AI assistant
SÜSS MicroTec SE — Earnings Release 2022
Mar 31, 2023
422_ip_2023-03-31_d52cb44d-fbdc-4c2a-9f57-0cfcd1aa5be9.pdf
Earnings Release
Open in viewerOpens in your device viewer
Conference Call
Financial Year 2022
Disclaimer
This presentation contains forward-looking statements relating to the business, financial performance and earnings of SÜSS 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 SÜSS MicroTec SE. Consequently, actual developments as well as actual earnings and performance may differ materially from those which explicitly or implicitly assumed in the forwardlooking statements.
SÜSS MicroTec SE does not intend or accept any obligation to publish updates of these forward-looking statements.
Agenda
02 01 03
Highlights Full Year 2022
Key Financial Figures 2022
Outlook 2023
Our successful year 2022 at a glance: We have met or exceeded all targets
Business Highlights 2022
- Best year in company history with regard to order entry, sales and EBIT
- Strong Q4 with sales > € 100 million demonstrated that SUSS MicroTec is capable to reach mid-term targets
- Price increases implemented to compensate rising costs
- Supply chain challenges ongoing
- Centralized R&D organization implemented to support modularization and operations excellence
- New corporate vision forms basis of our strategies
Division Highlights 2022
1) Business units Lithography and Bonder were merged into the new Advanced Backend Solutions business unit at the end of 2022. We will report in the new structure from the 2023 financial year onwards.
Strong demand across all divisions
Lithography1 :
- Strong business with high-margin Mask Aligners
- Coaters for 200 and 300mm applications performed well
- Noticeable pick-up in UV-scanner business, growing from € 3.2 million in 2021 to € 9.8 million in 2022
Bonder1 :
- New business with silicon carbide (SiC) customer
- First order for integrated D2W hybrid bonder received; evaluation of hybrid bonder agreed with two key customers
Photomask Equipment:
- Extraordinarily high order entry in Asia, especially in China
- Disruptive wafer cleaning solution in development
Micro-optics:
Very strong growth of ~ 50% year-on-year
Agenda
02 01 03
Highlights Full Year 2022
Key Financial Figures 2022
Outlook 2023
We improved all key financial figures in 2022
| In € million | 2022 | 2021 | Change |
|---|---|---|---|
| Order entry | 446.2 | 337.0 | 32.4% |
| Order backlog as of Dec 31 | 346.4 | 193.9 | 78.6% |
| Total sales | 299.1 | 263.4 | 13.6% |
| Gross profit | 110.1 | 94.2 | 16.9% |
| Gross profit margin | 36.8% | 35.8% | +1.0%pts |
| EBIT | 32.8 | 22.6 | 45.1% |
| EBIT margin | 11.0% | 8.6% | +2.4%pts |
| Earnings after tax | 24.5 | 16.0 | 53.1% |
| Earnings per share, basic (in € ) | 1.28 | 0.84 | 52.4% |
| Net cash | 41.3 | 33.8 | 22.2% |
| Free Cashflow | 16.0 | 14.7 | 8.8% |
| Employees as of Dec 31 | 1,252 | 1,178 | 6.3% |
- Strong order entry and order backlog are solid foundation for targeted growth in 2023
- Positive gross profit margin development as price increases and operational progress more than offset cost increases
- EBIT margin has significantly improved, but included non-operating effects of 1.1%pts. from liquidation of SUSS MicroTec Photonic Systems Inc. and reversal of impairment losses on UV-scanner and laser materials previously written off
- Company has created value for shareholders (earnings per share +52.4%)
- Increase in free cash flow allows dividend to be raised by € 0.04 to € 0.20 per share
Order Entry by Division and Region FY 2022
Order Entry by Division in € million
Order Entry by Region
Q4-2022 as best sales and earnings quarter in our history
Quarterly Development 2022
H2 shows – as known from previous years – a more dynamic sales development than H1
Consequent tracking of critical shipping dates has contributed towards achieving our upper end revenue targets
EBIT margin has continuously improved from quarter to quarter
Q4-2022 shows the effect of scaling when revenue makes a noticeable jump (2022 quarterly break-even point at ~ € 55 million) and is the best evidence that we are operationally capable of achieving our 2025 targets
Division Overview
Lithography Bonder
| In € million | 2022 | 2021 |
|---|---|---|
| Order entry | 203.0 | 183.9 |
| External sales | 175.7 | 155.1 |
| Total sales1 | 175.8 | 157.2 |
| Gross profit | 71.9 | 56.9 |
| Gross profit margin1 | 40.9% | 36.2% |
| EBIT | 30.5 | 16.0 |
| EBIT margin1 | 17.3% | 10.2% |
| In € million | 2022 | 2021 |
|---|---|---|
| Order entry | 76.6 | 46.4 |
| External Sales |
35.0 | 31.3 |
| Total sales1 | 35.0 | 31.3 |
| Gross profit | 10.5 | 12.3 |
| Gross profit margin1 | 30.1% | 39.2% |
| EBIT | -2.0 | 0.6 |
| EBIT margin1 | -5.7% | 1.8% |
- Strong order entry for coaters for 200 and 300 mm applications
- Continued order momentum for mask aligners, also with regard to SiC process
- Order pick-up for UV-scanners
- Strong sales development in Q4-2022
- Margin improvement due to higher share of high-margin mask aligners and price increases
-
Investment in R&D increased by € 3 million yoy
-
Order entry for automated bonders for high volume manufacturing increased
- Order entry strong in Asia but also in North America (for automated bonders for power electronics on 200 mm wafers)
- Sales were slowed due to the postponement of deliveries at year end and partly postponed into 2023
- Margins decreased due to higher manufacturing costs compared to prior year, longer production times and higher sales and administrative costs
1) Total sales include internal sales (sales to other divisions) since 2021. The gross profit margin and EBIT margin are calculated on the basis of total sales.
Division Overview
Photomask Equipment Micro-optics
| In € million | 2022 | 2021 |
|---|---|---|
| Order entry | 130.9 | 70.8 |
| External Sales | 48.8 | 49.7 |
| Total sales1 | 48.8 | 49.8 |
| Gross profit | 16.8 | 16.2 |
| Gross profit margin1 | 34.4% | 32.6% |
| EBIT | 6.1 | 6.6 |
| EBIT margin1 | 12.5% | 13.3% |
- Very strong order entry in Asia (especially China) thanks to new and evolving local producers of lithography masks
- 2 nd half of 2022 saw strong pick-up of sales due to a slight ease of the supply chain constraints
- Margins have not changed much as price increases will be noticeable only after a few months/quarters
| In € million | 2022 | 2021 |
|---|---|---|
| Order entry | 35.3 | 34.2 |
| External Sales | 39.2 | 25.7 |
| Total sales1 | 41.0 | 27.7 |
| Gross profit | 10.2 | 6.6 |
| Gross profit margin1 | 24.8% | 23.8% |
| EBIT | 0.7 | -1,7 |
| EBIT margin1 | 1.8% | -6.1% |
- Stable order entry at a good level and includes orders for medical applications
- Sales went up due to the increased capacities for automotive applications
- Margins are generally impacted by rising share of (lower margin) automotive business
1) Total sales include internal sales (sales to other divisions) since 2021. The gross profit margin and EBIT margin are calculated on the basis of total sales.
Inventory build-up due to supply chain bottlenecks extend the balance sheet
Assets as of 31 Dec. in € million
2
€ 4.4 million increase in tangible assets, in particular as a result of the year-on-year increase in rights of use under IFRS 16
million rise in inventories (due to supply chain bottlenecks) and the short-term investment of € 9.9 million in commercial paper
Stable development in year-on-year comparison
Liabilities and equity shaped by higher down payments and increase in reserves
Liabilities and equity as of 31 Dec. in € million
Cash situation has stabilized at a good level of around € 50 million
€ -0.7 million
Agenda
02 01 03
Highlights Full Year 2022
Key Financial Figures 2022
Outlook 2023
High order backlog at the end of 2022 is the basis for our growth in 2023
Sales projection 2023
MicroOptics business
Service business
Limited number of orders to be received and delivered in 2023
Sales guidance
320–360 in € million
60–80% of our order backlog
(€ 346.4 million at 31 December 2022)
We expect to improve our three key performance indicators in 2023
Our Guidance 2023
We aim to take the next step on the way to our 2025 goals.
1) From 2023, we will use gross profit margin instead of free cash flow as the third performance indicator. For further information, please refer to the Annual Report. 2) Including one-off effects of € 3.1 million. Operating EBIT margin thus accounted to 9.9%.
We aim to take the next step on the way to our 2025 goals
Confirmed
Our target 2025 Revenue of € 400 million with an EBIT margin of 15%
Investor Relations Information
Franka Schielke Investor Relations Manager
Tel. +49 89 32007-161 E-mail [email protected]
Sven Köpsel Head of Investor Relations & Corporate Communications
Tel. +49 89 32007-151 E-mail [email protected]