ACM Research, Inc. March 2026 Investor Presentation 1 DISCLOSURES Forward-looking Statements. Certain statements contained in this presentation are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," "designed," and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM Research management's current expectation ...

Core Insights - ACM Research (ACMR) reported record annual revenue of $901.31 million, a 15.2% increase, but experienced a significant drop in gross margin to 40.9% from 49.6%, leading to an earnings per share (EPS) miss [1][4] - Kulicke & Soffa (KLIC) achieved Q1 revenue of $199.63 million, up 20.2% year-over-year, with non-GAAP EPS of $0.44 exceeding consensus estimates, while maintaining a gross margin of 49.6% [1][5] Company Performance - ACMR's Q4 2025 revenue was $244.43 million, reflecting a 9.4% year-over-year growth, but gross margin fell to 40.9% due to unfavorable product mix and competitive pressures, resulting in a non-GAAP EPS of $0.25, missing the $0.53 consensus [4][6] - KLIC's Q1 FY2026 revenue reached $199.63 million, surpassing the $190 million estimate, with a non-GAAP EPS of $0.44, significantly above the $0.33 consensus, and gross margin remained stable at 49.6% [5][6] Strategic Focus - ACMR is heavily reliant on the Chinese market, which poses risks related to export controls and trade policies. The company is working on diversifying its operations, including a new facility in Oregon expected to open in the second half of 2026 [7] - KLIC has exited its Electronics Assembly business and is focusing on higher-margin segments such as Power Semiconductor and Advanced Packaging, which has led to improved earnings predictability [8] Future Guidance - ACMR's guidance for FY2026 suggests revenue between $1.08 billion and $1.175 billion, indicating potential growth, but concerns remain about the sustainability of gross margins if the product mix does not improve [9] - KLIC's guidance for Q2 FY2026 anticipates approximately $230 million in revenue and a non-GAAP EPS of $0.67, indicating continued positive momentum [9] Market Position - ACMR's analyst target price is $70.50, significantly above its current trading price of $46.92, with six analysts rating it as a buy or strong buy, despite the EPS miss and structural risks related to its China exposure [10] - KLIC is trading near its analyst target of $66.67 at $66.15, with a more predictable earnings trajectory and margin profile, and it also offers a dividend, contrasting with ACMR's higher execution risk [10]

Group 1: Financial Performance - ACM Research achieved record annual revenue of $901.3 million in 2025, representing a 15% increase year-over-year [1] - Q4 revenue increased by 9.4% to $244.4 million, indicating a more moderate growth compared to the full year [1] Group 2: Geographic and Product Expansion - In 2025, ACM made significant progress in global markets, delivering its first single-wafer cleaning systems to a foundry in Singapore and securing multiple orders for wafer-level and panel-level packaging tools from North American and Southeast Asian customers [2] - The company reached technical milestones with the delivery of its first Ultra ECP ap-p horizontal panel-level plating tool and the Ultra Lith BK photoresist hardening tool [2] Group 3: Future Outlook - ACM Research entered 2026 with a strengthened balance sheet, reporting $845 million in net cash following a private offering by its Shanghai subsidiary and a subsequent share sale [3] - The company maintained its 2026 revenue guidance of $1.08 billion to $1.175 billion, projecting growth between 21% and 30% [3]

Group 1: National Energy Services Reunited Corp. (NESR) - NESR is an oilfield services company with a Zacks Rank 1 and a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - NESR's shares have gained 39.6% over the last three months, while the S&P 500 has declined by 2.2% [1] - The company has a Momentum Score of A [1] Group 2: Everus Construction Group, Inc. (ECG) - ECG is a contracting services company with a Zacks Rank 1 and a 9.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - ECG's shares have gained 14.6% over the last three months, compared to the S&P 500's decline of 2.2% [2] - The company has a Momentum Score of B [2] Group 3: ACM Research, Inc. (ACMR) - ACMR is a capital equipment company with a Zacks Rank 1 and a 13.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - ACMR's shares have gained 13.8% over the last three months, while the S&P 500 has declined by 2.2% [3] - The company has a Momentum Score of B [3]

Group 1 - Advanced Energy Industries (AEIS) has shown strong year-to-date performance, returning 38.9%, significantly outperforming the average return of -4.2% for the Computer and Technology sector [4] - AEIS is ranked 4 in the Zacks Sector Rank among 608 companies in the Computer and Technology group, indicating a strong position within its sector [2] - The Zacks Rank for AEIS is 1 (Strong Buy), reflecting a positive earnings outlook and improving analyst sentiment, with a 10.9% increase in the full-year earnings estimate over the past three months [3][4] Group 2 - AEIS belongs to the Semiconductor Equipment - Wafer Fabrication industry, which is currently ranked 6 in the Zacks Industry Rank, and has outperformed the average industry gain of 21.2% year-to-date [6] - Another company in the sector, ACM Research, Inc. (ACMR), has also performed well with a year-to-date return of 13.9% and a Zacks Rank of 1 (Strong Buy) [5][7] - The Semiconductor Equipment - Material Services industry, to which ACMR belongs, is ranked 1 and has seen a year-to-date increase of 17.2% [7]

Group 1 - Everus Construction Group, Inc. (ECG) has seen a 9.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Amneal Pharmaceuticals, Inc. (AMRX) has experienced a 6.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - National Energy Services Reunited Corp. (NESR) has reported a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - ACM Research, Inc. (ACMR) has seen a 13.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - The Hershey Company (HSY) has experienced an 18.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that by 2040, humanoid robots could create a market worth $250 trillion, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the potential of AI to unlock multi-trillion-dollar opportunities, reinforcing the optimistic outlook on AI's economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is believed to be redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, suggesting that it could be a significant investment opportunity [4][6] - Prominent figures in technology and finance, including Bill Gates and Warren Buffett, recognize AI as a major technological advancement with the potential for substantial social benefits [8]

Corporate Structure and Operations - ACM Research has a direct ownership interest in ACM Shanghai, holding 74.6% of the outstanding shares[14] - The company conducts a substantial majority of its product development and manufacturing in mainland China through ACM Shanghai[12] - The company believes it has all necessary operating permits and licenses to operate in mainland China[15] - The company has not experienced significant intervention from mainland China authorities that impacted its operations to date[14] - ACM Research's corporate structure may expose it to legal and operational risks due to a substantial portion of operations in mainland China[23] - The company has never experienced a work stoppage, and employee relations are considered good, which is crucial for maintaining operational stability[78] Market and Revenue Insights - Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning equipment totaled $626.0 million, representing 69.5% of total revenue in 2025, compared to $578.9 million (74.0%) in 2024 and $403.9 million (72.4%) in 2023[38] - Revenue from ECP (front-end packaging), furnace and other technologies totaled $199.6 million, or 22.1% of total revenue in 2025[38] - Revenue from advanced packaging (excluding ECP), services and spares totaled $75.8 million, or 8.4% of total revenue in 2025[38] - The current product portfolio addresses approximately $21 billion of the 2025 global WFE market, with $7.3 billion from wafer cleaning equipment and $5.3 billion from PECVD equipment[39] - Revenue distribution by customer type in 2025 shows Foundry/Logic/Other at 59%, Memory at 27%, and Advanced Packaging/Wafer Processing at 14%[56] - A substantial majority of sales of semiconductor capital equipment have been to customers located in Asia, with expectations for continued revenue from this region[41] Industry Trends and Competition - Gartner's forecasts indicate trends in semiconductor capital spending, which may impact ACM Research's market position[29] - The global wafer fab equipment (WFE) market is estimated to grow by 11.0% from $111.6 billion in 2024 to $123.9 billion in 2025, with a further increase of 11.8% to $138.5 billion in 2026[40] - The semiconductor equipment industry is highly competitive, with principal competitors including Lam Research Corporation and Applied Materials, Inc.[74] - The company faces competition from major players like Lam Research Corporation and Tokyo Electron Ltd., as well as emerging competitors from mainland China[74] Research and Development - Significant investments are being made in research and development to meet challenging technical requirements and develop new proprietary process capabilities[64] - The company employs 2,513 full-time equivalent employees, with 1,228 in research and development, indicating a strong focus on innovation[78] - The company has been investing in the development of new products for several adjacent front-end process steps, including furnace, PECVD, and track[44] - The company focuses on research and development, employing highly skilled engineers to meet challenging technical requirements in semiconductor manufacturing[64] Patents and Intellectual Property - As of December 31, 2025, the company has been issued more than 594 patents across various jurisdictions, including 82 issued patents and 33 patents pending in the United States[68] - The company has 66 patents granted internationally protecting its SAPS technologies, with 13 international patent applications filed for key TEBO technologies and 8 for Tahoe technologies[69] - The company has not granted licenses to third parties under its patents to date, but may consider licensing arrangements in the future[70] Environmental and Regulatory Considerations - The company has designed tools that use environmentally friendly dilute chemicals, which helps customers comply with increasing environmental regulations[85] - The company does not expect existing or pending climate change laws to materially impact its operations in the foreseeable future[83] - Environmental regulations in mainland China are increasing, potentially raising operational costs due to compliance requirements[83] - The company’s technologies, such as SAPS and TEBO, replace harmful chemicals with less environmentally damaging alternatives, enhancing sustainability[84] Business Continuity and Employee Relations - The company maintains disaster recovery and business continuity plans to mitigate risks from severe weather events that could disrupt operations[82] - Employee training and development programs have been in place for over a decade, crucial for retaining key talent necessary for future growth[81] - The company offers competitive total compensation packages to attract and retain qualified employees, particularly in Shanghai[80] - The company operates primarily in mainland China, emphasizing the importance of attracting and retaining skilled employees in R&D and manufacturing to maintain competitiveness[79] Strategic Expansion - The company is focusing on expanding its customer base beyond mainland China to North America, Western Europe, and Southeast Asia[41] - The company anticipates that a substantial majority of its revenue will continue to come from customers located in Asia for the foreseeable future[41] - The company maintains a strong online presence for investor relations, providing timely updates on financial performance and business strategy[88]

Core Insights - ACM reported a 9% revenue growth in Q4 2025 and a 15% growth for the full year, driven by strong execution across its core business and advancements in new product platforms [1][5][27] - The company is focusing on AI and data center infrastructure investments, which are reshaping global semiconductor demand [1][4] - ACM's differentiated technology portfolio is gaining traction with global customers, particularly in advanced packaging and cleaning tools [4][10] Financial Performance - Q4 revenue reached $244 million, up 9.4%, while full-year revenue was $901.3 million, up 15.2% [27][28] - Gross margin for Q4 was 41.0%, slightly below the long-term target range of 42% to 48%, attributed to product mix and higher inventory provisions [7][31] - Net cash at year-end was $845 million, significantly up from $259 million at the end of 2024, providing a strong foundation for future growth [8][35] Product Developments - Revenue from single-wafer cleaning tools was $626 million, representing 69% of total revenue, with an 8% year-over-year growth [9][10] - The company expects strong contributions from new products in 2026, including SPM cleaning and advanced packaging tools [6][10] - ACM's proprietary technologies, such as N2 bubbling wet etch and supercritical CO2 dry tools, are positioned to meet increasing market demands [11][13] Market Position and Strategy - ACM aims to capture approximately 60% of the cleaning market share in China, with current estimates at over 40% [14] - The company is expanding its manufacturing capacity, with a new facility in Oregon expected to support local evaluations and production [21][22] - ACM's strategic focus on R&D and innovation is expected to drive long-term growth, with a target of $4 billion in revenue [25][26] Customer Engagement - The company has secured multiple orders from global customers for advanced packaging tools, indicating strong demand for its technology [5][16] - ACM's entry into the Singapore market with tool installations marks a significant milestone in its global expansion strategy [4][5] - The company is actively engaging with key customers in Taiwan and Korea for advanced packaging solutions, leveraging its unique horizontal plating technology [68][70]

Core Viewpoint - ACM Research's Q4 2025 financial results showed a significant decline, leading to a 17% drop in stock price, which alters the risk/reward dynamics for the company in the semiconductor equipment sector [1]. Financial Performance - The stock price was previously at $39.79 before the earnings report, indicating a notable shift in market perception following the disappointing results [1]. Market Analysis - The company is characterized as a fast-growing supplier in the chip equipment industry, suggesting potential for future growth despite current challenges [1].