investor presentation q4-2015 - march 2016.pdf
TRANSCRIPT
INVESTOR PRESENTATION
March 2016
March 2016
Safe Harbor Statement
2
This presentation contains statements about management's future expectations, plans and prospects of ourbusiness that constitute forward-looking statements, which are found in various places throughout the pressrelease, including, but not limited to, statements relating to expectations of orders, net sales, product shipments,backlog, expenses, timing of purchases of assembly equipment by customers, gross margins, operating resultsand capital expenditures. The use of words such as “anticipate”, “estimate”, “expect”, “can”, “intend”, “believes”,“may”, “plan”, “predict”, “project”, “forecast”, “will”, “would”, and similar expressions are intended to identifyforward looking statements, although not all forward looking statements contain these identifying words. Thefinancial guidance set forth under the heading “Outlook” contains such forward looking statements. While theseforward looking statements represent our judgments and expectations concerning the development of ourbusiness, a number of risks, uncertainties and other important factors could cause actual developments andresults to differ materially from those contained in forward looking statements, including any inability to maintaincontinued demand for our products; failure of anticipated orders to materialize or postponement or cancellation oforders, generally without charges; the volatility in the demand for semiconductors and our products and services;failure to adequately decrease costs and expenses as revenues decline; loss of significantcustomers; lengthening of the sales cycle; acts of terrorism and violence; inability to forecast demand andinventory levels for our products; the integrity of product pricing and protection of our intellectual property inforeign jurisdictions; risks, such as changes in trade regulations, currency fluctuations, political instability and war,associated with substantial foreign customers, suppliers and foreign manufacturing operations; potential instabilityin foreign capital markets; the risk of failure to successfully manage our diverse operations; those additional riskfactors set forth in Besi's annual report for the year ended December 31, 2014; any inability to attract and retainskilled personnel; and other key factors that could adversely affect our businesses and financial performancecontained in our filings and reports, including our statutory consolidated statements. We expressly disclaimany obligation to update or alter our forward-looking statements whether as a result of new information, futureevents or otherwise.
March 2016
Agenda
I. Company Overview
II. Market
III. Strategy
IV. Financial Review
V. Outlook & Summary
3
March 2016
I. COMPANY OVERVIEW
March 2016
Besi Overview
• Leading assembly equipment supplier with #1 and #2 positions in key products. 28.4% addressable market share
• Broad portfolio: die attach, packaging and plating• Strategic positioning in substrate and wafer level packaging • Global mfg. operations in 6 countries; 1,539 employees
worldwide. HQ in Duiven, the Netherlands
Corporate Profile
• 2015 revenue and net income of € 349.2 and € 49.0 million• Cash at 12/31/15: € 157.8 million• Total debt at 12/31/15: € 21.4 million• € 118 million of dividends and share repurchases since 2011
Financial Highlights
• Growth of <20 nano advanced packaging, smart phones, wearable devices, auto electronics, IoT, wire bond/flip chip conversion and market share gains offer revenue upside
• Significant unrealized earnings potential from optimization of Asian production, supply chain efficiencies and development of common parts/platforms
Investment Considerations
5
March 2016
Company History
6
€ 85.5
€ 349.2
25.9%
48.8%
20%
25%
30%
35%
40%
45%
50%
55%
60%
0
100
200
300
400
2003 2015
Gro
ss M
argi
n (%
)
Rev
enue
(€
mill
ions
)
Revenue Gross Margin
•2000 2002 2005 2009
Die Attach Acquisitions
• European production transferred to Asia• Intellectual property remains in Europe• European headcount and facilities reduced• Break even revenue levels decreased
Restructuring
• Die attach, packaging and plating production transferred to Malaysia
• Chinese facility produces die attach systems for local market, tooling and molds
• Singapore die attach engineering expanded in 2015• 75% of supply chain moved to Asian vendors
Asian Production Transfer
March 2016
Best in Class Product Portfolio
7
Multi Module Attach• 2200 evo• 2200 evo plus
• 2200 evo hS New
Die Sorting• DS9000e• WTT• TTR• DLA
New
NewNew
Die Bonding
• 2100 xP plus / hS• 2100 sD plus / PPP plus
• 2009 SSI
New
Flip Chip• 8800 CHAMEO fan-out• 8800 TCB• 8800 FCQ sigma
• 2100 FCNew
New
Plating• Leadframe• Solar
•Next generation Die Attach
•Next generation Packaging
•Common modules
AMS-W/LM• Substrate
AMS-i• Leadframe• MEMS• Sensors
FML• Wafer• Panel
New FSL• Sorting
FCL• X• P• P/X
NewNew
New
• 2100 DS• 2100 SC
Die Lid Attach• DLA New
• Film & Foil• Battery
Die Attach
Packaging
Plating In Development
New
New
March 2016
Dicing
Semiconductor Assembly Process
Die Attach Wire Bond Packaging Plating
Leadframe Assembly
SubstrateWire Bond Assembly
SubstrateFlip Chip Assembly
Wafer Level PackagingFlip Chip Assembly
Wire BondDie Bond
Die Bond
FC Die Bond
Molding
Molding
Molding
Trim & Form
Singulation
Singulation
Plating
Ball Grid Array
Ball Grid Array
Die Sort
Die Sort
Die Sort
Die Attach Packaging Ball Attach
Product Positioning
8
Semiconductor Manufacturing Equipment (2014: $40.1B)
Front end: $32.2B (80%) Assembly: $3.9B (10%) Test: $3.9B (10%)
March 2016
Customers OEMs End Products
Customer Ecosystem
• Blue chip customer base, top 10 = 49% of 2015 revenue • Leading IDMs and subcontractors. 60/40% split• Assemble chips for leading fabless companies: Qualcomm, Broadcom, MediaTek• Long term relationships, some exceeding 45 years
IDMs
Subcontractors
9
March 2016
Current Operational Profile
10
as of December 31, 2015
Europe/NA Asia
Revenue (MMs) € 117.3 33.6% € 231.8 66.4%
Headcount 589 38.3% 950 61.7%
• Development activities in Europe • Production in Asia• Sales/service activities in Asia, US and
Europe
Sales Office
Production Site
Sales & Production Site
* R&D Site
Leshan
ChengduShanghai
Korea
Taiwan
PhilippinesMalaysia
Singapore *
Suzhou
Radfeld, (Austria)*Cham,(Switzerland)*
Duiven & Drunen,(The Netherlands)*
Chandler
Shenzhen
March 2016
Year Ended December 31, (€ millions, except share data) 2012 2013 2014 2015
Revenue 273.7 254.9 378.8 349.2
Orders 276.1 251.9 407.6 348.3
Gross margin 40% 40% 44% 49%
EBITDA 32.4 27.9 82.1 73.0
Pretax income 19.5 19.2 71.3 57.1
Net income 15.8 16.1 71.1 49.0
Adjusted net income 18.2 16.9 64.5 46.9
EPS (diluted) 0.42 0.43 1.87 1.27
Net margin 6% 6% 19% 14%
Adjusted net margin 7% 7% 17% 13%
Net cash 79.5 71.0 118.0 136.5
Summary Historical Financials
• 2015 Results:• Solid profit and margins maintained
despite H2 market downturn• Industry leading gross and net margins• Net cash position continues to build
• Operating initiatives have supported gross and net margin development
• Strong cash flow generation:• Solid liquidity base to finance growth • Supports shareholder friendly capital
allocation policy
11
March 2016
Besi Market Information
12
Market Profile
Share Ownership
0
100
200
300
400
2013 2014 2015
Average Daily Volume(Shares 000s)
60%
30%
0%
20%
40%
60%
80%
2011 2015
Top 10 Shareholders(% of shares outstanding)
• BESI• Euronext Midcap AMX
Symbol/ Index
• € 707.0 MM ($771.6 MM)
Market Cap*
• Pay out 40-80% of net income per annum
Dividend Policy
• As of 12/31/15• Source: Besi estimates
NL40%
US30%
Europe ex. NL
30%
By Geography
March 2016
Dividend Trends
13
0.22 0.30 0.33
1.50
1.00 0.73
0.42 0.43
1.87
1.27
4.3%
5.2% 4.0%
8.1%
6.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2011 2012 (b) 2013 2014 2015 (c)
Div
iden
d yi
eld
Div
iden
d (€
)
Dividend EPS (diluted) Total Dividend Yield (a)
1.20
a) Based on year end stock priceb) Includes special dividend of € 0.08 c) Proposed for April 2016 AGM. Includes special dividend of € 0.20. Payout ratio for base dividend is approximately 80%
30% 71% 77% 80%Payout Ratio: 94%
March 2016
II. MARKET
March 2016
Assembly Equipment Market Trends
15
• 2015 market contraction post large 2014 capacity build• Modest downturn forecast for 2016. Growth reaccelerates in 2017 and 2018• Besi revenue growth exceeding assembly market in 5 of past 6 years
4.4 4.0
3.1
3.93.4 3.3
3.8 4.1
-6.6%-9.1%
-22.4%
28.1%
-13.6%
-3.9%
14.9%8.6%
-40%
-20%
0%
20%
40%
0.0
1.0
2.0
3.0
4.0
5.0
2011 2012 2013 2014 2015E 2016E 2017E 2018E
(US
$ bi
llion
s)
Assembly Equipment Market Size YoY Growth Rate
326.9 273.7 254.9
378.8 349.2
-6.9%-16.3%
-6.9%
48.6%
-7.8%
-50%
0%
50%
100%
150%
0
100
200
300
400
2011 2012 2013 2014 2015
(€m
illio
ns)
Besi RevenueRevenue YoY Growth Rate
Source: VLSI January 2016
March 2016
Die Bonding39.7%
Flip Chip15.8%
Die Sorting3.0%
Singulation9.3%
Presses11.2%
Molds13.5%
Lead Trim & Form5.5%
Plating2.0%
Assembly Equipment Market Composition
• Half of assembly market represented by die attach and packaging equipment
• Die Attach represents Besi’s largest addressable market
Die Attach 59%
Packaging 39%
Plating2%
Assembly Equipment Market * (2014: $3.9 billion)
Besi Addressable Market *(2014: $1.7 billion)
* Source: VLSI August 2015
Wire Bonding21.7%
Die Attach29.7%Packaging
21.8%
Plating0.9%
Other Assembly
(Inspection, Dicing)25.9%
16
March 2016
Advanced Packaging Is the Future
• High growth applications require ever smaller, denser and more complex chips with increased performance, all at lower power usage
• <20 nanometer geometry will be the standard chip design over the next 3-5 years
• System on Chip or System in Package via substrate and wafer level packaging process is the only answer
• Besi has full range of AP systems. 2015 revenue: 70% substrate/wafer level vs. 30% leadframe
High Growth EndUser Areas:
Mobile internet, Autos, MEMS, Data Mining,
Cloud Servers, IoT, Wearable
devices
17
Increased Density
Greater Complexity
Greater Miniaturization
Higher Performance
Lower Power Consumption
Higher Accuracy
Esec DB2009
Esec DB2100
Datacon 8800 CHAMEO fan-out
Fico ASM-LM
Fico Sawing Line
Datacon 8800 TC
Fico Compact Line - X
FML wafer molding
March 2016
Driven Primarily by Growth in Internet Connected Devices
• 35% CAGR device growth forecast over next 5 years
• Powered primarily by devices used for IoT, Data mining and Cloud applications
• Positive trajectory for smart phones, wearables and automotive
18
March 2016
Requiring Changes in Process/Equipment Development
19
Today => TomorrowFront End
Transistor scaling
Lithography
New structures 3D
Back End Assembly
More contacts
Smaller pitches
Thinner/densermore complex packages
Stacked structures 3DFrom simple Wire Bond to BGA/Flip Chip to complex 3D structures with TSVs,
microbumps and thin dies
March 2016
• Spending on <25 nano nodes has increased from ~15% in 2011 to an estimated 70% of total spending in 2015
• Node shift below 25 nano = new assembly equipment capacity
Which Has Significantly Increased Equipment Spending for < 25 Nano Nodes
20
March 2016
Computer,
PCs
50%
Mobile
Internet
Devices
22%
Auto
13%
Industrial
10%
LED
3%
Service
2%
2008
And Is Reflected in Besi End User Application Trends
Computer,
PCs
22%
Mobile
Internet
Devices
32%
Auto
18%
Industrial
10%
LED
3%
Spares/
Service
15%
2015
Source: Company Estimates
• Mobile internet devices now equal 32% of Besi’s end user revenue
• Automotive has also increased in recent years
• Service/spare parts have grown to 15%. Less cyclical revenue stream
21
March 2016
New Smart Phone Designs Increase Besi’s Addressable Market Potential
• Besi systems can assemble 50% of 2012 generation components and 70% of 2014 generation components
- NewMain Components
Generation
2012
Generation
2014Manufacturer IDM/OSAT Besi system Utilized
Processor X X Apple TSMC ->Amkor/Stats/ASE 8800FCQ, AMS-W/LM
DRAM Memory X X Hynix/Micron Hynix/Micron 2100sD, FSL
NAND Flash X X Hynix/Toshiba Hynix/Amkor/Toshiba 8800FCQ, AMS-W/LM
Power Management
Apple PM IC X Dialog Dialog 2100sD
PMIC X X Qualcomm N/A
M3 Microcontroller X NXP Amkor/NXP 8800FCQ, AMS-W/LM
Accelerometer/Gyroscope/Barometric
Gyroscope X X Invensense Amkor/ASE/STM 2100xP, 2100sD, AMS-W/LM, FCL
3-ax accelerometer X Bosch Bosch evo
barometric sensor X Bosch Bosch evo
CommunicationsGeneration
2012
Generation
2014Manufacturer IDM/OSAT Besi system Utilized
Wifi/NFC
Wifi module X X Murata Murata Murata's equipment
NFC X NXP Amkor 8800FCQ, AMS-W/LM
NFC Booster IC X AMS Daca N/A
LTE
LTE Modem X Qualcomm Amkor/Stats/Spil/ASE 8800FCQ, AMS-W/LM
Low Band LTE PAD X Skyworks Skyworks 2200evo, FSL
Mid Band PAD X Skyworks Skyworks 2200evo, FSL
High Band PAD X Avago ASE/Amkor 2100xP, 2100sD, AMS-W/LM
Receiver/TransceiverRF Transceiver X X Qualcomm Amkor 2100xP, 2100sD, AMS-W/LM
RF Receiver X X Qualcomm N/A
Envelop Tracking IC X Qualcomm TSMC ->Amkor/Stats/ASE 8800FCQ, AMS-W/LM
Antenna Switch X X RFMD Amkor/ASE,/RFMD 2100xP, 2100sD
PA
PA X X Avago ASE/Amkor 2100xP, 2100sD, AMS-W/LM
PA Module X Triquint ASE 2200evo, 2100sD
Video/AudioGeneration
2012
Generation
2014Manufacturer IDM/OSAT Besi system Utilized
Camera
Back side 8M (OSI) X X Apple LG, Sharp, Mitsumi 2200evo
Front 1.2M X X Apple Cowell, Sony 2200evo
Finger print sensor X Apple ASE 2200evo
Audio
2+4 microphones X ST ST 2100 xp
Audio Codec X X Cirrus Logic Amkor 2100xP, 2100sD, AMS-W/LM
Touch screen control
Touch screen control X X Broadcom Signetics 2100sD
Touch Transmitter X TI TI FCL
22
March 2016
Flip Chip/Wire Bond Process Shift Is Another Revenue Opportunity
Wire Bonding Flip Chip Bonding
Reduces board area by up to 95%.
Requires far less height
Offers higher speed electrical
performance
Greater I/O connection flexibility
More durable interconnection
method
Lower cost for high volume production,
with costs below $0.01 per connection
Flip Chip Advantages
* Source: VLSI January 2016
23
• Move to <20 nanometer can only be accomplished by use of flip chip die bonding vs. wire bonding process
• Flip chip revenue represents only 29% currently of total potential market of $1.2 billion
• Flip chip expected to gain share over next 5 years
• Growth could accelerate depending on adoption rates by key IDMs/subcons
CAGR 2014 - 2020*Flip Chip 7.2%Wire Bond - 0.7%
Flip Chip$538 39%
Wire Bonding
$827 61%
2020*
Flip Chip$356 29%
Wire Bonding
$861 71%
2014*
March 2016
Thermo Compression Bonding Is An Emerging Assembly Technology
• Besi has most advanced industry concept• 7 Axis bondhead, 2 bond heads/system• High throughput => 2x competition• User friendly compact design • Orders significantly expanded in 2015
• Competition: ASM-PT, Toray, Shinkawa & KLIC
• Memory producers first TCB adopters• Issue: Memory performance lags CPU performance • Solution: Advanced stacking design using TCB/TSV
• 15x Higher transfer speeds• 70% Less energy per bit, 90% less space• Wire bonding process eliminated
24
Wire Bonded BGA Stacked Die Memory Device
TSV TCB Memory Cube
Wire Bond connections replaced by direct connection
Besi TCB system
March 2016
Besi Has Gained Share In Its Addressable Markets
• 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
Besi Market Share
Source: VLSI, May 2015 and Besi estimates 2012 2013 2014
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%
25
March 2016
• Customers are largest semi mfrs. • Engaged in most advanced packaging applications
• Strong customer market shares:• ≈ 50-100% of die attach requirements
• ≈ 25-100% 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
And With Leading Edge Technology Customers
N/B No reported bookings for Besi or its competitorsa) Year to date through April 30, 2015b) Merger pendingc) Fabless semiconductor companies such as Qualcomm, Broadcom and Mediatek have assembly
production done by subcontractorsd) In general, Samsung satisfies approximately 50% of its equipment needs internally
Die Attach PackagingIn USD 2012 2013 2014 2015 (a) 2012 2013 2014 2015 (a)
SubcontractorsASE 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/BSTATSChippac (b) 95% 100% 85% N/B 28% 100% 100% N/BSPIL 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/BCowell/Foxconn
100% N/B 100% 100%(Camera Modules) 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%
26
March 2016
III. STRATEGY
March 2016
Summary Strategy
• Maintain best in class tech leadership in advanced packaging• Expand tech capabilities and applications for TCB, thin die, eWLB die bonding; large area, ultra thin
and wafer level molding• Further develop expertise in solar and battery plating applications
Develop new products and markets
• Leverage lead in core competencies at expense of Japanese and Asian competitors• Capitalize on <20 nano expertise to exploit new device introductions, further penetrate largest smart
phone supply chains and expand in Chinese handset market• Apply TCB tech advantage to more mainstream applications
Increase market share in addressable markets
• Expand Asian materials sourcing and direct shipments• Expand Malaysian, Singapore and Chinese operations. Target more local production and shorter cycle
times• Develop common platforms, common modules and common parts • Continue to reduce euro based costs. Better align currency exposures
Achieve a more scalable, flexible and lower cost manufacturing model
• Expand tech leadership in advanced packaging including wafer level assembly
Acquire companies with complementary technologies and products
28
March 2016
Besi Revenue Growth Drivers
Revenue Growth Drivers
World tooling up for new
tech cycle <20 nano
Increased smart phone functionality
New device introductions: IoT, wearables
Wire bond/flip chip
conversion
Solar cell plating
transition from copper to
silver
Increased share of
Japanese supply chain and China handsets
TCB expansion to memory and logic devices
29
March 2016
Key R&D Initiatives
Initiative/Timetable
Advanced TCB & eWLB die bonding equipment
Introduction of next generation systems
Expand solar and battery plating applications
Common parts/platform activities
2015 2016
• Volume production of leading edge TCB systems• Introduction/delivery of new <5 micron flip chip and eWLB systems for higher volume production • Roll out of next generation die attach, packaging and die sorting systems with higher speed and
accuracy• Introduction of new solar and 3D lithium-ion battery plating systems• Ongoing development of TCB, TSV, copper pillar and WLP
2015 Highlights
30
March 2016
Key Operational Initiatives
Initiative/Timetable
Transfer of certain Swiss Die Attach software, logistics and administrative functions to Singapore
Transfer of die bonding production for local market from Malaysia to China
Transfer of Plating Production from NL to Malaysia
10% fixed & temporary headcount reduction
Transfer of die sorting from Austria to Malaysia
Expansion of Asian supply chain. System module outsourcing
2015 2016
31
March 2016
Asian Production Transfer Has Helped Reduce Break Even Revenue Levels
Asian Production Has Significantly Expanded
Leading to Lower European Headcount
And Reduced Break Even Revenue Levels
396 487
658 673
963
709
170
331
553 579
927
666 43%
68%
84% 86%
96%94%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
200
400
600
800
1,000
1,200
2010
2011
2012
2013
2014
2015
% D
irect
Shi
pmen
ts
Shi
pmen
ts
Total Asian ShipmentsDirect Asian Shipments% Direct
741 680 624 602 549
802 799 810 908 950
1,543 1,479 1,434
1,510 1,499
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2011
2012
2013
2014
2015
Hea
dcou
nt
Europe/NA Fixed HC Asia Fixed HC
270
235 212 207 201
-
50
100
150
200
250
300
2011
2012
2013
2014
2015
(€m
illio
ns)
32
March 2016
Workforce Has Become More Scalable and Flexible
• Headcount varies with cyclicality and seasonality of business
• Significant revenue ramps achieved using primarily Asian production temps
• Aggregate headcount down 5.7% vs. 2014• -8.6% since Q2-15
• Asia now represents 63% of total fixed headcount
741 680 624 602 549
802 799 810 908 950
64 60
24 122 40
1,607 1,5391,458
1,6321,539
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2011 2012 2013 2014 2015
Tem
p %
of T
otal
Hea
dcou
nt
Europe/NA Fixed HC Asia Fixed HC Temporary HC Temp % of Total
1,543 1,479 1,434 1,510 1,499
52%54%
56%
60%63%
48%46%
44%
40%37%
30%
40%
50%
60%
70%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2011 2012 2013 2014 2015
Hea
dcou
nt
Europe/NA Fixed HC Asia Fixed HC Asia % Europe/NA %
Fixed Headcount
Total Headcount
33
March 2016
Materials Cost Reduction Is Also a Key Priority
• Qualify and select Asian Vendors• 75% of material is now purchased in Asia• Significant potential cost savings
Supply Chain Actions
• Redesign products• Increase standardization of systems
Development Actions
45-50% thru cycle Gross
Margin
• Material costs represent largest single expense: approximately 45% of revenue• Management Board reviews progress weekly component by component• Shift to Asia centric supply chain reduces personnel, transport, logistics and inventory costs
• Also improves cycle time and ramping flexibility
Estimated savings 2014 2015E 2016/17E
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
34
March 2016
Partially Achieved Through Common Parts Product Redesign
• Magazine handler• Wafer gripper• Dispenser• Wafer table• Wafer Cassette Handler• Die Ejector• Control Platform
Areas of focus:
Potential Unit Cost Savings
DB2100 (7%)
2200evo (11%)
8800FCQ (11%)
Average (9%)
• Development efforts underway to redesign die attach and packaging systems to increasecommon parts utilized per system
• Benefits: Lower unit cost, design and maintenance hours, improved working capital management, shorter cycle times
35
March 2016
IV. FINANCIAL REVIEW
March 2016
Solid Profit and Margin Development In Industry Downturn
Q4-14/Q4-15
€ 89.0
€ 77.8
13.7% 14.0%
22.2%
12.4%
-5%
5%
15%
25%
35%
45%
55%
65%
75%
85%
95%
(€ 5)
€ 15
€ 35
€ 55
€ 75
€ 95
Q4 2014 Q4 2015
Net
mar
gin
%
€m
illio
ns
Revenue Net Income ex. NR Non Recurring
Gross Margin
OPEX
Headcount
Effective Tax Rate
-38.9% 20.6%
1,632 1,539
€ 24.6 MM
€ 26.5 MM
-5.7%
+59.5 points
+7.7%
43.8% 50.0%
-12.6%
-9.7 points
FY 2014/FY 2015
+6.2 points
€ 10.9*
€ 378.8
€ 349.2
17.0% 13.4%
18.8%
14.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0 €
50 €
100 €
150 €
200 €
250 €
300 €
350 €
400 €
450 €
2014 2015*
Net
mar
gin
%
€m
illio
ns
Revenue Net Income ex. NR Non Recurring
Gross Margin
OPEX
Headcount
Effective Tax Rate
0.3% 14.3%
1,632 1,539
€ 93.8 MM
€ 112.5 MM
43.8% 48.8%
-5.7%
+14.0 points
+19.9%
+5.0 points
-4.8 points
€ 64.5* € 46.9*€ 12.2*
-7.8%
€ 7.5
(€ 1.2)
€ 6.5
€ 2.1
* As adjusted* As adjusted
37
March 2016
2011-2015 Quarterly Book to Bill Ratio
Mar11
Jun11
Sept11
Dec11
Mar12
Jun12
Sept12
Dec12
Mar13
Jun13
Sept13
Dec13
Mar14
Jun14
Sept14
Dec14
Mar15
Jun15
Sept15
Dec15
Jan16(F)
Total Equipment 0.95 0.94 0.71 0.85 1.12 0.93 0.78 0.92 1.11 1.10 0.97 1.02 1.06 1.10 0.94 0.99 1.10 0.98 1.04 1.00 1.08
Assembly Market 1.01 0.92 0.81 1.02 1.28 1.11 0.53 0.92 1.08 1.26 0.68 1.06 1.25 1.25 0.69 0.84 1.34 0.92 0.72 1.63 1.44
0.95
0.71
1.100.970.94
1.10
0.98 1.00
1.08 1.01
0.81
1.26
0.68 0.69
1.34
1.63
1.44
0.50
0.75
1.00
1.25
1.50
1.75
Source: SEMI February 2016
Assembly Equipment
Total Semi Equipment
38
March 2016
• Cyclical quarterly revenue/order patterns :
• Short term patterns due to customer roadmaps, global GDP trends and increased seasonality
• Industry downturn began in Q3-15 post 2014 capacity build and China slowdown
• Q4-15 appears to be trough in uncertain economic environment
• Gross margins have improved despite cyclicality :
• Lower unit costs:• Asian production/supply chain transfer• Reduction in European personnel
• Increased scalability• Larger production runs• Shorter cycle times• Forex benefits from strengthening USD
vs. euro
Quarterly Revenue/Order/Gross Margin Trends
70
116
104
8995
104
72
78 78
111
124
91
81
104
92
75 77
42.3%43.2%
45.3%43.8%
49.0%47.9% 48.7%
50.0%
48.0%48.2%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
-
20
40
60
80
100
120
140
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16E*G
ross
Mar
gin
%
euro
in m
illio
ns
Revenue Orders
Gross Margin Adjusted Gross Margin
* Midpoint of guidance: Revenue +5% to -5% vs. Q4-15, Gross Margin between 47-49%
39
March 2016
Currency Exposure Trends
Currency Exposure (2015) Forex Financial Impact
• USD/euro revenue mix relatively stable at 70/30%
• Cost exposure shifting: Asian production transfer increases relevance of MYR, Chinese renminbi and Singapore dollar to cost structure
• Euro and CHF cost % should reduce in 2016 based on 2015 operating initiatives
Revenue Expenses
2013 2014 2015 YTD* ∆ vs. € 2013 2014 2015 YTD* ∆ vs. €Euro 28% 34% 29% - 34% 32% 31% -
US dollar 71% 65% 70% +11.4% 7% 4% 5% +11.4%Swiss franc - - - 26% 18% 22% +10.7%
Malaysian ringgit - - - 22% 37% 28% -9.4%Chinese renminbi - - - 5% 5% 7% +6.5%Singapore dollar - - - 3% 2% 4% +4.2%
Other 1% 1% 1% - 3% 2% 3% -Total 100% 100% 100% - 100% 100% 100% -
* Through December 31, 2015
40
March 2016
Base Line Operating Expense Trends
20.9 22.0 21.4 22.5 21.8 25.6
23.5 22.4
0.6 2.6
1.7 2.2 3.5
6.4
5.2 4.1 21.5
24.6 23.1
24.7 25.3
32.0
28.7 26.5
0
5
10
15
20
25
30
35
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15
Base Opex Other Operating Expenses
Baseline Opex 20.9 22.0 21.4 22.5 21.8 25.6 23.5 22.4 86.8 93.3
Other Operating Expenses
Capitalization of R&D (2.8) (2.4) (2.0) (2.1) (1.5) (1.4) (1.2) (1.5) (9.3) (5.6)
Amortization of R&D 1.1 1.2 1.3 1.2 1.7 2.2 2.3 2.4 4.8 8.6
Capitalization & Amortization , net (1.7) (1.2) (0.7) (0.9) 0.2 0.8 1.1 0.9 (4.5) 3.0
Forex Influence (a) 0.0 0.0 0.0 0.0 2.3 2.0 1.2 0.9 0.0 6.4
Restructuring cost/(benefit) 0.2 0.8 0.0 0.0 (3.0) 0.1 0.2 0.0 1.0 (2.7)
Variable Pay 2.1 3.0 2.4 3.1 4.0 3.5 2.7 2.3 10.6 12.5
Subtotal 0.6 2.6 1.7 2.2 3.5 6.4 5.2 4.1 7.1 19.2
Total 21.5 24.6 23.1 24.7 25.3 32.0 28.7 26.5 93.9 112.5
(a) Principally the impact of CHF/EUR, USD/EUR, SGD/EUR
86.8 93.3
7.1
19.2 93.9
0
20
40
60
80
100
120
2014 2015
112.5
41
March 2016
7.3
23.5
12.2
14.2
10.9
(0.3) (0.6)
7.5 3.3
(1.2)
7.0
22.9
21.5
19.7
17.5
15.5
6.3
9.7
10.4%
20.2% 20.8%
13.7%15.0% 14.9%
8.7%
14.0%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
(3)
0
3
6
9
12
15
18
21
24
Q1-14 Q2-14 Q3-14 Q4-14* Q1-15* Q2-15 Q3-15 Q4-15
(eur
o in
mill
ions
)
Net Income ex. NR Non Recurring Net Margin ex. NR
Quarterly Net Income Trends
• € 9.7 million Q4-15 net income (€ 10.9 million adjusted)• +€ 3.4 million vs. Q3-15 (+€ 4.6 million
adjusted)• -€ 10.0 million vs. Q4-14 (-€ 1.3 million
adjusted)• Industry downturn negatively influenced 2015
comparisons
• Q4-15 adjusted net margin is a healthy 14.0%• High end of target gross margin range• Baseline opex reducing to more normal levels
post Q2-15 peak
• Tax rate up slightly in 2015 excluding deferred tax revaluation adjustments• 12.9% in 2015 vs.11.8% in 2014
* Adjusted to exclude:• Deferred tax adjustment (Q4-15) (€ 1.2 million)• Net restructuring benefit (Q1-15) (€ 3.3 million)
• Deferred tax adjustment (Q2-14, Q4-14) (€ 0.7 million, € 7.5 million)• Restructuring charges (Q1-14, Q2-14) (€ 0.3 million, € 1.3 million)
42
March 2016
Liquidity Trends
• Solid liquidity position• € 157.8 million cash at 12/31/15• € 4.10 per share or 22.1% of year end stock price (€ 18.56)
• Net cash of € 136.5 million, up 15.7% vs year end 2014
• Has been utilized to enhance shareholder value• € 118.2 million spent on cash dividends and
share repurchases 2011-2015• 1.0 million (3%) share repurchase program
initiated at end of Q3-15• € 7 million (407,831 shares) through
February 23, 2016• € 4 million (225,779 shares) purchased in
2015
91.9 83.8
105.4
135.3
161.6
113.7
132.8
157.8
19.1 21.3 19.3 17.3
28.5 22.3 23.8 21.4
72.8
62.5
86.1
118.0
133.1
91.4
109.0
136.5
0
20
40
60
80
100
120
140
160
180
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15
(eur
o in
mill
ions
)
Cash Debt Net Cash
43
March 2016
V. OUTLOOK & SUMMARY
44
March 2016
Q1-16 Guidance
Revenue Gross Margin Operating Expenses
Q4 Q1 Q4 Q1 Q4 Q1
€ 77.8 50.0% € 26.5
• Revenue within a range of +5% to -5% vs. Q4-15• Gross margins 47-49% range due to product mix and less favorable forex
than Q4-15• Opex +10% vs. Q4-15 due to 2015 related share based compensation
expense • Share repurchase program continues
Up
10%
49%-
47%
+5%to
-5%
45
March 2016
Summary
Leading semi assembly equipment supplier with #1
or #2 positions in fastest growing assembly
segments
Technology leader. Best in class product portfolio
Gaining market share in advanced packaging
Scalability and profitability of business model greatly
enhanced in cyclical industry
Significant upside potential.Advanced packaging
growth from new technology cycle, operating initiatives and optimization of Asian production model
Committed to enhancing shareholder value.
Attractive dividend yield relative to peers
46