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SÜSS MicroTec SE — Interim / Quarterly Report 2003
Nov 13, 2003
422_10-q_2003-11-13_b6863ab9-967e-42b7-90ef-cabe18aae305.pdf
Interim / Quarterly Report
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I NINE-MONTH REPORT JANUARY 1 - SEPTEMBER 30, 2003
I KEY FIGURES Q3/2003
| Million Euro | Q3/2003 | Q2/2003 | Q1-Q3/2003 | Q1-Q3/2002 |
|---|---|---|---|---|
| Net incoming order | 26.1 | 25.0 | 76.4 | 83.6 |
| Net backlog | --- | --- | 43.8 | 54.4 |
| Net sales | 21.4 | 21.6 | 60.6 | 84.7 |
| Equity | --- | --- | 107.0 | 119.2 |
| Equity ratio | --- | --- | 72.4% | 67.7% |
| Net cash | --- | --- | 9.8 | 8.1 |
| Free cash flow | -6.9 | 2.5 | 0.2 | -2.9 |
| Gross profit | 9.0 | 9.5 | 23.2 | 39.6 |
| Gross margin | 42.0% | 43.8% | 38.3% | 46.7% |
| EBITDA | -0.3 | -2.7 | -10.5 | -10.6 |
| EAT (Earnings after tax) | -1.3 | -3.0 | -10.1 | -8.9 |
| EPS (Earnings per share) | -0.09 | -0.20 | -0.67 | -0.60 |
| Employees (number) | --- | --- | 711 | 937 |

I CONTENTS
| Editorial | 4 |
|---|---|
| The first nine month 2003 at a Glance | 7 |
| nano PREP – Unique World's-First New Technology | 8 |
| Pioneering Mask Aligner Fitted Out with Latest Technology | 10 |
| SUSS MicroTec Newly Listed in TecDAX Index | 11 |
| SUSS MicroTec further extends capital base | 12 |
| Sales and Order Entry | 14 |
| Sales by Product Line and Region | 14 |
| Order Entry by Product Line and Region | 15 |
| Financial Data | 16 |
| Consolidated Income Statement | 16 |
| Consolidated Balance Sheet | 18 |
| Consolidated Statement of Cash Flows | 20 |
| Consolidated Statement of Shareholders Equity | 22 |
| Accounting Principles / Segment Reporting | 22 |
| Shares and Options of the Executive Bodies | 24 |
| Corporate Calendar 2003 | 24 |
I EDITORIAL

Dear shareholders, employees and business partners of SUSS MicroTec AG,
The positive underlying mood in SUSS MicroTec's markets continued throughout the third quarter. Our most important customers have experienced a marked increase in production capacity utilization and look forward to 2004 with confidence. However, there continues to be a great deal of uncertainty as to how sustainable the industry's recovery will be. This is reflected especially in the slow pace our customers are regaining their confidence to invest in new production equipment. Leading research institutes confirm this trend. In the semiconductor industry, new equipment used to be ordered when capacity utilization reached approximately 85% utilization. Today, it is not uncommon for decision-makers to delay this decision until capacity utilization reaches or exceeds 90% utilization. The good news for most of our customers is their business situation has taken a very clear turn for the better therefore, we anticipate an increase in the number of new orders within the equipment industry in the months ahead. SUSS will clearly benefit from this positive trend.
SUSS has continued its investments in new technology development, which now meets with great interest from the market. The feedback from our customers concerning performance on wafer (samples & demonstrations), especially on our new technology equipment, is being extremely well received. That is why we are convinced that the economic recovery now anticipated for 2004 will affect our sales accordingly and that our work in development will meet our customers' requirements. In this regard, mention must also be made of the sales breakdown by product lines for the third quarter. Due to 125% sales growth compared with the previous quarter, Probers made up almost one third of groupwide sales for the third quarter. Our new technological developments have gained outstanding market acceptance, this trend is primarily attributable to product innovations. Historically, a positive trend in the Prober business has always been an early indicator of an upcoming investment cycle, again another sign which gives us confidence for the near future.
Due to seasonal influences which are in line with previous years, sales in the upcoming fourth quarter of the fiscal year will again increase significantly on the previous quarters. As we ramp up in anticipation for this planned sales increase, the third quarter usually shows a negative operative cash flow. That effect is apparent this year, as well. However, inventories have been held constant for the third quarter, in spite of the planned increased shipments for the fourth quarter. This was due primarily to an increase in sales from existing inventories of finished products. The marked decline in other liabilities exerted a further influence on cash flow in the third quarter. These were mostly related to special factors such as tax payments for 2001 that had been deferred accordingly. Free cash flow in the first nine months remained slightly positive at EUR 0.2 million. Free cash flow is keeping within the target window set for the full year, given that free cash flow is expected to be in balance in the fourth quarter and could even be slightly positive if receivables are paid promptly.
Special mention must be made of the significant containment of losses both generally and compared with the previous quarter. In the third quarter we almost reached the breakeven threshold with an EBITDA of

EUR –0.3 million. We attribute this primarily to cost reduction measures that took effect at the end of fiscal year 2002 and during the first half of 2003.
For the fourth quarter we anticipate, as in previous years, a strong increase in sales on the previous quarters. From today's vantage point we are positioned to reach our target of a free cash flow breakeven. As sales increase, the earnings situation will also show a substantial improvement. With the current cost structure, even a slight increase in sales revenues in the third quarter will move us towards EBITDA breakeven in the fourth quarter, therefore, we expect to end the fourth quarter with a clear profit.
Dear SUSS MicroTec shareholders, employees and business partners, in addition to the development of our business figures the past quarter has also been marked by two more very positive events: listing in the German Stock Exchange's TecDAX index and market acceptance of our recently introduced nanoPREP technology.
We expect nanoPREP to boost our market potential significantly. The technology is unique worldwide and will considerably optimize our customers' performance both in production results and in cost savings. nanoPREP, which can be used in all SUSS production bond clusters, is definitely of great importance for the further development of the trendsetting microsystems technology market. See p. 8 for further details of this, our latest development.
The new technologies developed and introduced by SUSS including, SupraYield (presented in the second quarter) and nanoPREP, are both fundamental innovations that we have successfully launched in the market. Initial customers have been acquired for both technologies, which are now going into production. This will exercise a substantial influence on SUSS MicroTec groupwide sales trends in the years ahead.
The new MJB4 mask aligner (see p. 10) updates and improves existing product lines. The MJB4 is the new entry level mask aligner for use

mainly in research and development. This well planned succession strategy replaces the MJB3, which over the past 30 years has earned a legendary reputation as the standard model used in universities.
With these new developments SUSS MicroTec is superbly positioned for further growth and at the same time setting new standards for promising new semiconductor market opportunities. Positive feedback from our customers further confirms that SUSS MicroTec with its efficient and cost effective, highvalue technologies will profit increasingly from growing investment in the market for semiconductor equipment.
Mention must also be made of the convertible bonds or stock warrants that SUSS MicroTec AG issued a few days ago (see p. 12). This transaction will provide the company directly with EUR 11,642,000 in additional funds and, depending on how the share price develops, a possible further EUR 3,570,786 later on. We aim by this capital measure to create a liquidity position that will lead to the financing of expected growth and to greater flexibility in implementing our longterm strategies.
Garching, October 2003
Dr. Franz Richter Stephan Schulak
CEO CFO
I THE FIRST NINE MONTH 2003 AT A GLANCE
"nano PREP" – Unique World's-First New Technology in Wafer Bonding
SUSS MicroTec has focused increasingly in recent months on product development in the microsystems technology segment. Microsystems technology is gaining steadily in importance because miniaturization of components to boost performance has long moved on to mechanical or other non electrical functions. Take, for example, high performance inkjet printer heads or high resolution pivoting displays. Such exacting requirements from what has become our high tech everyday life call for the most complex microsystems technology components – made up, as a rule, of different silicon wafers. The wafers are first manufactured separately and then bonded together. Direct wafer bonding is a concept used to describe the permanent bonding of two or more silicon wafers, bonding taking place between the silicon's atomic lattice. The problem that then arises is how these wafers can be securely bonded with all the structures that have already been applied to them without the structures on the silicon wafer being destroyed again. Bonding processes with a powerful heat effect (up to 1,000°C) are therefore unsuitable and are ruled out accordingly.
To avoid process temperatures in the region of 1,000°C during silicon bonding, either auxiliary materials must be incorporated (silicon-glasssilicon instead of silicon-silicon) or special moves must be taken to pretreat the silicon surfaces. By means of suitable pretreatment that in the past has only been possible in costly vacuum processes, silicon can be bonded directly and securely with silicon at a temperature of between 200°C and 300°C. Jointly with partners, SUSS MicroTec has carried out intensive process development in this area and developed a new direct wafer bonding process.
The technological innovation nano PREP is a special process step for use in direct wafer bonding. Silicon wafer surfaces are subjected to a special plasma treatment at atmospheric pressure. In the process, the surfaces undergo a change in the molecular area, with groups of molecules that serve as fasteners (OH groups, chemically speaking) settle down on them. When silicon wafers make contact with each other, van der Vaals forces hold them together. They can then be tempered or bonded, creating a permanent bond, at a much lower temperature (200°C as against the previous 1,000°C or so).
With the nano PREP process, SUSS MicroTec has progressed with cutting production costs for microsystems technology even further. The process can be used with all the SUSS Bond clusters that as fully automatic microsystems technology production tools already served to boost production efficiency. These devices are clearly superior to the competition, especially in respect of their level of automation and footprint, thereby enhancing the economic viability of production. The higher level of automation leads as a rule to an improvement in productionline yield, too.
As a longstanding supplier of equipment to the microelectronics industry, SUSS MicroTec has set itself the target of increasing yield, especially in microsystems technology, where typical yields today still lag well behind those achieved in microelectronics. This represents a decisive step forward, given that microsystems technology is set for strong growth in many industries. Use of these powerful and highly versatile "miniworlds" is increasing steadily, especially in the automotive and telecommunications industries, in computers and imedical technology. Were it not for microsystems, inkjet printer heads, biomedicine or sensor technology in its entirety (airbags, GPS systems, tire pressure sensors and much more) would be inconceivable.
SUSS MicroTec developed nano PREP in cooperation with the Max Planck Institute and the Fraunhofer IST Institute. A patent application has already been made for the new plasma surface treatment technology. SUSS MicroTec will continue in the future to work jointly with its partners in process development for the promising microsystems technology market and will be in the vanguard of further refinement of microsystems technologies.
Pioneering Mask Aligner Fitted Out with Latest Technology
MJB3 is a simple abbreviation that stands for a SUSS MicroTec product rich in tradition – one of the first SUSS mask aligners that in those days went by its German name Masken-Justier- und Belichtungsgerät, or MJB for short. The tiny, in its day state-of-the-art, high precision manual device is used in photolithography. It came onto the market in 1969 – and was soon one of the high flyers in its product line. With over 2,000 installed systems worldwide, the MJB3 in its different versions went on to become the best selling SUSS MicroTec mask aligner. For over three decades it has served at universities and in research institutes as the standard device for lithographic research and development of up to 3-inch wafers.
Today, 3-inch silicon wafers are hard to come by. Even at research facilities, 4-inch wafers are in almost exclusive use today. To ensure that the legendary little mask aligner can continue to set milestones in lithographic development in the future, SUSS MicroTec has now launched the MJB3's successor, the MJB4, on the market and fitted it out with the latest control and operating technology. Based on the MJB3's tried and trusted basic mechanical principles, the MJB4 takes over from its predecessor's traditional properties of highest reliability, peak precision and best quality – and does so manually, of course.

SUSS MicroTec Newly Listed in TecDAX Index
Since September 22, 2003, SUSS MicroTec AG has been listed in the Tec-DAX index, the index for technology stocks maintained by Deutsche Börse, the German Stock Exchange.
The TecDAX consists of the 30 largest technology stocks in the German Stock Exchange's Prime Standard quality segment. Criteria for inclusion in the TecDAX index are trading levels over the previous 12 months and free float market capitalization at the time of investigation. The basis for the decision to include SUSS MicroTec in the TecDAX index was the ratings as of July 31, 2003. On that date, SUSS MicroTec fully satisfied both criteria. Deutsche Börse then decided on August 19, 2003 to include SUSS MicroTec stock in the index.
For the Management Board of SUSS MicroTec AG, inclusion in the Tec-DAX index is both an obligation and a challenge to maintain the highest possible level of corporate transparency for investors and, combined with that, continuous reporting. As a TecDAX company, SUSS MicroTec has moved further into the line of focus of institutional and private investors with the result that the company now enjoys coverage once again by 10 well known national and international banks and investment houses.

SUSS MicroTec further extends capital base
With the consent of the supervisory board the management board of SUSS MicroTec AG today resolved to issue a convertible and warrant-linked bond with a total value of EUR 11,642,000.
Simply expressed, convertible bonds are fixed-interest bonds issued by a German stock corporation (Aktiengesellschaft/AG). Investors lend money to the AG in return for the bond for a specified period at a fixed rate of interest. In addition, the creditors (investors) are entitled to convert the bond during its term for shares in the corporation at a prearranged issue price – usually an average price plus a markup.
Once this option is exercised, the right to redemption of the loan is forfeited and the creditor becomes a shareholder. The creditor decides whether or not to exercise this option and convert the bond. Whether he does so will depend on the share price. Conversion is worthwhile when the share price is at least higher than the specified conversion price.
If the creditor does not convert the bond into stock, the AG will repay him at its face value at the end of the term the capital that he invested. He will meanwhile be paid interest, interest rates paid on convertible bonds usually being markedly lower than on conventional bonds.
Further details: EUR 11,268,730 from the total of EUR 11,642,000 shall be attributed to a convertible bond bearing interest of 6% p.a. which shall be repayable in two equal tranches on 31.10.2005 and 30.04.2006 if not converted during this period into a maximum of 1,119,810 shares in SUSS MicroTec AG. The conversion price herefor is EUR 10.063075 per share and is therefore 15% above the average market price for SUSS MicroTec shares during the last 20 trading days prior to November 4, 2003.
The remaining EUR 373,270 is attributed to a warrant-linked bond which also bears interest of 6% p.a. and shall be repayable on 31.10.2008, subject to the exercise of subscription rights to shares. The warrant-linked bond is linked to 373,270 subscription rights per one share in SUSS MicroTec AG. The subscription price per share is EUR 10.566229 each and is therefore 5% above the conversion price. It is payable by the

submission of one partial bond each from the warrant-linked bond plus cash payment of EUR 9.566229 per share.
The Company is hereby implementing a resolution of the general meeting of 14.06.2002. The convertible and warrant-linked bond shall be issued to an English/American investor group. The subscription right was excluded hereby. The lead investor in the transaction was The Tail Wind Fund Ltd., managed by Tail Wind Advisory & Management in London (TWAM). TWAM is regulated by the Financial Services Authority of Great Britain.
Owing to the current low interest rate and the high fluctuation of the share prices the capital market is very favourable for convertible bonds. SUSS MicroTec decided to undertake this measure to provide the financing of the expected growth in 2004 from midterm financed funds with the proceeds from this emission and to achieve greater flexibility when implementing the longterm strategies of SUSS MicroTec.

The total sales of EUR 21.4 million in Q3/2003 or respectively of EUR 60.6 million Q1-Q3/2003 is differentiated by product lines and regions as follows
Sales by product lines (Quarter)
Details in comparison in Mio. of Euro

Sales by product lines (Nine Month) Details in comparison in Mio. of Euro

Sales by region (Quarter)
Details in comparison in Mio. of Euro

Sales by region (Nine Month) Details in comparison in Mio. of Euro

The order entry of EUR 26.1 million in Q3/2003 or respectively of EUR 76.4 million in Q1-Q3/2003 is differentiated by product lines and regions as follows
Order entry by product lines (Quarter)
Details in comparison in Mio. of Euro

Order entry by product lines (Nine Month) Details in comparison in Mio. of Euro

Order entry by region (Quarter) Details in comparison in Mio. of Euro

Order entry by region (Nine Month) Details in comparison in Mio. of Euro

I SUSS MicroTec AG CONSOLIDATED INCOME STATEMENT
| TEUR | 01.07.2002- 30.09.2002* |
|
|---|---|---|
| Sales | 29.764 | |
| Freight and Commissions | -1.450 | |
| Net sales | 28.314 | |
| Cost of goods sold | 15.511 | |
| Gross profit | 12.803 | |
| Administration and selling costs | -12.996 | |
| Research and development costs | -3.803 | |
| Amortization of goodwill | 0 | |
| Other operating expenses and income | -1.072 | |
| Foreign currency exchange gains and losses | -332 | |
| Net income from operations | -5.400 | |
| Interest expenses | -235 | |
| Interest income | 124 | |
| Minority Interest | 0 | |
| Income before taxes | -5.511 | |
| Income taxes | 2.681 | |
| Net loss / Income | -2.830 | |
| Earnings before Interest and Taxes (EBIT)* | -5.400 | |
| Earnings before Interest and Taxes, Depreciation and | ||
| Amortization (EBITDA)* | -4.077 | |
| Per share | ||
| Basic earnings per share in EUR | -0,19 | |
| Diluted earnings per share in EUR | -0,19 | |
| Transition to Comprehensive Income | ||
| Net loss / Income | -2.830 | |
| Other comprehensive income net of tax | ||
| Differences in foreign currency translation | 159 | |
| Additional minimum liability | 0 |
-2.671
Comprehensive Income
| 01.01.2002- 30.09.2002* |
01.01.2002- 31.12.2002 |
01.07.2003- 30.09.2003* |
01.01.2003- 30.09.2003* |
|---|---|---|---|
| 88.398 | 132.379 | 21.973 | 62.438 |
| -3.672 | -4.864 | -533 | -1.824 |
| 84.726 | 127.515 | 21.440 | 60.614 |
| 45.164 | 79.598 | 12.432 | 37.401 |
| 39.562 | 47.917 | 9.008 | 23.213 |
| -42.041 | -48.006 | -9.984 | -31.306 |
| -10.005 | -12.537 | -1.908 | -6.826 |
| 0 | 0 | 0 | 0 |
| -147 | -401 | 977 | 1.601 |
| -2.337 | -3.319 | 152 | -1.877 |
| -14.968 | -16.346 | -1.755 | -15.195 |
| -887 | -1.309 | -330 | -955 |
| 407 | 479 | 114 | 293 |
| 0 | 6 | 4 | -18 |
| -15.448 | -17.170 | -1.967 | -15.875 |
| 6.578 | 8.232 | 628 | 5.731 |
| -8.870 | -8.938 | -1.339 | -10.144 |
| -14.968 | -16.340 | -1.751 | -15.213 |
| -10.579 | -9.535 | -288 | -10.458 |
| -0,60 | -0,60 | -0,09 | -0,68 |
| -0,60 | -0,60 | -0,09 | -0,67 |
| -8.870 | -8.938 | -1.339 | -10.144 |
| -1.739 | -3.192 | -20 | -1.860 |
| 0 | -42 | 0 | 0 |
| -10.609 | -12.172 | -1.359 | -12.004 |
I SUSS MicroTec AG CONSOLIDATED BALANCE SHEET
| TEUR | 30.09.2002* | 31.12.2002 | 30.09.2003* |
|---|---|---|---|
| ASSETS | |||
| Cash and cash equivalents | 15.534 | 16.914 | 13.040 |
| Accounts receivable, net | 27.413 | 34.105 | 18.142 |
| Other receivables and assets | 3.558 | 9.249 | 4.914 |
| Inventories, net | 61.386 | 48.062 | 47.622 |
| Prepaid expenses | 621 | 958 | 862 |
| Deferred tax assets current | 7.237 | 3.405 | 4.632 |
| Total current assets | 115.749 | 112.693 | 89.212 |
| Tangible assets | 18.009 | 16.592 | 13.471 |
| Intangible assets | 11.478 | 9.679 | 7.922 |
| Goodwill | 28.009 | 28.009 | 28.009 |
| Investments in subsidiaries | 147 | 148 | 148 |
| Deferred tax assets long-term | 639 | 4.895 | 7.175 |
| Other long-term assets | 2.161 | 1.940 | 1.889 |
| Total assets | 176.192 | 173.956 | 147.826 |
| TEUR | 30.09.2002* | 31.12.2002 | 30.09.2003* |
|---|---|---|---|
| LIABILITIES & SHAREHOLDERS' EQUITY | |||
| Current bank liabilities | 7.403 | 3.531 | 3.240 |
| Current lease obligations | 462 | 275 | 154 |
| Accounts payable | 6.327 | 3.934 | 3.751 |
| Current portion of pension liabilities | 361 | 223 | 223 |
| Current portion of long-term debt | 2.663 | 3.546 | 2.917 |
| Other current liabilities | 22.353 | 24.432 | 14.130 |
| Total current liabilities | 39.569 | 35.941 | 24.415 |
| Long-term debt | 11.793 | 14.501 | 11.585 |
| Leasing obligations | 649 | 613 | 509 |
| Pension liabilities | 3.558 | 3.580 | 3.653 |
| Other long-term liabilities | 1.406 | 735 | 621 |
| Minorty interest on consolidated subsidiaries | 0 | 52 | 37 |
| Total long-term liabilities | 17.406 | 19.481 | 16.405 |
| Common stock / Common stock EUR 1,00 par value 22,423 | |||
| thousand shares authorized Dec 31, 2002 and Sep 30, 2003, | |||
| respectively; 14,957 thousands shares issued and outstanding | |||
| Dec 31, 2002 and Sep 30, 2003, respectively | 14.957 | 14.957 | 14.957 |
| Additional paid-in capital | 80.031 | 80.911 | 81.387 |
| Appropriated retained earnings | 433 | 433 | 433 |
| Retained earnings (current year and brought forward) | 25.705 | 25.637 | 15.493 |
| Cumulative other comprehensive income | -1.909 | -3.404 | -5.264 |
| Total shareholders' equity | 119.217 | 118.534 | 107.006 |
| Total liabilities & shareholders' equity | 176.192 | 173.956 | 147.826 |
I SÜSS MicroTec AG KONZERNKAPITALFLUSSRECHNUNG
| TEUR | 01.01.2002- 30.09.2002* |
01.01.2002- 31.12.2002 |
01.01.2003- 30.09.2003* |
|---|---|---|---|
| Cash Flow from operating activities | |||
| Net loss | -8.870 | -8.938 | -10.144 |
| Adjustments to equity caused by exchange-rate fluctuations | -491 | -1.505 | -913 |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities | |||
| Non-cash stock based compensation | 861 | 1.430 | 476 |
| Tax effect on expenses of share contribution | 0 | 514 | |
| Amortization of intangible assets | 1.651 | 2.200 | 1.412 |
| Amortization of goodwill | 0 | 0 | |
| Decrease of investments in subsidiaries caused by change in | |||
| consolidation | 0 | 106 | 0 |
| Depreciation of tangible assets | 2.755 | 4.174 | 2.988 |
| Amortization of leased assets | 252 | 547 | 356 |
| Change of deferred tax assets | -2.132 | -2.556 | -3.507 |
| Loss / Gain on disposal of assets | 282 | -20 | 37 |
| Earnings on investments | 0 | -1 | 0 |
| Change of reserves for bad debts | -495 | -167 | 135 |
| Change of reserves on inventory | 290 | 811 | 843 |
| Changes in assets and liabilities | |||
| Change in accounts receivable | 23.886 | 16.866 | 15.828 |
| Change in inventories | -616 | 15.047 | -403 |
| Change in prepaid expenses | 437 | 100 | 96 |
| Change in other assets | -425 | -5.895 | 4.386 |
| Change in accounts payable | -1.150 | -3.543 | -183 |
| Change in other liabilities, provisions and deferred income | -12.185 | -10.106 | -10.302 |
| Change in pension liabilities | -127 | -243 | 73 |
| Change in other long-term liabilities | -2.102 | -2.721 | -129 |
| Cash Flow from operating activities | 1.821 | 6.100 | 1.049 |
* unaudited
> 20
| TEUR | 01.01.2002- 30.09.2002* |
01.01.2002- 31.12.2002 |
01.01.2003- 30.09.2003* |
|---|---|---|---|
| Cash Flow from investing activities | |||
| Payments in tangible assets | -3.878 | -2.935 | -825 |
| Payments in intangible assets | -1.280 | -139 | -38 |
| Payments for business acquisitions | 0 | -3.356 | 0 |
| Proceeds from disposal of tangible and | |||
| financial assets | 413 | 203 | 1 |
| Cash Flow from investing activities | -4.745 | -6.227 | -862 |
| Cash Flow from financing activities | |||
| Increase of bank loans | 0 | 5.677 | 0 |
| Repayment of bank loans | -580 | -2.666 | -3.545 |
| Change in current bank liabilities | -22.119 | -25.991 | -291 |
| Finance-lease payments | 89 | -844 | -225 |
| Proceeds from share capital contribution | 33.609 | 34.465 | 0 |
| Proceeds from issuance of common stocks | 0 | 317 | 0 |
| Payments for expenses of capital increase | 0 | -1.376 | 0 |
| Cash Flow from financing activities | 10.999 | 9.582 | -4.061 |
| Net increase / decrease in cash | 8.075 | 9.455 | -3.874 |
| Adjustments to funds caused by exchange | |||
| rate fluctuations | 625 | -239 | -724 |
| Funds at beginning of the year | 6.834 | 7.698 | 17.638 |
| Funds at end of the period | 15.534 | 16.914 | 13.040 |
| Supplemental cash flow information: | |||
| Interest paid during the period | 960 | 1.103 | 1.017 |
| Income taxes refund/paid during the period including | |||
| prepayments | 2.491 | 3.304 | -871 |
| Disclosure of other non cash activities | |||
| Increase of tangible assets under capital lease | 247 | 710 | 33 |
I SUSS MicroTec AG CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY
| Number of | ||
|---|---|---|
| TEUR | shares in thousands |
Common stock |
| As of 01 January 2002 | 13.802 | 13.802 |
| Appropriation based on increase in share capital | 1.130 | 1.130 |
| Appropriation based on issuance of subscription rights | ||
| Appropriation based on issuance of common stock | 25 | 25 |
| Annual net loss | ||
| Foreign currency adjustment net of tax | ||
| As of 30 September 2002 | 14.957 | 14.957 |
| As of 01 January 2003 | 14.957 | 14.957 |
| Appropriation based on issuance of subscription rights | ||
| Annual net loss | ||
| Foreign currency adjustment net of tax | ||
| As of 30 September 2003 | 14.957 | 14.957 |
Accounting principles
The consolidated financial statements of SUSS MicroTec AG have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The interim financial statements as per June 30, 2003 were prepared in accordance with the same accounting and measurement principles as those applied in the consolidated financial statements as per December 31, 2002, outlined in detail in the notes to those statements.
Segment reporting
SUSS MicroTec AG and the consolidated affiliates operate solely in one business segment. Therefore, the description of the results of separate segments is not applicable.

I SUSS MicroTec AG SHARES AND OPTIONS OF THE EXECUTIVE BODIES CORPORATE CALENDAR
| Shares and options of the executive bodies | Shares 31.12.2002 |
Options 31.12.2002 |
Shares 30.09.2003 |
Options 30.09.2003 |
|---|---|---|---|---|
| Executive Board | ||||
| Dr. Richter | 400,000 | 65,000 | 400,000 | 105,000 |
| S. Schulak | 0 | 286 | 0 | 40,286 |
| Supervisory Board | ||||
| Dr. Süss (Chairman) | 1,039,780 | 0 | 1,104,780 | 0 |
| T. Schlytter-Henrichsen (Dep. Chairman) | 6,909 | 0 | 6,909 | 0 |
| Dr. Schücking | 500 | 0 | 500 | 0 |
| Prof. Dr. Heuberger | 0 | 0 | 0 | 0 |
| Dr. Sesselmann | 0 | 0 | 0 | 0 |
| H. Görtz | 3,894 | 0 | 3,894 | 0 |
Corporate Calendar 2003
03.12.-05.12. SEMICON Japan, Chiba

| Bus 長藤県 е |
Е | |
|---|---|---|
| CONTRACTOR 1940-000 |
TENNIS | |
| 37 J J n a s ۰ |
Charles Comment The Second Second BE 23 音楽 マンドル |
|
|---|---|---|
I SUSS MicroTec AG
Schleissheimer Straße 90 D-85748 Garching
Tel.: (+49)-(0) 89/3 20 07-0 Fax: (+49)-(0) 89/3 20 07-450
E-Mail: [email protected]
www.suss.de
