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SÜSS MicroTec SE

Interim / Quarterly Report Aug 6, 2015

422_10-q_2015-08-06_788108bc-d3c4-4986-a92a-bcb078c9d5ef.pdf

Interim / Quarterly Report

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Interim Report 2015

1 January – 30 June

Key figures

in € million Q2/2015 Q2/2014 Change 6M/2015 6M/2014 Change
Business Development
Order entry 41.2 36.2 13.8% 69.7 61.2 13.9%
Order backlog as of June 30 91.4 77.7 17.6%
Total sales 28.2 30.4 -7.2% 55.1 69.4 -20.6%
Sales margin -7.4% 3.0% -10.4%-points -8.3% 2.9% -11.2%-points
Gross profit 9.4 11.6 -19.0% 18.2 22.4 -18.8%
Gross margin 33.3% 38.2% -4.9%-points 33.0% 32.3% 0.7%-points
Cost of sales 18.8 18.8 0.0% 36.9 47.1 -21.7%
R&D costs 3.2 2.6 23.1% 6.4 4.9 30.6%
EBITDA -0.8 2.9 -1.9 5.4
EBITDA margin -2.8% 9.5% -12.3%-points -3.4% 7.8% -11.2%-points
EBIT -1.7 1.9 -3.9 3.4
EBIT margin -6.0% 6.3% -12.3%-points -7.1% 4.9% -12.0%-points
Earnings after tax -2.1 0.9 -4.6 2.0
Earnings per share (in €) -0.11 0.05 -0.24 0.11
Balance sheet and cash flow
Equity 114.3 111.4 2.6%
Equity ratio 66.9% 65.8% 1.1%-points
Return on equity -1.8% 0.8% -2.6%-points -4.0% 1.8% -5.8%-points
Balance sheet total 170.9 169.3 0.9%
Net Cash 25.6 33.3 -23.1%
Free cash flow1 -7.7 1.8 -13.2 -2.4 <-100.0%
Further key figures
Investments 0.6 0.8 -25.0% 1.4 1.2 16.7%
Investment ratio 2.1% 2.6% -0.5%-points 2.5% 1.7% 0.8%-points
Depreciation 1.1 1.0 10.0% 2.1 2.0 5.0%
Employees as of June 30 683 649 5.2%

before consideration of purchase or sale of available-for-sale securities

CONTENTS

SÜSS MicroTec Interim Report 2015

Foreword 4
Highlights 6
Investor Relations 8
Interim Group Management Report 11
Financial Report 20
Service 33

Foreword of the Management Board

Dear Shareholders,

If one is to believe current estimates of the economic forecast institutes, the European economy will continue to develop dynamically in the 2015 fiscal year. Economic output should grow in both the third and fourth quarters of 2015 by 0.5 percent, after 0.4 percent growth was achieved in the first and second quarters of the year. The greatest obstacle to a stronger economic upturn is the debt situation of individual countries, according to the ifo experts. According to the German Institute for Economic Research (DIW), the global economy will grow by approximately 3.8 percent in 2015 and 4.0 percent in the following year.

After a challenging period, since 2014 the semiconductor equipment market appears to have returned to a path of growth. For the 2015 and 2016 fiscal years, the SEMI industry association (Semiconductor Equipment and Materials International) anticipates growth in the equipment sector of an initial 7.1 percent and 4.1 percent in the following year. After a restrained start in 2015, we also expect a revival of our business and therefore higher sales than in the first half of the year. Accordingly, our earnings situation is expected to improve.

In order to succeed in the semiconductor sector, which is fast paced and driven by technological innovation, a company like SUSS MicroTec needs to collaborate with leading research institutes, universities, and industry partners. In January 2015, we announced a cooperative agreement with Nuflare Technology, a Japanese equipment manufacturer. Nuflare is the market leader in producing electron-beam mask writers for the semiconductor industry. Through this cooperation we are strengthening our Photomask Equipment division in a targeted manner. Nuflare has a very good market position in the area of photomask equipment, and we will collaborate on promising technologies and new process solutions in this area.

In addition, since the beginning of 2015, SUSS MicroTec has been a member of the Packaging Research Center (PRC) at the Georgia Institute of Technology. Advanced illumination systems, such as excimer laser ablation systems, are being used and researched for via drilling on non-photosensitive materials. The Georgia Institute of Technology will collaborate with us particularly in the areas of nanotechnology, biomedical applications, and semiconductor packaging (3D). We are hopeful that this collaboration will result in many new initiatives for our upcoming tool generations and process solutions.

Shareholders' Meeting of SUSS MicroTec AG

This year's annual Shareholders' Meeting was held on June 2, 2015 at the Haus der Bayerischen Wirtschaft (House of the Bavarian Economy) in Munich. In total, approximately 80 shareholders, shareholder and bank representatives, and guests joined the Company at the meeting in Munich. More than 25 percent of the Company's equity capital was present.

In addition to the decisions about the appointment of a Group auditor and the discharge of liability for the Management Board and the Supervisory Board, a vote was held on revising the articles of incorporation regarding the remuneration of the Supervisory Board. The shareholders of the Company approved all of the resolution proposals.

The First Half of the Year in Figures

In the second quarter of 2015, order entry increased significantly from the first quarter of the year. Orders of EUR 41.2 million were recorded, corresponding to an increase of approximately 45 percent. This represented a significant increase of approximately 13.8 percent compared to the same quarter last year (Q2 2014: EUR 36.2 million). Sales declined from the corresponding quarter of the previous year to EUR 28.2 million (Q2 2014: EUR 30.4 million).

Considering the entire first half of the year, order entry was EUR 69.7 million, compared to EUR 61.2 million in the previous year. The decisive factor here was significantly higher order entry in the Lithography division, which exceeded the previous year's amount by approximately 25.9 percent. Corporate sales of EUR 55.1 million in the first half of the year could not match the high level of the previous year and were 20.6 percent below the corresponding figure of 2014 (H1 2014: EUR 69.4 million). The order backlog as of June 30, 2015 amounted to EUR 91.4 million (June 30, 2014: EUR 77.7 million).

The Company's largest division, Lithography, recorded an approximately 16.3 percent drop in sales in the first half of the year to EUR 36.6 million (previous year: EUR 43.8 million). The Substrate Bonder division showed a lower contribution to sales of EUR 5.1 million (previous year: EUR 15.2 million). This corresponds to a decrease of approximately 66.4 percent. The Photomask Equipment division was able to contribute increased

Walter Braun, Chief Operating Officer of SUSS MicroTec AG

Dr. Per-Ove Hansson, Chief Executive Officer of SUSS MicroTec AG

Michael Knopp, Chief Financial Officer of SUSS MicroTec AG

sales of EUR 9.7 million (previous year: EUR 7.8 million). Sales of EUR 3.6 million in the Others division rose from the previous year (previous year: EUR 2.7 million).

The gross profit margin for SUSS MicroTec Group was able to grow slightly in the first half of the year to 33.0 percent (H1 2014: 32.3 percent).

Earnings before interest and taxes (EBIT) of EUR -3.9 million were lower than the EUR 3.4 million of the previous year.

Earnings after taxes (EAT) amounted to EUR -4.6 million, compared to EUR 2.0 million in the previous year. The basic earnings per share (EPS) totaled EUR -0.24 (previous year: EUR 0.11).

Free cash flow, excluding the effects of securities purchases and sales, totaled EUR -13.2 million in the first half of the year (previous year: EUR -2.4 million). As of June 30, 2015, the SUSS MicroTec Group therefore had cash and interest-bearing securities of

Garching, Germany, August 5, 2015

The Management Board

Dr. Per-Ove Hansson, Chief Executive Officer Michael Knopp, Chief Financial Officer Walter Braun, Chief Operating Officer

EUR 35.2 million (June 30, 2014: EUR 44.1 million). The net cash position of EUR 25.6 million was lower than the EUR 38.0 million as of December 31, 2014 (June 30, 2014: EUR 33.3 million).

Outlook

Based on the order backlog as of the end of the first half of 2015 and the expected order entry development for the second half of 2015, the Company forecasts sales for the current fiscal year in the range of EUR 135 million to EUR 145 million as well as slightly positive earnings before interest and taxes (EBIT) in the low single-digit million Euro area.

For the third quarter of 2015, the Management Board anticipates order entry in the range of EUR 25 to 35 million. Due to the expected revival of customer demand, the Company considers it possible for order entry to return to the range of EUR 30 to 40 million in the fourth quarter of 2015.

Highlights First Half of 2015

Cooperative Agreement with NuFlare Technology

In January 2015, SUSS MicroTec announced a cooperative agreement with Nuflare Technology, a Japanese equipment manufacturer. Through this cooperation the Company is strengthening its Photomask Equipment division in a targeted manner. Nuflare has a very good market position in the area of photomask equipment, enabling collaboration on promising technologies and new process solutions in this area.

Appointment of Dr. Per-Ove Hansson as Chief Executive Officer

On May 1, 2015, the Supervisory Board of SUSS MicroTec AG appointed Dr. Per-Ove Hansson as Chief Executive Officer to the Management Board of SUSS MicroTec AG. In his previous career, he was able to acquire experience in various strategic and general management positions at leading, globally operating semiconductor capital equipment firms. A physicist born in Sweden, he carried out research for his doctoral dissertation at the Max Planck Institute for Solid State Research in Stuttgart. During his career, he has led numerous new and existing product lines to commercial success. He successfully directed the restructuring of major organizations, leading to significant cost reductions, and helped manage strategic M&A activities.

TDK Places a Large Lithography Tools Order

Already in the fourth quarter of 2014, the Company had received a large order for various lithography tools from TDK. Delivery and installation were completed in the first quarter of 2015. The order, whose size is in the double-digit million euro range, includes several Mask Aligners and Coater /Developer Clusters for use in serial production. The tools are designed for advanced packaging applications for high frequency filters that are used in smartphones and tablets. With the installation of these SUSS MicroTec tools, TDK increased its production capacity in Munich.

"We chose the lithography tools from SUSS MicroTec because we need a reliable and competent technology partner for our sophisticated applications, such as the new die-sized SAW packages (DSSP®). Quality and cost of ownership are very important to us. Besides that, SUSS MicroTec offered short and flexible delivery times, which is crucial in this demanding market environment," said Otto Graf, Chief Operating Officer of TDK's Business Group Systems, Acoustics, Waves.

Shareholders' Meeting of SUSS MicroTec AG

This year's annual Shareholders' Meeting was held on June 2, 2015 at the Haus der Bayerischen Wirtschaft (House of the Bavarian Economy) in Munich. In total, approximately 80 shareholders, shareholder and bank representatives, and guests joined the Company at the meeting in Munich. More than 25 percent of the Company's equity capital was present.

In addition to the decision about the discharge of liability for the Management Board and the Supervisory Board, a vote was held on revising the articles of incorporation regarding the remuneration of the Supervisory Board. The shareholders of the Company approved all of the resolution proposals.

Partnership with Georgia Tech in the Area of Semiconductor Packaging

The Georgia Institute of Technology, known as Georgia Tech, will collaborate with SUSS MicroTec particularly in the areas of nanotechnology, biomedical applications, and semiconductor packaging (3D). As part of their broadening alliance, a SUSS MicroTec Mask Aligner will be added to a cluster of equipment at Georgia Tech's Institute for Electronics and Nanotechnology (IEN). This facility specializes in developing and manufacturing biomedical tools.

In addition, since the beginning of 2015, SUSS MicroTec has been a member of Georgia Tech's Packaging Research Center (PRC). Advanced illumination systems, such as excimer laser ablation systems, are being used and researched for via drilling on nonphotosensitive materials. "Excimer laser ablation enables micropatterning without using photosensitive materials and conventional photolithographic processes such as coating, exposure, developing, and etching," said Professor Tummala Rao, Director of the Georgia Tech Packaging Research Center.

Investor Relations

Current Business Situation Stable and Outlook Slightly Positive

According to current estimates of the ifo Institute in Munich, the economy in the eurozone will continue to develop dynamically in the 2015 fiscal year. Economic output will grow in both the third and fourth quarters by 0.5 percent, following 0.4 percent growth in the first and second quarters. In addition, the world economic climate will continue to brighten, according to the ifo-World Economic Survey, May 2015. The low price of oil is providing an ongoing stimulus. The greatest impediment to an accelerated economic upturn is the debt situation of individual countries, according to the ifo experts.

The Stock Market in the First Half of 2015

After a strong start to the year, with values over 12,000 points, the DAX ended the first half of 2015 at a closing price of 10,945 points. Although the values at the end of the first quarter of 2015 were at times well above the 12,000 point threshold, the DAX had to accept significant losses over the further course of the year. The picture was marred in the first half of the year particularly by the situation in Ukraine and the tense relationship with Russia. At the end of the second quarter, discussions about the intensifying debt situation in Greece and a possible exit from the eurozone dominated economic current events. The stock exchanges responded to the difficult situation in Greece with severe price volatility at times.

The SUSS MicroTec Share

The SUSS MicroTec share performed well in the first quarter of 2015 and was able to increase from a closing price of EUR 4.88 at the beginning of the year by 17 percent to EUR 5.72 as of March 31, 2015. Already during the first quarter, the SUSS MicroTec share exceeded the EUR 6 threshold for a short time and was able to increase again in April to more than EUR 6. Over the course of the the second quarter, the price fell again and moved with few exceptions within a range of EUR 5.10 to EUR 5.60. On 06/30/15, the share ended the first half of 2015 at a closing price of EUR 5.08. This corresponds to an increase of 4 percent from the beginning of the year.

Over the same period, the TecDAX gained 19 percent, while the Prime IG benchmark index rose by even 28 percent. The average daily trading volume of SUSS MicroTec shares on the German XETRA and Frankfurt stock exchanges in the first half of 2015 amounted to approximately 168 thousand (H1 2014: average daily trading volume of approximately 85 thousand shares).

2015 Shareholders' Meeting

On June 2, 2015, the ordinary Shareholders' Meeting was held at the Haus der Bayerischen Wirtschaft (House of the Bavarian Economy) in Munich. In total, approximately 80 shareholders, shareholder and bank representatives, and guests joined the Company at the meeting in Munich. Thus 25.38 percent of the Company's equity capital was present. The shareholders of the Company approved all of the resolution proposals presented by the Management Board and the Supervisory Board at this year's ordinary Shareholders' Meeting.

In his report, Chief Financial Officer Michael Knopp discussed the key developments and results of the past fiscal year and the first quarter of 2015 and confirmed the outlook for the entire 2015 fiscal year.

SUSS MicroTec Share Performance in 2015

SUSS MicroTec Share Performance in 2015

SUSS MicroTec share price on January 2, 2015: 4.88 €

SÜSS MicroTec AG, indexed TecDAX, indexed Prime IG Semiconductor, indexed

Interim Group Management Report 11
O
verview of the business development
11
O
rders Position and Sales by Region
11
Business Development in the Individual Divisions 12
Cost of Sales and Gross Profit 14
O
ther Expenses and Income
14
Financial Result and Taxes 14
Financial Position 14
A
ssets Position
15
Group Employees 16
P
otential
16
Subsequent Events 18
Forecast Report 18
Financial Report 20
Consolidated Statement of Income (IFRS) 20
Statement of Comprehensive Income (IFRS) 21
Consolidated Balance Sheet (IFRS) 22
Consolidated Statement of Cash Flows (IFRS) 24
Consolidated statement of shareholders' equity (IFRS) 26
Segment Reporting (IFRS) 28
Selected Explanatory Notes to the Consolidated Interim Report 30
Service 33
L
egal Structure
33
Financial Calendar 2015 34
Credits and Contact 34

10

Consolidated Interim Management Report

Interim Group Management Report

of SUSS MicroTec AG

Overview of the business development

In the first half of 2015, the Company generated order entry of € 69.7 million, an increase of 13.9% from the previous year (previous year: € 61.2 million). Sales of € 55.1 million in the first half of 2015 could not match the level of the previous year and were 20.6%% below the figure in 2014 (H1 2014: € 69.4 million). The order backlog as of June 30, 2015, thus amounted to € 91.4 million (June 30, 2014: € 77.7 million). Earnings before interest and taxes (EBIT) of € -3.9 million were lower than the € 3.4 million of the previous year, as expected.

Orders Position and Sales by Region

For the first half of 2015, all regions except for Japan recorded a rise in order entry: EMEA reached an increase of approximately 2.1%; North America and the rest of Asia registered an increase of approximately 12.9% and 27.7%, respectively. The region of Japan had to accept a drop of approximately 71.4% after a strong first half of 2014.

Regional sales mostly displayed declines in the first half of the year. While the region of North America alone recorded an increase of approximately 22.7%, EMEA and Japan booked declines of 22.2% and 52.7%, respectively. Sales in the Rest of Asia fell by approximately 26.1%.

Order Entry by Region in € million

Business Development in the Individual Divisions

Lithography

The Lithography division includes the development, manufacture, and sale of the Mask Aligner, UV Projection Scanner, Laser Processing Tools, Developer, and Coater product lines. Mask Aligners, Coaters and Developers are manufactured in Germany at the locations in Garching near Munich and Sternenfels. UV Projection Scanners and Laser Processing Tools are manufactured in a site in Corona, California (USA). With a contribution to sales of more than 60%, the Lithography division is SUSS MicroTec Group's largest division. The components that are manufactured with these tools are sent primarily to the end markets of advanced packaging, microelectromechanical systems, compound semiconductors (LED), and 3D integration.

The Lithography division recorded a significant increase in order entry in the first six months of the 2015 fiscal year. Order entry of € 53.9 million was 25.9% higher than its total of € 42.8 million a year earlier. Division sales in the first half of 2015 amounted to € 36.6 million after € 43.8 million in the first half of the previous year. Overall the gross profit margin fell from 36.7% to 32.2%. The major reasons are a generally lower sales level as well as a lower share of Mask Aligner sales. Division earnings decreased accordingly from € 4.2 million to € -1.5 million.

Lithography Division Overview

in € million H1/2015 H1/2014
Order entry 53.9 42.8
Division sales 36.6 43.8
Division earnings -1.5 4.2
Net assets 54.9 31.2

Substrate Bonder

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

In the first half of 2015, the Substrate Bonder division recorded a decrease in order entry from the previous year's period, reaching € 3.4 million after € 6.5 million a year earlier. In the first six months, sales fell from € 15.2 million in the same period of the previous year to € 5.1 million. The reason for the significant decline in order entry and sales was the termination of production in the Bond Cluster product line in the Permanent Bond Systems area. The gross profit margin increased again from 10.3% to 26.0%. Division earnings were € -1.7 million due to low sales (H1 2014: € -1.2 million).

Substrate Bonder Division Overview

in € million H1/2015 H1/2014
Order entry 3.4 6.5
Division sales 5.1 15.2
Division earnings -1.7 -1.2
Net assets 8.4 9.0

Photomask Equipment

The Photomask Equipment division, which is located at the Sternenfels site near Stuttgart, comprises the development, manufacture, and sale of specialized tools for the cleaning and processing of photomasks for the semiconductor industry. Among the markets targeted by the Photomask Equipment division is the semiconductor industry, where SUSS MicroTec is active on the front-end.

The Photomask Equipment division recorded stable order entry of € 9.2 million in the first half of 2015 (H1 2014: € 9.1 million) as well as higher division sales of € 9.7 million (H1 2014: € 7.8 million). The gross profit margin in this division declined from 39.8% to 35.6%. Division earnings declined accordingly to a positive amount of € 1.0 million in the first half of the year (H1 2014: € 1.6 million). In the first half of 2014 the Photomask Equipment division had profited from the reversal of a value adjustment for receivables in the amount of € 0.5 million.

Photomask Equipment Division Overview

in € million H1/2015 H1/2014
Order entry 9.2 9.1
Division sales 9.7 7.8
Division earnings 1.0 1.6
Net assets 5.2 2.8

Others

The Others division comprises Micro-optics activities at the Hauterive, Switzerland location, the C4NP business, and the costs for central Group functions that generally cannot be attributed to the main divisions.

In the first two quarters of 2015, division sales increased from the previous year to € 3.6 million, while order entry rose to € 3.2 million (previous year: € 2.8 million). Division earnings of € -1.7 million were below € -1.2 million in the previous year. The division earnings deteriorated due to foreign currency losses amounting to € -0.5 million in the first half of 2015, whereas in the first half of 2014 foreign currency gains amounted to € 0.1 million.

Others Division Overview

in € million H1/2015 H1/2014
Order entry 3.2 2.8
Division sales 3.6 2.7
Division earnings -1.7 -1.2
Net assets 20.7 19.1

Cost of Sales and Gross Profit

The cost of sales included write-downs of € 0.1 million on capitalized development costs, which accrues completely to the Lithography division. In the first half of 2014, write-downs on capitalized development costs amounted to € 0.2 million; this amount was also allocated entirely to the Lithography division. In both 2015 and 2014, only minor capitalizations were carried out. The remaining book value of approximately € 0.3 million as of June 30, 2015 was entirely attributable to the Lithography division.

In the first half of 2015, the entire gross profit of all product lines amounted to € 18.2 million after € 22.4 million in the first half of the previous fiscal year. However, the average gross profit margin increased slightly from 32.3% in the same period of the previous year to 33.0%.

Other Expenses and Income

Through the continued systematic implementation of the cost-saving program, the administrative costs of the Company remained constant in the first half of 2015, again totaling € 6.5 million (first half of 2014: € 6.5 million). The selling costs declined slightly to € 8.2 million (first half of 2014: € 8.4 million).

By contrast, the research and development costs increased significantly to € 6.4 million after € 4.9 million in the comparable period of the previous year. The reasons for the higher expenses were several new hires in this area and a stronger tendency to resort to external service providers and partners. Increased personnel capacity for research and development gives SUSS MicroTec the opportunity to expand its activities in this area further.

Other operating income totaled € 2.0 million after € 1.9 million in the first half of 2014. Of that amount, € 1.5 million related to foreign currency gains (first half of 2014: € 0.7 million).

Other operating expenses of € 3.0 million included foreign currency losses of € 2.0 million and additions to value adjustments for receivables of € 0.3 million. In addition, provisions of € 0.5 million were formed for the relocation of SUSS MicroTec, Inc. (Sunnyvale, USA). In order to simplify the organization of the North American SUSS MicroTec companies, it is planned to move the sales company SUSS MicroTec, Inc., which was previously headquartered in Sunnyvale (near San Francisco, USA), to Corona (southern California, USA) and to consolidate it with SUSS MicroTec Photonic Systems Inc., which is located there. The relocation should take place in August 2015. Beginning in 2016, we expect annual savings of approximately € 0.5 million from the simplification of the corporate structure in North America and the streamlining of administration as a result of consolidating at one site. In the first half of the previous year, other operating expenses amounted to € 1.1 million. Of this amount, € 0.6 million was attributed to foreign currency losses and € 0.3 million to additions to value adjustments for receivables.

Financial Result and Taxes

The financial result in the first half of 2015 amounted to € -0.1 million, reflecting interest income and expenses. In the previous year, the financial result also totaled € -0.1 million.

In the first half of 2015, a tax expense of € 0.6 million was recognized. This resulted in a consolidated tax rate that significantly deviated from the average consolidated tax rate of approximately 28%. This development is essentially due to the fact that it was not possible to recognize deferred tax assets for the losses incurred by foreign subsidiaries. In the previous year, a tax expense of € 1.3 million was recognized.

Financial position

The SUSS MicroTec Group's net cash position – the balance from cash and cash equivalents, interest-bearing securities, and financial liabilities – fell by approximately € 12.4 million when compared with December 31, 2014 to approximately € 25.6 million.

Before consideration of securities purchases and sales, free cash flow of € -13.2 million was negative in the first half of the year. One reason for this was negative cash flow from operating activities of € -11.7 million. Another reason was negative cash flow from investing activities of € -1.5 million. In the first half of 2014, free cash flow was also negative at € -2.4 million.

In the first half of 2015, cash flow from operating activities totaled € -11.7 million. It was affected in part by negative current earnings of € -4.6 million. Furthermore, the strong build-up of inventory stock led to cash outflows of approximately € 15.5 million. As of June 30, 2015, the Group shows a larger inventory of tools, which have already been delivered to end customers but for which final acceptance and therefore revenue recognition are still outstanding. Additional cash outflows resulted from higher VAT receivables as well as lower provisions. However, the significant increase in customer down payments led to cash inflows of € 6.3 million.

Cash flow from investing activities totaled € -1.5 million, excluding investments in securities. Some of the largest capital expenditure items in the first half of 2015 were the procurement and expansion of software necessary for business. For example, on May 1, 2015 SUSS MicroTec Photonic Systems Inc. (Corona, USA) was successfully connected to the Group-wide SAP system. At SUSS MicroTec AG, this accounted for capital expenditure totaling € 0.9 million, of which € 0.5 million was already recognized in the previous year. In addition, investments were made in business and office equipment and technical equipment and machinery at all production sites.

Cash flow from financing activities indicated the further repayment of two bank loans and a slight increase in other financial liabilities.

The Group's cash and cash equivalents denominated in foreign currencies are primarily held by foreign Group companies. Their value increased by approximately € 0.7 million on balance as a result of being exchanged into euros on June 30, 2015. The effect of the valuation was recognized without effect on profit and loss in other comprehensive income.

Besides cash and cash equivalents of € 19.2 million (December 31, 2014: € 47.3 million) and securities of € 16.0 million (December 31, 2014: € 1.0 million), the Group had credit and guarantee lines of € 8.0 million as of the half-year reporting date, which were predominantly secured in line with banking practice and were not bound to financial covenants. The utilization of these credit lines amounted to € 1.2 million as of the half-year reporting date and primarily related to down payment guarantees for customer down payments. Thus, the Group has sufficient funds at its disposal to finance the operational business.

Assets position

Noncurrent assets totaled € 44.8 million as of the half-year reporting date and were thus nearly unchanged from December 31, 2014.

Current assets of the Group rose by € 2.9 million from € 123.2 million (December 31, 2014) to € 126.1 million as of the half-year reporting date.

As of June 30, 2015, the disclosed amount of inventories increased significantly. As of the half-year reporting date, the gross amount of inventories totaled € 95.6 million, approximately € 17.1 million higher than as of December 31, 2014. The sharp increase is primarily attributable to the high inventory of tools, which had already been delivered to end customers as of June 30, 2015 but for which final acceptance (and therefore revenue recognition) was still outstanding. In addition, the inventories of materials and supplies increased when compared with December 31, 2014, while the inventories of unfinished goods remained nearly constant. However, inventories of demonstration equipment declined slightly. The value adjustments made for inventory have increased from the end of the previous year, totaling approximately € 21.6 million as of June 30, 2015 (after € 19.6 million as of December 31, 2014). Of this amount, approximately € 12.6 million (December 31, 2014: € 11.5 million) was attributable to write-downs for demonstration equipment.

Trade receivables have changed only slightly from December 31, 2014: They decreased by € 0.5 million due to the reporting date and amounted to € 12.9 million as of mid-year.

The negative cash flow generated in the first half of the year and the acquisition of securities led to a sharp decline in the level of cash and cash equivalents, which still amounted to € 19.2 million as of June 30, 2015 (after € 47.3 million as of December 31, 2014). However, the portfolio of securities increased in the first half of 2015 by € 15.0 million to € 16.0 million as of the half-year reporting date. In the first six months of the current fiscal year, securities were acquired for approximately € 85.0 million with available cash and cash equivalents. Securities valued at approximately € 70.0 million reached their maturity date in this half of the year and were redeemed. The securities recognized as of the half-year reporting date involve commercial papers with a remaining term of up to six months.

The rise in other assets from € 1.7 million as of December 31, 2014 to € 3.6 million resulted primarily from higher VAT receivables, which arose due to the reporting date.

The shareholders' equity of the SUSS MicroTec Group has decreased since December 31, 2014 by € 1.8 million to € 114.3 million. The equity ratio increased from 65.8% to 66.9%.

Additional details about the development of consolidated equity are presented in the equity reconciliation statement.

Noncurrent liabilities decreased from € 13.9 million to € 13.5 million. The decline resulted primarily from the repayments of bank loans totaling € 0.7 million that were undertaken in the first half of 2015. By contrast, pension provisions increased slightly.

In the first half of 2015, current liabilities grew significantly by € 5.2 million to € 43.1 million. The development of received customer down payments, which rose from € 18.0 million as of the end of 2014 to € 24.5 million, accounted for the majority of the increase. Trade payables increased due to the reporting date from € 3.4 million as of December 31, 2014 to € 4.6 million. However, current provisions, which still amounted to € 3.3 million as of the end of 2014, declined to € 2.6 million. The decline resulted primarily from the payment of a severance payment for a former member of the Management Board. In addition, other financial liabilities of € 4.0 million were much lower than on December 31, 2014, when € 5.8 million were still recognized. The major factors here were lower obligations for premiums and commissions as well as lower obligations for external services.

Group employees

As of June 30, 2015, the Group had 683 employees within the individual companies (June 30, 2014: 649 employees).

Potential

Opportunities and Risks for the Future Development of the SUSS MicroTec Group

The goal of our opportunity and risk management is to maintain and increase the enterprise value of the SUSS MicroTec Group. Our corporate goals include the early and successful detection of opportunities, the identification and suitable assessment of the related risks, and an appropriate response. The diverse opportunities for our Group result from technology leadership in our businesses, our broad spectrum of products and solutions for the semiconductor equipment industry, collaborations with international customers and research institutes, and our global positioning.

We define opportunities and risks as follows:

  • Opportunities are possible future developments or events that can lead to a deviation from forecasts or targets that is positive for the Group.

  • Under risks, we understand possible future developments or events that can lead to a deviation from forecasts or targets that is negative for the Group.

The analysis and assessment of opportunities and risks for the Group is the subject of continuous deliberations by the Management Board and the management of the Group. On the basis of an opportunity-oriented, but simultaneously risk-conscious management, however, the Company's fundamental goal is not to avoid all potential risks. Instead, it constantly aims to achieve an optimum level of risk avoidance, risk reduction, and the controlled acceptance of risk. An awareness of risks should not interfere with the ability to identify risks and to use them for the benefit of the Company and its shareholders.

The risk management system has long been a component of corporate management for the purpose of recognizing and controlling risks, and for meeting legal requirements. For a detailed discussion of the functioning of the risk management system, the related risk assessment, and resulting risk management, we refer to the 2014 Annual Report.

Macroeconomic, Strategic Corporate, and Sector and Market-Specific Opportunities and Risks

In the last Annual Report, we described in detail in the Risk Report the opportunities and risks that we see for our Group in the macroeconomic environment, in the context of strategic corporate decisions, and in our sector and market environment. In the first half of the current fiscal year, there were no substantial changes to the outlined risks and opportunities and our assessment.

Operational Opportunities and Risks

In the 2014 Annual Report, we cited technological refinements and improvements in the high-sales Mask Aligner and Coater /Developer product lines as operational opportunities. We viewed winning additional orders for our UV projection lithography and laser processing technologies as opportunities and described options for the scanner systems (DSC300, DSC500). Furthermore, we discussed opportunities for the restructured Substrate Bonder division. In the Photomask Equipment division, we presented our solidified market position and the high sales and margins that can be achieved with few individual orders. In the first half of 2015, there were no substantial changes to the outlined opportunities and our assessment.

In the 2014 Annual Report, we discussed in detail our position on the operational risks that could have a negative impact on the business performance of the SUSS MicroTec Group. The principal risks that we identified involved potentially lower sales of Mask Aligners, the conceivable loss of market share for Coaters, and the continued lack of profitability for our UV projection lithography and laser processing product lines. In addition, we critically analyzed our market position in the Substrate Bonder division both for permanent bonding and for temporary bonding. In the first half of 2015, nothing changed in the fundamental risk structure and our assessment.

Development-Specific Opportunities and Risks

In the 2014 Annual Report, we clearly laid out our intention to expand development activities significantly above all for the Mask Aligner and Coater /Developer product lines as well as for the Photomask Equipment division. Accordingly, in the first half of 2015, we hired more employees for our development departments but also increasingly resorted to external service providers and partners. As a result, development expenses increased significantly in the first two quarters of 2015 compared with the corresponding period of the previous year.

In last year's Annual Report, we described development-specific risks involving our product policy and customer satisfaction. Material risks could result if our ability to innovate turns out to be inadequate or if our development projects fall short of their goals. In addition, a possible loss of market leadership in individual areas could present a material risk for our sales development. These risks remain unchanged in 2015.

Other Opportunities and Risks

In the 2014 Annual Report, we discussed in detail employeespecific and financial opportunities and risks as well as information technology risks. There were no significant changes in our assessment of these opportunities and risks in the first half of 2015.

In the 2014 Annual Report, we described as financial opportunities and risks the positive and negative effects that could result from changes in foreign currency exchange rates relative to the euro. In the first half of 2015, the substantial change in the euro's value relative to other currencies had a significant effect on the Group's EBIT. As a result, foreign currency gains in the first six months of the current fiscal year amounted to approximately € 1.5 million, while in the comparable period of the previous year they totaled only € 0.7 million. The foreign currency losses in the first half of 2015 came to € 2.0 million, while foreign currency losses of € 0.6 million accrued in the first half of 2014. The net result was that EBIT in the first half of 2015 was impaired by negative foreign currency effects of € 0.5 million. EBIT in the first half of 2014 had positive foreign currency effects of € 0.1 million.

Risk Management System

The risk management system described in the 2014 Annual Report continued to be used in the first half of 2015.

Subsequent Events

No material events requiring disclosure occurred after the end of the interim reporting period.

Report on Material Transactions with Related Parties

In the first half of 2015 and the 2014 fiscal year, there were no material transactions with related parties subject to the disclosure requirements of IAS 24.

Forecast Report

The business environment in which SUSS MicroTec operates is influenced by regional and global economic conditions as well as industry developments. The following forecast report provides an explanation of internal and external factors that both the Company and leading market and industry observers regard as essential for the development of the Company.

Overall Macroeconomic Conditions

The German economy grew noticeably in the second quarter of 2015. This was also reflected by the business barometer of the German Institute for Economic Research (DIW Berlin), which indicated an increase in gross domestic product of at least 0.5% in the second quarter of 2015 compared to the previous quarter. According to DIW, the German economy is currently growing robustly and will continue to expand, albeit at a slightly lesser pace.

After several difficult years, the recovery of the world economy is continuing. The slight upturn is being borne to a large extent by consumer trends in the industrial countries. In the eurozone, consumer demand is supporting economic growth. However, negative structural factors should not be disregarded. In particular, public and private debt is holding back demand. According to DIW, the overall growth rate of the world economy should be approximately 3.8% in 2015 and 4.0% in the following year.

Industry-specific Conditions

Semiconductor Industry

In the 2014 fiscal year, the entire semiconductor market grew by approximately 7.9% from US\$ 315.4 billion to US\$ 340.3 billion (source: Gartner; April 2015). After Gartner analysts had forecast growth in the entire semiconductor industry of 5.4% in January 2015, estimates were cut in April 2015 to 4.0% and in July 2015 again to growth of only 2.2%. The reasons cited for lower anticipated growth were the strong US dollar exchange rate and the expectation of less growth for smartphones, tablets, and PCs. The frequent and significant adjustment of estimates indicates that the reliability of forecasts should be fundamentally viewed as limited in a volatile market. Minor instability in the global economy or even regional events could lead to substantial deviations from projections.

Semiconductor Equipment Industry

After a decline in 2012 and 2013 by 15% in each year, the semiconductor equipment market started to grow again in 2014. The overall market segment grew from US\$ 31.79 billion to US\$ 37.50 billion, representing growth of approximately 18% (Source: SEMI; July 2015). For the 2015 and 2016 fiscal years, the SEMI industry association (Semiconductor Equipment and Materials International) anticipates additional upturns in the equipment sector of initially 7.1% and 4.1% in the following year. As a result, a market volume of US\$ 41.79 billion is forecast in the fiscal year.

Expected Development in the Major Markets

Microelectromechanical Systems

The market for microelectromechanical systems (MEMS) has demonstrated a rapid development pace so far. According to estimates by the Yole Développement market research institute, the entire MEMS market had a total volume of approximately US\$ 5 billion in 2000. In 2014, it had already grown to US\$ 11.1 billion and Yole expects a market volume of approximately US\$ 20 billion by 2020. The unit volume growth of individual MEMS components is much higher, but due to pricing pressure and new designs the market volume is growing more slowly than unit volume. It also has to be taken into consideration that in the equipment sector the growth in the machinery will be significantly less than the unit volume growth due to efficiency gains, increases in throughput and yield, and the trend to greater wafer diameters.

Advanced Packaging and 3D Integration

Today the concept of advanced packaging encompasses a variety of technologies, such as wafer level packaging (WLP), where the respective touchdowns already occur while the individual chips are still located on the wafer. In addition, there are the subforms fan-in and fan-out WLP, flip chip bonding, wafer-level chip-scale packaging, and both 2.5D and 3D integration. SUSS MicroTec is particularly active in this field with its lithographic and temporary bonding solutions.

According to the Gartner market research institute, the market for wafer-level packaging and assembly equipment grew in 2014 by 14.3% to approximately US\$ 1.7 billion (previous year: -17.8%), thereby once again falling short of the original growth expectations. In a July 2015 study, Gartner expects weaker growth of 5.3% to a total volume of approximately US\$ 1.8 billion in 2015, while slightly lower market volume is forecast for 2016.

Compound Semiconductors (LEDs)

Except for the years 2010 and 2011, the market for compound semiconductors (LED) has always played a subordinate role for SUSS MicroTec. Its share of total sales for the Company was well under ten% in the 2014 fiscal year. From today's perspective, a renewed and noticeable increase in this share cannot be seen. The main reason for this is increased competition, particularly from China. Here equipment providers can deliver adequate quality for the LED market at much more favorable prices than SUSS MicroTec. SUSS MicroTec focuses on technologically demanding niche markets, which are much less price-sensitive. Overall, the Yole market research institute expects that the equipment market for LEDs will continue to grow in 2015 and 2016 but is assuming a significant decline in the market volume of equipment starting in 2017.

Endogenous Indicators

Cooperative agreements with respected universities, research institutes, and technology-driven companies are an important part of our corporate strategy.

As recently as January 2015, SUSS MicroTec initiated a cooperative agreement with Nuflare Technology, a Japanese equipment manufacturer. Through this cooperation the Company is strengthening its Photomask Equipment division in a targeted manner. Nuflare has a very good market position in the area of photomask equipment, enabling collaboration on promising technologies and new process solutions in this area.

In addition, in the first half of 2015, a cooperative agreement commenced with the Georgia Institute of Technology (Georgia Tech). Georgia Tech will collaborate with us in the areas of nanotechnology, biomedical applications, and semiconductor packaging (3D). In addition, since the beginning of 2015, SUSS MicroTec has been a member of Georgia Tech's Packaging Research Center (PRC). Advanced illumination systems, such as excimer laser ablation systems, are being used and researched for via drilling on non-photosensitive materials.

Statement on the Projected Development of the Group

Based on the order backlog as of the end of the first half of 2015 and the expected order entry development for the second half of 2015, the Company forecasts sales for the current fiscal year in the range of EUR 135 million to EUR 145 million as well as slightly positive earnings before interest and taxes (EBIT) in the low single-digit million Euro area.

For the third quarter of 2015, the Management Board anticipates order entry in the range of EUR 25 to 35 million. Due to the expected revival of customer demand, the Company considers it possible for order entry to return to the range of EUR 30 to 40 million in the fourth quarter of 2015.

Forward-looking Statements

This Interim Report contains information and forecasts that refer to the future developments of the SUSS MicroTec Group and its companies. The forecasts are assessments that the Company has made based on all of the information available to it at the present time. Should the assumptions on which these forecasts are based not occur or the risks – as addressed in the risk report – arise, the actual results may deviate from those currently expected.

Garching, Germany, August 5, 2015

The Management Board

Dr. Per-Ove Hansson, Chief Executive Officer Michael Knopp, Chief Financial Officer Walter Braun, Chief Operating Officer

Financial Report

of SUSS MicroTec AG

Consolidated Statement of Income (IFRS)

04/01/2015–
06/30/2015
04/01/2014–
06/30/2014
01/01/2015–
06/30/2015
01/01/2014–
06/30/2014
28,105 30,411 55,052 69,427
-18,742 -18,828 -36,890 -47,065
9,363 11,583 18,162 22,362
-4,223 -4,365 -8,244 -8,399
-3,182 -2,608 -6,355 -4,852
-3,154 -3,140 -6,548 -6,535
485 933 2,041 1,883
-1,042 -536 -2,980 -1,069
-727 2,885 -1,869 5,421
-1,026 -1,018 -2,055 -2,031
-1,753 1,867 -3,924 3,390
53 91 170 185
-108 -125 -283 -279
-55 -34 -113 -94
-1,808 1,833 -4,037 3,296
-291 -948 -569 -1,287
-2,099 885 -4,606 2,009
-2,099 885 -4,606 2,009
0 0 0 0
-0.11 0.05 -0.24 0.11
-0.11 0.05 -0.24 0.11

Statement of Comprehensive Income (IFRS)

in €thousand 01/01/2015–06/30/2015 01/01/2014–06/30/2014
Net profit / loss -4,606 2,009
Items that will not be reclassified to profit and loss
Remeasurements on defined benefit pension plans 0 0
Deferred taxes 0 0
Other comprehensive income after tax for items that will not
be reclassified to profit and loss
0 0
Items that will be reclassified subsequently to profit and loss
Fair value fluctuations of available for sale securities -12 5
Foreign currency adjustment 2,776 6
Cash flow hedges 70 -115
Deferred taxes -16 38
Other comprehensive income after tax for items that will be
reclassified to profit and loss
2,818 -66
Total income and expenses recognized in equity 2,818 -66
Total income and expenses reported in the reporting period -1,788 1,943
thereof equity holders of SUSS MicroTec AG -1,788 1,943
thereof non-controlling interests 0 0

Consolidated Balance Sheet (IFRS)

Assets in €thousand 06/30/2015 12/31/2014
Non-current assets 44,778 44,718
Intangible assets 4,608 4,471
Goodwill 15,716 15,546
Tangible assets 20,097 20,198
Tax refund claims 50 50
Other assets 606 563
Deferred tax assets 3,701 3,890
Current assets 126,126 123,246
Inventories 74,030 58,883
Trade receivables 12,854 13,390
Other financial assets 136 204
Securities 15,978 1,026
Tax refund claims 328 725
Cash and cash equivalents 19,194 47,309
Other assets 3,606 1,709
Total assets 170,904 167,964
Liabilities&Shareholders' Equity in €thousand 06/30/2015 12/31/2014
Equity 114,282 116,070
Total equity attributable to shareholders of SUSS MicroTec AG 114,282 116,070
Subscribed capital 19,116 19,116
Reserves 93,978 98,584
Accumulated other comprehensive income 1,188 -1,630
Non-current liabilities 13,480 13,929
Pension plans and similar commitments 5,006 4,751
Provisions 21 29
Financial debt 8,420 9,100
Other financial liabilities 33 49
Current liabilities 43,142 37,965
Provisions 2,554 3,238
Tax liabilities 1,207 1,495
Financial debt 1,193 1,187
Other financial liabilities 4,028 5,807
Trade payables 4,628 3,446
Other liabilities 29,532 22,792
Total liabilities&shareholders' equity 170,904 167,964

Consolidated Statement of Cash Flows (IF RS)

01/01/2015–06/30/2015 01/01/2014–06/30/2014
-4,606 2,009
656 738
1,399 1,293
30 -4
1,913 1,334
184 -356
0 -218
220 -275
-15,467 5,845
843 -137
-1,872 -368
255 41
874 -1,598
6,256 -7,402
-2,714 -2,626
298 484
-11,731 -1,240
in €thousand 01/01/2015–06/30/2015 01/01/2014–06/30/2014
Disbursements for tangible assets -819 -779
Disbursements for intangible assets -614 -422
Purchases of current available-for-sale securities -15,973 -25,876
Proceeds from redemption of available-for-sale securities 1,000 1,028
Cash flow from investing activities -16,406 -26,049
Repayment of bank loans -680 -680
Change in other financial debt 6 65
Cash flow from financing activities -674 -615
Adjustments to funds caused by exchange-rate fluctuations 696 61
Change in cash and cash equivalents -28,115 -27,843
Funds at beginning of the year 47,309 45,059
Funds at end of the period 19,194 17,216
Cash flow from operating activities includes:
Interest paid during the period 194 215
Interest received during period 182 208
Tax paid during the period 442 737
Tax refunds during the period 180 93

Consolidated statement of shareholders' equity (IFRS)

in €thousand Subscribed capital Additional
paid-in capital
Earnings reserve Retained earnings
As of 01/01/2014 19,116 97,614 433 -4,076
Net income/ loss 2,009
Total income and expenses recognized in equity
Total comprehensive income/ loss 2,009
As of 06/30/2014 19,116 97,614 433 -2,067
As of 01/01/2015 19,116 97,614 433 537
Net income/ loss -4,606
Total income and expenses recognized in equity
Total comprehensive income/ loss -4,606
As of 06/30/2015 19,116 97,614 433 -4,069
Equity Non
controlling
interests
Total equity
attributable to
shareholders of
­SUSS
MicroTec AG
Accumulated other comprehensive income
Items that will be reclassified to profit and loss in later periods Items that will not be reclassified
to profit and loss
Deferred
taxes
Fair value
fluctuations of
available-for
sale securities
Cash flow
hedges
Foreign currency
adjustment
Deferred
taxes
Remeasurements
on defined benefit
pension plans
109,432 0 109,432 80 30 -342 -2,425 333 -1,331
2,009 0 2,009
-66 0 -66 38 5 -115 6 0 0
1,943 0 1,943 38 5 -115 6 0 0
111,375 0 111,375 118 35 -457 -2,419 333 -1,331
116,070 0 116,070 133 11 -486 493 532 -2,313
-4,606 -4,606
2,818 2,818 -16 -12 70 2,776 0 0
-1,788 0 -1,788 -16 -12 70 2,776 0 0
114,282 0 114,282 117 -1 -416 3,269 532 -2,313

Segment Reporting (IFRS) Segment information by business segment

The Segment Reporting is part of the notes to the consolidated financial statements.,

Lithography Substrate Bonder
in €thousand 6M/2015 6M/2014 6M/2015 6M/2014
External Sales 36,629 43,776 5,122 15,153
Internal Sales 0 0 0 0
Total Sales 36,629 43,776 5,122 15,153
Result per segment (EBIT) -1,490 4,175 -1,697 -1,173
Income before taxes -1,498 4,156 -1,698 -1,175
Significant non-cash items -1,470 -627 -646 -844
Segment assets 82,005 53,824 10,555 12,793
thereof Goodwill 15,716 15,333 0 0
Unallocated assets
Total assets
Segment liabilities -27,112 -22,656 -2,109 -3,819
Unallocated liabilities
Total liabilities
Depreciation and amortisation 889 946 139 168
thereof scheduled 889 946 139 168
thereof impairment loss 0 0 0 0
Capital expenditure 487 494 65 117
Workforce at 06/30 429 395 98 99

Segment information by region

Sales Capital expenditure Assets (without Goodwill)
in € thousand 6M/2015 6M/2014 6M/2015 6M/2014 6M/2015 6M/2014
EMEA 17,497 22,503 1,311 1,071 86,586 67,742
North America 11,734 9,564 106 63 18,519 14,531
Japan 3,185 6,738 0 59 2,355 568
Rest of Asia 22,636 30,622 16 8 4,854 2,490
Consolidation effects 0 0 0 0 -724 -277
Total 55,052 69,427 1,433 1,201 111,590 85,054
Other Consolidation effects Total
6M/2015 6M/2014 6M/2015 6M/2014 6M/2015 6M/2014
3,615 2,672 55,052 69,427
2,819 2,109 -2,819 -2,109 0
6,434 4,781 -2,819 -2,109 55,052 69,427
-1,700 -1,218 -3,924 3,390
-1,801 -1,289 -4,037 3,296
-371 24 -2,573 -767
22,177 20,860 127,306 100,387
0 0 15,716 15,333
43,598 68,931
170,904 169,318
-1,515 -1,722 -38,098 -38,350
-18,524 -19,593
-56,622 -57,943
937 854 2,055 2,031
937 854 2,055
0 0 0
818 580 1,433
55
53
683

Selected Explanatory Notes to the Consolidated Interim Report

of SUSS MicroTec AG as of June 30, 2015

(1) General Accounting Policies

The consolidated financial statements of SUSS MicroTec AG as of December 31, 2014, have been prepared in accordance with the International Financial Reporting Standards (IFRS) applied by the International Accounting Standards Board (IASB) as of the closing date. The consolidated interim financial statements as of June 30, 2015, which were prepared on the basis of International Accounting Standards (IAS) 34 "Interim Financial Reporting," do not contain all of the necessary information as required for the preparation of the Annual Report and should be read in conjunction with the consolidated financial statements of SUSS MicroTec AG as of December 31, 2014. In the interim financial statements as of June 30, 2015, the same accounting methods were applied as in the consolidated financial statements for the 2014 fiscal year.

All of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in effect as of June 30, 2015 have been applied.

For additional information about specific accounting and measurement methods, please see the consolidated financial statements of SUSS MicroTec AG as of December 31, 2014.

The Group auditor has neither audited nor reviewed the interim financial statements.

(2) Changes in the Scope of Consolidation

The consolidated financial statements include the financial statements of SUSS MicroTec AG and of all material companies over which, independent of the level of its participatory investment, the proprietary company can exercise control (i.e. the control principle).

Compared with the consolidated financial statements as of December 31, 2014, there were no changes to the scope of consolidation.

(3) Mandatory Disclosures

The available-for-sale securities recognized in the statement of financial position include commercial papers with a remaining term of up to six months. The securities have been measured at market prices.

Other issues influencing assets, liabilities, shareholders' equity, the result for the period, or cash flows and unusual in terms of their nature, magnitude, or frequency did not arise during the interim reporting period.

(4) Change in Presentation

No changes in presentation have been made; the presentation of the consolidated financial statements of SUSS MicroTec AG as of June 30, 2015 is analogous to the presentation as of December 31, 2014.

(5) Changes in Estimates

To the extent that estimates were made in the interim reports, the methodology underlying the estimates remained fundamentally the same during the fiscal year and in comparison to the previous fiscal year.

In a departure from the approach used at the end of the fiscal year, income tax expense in each interim reporting period is recorded on the basis of the best estimate of the weighted average annual income tax rate that is expected for the entire fiscal year.

SUSS MicroTec AG currently assumes that the annual income tax rate will deviate from the expected tax rate of approximately 28%. The primary reason for this is that the losses accrued by foreign subsidiaries cannot be capitalized.

Otherwise there are no changes requiring disclosure that would have a material impact on the current interim reporting period.

(6) Bonds and Equity Securities

During the reporting period, no issuances, repurchases, or repayments occurred involving either bonds or other equity securities.

(7) Dividends Paid

During the reporting period, no dividend was distributed nor was such a distribution proposed.

(8) Significant Events After the End of the Interim Reporting Period

No material events occurred after the end of the interim reporting period.

(9) Contingent Liabilities and Receivables

There are no contingent receivables. There were no substantial changes in contingent liabilities since the previous reporting date of December 31, 2014.

(10) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period (net of minority interests) by the average number of shares.

In order to calculate diluted earnings per share, the profit or loss for the period attributable to shareholders (net of minority interests) and the weighted average of outstanding shares are adjusted for the impact of all potential dilutive shares.

The following table shows the calculation of the basic and diluted earnings per share:

in € thousand 6M/2015 6M/2014
Profit / loss which accrue to shareholders of SUSS MicroTec AG -4,606 2,009
Weighted average number of outstanding shares 19,115,538 19,115,538
Effect of the (potential) exercise of stock options (number of options) 0 0
Adjusted weighted average number of outstanding shares 19,115,538 19,115,538
Earnings per share in € – basic – -0.24 0.11
Earnings per share in € – diluted – -0.24 0.11

RESPONSIBILITY STATEMENT BY THE LEGAL REPRESENTATIVES

"To the best of our knowledge, we assure that in accordance with applicable accounting principles for interim reporting, the consolidated interim financial statements convey an accurate view of the net assets, financial position, and results of operations of the Group and that the Interim Management Report conveys an accurate view of the business performance, including the earnings and condition of the Company, and describes the essential opportunities and risks for the Group's future development in the remainder of the fiscal year."

Garching, Germany, August 5, 2015

The Management Board

Dr. Per-Ove Hansson, Chief Executive Officer Michael Knopp, Chief Financial Officer Walter Braun, Chief Operating Officer

Legal Structure

of SUSS MicroTec Group

Financial Calendar 2015

Investment Conference Bankhaus Lampe, Zurich August 27
TMT Conference Commerzbank, Frankfurt September 9
German Corporate Conference, Berenberg/Goldman Sachs, Munich September 23
Nine-month Report 2015 November 5
German Equity Forum 2015, Frankfurt am Main November 23 – 25

Credits

Published by SUSS MicroTec AG Edited by Finance, Julia Natterer Investor Relations, Franka Schielke Concept and Design Whitepark GmbH&Co., Hamburg Photography Creativ Fotostudio Allan Richard Tobis Translation English Business, Hamburg

ContaCt

SUSS MicroTec AG Schleissheimer Straße 90 85748 Garching, Germany Phone: +49 (0)89-32007-0 E-mail: [email protected]

Investor Relations Phone: +49 (0)89-32007-161 E-mail: [email protected]

Forward-looking statements: These reports contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based oncurrent plans, estimates, and projections,and should be understood as such. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution readers that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement.

SUSS MicroTec AG Schleissheimer Straße 90 85748 Garching, Germany Phone: +49 (0)89-32007-0 E-mail: [email protected]

www.suss.com

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