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SÜSS MicroTec SE — Investor Presentation 2017
May 9, 2017
422_ip_2017-05-09_9761f148-b507-4843-b293-0c4db02a6342.pdf
Investor Presentation
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SUSS MICROTEC INVESTOR PRESENTATION
May 2017
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. Business Development Q1 2017
- III. Products & Markets
- IV. Financials
- V. 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, …
Order entry 2016: € 161.1 million
- Sales 2016: € 177.6 million
- EBIT 2016: € 11.1 million
- Net Cash 2016: € 31.1 million
- Market Cap 12/31/2016: € 122 million
MAIN PRODUCTION SITES
*Production site is owned by SUSS MicroTec
SUSS MICROTEC – A GLOBAL PLAYER
NORTH AMERICA
Order Entry 33.7 € million Sales 25.4 € million Employees 102
EMEA
Order Entry 38.1 € million Sales 43.1 € million Employees 469
ASIA
Order Entry 89.3 € million Sales 109.0 € million Employees 140
SUSS MicroTec Group* FY 2016 Sales: 177.6 € million
EBIT: 11.1 € million EBIT margin: 6.3%
* Including Others
TABLE OF CONTENT
- I. SUSS MicroTec at a Glance
- II. Business Development Q1 2017
- III. Products & Markets
- IV. Financials
- V. Outlook
SUMMARY Q1 2017
- Strong order entry in Q1 2017 after a good Q4 2016
- Market forecasts are optimistic for FY 2017
- Successful product launch of the bond cluster XBS200
- Strategic co-operation with Kanematsu in Japan
- Order entry: € 46.0 million (+52.8% yoy)
- Sales: € 23.0 million (-16.7% yoy)
- EBIT: € -4.7 million (prev. year: € -2.0 million)
- Net Cash: € 28.0 million (+4.1% yoy)
- Market Cap April 2017: € ~200 million
SUSS MicroTec Group* Q1 2017 Sales: 23.0 € million
Order Entry: 46.0 € million EBIT: -4.8 € million EBIT margin: -20.9%
* Including Others
TABLE OF CONTENT
- I. SUSS MicroTec at a Glance
- II. Business Development Q1 2017
- III. Products & Markets
- IV. Financials
- V. Outlook
SUSS MICROTEC IN THE VALUE CHAIN
SUSS MicroTec:
- Key player in leading edge semiconductor manufacturing equipment
- Developer of highly innovative process solutions
- Key components for electronic devices such as cell phones, PCs and tablet computers are produced with SUSS MicroTec's equipment
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 PRODUCTS
SEGMENTS AND MARKETS
Adjacent Markets
Micro Optics
Wafer-level packaging (WLP) and assembly equipment
Source: Gartner, January 2017
in bn.
Attractive growth opportunities within wafer-level packaging:
- Fan-out WLP
- Copper pillar
- Bumping
- Grow market share for core products in advanced packaging: coater/developer, UV-projection scanner and mask aligner
- Timing of new FOWLP production line investments appears to be pushing out
- Overall semiconductor equipment market is expected to be flat or slightly down yoy in 2016
- Market forecasts show a return to the growth path in WLP and assembly in 2017
Portable electronic products are driving component packaging towards new packaging technologies for integrating multiple functions (for instance memory and application processors)
FOWLP enables:
- Smaller form factors
- Split die package or multi-die package/SiP
- Increased I/O density (Fine line and space (L/S))
- Die fabrication from different technology nodes can be assembled in a single package
-
Excellent electrical and thermal as well as high temperature warpage performance
-
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
19 SUSS MicroTec Investor Presentation
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. Business Development Q1 2017
- III. Products & Markets
- IV. Financials
- V. Outlook
KEY FINANCIALS Q1 2017 AND FULL YEAR 2016
| in € million | Q1 2017 | Q1 2016 | in % | 2016 | 2015 | in % |
|---|---|---|---|---|---|---|
| Order Intake | 46.0 | 30.1 | +52.8% | 161.1 | 188.6 | -14.6% |
| Order Backlog 03/31 | 124.5 | 118.8 | +4.8% | 101.5 | 117.6 | -13.7% |
| Revenue | 23.0 | 27.6 | -16.7% | 177.6 | 148.5 | 19.6% |
| EBIT | -4.8 | -2.0 | -- | 11.1 | 5.0 | >100% |
| EBIT in % of Sales | -20.9% | -7.2% | _-13.6%pt | 6.3% | 3.4% | 2.9%pt |
| Earnings after tax | -4.6 | -2.5 | -- | 5.0 | 0.2 | >100% |
| EPS in € | -0.24 | -0.13 | -- | 0.26 | 0.01 | >100% |
| Free Cash Flow* | -3.3 | -12.9 | -- | -9.1 | 1.3 | -- |
| Net Cash | 28.0 | 26.9 | +4.1% | 31.1 | 40.0 | -22.3% |
| Employees 03/31 | 710 | 708 | +0.3% | 711 | 698 | 1.9% |
* before consideration of purchased interest-bearing securities
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)
LONG TERM BUSINESS DEVELOPMENT BY QUARTER
EBIT, FREE CASH FLOW AND NET CASH DEVELOPMENT
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% (excluding Photonic Systems) EBIT margin >5% |
|||
| Long-term | Continue revenue growth at positive EBIT and cash generation: Sales of >200M Gross margin >35% EBIT margin 10% |
OUTLOOK
Market Outlook Gartner increased its estimates regarding growth in the semiconductor business in 2017 from +7.2% to +12.3% This would mark a new record level of 386 bn \$ (2016: 339.7 bn \$) Market growth will be driven by automotive and industrial applications, the memory segment and the Internet of Things Semi still expects the semiconductor equipment market to grow by +9.2% in 2017 Wafel-level-packaging and assembly equipment market is expected to grow by 10.7% in 2017 after 3.9% in 2016 (Gartner) Yole expectes MEMS-market CAGR 2015 – 2021 of 13% (unit growth)
| SUSS MicroTec |
| FY 2017: | Sales € 170 – 180 million EBIT € 13 – 17 million |
|---|---|---|---|
| Outlook | | Q2 2017: | Order entry € 35 - 45 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 2017
| Annual Report 2016 | 30 Mar |
|---|---|
| Quarterly Report 2017 | 4 May |
| Annual General Meeting 2017, Munich | 31 May |
| Interim Report 2017 | 10 Aug |
| Nine-month Report 2017 | 9 Nov |
SHARE PRICE DEVELOPMENT AND MAJOR HOLDERS
(Price of the SUSS MicroTec Share at January 2, 2016: 4.88 € )
Average daily trading volume January 2016 – April 2017: ~ 160.000
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 |
| Veeco/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 |