SUSS MICROTEC INVESTOR PRESENTATION
November 2018
DISCLAIMER
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.
| 1 |
Overview |
| 2 |
Strategy, products and markets |
| 3 |
Financials |
| 4 |
Outlook |
| 1 |
Overview |
| 2 |
Strategy, products and markets |
| 3 |
Financials |
| 4 |
Outlook |
SUSS MICROTEC TODAY
- Equipment provider for semiconductor and related industries
- Semi front-, mid- and back-end, MEMS, RF, Opto, etc.
- Tier one market players becoming major customers
- Very demanding market environment
MARKET ENVIRONMENT - MEGATRENDS
- Digitization
- Wireless Communication
- Data Networks
- Cloud Computing
- Internet of Things
- Smart Factory
- Autonomous Driving
- Mobility
- Automation
SUSS MICROTEC – A GLOBAL PLAYER
MAIN PRODUCTION SITES
OUR PRODUCT PORTFOLIO
MAIN COMPETITORS AND PEER GROUP
| Peer Group |
|
| BE Semiconductor: |
equipment for leadframe, substrate and WLP applications (die attach, wire-bonding, plating), target
markets include electronics, computer, automotive, industrial, LED and solar energy |
| Veeco/UTEC: |
steppers
for
the
semiconductor
market, advanced
packaging, nanotechnology,
laser
processing
(LSA) |
Kulicke
& Soffa: |
design and manufacture of equipment for semiconductor, LED and electronic assembly (wire-bonding,
advanced packaging) |
| Rudolph Tech: |
equipment and software solutions for macro defect inspection, probe card test and analysis, thin film
metrology, advanced packaging lithography systems (steppers) |
| EV Group: |
equipment for wafer-bonding, lithography/nanoimprint lithography (NIL), metrology, photoresist coating,
cleaning and inspection for the target markets: advanced packaging, compound semiconductor and
silicon-based power devices, MEMS, nanotechnology and SOI |
| 1 |
Overview |
| 2 |
Strategy, products and markets |
| 3 |
Financials |
| 4 |
Outlook |
MARKETS ARE CHANGING – WE RECOGNIZE AND WE REALIZE OPPORTUNITIES
- Megatrends are driving our business: digitization, wireless communication (5G), data networks, cloud computing, IoT, smart factory, autonomous driving, mobility, AI
- Semiconductor industry is highly innovative and very demanding
- Processes are getting more complex – customers asking for more support
- News business fields arise:
- UV – projection scanners for advanced packaging, esp. FOWLP
- Imprint solutions for production of optical elements
- SUSS MicroOptics products for the automotive industry
OUR KEY GROWTH DRIVERS
| Market |
Advanced
packaging |
(RF) MEMS |
Chipset
integration |
MicroOptics |
|
-
Micro-bumping
-
CU-pillar
-
Redistribution
layer (RDL)
-
FOWLP |
-
SAW/BAW filters
for
5G standard
-
Autonomous
driving
-
Mobile devices
-
Smart factory |
-
3D TSV
-
2.5D integration |
-
Automotive light
carpet
-
Optical assembly
-
Wafer level
optics |
The global semiconductor market will be \$656B in 2025 compared to \$343B in 2015 with a CAGR of 6.7%*
*source Semi.org
SEMICONDUCTOR MARKET OUTLOOK = SUSS POTENTIAL
Based on the favorable market trends and our targeted market share gains, we should be able to show sustainable growth of sales over the years to come, always keeping in mind, that the business will remain cyclical
*This chart contains forward-looking targets relating to the business and financial performance of SUSS MicroTec SE. These statements are based on current estimates, projections and expectations and are therefore subject to risks and uncertainties, most of which are difficult to estimate. Consequently, actual developments as well as performance may differ materially from those which is explicitly or implicitly assumed in this graphic.
SUSS 2025 – DOUBLE OUR SALES VOLUME
- Customer satisfaction is our highest priority
- Convince as solutions provider
- Enter new business fields
- Establish co-operations with leading semiconductor suppliers
- Develop / acquire new technologies to improve our core products
- Increase production capacity by outsourcing
- Establish a production site for final assembly in Asia
BUILDING BLOCKS OF OUR STRATEGY
BUILDING BLOCKS OF OUR STRATEGY - BONDER
-
- Maintain and expand market position in temporary bonding
-
- Penetrate into MEMS applications with permanent bond systems
-
- Self learning machines and adaptive process improvements
-
- Completion of 200mm permanent bond platform with scaling to 300mm possible
BUILDING BLOCKS OF OUR STRATEGY - COATER
-
- Maintain market share at existing customers
-
- Mid-term: increase market share in AdP and MEMS via new coating technology with improved cost of ownership
-
- Self learning and -improving machines
-
- Cost reduction (e.g. via outsourcing)
-
- Longer-term: enter new application fields with new coating technology
BUILDING BLOCKS OF OUR STRATEGY - SCANNER
-
- Successful delivery of upgrade kit to lead customer
-
- Evaluation tool placed at this customer
-
- Move into volume production with lead customer
-
- Establish a strong market position in uv-projection exposure
UV – PROJECTION SCANNER
- Target markets: advanced packaging (FOWLP, Cu-pillar…)
- Package sizes are increasing (package size gets larger than step field of conventional 1x stepper)
- Scanner is ideal exposure tool to address large package sizes
- High resolution and overlay
- Throughput of our DSC300 Gen3 increased considerably
- Excellent cost of ownership
Our UV – projection scanner is THE tool to address next generation exposure requirements
BUILDING BLOCKS OF OUR STRATEGY – HIGH VOLUME IMPRINT ON BASIS OF OUR MASK ALIGNER
-
- Establish an Imprint Excellence Center in Switzerland
-
- Utilize our mask aligner platform to offer imprint processes and solutions
-
- High quality and low volume production
BUILDING BLOCKS OF OUR STRATEGY - MICROOPTICS
| 1 |
Overview |
| 2 |
Strategy, products and markets |
|
|
| 3 |
Financials |
KEY GROUP FIGURES 9M 2018
|
|
|
delta 9M 2018/ |
|
|
|
| in € million |
Q3 2018 |
Q3 2017 |
9M 2017 |
9M 2018 |
9M 2017 |
in % |
| Order Intake |
47.0 |
36.9 |
+27.4% |
125.2 |
131.4 |
-4.7% |
| Order Backlog 9/30 |
-- |
-- |
-- |
119.5 |
117.7 |
1.5% |
| Revenue |
41.9 |
47.1 |
-11.0% |
139.3 |
113.4 |
22.8% |
| EBIT |
-0.7 |
7.0 |
-- |
6.9 |
8.6 |
-19.8% |
| EBIT in % of Sales |
-1.7% |
14.9% |
-16.5%pts |
5.0% |
7.6% |
-2.6%pts |
| adjusted EBIT* |
-0.1 |
5.0 |
-- |
7.5 |
6.6 |
-13.6% |
| adj. EBIT in % of Sales |
-0.02% |
10.6% |
-- |
5.4% |
5.8% |
-0.4%pts |
| Earnings after tax |
-0.8 |
4.5 |
-- |
3.4 |
3.8 |
-10.5% |
| EPS in € |
-0.04 |
0.24 |
-- |
0.18 |
0.20 |
-10.0% |
| Free Cash Flow |
-6.8 |
6.3 |
-- |
-22.7 |
0.7 |
-- |
| Net Cash |
-- |
-- |
-- |
10.4 |
30.9 |
-66.3% |
| Employees 9/30 |
-- |
-- |
-- |
863 |
762 |
19.6% |
*one-off effect 2017: license income of € 2.0 million one-off effect 2018: severance payment of appr. € 600 tsd.
LONG TERM BUSINESS DEVELOPMENT I
SUSS MicroTec Investor Presentation 26
INVENTORY DEVELOPMENT
- Inventory went up because of high order backlog
- Increased number of valuation and demonstration tools in the field
- Preproduction of multiple tools in order to meet challenging lead times
LONG TERM BUSINESS DEVELOPMENT II
* EBIT 2013: one-off effect from restructuring the product line permanent bonding (€ -13.2 million)
ORDER ENTRY BY REGION 9M 2018 (FY2017)
ORDER ENTRY BY SEGMENT 9M 2018 (FY 2017)
SEGMENTS DEVELOPMENT IN 9M 2018
| 1 |
Overview |
| 2 |
Strategy, products and markets |
| 3 |
Financials |
| 4 |
Outlook |
MARKET OUTLOOK
- The semiconductor industry is amidst of a big transition and it is entering a disruptive phase where mobile and other merging mega-drivers, such as big data, 5G, high performance computing (HPC), the internet of things (IoT) as well as smart automotive and smart factory will significantly impact business dynamics an create a tremendous opportunity across the semiconductor supply chain (Yole Sep. 2018)
- Semiconductor market + 15.8% in 2018 to a volume of USD 498 bn and + 4.4% in 2019 (Market Insight, Oct. 2018)
- Global Fab equipment spending +14% in 2018 and + 7.5% in 2019 to a volume of USD 67.5 bn (Semi, Sep. 2018)
- More than Moore (MtM) equipment (lithography tools and bonders) to grow by 10% annually (CAGR 2017 – 2023) to an equipment market volume of appr. USD 750 million (Yole, Oct. 2018)
- 3D TSV and Fan-out markets are expected to grow by a CAGR of 29% and 15% respectively from 2017 – 2023 (Yole, Sep. 2018)
OUTLOOK 2018
Fiscal year 2018: Sales € 195 million – € 205 million EBIT on level of prior year (7.1% without special effect) Q4 2018 + Q1 2019: Order entry of more than € 90 million
INVESTMENT HIGHLIGHTS
Situation:
- Highly innovative markets
- Megatrends support business case
- International customers
- Increased R&D
- Long term growth targets
Outlook:
- Semiconductor market growth will continue
- IOT, digitization, AI, mobility,… are just taking off
- Entering new business fields with established and new products
- Imprint excellence center starts operating in Switzerland
- More volume orders for temporary bonding systems to come
- Position permanent bonding systems in market
- 2019 will be the decisive year for uv-projection scanners
SUSS MICROTEC INVESTOR PRESENTATION
Back up
INVESTOR RELATIONS INFORMATION
Contact Financial Calendar 2019
Franka Schielke
SÜSS MicroTec SE
Schleissheimer Strasse 90 85748 Garching Germany www.suss.com
| Annual Report 2018 |
27 Mar |
| Quarterly Announcement 2019 (Q1) |
8 May |
| Annual General Meeting 2019, Munich |
6 Jun |
| Interim Report 2019 |
7 Aug |
| Quarterly Announcement 2019 (Q3) |
7 Nov |
SHARE PRICE DEVELOPMENT AND MAJOR HOLDERS
Average daily trading volume January 2017 – November 2018: ~ 97.000
SEGMENTS, ORDER ENTRY AND SALES FULL YEAR 2017
** Including Others (2017: order entry € 11.7 million, sales € 11.9 million, EBIT € -0.8 million)
OUR GROWTH DRIVERS
Advanced Packaging RF MEMS
3D Packaging FOWLP
SEMICONDUCTOR EQUIPMENT INDUSTRY
SUSS MICROOPTICS – GROWTH DRIVER AUTOMOTIVE LIGHTING
Automotive Lighting
- Light Carpet (External and internal)
- Front Lights (LED Matrix and Laser Light)
Low volume high quality
LVHQ is the traditional Micro-Optics business, which addresses profitable niche markets with low growth but high margins
SMO products and end applications:
Microlens Array 13x13mm2
ROE + DOE 40x50mm2
ASML 193nm wafer stepper
(ISO 9001, IATF 16949, Six Sigma)
wafer-level packaging (WLP), dicing Start-Up service for SUSS customers
MASK ALIGNER – GROWTH DRIVER IMPRINT SOLUTIONS
The flexible imprint portfolio for
Nano – Imprint
Micro – Imprint
Optical Assembly
is covering a wide range of growing applications & markets
LED
MEMS/NEMS
(nano)PSS for High Brightness LEDs.
Nano- and micropatterning need to be extensively adopted in device manufacturing.
Optoelectronic sensors
Optical nano-gratings are key components for the communication market worldwide.
Imprint is essential to fabricate micro-optical devices for wafer-level cameras and image sensors.
Microoptics
Augmented Reality
Imprinted nano-metric DOE de-fractive optical elements are required for the glasses with augmented reality
LITHOGRAPHY PROCESS STEPS: MEMS PRODUCTION