Cohu, Inc. · NASDAQ:COHU

Cohu — Investor Day (December 2020)

73 slides from Cohu's investor day presentation, Dec 2, 2020

Slide 1: Investor Conference Presentation, December 2, 2020
December 2, 2020 =: 1:00 p.m. — 2:30 p.m. EST Presentation and OKA”
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Forward-Looking Statements: Certain statements contained inthis presentation may be considered forward-looking statements within the meaning ofthe U.S. Private Secures Ligation Reform Actof 2995 including statements regarding strategies to ex
Slide 4: Agenda and Speakers
Jeff Jones, CFO Welcome é od » | Ganesh Moorthy, Microchip | Keynote Speaker Luis Miller, CEO Driving Growth & Differentiation Chris Bohrson, GM ‘Test & Inspection Handler Group Michael Campbell, Qualcomm Keynote Speaker Devin Sheridan, GM Interface Solutions Group lan Lawee, GM SemiconductorTest Gr
Slide 6: Global Technology and Market Leader
Global Technology and Market Leader 5 2: Siam B Markets ~$631M Est. 2020 Revenue) Recurring Revenue Operating Income?) 21% 28,000+ 7% 2017-20 Revenue CAGR® Equipment Installed Base Est. Market CAGR™® (organic growth & acquistons) Qualcomm (ie) A Rtwcas surwone” 7. Ne Ge WT ae ois 2.Cohu
Slide 7: Cohu Strategy and Targets
Revenue $940M Gross Margin 48% Operating Income 23% Cohu Strategy Extend leadership in high-growth RF test with scalable, precision instrumentation Deliver high yield test and inspection for 5G, ADAS and xEV applications Increase contactor attachment rate with differentiated test cell solutions Prov
Slide 8: Driving Growth in Select End-Markets
Driving Growth in Select End-Markets Mobility 5G, data generation & transmission, automotive ADAS, electrification and telematics Secular tailwinds driving Leader in Semiconductor Test & Inspection end-market growth pled a @ @ © © 25x RF content growth driven by aad '5G-enabled smartphones a tie Res
Slide 9: Delivering Customer Value
Delivering Customer Value Vield/OEE Accelerating time to yield and greater productivity through the test cell 2% higher yield in the semiconductor test and inspection ~ pays for Capex One-stop-shop for Test Cell Solutions leading-edge solutions in test & inspection ——_ Fly 4 Test GD tie tera stem Ch
Slide 10: Path for Growth and Differentiation
Path for Growth and Differentiation Above-Market Accelerating Disciplined Revenue Growth Profitability Capital Allocation ~14% revenue CAGR; Significant operating leverage Generating $160M+ 2x the market 23% operating income) annual free-cash-flow Share gain with leading edge Accelerating time to yi
Slide 11: Michael Campbell, Qualcomm Keynote Speaker
Michael Campbell Qualcomm Keynote Speaker 2 Cohu |
Slide 12: Qualcomm Overview for Cohu
Michael Campbell Senior Vice President Qualcomm Technologies Inc. Qualcomm overview for COHU November 2020
Slide 13: Around the world
4 Awoud where! y => virtually-everyon -and everything!is;,
Slide 14: The world's leading wireless
The world’s leading wireless
Slide 15: Leading wireless innovation for years
Leading wireless innovation for 35 years Digitized mobile Redefined Transforming communications computing industries Qualcomm Analog to digital Desktop to smartphones Connecting virtually everything Transforming how the world connects, computes and communicates
Slide 16: The R&D Engine
Sect Company iso o03FY20; FAD w cmdaore wend see 1885 The R&D Engine $64B+ in cumulative R&D 140,000+ Granted patents /pending applications 300+ License agreements
Slide 17: World-class technology portfolio
World-class technology portfolio Computing Wireless connectivity 2cnGKGse 802.11 naciax (Wi 6) 802.11ad (60GH2) Bluotooth 802154 vex GNSSiLocation RF-FrontEnd Power amps Acousticfiters RF switches LNAS ‘Antennatuner Envelope tracker Processors CPUIGPUIDSPIAI processor Memory controler ‘Secure proces
Slide 18: Key business segments
Slide 19: Qualcomm growth vectors
Qualcomm growth vectors Strategy playing out as planned resulting in substantial growth and opportunity tenths Increase in content Scale in adjacent New opportunities enabled by with 5G businesses 5G and changes in computing
Slide 20: With 5G, wireless becomes the superior network technology
Slide 21: With 5G, wireless becomes the superior network technology
With 5G, wireless becomes the superior network technology, disrupting everything Up to te tobe economic impact of sop 5G-enabled goods and services in 2035
Slide 22: Not just another handset upgrade cycle
Not just another handset upgrade cycle Decrease in Greater experienced More spectrum end-to-end latency throughput efficiency Highertraffic Greater network Increased capacity efficiency connection density
Slide 23: accel
accel era
Slide 24: Fueling digital transformation across industries
Fueling digital transformation across industries 5G will enableup to $13 trillion of global economic output in 2035 Healthcare [™, i = Roneunure cd Vi : We ih is) « E>) &: te 5 nom Saad ome te
Slide 25: per, &
* per, & rai «\@
Slide 26: Multimedia streaming
Multimedia streaming Paradigm shift in entertainment Our technologies are foundational to innovative services, such as: + Netflix + Spotify + Prime Video + Apple Music * Hulu
Slide 27: This is an age when
This is an age when ina
Slide 28: Intelligent architectures, Immersive entertainment
Intelligent Immersive architectures entertainment
Slide 29: This is the age of smarter
his is the age ofa | arter, more
Slide 30: Making virtually everything smarter
any A) 7 sithiis'is the age that is making virtually “everything arter
Slide 31: This is the age of real 5G, made by Qualcomm
This is the age .real 5G; made _ by Qualcomm Inventing breakthrough technologies | _Enablingcustomers | _Transforming industries Enrichinglives
Slide 32: Qualcomm Thank you
Qualcomm Thank you Followus on: f ¥W in @ For more information, visit us at: www.qualcomm.com & www.qualcomm.com/bl
Slide 33: Ian Lawee, Semiconductor Test Group
lan Lawee Semiconductor Test Group Portfolio of instrumentation and universal platform for testing semiconductor devices with best-in-class solutions in RF, digital and mixed signal applications, enables faster time to yield. Cohu Joined in April 2029. More than 25 years experience in both semicondu
Slide 34: Increasing Test Intensity Driving Growth
Increasing Test Intensity Driving Growth CohuSAM © Sub-6G and mmWave 5G RF Ip More frequencies and 600M enabling higher data bandwidth, | bandwidths increasing test lower latency and new products intensity Target Rev. CAGR 18% © Wi-Fi6E andUltra-Wideband RF || 0 New Wi-Fispectrum requires growth dri
Slide 35: Semi Test Strategy Accelerating Time to Yield
Semi Test Strategy Accelerating Time to Yield z 30% 30% 430% Value Proposition oe Fs st 2 © RedDragon RF © Higher frequency and modulation bandwidth = = mente ‘Ss. Instrument Suite covering emerging and legacy RF standards S| ew “> wapthe © Modular upgrade option for mmWave devices t| wg ef © Establ
Slide 36: RF Test Solutions
RF Test Solutions Se.
Slide 37: Semi Test
Semi Test CohuSAM $1,100M Target Revenue CAGR 17% Cohu Strategy Delivering best-in-class solutions to 5G and loT applications in expanding $400M” RF test segment Expanding capabilities of the low-cost universal test platform to address multiple markets Solving the hardest test cell integration chall
Slide 38: Ganesh Moorthy, Microchip Keynote Speaker
Ganesh Moorthy Microchip Keynote Speaker 4. Cohu |
Slide 39: Cohu Investor Conference: Microchip
Cohu Investor Conference XS MICROCHIP A Leading Pro of Smart, Connected and Secure Embedded Control Solutions Ganesh Moorthy President & COO December 2, 2020
Slide 40: Corporate Overview
Corporate Overview Leading Total Systems Solutions Provider: + High-performance standard and specialized Clock and Timing solutions Microcontrollers, Digital Signal Controllersand Wireless and Wired Connectivity solutions Microprocessors FPGA solutions * Mixed-Signal, Analog, Interface and Security
Slide 41: Our Vision
Our Vision Be The Very Best Embedded Control Solutions Company Ever io SMART | CONNECTED | SECURE
Slide 42: Providing Total System Solutions
Providing Total System Solutions Microcontrollers Microprocessors FPGA/ SoCs KS) MicrocHip
Slide 43: Annual Net Sales Growth
$ Million Annual Net Sales Growth 6000 120 consecutive quarters of profitability! 000 MCU mAnalog mFPGA mLMO ——— ll —
Slide 44: Worldwide Microcontroller Market Share
Worldwide Microcontroller Market Share 1991 Rank 1996 Rank 2003 Rank 2008 Rank 2014 Rank 2018 Rank 2019 Rank 1991 81996 date extropolated from 8-bt MCU: Source: Gartner and Microchip Noorls———Motoola Renesas ees ees renesas ins i 1 totorols hotc Re Re Re Re } 2.0% 2 el nec Motorola nec nec rrescale
Slide 45: Analog Market Share
Analog Market Share Leading Analog IC Suppliers ($M) 2018 ‘Company 2018 2019 * * Rank Change _Marketshare 1 Texas Instruments 10,801 10,223 5% 19% 2 Analog Devices 5505 5,169 6% 10% 3 Infineon 3810 3,755 1% ™% 4 st 3,373 3,283 3% 6% 5 Skyworks Solutions 3,686 3,205 “13% ™% 6 NXP 2,645, 2,564 -3% 5%
Slide 46: Market Megatrends
Market Megatrends Industrial ¢ Data Center & Computing Automotive BE) Communications ® Data Centers Electric Aerospace & Defense Al/Machine Learning Consumer ADAS/Autonomous Driving ©)Microcuip
Slide 47: Revenue By End Market
Revenue By End Market m Industrial = Data Center & Computing @ Automotive = Communication m™ Consumer = Aerospace & Defense ©)Microcuip
Slide 48: Industrial
Industrial 28% of Sales
Slide 49: Automotive
Automotive
Slide 51: Suppliers Are Our Partners
Suppliers Are Our Partners Microchip’s Partnership with Cohu * Partnership developed since 2005 * Cohu listens to us and seeks our input in their equipment roadmaps * Cohu understands that capital equipment requires a long- term view ¢ Use of Microchip semiconductor solutions in their products ©)Mic
Slide 52: Cohu Enables Manufacturing Efficiency
Cohu Enables Manufacturing Efficiency Typical Test High Parallel Test Reduced Footprint by 90% BA BS LEQ, Oa rain Reduced Labor Requirements by 85% ©)Microcuip
Slide 53: Thank You
Thank You Microchip
Slide 54: Chris Bohrson, Test and Inspection Handler Group
Chris Bohrson Test and Inspection Handler Group Portfolio of equipment used to automate movement of semiconductor devices, control temperature during test and provide vision inspection; ensures quality and optimizes yield in volume production. Cohu Joined in May 2026. More than 30 years experience i
Slide 55: Package Evolution Stressing Handling and Inspection
Package Evolution Stressing Handling and Inspection CohuSAM. 300M“ Target Rev. CAGR 21% CohuSAM 400M) Target Rev. CAGR ™% Mobility & Inspection Focused A| © ADAS semis for driver monitoring, collisionwarning, auto parking, autonomous driving © xEVst*); >50% of unit sales by 2027; 3x growth in $ cont
Slide 56: Test and Inspection Delivering Higher Yield
Test and Inspection Delivering Higher Yield Value Proposition ActiveThermal 0 Cohu's T-Core (ATC) dynamically compensates Control (ATC) device overheating, minimizing yield loss Advanced © Cohu's NV-Core advanced vision with infrared Inspection technology inspects below the silicon surface ‘© NV-Cor
Slide 57: Handler & Inspection
Handler & Inspection CohuSAM $900M Target Revenue CAGR 12% Cohu Strategy Focused on fast growing Automotive ADAS, xEV and Mobility applications Deploying Al to accelerate growth in $200M™ Inspection market Improving test cell yield with differentiated thermal and interface technologies 4Cohu
Slide 58: Devin Sheridan, Interface Solutions Group
Devin Sheridan Interface Solutions Group Full suite of test contactors that provide the electrical interface between the tester and the semiconductor device presented by the handler; optimizes signal performance via an array of consumable probe pins. Cohu Joined in May 2020, More than 27 years exper
Slide 59: Test Contactor Growth Opportunity
Test Contactor Growth Opportunity Target Rev. CAGR 26% Mobility & Consumer Furey CohuSAM $100M 0) Target Rev. CAGR 16% CohuSAM. 200M Target Rev. CAGR 23% Computing & Network (9 Company estimates © xEV driving higher power, smaller packages & multisite test © ADAS processortest requires tighter tempe
Slide 60: Test Contactors Extending Value in Key Segments
Test Contactors Extending Value in Key Segments Cohu Solutions Value Proposition Yield OEE High ot Ramp High Fidelity RF High Performance Digital Precision Analog Intelligent and Embedded Sensors © Contactor platform with direct signal path for mmWave applications up to 100 GHz © Probe technology sp
Slide 61: Cohu Test Cell Solving Time to Yield
Cohu Test Cell Solving Time to Yield (@) Active Thema! Control
Slide 62: Test Contactor
Test Contactor CohuSAM $500M Target Revenue CAGR 20% Cohu Strategy Innovating conventional probe technology to address both 5G and data center markets Leverage Cohu’s leadership position in automotive to win applications in ADAS and vehicle electrification Deploying differentiated test cell solution
Slide 63: Delivering Profitability and Shareholder Value
Jeff Jones CFO Delivering Profitability and ShareholderValue 4-Cohu |
Slide 64: Q4'20 Update and Q1'21 Outlook
Q,4’20 Update and O1’21 Outlook Q4'20 Qy'20 Guidance“) Update Revenue $176 - $192M $195 - $200M Gross Margin ©) 44% - 45% 45% - 46% Operating Expenses ~$51M ~$53M j Adjusted EBITDA Gripe cloned (ees Serer Share gain in RF test and accelerating automotive demand Est. test cell utilization improved to
Slide 65: Strategy & Execution Yielding Results
Strategy & Execution Yielding Results Revenue ($M) () Gross Margin (2) Adjusted EBITDA ?) * ay 2017 2018 2019 202064 2017 2018 2019 1H20 2H20E 2017 2018 2019 1H20 2H20E Driving revenue growth through value-added, differentiated technologies and products focused on select end-markets Strong operating
Slide 66: Target Financial Model
Target Financial Model Updated Model delivers $3.60 Non-GAAP EPS on revenue of $940M 2020 Est.(®) Me ce Target Quarterly Model | Revenue 631M $190M $210M_~— $235M_—s$250M sacs [BRR 80.55 $070 $0.90 $2.00 7% BB aso > 0 esregarding vse forwartloking non-GAAP gues 2Cohu |
Slide 67: Capital Allocation
Capital Allocation Cash and Investments $171 | Total Debt $346 Net Debt / Adjusted EBITDA“ 32K Reinvest in the business Minimum cash for operations ~ $80M Strong organic growth opportunities Production ramps may require additional cash to fund Targeting R&D at ~ 12% of sales inventory and receivable
Slide 68: Path to $940M Target
Path to $940M Target Revenue Distribution ( M Revenue Growth by Market Segment $1,000 $900 = #800 = SemiTest $600 a $500 2020 Est” Automotive Mobility Computing _ Industrial Est. 2020 Revenue? is ~ s586systems and ~ 45% recurring Recurring by Business: Test & Inspection Handlers 49%, Semi Test 23%,
Slide 69: Investment Thesis
Investment Thesis $2,500M $940M 48% 23% SAM Revenue Gross Margin) Operating Income ~7% ~14% +400 bps +1, 100 bps Market CAGR TargetRevenueCAGR —ScalableAsia operations _ Disciplined Opex spending Leading-edge Growing 2x faster Benefiting from mix Strong>17% free cash flow; solutions targeting than o
Slide 70: Q&A
| Luis Miller, CEO Jeff Jones, CFO Profitability & ShareholderValue Driving Growth & Differentiation O&A @ ra) lan Lawee, GM SemiconductorTest Group | Chris Bohrson, GM Test & Inspection Handler Group Devin Sheridan, GM Interface Solutions Group
Slide 71: Appendix
Appendix includes non-GAAP financial measures, including non-GAAP Gross Margin/Proft, Income and income (adjusted earnings) per share, Operating Income, Operating Expense and Adjusted EBITDA that supplement the Company's Condensed Consolidated Statements of Operations prepared under generally ‘accep
Slide 72: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Az Months Ending nthstnding | 12Monthstading | smonttstoding | aMonthsEnding | 9 Monts Ending ‘ Dec30, mofnet | Deczs, wotNnet | Dec28, wofNet | Jun27, MofNet | Sep2s, wotNet | Sep26, %ofNet ‘Goss Marin Reconlition 2017 Sale 2018 Sales 2019" Sales 2020 sles 2020" Sale
Slide 73: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ‘9 Months Ending «p26, Diuted nmings Recondition ee oss From Continuing Operations- GAAP Fees (05H Share based compensation 10319026 Amorivation of purchased intangible assets msi 08 Manufacturing anstion and severance costs 218 ool estruturingcosts related to invento

Cohu — Investor Day (December 2020) on 6ix

Cohu — Investor Day (December 2020)

Slide 1: Investor Conference Presentation, December 2, 2020

Slide 2: Welcome and Agenda

Slide 3: Cautionary Statement Regarding Forward-Looking Statements

Slide 4: Agenda and Speakers

Slide 5: Driving Growth and Differentiation

Slide 6: Global Technology and Market Leader

Slide 7: Cohu Strategy and Targets

Slide 8: Driving Growth in Select End-Markets

Slide 9: Delivering Customer Value

Slide 10: Path for Growth and Differentiation

Slide 11: Michael Campbell, Qualcomm Keynote Speaker

Slide 12: Qualcomm Overview for Cohu

Slide 13: Around the world

Slide 14: The world's leading wireless

Slide 15: Leading wireless innovation for years

Slide 16: The R&D Engine

Slide 17: World-class technology portfolio

Slide 18: Key business segments

Slide 19: Qualcomm growth vectors

Slide 20: With 5G, wireless becomes the superior network technology

Slide 21: With 5G, wireless becomes the superior network technology

Slide 22: Not just another handset upgrade cycle

Slide 23: accel

Slide 24: Fueling digital transformation across industries

Slide 25: per, &

Slide 26: Multimedia streaming

Slide 27: This is an age when

Slide 28: Intelligent architectures, Immersive entertainment

Slide 29: This is the age of smarter

Slide 30: Making virtually everything smarter

Slide 31: This is the age of real 5G, made by Qualcomm

Slide 32: Qualcomm Thank you

Slide 33: Ian Lawee, Semiconductor Test Group

Slide 34: Increasing Test Intensity Driving Growth

Slide 35: Semi Test Strategy Accelerating Time to Yield

Slide 36: RF Test Solutions

Slide 37: Semi Test

Slide 38: Ganesh Moorthy, Microchip Keynote Speaker

Slide 39: Cohu Investor Conference: Microchip

Slide 40: Corporate Overview

Slide 41: Our Vision

Slide 42: Providing Total System Solutions

Slide 43: Annual Net Sales Growth

Slide 44: Worldwide Microcontroller Market Share

Slide 45: Analog Market Share

Slide 46: Market Megatrends

Slide 47: Revenue By End Market

Slide 48: Industrial

Slide 49: Automotive

Slide 50: Manufacturing Locations

Slide 51: Suppliers Are Our Partners

Slide 52: Cohu Enables Manufacturing Efficiency

Slide 53: Thank You

Slide 54: Chris Bohrson, Test and Inspection Handler Group

Slide 55: Package Evolution Stressing Handling and Inspection

Slide 56: Test and Inspection Delivering Higher Yield

Slide 57: Handler & Inspection

Slide 58: Devin Sheridan, Interface Solutions Group

Slide 59: Test Contactor Growth Opportunity

Slide 60: Test Contactors Extending Value in Key Segments

Slide 61: Cohu Test Cell Solving Time to Yield

Slide 62: Test Contactor

Slide 63: Delivering Profitability and Shareholder Value

Slide 64: Q4'20 Update and Q1'21 Outlook

Slide 65: Strategy & Execution Yielding Results

Slide 66: Target Financial Model

Slide 67: Capital Allocation

Slide 68: Path to $940M Target

Slide 69: Investment Thesis

Slide 70: Q&A

Slide 71: Appendix

Slide 72: GAAP to Non-GAAP Reconciliation

Slide 73: GAAP to Non-GAAP Reconciliation