INVESTOR PRESENTATION Q3-2015 RESULTS OCTOBER 22, 2015 · October 22, 2015 Page 1 INVESTOR PRESENTATION Q3-2015 RESULTS OCTOBER 22, 2015 . October 22, 2015 Page 2 Safe Harbor Statement

October 22, 2015 Page 1

INVESTOR PRESENTATIONQ3-2015 RESULTS

OCTOBER 22, 2015


Safe Harbor Statement

This presentation contains statements about management's future expectations, plans and prospects of our business thatconstitute forward-looking statements, which are found in various places throughout the press release, including , but notlimited to, statements relating to expectations of orders, net sales, product shipments, backlog, expenses, timing ofpurchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use ofwords 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 lookingstatements contain these identifying words. The financial guidance set forth under the heading “Outlook” constitutes forwardlooking statements. While these forward looking statements represent our judgments and expectations concerning thedevelopment of our business, a number of risks, uncertainties and other important factors could cause actual developmentsand results to differ materially from those contained in forward looking statements, including the discovery of weaknesses inour internal controls and procedures; our inability to maintain continued demand for our products; the impact on ourbusiness of potential disruptions to European economies from euro zone sovereign credit issues; failure of anticipatedorders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand forsemiconductors and our products and services; failure to adequately decrease costs and expenses as revenues decline,loss of significant customers, lengthening of the sales cycle, incurring additional restructuring charges in the future, acts ofterrorism and violence; inability to forecast demand and inventory levels for our products, the integrity of product pricing andprotection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, currencyfluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturingoperations; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations;those additional risk factors set forth in Besi's annual report for the year ended December 31, 2014 and other key factorsthat could adversely affect our businesses and financial performance contained in our filings and reports, including ourstatutory consolidated statements. We are under no obligation to (and expressly disclaim any such obligation to) update oralter our forward-looking statements whether as a result of new information, future events or otherwise.


Table of Contents

I. Key Highlights

II. Financial Review

III. Strategic Highlights

IV. Outlook


I. KEY HIGHLIGHTS

I. KEY HIGHLIGHTS


Key Financial Highlights

• € 72.1 million :• -30.9% vs. Q2-15• -30.3% vs. Q3-14

Revenue

• € 74.9 million :• -18.5% vs. Q2-15• -17.6% vs. Q3-14

Orders

• € 6.3 million:• -59.4% vs. Q2-15 (€ 15.5 million)• -70.7% vs. Q3-14 (€ 21.5 million)

Net Income

• Net cash of € 109.0 million• +€ 17.6 million (+19.3%) vs. Q2-15

Liquidity

Besi Reports Net Income of € 6.3 Million and € 39.3 Mi llion for Q3-15 and YTD-15, Respectively. Net Cash Position Expands to € 109.0 Million

Q3-15 YTD-15

• € 271.4 million :• -6.3% vs YTD-14

Revenue

• € 271.0 million :• -16.9% vs. YTD-14

Orders

• € 39.3 million, -23.5% vs. YTD-14 (€51.4 million)

Net Income

• Net cash +€ 22.9 million (+26.6%) vs. Q3-14

Liquidity


Gross Margin

OPEX

Headcount

Effective Tax Rate

10.2% 13.3%

1,649 1,628

€ 23.0 MM

€ 28.7 MM

-1.3%

+3.1%

+24.8%

45.3% 48.7%

-30.3%

-12.1 points

Q3-14/Q3-15 YTD-14/YTD-15*

+3.4 points

€ 6.3

Gross Margin

OPEX

Headcount

Effective Tax Rate

10.0% 12.6%

1,649 1,628

€ 69.1 MM

€ 86.0 MM

43.8% 48.5%

-1.3%

+2.6 points

+24.5%

+4.7 points

-3.2 points

€ 39.3€ 51.4

Solid Profit and Margin Development In Industry Downturn

€ 21.5

* Includes net restructuring benefit of € 3.3 million

-6.3%


II. FINANCIAL REVIEW


Revenue/Order Trends

Quarterly Trends

YTD Trends

53.1

70.0

116.2

103.5

89.0 94.9

104.3

72.1

57.2

111.1

124.2

90.9 81.4

104.2

91.9

74.9

0

20

40

60

80

100

120

140

Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3-2015

(eur

o in

mill

ions

)

Revenue Orders

Q3-15 vs. Q2-15• Revenue: € 72.1 million (-30.9%)

• Lower die attach and molding systems for smart phone, tablet and mainstream electronics• Post large 2014 industry capacity build • Customer order push-outs

• Partial offset:• +TCB, +die sorting, +solar plating and

+singulation systems

• Orders: € 74.9 million (-18.5%)• Broad based reduction in smart phone and other

advanced packaging applications • Partial offset: +TCB, + die sorting + singulation • +€ 6.6 million (+13.3%) IDMs, -€ 23.6 million

(-55.8%) subcontractors

Q3-15 vs. Q3-14• Revenue: -€ 31.4 million (-30.3%)• Orders: -€ 16.0 million (-17.6%)• Similar trends

YTD-15 vs. YTD-14• Revenue: -€ 18.3 million (-6.3%)

• Lower advanced packaging, mainstream electronics and automotive

• Partial offset: +TCB, +die sorting, +T&F and +solar plating

• Orders: -€ 55.2 million (-16.9%)


Gross Margin Trends

Quarterly Trends

YTD Trends

Q3-15 vs. Q2-15• 48.7% vs. 47.9% • Exceeded Q3 guidance (45-47%)

• Asian production and supply chain transfer plus favorable forex benefited material and labor efficiencies despite 30.9% revenue decrease

• Increase in euro vs. Besi’s principal currencies particularly MYR

Q3-15 vs. Q3-14 • 48.7% vs. 45.3%

• Asian headcount and supply chain transfer• Net forex benefits, particularly +USD/euro

YTD-15 vs. YTD-14 • 48.5% (48.2% ex-restructuring) vs. 43.8%• Increased % Asian workforce and supply chain• Forex benefits: +USD and -MYR vs. euro

* Excludes net restructuring benefit


Forex Influence on Recent Quarterly Results

RevenueCost and Expenses

Euro 34% 28%

US dollar 65% 4%

Swiss franc - 20%

Malaysian ringgit - 40%

Other 1% 8%

Total 100% 100%

Q3-15/Q2-15 Q3-15/Q3-14 YTD 15/YTD 14

MlnEuro Margin

MlnEuro Margin

MlnEuro Margin

Revenue -1.4 +8.1 +34.8 (USD/EUR)

COGS +0.2 +0.8 +2.4 (USD/EUR)

-3.6 +2.7 +20.4(MYR/EURCHF/EUR)

-3.4 +3.5 +22.8

Gross Profit

+2.0 +2.8% +4.6 +6.4% +12.0 +4.4%

Opex -0.2 +0.9 +4.3 (CHF/EUR)

Net +2.2 +3.7 +7.7

Currency Exposure (2014) Forex Financial Impact


Operating Expense Trends

Quarterly Trends

48.0 57.3

20.2

31.31.0

-2.6

69.1

86.0

-10

10

30

50

70

90

110

2014 2015

(eur

o in

mill

ions

)

Restructuring/Other R&D SG&A

YTD Trends

Q3-15 vs. Q2-15• -€ 3.3 million (-10.3%)

• Slightly better than Q3 guidance• -€ 2.7 million personnel

• headcount reduction• € 0.8 million lower incentive comp• € 0.2 million lower CHF vs. euro

• -€ 0.6 million lower travel and higher R&D grants

Q3-15 vs. Q3-14• +€ 5.7 million (+24.8%)

• + € 1.9 million personnel • Includes € 0.9 million higher CHF vs. euro

• + € 1.7 million of net incremental amortized R&D, mostly TCB related

• + € 0.6 million warranty

YTD-15 vs. YTD-14• +€ 16.9 million (+24.5%)

• +€ 10.4 million of higher personnel related expenses • +€ 4.3 million higher CHF vs. euro• +€ 2.7 million incentive comp

• +€ 5.6 million net R&D amortization costs

* Excludes net restructuring benefit


Quarterly Base Line Operating Expense Trends

20.9 22.0 21.4 22.5 22.2 26.1 23.9

0.6 2.6 1.7

2.2 3.1

5.9 4.8

21.5 24.6

23.1 24.7 25.3

32.0

28.7

0

5

10

15

20

25

30

35

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Base Opex Other Operating Expenses Total

Baseline Opex 20.9 22.0 21.4 22.5 22.2 26.1 23.9

Other Operating Expenses

Capitalization of R&D (2.8) (2.4) (2.0) (2.1) (1.5) (1.4) (1.2)

Amortization of R&D 1.1 1.2 1.3 1.2 1.7 2.2 2.3

Capitalization & Amortization , net (1.7) (1.2) (0.7) (0.9) 0.2 0.8 1.0

Forex CHF/EUR 0.0 0.0 0.0 0.0 1.9 1.5 0.9

Restructuring cost/(benefit) 0.2 0.8 0.0 0.0 (3.0) 0.1 0.2

Variable Pay 2.1 3.0 2.4 3.1 4.0 3.5 2.7

Subtotal 0.6 2.6 1.7 2.2 3.1 5.9 4.8

Total 21.5 24.6 23.1 24.7 25.3 32.0 28.7


Net Income Trends

Quarterly Trends

YTD Trends

• Q3-15 net income of € 6.3 million • 8.7% net margin

• -€ 9.2 million vs. Q2-15• -30.9% revenue• Slightly higher effective tax rate • Partial offset: improved gross margins

and lower operating expenses

• -€ 15.2 million vs. Q3-14• -30.3% revenue, higher opex and

slightly higher effective tax rate • Partial offset: improved gross margins

• YTD-15 net income of 39.3 million• -€ 12.1 million vs. YTD-14 • Net margin of 14.5% vs. 17.7% in

YTD-14

• Tax rate up slightly in 2015 due to absence of Q2-14 tax benefit ($700k)• 12.6% in YTD-15 vs. 10% in YTD-14

* Quarterly results show net restructuring (€ 3.3 million) and deferred tax benefits (€ 7.5 million) in Q1-15 and Q4-14, respectively, and € 2.0 million non recurring charge in Q4-13. YTD-15 results include net restructuring benefit of € 3.3 million

51.4

39.3 *

17.7%14.5%

-5%

5%

15%

25%

35%

0

10

20

30

40

50

60

2014 YTD 2015 YTD

(eur

o in

mill

ions

)

Net Income ex. NR


Liquidity Trends

Q3-15 vs. Q2-15• Net cash +€ 17.6 million (+19.3%) to € 109.0

million

Q3-15 cash movements

Principal sources of cash• € 20.3 million cash from operations

Principal uses of cash• -€ 1.2 million capitalized R&D• -€ 1.0 million capex

Q3-15 vs. Q3-14• Net cash +€ 22.9 million (+26.6%)

• Profit plus decreased working capital requirements

• 1.0 million (3%) share buyback announced• 65.6k shares purchased to date• € 0.9 million


III. STRATEGIC HIGHLIGHTS


Assembly Equipment Market Trends

• VLSI recently downgraded 2015 and 2016 forecasts significantly• Growth anticipated to reaccelerate in 2017 and 2018• Besi revenue growth exceeding assembly market in 5 of past 6 years

326.9

273.7 254.9

378.8

289.8 271.4

-16.3%-6.9%

48.6%

-6.3%

-50%

0%

50%

100%

150%

-

100.0

200.0

300.0

400.0

2011 2012 2013 2014 YTD 2014 YTD 2015

(€m

illio

ns)

Besi Revenue Revenue YoY Growth Rate

4.44.0

3.1

3.9

3.33.0

3.3

3.9

-9.2%

-22.4%

28.1%

-15.0%-11.1%

11.3%18.3%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

0.0

1.0

2.0

3.0

4.0

5.0

2011 2012 2013 2014 2015F 2016F 2017F 2018F

(US

$ bi

llion

s)

Assembly Equipment Market Size YoY Growth Rate

Source: VLSI October 2015


Key Development and Operational Objectives

Development Objectives

Advanced TCB die bonding development

Introduction of next generation packaging systems

Common parts/platform activities

Operational Objectives

Transfer of certain Swiss Die Attach software, logistics and administrative functions to Singapore

Transfer of certain die bonding production from Malaysia to China

Transfer of Plating Production from NL to Malaysia

10% fixed & temporary headcount reduction

Further reduction of European based costs

Expansion of Asian supply chain. System module outsourcing

2015 2016


Workforce Trends

• Aggregate headcount varies with cyclicality and seasonality of business

• Aggregate headcount down 3.3% since Q2-15

• European/NA fixed headcount continues to decline• -6.0% from year end 2014

to Q3-15• Asia 63% now 741 680 624 602 597 597 566

802 799

810 908 933 967 975

64 60

24

122 150 120 87

1,6071,539

1,458

1,6321,680 1,684

1,628

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 Q1 2015 Q2 2015 Q3 2015T

emp

% o

f Tot

al

Hea

dcou

nt

Europe/NA Fixed HC Asia Fixed HC

Temporary HC Temp % of Total


IV. OUTLOOK


Q4-15 Guidance

Revenue Gross Margin Operating Expenses

Q3 Q4 Q3 Q4 Q3 Q4

€ 72.1 48.7% € 28.7

• Revenue within a range of +/-10% vs. Q3-15• Gross margins 46-48% range • Opex down approximately 3-5% • Assumes no material change in exchange rates from Q3-15• Net cash position continues to expand• Share repurchase program continues

Down 3-5%

48%-

46%

+10%-

-10%


Financial Calendar

11/12-Nov-15 Morgan Stanley European TMT Conference, Barcelona

19-Nov-15 Small & Mid Cap Seminar SNS Securities, Amsterdam

25-Nov-15 Kempen Benelux Conference, London

25-Feb-16 2015 Fourth Quarter and Full Year Results

INVESTOR PRESENTATION Q3-2015 RESULTS OCTOBER 22, 2015 · October 22, 2015 Page 1 INVESTOR PRESENTATION Q3-2015 RESULTS OCTOBER 22, 2015 . October 22, 2015 Page 2 Safe Harbor Statement

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