mii - kulicke and soffa industries (klic) presentation - ryan rechkemmer

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M c I n t i r e I n v e s t m e n t I n s t i t u t e 1 MCINTIRE INVESTMENT INSTITUTE AT THE UNIVERSITY OF VIRGINIA

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PowerPoint presentation accompanying my long pitch of Kulicke and Soffa Industries (NASDAQ: KLIC) to the McIntire Investment Institute

TRANSCRIPT

Page 1: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e1

MCINTIRE INVESTMENT INSTITUTEAT THE UNIVERSITY OF VIRGINIA

Page 2: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC Supports the Global Semiconductor Supply Chain

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Page 3: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC is the Established Leader in Wire Bonding

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Page 4: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC Has a History of Success

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Page 5: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC Offers a Complete Array of Assembly Products

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Page 6: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC Possesses an Asymmetrical Technological Advantage

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Page 7: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC Extends a Global Reach

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Page 8: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC Maintains a Low Cost, Lean Manufacturing Strategy

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Page 9: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC Is the Automatic Wire Bonder Market Share Leader

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Page 10: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC is a Compelling Long

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Page 11: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Wire Bonding Market Trends Remain Favorable

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Page 12: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Wire Bonding Is Still Competitive with Flip Chip

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Page 13: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC Lacks Recognition Among Investors

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Page 14: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC is Attractively Valued Relative to Earnings and Cash

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Page 15: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

KLIC is Priced for Secular Decline

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Page 16: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Investors Fear that KLIC will Misallocate Capital

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Page 17: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Shareholder Activism Can Unlock KLIC’s Value

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Page 18: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Antecedents to Shareholder Activism Parallel OfficeMax

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Page 19: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Risks Could Derail Investment Theses

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Page 20: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e20

MII Should Initiate a Long Position in KLIC

Page 21: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Appendix: KLIC’s Top 10 Customers*

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Page 22: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Appendix: KLIC Has Delivered Strong Gross Margins

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Page 23: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Appendix: KLIC Has Delivered Strong EBIT Margins

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Page 24: MII - Kulicke and Soffa Industries (KLIC) Presentation - Ryan Rechkemmer

M c I n t i r e I n v e s t m e n t I n s t i t u t e

Appendix: KLIC R&D, CapEx, and FCF

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