Dr. Subodh Kulkarni, CEO Jeff Bertelsen, CFO/COO Nasdaq: CYBE January 2015 Forward-Looking Statements Statements regarding the Company’s anticipated performance are forward-looking and therefore involve risks and uncertainties, including but not limited to: market conditions in the global PCB Assembly and semiconductor capital equipment industries; increasing price competition and price pressure on our product sales, particularly our SMT systems; the level of orders from our OEM customers; the availability of parts required for meeting customer orders; the effect of world events on our sales, the majority of which are from foreign customers; product introductions and pricing by our competitors; the level of revenue and loss we record in 2014; the success of our 3D technology initiatives; expectations regarding LDI and its impact on our operations; integration risks associated with LDI and other factors set forth in the Company’s filings with the Securities and Exchange Commission. 2 Agenda • Key Messages/Vision/Strategy • CyberOptics Overview • Core Technology/Markets • Financials/Summary 3 CyberOptics Vision and Strategy Vision To be the global technology leader in high precision 3D sensors Advanced Multi-reflection Suppression (MRS) 3D Optical Sensor Strategy Deliver profitable growth by developing and manufacturing high precision proprietary 3D sensors and leveraging them in key vertical markets 4 CyberOptics Investment Opportunity Summary  CyberOptics is poised for significant profitable growth  Delivered 4 straight quarters of strong year over year organic growth with improved profitability  Multi-reflection suppression (MRS) disruptive proprietary optical sensor technology is getting commercialized now, and will establish CyberOptics as the leader of high precision 3D optical sensors driving future growth  Applications include Surface Mount Technology (SMT) inspection, Semiconductor inspection, Metrology, etc.  Acquistion of LDI/GKS completed in Mar ’14 provides a foundation for CyberOptics to grow in Metrology  Strong balance sheet to support growth opportunities 5 Agenda • Key Messages/Vision/Strategy • CyberOptics Overview • Core Technology/Markets • Financials/Summary 6 CyberOptics Overview 2013 Revenue by Product Line • Founded in 1984 (Nasdaq – CYBE) Semiconductor Sensors 21% • Key verticals in SMT, Semiconductor and Metrology (with recent LDI acquisition) • 169 employees worldwide in Minneapolis, Singapore, China, UK SMT Inspection Systems 46% SMT Sensors 33% • CYBE key financial metrics – Revenue: 2014 9Mos. $34.8M – Four consecutive quarters of strong organic year/year growth – Concrete steps taken to address losses – Strong balance sheet – $17.9M in cash and no debt 2013 Sales: $33.3M 2013 Revenue by Region Americas 25% Europe 26% 7 Other 1% Asia 48% CyberOptics Overview Global Locations / Global Support CyberOptics Corporation Corporate Headquarters, Global R&D, Sensor Manufacturing Minneapolis, MN Americas Sales & Support Minneapolis, MN LDI/GKS General Metrology Markets Minneapolis, MN EU Sales & Support Skipton, UK Systems R&D, Manufacturing, Sales & Support Singapore Demo & Service Center Japan Worldwide Network of Channel Partners 45 Locations in 25 Countries 8 China Sales & Support Kunshan China Broad Product Portfolio SMT Sensor Examples SMT Inspection System Examples Semi Sensor Examples 3D Metrology Examples 9 World Class Customer Base SMT Sensors SMT Inspection Systems Semi Sensors 3D Metrology 10 Agenda • Key Messages/Vision/Strategy • CyberOptics Overview • Core Technology/Markets • Financials/Summary 11 3D High Precision Sensors Forming Core Technology of New CyberOptics SMT • Solder Paste Inspection (SPI) • Advanced 3D Sensor with MRS Metrology • General Purpose Metrology • 3D Scanning Services • LDI Acquisition Closed March 14, 2014 3D High Precision Strategy Sensors Automated Optical Inspection (AOI) Semiconductor • • 12 WaferSense and ReticleSense Wireless MEMS Sensors 3D High Precision Sensors • SMT Metrology 3D High Precision Strateg Sensors Current y • Semiconductor Current business: Customized sensors enable SMT OEMs (Juki, Assembléon, DEK/ASMPT, etc.) to improve component placement speed and accuracy during PCB manufacturing – ~$15M (last 4 reported quarters) – Trajectory: Growing rapidly New proprietary MRS sensors being launched now enable significantly higher speed and accuracy in full color 3D precision optical sensing – Microscopic quality images with industrial production speed – Large market opportunity with SMT, Semiconductor, Metrology, etc., OEMs Future The Next Hot Thing: “Sensors” – WSJ, Sep ’14 Trillion Sensors by ‘18 – EE Times, Oct ’13 Internet of Things Enabler: “Sensors” – Consumer Tech, Dec ‘14 13 MRS Sensor: Breakthrough 3D Sensor for Unmatched Speed and Accuracy Architecturally Superior Multi-View 3D Sensor Multiple Reflection Suppression 3D Image Fusing Algorithms Enables Speed Advantage with Parallel Acquisition Eliminates Measurement Inaccuracies Merges 3D Images for High Precision Images and Superior Accuracy 14 MRS Sensor Application Examples SMT 3D Inspection • • Semiconductor Back-end Inspection 3D Scanning Speed of 40 cm2/sec with migration path for improvement Accuracy of <10 mm in xy, and <1 mm in z dimension, with migration path for improvement 15 SMT Inspection Systems • – SMT Metrology 3D High Precision Strate Sensors Current business (SPI/2D AOI) of ~$18M; Trajectory: Growing modestly • Semiconductor Small market share in global $540M fragmented SPI/AOI market growing at 3-5%, with growth primarily coming from 3D AOI Strategy is to grow business with unique technology enabled differentiation – Launching 3D AOI (SQ 3000) now with higher speed and better accuracy, enabling market share growth with full portfolio – Delivered first customized Memory Module Inspection System (MX600) in Q3 ‘14 gy • – SQ3000 - 3D AOI Targeting $3+M in ‘15; Global market potential of ~$50+M growing at ~25% Cyber Sensor Kit for SMT Customers for 2D AOI Applications, Final Inspections, etc. MX600 – Memory Module Inspection 16 Sensor Kit Semiconductor Sensors • SMT Metrology 3D High Precision Strat Sensors egy Semiconductor • Current business: Proprietary WaferSense/ReticleSense portfolio of products is available to improve yield and productivity for semiconductor customers – Gapping, Teaching, Leveling, Vibration and Particle Monitoring applications – No real competition – Current business:~$7M; Trajectory: Growing modestly Growth strategy – Increasing awareness – Refreshing portfolio with better performance sensors and new applications – Penetrating Flat Panel Display and LED customers 17 Metrology Systems and Scanning Services • SMT Metrology 3D High Precision Strat Sensors egy LDI acquisition completed in Mar ‘14 enabled 3D scanner and scanning services business of ~$6M growing modestly – Semiconductor • Acquired for $3.1M cash Launching significantly faster and more accurate 3D scanner (CyberGage 360) in Q1 ‘15 leveraging MRS sensor technology – 3D scanners & metrology services is a large ~1+B market growing at about 5-10% – Market potential for CyberGage 360 seems high with many applications: First article inspection, Incoming goods Quality Assurance, 3D Printing Quality Assurance, etc. 18 Agenda • Key Messages/Vision/Strategy • CyberOptics Overview • Core Technology/Markets • Financials/Summary 19 CYBE Financial Overview (4 Consecutive Quarters of Strong Yr./Yr. Growth) Double Digit Organic Revenue Growth and a Significantly Reduced Loss Anticipated in 2014 Revenue Operating loss $0.0 $15 Revenue Operating loss -$0.5 $40 $34.8 $11.7 -$1.0 -$1.5 $30 $24.8 ($1.5) $10 -$2.0 ($0.5) -$3.0 -$0.7 -$0.9 $5 -$3.5 $10 -$0.3 -$0.5 $8.7 -$2.5 $20 -$0.1 ($1.0) -$1.1 -$4.0 -$1.3 -$4.5 ($4.2) $0 -$5.0 9 Mo. 2013 $0 9 Mo. 2014 -$1.5 3Q 13 3Q 14 $ in millions LDI: Contributed revenue of $1.3M in Q3 14 and $3.5M since acquisition on March 14, 2014 20 CYBE Financials Outlook • Double digit organic sales growth anticipated in 2014 – Higher sales expected to significantly reduce year/year loss • Very optimistic about 2015 given our new product offerings – New technologies/products (MRS, 3D AOI, Memory Inspection, 3D Scanner, etc.) will enable future growth – Confident of achieving longer-term goal of sustained profitable growth – Will provide 2015 guidance in mid-late Feb ‘15 • Strong balance sheet with significant cash resources ($17.9M) and no debt 21 CyberOptics Investment Opportunity Summary  CyberOptics is poised for significant profitable growth  Delivered 4 straight quarters of strong year over year organic growth with improved profitability  Multi-reflection suppression (MRS) disruptive proprietary optical sensor technology is getting commercialized now, and will establish CyberOptics as the leader of high precision 3D optical sensors driving future growth  Applications include Surface Mount Technology (SMT) inspection, Semiconductor inspection, Metrology, etc.  Acquistion of LDI/GKS completed in Mar ’14 provides a foundation for CyberOptics to grow in Metrology  Strong balance sheet to support growth opportunities 22 Thank you! Nasdaq: CYBE