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SÜSS MicroTec SE

Interim / Quarterly Report Nov 8, 2011

422_10-q_2011-11-08_69e4aa8d-69ac-4262-bbc7-22b89db2793c.pdf

Interim / Quarterly Report

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Nine month report 2011

1 January – 30 September

Key figures

in 1 million Q3 / 2011 Q3 / 2010 Change 9M / 2011 9M / 2010 Change
Continuing operations
Order entry 38.2 56.9 -32.9 % 118.6 139.8 -15.2 %
Order backlog as of 09/ 30 -- -- -- 103.5 108.0 -4.2 %
Total sales 45.9 37.0 24.1 % 130.6 96.6 35.2 %
Sales margin 6.3 % 6.8 % -0.5 %-points 8.6 % 3.7 % 4.9 %-points
Gross profit 16.2 15.5 4.5 % 50.1 35.6 40.7 %
Gross margin 35.3 % 41.9 % -6.6%-points 38.4 % 36.9 % 1.5 %-points
Cost of sales 29.7 21.5 38.1 % 80.5 61.0 32.0 %
R&D costs 3.7 1.8 105.6 % 9.2 5.1 80.4 %
Continuing operations
EBITDA 5.8 6.4 -9.4 % 19.5 13.2 47.7 %
EBITDA margin 12.6 % 17.3 % -4.7 %-points 14.9 % 13.7 % 1.2 %-points
EBIT 4.1 5.0 -18.0 % 14.7
11.3 %
8.4
8.7 %
75.0 %
2.6%-points
EBIT margin 8.9 % 13.5 % -4.6 %-points
Earnings after tax 2.9 2.5 16.0 % 11.2 3.6 211.1 %
Earnings per share (in 1) basic 0.15 0.13 15.4 % 0.59 0.19 210.5 %
Continuing and discontinued operations
Earnings after tax 2.9 3.1 -6.5 % 11.2 3.6 211.1 %
Earnings per share (in 1) basic 0.15 0.16 -6.3 % 0.59 0.19 210.5 %
Balance sheet and cash flow
Equity -- -- -- 117.1 97.0 20.7 %
Equity ratio -- -- -- 60.3 % 57.9 % 2.4 %-points
Return on equity 2.5 % 3.2 % -0.7%-points 9.6 % 3.7 % 5.9%-points
Balance sheet total -- -- -- 194.1 167.5 15.9 %
Net cash -- -- -- 40.1 23.5 70.6 %
Free cash flow(1) 4.5 -2.2 >250.0 % 2.0 3.8 -47.4 %
Further key figures
Investments (2) 0.5 0.6 -16.7 % 3.0 1.8 66.7 %
Investment ratio 1.1 % 1.6 % -0.5%-points 2.3 % 1.9 % 0.4 %-points
Depreciation 1.6 1.5 6.7 % 4.8 4.8 0.0 %
Employees as of 09/ 30 -- -- -- 637 587 8.5 %

Before consideration of purchase or sale of available-for-sale securities and before consideration of extraordinary items from purchase or sale of subsidiaries

(2) Before consideration of the HamaTech acquisition and the purchase of the production site in Sternenfels

CONTENTS

Foreword

Foreword by the Management Board

Highlights

Highlights 2011

Investor Relations

  • Prolonged Debt Situation Continues to Unsettle the Capital Markets
  • The SUSS MicroTec Share
  • 10 Conversion to Registered Shares

Consolidated Interim Management Report

  • Overview of the Business Development
  • Orders Position and Sales by Region
  • Business Development in the Individual Divisions

Financial Report

  • Consolidated Statement of Income (IFRS)
  • Statement of Comprehensive Income (IFRS)
  • Consolidated Balance Sheet (IFRS)
  • Consolidated Statement of Cash Flows (IFRS)
  • Consolidated statement of shareholders' equity (IFRS)
  • Segment Reporting (IFRS)
  • Selected Explanatory Notes

Service

  • Legal Structure of the group
  • Financial Calendar 2011 / 2012
  • Credits and contact

Foreword by the Management Board

Dear Shareholders,

From a political as well as a macroeconomic point of view the third quarter was again very much affected by a large uncertainty, which in part was due to the seemingly non-ending discussions about the financial crisis in Europe. Consumers, customers, suppliers as well as shareholders are concerned about the future of Europe. Until today a solution to the financial crisis is not foreseeable. Whether there will be any consequences for the real economy remains to be seen in the future. The financial market has already suffered from the financial crisis, a high volatility and generally declining share prices as well as a widening of spreads in the bond market could be observed over the last months.

After the successful completion of the relocation of the Bonder activities at the Sternenfels site in Germany in the first six month of the year, we brought forward the integration of our business lines in the third quarter of 2011. This is especially true for research and development as well as the purchasing and logistics activities. The total costs of the relocation amount to 1 5.3 million, of which 1 1.4 million will be realized in the fiscal year 2011.

After an expected slowdown of order intake in the second quarter we guided for an order intake in the third quarter of 1 30 - 40 million. We are pleased to report an order intake of 1 38.2 million, which is above the second quarter's level of 1 32.1 million, despite the increasing headwind from the political and economic environment. This positive development is particularly due to the good order situation in our largest segment, the lithography. The new orders came mainly from the regions Rest of Asia as well as Europe and here particularly from the MEMS end market.

Investor Relations Interim Management Report

The Quarter in Figures

The high demand for SUSS MicroTec equipment, which was particularly evident in the first quarter of 2011 and the three preceding quarters, subsided somewhat in the second quarter as well as in the third quarter, as previously announced. Thus order entry amounted to 1 38.2 million in the months from July to September 2011, against 1 56.9 million in the same period of the previous year, but sequentially we could achieve a slight increase in the level of order intake. Sales developed very positively in the third quarter. They totaled 1 45.9 million, surpassing the amount in the previous year's quarter by 24.1% (Q3 2010: 1 37.0 million).

Considering the entire first nine months of the year, there was a decline in order entry. In the first nine month of 2011 order entry was 1 139.8 million and in the first nine month of 2011 it was 1 118.6 million. Sales in the first nine month of the year, totaling 1 130.6 million, climbed significantly by 35.2% from the previous year's level (9M 2010: 1 96.6 million). The order backlog as of September 30, 2011 thus amounted to 1 103.5 million (September 30, 2010: 1 108.0 million).

left:

Michael Knopp Chief Financial Officer

right: Frank Averdung Chief Executive Officer

The gross profit margin for the SUSS MicroTec Group went up slightly over the year, amounting to 38.4% (9M 2010: 36.9%). It should be taken into account here that in the second quarter of 2010 and also the third quarter 2011 some low-margin systems were delivered for strategic reasons, putting pressure on the gross profit margin as well as the unfavorable product mix in Q3 2011. Additionally SUSS MicroTec incurred higher research and development costs in the third quarter, which came in at 1 9.2 million, which is 81% above the previous year's level of 1 5.1 million.

In nine-month comparison, earnings before interest and taxes (EBIT), including extraordinary effects, improved significantly to 1 14.7 million (9M 2010: 1 8.4 million). Extraordinary effects in the first nine months of the year primarily consisted mainly of restructuring expenses of 1 1.4 million related to the relocation of the Substrate Bonder division from the USA to Germany.

Excluding these extraordinary effects, EBIT came to 1 16.1 million. Earnings after taxes (EAT) amounted to 1 11.2 million, compared with 1 3.6 million in the corresponding period of the previous year. Basic earnings per share (EPS) therefore totaled 1 0.59 (9M 2010: 1 0.19).

Free cash flow before consideration of securities and extraordinary effects from M&A activities as of the end of the first nine months came to 1 2.0 million, after 1 3.8 million in the corresponding period of the previous year. As of September 30, 2011, the SUSS MicroTec Group therefore had cash and interest-bearing securities of 1 54.7 million (09/30/2010: 1 39.2 million). The net cash position increased in comparison to the end of September 2010 from 1 23.5 million to 1 40.1 million as of the end of the quarter.

Outlook

We reiterate our forecast that in the current fiscal year the Company will achieve sales of over 1 170 million as well as an improved EBIT compared to the previous year and an EBIT margin between 10% and 15%, and a positive free cash flow (before completed M&A transactions are taken into account). For the third quarter we expect an order intake of 1 30 - 40 million and a sales level of 1 40 - 45 million.

Garching, Germany, November 2011

Frank Averdung Michael Knopp

Chief Executive Officer Chief Financial Officer

Highlights

SUSS MicroTec introduced MaskTrack Pro InSync

On July 13 SUSS MicroTec launched its new MaskTrack Pro InSync (MTP) - the first holistic in-fab EUVL mask management offering. MTP InSync is a stand-alone or clustered handling system which seamlessly synchronizes mask cleaning, handling, inspection and storage in a single controlled environment. MTP InSync operates in a zero particle regime maintaining perfect mask integrity when entering the vacuum environment of the EUVL Scanner. The MaskTrack Pro InSync is the first and only mask management system available in the market that can interface directly with the specific EUV Dual Pod in a fully-controlled environment. Designed to cluster mask cleaning, mask transfer and storage of the important inner pod in a pristine environment, as well as the optional integration of a particle detection system and inner pod cleaning, MTP InSync provides a unified approach to mask management throughout the lifetime of the mask. MTP InSync's design allows the direct transfer of the Dual Pod from the scanner to the MaskTrack Pro reticle cleaning tool.

International Suppliers' Day in Sternenfels

On September 28 and 29, 2011 SUSS MicroTec hosted its first suppliers' day in Sternenfels, which was entirely dedicated to wafer bonders. The aim of this meeting was to get to know the decision makers of all parties as well as making contact with engineers and constructors. Especially after the relocation of the Wafer Bonder division from Waterbury to Sternenfels it was about time to integrate the cooperation even further and to take it to a higher level. Product presentations by our product managers were well received and induced questions whether supplying the other business units of SUSS MicroTec could also be an option in the future. In the afternoon a guided tour through the production as well as one to one meetings were held. In total we could welcome more than 40 participants in Sternenfels.

Roadshows and Exhibitions

SUSS MicroTec at the Semicon West in San Francisco

This year's Semicon West took place from July 12 to July 14 in the Moscone Center in San Francisco. SUSS MicroTec presented itself under the well known theme "shrink, stack, integrate" on its 55 square meter exhibition stand to customers and business partners. During the exhibition a 3D-Integration Technology Workshop was held at the W Hotel, which was wellattended with over 75 people. The speakers included IMEC and Brewer Science presenting discussions on 3D integration and SUSS MicroTec spoke about new equipment and processes for Temporary Bonding.

Additionally the HB LED market was one of the topics focused on at the exhibition. In total SUSS MicroTec could welcome more than 400 visitors at its exhibition stand.

Photomask Equipment Seminar at Tokyo International Forum

On July 7th, 2011 SUSS MicroTec hosted a forum Titled "Mask Integrity Challenges – Where Lithography Begins" at the Tokyo International Forum in Tokyo, Japan. The forum featured a day of technical presentations to discuss significant challenges facing the next generation lithography reticles and new cleaning solutions that guarantee the highest level of mask integrity. SUSS MicroTec presented in total three papers on Mask Manufacturing and challenges for EUVL (Extreme Ultra Violet Lithography), conventional optical 193i Lithography and Nano-Imprint Lithography. SUSS MicroTec could attract high level guest speakers from the Toshiba Corporation, Dai Nippon Printing, Toppan Printing, University of Hyogo, Molecular Imprint Inc and Asahi Glass. The forum was very well received by over 80 attendees.

3D Workshop during the Semicon West

Industry experts in materials, equipment and processing joined SUSS MicroTec in addressing the status of the 3D TSV infrastructure and recent advances in 3D processing technologies at a workshop which was organized by SUSS MicroTec during the Semicon West.

Wafer Bonding and Lithography Workshop at Cornell University

As part of the ongoing collaboration with Cornell University's NanoScale Science and Technology Facility (CNF), SUSS MicroTec presented a Wafer Bonding and Lithography Workshop in September. CNF graciously hosted the workshop, providing meeting rooms, support staff and clean room facilities for the equipment demos. The attendees saw presentations of the following innovative SUSS MicroTec technologies: SELECT Plasma Treatment, MO Exposure Optics and GenISys software, SCIL Conformal, Wafer-scale Nano Imprinting, Spray Coating, Permanent Bonding and Temporary Bonding.

Semicon Taiwan

Semicon Taiwan 2011 was held from September 7 to 9 in Taipei's World Trade Center. It is the prime event in Taiwan for microelectronics manufacturing. Semicon Taiwan organized six theme pavilions for high-tech technology and nine international forums focusing on MEMS, 3D-ICs and Advanced Packaging/Testing. SUSS gave a lecture for the MEMS forum and a presentation on SCIL (Conformal Imprint Lithography) was held.

Investor Relations

Prolonged Debt Situation Continues to Unsettle the Capital Markets

There is still no end in sight for the European debt crisis, which has now lingered for several months. The situation in Greece remains very tense and the capital markets tend to react with corresponding volatility to the slightest signs of weakness in other countries as well as companies. It is becoming ever more likely that the debt crisis ultimately will have real economic consequences in Europe and possibly worldwide. These fears are currently already valued into many share prices. 90 120 150

The SUSS MicroTec Share

At the beginning of the third quarter, our share recovered very well from the lows encountered in the first half of the year and at times stood well above the 1 10 mark. Unfortunately, this breathing space did not last for long. From mid-July to mid-August, the share had to endure severe price declines to a low of 1 6.27 (August 8, 2011). Even the publication of the mid-year results and a confirmation of the outlook for the full year 2011 were not able to halt this trend. From August to mid-September the share performance was characterized by severe fluctuations, which tracked the price movements of the benchmark TecDAX and Prime IG Semiconductor indexes almost one-for-one. At the end of September, the stock exchanges along with the SUSS MicroTec share experienced another plunge.

SUSS MicroTec Share Performance in 2011 (SUSS MicroTec share price on December 30, 2010: 1 9,14)

As a result, the price as of September 30 stood at 1 6.40, which represented a drop of almost 40% from the beginning of the quarter. The overall conclusion is that stock exchange activity in the summer of 2011 was driven more by the macroeconomic environment than by the actual performance of companies.

A share price of 1 6.40 means a decrease by more than 30% since the end of 2010. The TecDAX and the Prime IG Semiconductor ended the first nine months of the 2011 fiscal year 22% and 28% lower, respectively. The daily average volume of SUSS MicroTec shares traded on all German stock exchanges climbed in the first three quarters of 2011 to 326,343 (9M 2010: daily average volume of 110,338 shares).

Conversion to Registered Shares

As already decided at the Shareholders' Meeting on June 21, 2011, the SUSS MicroTec bearer shares were converted to registered shares on September 9. As a result of this conversion, the share's WKN and ISIN security numbers were changed. The new WKN is A1K023, while the corresponding ISIN is DE000A1K0235. Since September 12, 2011, SUSS MicroTec shares have been traded only under the above-mentioned numbers.

SUSS MicroTec expects the conversion to registered shares not only to provide more transparency in the analysis of ownership information, but also to ease the process of contacting individual shareholders directly. Particularly in advance of the Shareholders' Meeting, SUSS MicroTec is hoping for a significant simplification of the invitation and registration process. Additional information on the topic of registered shares is available on our website at www.suss.com/ir.

Ownership Information as of September 30, 2011 in %

Share Ownership by Officers and Related Parties as of September 30, 2011

Shares Options
Management
Board
Frank Averdung 82,000 -
Michael Knopp 35,000 41,400
Supervisor
y Board
Dr. Stefan Reineck 9,600 40,000
Jan Teichert 0 0
Gerhard Pegam 0 0

Highlights

Consolidated Interim Management Report

of SUSS MicroTec AG

Overview of the Business Development

The order entry of 1 38.2 million in the third quarter of the current fiscal year was not able to reach the record level of 1 56.9 million in the previous year's quarter, but it significantly exceeded the level of the previous quarter (Q2 2011: 1 32.0 million). Sales in the third quarter of 2011 amounted to 1 45.9 million, 24.1% higher than in the previous year's quarter. The demand for SUSS MicroTec equipment was primarily related to the MEMS market segment.

The nine-month period developed as follows: order entry in the first nine months of 2011 was 1 118.6 million, or 15.2% less than the corresponding previous year's amount of 1 139.8 million, although it must be reiterated that the second and third quarters of 2010 experienced particularly positive order entry. Compared with the same period of the previous year, sales increased by approximately 35.2% from 1 96.6 million in 2010 to 1 130.6 million in 2011. The order backlog as of September 30, 2011 amounted to 1 103.5 million (September 30, 2010: 1 108.0 million).

Due to an unfavorable product mix as well as strategically important but relatively low-margin orders, the gross profit margin in the third quarter was only 35.3%, as opposed to 41.9% in the corresponding year-earlier period. For the full year, the gross profit margin was 38.4%, which represents an increase of 1.5 percentage points from the previous year. Earnings before interest and taxes (EBIT) did not develop as desired in the third quarter of 2011, totaling 1 4.1 million, which corresponds to an EBIT margin of approximately 8.9%. This reflected the deterioration in the gross profit margin and higher research and development costs. As a result, it was possible to generate EBIT of 1 14.7 million in the first nine months of 2011 (9M 2010: 1 8.4 million), corresponding to an EBIT margin of 11.3%.

In the first nine months of 2011, extraordinary effects from restructuring measures of approximately 1 1.4 million were recorded (9M 2010: 1 -0.2 million). All of the extraordinary effects in 2011 stem from the relocation of the Substrate Bonder division from the USA to Germany.

Without these extraordinary effects, EBIT in the first nine months of 2011 would have totaled 1 16.1 million (9M 2010: 1 8.2 million), corresponding to an EBIT margin of 12.3% (9M 2010: 8.5%).

Earnings after taxes (EAT) amounted to 1 11.2 million, compared with 1 3.6 million in the corresponding period of the previous year. Basic earnings per share (EPS) therefore totaled 1 0.59 (9M 2010: 1 0.19).

Free cash flow before consideration of securities and extraordinary effects from M&A activities as of the end of the first nine months came to 1 2.0 million, after 1 3.8 million in the corresponding period of the previous year. As of September 30, 2011, the SUSS MicroTec Group therefore had cash and interest-bearing securities of 1 54.7 million (09/30/2010: 1 39.2 million). The net cash position rose from 1 23.5 million as of September 30, 2010 to 1 40.1 million at the end of the quarter.

Orders Position and Sales by Region

The weakening order entry in the first nine months of the 2011 fiscal year encompassed almost all regions. The Rest of Asia region, which primarily includes the countries of Taiwan, China, and Malaysia, recorded a slight decline of 6.6% in orders, compared with the corresponding period of the previous year. The regions of North America (-30.6%) and Europe (-34.5%) both reported double-digit decreases in order entry. Only the Japan region was able to achieve a significant increase in order entry of 56.2% from the previous year's period. As previously discussed on several occasions, the slowdown in order entry was attributable to our customers returning to normal ordering behavior. The strong successive quarters in 2010 were rather atypical for our business.

Although the regions of Japan and Rest of Asia were the drivers of high order entry in the first half of the year, there was intensified activity in the Europe region in the third quarter.

The regional distribution of sales in the first nine months offered a clear picture, as it was possible to achieve double-digit sales growth in all regions. While the regions of Europe and North America were already able to achieve considerable growth, of +22% and +37% respectively, an even more significant increase of +73% was possible in the Japan region. The Rest of Asia region generated 38% higher sales.

Sales by Region in 3 million (Continuing Operations)

Business Development in the Individual Divisions

Lithography

The Lithography division includes the development, manufacture, and sale of the Mask Aligner, Developer, and Coater product lines. These product lines are developed and produced in Germany at the locations in Garching near Munich and since May 2010 in Sternenfels as well.

The Lithography division recorded a decline in order entry in the first nine months of 2011. Order entry of 1 81.1 million for the nine-month period of 2011 could not quite reach the comparable value in the previous year of 1 85.9 million. Division sales in the first nine months of 2011 amounted to 1 84.4 million after 1 65.7 million in the corresponding period of the previous year, representing an increase of approximately 28%. Division earnings (EBIT) improved significantly in nine-month comparison, from 1 13.4 million in the previous year to 1 20.0 million.

Substrat Bonder

The Substrate Bonder division comprises the development, production, and sale of the Substrate (Wafer) Bonder product line and, following the relocation of production activities, is now housed at the Sternenfels site in Germany. Production at the new site commenced as early as the fourth quarter of the 2010 fiscal year.

In the first nine months of the new fiscal year, the Substrate Bonder division recorded a 28% decline in order entry from the previous year. Sales also declined from the corresponding period of the previous year. While order entry fell to 1 14.9 million (9M 2010: 1 20.6 million), sales decreased by 22% from 1 19.0 million to 1 14.8 million. Division earnings as of September 30, 2011 deteriorated to 1 -7.7 million (9M 2010: 1 -5.7 million). The reason for this was once again the delivery of low-margin devices for 3D integration research and development at customers as well as an increase in the division's own research and development costs.

Substrate Bonder Division Overview in 3 million

Photomask Equipment

The Photomask Equipment division includes the development, manufacture, and sale of the HMx, ASx, MaskTrack, and MaskTrack Pro product lines of HamaTech APE GmbH & Co. KG, which was acquired on February 15, 2010. The development and production of specialized systems for the cleaning and processing of photomasks for the semiconductor industry are also conducted at the Sternenfels site near Stuttgart.

In the first nine months of 2011, the Photomask Equipment division recorded order entry of 1 17.9 million and was not able to build on the high level of 1 27.9 million in the previous year. However, it was possible to increase division sales significantly to 1 25.8 million (9M 2010: 1 7.1 million). Division earnings in the first nine months showed a profit of 1 4.4 million (9M 2010: 1 -0.2 million).

Photomask Equipment Division Overview in 3 million

Others

In the first nine months of 2011, the Others division comprised the Mask business in Palo Alto, California (USA), which caters to the semiconductor industry, and the Micro-optics activities at the Neuchâtel, Switzerland, location as well as the C4NP business, and the costs for central Group functions that generally cannot be attributed to the main divisions. Since the Mask business was sold in October 2011, it will no longer be included in the Others division in the future.

The Others division performed relatively well in nine-month comparison. Order entry declined from 1 5.5 million in the first nine months of 2010 to 1 4.6 million. However, division sales after the first nine months of 2011 amounted to 1 5.5 million after 1 4.8 million in the corresponding period of the previous year. In nine-month comparison, the Photomask business recorded almost constant order entry of 1 1.5 million, as well as a slight sales decline from 1 1.8 million in 2010 to 1 1.6 million in 2011. By contrast, order entry in the Micro-optics business decreased by 1 0.8 million to 1 2.7 million (9M 2010: 1 3.5 million), while sales increased by 1 0.8 million to 1 3.6 million (9M 2010: 1 2.8 million). In the previous year, negative goodwill totaling 1 2.7 million related to the initial consolidation of HamaTech APE had a positive impact on division earnings, which amounted to 1 0.8 million in the first nine months of 2010. Division earnings were 1 -1.9 million in the corresponding period of 2011.

Highlights

Financial Report

Consolidated Statement of Income (IFRS)

in 1 thousand 07/01/2011 - 09/30/2011 07/01/2010 - 09/30/2010
Sales 45,913 37,003
Cost of sales -29,700 -21,513
Gross profit 16,213 15,490
Selling costs -4,965 -4,456
Research and development costs -3,656 -1,754
Administration costs -3,570 -4,814
Other operating income 1,383 1,426
Other operating expenses -1,263 -934
Analysis of net income from operations (EBIT)
EBITDA (Earnings before Interest and Taxes, Depreciation and Amortization) 5,784 6,437
Depreciation and amortization of tangible assets, intangible assets and
investments in subsidiaries
-1,642 -1,479
Net income from operations (EBIT) 4,142 4,958
Financial income/expense 106 -99
Profit from continuing operations before taxes 4,248 4,859
Income taxes -1,325 -2,363
Profit from continuing operations 2,923 2,496
Profit / loss from discontinued operations (after taxes) -2 580
Net profit 2,921 3,076
Thereof equity holders of SUSS MicroTec 2,880 3,048
Thereof minority interests 41 28
Earnings per share (basic)
Basic earnings per share from continuing operations in 1 0.15 0.13
Basic earnings per share from discontinued operations in 1 0.00 0.03
Earnings per share (diluted)
Diluted earnings per share from continuing operations in 1 0.15 0.13
Diluted earnings per share from discontinued operations in 1 0.00 0.03

Consolidated Statement of Income (IFRS)

in 1 thousand 01/01/2011 - 09/30/2011 01/01/2010 - 09/30/2010
Sales 130,575 96,635
Cost of sales -80,477 -61,035
Gross profit 50,098 35,600
Selling costs -14,031 -12,110
Research and development costs -9,228 -5,096
Administration costs -11,880 -13,529
Other operating income 3,675 6,893
Other operating expenses -3,917 -3,349
Analysis of net income from operations (EBIT)
EBITDA (Earnings before Interest and Taxes, Depreciation and Amortization) 19,503 13,205
Depreciation and amortization of tangible assets, intangible assets and
investments in subsidiaries
-4,786 -4,796
Net income from operations (EBIT) 14,717 8,409
Financial income/expense 795 -594
Profit from continuing operations before taxes 15,512 7,815
Income taxes -4,263 -4,214
Profit from continuing operations 11,249 3,601
Profit / loss from discontinued operations (after taxes) -23 10
Net profit 11,226 3,611
Thereof equity holders of SUSS MicroTec 11,096 3,560
Thereof minority interests 130 51
Earnings per share (basic)
Basic earnings per share from continuing operations in 1 0.59 0.19
Basic earnings per share from discontinued operations in 1 0.00 0.00
Earnings per share (diluted)
Diluted earnings per share from continuing operations in 1 0.59 0.19
Diluted earnings per share from discontinued operations in 1 0.00 0.00

Statement of Comprehensive Income (IFRS)

in 1 thousand 01/01/2011 - 09/30/2011 01/01/2010 - 09/30/2010
Net profit 11,226 3,611
Fair value fluctuations of available for sale securities -66 -325
Foreign currency adjustment -837 1,036
Cash flow hedges -189 -7
Deferred taxes 70 93
Total income and expenses recognized in equity -1,022 797
Total income and expenses reported in the reporting period 10,204 4,408
Thereof equity holders of SUSS MicroTec 10,059 4,325
Thereof minority interests 145 83

Consolidated Balance Sheet (IFRS)

Ass
ets
in 1 thousand
09/30/2011
12/31/2010
-CURREN
T ASSETS
39,601 44,312
Intangible assets 9,428 11,891
Goodwill 13,599 13,599
Tangible assets 10,206 9,356
Noncurrent tax assets 90 108
Other assets 605 485
Deferred tax assets 5,673 8,873
CURREN
T ASSETS
154,458 137,248
Inventories 76,721 64,431
Trade receivables 17,357 15,659
Other financial assets 818 640
Securities 41,234 15,977
Current tax assets 683 620
Cash and cash equivalents 13,434 36,525
Other assets 4,211 3,396
TOTAL
ASSETS
194,059 181,560

Highlights

12/31/2010 09/30/2011 Liabilities & shareholders' equity in 1 thousand
106,404 117,105 Equity
106,006 116,562 Total equity attributable to shareholders of SUSS MicroTec AG
18,721 19,070 Subscribed capital
87,944 99,188 Reserves
-659 -1,696 Accumulated other comprehensive income
398 543 Minority interests
20,775 19,580 -CURREN
T LIA
BILI
TIES
2,919 2,840 Pension plans and similar commitments
508 437 Provisions
14,367 13,479 Financial debt
240 243 Other financial liabilities
2,741 2,581 Deferred tax liabilities
54,381 57,374 CURREN
T LIA
BILI
TIES
4,613 3,350 Provisions
5,412 4,967 Tax liabilities
1,119 1,136 Financial debt
6,458 7,732 Other financial liabilities
9,746 6,636 Trade payables
27,033 33,553 Other liabilities
181,560 194,059 TOTAL
BILI
TIES AND
SHAREHOLDER
S' EQUI
TY

Consolidated Statement of Cash Flows (IFRS)

in 1 thousand 01/01/2011 - 09/30/2011 01/01/2010 - 09/30/2010
Net profit or loss (after taxes) 11,226 3,611
Amortization of intangible assets 3,119 3,145
Depreciation of tangible assets 1,667 1,665
Profit or loss on disposal of intangible and tangible assets 59 140
Profit on disposal of Cascade shares -833 0
Change of reserves on inventories -163 -727
Change of reserves for bad debts 102 87
Non-cash stock based compensation 45 140
Non-cash income from the reversal of provisions 0 -396
Other non-cash effective income and expenses -565 -1,267
Gain on bargain purchase arising from acquisition HamaTech 0 -2,678
Gain from deconsolidation of SMTTS 0 -1,388
Change in inventories -12,966 -12,330
Change in trade receivables -1,828 -756
Change in other assets -1,159 -1,171
Change in pension provisions -79 -136
Change in trade payables -2,996 1,354
Change in other liabilities and other provisions 6,237 14,335
Change in dererred taxes 3,041 1,187
Cash flow from operating activities 4,907 4,815
in 1 thousand 01/01/2011 - 09/30/2011 01/01/2010 - 09/30/2010
Disbursements for tangible assets -2,317 -1,493
Disbursements for intangible assets -645 -308
Purchases of current available-for-sale securities -29,955 -16,122
Proceeds from redemption of available-for-sale securities 2,099 2,028
Proceeds from redemption of Cascade shares 3,333 0
Proceeds from disposal of intangible and tangible assets 61 0
Payments for purchase of HamaTech 0 -8,031
Proceeds from disposal of Test business 0 2,771
Cash flow from investing activities -27,424 -21,155
Increase of bank loans 0 4,500
Repayment of bank loans -180 0
Change in current bank liabilities 17 -795
Change in other financial debt -708 -679
Proceeds from exercise of stock options 453 0
Proceeds from share capital contribution 0 6,808
Payments for expenses related to capital contribution 0 -227
Cash flow from financing activities -418 9,607
Adjustment to funds caused by exchange rate fluctuations -156 578
Change in cash and cash equivalents -23,091 -6,155
Funds at beginning of the year * 36,525 20,799
Funds at end of the period 13,434 14,644
Cash flow from operating activities includes:
Interest paid during the period 360 117
Interest received during the period 607 332
Tax paid during the period 1,466 243

Tax refunds during the period 16 64

* Cash and cash equivalents as of January 01, 2010 also include liquid funds of 1178 thousand attributable to assets held for sale and to discontinued activities.

Consolidated statement of shareholders' equity (IFRS)

in 1 thousand Subscribed capital Additional paid-in capital Earnings reserve
As of 01 January 2010 17,019 93,094 433
Capital Increase 1,702 4,943
Issuance of subscription rights 140
Net loss
Total income and expenses recognized in equity
As of 30 September 2010 18,721 98,177 433
As of 01 January 2011 18,721 98,225 433
Exercise of stock options 349 104
Issuance of subscription rights 45
Net profit
Total income and expenses recognized in equity
As of 30 September 2011 19,070 98,374 433

Highlights

Equity Minority interests Total equity attributable
to shareholders
of SUSS MicroTec AG
Accumulated other
Comprehensive Income
Retained Earnings
86,060 201 85,859 -743 -23,944
6,645 6,645
140 140
3,611 51 3,560 3,560
797 32 765 765
97,253 284 96,969 22 -20,384
106,403 398 106,005 -659 -10,715
453 453
45 45
11,226 130 11,096 11,096
-1,022 15 -1,037 -1,037
117,105 543 116,562 -1,696 381

Segment Reporting (IFRS)

Segment information by business segment

Lithography Substrate Bonder Photomask Equipment
in 1 thousand 9M / 2011 9M / 2010 9M / 2011 9M / 2010 9M / 2011 9M / 2010
External Sales 84,412 65,720 14,822 19,007 25,847 7,089
Internal Sales 0 0 0 0 0 0
Total Sales 84,412 65,720 14,822 19,007 25,847 7,089
Result per segment (EBIT) 19,968 13,441 -7,735 -5,667 4,376 -168
Income before taxes 19,930 13,403 -7,737 -5,672 4,374 -170
Significant non-cash items -863 -785 -1,835 -1,512 -299 -73
Segment assets 64,332 56,420 36,281 29,666 16,840 16,078
thereof Goodwill 13,599 13,599 0 0 0 0
Unallocated assets
Total assets
Segment liabilities -28,537 -18,865 -7,870 -8,614 -9,656 -5,966
Unallocated liabilities
Total liabilities
Depreciation and amortization 1,210 1,278 1,548 1,856 467 542
thereof scheduled 1,210 1,203 1,548 1,741 467 542
thereof impairment loss 0 75 0 115 0 0
Capital expenditure 948 698 802 379 279 2,000
Workforce at September 30 337 314 136 130 105 87

Segment information by region

in 1 thousand Sales Capital expenditure Assets
9M / 2011 9M / 2010 9M / 2011 9M / 2010 9M / 2011 9M / 2010
Europe 30,014 24,676 2,037 7,318 99,470 67,781
North-America 19,986 14,639 828 482 9,222 27,960
Japan 9,751 5,626 3 0 2,495 1,000
Rest of Asia 70,824 51,491 94 67 1,282 1,398
Rest of world 0 203 0 119 0 0
Consolidation effects 0 0 0 0 8,134 14,984
Total 130,575 96,635 2,962 7,986 120,603 113,123
Total Consolidation effects Discontinued Operations
(Test business)
Continuing operations Other
9M / 2010 9M / 2011 9M / 2010 9M / 2011 9M / 2010 9M / 2011 9M / 2010 9M / 2011 9M / 2010 9M / 2011
98,290 130,955 - - 1,655 380 96,635 130,575 4,819 5,494
0 -4,478 -5,389 0 0 4,478 5,389 4,478 5,389
98,290 130,955 -4,478 -5,389 1,655 380 101,113 135,964 9,297 10,883
8,420 14,694 - - 11 -23 8,409 14,717 803 -1,892
7,826 15,489 - - 10 -23 7,816 15,512 255 -1,055
-2,388 -3,106 - - -29 0 -2,359 -3,106 11 -109
113,835 120,603 - - 0 0 113,835 120,603 11,671 3,150
13,599 13,599 - - 0 0 13,599 13,599 0 0
53,653 73,456
167,488 194,059
-35,740 -46,979 - - 0 0 -35,740 -46,979 -2,295 -916
-34,494 -29,975
-70,234 -76,954
4,810 4,786 - - 14 0 4,796 4,786 1,120 1,561
4,620 4,786 - - 14 0 4,606 4,786 1,120 1,561
190 0 - - 0 0 190 0 0 0
7,986 2,962 - - 0 0 7,986 2,962 4,909 933
587 637 - - 0 0 587 637 56 59

Selected Explanatory Notes

to the Interim Report of SUSS MicroTec AG as of September 30, 2011

1. General Accounting Policies

The consolidated financial statements of SUSS Micro-Tec AG as of December 31, 2010 have been prepared in accordance with the International Financial Reporting Standards (IFRSs) applied by the International Accounting Standards Board (IASB) as of the closing date. In the consolidated interim financial statements as of September 30, 2011, which were prepared on the basis of International Accounting Standards (IAS) 34 "Interim Financial Reporting," the same accounting methods were applied as in the consolidated financial statements for the 2010 fiscal year.

All of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in effect as of September 30, 2011 have been applied.

For additional information about specific accounting and measurement methods, please see the consolidated financial statements of SUSS MicroTec AG as of December 31, 2010.

The Group auditor, KPMG AG Wirtschaftsprüfungsgesellschaft, has neither audited nor reviewed the interim financial statements.

2. Changes in the Scope of Consolidation

The consolidated financial statements include the financial statements of SUSS MicroTec AG and of all material companies over which, independent of the level of its participatory investment, the proprietary company can exercise control (i.e. the control principle).

In the third quarter of 2011, SUSS MicroTec Asia Company Ltd., Bangkok (Thailand), was liquidated and deconsolidated as of July 28, 2011. The company's operations had already been halted in 2009.

Compared with the consolidated financial statements as of December 31, 2010, there were no additional changes to the scope of consolidation.

3. Mandatory Disclosures

3.1 New Credit Agreements

SUSS MicroTec Group has various credit facilities with national and international banks and insurance companies. The credit line of 1 6 million provided by a bank consortium led by BayernLB remained in effect until March 31, 2011. With the agreement from March 30 / March 31, 2011, new credit agreements were concluded with the same bank consortium. As a result of the new credit agreements, the credit line was increased to a total of 1 8 million. The credit line, whose term runs until March 31, 2012, was issued without covenants. Its primary purpose is to serve as backing for down payment guarantees.

With the agreement of April 1 / April 5, 2011, SUSS MicroTec AG and SUSS MicroTec Lithography GmbH concluded a general credit agreement with DZ BANK AG, which made available a credit line of 1 2 million. The credit line runs until March 31, 2012 and was issued without covenants. Its primary purpose is to serve as backing for down payment guarantees.

3.2 Strategic Restructuring

The relocation of the Substrate Bonder division from Waterbury, Vermont (USA), to Germany was completed in April 2011. In the course of the restructuring, the research and development, production, and product management functions for the Bonder product lines were moved to the site in Sternenfels, Germany. The North American customer service and sales activities as well as the applications center were moved from Waterbury, VT, to Silicon Valley in California.

Expenses for the restructuring totaled approximately 1 5.3 million. As of December 31, 2010, expenses of 1 3.9 million had accrued. In the first nine months of 2011, additional restructuring expenses of approximately 1 1.4 million were incurred. In August 2011, the Waterbury site was completely shut down and the leased building was returned to the lessor. Only very modest follow-up costs are anticipated in connection with the leased building. Adequate provisions have been set aside for this purpose. As of the end of the third quarter of 2011, SUSS MicroTec's "USA Restructuring" project has been completed. Additional expenses are not expected. As of September 30, 2011, provisions for restructuring came to 1 0.2 million.

3.3 Other Mandatory Disclosures

The securities held as available for sale recognized in the statement of financial position include – as in the previous year – corporate and government bonds as well as commercial papers with a term of up to three months. The securities have been measured at market prices. Any fluctuations in the market price are recognized in accumulated other comprehensive income and therefore do not affect profit and loss.

Disclosed under this item in the statement of financial position as of December 31, 2010 are the 747,530 Cascade shares – with a fair value of 1 2.4 million as of December 31, 2010 – obtained through the sale of the Test Systems division. The Cascade shares were sold in the first quarter of 2011 for a total of approximately 1 3.3 million. The sale resulted in a disposal gain of 1 0.8 million, which was recognized in the financial result.

SAP was introduced at SUSS MicroTec Inc., Sunnyvale, California (USA), on May 1, 2011, and the company was connected to the Group-wide ERP management system. Expenses for introducing SAP totaled approximately 1 0.1 million. They were capitalized and will be written down over a useful life of five years.

In the second and third quarters of 2011, our employees and members of the Management Board exercised 348,490 stock options from the 2008 stock option plan. As a result, SUSS MicroTec received proceeds totaling 1 0.5 million. The common stock and additional paid-in capital of SUSS MicroTec AG and the SUSS MicroTec Group increased accordingly.

Other issues influencing assets, liabilities, shareholders' equity, the result for the period, or cash flows and unusual in terms of their nature, magnitude, or frequency did not arise during the interim reporting period.

4. Change in Presentation

The presentation of the consolidated financial statements as of September 30, 2011 is analogous to the presentation as of December 31, 2010. There were no changes in presentation.

5. Changes in Estimates

To the extent that estimates were made in the interim reports, the methodology underlying the estimates remained fundamentally the same during the fiscal year and in comparison to the previous fiscal year.

In a departure from the approach used at the end of the fiscal year, income tax expense in each interim reporting period is recorded on the basis of the best estimate of the weighted average annual income tax rate which is expected for the entire fiscal year.

SUSS MicroTec AG currently assumes that the annual income tax rate will deviate from the expected tax rate of approximately 28%. The primary reason for this is that the losses accrued by foreign subsidiaries cannot be capitalized.

Otherwise there are no changes requiring disclosure which would have a material impact on the current interim reporting period.

6. Bonds and Equity Securities

In connection with the exercise of 348,490 stock options from the 2008 stock option plan, a total of 348,490 new shares were issued until September 30, 2011. No additional issuances, repurchases, or repayments occurred involving either bonds or equity securities.

7. Dividends Paid

During the reporting period, no dividend was distributed nor was such a distribution proposed.

8. Significant Events After the End of the Interim Reporting Period

On October 14, 2011, SUSS MicroTec sold its Mask business – SUSS MicroTec Precision Photomask Inc. (previously Image Technology Inc.) – in Palo Alto, California. This step supports SUSS MicroTec's Photomask Equipment business by eliminating potential competition conflicts with customers. Hardly any synergies exist with the core business areas. Deconsolidation can therefore be carried out without difficulties. The sale of the Mask business represents an additional step by SUSS MicroTec to focus on its profitable and rapidly growing core business areas. The transaction had no impact on consolidated earnings.

Compugraphics Inc., an OM Group company, has acquired all of the assets of SUSS MicroTec Precision Photomask Inc., and it will continue the Mask business in the USA. Compugraphics is a globally operating manufacturer of Photomasks with shops in the USA, the United Kingdom, and Germany.

No additional material events occurred after the end of the interim reporting period.

9. Contingent Liabilities and Receivables

There are no contingent receivables. There were no substantial changes in contingent liabilities since the previous reporting date of December 31, 2010.

10. Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period (net of minority interests) by the average number of shares.

In order to calculate diluted earnings per share, the profit or loss for the period attributable to shareholders (net of minority interests) and the weighted average of outstanding shares are adjusted for the impact of all potential dilutive shares.

The following table shows the calculation of the basic and diluted earnings per share:

in 1 thousand 9M / 2011 9M / 2010
Profit from continuing operations 11,226 3,601
Less minority interests -130 -51
Profit from continuing operations attributable to shareholders of SUSS MicroTec AG 11,096 3,550
Weighted average number of outstanding shares 18,847,759 17,854,497
Effect of the (potential) exercise of stock options (number of options) 46,010 0
Adjusted weighted average number of outstanding shares 18,893,769 17,854,497
Earnings per share in 3 from continuing operations – basic – 0.59 0.19
Earnings per share in 3 from continuing operations – diluted – 0.59 0.19

Legal Structure of the group

Holding Company Production Sales Other /Non-operating

*formerly operated under the name Image Technology Inc.

Highlights

Financial Calendar 2011 / 2012

Nine Month Report 2011 November 8
TMT Conference Morgan Stanley, Barcelona November 16
German Equity Forum Fall 2011 November 21 - 23
Annual Report 2011 March 30.
Quarterly Report 2012 May 8
Shareholders' Meeting, Haus der Bayerischen Wirtschaft, Munich June 20
Interim Report 2012 August 7
Nine Month Report 2012 November 8

CREDITS AND CONTACT

ContaCt

SUSS MicroTec AG Schleißheimer Straße 90 85748 Garching, Deutschland Fon: +49 (0)89-32007-0 E-Mail: [email protected]

Investor Relations Fon: +49 (0)89-32007-161 E-Mail: [email protected]

Credits

Published by: SUSS MicroTec AG Edited by: Finance, Julia Natterer Investor Relations, Franka Schielke Concept and design: Whitepark GmbH & Co., Hamburg Photography: Michael Lange, SUSS MicroTec AG

Forward-looking statements: These reports contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based oncurrent plans, estimates, and projections,and should be understood as such. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution readers that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement.

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