AI Terminal
SÜSS MicroTec SE
Quarterly Report • Nov 9, 2023
422_10-q_2023-11-09_caa11b22-a7fc-4925-871d-12e992ea2449.pdf
Quarterly Report
Open in ViewerOpens in native device viewer
QUARTERLY REPORT JANUARY 1 – SEPTEMBER 30,
KEY FIGURES GROUP (continuing operations)
| In € million | Q3 2023 | Q3 2022 | Change | 9 months 2023 | 9 months 2022 | Change |
|---|---|---|---|---|---|---|
| Business development | ||||||
| Order intake | 103.0 | 130.6 | -21.1% | 281.2 | 345.5 | -18.6% |
| Order backlog as of 09/30 | -- | -- | -- | 414.7 | 363.2 | 14.2% |
| Total sales | 70.0 | 62.0 | 12.9% | 202.3 | 166.1 | 21.8% |
| Gross profit | 20.6 | 21.9 | -5.9% | 67.7 | 60.2 | 12.5% |
| Gross profit margin | 29.4% | 35.3% | -5.9% points | 33.5% | 36.2% | -2.8% points |
| Cost of sales | 49.0 | 40.0 | 22.5% | 134.6 | 106.0 | 27.0% |
| Research and development costs* | 7.2 | 6.4 | 12.5% | 22.8 | 20.8 | 9.6% |
| EBITDA | 3.1 | 6.9 | -55.1% | 18.1 | 13.3 | 36.1% |
| EBITDA margin | 4.4% | 11.1% | -6.7% points | 8.9% | 8.0% | 0.9% points |
| EBIT | 1.3 | 5.5 | -76.4% | 12.8 | 8.8 | 45.5% |
| EBIT margin | 1.9% | 8.9% | -7.0% points | 6.3% | 5.3% | 1.0% points |
| Earnings after taxes | 0.4 | 3.2 | -87.5% | 9.8 | 5.1 | 92.2% |
| Earnings per share, basic (in EUR) | 0.02 | 0.17 | -88.2% | 0.51 | 0.27 | 88.9% |
| Statement of financial position and cash flows |
||||||
| Shareholders' equity | -- | -- | -- | 178.0 | 165.1 | 7.8% |
| Equity ratio | -- | -- | -- | 49.5% | 48.4% | 1.1% points |
| Total assets | -- | -- | -- | 359.9 | 341.2 | 5.5% |
| Net cash | -- | -- | -- | 32.7 | 41.3 | -20.8% |
| Free cash flow | -5.0 | 20.6 | -- | 0.1 | 28.3 | -99.6% |
| Further key figures | ||||||
| Investments | 0.8 | 0.7 | 14.3% | 3.1 | 2.7 | 14.8% |
| Investment ratio | 1.1% | 1.1% | 0.0% points | 1.5% | 1.6% | -0.1% points |
| Depreciation and amortization | 1.8 | 1.6 | 12.5% | 5.1 | 4.4 | 15.9% |
| Employees as of 09/30 | -- | -- | -- | 1,133 | 1,058 | 7.1% |
*Application costs have been reclassified from selling expenses to research and development expenses to ensure comparability with the current figures.
KEY FIGURES GROUP including MicroOptics (including discontinued operations)
| In € million | Q3 2023 | Q3 2022 | Change | 9 months 2023 | 9 months 2022 | Change |
|---|---|---|---|---|---|---|
| Business development | ||||||
| Order intake | 106.9 | 142.5 | -25.0% | 294.4 | 373.3 | -21.1% |
| Order backlog as of 09/30 | -- | -- | -- | 422.0 | 377.3 | 11.8% |
| Total sales | 75.0 | 70.5 | 6.4% | 219.4 | 195.2 | 12.4% |
| Gross profit | 20.3 | 24.4 | -16.8% | 69.1 | 68.2 | 1.3% |
| Gross profit margin | 27.1% | 34.6% | -7.5% points | 31.5% | 34.9% | -3.4% points |
| Cost of sales | 54.6 | 46.1 | 18.4% | 150.3 | 127.0 | 18.3% |
| Research and development costs* | 7.6 | 6.7 | 13.4% | 24.1 | 21.9 | 10.0% |
| EBITDA | 1.3 | 8.3 | -84.3% | 14.6 | 17.9 | -18.4% |
| EBITDA margin | 1.7% | 11.8% | -10.1% points | 6.7% | 9.2% | -2.5% points |
| EBIT | -1.3 | 5.9 | -- | 7.2 | 11.0 | -34.5% |
| EBIT margin | -1.7% | 8.4% | -- | 3.3% | 5.6% | -2.4% points |
| Net income/(loss) | -1.2 | 3.6 | -- | 5.0 | 7.2 | -30.6% |
| Earnings per share, basic (in EUR) | -0.06 | 0.19 | -- | 0.26 | 0.38 | -31.6% |
| Statement of financial position | ||||||
| and cash flows | ||||||
| Shareholders' equity | -- | -- | -- | 178.0 | 165.1 | 7.8% |
| Equity ratio | -- | -- | -- | 49.5% | 48.4% | 1.1% points |
| Total assets | -- | -- | -- | 359.9 | 341.2 | 5.5% |
| Net cash | -- | -- | -- | 29.6 | 52.2 | -43.3% |
| Free cash flow | -6.7 | 21.3 | -- | -5.6 | 27.4 | -- |
| Further key figures | ||||||
| Investments | 1.1 | 2.5 | -56.0% | 6.4 | 6.1 | 4.9% |
| Investment ratio | 1.5% | 3.6% | -2.1% points | 2.9% | 3.1% | -0.2% points |
| Depreciation and amortization | 2.5 | 2.4 | 4.2% | 7.4 | 6.9 | 7.2% |
| Employees as of 09/30 | -- | -- | -- | 1,286 | 1,221 | 5.3% |
*Application costs have been reclassified from selling expenses to research and development expenses to ensure comparability with the current figures.
CONTENTS
Business Development in the Third Quarter and First Nine
Months of 2023.............................................5
Financial Report……….……………….……12
| Consolidated Statement of Income (IFRS) | 12 |
|---|---|
| Statement of Comprehensive Income (IFRS) |
13 |
| Consolidated Statement of Financial Position (IFRS) | 14 |
| Consolidated Statement of Cash Flows (IFRS) |
15 |
| Consolidated Statement of Changes in Equity (IFRS) | 17 |
| Segment Reporting (IFRS) | 18 |
| Earnings per | |
| share……………………………………………………………………………19 | |
| Reconciliations………………………………………………………………….20 |
Financial Calendar / Contact / Imprint……..21
BURKHARDT FRICK, CEO OF SÜSS MICROTEC SE:
"After a very satisfactory first half-year, the positive momentum in order intake and sales has continued in the second half of the running year. We achieved the highest order intake of the year 2023 in the third quarter largely because our temporary bonders are benefiting from the rapid increase in semiconductor capacity for AI applications. Our growth was slowed in the third quarter by intensified, not previously announced documentation and inspection procedures by German customs and export control authorities for shipments to China. The increased bureaucratic requirements significantly affected our sales, gross profit margin and EBIT margin in the third quarter and were a major reason for adjusting our forecast. We are asking politicians and regulators for a constructive solution and hope that handling of our shipment requests will be accelerated in short term – also serving the interest of our customers whose patience is severely put to a test."
BUSINESS DEVELOPMENT IN THE THIRD QUARTER AND FIRST NINE MONTHS OF 2023
Classification of the MicroOptics Division as a Discontinued Operation
As announced at the capital market day in February 2023, the MicroOptics division is no longer viewed as a significant part of the core business. As of September 30, 2023, the MicroOptics division met the criteria to be classified as a discontinued operation according to IFRS 5. We signed the agreement to sell our subsidiary SUSS MicroOptics SA to Focuslight Technologies on November 8, 2023. We immediately informed the capital market of this in an ad hoc announcement. We expect the transaction to be completed (closing) in the first quarter of 2024.
Being treated as a discontinued operation means that all income and expenses of the MicroOptics division will be presented separately in the statement of income and all the cash flows will be presented separately in the statement of cash flows. The prior-year periods were adjusted to reflect this change in accounting.
The assets and liabilities attributable to the MicroOptics division will also be presented as separate items in the statement of financial position. These assets and liabilities continue to be measured at their carrying amount since it is lower than the fair value less costs to sell.
For transparency reasons, we have presented the results of the MicroOptics division separately in the segment reporting for the first nine months of the 2023 fiscal year. This is also reflected in the overview of key financial figures in this report, which are shown both with and without the MicroOptics division.
Business Development of Continuing Operations
We generated order intake of EUR 103.0 million for continuing operations in the third quarter of the 2023 fiscal year. Order momentum has thus increased again from the comparable EUR 83.3 million booked in the second quarter of 2023. The Advanced Backend Solutions division made up the bulk of the order intake from the previous quarter at EUR 93.7 million. Bonders performed particularly well, accounting for EUR 62.1 million in orders. This included more than EUR 50 million for temporary bonders. We are thus benefiting from the rapid increase in capacity for microchips used in artificial intelligence (AI) applications. After a very strong first half-year, order intake in the Photomask Solutions division came in at a very low EUR 9.4 million.
In the first nine months of 2023, we achieved a total order intake of EUR 281.2 million. While this may constitute a year-on-year decline of 18.6% compared to the previous year's figure of EUR 345.5 million, we still view the current order intake level as very robust since experts for the semiconductor equipment market have projected a roughly 20% decline for all of 2023. The Advanced Backend Solutions division accounted for the bulk of the Company's order intake at EUR 187.1 million over nine months. The Photomask Solutions division contributed EUR 94.1 million to new business.
We increased our sales from continuing operations by 21.8% to EUR 202.3 million in the first nine months of 2023 (previous year: EUR 166.1 million). However, the growth rate of 12.9% on a sales volume of EUR 70.0 million in the third quarter of 2023 was lower than in the first half-year. The main reason for this is that shipments to China have been experiencing delays since August 2023. German customs and export control authorities have significantly increased their documentation and inspection requirements for shipments to China without prior notice even though the legal basis for shipments of our equipment to China has remained largely unchanged in recent months. Capacity shortfalls at the responsible authorities have resulted in frustratingly long processing times. None of the cases processed so far have been rejected. In response to the increased export control inspections, we have taken the precaution of asking the Federal Office for Economic Affairs and Export Control (BAFA) to issue notices certifying that our shipments do not require export licenses. We are now doing this with all new orders scheduled to ship in or after the second quarter of 2024. Between these efforts and the likelihood that the BAFA's processing times will improve, we assume that we can limit most of the shipment delays to the second half of 2023. As of September 30, 2023, finished goods worth a total of EUR 23.5 million – mostly equipment from the Advanced Backend Solutions division – was not shipped out and thus not recognized in sales. Further explanations on the individual divisions can be found in the "Business development in the segments" section.
Order backlog for continuing operations amounted to EUR 414.7 million as of September 30, 2023, 14.2% higher than the previous year's figure of EUR 363.2 million as of September 30, 2022. The book-to-bill ratio, i.e., the ratio of order intake to sales, was a pleasing 1.4 in the first nine months of 2023.
Gross profit from continuing operations increased by EUR 7.5 million to EUR 67.7 million in the year to date. However, the gross profit margin declined to 33.5% (previous year: 36.2%). The gross profit margin of 29.4% (previous year: 35.3%) in the third quarter of 2023 in particular did not meet our expectations. This was due to a combination of factors, including shipment delays and lower than expected sales. Increased efforts to qualify external outsourcing partners in order to increase our production capacity have generated start-up costs in the Photomask Solutions division.
Selling costs for continuing operations after the first nine months of 2023 amounted to EUR 15.1 million (previous year: EUR 13.9 million). The rise was driven by the growth-related staffing increase and a year-on-year increase in travel activity, which has now reached pre-COVID levels. Research and development expenses amounted to EUR 22.8 million in the first three quarters of the year under review (previous year: EUR 20.8 million). Additional innovation projects and a targeted staffing increase were responsible for the growth. Both cost types rose more slowly than sales.
Administration costs came in at EUR 17.9 million, or EUR 3.9 million higher than the previous year's figure of EUR 14.0 million, because we have specifically increased our workforce and increased our expenditure on IT and digitalization solutions to support further expected growth. In total, selling, administrative and development costs increased 14.4% from EUR 48.7 million to EUR 55.7 million.
Meanwhile, a positive effect of EUR 0.8 million (previous year: EUR - 2.6 million) resulted from the balance of other operating income and expenses. This improvement was mainly attributable to a positive effect of EUR 0.6 million (previous year: EUR -2.7 million) from foreign currency valuation. This year, much of this effect resulted from the valuation of financial instruments denominated in Chinese renminbi on the reporting date. The previous year was negatively impacted by US dollar foreign currency effects.
Overall, EBIT for continuing operations in the first nine months of 2023 increased by EUR 4.0 million, or 45.5%, to EUR 12.8 million (previous year: EUR 8.8 million). This corresponded to an EBIT margin of 6.3% (previous year: 5.3%). The EBIT margin was only 1.9% in the third quarter of 2023 due to the previously described effects.
Earnings after taxes for continuing operations increased from EUR 5.1 million to EUR 9.8 million in the first nine months of 2023. Basic earnings per share (EPS) for continuing operations amounted to EUR 0.51 (previous year: EUR 0.27).
Free cash flow from continuing operations amounted to EUR -5.0 million in the third quarter of 2023 (previous year: EUR 20.6 million) and resulted from the build-up of inventories. In particular, there was an increase in stocks of materials for upcoming orders and of finished goods due to the current delays in shipments to China. After nine months, free cash flow thus amounted to EUR 0.1 million (previous year: EUR 28.3 million).
Development in the Most Important Regions
Our largest regional target market is the Asia-Pacific region. It accounted for 85.3% of our order intake and 63.1% of our sales in the first nine months of 2023. Within the region, China, Taiwan and Korea made up the largest proportions of both these figures. Another 11.6% of order intake comes from the EMEA region. North America's share was rather small at 3.1%.
BUSINESS DEVELOPMENT IN THE DIVISIONS
Advanced Backend Solutions Division
The Advanced Backend Solutions division comprises the two former divisions Lithography and Bonder. As of the 2023 fiscal year, this division includes the development, manufacture and sale of the bonder, mask aligner, UV projection scanner and coater/developer product lines, nanoimprint equipment, and machines for inkjet-based coating processes (inkjet processes). These product lines are manufactured in Germany at the locations in Garching, near Munich, and in Sternenfels, as well as at the Hsinchu location in Taiwan. The primary target market for this division is the advanced backend of the semiconductor industry.
| in € million | Q3 2023 |
Q3 2022 | 9M 2023 | 9M 2022 |
|---|---|---|---|---|
| Order intake | 93.7 | 77.1 | 187.1 | 229.3 |
| - of which lithography |
31.6 | 55.6 | 103.6 | 163.3 |
| - of which bonders |
62.1 | 21.5 | 83.5 | 66.0 |
| Sales* | 49.1 | 42.6 | 146.9 | 131.7 |
| - of which lithography |
34.4 | 37.8 | 106.5 | 105.9 |
| - of which bonders |
14.6 | 4.9 | 40.3 | 25.8 |
| Gross profit | 15.2 | 16.0 | 51.7 | 49.0 |
| Gross profit margin* | 31.0% | 37.4% | 35.2% | 37.2% |
| EBIT | 1.0 | 2.3 | 10.2 | 7.7 |
| EBIT margin* | 2.1% | 5.3% | 6.9% | 5.9% |
___________________________________________________
Advanced Backend Solutions Key Figures
*Total sales include internal sales (sales to other divisions). Rounding differences may occur during the allocation to the two product categories of lithography and bonders.
The gross profit margin and EBIT margin are calculated based on total sales.
In the first nine months of 2023, we achieved a total order intake of EUR 187.1 million in the Advanced Backend Solutions division (previous year: EUR 229.3 million). The coater/developer and mask aligner product lines were particularly affected by the year-on-year decline. The decline is attributable to greater reluctance among chip manufacturers to invest, which reflects the current cycle of the semiconductor industry. In contrast, order intake for bonders increased by 26.5% from EUR 66.0 million to EUR 83.5 million in the first nine months of the year. Orders of EUR 62.1 million were recorded in the third quarter of 2023 alone. This marked the highest quarterly order intake for bonders in the Company's history. The driver of this strong order momentum – as noted earlier – is the rapid increase in capacity for microchips used in artificial intelligence (AI) applications. We supply leading manufacturers of high bandwidth memory (HBM) chips as well as a leading foundry for the packaging process of AI chips with our temporary bonders, debonders and cleaning equipment, which contributed more than EUR 50 million to bonder order intake last quarter. We expect to receive a substantial volume of additional orders for temporary bonders during the fourth quarter of 2023.
Order backlog in the Advanced Backend Solutions division was EUR 244.9 million as of September 30, 2023, up significantly from EUR 200.2 million as of June 30, 2023.
Division sales in the first nine months of 2023 increased by EUR 15.2 million, or 11.5%, to EUR 146.9 million (previous year: EUR 131.7 million). Bonders have experienced the highest growth so far this year. This noticeable increase in sales has been supported by the positive order development of the 2022 fiscal year and the first half of 2023. We have generated substantial sales from our leading 300mm platforms for temporary bonding, debonding and subsequent cleaning of wafers. The third quarter saw bonder sales to a customer in the silicon carbide compound semiconductor business. Automatic bonders accounted for around 80% of sales in the first nine months of the year. Sales of coaters/developers also performed well in the first nine months of 2023, due in particular to our fully automated 200mm and 300mm coaters. In contrast, sales of mask aligners and UV projection scanners fell year-on-year partly because shipments of some mask aligners intended for Chinese customers were delayed by the intensified export controls conducted by the German authorities.
The gross profit margin in the Advanced Backend Solutions division decreased from 37.2% to 35.2% in the first nine months of 2023
despite the increase in sales. The slightly improved sales situation in the third quarter of 2023 did not increase the gross profit margin, which fell from 37.4% to 31.0%. The margin declined as a result of the product mix and a disproportionate increase in production costs relative to sales. As described earlier, relatively few mask aligners were shipped and recognized in sales in the third quarter. In addition, a strategic customer project whose gross profit margin was well below average represented a negative one-time effect. We are also preparing our production site in Taiwan to manufacture temporary bonders in order to serve dramatically increased demand for these solutions.
Despite the unsatisfactory margin, division earnings improved from EUR 7.7 million to EUR 10.2 million in the first nine months. The EBIT margin in the Advanced Backend Solutions division was thus at 6.9%, up from 5.9% in the previous year. The increase in earnings at the nine-month mark is chiefly attributable to the very good second quarter of 2023.
Photomask Solutions Division
The Photomask Solutions division comprises the development, manufacture, and sale of solutions for cleaning and processing photomasks, primarily in the front end of semiconductor production.
| Photomask Solutions Key Figures | ||||||
|---|---|---|---|---|---|---|
| in € million | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | ||
| Order intake | 9.4 | 53.6 | 94.1 | 116.2 | ||
| Sales* | 20.9 | 19.4 | 55.5 | 34.4 | ||
| Gross profit | 5.5 | 5.9 | 16.2 | 10.8 | ||
| Gross profit margin* |
26.5% | 30.5% | 29.2% | 31.3% | ||
| EBIT | 1.8 | 4.7 | 6.2 | 4.7 | ||
| EBIT margin* | 8.8% | 24.2% | 11.2% | 13.7% |
*Total sales include internal sales (sales to other divisions). The gross profit margin and EBIT margin are calculated based on total sales.
Order intake in the Photomask Solutions division decreased by 19.0% to EUR 94.1 million in the first nine months of 2023 (previous year: EUR 116.2 million). After reaching EUR 84.7 million in the first halfyear, order momentum decreased considerably in the third quarter to EUR 9.4 million. However, this is not viewed as problematic given the enormously high capacity utilization.
The order backlog in this division declined to EUR 169.9 million as of September 30, 2023, compared with EUR 181.4 million as of June 30, 2023. The expected system delivery and installation dates are still spread over 2023, 2024 and 2025.
We increased our sales in the Photomask Solutions division by a disproportionate 61.3%, bringing them from EUR 34.4 million to EUR 55.5 million in the first nine months of 2023. After recording sales of EUR 11.5 million in the second quarter, we once again shipped more tools and recognized them in sales in the third quarter.
The gross profit margin declined slightly from 31.3% to 29.2% after the first nine months of 2023. This resulted from a weak gross profit margin of 26.5% in the third quarter, which was attributable to the customer mix as well as additional expenses to qualify outsourcing partners. We aim to gradually increase our production capacity by outsourcing specific equipment modules.
Division earnings improved from EUR 4.7 million to EUR 6.2 million, while the EBIT margin shrank from 13.7% to 11.2%. One of the main reasons for this development was an increase in research and development expenses. They were up EUR 2 million year-on-year in the first nine months of the year. The main development project is still a new disruptive solution for cleaning wafers. The first prototype has been fully installed at the application center in Sternenfels in order to start conducting customer demonstrations in the fourth quarter.
MicroOptics Division (discontinued operation)
The MicroOptics division comprises the activities of the SUSS MicroOptics subsidiary at the Hauterive location in Switzerland. The production and sales of microlenses and highly specialized optics for the automotive industry and a variety of industrial applications are located here.
As noted at the start of this quarterly report, the MicroOptics division met the criteria set out in IFRS 5 to be treated as a discontinued operation as of September 30, 2023.
| _________ | ||||||
|---|---|---|---|---|---|---|
| MicroOptics Key Figures | ||||||
| in € million | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | ||
| Order intake | 3.8 | 11.9 | 13.2 | 27.8 | ||
| Sales* | 5.4 | 9.0 | 18.4 | 30.7 | ||
| Gross profit | -0.2 | 2.6 | 1.7 | 8.5 | ||
| Gross profit margin* |
-4.3% | 28.7% | 9.1% | 27.7% | ||
| EBIT | -2.9 | 0.2 | -6.5 | 1.7 | ||
| EBIT margin* | -53.2% | 2.7% | -35.4% | 5.4% |
*Total sales include internal sales (sales to other divisions).
The gross profit margin and EBIT margin are calculated based on total sales.
The development of orders, sales and earnings did not improve in the MicroOptics division in the third quarter of 2023. After three quarters in 2023, all key financial figures were well below the comparable prioryear figures.
Central Group Functions
The Central Group Functions division represents all other activities as well as costs for central Group functions that generally cannot be attributed to the main divisions. The division posted EBIT of EUR -2.7 million in the first nine months of 2023 (previous year: EUR -3.1 million).
OUTLOOK
Demand for SUSS MicroTec's products and solutions remains strong. We recorded order intake of EUR 281.2 million in the first nine months of 2023. While solutions from the Photomask Solutions division contributed significantly to new business in the first half-year, demand for bonders was especially strong in the third quarter, particularly for temporary bonders for AI applications. Order intake has exceeded sales in all three quarters of this fiscal year. The order backlog amounted to roughly EUR 414.7 million as of September 30, 2023. This is an excellent foundation for continuing to pursue our growth path in the fourth quarter of 2023 and beyond. We are generally confident about the further trajectory of demand. Negative effects due to geopolitical conflicts and uncertainty surrounding interest rate and inflation developments are still possible.
The greatest short-term uncertainty affecting sales consists of the delivery delays that we have experienced for exports to China. As described in detail, German customs and export control authorities have significantly increased their documentation and verification processes for shipments to China since August 2023. In the near future, every shipment to China carries the risk of a delay lasting weeks or months. It is not clear how many tools we will be able to ship to China and recognize in sales by the end of 2023.
Due to this unexpected development, we issued an ad-hoc notice on October 25, 2023, informing the capital markets that we had to revise our sales forecast to an expanded range of EUR 300 to 340 million (previously: EUR 320 to 340 million). We have not changed the upper end of the range since a large number of completed tools could be immediately shipped to China if the shipping delays are quickly resolved. As of September 30, 2023, the value of finished goods exceeded EUR 20 million. Since the MicroOptics division is now being treated as a discontinued operation pursuant to IFRS 5, the sales forecast for continuing operations is EUR 280 to 320 million.
The gross profit margin remained below expectations in the third quarter of 2023. Contributing to this were lower than expected sales as a result of shipment delays, the unfavorable product mix due to pending approval to ship many tools to China, and additional expenses incurred in connection with our increased efforts to qualify external outsourcing partners. In addition, the MicroOptics division reported a negative gross profit margin. On October 25, 2023, we therefore revised the forecast for our gross profit margin to a range of 32 to 34% (previously: 35.5 to 37.5%) and our EBIT margin to a range of 4 to 8% (previously: 9 to 11%). When looking solely at our continuing operations, i.e., without the MicroOptics division, we expect a gross profit margin of 34 to 36% and an EBIT margin of 7 to 11% for the full year of 2023.
Garching, November 9, 2023
The Management Board of SÜSS MicroTec SE
Burkhardt Frick Dr. Cornelia Ballwießer Dr. Thomas Rohe CEO CFO COO
FINANCIAL REPORT: CONSOLIDATED STATEMENT OF INCOME (IFRS)
| adjusted* | adjusted* | |||
|---|---|---|---|---|
| 07/01/2023 | 07/01/2022 | 01/01/2023 | 01/01/2022 | |
| in € thousand | - 09/03/2023 | - 09/03/2022 | - 09/03/2023 | - 09/03/2022 |
| Sales | 69,982 | 61,957 | 202,344 | 166,122 |
| Cost of sales | ||||
| Gross profit from sales | ||||
| Selling costs | -49,372 | -40,019 | -134,625 | -105,960 |
| Gross profit from sales | 20,610 | 21,938 | 67,719 | 60,162 |
| Selling costs | -5,221 | * -4,906 |
-15,076 | -13,939 * |
| Research and development costs | -7,180 | * -6,396 |
-22,775 | -20,823 * |
| Administration costs | -6,498 | -4,574 | -17,861 | -13,971 |
| Other operating income | 1,331 | 3,083 | 5,497 | 5,965 |
| Other operating expenses | -1,785 | -3,695 | -4,703 | -8,569 |
| Analysis of net income from operations (EBIT): | ||||
| EBITDA (earnings before interest and taxes, depreciation, and amortization) | 2,876 | 6,869 | 17,866 | 13,224 |
| Depreciation and amortization of tangible, intangible and financial assets | -1,619 | -1,419 | -5,065 | -4,399 |
| Net income from operations (EBIT) | 1,257 | 5,450 | 12,801 | 8,825 |
| Financial income | 271 | 89 | 599 | 93 |
| Financial expenses | -109 | -69 | -302 | -318 |
| Financial result | 162 | 20 | 297 | -225 |
| Earnings before taxes (continuing operations) | 1,419 | 5,471 | 13,098 | 8,600 |
| Income taxes | -1,041 | -2,238 | -3,322 | -3,476 |
| Earnings after taxes (continuing operations) | 378 | 3,233 | 9,776 | 5,124 |
| Earnings after taxes (discontinued operations) | -1,592 | 386 | -4,811 | 2,109 |
| Net income/(loss) | -1,214 | 3,619 | 4,965 | 7,233 |
| Of which equity holders of SUSS MicroTec | -1,214 | 3,619 | 4,965 | 7,233 |
| thereof non-controlling interests | 0 | 0 | 0 | 0 |
| Earnings per share (basic) | ||||
| Earnings per share in EUR | -0.06 | 0.19 | 0.26 | 0.38 |
| Earnings per share (diluted) | ||||
| Earnings per share in EUR | -0.06 | 0.19 | 0.26 | 0.38 |
*Application costs have been reclassified from selling costs to research and development costs in order to ensure comparability with the current figures.
STATEMENT OF COMPREHENSIVE INCOME (IFRS)
| in € thousand | 01/01/2023 - 09/30/2023 |
01/01/2022 - 09/30/2022 |
|---|---|---|
| Net income/(loss) | 4,965 | 7,233 |
| Items that are not reclassified as an expense or income | ||
| Revaluation of defined benefit pension plans | -115 | 0 |
| Deferred taxes | 17 | 0 |
| Other income after tax for items that are not reclassified as an expense or income |
-98 | 0 |
| Items that are reclassified as an expense or income in later periods | ||
| Fair value fluctuations of available for sale securities | 0 | 0 |
| Foreign currency adjustment | -791 | 4,023 |
| Cash flow hedges |
0 | 0 |
| Deferred taxes | 0 | 0 |
| Other income after tax for items that are reclassified as an expense or income in later periods |
-791 | 4,023 |
| Income and expenses recognized in equity | -889 | 4,023 |
| Total comprehensive income/(loss) | 4,076 | 11,256 |
| Thereof equity holders of SÜSS MicroTec SE |
4,076 | 11,256 |
| Thereof non-controlling interests | 0 | 0 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS)
| in € thousand | 09/30/2023 | 12/31/2022 |
|---|---|---|
| ASSETS | ||
| Noncurrent assets | 55,159 | 75,140 |
| Intangible assets | 5,802 | 5,875 |
| Goodwill | 18,588 | 18,574 |
| Tangible assets | 29,368 | 48,869 |
| Other assets | 453 | 417 |
| Deferred tax assets | 948 | 1,405 |
| Current assets | 304,693 | 278,022 |
| Inventories | 170,137 | 150,537 |
| Trade receivables |
12,222 | 19,096 |
| Contract assets | 29,908 | 37,880 |
| Other financial assets | 586 | 638 |
| Securities | 9,802 | 9,943 |
| Current tax assets | 150 | 58 |
| Cash and cash equivalents |
37,281 | 51,364 |
| Other assets | 9,670 | 8,506 |
| Assets held for sale | 34,937 | 0 |
| Total assets | 359,852 | 353,162 |
| in € thousand | 09/30/2023 | 12/31/2022 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Shareholders' equity | 177,983 | 177,730 |
| Total equity attributable to shareholders of SÜSS MicroTec SE |
177,983 | 177,730 |
| Subscribed capital | 19,116 | 19,116 |
| Reserves | 157,592 | 156,450 |
| Accumulated other comprehensive income | 1,275 | 2,164 |
| Noncurrent liabilities | 24,151 | 32,807 |
| Pension plans and similar commitments | 1,561 | 5,032 |
| Provisions | 776 | 776 |
| Financial debt to banks | 5,625 | 6,563 |
| Financial debt from lease obligations | 5,377 | 9,627 |
| Other liabilities | 0 | 264 |
| Deferred tax liabilities | 10,812 | 10,545 |
| Current liabilities | 157,718 | 142,625 |
| Provisions | 3,536 | 5,951 |
| Tax liabilities | 7,658 | 7,024 |
| Financial debt to banks | 1,250 | 1,226 |
| Financial debt from lease obligations | 2,128 | 2,588 |
| Other financial liabilities | 11,115 | 11,989 |
| Trade payables |
17,782 | 27,091 |
| Contract liabilities | 94,218 | 77,939 |
| Other liabilities | 7,895 | 8,817 |
| Liabilities associated with assets held for sale |
12,136 | 0 |
| Total equity and liabilities | 359,852 | 353,162 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (IFRS)
| Accumulated other comprehensive income |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Items that are not reclassified as an expense or income |
Items that are reclassified as an expense or income in later periods |
||||||||
| in € million | Subscribed capital |
Additional paid-in capital |
Earnings reserve |
Retained earnings |
Remeasurement of defined benefit plans |
Deferred taxes |
Foreign currency adjustments |
Deferred taxes |
Total equity attributable to share holders of SÜSS MicroTec SE |
| As of January 1, 2022 | 19,116 | 55,822 | 202 | 78,960 | -2,469 | 662 | 4,583 | - | 156,876 |
| Net income/(loss) |
7,233 | 7,233 | |||||||
| Income and expenses recognized in equity |
4,023 | - | 4,023 | ||||||
| Total comprehensive income/(loss) | 7,233 | 4,023 | - | 11,256 | |||||
| Dividends paid | -3,058 | -3,058 | |||||||
| As of September 30, 2022 | 19,116 | 55,822 | 202 | 83,135 | -2,469 | 662 | 8,606 | - | 165,074 |
| As of January 1, 2023 | 19,116 | 55,822 | 202 | 100,426 | -1,744 | 465 | 3,443 | - | 177,730 |
| Net income/(loss) |
4,965 | 4,965 | |||||||
| Income and expenses recognized in equity |
-115 | 17 | -791 | - | -889 | ||||
| Total comprehensive income/(loss) | 4,965 | -115 | 17 | -791 | 4,076 | ||||
| Dividends paid | -3,823 | - | -3,823 | ||||||
| As of September 30, 2023 | 19,116 | 55,822 | 202 | 101,568 | -1,859 | 482 | 2,652 | - | 177,983 |
CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS)
| in € thousand | 01/01/2023 - 09/30/2023 |
01/01/2022 - 09/30/2022 |
|---|---|---|
| Net income/(loss) |
4,965 | 7,233 |
| Adjustment of net profit or loss for reconciliation with operating cash flow | ||
| Earnings from discontinued operations (after taxes) | 4,811 | -2,109 |
| Amortization of intangible assets | 1,132 | 646 |
| Depreciation of tangible assets | 3,933 | 3,753 |
| Profit on disposal of intangible and tangible assets | 146 | 22 |
| Change in value adjustment on inventory reserves | 4,286 | 2,782 |
| Change in value adjustment on trade receivables | -1,347 | 1,818 |
| Other non-cash income and expenses | -524 | 2,881 |
| Change in inventory reserves | -31,545 | -47,452 |
| Change in contract assets | 7,973 | 10,346 |
| Change in trade receivables | 3,178 | 1,044 |
| Change in other assets | -2,056 | 776 |
| Change in provisions for pensions | -176 | -399 |
| Change in trade payables | -7,768 | -2,917 |
| Change in contract liabilities | 16,590 | 52,816 |
| Change in other liabilities and other provisions | -1,344 | 478 |
| Change in tax assets and tax liabilities | 957 | -710 |
| Cash flow from operating activities - continuing operations |
3,211 | 31,008 |
| Cash flow from operating activities - discontinued operations |
-2,424 | 2,482 |
| Cash flow from operating activities - total |
787 | 33,490 |
| in € thousand | 01/01/2023 - 09/30/2023 |
01/01/2022 - 09/30/2022 |
|---|---|---|
| Disbursements for tangible assets | -1,919 | -1,941 |
| Disbursements for intangible assets | -1,163 | -747 |
| Disbursements due to cash investments as part of short-term financial management | -9,802 | -9,994 |
| Proceeds from cash investments as part of short-term financial management | 9,943 | 0 |
| Cash flow from investing activities - continuing operations |
-2,941 | -12,682 |
| Cash flow from investing activities - discontinued operations |
-3,270 | -3,446 |
| Cash flow from investing activities - total |
-6,211 | -16,128 |
| Repayment of bank loans | -938 | -938 |
| Repayment of rental and lease liabilities | -1,568 | -1,434 |
| Change in other financial debt | 24 | 7 |
| Dividends paid | -3,823 | -3,058 |
| Cash flow from financing activities - continuing operations |
-6,305 | -5,423 |
| Cash flow from financing activities - discontinued operations |
-547 | -571 |
| Cash flow from financing activities | -6,852 | -5,994 |
| Changes to cash and cash equivalents due to exchange rate fluctuations | -211 | 116 |
| Change in cash and cash equivalents | -12,487 | 11,484 |
| Cash and cash equivalents at the beginning of the year | 51,364 | 52,075 |
| Cash and cash equivalents at the end of the period | 38,877 | 63,559 |
| (of which cash and cash equivalents from discontinued operations) | 1,596 | 2,871 |
| Cash flow from operating activities from continuing operations includes: | ||
| Interest paid during the period | 121 | 170 |
| Interest received during the period | 319 | 24 |
| Taxes paid during the period | 2,165 | 539 |
SEGMENT REPORTING (IFRS)
| Advanced Backend Solutions |
Photomask Solutions | MicroOptics* | Central Group Functions |
Consolidation Effects | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in € thousand | 9M / 2023 | 9M / 2022 | 9M / 2023 | 9M / 2022 | 9M / 2023 | 9M / 2022 | 9M / 2023 | 9M / 2022 | 9M / 2023 | 9M / 2022 | 9M / 2023 | 9M / 2022 |
| External Sales | 146,797 | 131,631 | 55,468 | 34,443 | 17,060 | 29,117 | 69 | 46 | 219,394 | 195,237 | ||
| Internal Sales | 60 | 92 | - | 1,291 | 1,568 | - | -1,351 | -1,660 | - | - | ||
| Total Sales | 146,857 | 131,723 | 55,468 | 34,443 | 18,351 | 30,685 | 69 | 46 | -1,351 | -1,660 | 219,394 | 195,237 |
| Gross profit | 51,703 | 48,953 | 16,212 | 10,782 | 1,665 | 8,497 | -518 | -20 | 69,062 | 68,212 | ||
| Gross profit margin | 35.2% | 37.2% | 29.2% | 31.3% | 9.1% | 27.7% | 31.5% | 34.9% | ||||
| Other segment expenses / income (net) | -41,549 | -41,228 | -10,017 | -6,051 | -8,160 | -6,847 | -2,177 | -3,085 | -61,903 | -57,211 | ||
| thereof intersegmen cost allocation (net) | -6,942 | -6,732 | -2,273 | -1,085 | -891 | -785 | 10,106 | 8,602 | - | - | ||
| thereof central services of SMT SE | -6,906 | -6,536 | -2,273 | -1,085 | -926 | -903 | 10,105 | 8,524 | - | - | ||
| Result per segment (EBIT) | 10,154 | 7,725 | 6,195 | 4,731 | -6,495 | 1,650 | -2,695 | -3,105 | 7,159 | 11,001 | ||
| EBIT margin | 6.9% | 5.9% | 11.2% | 13.7% | -35.4% | 5.4% | 3.3% | 5.6% | ||||
| Income before taxes | 10,105 | 7,696 | 6,192 | 4,727 | -6,522 | 1,621 | -2,346 | -3,298 | 7,429 | 10,746 | ||
| Signifiant non-cash items | -2,095 | -3,994 | -843 | -620 | 76 | -1,055 | - | -2,862 | -5,669 | |||
| Segment assets | 183,786 | 163,966 | 64,370 | 41,080 | 31,028 | 33,672 | 30,974 | 24,162 | -12,616 | -6,901 | 297,542 | 255,979 |
| thereof goodwill | 18,588 | 18,782 | 18,588 | 18,782 | ||||||||
| Unallocated assets | - | - | 62,310 | 85,192 | ||||||||
| Total assets | - | - | 359,852 | 341,171 | ||||||||
| Segment liabilities | -65,944 | -78,407 | -60,363 | -42,379 | -16,187 | -11,956 | -3,354 | -2,208 | 12,616 | 6,901 | -133,232 | -128,049 |
| Unallocated liabilities | - | - | -48,637 | -48,048 | ||||||||
| Total liabilities | - | - | -181,869 | -176,097 | ||||||||
| Depreciation and amortization | 3,059 | 2,050 | 649 | 1,204 | 2,376 | 2,509 | 1,357 | 1,145 | 7,441 | 6,908 | ||
| thereof scheduled | 3,059 | 2,050 | 649 | 1,204 | 2,376 | 2,509 | 1,357 | 1,145 | 7,441 | 6,908 | ||
| thereof impairment loss | - | - | - | - | - | - | - | - | - | - | ||
| Capital expenditure | 1,391 | 1,384 | 405 | 361 | 3,270 | 3,447 | 1,286 | 942 | 6,352 | 6,134 | ||
| Employees as of September 30 | 882 | 817 | 211 | 203 | 153 | 163 | 40 | 38 | 1,286 | 1,221 |
| *discontinued operations | Sales | Capital expenditure | Assets (without Goodwill) |
||||
|---|---|---|---|---|---|---|---|
| in € thousand | 9M / 2023 | 9M / 2022 | 9M / 2023 | 9M / 2022 | 9M / 2023 | 9M / 2022 | |
| EMEA | 47,737 | 37,543 | 5,896 | 5,824 | 255,228 | 213,684 | |
| North-America | 36,609 | 20,366 | 9 | 14 | 4,004 | 7,706 | |
| Asia and Pacific | 135,048 | 137,328 | 447 | 296 | 21,855 | 18,246 | |
| Consolidation effects | -2,133 | -2,439 | |||||
| Total | 219,394 | 195,237 | 6,352 | 6,134 | 278,954 | 237,197 |
RECONCILIATION OF SALES, EBIT AND EBT FROM CONTINUING OPERATIONS ACCORDING TO THE CONSOLIDATED STATEMENT OF INCOME
| in € thousand | 01/01/2023 - 09/30/2023 |
01/01/2022 - 09/30/2022 |
|---|---|---|
| Sales according to segment reporting | 219,394 | 195,237 |
| - MicroOptics sales |
-18,351 | -30,685 |
| + sales by MicroOptics with Group companies | 1,291 | 1,568 |
| + sales by Group companies with MicroOptics | 10 | 2 |
| Sales according to the statement of income | 202,344 | 166,122 |
| in € thousand | 01/01/2023 - 09/30/2023 |
01/01/2022 - 09/30/2022 |
|---|---|---|
| EBIT according to segment reporting | 7,159 | 11,001 |
| + Financial income | 599 | 93 |
| - Financial expenses |
-329 | -348 |
| EBT Group | 7,429 | 10,746 |
| - EBT MicroOptics division |
-6,522 | 1,621 |
| - Intercompany transfers |
-853 | -525 |
| EBT according to the statement of income | 13,098 | 8,600 |
EARNINGS PER SHARE
| 01/01/2023 - | 09/30/2023 | 01/01/2022 - 09/30/2022 |
|||
|---|---|---|---|---|---|
| in Tsd. € | Total amount in € million |
Earnings per share in € (undiluted) |
Total amount in € million |
Earnings per share in € (undiluted) |
|
| Income/(loss) from continuing operations (net of tax) attributable to shareholders of SÜSS MicroTec SE |
9,776 | 0.51 | 5,124 | 0.27 | |
| Income/(loss) from discontinued operations (net of tax) attributable to shareholders of SÜSS MicroTec SE |
-4,811 | -0.25 | 2,109 | 0.11 | |
| Net income/(loss) attributable to shareholders of SÜSS MicroTec SE |
4,965 | 0.26 | 7,233 | 0.38 | |
| Weighted average number of shares | 19,115,538 | 19,115,538 |
There were no dilutive effects in the periods presented.
FINANCIAL CALENDAR 2023/2024
| 2023 Quarterly Report (Q3) | November 9, 2023 |
|---|---|
| 2023 Annual Report | March 27, 2024 |
| 2024 Quarterly Report (Q1) | May 8, 2024 |
| 2024 Shareholders' Meeting | June 11, 2024 |
| 2024 Half-Year Report | August 7, 2024 |
| 2024 Quarterly Report (Q3) | November 7, 2024 |
CONTACT
SÜSS MicroTec SE
Schleissheimer Strasse 90 85748 Garching, Germany Phone: +49 89 32007-100 E-mail: [email protected]
Investor Relations Phone: +49 89 32007-151 / 161 E-mail: [email protected] www.suss.com
Forward-looking statements: Interim reports include forward-looking statements. Forward-looking statements do not present historical facts but include statements about expectations and the views of the management of SÜSS MicroTec SE. These statements are based on current plans, estimates, and forecasts of the Company's management. Investors should not place undue reliance 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 as a result of new information or future events. The Company's obligation to comply with its statutory responsibilities regarding information and reporting remains unaffected. Forward-looking statements always involve 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.