November 16, 2011

November 16, 2011

8
8
th th
Annual Citi
Annual Citi
Small/Mid Cap Conference
Small/Mid Cap Conference
Page 2
11-16-11
.. ..
Forward Looking Statements and Regulation FD
Forward Looking Statements and Regulation FD
Certain matters discussed in this presentation, including Certain matters discussed in this presentation, including
statements concerning expectations of Cohu statements concerning expectations of Cohu s future operating s future operating
performance, are forward performance, are forward- -looking statements that are subject to looking statements that are subject to
risks and uncertainties that could cause actual results to diffe risks and uncertainties that could cause actual results to differ r
materially from those projected or forecasted. Such risks and materially from those projected or forecasted. Such risks and
uncertainties include, but are not limited to; inventory, goodwi uncertainties include, but are not limited to; inventory, goodwill, ll,
and other intangible asset write and other intangible asset write- -downs, our ability to convert new downs, our ability to convert new
products under development into production on a timely basis, products under development into production on a timely basis,
support product development and meet customer delivery and support product development and meet customer delivery and
acceptance requirements for next generation equipment; and acceptance requirements for next generation equipment; and
customer orders may be cancelled or delayed. These and other customer orders may be cancelled or delayed. These and other
risks are discussed more fully in Cohu risks are discussed more fully in Cohu s filings with the Securities s filings with the Securities
and Exchange Commission, including the most recently filed Form and Exchange Commission, including the most recently filed Form
10 10- -K and Form 10 K and Form 10- -Q. Cohu assumes no obligation to update the Q. Cohu assumes no obligation to update the
information in this presentation. information in this presentation.
Page 3
11-16-11
Cohu Investment Summary
Cohu Investment Summary
Enabling technologies and industry Enabling technologies and industry- -leading products to leading products to
drive market share growth drive market share growth
Operating leverage provides opportunity for significant Operating leverage provides opportunity for significant
growth in profits during upcycles growth in profits during upcycles
Strong, debt Strong, debt- -free balance sheet to enable future growth free balance sheet to enable future growth
opportunities opportunities
Track record of sound acquisitions Track record of sound acquisitions e.g. 2008 Rasco e.g. 2008 Rasco
purchase expanded TAM, with no product overlap and purchase expanded TAM, with no product overlap and
strong cross strong cross- -selling synergies selling synergies
Cash dividend since 1977 Cash dividend since 1977 - - currently $0.06/share currently $0.06/share
Market leader in semiconductor test handling equipment Market leader in semiconductor test handling equipment
Page 4
11-16-11
Cohu, Inc. Operating Units
Cohu, Inc. Operating Units
Note: 2010 Results
Broadcast
Microwave 8ervices
10% 10%
8emiconductor
Equipment Group
85% 85%
Electronics Division
5% 5%
COHU, nc.
S322.7M
Page 5
11-16-11
Cohu Cohu s largest business s largest business
IC test handlers and thermal sub IC test handlers and thermal sub- -systems systems
Semiconductor capital equipment Semiconductor capital equipment
Dynamic, cyclical industry, with rapid and steep changes in dema Dynamic, cyclical industry, with rapid and steep changes in demand nd
December 2008 acquisition of Rasco GmbH increased TAM 70%, December 2008 acquisition of Rasco GmbH increased TAM 70%,
expanded product portfolio and broadened customer base expanded product portfolio and broadened customer base
Semiconductor Test Handling Equipment
Semiconductor Test Handling Equipment
* Source: VLSI Research, Inc. and Company estimates
COHU
#2 in Gravity #2 in Gravity- -Feed Feed
Test Handlers Test Handlers
A Cohu Company
*
#1 in Logic Pick&Place #1 in Logic Pick&Place
Test Handlers Test Handlers
*
Page 6
11-16-11
Semiconductor
Semiconductor
Manufacturing Process
Manufacturing Process
Wafer
Fab
The Front-End
Ship
Inspection Mark Test Assembly
Cohu handlers, thermal subsystems and equipment are Cohu handlers, thermal subsystems and equipment are
an essential part of the IC manufacturing process an essential part of the IC manufacturing process - - used used
with ATE to cost with ATE to cost- -effectively test ICs for quality and effectively test ICs for quality and
functionality functionality
Final Manufacturing Processes
The Back-End
Delta Delta EDGE EDGE
Page 7
11-16-11
Positioned for Continued Growth
Positioned for Continued Growth
Semiconductor Test Handler Market Semiconductor Test Handler Market
Source: VLSI Research, Inc. and Company estimates
Key market drivers: IC unit volume, increasing IC content, Key market drivers: IC unit volume, increasing IC content,
expanding applications, new IC package types expanding applications, new IC package types
Our products address 62% of the market Our products address 62% of the market
Rasco acquisition added gravity Rasco acquisition added gravity- -feed and strip handlers feed and strip handlers
Gravity Gravity- -feed is well feed is well- -suited for handling small IC packages suited for handling small IC packages
critical to miniaturization of CE products critical to miniaturization of CE products
Page 8
11-16-11
Market Share Leadership
Market Share Leadership
IC Test Handlers IC Test Handlers
Logic Pick & Place Logic Pick & Place Handlers Handlers
Gravity Feed Handlers Gravity Feed Handlers
Source: 2010 VLSI Research, Inc. and Company estimates
#1 Position #1 Position
#1 Position #1 Position
#2 Position #2 Position
#1 or #2 position in every test #1 or #2 position in every test
handler market served by Cohu handler market served by Cohu
Page 9
11-16-11
Leading Technologies to Drive Market Share Gains
Leading Technologies to Drive Market Share Gains
PRODUCTIVITY PRODUCTIVITY
X32 (X4 Chuck) 125C Thermal Testing
120.0
121.0
122.0
123.0
124.0
125.0
126.0
127.0
128.0
129.0
130.0
00.00 04.32 08.64 12.96 17.28 21.60 25.92 30.24 34.56 38.88
Time (s)
T
e
m
p
e
ra
tu
re
(C
)
Site B1
Site A1
Site D1
Site C1
Site B2
Site A2
Site D2
Site C2
Site B3
Site A3
Site D3
Site C3
Site B4
Site A4
Site D4
Site C4
Site A5
Site B5
Site C5
Site D5
Site A6
Site B6
Site C6
Site D6
Site A7
Site B7
Site C7
Site D7
Site A8
Site B8
Site C8
Site D8
- Tmin. = 123.4 C
- Tmax. = 127.9 C
- Temp. Range = 4.5C
- Sites A5 and A6 were not
functioning, no temperature reading. 80
90
100
110
120
130
140
0 2 4 6 8 10 12 14 16 18 20
Time (sec)
T
e
m
p
(
C
)
Temp Rise
6.0C
4.3C
3.9C
3.4C
2.6C
Thermal response at 125W
FLEXIBILITY FLEXIBILITY
Industry Industry- -leading Parallelism & Throughput leading Parallelism & Throughput
Lowers cost Lowers cost- -of of- -test test
Vision Alignment Vision Alignment
Enables accurate testing of small form Enables accurate testing of small form
factor IC packages factor IC packages a fast growing market a fast growing market
Thermal Management Thermal Management
Proprietary thermal technology increases Proprietary thermal technology increases
test accuracy and yields test accuracy and yields
Chamber Chamber- -less Tri less Tri- -Temperature Temperature
Allows on Allows on- -line maintenance at temperature, line maintenance at temperature,
reducing downtime reducing downtime
Page 10
11-16-11
Proprietary Thermal Technology
Proprietary Thermal Technology
Solves a Growing Problem in IC Test
Solves a Growing Problem in IC Test
Delta Design is the industry leader in high Delta Design is the industry leader in high- -power/DUT thermal power/DUT thermal
management management
Enabling capability that optimizes speed grading, increasingly Enabling capability that optimizes speed grading, increasingly
important for GPUs as well as MPUs important for GPUs as well as MPUs
Latest technology incorporated in next Latest technology incorporated in next- -gen Pyramid thermal handler gen Pyramid thermal handler
2.79
2.82
2.85
2.88
2.91
2.94
2.97
3.00
3.03
3.06
3.09
7
8
8
0
8
2
8
4
8
6
8
8
9
0
9
2
9
4
9
6
9
8
1
0
0
1
0
2
1
0
4
1
0
6
1
0
8
1
1
0
1
1
2
1
1
4
1
1
8
1
2
0
1
2
2
Fmax Uncertainty for MPUs
Freq. vs. Temp
2% / 10
o
C Typical
2
o
C Tj error
Fmax Uncertainty
10
o
C Tj error
Fmax Uncertainty
M
a
x
.

F
r
e
q
.

-
G
H
z
Tj Setpoint deg. C
Speed = $ Speed = $
Core i3 Core i3 3.1 Ghz 3.1 Ghz $129 $129
Core i3 Core i3 3.3 Ghz 3.3 Ghz $159 $159 (+23%) (+23%)
Source: Computeredge.com
(November 2, 2011)
Page 11
11-16-11
MATRiX
Pyramid
Next
Generation
Delta Design
Delta Design
Rasco
In In
Production Production
In In
Production Production
Initial Initial
Customer Customer
Evaluation Evaluation
- Thermal Pick & Place Handlers Thermal Pick & Place Handlers
- High Speed Pick & Place Handlers High Speed Pick & Place Handlers
- Gravity Gravity- -Feed & Strip Handlers Feed & Strip Handlers
Industry Industry- -leading systems in each product line leading systems in each product line
Broad Product Portfolio
Broad Product Portfolio
F
i
n
a
l

a
n
d

8
y
s
t
e
m

L
e
v
e
l

C

T
e
s
t
F
i
n
a
l

a
n
d

8
y
s
t
e
m

L
e
v
e
l

C

T
e
s
t
Page 12
11-16-11
Wide Customer Base
Wide Customer Base
Realizing cross Realizing cross- -selling opportunities, resulting in market share gains selling opportunities, resulting in market share gains
Rasco Rasco
Delta Design Delta Design
Page 13
11-16-11
Largest global sales and service network in the industry... Largest global sales and service network in the industry...
24/7 Global Customer Support
24/7 Global Customer Support
POWAY, CA
Delta Headquarters
Long Island,
NY
MALAYSIA
- Kuala Lumpur
- Penang
- Malacca
- Kulim
Burlington, VT
TAIWAN
- Taipei
- Kaohsiung
- Hsinchu
SOUTH KOREA
- Seoul
JAPAN
CHINA
- Tianjin
- Shanghai
- Suzhou
- Chengdu
THAILAND
- Bangkok
Hillsboro, OR
Boise, ID
Austin, TX
COSTA RICA
Houston, TX
Chandler, AZ
UNITED
KINGDOM
MALTA
Tyngsborough,
MA
Dallas, TX
SINGAPORE
Delta-Rasco
Asia Headquarters
KOLBERMOOR, DE
Rasco Headquarters
San Jose, CA
INDONESIA
Depth and Breadth is a Competitive Advantage Depth and Breadth is a Competitive Advantage
Tooling Design/Mfg
PHILIPPINES
- Manila
- Baguio
- Cavite
- Laguna
- Tokyo
- Batam
Financial Update
Financial Update
Poway, California Headquarters
Page 15
11-16-11
Semi/Semi Equipment Update
Semi/Semi Equipment Update
Source: SEMI 2011
Most semiconductor equipment companies have guided to Most semiconductor equipment companies have guided to
lower operating results in Q4 lower operating results in Q4
Global macro Global macro- -economic weakness and uncertainty is economic weakness and uncertainty is
slowing worldwide demand for semiconductors slowing worldwide demand for semiconductors
Equipment utilization rates in our customers Equipment utilization rates in our customers test facilities test facilities
are currently in the 70% are currently in the 70% - - 75% range 75% range
$20
$70
$120
$170
$220
$270
$320
$370
$420
$470
Millions Orders
A
u
g
A
u
g
2006 2007 2008 2009 2010 2011
0.45
0.55
0.65
0.75
0.85
0.95
1.05
1.15
1.25
1.35
1.45
1.55
2006 2007 2008 2009 2010 2011
A
u
g
A
u
g
Book to Bill
Page 16
11-16-11
Q3
Q3

11 Results / Q4
11 Results / Q4

11 Guidance
11 Guidance
Q3 Highlights Q3 Highlights
Sales $71.8 Sales $71.8
Orders $61.4M Orders $61.4M
Non Non- -GAAP EPS $0.21 GAAP EPS $0.21
Backlog of $74.5M Backlog of $74.5M
$0.06 cash dividend $0.06 cash dividend
Q4 Guidance Q4 Guidance
Sales ~ $65M Sales ~ $65M
Gross Margin ~ 32% (non Gross Margin ~ 32% (non- -GAAP) GAAP)
Operating Expense ~ $19M (non Operating Expense ~ $19M (non- -GAAP) GAAP)
Cost reduction actions in response to softening Cost reduction actions in response to softening
business conditions business conditions
Page 17
11-16-11
Strong Balance Sheet
Strong Balance Sheet ($M, except per share amounts) ($M, except per share amounts)
Production ramped to meet thermal handler demand Production ramped to meet thermal handler demand
and previously forecasted high and previously forecasted high- -speed handler orders speed handler orders
Cash and Investments $98.2 $101.7
Working Capital $168.7 $189.5
Bank Debt $0 $0
DSO 60 70
Cash per share $4.09 $4.21
Dec 10 Sept 11
Page 18
11-16-11
#1 in IC Test Handler Industry #1 in IC Test Handler Industry
Rasco acquisition expanded TAM and has been highly Rasco acquisition expanded TAM and has been highly
successful successful
Well positioned for market share growth from: Well positioned for market share growth from:
New, industry New, industry- -leading pick & place handlers leading pick & place handlers
Ramp of Pyramid, next Ramp of Pyramid, next- -gen thermal handler gen thermal handler
Next Next- -Gen gravity Gen gravity- -feed handler feed handler - - initial customer evaluation initial customer evaluation
expected to begin in Q4 expected to begin in Q4 11 11
Significant cross selling opportunities Significant cross selling opportunities
Strong balance sheet with no bank debt Strong balance sheet with no bank debt
Dividend provides return even during downcycles Dividend provides return even during downcycles
(currently yielding >2%) (currently yielding >2%)
Summary
Summary
November 16, 2011
November 16, 2011
Thank you!
Thank you!
8
8
th th
Annual Citi
Annual Citi
Small/Mid Cap Conference
Small/Mid Cap Conference