SUSS MICROTEC INVESTOR PRESENTATION
November 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.
I. Overview II. III. IV.
SUSS MICROTEC IS EVERYWHERE
SUSS MICROTEC IS EVERYWHERE
MEGATRENDS ARE DRIVING FUTURE TECHNOLOGY
ROADMAP OF ELECTRONIC MEGA TRENDS
FROM "MOORE'S LAW" (SCALING) TO "MORE THAN MOORE" (FUNCTIONAL INTEGRATION)
PACKAGING TECHNOLOGIES OVERVIEW MTM-APPLICATION
SPECIFIC REQUIREMENTS FOR THE MtM-MARKET
"More-than-Moore" Market Segment:
- Very diversified much lower volume per product design compared to FeoL
- Many customer have very specific process needs higher degree of customization
- Complex wafer architectures: Topography, warped wafers, complex material combinations, etc.
- High valued wafer to be handled! Most important: No wafer losses, Minimize yield loss
- Optimized process steps per application, tailored equipment per application needed
Consequences for SUSS:
- We need to have the best understanding of the application
- Reliability is key! Safety features and methods need to be applied and incorporated
- Metrology will become more important than in the past
- Traceability and Process Control using AI-SW-Packages
SUSS is offering:
- The widest range of equipment for "More than Moore" applications
- The best suited equipment for non-standardized processes
- High degree of customization as processes are different at each customer
- Equipment optimized for safest operation in 24/7 environments
- SUSS is known for reliability, efficiency and best-in-class performance
SEMICONDUCTOR PROCESS FLOW
1/10 of a percent yield improvement is real big money!
PROCESSING SUBSTRATES FOR MOST DIVERSE MARKETS
SUSS offers the widest range of equipment for "More than Moore" applications strong market position
EQUIPMENT FOR DIFFERENT SEGMENTS AND MARKETS
PRODUCTION SITES
I. II. Strategy SUSS 2025 III. IV.
SUSS STRATEGY 2025: OVERVIEW
MARKET CONDITIONS
- Megatrends are driving our business, great market outlook
- "More than Moore" provides highly attractive growth potential
- 5G, AI and IoT are demanding broad band infrastructure
- Home office equipment as short term driver
- Increased data volume with AI and IoT
- Autonomous driving car: 1 TB / day
- Customers expect strong support in increasingly complex processes
- Challenge but also an opportunity
- SUSS is best positioned to play a strong role based on own strength performance, reliability and flexibility!
SUSS 2025 STRATEGY: INCREASE IN SALES
Growth in the coming years through market growth, new products and market share gains
SUSS STRATEGY 2025: STRATEGIC TARGETS
Top-line growth
- Attractive products for maximum productivity and best in class yield
- Additional features to increase reliability
Improved operational performance and profitability
- Operational efficiency to be improved, programs are running
- Cost reduction through out-sourcing and global purchasing
- Increase cash flow by better inventory management
Focus on strategic growth areas
- Strong product offering already short term growth possible
- Platform design programs longer term potential for margin increase
Goal 2025: €400 million with > 15% EBIT
I. II. III. 9M Results 2020 IV.
GENERAL BUSINESS UPDATE
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 2019
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: STRONG QUARTERLY PERFORMANCE
ORDER ENTRY 9M: SPLIT PER REGION
| 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 cost due to quality problems with one key supplier
-
FX losses due to strong CHF
-
I.
- II.
- III.
- IV. Outlook
MARKETS 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
OUTLOOK
- 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%
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