SÜSS MicroTec SE

Quarterly Report • May 8, 2020

Quarterly Report January 1 – March 31, 2020

KEY FIGURES

in € million	3 Months / 2020	3 Months / 2019	Change
Business Development
Order entry	69,0	46,7	47,8%
Order backlog as of September 30	120,8	85,4	41,5%
Total sales	41,7	47,1	-11,5%
Gross profit	10,2	16,2	-37,0%
Gross margin	24,5%	34,4%	-9,9%-Points
Cost of sales	31,5	30,8	2,3%
Research and Development costs	5,0	4,3	16,3%
EBITDA	-3,8	3,5	--
EBITDA margin	-9,1%	7,4%	-16,5%-Points
EBIT	-5,6	2,1	--
EBIT margin	-13,4%	4,5%	-17,9%-Points
Earnings after tax	-5,4	0,4	--
Earnings per share, basic (in €)	-0,28	0,02	--
Balance sheet and cash flow
Equity	120,6	141,7	-14,9%
Equity ratio	56,3%	71,7%	-15,3%-Points
Return on equity	-4,5%	0,3%	-4,8%-Points
Balance sheet total	214,1	197,7	8,3%
Net cash	-19,6	9,5	--
Free cash flow	-8,3	-16,4	--
Further key figures
Investments	1,3	2,3	-43,5%
Investment ratio	3,1%	4,9%	-1,8%-Points
Depreciation	1,8	1,4	28,6%
Employees as of March 31	942	899	4,8%

TABLE OF CONTENTS

Business Development in the First Quarter	4
Financial Report	10
Consolidated Statement of Income (IFRS)	10
Statement of Comprehensive Income (IFRS)	11
Consolidated Statement of Financial Position (IFRS)	12
Consolidated Statement of Cash Flows (IFRS)	13
Statement of Changes in Equity (IFRS)	15
Segment Reporting (IFRS)	16
Legal Structure	17
Financial Calendar / Contact / Imprint	18

BUSINESS DEVELOPMENT IN THE FIRST QUARTER

Dear Shareholders,

4

After a subdued year, the semiconductor market was already showing positive signs of an upturn by the end of 2019 that was increasingly gaining momentum. The global spread of the COVID-19 pandemic in the first quarter caused massive disruptions to social and economic life worldwide, which had a corresponding negative impact on the economy and led to a global collapse of stock markets. Despite these adverse circumstances, the performance of the semiconductor market was relatively robust.

In view of the reorganization of working life with intensified activity working from home, the replacement of physical meetings with virtual conferences, and the increasing digitalization of our communications, the demand for high-performance data networks is growing rapidly. The need for comprehensive high-bandwidth network coverage and thereby high transmission speed is becoming visible everywhere and is driving the worldwide conversion to the new 5G mobile communication standard. The expanded production of 5G-capable mobile communication components raises the prospect for increasing demand for our production machines, particularly for coaters and mask aligners.

Our first quarter was characterized by a strong order entry. In the months from January to March, we won new orders of € 69.0 million (2019: € 46.7 million). The increase was primarily attributable to strong demand for coaters/developers (Lithography division). The order backlog as of March 31, 2020 amounted to € 120.8 million (March 31, 2019: € 85.4 million). We continue to assume an overall strong first half of the year with high order entry also during the current second quarter of 2020.

Sales reached € 41.7 million in the first quarter, thereby lower than the previous year's amount (€ 47.1 million). The sales decline was primarily noticeable in the bonder, coater/developer, and photomask equipment product lines, while sales from mask aligners and micro-optics increased slightly. The decline was essentially caused by delivery delays resulting from adjustments in the way work is organized in response to the COVID-19 crisis.

In order to ensure our delivery capability and to minimize the risk of infection to employees, we have converted production and administration at the two German sites to a two-shift model. At the same time, we have strengthened supplier management measures in order to avoid supply bottlenecks. After initial slight delivery delays, we were largely able to avoid negative effects over the remainder of the period.

Earnings before interest and taxes (EBIT) of € -5.6 million in the first quarter of 2020 were significantly lower than the € 2.1 million of the previous year. This resulted in an EBIT margin for the first quarter of 2020 of -13.4% (previous year: 4.5%).

Earnings after taxes (EAT) fell from € 0.4 million to € -5.4 million. The undiluted earnings per share (EPS) totaled € -0.28 (previous year: € 0.02). Free cash flow at the end of the first quarter of 2020 totaled € -8.3 million after € -16.4 million in the previous year. Net liquidity at the end of the first quarter was € -19.6 million (2019: € 9.5 million).

In March 2020, the acquisition of PiXDRO, the inkjet printing business of Meyer Burger, was successfully completed. In the process, SUSS MicroTec obtained approximately 30 employees at the Eindhoven site in the Netherlands as of March 31, 2020. The PiXDRO business will continue to be operated by a newly founded company, SUSS MicroTec Netherlands B.V., in leased premises in Eindhoven.

The purchase price for the acquisition amounted to € 3.9 million. PiXDRO generates annual sales of approximately € 7 million and has been established in the market for many years with its inkjet printing-based coating devices. By acquiring this business and obtaining its patents and trademarks, SUSS MicroTec is expanding its existing lithography portfolio in the area of coaters/developers.

The initial consolidation of the new company occurred on March 31, 2020, which means no pro rata net profit for the period is disclosed in these consolidated financial statements. As part of the initial consolidation, the acquired technology was recognized with a value of € 0.4 million. In addition, goodwill of € 2.7 million was recognized, which is completely attributed to the Lithography division. A detailed purchase price allocation will be carried out by the end of 2020.

BUSINESS DEVELOPMENT BY DIVISION

Lithography

The Lithography division includes the development, manufacture, and sale of the mask aligner, coater, and developer product lines. The mask aligner, coater, and developer product lines are manufactured in Germany at the locations in Garching near Munich and Sternenfels. The principal markets are advanced packaging for microelectronic components and other waferbased production of microelectromechanical systems (MEMS) components.

in € million	3M 2020	3M 2019
Order entry	42.1	21.9
Sales	25.5	25.5
EBIT	-2.3	-0.4
Net assets	67.6	69.5

The order entry of the Lithography division in the first quarter of 2020 increased significantly from € 21.9 million in the previous year to € 42.1 million. Sales in the same period amounted to € 25.5 million after € 25.5 million in the previous year. The gross profit margin of 20.9 percent was significantly below the comparable figure of the previous year (28.4 percent). Division earnings worsened from € -0.4 million in 2019 to € -2.3 million in 2020.

In January 2020, the decision was made to discontinue the UV projection and laser ablation product lines, which were both located at the Corona, USA site. Therefore, the gross profit margin and EBIT of the Lithography division were burdened in the first quarter of 2020 with expenses for the closure of the production site in Corona. Without these closure costs, the Lithography division would have had a gross profit margin of 28.7 percent and an EBIT of € 1.4 million in the first quarter of 2020. The closure costs for the site in Corona (SMT PS) in the first quarter totaled € 3.7 million, of which € 1.7 million was disclosed under selling, administrative, and development expenses.

5

Bonder

The Bonder division comprises the development, production, and sale of the substrate (wafer) bonding product line. Manufacturing is located at our largest site in Sternenfels. Markets addressed by the bonder systems include microelectromechanical systems (MEMS), compound semiconductors, and 3D TSV integration in microelectronics.

in € million	3M 2020	3M 2019
Order entry	5.6	9.4
Sales	4.3	6.0
EBIT	-1.1	0.7
Net assets	20.7	23.8

In the first quarter of 2020, order entry in the Bonder division amounted to € 5.6 million; below the order entry of the previous year's period (€ 9.4 million). Sales fell to € 4.3 million in the first three months of 2020 after € 6.0 million in the previous year. The gross profit margin decreased in the first three months of 2020 from an extraordinarily high 49.6 percent in 2019 to 20.2 percent. Division earnings declined from € 0.7 million in the previous year to € -1.1 million.

Photomask Equipment

The Photomask Equipment division, which is located at the Sternenfels site, comprises the development, manufacture, and sale of specialized tools for the cleaning and processing of photomasks for the semiconductor industry. Among the markets addressed by the Photomask Equipment division is the front-end production of the semiconductor industry.

Since order entry and sales in this division are usually comprised of a few large individual orders, significant fluctuations in order entry, sales, and therefore earnings are possible over the course of the year.

in € million	3M 2020	3M 2019
Order entry	15.9	9.7
Sales	5.8	10.8
EBIT	0.8	2.6
Net assets	26.5	15.8

In the first quarter of 2020, the Photomask Equipment division recorded order entry of € 15.9 million (previous year: € 9.7 million). Division sales were € 5.8 million, compared to € 10.8 million a year earlier. The gross profit margin improved from 36.5 percent in the previous year to 45.6 percent. Division earnings amounted to € 0.8 million after € 2.6 million in the previous year.

Micro-optics

The Micro-optics division describes the activities of the SUSS MicroTec subsidiary SUSS MicroOptics at the Hauterive location in Switzerland. Microlenses and highly specialized optics are manufactured here for a variety of industrial applications for use with mask aligners from SUSS MicroTec.

in € million	3M 2020	3M 2019
Order entry	5.4	5.7
Sales	6.1	4.7
EBIT	-0.2	0.7
Net assets	16.9	11.1

Order entry reached € 5.4 million in the first quarter of 2020 (previous year: € 5.6 million). Sales increased significantly from the previous year to € 6.1 million (previous year: € 4.7 million). The gross profit margin decreased from 37.9 percent in the previous year to 27.3 percent. Division earnings were € -0.2 million, compared to € 0.7 million in the previous year.

Other

The Others division comprises costs for central Group functions that generally cannot be attributed to the main divisions. The central Group functions made a negative contribution to earnings of € -2.8 million (previous year: € -1.5 million).

INVESTOR RELATIONS

8

The SUSS MicroTec Share

After an increase in value of the SUSS MicroTec share in the fourth quarter of 2019, the share fell to EUR 6.50 in the first quarter of 2020 following the publication of preliminary figures in January and with the start of the global economic downturn. This compared to a XETRA closing price of EUR 12.54 at the beginning of 2020.

Over the same period, the TecDAX fell by approximately 15 percent. The performance of the Germany Prime IG/Semiconductor Index, which represents the largest listed German companies in the semiconductor industry including SUSS MicroTec, was significantly negative in the period from January to March 2020, displaying a loss of approximately 34 percent on March 31, 2020, compared to the beginning of the year.

The average daily trading volume of SUSS MicroTec shares on the German XETRA stock exchange in the first quarter of 2020 amounted to approximately 68 thousand (previous year: average daily trading volume of approximately 35 thousand shares).

OUTLOOK

Worldwide measures to contain the COVID-19 pandemic are currently hindering our ability to make estimates for the current year. Based on strong customer demand in the first quarter, we are assuming cumulative order entry in the second and third quarters of 2020 in a range of € 100–115 million. On the condition that the COVID-19 pandemic does not have any material negative impact on our business development, we continue to expect to achieve annual sales on the order of € 230–240 million and we confirm our previous earnings forecast of an EBIT margin of 2.5% to 3.5%.

Garching, Germany, May 2020

Dr. Franz Richter Oliver Albrecht Chief Executive Officer Chief Financial Officer

CONSOLIDATED STATEMENT OF INCOME (IFRS)

in € thousand	01.01.2020 - 31.03.2020	01.01.2019 - 31.03.2019
Sales	41,728	47,090
Cost of sales	-31,530	-30,846
Gross profit	10,198	16,244
Selling costs	-5,285	-5,004
Research and development costs	-5,017	-4,260
Administration costs	-5,015	-4,268
Other operating income	416	282
Other operating expenses	-886	-863
Analysis of net income from operations (EBIT):
EBITDA (Earnings before Interest and Taxes, Depreciation and Amortization)	-3,786	3,534
Depreciation and amortization of tangible assets, intangible assets and investments in subsidiaries	-1,803	-1,403
Net income from operations (EBIT)	-5,589	2,131
Financial income	2	6
Financial expense	-147	-48
Financial result	-145	-42
Profit / loss before taxes	-5,734	2,089
Income taxes	347	-1,654
Profit / loss	-5,387	435
Thereof equity holders of SUSS MicroTec	-5,387	435
Thereof non-controlling interests	0	0
Earnings per share (basic)
Earnings per share in €	-0.28	0.02
Earnings per share (diluted)
Earnings per share in €	-0.28	0.02

STATEMENT OF COMPREHENSIVE INCOME (IFRS)

in € thousand	01.01.2020 - 31.03.2020	01.01.2019 - 31.03.2019
Net profit / loss	-5,387	435
Items that are not reclassified to profit and loss
Remeasurements on defined benefit pension plans	0	0
Deferred taxes	0	0
Other income after tax for items that are not reclassified as an expense or income	0	0
Items that will be reclassified to profit and loss in later periods
Foreign currency adjustment	645	886
Cash flow hedges	0	0
Deferred taxes	0	0
Other income after tax for items that will be reclassified to profit and loss in later periods	645	886
Total income and expenses recognized in equity	645	886
Total income and expenses reported in the reporting period	-4,742	1,321
Thereof equity holders of SUSS MicroTec SE	-4,742	1,321
Thereof non-controlling interests	0	0

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS)

in € thousand	31.03.2020	31.12.2019
Assets
NON-CURRENT ASSETS	60,966	55,109
Intangible assets	4,587	4,153
Goodwill	18,417	15,707
Tangible assets	33,624	33,905
Other assets	771	568
Deferred tax assets	3,567	776
CURRENT ASSETS	153,156	144,789
Inventories	89,317	75,047
Trade receivables	17,963	18,992
Contract assets	21,054	31,182
Other financial assets	648	366
Current tax assets	5,547	4,708
Cash and cash equivalents	14,033	10,280
Other assets	4,594	4,214
TOTAL ASSETS	214,122	199,898

in € thousand	31.03.2020	31.12.2019
Liabilities & shareholders' equity
Equity	120,646	125,388
Total equity attributable to shareholders of SUSS MicroTec SE	120,646	125,388
Subscribed capital	19,116	19,116
Reserves	101,219	106,606
Accumulated other comprehensive income	311	-334
NON-CURRENT LIABILITIES	26,717	24,468
Pension plans and similar commitments	6,297	6,037
Financial debt due to banks	10,723	10,500
Financial debt from lease obligations	4,355	4,638
Deferred tax liabilities	5,342	3,293
CURRENT LIABILITIES	66,759	50,042
Provisions	4,278	4,198
Tax liabilities	326	702
Financial debt due to banks	22,902	10,399
Financial debt from lease obligations	2,305	2,751
Other financial liabilities	6,638	6,773
Trade payables	10,963	10,013
Contract liabilities	13,788	9,346
Other liabilities	5,559	5,860
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	214,122	199,898

CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS)

	01.01.2020 -	01.01.2019 -
in € thousand	31.03.2020	31.03.2019
Net profit / loss (after taxes)	-5,387	435
Amortization of intangible assets	138	285
Depreciation of tangible assets	1,666	1,119
Profit or loss on disposal of intangible and tangible assets	0	0
Change of reserves on inventories	1,272	1,478
Change of reserves for bad debts	175	143
Non-cash income from the reversal of pension accruals	0	0
Other non-cash effective income and expenses	231	193
Change in inventories	-12,445	-8,896
Change in contract assets	10,136	-11,448
Change in trade receivables	1,575	8,964
Change in other assets	-293	-1,277
Change in pension provisions	150	11
Change in trade payables	459	1,779
Change in contract liabilities	2,046	-1,665
Change in other liabilities and other provisions	-1,071	-5,026
Change of tax assets and tax liabilities	-1,790	-197
Cash flow from operating activities	-3,138	-14,102

in € thousand	01.01.2020 - 31.03.2020	01.01.2019 - 31.03.2019
Disbursements for other tangible assets	-1,210	-2,050
Disbursements for intangible assets	-55	-247
Payments for purchase of PiXDRO	-3,900	0
Cash flow from investing activities	-5,165	-2,297
Repayment of bank loans	-250	-250
Increase of bank loans	12,973	0
Repayment of leasing liabilities	-697	-203
Change in other financial debt	-2	0
Cash flow from financing activities	12,024	-453
Adjustments to funds caused by exchange-rate fluctuations	32	106
Change in cash and cash equivalents	3,753	-16,746
Funds at beginning of the year	10,280	30,672
Funds at end of the period	14,033	13,926
Cash flow from operating activities includes:
Interest paid during the period	19	23
Interest received during period	2	6
Tax paid during the period	1,459	1,729
Tax refunds during the period	84	0

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (IFRS)

in € thousand	Subscribed capital	Additional paid-in capital	Earnings reserve	Retained earnings	Accumulated other comprehensive income	Total equity attributable to shareholders of SÜSS MicroTec SE
					Items that will not be reclassified to profit or loss		Items that will be reclassified to profit or loss in later periods
					Remeasurements on defined benefit pension plans	Deferred taxes	Foreign currency adjustment	Deferred taxes
As of January 01, 2019	19,116	71,547	202	51,118	-3,290	751	991	-	140,435
Net income / loss				435					435
Total income and expenses recognized in equity					-	-	886	-	886
Total comprehensive income / loss				435	-	-	886	-	1,321
As of March 31, 2019	19,116	71,547	202	51,553	-3,290	751	1,877	-	141,756
As of January 01, 2020	19,116	55,822	202	50,582	-3,610	941	2,335	-	125,388
Net income / loss				-5,387					-5,387
Total income and expenses recognized in equity					-	-	645	-	645
Total comprehensive income / loss				-5,387	-	-	645	-	-4,742
As of March 31, 2020	19,116	55,822	202	45,195	-3,610	941	2,980	-	120,646

SEGMENT REPORTING (IFRS)

Segment information by business segment

in € thousand		Lithography		Bonder		Photomask Equipment		MicroOptics		Other		Consolidation effects		Total
	3M / 2020	3M / 2019	3M / 2020	3M / 2019	3M / 2020	3M / 2019	3M / 2020	3M / 2019	3M / 2020	3M / 2019	3M / 2020	3M / 2019	3M / 2020	3M / 2019
External Sales	25,485	25,488	4,264	6,032	5,804	10,831	6,121	4,725	54	14		- -	41,728	47,090
Internal Sales	-	-	-	-	-	-	-	-	2,871	1,762	-2,871	-1,762		- -
Total Sales	25,485	25,488	4,264	6,032	5,804	10,831	6,121	4,725	2,925	1,776	-2,871	-1,762	41,728	47,090
Result per segment (EBIT)	-2,288	-443	-1,061	740	808	2,582	-199	734	-2,849	-1,482		-	-5,589	2,131
Income before taxes	-2,295	-451	-1,065	733	805	2,582	-203	732	-2,976	-1,507		- -	-5,734	2,089
Significant non-cash items	-944	-1,548	-330	165	174	23	-360	-183	-	-	-	-	-1,460	-1,543
Segment assets	91,084	90,110	23,978	31,344	33,380	21,523	19,168	14,988	17,351	18,130	-	-	184,961	176,095
thereof goodwill	18,417	15,706	-	-	-	-	-	-	-	-	-	-	18,417	15,706
Unallocated assets													29,161	21,617
Total assets													214,122	197,712
Segment liabilities	-23,475	-20,584	-3,291	-7,504	-6,851	-5,680	-2,275	-3,895	-2,244	-1,638		- -	-38,136	-39,301
Unallocated liabilities													-55,340	-16,687
Total liabilities													-93,476	-55,988
Depreciation and amortization	869	541	65	90	45	50	535	305	289	417		- -	1,803	1,403
thereof scheduled	869	541	65	90	45	50	535	305	289	417		- -	1,803	1,403
thereof impairment loss		- -		- -		- -				- -		- -	0	0
Capital expenditure	452	697	63	110	135	32	542	964	73	494		- -	1,265	2,297
Workforce at March 31	568	559	101	101	146	131	97	79	30	29		- -	942	899

Segment information by region

in € thousand		Sales		Capital expenditure		Assets (without Goodwill)
	3M / 2020	3M / 2019	3M / 2020	3M / 2019	3M / 2020	3M / 2019
EMEA	9,833	9,254	747	2,029	148,451	136,194
North-America	7,047	2,918	56	254	9,409	19,116
Asia and Pacific	24,848	34,918	462	14	8,804	5,546
Consolidation effects	-	-	-	-	-120 -	467
Total	41,728	47,090	1,265	2,297	166,544	160,389

LEGAL STRUCTURE

17

FINANCIAL CALENDAR 2020

Annual Report 2019,	March 27
Quarterly Report 2020 (Q1)	May 8
Shareholders' Meeting 2020	May 20
Interim Report	Aug. 6
Quarterly Report 2020 (Q3)	Nov. 10

CONTACT

SUSS MicroTec SE

Schleißheimer Straße 90 85748 Garching, Germany Phone: +49 89 32007-100 E-mail: info@suss.com

Investor Relations Phone: +49 89 32007-161 Email: ir@suss.com www.suss.com

Forward-looking statements: Interim reports include forward-looking statements. Forward-looking statements are statements that do not present historical facts, including statements about expectations and the views of the management of SUSS MicroTec SE. These statements are based on current plans, estimates, and forecasts of the Company's management. Investors should not unreservedly rely on these statements. Forward-looking statements are to be understood in the context of the time at which they were made. The Company does not assume any obligation to update the forward-looking statements included in this report given new information or future events. This does not affect the Company's obligation to comply with its statutory responsibilities regarding information and reporting. Forward-looking statements also include risks and uncertainties. A large number of factors that are described in this report could cause actual events to deviate substantially from the forward-looking statements included in this report.

www.suss.com