SÜSS MicroTec SE

Investor Presentation • Mar 27, 2019

SUSS MICROTEC – FULL YEAR RESULTS 2018

MARCH 27, 2019

• Announcement of growth strategy: SUSS 2025
• Strong order entry for high-end photomask equipment
• 3D-integration is accelerating and turned bonder business into profitability
• Delivery of UV-scanner evaluation tool to leading Asian semiconductor manufacturer
• Order Entry FY 2018: € 191.0 million (thereof € 65 million in Q4 2018)
• Sales FY 2018: € 203.9 million
• EBIT FY 2018: € 10.9 million (5.3% EBIT-margin)

UV-projection scanners:

• Delivery of evaluation tool to Asian customer in November 2018
• One year evaluation period is currently running
• Additional evaluation order from one Asian customer
• Some more tool orders from other customers are expected in 2019

Temporary bonding systems:

• Delivery of several tools to Asian customers is in progress
• New orders from lead customer and other customers expected for 2019

SUSS MicroOptics:

• Automotive qualification achieved in 2018
• 2 nd clean room facility in Switzerland is being built and will be ready end of 2019 (this facility will also host the Imprint Excellence Center)
• Considerable sales growth and margin improvement compared to 2018
• Increased R&D spending for all segments
• CapEx will go up by a mid-single digit amount compared to 2018:
  • New clean room facility Switzerland
  • Upgrade clean room facilities Sternenfels
  • Establishment of production site in Taiwan
  • Financial flexibility will be secured via credit facility

KEY GROUP FIGURES FY 2018 VS FY 2017 (OLD AND IFRS 15 ACCOUNTING SYSTEM)

	IFRS 15			old accounting system
in € million	FY 2018	FY 2017	delta 2017/2018	FY 2018	FY 2017	delta 2017/2018
Revenue	203.9	179.9	13.1%	213.9	166.5	28.5%
EBIT*	10.9	18.2	-40.1%	15.6	13.9	12.2%
EBIT in % of Sales	5.3%	10.1%	-4.8pts	7.3%	8.3%	-1pts
Earnings after tax	4.8	10.0	-52.0%	8.2	6.7	22.4%
EPS in €	0.25	0.52	-51.9%	0.43	0.35	22.9%

*one-off effect 2017: license income of € +2.0 million; one-off effect 2018: severance payment of appr. € -700 thous.

BUSINESS DEVELOPMENT IN FY 2018

MARKET OUTLOOK

• The semiconductor industry is amidst of a big transition and it is entering a disruptive phase where mobile and other merging mega-drivers, such as big data, 5G, high performance computing (HPC), the internet of things (IoT) as well as smart automotive and smart factory will significantly impact business dynamics an create a tremendous opportunity across the semiconductor supply chain (Yole Sep. 2018)
• Semiconductor market + 13,4% in 2018 to a volume of USD 477 bn and + 2.5% in 2019 (Gartner, January 2019)
• Global Fab equipment spending +9,7% in 2018 to a volume of USD 62.1 bn and -4.0% in 2019 (Semi, December 2018)
• More than Moore (MtM) equipment (lithography tools and bonders) to grow by 10% annually (CAGR 2017 – 2023) to an equipment market volume of appr. USD 750 million (Yole, Oct. 2018)
• 3D TSV and Fan-out markets are expected to grow by a CAGR of 29% and 15% respectively from 2017 – 2023 (Yole, Sep. 2018)

OUTLOOK 2019

Fiscal year 2019: Sales of € 200 million to € 215 million EBIT-margin ~ 6.5% - 8.0%

Q1 2019 + Q2 2019: Order entry of € 80 million to € 90 million

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.