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SÜSS MicroTec SE — Investor Presentation 2016
Mar 30, 2016
422_ip_2016-03-30_3221c302-d6a8-443f-91f5-88120d380b96.pdf
Investor Presentation
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SUSS MICROTEC INVESTOR PRESENTATION
April 2016
DISCLAIMER
This presentation contains forward-looking statements relating to the business, financial performance and earnings of SUSS MicroTec AG 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 AG. Consequently, actual developments as well as actual earnings and performance may differ materially from those which explicitly or implicitly assumed in the forwardlooking statements. SUSS MicroTec AG does not intend or accept any obligation to publish updates of these forward-looking statements.
TABLE OF CONTENT
I. SUSS MicroTec at a Glance
- II. Products & Markets
- III. Financials
- IV. Outlook
SUSS MICROTEC AT A GLANCE
Global leader in manufacturing equipment for semiconductor devices
- SUSS' Equipment creates micro structures that connect micro electronic devices
- Focus on growth segments: advanced packaging, MEMS, and 2.5D / 3D Integration
- Attractive end markets: smartphones, tablets, automotive, LED, sensors, IoT, …
Sales FY 2015: €148.5 million
- EBIT FY 2015: € 5.0 million (EBIT-margin: 3.4%)
- Net Cash 2015: € 40.0 million
- Market Cap 03/24/2016: € 185 million
SUSS MICROTEC – A GLOBAL PLAYER
NORTH AMERICA
Order Entry 27.6 € million Sales 28.0 € million Employees 116
EMEA
Order Entry 48.8 € million Sales 40.5 € million Employees 448
ASIA
Order Entry 112.2 € million Sales 80.0 € million Employees 134
TABLE OF CONTENT
I. SUSS MicroTec at a Glance
II. Products & Markets
- III. Financials
- IV. Outlook
SUSS MICROTEC IN THE VALUE CHAIN
MARKET DRIVERS
| Connectivity & Data Processing |
+ Connection through apps, social media, data streaming + Connectivity of devices, Internet of Things (IoT) + Permanent internet connectivity provided by smartphones and tablet PCs at affordable cost + Industry 4.0 connectivity of manufacturing units |
|---|---|
| Mobility & Automotive |
+ Autonomous, electric and plug in hybrid cars, E-Bikes, trains drive the need for power devices and high performance ICs at the same time + Growing electronic content and sensors (MEMS) for autonomous cars |
| Energy Efficiency |
+ Environmental awareness and rising energy costs drive the demand for energy efficient devices + Energy efficiency in industrial production + Smart energy management in household applications |
|---|---|
| + Green energy management systems |
SEGMENTS AND MARKETS
Adjacent Markets
Micro Optics
SEGMENTS AND PRODUCTS
Wafer-level packaging (WLP) and assembly equipment
Source: Gartner, January 2016
Attractive growth opportunities within wafer-level packaging:
- Fan-out WLP
- Copper pillar
- Bumping
- Grow market share for core products in advanced packaging: coater/developer, mask aligner
- Achieve traction for new advanced lithography products from SUSS MicroTec Photonic Systems:
- Further HVM orders for scanner products
-
Qualification of laser products at key customers
-
Internet of Things (IoT)
- Smartphones and tablets
- Automotive applications
- Health/biomedical applications
- Grow market share for core products for MEMS: coater/developer, mask aligner, substrate bonder
- Market re-entry permanent bonder with new differentiated product
Source: Yole, May 2015
IC SCALING TECHNOLOGIES FROM 2D TO 3D
- Increased performance and complexity of ICs by shrinking transistor geometry according to Moore's Law
- New technologies like EUV and multiple patterning drive further scaling
-
Technical challenges and limitations make it increasingly more difficult and expensive to reduce the feature size
-
Combining of several devices on an interposer addresses the limitations of traditional shrinking while enhancing performance
- Increased packaging density
- Reduced footprint
- Packaging becomes enabler and addresses performance slow down of Moore's Law
2D Packaging 2.5D Packaging 3D Integration (TSV)
- Stacking of several devices horizontally enables high performance at a low footprint
- TSV and bonded thin Si technology becomes key enabler for scaling
- Performance and complexity increase combined with smaller footprint
- Reduced energy consumption
SUSS MicroTec's equipment and process solutions enable 2D shrinking ("Moore's Law") and 2.5D / 3D integration ("More than Moore")
TABLE OF CONTENT
- I. SUSS MicroTec at a Glance
- II. Products & Markets
III. Financials
IV. Outlook
ORDER ENTRY Q4 2015 AT RECORD LEVEL
Order Entry by Segment Order Entry by Region
Order Entry in € million Sales in € million
Order Backlog in € million
Free Cash Flow in € million
Net Cash in € million
EBIT in € million
* Including a -13.2 € milion one-off effect from restructuring of the product line permanant bonding (-0,69 € per share)
Sales in € million
Order Backlog in € million
Free Cash Flow EBIT in € million in € million
Net Cash in € million
| in € million | 2015 | 2014 | in % |
|---|---|---|---|
| Order Intake | 188.6 | 134.3 | +40.4% |
| Order Backlog 12/31 | 117.6 | 75.6 | +55.6% |
| Revenue | 148.5 | 145.3 | +2.2% |
| EBIT | 5.0 | 8.4 | -40.5% |
| EBIT in % of Sales | 3.4% | 5.8% | -2.4%pt. |
| Earnings after tax | 0.2 | 4.6 | -95.7% |
| EPS in € | 0.01 | 0.24 | -95.8% |
| Net Cash* | 40.0 | 38.0 | +5.3% |
| Free Cash Flow** | 1.3 | 2.1 | -38.1% |
| Employees 12/31 | 698 | 659 | +5.9% |
* before consideration of purchased / sold interest-bearing securities
TABLE OF CONTENT
- I. SUSS MicroTec at a Glance
- II. Products & Markets
- III. Financials
- IV. Outlook
ROADMAP TARGETS
| Short-term | Grow market share for core products in all market segments Traction for new advanced lithography products from SUSS MicroTec Photonic Systems Stabilize Company at positive EBIT and cash generation, continue revenue growth: Gross margin 30-35% |
|---|---|
| Mid-term | Focused product portfolio Positive EBIT from Bonder Division and Photonic Systems Successful new adjacent market entries (leverage existing technologies to grow SAM) Continue revenue growth at positive EBIT and cash generation: Sales of >200M Gross margin >35% EBIT margin >5% |
| Long-term | Continue revenue growth at positive EBIT and cash generation: Sales of >200M Gross margin >35% EBIT margin 10% |
OUTLOOK 2016
| Market Outlook |
Market environment becomes challenging in 1H 2016 and customers become more cautious with investments |
|---|---|
| Outlook of SUSS MicroTec and our peer group is cautiously optimistic for H2 2016 |
|
| Market analysts expect the semi market to grow by 1 - 2% in 2016 |
|
| Market for WLP and assembly equipment expected to be flat |
|
| Market forecasts show a return to the growth path in WLP and assembly with double digit yoy growth in 2017 and 2018 |
|
| SUSS MicroTec Outlook |
FY 2016: Sales 170 - 180 € million EBIT 9 – 13 € million |
| Q1 2016: Order Intake 25 - 35 € million |
SÜSS MicroTec AG Schleissheimer Str. 90 85748 Garching
www.suss.com
Franka Schielke
| Tel.: | +49 89-32007- 161 |
|---|---|
| Fax.: | +49 89-32007- 451 |
| Email: | [email protected] |
SÜSS MicroTec AG Schleissheimer Strasse 90 85748 Garching Germany www.suss.com
Contact Financial Calendar 2016 German Equity Forum, Frankfurt 23-25 Nov
Financial Calendar 2015
| KeplerCheuvreux Investment Conference, Frankfurt | 20 Jan |
|---|---|
| Annual Report 2015 | 30 Mar |
| Quarterly Report 2016 | 4 May |
| Annual General Meeting 2016, Munich | 15 Jun |
| Interim Report 2016 | 5 Aug |
| Nine-month Report 2016 | 9 Nov |
SHARE PRICE DEVELOPMENT AND MAJOR HOLDERS
(Price of the SUSS MicroTec Share at January 2, 2015: 4.88 € )
Average daily trading volume January 2015 – March 2016: ~ 165,000
| Date | Institution | Analyst | Recommendation | Target |
|---|---|---|---|---|
| 11.02.2016 | Hauck & Aufhäuser | Tim Wunderlich | Buy | 12,50 EUR |
| 15.02.2016 | Baader Bank AG | Günter Hollfelder | Buy | 8,00 EUR |
| 24.03.2016 | Warburg Research | Malte Schaumann | Buy | 12,00 EUR |
| 24.03.2016 | DZ Bank AG | Harald Schnitzer | Hold | 7,50 EUR |
| 11.02.2016 | Kepler Cheuvreux | Bernd Laux | Hold | 8,00 EUR |
| 11.02.2016 | Berenberg | Tammy Qiu | Buy | 9,00 EUR |
| 12.02.2016 | equinet Bank AG | Adrian Pehl | Auccumulate | 8,50 EUR |
| 28.01.2016 | Bankhaus Lampe | Dr. Karsten Iltgen | Hold | 8,00 EUR |
| 08.05.2015 | Oddo Seydler | Veysel Taze | Buy | 6,00 EUR |
| 13.08.2014 | Deutsche Bank | Uwe Schupp | Buy | 9,00 EUR |
LONG TERM BUSINESS DEVELOPMENT BY QUARTER
EBIT, FREE CASH FLOW AND NET CASH DEVELOPMENT
* one-off effect from restructuring the product line permanent bonding
MAIN COMPETITORS AND PEER GROUP
| Peer Group | |
|---|---|
| BE Semiconductor: | equipment for leadframe, substrate and WLP applications (die attach, wire-bonding, plating), target markets include electronics, computer, automotive, industrial, LED and solar energy |
| Ultratech: | steppers for the semiconductor market, advanced packaging, nanotechnology, laser processing (LSA) |
| Kulicke & Soffa: |
design and manufacture of equipment for semiconductor, LED and electronic assembly (wire-bonding, advanced packaging) |
| Rudolph Tech: | equipment and software solutions for macro defect inspection, probe card test and analysis, thin film metrology, advanced packaging lithography systems (steppers) |
| EV Group: | equipment for wafer-bonding, lithography/nanoimprint lithography (NIL), metrology, photoresist coating, cleaning and inspection for the target markets: advanced packaging, compound semiconductor and silicon-based power devices, MEMS, nanotechnology and SOI |
MAIN PRODUCTION SITES
*Production site is owned by SUSS MicroTec