SEPTEMBERQUARTER 2018INVESTOR PRESENTATION

KULICKE & SOFFA INDUSTRIES | NASDAQ: KLIC

1

In addition to historical statements, this presentation contains 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 are not limited to, statements that relate to our future expected dividend payouts and growth

opportunities.

While these forward-looking statements represent our judgments and future expectations concerning our business, a

number of risks, uncertainties and other important factors could cause actual developments and results to differ

materially from our expectations. These factors include, but are not limited to: the risk that the Company fails to meet its

operational and financial targets in order to adhere to its dividend policy; the risk that customer orders already received

may be postponed or canceled; the risk that anticipated customer orders may not materialize; the risk that our suppliers

may not be able to meet our demands on a timely basis; the volatility in the demand for semiconductors and our

products and services; the risk that identified market opportunities may not grow or developed as we anticipated; volatile

global economic conditions, which could result in, among other things, sharply lower demand for products containing

semiconductors and for the Company’s products, and disruption of capital and credit markets; the risk of failure to

successfully manage our operations; the possibility that we may need to impair the carrying value of goodwill and/or

intangibles established in connection with one or more of our prior acquisitions; acts of terrorism and violence; risks,

such as changes in trade regulations, currency fluctuations, political instability and war, which may be associated with a

substantial non-U.S. customer and supplier base and substantial non-U.S. manufacturing operations; the impact of

changes in tax law; the risk that the Company will not identify suitable acquisition opportunities or that any acquisitions

will not be successful; the risk that the Company fails to timely remediate the material weaknesses identified in the

Company’s internal controls over financial reporting or that new material weaknesses or significant deficiencies emerge;

and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2017 Annual Report on Form 10-K and our other

filings with the Securities and Exchange Commission. Kulicke and Soffa Industries, Inc. is under no obligation to (and

expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new

information, future events or otherwise.

SAFE HARBOR STATEMENT

NASDAQ: KLIC2

PRESENTATION AGENDA

NASDAQ: KLIC

CATALYSTS FOR

OUTPERFORMANCE

• Leadership

• Corporate Strategy

MARKET TRENDS &

OPPORTUNITIES

• Overview of Opportunities

• Growth Drivers

• Revenue Potential

FINANCIAL PERFORMANCE

& CAPITAL ALLOCATION

• September Quarter Financial Results

• Operating Leverage & Cash Generation

• Consistent & Meaningful Shareholder Returns

3

CATALYSTS FOR OUTPERFORMANCE

NASDAQ: KLIC

EXCELLENT

VALUE

~8X Ex-cash PE,

2.3% Dividend Yield*

Leadership Positions

Highly-Relevant Served

Markets

POSITIONED

FOR GROWTH

New Market Entry &

Expansion

10% Organic Revenue

CAGR

Organizational Change

GOOD STEWARDS

OF CAPITAL

Aggressive Share

Repurchases

Track Record of M&A

R&D Pipeline

*Nov 12, 2018 valuation, based on non-gaap FY18 earnings, excludes cash and cash equivalents of $614.1M & related interest income

4

K&S DRIVES SHAREHOLDER VALUE

POSITIONED TO OUTPERFORM

Historic

Positioning &

Leadership

Value

Enhancement

R&D

Investments

Business

Optimization

Prudent

Capital

Deployment

Expanding

Portfolio &

Competencies

Served Available Market

Executing on Market Share and Market

Expansion Initiatives

NASDAQ: KLIC

PO

TE

NT

IAL

K&S Market Opportunity &

Revenue Potential

$1.9B

2016

$627M

$2.4B

2018

$889M

$2.7B

2021F

RE

VE

NU

E

5

LEADERSHIP & CORPORATE STRATEGY

6

LEADERSHIP & STRATEGY OVERVIEW

NASDAQ: KLIC

*NON-GAAP EPS ILLUSTRATED AND INTRODUCED IN FY ‘18.

FUSEN E. CHEN, PRESIDENT & CHIEF EXECUTIVE OFFICER

Appointed President & CEO on October 31, 2016, prior to joining K&S:

• Proven Industry Veteran with history in large front-end peers

• Delivered strong financial results through focused leadership

• Consistent track record of business execution and shareholder value creation

OUR STRATEGY FOR SHAREHOLDER VALUE CREATION

(1) Business Optimization

Generate greater cash flow from existing business

(2) Strategic Positioning

Build durable, long-term competitive positions

(3) Capital Allocation

Deploy capital to amplify shareholder returns

Consistent PerformanceRevenue, EPS

7

BUSINESS OPTIMIZATION

MAXIMIZING CURRENT OPPORTUNITIES

ENHANCING NEW MARKET EXECUTION

TACTICAL

Targeting 30% recurring revenue over the next 3 years

• Reprioritizing recurring income stream of sizeable install

base

• Sales Organization is P&L responsible for APS segment

performance

Pursuing Adjacent Market Opportunities

• Sizeable adjacent opportunities in back-end packaging

• Fully leveraging potential of R&D team

• LED sales increased 3X in 2017

NASDAQ: KLIC

ORGANIZATIONAL

Accountability & Empowerment

• “Capital Equipment” and “Aftermarket Products &

Services” (APS) segmentation introduced

• Further enhances ownership and accountability

of projects and results

• R&D decentralized and largely reports through

business unit general management

8

STRATEGIC POSITIONING: VALUE DRIVERS

RESEARCH

&

DEVELOPMENT

SUPPLY CHAIN &

OPERATIONS

SALES

& DISTRIBUTION

More than 300

Patents issued

worldwide

Global R&D

headcount

exceeds 450

FY2018 R&D

Investments

of $120M

Large scale

operations in

Singapore and

Suzhou, CN

>40,000 Cumulative Wire

Bonders Sold Since FY13 … High Volume,

Low Mix Platform

Drives Operational

Leverage

>80% of Sales

through Direct

Channels since FY13

Global team of more than 350 Sales &

Customer Support personnel

strategically located

NASDAQ: KLIC9

STRATEGIC POSITIONING: INDUSTRY LANDSCAPE

LEVERAGING SIZEABLE MARKET POSITIONS TO CAPTURE SECULAR

GROWTH OPPORTUNITIES & INCREMENTAL SHARE GAINSSOURCE(S): VLSI RESEARCH, JAN. 2018; INTERNAL K&S FORECAST

SEMICONDUCTOR

ASSEMBLY & TEST

Chip assembly & test

ELECTRONICS

ASSEMBLY (“EA”)

Electronic device assembly

Back-End Assembly

2017

TAM

Back-End

Lithography

Lithography

Wafer Inspection

Die Inspection

Package

Inspection

Back-End

Metrology

Metrology &

Inspection

Blade Dicing

Laser Dicing

Plasma Dicing

Backside Grinding

Mounting

Dicing

Die Attach

Wire Bond

Flip Chip /

Mass Reflow

Advanced

Packaging

Bonding

Molding & Sealing

Finishing & Marking

Package Inspection

Packaging

Screen Printing

Component

Placement

Reflow &

Inspection

EA

$5B

K&S Solutions

Adjacencies

2017 TAM

$4B

$1B

SEMICONDUCTOR

FABRICATION

Chip design & wafer fab

$9B$47B

NASDAQ: KLIC10

MARKET TRENDS & OPPORTUNITIES

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MARKET OVERVIEW: EXPOSED TO MEGA-TRENDS

FY 2018 REVENUE MIX

(APPROXIMATION)

TECHNOLOGY MEGA-TRENDS

DRIVING OUR BUSINESS

INTERNET OF THINGS

SENSORS

DUAL CAMERA / 3D

SENSING

LED

CRYPTO

ENABLING CAPACITY AND CAPABILITY FOR THE GLOBAL SEMICONDUCTOR VALUE CHAIN

HIGH PERFORMANCE

COMPUTING

ARTIFICIAL

INTELLIGENCE

AR / VR

3D MEMORY

MICRO LED

HYBRID / ELECTRIC

VEHICLES

AUTONOMOUS

VEHICLES

POWER STORAGE &

DELIVERY

INFOTAINMENT

SYSTEMS

NASDAQ: KLIC

INSTALLED BASE

>90,000 TOOLS

LEADERSHIP

POSITIONS

>2,500 DISTINCT

CUSTOMER

FACILITIES

PARALLEL

DEVELOPMENT

INITIATIVES

Ge

ne

ral

Se

mic

on

du

cto

r

Advanced

Packaging

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Forecast

MS Windows

Introduced

IBM Releases

“Acorn” PC,

Commodore 64

Released

HTML

Developed

Amazon Formed

Google Purchases

Android

First IPhone

Released

Smartphones Surpass

PC Sales

PERSONAL COMPUTING & INTERNET

SMARTPHONE

CONNECTED

Amazon Echo

Released

Google Home

Released

Google Incorporated

40 Years of Insatiable Semiconductor Demand (Billions of Semiconductor Units)

GENERAL SEMI: BROAD-BASED DEMAND

SOURCE(S): VLSI RESEARCH, AUGUST 2018

NASDAQ: KLIC

20221982 2018

UNIT GROWTH TO ACCELERATE THROUGH FORECAST PERIOD

Apple Watch

Released

3D Sensing

Introduced

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AP: VALUE CHAIN SHIFTING TO BACK-END

SOURCE(S): INTERNATIONAL BUSINESS STRATEGIES, INC.

• Lithography – Higher resolutions permitting higher interconnect bandwidth

• Dicing – Ultra-thin wafers and higher specifications

• Bonding – Higher accuracy & density, new bonding technologies and multi-die

packages

• Electronics Assembly – Smaller components with closer placement requirements

WHILE NODE SHRINK IS

STILL BEING DRIVEN…

INDUSTRY IS PURSUING WAYS TO DENSITY THROUGH

ADVANCED PACKAGING “MORE THAN MOORE”

• Cost benefits have largely disappeared

• Leading Node adoption limited to

performance applications

Physical challenges

of Node Shrink are

driving new industry

solutions

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

90nm 65nm 45/40nm 28nm 20nm 16/14nm 10/7nm

$USD per 100M Gates

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CONNECTED DEVICESTO OUTNUMBER SMARTPHONES 7:1

NASDAQ: KLIC

0

5

10

15

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

BILLIONS SOLD ANNUALLY

Connected Devices

Smartphones

GROWING BASE OF LOW-COST, CONNECTED DEVICES RELY HEAVILY ON CORE K&S PRODUCTS

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ONGOING OPPORTUNITYLED GLOBAL ADOPTION AND CAPACITY

NASDAQ: KLIC

FASTEST GROWING MARKET LED REPRESENTS APPROXIMATELY 11% OF TOTAL FY’18 REVENUE

REDUCTION IN LED COST PER LUMEN, VS 2013

5X2020

33X2030

K&S POSITION

• Shipped first dedicated LED solution in 2009

• Gaining share, in growing market

• Sizeable positions with key Customers

LED OVERVIEW

• Global adoption of general lighting:

• Energy mandates

• Ongoing reduction in Cost per Lumen

• Continues to be a major technology replacement market

• No close alternatives exist, although new opportunities in micro-LED

16

AUTOMOTIVE EVOLVING OPPORTUNITIES

SOURCE(S): GARTNER, MAY 2017; YOLE DÉVELOPPEMENT, 2016

SEMI-CONTENT PER AUTO TO INCREASE, K&S MAINTAINS STRONG RELATIONSHIPS

Electric Vehicles (EVs) In Use(Millions of Units)

2016 Estimate 2021 Forecast

145

362

Annual Automotive Sensor/Camera Demand(Millions of Units)

2016 2021

21% CAGR22% CAGR

• EV to outpace traditional Auto

• Driving new power management applications

• EV growth to trigger infrastructure build-outs

• Increasing High Reliability

• Increasing Infotainment

• Higher-bandwidth processing required

NASDAQ: KLIC17

FY 2017

General

Semiconductor &

LED

Advanced

Packaging

Automotive &

Industrial

SUMMARY OF MARKET OPPORTUNITIESWELL POSITIONED TO CAPTURE GROWTH

K&S Illustrative Organic Revenue Potential(Values in Millions of USD)

FY 2021

$809

PO

TE

NT

IAL

NASDAQ: KLIC

REVENUE GROWTH EXPECTED TO DELIVER MEANINGFULNET INCOME & EPS FALL-THROUGH & FCF GENERATION

Sizeable net cash

position also

provides inorganic

growth opportunities

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FINANCIALS & CAPITAL ALLOCATION

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SEPTEMBER QUARTER FISCAL YEAR 2018 RESULTS

DEC QUARTER REVENUE GUIDANCE BETWEEN $150M – $160M THIS MIDPOINT EXCEEDS 4 OF THE 5 PRIOR DECEMBER QUARTERS

Fiscal Q4 2018Change vs.

Fiscal Q4 2017

Change vs.

Fiscal Q3 2018

Net Revenue $184.8 million down 14.4% down 31.3%

Gross Profit $85.8 million down 20.1% down 32.4%

Gross Margin 46.4% down 330 bps down 80 bps

Income from Operations $24.6 million down 41.1% down 61.9%

Operating Margin 13.3% down 610 bps down 1070 bps

Net Income $29.6 million down 28.2% down 50.9%

Net Margin 16.0% down 310 bps down 640 bps

EPS – Diluted $0.43 down 24.6% down 50.0%

NASDAQ: KLIC

Quarterly Results – U.S. GAAP

Quarterly Results – Non-GAAP1

Fiscal Q4 2018Change vs.

Fiscal Q4 2017

Change vs.

Fiscal Q3 2018

Income from Operations $27.2 million down 40.0% down 59.0%

Operating Margin 14.7% down 630 bps down 1000 bps

Net Income $31.2 million down 30.2% down 49.9%

Net Margin 16.9% down 380 bps down 630 bps

EPS - Diluted $0.45 down 27.4% down 49.4%

1SEE APPENDIX FOR A RECONCILIATION OF THE GAAP AND NON-GAAP ADJUSTED RESULTS

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CONTINUED THROUGH-CYCLE PERFORMANCE

NASDAQ: KLIC

FY 2018 Highlights:

• Revenue of $889

• 46.1% Gross Margins

• $2.43 of Non-Gaap EPS

• $91.1M of Shares Repurchased

Growing R&D Investments Drive Market

Expansion and Enhance Revenue

Quality

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HIGHLY SCALABLE OPERATING MODEL

MEANINGFUL GROWTH OPPORTUNITIES GENERATE

STRONG FALL-THROUGH & SHAREHOLDER VALUE

NASDAQ: KLIC

Non-GAAP Results &

Target

Fiscal 2017

Results

Fiscal 2021

Target Model

Revenue $809 $1,150M - $1,225M

Gross Margin 47% 49% - 51%

Operating Income $159M $280M - $330M

Operating Margin 20% 24% - 27%

Operating Income Per Share $2.20 $4.00 - $4.75

Assumptions: GDP Growth: 3% Semi Unit growth of 6-8%

9-11% TOP-LINE GROWTH

400 – 700 BASIS POINT IMPROVEMENT

200 – 400 BASIS POINT IMPROVEMENT

85% – 115% IMPROVEMENT

1EPS assumes 69 million shares outstanding in 202122017 Non-GAAP adjustments exclude goodwill impairment of $35.2M, restructuring of $3.8M and amortization of intangibles of $6.6M

2021 Non-GAAP target model excludes $8M of amortization of intangibles

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STRONG CASH FLOW & BALANCE SHEET

1FREE CASH FLOW DEFINED AS: OPERATING CASH FLOW LESS CAPITAL EXPENDITURES

NASDAQ: KLIC

SEP QTR NET CASH & INVESTMENTS OF $614M, $8.94 PER SHARE

TOTAL FY’18 SHAREHOLDER RETURNS OF $99M

Net Cash Position & TTM Free-Cash-Flow1 Generation(Values in Millions of USD)

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CAPITAL ALLOCATION STRATEGY

NASDAQ: KLIC

DRIVE R&D INNOVATIONS

ENHANCE OPERATIONAL

EFFICIENCY

SUPPORT EXTENDIBILITY WITH

EXISTING PLATFORMS

REINVEST IN THE

BUSINESS

#1 ACQUISITIONS &

PARTNERSHIPS

#2 RETURN CASH TO

SHAREHOLDERS

#3

ROUGHLY $175M OF SHARES

REPURCHASED

THROUGH JUNE 2018

REPURCHASING SHARES

BELOW INTRINSIC VALUE

JULY ‘18 $0.12 QUARTERLY

DIVIDEND INITIATION

STRONG PIPELINE OF

OPPORTUNITIES

PARTNERSHIPS &

JOINT VENTURES

M&A

REPURCHASED OVER 15% OF SHARES OUTSTANDING IN RECENT YEARS

INITIATED QUARTERLY DIVIDEND OF $0.12/SHARE IN JUNE 2018

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SUSTAINABLELONG-TERM VALUE

MARKET

LEADERS

GOOD

STEWARDS OF

CAPITAL

STRONG

OPERATIONAL

LEVERAGE

HIGH GROWTH

TRENDS

NASDAQ: KLIC

SUMMARY: FOCUSED ON LONG-TERM VALUE CREATION

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SUPPLEMENTAL INFORMATION

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NASDAQ: KLIC

In addition to U.S. GAAP results, this presentation also contains non-GAAP financial results. The Company's non-GAAP results

exclude amortization related to intangible assets acquired through business combinations, goodwill impairment, costs associated with

restructuring, income tax expense related to the Tax Cuts and Jobs Act of 2017 as well as tax benefits or expense associated with the

foregoing non-GAAP items. These non-GAAP measures are consistent with the way management analyzes and assesses the

Company’s operating results. The Company believes these non-GAAP measures enhance investors’ understanding of the

Company’s underlying operational performance, as well as their ability to compare the Company’s period-to-period financial results

and the Company’s overall performance to that of its competitors.

Management uses both U.S. GAAP metrics as well as non-GAAP operating income, operating margin, net income, net margin and net

income per diluted share to evaluate the Company's operating and financial results. Non-GAAP financial measures may not provide

information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the

industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures

because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial

measures used by other companies and exclude expenses that may have a material impact on the Company’s reported financial

results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information.

The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the

investment community when analyzing business trends, providing meaningful comparisons with prior period performance and

enhancing investors' ability to view the Company's results from management's perspective.

APPENDIX: GAAP TO NON-GAAPRECONCILIATION

27

NASDAQ: KLIC

APPENDIX: GAAP TO NON-GAAPRECONCILIATION

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