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SÜSS MicroTec SE
Investor Presentation • Nov 11, 2024
422_ip_2024-11-11_5e6e5e63-5d96-486f-9d07-31b51cc47cbb.pdf
Investor Presentation
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Conference Call Q3 2024
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.
Extraordinary, profitable growth continued in Q3 2024
Financial Results
$9 M 2024^{1}$
276.2
in € million
Order intake
9M 2024
$-1.8 \%$ YoY
295.3
in € million
Sales
9M 2024
+46.0\% YoY
39.6
in $\%$
Gross profit margin
9M 2024
+6.1pp YoY
16.1
in $\%$
EBIT margin
9M 2024
+9.8pp YoY
Key CEO messages
Q3 order intake was lower compared to previous quarters, as HBM customers are busy with the installation and ramp-up of high-volume production. Additionally, demand from China is normalizing noticeably in both divisions as expected.
With sales of $€ 102.5$ million and an EBIT margin of $16.9 \%$, Q3 was our best quarter this year so far. Our efforts to increase production capacity are paying off - we are delivering more tools to our customers than ever before.
We are working on further increasing our production capacity, not only due to the current high demand with an order book of $€ 430.8$ million, but also in preparation for further targeted growth in the coming years.
New, larger production site in Zhubei (Taiwan)
prepares us for further targeted growth
Signing
of long-term lease agreement for new production site in Zhubei took place on October 23, 2024.
Completion
of shell is scheduled for the end of 2024. We will then carry out cleanroom and office installations with expected CAPEX of € 15-20 million.
Production start
at the new site is expected in the second half of 2025. The new factory offers the potential to double production capacity under clean room conditions to $\sim 6,300 \mathrm{~m}^{2}$.
Segment News 9M 2024
Advanced Backend Solutions:
- Bonding systems remain major growth driver (sales almost tripled vs. 2023), while sales in Imaging and Coating systems remain below previous year's levels due to the subdued order situation in recent quarters
- Improved momentum for our coating systems with Q3.2024 orders significantly exceeding those of the first half of the year; improved order situation for imaging systems expected for Q4.2024
- Three consecutive quarters with gross profit margin $>40 \%$
Photomask Solutions:
- Expected normalization of Chinese customers' order behavior leads to $€ 16.0$ million decline in order intake to $€ 78.1$ million
- Order backlog at $€ 156.7$ million ensures full capacity utilization in production well into the second half of 2025
- Sales up by $55.9 \%$ year-on-year to $€ 86.5$ million
- Gross profit margin improved significantly year-on-year from $29.2 \%$ to $35.5 \%$; Q3 at $37.0 \%$ almost at Q2 level (37.6\%)
Strong growth and improving profitability in the first three quarters of 2024
| in € million | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|
| Order intake | 276.2 | 281.2 | $-1.8 \%$ |
| Order book as of September 30 | 430.8 | 414.7 | $+3.9 \%$ |
| Sales | 295.3 | 202.3 | $+46.0 \%$ |
| Gross profit | 116.8 | 67.7 | $+72.5 \%$ |
| Gross profit margin | $39.6 \%$ | $33.5 \%$ | $+6.1 p p$ |
| EBIT | 47.4 | 12.8 | $+270.3 \%$ |
| EBIT margin | $16.1 \%$ | $6.3 \%$ | $+9.8 p p$ |
| Earnings after taxes (continuing operations) | 35.4 | 9.8 | $+261.2 \%$ |
| Net profit ${ }^{1}$ | 93.8 | 5.0 | |
| EPS basic (in €, continuing operations) | 1.85 | 0.51 | $+262.7 \%$ |
| EPS basic (in $€$ ) ${ }^{1}$ | 4.90 | 0.26 | - |
| Net cash | 122.3 | 32.7 | $+274.0 \%$ |
| Free cash flow (continuing operations) | 24.2 | 0.1 | |
| Free cash flow total ${ }^{1}$ | 95.0 | $-5.6$ | |
| Employees as of September 30 | 1,414 | 1,133 | $+24.8 \%$ |
[^0]- Order intake in the first nine months slightly below previous year, mainly due to expected normalized demand from Chinese customers
- Gross profit margin increased significantly, benefiting from favorable product and customer mix and high capacity utilization; EBIT margin also benefited from disproportionate increase in OPEX
- Net profit of $€ 93.8$ million includes result from discontinued operations ( $€ 58.3$ million), i.e. the sale of our MicroOptics business
- Improved 9M 2024 free cash flow from continuing operations of $€ 24.2$ million demonstrates ability to convert higher volume and margin improvements into cash
[^0]: ${ }^{1}$ including discontinued operations, i.e. MicroOptics business
Order Intake by Segment (in € m) and Region (in \%)
Division Overview 9M. 2024
Advanced Backend Solutions
| in € million | 9M. 2024 | 9M. 2023 |
|---|---|---|
| Order intake | 198.1 | 187.1 |
| Order book | 274.2 | 244.9 |
| Sales | 208.8 | 146.9 |
| Gross profit | 86.8 | 51.7 |
| Gross profit margin | $41.6 \%$ | $35.2 \%$ |
| EBIT | 33.3 | 10.2 |
| EBIT margin | $16.0 \%$ | $6.9 \%$ |
- Order intake up 5.9\% year-on-year, despite a $€ 29$ million decline in orders from Chinese customers; orders for coating systems improved in Q3
- Significant sales growth of $€ 61.9$ million or $42.1 \%$ versus 9M 2023, mainly driven by execution of AI-connected bonder orders received in H2 2023; bonder sales thus almost tripled year-on-year
- Gross profit margin improved by 6.4 pp to $41.6 \%$ thanks to high sales volume and favorable product and customer mix; all three quarters with gross profit margin $>40 \%$
Photomask Solutions
| in $€$ million | 9M. 2024 | 9M. 2023 |
|---|---|---|
| Order intake | 78.1 | 94.1 |
| Order book | 156.7 | 169.9 |
| Sales | 86.5 | 55.5 |
| Gross profit | 30.6 | 16.2 |
| Gross profit margin | $35.5 \%$ | $29.2 \%$ |
| EBIT | 17.9 | 6.2 |
| EBIT margin | $20.7 \%$ | $11.2 \%$ |
- Expected normalization of Chinese customers' order behavior leads to $€ 16.0$ million decline in order intake to $€ 78.1$ million
- Strong order book level of $€ 157$ million provides high visibility and capacity utilization through mid-2025
- Ability to execute orders allows for significant sales growth of 55.9\%
- Gross profit margin and EBIT margin benefited from strong product and customer mix as well as from very high sales level
Divestment of MicroOptics and higher inventories impact balance sheet
Assets
in € million
December 31, 2023
(1) Negligible change in non-current assets compared to year-end 2023
(2) Inventory build-up of around $€ 50$ million in line with our increased business volume; Assets held for sale $€ 34$ million were derechoognized as a result of our MicroOptics divestment
Cash and cash equivalents increased by $€ 98.0$ million, driven by the cash inflow from the sale of the MicroOptics business and strong free-cash flow from continuing operations
Equity increased through sale of MicroOptics and strong net profit
© SUSS
Equity position strengthened by high net profit due to the gain from sold MicroOptics business and positive result from continuing operations; retained earnings increased by $€ 88.5$ million, thereof $€ 35.4$ million profit after taxes from our strong continuing business
Deferred tax liabilities increased by $€ 6.3$ million
3 Higher tax liabilities, trade payables and contractual liabilities were only partly offset by the derecognition of liabilities associated with assets held for sale to zero (December 31, 2023: € 13.0 million)
Based on a strong Q3 performance well on track to achieve upper half of the raised forecast
Guidance 2024
(as of July 18, 2024)
Sales
in $€$ million
$380-410$
Actual 2023:
$€ 304.3$ million
Initial guidance:
Sales of $€ 340-370$ million
Gross profit margin
in \%
$38-40$
Actual 2023:
$34.1 \%$
Initial guidance:
Gross profit margin of $35-38 \%$
EBIT margin
in $\%$
$14-16$
Actual 2023:
$9.1 \%$
Initial guidance:
EBIT margin of $10-12 \%$
Inventor Ret
Inventor Relations information
Conference Calendar
November 21, 2024
Morgan Stanley Conference, Barcelona (IR-only)
November 25/26, 2024
German Equity Forum, Frankfurt (IR-only)
December 2, 2024
Berenberg European Conference, London
December 3, 2024
BofA Tech Virtual Field Trip, virtual
January 16, 2025
Needham Growth Conference, virtual (IR-only)
March 6, 2025
Berenberg EU Opportunities Conference, London
Financial Calendar
November 7, 2024
Q3 Report 2024
March 27, 2025
Annual Report 2024
May 8, 2025
Q1 Report 2025
June 3, 2025
Annual General Meeting
August 7, 2025
Half Year Report 2025
November 6, 2025
Q3 Report 2025
Growing Innovation
Sven Koepsel
VP Investor Relations \& Communications
Tel.: +49 89 32007-151
E-mail: [email protected]
Florian Mangold
Manager Investor Relations
Tel.: +49 89 32007-306
E-mail: [email protected]