INVESTOR PRESENTATION May 2019 - Besi › fileadmin › data › Investor...Besi Revenue Revenue YoY...

38
INVESTOR PRESENTATION May 2019

Transcript of INVESTOR PRESENTATION May 2019 - Besi › fileadmin › data › Investor...Besi Revenue Revenue YoY...

Page 1: INVESTOR PRESENTATION May 2019 - Besi › fileadmin › data › Investor...Besi Revenue Revenue YoY Growth Rate Source: VLSI April 2019, “The Chip Insider” • Assembly equipment

INVESTOR PRESENTATION

May 2019

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Safe Harbor Statement

2May 2019

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, 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, 2018; 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.

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Agenda

I. Company Overview

II. Market

III. Strategy

IV. Financial Review and Summary

V. Appendix

3May 2019

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I. COMPANY OVERVIEW

4May 2019

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Besi Overview

• Leading assembly equipment supplier with #1 and #2 positions in key markets. 36% addressable market share

• Broad portfolio: die attach, packaging and plating

• Strategic positioning in substrate and wafer level packaging

• Global operations in 6 countries; 1,695 employees. HQ in the Netherlands

Corporate Profile

• LTM revenue and net income of € 451.7 million and € 108.6 million

• Cash/deposits at Q1-19: € 507.5 million

• Net cash/deposits at Q1-19: € 229.7 million

• € 617.9 million of dividends and share repurchases since 2011*

Financial Highlights

• Applications for emerging digital society are key long term drivers: Internet of Everything, AI, Big Data, Cloud computing, 3D imaging, 5G network roll out

• Advanced packaging is critical part of semi value chain to realize promise

• China market growth and share gains also benefit revenue development

• European overhead reduction, optimization of Asian production and common parts initiatives also help drive profit potential

Investment Considerations

5May 2019

* Includes 2018 dividend payment of € 1.67 per share and share repurchases through April 30, 2019.

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Company History

€ 85.5

€ 451.7

25.9%

56.7%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

0

100

200

300

400

500

2003 LTM

Gro

ss M

arg

in (

%)

Reven

ue

(€ m

illio

ns)

Revenue Gross Margin

•2000 2002 2005 2009

Die Attach Acquisitions

• Expanded advanced packaging leadership into die attach area

• Gained market share organically and via acquisitions

• Gained mindshare with key industry leaders

• Growth in China, key customers and electronics supply chains

Product Strategy

• 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 peer leading gross and net margins

• Improved cash flow generation

• Implemented attractive capital allocation policy

Financial Metrics

6May 2019

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Product Positioning

7

Semiconductor Manufacturing Equipment

(2018: $67.2B)*

Front end: $56.3B

(84%)

Assembly: $4.6B

(7%)

Test: $6.3B

(9%)

* Source: VLSI March 2019

** Includes Molding, Trim and Form and 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

May 2019

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Customers OEMs End Products

Customer Ecosystem

• Diversified, blue chip customer base, top 10 = 54% of 2018 revenue

• Leading IDMs and subcontractors. 68%/32% split in 2018

• Also supply leading fabless companies: Qualcomm, Broadcom, MediaTek via subcontractors

• Long term relationships, some exceeding 50 years

IDMs

Subcontractors

8May 2019

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Current Operational Profile

• Development activities in Europe

• Production in Asia

• Sales/service activities in Asia, US and Europe

Sales Office

Production Site

Sales, Production and R&D Site

Leshan

ChengduShanghai

Korea

Taiwan

Philippines

Malaysia

Singapore

Suzhou

Radfeld, (Austria)Steinhausen,

(Switzerland)

Duiven & Drunen,

(The Netherlands)

Chandler

Shenzhen

9

LTM March 31, 2019

Europe/NA Asia

Revenue (MMs) € 170.8 37.8% € 280.9 62.2%

Headcount 510 30.0% 1,185 70.0%

May 2019

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Revenue and Gross Margin Cycles Since 2006

10

191

351

379

593

525

164

302

424

56.8%

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 2018

Revenue Gross Margin

€ millions

4 year

averages

-12.9%

-7.8%

-6.9%

-11.4%

May 2019

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Capital Allocation Trends

11

12.4

56.945.4

65.3

174.0

122.422.0

23.5

35.5

16.9

12.4

60.467.4

88.8

209.5

139.3

0

50

100

150

200

250

2014 2015 2016 2017 2018 2019*

Dividends Share Repurchases

Cumulative: € 617.9 MM of distributions since 2011*

€ millions

* Includes dividend payment of € 1.67 per share payable in May 2019 and share repurchases through April 30, 2019.

May 2019

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Besi Shareholder Information

Market

Profile

Share

Ownership

42% 41%48%

0%

10%

20%

30%

40%

50%

60%

2016 2017 2018

Top 10 Shareholders**(% of shares outstanding)

• BESI

• Euronext Midcap AMX

Symbol/ Index

• € 1.9 billion ($2.1 billion)

Market Cap*

• Pay out 40-100% of net income per annum

Dividend Policy

* As of April 30, 2019 ** Besi estimates

15% 20%31%

17%22%

16%30%

20%27%

17% 21%15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018

By Geography

Unidentified

12

0

5,000

10,000

15,000

20,000

25,000

0

200

400

600

800

1000

2014 2015 2016 2017 2018

Avg V

ol *

Avg P

rice (

€ thousands)

Vo

lum

e (

tho

usa

nd

s)

Avg. Daily Volume & Liquidity

Europe

ex. NL

NL

UK

US

May 2019

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II. MARKET

13May 2019

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14

Assembly Equipment Market Trends

378.8

349.2 375.4

592.8 525.3

154.9 81.4

48.6%

-7.8%7.5%

57.9%

-11.4%

-47.4%

-50%

0%

50%

100%

150%

0

200

400

600

800

2014 2015 2016 2017 2018 Q1-18 Q1-19

€ m

illio

ns

Besi RevenueRevenue YoY Growth Rate

Source: VLSI April 2019, “The Chip Insider”

• Assembly equipment market reached record of $4.6 billion in 2017. Flat in 2018 due to H2-18 market downturn

• VLSI recently forecast steeper 2019 market decline (-18.3%) with recovery estimated in 2020 and 2021

3.9

3.23.7

4.6 4.63.7

4.14.8

26.8%

-17.5%

16.1%23.9%

-0.1%

-18.3%

8.6%

18.3%

-30%

-20%

-10%

0%

10%

20%

30%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2014 2015 2016 2017 2018E 2019E 2020E 2021E

US

$ b

illio

ns

Assembly Equipment MarketMarket Size YoY Growth Rate

May 2019

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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

15

KB – MB – GB – TB – PB – EB – ZB - YB

3 6 9 12 15 18 21 24

May 2019

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Advanced Packaging Critical to Next Generation Applications

16

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

May 2019

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Besi Portfolio Well Positioned by Node Size and Accuracy

17May 2019

15%

40%

20%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Typical Application Besi Equipment

Automotive, SiP

Power

Die Attach

Packaging

Plating

IOT

General ICs

Die Attach

Packaging

Plating

Computer, PC, Mobile

Cloud Computing

Die Attach

Packaging

High Performance Computing

Memory

Die Attach

Packaging

Accuracy

Micron

10+

10

7

3

Size

NM

28+

28

18

10

Estimated % of 2018 Revenue

• 75% of Besi equipment revenue advanced packaging as per VLSI definition

• 55% equipment revenue is < 7 micron accuracy and sub 18 nanometer

• Most rapidly growing market segment

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And Is Reflected in Besi End User Application Trends

Source: Company Estimates

18

• Mobile Internet, Computing and

Automotive are largest end markets

• Estimated 73% of revenue in 2018

• Percentages vary p.a. based on

customer roadmaps

• Mobile is largest market whose % varies

based on timing and success of new

product introductions

• Steady growth in automotive reflects ever

increasing electronic content

• Computing growth due to increased

demand for high end logic, cloud and

memory solutions

• Spares/service: 15% of 2018 revenue

• Growth in installed base

• Less volatile revenue stream

35%

21%

17%

7%5%

15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2018 % of Revenue

May 2019

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Besi Has Gained Share In Its Addressable Markets

2013 2014 2015 2016 2017

Addressable Market ($ Million) $1,200 $1,616 $1,216 $1,453 $1,844

Besi 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%

19

Source: VLSI June 2018 and Besi estimates

May 2019

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III. STRATEGY

20May 2019

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What Drives Besi’s Business?

Macro GDP trendsTech capabilities in

24/7 production environment

IDM customer and supply chain

choice

Timing of customer roadmaps and

capital spending programs

Competitive cycle times and scalability

21May 2019

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Summary Strategy

Maintain Best in

Class Tech Leadership

Increase Market

Presence and Share

IncreaseScalability.

Reduce Cost

Grow via Timely

Acquisitions

22

• Leverage technology leadership to reach

40-45% market share in next five years

• Market high quality mid-range products to

increase mainstream penetration

• Expand share of wallet in China

• Expand software and process support in Asia

to better serve installed base

• Continue West-East personnel transfer

• Target 80% Asian headcount

• Further reduce euro based costs

• Target local production. Shorten cycle times

• Accelerate common parts development

• Seek € 15-20 million cost savings

• Target 53-57% through cycle gross margin

• Expand capabilities for:

• eWLB, TCB, panel size, ultra thin die bonding

• Large area, ultra thin, wafer level molding

• Solar and lithium ion battery plating

• Introduce next generation products for next

investment round

• Acquire companies with complementary

technologies and products

• Emphasis on wafer level processing

• Seek to leverage Asian production platform and

supply chain

May 2019

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Favorable Drivers:

Digital Society

Big Data

Smart Everything

Cloud Expansion

Revenue Opportunities

23

Roll out 3D imaging and other features to 4G and 5G mobile customers/supply chains

Expand share of Korean and Chinese Android mobile customers

Sell next generation equipment to increase SoW in Memory/Logic space

Expand share of Japanese automotive supply chain

• Capitalize on steady growth of electronic content and safety requirements

Expansion of Chinese semi infrastructure as per government plan

Sale of complete Besi portfolio in local Chinese market

Renewed interest in WLP, Panel WLP and TCB processes by customers

May 2019

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IV. FINANCIAL REVIEW AND SUMMARY

24May 2019

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Year Ended December 31,

(€ millions, except share data) 2016 2017 2018

Revenue 375.4 592.8 525.3

% seq. change 8% 58% -11%

Gross margin 51% 57% 57%

EBITDA 89.8 222.8 187.7

Pretax income 73.6 199.2 154.9

Net income 65.3 173.2 136.3

Net margin 17% 29% 26%

EPS (diluted) (a) 0.85 2.17 1.68

EPS (basic) (a) 0.87 2.32 1.83

Dividend per share (a) 0.87 2.32 1.67

Net cash 168.1 247.6 199.4

Summary Historical Financials

25

(a) Adjusted for 2:1 stock split in May 2018

May 2019

Step function revenue and gross margin development over four

business cycles since 2006

• Addressable market share has expanded as well

Strong profit and margin development:

• Market position and efficiencies drive gross margin to 57% level

over past two years

• Operating initiatives keep expense growth in check

• Sector leading net margins of 26%

Net cash continues to expand:

• Profit generation and scalable production model help drive net

cash to € 229.7 million at March 31, 2019

• Supports shareholder friendly capital allocation policy

• € 209.5 million of dividends and share repurchases in 2018

• € 507.5 million of cash at March 31, 2019 helps fund future

growth

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Aligning Headcount and Overhead with Customer Demand

26

500 495 483 462 452

1,254 1,259 1,255 1,230 1,174

383 343

176

67 69

2,1372,097

1,914

1,7591,695

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

Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Headcount Headcount Trends

Europe/NA Fixed HC Asia Fixed HC Temporary HC Temp % of Total

May 2019

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€ 154.9

€ 81.4

24.0%

11.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

20

40

60

80

100

120

140

160

Q1-18 Q1-19

Net

marg

in %

Revenue (

€ m

illio

ns)

Revenue Net margin

Gross Margin

OPEX

Headcount

Effective Tax Rate

- 442

- 21.5%

- 0.6 points

Solid Q1-19 Performance in Challenging MarketAttractive Gross Margin Maintained

27

Q1-18/Q1-19

€ 9.5

€ 37.1

16.3% 12.5%

2,137 1,695

€ 39.1 MM € 30.7 MM

56.5% 55.9%

- 47.4%

- 12.4 points

- 3.8 points

May 2019

€ 592.8

€ 525.3

29.2%25.9%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

40

80

120

160

200

240

280

320

360

400

440

480

520

560

600

FY-17 FY-18

Net

marg

in %

Revenue (

€ m

illio

ns)

Revenue Net Margin

Gross Margin

OPEX

Headcount

Effective Tax Rate

-281

-2.7%

-0.3 points

FY-17/FY-18

€136.3

€ 173.2

13.1% 12.1%

2,040 1,759

€ 129.2 MM € 125.7 MM

57.1% 56.8%

-11.4%

-3.3 points

- 1.0 points

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Cash Generation Trends

28

73.3

86.5

98.7

168.2

184.1

19.3%

24.8%26.3%

28.4%

35.0%

0

20

40

60

80

100

120

140

160

180

200

2014 2015 2016 2017 2018

% of Revenue€ millions

Total Cash Flow from Operations As % of Revenue

May 2019

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Liquidity Trends

Strong liquidity position:

• Total cash of € 507.5 million and net cash of € 229.7 million as

of Q1-19

• € 209.5 million of dividends and share repurchases in 2018

substantially funded by operating cash flow

• New € 75 million share buy back program initiated Q3-18

Attractive funding obtained to help finance growth

• € 300 million convertible debt (1.33% blended rate)

• Minimal operating restrictions

• 5.5 year blended average maturity135.3

157.8

304.8

527.8

475.5

507.5

118.0 136.5

168.1

247.6

199.4

229.7

0

100

200

300

400

500

600

2014 2015 2016 2017 2018 Q1-19

€ m

illio

ns

Cash and Deposits Net Cash

29May 2019

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Operating Expenses

€ 30.7

Q2-19Q1-19

Guidance Q2-19

30

Q1-19 Q2-19

Gross Margin

55.9%

Revenue

Q1-19 Q2-19

€ 81.4 55%-57% -5%

-15%

+5%

May 2019

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Summary

31

Assembly market ever more critical

step in semiconductor

value chain

Successful Asian production

expansion has been a game

changer

Long term secular trends

drive continued advanced packaging

growth

Tech leadership, scalability and

cycle times have led to benchmark financial returns

Disciplined strategic focus has created an industry leader

Attractive capital allocation policy

rewards shareholders

Market presence has grown via

key IDM customers and supply chains

May 2019

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V. APPENDIX

32May 2019

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Quarterly Revenue/Gross Margin Trends

170159

153155

161

117

9381

86

57.3%58.7%

56.3% 56.5% 56.5%58.0%

56.4% 55.9% 56.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

0

20

40

60

80

100

120

140

160

180

200

Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19*

Gro

ss M

arg

in %

€ m

illio

ns

Revenue Gross Margin

* Midpoint of guidance: Revenue +5% vs. Q1-19, Gross Margin 55-57%.

33May 2019

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Baseline Operating Expense Trends

34

29.7 27.1

31.2 31.7 30.7 26.3 25.7 25.3

4.4

3.3

3.0

7.4

0.9

2.8 0.2

5.4

34.1

30.4

34.2

39.1

31.6 29.1

25.9

30.7

0

5

10

15

20

25

30

35

40

45

Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Base Opex Other Opex

Baseline Opex 29.7 27.1 31.2 31.7 30.7 26.3 25.7 25.3

As % of Revenue 17.5% 17.0% 20.4% 20.5% 19.1% 22.5% 27.8% 27.3%

Other Operating Expenses

Capitalization of R&D (1.8) (1.2) (1.8) (2.6) (3.4) (2.7) (2.7) (2.9)

Amortization of R&D 1.9 1.9 2.1 2.1 2.1 2.4 2.3 2.5

Capitalization & Amortization , net 0.2 0.8 0.3 (0.5) (1.3) (0.3) (0.3) (0.5)

Variable Pay (a) 4.0 3.2 3.9 9.5 3.3 2.7 3.1 5.9

Restructuring cost/(benefit) - - - - 0.1 0.4 0.2 -

Forex (b) and other 0.2 (0.7) (1.2) (1.6) (1.2) 0.0 (2.8) 0.0

Subtotal 4.4 3.3 3.0 7.4 0.9 2.8 0.2 5.5

Total Opex 34.1 30.4 34.2 39.1 31.6 29.1 25.9 30.7

As % of Revenue 20.1% 19.1% 22.3% 25.2% 19.6% 24.9% 28.0% 33.2%

(a) Includes both short term and long term incentive comp

(b) Year over year variance per quarter

May 2019

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Net Income Trends

35

52.4 52.9

43.6

37.1

47.2

26.2

22.7

9.5

4.7 3.7

4.3

10.0

3.8

3.1

3.5

6.4

57.1 56.6

47.9 47.1

51.0

29.3

26.2

15.9

30.8%

33.2%

28.4%

24.0%

29.3%

25.1%

24.5%

11.6%

0%

10%

20%

30%

40%

50%

60%

0

10

20

30

40

50

60

Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

€ m

illio

ns

Net Income Variable Compensation (a) Net Margin

(a) Includes variable compensation from both cost of goods sold and operating expenses

May 2019

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Dividend Trends

36

0.750.60

0.87

2.32

1.67

8.1%

6.5%

5.5%

6.6%

9.0%

0%

2%

4%

6%

8%

10%

12%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2014 2015 (c) 2016 (c) 2017 2018

Dividend Yield(a)Dividend (€)

Dividend Total Dividend Yield (a)

a) Based on year end stock price

b) Based on Basic EPS

c) Includes special dividend of € 0.10 and € 0.17 in 2015 and 2016, respectively

77% 79% 93%Payout Ratio (b): 100% 91%

Cumulative dividends: € 6.70/per share since 2011

May 2019

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37

Share Repurchase Activity

4.0

22.4 22.8

35.5

12.8

€ 8.93

€ 12.44

€ 23.74

€ 21.86 € 21.49

0.0

5.0

10.0

15.0

20.0

25.0

30.0

0

5

10

15

20

25

30

35

40

2015 2016 2017 2018 Q1-19

Avg

Co

st p

er

Sh

are

€ m

illio

ns

Share Repurchases Average Cost per Share

• Regular buyback activity continues:

• 0.6 million shares purchased in Q1-19 for € 12.8 million

• 1.8 million shares bought cumulatively until March 31, 2019 under current € 75 million share repurchase program (average price € 19.36)

• 7.1 million shares held in treasury at March 31, 2019 at average price per share of € 14.40 per share

May 2019

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Workforce Has Become More Asia Centric, Scalable and Flexible

1,489 1,489 1,549

1,724 1,692 1,626

60%64%

67%71%

73% 72%

40%36%

33%29%

27% 28%25%

35%

45%

55%

65%

75%

85%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2014 2015 2016 2017 2018 Q1-19

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 60% in 2013

• Asian production and supply chain model is

highly flexible

• European and NA fixed headcount continues to

decline:

• -39.0% since 2011

• -16.3% vs. 2015

• Aligning overhead with current market

conditions:

• 20.7% headcount reduction realized from

peak in Q1-18 to Q1-19

• Mostly Asian production temps (279 or

96% reduction)

591 540 508 502 462 452

898 949 1,041 1,222 1,230 1,174

143 50 120

316 67 69

1,6321,539

1,669

2,040

1,759 1,695

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

2014 2015 2016 2017 2018 Q1-19

Tem

p %

of

Tota

l

Headcount

Europe/NA Fixed HC Asia Fixed HC Temporary HC Temp % of Total

38May 2019