1

Company Presentation

based on 6-Months- Report 2012

September 2012

VISIONFocus on the Future

All

2

LPKF: Mechanical Engineering and Laser Specialists

AGENDA

• Business Model and Segments• Financials • Strategy and Outlook

IR

3

Replacing traditional production technologies

• Production of electronic devices is still dominated by mechanical or chemical methods.

• Miniaturization and shorter product cycles are challenging electronic manufacturers.

• Laser technology is more precise, faster and more flexible than e.g. saws, punchers and routers in the production of electronics.

• The success of laser technology in electronic production ultimately depends on economics. This is our challenge!

IR

4

Tight focus on core skills

PrecisionDrive

Technology

Laser Technology & Optics

Control Technology& Software

Micro Material Processing with

Lasers

IR

5

LPKF Worldwide

Garbsen Germany

Head Office / Production

Tualatin (OR) USA

Shenzhen ChinaHong Kong China

Suzhou China

Tianjin China

Offices

Suhl Germany

Naklo Slovenia

Erlangen Germany

Chengdu China

Beijing China

Tokyo Japan

Shanghai China

Total export share: 90%Export share Asia: 47%Share of revenue invoiced in EUR: 80%

MG/MK/IR

6

Rapid PCB Prototyping EquipmentStencil Laser

Equipment

PCBProductionEquipment

LDSProductionEquipment

WeldingEquipment

Solar Module

Equipment

Electronics

Electronics DevelopmentEquipment

Electronics ProductionEquipment

Plastics

Other ProductionEquipment

SolarPlastics

Segments

IR

7

Rapid PCB Prototyping

Equipment for manufacturing prototype PCBs

Clients: UniversitiesSchoolsIndustry

Market position: approx. 80% market share

Competition: MITS (J)Everprecision (TW)

Strategic goal: Expanding market leadershipLPKF ProtoLaser U3

LPKF ProtoMat S103

IR

8

StencilLaser Equipment

Cutting lasers for the production ofSMT solder paste stencils

Clients: Electronics industryManufacturers of SMT stencils

Market position: Approx. 70% market share

Competition : Tanlinn Ltd. (UK)Nippon Sharyo (JP)other smaller providers

Strategic goal: Expanding market leadershipOpening up new client groups

LPKF StencilLaser G 6080

IR

9

PCB Production Equipment

PCB Production lasers: Laser systems for cutting assembled and unassembled printed circuit boards (PCBs)

Customers: PCB manufacturers, PCB assemblers

Market position: Marketleader

Competition: HAN‘S (China),ESI (USA)and other smaller suppliers

Strategic goal: Become the preferred supplier of leading electronics manufacturers

MicroLine 1120S und 1120P

IR

10

LDS Production Equipment

Structuring lasers for the production of molded interconnect devices using the LDS method patented by LPKF

Customers: Manufacturers of electronic components and equipment

Market position: MarketleaderLDS technology can be found in approx. 50% of all smartphones and approx. 20% of all cell phones

Competition: alternative methods

Next step: Expansion into other areas of application (laptops, tablet PCs,etc.)

Strategic goal: Establish LPKF LDS as the standard process for the production of certain MID types

LPKF Fusion3D 1500

IR

11

Welding Equipment

Laser welding of plastic components

Customers: AutomotiveMedical technology

Market position: Market leader in EuropeUSA: Top 2, Asia: Top 3

Competition: Branson (USA) Bielomatik (D) Leister (CH)

Current task: Increase profitability

Strategic goal: Become the preferred supplier of international companies, achieve market leadership

LPKF LQ Vario

IR

12

Solar Module Equipment

Structuring thin film solar panels

Customers: Thin film solar panel manufacturers

Market position: Market leader

Competition: Manz (D)

Innolas (D)

Current task: Take care of the orders under the general agreement,

refine LPKF’s own technologies

Strategic goal: Further improve the competitiveness of thin film

technologies

IR

13

Revenue split per segment

51%

16%

31%

2%

Q2 2012: 50.3 m EUR

57%19%

20%4%

Q2 2011: 37,7 m EUR

Electronics Development Equipment

Electronics Production Equipment

Others

Other Production Equipment

IR

14

Portfolio in 2012eM

arke

t G

row

th

Relative Market Share

Rapid Prototyping

LDS Plastic

Welding

Solar

PCB Production

Stencils

IR

15

Exceptionally high profitability

020406080100120

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e

Revenue

EBIT

• LPKF has grown profitably every single year since it started in 1976.

• We only target business areas that promise EBIT-margins of at least 10 % in the medium term.

• Overall, we expect EBIT-margins between 15 – 17 % for the coming years (2012 – 2014).

IR

16

LPKF: Mechanical Engineering and Laser Specialists

AGENDA• Business Model and Segments• Financials • Strategy and Outlook

17

• At EUR 50.3 million revenue is 34% higher compared to previous year (QII 2012: EUR 29.8 million; + 27.6 %)

• EBIT comes in at EUR 7.4 million, 42 % above the first 6 months of 2011 (QII 2012: EUR 5.2 million; + 58.6 %)

• EBIT margin: 6 months 2012: 14.8 % (Q II 2012: 17.5 %), 6 months 2011: 13.9 % (Q II 2011: 14.0 %)

• At 15%, the EBIT margin is in line with expectations

• Incoming orders at € 60 million at high level • At € 35 million, orders on hand climb to a record high

Financial Highlights after 6 months 2012

All, MG

18

Key Group Figures after 6 months 2012

6 months 2012

6 months 2011

Change % FY 2011

Revenue (EUR million) 50.3 37.7 33.6 91.1

EBIT (EUR million) 7.4 5.2 42.1 15.2

EBIT margin (%) 14.8 13.9 16.7

Free Cash Flow (EUR million) -0.6 -9.9 93.5 -10.9

Net working capital (EUR million) 41.0 29.0 41.2 39.7

ROCE (%) 10.0 9.7 23.4

EPS, diluted (EUR) 0.42 0.32 31.3 0.90

Orders on hand (EUR million) 34.9 26.1 33.6 25.2

Incoming orders (EUR million) 60.0 51.2 17.0 104.0

Employees 640 534 19.9 602

All, MG

19

Revenue after 6 months 2012

(EUR million) 6 months 2012

6 months 2011

Change % FY 2011

Revenue 50.3 37.7 33.6 91.1

Revenue by segment

Electronics Development Equipment 8.1 7.3 11.6 18.1

Electronics Production Equipment 25.7 21.4 20.3 45.2

Other Production Equipment 15.4 7.7 100.5 25.5

All other segments 1.1 1.3 -19.6 2.3

Revenue by region

Germany 5.2 5.5 -5.3 13.3

Other Europe 4.5 5.0 -8.3 10.3

North America 16.1 6.3 153.0 22.0

Asia 23.6 20.0 18.3 43.2

Other 0.9 0.9 0.2 2.3

IR

20

Revenue and EBIT by Segment

in EUR million Revenue EBIT

6 months 2012

6 months 2011

6 months 2012

6 months 2011

Electronics DevelopmentEquipment

8.1 7.3 1.1 1.4

Electronics ProductionEquipment

25.7 21.4 5.5 4.7

Other ProductionEquipment

15.4 7.7 1.3 -0.2

All other segments 1.1 1.3 -0.5 -0.7

Total 50.3 37.7 7.4 5.2

IR / AR

21

Solid Balance Sheet Structure

June 30,

2012

Dec 31,

2011

Total assets (EUR million) 97.6 89.6

Cash and cash equivalents (EUR million) 6.1 7.0

Equity (EUR million) 50.3 49.8

Equity ratio (%) 51.5 55.6

Net financial debt (EUR million) 17.8 8.3

• The change in net financial debt is due to expanding business and a due payment for the acquisition of minority shares.

IR

22

Investments in Future Growth Affect Cash Flow Figures

in EUR million 6 months

20126 months

2011

Net cash used in/generated by operating activities 4.2 -0.8

Net cash used in investing activities -4.8 -9.1

Free cash flow -0.6 -9.9

Net cash generated from/used in financing activities 0.0 0.2

Cash and cash equivalents (net) 4.8 3.2

• Positive cash flow from operating activities is a result of the strong EBIT.

• Investments in Q2 2012 are back at normal level after strong investments in 2011.

IR

23 © 2009

Share price development (1 year)

• LPKF‘s share price has risen by approx. 55 % during the last 12 months.

• Market capitalization has reached approx. EUR 158 million.

• LPKF was promoted to TecDAX on September 5th, 2012. The index comprises the 30 leading German technology stocks.

24

LPKF: Mechanical Engineering and Laser Specialists

AGENDA

• Business Model and Segments• Financials • Strategy and Outlook

25

Investment Highlights

• Exceptionally high profitability

• Tight focus on core skills

• Innovation excellence

• Replacing traditional production technologies

• Growth in dynamic markets

IR

26

Positive Outlook for 2012 ff.

Guidance for 2012: • Revenue of EUR 100 million - EUR 105 million • EBIT margin between 15% and 17%

Guidance for 2013 and 2014: • Revenue growth of approx. 10% per annum • EBIT margin to remain between 15% and 17%

Note: • Meeting these targets is contingent on a stable global economic development.• It is very difficult to predict the further ramifications of the sovereign debt crisis.

All, MG

27

Legal Notice

Disclaimer Disclaimer regarding forward-looking statements

This document contains forward-looking statements and statements on future expectations which reflect the current opinions and expectations of the management with respect to future events. These statements are subject to known and unknown risks and uncertainties which can neither be controlled nor precisely estimated by LPKF Laser & Electronics AG, and which could cause actual results, performances and events to differ materially from those forecast or indicated here.Actual results, performances and events may deviate to an unlimited extent as a consequence of: (i) general economic conditions, (ii) future changes in the performance of the financial markets, (iii) interest rates, (iv) currency exchange rates, (v) the behavior of other market participants, (vi) general competitive factors, (vii) changes in laws and regulations, (viii) changes in the policies of central banks, government authorities and/or (foreign) governments, (ix) regional and/or global conditions. LPKF assumes no liability and does not intend to update any forward-looking statements to reflect any events or conditions the take place after the publication of this material.

No updating LPKF AG assumes no liability for the (correctness and completeness of the) information contained herein, and does not intend to update this material.

No offer This presentation is merely intended to provide information and is not an investment recommendation. It is not an offer and is merely intended for general information purposes. All the descriptions, examples and calculations contained in this presentation are only provided for the purpose of illustration.

Registered trademarks All the names and trademarks referred to in this document are covered by unlimited copyright laws, and may not be used without the express permission of the relevant registered owners. The fact that they are mentioned in this document does not imply that they are not protected by the rights of third parties or companies.

 LPKF Laser & Electronics AG, 2012

IR

28

LPKF Laser & Electronics AG · Osteriede 7 · 30827 Garbsen · www.lpkf.deContact: Bettina Schäfer, Manager Investor Relations, Tel: +49 5131-70 95 1382, E-mail: bettina.schaefer@lpkf.com

IR