Exhibit 99.1
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KULICKE & SOFFA
11th Annual Needham Growth Stock Conference January 8, 2009
January 8, 2009 Needham Growth Stock Conference Kulicke & Soffa®
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”, 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 9/27/08.
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 gauging 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
January 8, 2009 Needham Growth Stock Conference 2 Kulicke & Soffa®
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
January 8, 2009 Needham Growth Stock Conference 3 Kulicke & Soffa®
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, 2009 Needham Growth Stock Conference 4 Kulicke & Soffa®
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 Wedge Bonder Equipment
3 Die Pick-up Tools 6 Bonding Tools
January 8, 2009 Needham Growth Stock Conference 5 Kulicke & Soffa®
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, Wedge Bonder TAM & IC Die Bonder TAM: VLSI Research Equipment Forecast, October 2008; Tools TAM: K&S Internal bottom up analysis and Forecast
† Pre 2008 Market Crises
January 8, 2009 Needham Growth Stock Conference 6 Kulicke & Soffa®
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
January 8, 2009 Needham Growth Stock Conference 7 Kulicke & Soffa®
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 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
Place Accuracy
Position [µm]
25
15
5
-5
-15
-25
0
25
50
75
100
Die #
XY
January 8, 2009 Needham Growth Stock Conference 8 Kulicke & Soffa®
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®
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, 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
January 8, 2009 Needham Growth Stock Conference 10 Kulicke & Soffa®
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 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
January 8, 2009 Needham Growth Stock Conference 11 Kulicke & Soffa®
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 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
January 8, 2009 Needham Growth Stock Conference 12 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
January 8, 2009 Needham Growth Stock Conference 13 Kulicke & Soffa®
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)
Estimated max potential savings of ~$17 million
January 8, 2009 Needham Growth Stock Conference 14 Kulicke & Soffa®
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 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 first fiscal 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.
January 8, 2009 Needham Growth Stock Conference 15 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
January 8, 2009 Needham Growth Stock Conference 16 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
January 8, 2009 Needham Growth Stock Conference 17 Kulicke & Soffa®
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 Conference 18 Kulicke & Soffa®
Company Copyright
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Any reproduction or use of all or any part of this presentation without the express written consent of K&S is prohibited.
January 8, 2009 Needham Growth Stock Conference 19 Kulicke & Soffa®
