C A P I TA L M A R K E T S D AY L P K F L A S E R & E L E C T R O N I C S A G | 1 7 S E P T E M B E R 2 0 2 0

AGENDA

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15:00 CET | KEY NOTE – Big PictureGoetz M. Bendele (CEO) & Christian Witt (CFO)Presentation (30 minutes)

15:30 CET | Q&A Panel (15 minutes)

15:45 CET | WELDINGSimon Reiser (Managing Director Welding)Presentation and Q&A (20 minutes)

16:05 CET | SOLARJuergen Bergedieck (Managing Director Solar)Presentation and Q&A (20 minutes)

16:25 CET | ELECTRONICSRoman Ostholt (Managing Director Electronics)Presentation and Q&A (20 minutes)

16:45 CET | LIDERoman Ostholt (Managing Director Electronics)Presentation and Q&A (40 minutes)

17:25 CET | ARRALYZERobin Krueger (Head of Product Management and Innovation)Presentation and Q&A (15 minutes)

17:40 CET | WRAP-UP and final Q&A PanelGoetz M. Bendele (CEO) & Christian Witt (CFO)Wrap-up and Q&A (20 minutes)

END

E L E C T R O N I C SPresented by Dr. Roman Ostholt

L P K F C A P I TA L M A R K E T S D AY

INTRODUCTION

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D R . R O M A N O S T H O LT

D R . R O M A N O S T H O LT

We find solutions for future challenges in the electronics industry.

• RWTH Aachen University 2002-2007Dipl.-Ing. MechanicalEngineering

• RWTH Aachen University 2007-2011

• Dr.-Ing. Mechanical Engineering

• Fraunhofer Institute for Laser Technology 2007-2011

• Joined LPKF as Innovation Manager in 2011

• Group Technology Manager 2014-2018

• Vice President LIDE since 2018

• Managing Director of the Business Unit Electronics starting09/2019

BUSINESS UNIT MANAGEMENT ELECTRONICS

STRATEGIC APPROACHW E E N A B L E I N N O V AT I O N F O R O U R C U S T O M E R S

STRATEGY

We focus on new tasks in electronics manufacturing which we can disruptively innovate with our core competencies.

Innovation is in our DNA.

Our precise laser solutions enable miniaturization in electronics

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O U R M A C H I N E S A R E R E A D Y F O R 2 4 / 7 O P E R AT I O N I N V A R I O U S F I E L D S

SMT STENCIL TECHNOLOGY

LASER DEPANELING

MULTI PURPOSE LDS TECHNOLOGYAMP

TECHNOLOGY

SOLUTIONS FOR MASS PRODUCTION

▪ Attractive niche market

▪ Strong market position

▪ Long-term customer relationship

▪ Stencil shops

▪ Largest business in Electronics

▪ Consumer electronics

▪ Part of SMT Lines (Electronic Manufacturing Services)

▪ New level of price performance

▪ Flexible platform to realize various customer applications

▪ Boom-Bust-Light Recovery

▪ Antenna

▪ Replacement business

▪ 5G (base station)

▪ Not a key growth pillar

▪ New disruptive technology in IC Packaging

▪ Gaining traction

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O U R M A C H I N E S A R E R E A D Y F O R 2 4 / 7 O P E R AT I O N I N V A R I O U S F I E L D S

SMT STENCIL TECHNOLOGY

LASER DEPANELING

MULTI PURPOSE LDS TECHNOLOGYAMP

TECHNOLOGY

SOLUTIONS FOR MASS PRODUCTION

SMT STENCIL TECHNOLOGY

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W I T H O U R P R O C E S S K N O W H O W W E A R E A LW AY S A C U T A H E A D

NEW DIMENSIONS IN PRECISION LASER CUTTING

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O U R S T E N C I L B U S I N E S S I S S T R O N G A N D S TA B L E I N A N AT T R A C T I V E N I C H E M A R K E T

• General growth in electronics

• Enabling faster reaction times of stencil shops

• New applications- precision metal parts vs. etching- non-ferrous metal

G R O W T H D R I V E R S

P E R M A N E N T I N N O V AT I O N F O R F U R T H E R G R O W T H

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F L E X I B L E P R I N T E D C I R C U I LT B O A R D S

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R I G I D P R I N T E D C I R C U I T B O A R D S

DEPANELING OF ASSEMBLED PCBSH I G H E S T Q U A L I T Y A N D T E C H N I C A L P U R I T Y AT L O W E R C O S T S

Pizza Cutter

OUTSTANDING DEPANELING SOLUTIONS

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L A S E R D E PA N E L I N G R E P L A C E S M E C H A N I C A L S O L U T I O N S

Die PunchingMechanical Milling

C O N V E N T I O N A L M E T H O D S L A S E R D E PA N E L I N G

LPKF LASER DEPANELING SOLUTION

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H I G H E R Q U A L I T Y – L O W E R C O S T O F O W N E R S H I P

STRESS-FREE CUTTING

DUST, VIBRATION AND CARBONIZATION-FREE

CLOSE TO THE EDGE ASSEMBLY

DESIGN FREEDOM SPACE SAVING

Absolutely stress-free process

No mechanical and thermal induced

stress

Technical cleanliness, with 100% carbon

free

First laser process with independently

approved cleanliness

Cutting less than 0.5mm distance to the components

Mechanical milling needs 2mm, we just

need less than 0.5mm

Nearly no design limits to shape and

radius of the flex/PCB shape

The laser can cut any shape

Depending on layout, dramatical space and

cost saving

Customer applications with up

to 30% savings in mass production

PRICE PERFORMANCEC O S T R E D U C T I O N O F FA C T O R 1 0

EFFECTIVE CUTTING COSTS

▪ The quotient of costs to effective cutting speed [€/ mm/s]

▪ Cost reduction of a factor of 10 over the last decade

▪ Mainly due to increasingly powerful lasers with simultaneously decreasing prices of this main component

▪ Advanced processing strategies and advanced software features allow the high power available to be used

▪ Payback time: 1 – 4 years

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PRICE PERFORMANCE OF LASER DEPANELING

EFFECTIVE CUTTING COSTS

▪ The quotient of costs to effective cutting speed [€/ mm/s]

▪ Cost reduction of a factor of 10 over the last decade

▪ Mainly due to increasingly powerful lasers with simultaneously decreasing prices of this main component

▪ Advanced processing strategies and software features enable the use of the high available power

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Flex-PCB

Medical

Automotive

High value/ low quantities

High quantities lower valueV05

L A S E R D E PA N E L I N G R E P L A C E S M E C H A N I C A L S O L U T I O N S

ACTIVE MOLD PACKAGING (AMP)M A K E U S E O F T H E S U R FA C E O F T H E PA C K A G E A N D S AV E P R E C I O U S S PA C E

ACTIVE MOLD PACKAGING

Silicon chips are protected from hazardous environmental influences by “electronic packages”

Black Polymer: Epoxy Mould Compound

Real estate in electronic packages is extremely precious

One surface is largely uncultivated yet: the surface of the package itself

Domain of AMP

Combines existing LPKF technologies from LDS, drilling and cutting

AMP is a fast and reliable 2.5 D packaging approach which establishes electrical circuitry on the surface and in the volume of the Epoxy Mold Compound.

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ACTIVE MOLD PACKAGINGV A R I O U S A P P L I C AT I O N S O F S E L E C T I V E LY M E TA L L I Z E D S U R FA C E S I N PA C K A G I N G

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ACTIVE MOLD PACKAGINGL D S K N O W - H O W I S K E Y F O R C U S T O M E R B E N E F I T I N S E L E C T E D A P P L I C AT I O N S

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WHERE WE ARES TA R T I N G R O L L - O U T I N T H E I N D U S T R Y

STATUS AND OUTLOOK

Sufficient number of EMC base material suppliers qualified

A selected group of beta customers have acquired AMP tools

Start of production by customers expected 2021/2022

Fan-out structure realized wih AMP

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R e v e n u e s h a r e n e w t o o l s 2 0 2 4

SEGMENT ELECTRONICS MID-TERM PLANNINGG R O W I N G A N D B R O A D E N I N G E L E C T R O N I C S B U S I N E S S

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R e v e n u e s h a r e n e w t o o l s 2 0 1 9

LDS Depaneling Stencil Multi Purpose

AMP Depaneling Stencil Multi Purpose LDS

T H A N K Y O U !

LEGAL NOTICE | DISCLAIMER

D I S C L A I M E R R E G A R D I N G F O R W A R D - L O O K I N G S T A T E M E N T S

• This document contains forward-looking statements and statements on future expectations which reflect the current opinions and expectations of the management with respect to future events. These statements are subject to known and unknown risks and uncertainties which can neither be controlled nor precisely estimated by LPKF Laser & Electronics AG, and which could cause actual results, performances and events to differ materially from those forecast or indicated here.

• Actual results, performances and events may deviate to an unlimited extent as a consequence of: (i) general economic conditions, (ii) future changes in the performance of the financial markets, (iii) interest rates, (iv) currency exchange rates, (v) the behavior of other market participants, (vi) general competitive factors, (vii) changes in laws and regulations, (viii) changes in the policies of central banks, government authorities and/or (foreign) governments, (ix) regional and/or global conditions.

• LPKF assumes no liability and does not intend to update any forward-looking statements to reflect any events or conditions the take place after the publication of this material.

N O U P D A T I N G

• LPKF AG assumes no liability for the (correctness and completeness of the) information contained herein, and does not intend to update this material.

N O O F F E R

• This presentation is merely intended to provide information and is not an investment recommendation. It is not an offer and is merely intended for general information purposes. All the descriptions, examples and calculations contained in this presentation are only provided for the purpose of illustration.

R E G I S T E R E D T R A D E M A R K S A N D P H O T O S

• All the names and trademarks referred to in this document are covered by unlimited copyright laws, and may not be used without the express permission of the relevant registered owners. The fact that they are mentioned in this document does not imply that they are not protected by the rights of third parties or companies.

• The photos used are from LPKF. The presentation may also contain royalty-free photos from Unsplash.com.

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