Cohu, Inc. · NASDAQ:COHU
Cohu — Investor Presentation (July 2022)
34 slides from Cohu's investor presentation, Jul 11, 2022
Slide 1: Cohu Investor Presentation July 2022
COHU INVESTOR PRESENTATION July 2022
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
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Slide 3: Cohu at a Glance
COHU AT A GLANCE $3. 20 Our long-term vision is to move up ~ 23,500 the technology value chain FY21 Non-GAAP EPS() Equipment Installed Base 4-Cohu
Slide 4: Solving Customers' Most Complex Challenges
SOLVING CUSTOMERS’ MOST COMPLEX CHALLENGES % as High performance product portfolio at lower cost-of- ownership Strong market position ineach business vertical & Diverse customers and applications expanding addressable market ~ 20% share in $4.4 billion addressable market ® a Increasing semiconductor
Slide 5: Market and Technology Leadership
MARKET AND TECHNOLOGY LEADERSHIP Strong position in each business vertical SemiconductorTest® Test Interface Services Inspection & Automation ®) Metrology High fidelity measurement instruments Global footprint ‘Thermal and Vision Inspection Compact, low-power systems > Scalability Data analytics Tec
Slide 6: Driving Growth in Select End-Markets
DRIVING GROWTH IN SELECT END-MARKETS Applications hicle electrification &ADAS @-. 3 Secular tailwinds driving end-market growth (st xyarge) ~21% CAGR 3D-stacked package growth ~25% CAGR ADAS and xEV ® ‘Semi content in autos‘ ~ 43% $1,500 | SeniTet ck en sec ey (obSAM sition) ugs0 nase 56 subscriptio
Slide 7: Why We Are Winning
WHY WE ARE at lower cost-of-ownership u Precision instruments higher accuracy & yield Advanced vision ® WINNING Delivering higher yield 1% higher yield ; : Solutions approacl eaueses te faster time-to-yield ~ $5 billion Z customer value ® satisfying demand Global support greater productivity (a) Sem
Slide 8: Target Model
TARGET MODEL Revenue “ $1B Gross Margin © 49% Operating Income ® 25% 9 ad Op nce ae Non-GAAP, Append te repacing we STRATEGY Expand Semiconductor Test in high-growth markets beyond RF ® Front-end ICs 3) with scalable, precision instrumentation Accelerate Interface product sales in test cells and hig
Slide 9: Growth Strategy
pees | Lee GROWTH STRATEGY Aj? 4h FID LS Se 2-Cohu
Slide 10: Semi Test
SEMI TEST Automotive & Industrial Focused applications ‘© Automotive xEV and ADAS Growth drivers © Battery management and sensing ASSP5°) growing at 12% CAGR ® © ASSPs with added analog, power ‘and RF content are driving 2x-3x increase in IC spend per vehicle 2) Agplcbon Spa stented Pade © Reiesghes
Slide 11: Growing Beyond RF-FEM
GROWING BEYOND RF-FEM Diversification 3 0% syarch 020 2-year order CAGR Diamond, market penetration ® Doubled install base in the last 3 years [Expanding SAM in data storage analog, power management, automotive analog and RF-loT g& Extending RF leadership in Front-end Module, RF-loT, Ultra-wideband
Slide 12: Scalable Test Solutions on Diamond
SCALABLE TEST SOLUTIONS ON DIAMOND, Devices with increasing mixed signal complexity Device cost down enabling ‘market expansion 1) Based uzoncstomerpronedberchmaing dota Best-in-Class Throughput Event-Link architecture suited for efficient multisite mixed signal test Air-Cooled Universal Platform sc
Slide 13: Test Interface
TEST INTERFACE ‘Automotive & Industrial ‘Computing & Network Mobility & Consumer "7 - Focused applications Focused applications Focused applications © Automotive xEV and ADAS © Data Center & Al © mmWave 56 ‘© SiC higher efficiency offers >3.5x ‘© Input/Output bandwidth doubling ‘© Expanding applicat
Slide 14: Leadership in Automotive Test Solutions
LEADERSHIP IN AUTOMOTIVE TEST SOLUTIONS High Current Contactor eer Sa POWER THERMAL Un S nique pin architecture and heat dissipation structure delivers =30%highercurrent capacity ~2x" ~~ 50%” Lifelncrease LowerCost DataRete + Thermal Thermal Contactor CAGR Customers Se Sean x combined with Cohu test
Slide 15: Solutions in High-Performance Applications
SOLUTIONS IN HIGH-PERFORMANCE APPLICATIONS Accelerated Growth Segment Contactor SAM“ 5G Mobility -%» CAGR | i 1 Comgnyestmetes 2) PaseanptedeMedicton Coaxial Contactor High isolation for PAMg ® RE Improved isolation delivering higher signalintegrity i if 2x" Better Isolation iene — eee mmWave Contac
Slide 16: Expanding in RF Probe Card
EXPANDING IN RF PROBE CARD ¢A) 6oGtz > Multste test at mmWave performance So] Performance . Direct attach technology =7) Timeto Yield o Tumkey solution simplifies implementation v Y cut == (V ostof Test 5 integration with Cohu's Diamond, semi tester tnabescltaton ted == lv Ramy verification and full
Slide 17: Inspection & Metrology
INSPECTION & METROLOGY High-Performance Digital Focused applications © Wafer-Level Chip Scale and module inspection Focused applications ©. Silicon Carbide Known Good Die © Advanced packages2.5 / 3D test and inspection inspection and metrology © Mobility 56 devices in small form- Focused application
Slide 18: NEON Inspection Maximizes Yield
NEON INSPECTION MAXIMIZES YIELD Customer Challenges Cohu Solution Value to Customer Infrared NV-Core technology Small form-factor WLC: <©> enabling micro-scale defect upto 5% devices with sub- detection below the device surface Higher Inspection Yield millimeter size and exposed structure Artif al I
Slide 19: True Known Good Die for Module Integration
TRUE KNOWN GOOD DIE FOR MODULE INTEGRATION Customer Challenges Cohu Solution Value to Customer pmodoleiald Proven high-powertesting of vp 7% losses linked to multiple 50 um thin bare die with die integration controlled contactor insertion Higher Yield g ZS assisted by NV-Core vision Yield: - Folle-s
Slide 20: Services
SERVICES Data Analytics Focused applications Focused applications © Drive above market growth rate in spares by increased © Grow data analytics software to maximize uptime on focus on customers’ maintenance programs large and growing fleet of Cohu systems © Grow board repair, including premium servi
Slide 21: Data Intelligence Systems Increasing Output
DATA INTELLIGENCE SYSTEMS INCREASING OUPUT Real-time equipment monitoring and data analytics for Industry 4.0 factory automation of Cohu Equipment Pe colecreaupmert Dts INSIQNE Software Online Equipment Monitoring Track uptime, yield, and throughput with proactive notifiations for real-time correcti
Slide 22: DI-Core Data Intelligence Maximizes Output
DI-CORE DATA INTELLIGENCE MAXIMIZES OUTPUT Thermal Performance Out of Guard Band ¥ Real-time Whentesting temperature goes out of i. ‘toring 9v31d band, inthis case below the lower ‘ | monitoring fimit, early detection enables real-time so ofthermal calibration performance ~4% Increase in Productivit
Slide 23: Delivering Profitability and Shareholder Value
BD BBA ad ales dai DELIVERING PROFITABILITY AND SHAREHOLDER VALUE [ee tee a | | | OM 2-Cohu
Slide 24: Q2'22 Outlook
Q2'22 OUTLOOK Q4/22 Qx'22 Q2'22 Q2'22 Actual Actual Guidance) Update? Revenue $191.9M $197.8M $205-$221M $216 - $218M Gross Margin 44.1% 46.1% ~ 46% ——_Inlinewith guidance Operating Expenses) $50.7M $50.9M $54-$55M Non-GAAP EPS) $0.72 $0.66 Adjusted EBITDA ©) 20.0% 22.7% ~ 22% Expect Q2 revenue high
Slide 25: Raising the Bar
RAISING THE BAR Increased Target FY2023 Qx'22 Model” to Actuals Actuals Revenue $887M $198M Gross Margin 44% 46% $1 billion E Revenue Operating Expenses“) 23% 26% Non-GAAP EPS $3.20 $0.66 a Adjusted EBITDA © 22% 23% $4.00 ) Eps” Free Cash Flow) 386M (aM) Margin expansion tracking to mid-term target
Slide 26: Revenue Target
REVENUE TARGET sa billion 3-Year Target _ Gal ss00 Revenue CAGR se00 ~7% to an | al | 2015 A 20720182019 m2 Target® Mosel Revenue [$M] Winning new customers and expanding SAM in growing markets Substantial revenue stream from recurring ® with attractive profit profile Bree ine tsa pte %.Cohu
Slide 27: Revenue Growth to $1 Billion
Test Interface REVENUE GROWTH TO $1 BILLION Increasing Revenue in Key Secular Growth Markets Leveraging market position & leading-edge products to drive revenue in hig! growth applications in lay drivers, ADAS, xEV, RF test and in atc 4.Cohu
Slide 28: Revenue Distribution at Target Financial Model
REVENUE DISTRIBUTION AT TARGET FINANCIAL MODEL Q1'22 TTM Actual Results Target Financial Model Improved through-cycle profitability with large recurring business Gross margin expansion from growth in premium product sales
Slide 29: Track Record of Margin Expansion
TRACK RECORD OF MARGIN EXPANSION .... "er" sce Achieved es +10 Points « . of Gross Margin Expansion = ue Wis Fy FY Fie FYI FYO FYI Ex wna”? 1H22 revenue mix progressing to target model and expanding gross margin Increasing insourced manufacturing and efficiencies improves gross margin Fee eee eeenec
Slide 30: Effective Capital Allocation Strategy
EFFECTIVE CAPITAL ALLOCATION STRATEGY $. Os %, R&D Share Debt M&A Capital Investment © Repurchase Expenditures Funding organic '$70M authorized sa6MrepaidinQ2'22 ExpandSAMand —Capex light~$20M growth technology portfolio annually Repurchased 924K $79M term loanB $424M invested from sharesfors27.7M d
Slide 31: Investment Thesis
INVESTMENT THESIS $1 Billion 49% 25% 18% Revenue Gross Margin”) Operating Income Annual Free Cash Flow“ ~7%° +500bps” +400bps® ~$180M° Target3-YearRevenue — Premiumproduct salesand Cost discipline driving Driven by significant CAGR stable recurringrevenue strong operating leverage margin expansion a
Slide 32: Appendix
APPENDIX Use of Non-GAAP Financial Information: “This presentation includes non-GAAP financial measures, including non-GAAP Gross Margin/Proft, Income and Income (adjusted earings) per share, Operating Income, Operating Expense and Adjusted EBITDA that supplement the Company's Condensed Consolidated
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION 72.Cohu
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION 72.Cohu