Kulicke And Soffa Industries, Inc. · NASDAQ:KLIC
Kulicke And Soffa Industries — Investor Presentation (May 2011)
25 slides from Kulicke And Soffa Industries's investor presentation, May 10, 2011
Slide 1: Kulicke & Soffa
Exhibit 99.1 K Kulicke & Soffa,
Slide 2: Safe Harbor Statement
Safe Harbor Statement In addition to historical statements, this presentation and oral statements made in connection with it may contain statements relating to future events and our future results. These statements are “forward-looking” statements within the meaning of the Private Securities Litigat
Slide 3: About Kulicke & Soffa (K&S)
About Kulicke & Soffa (K&S) Kulicke & Soffa is the Global Technology & Market Leader in Semiconductor Wire Bonding Assembly Equipment = Founded in the U.S. in 1951 and incorporated in 1956 = Publicly traded since 1961 = NASDAQ Global Select: KLIC = Market leader in wire bonding assembly equipment =
Slide 4: Vision, Mission & Core Values
Vision, Mission & Core Values Vision To be the leading provider of comprehensive and innovative technology solutions for the micro-electronics packaging industry Mission Grow our leadership position in wire bonding and expendable tools, and lead the industry in transitioning to copper wire bonding B
Slide 5: Global Presence
Global Presence Switzerland, Berg USA, Fort Washington (PA) Die Bonder R&D Israel, Yokenaem 2 BD 4 Bonding Tools R&D Manual Wire Bonder Manufacturing Equipment R&D lg Op p USA, Irvine (CA) Wedge Bonder R&D China, Suzhou Bonding Tools Manufacturing Blades R&D and Manufacturing Singapore Wire and Die
Slide 6: Market Driven Products
Market Driven Products Ball Bonder a 4 IConn Wedge Bonder as (@) atcmoncs | 7200PIus “lag ono a ‘i 7200HD = = 3600Plus Microelectronics Equipment Capillaries Hub Blades Gh nduro 6 WK issticke & sotta,
Slide 7: Leadership Positions
Leadership Positions Products Market Share Ranki Automatic Ball Bonders #1 Heavy Wire Wedge Bonders #1 Manual Wire Bonders #1 Wafer Level Stud Bump Bonders #1 Capillaries #1 IC Dicing Blades #2 Source : Gartner, VLSI & K&S internal data 7 Krsiicne s sotta
Slide 8: Highest Performance Ball Bonders
Highest Performance Ball Bonders Highest Levels of Speed, Accuracy, Reliability, and Throughput for Reduced Cost-of-Ownership : Extra large bondable area to increase efficiency and net productivity = IConnPSLA has the largest bond area, 56mm x 87mm On-board process optimization tools for ease of use
Slide 9: More than years of research in copper wire properties and bondability
More than 20 years of research in copper wire properties and bondability K&S shipped the first copper wire bonding kit in 2006 Introduced IConnPS ProCu in Nov 2010, the world’s most advanced copper wire bonder = Faster throughput with specialized copper processes, ProCuBond and ProCuSSB = New proces
Slide 10: Leader in Wire Bonders
Leader in Wire Bonders ‘op 5 Companies’ (ALL) Revenue from Shipments of Wire Bonders, Worldwide (Millions of Dollars) 2008 2003, 2008 2009 Percentage 2009 Rank Rank Revenue Revenue Change Share (%| 1 Kulicke & Soffa 139 230 66% 2 ASM international 133 1741 29% 3 ‘Shinkawa 37 56% 4 BE Semiconductor 2
Slide 11: Extending Market Leadership
Extending Market Leadership Automatic Wire Bonders Market Share Trend 70% 60% + 50% 40% 30% + 20% 10% 0% 2008 3Q08 408 1009 2009 3009 4009 1010 2010 3010 4qi0 —® Kulicke & Soffa Ind. Inc. “H-ASM International N.V. Shinkawa Ltd. BE Semiconductor Industries %—Other Source : VLSI Apr 2011 " WZ kuticke
Slide 12: Highest Performance Wedge Bonders
Highest Performance Wedge Bondersg, Automatic Single and Dual Head Wedge Bonders for Power Semiconductors, Automotive and Power Modules Scalable State-of-the-Art Capabilities, Excellent Quality, and Low Cost-of-Ownership Q ORTHODYNE ° ELECTRONICS ‘A Division of WL We Lead in Wedge Bonding = Industry
Slide 13: iStackPs
iStackPs Advanced Stacked Die & High Performance BGA applications * Patents pending Industry leading throughput = P-T-P* processing delivers 30-50% improvement Higher yield capability = New heated bond process reduces voids twice as fast as the conventional process Enhanced stability in bond accurac
Slide 14: Select Customers
Select Customers hynix © BOSCH k One Cinfineon ed d4icron x STATSChipPAC ASE GROUP @ | Ontinenial ° itn Eye) RENESAS IS SaDisk. “7% Ayo i Texas Pos ; INSTRUMENTS = freescale 14 WK isticke & Sotta,
Slide 15: Longer-Term Market Trends
Longer-Term Market Trends VE Kiuticke & Sotta,
Slide 16: 1) Copper Transition
1) Copper Transition K&S Currently Dominates = Historic focus on Fine Pitch Gold applications = Existing platform better suited to handle Copper’s tighter process window = Continual R&D investment to maintain position Over 60% of K&S Ball Bonder shipments, since October 2009, were Copper Capable The
Slide 17: 1) Copper Transition
1) Copper Transition *35% Projected Copper Capability CAGR through 2015 «Potential Demand to average over 10k Incremental Copper bonders/year 200 ; 40% 180 35% E 160 30% g 3 2 © 140 25% ¢ & . E 7 3 120 + 20% 8 i g £ § 100 15% 3 H 3 z 80 + 10% 60 | 5% 40 0% 2011 2012 2013 2014 2015 mmm Copper Bonders
Slide 18: 2) OSAT Growth
2) OSAT Growth 180% Historic Focus on OSAT Market 70% of K&S Ball Bonder’s shipped to 160% OSATs, since 2004 *OSATs forecasted to continue growing at nearly 2X rate of semi space OSAT Revenue, 164% 140% 120% 100% Semi Revenue, 85% 80% 60% WW GDP, 38% 005 dottar: 40% 20% m4 2004 2005 2006 2007 2008 2
Slide 19: Node shrink drives high accuracy
*Node shrink drives high accuracy Gold and Copper Equipment demand im © ub Sonm node forecasted to: *Grow at 24% CAGR, 2010-2015 *Represent 72% of equivalent wafer starts by 2015 2008 2009 Source : VLSI, Apr 2011 19 5 8 8 8 Wafer Starts Per Week ‘Thousands of 300mm Equivlanets 8 8 2004 2005 2006 200
Slide 20: 4) LED Growth
4) LED Growth Factors driving LED adoption include low power consumption, long life span, decreased carbon footprint, fewer hazardous materials, government incentives and legislation requirements Application 2015 CAGR (B Units) 2010-15 Backlighting 100 21.8% LED Potential in the next 10 years Lighti
Slide 21: Financial Highlights
Financial Highlights VE Kiuticke & Sotta,
Slide 22: Key Financials
Key Financials us Revenue ($M) 259 a 207 Operating Margin 2.6% 219% ae i l | I j Dec'09 Mar'10— Jun‘10—Sep'10—Dec'10.—Mar'11 Dec'09 — Mar'10-Jun'10.—Sep'10—Dec'10.— Mart R&D ($M) 165 15.2 147 14.8 j | | | Mar'10 — Jun‘10—Sep'10—Dec'10. Mar'11 22 = Strong financial performance throughout industry cyc
Slide 23: Fiscal Q2 2011 & Outlook
Fiscal Q2 2011 & Outlook Quarterly GAAP Results Change vs. Change vs. Fiscal Q2 2011 Fiscal Q2 2010 Fiscal Q1 2011 Net Revenue $206.7 million 34.4% 38.9% Gross Profit $99.0 million 46.0% 37.2% Gross Margin 47.9% 380 basis points (50) basis points Income from Operations $43.6 million 87.2% 97.8% Oper
Slide 24: Strong Cash Position
Strong Cash Position 280 282 195 15 110 95 FYO5 FYO6 FYO8 FYO9 QLFY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Cash &ShortTermInvestments ™® Total Debt Outstanding debt includes $110m of 0.875% convertible notes due June 2012 2 WK issticke a sotta,
Slide 25: K&S is recognized as the global technology and market leader
K&S is recognized as the global technology and market leader in: = Wire & Wedge Bonding Equipment = Wafer Level Stud Bumping Equipment = Manual Wire Bonders = Capillaries We are leveraging our technology capabilities and expertise to provide solutions into fast growing emerging market segments = Cop
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