SÜSS MicroTec SE

Investor Presentation • Feb 1, 2019

SUSS MICROTEC INVESTOR PRESENTATION

February 2019

DISCLAIMER

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.

1	Overview
2	Strategy, products and markets
3	Financials
4	Outlook

1	Overview
2	Strategy, products and markets
3	Financials
4	Outlook

• Announcement of growth strategy: SUSS 2025
• Good order entry for high-end photomask equipment
• 3D-integration is accelerating and turning bonder business into profitability
• Delivery of UV-scanner evaluation tool to leading Asian semiconductor manufacturer

	delta 2018
in € million	(IFRS15) / 2017	2018 (IFRS15)	2018 (old)	2017	2016
Order Intake	-4.6%	191.0	191.0	200.3	161.1
Revenue	+20%	~200	~213	166.5	177.6
EBIT*	-40%	~8.4	~15.5	13.9	11.1
EBIT in % of Sales	-4%pts	~4.2%	~7.3%	8.3%	6.3%
Net Cash	-14.5%	28.2	28.2	33.0	31.1

SUSS MICROTEC TODAY

• Equipment provider for semiconductor and related industries
• Semi front-, mid- and back-end, MEMS, RF, Opto, etc.
• Tier one market players becoming major customers
• Very demanding market environment

MARKET ENVIRONMENT - MEGATRENDS

• Digitization
• Wireless Communication
• Data Networks
• Cloud Computing
• Internet of Things
• Smart Factory
• Autonomous Driving
• Mobility
• Automation

SUSS MICROTEC – A GLOBAL PLAYER

MAIN PRODUCTION SITES

OUR PRODUCT PORTFOLIO

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/UTEC:	steppers for the semiconductor market, advanced packaging, nanotechnology, laser processing (LSA)
& Soffa: Kulicke	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

1	Overview
2	Strategy, products and markets
3	Financials
4	Outlook

MARKETS ARE CHANGING – WE RECOGNIZE AND WE REALIZE OPPORTUNITIES

• Megatrends are driving our business: digitization, wireless communication (5G), data networks, cloud computing, IoT, smart factory, autonomous driving, mobility, AI
• Semiconductor industry is highly innovative and very demanding
• Processes are getting more complex – customers asking for more support
• News business fields arise:
• UV – projection scanners for advanced packaging, esp. FOWLP
• Imprint solutions for production of optical elements
• SUSS MicroOptics products for the automotive industry

OUR KEY GROWTH DRIVERS

Market	Advanced packaging	(RF) MEMS	Chipset integration	MicroOptics
	- Micro-bumping - CU-pillar - Redistribution layer (RDL) - FOWLP	- SAW/BAW filters for 5G standard - Autonomous driving - Mobile devices - Smart factory	- 3D TSV - 2.5D integration	- Automotive light carpet - Optical assembly - Wafer level optics

- Mask Aligner platform SUSS - Coater/developer - Coater/developer - Temporary bonder for imprint solutions/ - UV - scanner - UV - scanner - Coater/developer Products lens stacking
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	--

SEMICONDUCTOR MARKET LONG TERM OUTLOOK

The global semiconductor market will be \$656B in 2025 compared to \$343B in 2015 with a CAGR of 6.7%*

*source Semi.org

SEMICONDUCTOR MARKET OUTLOOK = SUSS POTENTIAL

Based on the favorable market trends and our targeted market share gains, we should be able to show sustainable growth of sales over the years to come, always keeping in mind, that the business will remain cyclical

*This chart contains forward-looking targets relating to the business and financial performance of SUSS MicroTec SE. These statements are based on current estimates, projections and expectations and are therefore subject to risks and uncertainties, most of which are difficult to estimate. Consequently, actual developments as well as performance may differ materially from those which is explicitly or implicitly assumed in this graphic.

SUSS 2025 – DOUBLE OUR SALES VOLUME

• Customer satisfaction is our highest priority
• Convince as solutions provider
• Enter new business fields
• Establish co-operations with leading semiconductor suppliers
• Develop / acquire new technologies to improve our core products
• Increase production capacity by outsourcing
• Establish a production site for final assembly in Asia

BUILDING BLOCKS OF OUR STRATEGY

BUILDING BLOCKS OF OUR STRATEGY - BONDER

• • Maintain and expand market position in temporary bonding
• • Penetrate into MEMS applications with permanent bond systems
• • Self learning machines and adaptive process improvements
• • Completion of 200mm permanent bond platform with scaling to 300mm possible

BUILDING BLOCKS OF OUR STRATEGY - COATER

• • Maintain market share at existing customers
• • Mid-term: increase market share in AdP and MEMS via new coating technology with improved cost of ownership
• • Self learning and -improving machines
• • Cost reduction (e.g. via outsourcing)
• • Longer-term: enter new application fields with new coating technology

BUILDING BLOCKS OF OUR STRATEGY - SCANNER

• • Successful delivery of upgrade kit to lead customer
• • Evaluation tool placed at this customer
• • Move into volume production with lead customer
• • Establish a strong market position in uv-projection exposure

UV – PROJECTION SCANNER

• Target markets: advanced packaging (FOWLP, Cu-pillar…)
• Package sizes are increasing (package size gets larger than step field of conventional 1x stepper)
• Scanner is ideal exposure tool to address large package sizes
• High resolution and overlay
• Throughput of our DSC300 Gen3 increased considerably
• Excellent cost of ownership

Our UV – projection scanner is THE tool to address next generation exposure requirements

BUILDING BLOCKS OF OUR STRATEGY – HIGH VOLUME IMPRINT ON BASIS OF OUR MASK ALIGNER

• • Establish an Imprint Excellence Center in Switzerland
• • Utilize our mask aligner platform to offer imprint processes and solutions
• • High quality and low volume production

BUILDING BLOCKS OF OUR STRATEGY - MICROOPTICS

1	Overview
2	Strategy, products and markets
3	Financials

KEY GROUP FIGURES 9M 2018

			delta 9M 2018/
in € million	Q3 2018	Q3 2017	9M 2017	9M 2018	9M 2017	in %
Order Intake	47.0	36.9	+27.4%	125.2	131.4	-4.7%
Order Backlog 9/30	--	--	--	119.5	117.7	1.5%
Revenue	41.9	47.1	-11.0%	139.3	113.4	22.8%
EBIT	-0.7	7.0	--	6.9	8.6	-19.8%
EBIT in % of Sales	-1.7%	14.9%	-16.5%pts	5.0%	7.6%	-2.6%pts
adjusted EBIT*	-0.1	5.0	--	7.5	6.6	-13.6%
adj. EBIT in % of Sales	-0.02%	10.6%	--	5.4%	5.8%	-0.4%pts
Earnings after tax	-0.8	4.5	--	3.4	3.8	-10.5%
EPS in €	-0.04	0.24	--	0.18	0.20	-10.0%
Free Cash Flow	-6.8	6.3	--	-22.7	0.7	--
Net Cash	--	--	--	10.4	30.9	-66.3%
Employees 9/30	--	--	--	863	762	19.6%

*one-off effect 2017: license income of € 2.0 million one-off effect 2018: severance payment of appr. € 600 tsd.

LONG TERM BUSINESS DEVELOPMENT I

SUSS MicroTec Investor Presentation 27

LONG TERM BUSINESS DEVELOPMENT II

* EBIT 2013: one-off effect from restructuring the product line permanent bonding (€ -13.2 million)

INVENTORY DEVELOPMENT

• Inventory went up because of high order backlog
• Increased number of valuation and demonstration tools in the field
• Preproduction of multiple tools in order to meet challenging lead times

ORDER ENTRY BY REGION 9M 2018 (FY2017)

ORDER ENTRY BY SEGMENT 9M 2018 (FY 2017)

(prior year in brackets)

SEGMENTS DEVELOPMENT IN 9M 2018

1	Overview
2	Strategy, products and markets
3	Financials
4	Outlook

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 2018

Fiscal year 2018: preliminary Sales ~ € 200 million (old method: € 213 million) preliminary EBIT-margin ~ 4.2% (old method: € 7.3%) Q4 2018 + Q1 2019: Order entry of more than € 90 million (Q4 2018: € 64.8 million)

INVESTMENT HIGHLIGHTS

Situation:

• Highly innovative markets
• Megatrends support business case
• International customers
• Increased R&D
• Long term growth targets

Outlook:

• Semiconductor market growth will continue
• IOT, digitization, AI, mobility,… are just taking off
• Entering new business fields with established and new products
• Imprint excellence center starts operating in Switzerland
• More volume orders for temporary bonding systems to come
• Position permanent bonding systems in market
• 2019 will be the decisive year for uv-projection scanners

SUSS MICROTEC INVESTOR PRESENTATION

Back up

INVESTOR RELATIONS INFORMATION

Contact Financial Calendar 2019

Franka Schielke

Tel.: +49 89 32007- 161 Fax.: +49 89 32007- 451 Email: franka.schielke@suss.com

SÜSS MicroTec SE

Schleissheimer Strasse 90 85748 Garching Germany www.suss.com

Annual Report 2018	27 Mar
Quarterly Announcement 2019 (Q1)	8 May
Annual General Meeting 2019, Munich	6 Jun
Interim Report 2019	7 Aug
Quarterly Announcement 2019 (Q3)	7 Nov

SHARE PRICE DEVELOPMENT AND MAJOR HOLDERS

Average daily trading volume January 2018 – January 2019: ~ 65.200

SEGMENTS, ORDER ENTRY AND SALES FULL YEAR 2017

** Including Others (2017: order entry € 11.7 million, sales € 11.9 million, EBIT € -0.8 million)

OUR GROWTH DRIVERS

Advanced Packaging RF MEMS

3D Packaging FOWLP

SEMICONDUCTOR EQUIPMENT INDUSTRY

Front end	Mid end	Back end
Major players are:  ASML  Applied Materials  Tokyo Electron  Canon 	Major players are:  SUSS MicroTec  EVG  Veeco  Tok  SMEE  King Semi, …	Major players are:  BE Semiconductor  Cascade Microtec  Disco  …
Processing steps are:  Lithography (creation of IC; nm)  Dry etch  Deposition  Metrology/inspection  …	Processing steps are:  Lithography (flip chip, WLP; µ)  Wafer bonding  Creation of micro- structures, MEMS and RF-MEMS  …	Processing steps are:  Wafer dicing  Die bonding  Assembly / packaging  Metrology / final test  …

SUSS MICROOPTICS – GROWTH DRIVER AUTOMOTIVE LIGHTING

Automotive Lighting

• Light Carpet (External and internal)
• Front Lights (LED Matrix and Laser Light)

Low volume high quality

LVHQ is the traditional Micro-Optics business, which addresses profitable niche markets with low growth but high margins

SMO products and end applications:

Microlens Array 13x13mm²

ROE + DOE 40x50mm²

ASML 193nm wafer stepper

and sorting of micro-optical components. (ISO 9001, IATF 16949, Six Sigma)

wafer-level packaging (WLP), dicing Start-Up service for SUSS customers

MASK ALIGNER – GROWTH DRIVER IMPRINT SOLUTIONS

The flexible imprint portfolio for

Nano – Imprint

Micro – Imprint

Optical Assembly

is covering a wide range of growing applications & markets

(nano)PSS for High Brightness LEDs.

LED

MEMS/NEMS

Nano- and micropatterning need to be extensively adopted in device manufacturing.

Optoelectronic sensors

Optical nano-gratings are key components for the communication market worldwide.

Imprint is essential to fabricate micro-optical devices for wafer-level cameras and image sensors.

Microoptics

Augmented Reality

Imprinted nano-metric DOE de-fractive optical elements are required for the glasses with augmented reality

LITHOGRAPHY PROCESS STEPS: MEMS PRODUCTION