50%

2015

2016

2017

2018

2019

2020*

* Assumes midpoint of guidance for Q4-20

November 2020

  • 4.5% market growth estimated for 2020
  • 48% growth forecast between 2019-2023E
    • 10.3% CAGR
  • Strong secular market fundamentals

18

Chip Making Climate Index Has Risen Significantly Since 2019 Trough. Upward Trajectory Interrupted by COVID-19 Pandemic

Source: VLSI October 13, 2020

November 2020

19

Assembly Equipment Market Composition

Assembly Equipment Market *

Besi Addressable Market *

(2019: $3.0 billion)

(2019: $1.2 billion)

Lead Trim & Form

Plating

4.8%

1.7%

Other

Wire Bonding

Assembly

18.7%

(Inspection,

Dicing)

Molds &

33.4%

Presses

25.1%

Die Bonding

49.9%

Die Attach

64%

Die Attach

Singulation

Packaging

Plating

34%

0.7%

29.3%

4.1%

Die Sorting

Plating

Packaging

4.6%

2%

17.9%

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

November 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%

  • Besi addressable market share relatively stable between 2018 and 2019

Source: VLSI May 2020 and Besi estimates

November 2020

21

Move to Digital Society Helps Drive Advanced Packaging Growth

November 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

November 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

•

Stacked structures

Tsvs, Microbumps and Thin Dies

3D

•

WLP/FOWLP

packages

to complex Chiplet based structures and more dense contacts with Hybrid Bonding

November 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

• 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

15

19%

20%

13%

• Leading growth segment of assembly

equipment market

5

10%

  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

• Flip chip and WLP are leading AP assembly

processes next five years

November 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

November 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

November 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

November 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

November 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

November 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

November 2020

31

Hybrid Die Bonding: Next Generation Bonding Technology

Hybrid Bonding (2018)

Wire Bond (1975)

Flip Chip (1995)

TCB Bonding (2012)

HD Fan Out (2015)

Heat compression force

Contact:

Contact:

Contact:

Via RDL or

Contact: Cu to

Density: 5-10/mm²Contact: wire

Density: 25-400/mm² Solder ball/Cu pillar

Density: 156-625/mm²Cu pillar

Density: 500+ /mm²

Cu pillar

Density: 10K-1MM/mm² Cu (no solder)

Spacing¹:

100-50µm

200-100µm

80-40µm

100-30µm

20-1µm

Accuracy²:

20-10µm

10-5µm

5-1µm

5-1µm

0.5-0.1µm

Substrate:

Organic/leadframe

Organic/leadframe

Organic /Silicon

None

None

Throughput:

High

High

Low

Medium

Medium

Cost:

Low

Medium

High

Medium +

High

Epoxy die bond

Create solder bump/Cu pillar on die

Create Cu pillars on die

Create Cu pillars on die

Create Cu bond pads

Key

Wire bond

Flip chip placement

TCB: place, melt solder & bond

Place dies on fan out carrier

Polish to atomic flat surface

Processes³:

Mold

Reflow oven for melting solder

No reflow oven

Wafer mold

Hybrid bond (room temp.)

Underfill/mold

Underfill/mold

Create RDL layers

Mold

¹Contact Spacing. ²Die Placement Accuracy. ³Shading denotes Besi process.

Densities typical for 8x8 mm die size

November 2020

32

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

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

Estimated installed base of 700-1,400 systems by 2030

1600

Cumulative

1400Installed base: € 2.0B

1200

1000

800

Cumulative

600Installed base: € 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 areas of stress 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

November 2020

33

Joint Development Agreement With Applied Materials

Industry Shifting Towards Smaller, Integrated, Heterogeneous Chip Designs

For Leading-edge 5G, AI, HPC, Data Storage, And Auto Applications

Industry's First Complete,

One-Stop Solution

Create Best Hybrid Bonding

Process Suite

Front & Back End Process Expertise

Harness Leadership Positions in

Assembly Equipment Process Expertise

•

Etch

Front/Back End

•

Die Placement

•

Planarization

•

Deposition

Process Synergies

•

Interconnect

•

Wafer cleaning

•

Advanced Packaging

•

Metrology

Overlapping Customer Opportunities

Leader in Hybrid Bonding Assembly

• Inspection and Particle Defect Control

• Mfg. Platform Design, Integration &

Dedicated Center of Excellence

Technology

Validation

November 2020

34

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

November 2020

35

III. STRATEGY

November 2020

36

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

November 2020

37

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

November 2020

2020 Development Activities

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

38

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

November 2020

39

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

November 2020

40

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

November 2020

41

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

108

€ millions

Margin %

100

100

93

93

92

91

70%

90

81

62.0%

80

60.8%

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

Q4-20*

30%

* Midpoint of guidance: Revenue flat to down 15% vs. Q3-20, Gross Margin 58-60%.

November 2020

42

Flexible Asian Workforce Has Significantly Enhanced Scalability

Fixed Headcount

2,000

100%

1,724

1,692

1,800

90%

1,534

1,529

1,522

1,513

1,600

80%

1,400

Headcount

71%

73%

70%

70%

70%

70%

1,200

70%

1,000

60%

800

50%

600

40%

400

200 29% 27% 30% 30% 30% 30% 30%

0

20%

2017

2018

2019

Q1-20

Q2-20

Q3-20

Europe/NA Fixed HC

Asia Fixed HC

Asia %

Europe/NA %

Total Headcount

2,500

20%

18%

2,040

2,000

16%

1,759

316

1,691

1,665

1,621

1,596

Totalof%Temp

14%

Headcount

67

169

152

92

6%

62

1,500

12%

1,222

10%

1,000

1,230

1,081

1,071

1,067

1,054

8%

500

4%

502

462

453

458

455

459

2%

0

0%

2017

2018

2019

Q1-20

Q2-20

Q3-20

Europe/NA Fixed HC

Asia Fixed HC

Temporary HC

Temp % of Total

  • 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
  • Has Led to Increased Labor Efficiencies in YTD-20:
    • Fixed HC remains flat/down despite revenue growth
    • Temporary help added to support increased orders and European development activities
  • European and NA fixed HC has declined over past ten years as per ongoing strategic initiatives:
    • -38.2%since 2011
    • -15.0%vs. 2015

November 2020

43

Structural, Through Cycle Outperformance Achieved vs. Peers

Gross Margin

2016

2017

2018

2019

YTD-20

2016/

2020

Besi

51.0%

57.1%

56.8%

55.8%

60.0%

+9.0%

ASM PT

43.4%

47.9%

45.9%

41.1%

41.4%

-2.0%

(Back end)

K&S*

44.8%

47.2%

46.1%

47.1%

46.0%

+1.2%

Operating Margin

2016 2017 2018 2019 YTD-20 2016/

2020

Besi

20.0%

35.3%

32.9%

25.8%

33.7%

+11.2%

ASM PT

20.6% 25.1% 21.7% 6.8% 10.7%-9.9%

(Back end)

K&S*

6.2%

14.7%

6.3%

1.4%

7.3%

+1.1%

Return on Average Equity*

45.0

Besi

40.0

35.0

(%)

30.0

25.0

ROE

20.0

15.0

10.0

ASM PT

5.0

K&S*

0.0

2015

2016

2017

2018

2019

TTM

Besi

14.8

19.3

44.5

33.8

24.3

40.5

ASM PT

11.7

16.9

27.4

18.8

5.2

7.1

K&S*

6.8

6.2

14.7

6.3

1.4

5.6

Besi's margins and ROE have exceeded direct peers through cycles:

  • Investment in business model has yielded high returns
  • Structurally higher gross and operating margins over past 5 years
  • Gap vs. peers growing, particularly during last downcycle
  • Besi capital allocation strategy has also helped drive ROE outperformance

Year to date through September 30, 2020. K&S through June 30, 2020

Besi YTD through September 30, 2020. ASMPT & K&S through June 30, 2020

* K&S on fiscal year basis except for YTD period.

* K&S on fiscal year basis except for TTM period.

November 2020

44

Besi Strategic CSR Objectives

Safeguard

safe and

healthy working conditions

Responsible tax practices in all jurisdictions

Reduce

CSR

packaging,

waste,

Objectives

transportation

and energy

Develop

sustainable

supply chain.

Minimize

impact of

conflict

materials

Conserve

natural

resources

November 2020

Maintain best

practices

environmental

and ethical

behavior

Reduce

environmental

impact of

products and

operations

Promote

employee

talent, training and diversity

45

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

November 2020

46

IV. FINANCIAL UPDATE AND SUMMARY

November 2020

47

Strong Quarterly and Year to Date Growth

Q3-19/Q3-20

120

Revenue

Net Margin

+ 20.7%

€ 108.3

100

100%

€ 89.7

Gross Margin

80

55.1%

+ 5.7 points

60.8%

OPEX

75%

%

millions)(€

€ 24.2 MM

- 1.2%

€ 23.9 MM

marginNet

Headcount

60

1,634

+ 31

1,665

Effective Tax Rate

50%

Revenue

12.7%

- 0.3 points

12.4%

40

+ 9.9 points

31.3%

25%

21.4%

20

€ 34.0

€ 19.2

0

0%

Q3-19Q3-20

Revenue (€ millions)

360

320

280

240

200

160

120

80

40

0

YTD-19/YTD-20

Revenue

Net Margin

+ 22.8%

€ 323.9

€ 263.8

Gross Margin

55.7%

+ 4.4 points

60.1%

OPEX

€ 81.7 MM

+ 4.5%

€ 85.4 MM

Headcount

1,634

+ 31

1,665

Effective Tax Rate

13.0%

-

+13.0%

+ 9.1 points

27.1%

18.0%

€ 87.6

€ 47.6

YTD-19YTD-20

100%

75%

50%

25%

0%

Net margin %

November 2020

48

Liquidity Expanded

Cash and Deposits

Net Cash

600

564.5

527.8

€ 73.5 MM

500

475.5

Dividend

2019

408.4

427.6

400

366.6

€ millions

304.8

300

247.6

200

199.4

168.1

148.3

158.7

130.3

100

93.6

0

2016

2017

2018

2019

Q1-20

Q2-20

Q3-20

Q3-20 vs. Q2-20

  • Cash and deposits increased € 197.9 million:
    • Includes net proceeds from 2027 Convertible Note issuance in August
    • As well as significant free cash flow from operations
  • Net cash increased by € 65.1 million (+69.6%) to reach € 158.7 million
    • + € 60.9 million cash flow from operations
    • + € 16.5 million impact from Convertible issuance
    • - € 4.3 million capitalized R&D
    • - € 3.3 million share repurchases

Q3-20 vs. Q3-19

  • + € 51.8 million (+48.5%)

November 2020

49

Guidance Q4 and Full Year 2020

€ in millions

Q3-20

Q4-20

2019

0%

Revenue€ 108.3-€ 356.2

-15%

Gross Margin

60.8%

58% - 60%

55.8%

0%

Operating Expenses

€ 23.9

-

€ 106.9

+5%

-15%

November 2020

2020E

+17%

-

+21%

~60%

+2%

-

+3%

50

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

November 2020

51

V. APPENDIX

November 2020

52

Return to More Typical IDM/Subcontractor Mix Post Large IDM Investment in Last Cycle

  • millions
    800

Orders

700

600

500

400

300

200

100

-

IDMs

Subcontractors

680.9

35%

483.1

415.0

373.8

32%

348.3

348.7

49%

49%

39%

53%

65%

68%

61%

47%

51%

51%

2015

2016

2017

2018

2019

TTM*

* Trailing twelve months (TTM) through September 30, 2020

November 2020

53

Overhead Remains Under Control

Baseline Opex

Other Opex*

Baseline Opex % of Revenue

60.0%

33.0

30.7

50.0%

30.0

28.6

€ millions)

26.8

9.1

7.4

25.2

40.0%

5.9

3.3

24.2

23.9

(

Expenses

1.8

3.0

2.8

30.0%

28.7%

20.0

25.3%

25.0%

26.1%

24.0%

Operating

18.2%

19.5%

20.0%

23.3

23.5

22.4

22.2

23.9

22.6

21.1

10.0%

10.0

0.0%

Q1-19

Q2-19

Q3-19

Q4-19

Q1-20

Q2-20

Q3-20

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

November 2020

54

Net Income Trends

Net Income

Variable Compensation (a)

Net Margin

60%

50

45.0

50%

40

6.1

38.2

37.5

3.8

4.2

40%

millions

36.5%

30

26.2

32.0%

31.3%

30%

€

3.5

22.4

22.3

22.3

20

24.5%

3.5

3.1

38.9

15.9

20.4%

8.4

20%

21.4%

33.7

34.0

6.4

15.2%

10

22.7

11.7%

18.9

19.2

10%

13.9

9.5

0

0%

Q4-18

Q1-19

Q2-19

Q3-19

Q4-19

Q1-20

Q2-20

Q3-20

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

November 2020

55

Strong Cash Flow Generation Helps Fund Capital Allocation Program

  • millions
    200

Total Cash Flow from Operations As % of Revenue% of Revenue

180

160

140

120

100

80

60

40

20

0

86.5

24.8%

184.1

168.2

146.6

120.1

98.7

35.0%

35.2%

33.7%

28.4%

26.3%

2015

2016

2017

2018

2019

TTM*

* Trailing twelve months (TTM) as of September 30, 2020

November 2020

56

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

80%

2015

2016

2017

2018

2019

Dividend

Dividend Payout Ratio*

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

November 2020

57

Share Repurchase Activity

€ millions

50

40.0

44.6

45

€ 35.15

35.0

40

35.5

30.0

35

25.0

Share

€ 21.86

30

€ 23.74

€ 24.31

25

22.4

22.8

20.0

per

20

15.0

Cost

15

€ 12.44

10.0

Avg

9.5

10

€ 8.93

5.0

4.0

5

0

0.0

2015

2016

2017

2018

2019

2020*

Share Repurchases

Average Cost per Share

  • 7.4 million treasury shares at September 30, 2020 at average price of € 15.75 per share
  • Represents 9.2% of shares outstanding

* Share purchases included up to September 30, 2020

November 2020

58

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 October 22, 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

November 2020

59

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Disclaimer

BE Semiconductor Industries NV published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2020 13:14:00 UTC