Lena Olving CEO & President

Torbjörn Wingårdh CFO

Nordea Small & Midcap Seminar 2018

Me

Mycronic in short

2

>40 years of experience in

innovation

>1,100 employees

in ten countries

>50 Mycronic is represented

in more than 50 countries

>500 patents proves the power

of innovation

>12,000 production systems at more

than 3,000 customers

>98% of consolidated net sales are

outside Sweden

3

”The business partner of choice, enabling the future of electronics”

Our vision

Production solutions for every day life

4

Serving the electronics industry

Assembly Solutions

• Leading and innovative production solutions and aftermarket offerings for the electronics assembly industry

• Advanced mask writers indispensible for the production of the world’s displays as well as a broad aftermarket offering

5

Pattern Generators

Financial goals

6

5 billion Net sales including

acquisitions shall reach SEK 5 billion at the end of the business plan period, 4 to 7

years

GROWTH

>15 % EBIT margin to exceed 15

percent over a business cycle

PROFITABILITY

< 3times Net debt below 3 times the average EBITDA calculated

over three years

CAPITAL STRUCTURE

SVERIGE

Continued execution of strategic direction

7

Strengthen the position as a leading supplier within existing market segment

Profitable growth within adjacent market segment

Ensure the power of innovation to increase competitiveness

Profitable growth in Asia within existing and adjacent segments

Value creation through focus on sustainability

Product development

has strengthened our position in

existing markets

Acquisitions have expanded our market within high growth segments

Drives growth under

sustainable profitability

Certification and standards

Clear roadmap since 2013

Assembly Solutions Broad product offering for efficient electronics manufacturing

• Jet printing & dispensing • Pick-and-place assembly equipment • Component storage systems • Advanced software solutions

• Camera module assembly equipment

• Ultra-high precision die bonding equipment

8

• Solder Paste Inspection (SPI) • Automated Optical Inspection (AOI) • Advanced software suite (Sigma)

• Broad range of dispensing and coating systems

Cost effective electronics manufacturing

• Cost per placement • Higher productivity • Higher yield

Just-in-time production • Larger product mix and shorter series • Shorter product life cycles • Logistics and material handling

Increased complexity and miniaturization

• More components – large and small • More complex PCB:s • More functionality in less space

Assembly Solutions

9

Strategy based on market drivers

Increased reliability demands • High reliability applications • Shock proof and stress reliability • Water, moisture and dust protection

Modern SMT full line solution

10

Screen/jet printer Pick & place Reflow oven SPI AOI Dispenser Dispenser AOI

The SMT line

MY700 Jet Printer Solder paste and glue jetting

Π Series 3D solder paste inspection (SPI)

MY300 Pick & place for high mix applications

Κ Series 2D and 3D automated optical inspection (AOI)

MYSmart Series For any dispensing need

SMD Tower Smart storage solutions

Mycronic 4.0 software suite • Material handling and tracking • Fast change overs • SPC

Passive warning

Active safety intervention

Camera module assembly equipment

• Mycronic, through AEi which we acquired in 2016, is the market and technology leader in the Camera Module Assembly & Test (CMAT) market for the automotive sector

• Strong growth, from 130 million units in 2017 to 300 million units in 2022 (CAGR 18%), driven by ADAS (Advanced Driver Assistance Systems) and Autonomous Driving

11

Sensors for ADAS applications

2014 2015 2016 2017 2018 2019 2020 2021 2022 General

information Passive warning

Active safety intervention

Active primary vehicle control

Convenience Safety Autonomous

Leading supplier for the automotive industry

12

Best-in-class automated die bonding systems MRSI

• Excellent strategic match • Fast growing market • Net sales of USD 31 million (2017) • Founded 1984 and holds 60 employees • Close to the AEi and Mycronic facilities in the Boston area • Creates strong Boston hub • Combined offer from AEi and MRSI to the automotive segment • High commitment of former owners to the company

Michael Chalsen President

Michael Gagnon VP of Operations

Cyriac Devasia VP of Engineering

Presentera företaget och förvärvet ”high level” Will get more up-to-date pictures & marketing material latest Tuesday EOB.

Pattern Generators Indispensable for the display industry

• FPS series

Display Multi-purpose Value Added Products

• Prexision mask writer & metrology series • Upgrades and modifications to improve mask quality

13

~160 PPI ~400 PPI ~60 PPI

Capitalizing on market transitions

14

Higher and higher resolution

Larger and larger displays

Displays in new applications

Transition from LCD to AMOLED

Investments in P800/P80 & Prex-MMS Investments in P10

Investments in the Prexision series Investments in P800/P80 & Prex-MMS

• Accounts for 30% of revenue • Adds to stability in sales and profits • More than 90% of Pattern Generators customers have

service agreements • MYCare is an after market offering to Assembly

Solutions customers • Creates stickiness to the customer • Roll-out has started in acquired companies

• Digitalization of the after market business

After market adds stability

15

Mycronic group:

Strong performance

Net sales 997 MSEK

EBIT margin 3%

Market Cap 1,214 MSEK

2013 Net sales

3,001 MSEK

EBIT margin 28%

Market Cap 8,323 MSEK

2017

Executing of strategic direction

Long term net sales target

Long-term goal in 4-7 years 5,000 MSEK

Outlook 2018 3,500 MSEK

16

17 v180315

Q2: Strong order growth and robust development

• Order intake +86% in Q2 (36% YTD) o Good development within Assembly Solutions o Good performance from acquisitions o Prexision-8 replacement

• Net sales at 882 MSEK or -3% (+3% YTD) o Solid performance from Assembly Solutions o Planned deliveries YTD were 3 compared to 7 last year

• Underlying EBIT 265 MSEK with a margin of 30% o Acquisition related costs of 28 MSEK (47 MSEK YTD) o Variation between quarters of delivery volumes of mask writers o Increased investments in R&D

• Order backlog +112% to 1,935 MSEK o Assembly Solutions at record high 545 MSEK or +95% o Good base for deliveries

• MRSI: leading provider of ultra-high precision die bonding equipment

Q2: Strong momentum

18

Marketplace • Continued high growth in global electronics industry expected • Strong growth in Mycronic’s market segments • Shift from LCD to AMOLED drives photomask area growth • Market update slides are available at the end of the presentation, pages 29-35

Major Q2 orders, deliveries and launches • Order for a replacement system based on Prexision-8 • Launch of FPS8100 mask writer for the multi-purpose segment • Delivery of two replacement system based on Prexision-8

Executive appointments • Charlott Samuelsson Sr VP Pattern Generators • Lena Båvegård Sr VP Operational Excellence • Anette Mullis Sr VP HR effective August 20

August: Two FPS6100 mask writers to customer in Asia

Favorable market

19

Source: Prismark May/June 2018, PROTEC MDC January 2018, IHS April 2018, IHS May 2018.

20

Q&A

21