Investor Presentation June Quarter 2015

Safe Harbor Statement

In addition to historical statements, this presentation and oral statements made in connection with it may

contain 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 revenue and potential size of the markets we serve. While these

forward-looking statements represent our judgments and current 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 customer orders already received may be postponed

or canceled, generally without charges; 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; 3rd party market forecasts don’t

materialize and the risk that replacement and incremental demand drivers do not increase demand for our

products; the risks of a slowdown of transition from gold to copper Wire Bonding by our customers and the

industry, the volatility in the demand for semiconductors and our products and services; 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; 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; and the factors

listed or discussed in Kulicke and Soffa Industries, Inc. 2014 Annual Report on Form 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) update or

alter its forward-looking statements whether as a result of new information, future events or otherwise.

2

Agenda

Company Overview

About Kulicke & Soffa

Product Portfolio

Market Drivers

End-Applications Served

Demand Drivers

Corporate Growth Execution

Leveraging our Competitive Strengths

Executing on Internal & External Growth Initiatives

Financial Performance & Summary

June Quarter Financial Results

3

Company Overview

About Kulicke & Soffa (K&S)

Rich history of technology leadership & innovation | Founded in 1951 – publicly traded since 1961 |

Listed on NASDAQ: KLIC | Leadership positions in markets served | Global presence with over 80% of

sales in Asia | 2,827 Employees as of June 27, 2015 | K&S continues to serve critical role in major

industry innovations & transitions

5

Kulicke & Soffa is the Global Technology & Market Leader in Semiconductor Packaging & Assembly Equipment

Global Transformation

6

Fundamental Transformation

Cultural Transformation

Vision To be the leading technology & service provider of advanced interconnect solutions Delight our Customers

People Matter

Innovate for Success

Learn, Grow, Excel

ONE K&S Core Values

Make a Difference

2004

Opened Suzhou

Facility

2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012

Moved Ball Bonder

Manufacturing to

Singapore

Moved Blades

Manufacturing

to Suzhou

Acquired

Alphasem

• Acquired

Orthodyne

• Moved

Capillaries to

Suzhou

Integrated Wedge

Bonding into

Operations

Moved HQ to

Singapore

• Completed HQ Move

to New Facility

• Initiated Share

Repurchase Program

2013

Initiated Advanced

Packaging

Development Effort

2014 2015

Acquired

Assembléon

Geographic Footprint

7

America Europe Asia US, Fort Washington (PA) Equipment R&D

Advanced Packaging R&D

US, Santa Ana (CA) Wedge Bonder R&D

Other Sales & Shared

Service Sites

Veldhoven, Netherlands Advanced Packaging, Advanced

SMT, R&D & Manufacturing

Switzerland, Berg Advanced Packaging Software &

R&D

Israel, Yokneam Bonding Tools & Manual Wire

Bonding R&D & Manufacturing

Singapore (Corporate HQ) Ball Bonder, Wedge Bonder, Wafer-Level

Bonder, Advanced Packaging, Advanced

SMT, R&D & Manufacturing

China, Suzhou Bonding Tools Manufacturing, Blades R&D

& Manufacturing, Software R&D

Market Leading Solutions

8

Asterion

7200 HD

7200 Plus

3700 Plus

3600 Plus

AT Premier

Plus

iBond5000

4700

4522

4524

4526

Wedge Bonder Ball Bonder

Software &

Service

Manual Wire

Bonder

IconnPS ConnXPS

PowerFusionPSTL

PowerFusionPSHL

PowerFusionPSHLx

Wafer Level

Bonder

Dicing Blades

Capillaries

Wedge Tools

Advanced

Packaging (Local & Mass Reflow)

APAMA

C2S

(Local) Advanced SMT

FLEXLINE

iFlex

HYBRID

(Mass)

Market Drivers

Serving Broad End-Applications

10

Markets Served

Consumer Devices

Communications

Data Processing

Automotive

Industrial

Aerospace

Medical

Semiconductor End-Applications

Smartphones, Tablets, Laptops,

Ultrabooks, Flash Memory,

Computers, Cameras,

Television Sets, Set-Top Boxes

Pacemakers, Hearing Aids

Safety Equipment, Sensors,

Automotive Electronics, Engine

Control Systems, Security

Systems

Servers, Controllers, Routers

LED End-Applications

Back Lighting & General Lighting

Vertical & Surface Mount

Indicator & High Bright

Automotive

LED Display

Automotive 113

Communications 180

Consumer 176 Data Processing

152

Industrial 122

Aerospace 9

CY 2014 Global Semiconductor Demand by Application (Billions of Units)

Semiconductor Unit Growth

Semiconductor unit growth continues to drive demand for K&S solutions | The 5% gap between unit &

revenue CAGR projections suggests cost will remain a significant value driver for the Semiconductor

Industry

11

Source(s): Gartner, Jun 2015

2015-19 CAGR Projections

Unit Revenue

Automotive 14% 6%

Communications 4% 3%

Consumer 2% 2%

Data Processing 3% 3%

Industrial 23% 10%

Aerospace 5% 2%

Total Market 9% 4%

Semiconductor Units are Expected

to Grow Faster than Revenue

K&S Solutions Serve the Industry’s Comprehensive

Interconnect Requirements

12

Component

K&S Solutions

Consumer devices continue to drive capacity requirements for K&S solutions | Comprehensive

advanced packaging solutions addressing Flip Chip (FC), WLP, FOWLP, Advanced PoP, SiP,

Embedded Die and Thermo-Compression (TC) | Internet-of-Things (IoT) is anticipated to drive the next

wave of semiconductor unit growth and ongoing demand for K&S solutions

Interconnect Process by Component – Smartphone Example

LED Ball Bonder, Wafer Level Bonder,

FC Bonder

Memory (DRAM, NAND) Ball Bonder, TC Bonder

Application Processor Ball Bonder, TC Bonder, FC Bonder

Power Management FC Bonder, FOWLP Bonder

Modem Ball Bonder, FC Bonder

Barometer, Accelerometer &

Gyroscope (MEMS) Ball Bonder, Wafer Level Bonder, FC

Bonder

Image Processor FC Bonder

Proximity/Light Sensor, CMOS

Image Sensor Ball Bonder, Wafer Level Bonder, FC Bonder

RF Transceiver FC Bonder, FOWLP Bonder

Voice Processor Ball Bonder, FC Bonder

Image courtesy of Chipworks (www.chipworks.com)

Advanced Packaging

• Flip Chip (Mass Reflow)

• Thermo- Compression (Local

Reflow)

• WLP, FOWLP, Advanced PoP,

SiP & Embedded Die

Advanced SMT

• Addresses downstream mfg.

processes

Semiconductor Production – A Key Growth Driver

13 Source(s): VLSI Research, Mar 2015

K&S meaningfully expanded served market through strategic organic and inorganic execution | Chip

complexity and greater chip integration present new growth opportunities | Technology shifts within

existing markets drives incremental equipment requirements | Close customer interaction and

focused R&D efforts enable K&S to capitalize on these trends

Bonding

Process

2015-19

Interconnect CAGR

Advanced

Packaging 15%

Wire Bond 10%

Global Semiconductor Interconnects

by Bonding Process

K&S Enters the Advanced

Packaging Market

1995

3 Trillion

2019

24T

2014

16 T

Wire Bonding

• Ball Bonding

• Wedge Bonding

• Wafer Level Bonding

New Growth Opportunity

Core Market

Corporate Growth Execution

Long-Term Value Creation Strategy

15

Technology Expertise

Established Leadership team

with extensive M&A & Industry

experience

Very active & ongoing deal

sourcing, diligence &

integration process

Employee KPIs closely aligned

with shareholder interests

Targeting Strategic

External Growth

Opportunities

Strong knowledge of Industry &

technology trends fuel new

product development

Aggressive ongoing organic

development effort focused on

Advanced Packaging

Value-added support & service

model strengthens recurring

revenue prospects

Actively Expanding

Served Market

Core business supported by

large install base & growing

semiconductor unit count

Frequent product releases

through continual R&D

investments

Continual business model

refinement to maximize

through-cycle performance

Enhancing Core Market

Leadership

Growth Strategy Supported on Solid Foundation

Operational Excellence

Proven Management | Flexible Operating Model | Robust Sales & Distribution Network | Financial Stability

Hig

h S

pe

ed

M

otio

n C

on

tro

l

Vis

ion

Syste

m

Ultra

so

nic

s

Ma

teria

l

Ha

nd

ling

Pa

cka

ge

De

ve

lop

me

nt

Cu BondersKits

Installed Base of K&S Copper Wire Bonders

2008 2014

Aggressive Execution of Multi-Faceted Corporate Strategy

Close customer interactions and R&D focus allows us to capitalize on technology shifts | Long-term

strategic action plan improves growth initiatives, evaluation, prioritization & execution | K&S continues

to demonstrate its ability to create sustainable & meaningful value

16 Source(s): Prismark, Jun 2015; Yole Developpement Apr 2015; Yole Developpement Mar 2015

12%

QFN Package Unit CAGR 2014-19

18%

MEMS Unit CAGR 2014-19

28%

FOWLP Unit CAGR 2014-19

Organic Business Development Execution Efficient Capital Allocation

$100 Million Share Repurchase Program

- Initiated on August 27, 2014 - 4.6 million shares repurchased to date - Efficiently supplements broader strategic

initiatives

Executing on External Growth Opportunities

17

Corporate Cultures of Technology & Market Leadership Serve Complementary Core Markets & Increase Offerings in High Growth Markets

Deploys Cash in Prudent, Efficient and Value-Creative Manner

Diversifies into Automotive, Industrial & Medical Markets with Advanced SMT

Expands Portfolio of Advanced Packaging Solutions

Kulicke & Soffa Acquires Assembléon in Accretive Transaction; Expands Presence in Advanced Packaging, Automotive and Industrial Segments SINGAPORE - Jan 12, 2015 - Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa", "K&S" or the "Company") today announced it has finalized the transaction to acquire a 100% equity stake of privately held Assembléon B.V. (Assembléon). The all-cash transaction, valued at approximately $98 million, closed on January 9, 2015. Assembléon, based in Veldhoven, the Netherlands, is a leading technology solutions provider that offers assembly equipment, processes and services for the automotive, industrial, and advanced packaging markets. Assembléon’s calendar 2014 revenue is currently anticipated to be approximately $90 million.

Technology Convergence Presents New Opportunities

18

QFN

BGA

Embedded Die

Ball Bonding

Wafer Level

Bonding

Thermo-

Compression

Technology

Capabilities

Other Leadframe

& Substrate

SiP

Current & Future PoP

Modules Stacked Memory

WLP & FOWLP

Flip Chip

Advanced SMT

Traditional

SMT

Semiconductor

Interconnect

Leading Edge

Component

Requirements

Passive & Active

Placement

High

Throughput

Panel-Based Architecture

Advanced

Packaging

LED MEMs

Accuracy Throughput

Process Capability

High Accuracy

LED

2.5D/3D

Wedge Bonding

SOC High

Accuracy

New Opportunities

Continually Examining Additive & Prudent Growth Opportunities

Strategically & Financially Compelling Transaction

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Stable & Diversified Revenue Base*

38% from Advanced Packaging

30% from Advanced SMT Segment

32% from Recurring Spare & Service Revenue

Attractive Valuation with Strategic Alignment Complementary Offerings Strengthens Product Portfolio

Longer Term Revenue CAGR expected to exceed 10%

Accretive in First Year

Sizable & Growing Markets Expands K&S Served Available Market by nearly

60% Providing Additional Opportunities for Growth

Increases Breadth of Offerings in Growing

Advanced Packaging Market

*Unaudited calendar 2014 estimates

Financial Performance & Summary

15.9 16.0 17.4

18.3

12.2

15.8 15.4

17.5

19.3

23.5 22.8

19.6

23.2

25.4

Mar'12

Jun'12

Sep'12

Dec'12

Mar'13

Jun'13

Sep'13

Dec'13

Mar'14

Jun'14

Sep'14

Dec'14

Mar'15

Jun'15

R&D ($M)

256 269

114 106

141 174

79

114

181 195

107

145 165

Jun'12

Sep'12

Dec'12

Mar'13

Jun'13

Sep'13

Dec'13

Mar'14

Jun'14

Sep'14

Dec'14

Mar'15

Jun'15

Revenue ($M) 29.9%

26.1%

3.7%

7.7%

13.4%

19.9%

-2.8%

8.9%

17.5% 19.3%

9.0% 6.7%

9.8%

Jun'12

Sep'12

Dec'12

Mar'13

Jun'13

Sep'13

Dec'13

Mar'14

Jun'14

Sep'14

Dec'14

Mar'15

Jun'15

Operating Margin

*Mar Qtr due to ongoing performance enhancement & favorable $3.0M Dec RISC grant adjustment;

Prototyping expenses related to Advanced Packaging investments drives higher R&D levels from Jun ‘14 onward

Continued Through-Cycle Performance

21

$164.6M of Revenue & $25.0M Net Income in

the June Quarter | Investments in R&D are

geared towards expanding the product

portfolio’s diversity & breadth | Market

leadership & operational flexibility allows K&S to

drive & meet industry demand

TTM: $612M TTM: 11.9%

TTM: $91M

*

Quarterly GAAP Results

Fiscal Q3 2015

Change vs.

Fiscal Q3 2014

Change vs.

Fiscal Q2 2015

Net Revenue $164.6 million down 8.8% up 13.4%

Gross Profit $77.6 million down 8.9% up 13.1%

Gross Margin 47.1% down 10 bps down 10 bps

Income from Operations $16.1 million down 49.1% up 64.3%

Operating Margin 9.8% down 770 bps up 310 bps

Net Income $25.0 million down 5.9% up 215.7%

Net Margin 15.2% up 50 bps up 970 bps

EPS – Diluted $0.33 down 2.9% up 230.0%

June Quarter FY 2015 Results

22

Operational Flexibility Drives Through-Cycle Performance

170 186

145 181

385

440

525

597 633

529

476

251 247

159

110 110

0 0 0 0 0 0

2007 2008 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15

$0

$100

$200

$300

$400

$500

$600

$700

Fiscal Year

Total Cash & Short Term Investments

Total Debt

Total Cash, Short-Term Investments & Debt Balance (Millions of US Dollars)

* Defined as: Accounts Receivable plus Inventory less Accounts Payable

** Reflects impact of Assembléon transaction

*** Reflects impact of Share Repurchases

Strong Balance Sheet & Cash Position

Completed Assembléon acquisition in January 2015 | Announced $100M share repurchase

authorization in August 2014 | Debt free as of June 2012 | $6.27 of cash & short-term investments &

$10.25 of book value per diluted share as of June 27, 2015

23

$202.8M Working Capital* as of Q3 FY15

Q3

FY 2015

Days Sales

Outstanding 94 days

Days Sales of

Inventory 81 days

Accounts Payable

Days 50 days

Cash Conversion 125 days

**

***

Executing Multi-Faceted Corporate Strategy - Strategy designed to strengthen core market leadership positions, expand served markets & execute on

internal & external growth initiatives

- Seeding process drives disruptive technology development while aligning resources to high-growth

segments

Creating Sustainable Value

- Successfully expanded SAM with meaningful new market penetration into high-growth segments

- Initiated a share repurchase program to return value to shareholders

- Ongoing examination of additive & prudent growth opportunities

Leveraging Resources Efficiently

- Engineering: 450+ engineers structured by competency, 80% focused on new product development

- Operations: Scalable & lean operating model with significant leverage, 300+ sales, service & support staff

- Financial: Debt free, $6.27 cash & short-term investments & $10.25 book value per diluted share

1

2

3

Summary – Long-Term Shareholder Value Creation

24