SÜSS MicroTec SE — Investor Presentation 2017

Feb 13, 2017

SUSS MICROTEC INVESTOR PRESENTATION

February 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. 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, …

Order entry 2016: € 161.1 million

• Sales 2016: € 177.6 million
• EBIT 2016: € 11.1 million
• Net Cash 2016: € 31.1 million
• Market Cap 01/31/2016: € 145.7 million

HIGHLIGHTS Q4 2016 AND FY 2016

Q4 order entry above own expectations

• Record quarterly sales level of € 69.5 million
• Strong EBIT at € 11.1 million
• EBIT-margin at 16.0 %
• Positive free cash flow of € 4.6 million

FY 2016:

• Key financial figures (order entry, sales and EBIT) within the ambitious guidance
• Delivery, installation and sales recognition of UV-projection scanners for FOWLP
• Dr. Franz Richter becomes new CEO of SUSS MicroTec

Refocusing of the sales organization and strategic alliance with Kanematsu in Japan

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

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

	+ Environmental awareness and rising energy costs drive the demand for energy efficient devices
Energy Efficiency	+ 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 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

Source: Yole 2016

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 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

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 2017

Market Outlook	 Gartner expects the semiconductor market to grow by 7.2% in 2017  This would mark a new record level of 364.1 bn \$ (2016: 339.7 bn \$)
	Market growth will be driven by automotive and industrial applications,  the memory segment and the Internet of Things
	 Semi expects the semiconductor equipment market to grow strongly 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 € 160 – 170 million EBIT € 9 – 13 million
Outlook	 Q1 2017: Order entry € 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:	franka.schielke@suss.com

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 – January 2017: ~ 163.000

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
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

LONG TERM BUSINESS DEVELOPMENT BY QUARTER

Order Entry in € million

Order Backlog in € million

Sales in € million

EBIT, FREE CASH FLOW AND NET CASH DEVELOPMENT

KEY FINANCIALS Q4 2016 AND FULL YEAR 2016

in € million	Q4 2016	Q4 2015	in %	2016	2015	in %
Order Intake	59.5	79.7	-25.3%	161.1	188.6	-14.6%
Order Backlog 12/31	--	--	--	101.5	117.6	-13.7%
Revenue	69.5	55.1	26.1%	177.6	148.5	19.6%
EBIT	11.1	6.7	65.7%	11.1	5.0	>100%
EBIT in % of Sales	16.0%	12.2%	3.8%pt	6.3%	3.4%	2.9%pt
Free Cash Flow*	4.6	14.4	-68.0%	-9.1	1.3	--
Net Cash	--	--	--	31.1	40.0	-22.3%
Employees 12/31	--	--	--	711	698	1.9%

2016	2015	in %
161.1	188.6	$-14.6%$
101.5	117.6	$-13.7%$
177.6	148.5	19.6%
11.1	5.0	>100%
6.3%	3.4%	2.9%pt
$-9.1$	1.3	--
31.1	40.0	$-22.3%$
711	698	1.9%

* before consideration of purchased interest-bearing securities