SÜSS MicroTec SE

Investor Presentation • Aug 1, 2020

SÜSS MICROTEC SE INVESTOR PRESENTATION

August 2020

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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.

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I. Overview II. III. IV.

SUSS MICROTEC IS EVERYWHERE

SUSS MICROTEC IS EVERYWHERE

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MEGATRENDS ARE DRIVING FUTURE TECHNOLOGY

ROADMAP OF ELECTRONIC MEGA TRENDS

BONDING AND LITHOGRAPHY PROCESSES IN THE "MORE THAN MOORE" FIELD

SUSS' EQUIPMENT FOCUS FOR "MORE THAN MOORE" DEVICES: "MTM-DEVICES"

SUSS is offering:

• The widest range of equipment for "More than Moore" applications
• The best suited equipment for nonstandardized 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

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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

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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

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I. II. III. Results of H1 2020 IV.

GENERAL BUSINESS UPDATE

• First half year 2020
  • Strong order entry of €162.6 million (due to package deal)
  • Good contribution by all segments

Q2

• Sales of €71.6 m
• Positive EBIT with €8.8 million
• EBIT margin 12.3 %
• Strong business development in Photomask Equipment and Lithography

Industry status

• increased activity in broad band communication segment (5G)
• Focus on delivery and installations
• COVID-19 pandemic, impact on current business
  • Low impact on shipments by customer postponements
  • Low impact on shipments from supply chain
  • Uncertainty remains high

KEY GROUP FIGURES 2019

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In € million	FY 2019	FY 2018	% Delta	Q4 2019	Q4 2018	% Delta
Order entry	219.3	191.0	14.8	61.4	65.8	-6,5
Order backlog 31/12	93.2	84.7	10.0	93.2	84.7	10.0
Sales	213.8	203.9	4.9	82.7	71.1	16.3
EBIT	-13.8	10.9	--	-8.1	4.1	--
EBIT margin	-6.5%	5.3%	-11.8 p	-9.8%	5.8%	-15.6 p
EBIT adjusted	0.5	10.9	- 95.4	6.2	4.1	51.2
EBIT margin adjusted	0.2%	5.3%	-5.1 p	7.5%	5.8%	1.7 p
Earnings after tax	-16.3	4.8	--	-7.6	1.5	--
EPS in €	-0.85	0.25	--	-0.39	0.08	--
Free cash flow	-36.9	-5.0	--	-8.2	17.7	--
Net cash 31/12	-18.0	28.2	--	-18.0	28.2	--
Employees 31/12	937	880	6.5	937	880	6.5

KEY GROUP FIGURES HY1 / Q2 2020

In € million	H1 2020	H1 2019	Delta H1 2020/2019	Q2 2020	Q2 2019
Order entry	162.6	91.7	77.3%	93.6	45.0
Order backlog	143.1	85.4	67.6%	---	---
Sales	113.3	94.1	20.4%	71.6	47.0
EBIT	3.2	-0.8		8.8	-2.9
EBIT margin	2.8%	-0.9%	3.7 points	12.3%	-6.2%
Earnings after tax	0.4	-1.9	---	5.8	-2.3
EPS in €	0.02	-0.10	---	0.30	0.12
Free cash flow	17,2	-18.9	---	25,5	-2.5
Net cash	5.1	6.9	-26.1%	---	---
Employees 30/6	944	910	3.7%	---	---

ORDER ENTRY: STRONG QUARTERLY PERFORMANCE

• Strong order entry in Q2 especially in Lithography, Photomask and Bonder business unit and in Asia Pacific region
• Big ticket orders for several tools ("package deal") by some major customers
• Increased order backlog of €143 million

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SEGMENT OVERVIEW HY1 2020

in € million	HY1 2020	HY1 2019
Order entry	11,6	10,9
Sales	11,3	10,1
EBIT	0,1	1,7
EBIT margin	0,9%	16,8%

• EBIT weaker than previous half year due to short time work and quality problems with key supplier

• Strong growth in order entry but sales and EBIT below expectations due to postponement of shipments of tools with a decent margin

• Improvement in in € million	Q3/4 expected HY1 2020	HY1 2019
Order entry	95,0	41,9
Sales	62,1	51,8
EBIT	0,0	-3,8
EBIT margin	0.0%	-7.3%
EBIT adj.	4,5 (7.2%)

in € million	HY1 2020	HY1 2019
Order entry	95,0	41,9
Sales	62,1	51,8
EBIT	0,0	-3,8
EBIT margin	0.0%	-7.3%
EBIT adj.	4,5 (7.2%)

• Strong growth in order entry and sales due to big ticket orders and sales with major customers
• €4.5 M closing cost for US site in Corona booked in HY1
• Strong order entry and sales development esp. in Q2
• Strong margin increase due high margin sales with a top tier customer

in € million	HY1 2020	HY1 2019
Order entry	32,3	25,4
Sales	30,6	19,0
EBIT	9,4	3,3
EBIT margin	30.7%	19.0%

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• I.
• II.
• III.
• IV. Outlook

MARKETS ESTIMATES

• Positive market outlook but still uncertainties due to COVID-19
• Forecasts on global economic development is difficult

However:

• Clear signal for stronger investments into broadband communication systems
• Significant increase in demand from "Home office equipment" market
• Customers still pushing for shorter delivery times
• China on the way to "normal" production level, demand is increasing
• Investments to cope with future demand driven by emerging technologies like 5G, IoT, high-performance computing, augmented reality, artificial intelligence, autonomous driving etc. are still ongoing, New fab's announced from China and Taiwan

Positive outlook while keeping focus on supply chain and delivery

OUTLOOK

GUIDANCE *

in € mio.	Q3+Q4 2020	FY 2020
		Min	Max
Order entry	>90
Sales		240	260
EBIT margin		3%	5%

Remarks for better understanding:

• Quarterly order intake since Q3/2019 between €60 and €65 million
• Extraordinary high order intake in Q2/2020 due to order accumulation of approx. €30 million
• Distribution these "extra €30 million" from Q2/2020 over Q3 and Q4 would normalize the actual order flow
• The guidance provided above hints to an annual order intake of €240 million or an quarterly average of approx. €60 million

*) guidance might be highly impacted by effects from COVID-19 virus pandemic

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