May 9, 2013
Jefferies 2013Global Technology, Media and
Telecom Conference
Page 2May 9, 2013
..Forward Looking Statements and Regulation FDCertain matters discussed in this presentation, inc luding statements concerning Cohu's new products, expectations of business cond itions, orders, sales, expected accretion from the Ismeca acquisition, growth in th e LED market and operating results are forward-looking statements that are sub ject to risks and uncertainties that could cause actual results to differ materiall y from those projected or forecasted. Such risks and uncertainties include, but are not limited to, risks associated with acquisitions including the acquisit ion of Ismeca on December 31, 2012; inventory, goodwill and other intangible ass et write-downs; our ability to convert new products under development into product ion on a timely basis, support product development and meet customer deliv ery and acceptance requirements for next generation equipment; our rel iance on third-party contract manufacturers; failure to obtain customer acceptanc e resulting in the inability to recognize revenue and accounts receivable collectio n problems; customer orders may be canceled or delayed; the concentration of ou r revenues from a limited number of customers; intense competition in the sem iconductor test handler industry; our reliance on patents and intellectual property; compliance with U.S. export regulations; and the cyclical and unpredicta ble nature of capital expenditures by semiconductor manufacturers. These and other risks and uncertainties are discussed more fully in Cohu's fi lings with the Securities and Exchange Commission, including the most recently fi led Form 10-K and Form 10-Q. Cohu assumes no obligation to update the informatio n in this presentation.
Page 3May 9, 2013
Cohu Investment Highlights
� Enabling technologies and industry-leading products to drive market share gains
� Operating leverage provides opportunity for signifi cant earnings growth during upcycles
� Strong, debt-free balance sheet
� December 2012 acquisition of Ismeca, #1 turret hand ler company, increases SAM and provides entry into LED equipment market
� Cash dividend - currently $0.06/share
� Market leader in semiconductor test handling equipm ent
Page 4May 9, 2013
Semiconductor Manufacturing Process
Assembly TestWafer Fab
The “Front-End ”Final Manufacturing Processes
The “Back-End ”
Delta EDGE
Finishing
Cohu handlers, thermal subsystems and equipment are an essential part of the IC
manufacturing process - used with ATE to cost-effectively test ICs for quality and
functionality
Ismeca acquisition increases Cohu’s SAM and
provides expansion into finishing processes
Page 5May 9, 2013
� Cohu acquired Ismeca, the leading supplier of turre t-based semiconductor and LED test handler and back-end fin ishing equipment for $54.5 million in a cash transaction
� Acquiring Ismeca strengthens Cohu’s leadership posi tion in semiconductor test handling and provides new opport unities, including the rapidly growing LED market
� Transaction closed on December 31, 2012 - Cohu’s 201 3 Fiscal Year
Ismeca Acquisition
#2 in MEMS, Gravity-Feed and Strip Handlers
A Cohu Company
#1 in Pick&Place Handlersand Thermal Subsystems
#1 in Turret Handlers and Backend Finishing
Page 6May 9, 2013
� Complementary products in our core business
� Significantly increases Served Available Market (SA M)
� Enter fast growing LED equipment market with an ind ustry leader
� Expand product portfolio creating new customer oppo rtunities
� Strenghen and rationalize global customer support o rganization
� Leverage low -cost Asia manufacturing and supply chain
� EPS accretion >20% when business conditions improve
Ismeca Acquisition Strategic Rationale
Page 7May 9, 2013
� Increases SAM to $900M� Expansion into the turret segment extends leadershi p in handlers to
~40% market share� Entry into the fast-growing LED equipment market� Serve diversified and broad-based markets including consumer mobility,
LED, automotive, computing, industrial and power ma nagement
Leadership in Expanded SAM
Handler Market
Source: VLSI Research, Inc. and Company Estimates
(IC, Discrete & LED)
Page 8May 9, 2013
LED Market – a Key Growth Driver for Ismeca
LED Handler SAM
Source: Yole Development© - June 2011 and Company Estimates
� LED market driven by General Lighting (28% CAGR)
� Ismeca handlers well positioned for mid-high power LED test - required for General Lighting
� Customer base includes technology leaders
Packaged LED Revenue
Page 9May 9, 2013
Broadest Product Portfolio� The leader in technology and performance� Serving diversified markets
OLBCastle VTS SummitOLBCastle VTS
ME
MS
Dis
cret
eLE
DIn
dust
rial
Con
sum
er
Com
putin
g
Aut
omot
ive
Mob
ility
App
. P
roce
ssor
s
Test Handlers Enabling TechnologiesMarkets
Page 10May 9, 2013
Wide Customer Base
IsmecaCohu
Page 11May 9, 2013
Global Sales & Service Infrastructure
Singapore
Suzhou
Manila
Malacca
San Diego
GERMANY
SWITZERLAND
Chengdu
Hong Kong
Shanghai
Tianjin
JAPAN
SOUTH KOREA
TAIWAN
INDONESIA
VIETNAM
THAILAND
PORTUGAL
MOROCCO
FRANCE ITALY
MALTA
UNITED
KINGDOM
ISRAEL
Hillsboro
San Jose Chandler
Boise
Toronto
BromontBurlington
Houston
Dallas
Costa Rica
Baguio
Penang
Boston
Donguan
Major OperationsSales/Customer Support
Austin
BELGIUM
Kuala Lumpur
� Largest sales and service network in the industry.. .
Depth and Breadth is aCompetitive Advantage
Page 12May 9, 2013
Global Operations
U.S.A.
� Thermal handlers� Thermal subsystems
� Volume Handler Final Assembly & Test� Contactor design & mfg.� Industrialization� Supply Chain
Malaysia
Philippines
� Kit design & manufacturing
� Handler subassemblies
� Final Assembly & Test of specialty turret handlers
SwitzerlandGermany
� Final Assembly & Test of gravity and strip handlers
� MEMS production
� Combined manufacturing locations driving lower cost and accelerating transition of production to Asia
Page 13May 9, 2013
Semi/Semi Equipment Update
Source: SEMI 2013
Book to Bill
� Monthly orders for backend equipment increased 28% in March, the first increase in ten months; orders are still only 46% o f the May 2012 level
� Handler utilization reached 80% in March, the highes t level in two years
� A gradual recovery in semi equipment seems to be un derway. Further improvement is expected in mobility and automotive; industrial is recovering and PCs are down
� Q2 guidance from the majority of semi and semi equi pment companies is for moderate sequential improvement
Orders
$20
$70
$120
$170
$220
$270
$320
$370
$420
$470
Millions
2006 2007 2008 2009 2010 2011 2012 2013Mar
0.450.550.650.750.850.951.051.151.251.351.451.55
2006 2007 2008 2009 2010 2011 2012 2013Mar
Page 14May 9, 2013
Q1’13 Results / Q2’13 Guidance
Amounts exclude amortization of purchased intangibles, stock based compensation expense, inventory step-up, restructuring cost and other acquisition costs in connection with the acquisition of Ismeca
� Q1 Highlights� Sales $56.0M
� Gross Margin 31.6%
� Orders $60.3M
� EPS ($0.32)
� Q1 impacted ~ $0.15 per share after tax, by unusual items including IFRS to GAAP conversion at Ismeca and rev enue shortfall at BMS due to government funding delays
� Backlog $63.4M
� Q2 Guidance� Sales $65M: up 16% QoQ
� Gross margin 36-37%: up ~ 500 bps sequentially
� Op Ex $24M-$25M: down $1.8M-$0.8M sequentially
Page 15May 9, 2013
Balance Sheet ($M, except per share amounts)
� Acquired Ismeca on December 31, 2012 for a cash pur chase price of $54.5 that was funded out of existing cash reserves
� Strong balance sheet, no bank debt post Ismeca acqu isition
IsmecaDec-11 Mar-13 Acquisition
Cash & Investments 110.2$ 48.7$ (54.5)$ Accounts Receivable 37.0 56.5 Inventory 62.3 73.3 Deferred Taxes & Other 11.5 14.7
Current Assets 221.0 193.2
PP&E, net 35.5 35.7 Other Assets 78.4 118.1
Total Assets 334.9$ 347.0$
Deferred Profit 2.1$ 5.6$ Other Current Liabilities 34.2 49.0
Current Liabilities 36.3 54.6
Other Liabilities 17.6 28.0 Stockholders' Equity 280.9 264.4 Total Lilabilities & Equity 334.8$ 347.0$
Page 16May 9, 2013
� #1 in IC Test Handler Industry� December 2012 acquisition of Ismeca, the #1 turret
handler company:� Expands SAM to $900M and increases market leadershi p� Provides new opportunities, including in the rapidl y growing
LED market� Enables leveraging of established low-cost Asia man ufacturing
and supply chain� Provides cross-selling synergies � Expected to deliver >20% accretion when business co nditions
improve
� Realizing improved gross margin from new products a nd Asia manufacturing
� Strong balance post-acquisition: cash ~ $50M and no bank debt
� Quarterly dividend of $0.06 (currently yielding >2% )
Summary
May 9, 2013
Jefferies 2013Global Technology, Media and
Telecom Conference