INVESTOR PRESENTATION

INVESTOR PRESENTATION
1 / 52 PagesView full catalog

INVESTOR PRESENTATION

Product catalog summary
Safe Harbor Statement: The presentation contains forward-looking statements about management's expectations and plans, highlighting risks such as demand volatility, product development challenges, and geopolitical factors that could impact actual results.
Agenda: The presentation includes sections on the company overview, market analysis, strategy, financial review, and an appendix.
Company Overview: Besi is a prominent supplier of assembly equipment with a strong global presence, particularly in Europe and Asia. The company reported revenues of €525.3 million and a net income of €136.3 million over the past year, with significant cash reserves and a history of shareholder returns through dividends and share buybacks.
Market Overview: The semiconductor assembly equipment market is expected to fluctuate, with a decline forecasted for 2019 but growth anticipated in 2020. Besi's market includes die attach and packaging equipment, essential for advanced packaging applications.
Strategy: Besi is focused on advanced packaging technologies to support digital applications like AI, 5G, and IoT. The company aims to improve production efficiency and maintain strong customer relationships, especially in the expanding Chinese market.
Financial Review: Besi has shown strong financial performance with high gross and net margins. The company has a solid capital allocation strategy that supports growth and shareholder returns, with increased revenue and market share in advanced packaging segments.
Product Portfolio: Besi provides a wide range of products, including die bonding, flip chip, and plating equipment, designed to meet the needs of next-generation semiconductor applications.
Market Trends: The demand for advanced packaging is driven by the need for miniaturization, complexity, and enhanced performance in semiconductor devices. Besi is well-positioned to leverage these trends with its advanced technology offerings.
See more

Catalog excerpts

INVESTOR PRESENTATION-1

INVESTOR PRESENTATION February 2019

 Open the catalog to page 1
INVESTOR PRESENTATION-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”,...

 Open the catalog to page 2
INVESTOR PRESENTATION-3

IV. Financial Review and Summary

 Open the catalog to page 3
INVESTOR PRESENTATION-5

Besi Overview Corporate Profile Financial Highlights Investment Considerations • Leading assembly equipment supplier with #1 and #2 positions in key markets. 36% addressable market share • Broad portfolio: die attach, packaging and plating • Strategic positioning in substrate and wafer level packaging • Global operations in 6 countries; 1,759 employees. HQ in the Netherlands • LTM revenue and net income of € 525.3 and € 136.3 million • Cash/deposits at Q4-18: € 475.5 million • Net cash/deposits at Q4-18: € 199.4 million • € 608.4 million of dividends and share repurchases since 2011* • Applications...

 Open the catalog to page 5
INVESTOR PRESENTATION-6

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 two key Asian production hubs (MY and CN), Singapore development/support center and Asian supply chain • Scalability enhanced. Break even revenue levels reduced Gross Margin (%) Financial Metrics • Achieved...

 Open the catalog to page 6
INVESTOR PRESENTATION-7

Best in Class Product Portfolio Die Attach • 2009 SSI • 2100 xP plus / hS plus / PPP plus • 2100 DS New • 2100 sD • 2100 sD advanced New • 2100 SC Flip Chip • 8800 CHAMEO advanced New • 8800 TCB advanced New • 8800 FC Quantum advanced New • 2100 FC hS New Multi Module Attach • 2200 evo • 2200 evo plus • 2200 evo hS New • Leadframe • MEMS • Sensors • Wafer • Panel • Singulation • Sorting In Development • Next generation Die Attach Plating • Leadframe • Film & Foil • Battery • Solar

 Open the catalog to page 7
INVESTOR PRESENTATION-8

Semiconductor Manufacturing Equipment (2018: $65.9B)* Semiconductor Assembly Process Dicing Die Attach Wire Bond Packaging** Plating * Source: VLSI January 2019 ** Includes Molding, Trim and Form and Singulation Systems Leadframe Assembly Substrate Wire Bond Assembly Substrate Flip Chip Assembly/TCB Wafer Level Packaging Flip Chip Assembly/Fan Out

 Open the catalog to page 8
INVESTOR PRESENTATION-9

Customer Ecosystem TOSHIBA OLUMILEDS QOrVO Renesas SONY -Wicron BOSCH A L • Diversified, blue chip customer base, top 10 = 54% of 2018 revenue • Leading IDMs and subcontractors. 68/32% split in 2018 • Also supply leading fabless companies: Qualcomm, Broadcom, MediaTek via subcontractors • Long term relationships, some exceeding 50 years

 Open the catalog to page 9
INVESTOR PRESENTATION-10

Chandler • • Sales Office • Production Site • Sales, Production and R&D Site m Duiven & Drunen, (The Netherlands) J 1 J Steinhause rland) Steinhausen, Radfeld,(Austria) (Switzerland) • Development activities in Europe • Production in Asia • Sales/service activities in Asia, US and Europe YTD December 31, 2018

 Open the catalog to page 10
INVESTOR PRESENTATION-11

Summary Historical Financials Year Ended December 31, (€ millions, except share data) (a) Adjusted for 2:1 stock split in May 2018 Step function revenue and gross margin development over four business cycles since 2006 • Addressable market share has expanded as well Strong profit and margin development: • Market position and efficiencies drive gross margin to 57% level in past two years • Operating initiatives keep expense growth in check • Sector leading net margins of 26% Net cash continues to expand: • Increased profits, scalable production model help drive net cash to € 199.4 million at year...

 Open the catalog to page 11
INVESTOR PRESENTATION-12

Cumulative: € 608.4 MM of distributions since 2011* 209.5 ■ Dividends ■ Share Repurchases * Assumes proposed dividend payment of € 1.67 per share for approval at April 2019 AGM and share repurchases through February 18, 2019.

 Open the catalog to page 12
INVESTOR PRESENTATION-13

Market Profile Share Ownership 70% 60% 50% 40% 30% 20% 10% 0% Symbol/ Index Avg. Daily Volume (b) & Liquidity Top 10 Shareholders (c) (% of shares outstanding) 60% By Geography 2015 NL 2017 a) As of February 18, 2019; b) Shares adjusted for 2:1 stock split in May 2018; c) Besi estimates

 Open the catalog to page 13
INVESTOR PRESENTATION-15

Assembly Equipment Market Trends Assembly Equipment Market Market Size 2020E Source: VLSI December 2018 Besi Revenue Revenue • VLSI revised 2019 growth rate to -12.4% at start of year • H2-19 order rebound forecast as new product cycle begins. Renewed growth in 2020 February 2019

 Open the catalog to page 15
INVESTOR PRESENTATION-16

Assembly Equipment Market Composition Assembly Equipment Market * (2017: $4.6 billion) Other Assembly (Inspection, Dicing) 31.0% Besi Addressable Market * (2017: $1.8 billion) Lead Trim & Plating Form 1.5% 5.0% Molds 7.2% Die Sorting 4.1% Flip Chip 12.4% * Source: VLSI October 2018 • Roughly half of assembly market represented by die attach and packaging equipment • Die Attach represents Besi’s largest addressable market February 2019

 Open the catalog to page 16
INVESTOR PRESENTATION-17

Digital society Driven by new technologies - 5G - AI - big data - Robotics - Transportation - Environment - Health care Will need continuous new solutions - 1zb = 1,000,000,000 tb - 1zb= 1,000 data centres - 1zb = 180,000,000 homes (energy requirements) Source: IMEC ITF 2018 KB - MB - GB - TB - PB - EB - ZB - YB

 Open the catalog to page 17
*Prices are pre-tax. They exclude delivery charges and customs duties and do not include additional charges for installation or activation options. Prices are indicative only and may vary by country, with changes to the cost of raw materials and exchange rates.