Kulicke And Soffa Industries, Inc. · NASDAQ:KLIC
Kulicke And Soffa Industries — 11th Annual Needham Growth Stock Conference 2009
19 slides from Kulicke And Soffa Industries's conference presentation, Jan 8, 2009
Slide 1: Needham Growth Stock Conference
Visit us at www.kns.com KULICKE & SOFFA 11th Annual Needham Growth Stock Conference January 8, 2009 January 8, 2009 Needham Growth Stock Conference Kulicke & Soffa®
Slide 2: Safe Harbor Statement
Safe Harbor Statement In additional to historical statements, this presentation contains forward-looking statements, including forecasts of future market size, market share and future Company performance, and often contain words such as “forecast”, “projection”, “expect”, “intend”, “believe”, “seek”
Slide 3: Profile
Profile K&S is a Leader in Semiconductor Assembly Equipment & Materials We Provide Cutting Edge Technology & Process Solutions in: Ball Bonding Die Bonding Wedge Bonding We Enable Customers To Assemble Next Generation Devices At Increased Levels of Productivity & Reliability
Slide 4: Strategy - Focus on Key Bonding Processes
Strategy - Focus on Key Bonding Processes Leverage Historic Technology Leadership in Ball Bonding Penetrate Die Bonding FY2007 Alphasem Acquisition (November 2006) FY2009 Launch of ‘Discovery’ Die Bonder Establish Leadership in Wedge Bonding FY2008 Orthodyne Acquisition (October 2008) January 8, 200
Slide 5: Positioned With Leading Products In Critical Back-end Processes
Positioned With Leading Products In Critical Back-end Processes 1 2,3 4,5,6 Wafer Wafer Mount Dicing Die Bonding Wire Bonding Molding Strip Singulation Solder Ball Attach Or Lead Form Marking Test & Visual QC Pack & Ship K&S Products 1 Dicing Blades 4 Ball Bonder Equipment 2 Die Bonder Equipment 5 W
Slide 6: K&S TAM Growth
K&S TAM Growth*,† (Continuing Operations) Acquire Alphasem Die Bonders Acquire Orthodyne Wedge Bonders Sales in $M 2500.0 2000.0 1500.0 1000.0 500.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Calendar Year Tools Aut. Ball Bonders Die Bonding Equ. Aut. Wedge Bonders *Sources: IC Ball Bonder TAM
Slide 7: Equipment Technology Leadership
Equipment Technology Leadership NEW! State of the Art Ball Bonders High Performance Bonder PS IConn Advanced Packaging Technology Highest Throughput Stacked Die Low-k Bonding Cost Performance Bonder PS Connx LEDs, Discretes, Low Pin-Count Packaging Specialized Handling Technology Power Series
Slide 8: Discovery - Next Generation Die Bonder
Discovery - Next Generation Die Bonder Leading edge accuracy and stability Intermediate staging station with additional camera Dynamic calibration ensures stability over time Optimization of processing time for higher throughputs Modularity and flexibility Distributed architecture Indexer design HBT
Slide 9: Discovery - Next Generation Die Bonder
Discovery - Next Generation Die Bonder Launch in April 2009 Show at SEMICON Korea (January 20th- 22nd) First 3 Qualifications Identified December 8, 2008 KLIC Investor Day 9 Kulicke & Soffa®
Slide 10: Orthodyne Acquisition
Orthodyne Acquisition ORTHODYNE® ELECTRONICS A Division of Core Markets Power Semiconductors & Power Hybrid Microelectronics Applications Power management, conversion, switching and control, directly related to energy management to a broad market base Automotive Electronics, Industrial Motor Drives,
Slide 11: Orthodyne Acquisition
Orthodyne Acquisition ORTHODYNE® ELECTRONICS A Division of Appealing Market Drivers Energy costs/gov’t mandates driving expanded use of power management & power conversion electronics Strong growth in existing markets with core products. New wire-bonder product lines and OE PowerRibbon® Technology c
Slide 12: Energy Conservation Driving Power Electronic Solutions
Energy Conservation Driving Power Electronic Solutions ORTHODYNE® ELECTRONICS A Division of Markets Renewable Energy Lighting Power Modules Power Supplies Industrial Motor Drives Consumer/ White Goods Key Drivers Energy costs/Gov’t mandates combined with demand for energy efficiency Wind Turbines an
Slide 13: K&S Before & After
K&S Before & After K&S with Wire K&S less Wire plus OE ** ($ millions) 9 Mos End FY 9 Mos End FY 6/28/08 9/29/07 6/28/08 9/29/07 Revenue * 582.7 700.4 343.6 480.9 Gross Profit 131.2 181.2 152.6 220.9 Gross Margin 22.5% 25.9% 44.4% 45.9% Operating Exp. 112.0 139.1 139.8 173.1 Operating Inc. 19.0 42.1
Slide 14: Strategy - Delever
Strategy - Delever Divested Wire Business (October 2008) Reduced working capital requirements Funded Orthodyne Acquisition Tender Offer For 1% Notes Due in 2010 Repurchase Offer @ $720/$1,000 Principal Amount Tendered Principal Outstanding $62 million Repurchase Cash $45 million (exclusive of fees)
Slide 15: Liquidity Analysis
Liquidity Analysis $ in Millions 2008 Ending Cash Balance 184 Net cash from transactions 70 .5% Notes (paid in November) (72) 2009 Cash from operations (64) 2009 CapX (5) 2009 Misc 1 Time Cash payments (20) 2009 Working Capital Change 42 2009 End of Year Cash 135 Table includes management’s estimate
Slide 16: Reconciliations
RECONCILIATIONS A) Reconcilation of Orthodyne income before income taxes ($ millions) 6 Mos End Fiscal Year End 6/30/08 12/31/07 12/31/06 12/31/05 As Reported $ 5.8 $ 26.0 $ 14.2 $ 3.2 ESOP Compensation - - 3.7 2.2 Interest and dividend income (0.6) (1.7) (1.4) (0.9) Rental Income (0.0) (0.2) (0.3)
Slide 17: Reconciliation of Income Statements
B) Reconcilation of Income Statements K&S with Wire K&S less Wire plus OE K&S without Wire ($ millions) 9 Mos End FY 9 Mos End FY 9 Mos End FY FY 6/28/08 9/29/07 6/28/08 9/29/07 6/28/08 9/29/07 9/30/06 Revenue as Reported $ 582.7 $ 700.4 $ 343.6 $ 480.9 $ 266.8 $ 370.5 $ 380.3 Gross Profit as Report
Slide 18: Final thoughts
Final thoughts Strong Products & Brand Recognition High Market Share Market Acceptance of Newly Introduced Equipment Positioned in New Growth Areas Strong Balance Sheet & Good Liquidity K&S is Positioned Technologically & Financially for Industry Recovery January 8, 2009 Needham Growth Stock Confere
Slide 19: Copyright
Company Copyright This PowerPoint presentation and all of its contents are protected under International and United States Copyright laws. Any reproduction or use of all or any part of this presentation without the express written consent of K&S is prohibited.
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