INVESTOR PRESENTATION
August 2018
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”, “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; 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, 2017; 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.
2August 2018
Agenda
I. Company Overview
II. Market
III. Strategy
IV. Financial Review and Summary
V. Appendix
3August 2018
I. COMPANY OVERVIEW
4August 2018
Besi Overview
• Leading assembly equipment supplier with #1 and #2 positions in key markets. Approximately 35% addressable market share
• Broad portfolio: die attach, packaging and plating
• Strategic positioning in substrate and wafer level packaging
• Global mfg. operations in 6 countries; 2,097 employees worldwide. HQ in Duiven, the Netherlands
Corporate Profile
• LTM revenue and net income of € 628.5 and € 180.8 million
• Cash and deposits at Q2-18: € 395.5 million
• Net cash and deposits at Q2-18: € 110.2 million
• € 459.5 million of dividends and share repurchases since 2011
Financial Highlights*
• Potential growth of <10 micron accuracy <20 nano devices for digital society such as AI, IoT, Big Data, the Cloud as well as Automotive
• 3D imaging and 5G network roll out for Apple and Android device platforms
• China market growth and share gains
• Earnings potential from further European overhead reduction, optimization of Asian production and common parts/platforms
Investment Considerations
5
* As of June 30, 2018.
August 2018
Company History
€ 85.5
€ 628.5
25.9%
57.0%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
0
100
200
300
400
500
600
700
2003 LTM
Gro
ss M
arg
in (
%)
Reven
ue
(eu
ro m
illio
ns)
Revenue Gross Margin
•2000 2002 2005 2009
Die Attach Acquisitions
• Expanded advanced packaging leadership position and market share organically and via acquisitions
• Gained mindshare with key industry leaders
• Growth in China, key customers and electronics supply chains
Products
• 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
Successful Execution of Strategic Plan Initiatives
• Achieved industry benchmark gross and net margins
• Substantial improvement in cash flow generation
• Implemented attractive capital allocation policy
Financial Metrics
6August 2018
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 hS
New
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/PNew
New
• 2009 SSI
• 2100 DS
• 2100 SC
Die Lid Attach• DLA New
• Film & Foil
• Battery
Die Attach
Packaging
Plating In Development
New
New
New
New
7August 2018
Product Positioning
8
Semiconductor Manufacturing Equipment
(2017: $57.7B)*
Front end: $48.0B
(83%)
Assembly: $4.6B
(8%)
Test: $5.2B
(9%)
* Source: VLSI June 2018
** Includes Singulation Systems
Dicing
Semiconductor Assembly Process
Die Attach Wire Bond Packaging Plating
Leadframe Assembly
Substrate
Wire Bond Assembly
Substrate
Flip Chip Assembly/TCB
Wafer Level Packaging
Flip Chip Assembly/ Fan Out
Die Bond Wire BondMolding/
Trim & Form**Plating
August 2018
Customers OEMs End Products
Customer Ecosystem
• Diversified, blue chip customer base, top 10 = 62% of 2017 revenue
• Leading IDMs and subcontractors. 65/35% split in 2017
• Also supply leading fabless companies: Qualcomm, Broadcom, MediaTek via subcontractors
• Long term relationships, some exceeding 50 years
IDMs
Subcontractors
9August 2018
Current Operational Profile
• Development activities in Europe
• Production in Asia
• Sales/service activities in Asia, US and Europe
Sales Office
Production Site
Sales, Production & R&D Site
Leshan
ChengduShanghai
Korea
Taiwan
Philippines
Malaysia
Singapore
Suzhou
Radfeld, (Austria)Steinhausen,
(Switzerland)
Duiven & Drunen,
(The Netherlands)
Chandler
Shenzhen
10
YTD June 30, 2018
Europe/NA Asia
Revenue (MMs) € 106.9 33.8% € 209.1 66.2%
Headcount 581 27.7% 1,516 72.3%
August 2018
Year Ended December 31,
(€ millions, except share data) 2015 2016 2017
HY1
17
HY1
18
Revenue 349.2 375.4 592.8 280.2 316.0
% seq. change (8%) 8% 58% 13%
Gross margin 49% 51% 57% 57% 57%
EBITDA 73.0 89.8 222.8 100.8 114.8
Pretax income 57.1 73.6 199.2 89.6 98.5
Net income 49.0 65.3 173.2 76.7 84.3
Net margin 14% 17% 29% 27% 27%
EPS (diluted) (a) 0.64 0.85 2.17 0.94 1.03
EPS (basic) (a) 0.65 0.87 2.32 1.03 1.13
Dividend per share (a) 0.60 0.87 2.32
Net cash 136.5 168.1 247.6 131.5 110.2
Summary Historical Financials
• YOY Revenue grew by 58% in 2017 and 13% in H1-18:
• Industry upturn accelerated from H2-16 start
• New advanced packaging capacity added by IDMs
• Strong growth in all major end use applications:
• New smart phones/features, auto, cloud server,
memory and high performance computing
• Gained market share
• Strong profit and margin development:
• Market position and efficiencies increased gross margin
to 57%
• Strategic initiatives kept expense growth in check
• Sector leading net margins in excess of 27%
• Cash generation continues to expand:
• Net cash reached € 247.6 million in 2017
• Increased profits, reduced lead times and improved
cash conversion cycle are key factors
• Supports shareholder friendly capital allocation policy.
€ 180 million distributed in Q2-18
11August 2018
(a) Stock split adjusted
Capital Allocation Trends
11.3 12.4
56.945.4
65.3
174.0
2.7
4.0 22.4
22.8
11.3
14.0 12.4
60.967.8
88.1
185.3
0
20
40
60
80
100
120
140
160
180
200
2013 2014 2015 2016 2017 2018*
eu
ro m
illio
ns
Dividends Share Repurchases
Cumulative distributions: € 459.5 MM since 2011*
* Dividend and share repurchases through June 30, 2018.
12August 2018
Current policy:
• Net cash above € 80 million available for dividends and share
repurchases
• Absolute level and mix can vary per annum
• Pay 40-100% of net income/annum in dividends
• Convertible funds available for acquisitions and long term
investment
Expanding share repurchases as % of mix
• Since 2011, mix skewed to dividend distributions
• 1.6 million shares bought (average price € 24.63 or € 39.7 million)
under last share repurchase program
• New € 75 million program initiated in August 2018
• Through October 26, 2019
• ~2x increase current quarterly repurchase rate to ~ € 12 million
Besi Market Information
13
Market
Profile
Share
Ownership
60%
42% 41%
0%
10%
20%
30%
40%
50%
60%
70%
2015 2016 2017
Top 10 Shareholders***(% of shares outstanding)
• BESI
• Euronext Midcap AMX
Symbol/ Index
• € 1.6 billion ($1.9 USD)
• 75 million shares net **
Market Cap*
• Pay out 40-100% of net income per annum
Dividend Policy
* As of August 1, 2018 ** Net of 5.3 million treasury shares. *** Besi estimates
46%30%
20%
17%
20%26%
11%
14% 18%
14%17% 21%
13% 19% 15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017
By Geography
0
2,000
4,000
6,000
8,000
10,000
12,000
0
100
200
300
400
500
600
700
2013 2014 2015 2016 2017
Avg V
ol *
Avg P
rice (
€ thousands)
Vo
lum
e (
tho
usa
nd
s)
Avg. Daily Volume & Liquidity
Other
Europe
ex. NL
UK
US
NL
August 2018
II. MARKET
14August 2018
Assembly Equipment Market Trends
3.0
3.9
3.23.7
4.6 5.1
-22.0%
26.8%
-17.5%
16.1%23.9%
11.8%
-30%
-20%
-10%
0%
10%
20%
30%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2013 2014 2015 2016 2017E 2018E
US
$ b
illio
ns
Assembly Equipment MarketMarket Size YoY Growth Rate
Source: VLSI June 2018
• Assembly equipment market reached record $4.6 billion in 2017
• +23.9% vs. 2016 as per latest VLSI estimate
• Growth anticipated to continue in 2018 although at lower rate than 2017
254.9
378.8
349.2 375.4
592.8
280.2
316.0
-6.9%
48.6%
-7.8%7.5%
57.9%
12.8%
-50%
0%
50%
100%
150%
0
200
400
600
2013 2014 2015 2016 2017 HY1-17 HY1-18
eu
ro m
illio
ns
Besi RevenueRevenue YoY Growth Rate
CAGR
13-17
11%
CAGR
13-17
23%
15August 2018
Die Bonding49.8%
Flip Chip12.4%
Die Sorting4.1%
Singulation4.5%
Presses15.4%
Molds7.2%
Lead Trim & Form5.0%
Plating1.5%
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
66%
Packaging
32%
Plating
2%
Assembly Equipment Market *
(2017: $4.6 billion)Besi Addressable Market *
(2017: $1.8 billion)
* Source: VLSI June 2018
Wire Bonding21.6%
Die Attach31.1%Packaging
15.7%
Plating0.6%
Other Assembly
(Inspection, Dicing)31.0%
16August 2018
New Era of Chip Growth and Applications Will Drive Greater Computing and Data Needs
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
3 6 9 12 15 18 21 24
August 2018 17
Which Will Require Increased Density, Higher Accuracy and Smaller Form Factors
Today => TomorrowFront End
Transistor scaling
Lithography
New structures 3D
Back End Assembly
More contacts
Smaller pitches
Thinner/denser
more complex packages
Stacked structures 3D
WLP/FOWLP packages
From simple Wire Bond to BGA/Flip Chip to complex 3D structures with TSVs,
microbumps and thin dies
to WLP/FOWLP packages
without substrate interposer
18August 2018
And Require Changes in Assembly Processes and Equipment
New Assembly Structures
• 2D/2.5D/3D structures
• Die to Die or Die to Wafer Stacking
• Integration with Photonics
Assembly Equipment
• High accuracy 200nm and beyond
• Super clean
• Photonic element handling
• TCB and Direct bonding
• Substrate-less solutions - Fan Out
• Large Panel WLP for low cost or specific high-end requirements
Sources: IMEC, GF, Chipworks
August 2018 19
Advanced Packaging Critical to Next Generation Applications
20
Greater Miniaturization
Greater Complexity
Increased Density
Higher Performance
Lower Power Consumption
Higher Accuracy
Die Bond
Datacon 8800 TC
Datacon 8800 CHAMEO fan-out
Esec DB2009
Esec DB2100
Packaging
Fico AMS-LM
Fico Singulation Line
FML wafer molding
Fico Compact Line – X
Mobile Revolution
• Mobile Internet
• Messaging
• Social Media
• Shared Economy
• Gaming
• Geo-location
• Audio/Video
• Auto electronics
Digital Society
• Smart mfg, cities, mobility and homes
• Driverless cars
• Data Mining
• Cloud Servers
• IoT
• Wearable devices
• Artificial Intelligence
• VR/AR
• High performance computing
• MEMS
August 2018
Besi Portfolio Well Positioned by Node Size and Accuracy
15%
40%
20%
25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Typical Application Besi Equipment
Automotive, SiP
Power
Softsolder, Epoxy, MultiModule,
Flip Chip Die Bonders
Packaging
Plating
IOT
General ICs
Softsolder, Epoxy, MultiModule,
Flip Chip Die Bonders
Packaging
Plating
Computer, PC, Mobile Epoxy, MultiModule, Fan Out
Flip Chip Die Bonders
Packaging
High Performance Computing
Memory
Epoxy, TCB, D2W, Fan Out
Flip Chip Die Bonders
Packaging
Accuracy
Micron
10+
10
7
3
Size
NM
28+
28
17
10
Estimated % of 2017 Revenue
• 75% of Besi equipment revenue advanced packaging as per VLSI definition
• 55% equipment revenue is < 7 micron accuracy & sub 17 nanometer
• Most rapidly growing segment of the market
August 2018 21
Advanced Packaging Unit Volume and Market Share Are Increasing
22
• Advanced packaging applications have grown
significantly since 2010
• Currently, 36% of wafers use advanced
packaging interconnects
• Leading growth segment of assembly equipment
market
• Flip chip and WLP are leading AP assembly
processes next five years
Source: VLSI February 2018
13%
19%
26%
31%
32%
34%36%
37%38%
39%40%
42%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
-
5
10
15
20
25
30
35
40
45
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022A
P M
ark
et
Sh
are
%
M w
afe
rs, 3
00
MM
Eq.
Advanced Packaging Silicon Demand Growth & Market Share 2011 - 2022
TSV (3D & 2.5D) Fan-Out Wafer Level Packaging
Wafer Level Packaging Flip Chip
Advanced Packaging Unit Market Share (%)
August 2018
And Is Reflected in Besi End User Application Trends
Source: Company Estimates
23
• Mobile Internet devices, Computing
and Automotive are largest end
markets and most rapidly growing
• New device introductions in 2017
boosted mobile internet share to
35%
• Computer/PCs growing due to high
end cloud servers, memory and high
performance computing
• Steady growth in automotive reflects
ever increasing electronic content
• Service/spare parts is roughly 11%.
Relatively stable growth driver
35%
25%
17%
10%
2%
11%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2017 % of Revenue
August 2018
Besi Has Gained Share In Its Addressable Markets
• Gained significant market share in 2017 based on VLSI estimates
Source: VLSI June 2018 and Besi estimates
2013 2014 2015 2016 2017
Addressable Market ($ Million) $1,200 $1,616 $1,216 $1,453 $1,844Besi Market Share 26.4% 30.5% 31.3% 28.6% 36.0%
Total Die Attach 31.9% 37.1% 37.5% 35.4% 44.2%Die Bonding 39.1% 40.3% 38.9% 35.3% 48.4%
Flip Chip 24.1% 33.2% 31.5% 33.0% 28.9%Die Sorting 6.5% 14.9% 47.7% 44.6% 39.8%
Total Packaging 15.9% 17.9% 18.1% 14.9% 17.1%Molding 19.1% 19.9% 15.6% 14.1% 16.0%
Lead Trim & Form 17.6% 19.7% 27.8% 22.9% 30.3%Singulation 5.1% 9.4% 16.8% 10.6% 7.9%
Total Plating 82.3% 75.4% 78.5% 85.5% 78.1%
Total Assembly Equipment 10.7% 13.0% 12.2% 11.3% 14.5%
24August 2018
And Has a Large Share of Wallet at Key Customers
25
• Customers are largest semi mfrs.
engaged in most advanced packaging
applications
• Significant share of wallet up to 100%
• Customer market shares vary p.a. due
to capacity needs, purchasing and
development cycles
• Primary competition in Besi’s
addressable markets:
• Die Attach: ASM-PT, Fasford,
Shinkawa, Toray
• Packaging: Towa, Hanmi, ASM-PT
N/B No reported bookings for Besi nor its competitors
• Fabless semiconductor companies such as Qualcomm, Broadcom and Mediatek have assembly done by subcontractors.
Share of Wallet
2014 2015 2016 2017 2014 2015 2016 2017
Subcons Subcons
ASE 70% 80% 70% 55% ASE 35% 25% 15% 40%
Amkor 90% 95% 95% 75% Amkor 20% 25% 10% 65%
JCET/Stats 70% 30% 60% 85% JCET/Stats 50% 5% 30% 50%
SPIL 90% 100% 60% 65% SPIL 20% 25% 25% 0%
TFME (NFME/Nantong) 100% 100% 100% 90% TFME 0% 35% 0% 100%
UTAC 100% 100% 100% 100% UTAC N/B 100% 20% 100%
Unisem 100% 100% 100% 75% Unisem N/B 100% N/B N/B
Cowell/Foxconn 100% 100% 100% 100% Cowell/Foxconn N/B N/B N/B N/B
IDM's IDM's
Skyworks 100% 100% N/B 80% Skyworks 40% 90% 25% 5%
ST Micro 80% 95% 85% 90% ST Micro 40% 45% 45% 85%
Infineon 100% 90% 75% 90% Infineon 90% 95% 20% 50%
Micron 45% 80% 100% 50% Micron 100% 100% N/B 15%
NXP 100% 100% 90% 80% NXP 100% 55% 90% 80%
Bosch 100% 95% 100% 100% Bosch 100% 100% N/B N/B
Qorvo 100% 100% 100% N/B Qorvo 100% 100% 90% 0%
Above customers as % of
revenue Besi65% 42% 47% 58%
Above customers as % of
revenue Besi66% 73% 69% 67%
Die Attach Packaging
August 2018
What Drives Besi’s Business?
August 2018
Macro GDP trends
Selection of IDM customers with
greatest mind share and potential for
success
Deliver reliably most demanding technical
specs in a 24/7 production
environment
Provide customers competitive cycle
times and scalability to meet ever shorter
product ramps
Timing of customer road maps and
capital spending programs
26
Besi Addressable Market Share of Mobile Increasing
Besi technology can support virtually all device platforms utilized in latest mobile devicesSource: Tech Insights
27August 2018
Component Illustration
Growth in features
vs. units is driving
revenue
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 June 2018
• Move to <20 nanometer can only be accomplished by use of flip chip die bonding vs. wire bonding process
• Flip chip revenue represents 25% currently of total market of $1.3 billion as per VLSI
• Flip chip expected to gain share over next 5 years
• Growth could accelerate depending on adoption rates by key IDMs/subcons
CAGR 2017 - 2022
Flip Chip 8.0%
Wire Bond 3.9%
Flip Chip$497 29%
Wire Bonding$1,199 71%
2022
Flip Chip$338 25%
Wire Bonding
$991 75%
2017
28August 2018
Fan Out WLP and TCB/TSV Are Emerging Process Technologies
Enabling technology for high
end memory and optical
applications
Next step beyond Flip Chip
TCB/TSV (Substrate Based)Fan Out WLP (Wafer Level)
Fan Out Advantages:
• Wafer scale. Eliminates expensive substrate
• No wire bonding
• More cost effective than TSV in many applications by
factor of 2x
Leading market position:
• Installed base of ~65 systems in production
• Estimated 70% market share
• Principal Competition: Shibaura
32 Stacked Die Capability
Besi TCB Advantage
• 32 die stack at <5 micron accuracy (current market:
4-8 die stack)
• High accuracy over large area placement
• Highly stable
• Industry leading throughput
• Compact form factor
Leading market position
• Installed base of 40 systems in production
• Estimated 25% market share of active systems
• Highest penetration of memory and GPU markets
• Principal competition: Toray, ASM PT, Shinkawa
Preferred process for high data
transfer and optical devices in IoT,
mobile and power
29August 2018
III. STRATEGY
30August 2018
Summary Strategy
• eWLB, TCB, panel size and ultra thin die bonding
• Large area, ultra thin, wafer level molding
• Solar and lithium ion battery plating
Maintain best in class tech leadership. Expand capabilities for:
• Leverage technology leadership to grow addressable market share to 40-45% in next 5 years
• Introduce next generation products to win business from competitors
• Increase mainstream penetration of global supply chains with high quality mid-range products
• Expand presence and share of wallet in China via production and sale of full range of Besi die attach, packaging and plating systems
• Expand software and process support in Asia to better serve installed base
Increase market presence and share in addressable markets
• Continue West-East personnel transfer. Target 80% Asian headcount
• Continue to reduce euro based costs
• Target more local production. Shorten cycle times
• Accelerate common platform/parts development
• Seek € 15 million cost savings over next five years
• Target 53-57% through cycle gross margin
Achieve a more scalable, flexible and lower cost manufacturing model
• Emphasis on wafer level processing and/or companies which can further leverage Besi’s AP platform
Acquire companies with complementary technologies and products
31August 2018
Favorable Drivers:
Digital Society
Big Data
Smart Everything
Cloud Expansion
Revenue Opportunities
32
Roll out of 3D imaging and other features to 4G and 5G mobile supply chains
Ongoing push for ever greater cloud memory/logic capacity
Steady growth of electronic content and safety requirements in automotive
Substantial expansion of Chinese semiconductor infrastructure as per new five year government plan
Introduction of complete Besi portfolio for production and sale in local Chinese market
Renewed interest in WLP, Panel WLP and TCB processes by customers
Expanding spares/service business due to installed base growth and centralized operations
August 2018
• Increase Share of Wallet of existing and new customers with each new generation of Besi’s
advanced packaging portfolio
• Reduce unit cost to expand mainstream system sales and gain share vs. competitors
• Sell next generation equipment to increase SoW in the Memory/Logic space, in particular to:
Customer Market Share Growth Opportunities
August 2018 33
Asian Production Transfer Has Reduced Break Even Revenue Levels and Improved Cash Flow Generation
Asian Production Has Significantly Expanded
Leading to Lower Fixed European + NA Headcount
And Reduced Break Even Revenue Levels
Improved Cash Generation
741
502
802 1,222
1,543
1,724
0
400
800
1,200
1,600
2,000
2011 2017
Europe/NA Fixed HC Asia Fixed HC
270
209
0
50
100
150
200
250
300
2011 2017
€ millionsHeadcountShipments
(32.3%)
(22.6%)
-
289 396
1,301
396
1,590
43%
99%
0
400
800
1,200
1,600
2,000
2010 2017
China Other Asian % Direct
49
168
183
107
0
20
40
60
80
100
120
140
160
180
2011 2017
Total Cash Flow from Operations
Cash Conversion Cycle
€ millions
Cash Conversion
Cycle Days
34August 2018
Materials Cost Reduction Is Also a Key Priority
• 80% of material now purchased in Asia
• Asian supply chain expansion:
• Enhances revenue scalability (+/-)
• Limits Besi capex and inventory investment
• Reduces personnel, transport and logistics costs
Supply Chain Actions
• Redesign products for common parts, platforms
• Increase standardization
• Lower unit cost, design and maintenance hours
• Shorten cycle times
Development Actions
53-57% Thru
Cycle Gross
Margin
• Management reviews progress weekly component by component
Material costs are largest single cost = ~40% of revenue
35August 2018
Workforce Has Become More Asia Centric, Scalable and Flexible
1,404 1,489 1,489
1,549 1,724 1,754 1,754
57%60%
64%
67%
71% 71% 72%
43%40%
36%
33%
29% 29% 28%25%
35%
45%
55%
65%
75%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2013 2014 2015 2016 2017 Q1-18 Q2-18
Headcount
Europe/NA Fixed HC Asia Fixed HC Asia % Europe/NA %
Fixed Headcount
Total Headcount
• Asia now represents 72% of total fixed
headcount, up from 57% in 2013
• European and NA fixed headcount continues
to decline:
• -33.2% since 2011
• -9.8% vs. 2015
• Revenue scalability aided by Asian temp
workers
603 591 540 508 502 500 495
801 898 949 1,041 1,222 1,254 1,259
55 143 50
120
316 383 343
1,4581,632
1,5391,669
2,0402,137 2,097
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
500
1,000
1,500
2,000
2,500
2013 2014 2015 2016 2017 Q1-18 Q2-18
Tem
p %
of
Tota
l
Headcount
Europe/NA Fixed HC Asia Fixed HC Temporary HC Temp % of Total
36August 2018
Besi’s Asian Expansion Supports Future Growth
37
Units Shipped Gross Margin
82 101
625495
68218
236
481
423
4591,434
1,754
0
400
800
1,200
1,600
2,000
2013 Q2-2018
Fixed Headcount by Country
Other Europe/NA Singapore China Malaysia
+8.5%
+104%
+221%
-20.8%
33139
289
633
675
1,301
48.8%
51.0%
57.1%
45%
47%
49%
51%
53%
55%
57%
59%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2015 2016 2017
Asian Production Trends
Chinese Shipments Malaysian Shipments Total Gross Margin
August 2018
Besi Strategic CSR Objectives
38
CSR Achievements 2017
Improvement in KPI metrics for supply chain activities
Conducted surveys:
Company wide employee engagement
Customer satisfaction
First time participation in:
Carbon Disclosure Project
Transparency Benchmark by Dutch Ministry of Economic
Affairs
CSR Objectives
Safeguard safe and healthy working
conditions Maintain best practices
environmental and ethical behavior
Reduce environmental
impact of products and operations
Promote employee
talent, training and diversity
Conserve natural
resources
Develop sustainable
supply chain. Minimize impact of conflict
materials
Reduce packaging,
waste, transportation
& energy
Responsible tax practices
in all jurisdictions
✔
✔
✔
✔
✔
✔
✔
August 2018
IV. FINANCIAL REVIEW AND SUMMARY
39August 2018
€ 280.2
€ 316.0
27.4% 26.7%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
40
80
120
160
200
240
280
320
360
HY1-17 HY1-18
Net
marg
in %
Revenue (
euro
mill
ions)
Revenue Net Margin
Gross Margin
OPEX
Headcount
Effective Tax Rate
+92
=
+9.5%
-0.2 points
€ 154.9
€ 161.1
23.9%
29.3%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
20
40
60
80
100
120
140
160
180
Q1-18 Q2-18
Net
marg
in %
Revenue (
euro
mill
ions)
Revenue Net Margin
-40
-3.4 points
-18.7%
=
Solid HY1-18 and Sequential Quarterly Performance
40
Gross Margin
OPEX
Headcount
Effective Tax Rate
16.3% 12.9%
2,137 2,097
€ 39.1 MM € 31.8 MM
56.5% 56.5%
+4.0%
Q2-18/Q1-18
€ 37.1
+5.4 points
HY1-18/HY1-17
€ 84.3€ 76.7
14.4% 14.4%
2,005 2,097
€ 64.7 MM € 70.8 MM
56.7% 56.5%
+12.8%
- 0.7 points
€ 47.2
August 2018
HY1-18 Performance Varies by Besi End User Market
41
• Most Besi end markets continued
to grow favorably in HY1-18:
• Auto
• China
• Computing
• Spares/Service
• Mobile was hurt by Q2-18 slow
down in high end smart phone
orders
• Customers digesting significant
capacity added in 2017 and Q1-18
• Roll out of advanced features
delayed
35%
25%
17%
12% 11%
2017 2018E 2017 2018E 2017 2018E 2017 2018E 2017 2018E
Estimated Revenue % By End User Application
Mobile Computing Auto Industrial/LED Spares/Service
Growth
Drivers
• Added features and
functionality
• Unit growth
• Timing and success of
new device intros
• Emerging market
expansion
• Cloud servers/apps
• AI/deep learning
• Big data
• Robotics
• High performance
computing
• Increasing electronic
content
• Increased safety
• Driverless and
electric cars
• Smart factory &
homes
• Surveillance
• Lighting
• Power control/
inverters
• Efficient appliances
• IOT
• Growth of installed
base
• Increased Asian
service and support
• Centralization in
Singapore
CAGR
2018-
2022*
Premium Phones +2%
Basic Phones +1%
Server + 7%
SSD +15%
Tablet -3%
PC Hybrid +9%
PC Desktop/
Notebook -6%
+11% +10%
* 2018 – 2022, Gartner April 2018
August 2018
Liquidity Trends
Cash flow generation has significantly improved over
past five years:
• Has supported shareholder friendly capital allocation:
• € 428.6 million of dividends and share repurchases
2013-2018
• Total cash of € 395.5 million & net cash of € 110.2 million
as of Q2-18
• ~180 million of dividends and share buy backs in Q2-18
• New € 75 million buy back program as per August 2018
€ 300 million total Convertible Note issuance provides
solid base to fund growth opportunities:
• 1.33% blended coupon
• 6.0 year blended average maturity
• Minimal operating restrictions
89.6
135.3
157.8
304.8
527.8
571.0
395.5
71.0
118.0 136.5
168.1
247.6
290.1
110.2
0
100
200
300
400
500
600
2013 2014 2015 2016 2017 Q1-18 Q2-18
eu
ro in
mill
ion
s
Cash and Deposits Net Cash
42August 2018
Currency Exposure Trends
43
Currency Exposure (2015) Forex Financial Impact
• USD revenue mix % increasing as customer base expands in Asia and US
• Cost exposure shifting to Asia:• Asian costs grew to 49% of 2017 total from 30% in 2013• EUR and CHF should continue to decline as % total cost• Production transfer increases importance of MYR, CNY and SGD
Revenue Expenses
2015 2016 20172017 ∆
vs. €**2015* 2016 2017
2017 ∆
vs. €**
Euro 29% 25% 18% 30% 26% 21%
US dollar 70% 74% 82% 5% 5% 9%
Swiss franc - - - 23% 21% 19%
Malaysian ringgit - - - 28% 30% 31%
Chinese renminbi - - - 7% 11% 13%
Singapore dollar - - - 4% 4% 5%
Other 1% 1% - 3% 3% 2%
Total 100% 100% 100% 100% 100% 100%
* Excludes restructuring benefit, net in 2015.
** Currency variance in 2017 based on average forex rates vs. the euro
August 2018
Operating Expenses
€ 31.8
Q2-18 Q3-18
YTD-17 YTD-18
Gross Margin
57.4%
55%
-
57%
Guidance Q3 and Nine Months 2018
44
Q2-18 Q3-18
Gross Margin
56.5%54%
-
56%
Revenue
Q2-18 Q3-18
€ 161.1-25%
-
-30%
Revenue
YTD-17 YTD-18
€ 439.50%
-
-2%
Operating Expenses
€ 95.0
+8%
YTD-17 YTD-18
Q3-18/Q2-18 YTD-18/YTD-17*
* Through Q3
Approx.
Equal
August 2018
• Disciplined strategic focus on most rapidly growing areas of advanced packaging space has
created an industry leader
• Assembly market ever more critical step in semi production and value chain, particularly for the
emerging digital society
• Long term secular trends in place to drive continued growth in advanced packaging
• Technology leadership, scalability and competitive lead times have greatly increased Besi’s
market presence and financial performance
• Successful Asian production and supply chain expansion has been a game changer
• Market presence has grown and diversified geographically via success with key IDM
customers and their supply chains
• Attractive capital allocation policy rewards shareholders for their investment
• Timely financings have positioned us well to capitalize on acquisition opportunities over the
next five years
Summary
August 2018 45
V. APPENDIX
46August 2018
Quarterly Revenue/Gross Margin Trends
110
170159
153155
161
117
55.7%
57.3%
58.7%
56.3% 56.5% 56.5%
55.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
0
20
40
60
80
100
120
140
160
180
200
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18*
Gro
ss M
arg
in %
eu
ro in
mill
ion
s
Revenue Gross Margin
* Midpoint of guidance: Revenue -25%-30% vs. Q2-18, Gross Margin between 54-56%
47August 2018
206
166 168 164
215
140
2.2
0.8
1.0 1.0
1.3
0.5
0
50
100
150
200
250
0.0
0.3
0.5
0.8
1.0
1.3
1.5
1.8
2.0
2.3
2.5
Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 (a)
Besi Backlog Besi Book to Bill
Book to Bill Ratio Backlog (euro millions)
2017-2018 Quarterly Backlog and Book to Bill Trends
48August 2018
(a) Includes € 28 million of order cancellations in Q2-18
Step Function Growth in Revenue and Gross Margin Since 2006
49
164
302
424
34.1%
39.5%
51.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
100
200
300
400
500
600
700
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Revenue Gross Margineuro millions
4 year
averages
August 2018
Base Line Operating Expense Trends
50
25.6 29.7
27.1 31.2 31.7 30.7
4.9
4.4
3.3
3.0
7.4
0.9
30.5
34.1
30.4
34.2
39.1
31.6
0
5
10
15
20
25
30
35
40
45
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18
Base Opex Other Opex
Baseline Opex 25.6 29.7 27.1 31.2 31.7 30.7
As % of Revenue 23.2% 17.5% 17.0% 20.4% 20.5% 19.1%
Other Operating Expenses
Capitalization of R&D (1.9) (1.8) (1.2) (1.8) (2.6) (3.4)
Amortization of R&D 2.0 1.9 1.9 2.1 2.1 2.1
Capitalization & Amortization , net 0.1 0.2 0.8 0.3 (0.5) (1.3)
Variable Pay (a) 4.4 4.0 3.2 3.9 9.5 3.3
Restructuring cost/(benefit) - - - - - 0.1
Forex (b) and other 0.4 0.2 (0.7) (1.2) (1.6) (1.2)
Subtotal 4.9 4.4 3.3 3.0 7.4 0.9
Total Opex 30.5 34.1 30.4 34.2 39.1 31.6
As % of Revenue 27.7% 20.1% 19.1% 22.3% 25.2% 19.6%
(a) Includes both short term and long term incentive comp
(b) Year over year variance per quarter
August 2018
Net Income Trends
51
€ 24.3
€ 52.4 € 52.9
€ 43.6
€ 37.1
€ 47.2
€ 4.8
€ 4.7 € 3.7
€ 4.3
€ 10.0
€ 3.8
€ 29.1
€ 57.1 € 56.6
€ 47.9 € 47.1
€ 51.0
22.0%
30.8%
33.2%
28.4%
23.9%
29.3%
0%
10%
20%
30%
40%
50%
60%
0
10
20
30
40
50
60
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18
euro
in m
illio
ns
Net Income Variable Compensation (a) Net Margin
(a) Includes variable compensation from both cost of goods sold and operating expenses.
August 2018
Cash Generation Trends
52
18.1
73.3
86.5
98.7
168.2
208
149
169
127
107
0
20
40
60
80
100
120
140
160
180
2013 2014 2015 2016 2017
Cash Conversion Cycle Days
euro millions
Total Cash Flow from Operations Cash Conversion Cycle*
* Cash Conversion Cycle = Avg. Days Inventory Outstanding + Avg. Days Sales Outstanding – Avg. Days Payable Outstanding.
August 2018