SÜSS MicroTec SE

Earnings Release • Mar 22, 2005

News Details

Ad-hoc | 22 March 2005 19:37

Süss MicroTec AG: Results 2004 and further cost savings initiatives

Ad hoc announcement §15 WpHG Results 2004 and further cost savings initiatives Süss MicroTec AG: Results 2004 and further cost savings initiatives Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— · Results 2004 in line with preliminary outlook · Further initiatives decided to reduce Break Even-Point · Joint Development with IBM on time; unchanged high interest from potential customers Munich, Mar 22, 2005 – In today’s Meeting the Supervisory Board approved and ascertained the financial accounts for 2004. In addition, further cost savings initiatives to optimize the cost structure were approved. Order entries (+18%) and sales (+22%) increased significantly. Besides a positive business development of the new Substrate Bonder, especially the demand for 300mm production equipment for advanced packaging contributed to the growth. Thanks to a gross profit raised by 26% the operating loss on basis EBITDA could be reduced by 70%, already including the extraordinary charges as previously announced. Net loss amounted to EUR 16.7 million due to non cash-effective valuation allowance on deferred tax assets. Operating cash flow with minus EUR 42 thousands was almost balanced, whereby the liquidity of the company with liquid funds of EUR 20 million at the end of the year remained firm. Key figures for the fiscal year and the 4th quarter at a glance (EUR million): FY 2004 FY 2003 Q4/2004 Q4/2003 Order Entry 119.1(*) 101.0 30.1 24.6 Net Sales 112.9 92.6 35.4 32.0 EBITDA -3.2 -11.0 -1.9 -0.5 EBIT -8.8 -17.1 -3.5 -1.9 Net Loss -16.7 -14.6 -10.5 -4.4 Loss per Share/EUR -1.10 -0.97 -0.69 -0.29 After the shutdown of the Aßlar facility today further cost savings initiatives especially in the areas administration and sales support were approved. In consequence the cost basis for 2005 will be further reduced by EUR 3.3 million. Together with the Aßlar shutdown, particularly in the 2nd half year 2005 more than EUR 3.5 million cost savings compared to 2004 will be realized whilst for the first and second quarter of the current year with regards to consulting services and Aßlar relocation, we expect charges up to EUR 2 million. The sustainable break even point on basis EBIT is expected to be at sales of approx. EUR 110 million in 2005 and approx. EUR 105 million in 2006, respectively. Additional savings activities are currently prepared and will be implemented already this year, depending on the market development of certain product lines in the first half year. Flanking activities, especially concerning a reduction of inventories, should release further liquidity. The current Business shows no signs for a major change compared to the prior year, whereas the break even point could already be achieved with only a slight increase in sales. The joint development with IBM is on time. During July the related Equipment will be delivered to IBM in East Fishkill/U.S. and is then prepared to process test wafers. Current talks to potential customers confirm the unchanged high interest in the C4NP technology. From 2006 on, the Board expects that the optimized cost structure as well as the product introduction related to the C4NP program will significantly improve the company’s earnings performance. The results 2004 at a glance: EUR million 2004 2003 Q4/2004 Q4/2003 Net Order Entry 119.1(*) 101.0 30.1 24.6 Net Order Backlog 38.7 33.9 — — Net Sales 112.9 92.6 35.4 32.0 Equity 88.6 102.4 — — Equity Ratio 62% 64% — — Liquid Funds 20.0 23.6 — — Free Cash Flow -1.3 4.6 3.8 4.4 Gross Profit 45.9 36.4 14.8 13.2 Gross Profit Margin 40.7% 39.4% 41.8% 41.4% EBITDA -3.2 -11.0 -1.9 -0.5 EBITDA Margin -2.9% -11.9% -5.4% -1.7% EAT -16.7 -14.6 -10.5 -4.4 EPS(Earnings per share in EURO) -1.10 -0.97 -0.69 -0.29 Employees 731 716 — — * includes deduction of 3.8 Mio. EUR due to allowance on doubtful backlog to be delivered in 2005 Süss MicroTec AG Schleissheimer Strasse 90 85748 Garching b. München Deutschland ISIN: DE0007226706 (TecDAX) WKN: 722670 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 22.03.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Please see our annual report on http://www.suss.de (pdf download). For further information please contact: SUSS MicroTec AG Investor Relations Barbara von Frankenberg Tel.: +49 (0) 89 / 320 07-314 Fax: +49 (0) 89/ 320 07-450 E-Mail: b.frankenberg@suss.de End of message (c)DGAP 221937 Mär 05