C A P I TA L M A R K E T S D AY L P K F L A S E R & E L E C T R O N I C S A G | 1 7 S E P T E M B E R 2 0 2 0

AGENDA

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1 7 . 0 9 . 2 0 2 0

15:00 CET | KEY NOTE – Big PictureGoetz M. Bendele (CEO) & Christian Witt (CFO)Presentation (30 minutes)

15:30 CET | Q&A Panel (15 minutes)

15:45 CET | WELDINGSimon Reiser (Managing Director Welding)Presentation and Q&A (20 minutes)

16:05 CET | SOLARJuergen Bergedieck (Managing Director Solar)Presentation and Q&A (20 minutes)

16:25 CET | ELECTRONICSRoman Ostholt (Managing Director Electronics)Presentation and Q&A (20 minutes)

16:45 CET | LIDERoman Ostholt (Managing Director Electronics)Presentation and Q&A (40 minutes)

17:25 CET | ARRALYZERobin Krueger (Head of Product Management and Innovation)Presentation and Q&A (15 minutes)

17:40 CET | WRAP-UP and final Q&A PanelGoetz M. Bendele (CEO) & Christian Witt (CFO)Wrap-up and Q&A (20 minutes)

END

CONTENT

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L P K F TO DAY – T R A N S F O R M ATO N A N D I M PA C T

L P K F T H RO U G H 2 0 2 4 – S O U RC E S O F G RO W T H

C U R R E N T S I T UAT I O N

K E Y F I G U R E S A N D O U T LO O K

CONTENT

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L P K F TO DAY – T R A NSFORMATON A N D I M PAC T

L P K F T H RO U G H 2 0 2 4 – S O U RC E S O F G RO W T H

C U R R E N T S I T UAT I O N

K E Y F I G U R E S A N D O U T LO O K

W E E N A B L E I N N O V AT I O N

WE ENABLE INNOVATION SINCE 1976 . . .

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• The original LPKF 39, the first device for in-house production of PCB prototypes

• LPKF’s first innovation helped accelerate the production of PCB prototypes worldwide.

• Ever since, we have been the No. 1 provider of PCB prototyping solutions.

• Today and in the future, our Development segment continues to contribute growth and margin.

“ L E I T E R P L AT T E N K O P I E R F R Ä S E “ 1 9 7 6

. . . AND WE ENABLE INNOVATION TODAY

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L A S E R I N D U C E D D E E P E T C H I N G ( L I D E ) 2 0 2 0

• LIDE is a transformative platform technology for creating microstructures in glass, and a significant element of our growth strategy.

• LIDE enables flexible microstructure designs with superior quality and far lower cost.

• LIDE expands the range of glass applications, replacing several of today’s materials.

• Multiple active LIDE applications in several industries, incl. Display, Semiconductors, Microfluidics, Optoelectronics, MEMS.

LPKF OVERVIEW - FOUR BUSINESS UNITS

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W I D E R A N G E O F S O L U T I O N S F O R S P E C I F I C C U S T O M E R D E M A N D

D E V E L O P M E N T

• Solutions for volume manufacturing of electronics

• LIDE (Laser Induced Deep Etching) - Thin glass processing

• Solutions for in-house PCB prototyping and micromaterial processing

E L E C T R O N I C S

S O L A RW E L D I N G

• Solutions for laser plastic welding in volume manufacturing

• Solutions for thin-film PV module production

• Solutions for Digital printing of ceramic inks (LTP)

B U S I N E S S S E G M E N T S T R AT E G Y

Leverage increasing synergies across segments in R&D,

production, sales and service.

Become both technology and market leader in each segment

we operate in.

Accomplish sustained profitable growth in each business

segment.

WE HAVE TRANSFORMED LPKF . . .

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I M PA C T T O D AT E O N L P K F J O U R N E Y T O B E C O M E H I G H T E C H L E A D E R

C U S T O M E R

• Built out focus on customer orientation throughout LPKF

• Strengthened Service Business

• Reoriented sales more towards new customers & new segments

• Established LIDE Glass Foundry business model as significant future growth driver

T E C H N O L O G Y P E O P L E

• Commercializing LIDE as platform technology across industries

• Developed new products & variants targeting specific customer demand

• Design-to-cost to enhance global cost competitiveness

• Increased speed and transparency of R&D programs

• Successful turnaround executed without layoffs

• Increased attractiveness as employer: record employee profit sharing; new ESPP; revamped LTI

• Today: short-time work @100% pay

• Higher employee satisfaction, lower fluctuation

. . . WHICH OUR RESULTS REFLECT

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I M PA C T T O D AT E O N L P K F J O U R N E Y T O B E C O M E H I G H T E C H L E A D E R

K E Y F I G U R E S

• Significant P&L improvement (2017 vs. 2019, prior to meaningful LIDE impact):

− Revenue EUR 102m → EUR 140m

− EBIT EUR 4.0m → EUR 19.2m

− FCF EUR 3.3m → 42.2m

• Balance Sheet transformation*

− Working Capital EUR 33.3m → EUR 14.8m

− Net debt EUR 37.7m → Net cash EUR 24.5m

• In 2019, all four Business Units profitable for the first time

C A P I TA L M A R K E T S

• Market Capitalization up by >3x: EUR 160m (May 2, 2018) → EUR 523m ( 7-8/2020)

• XETRA Trading volume up by >10x: 16.5k ( Q2/2018) → 169k ( 7-8/2020)

• LPKF joined SDAX (Feb. 2020) and TecDAX (Aug. 2020) indices

• Successful public placement of 29% of LPKF shares (May 2020)

* From Dec. 31, 2017 to Dec. 31, 2019

LPKF 2024

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W H E R E O U R J O U R N E Y W I L L TA K E U S

K E Y F I G U R E S

C U S T O M E R S

• LPKF established as key technology partner for several large customers (e.g., semicon, consumer electronics, medical, automotive)

• Glass Foundry services built out as differentiator

• LPKF performance has accomplished preferred supplier status across business areas.

T E C H N O L O G Y P E O P L E

• LIDE established as standard process for structuring thin glass across industries

• Strong pipeline of new technologies (iterative and/or transformative) for commercialization

• LPKF remains technology leader in each of its current business areas (today’s BUs)

• LPKF has achieved broad visibility for technology and business talent across tech space

• LPKF attracts top talent from a global and diverse talent pool

• At least EUR 360m revenue total, with min. 25% EBIT

• Sustained growth in current BUs as well as LIDE business, plus visible new business(es)

CONTENT

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L P K F TO DAY – T R A N S F O R M ATO N A N D I M PA C T

L P K F T H ROUGH 2 0 2 4 – S O URC ES O F G ROWT H

C U R R E N T S I T UAT I O N

K E Y F I G U R E S A N D O U T LO O K

SOURCES OF GROWTH – CORE

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S U S TA I N E D G R O W T H E X P E C T E D F O R A L L C U R R E N T L P K F B U S I N E S S

M A R K E T

• LPKF (sub-)markets forecast to exhibit above-average growth

• Correlation of LPKF business with customer innovation

• Laser share of broader market up with cost-down of laser solutions

C U S T O M E R

• Expand sales effort: geography, customer type served

• Increase share via best-in-class customer-facing performance (e.g. agility)

• Design-to-cost effort increases cost competitiveness

* without LIDE business# not included in 2024 guidance

A P P L I C AT I O N

C O R E • Adjust current solutions to specific customer needs (e.g., variants)

• New, distinct customer applications of existing LPKF technologies

• Commercialization of new technologies for customer applications#

• Development

• Electronics*

• Solar

• Welding

C O R E B U S I N E S S C A G R E X P E C T E D I N ~ 1 0 - 1 5 % R A N G E T H R O U G H 2 0 2 4

L I D E E X P E C T E D T O C O N T R I B U T E ~ € 1 5 0 - 2 0 0 M I L L I O N R E V E N U E I N 2 0 2 4

SOURCES OF GROWTH – LIDE BUSINESS

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S T R O N G G R O W T H E X P E C T E D F R O M B R O A D S E T O F A P P L I C AT I O N S

S E V E R A L I N D U S T R I E S

Guidance based on active applications in several customer industries:

• Displays

• Semiconductors

• Microfluidics

• Optoelectronics

• MEMS

• Plus in addition: others*

* not included in 2024 guidance

M U LT I P L E A P P L I C AT I O N S

L I D E • In each industry, we actively work with (current & potential) customers on a number of different applications

• Active customers are buying engineering samples from LPKF on regular basis →future volume manufacturing projects

• While project timing of each application may vary, size of project portfolio leads to higher confidence in overall growth path

• OEM Business

• Foundry

REALIZING LPKF‘S GROWTH AMBITIONS

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S A L E S I S K E Y S U C C E S S FA C T O R I N I M P L E M E N T I N G G R O W T H S T R AT E G Y

N O N - L I D E B U S I N E S S L I D E B U S I N E S S

• Sufficient existing capacity for ~2-3x current production volume

PRODUCTION CAPACITY

• OEM: leverage Garbsen capacity

• Foundry: ~6 months to build capacity

ADDITIONAL STAFF

• Only incremental staff additions (R&D, service, production, SG&A)

• Specific talent for some LIDE applications (applications R&D)

• Otherwise Incremental staff addition

REQUIRED INVEST

• Very modest for production capacity, otherwise minimal

• Modest for OEM production; invest for foundry feasible from LPKF cash-flow

CUSTOMER DEMAND

• Key success factor: leverage customer value, drive sales growth across geos, industries, applications

• Key success factor: leverage customer value, develop LIDE business across industries incl. large-scale situations

CONTENT

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L P K F TO DAY – T R A N S F O R M ATO N A N D I M PA C T

L P K F T H RO U G H 2 0 2 4 – S O U RC E S O F G RO W T H

C U R R ENT S I T UAT I ON

K E Y F I G U R E S A N D O U T LO O K

COVID-19: DIRECT IMPACT ON LPKF

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E X T E N S I V E M E A S U R E S C O N T I N U E T O B E I N P L A C E

M E A S U R E S I N P L A C E

Since early 2020, extensive measures taken to protect employees, their families and the community:

• Extensive use of home office

• Physical separation of each site into sections

• Limitation on visitors and on travel (as-needed basis)

• Strict hygiene concept (e.g. masks, distancing, tracing)

All measures continue today (Sep. 2020)

S TAT U S S E P T E M B E R 2 0 2 0

• No individual infected by COVID-19 at any LPKF site

• No COVID-19-related business interruption

COVID-19: ECONOMIC IMPACT ON LPKF

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PA N D E M I C A F F E C T S 2 0 2 0 R E S U LT S

I M PA C T E X P E R I E N C E D

• No meaningful impact from order cancellations (ca. EUR 200k total)

• Experiencing delays of several projects – both delivery and pipeline – across industries and geographies, especially from large customers

• Order entry low for most of 2020, but fundamental customer demand for our solutions remains unchanged

A S S E S S M E N T I N S E P E M B E R 2 0 2 0

• Revenue down 30% YoY for H1 of 2020

• Expecting H2 better than H1, but still impacted

F I N A N C I A L Y E A R 2 0 2 0

GUIDANCEA S O F 5 A U G U S T 2 0 2 0

The ability to make forecasts for the current financial year is still severely limited as the economic environment continues to be characterized by considerable uncertainty surrounding the ongoing COVID-19 pandemic.

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G R O U P S A L E S

2 4 - 2 7 M I L L I O N E U RE B I T

1 - 3 M I L L I O N E U R

This forecast is subject to stable growth in the global economy.

G R O U P S A L E S

> 3 6 0 M I L L I O N E U RE B I T M A R G I N

> 2 5 %

F O R Q 3 2 0 2 0 , L P K F A N T I C I PAT E S :

F O R 2 0 2 4 , L P K F A N T I C I PAT E S :In the event of a deeper recession, the Management Board expects a decline in revenue and earnings for the current financial year. The medium-term prospects for LPKF, and particularly the growth outlook for the LIDE segment, remain unchanged.

CONTENT

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L P K F TO DAY – T R A N S F O R M ATO N A N D I M PA C T

L P K F T H RO U G H 2 0 2 4 – S O U RC E S O F G RO W T H

C U R R E N T S I T UAT I O N

K E Y F I G URES A N D O U T LO OK

STRATEGIC OUTLOOKP R O F I TA B L E G R O W T H A N D C A S H C O N V E R S I O N

E B I T - M A R G I N E X PA N S I O NOperating Laverage and further efficiency improvements

A S S E T - L I G H T B U S I N E S Sin equpiment, sales and servicemedium-light in glass foundry

P R O F I TA B L E G R O W T Hthroughpermanent innovation and stablegrossmargins – currentand new business

I M P R O V E D W O R K I N G C A P I TA LWorking capital target:< 10 % of net sales

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102,1

360,0

2013 2017 2019 2024 2024

BROAD BASIS FOR PROFITABLE GROWTHC A G R C O R E B U S I N E S S 1 0 - 1 5 % , L I D E W E L L D I V E R S I F I E D

L D S

CO

RE

BU

SIN

ES

S

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LID

E

LIDE in 2024 well diversified

LIDE ESTIMATE FOR 2024

• most initiatives validated by customer projects

• conservative approach in all areas

• Foundry revenue with significant additional discount (timing)

LDS 2013one technology, one application

update 09/2020

2019-2024broadening base in core segments

broad application range in LIDE

OE

M

Fo

un

dr

y

INCREASING EBIT-MARGINSO P E R AT I N G L E V E R A G E I N C R E A S E S P R O F I TA B I L I T Y

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G R O S S M A R G I N S• Permanent product innovation in all Business Units, stable Gross Margins

• Margins LIDE and other new Business similar to today’s business

I N C R E A S E D E F F I C I E N C Y• In indirect areas by 5-15 % p.a.over the next years

• e.g. digitalization of sales administration, accounting, etc.

• R&D to grow more than general fixed cost

S A L E S G R O W T H 2 0 1 9 – 2 0 2 4 : + 1 6 0 %

F I X E D C O S T 2 0 1 9 – 2 0 2 4 : + 8 0 %

H I S T O R I C A L M A R G I N S C O N F I R M O P E R AT I N G L E V E R A G E• EBIT 2017/18: 4-6% (adjusted ca. 0-8%) - 2019: 13,7% - 2024: >25%

O P E R AT I N G L E V E R A G E• Underproportional growth of fixed cost – increase in EBIT margin

ASSET-LIGHT BUSINESS MODELS U F F I C I E N T P R O D U C T I O N C A PA C I T I E S W I T H A S S E T L I G H T A S S E M B LY

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Core Business and LIDE Equipment: Assembly, no machining, low value add in Production

D E V E L O P M E N T• Production Capacity 2 x 2019

E L E C T R O N I C S• Production Capacity 2 x 2019

+ LIDE equipment production

W E L D I N G

• Production Capacity 4 x 2019

S O L A R• Production Capacity 2 x 2019

• EUR 20 – 30 million investment during 2020 – 2024

• Phase 1: 8m EUR, flexible ramp up

L I D E F O U N D R Y

WORKING CAPITAL AND FREE CASH FLOWAT T R A C T I V E F R E E C A S H F L O W W I T H H I G H C A S H C O N V E R S I O N

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N E T W O R K I N G C A P I TA L TA R G E T• Target: < 10% of annual revenue 2018: 31,6% 2019: 10,6%

E Q U I P M E N T • < 30 days incl. down payments

S E R V I C E• 30 days (< 30 days DSO, some inventory)

F O U N D R Y• 30 days (only DSO, rest insignificant)

F R E E C A S H F L O W• Growing Working Capital and Investments financed by Profitable Business

• Will continue to see order and investment based swings

• Attractive Free Cash Flow, LPKF remains debt free

• Dividends paid based on Free Cash Flow

KEY PERFORMANCE INDICATORS

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F O R F U T U R E G R O W T H

Revenue (in million EUR)

Recurring Revenue

EBIT margin

Net Working Capital*

2019

140.0

19%

13.7%

10.6%

2024 (e)

360

30%

>25%

<10%

RECURRING REVENUEFrom service, license fees and foundry business

EBITOperating Leverage

FREE CASHFLOWHigh cash conversion, order & investment basedswings

* incl. IFRS 15

WORKING CAPITALTarget < 10%,

INVESTMENTSReplacement, R&D, LIDE foundry/growth

KEY GROUP FIGURES

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6 M O N T H S 2 0 2 0 – C O M M E N T S U P D AT E D A S P E R S E P T E M B E R 2 0 2 0

in Mio. EUR

Revenue

EBIT

EBIT margin (%)

Earnings per Share (EUR )

Free cashflow

Incoming orders

6 months | 2020

50.0

2.8

5.7

0.08

-12.4

39.6

6 months | 2019

72.7

10.1

13.9

0.30

17.8

45.8

∆%

-31.2

-71.7

-72.5

-169.8

-13.7

Orders on hand (30 June)

Employees (total number)

21.9

683

31.4

674

-30.2

1.3

SPEED & PROFITABILITY• Fast reaction to changing situations to assure

profitability of the Business and sell when business picks up

ORDER SITUATION AND OUTLOOK 2020• Delays of projects especially in Solar segment

• Delay large orders Electronics & Welding to 2021

• Growth in Electronics w/o large customer

• Slight decline in Welding w/o large customer and in Development

• Generally shorter customer lead times

SUSTAINABILITY AT LPKF

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V A L U E P R O P O S I T I O N S U P P O R T S S U S TA I N A B I L I T Y

Further improvement in all areas targeted

E N V I R O N M E N T

• Reduction of 56% CO2 emissions within 2 years

• 100% renewable energies at German sites

• LPKF complies with RoHS and REACH requirements

• We require our suppliers to rule out the use of conflict minerals in a self-declaration

S O C I E T Y

• Compliance Code requires employees to observe legislation on the protection of human rights

• Whistleblowing system since 2017

• Suppliers have to commit to complying with a social responsibility code

E M P L O Y E E S

• Occupational safety and health protection system

• Works council to guarantee interests and rights of employees

• Group-wide staff development program

• Diversity: Equal opportunities regardless of gender, nationality, skin color, religion and sexual orientation

• Idea management with rewards

S U S TA I N A B L EVA L U E C R E AT I O N

• Our technologies enable better products with less resources

• Our solar systems increase the efficiency of solar modules and improve the carbon footprint

• Strong customer focus

• 62 patent families with 250 individual patents & applications

• 10% of revenue invested in R&D

• >20% of workforce in R&D

• Strong focus on product quality

• ISO 9001 certificate

F I N A N C I A L Y E A R 2 0 2 0

GUIDANCEA S O F 5 A U G U S T 2 0 2 0

The ability to make forecasts for the current financial year is still severely limited as the economic environment continues to be characterized by considerable uncertainty surrounding the ongoing COVID-19 pandemic.

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G R O U P S A L E S

2 4 - 2 7 M I L L I O N E U RE B I T

1 - 3 M I L L I O N E U R

This forecast is subject to stable growth in the global economy.

G R O U P S A L E S

> 3 6 0 M I L L I O N E U RE B I T M A R G I N

> 2 5 %

F O R Q 3 2 0 2 0 , L P K F A N T I C I PAT E S :

F O R 2 0 2 4 , L P K F A N T I C I PAT E S :In the event of a deeper recession, the Management Board expects a decline in revenue and earnings for the current financial year. The medium-term prospects for LPKF, and particularly the growth outlook for the LIDE segment, remain unchanged.

T H A N K Y O U !

LEGAL NOTICE | DISCLAIMER

D I S C L A I M E R R E G A R D I N G F O R W A R D - L O O K I N G S T A T E M E N T S

• This document contains forward-looking statements and statements on future expectations which reflect the current opinions and expectations of the management with respect to future events. These statements are subject to known and unknown risks and uncertainties which can neither be controlled nor precisely estimated by LPKF Laser & Electronics AG, and which could cause actual results, performances and events to differ materially from those forecast or indicated here.

• Actual results, performances and events may deviate to an unlimited extent as a consequence of: (i) general economic conditions, (ii) future changes in the performance of the financial markets, (iii) interest rates, (iv) currency exchange rates, (v) the behavior of other market participants, (vi) general competitive factors, (vii) changes in laws and regulations, (viii) changes in the policies of central banks, government authorities and/or (foreign) governments, (ix) regional and/or global conditions.

• LPKF assumes no liability and does not intend to update any forward-looking statements to reflect any events or conditions the take place after the publication of this material.

N O U P D A T I N G

• LPKF AG assumes no liability for the (correctness and completeness of the) information contained herein, and does not intend to update this material.

N O O F F E R

• This presentation is merely intended to provide information and is not an investment recommendation. It is not an offer and is merely intended for general information purposes. All the descriptions, examples and calculations contained in this presentation are only provided for the purpose of illustration.

R E G I S T E R E D T R A D E M A R K S A N D P H O T O S

• All the names and trademarks referred to in this document are covered by unlimited copyright laws, and may not be used without the express permission of the relevant registered owners. The fact that they are mentioned in this document does not imply that they are not protected by the rights of third parties or companies.

• The photos used are from LPKF. The presentation may also contain royalty-free photos from Unsplash.com.

L P K F L A S E R & E L E C T R O N I C S A G | 2 0 2 0

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