Kulicke And Soffa Industries, Inc. · NASDAQ:KLIC
Kulicke And Soffa Industries — Q2 2020 Earnings Presentation
23 slides from Kulicke And Soffa Industries's earnings presentation, Apr 30, 2020
Slide 1: Quarterly Update: A World of Opportunity
NASDAQ: KLIC Quarterly Update A WORLD OF OPPORTUNITY March 2020
Slide 2: Safe Harbor
SAFE HARBOR In addition to historical statements, this presentation contains statements relating to future events and our future results based on management’s expectations as of April 23, 2020. These statements are “forward-looking” statements within the meaning of the Private Securities Litigation
Slide 3: Company & Industry Positioning
COMPANY & INDUSTRY POSITIONING MARKET LANDSCAPE BENCHMARK
Slide 4: Who We Are
WHO WE ARE NASDAQ: KLIC ESTABLISHED & MEANINGFUL FUNDAMENTAL DOMINANT CORE GROWTH STRENGTH & VALUE POSITIONS OPPORTUNITIES DELIVERY • Founding NASDAQ • Mini & Micro LED • Strong Balance Sheet Company • Electric & Autonomous • Share Repurchase • History of Core-Market Vehicles • Regular Dividend Lead
Slide 5: Assembly and adjacent opportunity TAM
$52B $9.4B $1.6B SEMICONDUCTOR SEMICONDUCTOR ELECTRONICS FABRICATION ASSEMBLY & TEST ASSEMBLY (“EA”) Chip design & wafer fab Chip assembly & test Electronic device assembly $3.7B Back-End Assembly Metrology & Lithography Dicing Bonding Packaging EA Inspection Back-End Wafer Inspection Blade Dicing D
Slide 6: A World of Opportunity
A WORLD OF OPPORTUNITY Internet of Things, Artificial Intelligence Autonomous TECH EVOLUTION SUPPORTS CONSISTENT CORE MARKET GROWTH Mobility 4X EQUIPMENT PORTFOLIO GROWTH SINCE 2008 Internet Data Center Personal & Corporate Computing 1981 1998 2008 2018 2022 IC PACKAGES PRODUCED 260B 560B 1T IC ASSE
Slide 7: Socially Responsible
SOCIALLY ✓ Annual Energy Reduction of 2% RESPONSIBLE Local ✓ ✓ Annual Paper OUR COMMITMENT Community Reduction of Engagement 3% Kulicke & Soffa and its employees around the world are committed to sustainability. We are focused on continually improving our social, environmental, and economic impact t
Slide 8: Peer Benchmark
PEER BENCHMARK Comparison to Semi Capital Equipment Peers with $500M-2.5B Market Cap 60.0% 25.00% 3.00% 2.50% 25.0% KLIC 48.0% 20.00% 2.00% 2.00% 20.0% 36.0% 15.00% 1.00% 1.50% 15.0% Average 24.0% 10.00% 0.00% 1.00% 10.0% Peer Range 12.0% 5.00% -1.00% 0.50% 5.0% 0.0% 0.00% -2.00% 0.00% 0.0% Gross Ma
Slide 9: Key Growth Opportunities
KEY GROWTH OPPORTUNITIES 5
Slide 10: Expanding Opportunities
EXPANDING OPPORTUNITIES Through Aggressive Development & Prudent Acquisitions Advanced Packaging Aftermarket $1B Products & Aftermarket Products & $1.9B+ Wire Bond 2014 Served Services >13% CAGR Services 2019 Served Electronics Market Market Assembly Advanced Packaging Wire Bond 10
Slide 11: Broad End-Markets
BROAD END-MARKETS Expanding Markets, Technology Inflections & New Solutions Mar ’20 TTM Sales of $562M Memory 6% • 72% Capital Equipment LED 13% • End-market demand below long-term run rates General Capital Equipment Advanced • Gradual market improvements since Mar ‘19 Semiconductor Revenue TTM by P
Slide 12: Capacity Expansion
CAPACITY EXPANSION Acceleration of Semi-Unit Production Expands Core Business Core Market Trends Expected to Drive Demand • IoT & low-cost connected devices • High bandwidth connectivity - global 4G and 5G rollouts G • Solid-state memory shift from traditional HDD • Cloud and data center services Se
Slide 13: New Capabilities – Automotive
NEW CAPABILITIES – AUTOMOTIVE Growth in Semiconductor Content per Vehicle AVERAGE SEMI K&S AUTO INDUSTRY SALES AS % OF SALES AS A % TOTAL OF TOTAL* K&S IS WELL POSITIONED TO BENEFIT • Multiple products supporting multiple needs: 18% 2X EXPOSURE TO • Critical control & safety systems AUTO GROWTH • In
Slide 14: New Capabilities – Advanced Packaging
NEW CAPABILITIES – ADV. PACKAGING Several New Systems in Early Production and/or New Customer Qualifications Scaling has historically enabled the This technological inflection: industry’s progress on: • Performance & capability • Is demanding new assembly equipment to • Form-factor reductions delive
Slide 15: New Capabilities – Mini & Micro LED
NEW CAPABILITIES – MINI & MICRO LED Disruptive Ultra-High-Speed Placement Capabilities MICRO & MINI LED WAFER PRODUCTION POSITIONED TO BENEFIT EXPECTED TO GROW BY 300% THROUGH FY’24 • Televisions & Monitors – Backlighting & Direct View • Engaged end-customers • Informational Displays & Lighting in A
Slide 16: Comprehensive Solutions
COMPREHENSIVE SOLUTIONS POSITION SOLUTIONS GENERAL AUTOMOTIVE ADVANCED SEMI & LED & INDUSTRIAL PACKAGING • DOMINANT POSITIONS • DIVERSIFIED END MARKETS Aftermarket Products and Services (APS) • HIGH-PERFORMANCE • LEADING CUSTOMERS Ball Bonding Wedge Bonding MARKET DRIVERS • GENERAL SEMI & LED Electr
Slide 17: Financial Targets
FINANCIAL TARGETS
Slide 18: March Quarter
MARCH QUARTER JUNE QUARTER REVENUE GUIDANCE: $140-$160M Quarterly Results - U.S. GAAP Non-GAAP Results & Target Fiscal Q2 2020 Change vs. Fiscal Q2 2019 Change vs. Fiscal Q1 2020 Net Revenue $150.7 million up 30.1% up 4.4% Gross Profit $69.3 million up 24.6% down 1.6% Gross Margin 46.0% down 190 bps
Slide 19: Continued Through-Cycle Performance
CONTINUED THROUGH-CYCLE PERFORMANCE Revenue ($M) Operating Margin 269 244 24.0% 216 216 214 222 200 185 19.1% 17.8% 18.1% 17.7% 16.3% 17.1% 156 150 157 151 146 140 144 127 13.3% 109 116 11.5% 9.3% 9.3% 7.5% 7.3% 5.5% 2.7% 1.4% Dec '15 Mar '16 Jun '16 Sep '16 Dec '16 Mar '17 Jun '17 Sep '17 Dec '17 M
Slide 20: Strong Cash Flow & Balance Sheet
STRONG CASH FLOW & BALANCE SHEET Net Cash Position & TTM Free-Cash-Flow Generation (Values in Millions of USD) 700 420 600 360 TTM Free Cash Flow - $USD 500 300 Net Cash - $USD 400 240 (line) 650 (bar) 300 597 609 629 621 614 633 617 180 548 573 540 525 499 532 525 200 440 120 275 100 60 71 0 0 K&S
Slide 21: Delivering Value: Shareholder Returns
DELIVERING VALUE Direct Shareholder Returns Enhance Growth Prospects $45 Valuation Enhancement Through Organic Growth Execution is Priority $40 • Market expansion & share gains are expected $8 Dividends • Growth execution provides operating leverage $35 Shareholder Returns in Millions • Current busi
Slide 22: Summary
SUMMARY Organizational Dominant Significant Growth Track Record of Alignment Has Core-Market Growth Drivers Execution to Value Delivery Accelerated Positions Supporting Enhance Progress High-Potential Operational Markets Leverage 22
Slide 23: Q&A
FOR FURTHER Q&A QUESTIONS & DISCUSSION: INVESTOR@KNS.COM
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