Annual General Meeting
April 24, 2013
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” constitutes 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 the discovery of weaknesses in
our internal controls and procedures, 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; inability to forecast demand and inventory levels for our products, the integrity of product pricing and
protect 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;
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, 2012 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.
2
TABLE OF CONTENTS
I.
II.
III.
IV.
V.
Introduction
Market
Strategy
Financial Review
Conclusion
3
I. INTRODUCTION
KEY FINANCIAL HIGHLIGHTS 2012
Revenue
• € 273.7 million:
• -16.3% vs. 2011
Orders
• € 276.1 million:
• -8.3% vs. 2011
Net Income
• € 15.8 million vs. € 26.4 million in 2011
• Adjusted net of € 18.2 million vs. € 27.1 million
• Includes restructuring charges of € 2.4 million in 2012 vs. € 0.7 million in 2011
Liquidity
• Cash +€ 18.9 million to € 106.4 million
• Net cash +€ 16.8 million
5
STOCK PRICE TRENDS
BESI
SOX
150.0
Q1 2013
Besi +15.7%
140.0
130.0
120.0
1/201112/2012
Besi +14.9%
110.0
100.0
SOX +13.7%
90.0
SOX -6.7%
70.0
D-10
J-11
F-11
M-11
A-11
M-11
J-11
J-11
A-11
S-11
O-11
N-11
D-11
J-12
F-12
M-12
A-12
M-12
J-12
J-12
A-12
S-12
O-12
N-12
D-12
J-13
F-13
M-13
80.0
6
DIVIDEND TRENDS
0.50
0.45
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
Special Dividend
Total Dividend Yield (a)
6.0%
5.2%
4.0%
5.0%
4.3%
3.8%
4.0%
0.08
3.0%
2.0%
0.20
0.22
0.22
Dividend yield
Dividend (€)
Base Dividend
Base Dividend Yield (a)
1.0%
0.0%
2009
2010
a) Based on year end stock price of € 5.79
b) Proposed for approval at April 2013 AGM
2011
2012 (b)
7
CASH AS % OF MARKET VALUE
Cash
Market Value
Cash/Market Value
250
70.0%
217.9
60.0%
187.8
(€ million)
171.1
150
46.6%
50.0%
106.4
40.5%
100
48.8%
40.0%
87.5
69.3
50
30.0%
0
20.0%
As of Dec 31,
2010
2011
Cash/Market Value
200
2012
8
II. MARKET
ELECTRONIC DEVICE TRENDS
Computing and Communications Evolution Continues
Source: ASE GROUP
10
ASSEMBLY EQUIPMENT MARKET FORECAST
Assembly Equipment Market Size (Apr 2013 VLSI)
YoY Growth Rate (Apr 2013 VLSI)
6
160%
5.1
120.5%
5
CAGR
‘12-’17: 2.9%
4.8
4.5
4.2
4.2
4.6
4.8
4.0
140%
120%
100%
4
80%
3
60%
40%
2.1
17.7%
2
7.3%
-7.8%
-0.8%
-2.7%
3.4%
-9.3%
20%
0%
1
-28.2%
-20%
0
-40%
2009
2010
2011
2012
2013E
2014E
2015E
2016E
2017E
Source: VLSI April 2013
• Since 2010 rebound, assembly market has been trending lower
• Significant market growth anticipated in 2014 (+17.7%) and 2015 (7.3%)
11
BESI COMPETITIVE POSITION
Assembly
Market Share
40%
Addressable
Market Share
40%
27%
20%
14%
Mkt Size: $4,192MM
0%
Competition:
14%
11%
2009
2010
Company Position:
Mkt Size: $1,700MM
0%
2011
2009
Competition:
#3
Company Position:
Die Attach
Market Share
29%
20%
Mkt Size: $1,015MM
2009
2010
2011
2011
10%
12%
2009
• Gained market share in 2011:
• Die attach (die bonding and
2010
• Leader in growth areas:
• Multi module die attach
• Flip Chip
• Ultra thin molding
• Accuracy, precision and speed
Mkt Size: $668MM
0%
• #2 in addressable market with
27% share
• Leader in die attach
sorting)
• Packaging (molding)
#2
40%
13%
20%
0%
2010
ASM-PT, Disco, Shinkawa, Towa, Hanmi,
Hitachi
Packaging
Market Share
32%
29%
27%
20%
ASM-PT, K/S, Shinkawa, Tokyo Semitsu,
Disco
40%
24%
• #3 leading assembly supplier
2011
Competition:
ASM-PT, Shinkawa, Panasonic,
Muhlbauer
Competition:
Towa, ASM-PT, Yamada, Dai Ichi Seiko,
Gallant, Hanmi, Rocco
Company Position:
#1 Die Bonding, #1 Multi Module, #1
Flip Chip,
#2 Die Sorting
Company Position:
#2 Molding, #2 T&F
#3 Singulation
distinguishes Besi vs.
competition, particularly for
mainstream market
*Source: VLSI Jan 2012
12
IC PRICING AND ASSEMBLY MARKET TRENDS
Assembly Capacity Utilization
& IC Pricing
1.40
Semiconductor Equipment Book to Bill Trends
1.38
(3 month moving average)
1.34
1.32
1.30
80.0%
1.28
1.26
70.0%
1.24
1.22
1.20
60.0%
1.18
1.16
50.0%
1.14
2010
JAN
MAY
SEP
2011
JAN
MAY
Assembly Utilization
Source: VLSI April 2013
SEP
2012
JAN
MAY
SEP
IC ASP
2013
JAN
1.60
1.50
1.40
1.30
1.20
1.10
1.00
0.90
0.80
0.70
0.60
0.50
1.51
Assembly
Equipment
1.40
1.23
1.12
1.10
Total Semi
Equipment
1.01
Jan 10
Feb 10
Mar 10
Apr 10
May 10
Jun 10
Jul 10
Aug 10
Sept 10
Oct 10
Nov 10
Dec 10
Jan 11
Feb 11
Mar 11
Apr 11
May 11
Jun 11
Jul 11
Aug 11
Sept 11
Oct 11
Nov 11
Dec 11
Jan 12
Feb 12
Mar 12
Apr 12
May 12
Jun 12
Jul 12
Aug 12
Sept 12
Oct 12
Nov 12
Dec 12
Jan 13
Feb 13
1.36
90.0%
3 Month Avg Pricing ($)
% Capacity Utilization
100.0%
Book to Bill Ratio
Source: Semi April 2013
• High degree of industry volatility over past 3 years due to customer uncertainty
• Assembly equipment market has been more volatile than semi equipment market
• Book/bill and pricing have improved since Q4-12. Appears to be recent industry trough
13
2013 INDUSTRY OUTLOOK
Market Environment Cautiously Improving
VLSI initially
assumed 6.1%
assembly market
downturn in 2013.
Now forecasts
2.7% decline
Mixed industry
picture. Renewed
strength in
advanced
packaging (tablets,
smart phones and
automotive)
Memory and
leadframe
suffering due to
PC slowdown
Strong growth
expected for Besi
in Q2
14
CUSTOMER ECO SYSTEM
Customers
End Products
End Use
• Blue chip customer base, top 10 customers represent 48% of 2012 revenue
• Leading Asian Subcontractors and IDMs. 57/43% split in 2012
• Equipment utilized to produce chips for leading fabless companies: Qualcomm,
Broadcom, MediaTek
• Long term relationships, some exceeding 45 years
15
PRODUCT SHIFT TO ADVANCED
PACKAGING END USER APPLICATIONS
2012
• Mobile internet
Service
12%
LED
5%
2008
Service
2%
LED
Industrial
3%
10%
Industrial
10%
Computer,
PCs
50%
Mobile
Internet
Devices
22%
Source: 2012 Company Estimates
devices now equal
35% of end user
revenue
• Automotive has also
Auto
17%
Auto
13%
Computer,
PCs
21%
Mobile
Internet
Devices
35%
increased in recent
years
• Service/spare parts
have grown to 12%.
Less cyclical revenue
stream
16
MOBILE INTERNET DEVICE MARKET TRENDS
Smart Phones 2011-2016
2,500
• Rapid unit growth in smart
phones and tablets forecast
over next 5 years
76.4%
million phones
2,000
30.8%
62.5%
1,500
400
650
850
1,050
900
850
2012
2013
1,500
• Estimated unit growth rates:
1,000
500
600
0
2011
Basic Phones
2014
Smart Phones
Tablets 2011 - 2014
2015
2016
• Smart phones:
• 2012: 62.5%
• 2016: 3.5x
• Tablets:
• 2012: 120%
• 2014: 4x
• Significant potential revenue
growth driver
Source: Prismark
17
FLIP CHIP/WIRE BOND OPPORTUNITY
Wire Bonding
Flip Chip Bonding
2012
2017E
Flip Chip
$,238
20%
Flip Chip Advantages
Reduces board area
by up to 95%.
Requires far less
height
Greater I/O
connection flexibility
Flip Chip
$,334
25%
Offers higher speed
electrical
performance
More durable
interconnection
method
Lower cost for high
volume production,
with costs below
$0.01 per connection
Wire
Bonding
$1,010
75%
Wire
Bonding
$,938
80%
CAGR 2012 – 17
Flip Chip 7.0%
Wire Bond 1.5%
• Move to <40 nanometer can only be accomplished by
use of flip chip die bonding vs. wire bonding process
• Flip chip revenue represents only 20% currently of total
potential market of $1.2 billion
• Expected to gain share rapidly over next 5 years vs. wire
bonding (5.5% CAGR delta) as per VLSI
• Growth rates could accelerate depending on adoption
rates of key IDMs/subcons
* Source: VLSI April 2013
18
SEMI EQUIPMENT CONSOLIDATION TRENDS
Top 20 Semiconductor Equipment Suppliers
(based on 2011 revenues, after all acquisitions consolidated)
Source: VLSI
Front-end
Back-end
Besi Acquisition Criteria:
• Technology led mainstream companies which increase IP and can be
incorporated into One Besi platform. Value creation through integration
• Upstream/downstream companies: further advanced packaging position
• Most acquisition candidates lack scale and Asian footprint
19
III. STRATEGY
2012 PRODUCT DEVELOPMENT HIGHLIGHTS
Advanced packaging is key focus: tablets, smart phones and intelligent
automotive electronics principal end use applications currently
Penetration of largest smart phone and tablet ecosystems in 2012
• Shipped 100+ evo multi module systems for die attachment of 8 mega pixel lens cap
camera modules
• Gained market share in molding systems for ultra thin packaging
Current development activities
• New assembly challenges such as TCB, TSV, copper pillar and wafer level packaging
• Received first orders for TCB die bonding equipment for next generation 20 nano
device geometries
• Began development on 300-450 mm wafer handling for chip sorting and die attach
applications
• Ongoing common platform activities
21
2012 OPERATIONAL HIGHLIGHTS
Business Model Enhanced In Light of Volatile Semi Environment
Asian production transfer nearly completed
• 35% YOY increase in Asian system production. 274 systems produced in Q2-12
• Record 90% of total systems produced in Asia
• Direct shipments increased to 85% of total Asian shipments
• Capacity expansion completed
Break even revenue levels reduced by 13%
• European headcount down 11%, primarily production personnel
• Average cost per production employee down 7%
• SG&A expenses down € 8.3 million or 12%
• Dutch plating operation rationalized to improve ROI
Scalability and flexibility significantly improved
• Managed 65% H1-12 order ramp and ensuing 47% H2-12 order decline while
maintaining profitability in Q1 and Q4-12, industry trough quarters
• Progress in Asian supply chain expansion
22
BREAK EVEN REVENUE TRENDS
300
250
270
(13.0%)
235
(10.0% - 15.0%)
(€ millions)
200
200
212
150
100
50
2011
2012
2013E
23
ASIAN SHIPMENT TRENDS
Total Asian Shipments
Direct Asian Shipments
700
100.0%
68.0%
487
Shipments
500
300
90.0%
84.0%
553
80.0%
70.0%
60.0%
396
50.0%
42.9%
331
40.0%
30.0%
200
% Direct Shipments
658
600
400
% Direct
20.0%
170
100
10.0%
-
0.0%
2010
2011
2012
24
HEADCOUNT TRENDS
Europe/NA Fixed HC
Asia Fixed HC
1,800
1,600
Headcount
1,400
1,200
1,000
1,510
1,543
772
802
51%
52%
1,479
1,465
1,384
614
44%
799
820
54%
56%
800
600
400
770
738
741
56%
49%
48%
680
645
46%
44%
2009
2010
2011
2012
Q1
2013
200
• Headcount trends continue to favorably
influence break even revenue levels
• Fixed European headcount gradually
reducing as shift to Asian manufacturing
progresses:
• Down by 6% sequentially in Q1-13
• Down by 11% year over year
• Declined from 56% of total in 2009 to
44% at end of Q1-13
• Aggregate of 1,524 at Q1-13 quarter end:
• Down 1.0% vs. Q4-12
• Down 5.8% vs. Q1-12
-
25
STRATEGY TIMELINE
2012
2013
2014
Operational Objectives
Soft Solder DB production transfer to Malaysia
50% Malaysia/100% China capacity expansion
European Die Attach integration activities
Expansion of Asian supply chain. System
module outsourcing
Development Objectives
TCB flip chip die bonding development
300-450 mm wafer handling
Common platform activities
26
IV. FINANCIAL REVIEW
SUMMARY FINANCIAL HIGHLIGHTS
• Financial transformation since 2008
Year Ended December 31,
(€ millions, except share data)
• Scale and market presence have changed:
• Esec acquisition expanded mainstream
presence and leveraged revenue potential
2010
2011
2012
Revenue
351.1
326.9
273.7
Orders
376.5
301.1
Gross margin
39%
40%
EBITDA
60.5
45.6
Pretax income
47.4
34.4
Net income
47.3
26.4
EPS (diluted)
1.25
0.73
Net margin
13%
8%
Adj. net income (loss)
41.6
27.1
Adj. EPS (diluted)
1.11
0.74
276.1 • Strategic positioning in advanced
packaging has yielded benefits:
40%
• Enhanced top line growth
• Increased gross margins
32.4
19.5 • Restructuring efforts have aided gross
margins and profits in face of 2011/2012
15.8
industry downturns due to:
0.42 • Advanced packaging presence
6% • Ongoing Asian production transfer
• Reduction of European based costs
• Die Attach integration
18.2
• Product line restructurings
0.49
Net Cash
22.9
62.7
• Scalability of business model increased in
79.5 response to increased order volatility
• Solid liquidity base. Expanding net cash
28
LIQUIDITY TRENDS
Cash
Total Debt
Net Cash
120.0
106.4
100.0
80.0
87.5
73.1
79.5
69.3
(€ millions)
• Net cash has grown to € 79.5 million
from € 19.6 million at year end 2009
• Significant increase in profitability
• Redemption and share conversion of 5.5%
convertible notes in Q2-2011
• Improved working capital management
62.7
60.0
40.0
20.0
22.9
19.6
(20.0)
2009
2010
(24.8)
(40.0)
(60.0)
2011
(53.5)
(46.4)
• Solid liquidity position
• € 106.4 million cash at 12/31/12
• € 2.83 per share relative to share price of
€ 5.79 at year end
2012
(26.9)
• Shareholder value enhanced
• € 26 million spent on share repurchases
and cash dividends in 2011/2012
• 1.5 million share buyback program initiated
in October 2012
• Strong balance sheet supports future
organic growth and acquisition strategy
(80.0)
29
KEY FINANCIAL HIGHLIGHTS Q1-13
Q1-13 Results Exceed Expectations. Q2-13 Results Expected to Increase vs. Q1-13
Revenue
•€ 64.0 million:
•+13.7% vs. Q4-12
•+14.8% vs. Q1-12
•Above guidance (+5%)
Orders
•€ 63.9 million:
•+22.8% vs. Q4-12
•-24.2% vs. Q1-12
Pre-tax Income
•+€ 7.5 million vs. Q4-12 and € 3.4 million vs. Q1-12
Net Income
•€ 3.8 million in Q1-13 vs. € 1.2 million in Q4-12 and € 0.2 million in Q1-12
•Includes restructuring charges of € 0.2 million
Liquidity
•Sequential cash -€ 14.5 million to € 91.9 million
•Net cash -€ 15.3 million to € 64.2 million
30
Q2-2013 GUIDANCE
Revenue
Gross Margin
€ 64.0
39.6%
€ 20.9
41%
39%
Up
10%
Q1
Operating Expenses*
Q2
Q1
Q2
Capex
€ 0.4
Approx.
equal
Q1
Q2
Up
€ 0.6
MM
Q1
Q2
* Excluding restructuring
•
•
•
•
•
10% sequential revenue growth forecast based on backlog and order trends
Gross margins will range between 39%-41%
Opex approximately equal to € 20.9 million (ex restructuring)
No restructuring charges anticipated in Q2-13
Capex of € 1.0 million
31
V. CONCLUSION
SUMMARY
Excellent Product
Positioning and Market
Acceptance
Near Term Industry
Outlook Has Improved
Development Efforts
Underway for Next
Generation Advanced
Packaging
Strategic Initiatives
Offer Increased
Scalability, Revenue
and Higher Profit
Potential
Dividend and Stock
Repurchases Enhance
Shareholder Value
33