Investor PresentationMarch Quarter 2013
Safe Harbor Statement
2
In addition to historical statements, this presentation and oral statements made in connection with it maycontain statements relating to future events and our future results. These statements are “forward-looking”statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include, but arenot limited to, statements that relate to our future revenue and statements under the sub-headings “Vision”and “Mission” on slide 6 of this presentation. While these forward-looking statements represent ourjudgments and current expectations concerning our business, a number of risks, uncertainties and otherimportant factors could cause actual developments and results to differ materially from our expectations.
These factors include, but are not limited to: the risk that customer orders already received may bepostponed or canceled, generally without charges; the risk that anticipated customer orders may notmaterialize; the risk that our suppliers may not be able to meet our demands on a timely basis; 3rd partymarket forecasts don’t materialize and the risk that replacement and incremental demand drivers do notincrease demand for our products; the risks of a slowdown of transition from gold to copper Wire Bondingby our customers and the industry, the volatility in the demand for semiconductors and our products andservices; volatile global economic conditions, which could result in, among other things, sharply lowerdemand for products containing semiconductors and for the Company’s products, and disruption of capitaland credit markets; the risk of failure to successfully manage our operations; acts of terrorism and violence;risks, such as changes in trade regulations, currency fluctuations, political instability and war, which may beassociated with a substantial non-U.S. customer and supplier base and substantial non-U.S. manufacturingoperations; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2012 Annual Report onForm 10-K and our other filings with the Securities and Exchange Commission.
Kulicke & Soffa Industries, Inc is under no obligation to (and expressly disclaims any obligation to) updateor alter its forward-looking statements whether as a result of new information, future events or otherwise.
Agenda
Company Overview
• Geographic Footprint
• Product Portfolio
Core Market Overview
• End-Applications Served
• Incremental & Replacement Demand Drivers
• Market Outlook
Ongoing Shareholder Value Creation
• Competitive Growth Advantages
• Strategic Business Development
Financial Performance & Summary
• March Quarter Financial Results
3
Company Overview
About Kulicke & Soffa (K&S)
5
Kulicke & Soffa is the Global Technology & Market L eader in Semiconductor Packaging & Assembly Equipment
Rich history of technology leadership & innovation | Founded in 1951 – publicly traded since 1961 |
Listed on NASDAQ: KLIC | Leadership positions in markets served | Strong global presence with
88% of sales in Asia | 2,328 Employees as of April 30, 2013 | K&S continues to serve critical role in
major industry innovations & transitions
Vision, Mission & Core Values
VisionTo be the leading technology provider of comprehensive interconnect solutions for the microelectronics industry
Mission• Grow our leadership position in Wire Bonding and Expendable Tools, and lead the industry in
transitioning to copper Wire Bonding• Broaden our product portfolio by leveraging our core competencies to accelerate our
revenue growth• Consistently deliver superior financial performance to maximize shareholder values• Be at the forefront of technology by leveraging strategic partnerships with customers, suppliers
and research institutes • Foster a positive work environment by weaving our core values into the fabric of our organization
ONE K&S Core Values• Delight Our Customers• People Matter• Learn, Grow, Excel• Innovate for Success• Make a Difference
6
Global Presence
7
Market Driven Products
8
Capillaries
Dicing Blades
3700 Plus3600 Plus
ATPremierPlus
iBond50004700452245244526
Microelectronics Equipment
Wedge Bonder
Ball Bonder
Service
Software
IConn ConnX ConnX-LED IConn ProCuConnX-VLEDConnX Plus
PowerFusion
Leadership Positions
9
K&S Market Leading Solutions
Market Technical Advantages Market Share Ranking
Ball Bond• Best in class accuracy, up to +/- 2.0µm • Ultra fine pitch (35µm) Wire Bonding capability
#1
Wedge Bond• Highest production (units per hour)• Single & multi-head machine configurations
#1
Stud Bump• Unique, wafer level packaging • Expanding application opportunities
#1
Capillaries • Highly customized application specific #1
Core Market Overview
End-Applications Served
11
Markets Served
� Consumer Devices
� Communications
� Data Processing
� Automotive
� Industrial
� Aerospace
IC End-Applications
� Smartphones, Tablets, Laptops,
Flash Memory, Computers,
Cameras, Television Sets
� Pacemakers, Hearing Aids
� Safety Equipment, Sensors,
Vehicle Electronics, Engine
Control Systems, Security
Systems
� Servers, Controllers, Routers
LED End-Applications
� Back Lighting & General
Lighting
� Indicator & High Bright
� Surface & Vertical Mount
Semiconductor Unit Growth
12
Source(s): Gartner, Dec 2012
2012-2016
CAGR Projections
Unit Revenue
Automotive 17% 8%
Communications 7% 6%
Consumer 12% 1%
Data Processing 8% 7%
Industrial 19% 9%
Aerospace 2% 3%
Total Market 11% 6%
Consumer demand accounted for 25% of the overall Semiconductor market in 2012 | The 5% gap
between Unit & Revenue CAGR’s suggests cost will remain a significant value driver for the
Semiconductor industry
Semiconductor Units Expected to Grow Faster than Revenue
Automotive
33
Communications
173
Consumer
170
Data Processing
162Industrial
88
Aerospace
12
2012 Global Semiconductor Demand by Application (Billions of Units)
19800
5
10
15
20
25
Calendar Year
Semiconductor Lead-Count Continues to Accelerate
(Trillions of Leads)
>500 Lead256-500 Lead128-256 Lead<128 Lead
13
Source(s): VLSI Research, March 2013; Prismark August 2013
Each I/O (Lead/Pin) requires an interconnect | Market research forecasts 82% of Integrated Circuit (IC)
packages will be Wire Bonded and 18% Advanced Interconnect by 2016 | LED lead-count demand is
incremental to semiconductor lead-count & should be considered separately
20162012
For
ecas
t
Lead/Pin Count Growth Drives Incremental Equipment Demand
CAGR 2012-2016
8%13%12%7%
14
Roughly 30% of bonders currently in production are copper capable | K&S expects 70%+ of total Wire
Bonder’s in production to convert to copper | Wire Bonding has & is expected to continue enabling new
technology trends
Technology Shifts Drive Replacement Market
Source(s): K&S Estimates, Apr 2013
Copper Wire Bonding
Package on Package
Stacked-Die
Ultra Low Loop
Low-K Bonding
Advances in Wire Bonding
Node Shrink93
81 78 76 73 71 69
2437 46 57 71 79 90
0%
10%
20%
30%
40%
50%
60%
0
20
40
60
80
100
120
140
160
180
2011 2012 2013 2014 2015 2016 2017
% C
op
pe
r C
ap
ab
le
Ba
ll B
on
de
rs in
Pro
du
ctio
n (
Th
ou
san
ds)
Fiscal Year
Copper Bonder Unit Growth
Cu BB (K Units)
Au BB (K Units)
% Copper Capable
Leading the Wire Bonder Equipment Market
15
Source(s): VLSI Research, April 2013
K&S has established a dominant
market share through technology &
strategic R&D investment over the
past 5 years | Wire Bonder
Equipment market is forecasted to
represent an average size of $900M
over the next 4 years | LED Bonder
Market is incremental & is not
represented in forecast
Market Forecast
Ongoing Shareholder Value Creation
• Multi-sourced mitigates risk & reduces costs
• Supplier deliveries tied directly to factories daily build rate
Supply Chain Leverage
Flexible Manufacturing Model
Extensive Sales, Service & Support
Network
Optimized Operating Model
17
Fine-Tuned Operating Model Drives Significant Cost Advantages & Leverage Capabilities
• 4x workforce flexibility
• Global operations are based on Lean Production principles
• Efficient internal & external distribution channels
• Global team of 300+ Sales, Service & Support staff localized in key markets
Creating an Unfair Advantage
• 450+ Engineers• K&S hires the best talent
from leading International Universities
• 80% of Engineering group focused on new product development
Knowledge Driven Product Development Structure
• Competency roadmaps are grouped in lanes that represent “Golden Arrows”
• This Golden Arrow approach fosters collaboration & knowledge sharing across product lines
Market Leading Innovation
• Innovations are rapidly commercialized by pulling from Golden Arrow competency lanes
• Competency lanes can be leveraged into New Growth Opportunities
Innovation Through Engineering Excellence
18
Motion Systems
Vision Systems
UltrasonicsMaterials Handling
Process Development
Cu Bonders
Kits
2008 2009 2010 2011 2012
Installed Base of K&S Copper Wire Bonders
Transformative Business Development Group
19
Business development group consists of senior cross-functional leaders | Long-term strategic action planimproves growth initiatives, evaluation, prioritization & execution | K&S is currently developing a nextgeneration Thermo-Compression Bonder to serve the emerging Advanced Packaging Market
MEMS
10%2012-’16 Market CAGR
Source(s): Gartner, Aug 2012; Yole Development, Aug 2012, Internal Estimates, Apr 2013
Advanced Packaging
$400M2016 Market Opportunity
LED
21%2012-’16 Unit CAGR
Financial Performance & Summary
Continued Through-Cycle Financial Performance
21
$106.1M of Revenue & $7.3M of Net
Income earned over prior quarter |
Product differentiation through continuous
R&D commitment | Company-wide cost
containment program improves variable
cost base
154
221
259
149
207
294
180
120146
256269
114 106
Mar
'10
Jun
'10
Sep
'10
Dec
'10
Mar
'11
Jun
'11
Sep
'11
Dec
'11
Mar
'12
Jun
'12
Sep
'12
Dec
'12
Mar
'13
Revenue ($M)
15.2%
22.6% 21.9%
14.8%
21.1%
27.7%
12.6%10.3%
13.8%
29.9%
26.1%
3.7%
7.7%
Mar
'10
Jun
'10
Sep
'10
Dec
'10
Mar
'11
Jun
'11
Sep
'11
Dec
'11
Mar
'12
Jun
'12
Sep
'12
Dec
'12
Mar
'13
Operating Margin
14.014.7 14.8
15.2
16.5 16.6 16.8
14.1
15.9 16.0
17.4
18.3
12.2
Mar
'10
Jun
'10
Sep
'10
Dec
'10
Mar
'11
Jun
'11
Sep
'11
Dec
'11
Mar
'12
Jun
'12
Sep
'12
Dec
'12
Mar
'13
R&D ($M)
*
*Due to ongoing cost-containment & favorable $3.0M Dec RISC grant adjustment
Strong Balance Sheet & Cash Position
22
$136.4MWorking Capital* as of Q2 FY’13
Q2 FY 2013
Days SalesOutstanding
99 days
Days Sales of Inventory
72 days
Accounts Payable Days
41 days
Cash Conversion 130 days
*Defined as: Accounts Receivable plus Inventory less Accounts Payable
Debt free as of June 2012 | $6.51 cash per share & $8.64 of book value per diluted share as of March
30, 2013 | ROIC centric organization driven towards ongoing operational efficiency
95
157170
186
145
181
385
440
494 499
280
195
251 247
159
110 110
0 0 0
2005 2006 2007 2008 2009 2010 2011 2012 Q1
2013
Q2
2013
$0
$100
$200
$300
$400
$500
$600
Fiscal Year
Total Cash & Debt Balance($M)
Total Cash & Short Term Investments
Total Debt
23
Structured for Growth
Core-Market Leadership
Dominating Copper
Growing LED Market Share
Expanding Wafer Level Stud Bump into New Markets
Maintaining Wedge Bonder Market Leadership
Incremental Growth Opportunities
Entering the Emerging Advanced Packaging Market
Examining Organic & Inorganic Growth Opportunities
Optimized Operating Model
Innovative Technology Development
Core Financial Strength
• Flexible & Lean model• 300 Localized Sales,
Service & Support Staff• Scale through high-
volume business
• Highly talented Engineering group
• Structured and proven development process
• $499M of cash• No-Debt
Str
ateg
ic B
usin
ess
Dev
elop
men
t