FOURTH QUARTER EARNINGS PRESENTATION February 6, 2026 George R. Aylward President and Chief Executive Officer Michael A. Angerthal Executive Vice President and Chief Financial Officer IMPORTANT DISCLOSURES This presentation contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act ...

Core Viewpoint - Kulicke and Soffa Industries, Inc. reported its financial results for the first fiscal quarter of 2026, showing a net revenue of $199.6 million and a net income of $16.8 million, with a focus on expanding market reach and supporting customer capacity requirements [1][3]. Financial Results - The first quarter net revenue was $199.6 million, an increase from $166.1 million in Q1 2025 and $177.6 million in Q4 2025 [2]. - GAAP diluted EPS for Q1 2026 was $0.32, down from $1.51 in Q1 2025 and up from $0.12 in Q4 2025 [2]. - Non-GAAP diluted EPS for Q1 2026 was $0.44, compared to $0.37 in Q1 2025 and $0.28 in Q4 2025 [2]. Operational Highlights - The gross margin for Q1 2026 was reported at 49.6% [9]. - The company experienced a GAAP cash flow from operations of $(8.9) million and an adjusted free cash flow of $(11.6) million [9]. - The company repurchased 0.2 million shares of common stock at a cost of $6.7 million [9]. Future Outlook - Kulicke and Soffa expects net revenue for the second quarter of fiscal 2026 to be approximately $230 million, with GAAP diluted EPS projected at approximately $0.53 and non-GAAP diluted EPS at approximately $0.67 [5][23]. Strategic Positioning - The interim CEO emphasized the company's commitment to broadening market reach and supporting higher near-term capacity requirements through investments in Power Semiconductor, Advanced Dispense, and Advanced Packaging technologies [3]. Company Overview - Kulicke and Soffa is a global leader in semiconductor assembly technology, focusing on enhancing device performance across various markets including automotive, compute, industrial, memory, and communications [12].

Assets Under Management (AUM) and Flows - AUM reached $169.3 billion, while average AUM increased by 2% to $170.3 billion[12] - Sales increased by 12% to $6.3 billion, driven by institutional clients, including a new CLO, and ETFs[12] - Net outflows amounted to ($3.9) billion due to equity outflows, although fixed income and alternative net flows were positive[12] - ETF AUM increased by 29% to $4.7 billion, marking the highest level of quarterly sales and net flows[12, 15] Financial Performance - Adjusted operating income increased by 9% to $65.0 million due to higher revenues and flat operating expenses[12] - Adjusted operating margin increased by 170 bps to 33.0%[12, 30] - Adjusted earnings per diluted share increased by 7% to $6.69, including $0.11 of discrete business initiative expenses[12, 32] - Investment management fees, as adjusted, increased 3% primarily due to higher average AUM[22] Capital Activities and Balance Sheet - The quarterly dividend increased by 7% to $2.40 per share, representing the eighth consecutive annual increase[12, 35] - A new $400 million term loan and a $250 million revolving credit facility refinanced the credit agreement[12, 35] - Modest net leverage of 0.1x EBITDA[12, 33] Investment Performance - Total AUM outperforming benchmark is 27% for 1-Year, 37% for 3-Year, 34% for 5-Year, and 69% for 10-Year[37] - Mutual Fund AUM Outperforming Peers is 56% for 1-Year, 57% for 3-Year, 54% for 5-Year, and 75% for 10-Year[38]

Assets Under Management (AUM) - AUM decreased to $1675 billion from $1750 billion due to negative market performance and net outflows[12,14] - Average AUM decreased by 5% to $1736 billion[12] - Market performance led to a decrease of $41 billion in AUM[17] - Net outflows contributed to a decrease of $30 billion in AUM[17] Sales and Net Flows - Sales amounted to $62 billion, compared to $64 billion in the prior period[12] - Net flows were ($30) billion, attributed to U S retail funds, institutional accounts, and retail separate accounts[12,19] - Institutional sales were $15 billion, compared to $16 billion in the prior period[21] - Institutional net flows were ($12) billion, compared to ($38) billion in the prior period[21] Financial Performance - Operating income, as adjusted, was $546 million, including $100 million of seasonal expenses[12] - Operating margin, as adjusted, was 276%, or 327% excluding seasonal expenses[12] - Earnings per diluted share, as adjusted, were $573, including seasonal expenses of $101 per share, and increased 6% over the prior-year period[12] - Investment management fees, as adjusted, decreased by 7% due to lower average AUM and lower performance fees[25] Capital Activities - The company repurchased 111200 shares for $200 million and net settled 35178 shares for $61 million[12] - Net debt was $1000 million, or 03x EBITDA[12]