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SÜSS MicroTec SE
Interim / Quarterly Report • Aug 7, 2024
422_10-q_2024-08-07_c698e1d9-d7dc-428f-a6bd-b3e4907ec169.pdf
Interim / Quarterly Report
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SUSS MicroTec
KEY FIGURES
| in EUR million | Q2 2024 | Q2 2023 | Change | H1 2024 | H1 2023 | Change |
|---|---|---|---|---|---|---|
| Business development | ||||||
| Order intake | 93.9 | 83.3 | $12.7 \%$ | 192.2 | 178.2 | $7.9 \%$ |
| Order book as of June 30 | - | - | - | 450.0 | 381.5 | $18.0 \%$ |
| Sales | 99.3 | 68.4 | $45.2 \%$ | 192.8 | 132.4 | $45.6 \%$ |
| Gross profit | 40.2 | 25.1 | $60.2 \%$ | 76.8 | 47.1 | $63.1 \%$ |
| Gross profit margin | $40.5 \%$ | $36.7 \%$ | $3.8 \%$ points | $39.8 \%$ | $35.6 \%$ | $4.2 \%$ points |
| Cost of sales | 59.0 | 43.2 | $36.6 \%$ | 116.0 | 85.3 | $36.0 \%$ |
| Research and development expenses | 9.4 | 7.1 | $32.4 \%$ | 18.6 | 15.6 | $19.2 \%$ |
| EBITDA | 17.1 | 9.4 | $81.9 \%$ | 33.8 | 14.9 | $126.8 \%$ |
| EBITDA margin | $17.2 \%$ | $13.7 \%$ | $3.5 \%$ points | $17.5 \%$ | $11.2 \%$ | $6.3 \%$ points |
| EBIT | 15.2 | 7.7 | $97.4 \%$ | 30.1 | 11.5 | $161.7 \%$ |
| EBIT margin | $15.3 \%$ | $11.3 \%$ | $4.0 \%$ points | $15.6 \%$ | $8.7 \%$ | $6.9 \%$ points |
| Earnings after taxes (continuing operations) | 12.1 | 6.4 | $89.1 \%$ | 22.5 | 9.4 | $139.4 \%$ |
| Net profit* | 12.1 | 4.1 | -- | 80.8 | 6.2 | -- |
| Earnings per share, basic (in EUR) continuing operations | 0.63 | 0.33 | $90.9 \%$ | 1.18 | 0.49 | $140.8 \%$ |
| Earnings per share, basic (in EUR)* | 0.64 | 0.21 | -- | 4.23 | 0.32 | -- |
| Balance sheet and Cash flow | ||||||
| Equity | -- | -- | - | 249.4 | 178.7 | $39.6 \%$ |
| Equity ratio | -- | -- | -- | 56.0\% | 49.2\% | $6.8 \%$ points |
| Balance sheet total | -- | -- | -- | 445.0 | 363.3 | $22.5 \%$ |
| Net cash | -- | -- | -- | 121.0 | 40.2 | $201.0 \%$ |
| Free cash flow (continuing operations) | 26.5 | 6.3 | -- | 22.6 | 5.1 | -- |
| Free cash flow total* | 22.6 | 0.8 | -- | 93.3 | 1.1 | -- |
| Further key figures | ||||||
| Investments | 1.8 | 1.2 | $50.0 \%$ | 3.0 | 2.0 | $50.0 \%$ |
| Investment ratio | $1.8 \%$ | $1.8 \%$ | $0.0 \%$ points | $1.6 \%$ | $1.5 \%$ | $0.1 \%$ points |
| Depreciation | 2.0 | 1.8 | $11.1 \%$ | 3.8 | 3.4 | $11.8 \%$ |
| Employees as of June 30 | -- | -- | -- | 1,310 | 1,105 | $18.6 \%$ |
[^0]
[^0]: * including discontinued operations
CONTENTS
Group Interim Management Report ..... 4
Business development in the segments ..... 6
Financial position and net assets ..... 9
Opportunity and risks report. ..... 12
Report on expected developments ..... 13
Financial Report ..... 16
Consolidated income statement (IFRS) ..... 16
Statement of comprehensive income ..... 17
Consolidated balance sheet (IFRS) ..... 18
Consolidated statement of changes in equity (IFRS) ..... 19
Consolidated statement of cash flows (IFRS) ..... 20
Segment reporting (IFRS) ..... 22
Reconciliations and statements of discontinued operations ..... 23
Selected explanatory notes on the interim report ..... 25
Responsibility statement by the legal representatives ..... 27
Financial Calendar / Contact / Imprint. ..... 28
BURKHARDT FRICK, CEO OF SUSS MICROTEC SE:
„From the beginning of the year, we emphasized that it would be particularly important to use the high order book for profitable growth in 2024. We achieved this very well in the first half of the year with an increase in sales of $45.6 \%$ and an improvement in the gross profit and EBIT margins of 4.2 and 6.9 percentage points respectively. We are confident that we can continue this positive sales and margin trend in the second half of the year and have consequently raised our guidance for all three key forecast figures.
The high order book of currently $€ 450$ million demands that we continue to drive the expansion of flexible production capacities and measures to increase operational efficiency at full speed. The pressure on manufacturing remains high in order to meet our customers' ambitious capacity expansion plans, particularly for Al-related microchips. We want to demonstrate that we are a strong partner for further growth and are working hard to accelerate the delivery capability from our production sites in Germany and Taiwan."
GROUP INTERIM MANAGEMENT REPORT OF SUSS MICROTEC SE
for the period from January 1, 2024 to June 30, 2024
Discontinued operation MicroOptics removed from the Group following sale
On January 15, 2024, we completed the sale of our subsidiary SUSS MicroOptics S.A. and the business unit of the same name to Focuslight (HK) Investment Management Co. Ltd. We received a purchase price of $€ 58.1$ million for the acquisition of all shares in SUSS MicroOptics S.A. In addition, the intragroup financing of $€ 16.9$ million was repaid. Overall, the completion of the transaction resulted in a cash inflow of $€$ 75.0 million. The result from discontinued operations of $€ 58.3$ million included the special proceeds from the sale.
Due to the disclosure of the MicroOptics segment as a discontinued operation, all expenses and income of the MicroOptics segment as well as the disposal proceeds were reported separately in one item within the income statement and all cash flows were reported separately in the cash flow statement. The previous year's periods were adjusted accordingly. In the balance sheet, the assets and liabilities attributable to this division were reclassified in the previous year under the items "Assets held for sale" and "Liabilities associated with assets held for sale". Both items were derecognized upon completion of the sale of the subsidiary in the first quarter of 2024 and therefore have a value of zero. A list of the assets and liabilities disposed of and the result from discontinued operations as well as reconciliations of the segment figures to the income statement are presented after the segment reporting on pages 23 and 24.
Course of business
In the second quarter of the 2024 financial year, we generated an order intake of $€ 93.9$ million, exceeding the previous year's figure of $€ 83.3$ million by $12.7 \%$. Compared to the first quarter of the current financial year, in which we recorded orders totaling $€ 98.3$ million, new business declined slightly. At $€ 65.8$ million, the Advanced Backend Solutions segment accounted for $70 \%$ of incoming orders in the second quarter. The continued high demand for bonders was particularly noteworthy. Order intake in the Photomask Solutions segment amounted to $€ 28.1$ million in the second quarter of the current financial year (previous year: $€ 46.1$ million). After six months in the 2024 financial year, the order intake totaled $€ 192.2$ million, which corresponds to an increase of $7.9 \%$ compared to the previous year's figure of $€ 178.2$ million.
In the first six months of 2024, we significantly increased our consolidated sales by $45.6 \%$ to $€ 192.8$ million (previous year: $€ 132.4$ million). The second quarter of 2024 contributed $€ 99.3$ million, up $45.2 \%$ on the last year's figure of $€ 68.4$ million. Both segments have significantly increased their sales in the financial year to date. While sales in the Advanced Backend Solutions segment climbed by $39.1 \%$ to $€ 136.0$ million (previous year: $€ 97.8$ million), the sales volume of Photomask Solutions increased by $64.6 \%$ to $€ 56.8$ million (previous year: $€ 34.5$ million).
The order book reached a level of $€ 450.0$ million as of June 30, 2024 and was $18.0 \%$ higher than the comparative figure of $€ 381.5$ million as of June 30, 2023. The book-to-bill ratio, i.e. order intake in relation to sales, was 1.00 in the first half of 2024.
Gross profit increased by $€ 29.7$ million to $€ 76.8$ million in the first half of 2024 (previous year: $€ 47.1$ million). The gross profit margin thus improved by 4.2 percentage points to $39.8 \%$ (previous year: $35.6 \%$ ).
The high gross profit margin of $39.1 \%$ in the first quarter was exceeded once again in the second quarter with a figure of $40.5 \%$, as the highermargin Advanced Backend Solutions segment contributed a larger share of quarterly sales than in the first quarter. Overall, the favorable product mix and the higher sales volume, which ensured better coverage of fixed costs, were the main reasons for the substantial margin improvement compared to the same period of the previous year.
Expenses for sales, administration and research and development rose by $24.7 \%$ in the first half of 2024, from $€ 36.8$ million to $€ 45.9$ million, and therefore at a slower rate than sales. At $€ 18.6$ million (previous year: $€ 15.6$ million), research and development expenses were the largest expenditure item. In relation to sales, research and development expenses amounted to $9.6 \%$ in the first half of the year. The balance of other operating income and expenses amounted to $€-0.9$ million in the first six months of the current financial year (previous year: $€ 1.3$ million).
Overall, EBIT increased to $€ 30.1$ million in the first half of 2024 (previous year: $€ 11.5$ million), driven in particular by the improved gross profit margin. The EBIT margin rose accordingly to $15.6 \%$ (previous year: $8.7 \%$ ). It was very promising that EBIT was spread evenly over the first two quarters: After $€ 14.9$ million in the first quarter, EBIT amounted to $€ 15.2$ million in the second quarter. The EBIT margins were correspondingly high at $15.9 \%$ in the first quarter and $15.3 \%$ in the second quarter.
The financial result for the first half of 2024 amounted to $€ 1.3$ million (previous year: $€ 0.1$ million) and consisted of the balance of interest income and interest expenses. The increase in interest income compared to the first half of 2023 was mainly due to higher short-term investments and higher interest rates.
As a result of the first six months of the 2024 financial year, the SUSS MicroTec Group's net profit for the period amounted to $€ 80.8$ million (previous year: $€ 6.2$ million). This sharp increase is due to the sale of SUSS MicroOptics S.A. and a significant improvement in earnings from continuing operations. Earnings from discontinued operations after tax amounted to $€ 58.3$ million (previous year: $€-3.2$ million) and earnings from continuing operations after tax rose very significantly to $€ 22.5$ million (previous year: $€ 9.4$ million). Basic earnings per share (EPS) from continuing operations amounted to $€ 1.18$ (previous year: $€ 0.49$ ). Total basic earnings per share amounted to $€ 4.23$.
Development in the most important regions
In regional terms, the Asia/Pacific region is our largest sales market. After six months, it accounted for $75.6 \%$ of order intake (previous year: $80.9 \%$ ) and $88.8 \%$ of sales (previous year: $70.5 \%$ ). Taiwan, China and Korea accounted for the largest shares of both order intake and sales.
BUSINESS DEVELOPEMENT IN THE SEGMENTS
Segment Advanced Backend Solutions
The segment Advanced Backend Solutions combines the development, manufacturing and sale of the product lines Imaging Systems (mask aligners and UV projection scanners), Coating Systems (coater/developer and inkjet-based coating processes) and Bonding Systems (temporary and permanent bonders). These product lines are manufactured in Germany at the Garching and Sternenfels sites and in Taiwan at the Hsinchu site. The main target market for this segment is the advanced backend of the semiconductor industry.
| Key Figures Advanced Backend Solutions | ||||
|---|---|---|---|---|
| in EUR million | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
| Order intake | 65.8 | 37.3 | 130.4 | 93.5 |
| Sales | 79.6 | 56.8 | 136.0 | 97.8 |
| Order book | - | - | 280.4 | 200.2 |
| Gross profit | 32.4 | 21.6 | 57.5 | 36.5 |
| Gross profit margin | $40.7 \%$ | $38.1 \%$ | $42.3 \%$ | $37.3 \%$ |
| EBIT | 14.1 | 8.5 | 21.3 | 9.1 |
| EBIT margin | $17.7 \%$ | $14.9 \%$ | $15.7 \%$ | $9.4 \%$ |
In the first six months of 2024, we generated order intake of $€ 130.4$ million in the Advanced Backend Solutions segment, which corresponds to an increase of $39.5 \%$ compared to the same period of the previous year ( $€ 93.5$ million). The orders were evenly distributed between the first quarter ( $€ 64.6$ million) and the second quarter ( $€ 65.8$ million). The development of the segment's three product lines has varied over the course of the year to date. Our customers'
willingness to invest in imaging and coating solutions remained stagnant, reflecting the continued general market restraint. However, customer inquiries picked up again towards the end of the second quarter, indicating an improvement in order momentum in the second half of the year. In contrast, order intake for bonders increased significantly. The largest share was attributable to solutions for temporary bonding. In the second quarter, we received an order from our US technology partner BRIDG (Center for Neovation) for the hybrid bonding solution introduced to the market in May 2024, which enables both die-to-wafer (D2W) and wafer-to-wafer (W2W) hybrid bonding processes in one platform.
The order book for the Advanced Backend Solutions segment amounted to $€ 280.4$ million as of June 30, 2024, a significant increase on the figure of $€ 200.2$ million as of June 30, 2023.
Segment sales increased by $€ 38.2$ million or $39.1 \%$ to $€ 136.0$ million in the first half of 2024 (previous year: $€ 97.8$ million). At $€ 79.6$ million, the second quarter made a greater contribution to sales than the first quarter with $€ 56.4$ million. The significantly higher quarterly sales were enabled by the further expansion of capacity for temporary bonders at the production site in Hsinchu (Taiwan). In addition, sales of some systems that were already manufactured in the first quarter were realized in the second quarter. Sales in the Bonding Systems product line almost tripled compared to the first half of the previous year due to the high order intake in the second half of 2023.
The gross profit margin in the Advanced Backend Solutions segment improved significantly from $37.3 \%$ to $42.3 \%$ in the first half of 2024. The higher sales volume and associated cost degression effects as well as increased production efficiencies contributed to this positive development. The extraordinarily high figure of $44.5 \%$ in the first
quarter could not quite be maintained in the second quarter at $40.7 \%$ due to a slight change in the product mix.
Segment EBIT more than doubled from $€ 9.1$ million to $€ 21.3$ million in the first six months of 2024 because of the higher gross profit. The EBIT margin in the Advanced Backend Solutions segment was 15.7\% in the first half of the year, compared to $9.4 \%$ in the same period of the previous year.
Our development activities in the Advanced Backend Solutions segment in the first half of 2024 continued to focus on our hybrid bonding solutions. We launched the fully integrated platform for die-towafer (D2W) and wafer-to-wafer (W2W) hybrid bonding processes on the market. We also worked on optimizing our wafer-to-wafer solution and carried out customer demonstrations for our die-to-wafer solution at our application center in Sternenfels. Meanwhile, we have extended our cooperation program with the leading international semiconductor research institute Imec in Belgium to further develop processes for temporary bonding and hybrid bonding. In addition, we pressed ahead with the development of the next generation of fully automated mask aligners and UV projection scanners, as well as the ACS300 Gen4 coating platform for wafers with a diameter of 300 millimetres.
Segment Photomask Solutions
The Photomask Solutions segment covers the development, manufacturing and sale of system solutions for cleaning and processing photomasks, primarily in the frontend of semiconductor production.
| Key Figures Photomask Solutions | ||||
|---|---|---|---|---|
| in EUR million | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
| Order intake | 28.1 | 46.1 | 61.8 | 84.7 |
| Sales | 19.7 | 11.5 | 56.8 | 34.5 |
| Order book | - | - | 169.6 | 181.4 |
| Gross profit | 7.4 | 3.7 | 19.6 | 10.7 |
| Gross profit margin | $37.6 \%$ | $31.8 \%$ | $34.5 \%$ | $30.9 \%$ |
| EBIT | 2.8 | 0.7 | 11.0 | 4.4 |
| EBIT margin | $14.2 \%$ | $6.1 \%$ | $19.4 \%$ | $12.6 \%$ |
Order intake in the Photomask Solutions segment fell in the first six months of 2024 from the previous year's above-average figure of $€ 84.7$ million to $€ 61.8$ million. The order book of $€ 169.6$ million as of June 30, 2024 remains very high.
Sales in the Photomask Solutions segment climbed by $€ 22.3$ million or $64.6 \%$ to $€ 56.8$ million in the first half of 2024 (previous year: $€ 34.5$ million). At $60.6 \%$ (Q1) and $71.3 \%$ (Q2), the growth rates in both quarters of the current financial year were exceptionally high. In absolute terms, sales in the second quarter of $€ 19.7$ million fell short of the first quarter's figure of $€ 37.1$ million. As the first quarter had benefited from the recognition of sales from two systems manufactured at the end of 2023, this development was to be expected.
The gross profit margin improved significantly from 30.9\% to 34.5\% in the first six months of 2024, mainly due to the higher sales volume and a favorable product and customer mix. In the second quarter in particular, a positive product and customer mix resulted in an aboveaverage gross profit margin of $37.6 \%$. As sales in this segment consists of a rather low volume of tools with rather high sales prices, the margin spread is subject to greater fluctuations in the product and customer mix.
Segment EBIT improved significantly from $€ 4.4$ million to $€ 11.0$ million in the first half of 2024. The EBIT margin therefore amounted to $19.4 \%$ (previous year: $12.6 \%$ ).
In the Photomask Solutions segment, our development activities focused on the next generation of the MaskTrack SMART platform for cleaning lithographic photomasks for the most advanced EUV and high-NA applications. In this context, we also continued our cooperation program with the lmec research institute. We also continued our process development for wafer cleaning. This solution is based on our photomask cleaning processes and relies on significantly more environmentally friendly cleaning methods than those established on the market. While we are already conducting customer demonstrations with a prototype at our application center in Sternenfels, we have launched a project to develop a production system for high-volume manufacturing.
Central Group Functions
The Central Group Functions segment includes the expenses and income of the central Group functions that cannot be allocated at segment level. In the first six months of 2024, the segment posted EBIT of $€ 56.7$ million (previous year: $€-1.4$ million) and included the extraordinary income from the sale of the MicroOptics business completed in January 2024.
FINANCIAL POSITION AND NET ASSETS
Net financial assets and available liquidity
The Group's net liquidity, which results from the balance of cash and cash equivalents and financial liabilities, increased by around $€ 88.1$ million compared to December 31, 2023. The main factor behind this increase was the sale of the subsidiary SUSS MicroOptics S.A., which resulted in a cash inflow of $€ 75.0$ million in January 2024.
Analysis of the cash flow statement
The cash and cash equivalents shown in the cash flow statement correspond to the balance sheet item "Cash and cash equivalents".
Cash flow from operating activities amounted to $€ 25.3$ million in the first half of the current financial year (previous year: $€ 6.4$ million). With $€-0.3$ million (previous year: $€-1.0$ million), this was slightly impacted by the discontinued operations, i.e. the MicroOptics segment. Cash flow from operating activities from continuing operations therefore amounted to $€ 25.6$ million in the reporting period (previous year: $€ 7.4$ million).
The increase compared to the first half of the previous year is mainly due to a significant increase in business volume. However, this also had an impact on the development of working capital. It increased by around $€ 9$ million in the first half of 2024, in particular due to the increase in inventories, and tied up liquidity accordingly.
Cash flow from investing activities amounted to $€ 68.2$ million in the first six months of 2024 (previous year: $€-5.1$ million). Cash flow from investing activities from discontinued operations was significantly higher at $€ 71.1$ million (previous year: $€-3.0$ million). It was characterized by the cash inflow of $€ 75.0$ million from the sale of the subsidiary SUSS MicroOptics S.A less selling costs incurred of
$€ 3.9$ million. The cash outflows from cash flow from investing activities from continuing operations amounted to $€-2.9$ million (previous year: $€-2.1$ million). Payments for investments in property, plant and equipment increased in the reporting period to $€-2.7$ million (previous year: $€-1.3$ million). $€ 2.0$ million was spent on investments in various technical facilities and in facilities for demonstration purposes as well as in operating and office equipment at the Garching and Sternenfels sites. In addition, a total of $€ 0.7$ million was invested in warehouse equipment as well as operating and office equipment at our site in Taiwan. Payments for investments in intangible assets amounted to $€$ 0.3 million (previous year: $€-1.0$ million).
Free cash flow from continuing operations - defined as the difference between cash flow from operating activities and cash flow from investing activities, adjusted for the effect of the acquisition and sale of securities - amounted to $€ 22.6$ million in the first half of 2024 and was therefore $€ 17.5$ million higher than the free cash flow generated in the first half of 2023 (previous year: $€ 5.1$ million). This was mainly due to the increase in cash flow from operating activities. Total free cash flow, i.e. from continuing and discontinued operations, amounted to $€ 93.3$ million in the first half of 2024 (previous year: $€ 1.1$ million). This change is mainly due to the cash inflow in connection with the sale of the subsidiary SUSS MicroOptics S.A.
In addition to cash and cash equivalents of $€ 125.8$ million (December 31, 2023: $€ 38.1$ million), the Group had a syndicated credit line of $€ 56$ million (previous year: $€ 56$ million) as of the reporting date, which can be used for guarantees and cash drawings. As in the previous year, no cash loans were taken up. Guarantees in the amount of $€ 9.9$ million (previous year: $€ 17.4$ million) were used as of June 30, 2024, the latter mainly for advance payment guarantees for customer prepayments.
Net Assets
Non-current assets amounted to $€ 56.9$ million as of June 30, 2024 and increased only slightly compared to December 31, 2023.
Current assets increased significantly to $€ 388.1$ million as of June 30, 2024, compared to the figure of $€ 313.4$ million as of December 31, 2023. This was mainly due to the $€ 87.6$ million increase in cash and cash equivalents to $€ 125.8$ million (December 31, 2023: € 38.1 million), reduced by the disposal of assets held for sale in the amount of $€ 33.7$ million as part of the sale of the subsidiary SUSS MicroOptics S.A. Inventories also increased by $€ 29.8$ million to $€ 196.5$ million (December 31, 2023: € 166.7 million). This was mainly due to work in progress at $€ 19.3$ million and raw materials and supplies at $€ 5.9$ million. Inventories were built up in order to service the increased order book and to ensure the expansion of production capacity in Taiwan.
Finished goods have increased by $€ 5.1$ million to $€ 40.3$ million since December 31, 2023.
Trade receivables and contract assets each decreased by around $€ 5$ million compared to December 31, 2023. Trade receivables fell by $€ 5.4$ million to $€ 12.3$ million as of June 30, 2024. Contract assets amounted to $€ 30.2$ million at the end of the first half of the year (previous year: $€ 35.2$ million) and relate to SUSS MicroTec's claims to consideration for services from system deliveries that have been completed but not yet invoiced as of the end of the first half of 2024.
Non-current liabilities increased from $€ 26.4$ million as of December 31, 2023 to $€ 30.5$ million as of June 30, 2024. The increase mainly related to deferred tax liabilities, which arose compared to December 31, 2023 due to increased temporary differences between the IFRS carrying
amounts and the tax base of the German companies as a result of the earlier recognition of profits in accordance with IFRS 15.
Current liabilities fell by $€ 1.6$ million to $€ 165.1$ million in the first half of 2024. This was primarily due to the derecognition of liabilities in connection with assets held for sale of $€ 13.0$ million and the reduction in provisions by $€ 3.4$ million. In contrast, tax liabilities increased by $€ 2.1$ million to $€ 13.9$ million, trade payables by $€ 4.7$ million to $€ 31.9$ million, contractual liabilities by $€ 5.4$ million to $€ 92.5$ million and other liabilities by $€ 1.4$ million to $€ 8.8$ million as of the reporting date.
The equity of the SUSS MicroTec Group amounted to $€ 249.4$ million as of June 30, 2024 and has increased by $€ 72.8$ million since December 31, 2023, in particular due to the high net profit for the period, which includes the income from the sale of SUSS MicroOptics S.A. The equity ratio improved accordingly by 8.2 percentage points from $47.8 \%$ as of December 31, 2023 to $56.0 \%$ as of June 30, 2024.
Further details on the development of Group equity can be found in the equity reconciliation statement.
Employees in the Group (continuing operations)
As of June 30, 2024, the SUSS MicroTec Group employed 1,310 people (previous year: 1,105 employees). The majority of the additional employees were hired in the areas of research and development in Germany and in production and logistics in Taiwan, with the aim of accelerating delivery times and increasing production capacity.
| Employees | $06 / 30 / 2024$ | $06 / 30 / 2023$ |
|---|---|---|
| Administration | 105 | 90 |
| Sales and Product Management | 349 | 373 |
| Production and Development | 856 | 642 |
| Total | 1,310 | 1,105 |
Events after the end of the reporting period
There were no reportable events of particular significance for the SUSS MicroTec Group after the end of the reporting period.
OPPORTUNITY AND RISK REPORT
The analysis and assessment of the Group's opportunities and risks is the subject of ongoing consideration by the Management Board and the operational management team. On the basis of opportunityoriented, but at the same time risk-conscious management, we strive for a balanced relationship between risk avoidance, risk reduction and controlled risk acceptance. Awareness of risks should not impair the ability to recognize opportunities and exploit them for the positive development of the company in the interests of its shareholders.
For a full description of our approach to identifying, assessing and managing the risks and opportunities of the SUSS MicroTec Group, please refer to the explanations on pages 94 to 115 of our Annual Report for 2023. The Group's risk management system, internal control system (ICS) and compliance management system (CMS) are also described in the same place. The systems were used in the reporting period without any changes.
In the course of the first half of 2024, the Management Board did not identify any significant changes to the opportunities and risks presented in the 2023 Annual Report. As SUSS MicroTec is increasingly investing cash and cash equivalents in the short term, including from the sale of SUSS MicroOptics S.A., financial investment risks such as impairment or default risks may arise. Accordingly, the description and monitoring mechanisms of the "market price risks" risk category were adjusted to this situation in the reporting period and the risk category was renamed "market price and fair value risks". The risk assessment of the risk category is unchanged compared to the 2023 Annual Report.
The complete presentation of the opportunities and risks for the SUSS MicroTec Group can also be found in our annual report.
Other important events in the reporting period
On June 11, 2024, the shareholders at the Annual General Meeting of SUSS MicroTec SE resolved with 100\% approval to amend Section 1 (1) of the Articles of Association and to change the name of the Group holding company from SÜSS MicroTec SE to SUSS MicroTec SE. The changed name aligns the name of the Group parent company with the existing nomenclature of the Group subsidiaries and simplifies spelling and pronunciation in an international context.
REPORT ON EXPECTED DEVELOPEMENTS
Due to the excellent business performance in the first two quarters of the 2024 financial year and the continued very high order book, we raised the forecast for our company in an ad hoc announcement on July 18, 2024.
General conditions of the forecast - industry development
SUSS MicroTec's business environment is mainly influenced by industry developments and investment cycles in the semiconductor industry as well as by the cyclical global demand for semiconductors. The development of the semiconductor equipment market and the development of the semiconductor market may diverge. On the one hand, growth in the semiconductor equipment sector can decouple from the development of general demand for semiconductors due to efficiency gains, increases in equipment throughput and process improvements with corresponding yield increases. On the other hand, demand for semiconductor equipment is rising due to the expansion of regional semiconductor and chip production capacities, particularly in the USA and Europe. In the semiconductor industry itself, new technologies are constantly being developed and additional fields of application are being opened up, ensuring dynamic yet cyclical growth.
Gartner's industry experts expect the semiconductor industry to grow very significantly by $23.8 \%$ year-on-year to a total of $\$ 624$ billion in 2024. Increasing demand in the area of memory elements (NAND and DRAM memory) and the continued strong demand for microchips for artificial intelligence applications are the main drivers of this growth.
According to current estimates by the global industry association Semiconductor Equipment and Materials International (Semi), the market for semiconductor equipment will grow slightly by $3.4 \%$ to $\$ 109$ billion in 2024. In the wafer fab equipment submarket, which is
particularly important for us and includes wafer processing, fab systems and mask/reticle equipment, growth of $2.8 \%$ to $\$ 98$ billion is expected in 2024. Semi has raised its market forecast significantly compared to the beginning of the year. Demand for semiconductor equipment from China remains high. The current high investment volume for the global expansion of production capacities for DRAM memory, which also includes high-performance memory chips (highbandwidth memory, HBM for short), has accelerated growth due to the Al boom. In the back-end equipment sub-market, where wafers are processed after the front-end processes have been completed, Semi expects a significant recovery, particularly in the second half of the year. The assembly and packaging market segment, which is particularly relevant for SUSS MicroTec, is expected to grow by 10.0\% to USD 4.4 billion over the course of the year.
All semiconductor equipment markets in which we are active are expected to grow over the course of the year. We should also benefit from this in the second half of the year. The megatrends, such as the downsizing of semiconductor structures, artificial intelligence, electromobility and autonomous driving, are intact. In addition, positive impetus can be expected from government-subsidized investments in new, regional semiconductor production facilities.
Premises of the forecast
The updated forecast for the SUSS MicroTec Group takes into account all information known to the Management Board at the time of preparation of this interim management report that it believes could have an impact on business development. The forecast for the development of the SUSS MicroTec Group is based, among other things, on the expectations described above with regard to the development of the global semiconductor equipment industry.
Unpredictable events could have an impact on the Group's business development. Such events include, for example, the effects of shortterm changes in national and international trade law conditions, geopolitical conflicts or a change in the availability of key components and modules that are used in our products.
Overall statement on the expected development of the SUSS MicroTec Group
We believe that SUSS MicroTec is very well positioned after the first half of 2024 and continue to expect significant growth for the Group over the course of the year. Demand for systems and solutions from SUSS MicroTec remains high. The order book of $€ 450.0$ million as of June 30, 2024 (previous year: $€ 381.5$ million) and the associated very high utilization of our production capacities are an excellent basis for continuing our growth course in the second half of the 2024 financial year. The vast majority of the new orders we receive in the current financial year will only be delivered from the 2025 financial year onwards due to the high order book and the high capacity utilization of our production facilities.
| Performance indicators | Forecast 2024 | 2023 |
|---|---|---|
| Sales (in $€$ million) |
$380-410$ | 304.3 |
| Gross profit margin (in \%) | $38-40$ | 34.1 |
| EBIT margin (in \%) | $14-16$ | 9.1 |
We raised our forecast significantly on July 18, 2024 and now expect sales in a range of $€ 380$ to 410 million for the 2024 financial year (previously: $€ 340$ to 370 million). Based on the midpoint of the forecast range, this would correspond to consolidated sales growth of $29.8 \%$. For the gross profit margin in 2024 as a whole, we expect a range of 38 to $40 \%$ (previously: 35 to $38 \%$ ). For the EBIT margin in 2024 as a whole, we expect a range of 14 to $16 \%$ (previously: 10 to $12 \%$ ). In terms of the gross profit margin and EBIT margin, we expect positive effects from the higher level of sales and the associated positive economies of scale as well as a favorable product mix. The expected development of the financial performance indicators underlines the fact that we want to grow very significantly in the current transformation phase and achieve increasing profitability despite rising expenses for development, production and administration.
Forward-looking statements
This half-year financial report contains statements and forecasts relating to future developments of the SUSS MicroTec Group and its companies. The forecasts represent estimates that we have made on the basis of all information available to us at the present time. If the assumptions on which the forecasts are based do not materialize or the risks described in the risk report occur, the actual results may differ from those currently expected. The forecast development of the key financial performance indicators relates exclusively to the development of SUSS MicroTec in the Group structure following the completed sale of the MicroOptics division.
Garching, August 1, 2024
The Management Board of SUSS MicroTec SE
| Burkhardt Frick | Dr. Cornelia Ballwiesser | Dr. Thomas Rohe |
|---|---|---|
| CEO | CFO | COO |
FINANCIAL REPORT: CONSOLIDATED INCOME STATEMENT (IFRS)
| in € thousand | $\begin{gathered} 04 / 01 / 2024 \ -06 / 30 / 2024 \end{gathered}$ | $\begin{gathered} 04 / 01 / 2023 \ -06 / 30 / 2023 \end{gathered}$ | $\begin{gathered} 01 / 01 / 2024 \ -06 / 30 / 2024 \end{gathered}$ | $\begin{gathered} 01 / 01 / 2023 \ -06 / 30 / 2023 \end{gathered}$ |
|---|---|---|---|---|
| Sales | 99,273 | 68,320 | 192,776 | 132,362 |
| Cost of sales | $-59,031$ | $-43,205$ | $-115,957$ | $-85,253$ |
| Gross profit | 40,242 | 25,115 | 76,819 | 47,109 |
| Selling costs | $-6,808$ | $-5,526$ | $-12,334$ | $-9,855$ |
| Research and development costs | $-9,395$ | $-7,104$ | $-18,586$ | $-15,594$ |
| Administration costs | $-7,974$ | $-5,599$ | $-14,973$ | $-11,363$ |
| Other operating income | 1,090 | 2,520 | 2,145 | 4,170 |
| Other operating expenses | $-1,936$ | $-1,673$ | $-2,991$ | $-2,919$ |
| Net income from operations (EBIT) | 15,219 | 7,733 | 30,080 | 11,548 |
| Financial income | 1,028 | 259 | 1,509 | 328 |
| Financial expenses | $-106$ | $-121$ | $-206$ | $-198$ |
| Financial result | 922 | 138 | 1,303 | 130 |
| Earnings before taxes (continuing operations) | 16,141 | 7,871 | 31,383 | 11,678 |
| Income taxes | $-4,008$ | $-1,513$ | $-8,862$ | $-2,281$ |
| Earnings after taxes (continuing operations) | 12,133 | 6,358 | 22,521 | 9,397 |
| Earnings after taxes (discontinued operations) | $-9$ | $-2,284$ | 58,318 | $-3,219$ |
| Net profit | 12,124 | 4,074 | 80,839 | 6,178 |
| Thereof equity holders of SUSS MicroTec | 12,124 | 4,074 | 80,839 | 6,178 |
| Thereof non-controlling interests | 0 | 0 | 0 | 0 |
| Earnings per share, continuing operations (basic) | 0.63 | 0.33 | 1.18 | 0.49 |
| Earnings per share, continuing operations (diluted) | 0.63 | 0.33 | 1.18 | 0.49 |
Statement of comprehensive income (IFRS)
| in € thousand | $\begin{gathered} 01 / 01 / 2024 \ -06 / 30 / 2024 \end{gathered}$ | $\begin{gathered} 01 / 01 / 2023 \ -06 / 30 / 2023 \end{gathered}$ |
|---|---|---|
| Net profit | 80,839 | 6,178 |
| Items that are not reclassified to profit and loss in future periods: | ||
| Actuarial gains / losses from defined benefit pension plans (from the disposal of losses from the sale of subsidiaries) | 1,660 | 0 |
| Tax effects (from the disposal of losses from the sale of subsidiaries) | $-206$ | 0 |
| Other income after tax for items that are not reclassified as an expense or income | 1,454 | 0 |
| Items that are reclassified in later periods | ||
| Foreign currency adjustment | ||
| gains and losses arising in the current period | 202 | $-1,340$ |
| less transfers to the income statement | $-4,471$ | 0 |
| Foreign currency adjustment total | $-4,269$ | $-1,340$ |
| Other income after tax for items that are reclassified as an expense or income in future periods | $-4,269$ | $-1,340$ |
| Other comprehensive income (after tax) | $-2,815$ | $-1,340$ |
| Total other comprehensive income | 78,024 | 4,838 |
| thereof shareholders of SUSS MicroTec | 78,024 | 4,838 |
| thereof non-controlling interests | 0 | 0 |
Consolidated Balance Sheet (IFRS)
| in € thousand | 06/30/2024 | 12/31/2023 |
|---|---|---|
| ASSETS | ||
| NON-CURRENT ASSETS | ||
| Intangible assets | 5,038 | 5,499 |
| Goodwill | 18,567 | 18,494 |
| Tangible assets | 32,066 | 31,129 |
| Other assets | 589 | 511 |
| Deferred tax assets | 600 | 684 |
| Non-current assets | 56,860 | 56,317 |
| CURRENT ASSETS | ||
| Inventories | 196,518 | 166,708 |
| Trade receivables | 12,305 | 17,685 |
| Contract assets | 30,228 | 35,238 |
| Other financial assets | 1,096 | 1,009 |
| Securities | 9,783 | 9,895 |
| Current tax assets | 5 | 123 |
| Cash and cash equivalents | 125,763 | 38,114 |
| Other assets | 12,441 | 10,779 |
| Assets held for sale | 0 | 33,864 |
| Current assets | 388,139 | 313,415 |
| TOTAL ASSETS | 444,999 | 369,732 |
| in € thousand | 06/30/2024 | 12/31/2023 |
|---|---|---|
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| EQUITY | ||
| Subscribed capital | 19.116 | 19.116 |
| Reserves | 232.908 | 157.323 |
| Accumulated other comprehensive income | $-2.638$ | 178 |
| Equity | 249.386 | 176.617 |
| Total equity attributable to shareholders of SUSS MicroTec SE | 249.386 | 176.617 |
| NON-CURRENT LIABILITIES | ||
| Pension plans and similar commitments | 1.431 | 1.584 |
| Provisions | 1.675 | 1.675 |
| Financial debt | 4.723 | 5.313 |
| Financial debt from lease obligations | 6.110 | 6.267 |
| Other financial liabilities | 332 | 332 |
| Other liabilities | 0 | 0 |
| Deferred tax liabilities | 16.224 | 11.207 |
| Non-current liabilities | 30.495 | 26.378 |
| CURRENT LIABILITIES | ||
| Provisions | 3.917 | 7.347 |
| Tax liabilities | 13.887 | 11.825 |
| Financial debt | 1.278 | 1.249 |
| Financial debt from lease obligations | 2.455 | 2.349 |
| Other financial liabilities | 10.417 | 9.420 |
| Trade payables | 31.856 | 27.110 |
| Contract liabilities | 92.474 | 87.038 |
| Other liabilities | 8.834 | 7.411 |
| Liabilities associated with assets held for sale | 0 | 12.988 |
| Current liabilities | 165.118 | 166.737 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 444.999 | 369.732 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (IFRS)
| in € thousand | Subscribed capital | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Total equity attributable to shareholders of SUSS MicroTec SE | |||
|---|---|---|---|---|---|---|---|---|
| Actuarial gains / losses from defined pension benefit plans | Tax effects | Foreign currency adjustments | Tax effects | |||||
| As of January 01, 2023 | 19.116 | 55.822 | 100.628 | $-1.744$ | 465 | 3.443 | 0 | 177.730 |
| Net profit | 6.178 | 6.178 | ||||||
| Other comprehensive income | $-1.340$ | - | $-1.340$ | |||||
| Total comprehensive income | 4.838 | |||||||
| Dividends paid | 0 | 0 | ||||||
| As of June 30, 2023 | 19.116 | 55.822 | 102.983 | $-1.744$ | 465 | 2.103 | - | 186.391 |
| As of January 01, 2024 | 19.116 | 55.822 | 101.502 | $-3.278$ | 638 | 2.817 | - | 176.617 |
| Net profit | 80.839 | 80.839 | ||||||
| Other comprehensive income | 1.660 | $-206$ | $-4.269$ | - | $-2.815$ | |||
| Total comprehensive income | 78.024 | |||||||
| Dividends paid | 0 | $-3.823$ | ||||||
| Effect from the divestment of a subsidiary | $-1.432$ | $-1.432$ | ||||||
| As of June 30, 2024 | 19.116 | 55.822 | 177.086 | $-1.618$ | 432 | $-1.452$ | - | 249.386 |
Consolidated Statement of Cash Flows (IFRS)
| in € thousand | $\begin{gathered} 01 / 01 / 2024 \ -06 / 30 / 2024 \end{gathered}$ | $\begin{gathered} 01 / 01 / 2023 \ -06 / 30 / 2023 \end{gathered}$ |
|---|---|---|
| Net profit | 80,839 | 6,178 |
| Adjustments to reconcile net income / (loss) to operating cash flows | ||
| Income / (loss) from discontinued operations (net of taxes) | $-58,318$ | 3,219 |
| Amortization of intangible assets | 788 | 732 |
| Depreciation of tangible assets | 2,985 | 2,614 |
| Profit / loss on disposal of intangible and tangible assets | $-1$ | 393 |
| Change of reserves on inventories | $-574$ | 3,887 |
| Change of reserves for bad debts | 266 | $-1,395$ |
| Other non-cash effective income and expenses | 700 | $-790$ |
| Change in inventories | $-29,505$ | $-25,646$ |
| Change in contract assets | 5,028 | 12,915 |
| Change in trade receivables | 5,014 | $-1,972$ |
| Change in other assets | $-1,827$ | $-1,591$ |
| Change in pension provisions | $-125$ | $-99$ |
| Change in trade payables | 5,123 | $-5,923$ |
| Change in contract liabilities | 5,441 | 16,834 |
| Change in other liabilities and other provisions | 2,858 | $-2,459$ |
| Change in tax assets and tax liabilities | 6,918 | 500 |
| Cash flow from operating activities - continuing operations | 25,610 | 7,397 |
| Cash flow from operating activities - discontinued operations | $-325$ | $-1,034$ |
| Cash flow from operating activities - total | 25,285 | 6,363 |
| in € thousand | $\begin{gathered} 01 / 01 / 2024 \ -06 / 302024 \end{gathered}$ | $\begin{gathered} 01 / 01 / 2023 \ -06 / 30 / 2023 \end{gathered}$ |
|---|---|---|
| Disbursements for other tangible assets | $-2,706$ | $-1,336$ |
| Disbursements for intangible assets | $-329$ | $-950$ |
| Cash outflows due to investments within short-term commercial paper | $-9,783$ | $-9,802$ |
| Cash income due to investments within short-term commercial paper | 9,895 | 9,943 |
| Cash flow from investing activities - continuing operations | $-2,923$ | $-2,145$ |
| Cash flow from investing activities - discontinued operations | 71,093 | $-2,995$ |
| Cash flow from investing activities - total | 68,170 | $-5,140$ |
| Repayment of bank loans | $-625$ | $-625$ |
| Repayment of rental and lease liabilities | $-1,287$ | $-1,012$ |
| Change in other financial debt | 29 | 14 |
| Dividends paid | $-3,823$ | $-3,823$ |
| Cash flow from financing activities - continuing operations | $-5,706$ | $-5,446$ |
| Cash flow from financing activities - discontinued operations | 0 | $-361$ |
| Cash flow from financing activities - total | $-5,706$ | $-5,807$ |
| Adjustments to funds caused by exchange-rate fluctuations | $-100$ | $-290$ |
| Change in cash and cash equivalents | 87,649 | $-4,874$ |
| Funds at beginning of the year | 38,114 | 51,364 |
| Funds at end of the period | 125,763 | 46,490 |
| (thereof cash and cash equivalents from discontinued operations) | 0 | 2,350 |
| Cash flow from operating activities (continuing operations) including: | ||
| Interest paid during the period | 81 | 88 |
| Interest received during period | 754 | 212 |
| Taxes paid during the period | 1,866 | 1,727 |
SEGMENT REPORTING (IFRS)
- "EUR 8 thousand in revenue for 2023 was reclassified from the MicroOptics segment to the Group Functions segment, as this relates to revenue from continuing operations.
RECONCILIATIONS AND STATEMENTS OF DISCONTINUED OPERATIONS
Reconciliation of sales and the key earnings figures EBIT and EBT from segment reporting to the consolidated income statement
The following tables show the assets and liabilities of the discontinued operations and the divested subsidiary SUSS MicroOptics S.A. at the time of disposal from the Group and the composition of the result from discontinued operations in the first six months of 2024.
SELECTED EXPLANATORY NOTES TO THE INTERIM REPORT AS OF JUNE 30, 2024
(1) GENERAL ACCOUNTING POLICIES
The consolidated financial statements of SUSS MicroTec SE as of December 31, 2023 were prepared in accordance with the International Financial Reporting Standards (IFRS) of the guidelines of the International Accounting Standards Board (IASB) applicable on the reporting date. These interim consolidated financial statements as of June 30, 2024, which were prepared on the basis of International Accounting Standard (IAS) 34 "Interim Financial Reporting", do not contain all the information required by the requirements for the preparation of the annual report and should be read in conjunction with the consolidated financial statements of SUSS MicroTec SE as of December 31, 2023.
The same accounting policies were applied in the interim financial statements as of June 30, 2024 as in the consolidated financial statements for the 2023 financial year. All interpretations of the International Financial Reporting Interpretations Committee (IFRIC) that were mandatory as of June 30, 2024 were applied. For further information on the accounting policies applied in detail, please refer to the consolidated financial statements of SUSS MicroTec SE as of December 31, 2023.
The interim financial statements are neither audited nor reviewed by the Group auditor.
(2) CHANGES IN THE SCOPE OF CONSOLIDATION
The consolidated financial statements include the financial statements of SUSS MicroTec SE and all material companies in which control is exercised in accordance with the control principle, irrespective of the amount of the investment.
SUSS MicroTec SE ceased to control SUSS MicroOptics S.A. with the sale on January 15, 2024. The company was deconsolidated and is no longer included in the scope of consolidation. The deconsolidation gain of $€ 59$ million was recognized in the result from discontinued operations.
(3) CHANGES IN ESTIMATES
For the interim financial statements as of June 30, 2024, no significant deviating discretionary decisions, estimates and assumptions were made that affect the application of accounting policies compared to the 2023 annual report.
(4) BONDS AND EQUITY SECURITIES
During the reporting period, no issuances, repurchases, or repayments occurred involving either bonds or other equity securities.
(5) DIVIDENDS PAID
A dividend of $€ 0.20$ per dividend-bearing share was resolved for the 2023 financial year in the 2024 reporting period and paid out in the amount of $€ 3,823,107.60$.
(6) CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There are no contingent receivables. Contingent liabilities in the form of purchase commitments did not change significantly in the reporting period compared to December 31, 2023, when the figure was $€ 67.0$ million.
(7) EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the profit for the period attributable to the shares (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 the shareholders and the weighted average number of shares outstanding are adjusted for the effects of all potential dilutive shares.
The following table shows the calculation of basic and diluted earnings per share.
(8) REPORT ON MATERIAL TRANSACTIONS WITH RELATED PARTIES
In the first half of 2024, there were no material transactions with related parties that are subject to the disclosure requirements of IAS 24.
(9) SUBSEQUENT EVENTS
There were no significant reportable events after the end of the interim reporting period.
RESPONSIBILITY STATEMENT BY THE LEGAL REPRESENTATIVES
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Garching, August 1, 2024
The Management Board of SUSS MicroTec SE
Burkhardt Frick
CEO
Dr. Cornelia Ballwiesser
CFO
Dr. Thomas Rohe
COO
FINANCIAL CALENDAR 2024
Interim Report 2024
August 7, 2024
Quarterly Report Q3 2024
November 7, 2024
CONTACT
SUSS MicroTec SE
Schleissheimer Straße 90 85748 Garching, Deutschland Phone: +49 89 32007-100
E-mail: [email protected]
Investor Relations
Phone: +49 89 32007-151 / 306
E-mail: [email protected]
www.suss.com
Forward-looking statements: Interim reports include forward-looking statements. Forward-looking statements do not present historical facts but include statements about expectations and the views of the management of SUSS MicroTec SE. These statements are based on current plans, estimates, and forecasts of the Company's management. Investors should not place undue reliance on these statements. Forward-looking statements are to be understood in the context of the time at which they were made. The Company does not assume any obligation to update the forward-looking statements included in this report as a result of new information or future events. The Company's obligation to comply with its statutory responsibilities regarding information and reporting remains unaffected. Forward-looking statements always involve risks and uncertainties. A large number of factors that are described in this report could cause actual events to deviate substantially from the forward-looking statements included in this report.