GlobeNewswire Inc | Jul 27, 2021 03:36AM EDT

July 27, 2021

Q2-21 Revenue of 226.1 Million and Net Income of 93.5 Million Up 57.9% and 148.7%, Respectively, vs. Q1-21. Results Exceed Expectations

H1-21 Revenue and Net Income Reach 369.3 Million and 131.1 Million, RespectivelyShare Buyback Program Increased 60.0 Million

DUIVEN, The Netherlands, July 27, 2021 (GLOBE NEWSWIRE) -- BE Semiconductor Industries N.V. (the Company" or "Besi") (Euronext Amsterdam: BESI; OTC markets: BESIY, Nasdaq International Designation), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the second quarter and first half year ended June 30, 2021.

Key Highlights Q2-21

-- Revenue of 226.1 million, up 57.9% vs. Q1-21 and up 81.9% vs. Q2-20 due to broad based growth across end-user and geographic markets with particular strength in high-end mobile applications. Exceeded guidance due to higher than anticipated shipments from backlog -- Orders of 200.2 million, down 38.8% vs. record levels achieved in Q1-21 related to significant Q1-21 smartphone capacity build. Up 97.6% vs. Q2-20 due primarily to increased demand for high performance computing, mainstream electronics and automotive applications -- Gross margin of 62.1%, up 3.9 points vs. Q1-21, exceeded guidance primarily due to more favorable product mix and labor efficiencies from significantly higher revenue. Slightly higher than Q2-20 despite adverse forex influences and additional costs to scale Besis production capacity -- Net income of 93.5 million grew 55.9 million (148.7%) vs. Q1-21 and 53.7 million (134.9%) vs. Q2-20 primarily due to significantly higher revenue, more favorable product mix and cost control efforts. Net margin increased to 41.3% vs. 26.3% in Q1-21 and 32.0% in Q2-20

Key Highlights H1-21

-- Revenue of 369.3 million, up 71.3% vs. H1-20 reflecting strong demand across end-user markets, geographies and customers and favorable market conditions -- Orders of 527.3 million grew 307.4 million, or 139.8%, primarily due to strong mobile build with particular strength in Q2-21 for mainstream electronics, automotive and computing applications -- Gross margin reached 60.5%, up 0.8 points vs. H1-20 primarily due to Besis strong market position, more favorable product mix and increased labor efficiencies, partially offset by adverse forex movements -- Net income of 131.1 million increased 77.4 million, or 144.1%, vs. H1-20. Net margin grew to 35.5% vs. 24.9% in H1-20 -- Net cash increased by 120.8% vs. Q2-20 to reach 206.7 million -- Share buyback program increased by 60 million to 185 million and extended to October 2022

Outlook

-- Q3-21 revenue estimated to decrease by approximately 5-15% vs. Q2-21 consistent with seasonal trends. Gross margin anticipated to range between 60-62%

(? millions, except EPS) Q2- Q1- ? Q2- ? H1- H1- ? 2021 2021 2020 2021 2020Revenue 226.1 143.2 +57.9% 124.3 +81.9% 369.3 215.6 +71.3%Orders 200.2 327.1 -38.8% 101.3 +97.6% 527.3 219.9 +139.8%Operating Income 106.7 48.4 +120.5% 48.4 +120.5% 155.0 67.2 +130.7%EBITDA 110.9 52.6 +110.8% 53.1 +108.9% 163.5 77.1 +112.1%Net Income 93.5 37.6 +148.7% 39.8 +134.9% 131.1 53.7 +144.1%EPS (basic) 1.23 0.51 +141.2% 0.55 +123.6% 1.76 0.74 +137.8%EPS (diluted) 1.12 0.47 +138.3% 0.50 +124.0% 1.58 0.69 +129.0%Net Cash & Deposits 206.7* 216.2 -4.4% 93.6* +120.8% 206.7 93.6 +120.8%

* Reflects cash dividend payments of 129.4 million and 73.5 million in Q2-21 and Q2-20, respectively.

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:Besi reported strong results for the second quarter and the first half year as we successfully ramped production to meet increased customer demand in the current upturn while controlling expense development.

Revenue of 226.1 million increased by 57.9% versus Q1-21 and 81.9% versus Q2-20 due to broad based growth across all key end-user markets and geographies. We experienced particular strength in shipments for high-end mobile applications associated with the capacity build in Q1-21. Revenue was significantly above guidance due to higher than anticipated shipments from backlog as Besi managed supply chain issues and pandemic restrictions in various countries. As such, we were able to achieve an annualized run rate of approximately 900 million this quarter which brings us closer to our target revenue objective.

In addition, orders of 200.2 million almost doubled versus Q2-20 (+97.6%) reflecting ongoing market strength as well as increased demand for high performance computing, cloud infrastructure, mainstream electronics and automotive applications from both IDMs and Asian subcontractors. Included in Q2-21 bookings were orders for hybrid bonding systems from two major customers with follow on orders anticipated in Q3-21.

Net income for the quarter reached 93.5 million, an increase of 55.9 million (+148.7%) and 53.7 million (+134.9%) versus Q1-21 and Q2-20, respectively. Similarly, net margins grew to 41.3% this quarter, an increase of 15.0 points versus Q1-21 (26.3%) and 9.3 points versus Q2-20 (32.0%) reflecting the enhanced profit potential of Besis business model. Strong profit growth was due primarily to significantly higher revenue levels combined with gross margins that exceeded expectations and disciplined overhead management. The operating leverage in our model was evident in a reduction of operating expenses as a percentage of revenue from 24.4% and 23.0% in Q1-21 and Q2-20, respectively, to 14.9% in Q2-21. Upward gross margin development in Q2-21 versus Q2-20 was limited by adverse forex influences from a weaker dollar versus the euro and additional costs incurred to rapidly scale production capacity.

Besis first half results were also solid with revenue reaching 369.3 million, an increase of 153.7 million, or 71.3%, versus H1-20 and net income rising 144.1% to reach 131.1 million which was approximately equal to net income for all of fiscal 2020.

Our liquidity position continued to expand with total cash and deposits at June 30, 2021 of 511.4 million (+39.5% versus June 30, 2020) despite the significant working capital investment necessary to finance Besis rapid revenue growth and increased capital allocation in the form of dividends and share repurchases. Net cash of 206.7 million at quarter end increased by 120.8% versus June 30, 2020 aided by the conversion in H1-21 of 104.3 million of our 2.5% Convertible Notes due 2023. Given Besis strong cash flow generation, we intend to increase our share repurchase program by 60.0 million to a total of 185.0 million and to extend its duration until October 2022.

At present, our strategic priorities focus on maintaining the health and safety of our employees in the face of new COVID-19 variants, meeting customer delivery schedules in a challenging production environment, expanding development efforts for Besis wafer level activities and joint development program with Applied Materials, Inc. and allocating resources to support the development and growth of existing and next generation product portfolios.

Looking forward, we believe that the market drivers supporting the growth of the assembly equipment market in this upcycle remain intact. For Q3-21, we estimate that revenue will decline by 5-15% versus Q2-21, consistent with seasonal order trends inherent in our business. In addition, we forecast gross margins in Q3-21 to range between 60-62% and for operating expenses to decrease by 5-10% versus the 33.6 million realized in Q2-21.

Second Quarter Results of Operations

Q2-2021 Q1-2021 ? Q2-2020 ?Revenue 226.1 143.2 +57.9% 124.3 +81.9%Orders 200.2 327.1 -38.8% 101.3 +97.6%Book to Bill Ratio 0.9 2.3 -1.4 0.8 +0.1

Q2-21 revenue of 226.1 million increased by 57.9% versus Q1-21 and 81.9% versus Q2-20 due to broad based growth across end-user and geographic markets with particular strength in high-end mobile applications. In addition, revenue growth also benefited from increased shipments for mainstream electronics applications to Asian subcontractors and high performance computing and automotive applications to leading IDMs. Revenue exceeded guidance (+30-40% versus Q1-21) due to higher than anticipated shipments from backlog.

Orders of 200.2 million decreased 38.8% versus the record levels achieved in Q1-21 related to the significant Q1-21 capacity build by high-end smartphone producers. However, orders increased 97.6% versus Q2-20 reflecting ongoing market strength as well as strong demand for high performance computing, mainstream electronics and automotive applications. Per customer type, IDM orders decreased 19.5 million, or 14.9%, versus Q1-21 and represented 56% of total orders for the period. Subcontractor orders decreased by 107.4 million, or 54.7%, versus Q1-21 and represented 44% of total orders.

Q2-2021 Q1-2021 ? Q2-2020 ?Gross Margin 62.1% 58.2% +3.9 62.0% +0.1Operating Expenses 33.6 34.9 -3.7% 28.6 17.5%Financial Expense/(Income), net 2.8 4.5 -37.8% 2.7 +3.7%EBITDA 110.9 52.6 +110.8% 53.1 +108.9%

Besis gross margin grew to 62.1% in Q2-21, an increase of 3.9 points versus Q1-21 and exceeded guidance (58-60%) primarily due to higher than anticipated shipments from backlog for mobile applications and increased labor efficiencies from significantly higher revenue levels. The Q2-21 gross margin was slightly higher than Q1-21 due to increased labor efficiencies partially offset by adverse forex influences from an increase in the euro versus the US dollar and additional costs to scale Besis production capacity.

Q2-21 operating expenses declined by 1.3 million, or 3.7%, versus Q1-21 and were in-line with guidance. The decrease was primarily due to a 6.2 million reduction in share-based compensation expense partially offset by increased variable sales related expenses due to Besis 57.9% revenue growth. Operating expenses increased by 5.0 million, or 17.5%, versus Q2-20 primarily due to increased variable sales related expenses and increased R&D spending for next generation wafer level assembly systems. As a percentage of revenue, operating expenses declined to 14.9% in Q2-21 versus 24.4% in Q1-21 and 23.0% in Q2-20.

Q2-21 financial expense, net decreased by 1.7 million versus Q1-21 as a result of a 91.0 million reduction in Besis 2.5% Convertible Notes due 2023 due to substantial Noteholder conversions during the quarter.

Q2-2021 Q1-2021 ? Q2-2020 ?Net Income 93.5 37.6 +148.7% 39.8 134.9%Net Margin 41.3% 26.3% +15.0 32.0% +9.3Tax Rate 10.0% 14.3% -4.3 12.9% -2.9

Net income reached 93.5 million in Q2-21, an increase of 55.9 million, or 148.7%, versus Q1-21 primarily due to (i) a 57.9% revenue increase, (ii) a 3.9 point increase in gross margin, (iii) a reduction in operating expenses as a percentage of revenue of 9.5 points and (iv) a lower effective tax rate primarily due to a 2.4 million upward revaluation of deferred tax assets. Similarly, net income increased by 53.7 million, or 134.9%, versus Q2-20 primarily as a result of an 81.9% revenue increase combined with a significant reduction in operating expenses as a percentage of revenue from 23.0% to 14.9% due to ongoing cost control efforts of non-variable sales related expenses. As a result, Besis net margin increased to 41.3% in Q2-21, a significant increase versus the 26.3% and 32.0% realized in Q1-21 and Q2-20, respectively.

Half Year Results of Operations

H1-2021 H1-2020 ?Revenue 369.3 215.6 +71.3%Orders 527.3 219.9 +139.8%Gross Margin 60.5% 59.7% +0.8Operating Income 155.0 67.2 +130.7%Net Income 131.1 53.7 +144.1%Net Margin 35.5% 24.9% +10.6Tax Rate 11.3% 13.3% -2.0

H1-21 revenue reached 369.3 million, up 71.3% versus H1-20 reflecting strong demand across Besis end-user markets, geographies and customers and favorable underlying market conditions. In particular, it reflected a strong capacity build for high-end smart phones by customers in anticipation of new product introductions in H2-21.

Similarly, orders of 527.3 million grew by 307.4 million, or +139.8%, versus H1-20 due to higher bookings for mobile applications as well as strength in Q2-21 for mainstream electronics, automotive and computing applications. IDM and subcontractor orders represented 46% and 54%, respectively, of H1-21 orders versus 42% and 58%, respectively, in H1-20.

Besis H1-21 net income of 131.1 million grew by 77.4 million, or 144.1%, versus H1-20 and its net margin increased by 10.6 points to 35.5% as increased revenue and gross margin more than offset a 7.1 million, or 11.5%, increase in operating expenses principally associated with increased share-based compensation expense ( 5.4 million). As a percentage of revenue, operating expenses decreased to 18.6% in H1-21 versus 28.5% in H1-20.

Financial Condition

Q2 Q1 ? Q2 ? H1 H1 ? 2021 2021 2020 2021 2020Total Cash and Deposits 511.4 605.8 -15.6% 366.6 +39.5% 511.4 366.6 +39.5%Net Cash and Deposits 206.7 216.2 -4.4% 93.6 +120.8% 206.7 93.6 +120.8%Cash flow from Ops. 51.2 26.2 +95.4% 22.9 +123.6% 77.4 49.4 +56.7%

At the end of Q2-21, Besi had a strong liquidity position with total cash and deposits aggregating 511.4 million. Total cash and deposits decreased by 94.4 million versus Q1-21 due primarily to (i) the payment of 129.4 million in cash dividends to shareholders, (ii) 10.1 million of share repurchases and (iii) 4.9 million of capitalized development spending which was partially offset by cash flow from operations of 51.2 million.

Net cash of 206.7 million at quarter end increased by 113.1 million, or 120.8%, versus June 30, 2020 primarily due to the conversion by Noteholders over the past twelve months of 112.3 million principal amount of the 2.5% Convertible Notes due 2023. As a result, the principal amount outstanding declined to 5.7 million and Besis shares outstanding increased to 78.1 million at quarter end.

Share Repurchase Activity/Extension and Increase of Share Repurchase Program During the quarter, Besi repurchased 146,521 of its ordinary shares at an average price of 68.78 per share for a total of 10.1 million. Cumulatively, as of June 30, 2021, 3.8 million shares have been purchased under the current 125 million share repurchase program at an average price of 27.32 per share for a total of 105.0 million. As of such date, Besi held approximately 0.4 million shares in treasury, equal to 0.5% of its shares outstanding.

Besi will increase the amount of its current share buyback program by 60.0 million for an aggregate amount of 185.0 million and extend its end date until October 30, 2022. The share repurchase program was initiated for capital reduction purposes and to help offset dilution related to Besis Convertible Notes and shares issued under employee stock plans. It is funded using Besis available cash resources and effective since July 26, 2018. At present, Besi has authority until October 30, 2022 to purchase up to 10% of its shares outstanding (approximately 7.9 million shares).

The share repurchase program will be executed in accordance with industry best practices and in compliance with European buyback rules and regulations and may be suspended or discontinued at any time. Besi has engaged an independent broker for the program and all purchases will be executed through Euronext Amsterdam and Multilateral Trading Facilities as defined by the Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and subject to the rules of the relevant Exchange.

OutlookBased on its June 30, 2021 order backlog and feedback from customers, Besi forecasts for Q3-21 that:

-- Revenue will decrease by approximately 5-15% vs. the 226.1 million reported in Q2-21 consistent with seasonal trends -- Gross margin will range between 60-62% vs. the 62.1% realized in Q2-21 -- Operating expenses will decrease by 5-10% vs. the 33.6 million reported in Q2-21

Investor and media conference callA conference call and webcast for investors and media will be held today at4:00 pm CEST (10:00 am EDT). The dial-in for the conference call is (31) 20 5315851. To access the audio webcast and webinar slides, please visit www.besi.com.

Basis of PresentationThe accompanying condensed Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. Reference is made to the Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements as included in our 2020 Annual Report, which is available on www.besi.com.

AboutBesiBesi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries offering high levels of accuracy, productivity and reliability at a low cost of ownership. The Company develops leading edge assembly processes and equipment for leadframe, substrate and wafer level packaging applications in a wide range of end-user markets including electronics, mobile internet, cloud server, computing, automotive, industrial, LED and solar energy. Customers are primarily leading semiconductor manufacturers, assembly subcontractors and electronics and industrial companies. Besis ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY Nasdaq International Designation) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.

Contacts: Richard W. Blickman, President & CEO CFF CommunicationsHetwig van Kerkhof, SVP Finance Frank JansenTel. (31) 26 319 4500 Tel. (31) 20 575 4024investor.relations@besi.com besi@cffcommunications.nl

CautionConcerningForwardLookingStatementsThis press release 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;the extent and duration of the COVID-19 pandemic and measures taken to contain the outbreak, and the associated adverse impacts on the global economy, financial markets, and our operations as well as those of our customers and suppliers; failure todevelop 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 industry 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, including as a result of restrictions on immigration, travel or the availability of visas for skilled technology workers as a result of the COVID-19 pandemic; those additional risk factors set forth in Besi's annual report for the year endedDecember 31, 2020and 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.

Consolidated Statements of Operations

(euro in thousands, except share Three Months Ended Six Months Endedand per share data) June 30, June 30, (unaudited) (unaudited) 2021 2020 2021 2020 Revenue 226,056 124,267 369,259 215,606Cost of sales 85,750 47,282 145,674 86,873 Gross profit 140,306 76,985 223,585 128,733 Selling, general and administrative 24,225 20,136 50,891 43,658expensesResearch and development expenses 9,410 8,428 17,668 17,859 Total operating expenses 33,635 28,564 68,559 61,517 Operating income 106,671 48,421 155,026 67,216 Financial expense, net 2,842 2,691 7,319 5,303 Income before taxes 103,829 45,730 147,707 61,913 Income tax expense 10,369 5,909 16,640 8,240 Net income 93,460 39,821 131,067 53,673 Net income per share ? basic 1.23 0.55 1.76 0.74Net income per share ? diluted 1.12 0.50 1.58 0.69Number of shares used in computingper share amounts: 75,802,630 72,536,296 74,540,692 72,352,859- basic 85,430,297 82,563,062 85,439,676 82,631,951- diluted ^1

Consolidated Balance Sheets

June 30, March 31, December 31,(euro in thousands) 2021 2021 2020 (unaudited) (unaudited) (audited)ASSETS Cash and cash equivalents 298,802 347,979 375,406Deposits 212,575 257,847 223,299Trade receivables 217,725 147,737 93,218Inventories 78,100 61,709 51,645Other current assets 17,165 17,655 11,964 Total current assets 824,367 832,927 755,532 Property, plant and equipment 27,344 27,739 27,840Right of use assets 10,280 8,958 9,873Goodwill 44,732 44,851 44,484Other intangible assets 57,450 54,078 50,660Deferred tax assets 20,086 21,177 21,924Other non-current assets 1,084 1,078 1,043 Total non-current assets 160,976 157,881 155,824 Total assets 985,343 990,808 911,356

Trade payables 91,472 65,351 44,017Other current liabilities 87,337 83,155 57,469 Total current liabilities 178,809 148,506 101,486 Long-term debt 304,647 389,614 399,956Lease liabilities 6,963 6,348 6,952Deferred tax liabilities 11,448 12,905 12,840Other non-current liabilities 15,947 18,887 18,895 Total non-current liabilities 339,005 427,754 438,643 Total equity 467,529 414,548 371,227 Total liabilities and equity 985,343 990,808 911,356

Consolidated Cash Flow Statements

(euro in thousands) Three Months Ended Six Months Ended June 30, June 30, (unaudited) (unaudited) 2021 2020 2021 2020 Cash flows from operating activities: Income before income tax 103,829 45,730 147,707 61,913 Depreciation and amortization 4,223 4,673 8,432 9,848Share-based payment expense 3,603 2,189 13,397 8,033Financial expense, net 2,842 2,691 7,319 5,303 Changes in working capital (51,330) (21,868) (86,897) (24,743)Income tax paid (10,120) (8,479) (10,421) (8,753)Interest paid (1,844) (2,074) (2,106) (2,180) Net cash provided by operating activities 51,203 22,862 77,431 49,421 Cash flows from investing activities: Capital expenditures (1,477) (478) (2,865) (1,350)Proceeds from sale of property - - 54 -Capitalized development expenses (4,875) (4,285) (10,780) (7,982)Repayments of (investments in) deposits 45,723 (35,000) 9,953 15,000 Net cash provided by (used in) investing 39,371 (39,763) (3,638) 5,668activities Cash flows from financing activities: Payments of bank lines of credit - (466) - (434)Proceeds from (payments of) debt 494 (405) 1,021 (416)Payments on lease liabilities (960) (896) (1,850) (1,769)Dividends paid to shareholders (129,357) (73,486) (129,357) (73,486)Purchase of treasury shares (10,100) (3,053) (20,197) (6,198) Net cash used in financing activities (139,923) (78,306) (150,383) (82,303) Net decrease in cash and cash equivalents (49,349) (95,207) (76,590) (27,214)Effect of changes in exchange rates oncash and 172 (811) (14) 437cash equivalentsCash and cash equivalents at beginning ofthe 347,979 347,639 375,406 278,398period Cash and cash equivalents at end of the 298,802 251,621 298,802 251,621period

Supplemental Information (unaudited) (euro in millions, unless stated otherwise)

REVENUE Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Per geography: Asia Pacific 77.6 85 % 105.7 85 % 86.6 80 % 91.1 83 % 113.4 79 % 175.7 78 % EU / USA 13.7 15 % 18.6 15 % 21.7 20 % 18.6 17 % 29.8 21 % 50.4 22 % Total 91.3 100 % 124.3 100 % 108.3 100 % 109.7 100 % 143.2 100 % 226.1 100 % ORDERS Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Per geography: Asia Pacific 102.0 86 % 88.1 87 % 75.9 80 % 122.7 78 % 253.2 77 % 155.0 77 % EU / USA 16.6 14 % 13.2 13 % 19.0 20 % 34.6 22 % 73.9 23 % 45.2 23 % Total 118.6 100 % 101.3 100 % 94.9 100 % 157.3 100 % 327.1 100 % 200.2 100 % Per customer type: IDM 47.4 40 % 44.6 44 % 43.7 46 % 77.6 49 % 130.8 40 % 111.3 56 % Subcontractors 71.2 60 % 56.7 56 % 51.2 54 % 79.7 51 % 196.3 60 % 88.9 44 % Total 118.6 100 % 101.3 100 % 94.9 100 % 157.3 100 % 327.1 100 % 200.2 100 % HEADCOUNT Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Fixed staff (FTE) Asia Pacific 1,071 70 % 1,067 70 % 1,054 70 % 1,060 70 % 1,070 70 % 1,096 70 % EU / USA 458 30 % 455 30 % 459 30 % 463 30 % 468 30 % 473 30 % Total 1,529 100 % 1,522 100 % 1,513 100 % 1,523 100 % 1,538 100 % 1,569 100 % Temporary staff (FTE) Asia Pacific 42 46 % 121 72 % 95 63 % 35 37 % 299 82 % 581 90 % EU / USA 50 54 % 48 28 % 57 37 % 60 63 % 64 18 % 68 10 % Total 92 100 % 169 100 % 152 100 % 95 100 % 363 100 % 649 100 % Total fixed and temporary 1,621 1,691 1,665 1,618 1,901 2,218 staff (FTE) OTHER Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 FINANCIAL DATA Gross profit 51.7 56.7 % 77.0 62.0 % 65.9 60.8 % 64.0 58.3 % 83.3 58.2 % 140.3 62.1 % Selling, general and admin expenses: As reported 23.5 25.7 % 20.1 16.2 % 16.3 15.1 % 15.8 14.4 % 26.7 18.6 % 24.2 10.7 % Share-based compensation (5.8 ) -6.3 % (2.2 ) -1.8 % (1.0 ) -1.0 % (1.5 ) -1.4 % (9.8 ) -6.8 % (3.6 ) -1.6 % expense SG&A expenses 17.7 19.4 % 17.9 14.4 % 15.3 14.1 % 14.3 13.0 % 16.9 11.8 % 20.6 9.1 % as adjusted Research and development expenses:: As reported 9.4 10.3 % 8.4 6.8 % 7.6 7.0 % 7.4 6.8 % 8.3 5.8 % 9.4 4.2 % Capitalization 3.7 4.1 % 4.3 3.5 % 4.3 4.0 % 5.4 4.9 % 5.9 4.1 % 4.9 2.2 % of R&D charges Amortization (2.6 ) -2.8 % (2.1 ) -1.7 % (2.1 ) -2.0 % (2.2 ) -2.0 % (1.7 ) -1.2 % (1.7 ) -0.8 % of intangibles R&D expenses 10.5 11.5 % 10.6 8.5 % 9.8 9.0 % 10.6 9.7 % 12.5 8.7 % 12.6 5.6 % as adjusted Financial expense (income), net: Interest expense 2.6 2.5 3.1 3.6 3.4 2.3 (income), net Hedging 0.7 0.5 0.3 0.3 0.7 0.7 results Foreign exchange (0.7 ) (0.3 ) (0.2 ) (0.1 ) 0.4 (0.2 ) effects, net Total 2.6 2.7 3.2 3.8 4.5 2.8 Operating income (loss) as % of 18.8 20.6 % 48.4 39.0 % 42.0 38.8 % 40.7 37.1 % 48.4 33.8 % 106.7 47.2 % net sales EBITDA as % of 24.0 26.3 % 53.1 42.7 % 46.5 42.9 % 45.5 41.5 % 52.6 36.7 % 110.9 49.0 % net sales Net income (loss) as % of 13.9 15.2 % 39.8 32.0 % 34.0 31.3 % 44.6 40.7 % 37.6 26.3 % 93.5 41.3 % net sales Income per share Basic 0.19 0.55 0.47 0.62 0.51 1.23 Diluted 0.19 0.50 0.43 0.55 0.47 1.12

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1)The calculation of diluted income per share assumes the exercise of equity-settled share-based payments and the conversion of all Convertible Notes