analyst presentation 15 june 2017 - besi...corporate profile • ltm revenue and net income of €...
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ANALYSTPRESENTATION
JUNE 15, 2017
1
June 2017
Safe Harbor Statement
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, 2016; 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.
2
June 2017
Agenda
3
I. Company Overview
II. Market
III. Strategic Agenda
IV. Technology Updatea. Die Attachb. Packaging & Plating
V. Financial Review & Summary
June 2017
I. COMPANY OVERVIEW
4
June 2017
Besi Overview
• Leading assembly equipment supplier with #1 and #2 positions in key markets. 30% addressable market share
• Broad portfolio: die attach, packaging and plating• Strategic positioning in substrate and wafer level packaging • Global mfg. operations in 6 countries; 1,883 employees
worldwide. HQ in Duiven, the Netherlands
Corporate Profile
• LTM revenue and net income of € 406.7 and € 81.6 million• Cash at Q1-17: € 309.0 million• Net cash and deposits at Q1-17: € 175.7 million• € 258.7 million of dividends and share repurchases since 2011
Financial Highlights
• Growth of <20 nano advanced packaging, smart phone features, auto electronics, IoT, AI and market share gains offer revenue upside
• Significant unrealized earnings potential from optimization of Asian production, supply chain and common parts/platforms
Investment Considerations
5
June 2017
Besi Market Information
Market Profile
Share Ownership
01,0002,0003,0004,0005,0006,0007,0008,000
0
50
100
150
200
250
300
350
2013 2014 2015 2016 2017 *
Avg
Vol
* A
vgP
rice
(€ th
ousa
nds)
Vol
ume
(tho
usan
ds)
Avg. Daily Volume & Liquidity
60%
42%
0%
20%
40%
60%
80%
2011 2016
Top 10 Shareholders**(% of shares outstanding)
• BESI• Euronext Midcap AMX
Symbol/ Index
• € 1,895 MM ($2,123 MM)
Market Cap*
• Pay out 40-80% of net income per annum
Dividend Policy
* As of June 12, 2017** Source: Besi estimates
NL30%
US20%
UK14%
Europe ex. NL
17%
Other19%
By Geography
6
June 2017
ASM Pacific Suss K&S Besi
Besi Has Achieved Best in Class Metrics
ASM Pacific Suss K&S Besi
23.9%15.8%13.7%2.7%
22.3%10.1% 15.9%2.4%
27.2%16.3% 17.1%7.3%
Worst Peer
16.0%
32.6%
7.3%
1.7%
2.4%
2.7%
1.3
20.1%12.9% 14.1%
1.7%
22.0% 29.7%18.5%16.0%
Besi
Inventory Turn
CF from Ops/ Revenue
Return on Equity
Net Margin
EBITDA Margin**
Gross Margin
Revenue Growth
BestPeer
29.7%
52.6%
27.2%
20.1%
22.3%
23.9%
4.33.1 4.3 2.1 1.3
* Latest Twelve Months ended March 31, 2017** EBITDA Margin for ASM PT is from year end 2017 due to lack of publicly available informationData Source: Bloomberg
7
52.6%45.7%39.0%32.6%
LTM*
June 2017
6.8 8.1 11.3 12.4
56.9
45.4
65.3
15.1
0.92.7
4.022.4
7.4
21.9
9.0
14.0 12.4
60.9
67.8
72.7
0
10
20
30
40
50
60
70
80
2011 2012 2013 2014 2015 2016 2017 YTD *
Dividends Share Repurchases
Cumulative: € 258.7 MM Dividends and Share Repurchases
Shareholder Returns 2011-2017*
• Cumulative € 5.29/share paid out in dividends to shareholders since 2011• 3.0 million shares held in treasury at an avg. cost of € 14.99 per share at June 12, 2017
8
euro
in m
illio
ns
* As of June 13, 2017
June 2017
II. MARKET
9
June 2017
254.9
378.8 349.2
375.4
188.0
270.0
-6.9%
48.6%
-7.8%7.5%
43.6%
-50%
0%
50%
100%
150%
0
100
200
300
400
2013 2014 2015 2016 HY1-16 HY1-17*
(€ m
illio
ns)
Besi RevenueRevenue YoY Growth Rate
3.0
3.9
3.23.7
4.1 4.3
-22.0%
27.1%
-17.3%
15.4%11.8%
5.0%
-30%
-20%
-10%
0%
10%
20%
30%
0.0
1.0
2.0
3.0
4.0
5.0
2013 2014 2015 2016E 2017E 2018E
(US
$ bi
llion
s)Assembly Equipment Market
Market Size YoY Growth Rate
Assembly Equipment Market Trends
• VLSI has upgraded 2017 forecast from 9.3% in January to 11.8% currently• Forecasts current market upturn to continue through 2018• Underlying semiconductor production trends favorable
Source: VLSI May 2017
10
* Assumes mid point of Q2-17 guidance
June 2017
Die Attach41.0%
Flip Chip9.7%
Die Sorting4.3%
Singulation9.8%
Presses16.8%
Molds9.8%
Lead Trim & Form6.6%
Plating2.0%
Assembly Equipment Market Composition
• Roughly half of assembly market represented by die attach and packaging equipment
• Die attach represents Besi’s largest addressable market
Die Attach 55%
Packaging 43%
Plating2%
Assembly Equipment Market * (2016: $3.6 billion)
Besi Addressable Market *(2016: $1.4 billion)
* Source: VLSI May 2017
Wire Bonding21.8%
Die Attach28.3%
Packaging19.5%
Plating0.8%
Other Assembly
(Inspection, Dicing)29.7%
11
June 2017
Besi Has Gained Share In Its Addressable Markets
• Projected to gain share in 2017 based on VLSI and current analyst estimates• Focused on leading customers with most significant future growth potential
Source: VLSI, May 2017 and Besi
estimates2012 2013 2014 2015 2016 2017E*
Besi Addressable Market 21.7% 26.4% 30.5% 31.3% 29.8% 35%
Total Die Attach 27.5% 31.9% 37.1% 37.5% 37.2%
Die Bonding 29.7% 39.1% 40.3% 38.9% 37.5%
Flip Chip 22.2% 24.1% 33.2% 31.5% 33.8%
Die Sorting 23.2% 6.5% 14.9% 47.7% 44.6%
Total Packaging 11.1% 15.9% 17.9% 18.1% 15.4%
Molding 12.0% 19.1% 19.9% 15.6% 14.9%
Lead Trim & Form 15.0% 17.6% 19.7% 27.8% 22.9%
Singulation 5.3% 5.1% 9.4% 16.8% 10.6%
Total Plating 75.6% 82.4% 75.4% 78.3% 85.6%
Total Assembly Equipment 8.7% 10.7% 13.0% 12.2% 11.6% 14%
12
* Based on avg ING and Petercam 2017 Besi revenue estimates (€ 498 and € 503 million) and VLSI estimated market growth from May 2017
June 2017
• Customers are largest semi mfrs. engaged in most advanced packaging applications
• Strong customer market shares 2016:• ≈ 60-100% of die attach requirements
• ≈ up to 90% of packaging requirements
• Customer market shares p.a. vary based on capacity needs, purchasing and development cycles
• Primary competition in our addressable markets (ex. WB):• Die Attach: ASM-PT, Fasford, Shinkawa, Toray
• Packaging: Hanmi, Towa, ASM-PT
Besi Share of Wallet
N/B No reported bookings for Besi nor its competitors
• Fabless semiconductor companies such as Qualcomm, Broadcom and Mediatek have assembly production done by subcontractors.
13
2014 2015 20162017
YTD*2014 2015 2016
2017
YTD*
Subcons
ASE 70% 80% 70% 40% 35% 25% 15% 20%
Amkor 90% 95% 95% 100% 20% 25% 10% 35%
JCET/Stats 70% 30% 60% 70% 50% 5% 30% 35%
SPIL 90% 100% 60% 50% 20% 25% 25% 0%
Nantong 100% 100% 100% 65% 0% 35% 0% N/B
UTAC 100% 100% 100% 100% N/B 100% 20% 100%
Unisem 100% 100% 100% 75% N/B 100% N/B N/B
Cowell/Foxconn 100% 65% 100% 85% N/B N/B N/B N/B
IDM's
Skyworks 100% 100% N/B 80% 40% 90% 25% N/B
ST Micro 80% 95% 85% 70% 40% 45% 45% 65%
Infineon 100% 90% 75% 100% 90% 95% 20% 65%
Micron 45% 80% 100% 100% 100% 100% N/B 0%
NXP 100% 100% 90% 85% 100% 55% 90% 100%
Bosch 100% 95% 100% 100% 100% 100% N/B N/B
Qorvo 100% 100% 100% N/B 100% 100% 90% N/B
Above customers as
% of product
revenue Besi
65% 42% 47% 57% 66% 73% 69% 56%
* Through May 31, 2017
Die Attach Packaging
June 2017
III. STRATEGIC AGENDA
14
June 2017
€ 149.4
€ 406.7
-€ 4.1
€ 81.6
33.6%
52.6%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
-50
50
150
250
350
450
Gro
ss M
argi
n (%
)
Rev
enue
and
Net
Pro
fit (
€ m
illio
ns)
Revenue Net Income Gross Margin
2008
Besi Has Realized Vision of 2008 Strategic Plan
15
•Expanded A/P leadership position organically and via Esecacquisition
•Gained mindshare with key industry leaders•Growth in China, key customers and electronics supply chains
Products
•Enhanced profit potential via Asian production transfer and European restructuring activities
•Developed two key Asian production hubs (MY and CH) and Singapore development/support center
•Increased production capacity to € 600 million per annum
Operations
•Achieved industry benchmark gross and net margins and consistent quarterly through cycle profitability
•Generated substantially increased cash flow via profit growth and improved working capital management
Financial Metrics
•Stock price has increased by ~2800%•Implemented attractive capital allocation policy•€ 258.7 MM dividends and share repurchases since 2011
Shareholder Value
LTM
June 2017
Revenue Initiatives
• Grow in excess of assembly equipment market:
• Expand addressable market with particular focus on mainstream
• Increase market share to 35-40%• Increase % of global semiconductor
supply chains• Grow Chinese market presence and
share of wallet• Increase Chinese process and technical
support to better serve installed base
Cost Initiatives
• Reduce structural costs and break-even levels further:
• Continue West-East personnel transfer• Increase Asian personnel to 75% of total
headcount• Further reduce European personnel and
overhead costs• Optimize Asian supply chain• Accelerate common platform initiatives
Strategic Priorities: 2017-2021
16
June 2017
Revenue Initiative: Expand Addressable Market and Market Penetration
17
• Opportunities exist to leverage Besi’s leading market position to gain new customers, increase its addressable market and grow its customer share of wallet
Opportunities
Increase Penetration of Key Electronics Supply
Chains
Expand Addressable Market with Particular Focus on Mainstream
Further increase presence in China and
Korea
Market Segments
High End:• Maintain Tech Leadership• Leverage market position
to gain share of wallet• Existing and new
customers
Mainstream:• Offer high quality mid
range products• Broaden customer base
and share of wallet• Increase market share
End User Applications/Markets
End User Applications:• Memory/Logic• Mobile Internet• Automotive
Geographic Markets:• China• Korea
June 2017
Revenue Initiative: Expand Chinese Market Presence Via Increased Local Production
• Chinese government hopes to double semi production output by 2021• Objective: 50% consolidated Besi revenue
80% 77%70%
50%
20% 23%30%
50%
0
33
139
0
50
100
150
200
0%
20%
40%
60%
80%
100%
2014 2015 2016 Objective
Uni
ts
% o
f tot
al r
even
ueChina Customer Revenue and Units Shipped
Other Besi Revenue China Revenue Units shipped from Chinese plant
18
June 2017
Revenue Initiative: Invest in Chinese process and technical capabilities to support future growth
3940
63
150143
165
0
20
40
60
80
100
120
140
160
180
2015 2016 Q1 17
Growth of Service and Technical Support Personnel i n China
Taiwan Other Asia Singapore Korea China Malaysia
• Service, engineering and technical support personnel in China up ~60% since 2015 to better service growing installed base in the region
19
June 2017
Cost Initiatives
~€ 15 Million Potential Cost Reduction Over Next Five Years
Supply Chain (~40%)• Increased outsourcing• Vendor consolidation and
volume discounts• Increased common parts• Increased Asian
sourcing/selected products
Headcount (~35%)• West – East Transfer
• Certain SG&A and R&D functions
• Further reduction of European personnel
Product Design (~25%)• With each new product
generation:• Reduce number of
platforms• Increase
standardization
20
June 2017
Cost Initiative Timeline
Supply Chain
Increased outsourcing
Vendor consolidation
Common parts
Headcount
West – East Transfer (SGA)
West – East Transfer (R&D)
Product Design
Common platforms
2017 2018 2019 2020 2021
21
June 2017
IV. TECHNOLOGY UPDATE
22
Besi Assembly Processes
• Sorting and mounting chipson substrate materials
• Establishing electrical interconnects
• Molding/encapsulating devices in packages
• Singulation/trim and form ofpackages
• Electro plating of leadframes, substrates and solar cells
• Flip chip, multi module, Fan Out + TCB die bonding and ultra thin molding are key competencies
June 2017 23
June 2017
Best in Class Product Portfolio
Multi Module Attach• 2200 evo• 2200 evo plus
• 2200 evo hS New
Die Sorting• WTT• TTR
New
New
Die Bonding
• 2100 xP plus / hS• 2100 sD plus / PPP plus
• 2100 sD advanced
Flip Chip• 8800 CHAMEO advanced
• 8800 TCB advanced
• 8800 FC Quantum advanced
• 2100 FC hSNew
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• Singulation• Sorting
FCL• X• P• X/P
NewNew
• 2009 SSI• 2100 DS• 2100 SC
Die Lid Attach• DLA New
• Film & Foil• Battery
Die Attach
Packaging
Plating In Development
New
New
New
New
24
Key Trends Affecting Next Generation Devices
25
Source: Imec An Steegen ITF May 2017 Source: Imec ITF May 2017
Data usage keeps increasing Ever smaller transitors for faster/lower energy use
Cost reduction becomes more difficult to achieve
Source: Qualcomm May 2017
3D Integration coming
June 2017
Projected Performance and Power Requirements
26
Source: Imec ITF May 2017
June 2017
Advanced Packaging is Critical Step in Realizing Future Technology Roadmap
27
Global Foundries indicates 3D may bemore cost effective than 2.5D
• In classical 2D, speed is limited by ever longer interconnect lengths. • Large producers looking for cost effective, multiple die solutions
Source: Qualcomm TSV Conference Grenoble 2017
Intel Mix and Match approachNot all dies use most advanced/expensive node
Source: Intel
Source: Global Foundries Jan 2017
Qualcomm 3D Stacking increases speedat reduced cost
June 2017
30%
24%
18%
10%
3%
15%
0%
5%
10%
15%
20%
25%
30%
35%
2016 % of Revenue
Key Trends Affecting Besi‘s End User Markets
28
• Mobile Internet devices, Computing and Automotive are Besi’s three largest and most rapidly growing end user markets
Source: Company estimates
June 2017
30%
24%
18%
10%
3%
15%
0%
5%
10%
15%
20%
25%
30%
35%
2016 % of Revenue
Key Trends Affecting Besi‘s End User Markets
29
Source: Company estimates
June 2017
Mobile: Proliferation of Internet Connected Devices Will Drive Innovation
30
Source: Ericson Mobility Report Nov 2016
• Mobile unit growth is slowing but features/functionality increasing rapidly• Requires move to more advanced phones and higher network infrastructure
investment
June 2017
Mobile: Adoption of 5G Will Expand Applications and Features With Increased Performance
31
Source: Qualcomm May 17 ITF Conference
June 2017
32
Mobile: Increased Complexity and Density Drive Higher Semiconductor Content
RF PhoneNetwork-Switches-Amplifiers-Filters-Tranceivers Base Band
Processor-Handling allRF
ApplicationProcessor-Handling allapplications
Memory-DRAM-NAND
OtherCommunication-WLAN/WIFI-Bluetooth-NFC
DisplayTouch
Sensors-Temp-Pressure-Fingerprint-3 Axis Gyro
Cameras-Front-Back-Flash
Audio-Amplifiers-Speakers-Microphone
PowerMngt
Rough Mobile Phone Schematic
Source: Tech Insight and Fixit
June 2017
Mobile: Key Component Trends: Baseband/ Application Processor
33
Heart of the mobile phone:- Qualcomm Snapdragon- Apple A10- Samsung Exynos- Mediatek Helio
Key equipment requirements:• FC FO WLP with clear chip
partitioning needed for > 400 Gbps • High precision placement • Multiple dies• Precise tilt control• Microbump pitches of 10um• Very precise molding
Besi products:• 8800 FC/FOWLP• FML/AMS-LM
Source: Imec
From SoC to full partitioningand stacking
Snapdragon835 10 nmSamsung
June 2017
Mobile: Key Component Trends: Sensors & MEMS
34
Devices getting smaller andmore advanced with multiple sensors in one package
Key equipment requirements:• High precision epoxy dispense and
bond line control• High precision placement• Multiple die handling• Very precise molding with open areas
Besi products:• 2100 epoxy die bonder• 2200 MMA• AMS-LM
Fast & high precision bond arm 2100
High precision Epoxy Dispense
June 2017
Mobile: Key Component Trends: RF
35
RF components must address an increasing number of standards, all at lower costGSM/EDGE/CDMA/UMTS/WCDMA/LTE/LTE-A/TD-SCMA/TD-LTE /5G/WIFI/GNSS/NFC
Key equipment requirements:• Handling and integration of smaller,
more fragile and multiple die types (often GaAs)
• Precise epoxy dispense• Singulation of shielded mold
Besi products:• 2100 epoxy die bonder• 2200 MMA• AMS-LM • FSL
Source: Chipworks RF Part Mobile Phone
Source: Infineon
Source: Broadcom/Systemplus
June 2017
Mobile: Key Component Trends: Cameras
36
Cameras have become key selling items for mobile internet devices20 MP+/Dual Cameras/3D recognition
Key equipment requirements:• Complex parts handling• Fast development and production
cycles• Very precise dispensing• Precise curing• Large application knowledge
Besi products:• 2100 epoxy die bonder• 2200 MMA
Source: Henkel
evo 2200 with dual UV Cure
June 2017
30%
24%
18%
10%
3%
15%
0%
5%
10%
15%
20%
25%
30%
35%
2016 % of Revenue
Key Trends Affecting Besi‘s End User Markets
37
Source: Company estimates
June 2017
Computing: Growth Driven by Cloud Services, AI and Data Analytics Applications
38
Source: Intel
Source: Google
Source: Imec
Key equipment requirements:• Sorting and handling of expensive dies• High accuracy• High Speed TCB• Photonics Integration
Besi products:• 2100 • 2200 • 8800• WTT/TTR• DLA• AMS-LM • FSL
June 2017
Computing: And Increased Memory and Storage Needs
39
Data size growing exponentially. Requires:• More memory• New device technologies such as 3D
Nand and xPoint• New configurations such as High
Band Width Memory, Hybrid Memory Cube
Key equipment requirements:• Handling of thin, fragile dies• Advanced TCB process technology
Besi products:• 2100 sD Adv• 8800 FC• AMS-LM• FSL
Source: Imec
Source: Micron
June 2017
30%
24%
18%
10%
3%
15%
0%
5%
10%
15%
20%
25%
30%
35%
2016 % of Revenue
Key Trends Affecting Besi‘s End User Markets
40
Source: Company estimates
June 2017
41
Key equipment requirements:• Increased computing capabilities• Utilization of multiple device types• Higher usage and integration of
sensors• High operating reliability and safety
needs• Exact tracking
Besi‘s full product portfolio addresses this market
Source: Intel
Source: Qualcomm
Auto: Increased Intelligence Requirements Drive Higher Semiconductor Content in Auto Market
June 2017
Auto: Electric Vehicles Will Also Drive High-End Semiconductor Demand
42
Move from combustion to electric engines greatly increases need for advanced electronic content
Key equipment requirements:• Very reliable void-free and diffusion
soldering• New soldering processes• Direct sintering
Besi products:• 2009/2100 solder die bonder• FCL-X/P • Plating systems EPL/EDL/CD
High precision indexer soft soldering
Source: NREL
Source: GM/Car & Driver
June 2017
June 2017
IV.a. TECHNOLOGY UPDATE:DIE ATTACH
43
June 2017 44
Key competitive advantages:• Accuracy 7-10 um with very high reliability and Cpk• Handles multiple and large dies and complete modules• Very flexible with fast transfer from R&D to production
New in 2017: • 4 um accuracy• Iso class 3 cleanliness• Advanced insitu UV Curing
SIP
CAMERASENSORS
AUTOMOTIVE
PHOTONICS
LED
Next Generation evo 2200 Multi Module Die Attach System
June 2017 45
Key competitive advantages:• High accuracy and stability realized in production• High Cpk and reliability• Highest accuracy in QFN, LGA and QFP• Superior in automotive and MEMS by BLT control
New in 2017: • Very fast and extremely clean• Advanced dispensing and bond control• High precision bond head• Thin die handling • Advanced crack detection
Advanced ICs
Memory
MEMS
Fingerprint & CIS
Next Generation 2100Stacked Die Epoxy Die Bonder and FC Bonder
June 2017 46
Key competitive advantages:• Qualified for Qualcomm FC-CSP (AP&BB) since 2008• De facto Fan Out eWLB standard since 2012 • 30% higher productivity• Continued spec improvements • New applications such as saw filters
New in 2017: • Improved vision system• Faster placement software• APO Automatic Placement Optimization 3um • 40% faster speed• See-Through Fluxer
Fan Out
TCB
High Accuracy Flip Chip
Super HighAccuracy
Panel
Next Generation 8800FC/Fan Out/TCB Die Bonder
June 2017
Next Generation TCB Process Technology �
VCB Bonding
47
• TCB is attractive process but slow and expensive
• Introduction of vertical collective bonding with multiple (12) bondheads will speed up total process 5 fold
Step 1:Tacking in TC Bonder
Step 2:VCB in Press
VCB
New bondheadwith auto tilt compensation
New bond unitwith 12 heads
June 2017 48
Key competitive advantages:• Best solder system with best indexer• Continuous upgrading aligned with customer roadmaps
New in 2017: • High Speed dual direct writing solder dispense• Diffusion soldering• Increased speed• Eutectic lead free RF & LEDs• 20 um thin dies for power applications• Ready for die traceability
High Power
Power ICs
Standard Power
Dense LF
Diffusion Soldering
Next Generation Solder Die Bonding Systems
2009 2100
June 2017
IV.b. TECHNOLOGY UPDATE:PACKAGING & PLATING
49
Next Generation AMS-W/LM
New in 2017:AMS-LM
• Fine filler compound handling
• Package height measurement
• Increased speed
System in Package
Exposed Die
Double sided
MEMS
Key competitive advantages:• Standard in molding ultra thin dies• Exposed mold capability for SIP, CPU & MEMS• Superior system quality & mold chase design • Strong position in communication
New in 2017: • Fine filler compound handling• Package height measurement• Increased speed
Miniaturization of Communication Devices Drives Alternative Packages
June 2017 50
Next Generation FML
New in 2017:AMS-LM
• Fine filler compound handling
• Package height measurement
• Increased speed
System in package
Processors
Package on Package
Memory
Key competitive advantages:• 30% cost reduction compared to compression molding• No die swim, narrow gap filling of 50 um• Accuracy placement of 0.1 mm
New in 2017: • Integration with post mold oven system• +/-5 um mold planarity on exposed die• Laser detection for particles (30um)
June 2017 51
Next Generation Fico Compact Line (FCL)
New in 2017:FCL-X/P
• Full traceability for automotive
• Increased Speed
• Inline marking and sorting
Interdigit
Key competitive advantages:• Can handle difficult leadframes • 30% higher productivity• Less conversion in system design
New in 2017: • Full traceability for automotive• Increased speed• In-line marking and sorting
Component Traceability is Key in Auto Market
June 2017 52
Next Generation CD-EDF-EPL Plating Systems
Key competitive advantages:• Very efficient material usage• De facto plating standard• Very high accuracy in plating zone• Active development program• Approved for automotive applications
New in 2017: • Chemical deflash• Durable rotational nozzles for waterjet• No-delamination solutions (chemical/electro deflash)
Interdigit
June 2017 53
Next Generation CPL Plating System
Hetero Junction cells
Bi-facial PERC cells
Key competitive advantages:• Best in class cost of ownership• Process controllability state-of-art• Industry 4.0 compatible• Smaller ecological footprint
New in 2017: • Integrated strip-etch back processes• Bi-facial cell plating
June 2017 54
Technology Summary
• Semiconductor assembly plays an increasingly important role in the development of next generation devices
• Slowing of Moore‘s law requires greater advancements in packaging technology
• Advanced packaging demand continues to expand driven by ever smaller form factors; increased functionality, density, complexity and lower power consumption
• Next generation systems required with higher levels of accuracy for production volumes of <10 nm devices
• Besi product portfolio and process technology at forefront of advanced packaging trends and leading customer roadmaps. Substantial progress made in:
• Fan Out WLP and TCB die attach systems• High speed/high accuracy epoxy die bonding• Camera and sensor system development• Exposed die packaging for both substrate and wafer level• Trim and form systems for auto sector• Ultra fine leadframe plating
June 2017 55
June 2017
V. FINANCIAL REVIEW
56
June 2017
Revenue and Gross Margin Development
57
274255
379
349
375
407
39.7% 39.8%
43.8%
48.8%
51.0%
52.6%
30%
36%
42%
48%
54%
60%
66%
0
50
100
150
200
250
300
350
400
450
2012 2013 2014 2015 2016 LTM*
Gro
ss M
argi
n
€ in
mill
ions
Revenue Gross Margin
* Through March 31, 2017
• Positive trajectory for Besi’s revenue and gross margin development• Revenue CAGR of 10.4% between 2012
and LTM 2017• Gross margins grew by 12.9 points
between 2012 and LTM 2017
• Successful product strategy and operating initiatives have resulted in new baseline for revenue and gross margin levels
June 2017
Operating Expense Development
58
86.9 81.7
86.8 94.8 96.7 98.8
1.0 1.0
7.1
17.7 19.6 18.8
87.9 82.7
93.9
112.5 116.3 117.6
7.6% 7.4%
19.0%
16.6%
20.0%
23.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2012 2013 2014 2015 2016 LTM*
€ in
mill
ions
Base Opex Other Operating Expenses Op Inc Margin
• Strategic initiatives have limited baseline opex growth relative to revenue development• Significant operating leverage in
business model
• Operating margins have increased 16.1 points between 2012 and LTM 2017
• Quarterly baseline opex currently ranges between € 24 to € 26 million
* Through March 31, 2017
June 2017
Profit Development
59
18.2 16.9
64.5
46.9
65.2
81.6
6.6% 6.6%
17.0%
13.4%
17.4%
20.1%
-5%
5%
15%
25%
35%
45%
55%
0
10
20
30
40
50
60
70
80
90
2012 2013 2014 2015 2016 LTM*
€ in
mill
ions
Adjusted Net Income** Adjusted Net Margin
* Through March 31, 2017** Adjusted to exclude: Upward revaluation of tax loss carry
forwards, restructuring charges and net restructuring benefit
• Similarly, net profit generation has increased strongly• Adjusted net income up € 63.4 million
between 2012 and LTM 2017• Net margins have grown from 6.6% in
2012 to 20.1% in LTM
• Through cycle profitability achieved for past 28 quarters
• Profitability of business model greatly enhanced
June 2017
Liquidity Trends
Besi has significantly increased cash flow generation over past five years• Net cash up > 2x between 2012 and
2016• Despite € 164.1 million of dividends
and share repurchases• Increased profits, faster cycle times,
improved working capital management
• € 125 million Convertible Notes positions Besi to capitalize on future growth opportunities, both internal and external
106.489.6
135.3
157.8
304.8 309.0
79.5 71.0
118.0
136.5
168.1175.7
0
50
100
150
200
250
300
350
2012 2013 2014 2015 2016 Q1-17
€ in
mill
ions
Cash and Deposits Net Cash
60
June 2017
Q2-17 Guidance*
Revenue Gross Margin
Operating Expenses
Q1-17 Q2-17 Q1-17 Q2-17
Q1-17 Q2-17
€ 110.2 55.7%
€ 30.5
54%-
56%
40%to
50%
10%to
15%
61
* Guidance issued on 4/25/17
June 2017
Summary
Leading semi assembly equipment supplier with #1
or #2 positions in fastest growing 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.New technology cycle,
expanded use of advanced packaging, execution of
operating initiatives
Committed to enhancing shareholder value.
Attractive capital allocation program
62
June 2017
Financial Calendar
12-Jul-17 2017 CEO Summit, San Francisco
27-Jul-17 2017 Second Quarter Results
7/8-Sep-17 Deutsche Bank TMT Conference, London
14-Sep17Autumn Conference Kepler Cheuvreux in partnership wi th
Rabobank, Paris
1-Nov-17 2017 Third Quarter Results
15/17-Nov-17 Morgan Stanley TMT Conference, Barcelona
63