Exhibit 99.1
Visit us at:
www.kns.com
KULICKE & SOFFA
Corporate Overview
December 2008
Confidential Name Kulicke & Soffa®
Safe Harbor Statement
This presentation contains forward-looking statements, including forecasts of future market share and future Company performance, and often contain words such as “expect”, “intend”, “believe”, “seek”, or “will.” These statements are subject to risks and uncertainties that could cause actual results to materially differ from those projected. Further discussions of risk factors are available in the Company’s most recent SEC filings including the annual report on form 10-K for the fiscal year ended 9/29/07.
This presentation may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gaging the quality of our financial performance, identifying trends in our results, and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the accompanying information posted to the Investor Relations section of our website at www.kns.com
December 8, 2008
KLIC Investor Day 2 Kulicke & Soffa®
Visit us at:
www.kns.com
Kulicke & Soffa:
A Leader in Semiconductor Assembly Equipment & Materials
Provides Cutting Edge Technology & Process Solutions in:
Ball Bonding
Die Bonding
Wedge Bonding
Enables customers to assemble next generation devices at increased production and reliability levels.
Confidential Name Kulicke & Soffa®
Ball Bonding Examples
Ultra Fine Pitch Bonding
Pad pitch less than 50 µm (0.002" center-to-center) with a minimum of 35 µm (0.0014")
Wire diameter down to 15 µm (0.0006")
By comparison, human hair is typically 100-200 µm in diameter
Copper Wire Bonding
Pad pitch to 45 µm (0.0014")
Wire diameter down to 20 µm (0.0008")
Excellent electrical properties
Lower cost
Stacked Die Bonding
Typically 2, 3, or 4 dice stacked one on top of another.
70µm to 80µm pad pitch
The wire loop from the top die needs sufficient clearance to clear the edge of the bottom die as well as the lower loops.
Copper Wire Bonds
60 µm (0.0024") Pad Pitch
December 8, 2008 KLIC Investor Day 4 Kulicke & Soffa®
Assembly & Package Test Processes
Back-End Processes typically involves the following basic 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
2 Die Bonder Equipment
3 Die Pick-up Tools
4 Ball Bonder Equipment
5 Wedge Bonder Equipment
6 Bonding Tools
December 8, 2008 KLIC Investor Day 5 Kulicke & Soffa®
IC Units Shipments Forecast
update 11/2008
VLSI Research
IC Insights
YoY Change (Consolidate)
300 250 200 150 100 50 0
116.3 116.3 137.4 137.4 151.3 151.8 162.0 161.3 165.7 164.5 192.5 182.1 217.0 199.5 240.0 222.5 269.1 251.8
10.6% 18.1% 10.3% 6.5% 2.3% 13.8% 14.4% 15.9% 17.1%
35% 30% 25% 20% 15% 10% 5% 0%
2005 2006 2007 2008F 2009F 2010F 2011F 2012F 2013F
Caledar Year
December 8, 2008 KLIC Investor Day 6 Kulicke & Soffa®
Growth Strategies – Recent History
Focus New Equipment Markets
Divestiture of Wire Business September 2008
Acquired Orthodyne October 2008
Discovery Die Bonder Launch Winter 2009
Technology Leadership
IConn & ConnX Launched 2008
Solidified Technology Leadership in Ball Bonding
Enabling Copper Bonding Solutions
Process Expertise
Copper Upgrade Kits
December 8, 2008 KLIC Investor Day 7
Kulicke & Soffa®
K&S TAM Growth* (Continuing Operations)
Sales in $M
2500.0
2000.0
1500.0
1000.0
500.0
0.0
Acquire Alphasem Die Bonders
Acquire Orthodyne Wedge Bonders
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, Wedge Bonder TAM & IC Die Bonder TAM: VLSI Research Equipment Forecast, October 2008;
Tools TAM: K&S Internal bottom up analysis and Forecast
Kulicke & Soffa®
K&S Technology Leadership
NEW! Power Series Product Line
PS
Iconn
High Performance Bonder
Advanced Packaging Technology
Highest Throughput
Stacked Die
Low-k Bonding
PS
Connx
Cost Performance Bonder
LEDs, Discretes, Low Pin-Count Packaging
Specialized handling technology
Power Series
December 8, 2008 KLIC Investor Day 9
Kulicke & Soffa®
The Power Series includes
PS
Iconn
Accuracy +/- 2.0 um 35um pitch Programmable Focus High Mag Option On-bonder process optimization tools Power Series Advanced Loop Power Series Low Loop Copper Bonding Capability (with opt. kit)
December 8, 2008 KLIC Investor Day 10
Kulicke & Soffa®
The Power Series includes
PS
Connx
Accuracy +/- 3.0 um
Look Ahead Algorithms for matrix devices
Copper Bonding
Capability (with opt. kit)
December 8, 2008 KLIC Investor Day 11
Kulicke & Soffa®
Next-Generation Wire Bonders
PS Iconn
PS Connx
Enthusiastic Responses at Semicon China & Semicon Taiwan
Higher ASPs and Margins
Customers Qualifying these New Bonders for Production
December 8, 2008 KLIC Investor Day 12
Kulicke & Soffa®
Industry Leading Production Capability
December 8, 2008 KLIC Investor Day 13
Kulicke & Soffa®
K&S Technology & Performance Leadership
New Product and Performance Every 18-24 Months
Pad Pitch (microns)
80 70 60 50 40 30 20
1488 plus
8028S
Pitch
Speed
8020
8028
8028
PPS
MAXµm
MAXµm
PLUS
MAXµm
ULTRA
Power Series
110 100 90 80 70 60 50 40 30 20 10
% Productivity Increase
35 30
Year of Introduction
2009
1996
1998
2000
2002
2004
2006
2008
December 8, 2008 KLIC Investor Day 14
Kulicke & Soffa®
Ball Bonder Market* TAM Growth (02-07) = 15%
K&S Ball Bonder Growth (06-07) = 41% K&S SOM Growth (06-07) = 10%
ASM PT 19%
ESEC
8%
Other
4%
K&S
37%
SHINKAWA
32%
CY 2006 Total Available Market
= $588 Million
ASM PT 17%
ESEC
8%
Other
4%
K&S 47%
SHINKAWA 24%
CY 2007 Total Available Market
= $656 Million
*Source: VLSI Research – May 2008
December 8, 2008 KLIC Investor Day 15
Kulicke & Soffa®
Ball Bonder Growth Strategies
Expand in Specific Sub-Markets with Targeted Capabilities
Advanced Packaging Requirements
LED & Low Pin Count Markets
Specific Growth Market Segments (Copper)
December 8, 2008 KLIC Investor Day 16
Kulicke & Soffa®
Visit us at
www.kns.com
Technology Expansion into Die Bonding
Acquired Alphasem 2006
Launch Discovery 2009 – Next Generation Die Bonder
Confidential Name
Visit us at
www.kns.com
New Die Bonder Platform
Confidential Name
Kulicke & Soffa®
Value Proposition
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
December 8, 2008 KLIC Investor Day 19
Kulicke & Soffa®
Leading edge accuracy and stability
Intermediate transfer station with additional camera
Pick, transfer and place are done in parallel
Pick process inaccuracies are captured at the transfer station
Place position alignment accounts for all substrate position inaccuracies
Place Accuracy
Position [µm]
25 15 5 -5 -15 -25
0 25 50 75 100
Die #
X Y
Place Camera (moving)
Transfer Camera (static)
Diet Placer
Substrate Indexer
Die Transfer
Pick Camera (static)
Die Picker
Die Ejector
December 8, 2008 KLIC Investor Day 20
Kulicke & Soffa®
Increased UPH – Reduced COO
Heating from top and bottom improves process cycle time for stacking die
Heating from the top reduces % of voided placements
HBT 130 C vs Standard process
% of voids
50.0
40.0
30.0 20.0
10.0
0.0
0.0 200.0 400.0 600.0 800.0 1000.0 1200.0
Bonding time ms
4 holes rubber tool 4 holes HBT 130 C
10% Voids reached in 225 ms vs 500ms
December 8, 2008 KLIC Investor Day 21
Kulicke & Soffa®
Schedule
Launch in April 2009
Show at Semicon Korea (January 20th- 22nd)
First 3 Qualifications Identified
December 8, 2008 KLIC Investor Day 22
Kulicke & Soffa®
Die Bonders: Product - Easyline
Maintain Existing Die Bonder Products Through EOL
Support K&S Mindshare Among Customers
December 8, 2008 KLIC Investor Day 23
Kulicke & Soffa®
Visit us at
www.kns.com
Wedge Bonding Technologies
Confidential Name
Kulicke & Soffa®
Introduction
ORTHODYNE ®
ELECTRONICS
A Division of
A Thumbnail
We manufacturer Interconnection equipment for the Power Electronic device industry. Our core markets include:
Power Semiconductors
Power Hybrid and Electronic Modules
Power Electronic devices are the building blocks that determine how efficient energy is managed, controlled, converted, distributed, or generated. Common end market uses include:
Transportation:
Alternate Energy Sources: Solar, Wind Farm
Consumer White Goods:
Industrial:
Heating / Cooling
Lighting
December 8, 2008 KLIC Investor Day 25
Kulicke & Soffa®
Introduction
Key Highlights
ORTHODYNE ®
ELECTRONICS
A Division of
Appealing Market Drivers
Higher energy costs 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 coming on-line
Growing market opportunities in alternate energy & energy efficiency applications
Power interconnect opportunities in solar panels, power LED’s and specialized batteries
Power Semiconductors sector, historically less volatile than semiconductor IC markets
Projections of 6 to 11% CAGR thru 2011 for their core markets **
High Degree of Technical Competence
Core equipment technology and critical processes developed and supported under one roof
Yields higher gross margins with OE developed technology.
Allows customized solutions and closer ties to the customer
OE machine vision systems, motion control, high speed robotic mechanisms, and ultrasonics can be tailored to meet customers needs
A history of successful innovation with new generation products exceeding 55% of 2007 revenue.
Experienced and innovative Application, Sales, and Engineering Staff
Market Leadership in Power Interconnects
Excellent customer relationships with leading companies such as Siemens, NEC, Fujitsu, STMicroelectronics, Delphi, Fairchild, Toyota, Denso, and other Fortune 500 Companies
Recently introduced innovations such as PowerRibbon® bonding offers improved electrical performance for high power applications and a reduced cost interconnect alternative for power semiconductor packages.
Market leader with 50-80% market share in all core markets.
Opportunities exist to improve market share, leverage expertise and market synergies with another market leader and our new strategic partner (i.e. K&S)
** Pre 2008 market crisis and pending revisions
December 8, 2008 KLIC Investor Day 26
Kulicke & Soffa®
Markets and Market Drivers
Market Overview – Orthodyne Markets
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, PC’s, Gaming counsels, Flat Screen TV’s, Consumer Electronics, White Goods, etc.
Electronic ballasts for lighting, power electronics for heating, cooling, pumps
Military, Medical, Aeronautic power modules
Emerging Growth Markets
Hybrid vehicles, E-Bike
Wind power generation and conversion
Solar PV power generation, conversion and storage solutions
Power LED’s and Solar PV panel assembly
Aluminum Wire Bonding Technology
Remains the interconnect of choice for power modules and power semiconductors
December 8, 2008 KLIC Investor Day 27
Kulicke & Soffa®
Market and Market Drivers
Enabling Energy Efficient Solutions
ORTHODYNE ®
ELECTRONICS
A Division of
Orthodyne’s products create the internal interconnects in a wide variety of power electronic applications
OE Bonding Equipment
Assemble Power Semiconductors
For Energy Efficient Solutions
WW energy demand is expected to increase by 57% by 2025 driving a focus towards energy efficiency in all applications
December 8, 2008 KLIC Investor Day 28
Kulicke & Soffa®
Markets and Market Drivers
ORTHODYNE ®
ELECTRONICS
A Division of
Higher Energy Costs Driving Power Electronic Solutions
Markets
Renewable Energy
Lighting Power Modules Power Supplies
Industrial Motor Drives
Consumer/ White Goods
Key Drivers
Increasing fuel/energy costs combined with demand for energy efficiency
Wind Turbines and photovoltaic inverters
Elimination of incandescent bulbs and energy saving measures
Replacement of magnetic ballasts
Drive for more energy efficient applications and machines
IGBT based modules replacing thyristor (non-wirebonded assemblies) in the inverter stage of the UPS yielding increased electrical efficiencies
Increased investment in industrial production especially in China Motor inverter controls being mandated WW
Increased usage of inverter based variable speed motor controls for consumer white goods
Driven by rising energy costs and government regulation
December 8, 2008 KLIC Investor Day 29
Kulicke & Soffa®
Market Overview
ORTHODYNE ® ELECTRONICS
A Division of
Power Semiconductors Enable Solutions
Inverter based variable speed motor controls offer serious gains in energy efficiencies
Improved power management, soft switching and new digital/analog designs hold promise for further gains.
Power Consumption Comparison
kwh
100%
80%
60%
Energy Savings 40%
Non-Inverter
AC Inverter
DC Inverter
Source: EPRI, ACEEE, LBNL
December 8, 2008 KLIC Investor Day 30
Kulicke & Soffa®
Market and Market Drivers
ORTHODYNE ® ELECTRONICS
A Division of
Demand for Energy Efficiency Driving Automotive Applications
Major Applications for Power MOSFETs in Automobiles
Starter and Power Generation
Integrated Starter-Generator, DC/DC Converter, etc.
Lamp Control
High-Intensity Discharge
Lamp (HID), Daytime
Running Lamp, etc.
Audio
Power Amplifier
(Power Supply and Digital Output)
Body Control
Anti-Lock Braking
Systems (ABS), EPS, Suspension, Sunroof, etc.
Engine Management
Injection, Electric Throttle, Idle Control, O2 Heater, Automatic Cruise Control, etc.
Security
Door Locks, etc.
Cabin Environment Control
Power Seats, Air Conditioning, Power Windows, Power Mirrors, Wiper, etc.
Transmission Control
Mission Control etc.
Source: NEC Electronics
Only 15% of the fuel energy is actually used to move the car
US CAFÉ standards will rise to 35 MPG by 2020
Strict 2012 Euro emission regulations
Power Electronics are enablers to energy efficiency and emission controls
December 8, 2008 KLIC Investor Day 31
Kulicke & Soffa®
aket Growth – 2003 to 2007
ORTHODYNE ® ELECTRONICS
A Division of
Semiconductor Systems
Hybrid Systems
Consumables/Spares
2003
2004
2005
2006
2007
Historical Distribution of Orthodyne Revenue
03-07 CAGR: SEMI 32% HYBRID 11% NONSYSTEM 12%
Previously…
Source: IC Insights, 2007 Discretes 2006–11 CAGR 6%
Source: IMS Research, 2007 Power Semi 2006–11 CAGR
Discretes 7% Power Modules 9.5%
December 8, 2008 KLIC Investor Day 32
Kulicke & Soffa®
Regional Hybrid & Semi shipments – Sept 2008 QTR
ORTHODYNE ® ELECTRONICS
A Division of
Europe 6%
Asia Southeast 22%
North America 3%
Japan/Korea 21%
China 48%
December 8, 2008 KLIC Investor Day 33
Kulicke & Soffa®
Regional Semi Shipments- Sept 2008 QTR
ORTHODYNE ® ELECTRONICS
A Division of
North America 1%
Japan/Korea 7%
China 65%
Asia Southeast 27%
December 8, 2008 KLIC Investor Day 34
Kulicke & Soffa®
Regional Hybrid Shipments- Sept 2008 QTR
ORTHODYNE ® ELECTRONICS
A Division of
Asia Southeast 1%
Europe 23%
Japan/Korea 58%
China 8%
North America 10%
December 8, 2008
KLIC Investor Day 35
Kulicke & Soffa®
Sales Revenue 2008
ORTHODYNE ® ELECTRONICS
A Division of
Consumables
22%
22%
56%
Hybrid Equipment
& Spares
Semiconductor Equipment
& Spares
2008 FY Product Breakout
December 8, 2008 KLIC Investor Day 36
Kulicke & Soffa®
Key Customers 2008
ORTHODYNE ® ELECTRONICS
A Division of
Top 10
Fairchild Semiconductor
Toyota
Nantong Fujitsu
GEM Electronics
ASE
Renesas Semiconductor
Rohm
GTM Corporation
GTBF
Conti Temic
Hybrid
Toyota
Conti Temic
Denso
Valeo
SilverMicro
Semi
Fairchild Semiconductor
Nantong Fujitsu
GEM Electronics
ASE
Renesas Semiconductor
December 8, 2008 KLIC Investor Day 37
Kulicke & Soffa®
Competition
ORTHODYNE ®
ELECTRONICS
A Division of
Other 10%
Cho-onpa 10%
H&K 18%
F&K 10%
OE 52%
*Based on Orthodyne FY2007 Sales & Market Estimates
“Other” being manual / semi-automatic machine makers or smaller regional players
December 8, 2008 KLIC Investor Day 38 Kulicke & Soffa®
Product Overview
7200Plus
Multi-head Power
Semiconductor wedge wire bonder with leadframe handler.
Large Wire
Small Wire
Ribbon
3600PLus
Hybrid wire wedge bonder, with automatic handler options
Large Wire
Ribbon
3700Plus
Hybrid wedge wire bonder, with automatic handler options
Small Wire
PowerRibbon®
PowerRibbon™ combines the flexibility and robustness of the large aluminum wire bonding process with higher productivity and performance.
ORTHODYNE ®
ELECTRONICS
For more than 40 years, Orthodyne Electronics has been a leader in the design, manufacture and marketing of wire bonding equipment for the semiconductor, automotive, and industrial markets worldwide. Orthodyne currently manufactures wire bonders that ultrasonically weld aluminum wires ranging from 1.0-20 mil/25-500 microns in diameter.
Model 20
Manual Wedge wire bonder
Large Wire
Small Wire
Ribbon
Consumables/Spares/ After Sales Services
7600
Single Head Power Semiconductor wedge wire bonder with leadframe handler.
Large Wire
Small Wire
Ribbon
December 8, 2008 KLIC Investor Day 39 Kulicke & Soffa®
Key Technologies & Products
ORTHODYNE ®
ELECTRONICS
A Division of
Typical Semiconductor Applications
December 8, 2008 KLIC Investor Day 40 Kulicke & Soffa®
Key Technologies & Products
ORTHODYNE ®
ELECTRONICS
A Division of
7200 Plus with Large Wire, Small Wire and Ribbon Bonding
ORTHODYNE ®
ELECTRONICS
December 8, 2008 KLIC Investor Day 41 Kulicke & Soffa®
Market Overview
ORTHODYNE ®
ELECTRONICS
A Division of
Hybrid Packaging Examples
Alternate Energy Generation, Conversion – Inverter modules for Solar, Wind power, Solar Panel Interconnects
Hybrid vehicle transportation – Power conversion, battery management, electronic controls and regulation for Hybrid, Fuel Cell and Electric Cars, E-Bikes, and other forms of transport.
Industrial – Motor control modules for heating / cooling, pumps, lighting, automation, power suppliers / distribution etc.
Automotive – Engine control modules, Passenger convenience, Safety, Entertainment, Navigation, Diagnostics
Medical – Pacemakers
Aerospace – Flight / Guidance controls, safety, engine management, passenger convenience / entertainment, heating / cooling , pumps, lighting
Consumer White Goods – Power Supply, Power Management, Motor Inverter Modules, etc.
December 8, 2008 KLIC Investor Day 42 Kulicke & Soffa®
Key Technologies & Products
ORTHODYNE ®
ELECTRONICS
A Division of
Characteristics of Hybrid Packages
Complex Shapes
Multiple surfaces
Multiple Materials
Leads / Pins / Terminals
Ni Plated over copper Al Clad over copper
Die Metallization
Al 1 to 5% Si (4 to 6 micron Thick)
Substrate Metallization
Thick film Pt/Ag, Pd/Ag, Au, Ag, Pd/Au. (~ 25micron Thick)
Wire
Al: 75 to 500 micron wire diameter
Substrate
Alumina, AlN, BeO, LTCC, HTCC, PCB
Die / Substrate Attach
Eutectic, Pb/Sn, Conductive Epoxy
Encapsulant
Silicone Gel
December 8, 2008 KLIC Investor Day 43 Kulicke & Soffa®
Key Technologies & Products
ORTHODYNE ®
ELECTRONICS
A Division of
3600 Plus Bonding Power Conversion / Inverter Modules
Solar Wind power conversion modules, Hybrid Vehicles Modules, Motor AC/DC Controllers, Inverter Modules, Smart Pump Modules
December 8, 2008 KLIC Investor Day 44 Kulicke & Soffa®
Key Technologies & Products
ORTHODYNE ®
ELECTRONICS
A Division of
3700 Plus Small Wire Bonder
December 8, 2008 KLIC Investor Day 45 Kulicke & Soffa®
Key Technologies & Products
ORTHODYNE ®
ELECTRONICS
A Division of
Power Ribbon Advantages - Hybrid Modules
More Power – Fewer Connections
Increased Productivity
Increased Connection Robustness
Increased Die Performance
Increased Connection Reliability
Lower Cost
10 Large Wire Wedge Bonds
Replaced with 4 Large Ribbon Bonds
December 8, 2008 KLIC Investor Day 46 Kulicke & Soffa®
Key Technologies & Products
ORTHODYNE ®
ELECTRONICS
A Division of
3600 Plus Ribbon Bonder
Power Interconnects for Power Hybrids, Power Semiconductors, Solar Panels, etc.
December 8, 2008 KLIC Investor Day 47 Kulicke & Soffa®
Growth (small, ribbon, large (as %)
ORTHODYNE ®
ELECTRONICS
A Division of
100 90 80 70 60 50 40 30 20 10 0
Large Small Ribbon
2007 2008
New Applications Driving Growth in Small Wire and Ribbon
* Includes new K&S Q1
December 8, 2008 KLIC Investor Day 48 Kulicke & Soffa®
7600 Product Launch
ORTHODYNE ®
ELECTRONICS
A Division of
Product launch at Semicon Japan
First ‘Beta’ site with Renesas Kofu.
Application: SRPF (Diode) Reel–to–Reel
General Sales Order Availability for 7600: March 2009
Target Applications:
High Density, small power packages such as SO8, PQFN, Multi chip
Leadframe Handling Options:
Magazine–to–Magazine and Reel-to–Reel
2009 sales potentials: Renesas, Panasonic, Rohm, Mitsubishi
December 8, 2008 KLIC Investor Day 49 Kulicke & Soffa®
Consumable Sales Overview
ORTHODYNE ®
ELECTRONICS
A Division of
Wedge Bonding equipment generate ongoing consumable sales opportunities. These consumables are typically designed to address a given wire, bond pad size, or package clearance requirement.
Wire Cutter
Cuts the wire at a precise location and with a tightly controlled force
Bond Tool
Ultrasonically bonds wire to surface by transferring the ultrasonic energy
Wire Guide
Guides and places the wire at a required location for bonding
December 8, 2008 KLIC Investor Day 50 Kulicke & Soffa®
Consumable Sales Overview
ORTHODYNE ®
ELECTRONICS
A Division of
Wedge bonders are supported with a range of consumable products that require tight tolerances and tight material control to assure consistent results. These consumables heavily influence the bonding, looping and cutting repeatability and process capability of the equipment.
Cutting 20 mil wire
December 8, 2008 KLIC Investor Day 51 Kulicke & Soffa®
Highlights
ORTHODYNE ®
ELECTRONICS
A Division of
Strong Products & Brand Recognition
High Market Share
Market Acceptance of Newly Introduced Equipment VLSI Customer Recognition
Diverse Revenue Stream
Semiconductor Equipment Market
Hybrid Equipment Market
Consumables & Spares
Good Market Drivers
Energy Efficiency
Clean Reliable Interconnect
Strong Investment into Emerging Markets
Ribbon as an Interconnect
Solar
Power LED
December 8, 2008 KLIC Investor Day 52 Kulicke & Soffa®
Visit us at
www.kns.com
Financial Overview
Confidential Name Kulicke & Soffa®
Orthodyne Financials
($ millions) 6 Mos End Fiscal Year End
6/30/08 12/31/07 12/31/06 12/31/05
Revenue 45.9 110.4 88.5 56.6
Gross Profit 25.7 65.3 52.6 33.4
Gross Margin 56.0% 59.1% 59.4% 59.1%
Operating Expense * 20.5 41.2 36.2 29.2
Operating Inc. 5.2 24.1 16.4 4.3
Net Income 5.5 25.6 18.0 2.5
Net Income % 12.0% 23.1% 20.4% 4.4%
Operating Cash Flow 7.4 10.8 9.4 12.8
* Excludes ESOP compensation
Orthodyne is a high margin business with good cash flow
December 8, 2008 KLIC Investor Day 54 Kulicke & Soffa®
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 12.5 47.9
Net Income 17.6 40.1 12.6 42.6
Net Income % 3.0% 5.7% 3.7% 8.9%
Working Capital 163.3 119.7
* Includes $283 million and $292 gold pass through in 2008 and 2007, respectively
** Excludes Orthodyne pro forma adjustments
*** Accounts Receivable plus inventory minus accounts payable
All K&S amounts adjusted for non-GAAP items
December 8, 2008 KLIC Investor Day 55 Kulicke & Soffa®
Liquidity Analysis
$(000,000)
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 estimates for expenses, cash flows, and cash balances in the event that revenue levels for the last 3 quarters of FY2009 stay approximately the same as the revenue forecast for the current quarter. FY 2009 revenue levels included in the table are only a “what if” scenario for management’s planning purposes and are not management’s expectations for FY 2009 revenue. Due to limited visibility for bonder demand, we can not offer revenue projections beyond the current fiscal quarter.
December 8, 2008 KLIC Investor Day 56 Kulicke & Soffa®
Liquidity Analysis
$(000,000)
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
These first three items are complete, both transactions closed in early October and the .5% notes were repaid during the quarter
Table includes management’s estimates for expenses, cash flows, and cash balances in the event that revenue levels for the last 3 quarters of FY2009 stay approximately the same as the revenue forecast for the current quarter. FY 2009 revenue levels included in the table are only a “what if” scenario for management’s planning purposes and are not management’s expectations for FY 2009 revenue. Due to limited visibility for bonder demand, we can not offer revenue projections beyond the current fiscal quarter.
December 8, 2008 KLIC Investor Day 57 Kulicke & Soffa®
Liquidity Analysis
$(000,000)
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
These amounts include the restructuring that we announced in November but not any actions we would take in response to a continued downturn
Table includes management’s estimates for expenses, cash flows, and cash balances in the event that revenue levels for the last 3 quarters of FY2009 stay approximately the same as the revenue forecast for the current quarter. FY 2009 revenue levels included in the table are only a “what if” scenario for management’s planning purposes and are not management’s expectations for FY 2009 revenue. Due to limited visibility for bonder demand, we can not offer revenue projections beyond the current fiscal quarter.
December 8, 2008 KLIC Investor Day 58 Kulicke & Soffa®
Liquidity Analysis
$(000,000)
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
Certain contingent liabilities on the balance sheet that may have to be paid in 2009
Table includes management’s estimates for expenses, cash flows, and cash balances in the event that revenue levels for the last 3 quarters of FY2009 stay approximately the same as the revenue forecast for the current quarter. FY 2009 revenue levels included in the table are only a “what if” scenario for management’s planning purposes and are not management’s expectations for FY 2009 revenue. Due to limited visibility for bonder demand, we can not offer revenue projections beyond the current fiscal quarter.
December 8, 2008 KLIC Investor Day 59 Kulicke & Soffa®
Liquidity Analysis
$(000,000)
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
Due to the reduction in revenue there is significant cash in working capital that will convert to cash during the year
Table includes management’s estimates for expenses, cash flows, and cash balances in the event that revenue levels for the last 3 quarters of FY2009 stay approximately the same as the revenue forecast for the current quarter. FY 2009 revenue levels included in the table are only a “what if” scenario for management’s planning purposes and are not management’s expectations for FY 2009 revenue. Due to limited visibility for bonder demand, we can not offer revenue projections beyond the current fiscal quarter.
December 8, 2008 KLIC Investor Day 60 Kulicke & Soffa®
Liquidity Analysis
$(000,000)
2008 Ending Cash Balance 184
Net cash from transactions 70
.5% | | Notes (paid in November) (72) |
2009 Cash from operations (64)
2009 CapX (5)
2009 Misc 1 Time Cash payments (20)
2009 Working Capital Change 42
2009 End of Year Cash 135
In this very bad scenario we exit 2009 in a strong cash position
Table includes management’s estimates for expenses, cash flows, and cash balances in the event that revenue levels for the last 3 quarters of FY2009 stay approximately the same as the revenue forecast for the current quarter. FY 2009 revenue levels included in the table are only a “what if” scenario for management’s planning purposes and are not management’s expectations for FY 2009 revenue. Due to limited visibility for bonder demand, we can not offer revenue projections beyond the current fiscal quarter.
December 8, 2008 KLIC Investor Day 61 Kulicke & Soffa®
RECONCILIATIONS
A) Reconcilation of Orthodyne income before income taxes
($ 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) (0.3)
As Presented: Operating Income $5.2 $24.1 $16.4 $4.3
December 8, 2008 KLIC Investor Day 62 Kulicke & Soffa®
B) Reconcilation of Income Statements
K&S with Wire K&S less Wire plus OE K&S without Wire
($ 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 Reported $131.0 $180.9 $148.9 $216.1 $108.9 $155.4 $173.2
Orthodyne Proforma Adjustments - - 3.4 4.6 - -
Equity based compensation expense 0.2 0.2 0.2 0.2 0.2 0.2 0.6
Gross Profit as Presented $131.2 $181.2 $152.6 $220.9 $109.1 $155.7 $173.8
Operating Expenses as Reported $126.0 $144.5 $158.7 $186.9 $121.4 $137.9 $108.5
Equity based compensation expense (4.6) (5.3) (4.6) (5.9) (4.6) (5.9) (4.1)
US Pension Plan Termination (9.2) - (9.2) - (9.2) - -
Orthodyne Proforma Adjustments - - (4.9) (7.8) - - -
Sale of Assets - - - - - - - 4.5
Amortization of Intangibles (0.1) (0.2) (0.1) (0.2) (0.1) (0.2) -
Operating Expenses as Presented $112.0 $139.1 $139.8 $173.1 $107.5 $131.9 $108.9
Operating Income as Reported $5.0 $36.4 $(9.8) $29.2 $(12.5) $17.5 $64.8
Equity based compensation expense 4.6 5.5 4.6 6.1 4.6 6.1 4.7
Sale of Assets - - - - - - (4.5)
US Pension Plan Termination 9.2 - 9.2 - 9.2 - -
Orthodyne Proforma Adjustments - - 8.4 12.4 - - -
Amortization of Intangibles 0.1 0.2 0.1 0.2 0.1 0.2 -
Operating Income as Presented $19.0 $42.1 $12.5 $47.9 $1.4 $23.8 $65.0
Net Income as Reported $8.4 $37.7 $(6.0) $29.8 $(8.6) $18.9 $61.5
Equity based compensation expense 4.6 5.5 4.6 5.9 4.6 5.9 4.7
Sale of Assets - - - - - - (4.5)
Gain on bond redemption - - - - - - (4.0)
Tax effect on non-GAAP adjustments (4.5) (0.5) (4.5) (5.0) (4.5) (5.0) 0.4
Orthodyne Proforma Adjustments 9.4 14.6 - -
Debt Sale Adjustment (2.8) - (2.8) (2.8) -
US Pension Plan Termination 9.2 - 9.2 - 9.2 - -
Amortization of Intangibles 0.1 0.2 0.1 0.2 0.1 0.2 -
Gain on extinguishment of debt (0.2) - (0.2) - (0.2) - -
Net Income as Presented $17.6 $40.1 $12.6 $42.6 $0.6 $17.1 $58.1
December 8, 2008 KLIC Investor Day 63 Kulicke & Soffa®
Final Thoughts
KLIC is growth story
Technology leadership in core areas
Acquisition of Orthodyne adds:
Penetration into new growth markets
Technology leadership in wedge bonding
Experience Management Team
Successfully managed downturns before
December 8, 2008 KLIC Investor Day 64 Kulicke & Soffa®
Company Copyright
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December 8, 2008 KLIC Investor Day 65 Kulicke & Soffa®
