SÜSS MicroTec SE

Investor Presentation • Nov 10, 2020

Q3 / 9M 2020 FIGURES QUARTERLY REPORT

November 10, 2020

This presentation contains forward-looking statements relating to the business, financial performance and earnings of SUSS MicroTec SE and its subsidiaries and associates. Forward-looking 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.

HIGHLIGHTS

Q3

• Solid order entry of € 44.1M
• Sales of € 60.6M
• Positive EBIT with € 9.0M and EBIT margin of € 14.9%
• Extraordinary EBIT contribution from one written-off Scanner with € 0.9M

9M

• Orders of € 206.7M
• Sales of € 173.9M
• Positive EBIT with € 12.2M and EBIT margin of € 7.0%

Industry

Increased activity in broad band communication segment (5G)

COVID 19 Pandemic

• Little impact so far
• Uncertainty remains high

KEY GROUP FIGURES Q3 2020 / 9M 2020

in € M	Q3/2020	Q3/2019	Change	9M/2020	9M/2019	Change
Order entry	44.1	66.0	-33.2%	206.7	157.8	31.0%
Sales	60.6	37.1	63.3%	173.9	131.1	32.6%
EBIT	9.0	-4.9	---	12.2	-5.7	---
EBIT margin	14.9%	-13.2%	28.1% points	7.0%	-4.3%	11.4% points
EAT	4.5	-6.8	---	4.9	-8.7	---
EPS in €	0.24	-0.36	---	0.26	-0.46	---
Free cash flow (in €)	10.6	-9.8	---	27.8	-28.7	---
Net cash	---	---	---	15.0	-6.6	---
Employees 30/9	---	---	---	997	935	6,6%

• Strong 9M order entry, however Q3 OE is normalizing after a very strong OE in second quarter

• • Strong sales growth (Q3 / 9M) combined with a better GP margin resulted in a significantly improved EBIT (including closing cost of € 4M)
• • Free cash flow significantly improved to € +27.8M
• • Net cash position is positive with € 15M

ORDER ENTRY

ORDER ENTRY: SPLIT PER SEGMENT

ORDER ENTRY 9M: SPLIT PER REGION (in € M)

Comments:

• • Overall the order entry level increased over the last years to an average of around and above € 60M
• • Order entry in Q2 includes a high volume Lithography order
• • Increase in order entry for Bonders and Photomask Equipment expected in Q4 2020
• • Order entry in Q4 expected to be higher than in Q3
• • Increasing demand from Chinese customers continues

SEGMENT OVERVIEW 9M

Lithography				Photomask Equipment
in € M	9m 2020		9m 2019		in € M	9m 2020		9m 2019
Sales	97.8		72.4		Sales	40.0		24.6
GP (margin)	29.7	(30.4%)	16.1	(22.2%)	GP (margin)	16.7	(41.8%)	9.2	(37.4%)
EBIT (margin)	6.2	(6.3%)	-8.1	(-11.2%)	EBIT (margin)	11.0	(27.5%)	4.4	(17.9%)

• Higher sales from mask aligners and coaters due to high volume orders from two major customers

• Increased GP margin due to producivity gains

• Closing cost Corona € 5M partly offset by sale of a written-off Scanner

• Strong sales increase

• Improved GP margin contribution and better fix cost coverage have a positive impact on EBIT / EBIT margin

Bonder				Microoptics
in € M	9m 2020		9m 2019		in € M	9m 2020		9m 2019
Sales	18.9		17.2		Sales	16.8		16.2
GP (margin)	5.6	(29.6%)	5.9	34.3 %	GP (margin)	4.9	(29.2%)	6.6	(40.7%)
EBIT (margin)	-0.6	(-3.2%)	-0.7	(-4.1%)	EBIT (margin)	0.3	(1.8%)	2.7	(16.7%)

• Slight sales increase

• • Despite lower GP contribution EBIT loss could be improved to due lower opex
• • Further reduction of EBIT loss in Q4 expected
• • Sales and GP impacted by Covid-19 (two months shortime work) lower demand from automotive OEMs
• • Additional costs due to quality problems with one key supplier
• • FX losses due to strong CHF

BALANCE SHEET

Assets			Liabilities & Shareholder's Equity
in € thousand	30.9.2020	31.12.2019	in € thousand	30.9.2020	31.12.2019
NON-CURRENT ASSETS	66.577	55.109	Equity	129.735	125.388
CURRENT ASSETS	155.581	144.789	NON-CURRENT LIABILITIES	35.117	24.468
Inventories	84.555	75.047	Financial debt	9.375	10.500
Trades receivables	13.941	18.992	Other	25.742	13.968
Contract assets	25.706	31.182	CURRENT LIABILITIES	57.306	50.042
Cash	25.637	10.280	Financial debt	1.295	10.399
Other	5.742	9.288	Trades payables	10.962	10.013
			Contract liabilities	23.834	9.346
			Other	21.215	20.284
TOTAL ASSETS	222.158	199.898	TOTAL LIABILITIES/EQUITY	222.158	199.898

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

CASH FLOW – STRONG IMPROVEMENT OF FREE CASH FLOW

Comments:

• • Operative CF improved due to
• • better profitability,
• • higher customer deposits and
• • improved working capital management
• • Investments went up to € 8.5M (includes € 3.3M for Pixdro)
• • Cash drawing under syndicated loan facility (€ 40M) fully repaid
• • Financial headroom: € 55M

MARKET ESTIMATES

• Positive market outlook but impacted by COVID-19 uncertainties
• Economic development not easy to forecast
• Uncertain outlook with respect to US/China trade barriers

But:

• Clear signal for need to invest in broadband communication systems
• Significant increase in demand from telecom market
• Future demand driven by emerging technologies like 5G, IoT, high-performance computing, augmented reality, artificial intelligence, autonomous driving etc.
• Customers still pushing for shorter delivery times

GUIDANCE

• Expected Order entry for Q4/2020 and Q1/2021 will be between € 100-110M
• Sales guidance unchanged € 240 to 260M
• Guidance for EBIT Margin increased from 3% 5 % to 5.5% 7.5%

SUSS MicroTec SE | Schleissheimer Str. 90 | 85748 Garching | www.suss.com