2. 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” constitute 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 our inability to maintain
continued demand for our products; the impact on our business of potential disruptions to European economies from euro
zone sovereign credit issues; 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
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 of terrorism and violence; risks, such as changes in trade
regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and
foreign manufacturing operations; 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,
2011 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 are under no obligation to (and expressly disclaim any such
obligation to) update or alter our forward-looking statements whether as a result of new information, future events or
otherwise.
October 2012 2
3. AGENDA
I. Company Overview
II. Market
III. Strategy
IV. Financial Review
V. Outlook & Summary
October 2012 3
5. COMPANY OVERVIEW
• Leading assembly equipment supplier with #1 and #2
positions in key products. 27% addressable market share
• Broad portfolio: die attach, packaging, plating, wire bond
Corporate Profile • Strategic positioning in wafer level and substrate packaging
• Global manufacturing operations in 7 countries; 1,615
employees worldwide. HQ in Duiven, the Netherlands
• 2011 revenue and net income of € 326.9 and € 26.7 million
Financial Highlights • Cash at 9/30/12: € 89.8 million
• Total debt at 9/30/12: € 30.6 million
• 2009 acquisition, restructuring and Asian production transfer
Investment have transformed company and earnings potential
• Advanced packaging, smart phone/tablet growth and Asian
Considerations production transfer offer significant upside potential
• Stock market valuation at significant discount to peers
October 2012 5
6. CORPORATE TRANSFORMATION
Revenue Gross Margin Record Revenue:
400 € 351 million 60%
Record Profit:
€ 47 million
Die Attach Acquisitions
350 55%
50%
300 Cost 13%
Restructuring Dragon I Dragon II
complete: complete: savings Headcount
€ 6 million € 15 million plan reduction; 45%
Revenue (€ million)
initiated Plating unit
250 cost savings cost savings
restructuring
Gross Margin
40%
Asian Production Transfer
200
35%
150
Dutch tooling & DB 2100 transferred to DB 2009
Hungarian die bonding Malaysia transfer to
30%
transferred Malaysia
100 initiated
Standard packaging and certain die 25%
bonding systems transferred to
Malaysia
50 Asia
€ 14 million spent to build, expand and equip Malaysian system and 20%
capacity
Chinese tooling operations
expansion
Asian headcount increased from 34% in ‘06 to 51% in ‘11 completed
0 15%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
October 2012 6
7. STOCK PRICE INFORMATION
• Market cap € 195 million: 37.8 million shares x € 5.15 price (October 23)
• Shares listed on NYSE Euronext Amsterdam (BESI) and NASDAQ OTCQX
International (BESIY). 2011 average daily volume of 132,079 shares
• Trading at significant discount to industry multiples:
Besi (a) Peers (b, c) Industry (c, d)
TTM P/S 0.7x 1.2x 1.9x
TTM EV/EBITDA 3.7x 6.1x 7.8x
2012E P/S 0.7x 1.1x 1.6x
2012E EV/EBITDA 2.9x 6.2x 8.1x
Source:
a) Besi: Canaccord Genuity, SNS Securities research & ABN Amro
b) Peers: ASMPT, Disco Corp, Mühlbauer, Tokyo Seimitsu, Shinkawa, Suess Microtec and K&S
c) Reuters & MS estimates
d) Industry: Reuters semi equipment universe
October 2012 7
8. BESI EQUIPMENT PORTFOLIO
Die Attach Packaging & Plating Wire Bonding
• Die Sorting • Molding • 3100
- DS 9000E New - AMS series • 3100
- CS 1250 - AMS Foil Smart Card
- DS 11000 - AMS WLM New
• 3200 Smart
Card
• Die Bonding • Trim & Form
- 2100 xP
- Compact series
- 2009 series
- Power series
- 2100 hS New
- Compact Line
- 2100 sD New New
XHD
• Component • Singulation
In Development
Packaging - FSL New
- 2200 evo
• Common die attach platform
• Common packaging platform
• Flip Chip • Plating
- 8800 Quantum - Leadframe
- 8800 Chameo - Solar
- "Smart Line" - Film & foil
- 2100FC
October 2012 8
9. BESI PRODUCT POSITIONING
Back-end Semiconductor Assembly Process
Dicing Die Attach Wire Bond Packaging Plating
Die Sort Die Bond Wire Bond Molding Trim & Form Plating
Leadframe Assembly
Singulation
Substrate
Ball Grid Array
Wire Bond Assembly
Die Sort FC Die Bond Molding Singulation
Ball Grid Array
Substrate
Flip Chip Assembly
Die Sort FC Die Bond Molding Singulation
Wafer Level Packaging
Flip Chip Assembly
Die Attach Packaging Ball Attach
October 2012 9
10. GLOBAL OPERATIONS
Duiven & Drunen,
(The Netherlands)
Cham, Radfeld, (Austria)
(Switzerland)
Salem*
Chandler Suzhou
Chengdu Korea
Shanghai
Leshan
Sales Office Taiwan
Shenzhen
Production Site Malaysia Philippines
Sales & Production Site Singapore*
* R&D Site
as of 30 September 2012
• Development activities in Europe and USA
Europe/N.A. Asia
• Increasing production and sales & service Revenue (MMs) € 54.2 24.9% € 163.2 75.1%
activities in Asia
Headcount 761 47.1% 854 52.9%
October 2012 10
11. CUSTOMER ECOSYSTEM
Customers End Products End Use
• Blue chip customer base, top 10 customers represent 45% of 2011 revenue
• Leading IDMs and Asian Subcontractors. 41%/59% split in 2011
• Equipment utilized to produce chips for leading fabless companies: Qualcomm,
Broadcom, MediaTek
• Long term relationships, some exceeding 45 years
October 2012 11
12. PRODUCT SHIFT TO ADVANCED PACKAGING
END USER APPLICATIONS
2011
Service • Tablets and wireless
12% Computer, devices now equal
LED PCs 35% of end user
2008 5% 21%
revenue
Service Industrial
2% 10%
LED
Industrial 3%
10% • Automotive has also
Tablets & increased
Auto Wireless
Devices
significantly in recent
Auto 17%
13% Computer, 35% years
PCs
50%
Tablets & • Service/spare parts
Wireless have grown to 12%.
Devices
Less cyclical revenue
22%
stream
Source: 2011 Company Estimates
October 2012 12
16. IC PRICING AND ASSEMBLY MARKET TRENDS
Assembly Capacity Utilization
Book to Bill Ratio
& IC Pricing
100.0% 1.40 SEMI Equipment Market
1.38 (3 month moving average)
1.36 1.50
3 Month Avg Pricing ($)
90.0% 1.40
% Capacity Utilization
1.34 1.40
1.32 1.30 Assembly
80.0% 1.30 1.20
1.28
1.12
1.10
70.0% 1.26
1.00
1.24
0.90
1.22 Total 0.81
60.0% 0.80
1.20
1.18 0.70
50.0% 1.16 0.60
2010 APR JUL OCT 2011 APR JUL OCT 2012 APR JUL 0.54
JAN JAN JAN 0.50
Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug
Assembly Utilization IC ASP 10 10 11 11 11 11 11 11 12 12 12 12
Source: VLSI September 2012 Source: Semi September 2012
• Softening seen at end of Q2 accelerated in Q3
• Assembly equipment market fell much more than overall semi equipment market in Q3
• Some mixed signals:
• Assembly capacity utilization trends ok
• Semi pricing seems stable for now…although at much lower levels than 2011
October 2012 16
17. BESI COMPETITIVE POSITION
Assembly Addressable
Market Share Market Share
40% 40% • #3 leading assembly supplier
30% 30% 27% 24% 27%
11%
14% 14% • #2 in addressable market with
20% 20%
27% share
10% 10% • Leader in die attach
Mkt Size: $4,192MM Mkt Size: $1,700MM
0% 0%
Competition:
2009 2010 2011
ASM-PT, K/S, Shinkawa, Tokyo Competition:
2009 2010 2011
ASM-PT, Disco, Shinkawa, Towa,
• Gained market share in 2011:
Semitsu, Disco Hanmi, Hitachi • Die attach (die bonding and
Company Position: #3 Company Position: #2 sorting)
• Packaging (molding)
Die Attach Packaging
Market Share Market Share • Leader in growth areas:
40% 32%
40% • Multi module die attach
30%
29% 29%
30%
• Flip Chip
20%
13%
10%
12% • Ultra thin molding
20%
10%
Mkt Size: $1,015MM
10%
Mkt Size: $668MM
• Accuracy, precision and
0% 0% speed distinguishes Besi vs.
2009 2010 2011 2009 2010 2011
competition, particularly for
Competition: ASM-PT, Shinkawa, Panasonic,
Muhlbauer
Competition: Towa, ASM-PT, Yamada, Dai Ichi
Seiko, Gallant, Hanmi, Rocco
mainstream market
Company Position: #1 Die Bonding, #1 Multi Module, Company Position: #2 Molding, #2 T&F
#1 Flip Chip, #3 Singulation
#2 Die Sorting *Source: VLSI Jan 2012
October 2012 17
19. BUSINESS STRATEGY
Vision World class assembly
equipment manufacturer
Market
positioning Fast growing, leading edge market segments
How to win Technology-led, mainstream supplier of substrate and wafer level
packaging solutions
Enter selected Maximize product Exit when
markets with value with transfer technology becomes
leading technology into mainstream “commoditized”
Actions (I) (II) (III) (IV) (V)
Maintain Accelerate Reduce Transfer Acquire
leading edge revenue structural costs production to complementary
technology growth Asia companies
Leverage "One Besi" Strategy
October 2012 19
20. PRODUCT STRATEGY:
ADVANCED PACKAGING IS THE FUTURE
Greater
Miniaturization
Greater
High Growth End Higher Accuracy Complexity
User Areas:
Die Attach
• Die Sorting: DS 9000
• Die Bonding: ES 2009, 2100
Tablets, Smart • Flip Chip: DC 8800 FC
• Multi Module: DC EVO 2200
phones, Digital set
top boxes, Autos,
Lower Power Increased
MEMS Consumption Packaging
Density
• Molding: AMS-W
• Singulation: FCL
Higher
Performance
• High growth applications require ever smaller, denser and more complex chips with increased performance,
all at lower power usage.
• <40 nanometer geometry will be the standard chip design over the next 3-5 years
• System on Chip or System in Package via substrate and wafer level packaging process is the only answer
• Besi has full range of AP systems. 2011E revenue: 70% substrate/wafer level vs. 30% leadframe
October 2012 20
21. SMART PHONE / TABLET MARKET TRENDS
Smart Phones 2011-2016
2,500
76.4%
2,000 30.8%
62.5%
million phones
1,500 • Rapid unit growth in smart
850 1,500 phones and tablets forecast
400 650
1,000 over next 5 years
500 1,050 900 850 • Estimated unit growth rates:
600
0
2011 2012 2013 2014 2015 2016
• Smart phones:
Basic Phones Smart Phones
• 2012: 62.5%
• 2016: 3.5x
Tablets 2011 - 2014
• Tablets:
• 2012: 120%
• 2014: 4x
• Significant potential revenue
growth driver
Source: Prismark
October 2012 21
22. SMART PHONE ILLUSTRATION
Main Components Manufacturer Country Besi Systems Utilized
Processor Samsung South Korea 8800FCQ, AMS-W, Singulation
DRAM Memory Samsung South Korea 2100sD, AMS-W, Singulation
Flash Memory Chip Samsung South Korea 2100sD, AMS-W, Singulation
Battery Samsung South Korea N/A
Power Management Dialog Germany 2100sD, 2009
Compass AKM Japan N/A
Accelerator/Gyroscope ST Micro Italy/France 2100sD
Communications
Radio Frequency Memory Intel USA 8800FCQ, Singulation
Wi-Fi/Bluetooth/GPS Broadcom USA 2200 evo, AMS-W, Singulation
Receiver/Transceiver Infineon Germany 8800FCQ, AMS-I, Singulation
Skyworks, 2200 evo, AMS-W, Singulation, 8800
PA Module Triquint USA Chameo
Video/Audio
Touch Screen Control TI USA 2100sD, AMS-W, Singulation
Audio Codec Cirrus Logic USA 2100sD, AMS-W, Singulation
LCD Display LG South Korea N/A
Touch Screen Wintek USA N/A
LG, Foxconn, South Korea,
Camera – 5/8 megapixel/VGA CoWell China 2200 evo
Besi systems are capable of assembling components representing up to 50% of smart phone content
October 2012 22
23. FLIP CHIP/WIRE BOND OPPORTUNITY
Wire Bonding Flip Chip Bonding 2011 2016E
Flip Chip
Flip Chip
$208
$337
16%
24%
Wire
Flip Chip Advantages Wire
Bonding
Bonding
$1,067
$1,053
76%
Reduces board area 84%
Higher speed
by up to 95%. CAGR 2011 – 16
electrical
Requires far less Flip Chip 10.2%
performance
height Wire Bond 0.3%
• Move to <40 nanometer can only be accomplished by
More durable flip chip die bonding vs. wire bonding process
Greater I/O
interconnection
connection flexibility • Flip chip revenue represents only 16% of total potential
method
market of $1.3 billion (2011)
• Rapid share gain vs. wire bonding over next 5 years
Lower cost for high (9.9% CAGR delta) as per VLSI
volume production,
with costs below • Growth rates could accelerate depending on adoption
$0.01 per connection
rates of key IDMs/subcons
* Source: VLSI October 2012
October 2012 23
24. KEY OPERATIONAL OBJECTIVES
2011 2012 2013
Key Operational Objectives
DB 2100 production transfer to Malaysia
DB 2009 production transfer to Malaysia
50% MY/100% China capacity expansion
Reduce European cost structure
• Asian production transfer on schedule:
• 80% of YTD 2012 systems produced in Asia
• Transfer of DB 2100 epoxy die bonder from Switzerland to Malaysia completed in 2011
• DB 2009 soft solder system transfer accelerated to Q1-13 from Q4-13
• October 2012 headcount reduction plan initiatives:
• Reduce European fixed headcount
• Rationalize Dutch plating operations
• Further integrate Die Attach operations
• Align Asian production capacity with current demand
• € 11 million annualized cost savings
October 2012 24
25. AQUISITION STRATEGY
Packaging & Plating Die Attach
Packaging Plating Leadframes Flip Chip Chip Sorting Flip Chip/ Single Chip
Multi Chip
1993 1995 1997 2000 2002 2005 2009
• € 50 million packaging company has become € 327 million assembly
equipment supplier
• Consolidating leading edge assembly technologies
• 4 acquisitions since 2000 totaling € 80 million, net have created Die Attach
leader
• Seeking technology led companies which increase advanced packaging
presence and can be incorporated into One Besi platform
October 2012 25
27. SUMMARY FINANCIAL HIGHLIGHTS
Year Ended December 31,
• Financial transformation since 2008
(€ millions, except share data) 2009 2010 2011
• Scale and market presence have changed
due to Esec acquisition:
Revenue 147.9 351.1 326.9
• Expanded mainstream presence
Orders 162.5 376.5 301.1 • Leveraged revenue potential
Gross margin 28% 39% 40%
• Strategic positioning in advanced
packaging has yielded benefits:
EBITDA 17.9 60.5 45.8 • Enhanced top line growth
Pretax income 4.9 47.4 34.6 • Increased gross margins
Net income 5.4 47.3 26.7
EPS (diluted) 0.16 1.25 0.73 • Solid gross margins and profits in 2011
despite downturn due to:
Net margin 4% 13% 8% • Advanced packaging presence
• Ongoing Asian production transfer
Adj. net income (loss) (28.0) 41.6 27.4 • 2010 product line restructurings
Adj. EPS (diluted) (0.85) 1.11 0.75
• Solid liquidity base. Expanding net cash
Net Cash 19.6 22.9 62.7 • Dividend initiated in 2010
Dividend per share - 0.20 0.22
October 2012 27
28. REVENUE/GROSS MARGIN TRENDS
Revenue Orders Gross Margin • Quarterly revenue/order patterns show
140 60.0% cyclicality of semiconductor business:
133.7
• Two cycles past 24 months; very volatile
• Influenced by global macro demand
120 • 14.3% decrease in Q3-12 sequential
55.0%
revenue
104.4
100.6
100 97.3
91.1
91.1 • Product mix shift past 3 years to higher
89.5 88.1 88.3 89.9 87.0 50.0%
82.5 75.6 84.2 margin advanced packaging systems:
(euro in millions)
• Multi module and flip chip die attach
80 75.1 74.6
70.4
• Ultra thin molding systems
45.0% • Influenced by smart phones, tablets and
57.4
intelligent automotive components
60 56.6 55.2 55.8 41.5% • Exit from lower margin wire bonding and
41.2%
40.1% 40.2% 40.0% 40.0% 48.7 packaging system sales has also helped
39.4%
38.7% 38.5% 40.3% 40.0%
40
• Gross margins remained relatively stable
despite cyclical revenue/order trends:
20 33.4% 35.0% • Increased scalability of production model
• Product mix shift to higher margin
advanced packaging systems
• Lower unit costs due to Asian production
0 30.0%
Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 transfer
October 2012 28
29. NET INCOME TRENDS
Net Income Adjusted Net Income
20 19.4
• Cyclical peak earnings of € 47.3 million
reached in 2010
• Significant contribution from Esec
products/turnaround
15.4
15.0
• Restructuring benefits
15 14.4
• 2011 earnings declined to € 26.7 million.
Adversely affected by:
• Global macro concerns/increased
11.0 customer caution
9.6
10.0 • Increase of CHF vs. euro reduced
10 operating profit by € 4 million
(euro in millions)
8.8
• Increased incentive stock based comp
of € 3.1 million
• Renewed volatility in 2012:
4.9
5 4.2 4.3 • Significant quarterly profit swings
3.4 • Macro uncertainty causes very short
term customer purchasing patterns
1.2 • Significant leverage in operating model
0.2 • Quarterly opex have ranged between
0 € 20-24 million over past 8 quarters
Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12
(2.6)
-5
October 2012 29
30. LIQUIDITY TRENDS
Cash Debt
100
93.5
• Net cash position has grown to € 59.2
89.8
90 87.5 million from € 19.6 million at year end
2009
• Significant increase in profitability
80 76.6 77.3
• Redemption and share conversion of
5.5% convertible notes in Q2-11
69.3
70
65.5
• Improved inventory management
61.8 • € 1.57 per share relative to share price
60
of € 5.62 at end of Q3-12
(euro in millions)
55.0
49.4
47.7 49.9
48.1
50 46.8 46.4 45.9 • € 25 million spent on share
repurchases and cash dividends in
40 2011/2012
• Dividends initiated in 2011
27.9
30.6 • 1.5 million share buyback program
30 27.0
24.8 announced in October 2012
23.1
20 16.1
• Strong balance sheet supports future
10
organic growth and acquisition
strategy
0
Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12
Net Cash 0.9 (1.3) 5.1 22.9 19.6 45.7 49.6 62.7 70.4 49.4 59.2
October 2012 30
32. Q4-2012 GUIDANCE
Revenue Gross Margin* Operating Expenses* Capex
€ 74.6 40.3% € 22.6 € 1.5
Down
36% Down Up
25%
- € 0.6 € 0.3
-
38% MM MM
35%
Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4
* Excluding restructuring
• Customer caution continues into Q4-12
• Q4-12 sequential revenue down 25-35% vs. Q3-12
• Gross margins (ex restructuring) will range between 36-38%
• Opex declines to approximately € 22.0 million (ex restructuring)
• Capex of € 1.8 million to complete Asian capacity expansion
October 2012 32
33. SUMMARY
Leading semi assembly
equipment supplier with #1 Scalability and profitability Macro uncertainty causes
or #2 positions in fast of business model greatly volatility in quarterly results
growing advanced enhanced 2011-2012
packaging segments
Significant upside potential.
Solid liquidity position. Advanced packaging,
smart phone/tablet growth, Attractive stock market
€ 59.2 million net cash at valuation relative to peers
ongoing cost reduction
end of Q3-12
and Asian production
transfer
October 2012 33
34. FINANCIAL CALENDAR
25-Oct-12 Roadshow Frankfurt, Germany, organized by ABN AMRO Bank
14/16-Nov-12 Morgan Stanley Technology, Media & Telecom Conference,
Barcelona, Spain
October 2012 34
