SÜSS MicroTec SE — Interim / Quarterly Report 2020

Aug 6, 2020

HALF YEAR AND Q2 FIGURES QUARTERLY REPORT

August 6, 2020

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This presentation contains forward-looking statements relating to the business, financial performance and earnings of SUSS 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 SUSS MicroTec SE. Consequently, actual developments as well as actual earnings and performance may differ materially from those which explicitly or implicitly assumed in the forward-looking statements. SUSS MicroTec SE does not intend or accept any obligation to publish updates of these forward-looking statements.

HIGHLIGHTS

Half year

• Strong order entry of €162.6 m
• Contribution by all segments

Q2

• Sales of € 1.6 m
• Positive EBIT with €8.8 m
• EBIT margin 12.3 %
• Strong business development in Photomask Equipment and Lithography
• Industry: increased activity in broad band communication segment (5G)
• COVID-19 pandemy
  • Little impact so far by
  • Uncertainty remains high

KEY GROUP FIGURES HY1 / Q2 2020

In € million	H1 2020	H1 2019	Delta H1 2020/2019	Q2 2020	Q2 2019
Order entry	162.6	91.7	77.3%	93.6	45.0
Order backlog	143.1	85.4	67.6%	---	---
Sales	113.3	94.1	20.4%	71.6	47.0
EBIT	3.2	-0.8		8.8	-2.9
EBIT margin	2.8%	-0.9%	3.7 points	12.3%	-6.2%
Earnings after tax	0.4	-1.9	---	5.8	-2.3
EPS in €	0.02	-0.10	---	0.30	0.12
Free cash flow	17,2	-18.9	---	25,5	-2.5
Net cash	5.1	6.9	-26.1%	---	---
Employees 30/6	944	910	3.7%	---	---

ORDER ENTRY: STRONG QUARTERLY PERFORMANCE

Strong order entry in Q2 especially in Lithography, Photomask Equipment and Bonder divisions and in the Asia-Pacific region

Some major customers have placed big ticket orders for several tools

Increased order backlog of € 143 mio.

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SEGMENT OVERVIEW HY1 2020

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in € mio.	HY1 2020	HY1 2019
Order entry	11,6	10,9
Sales	11,3	10,1
EBIT	0,1	1,7
EBIT margin	0,9%	16,8%

• EBIT weaker than previous half year due to short time work and quality problems with key supplier
• Strong growth in order entry but sales and EBIT below expectations due to postponement of shipments of tools with a decent margin
• Improvement in Q3/4 expected

in € mio.	HY1 2020	HY1 2019
Order entry	23,6	13,5
Sales	9,2	12,9
EBIT	-2,0	0,6
EBIT margin	-21.7%	4.7%

BALANCE SHEET - ASSETS

in € thousand	30.06.2020	31.12.2019
Assets
NON-CURRENT ASSETS	61,572	55,109
Intangible assets	4,658	4,153
Goodwill	18,297	15,707
Tangible assets	33,920	33,905
Other assets	965	568
Deferred tax assets	3,732	776
CURRENT ASSETS	147,364	144,789
Inventories	78,372	75,047
Trade receivables	11,951	18,992
Contract assets	34,491	31,182
Other financial assets	653	366
Securities	0	0
Current tax assets	307	4,708
Cash and cash equivalents	16,505	10,280
Other assets	5,085	4,214
TOTAL ASSETS	208,936	199,898

PiXDRO technology: €437 thousand

PiXDRO Goodwill: €2.6 mio.

Inventories increase:

• Work in progress: increase from €25,5 mio. to €29,6 mio.
• Finished goods: increase from €8,1 mio. to €9,8 mio.

Balance sheet total: increase due to acquisition of PiXDRO and increase of inventories

BALANCE SHEET - LIABILITIES

in € thousand	30.06.2020	31.12.2019
Liabilities & shareholders' equity
Equity	126,032	125,388
Total equity attributable to shareholders of SUSS MicroTec SE	126,032	125,388
Subscribed capital	19,116	19,116
Reserves	106,964	106,606
Accumulated other comprehensive income	-48	-334
NON-CURRENT LIABILITIES	29,591	24,468
Pension plans and similar commitments	6,407	6,037
Financial debt	10,469	10,500
Financial debt from lease obligations	4,646	4,638
Deferred tax liabilities	8,069	3,293
CURRENT LIABILITIES	53,313	50,042
Provisions	4,237	4,198
Tax liabilities	52	702
Financial debt	907	10,399
Financial debt from lease obligations	1,950	2,751
Other financial liabilities	5,338	6,773
Trade payables	10,812	10,013
Contract liabilities	22,334	9,346
Other liabilities	7,683	5,860
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	208,936	199,898

Despite of absolute rise in equity, equity ratio declines from 62.7% to 60.3% due to increase of balance sheet total

• Increase of Deferred tax liabilites by €4.8 m due to temporary differences between recognized values in accordance with IFRS and the tax statements of financial position of the German companies caused by earlier revenue recognition under IFRS 15
• Short-term-debt within Syndicaded loan was completely paid back

Strong order entry led to rise in received down payments by customers

CASH FLOW

Cash flow from operating activities 23,252 -15,094

in € thousand	01.01.2020 - 30.06.2020	01.01.2019 - 30.06.2019	in € thousand	01.01.2020 - 30.06.2020	01.01.2019 - 30.06.2019
Net profit / loss (after taxes)	358	-1,878	Disbursements for other tangible assets	-2,522	-3,431
Amortization of intangible assets	302	557	Disbursements for intangible assets	-291	-348
Depreciation of tangible assets	3,279	2,258	Purchases of current available-for-sale securities	-3,280	0
Profit or loss on disposal of intangible and tangible assets	0	61	Cash flow from investing activities	-6,093	-3,779
Change of reserves on inventories	1,325	3,087	Repayment of bank loans	-9,523	-500
Change of reserves for bad debts	-188	58	Increase of bank loans	0	5,000
Non-cash income from the reversal of pension accruals	0	0	Repayment of leasing liabilities	-1,413	-406
Other non-cash effective income and expenses	100	41	Change in other financial debt	0	0
Change in inventories	-1,729	-8,851	Cash flow from financing activities	-10,936	4,094
Change in contract assets	-3,304	-7,801	Adjustments to funds caused by exchange-rate fluctuations	2	7
Change in trade receivables	7,826	9,133	Change in cash and cash equivalents	6,225	-14,772
Change in other assets	-1,533	-132	Funds at beginning of the year	10,280	30,672
Change in pension provisions	297	30	Funds at end of the period	16,505	15,900
Change in trade payables	412	-1,644
Change in contract liabilities	10,638	-2,312	 Operating Cash Flow improved significantly from € 15.1mio. to €23.3 mio. due to
Change in other liabilities and other provisions	-269	-4,838
Change of tax assets and tax liabilities	5,738	-2,863	• reduced accounts receivables (-€7.8mio.)
			• tax reimbursements (€5,7mio)

• Change in accounts payable and contract liabilities (+€0,4mio. +€10,6mio.)

Free Cash Flow: increased significantly from - €18.9 mio. to + €17,2 mio.

MARKETS ESTIMATES

• Positive market outlook but impacted by COVID-19 uncertainties
• Economic development not easy to foresee

But:

• Clear signal for need to invest in broadband communication systems
• Significant increase in demand from telecom market
• Future demand driven by emerging technologies like 5G, IoT, highperformance computing, augmented reality, artificial intelligence, autonomous driving etc.
• Customers still pushing for shorter delivery times

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GUIDANCE *

in € mio.	Q3+Q4 2020	FY 2020
		Min	Max
Order entry	>90
Sales		240	260
EBIT margin		3%	5%
*) guidance might be highly	impacted by effects from	COVID-19 virus pandemic