Cohu (COHU) 8-K Regulation FD Disclosure

Cohu

Investor and Analyst Day

June 18, 2015

9:30 a.m. –

1:00 p.m.

NASDAQ MarketSite

–

NY Times Square

Exhibit 99.1

Page 2

June 18, 2015

..

Forward Looking Statements and Regulation FD

Certain matters discussed in this presentation, including statements regarding our

growth strategy, market expansion, revenue growth rate, near and mid-term

financial models, orders, sales, revenues and operating results are forward-looking

statements that are subject to risks and uncertainties that could cause actual

results to differ materially from those projected or forecasted. Such risks and

uncertainties include, but are not limited to, risks associated with our ability to

penetrate new markets and market growth rates, our ability to convert new

products under development into production on a timely basis, support product

development and meet customer delivery and acceptance requirements for next

generation equipment; acquisitions;

inventory, goodwill and other intangible asset

write-downs; our reliance on third-party contract manufacturers; failure to obtain

customer acceptance resulting in the inability to recognize revenue and accounts

receivable collection problems; customer orders may be canceled or delayed; the

concentration of our revenues from a limited number of customers; intense

competition in the semiconductor test handler industry; our reliance on patents and

intellectual property; compliance with U.S. export regulations; and the cyclical and

unpredictable nature of capital expenditures by semiconductor manufacturers.

These and other risks and uncertainties are discussed more fully in Cohu's filings

with the Securities and Exchange Commission, including the most recently filed

Form 10-K and Form 10-Q.   Cohu assumes no obligation to update the information

in this presentation.

Page 3

June 18, 2015

Schedule

Event

Presenter

9:30 a.m. –

10:00 a.m.

Registration

10:00 a.m.

–

10:25 a.m.

Opportunities for Growth and Differentiation

L. Müller

10:25

a.m. –

10:45 a.m.

Pick-and-Place and Thermal Subsystems

S.

Kabbani

10:45 a.m.

–

11:05 a.m.

Gravity

and Test-in-Strip, MEMS Test

A.

Waldauf

11:05 a.m.

–

11:25 a.m.

Turret and Vision Inspection

I. von

Fellenberg

11:25 a.m. –

12:05 p.m.

TAM Expansion –

Contactors and WLP Probing

M. Schaule

12:05 p.m. –

12:25 p.m.

Lunch

12:25 p.m. –

12:50 p.m.

Delivering Profitability

and Shareholder Value

J. Jones

12:50 p.m. –

1:00 p.m.

Closing Remarks

L. Müller

Agenda

-

June

18,

2015

at

NASDAQ

MarketSite

Page 4

June 18, 2015

CEO

Luis Müller

Rasco

Alex Waldauf

Delta Design

Samer Kabbani

ITS

Jim McFarlane

Ismeca

Ian von Fellenberg

Corporate

CFO

Jeff Jones

Finance &

Administration

John Allen

Human

Resources

Anna Aguirre

Functional Groups

Sales & Service

Hock Chiang

Operations

L. Müller -

interim

Senior Leadership Team

Product Groups

Technology

Max Schaule

Color photo denotes participants at this Investor & Analyst Day event

Opportunities for Growth

and Differentiation

Luis Müller

President and CEO

June 18, 2015

Page 6

June 18, 2015

Note:

All

Cohu

financial

results

in

this

presentation

have

been

adjusted

to

exclude

the

results

of

BMS

which

was

sold

on

June

10,

2015

Amounts

are

Non-GAAP

and

exclude

amortization

of

purchased

intangibles,

stock

based

compensation

expense,

impairment

of

goodwill

and

other

assets,

inventory

step-up

costs,

manufacturing

transition

and

severance

costs.

See

Appendix

for

reconciliation

of

GAAP

to

Non

GAAP

results.

Strategy Yields Results

NASDAQ:

COHU

is

the global technology and market leader in

Semiconductor Final Test and Inspection Handlers

Leader in $850M

handler market: #1 in Served Markets

*

*  Company estimate

Delivered Strong Financial Results

•

Sales increased 48% Year-on-Year to $317M

•

Gross margin improved by 520 bps

•

Generated EPS of $1.09 and LTM cash from operations of $37M

Launched Innovative Products

•

New industry leading products in each business unit

•

Solving customer challenges with broadest technology portfolio

•

Focused on requirements in growth segments

Expanded Market Share

•

Realized ~ $25M of sales synergies from Ismeca

acquisition

•

Grew mobility share with key thermal technology

•

Outpaced industry growth; leader with ~ 40%* market share

Page 7

June 18, 2015

Our Growth Strategy

Amounts

are

Non-GAAP

and

exclude

amortization

of

purchased

intangibles,

stock

based

compensation

expense,

impairment

of

goodwill

and

other

assets,

inventory

step-up

costs,

manufacturing

transition

and

severance

costs.

See Appendix for reconciliation of GAAP to Non GAAP results.

Expand Share in Core Markets

•

Mobility, Automotive and LED

•

Optimizing test yield [1% yield improvement ~ 3x Handler Capex]

•

Innovative technologies for growing segments –

thermal, vision

Increase TAM from $850M to $2B

•

New business unit (ITS) to drive growth in contactor market

•

Opportunity to uniquely solve customer challenges and increase

yield in testing of singulated

Wafer-Level-Packages

Deliver Profitable Growth

•

Reduce product costs and increase scalability with Asia mfg.

•

Invest in products and markets with attractive margin profiles

•

Increasing mid-term financial targets

Page 8

June 18, 2015

Semiconductor Back-end Manufacturing

What is Test Handling?

Handling is the automation and thermal control of semiconductors

(ICs, LEDs, Opto, Discrete, Sensors) during final test

Enables higher yield for high ASP products

Optimizes productivity through high-speed automation

Front-end Test

Singulation

~80%

Assembly

Wafer-Level-Packages

Packaged ICs

WLP Probing

Test

Contactors

~20%

Package Handling

Gravity         Pick-and-Place

Turret

Test Consumable

Back-end Test Handling

Page 9

June 18, 2015

Consumer Trends Fueling Growth

IC unit volume –

6% CAGR

Growing applications

Vehicle IC content increasing  –

11% CAGR

Mobility & Comm. –

mobile, IoT, sensors, ...

LED  –

General Lighting 15% CAGR

Emerging Tech.  –

Adv. Packaging

Key

customer

challenges

–

Thermal

Control,

Vision, Frequency & Power test contacting

-Mobile-

-Automotive-

-Server Farms-

-LED-

Advanced IC Packaging

Package on

Package (PoP)

Adv. Packaging

(3D TSV)

Bare Die

Solving Customer Challenges

Expanding Applications

* Source: The Worldwide IC Packaging Market –

2013 Edition, Yole

Development and Company estimates

*

*

*

Page 10

June 18, 2015

2014

e2019

SAM *

~$260M

~$350M

COHU

share

52%

Automotive & Industrial Markets

Secular

growth

for

ICs,

Discretes

and

Sensors

Automotive

–

11%

CAGR:

connectivity,

power,

ADAS

driving

processors

and

high

frequency

radar

sensors

Industrial

–

6%

CAGR:

renewables,

aircraft,

medical

MATRiX

NX32 Wafer

Saturn

*IC Insights and Company estimates

*

*

$M

$M

*

*

Page 11

2014

e2019

SAM *

~$55M

~$110M

COHU

share

27%

Solid State Lighting Market

Applications for high power (>50 lm) LEDs

General

Lighting

–

15%

CAGR:

industrial

&

outdoor

Automotive

–

10%

CAGR:

currently

3%

penetration

Automotive

Headlamps

Industrial

High Bays

Outdoor

Street Lights

Outdoor

Area Lights

Outdoor

Stadium

Lights

Jaguar

NY32 Wafer

*Strategies in Light and Company estimates

*

*

$M

$M

*

*

June 18, 2015

Page 12

June 18, 2015

2014

e2019

SAM *

~$310M

~$430M

COHU

share

29%

Mobility Market –

Processors & RF ICs

Mega trend in smart, connected devices

Processors

–

adv.

mobile

processors

=

active

thermal

RF

–

IoT

driving

billions

of

connected

devices

Eclipse ATC (Active Thermal Control)

*

*

*IC Insights and Company estimates

$M

$M

WLP Prober

Page 13

June 18, 2015

Multiple Markets –

Leading Solutions

Automotive

Industrial

Solid State

Lighting (LED)

Mobility

Communications

MEMS

Computing

High Speed

Memory

Capital Equipment

-

IC Test Handlers

-

Package Inspection

-

LED Test, Sort, Taping

~60%

of

sales

Recurring Business

-

Device Kits

-

Contactors

-

Service & Spares

~40%

of

sales

Markets

Pick-and-place test handlers and thermal

sub-systems for burn-in and system-level

test

Gravity-feed and test-in-strip handlers, and

MEMS test solutions

Turret-based test and inspection handlers

Business Units

High performance test contactors

A Cohu Company

Page 14

June 18, 2015

Broad

Product

Portfolio

–

Test

Handlers

Diversified

applications

–

breadth

of

products

in

$850M

market

Solving

key

customer

challenges

–

innovative

technologies

&

IP

Platforms

Enabling Technologies

Markets

Thermal Solutions

ATU Acoustic

MEMS Modules

Die  Inspection

Alignment Actuators

Package Inspection

High Performance

Kelvin

Contactors

PTU

Pressure

MTU Hall

OTU

Optic

MATRiX

Eclipse

Saturn

Jaguar

NY20

NX32 (wafer and package)

Pyramid

T-Core

LinX

Jupiter

Vision Solutions

Page 15

June 18, 2015

Sales Synergies

Cross-selling

works

–

leveraging

our

leading

customer

support:

More than doubled Rasco market share in the last 5 years

Delivered $25M incremental sales in 2014 from the Ismeca acquisition

Next –

grow Contactors and WLP Probing

Page 16

June 18, 2015

1

2

3

1

–

Delta Design, Rasco,

Ismeca growth

strategies for share

gains

2

–

Core markets are

converging with

growth in RF

connectivity

3

–

Less volatile, sales

synergies with Cohu

leading handler share

TAM

Expansion

–

Contactors

&

WLP

Test

Expanding

Total

Available

Market

(TAM)

from

$850M

to

~$2B

with

Contactors

and

Wafer-Level-Package

(WLP)

test

Differentiating

opportunities

–

test

yield,

thermal,

high

frequency

Market sizes are Company estimates

Samer Kabbani

VP and GM, Delta Design

June 18, 2015

Pick-and-Place

Thermal Subsystems

Page 18

June 18, 2015

Alignment

Actuators

Pick-and-Place and Thermal Portfolio

Market Leader in pick-and-place; best-in-class thermal

Addressable market ~ $370M

Platforms

Enabling Technologies

Markets

Thermal

Solutions

Die

Inspection

Pyramid

MATRiX

Eclipse

Vision Solutions

T-Core

LinX

Page 19

Pervasive growth of processors in various end-markets

Seasonal,

consumer

driven

markets

–

no

longer

PC-centric

Thermal control becoming a critical challenge in IC test

Markets

Automotive

High Performance Memory

Mobility

Computing

Source: KPCB

Computing Growth Drivers Over Time, 1960-2020E

June 18, 2015

Page 20

June 18, 2015

Best in Class Active Thermal Control

Leading active thermal management incumbent position with a

large IP portfolio and know-how

Improved Thermal Control (T-Core) = Optimized Test Yield ($$)

1% Yield benefits ~3x Handler Capex

Broad / highly scalable thermal solutions covering various IC form

factors and test processes

Page 21

June 18, 2015

Computing: CPUs & GPUs

Growth in Cloud and Gaming processor segments

Market leader in CPU (Central Processing Unit)

and GPU (Graphics

Processing Unit)

test –

Active thermal

Developing next generation Test Handler with T-Core thermal for

GPU

and

high-end

CPU

(server)

–

yield,

multi-site

test

and

flexibility

Source: Intel Estimates

Test Coverage

Material

Automation

T-Core: Thermal

Subsystems

Pyramid: Thermal

PnP Handler

Final Test

Burn In

+ SLT

LinX: Automated

material handing

Page 22

June 18, 2015

Mobility: Application Processors

Increased functionality of next generation smart phone processors

driving

need

for

active

thermal

control

to

optimize

yield

Delta Design is uniquely positioned to capitalize on the mobile test

paradigm shift

Secured key smart phone customer in 2014 with T-Core Subsystems

Qualified

new

handler

–

Eclipse

with

T-Core

–

at

large

US-Fabless

account in Q1 with follow-on qualifications at test subcontractors

Application Processor Test Coverage

Final Test

Burn In +

SLT

T-Core Thermal

Eclipse PnP

0

500

1000

1500

2000

2500

2010

2011

2012

2013

2014

PC

Tablet

Phablet

Smart Phone

Feature Phone

Global Mobile Device Sales (M units)

Source: Gartner &

Insight Media

Page 23

June 18, 2015

Vehicle IC content growing at ~ 11% CAGR

Technology

leadership

in

multi-site

–

cryogenic

thermal

MATRiX is the tri-temperature (cold-hot) pick-and-place benchmark

High

Throughput

High

Parallelism

MEMS

Active

Thermal

Automotive: µControllers & Analog ICs

MATRiX

Average IC content per vehicle could double in the next 8 years*

*IC Insights and Company estimates

Page 24

June 18, 2015

New Opportunity: Advanced Memory

Server demand introducing disruptive memory IC test requirements

Memory IC has led transistor scaling and now 3D-IC packaging

(vertical structures) resulting in overheating challenges in test

Opportunity to solve customer challenge with T-Core thermal

Early win at a major advanced memory IC manufacturer 

3D Memory IC Backend Test

In-Process

Test

Rasco’s

Jaguar

T-Core Thermal

Pyramid PnP

Final Test

Burn In

Page 25

June 18, 2015

Test Parallelism

32

16

4

8

2

Test Time (min)

0.1

0.2

0.4

1

2       4        8        10           15          60       120+

Breadth of Solutions

64

256

512

Logic Test

Handlers

Custom Batch Test Cells  (Burn In / SLT)

128

512+

High Product Mix

Higher Pin Count

Low Product Mix

Lower Pin Count

(BiST)

Industry’s largest pick-and-place test

coverage offering leading solutions in

Automotive, Mobility and Computing

2.5/3D packaging with embedded

memory driving longer test time and

higher power densities that benefits our

thermal technology

Summit

Pyramid

Eclipse

MATRiX

VTS-300

Fusion

Emerging

Emerging

Page 26

June 18, 2015

Aligned with Growth Segments

MATRiX handler gaining share in

automotive applications with

extreme cold-hot test capability

Incumbent leader in CPU & GPU

fueling IP for emerging markets

T-Core thermal engine capturing

customers in evolving Mobile and

Advanced Memory markets

Positioned to benefit from emerging thermal challenges in IC test

$M

$M

$M

$M

*IC Insights, Strategies in Light and Company estimates

*

*

*

*

Gravity and Test-in-Strip

MEMS Test

Alex Waldauf

VP and GM, Rasco

June 18, 2015

Page 28

June 18, 2015

Gravity & Strip, MEMS Test Portfolio

Market Leader in gravity segment

Addressable market ~ $220M

Markets

Platforms

Enabling Technologies

ATU Acoustic

MEMS Modules

PTU

Pressure

MTU Hall

OTU

Optic

Saturn

Jupiter

Jaguar

Page 29

June 18, 2015

Markets

90% Automotive and Industrial mainly power management ICs

Energy requirements driving growth of large packages

(Automotive & Industrial) and small devices (Consumer)

MEMS growth in mobility products is driving sensor integration

in small, difficult to handle packages

Opportunities in LED and High Performance Memory test

Body and Convenience

Driver Information & Entertainment

Powertrain and Transmission –

HEV

Touchless Control and IoT

Autonomous Driving

Page 30

June 18, 2015

Power Management ICs

Hybrid electrical vehicle and renewable energy ICs are growing

(~8% CAGR) and driving the need for large package gravity handlers

Mobile products are driving growth of small packages

Page 31

June 18, 2015

New Products Driving Share Growth

Product Portfolio

Differentiation:

Highest quality –

“zero defect” for automotive

Leading cryogenic test capability: -60°C to +175°C

Scalable platform for small to mid-size packages

Rasco’s

YieldBooster

technology –

electro-chemical yield optimization

Jupiter

Jaguar

Saturn

Market Leader

-

Innovation

-

Sales Synergies

Page 32

June 18, 2015

MEMS Market

MEMS sensors growing from $11B (2014) to fcst. $20B* (2020)

Key drivers –

mobility, Internet-of-Things, automotive (ADAS)

Leading in Magnetic and Pressure in automotive applications

* Yole

Development –

Status of the MEMS Industry 2015

Sensorization

of the Electronics Industry

*

Page 33

MEMS Test

$1M

Test

solution

with

handler

+

MEMS

module

75%

of

the

total

Handlers

$250K to $450K:  amb or tri-temp x4 to x100 parallelism

MEMS

$50K to $350K:  x8 acoustic to x100 gyro

Testers are mostly simple, dedicated solutions (not “big iron” ATE)

June 18, 2015

ATE

$100K -

$300K

MEMS

$50K -

$350K

HANDLER

$250K -

$450K

Page 34

June 18, 2015

New Opportunities: 3D-IC and LED

3D-IC Market grow 52%+ CAGR

Jaguar Strip Handler     

Total LED Market growth 20% CAGR

3D-IC packages (Advanced Memory)

may benefit from in-process test

control –

opportunity

for

incremental

Jaguar sales

Parallel test of LED tiles could set a

new cost benchmark in the industry

and be an enabler to growth in

general lighting –

additional

Jaguar

growth opportunity

*3D IC & TSV Interconnects 2012 Business Update, July 2012, Yole

Development

Page 35

June 18, 2015

Positioned for Continued Growth

Doubled gravity share since

acquisition, largely through sales

synergies

Leader in Magnetic and Pressure

automotive MEMS applications

New solution for multi-site LED

test

Bare die capability for testing

advanced 3D-ICs in Memory

Strong incumbent position and capturing new customers

$M

$M

$M

$M

*IC Insights, Strategies in Light and Company estimates

*

*

*

*

Turret and Vision Inspection

Ian von Fellenberg

VP and GM, Ismeca

June 18, 2015

Page 37

June 18, 2015

Turret Portfolio

Market Leader in turret segment

Addressable market ~ $260M

Platforms

Enabling Technologies

Markets

Package

Inspection

Alignment

Actuators

Die Inspection

Vision Solutions

NX32 (wafer and package)

NY20

Page 38

June 18, 2015

Markets

High Performance Mixed Signal, RF devices, sensors and MEMS –

connectivity, Internet-of-Things, portable and wearable devices,

mobility, communication, cyber security and power management,

Small signal & power discrete –

mobility,

industrial

&

automotive

–

very high volume

Solid State Lighting –

LEDs

in

automotive,

outdoor

/

hi-bay

lighting

Cyber security

Internet of Things

Portable/Wearable

Connected cars

Mobility

SSL-

Lighting

SSL -

Automotive

Page 39

June 18, 2015

Broad Process Capabilities

Product Portfolio: 2 platforms -

150 process modules

Differentiation through technology

Motion & force control

thin, fragile device, down to 50

m

Fast image processing

µ-crack, 3D inspection

Intelligent machine control

scalability, flexibility

High performance contacting

high yield and long life time

NY20 series

20 positions turret

Wafer

Contactors

Inspection

Tray

Tube

Inspection

Bowl

Tube

Inspection

Contactors

NY32 series

32 positions turret

NY32W Wafer series

32 positions turret

Page 40

June 18, 2015

Enabling Technology: Vision

Fast & high accuracy image processing

New 3D vision technology for WLP inspection

High speed true 3D inspection –

Moiré

interferometry

3D imaging of WLP

Micro crack in silicon die

5 Side inspection

Few micron cracks 

3D Flex –

Miniaturized Module

Inspects up to 30,000 parts/hour

Page 41

June 18, 2015

HPMS, RF, Sensors & MEMS

Represents approx. half of revenues

Markets with double digit  growth rates

Higher end applications –

Ismeca profits from Cohu synergies

Thin & fragile device handling, WLPs

High Vision inspection requirements

20 billion

in 2018

Internet of

Things

Page 42

June 18, 2015

Small Signal & Power Discrete

Small Signal & Power Discrete

(e.g. 0.2 x 0.4 mm)

NY20: 1 million / day

Represents approximately 30% of revenues

Steady growth, low single digits, cyclical

Very high volume –

standard products (transistors, diodes)

Strong incumbent position, large installed base

NY20 highest productivity solution in the market

Page 43

June 18, 2015

Solid State Lighting

Approximately 20% of revenues

High & super high power LED

Automotive and outdoor lighting with

double digit growth rates

Higher requirements for test reliability,

vision, traceability, fragile devices

Headlamps  22% to 42%

LED in Automotive

Exterior

Source: Strategies Unlimited February 2015

LED in Outdoor Luminaires

Source: Strategies Unlimited February 2015

Page 44

June 18, 2015

Expanding Test & Inspection Capabilities

Leader in small device handling 

for mobility, portable and

wearables,  IoT, cyber security

Best solution for integrated test

and scan processes for WLPs

Optimized

test reliability for high

power SSL applications

Leverage sales

and product

synergies

to

accelerate growth

Benefiting from “connected world” and new lighting technology

$M

$M

2012                           2020

*IC Insights, Strategies in Light and Company estimates

*

*

*

Internet of

Things

*

TAM Expansion: Contactors

Max Schaule

Chief Technologist

June 18, 2015

Page 46

June 18, 2015

Semiconductor Back-end Manufacturing

What is Test Contacting?

Front-end Test

Singulation

~80%

Assembly

Wafer-Level-Packages

Packaged ICs

TAM

Expansion

Test Contactors

~20%

Mechanical and signal path interface between Handlers and Testers

Consumables: contacts wear-out and are replaced multiple times a year

Yield Improvement: YieldBooster

technology optimizes overall test efficiency

Accurately positions IC

Thermally conditions IC

Signal path interface

to tester

Package Handling

Gravity         Pick-and-Place

Turret

Back-end Test Handling

Test Consumable

WLP Probing

Page 47

June 18, 2015

Total available market $650M

higher margin than equipment

Growing with IC unit volume, not tied to

Capex –

less volatile

Fragmented market –

no supplier has

greater than 10% share

Spring Probes

$490M  segment

2014

e2019

SAM *

~$650M

~$825M

COHU

share

2.6%

Test Contacting Market

* Source: VLSI Research and Company estimates

Cantilever Contacts

$90M  segment

Rocking Contacts

$70M  segment

Courtesy of

Ardent

Concepts

*

*

*

*

Page 48

June 18, 2015

Strategy

Markets

Cohu Handler

Share *

Technology

Differentiation

Automotive and Industrial

52%

•

Cantilever

and Kelvin

•

Thermal management

•

Kelvin for high current &

voltage

Consumer Mobility,

Communications

29%

•

Spring Probes

•

Cantilever

•

Rocking

•

Signal integrity

•

Small device & WLP

•

Positional accuracy

Mobile and Computing

(processors) & High

Speed Memory

26%

•

Spring Probes

•

Thermal management

MEMS & LED

27%

•

Cantilever and Kelvin

•

Spring Probes

•

Integration & thermal

•

MEMS

requirements

Aligning with strong Cohu handler share in key markets

Automotive, Industrial, LED: thermal and high voltage/current Kelvin

Mobility, Comm., Computing: RF, small device, tight pitch, thermal

Drive consolidation and growth

*Company estimates

Page 49

June 18, 2015

Gravity         MEMS        Pick & Place

Test in Strip                 LED                Turret

Spring

Probes

up to 80 GHz

Cantilever

Precision Series

Cantilever Kelvin

Power Series

Integrated

Solutions

RF

Exact

Small

Kelvin

ESX

ESX Power

G-Pin

Expanding Product Portfolio

Available for all Cohu Handlers and competitors’ systems

New products aligning

with growth markets

Page 50

June 18, 2015

Our Value Proposition

Integration –

leveraging our leading handler

share to solve the greater parallelism and

complexities challenging test yield at key

customers

Technology –

solving key market challenges

Automotive & Industrial: better thermal control,

insertion force compensation, safe high

voltage/current applications

Consumer & Mobility: signal integrity at high

frequency (RF, radar sensors), small device

contacting

Mobile and Computing: thermal management

MEMS and LED: custom solutions for high

insertion count/long-life applications

MATRiX x32 test solution delivers

thermal performance and support for the

DUT board to withstand up to 1,000 lbs.

insertion force

Test In Strip application provides high

temperature accuracy of +/-0.2°C for 170

DUT‘s in parallel

Page 51

June 18, 2015

Market Penetration Roadmap

Grow business

organically,

through M&A and partnerships

Strategy

Expand in automotive and

MEMS

Accelerate growth in Consumer

and Mobility

Partnership for high bandwidth

RF contactors

Capturing pogo probes

replacement sales

Leverage synergy with handler

customers

Expand our Philippines

operation for design and

manufacturing of contactors

*VLSI Research and Company estimates

*

$M

$M

TAM Expansion: WLP Probing

Max Schaule

Chief Technologist

June 18, 2015

Page 53

June 18, 2015

Semiconductor Back-end Manufacturing

What is WLP Probing?

Probing is the automation and thermal control of wafer-level

packages (WLPs) during test

Enables higher yield for high ASP products

Optimizes productivity through improved process flow

Front-end Test

Singulation

~80%

Assembly

Wafer-Level-Packages

Packaged ICs

Test Contactors

~20%

Back-end

Test

Handling

Test

Consumable

Gravity

Pick-and-Place

Turret

WLP Probing

Package Handling

Page 54

June 18, 2015

WLP Growth

Wafer Level Packages (WLPs) are growing faster than

traditional packages and are expected to account for ~ 23% of

total 300 mm wafers equivalents by 2017

Top growth driver is mobile consumer devices

Mobile devices are becoming smaller, thinner, more complex and

less expensive

*Source: StatsChipPAC

*

*Yole

Development, October 2012

*

Page 55

June 18, 2015

WLP Market Drivers

Smaller form factor, higher speed, broader RF bandwidth, less

power consumption and lower costs are key drivers for WLPs

Typical applications: power management, RF communication, stacked

memory, MEMS sensors, LEDs and mobile processors 

A

large percentage are tested on wafer probers before dicing –

risk of

inducing non-detectable damage during singulation

WLPs

would

benefit

from

post-singulation

test

–

improved

yield

Yole

Developpement

© January 2012

Page 56

June 18, 2015

Final

test

performed

on

wafer,

prior

to

singulation

–

downstream

mechanical processes can induce quality escapes and µ-cracks

Devices are extensively vision inspected, creating large (5-25%)

“over-rejection”

rates

–

yield

losses

with

no

retest

solution

available

Higher test parallelism leads to reduced touch-down efficiency in

wafer test

Today’s WLP Test Flow

Test on

Wafer prober

Back grinding +

Laser mark

Singulation

Dicing

5S Vision

Tape & Reel

x2 test

x4 test

Device-under-test

Testable dies on wafer

Untested

touch-downs

-

inefficiency

Page 57

June 18, 2015

New Approach in WLP Test

Final test on finished die (WLP), 100% quality check after

singulation

–

higher

yield

Stress

free

handling

–

no

mechanical

clamping

(i.e.

carriers)

High

parallel

test

–

100%

touch-down

efficiency

Full

process

in

one

system

–

reduced

material

work-in-process

Singulation

Dicing

Reconstruct wafer

on AccuChuck

“any pattern”

High parallel

Test on

WLP Prober

Vision Inspection

Tape & Reel

WLP Prober

Page 58

June 18, 2015

Market Penetration Roadmap

Replace up to 20% of wafer

probing with new WLP test

flow

Strategy to grow sales

Singulated

WLP probing

improves final test

yield

Solve key challenges in RF

and Power Mgmt. IC test

Later expand to MEMS and

processor front-end test

Cohu has the technology

portfolio to pursue this

opportunity

*VLSI Research and Company estimates

*

$M

$M

Delivering Profitability and

Shareholder Value

Jeff Jones

VP Finance and CFO

June 18, 2015

Global Operations & Customer Support

Largest

installed

base

–

drives

recurring

business

40%

of

sales

Singapore

Suzhou

Philippines

Malaysia

San Diego

Germany

Switzerland

Major Operations

Sales/Customer Support

ISMECA

RASCO

DELTA DESIGN

KIT FACTORY

Kit design & manufacturing

Handler subassemblies

Contactor design & manufacturing

HANDLER FACTORY

~10,500

Active

Installed

Base

ITS

Asia

manufacturing

–

optimizing

operations

to

deliver

model

profitability,

infrastructure

flexibility

and

scalability

Global

support

–

a

key

competitive

advantage

June 18, 2015

Page 60

Supply Chain

Volume

Handler

Mfg.

Page 61

June 18, 2015

Asia Manufacturing Strategy

Malaysia operation acquired with Ismeca in 2013

Consolidating handler manufacturing and supply chain for all products

Converting fixed costs to variable by outsourcing major sub-

assemblies; performing value-add final assembly and test in-house

Consolidated facility in 1H’16 will provide better scalability and

higher leverage of fixed cost infrastructure

2013

2014

2015

Handler

Mfg

in   

Asia at Year End

25%

50%

70%

Transition of first pick-

and-place handler

Initial gravity-feed handler

transitioned in Q2’15

New products begin in late

2H’15

Ismeca

turret handler

manufacturing

Malaysia Manufacturing Timeline

Lowering Cost and Increasing Scalability –

a Competitive Advantage

Page 62

June 18, 2015

Realizing sales synergies from Ismeca acquisition ~$25M in 2014

New

products

gaining

in

key

segments

–

est.

5

pt

share

gain

in

2014

Enhancing gross margin with Asia manufacturing +520 bps YoY

Broad customer base and diversified markets

Strategic Actions Delivering Results

Year-on-Year

2013     vs.     2014

$214.5M

30.4%

$79.7M

$(0.59)

$316.6M

35.6%

$77.6M

$1.09

+48%

+520 bps

-$2.1M

+$1.68

Amounts are Non-GAAP and exclude amortization of purchased intangibles, stock based compensation expense, impairment of goodwill and other assets, inventory step-up costs,

manufacturing transition and severance costs.

See Appendix for reconciliation of GAAP to Non GAAP results.

Sales

GM

OPEX

EPS

Orders

$244.7M

$308.1M

+26%

2014 Sales Breakdown

Rank

Market

% of Sales

1.

Computing

15%

2.

Mobility

9%

3.

Automotive

8%

4.

Automotive

5%

2014 Top Customers

Rank

Market

% of Sales

1.

Computing

15%

2.

Mobility

9%

3.

Automotive

8%

4.

Automotive

5%

2014 Top Customers

Automotive

& Industrial,

45%

LED, 5%

Mobility,

Comms &

MEMS, 30%

Computing &

Memory,

20%

Page 63

June 18, 2015

Profitable Through Cycles

Amounts are Non-GAAP and exclude amortization of purchased intangibles, stock based compensation expense,

impairment of goodwill and other assets, inventory step-up costs, manufacturing transition and severance costs.

See Appendix for reconciliation of GAAP to Non GAAP results.

Revenue ($M)

Opex

($M)

Adjusted EBITDA

In-line with Financial Model

Gross Margin

Five quarters of profitable results

Delivering adjusted EBITDA in-line with financial model

Updated Q2’15 guidance from June 10, 2015 press

release announcing the sale of BMS.

*

*

*

*

*

R&D

SG&A

~

~

~

Page 64

June 18, 2015

First Half 2015

Profitable in seasonally slow Q1

Q1

GM

comparable

YoY

excluding

accounting

impact

in

2014

1H’15 Sales projected to be ~ 2% higher YoY

1H’15 projected results are in-line with financial model

Year-on-Year

Q1’14     vs.     Q1’15

$60.2M

36.0%

$20.3M

$0.04

$63.4M

34.1%

$18.5M

$0.06

+5%

-190 bps

-$1.8M

+$0.02

Q2’14

Q2’15

$74.3M

35.0%

$19.3M

$0.20

~$73M

~36%

~flat

Amounts are Non-GAAP and exclude amortization of purchased intangibles, stock based compensation expense, impairment of goodwill and other assets, inventory step-up costs,

manufacturing transition and severance costs.

Sales

GM

OPEX

EPS

*

*

+100 bps

Guidance

~$19M

~flat

See Appendix for reconciliation of GAAP to Non GAAP results.

Updated Q2’15 guidance from June 10,

2015 press release announcing the sale

of BMS.

*

*

(1)  Benefits by ~ 230 bps from timing of high margin revenue recognition

(1)

Page 65

June 18, 2015

Near Term Financial Model

Gross Margin improving with Asia manufacturing transition

Scalable model

40% Fall Through

Target Effective Tax Rate in the low 20% range

Revenue

$55M

$70M

$85M

Gross Margin

33%

36%

38%

Operating

Expenses

33%

28%

24%

Adjusted EBITDA

0%

10%

15%

EPS -

Quarterly

$0.00

$0.17

$0.36

Amounts are Non-GAAP and exclude amortization of purchased intangibles, stock based compensation expense, manufacturing transition and severance costs.

Assumes 26.5 million shares outstanding.

Page 66

June 18, 2015

Revenue

$215M

$317M

$400M

Gross

Margin

30%

36%

40%

Adjusted

EBITDA

-

5%

13%

17%

Mid-Term Financial Target

Acquired Ismeca

in Jan 2013 -

rationalized workforce,

technologies and factories

Developed new products

across each business unit

Began cross-selling customer

evaluations

Amounts are Non-GAAP and exclude amortization of purchased intangibles, stock based compensation expense, manufacturing transition and severance costs..

2013

Actual

2014

Actual

Mid Term

Target

Realized sales synergies

and growth

in mobility

market

Improved gross margin with

Asia mfg.

and sales volume

Lowered Opex

-

cost

synergies and disciplined

R&D investing

TAM expansion in contactors

and WLP probing

Increasing Asia mfg. content

Leverage in operating model

Page 67

June 18, 2015

Strong Balance Sheet ($M)

Cash from operations LTM of $37M

Q1’15 cash balance ~ $70M (excludes

$5.5M proceeds from 6/10/15 sale of BMS)

$35M to support operations including Capex

of $3M -

$5M per year

$6M / year returned to shareholders through

quarterly dividend

Excess allocated to strategic growth

opportunities

Rationalizing excess capacity in Poway

facility

–

current

market

value

of

$30M+

Healthy cash conversion cycle:

No bank debt

Assets

12/27/2014

3/28/2015

Cash & Equivalents

$72.0

$69.7

Accounts Receivable

70.5

62.6

Inventory

49.2

53.0

Other Current Assets

12.8

11.9

Property

& Equipment

31.9

30.7

Goodwill & Intangibles

96.2

91.4

Other Assets

5.9

5.4

Total Assets

$338.5

$324.7

Liabilities

Accounts Payable

$25.1

$29.9

Deferred Profit

6.9

7.4

Other Current Liabilities

34.6

26.7

Noncurrent

Liabilities

31.6

33.2

Total Liabilities

98.2

97.2

Stockholders’ Equity

240.3

227.5

Total Liabilities

& Equity

$338.5

$324.7

Q1’14

Q1’15

Days Sales Outstanding

87

88

Days Sales of Inventory

120

119

Accounts Payable Days

61

67

Cash Conversion

146

140

Note: Unaudited pro-forma balance sheet excluding BMS

Page 68

June 18, 2015

Corporate Development

Strong track record of successful acquisitions

Future Investment criteria

Expand into profitable, complementary market segments

Leverage infrastructure: technology, sales and customer support, operations

Deliver margin expansion in-line with mid-term target

Capitalize on sales and cost synergies

Criteria

Rasco

Dec 2008

Ismeca

Jan 2013

Market Expansion

Gravity, Test-in-Strip, MEMS

Turret, Inspection,

LED

Market Share

#2 in 2008, grew to #1 in 2014

#1, acquired the leader

Infrastructure Leverage

100% complementary

products;

Common sales and customer support

100% complementary

products;

Common sales and customer support;

Malaysia Mfg. and Supply Chain

Synergies

Sales ~ $16M; Cost ~ $2M

Sales ~ $25M; Costs ~$14M

Closing Remarks

Luis Müller

President and CEO

June 18, 2015

Page 70

June 18, 2015

Expanded

$2B TAM

WLP Probing

Test Contactors

$850M Handler Market

Driving for profitable growth in expanded $2B TAM

Differentiate

through

thermal,

vision,

automation

–

higher

yield

Increasing Total Available Market

Page 71

June 18, 2015

Key Takeaways

Increasing

Total Available

Market

to $2 billion with test

contactors and WLP prober

Strategic

Acquisitions

in profitable,

complementary market

segments

Mid-Term 

Target

delivers 17% EBITDA at

$400M a year sales

Strong

Balance Sheet

~$70M in cash and no

bank debt; $37M cash

from operations LTM

Driving

Growth

With new products and

synergies; 2014 sales

were up

48% YoY

Expanding

Share in Core

Markets

with innovative thermal &

vision technologies

Thank You

June 18, 2015

9:30 a.m. –

1:00 p.m.

NASDAQ MarketSite

–

NY Times Square

Biographies

June 18, 2015

Biographies

Luis A. Müller

President and Chief Executive Officer

Luis

A.

Müller

joined

Cohu's

Delta

Design

in

2005

and

has

been

President

and

Chief

Executive Officer of Cohu, Inc. since December 2014. Mr. Müller was previously President

of Cohu's

Semiconductor Equipment Group (SEG) since January 2011, Managing Director

of SEG's Rasco

GmbH business unit in Germany, and Vice President of SEG's High Speed

Pick-and-Place handler products. Prior to joining Cohu, Inc. Mr. Müller spent nine years at

Teradyne, where he held management positions in engineering and business

development.

Mr. Müller has a PhD in Mechanical Engineering from the Massachusetts Institute of

Technology (MIT).

Jeffrey D. Jones

Vice President Finance and Chief Financial Officer

Jeff

Jones

joined

Cohu’s

Delta

Design

in

July

2005

as

Vice

President

Finance

and

Controller.

In November, 2007, Mr. Jones was named Vice President, Finance & Chief Financial Officer

of Cohu. Prior to joining Delta Design, Mr. Jones, was a consultant and Vice President and

General Manager of the Systems Group at SBS Technologies, Inc., a designer and

manufacturer of embedded computer products.  Prior to SBS Technologies, Mr. Jones was

an Audit Manager for Coopers & Lybrand (now PricewaterhouseCoopers).

Mr. Jones is a CPA and graduate of the University of Redlands.

Biographies

Samer Kabbani

Vice President and General Manager, Delta Design

Samer

Kabbani

joined

Cohu's

Delta

Design

in

2003

and

has

been

Vice

President

and

General

Manager of Delta Design business unit since March 2015. He was previously President of

Delta Design’s Systems Group and also held the positions of Vice President of Engineering

and Vice President of SEG's High Performance Handler Group. Prior to joining Cohu, Mr.

Kabbani worked at Brooks Automation, where he held management positions in

engineering.

Mr. Kabbani has a Mechanical Engineering degree from McGill University in Montreal,

Canada.

Ian von Fellenberg

Vice President and General Manager, Ismeca

Ian

von

Fellenberg

joined

Cohu’s

Ismeca

in

2004

and

has

been

Vice

President

and

General

Manager of Ismeca

Business Unit since September 2013. In 2004 he set up operations in

China and managed both the North Asia and South Asia region for Ismeca. Prior to Ismeca,

Mr.

Fellenberg

spent

five

years

at

Orell

Füssli

Security

Printing

where

he

held

the

position

of

director of security technologies. He has also held various positions in sales and product

management for companies in the automation components (sensors, drives) industry.

Mr.

Fellenberg

holds

a

Master

of

Robotics

Engineering

from

the

Swiss

Federal

School

of

Technology (ETH).

Biographies

Alexander J. Waldauf

Vice President and General Manager, Rasco

Alex

Waldauf

was

one

of

the

founders

of

Cohu's

Rasco

subsidiary

in

1998

and

has

been

Vice

President

and

General

Manager

of

Rasco

since

January

2011.

He

was

previously

responsible

for

the

Test-In-Strip

product

line,

Managing

Director

of

Rasco

and

global

Vice

President

of

Sales

and

Service.

Prior

to

founding

Rasco,

Mr.

Waldauf

spent

6

years

at

Multitest

and

held

key

positions

in

engineering.

Mr. Waldauf has a Mechanical Engineering degree from the Austrian School of Technology

in Salzburg (HTL).

Maximilian W. Schaule

Chief Technologist

Max

Schaule

joined

Cohu

in

2012

and

was

instrumental

in

the

acquisition

of

Ismeca.

After

the

acquisition,

he

assumed

responsibilities

for

technology

development

and

integration

across

the

Cohu

group.

Prior

to

joining

Cohu,

Mr.

Schaule

spent

two

years

as

CTO

at

Ricmar,

a

start-up

wafer

handling

company,

and

spent

13

years

as

Vice

President

of

Engineering

at

Multitest.

Prior

to

Multitest,

Mr.

Schaule

worked

10

years

for

Digital

Equipment

in

development

of

disk

drive

technology.

Mr. Schaule has a Master of Mechanical Engineering from the Technical University of

Munich.

Appendix

June 18, 2015

Reconciliation of GAAP to Non-GAAP Results

(In thousands except per share amounts)

Earnings Reconciliation

Mar 29,

2014

Diluted

EPS

June 28,

2014

Diluted

EPS

Sept 27,

2014

Diluted

EPS

Dec 27,

2014

Diluted

EPS

Mar 28,

2015

Diluted

EPS

Income (Loss) From Continuing Operations - GAAP

($2,706)

($0.11)

$2,095

$0.08

$10,119

$0.39

$5,272

$0.20

($1,745)

($0.07)

Share Based Compensation

1,435

0.06

1,613

0.06

1,586

0.06

1,754

0.07

1,698

0.06

Amortization of Purchased Intangible Assets

2,003

0.08

2,002

0.08

1,954

0.07

1,843

0.07

1,775

0.07

Manufacturing Transition and Severance Costs

783

0.03

233

0.01

159

0.01

191

0.01

101

0.00

Other Acquisition Costs

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

Inventory Step-Up

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

Impairment of Goodwill and Other Assets

0

0.00

0

0.00

0

0.00

0

0.00

273

0.01

Tax Effect of Non-GAAP Adjustments

(554)

(0.02)

(683)

(0.03)

(342)

(0.01)

(493)

(0.02)

(445)

(0.02)

Income (Loss) From Continuing Operations - Non-GAAP

$961

$0.04

$5,260

$0.20

$13,476

$0.51

$8,567

$0.33

$1,657

$0.06

Weighted Average Shares - GAAP and Non-GAAP

Diluted

25,715

Diluted

25,797

Diluted

26,174

Diluted

26,338

Diluted

26,519

Gross Profit Reconciliation

Mar 29,

2014

% of Net

Sales

June 28,

2014

% of Net

Sales

Sept 27,

2014

% of Net

Sales

Dec 27,

2014

% of Net

Sales

Mar 28,

2015

% of Net

Sales

Net Sales

$60,170

$74,299

$91,573

$90,587

$63,447

Gross Profit - GAAP

20,030

33.3%

24,262

32.7%

32,953

36.0%

28,727

31.7%

20,145

31.8%

Share Based Compensation

75

0.1%

190

0.3%

85

0.1%

140

0.2%

115

0.2%

Amortization of Purchased Intangible Assets

1,573

2.6%

1,570

2.1%

1,533

1.7%

1,445

1.6%

1,385

2.2%

Manufacturing Transition and Severance Costs

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

Inventory Step-Up

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

Gross Profit - Non-GAAP

$21,678

36.0%

$26,022

35.0%

$34,571

37.8%

$30,312

33.5%

$21,645

34.1%

Operating Expense Reconciliation

Mar 29,

2014

% of Net

Sales

June 28,

2014

% of Net

Sales

Sept 27,

2014

% of Net

Sales

Dec 27,

2014

% of Net

Sales

Mar 28,

2015

Diluted

EPS

Operating Expense - GAAP

$22,852

38.0%

$21,358

28.7%

$20,946

22.9%

$21,440

23.7%

$20,862

32.9%

Share Based Compensation

(1,361)

-2.3%

(1,423)

-1.9%

(1,502)

-1.6%

(1,614)

-1.8%

(1,583)

-2.5%

Amortization of Purchased Intangible Assets

(430)

-0.7%

(432)

-0.6%

(421)

-0.5%

(398)

-0.4%

(390)

-0.6%

Manufacturing Transition and Severance Costs

(783)

-1.3%

(233)

-0.3%

(159)

-0.2%

(206)

-0.2%

(101)

-0.2%

Other Acquisition Costs

0

0.0%

0

0.0%

0

0.0%

0

0.0%

0

0.0%

Impairment of Goodwill and Other Assets

0

0.0%

0

0.0%

0

0.0%

0

0.0%

(273)

-0.4%

Operating Expense - Non-GAAP

$20,278

33.7%

$19,270

25.9%

$18,864

20.6%

$19,222

21.2%

$18,515

29.2%

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

3 Months Ending

Reconciliation of GAAP to Non-GAAP Results

(In thousands except per share amounts)

Earnings Reconciliation

Dec 28,

2013

Basic

EPS

Dec 27,

2014

Diluted

EPS

Income (Loss) From Continuing Operations - GAAP

($28,682)

($1.15)

$14,780

$0.57

Share Based Compensation

5,113

0.21

6,388

0.25

Amortization of Purchased Intangible Assets

7,763

0.31

7,802

0.30

Manufacturing Transition and Severance Costs

2,151

0.09

1,366

0.05

Other Acquisition Costs

385

0.02

0

0.00

Inventory Step-Up

987

0.04

0

0.00

Impairment of Goodwill and Other Assets

0

0.00

0

0.00

Tax Effect of Non-GAAP Adjustments

(2,306)

(0.09)

(2,072)

(0.08)

Income (Loss) From Continuing Operations - Non-GAAP

($14,589)

($0.59)

$28,264

$1.09

Weighted Average Shares - GAAP and Non-GAAP

Basic

24,859

Diluted

26,006

Gross Profit Reconciliation

Dec 28,

2013

% of Net

Sales

Dec 27,

2014

% of Net

Sales

Net Sales

$214,511

$316,629

Gross Profit - GAAP

57,400

26.8%

105,972

33.5%

Share Based Compensation

389

0.2%

490

0.2%

Amortization of Purchased Intangible Assets

6,067

2.8%

6,121

1.9%

Manufacturing Transition and Severance Costs

288

0.1%

0

0.0%

Inventory Step-Up

987

0.5%

0

0.0%

Gross Profit - Non-GAAP

$65,131

30.4%

$112,583

35.6%

Operating Expense Reconciliation

Dec 28,

2013

% of Net

Sales

Dec 27,

2014

% of Net

Sales

Operating Expense - GAAP

$88,376

41.2%

$86,596

27.3%

Share Based Compensation

(4,723)

-2.2%

(5,900)

-1.9%

Amortization of Purchased Intangible Assets

(1,696)

-0.8%

(1,681)

-0.5%

Manufacturing Transition and Severance Costs

(1,863)

-0.9%

(1,381)

-0.4%

Other Acquisition Costs

(385)

-0.2%

0

0.0%

Impairment of Goodwill and Other Assets

0

0.0%

0

0.0%

Operating Expense - Non-GAAP

$79,709

37.2%

$77,634

24.5%

12 Months Ending

12 Months Ending

12 Months Ending

12 Months Ending

12 Months Ending

12 Months Ending