Kulicke And Soffa Industries, Inc. · NASDAQ:KLIC
Kulicke And Soffa Industries — Investor Day (December 2008)
65 slides from Kulicke And Soffa Industries's investor day presentation, Dec 9, 2008
Slide 1: Corporate Overview
Exhibit 99.1 Visit us at:Overview KULICKE www.kns.com Corporate December Confidential2008 &Name SOFFAKulicke & Soffa®
Slide 2: Safe Harbor Statement
Safe Harbor “seek”, Company’s This investors presented December KLIC presentation Investor orin in “will.” 8,most gaging Statement this 2008 Day document, recent contains may These the 2 Kulicke also quality SEC statements forward-looking contain see filings &ofthe Soffa® our non-GAAP accompanying a
Slide 3: A Leader in Semiconductor Assembly Equipment and Materials
Visit Kulicke www.kns.com A Provides Ball Die Wedge Enables Confidential Leader Bonding Bonding usBonding at: &Cutting customers inSoffa: Semiconductor Name Edge to Kulicke assemble Technology Assembly & Soffa® next&generation Process Equipment Solutions devices & Materials atin:increased production
Slide 4: Ball Bonding
Ballµm Ultra By Pad Wire Excellent Lower Stacked Typically 70µm The Copper 60 December comparison, pitch wire Bonding diameter Fine to (0.0024") cost Wire Die 80µm loop less to 2, electrical Pitch 8,3, 45 Bonding 2008 Bonding Bonds Examples than from down or pad µm human Bonding Pad 4KLIC 50 dice (0
Slide 5: Assembly Back-End Wafer Processes
Assembly Back-End Wafer 4,5,6 Die Dicing Wire Strip Molding Solder Test Marking Pack K&S 1 2 3 4 5 6 December ,3 Wedge Dicing Die Ball Bonding Bonding &&Singulation Bonding Products Bonder Pick-up Bonder Mount Ball Visual Ship Blades Bonder Processes & 8, Tools Attach Package 2008 Equipment QC Tools
Slide 6: VLSI IC Unit Shipment Forecast
update VLSI IC YoY 300 116.3 10.6% 35% 2005 Caledar December Units Insights 250 Change 30% 2006 116.3 Research 18.1% 11/2008 Year 200 Shipments 25% 8, 2007 137.4 150 2008 (Consolidate) 10.3% 20% 2008F 100 137.4 KLIC Forecast 15% 6.5% 502009F 151.3 0Investor 10% 2.3% 2010F 151.8 5% 13.8% Day 0%162.0
Slide 7: Growth Strategies and Recent History
GrowthNew Focus Divestiture Acquired Discovery Technology IConn Solidified Enabling Process Copper December Kulicke&Upgrade Strategies Expertise &ConnX Copper Orthodyne Technology 8, Die Soffa® of Equipment Leadership 2008 Wire Bonder Kits Launched Bonding –KLIC Business Recent October Leadership La
Slide 8: Bonder TAM Forecast
K&SBonding Sales 0.0 500.0 1000.0 1500.0 2000.0 2500.0 Acquire Calendar 2013 2012 2011 2010 2009 2008 2007 2006 2005 Die Aut. *Sources: Tools Kulicke Wedge Ball TAM in TAM: $M Alphasem & Orthodyne Year Bonders IC Soffa® Growth* Bonders K&S Equ. Ball Bonder Internal Die Wedge (Continuing Bonders TAM,
Slide 9: Ball Bonder Product Line
K&SPerformance NEW! High Iconn Advanced Highest Stacked Low-k Cost Connx PS LEDs, Specialized Power December Kulicke Performance Technology Series Discretes, Power Bonding Throughput Die & Packaging 8, Soffa® handling 2008 Series Low Leadership Bonder Bonder KLIC Product technology Technology Pin-Co
Slide 10: Iconn PS Series
The Power Accuracy Iconn PS (with December Kulicke opt.&+/- kit) 8, Soffa® Series 2008 2.0 um includes KLIC 35umInvestor pitch Programmable Day 10 Focus High Mag Option On-bonder process optimization tools Power Series Advanced Loop Power Series Low Loop Copper Bonding Capability
Slide 11: Connx PS Series
The Power Accuracy Connx PS Look Copper Capability December Kulicke Ahead Bonding &+/- 8, (with Soffa® Series Algorithms 2008 3.0opt. um includes KLIC kit)for Investor matrixDay devices 11
Slide 12: Next-Generation PS Bonders: Customer Responses
Next-Generation PS Enthusiastic Higher Customers December Kulicke Iconn Connx ASPs & 8, Soffa® Qualifying Responses 2008 and Wire Margins KLICthese Bonders atInvestor Semicon New Bonders Day China 12 & forSemicon Production Taiwan
Slide 13: Industry Leading Production Capability
Industry & December Kulicke Leading 8, Soffa® 2008Production KLIC Investor Capability Day 13
Slide 14: Pad Pitch and Productivity Leadership
K&S New Pad 80 1488 Power ULTRA PLUS MAXµm PPS 8028 8020 Speed Pitch 8028S 110 % 35 Year December 2008 2006 2004 2002 2000 1998 1996 2009 Kulicke Productivity 70 30 100 Pitch of Product plus Technology 60 Series Introduction & 90 50 (microns) 8, Soffa® 80 40 2008 and 70 30 Increase Performance 60 &2
Slide 15: Ball Bonder Market Share
Ball 32% 37% ASM K&S 4% Other 8% ESEC SHINKAWA CY = *Source: December Kulicke $588 $656 2006 2007 Bonder Ball 47% PTMillion &VLSI 19% 17% Total Bonder 8, Soffa® Market* 2008 24% Available Research Growth KLIC TAM Market –Investor (06-07) May Growth 2008 Day =(02-07) 41% 15 K&S = 15% SOM Growth (06-0
Slide 16: Ball Bonder Growth Strategies
Ball Bonder Expand Advanced LED Specific December Kulicke & Low in &Growth Packaging Specific 8, Soffa® Growth Pin 2008Market Count KLIC Sub-Markets Strategies Requirements Markets Segments Investorwith Day (Copper) Targeted 16 Capabilities
Slide 17: Die Bonding Expansion
Visit us Discovery Technology www.kns.com Acquired Launch Confidential atAlphasem Expansion Name2009 2006 into – Next Die Generation Bonding Die Bonder
Slide 18: New Die Bonder Platform
Visit us New www.kns.com Confidential Kulicke Dieat &Bonder Soffa® Name Platform
Slide 19: Die Bonder Value Proposition
Value Proposition Leading Intermediate Dynamic Optimization Modularity Distributed Indexer December Kulicke design &edge calibration 8, Soffa® and architecture staging 2008 of accuracy flexibility processing KLIC station ensures andInvestor time stability with stability for additional Day higher ove
Slide 20: Leading Edge Accuracy
Leading Intermediate Pick, Position 25 0 X Place Transfer Diet Substrate Pick Die December Kulicke 25 Y15 Transfer #Placer Picker Ejector 50 process Camera transfer Accuracy position Camera 5 75 -5 &edge [µm] Camera Indexer -15 8, Soffa® 100 inaccuracies transfer 2008 (static) and accuracy (moving)
Slide 21: Increased Heating and Voiding Results
Increased Heating HBT % 30.0 40.0 50.0 0.0 10.0 Bonding 4 10% December Kulicke holes of200.0 20.0 Voids voids 130 rubber from &time C 400.0 UPH 8, Soffa® reached vs2008 top the ms tool Standard –600.0 top Reduced and KLIC 4inholes reduces bottom 225 800.0 process Investor ms COO HBT 1000.0 % improve
Slide 22: Launch Schedule
Launch Show First December Kulicke 3atQualifications in & Semicon April 8, Soffa® 2008 2009 Korea KLIC Identified (January Investor 20th- Day 2222nd) Schedule
Slide 23: Die Bonders: Maintain Support
Die Bonders: Maintain Support December Kulicke & K&S Existing 8, Soffa® 2008 Product Mindshare Die KLIC-Bonder Easyline Investor Among Products Customers Day 23Through EOL
Slide 24: Wedge Bonding Technologies
Visit usBonding Wedge www.kns.com Confidential Kulicke at & Soffa® Name Technologies
Slide 25: Orthodyne Introduction
ORTHODYNE Introduction ELECTRONICS A We Power Alternate Transportation: Consumer Heating Industrial: December Lighting Kulicke Thumbnail Division manufacturer Semiconductors Hybrid Electronic / Cooling & Energy White 8, Soffa® of2008 and ®Goods: Sources: Interconnection devices Electronic KLIC Inves
Slide 26: Orthodyne Key Highlights
Key Introduction ORTHODYNE ELECTRONICS Appealing Higher Strong Growing Power Projections High Core Yields Allows OE A Experienced Excellent Recently semiconductor Market Opportunities ** December Kulicke Division history Pre machine Highlights equipment Degree interconnect Semiconductors higher 2008
Slide 27: Markets and Applications Overview
Markets Market ORTHODYNE A ELECTRONICS Core Applications Automotive Electronic Military, Emerging Hybrid Wind Solar Power Aluminum Remains December Kulicke Division Markets PV power Semiconductors management, LED’s vehicles, Overview &and Medical, the power Growth 8, ballasts Soffa® Wire ofElectroni
Slide 28: Energy Efficient Solutions Market Drivers
Market Enabling ORTHODYNE A ELECTRONICS Orthodyne’s OE Assemble For WW December Kulicke Division Bonding Energy energy and &Energy Power 8, Soffa® of Efficient Market demand products Equipment 2008 ®Efficient Semiconductors KLIC Drivers is Solutions create expected Investor Solutions the internal to
Slide 29: Key Market Drivers
ORTHODYNE A ELECTRONICS Higher Renewable Markets Lighting Industrial Consumer/ Key Increasing Wind Elimination Replacement Drive IGBT Increased Driven December Kulicke Division Drivers Turbines for based Energy by & and Power more investment usage Motor rising 8, fuel/energy Soffa® of White Energy o
Slide 30: Inverter Energy Savings
Market ORTHODYNE A Inverter Improved Power Energy 60% 80% 100% kwh AC Non-Inverter DC Source: December Kulicke Division Inverter Semiconductors Consumption Savings Overview EPRI, based &power 8, Soffa® of2008 ACEEE, variable ® 40% management, ELECTRONICS KLIC Comparison speed Enable LBNL Investor mo
Slide 31: Automotive Power Electronics Demand
Market ORTHODYNE A Demand Major Starter Integrated High-Intensity Lamp Running Audio (Power Body Anti-Lock Systems Engine Injection, Door Security Cabin Transmission Mission Source: Only US Strict Power December Kulicke Division CAFÉ 15% Locks, 2012 Control Control (HID), Environment Applications Am
Slide 32: Semiconductor and Hybrid Market Growth
aket ORTHODYNE A Semiconductor Hybrid Historical 2007 2006 2005 2004 2003 Consumables/Spares 03-07 Previously… Source: Discretes December Kulicke Division Growth CAGR: Systems IC IMS &7% Distribution 8, Soffa® Insights, of–Research, 2008 Power SEMI 2003 Systems ® ELECTRONICS KLIC to 2007 Modules 32%
Slide 33: Regional Semi and Hybrid Shipments
Regional ORTHODYNE A Europe Asia North Japan/Korea China December Kulicke Division Southeast America 48% 6% &Hybrid 8, Soffa® of21% 2008 3% 22% ®&ELECTRONICS KLIC Semi Investor shipmentsDay – Sept 33 2008 QTR
Slide 34: Regional Semi Shipments
Regional ORTHODYNE A North Japan/Korea China Asia December Kulicke Division Southeast America 65% &Semi 8, Soffa® of7% 2008 Shipments- 1% 27% ® ELECTRONICS KLIC Investor Sept 2008 DayQTR 34
Slide 35: Regional Hybrid Shipments
Regional ORTHODYNE A Asia Europe Japan/Korea China North December KLIC Kulicke Division Southeast America Investor 8% 23% &Hybrid 8, Soffa® of58% 2008 Day 10% 1% ®Shipments- ELECTRONICS 35 Sept 2008 QTR
Slide 36: Sales by Product Breakout
Sales ORTHODYNE A Hybrid 56% 22% Consumables Semiconductor & 2008 December Kulicke Division Spares FY Revenue Equipment &Product 8, Soffa® of2008 2008 Equipment ®Breakout ELECTRONICS KLIC Investor Day 36
Slide 37: Key Customers
Key ORTHODYNE A Top GTM Rohm GTBF Conti Toyota Hybrid Fairchild Semi SilverMicro Valeo Denso Nantong GEM Renesas ASE December Kulicke Division 10 Customers Temic Corporation Electronics & Semiconductor Fujitsu Semiconductor 8, Soffa® of2008 ® 2008 ELECTRONICS KLIC Investor Day 37
Slide 38: Orthodyne Competition
ORTHODYNE Competition A ELECTRONICS Other Cho-onpa H&K F&K OE *Based “Other” December Division 52%10% 18% 10% on being 10% 8, Orthodyne of2008 manual ® KLICFY2007 / semi-automatic Investor Sales Day&38 Market machine Kulicke Estimates makers & Soffa® or smaller regional players
Slide 39: Product Overview
Product Multi-head 7200Plus Semiconductor 3600PLus Hybrid 3700Plus PowerRibbon™ PowerRibbon® ORTHODYNE For ELECTRONICS worldwide. Model Manual Consumables/Spares/ Single 7600 Large Small December Ribbon more Wire Head 20 wire wedge Wedge Overview than 8,Power Orthodyne wedge Power 2008 40 wire wire
Slide 40: Key Technologies and Products
Key ORTHODYNE A ELECTRONICS Typical December Division Technologies Semiconductor 8,of2008 ®& KLIC Products Applications Investor Day 40 Kulicke & Soffa®
Slide 41: 7200 Plus Large Wire, Small Wire and Ribbon Bonding
Key A 7200 ORTHODYNE December ELECTRONICS Division Technologies Plus with 8,of2008 Large ®& KLIC Products Wire, Investor Small Day Wire41 and Kulicke Ribbon&Bonding Soffa®
Slide 42: Market Overview Examples
Market ORTHODYNE A ELECTRONICS Alternate Hybrid Industrial Automotive Medical Aerospace Consumer December Division Packaging vehicle Overview –Energy –Pacemakers White 8, –of Motor –Flight 2008 Engine transportation ®Goods Generation, Examples control KLIC / Guidance control –Investor Power modules
Slide 43: Hybrid Package Characteristics
Key ORTHODYNE A ELECTRONICS Characteristics Complex Multiple Leads Ni Al Thick Al: Wire Alumina, Substrate Die Eutectic, Silicone Encapsulant December Division 1Plated 75 /Metallization Technologies to Substrate film /to 5% Pins Gel surfaces Materials Pb/Sn, 500 Shapes AlN, Metallization over 8, Pt/
Slide 44: 3600 Plus Power Conversion Modules
Key ORTHODYNE A ELECTRONICS 3600 Solar December Division Technologies Plus WindBonding 8,of power 2008 ®& conversion KLIC Power Products Investor Conversion modules, Day /44 Hybrid Inverter Kulicke Vehicles Modules & Soffa® Modules, Motor AC/DC Controllers, Inverter Modules, Smart Pump Modules
Slide 45: 3700 Plus Small Wire Bonder
Key ORTHODYNE A ELECTRONICS 3700 December Division Technologies Plus Small 8,of2008 ®Wire & KLIC Products Bonder Investor Day 45 Kulicke & Soffa®
Slide 46: Power Ribbon Advantages
Key ORTHODYNE A ELECTRONICS Power More Increased Lower 10 Replaced December Division Large Technologies Power Ribbon Cost Wire with Productivity Die Connection 8,of–2008 Performance Advantages Fewer Wedge 4®Large & KLIC Products Connections Robustness Reliability Bonds Ribbon Investor - Hybrid Bonds
Slide 47: 3600 Plus Ribbon Bonder
Key ORTHODYNE A ELECTRONICS 3600 Power December Division Technologies Plus Interconnects Ribbon 8,of2008 ® Bonder & KLIC for Products Power Investor Hybrids, Day 47Power Kulicke Semiconductors, & Soffa® Solar Panels, etc.
Slide 48: Growth Driven by New Applications
Growth ORTHODYNE A ELECTRONICS 100 Large 2007 New * December Includes Division 90 Applications 2008 Small 80 (small, 70 8, new ofRibbon 2008 60K&S ribbon, ®50Driving KLIC 40Q130 large Investor 20 Growth (as 10 0%) Day in Small 48 Kulicke Wire and & Soffa® Ribbon
Slide 49: 7600 Product Launch
7600 ORTHODYNE A ELECTRONICS Product First Application: General Target High Leadframe Magazine–to–Magazine 2009 December Division ‘Beta’ Product Density, sales Applications: launch Sales 8, potentials: Handling of site SRPF 2008 Launch Order small at with ® Semicon KLIC (Diode) power Availability Re
Slide 50: Consumable Sales Overview
Consumable ORTHODYNE A ELECTRONICS Wedge Cuts Bond Ultrasonically Wire Guides December Division the Cutter Guide Tool Bonding and wire 8,of places Sales 2008 atbonds ® aequipment precise the KLIC Overview wire wire Investor location toat generate surface a required Day andby ongoing with 50 transfer
Slide 51: Consumable Sales Overview
Consumable ORTHODYNE A ELECTRONICS Wedge bonding, Cutting December Division bonders 20looping 8, mil ofSales 2008 wire ® are and KLIC Overview supported cutting Investor repeatability withDay a range 51 Kulicke and of consumable process & Soffa® capability productsof that the equipment. require tigh
Slide 52: Orthodyne Highlights
ORTHODYNE Highlights A ELECTRONICS High Market Diverse Semiconductor Hybrid Consumables Good Energy Clean Strong Ribbon Power Solar December Division Market Market Reliable LED Products Investment Acceptance Equipment Efficiency as Revenue an 8,of2008 Share Interconnect Drivers &Interconnect Equipme
Slide 53: Financial Overview
Visit us atOverview Financial www.kns.com Confidential Name Kulicke & Soffa®
Slide 54: Orthodyne Financials
($Excludes 6/30/08 Revenue Gross Net Operating * Orthodyne December millions) Income Profit Margin 12/31/07 45.9 Expense Inc. Cash 8, Financials is ESOP 5.5 % 625.7 2008 aMos 110.4 56.0% 12.0% 5.2 high 25.6 Flow 12/31/06 65.3 compensation 24.1 KLIC End *margin 88.5 18.0 59.1% 20.5 7.4 23.1% 52.6 16.
Slide 55: K&S Financials
K&S ($ 6/28/08 Revenue Gross Operating Net Working * ** *** All December Includes millions) Excludes K&S Income Accounts Before with Profit Margin 9/29/07 Capital *amounts Exp. Inc. Wire 8, $283 582.7 17.6 % 9131.2 Orthodyne & 2008 Mos Receivable 22.5% 3.0% 19.0 After 112.0 K&S 6/28/08 million 163.3
Slide 56: Liquidity Analysis
Liquidity 2008 $(000,000) Net .5% 2009 Table forecast revenue. December cash Notes Working Ending Cash CapX Misc End includes for Due from Analysis of 8, (paid from 1the (5) Year Time 2008 Cash totransactions Capital management’s current limited operations inCash Cash KLIC Balance November) Change q
Slide 57: Liquidity Analysis
Liquidity 2008 $(000,000) Net .5% 2009 These Table forecast revenue. December cash Notes Working Ending Cash CapX Misc End includes first for Due from Analysis of 8, (paid three from 1the (5) Year Time 2008 Cash totransactions Capital management’s current limited operations in items Cash Cash KLIC B
Slide 58: Liquidity Analysis
Liquidity 2008 $(000,000) Net .5% 2009 These Table forecast revenue. December cash Notes Working Ending Cash CapX Misc End includes amounts for Due from Analysis of 8, (paid from 1the (5) Year Time 2008 Cash totransactions Capital management’s include current limited operations inCash Cash KLIC Bala
Slide 59: Liquidity Analysis
Liquidity 2008 $(000,000) Net .5% 2009 Certain Table forecast revenue. December cash Notes Working Ending Cash CapX Misc End includes contingent for Due from Analysis of 8, (paid from 1the (5) Year Time 2008 Cash totransactions Capital management’s current limited operations inCash Cash KLIC Balance
Slide 60: Liquidity Analysis
Liquidity 2008 $(000,000) Net .5% 2009 Due Table forecast revenue. December cash Notes toWorking Ending Cash CapX Misc End includes the for Due from Analysis of 8, reduction (paid from 1the (5) Year Time 2008 Cash totransactions Capital management’s current limited operations inCash Cash KLIC Balanc
Slide 61: Liquidity Analysis
Liquidity 2008 $(000,000) Net .5% cash Ending December 2009 In Table forecast revenue. this EndNotes from Analysis Working Cash CapX Misc includes very for Due of 8, Cash from 1bad the (5) (paid transactions Year Time 2008 to Balance in Change Capital November) management’s current scenario limited
Slide 62: Orthodyne Reconciliation
A)millions) RECONCILIATIONS ($ 6/30/08 ESOP Interest Rental As December Reconcilation Reported Presented: Compensation Income and 12/31/07 8,dividend 6$5.8 2008 Mos Operating (0.0) of 12/31/06 $26.0 KLIC End Orthodyne (0.2) -income -Fiscal $14.2 3.7 Income Investor (0.3) 12/31/05 2.2 (0.6) Year $3.2
Slide 63: K&S Reconciliation
B) millions) K&S ($ 6/28/08 Revenue Gross Operating Equity Sale Tax Orthodyne Debt US Amortization Gain Net December Reconcilation Pension Income effect of Sale on with Profit based Assets 9/29/07 bond extinguishment asAdjustment on Expenses Income Wire 8, Proforma Reported as 9Plan as 2008 compensa
Slide 64: Final Thoughts
Final Thoughts KLIC Acquisition Penetration Technology Experience Successfully December is growth 8,Management into of leadership managed 2008 Orthodyne story newKLIC growth downturns in Investor Team core wedge adds: markets areas bonding before Day 64 Kulicke & Soffa®
Slide 65: Copyright Notice
Company This express December PowerPoint written Copyright 8, 2008 consent presentation KLICofInvestor K&Sand isDay all prohibited. of65 itsKulicke contents&are Soffa® protected under International and United States Copyright laws. Any reproduction or use of all or any part of this presentation with
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