Cohu : Investor Presentation

COHU INVESTOR PRESENTATION

May 2024

© Cohu, Inc. All rights reserved.

Cautionary Statement Regarding Forward-Looking Statements

Forward-Looking Statements:

Certain statements contained in this presentation may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding expected CAGRs; assessments regarding market position for various products and services; effect of annual renewal rate on service contracts on future business; consequence of systems installed base or employee tenure; market segments CAGRs and growth drivers for each business; resiliency of recurring business; 3-5 year target plan or financial goals of a target model; target revenue CAGRs by business; all addressable market estimates; share and growth over time; market position and/or share in business verticals and changes over time; end-market growth estimates and related opportunities; any references to research and development, product plans, roadmaps, developments and schedules and any related product performance capabilities; strength of IP portfolio; savings or value from higher yield or increasing productivity; ongoing gross margin expansion or balance sheet strength; effectiveness of capital allocation strategies; revenue growth to $1 Bil; investment thesis; any future M&A; the amount, timing or manner of any share repurchases; and any other statements that are predictive in nature and depend upon or refer to future events or conditions; and/or include words such as "may," "will," "should," "would," "expect," "anticipate," "plan," "likely," "believe," "estimate," "project," "intend;" and/or other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Any third-party industry analyst forecasts quoted are for reference only and Cohu does not adopt or affirm any such forecasts.

Actual results and future business conditions could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: cyclical COVID-19 pandemic impacts; new product investments and product enhancements which may not be commercially successful; inability to effectively manage multiple manufacturing sites in Asia and secure reliable and cost-effective raw materials; failure of sole source contract manufacturer; ongoing inflationary pressures on material and operational costs coupled with rising interest rates; economic recession; instability of financial institutions where we maintain cash deposits and potential loss of uninsured cash deposits; the semiconductor industry is seasonal, cyclical, volatile and unpredictable; the semiconductor mobility market segment (primarily semiconductors used in smartphones, also other wearables) is undergoing a significant downturn; risks of using artificial intelligence within Cohu's product developments and business; the semiconductor equipment industry is intensely competitive; rapid technological changes and product introductions and transitions; a limited number of customers account for a substantial percentage of net sales; significant exports to foreign countries with economic and political instability and competition from a number of Asia-based manufacturers; loss of key personnel; reliance on foreign locations and geopolitical instability in such locations critical to Cohu and its customers; natural disasters, war and climate-related changes, including economic impacts from the Hamas-Israel conflict or any other wars; increasingly restrictive trade and export regulations impacting our ability to sell products, specifically within China; significant goodwill and other intangibles as percentage of our total assets; risks associated with the EQT acquisition, such as integration and synergies, and other risks associated with additional potential acquisitions, investments and divestitures; levels of debt; financial or operating results that are below forecast or credit rating changes impacting our stock price or financing ability; law/regulatory and including tax law changes; significant volatility in our stock price; and the risk of cybersecurity breaches.

These and other risks and uncertainties are discussed more fully in Cohu's filings with the SEC, including the most recently filed Form 10-K and Form 10-Q, and the other filings made by Cohu with the SEC from time to time, which are available via the SEC's website at www.sec.gov. Except as required by applicable law, Cohu does not undertake any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Page 2

COHU AT A GLANCE

$636M	~ 48%	~ 7%
FY23 Revenue	FY23 Gross Margin(2)	5-year Revenue CAGR(1)

$336M	Yield & Productivity	~ 24,700
Cash & Investments(1)	Customer Value Creation	Equipment Installed Base(1)

(1) As of December 30, 2023.

Page 3	(2)	Non-GAAP, see Appendix for GAAP to non-GAAP reconciliations.

A LEADER IN SEMICONDUCTOR TEST & INSPECTION(2)

Global infrastructure to supply equipment and services optimizing

semiconductor manufacturing yield and productivity

#1#2

Test Automation

Inspection

Thermal control and vision inspection technologies enabling higher yield

(1) Service business of Cohu systems.

Page 4	(2)	Based on Company estimates of addressable markets

#1	#1	#3
Services(1)	Test Interface	Semi Tester
Device applications,	High current MEMS	Compact, low-power,
spares, data analytics	interface architecture	scalable instruments

Recurring Business

RESILIENT RECURRING BUSINESS MODEL

$304M	$138M	~ 24,700	~ 500
LTM(1) Recurring	LTM(1) Service	Systems Installed	Highly Skilled
Revenue	Revenue	Base	Field Engineers
2.7%	~ 93%	108	~ 11 year
3-year CAGR (2)	Annual Renewal Rate	Customers	AverageTenure
	on service contracts
Consumable products	Cloud-based, automated	Over 280 high-volume	Virtual-assist and
generate stable revenue	order management for	manufacturing facilities	on-site support
	~ 14,000 different spares	in 31 countries

(1) Last Twelve Months (LTM) for the period ending March 30, 2023.

Page 5	(2)	Compound Annual Growth Rate (CAGR) from Q1'21 to Q1'24.

MID-TERM THESIS IN SEMICONDUCTORS

2023(1)	2023-26(1)
IC Market Size	CAGR

2026(1)

IC Market Size

All markets benefit from AI computing's accelerated transition to edge AI applications

"Anything" AI Data Centers are fast-growing

• 2023 market ~ $85B
• 2023-26CAGR ~ 22%

Automotive moving to autonomous driving

• 2023 market ~ $69B
• 2023-26CAGR ~ 11%
• Test cell utilization remains ~ 80%
• ADAS is the next big opportunity

Largest market, Wireless Comms returns to growth

• 2023 market ~ $134B
• 2023-26CAGR ~ 7%

Consumer & Industrial 2023-26 CAGRs ~ 7%

Data Centers(2)

Automotive

Wireless Comms

Consumer

Industrial & Military

PCs(3)

Wired Comms

$85B	22%
CAGR

$69B	11%
CAGR
	7%
$134B
CAGR
	7%
$56B
CAGR
	7%
$65B
CAGR
$80B	5%
CAGR
	3%
$27B
CAGR

$153B

$94B

$163B

$69B

$80B

$93B

$30B

	(1)	Source: Bank of America GSA Meeting, December 2023; Data from the Wall Street research.
Page 6	(2) Data Centers market size data includes DRAM memory.
(3)	PCs market size data includes Other Compute and NAND memory.

Bubble represents

IC market size

GROWING ADDRESSABLE MARKETS(1)

Computing		Automotive
2000			1300
$Million		Increasing processor	$Million
		power, advanced
		packages
		(high ASP products)
0			0
2023	2030		2023	2030
2023	2030		2023	2030

Autonomous vehicles, electrification, sensors, processing power, infotainment

Mobile & Consumer

1800

$Million

0

20232030

2023 2030

Edge AI applications with more processing power, sensors, mixed signal devices

800

$Million

0

Industrial

Autonomous systems, higher voltage/currents, processing, sensing, communications

20232030

2023 2030

1. Company estimates based on Wall Street Research for semiconductor market segments.

Page 7

INVESTED ~ 13% R&D(1) IN EXPANDING TECHNOLOGIES

Dynamic thermal control, advanced vision systems, high current carrying

capacity, data analytics optimization, universal mixed signal tester

ActiveThermal Control	Advanced Inspection
Dynamic heat removal from	AI optical inspection to ensure
processor devices(2) during test	device integrity and long-term reliability
~ 1%	1 μm	~ 2%
Higher TestYield	Defect Detection	Higher Yield
High Current Interface	Data Intelligence
MEMS pins with heat dissipation	Data analytics for predictive
architecture in sockets and probe cards	maintenance and factory automation
~ 2%	2%+
Higher TestYield	Higher Overall
	Equipment Efficiency

UniversalTester

Scalable configurations to match

portfolio needs with a reduced capital

investment requirement

~ 30%

Cost-of-Test Benefit

Page 8	(1) Non-GAAP last 12 months ending Dec .30, 2023; see Appendix for GAAP to non-GAAP reconciliations.
(2)	GPU, MPUs, APUs.

DELIVERING HIGHER YIELD & PRODUCTIVITY

Diverse customers and applications expanding addressable market

Increasing semiconductor complexity and package integration

Innovative solutions delivering higher yield & productivity

MID-TERM STRATEGY

Scalable model that optimizes profitability and shareholder value

Strong market position in each

business vertical

~ 20% share

in ~ $3.2 billion addressable market(1)

Opportunities

AI data centers, automotive ADAS(2) and electrification, edge AI computing, industrial automation, consumer wearables, infotainment

Broad IP portfolio

in thermal control for processors test (GPUs,

MPUs, APUs), vision

inspection, MEMS test

interface (SiC, RF, digital)

Grow Recurring

revenue w/interface products and data analytics to optimize productivity

Expand Systems

with differentiated technologies in growing markets

Target Revenue(3)

$1 billion

Gross Margin

50%

Operating Income

25%

	(1)	Cohu SAM: Serviceable Addressable Market are company estimates for 2023.
	(2) Advanced Driver Assistance Systems.
Page 9	(3)	Mid-term(3-5 years) target model.

2023 SUSTAINABILITY HIGHLIGHTS

Environmental		Product Safety &		Energy-Efficient		Business Ethics &		Employee Diversity(1),
		Materials Sourcing		Solutions		Employee Culture		Inclusion and Safety

• Renewable source energy usage increased to 32%
• $9.1M invested in a new energy-efficient mfg. facility
• Committed $1.2M for solar projects in Melaka & Laguna
• Rainwater harvesting system & deionized water recycling
• 838K non-hazardous waste &
  68% of hazardous waste recycled

• No product recalls
• No safety claims, legal proceedings or monetary losses
• Responsible mineral sourcing program
• Subsequent to invasion of Ukraine, ceased all business in Russia and Belarus

• Diamondx air-cooled architecture consumes~75% less power(2)
• DI-Coreimproves OEE(3)
• T-CoreATC(4) dynamically removes heat from devices
• Smart factory automation & AI deep learning solutions
• Enabling customer solutions for solar & wind power, vehicle electrification, & advanced healthcare

• Increased employee training hours investment by 11%YoY
• Returned 4.5% of profits to eligible non-exec. employees
• No bribery/corruption or anti- competitive behavior claims, legal proceedings, or monetary losses
• No direct monetary contributions to political campaigns, lobbying

Gender

• 29% female, 71% male
• 25% female board members

Race/Ethnicity

• 40% minority population
• 60% majority population

Excellent employee safety record - accident rate 67% belowindustry benchmark

Committed to engage with the Science Based Targets initiative ("SBTi") with the goal

to develop near-termscience-based emissions reduction targets

	(1)	Cohu tracks race/ethnicity data only in the US; data as of year-end 2023
	(2)	Vs comparable liquid-cooled test system
Page 10	(3)	Overall equipment efficiency

1. Active thermal control