SÜSS MicroTec SE

Investor Presentation • Apr 9, 2021

SUSS MICROTEC ANNUAL FIGURES FOR FISCAL YEAR 2020

April 9, 2021

This presentation contains forward-looking statements relating to the business, financial performance and earnings of SUSS MicroTec SE and its subsidiaries and associates. Forwardlooking statements are based on current plans, estimates, projections and expectations and are therefore subject to risks and uncertainties, most of which are difficult to estimate and which in general are beyond the control of SUSS MicroTec SE. Consequently, actual developments as well as actual earnings and performance may differ materially from those which explicitly or implicitly assumed in the forward-looking statements. SUSS MicroTec SE does not intend or accept any obligation to publish updates of these forward-looking statements.

FINANCIAL YEAR AT A GLANCE

• Order entry increased by more than 28% yoy
• Sales went up by more than 17% yoy
• Strongly improved GP- and EBIT-margins yoy
• Free Cashflow and net cash rose considerably yoy
• Good business in all segments except Microoptics
• Acquisition of PiXDRO ink-jet-coating technology (closing 31 Mar 20)
• Start of coater production at new site in Taiwan first 2 coaters shipped in Dec 20

Restart of scanner production at new site in Taiwan (planed for 2021) due to strong demand

KEY GROUP FIGURES 2020

in € M	FY 2020	FY 2019	Change	Q4 2020	Q4 2019	Change
Order entry	281.1	219.3	+28.2%	74.4	61.4	+21.2%
Order Backlog	120.1	93.2	+28.9%	--	--	--
Sales	252.1	213.8	+17.9%	78.2	82.7	-5.4%
EBIT	20.4	-13.8	--	8.3	-8.1	--
EBIT margin	8.1%	-6.5%	+14.6%pts	11.2%	-9.8%	21.0%pts
EAT	12.4	-16.3	--	7.9	-7.6	--
EPS in €	0.65	-0.85	--	0.41	-0.39	--
Free cash flow (in €)	44.0	-36.9	--	16.2	-8.2	--
Net cash	20.3	-18.0	--	--	--	--
ROCE	12.9%	-8.7%	+21.6%pts	--	--	--
Employees 12/31	1,009	937	+7.7%	--	--	--

• Strong order entry throughout the whole fiscal year 2020 (and also Q1 2021 as already reported)

• Sales growth combined with a better GP margin resulted in a significantly improved EBIT (including closing cost of € 2.6M)

• Free cash flow significantly improved to € 44.0M

• Net cash position is positive with € 20.3M

ORDER ENTRY AND SALES BY REGION

Comments:

• • Overall the order entry level increased over the last years to an quarterly average of € 70M
• • Order entry in Q2 2020 and Q1 2021 include high volume orders
• • Increasing demand from Chinese customers continues
• • Advanced packing applications and 5G are the main business drivers
• • OE outlook remains strong

ORDER ENTRY FY 2020: SPLIT PER REGION SALES FY 2020: SPLIT PER REGION

SEGMENT OVERVIEW FY 2020

Lithography					Photomask	Equipment
in € M	FY 2020		FY 2019		in € M	FY 2020		FY 2019
Sales	141.4		117.3		Sales	57.7		46.4
GP (margin)	43.8	(31.0%)	14.8	(12.6%)	GP (margin)	23.1	(40.0%)	16.6	(35.8%)
EBIT (margin)	9.0	(6.4%)	-19.3	(-16.5%)	EBIT (margin)	15.3	(26.5%)	9.8	(21.1%)

+ Special effect (scanner business) on EBIT: € -2.6M (prior year: € -14.2M)

• Sales increase esp. with coaters/developers for 300mm applications

• • AdP and 5G are the main business drivers
• • Improved GP margin due better capacity utilization and good margin Mask Aligner and Coater sales

• Sales contribution from SMT NL/ Pixdro (acquired early 2020): € 4M

onde
------	--

in € M	FY 2020		FY 2019		in € M	FY 2020		FY 2019
Sales	30.4		26.4		Sales	21.5		22.6
GP (margin)	9.3	(30.6%)	8.7	(32.8%)	GP (margin)	5.8	(27.0%)	8.1
EBIT (margin)	0.4	1.3%	-0.3	-1.1%	EBIT (margin)	0.0	(0.0%)	2.2

• Sales increase due to higher demand for temporary bonders

• • GP margin decreased because of additional construction costs for one machine
• • Improved EBIT due to close monitoring of administration and sales costs

+	Strong sales increase due to high demand for EUV-cleaning
---	-----------------------------------------------------------	--	--	--	--	--	--	--	--

• GP margin and EBIT margin can be influenced by single customer orders

Bonder					Microoptics
in € M	FY 2020		FY 2019		in € M	FY 2020		FY 2019
Sales	30.4		26.4		Sales	21.5		22.6
GP (margin)	9.3	(30.6%)	8.7	(32.8%)	GP (margin)	5.8	(27.0%)	8.1	(35.7%)
EBIT (margin)	0.4	1.3%	-0.3	-1.1%	EBIT (margin)	0.0	(0.0%)	2.2	(9.7%)

• Sales and GP impacted by Covid-19 (two months shorttime work) lower demand from automotive OEMs

• Additional costs due to new cleanroom facility and quality problems with one key supplier

MAIN BALANCE SHEET ITEMS

Assets

in € thousand	FY 2020	FY 2019
NON-CURRENT ASSETS	65,398	55,109
CURRENT ASSETS	166,007	144,789
Inventories	72,983	75,047
Trades receivables	17,717	18,992
Contract assets	30,247	31,182
Cash	40,827	10,280
Other	4,233	9,288
TOTAL ASSETS	231,405	199,898

Total assets increased by 15,8% due to higher investments in fixed assets, acquisition of inkjet business and higher cash position

Increased cash position due to higher customer down payments and better working capital management

Liabilities & Shareholder's Equity
in € thousand	FY 2020	FY 2019
Equity	136,504	125,388
NON-CURRENT LIABILITIES	32,563	24,468
Pensions	6,396	6,037
Financial debt - banks	9,062	10,500
Financial debt - lease	7,656	4,638
Other	9,449	3,293
CURRENT LIABILITIES	62,338	50,042
Financial debt - banks	1,386	10,399
Financial debt - lease	2,387	2,751
Trades payables	9,834	10,013
Contract liabilities	25,679	9,346
Other	23,052	17,533
TOTAL LIABILITIES/EQUITY	231,405	199,898

Equity increased by 8,9% to 135M€ (equity ratio: 59%)

Banks debts decreased; cash drawings under Synloan fully repaid

Increase in lease liabilities due to prolongation of rental agreements

Contract liablities increased to 25.7M € due to high order intake and customer down payments

CASH FLOW – STRONG IMPROVEMENT OF FREE CASH FLOW

-30.8 55.2 -40 -30 -20 -10 0 10 20 30 40 50 60 FY 2019 FY 2020 In € M Cash Flow Operating Activities + € 86M

6.1 11.2 0 2 4 6 8 10 12 FY 2019 FY 2020 In € M Investing Activities + € 5M

Comments:

• • Operative CF improved due to
• • better profitability,
• • higher customer deposits and
• • improved working capital management (lower inventories and lower overdue accounts receivables)
• • Investments went up to € 11.2M (includes € 3.3M for Pixdro)
• • Strong improvement of FCF and Net Cash
• • Cash drawing from previous year under syndicated loan facility fully repaid in 2020 (€ 9.5M)
• • Financial headroom: € 80.8M (thereof undrawn syndicated loan of € 40M)

SUSS MicroTec SE – Investor Presentation 7

2019: € -14.2M one-off write-offs

• 2020: € -2.6M (net) closure costs
• Reversals/special write-downs on assets (€ 2.1M) / 4 Scanners have been sold in 2020 to a major customer

STRATEGIC DECISION: RESTART SCANNER PRODUCTION IN ASIA

• Closure costs included in the cost of sales (€ -2.2M)
• Closure costs included in OPEX (€ -2.5M)

in Corona, USA, due to weak market outlook

2021:

2020:

Negative effects:

Restart production of scanners in Taiwan

Strongly increased demand due to strong USP for large packages, exceeding the typical step field size

Discontinuation of product lines stepper/scanner & laser tools at Suss MicroTec Photonic Systems

• First order received and growing interest from other customers
• Long term pricing agreement for next 40 systems with main customer
• Production site in Taiwan will be co-shared with Coaters,
• Investment need for production ramp-up below € 2M

MARKET ESTIMATES AND LONGER TERM OUTLOOK

• Very high market activity continuously strong order entry numbers expected
• Some uncertainties remain due to COVID-19 pandemic and US/China trade barriers
• ZVEI expects semiconductor market to grow by 8-10% in 2021 to € 480M
• Semiconductor equipment market expected to grow by 4.3% in 2021 and 5.8% in 2022 (SEMI)
• Mega Trends fully intact: Future demand driven by emerging technologies like 5G, IoT, high-perform. computing, augmented reality, artificial intelligence, autonomous driving etc.
• New Technologies from SUSS will be introduced in 2021
• First production tool orders for Permanent Fusion Bonding received, significant market potential
• UV-Scanner Gen-3: 1. shipment out of new manufacturing site in Taiwan: QY3/2021, strong demand!
• New 300 mm Coater Platform: increased productivity, reduced foot print: 1. shipment QY2/2021
• Fully automated high volume Imprint Cluster: 1. shipment QY3/2021
• New Microoptics Fab in Neuchatel coming online in QY3/2021

Significant growth potential for the next years based on current technologies