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SÜSS MicroTec SE

Quarterly Report May 5, 2011

422_10-q_2011-05-05_403dc178-5333-4296-b0bb-d632f212c799.pdf

Quarterly Report

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quarterly report 2011

1 January – 31 March

Key figures

in 1 million Q1 / 2011 Q1 / 2010 Change
Continuing operations
Order entry 48.3 32.3 49.5 %
Order backlog as of 03 / 31 130.5 75.4 73.1 %
Total sales 32.0 21.9 46.1 %
Sales margin 7.5 % -4.9 % 12.4 %-points
Gross profit 13.7 6.8 101.5 %
Gross margin 42.8 % 31.1 % 11.7 %-points
Cost of sales 18.3 15.1 21.2 %
R&D costs 2.3 1.5 53.3 %
Continuing operations
EBITDA 3.9 1.6 143.8 %
EBITDA margin 12.2 % 7.4 % 4.8 %-points
EBIT 2.5 -0.1 >250.0 %
EBIT margin 7.8 % -0.2 % 8.0 %-points
Earnings after tax 2.4 -0.7 >250.0 %
Earnings per share (in 1) 0.13 -0.04 >250.0 %
Continuing and discontinued operations
Earnings after tax 2.4 -1.1 >250.0 %
Earnings per share (in 1) 0.13 -0.06 >250.0 %
Balance sheet and cash flow
Equity 107.9 86.6 24.6 %
Equity ratio 54.4 % 60.9 % -6.5%-points
Return on equity 2.2 % -1.2 % 3.4 %-points
Balance sheet total 198.2 142.3 39.3 %
Net cash 35.1 11.0 219.1 %
Free cash flow(1) -2.2 -1.3 -69.2 %
Further key figures
Investments (2) 1.3 0.6 116.7 %
Investment ratio 4.1 % 2.9 % 1.2%-points
Depreciation 1.5 1.7 -11.8 %
Employees as of 03 / 31 (3) 647 579 11.7 %
Employees as of 03 / 31 (4) 647 585 10.6 %

Before consideration of purchase or sale of available-for-sale securities and before consideration

of extraordinary items from purchase or sale of subsidiaries

(2) Before consideration of the HamaTech acquisition and the purchase of the production site in Sternenfels

(3) Continuing operations

(4) Continuing and discontinued operations

CONTENTS

Foreword

Foreword by the Management Board

Highlights

Highlights Q1 2011

Investor Relations

  • Return to the TecDAX
  • The SUSS MicroTec Share

Business Development

  • Overview
  • Orders Position and Sales by Region
  • Lithography Division
  • Substrate Bonder Division
  • Photomask Equipment Division
  • Others Division

Financial Report (IFRS)

  • Consolidated Statement of Income
  • Statement of Comprehensive Income
  • Consolidated Balance Sheet
  • Consolidated Statement of Cash Flows
  • Consolidated Statement of Shareholders' Equity
  • Segment Reporting
  • Selected Explanatory Notes

Service

  • Legal Structure of the Group
  • Financial Calendar 2011
  • Credits
  • Contact

Foreword by the Management Board

Dear Shareholders,

Operationally, the first quarter of the 2011 fiscal year was shaped by the relocation and integration of our Bonder activities at the Sternenfels site in Germany. The relocation has been completed, and our three product lines are now consolidated under one roof at the modern production facility in Sternenfels. As part of the consolidation, research and development activities will also be centralized, as was previously announced. Our aim from this move is to, among other things, generate momentum and synergies across our product lines.

There are many encouraging developments in the capital markets to report in the first quarter. After five years, SUSS MicroTec has returned to the TecDAX, the technology index of the Deutsche Boerse (German Stock Exchange). We in the Management Board are hoping that this will result in increased visibility for the share, particularly in international financial markets. For this reason, we will further intensify our investor relations activities domestically and internationally through targeted road shows and capital markets conferences.

The Quarter in Figures

Order entry of 1 48.3 million in the first three months (Q1 2010: 1 32.3 million; +50%) was once again very high. Sales in the first quarter increased as well by approximately 46% to 1 32.0 million (Q1 2010: 1 21.9 million). The development of sales in the months from January to March was influenced by the relocation and integration activities at the Sternenfels site. The order backlog as of March 31, 2011 rose by 73% compared with a year earlier to 1 130.5 million (March 31, 2010: 1 75.4 million).

Earnings before interest and taxes (EBIT) improved significantly from 1 -0.1 million in Q1 2010 to 1 2.5 million in Q1 2011. Earnings after taxes (EAT) were positive and amounted to 1 2.4 million, compared with 1 -0.7 million in the corresponding quarter of the previous year. Basic earnings per share (EPS) thus came to 1 0.13. Here, too, it was possible to achieve an improvement from the same quarter of the previous year (Q1 2010: 1 -0.04).

Cash flow from operating activities came in at 1 -1.0 million compared to 1 -1.4 million in the corresponding quarter of the previous year. Free cash flow before consideration of securities and extraordinary effects from M&A activities as of the end of the quarter came to 1 -2.2 million, after 1 -1.3 million in the corresponding period of the previous year. As of March 31, 2011, the SUSS MicroTec Group therefore had cash and interest-bearing securities of 1 50.3 million (March 31, 2010: 1 22.8 million). The net cash position of 1 35.1 million was slightly higher than the 1 34.6 million recorded at the end of the 2010 fiscal year (March 31, 2010: 1 11.0 million).

Outlook

We continue to assume that in the current fiscal year the company will achieve sales of over 1 170 million as well as an improved EBIT compared to the previous year and a positive free cash flow (before completed M&A transactions are taken into account). For the first half of the fiscal year 2011, we expect sales of more than 1 80 million.

left: Michael Knopp CFO

right: Frank Averdung CEO

Garching, Germany, May 2011

Frank Averdung Michael Knopp Chief Executive Officer Chief Financial Officer

Highlights Q1 2011

Collaboration in Nano Research with Cornell University

In January 2011, SUSS MicroTec announced a strategic collaboration with the Cornell NanoScale Science & Technology Facility (CNF) at the North American Cornell University. As part of the cooperation, Cornell staff will perform research on already existing as well as new lithography systems from SUSS MicroTec, including innovative Mask Aligner toolkits and the Gamma-series Spray Coater. The facilities at CNF, which host over 700 users every year, will also serve as a laboratory for research applications and customer demonstrations. The lithography equipment to be installed at CNF includes two special toolkits for SUSS MicroTec's MA/BA6 Aligner. The first toolkit, Substrate Conformal Imprinting Lithography (SCIL), is a technology developed by SUSS MicroTec in conjunction with Philips Research. It provides a cost-effective means of manufacturing patterns of 10nm and less with highly exact reproducibility by using a full-size imprint stamp. The second toolkit, MO Exposure Optics, is a unique exposure technology developed and patented by SUSS MicroTec's subsidiary SUSS MicroOptics that significantly extends the performance range for standardized lithography processes. At CNF, the Gamma-series lithography cluster supports all resist-processing applications. It contains modules for developing, baking, and coating.

SUSS MicroTec Receives Supplier Award from Texas Instruments

Texas Instruments conferred its 2010 Supplier Award to SUSS MicroTec in recognition of positive, constructive collaboration. Customer orientation, service, product quality and environmentally conscious conduct were recognized in particular. The award was presented on April 28, 2011 at the TI Philippines Suppliers' Day.

Return to the TecDAX

As of March 21, 2011, the shares of SUSSMicroTec AG are once again traded on the TecDAX, the technology index of the Deutsche Boerse (German Stock Exchange). The TecDAX includes the 30 largest technology companies following the Blue Chips from the DAX index, ranked by market capitalization and trading volume. In the period under review, SUSS MicroTec significantly improved in both categories and thus qualified for elevation to this important index. Membership in the TecDAX provides the SUSS MicroTec share with added attractiveness, and the share should once again receive significantly more interest, particularly among international investors.

Two New Banks Initiate Coverage

On January 14, 2011, Close Brothers Seydler Bank AG, based in Frankfurt am Main, initiated coverage of the SUSS MicroTec share. The investment opinion of the analysts is "Buy" with a price target of 1 13.00. At the beginning of March 2011, Hauck Aufhäuser Institutional Research GmbH became the second bank to initiate coverage in the first quarter of 2011. The investment opinion is likewise "Buy," with a price target of 1 17.50.

Investor Relations

Return to the TecDAX

As of March 21, 2011, the shares of SUSS MicroTec AG are once again listed in the leading technology index of the Deutsche Boerse (German Stock Exchange) – the TecDAX. Following the return to the TecDAX, a significant increase in daily trading volume was observed. In addition, SUSS MicroTec is hoping for heightened recognition in the capital markets, particularly among international investors. The Company is planning a stronger presence at international capital markets conferences and additional road shows in order to support this objective. 150

The SUSS MicroTec Share

The SUSS MicroTec share ended the 2010 fiscal year on December 30, 2010 at a price of 1 9.14 and began the 2011 fiscal year on January 3, 2011 at a price of 1 9.44. The stock price rally, which began as early as fall 2010, proceeded with unabated speed in the first two months of the 2011 fiscal year, driven in part by positive preliminary company figures. At times, the SUSS MicroTec share was able to record price gains of up to 48% as compared with the beginning of the year. The TecDAX was up periodically nearly 8%, while the Prime IG Semiconductor index was able to achieve a 17% increase in February 2011. In March, the positive mood on the national and international exchanges

SUSS MicroTec Share Performance in 2011 (SUSS MicroTec share price on December 30, 2010: 1 9.14 1)

gave way to widespread general uncertainty. The natural disaster in Japan, with its still not completely foreseeable economic and ecological consequences, as well as the beginning of NATO's military engagement in Libya added to investor uncertainty. After at times severe price volatility, the financial markets settled down somewhat at the end of March and appeared to view the 2011 year for the stock market with somewhat greater confidence. Thus, the TecDAX closed the first quarter of the year with a gain of approximately 9%, while the Prime IG Semiconductor recorded an increase of almost 7%. After three volatile months, the SUSS MicroTec share ended the first quarter of 2011 at a price of 1 11.92, representing an increase of slightly more than 30% since the end of the year 2010.

The average daily trading volume of SUSS MicroTec shares on all German stock exchanges once again increased significantly in the first quarter of 2011 to approximately 325,000 shares (Q1 2010: average daily trading volume of about 85,000 shares).

Ownership Information as of March 31, 2011 in %

Share Ownership by Officers and Related Parties as of March 31, 2011

Shares Options
Management
Board
Frank Averdung 42,500 67,500
Michael Knopp 10,000 97,500
Super
visor
y Board
Dr. Stefan Reineck 9,600 40,000
Jan Teichert 0 0
Sebastian Reppegather 0 0

Business Development

Overview

The renewed strong order entry of 1 48.3 million in the first three months continued to indicate a high degree of readiness to invest on the part of our customers (Q1 2010: 1 32.3 million). In the first quarter, it was possible to increase sales by 46% to 1 32.0 million (Q1 2010: 1 21.9 million). The order backlog as of March 31, 2011 thus amounted to 1 130.5 million (March 31, 2010: 1 75.4 million), an increase of 73%.

Earnings before interest and taxes (EBIT) improved significantly from 1 -0.1 million in Q1 2010 to 1 2.5 million in Q1 2011. Earnings after taxes (EAT) amounted to 1 2.4million, compared with 1 -0.7 million in the corresponding quarter of the previous year. The basic earnings per share (EPS) therefore totaled 1 0.13 (Q1 2010: 1 -0.04).

Cash flow from operating activities was 1 -1.0 million in Q1 2011, after 1 -1.4 million in Q1 2010. Free cash flow before the inclusion of securities and extraordinary effects from M&A activities came to 1 -2.2 million as of the end of quarter, after 1 -1.3 million in the corresponding period of the previous year. As of March 31, 2011, the SUSS MicroTec Group therefore had cash and interest-bearing securities of 1 50.3 million (March 31, 2010: 1 22.8 million). The net cash position increased in comparison to the end of the 2010 fiscal year from 1 34.6 million to 1 35.1 million as of the end of the quarter (March 31, 2010: 1 11.0 million).

Orders Position and Sales by Region

The distribution of orders by region offered the following picture: while the regions Europe, Japan, and Rest of Asia recorded significant increases in orders of 10%, 82%, and 105%, respectively, the region North America had to accept a decline of slightly more than 50%.

Regional sales demonstrated significant growth in all regions. While the region North America achieved an increase of more than 50%, Europe was even able to record growth of more than 110%. Japan grew by almost 70%, and the Rest of Asia region increased its sales by more than 20% from the same quarter of the previous year.

Sales by Region in 3 million (Continuing Operations)

Lithography

The Lithography division includes the development, manufacture, and sale of the Mask Aligner, Developer, and Coater product lines. These product lines are manufactured and produced in Germany at the locations in Garching near Munich and since the beginning of 2010 in Sternenfels.

In the first three months of the 2011 fiscal year, the Lithography division experienced another significant increase in order entry, with sales also rising over the previous year. Order entry of 1 37.5 million was 43% higher than its total of 1 26.2 million a year earlier. The reason for the positive trend was sustained investment readiness on the part of customers. Division sales in the first quarter of 2011 amounted to 1 25.2 million after 1 16.0 million in the previous year's quarter. The division earnings improved from 1 1.9 million to 1 6.6 million.

SubstratE Bonder

The Substrate Bonder division comprises the development, production and sale of the Substrate (Wafer) Bonder product line and, following the relocation of production activities, is now housed at the Sternenfels site in Germany. Production at the new site commenced as early as the fourth quarter of the 2010 fiscal year.

In the first quarter of the new fiscal year, the Substrate Bonder division recorded a 21% decline in order entry from the same quarter of the previous year. However, it was possible to increase sales slightly from the corresponding quarter of the previous year. While order entry fell to 1 3.7 million (Q1 2010: 1 4.7 million), sales rose by 49% from 1 2.4 million to 1 3.6 million. Division earnings improved during the quarter to 1 -1.9 million (Q1 2010: 1 -2.1 million).

Substrate Bonder Division Overview in 3 million

Photomask Equipment

The Photomask Equipment division includes the development, manufacture and sale of the HMx, ASx, and MaskTrack product lines of HamaTech APE GmbH & Co. KG, which was acquired on February 15, 2010. The development and production of specialized systems for the cleaning and processing of photomasks for the semiconductor industry are also conducted at the Sternenfels site.

The Photomask Equipment division recorded an order entry of 1 5.4 million in the first quarter of 2011 as well as division sales of 1 1.1 million (Q1 2010: 1 2.2 million). Although the division Photomask Equipment was only consolidated for one month in Q1 2010, the sales figure included the sale of one used tool. In the first quarter 2011 no tool of this division was sold, which explains the low sales figure. Division earnings in the first quarter were 1 -1.3 million (Q1 2010: 1 -0.5 million).

Photomask Equipment Division Overview in 3 million

Others

The Others division comprises the Mask business in Palo Alto, California (USA), that caters to the semiconductor industry and the Micro-optics activities at Neuchâtel, Switzerland as well as the C4NP business and costs for central Group functions that generally cannot be attributed to the main divisions.

While division sales of 1 2.0 million increased from the same quarter of the previous year (+54%), order entry also improved by 42% to 1 1.7 million (Q1 2010: 1 1.2 million). Division earnings of 1 -1.0 million fell short of the 1 0.7 million from the same quarter of the previous year. The previous years figure includes a gain from a negative goodwill of 1 1.4 million, purchased with the Hama Tech acquisition.

Financial Report

Consolidated Statement of Income (IFRS)

in 1 thousand 01/01/2011 – 03/31/2011 01/01/2010 – 03/31/2010
Sales 32,024 21,893
Cost of sales -18,290 -15,079
Gross profit 13,734 6,814
Selling costs -4,693 -3,366
Research and development costs -2,295 -1,499
Administration costs -4,173 -3,679
Other operating income 1,296 2,484
Other operating expenses -1,408 -805
Analysis of net income from operations (EBIT)
EBITDA (Earnings before Interest and Taxes, Depreciation and Amortization) 3,932 1,617
Depreciation and amortization of tangible assets, intangible assets and
investments in subsidiaries
-1,471 -1,668
Net income from operations (EBIT) 2,461 -51
Financial income/expense 735 -272
Proft or loss from continuing operations before taxes 3,196 -323
Income taxes -754 -387
Proft or loss from continuing operations 2,442 -710
Loss from discontinued operations (after taxes) -21 -364
Net profit or loss 2,421 -1,074
Thereof equity holders of SUSS MicroTec 2,355 -1,084
Thereof minority interests 66 10
Earnings per share (basic)
Basic earnings per share from continuing operations in 1 0.13 -0.04
Basic earnings per share from discontinued operations in 1 0.00 -0.02
Earnings per share (diluted)
Diluted earnings per share from continuing operations in 1 0.12 -0.04
Diluted earnings per share from discontinued operations in 1 0.00 -0.02

Statement of Comprehensive Income (IFRS)

in 1 thousand 01/01/2011 – 03/31/2011
01/01/2010 – 03/31/2010
Net profit or loss 2,421 -1,074
Fair value fluctuations of available for sale securities -77 -102
Foreign currency adjustment -949 1,655
Cash flow hedges 119 0
Deferred taxes -12 31
Total income and expenses recognized in equity -919 1,584
Total income and expenses reported in the reporting period 1,502 510
Thereof equity holders of SUSS MicroTec 1,449 500
Thereof minority interests 53 10

Consolidated Balance Sheet (IFRS)

Ass
ets
in 1 thousand
03/31/2011 12/31/2010
-CURREN
T ASSETS
44,134 44,312
Intangible assets 11,203 11,891
Goodwill 13,599 13,599
Tangible assets 9,719 9,356
Noncurrent tax assets 108 108
Other assets 478 485
Deferred tax assets 9,027 8,873
CURREN
T ASSETS
154,067 137,248
Inventories 76,196 64,431
Trade receivables 20,825 15,659
Other financial assets 779 640
Securities 32,365 15,977
Current tax assets 995 620
Cash and cash equivalents 17,922 36,525
Other assets 4,985 3,396
TOTAL
ASSETS
198,201 181,560
Liabilities & shareholders' equity in 1 thousand 03/31/2011 12/31/2010
Equity 107,924 106,404
Total equity attributable to shareholders of SUSS MicroTec AG 107,473 106,006
Subscribed capital 18,721 18,721
Reserves 90,317 87,944
Accumulated other comprehensive income -1,565 -659
Minority interests 451 398
-CURREN
T LIA
BILITIES
20,307 20,775
Pension plans and similar commitments 2,739 2,919
Provisions 484 508
Financial debt 14,104 14,367
Other financial liabilities 241 240
Deferred tax liabilities 2,739 2,741
CURREN
T LIA
BILITIES
69,970 54,381
Provisions 4,106 4,613
Tax liabilities 5,561 5,412
Financial debt 1,134 1,119
Other financial liabilities 6,003 6,458
Trade payables 9,505 9,746
Other liabilities 43,661 27,033
TOTAL
LIA
BILITIES AND
SHAREHOLDER
S' EQUI
TY
198,201 181,560

Consolidated Statement of Cash Flows (IFRS)

in 1 thousand 01/01/2011 – 03/31/2011 01/01/2010 – 03/31/2010
Net profit or loss (after taxes) 2,421 -1,074
Amortization of intangible assets 1,031 944
Depreciation of tangible assets 439 739
Profit or loss on disposal of intangible and tangible assets 15 56
Profit on disposal of Cascade shares -833 0
Change of reserves on inventories -1,083 -668
Change of reserves for bad debts 89 -43
Non-cash stock based compensation 18 47
Non-cash income from the reversal of provisions -9 -74
Other non-cash effective income and expenses 988 -409
Badwill arising from acquisition HamaTech 0 -1,438
Gain from deconsolidation of SMTTS 0 -781
Change in inventories -11,979 -5,754
Change in trade receivables -6,245 2,670
Change in other assets -2,096 -917
Change in pension provisions -180 203
Change in trade payables 321 1,030
Change in other liabilities and other provisions 16,298 3,577
Change in dererred taxes -156 515
Cash flow from operating activities -961 -1,377
Disbursements for tangible assets -928 -523
Disbursements for intangible assets -359 -111
Purchases of current available-for-sale securities -21,026 0
Proceeds from redemption of available-for-sale securities 2,023 1,014
Proceeds from redemption of Cascade shares 3,333 0
Payments for purchase of HamaTech 0 -8,771
Proceeds from disposal of Test business 0 2,708
Cash flow from investing activities -16,957 -5,683
Change in current bank liabilities 15 -744
Change in other financial debt -263 -242
Cash flow from financing activities -248 -986
Adjustments to funds caused by exchange-rate fluctuations -437 417
Change in cash and cash equivalents -18,603 -7,629
Funds at beginning of the year* 36,525 20,799
Funds at end of the period 17,922 13,170
Cash flow from operating activities includes:
Interest paid during the period 140 21
Interest received during period 244 90
Tax paid during the period 1,625 92
Tax refunds during the period 295 2

in 1 thousand 01/01/2011 – 03/31/2011 01/01/2010 – 03/31/2010

* Cash and cash equivalents as of January 01, 2010 also include liquid funds of 1178 thousand attributable to assets held for sale and to discontinued activities.

Consolidated statement of shareholders' equity (IFRS)

in 1 thousand Subscribed capital Additional paid-in capital Earnings reserve
As of 01 January 2010 17,019 93,094 433
Issuance of subscription rights 47
Net loss
Total income and expenses recognized in equity
As of 31 March 2010 17,019 93,141 433
As of 01 January 2011 18,721 98,225 433
Issuance of subscription rights 18
Net profit
Total income and expenses recognized in equity
As of 31 March 2011 18,721 98,243 433

in 1 thousand Subscribed capital Additional paid-in capital Earnings reserve Retained Earnings Accumulated other Comprehensive Income Total equity attributable to shareholders of Suss MicroTec AG Minority interests Equity As of 01 January 2010 17,019 93,094 433 -23,944 -743 85,859 201 86,060 Issuance of subscription rights 47 47 47 Net loss -1,084 -1,084 10 -1,074 Total income and expenses recognized in equity 1,582 1,582 1,582 As of 31 March 2010 17,019 93,141 433 -25,028 839 86,404 211 86,615 As of 01 January 2011 18,721 98,225 433 -10,714 -659 106,006 398 106,404 Issuance of subscription rights 18 18 18 Net profit 2,355 2,355 66 2,421 Total income and expenses recognized in equity -906 -906 -13 -919 As of 31 March 2011 18,721 98,243 433 -8,359 -1,565 107,473 451 107,924

Segment Reporting (IFRS)

Segment information by business segment

Lithography Substrate Bonder Photomask Equipment
in 1 thousand Q1 / 2011 Q1 / 2010 Q1 / 2011 Q1 / 2010 Q1 / 2011 Q1 / 2010
External Sales 25,244 15,998 3,612 2,428 1,133 2,155
Internal Sales 0 0 0 0 0 0
Total Sales 25,244 15,998 3,612 2,428 1,133 2,155
Result per segment (EBIT) 6,603 1,885 -1,883 -2,140 -1,303 -501
Income before taxes 6,577 1,880 -1,884 -2,142 -1,304 -501
Significant non-cash items -154 254 -240 -664 -114 72
Segment assets 66,682 54,272 31,350 31,190 22,518 7,873
thereof Goodwill 13,599 13,599 0 0 0 0
Unallocated assets
Total assets
Segment liabilities -32,409 -14,640 -6,408 -10,773 -17,201 -2,526
Unallocated liabilities
Total liabilities
Depreciation and amortisation 394 474 508 702 158 115
thereof scheduled 394 474 508 702 158 115
thereof impairment loss 0 0 0 0 0 0
Capital expenditure 469 183 397 315 49 1,962
Workforce at March 31 332 320 145 121 108 85

Segment information by region

Sales Capital expenditure Assets
in 1 thousand Q1 / 2011 Q1 / 2010 Q1 / 2011 Q1 / 2010 Q1 / 2011 Q1 / 2010
Europe 7,872 3,858 923 1,305 103,397 70,790
North-America 3,800 2,861 37 548 22,988 31,551
Japan 5,878 3,965 1 11 5,091 2,986
Rest of Asia 14,474 12,013 35 1 1,449 956
Rest of world 0 153 0 0 0 1,867
Consolidation effects 0 0 0 0 -1,383 -2,615
Total 32,024 22,850 996 1,865 131,542 105,535
Total Consolidation effects Discontinued Operations
(Test business)
Continuing operations Other
Q1 / 2010 Q1 / 2011 Q1 / 2010 Q1 / 2011 Q1 / 2010 Q1 / 2011 Q1 / 2010 Q1 / 2011 Q1 / 2010 Q1 / 2011
22,850 32,024 - - 957 0 21,893 32,024 1,312 2,035
0 0 -1,271 -1,565 0 0 1,271 1,565 1,271 1,565
22,850 32,024 -1,271 -1,565 957 0 23,164 33,589 2,583 3,600
-415 2,440 - - -365 -21 -50 2,461 706 -956
-689 3,176 - - -366 -21 -323 3,197 440 -192
-106 -582 - - 252 0 -358 -582 -20 -74
105,535 131,542 - - 0 0 105,535 131,542 12,200 10,992
13,599 13,599 - - 0 0 13,599 13,599 0 0
36,731 66,659
142,266 198,201
-30,421 -57,922 - - 0 0 -30,421 -57,922 -2,482 -1,904
-25,230 -32,355
-55,615 -90,277
1,682 1,471 - - 14 0 1,668 1,471 377 411
1,682 1,471 - - 14 0 1,668 1,471 377 411
0 - - 0 0 0 0 0 0
6,819 1,288 - - 0 0 6,819 1,288 4,359 373
647 - - 6 0 579 647 53 62

Selected Explanatory Notes

to the Interim Report of SUSS MicroTec AG as of March 31, 2011

1. General Accounting Policies

The consolidated financial statements of SUSS MicroTec AG as of December 31, 2010 have been prepared in accordance with the International Financial Reporting Standards (IFRS) applied by the International Accounting Standards Board (IASB) as of the closing date. In the consolidated interim financial statements as of March 31, 2011, which were prepared on the basis of International Accounting Standards (IAS) 34 "Interim Financial Reporting", the same accounting methods were applied as in the consolidated financial statements for the 2010 fiscal year.

All of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in effect as of March 31, 2011 have been applied.

For additional information about specific accounting and measurement methods, please see the consolidated financial statements of SUSS MicroTec AG as of December 31, 2010.

The Group auditor, KPMG AG Wirtschaftsprüfungsgesellschaft, has neither audited nor reviewed the interim financial statements.

2. Changes in the Scope of Consolidation

The consolidated financial statements include the financial statements of SUSS MicroTec AG and of all material companies over which, independent of the level of its participatory investment, the proprietary company can exercise control (i.e. the control principle).

Compared with the consolidated financial statements as of December 31, 2010, there were no changes to the scope of consolidation.

3. Mandatory Disclosures

3.1 New Credit Agreements

SUSS MicroTec Group has various credit facilities with national and international banks and insurance companies. The credit line of 1 6 million provided by a bank consortium led by BayernLB remained in effect until March 31, 2011. With the credit agreement of March 30–31, 2011, new credit agreements were arranged with the same bank consortium. As a result of the new credit agreements, the credit line was increased to a total of 1 8 million. The credit line, whose term runs until March 31, 2012, was issued without covenants. Its primary purpose is to serve as backing for down payment guarantees.

3.2 Strategic Restructuring

The relocation of the Substrate Bonder division from Waterbury, Vermont (USA) to Germany was substantially completed in the first quarter of 2011. In the course of the restructuring, the research and development, production, and product management functions for the Bonder product lines were moved to the site in Sternenfels, Germany. The North American customer service and sales activities as well as the applications center were moved from Waterbury, VT, to Silicon Valley in California.

Restructuring expenses are expected to total approximately 1 5.9 million. As of December 31, 2010, expenses of 1 3.9 million had accrued. In the first quarter of 2011, additional restructuring expenses arose amounting to approximately 1 1.0 million. By the final closure of the Waterbury site, which should be completed by the end of June 2011, additional expenses of approximately 1 1.0 million are expected. As of March 31, 2011, provisions for restructuring came to 1 1.1 million.

3.3 Other Mandatory Disclosures

The securities held as available for sale recognized in the statement of financial position include – as in the previous year – corporate and government bonds as well as commercial paper with a term of up to three months. The securities have been measured at market prices. Any fluctuations in the market price are recognized in accumulated other comprehensive income and therefore do not affect profit and loss.

Disclosed under this item in the statement of financial position as of December 31, 2010 are the 747,530 Cascade shares – with a fair value of 1 2.4 million as of December 31, 2010 – obtained through the sale of the Test Systems division. The Cascade shares were sold in the first quarter of 2011 for a total of approximately 1 3.3 million. The sale resulted in a disposal gain of 1 0.8 million, which was recognized in the financial result.

Other issues influencing assets, liabilities, shareholders' equity, the result for the period, or cash flows and unusual in terms of their nature, magnitude, or frequency, did not arise during the interim reporting period.

4. Change in Presentation

The presentation of the consolidated financial statements as of March 31, 2011 is analogous to the presentation as of December 31, 2010. There were no changes in presentation.

5. Changes in Estimates

To the extent that estimates were made in the interim reports, the methodology underlying the estimates remained fundamentally the same during the fiscal year and in comparison to the previous fiscal year.

In a departure from the approach used at the end of the fiscal year, income tax expense in each interim reporting period is recorded on the basis of the best estimate of the weighted average annual income tax rate which is expected for the entire fiscal year.

SUSS MicroTec AG currently assumes that the annual income tax rate for the fiscal year 2011 will be beween 30% and 35%. In the first quarter of the fiscal year 2011 the income tax rate was well below 30%, the reason for this was the tax free sale of Cascade Microtech Inc. shares.

Otherwise there are no changes requiring disclosure which would have a material impact on the current interim reporting period.

6. Bonds and Equity Securities

During the reporting period, no issuances, repurchases, or repayments occurred involving either bonds or equity securities.

7. Dividends Paid

During the reporting report, no dividend was distributed nor was such a distribution proposed.

8. Significant Events After the End of the Interim Reporting Period

With the agreement of April 1 /April 5, 2011, SUSS MicroTec AG and SUSS MicroTec Lithography GmbH concluded a general credit agreement with DZ BANK AG, which made available a credit line of 1 2 million. The credit line runs until March 31, 2012 and was issued without covenants. The credit line is not secured.

No additional material events occurred after the end of the interim reporting period.

9. Contingent Liabilities and Receivables

There are no contingent receivables. There were no substantial changes in contingent liabilities since the previous reporting date of December 31, 2010.

10. Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period (net of minority interests) by the average number of shares.

In order to calculate diluted earnings per share, the profit or loss for the period attributable to shareholders (net of minority interests) and the weighted average of outstanding shares are adjusted for the impact of all potential dilutive shares.

The following table shows the calculation of the basic and diluted earnings per share:

in 1 thousand Q1 / 2011 Q1 / 2010
Profit / loss from continuing operations 2,442 -710
Less minority interests -66 -10
Profit / loss from continuing operations attributable to shareholders of SUSS MicroTec AG 2,376 -720
Weighted average number of outstanding shares 18,721,038 17,019,126
Effect of the (potential) exercise of stock options (number of options) 590,300 0
Adjusted weighted average number of outstanding shares 19,311,338 17,019,126
Earnings per share in 3 from continuing operations – basic – 0.13 -0.04
Earnings per share in 3 from continuing operations – diluted – 0.12 -0.04

Legal Structure of the group

Sales Other / Non-operating

*formerly operated under the name Image Technology Inc.

Financial Calendar 2011

Quarterly Report 2011 May 5
Close Brothers Seydler Conference, London May 18/ 19
Photonics Conference, Munich May 24
DZ Bank Sustainable Technologies Conference, Zurich June 8
UniCredit European Forum, San Francisco June 8/9
Shareholders' Meeting, Haus der Bayerischen Wirtschaft, Munich June 21
Close Brothers Seydler Conference, Paris June 27 / 28
Interim Report 2011 August 4
UBS Best of Germany Conference, New York September 14/ 15
Nine-month Report 2011 November 8
TMT Conference Morgan Stanley, Barcelona November 16 – 18
German Equity Forum Fall 2011 Novemer 21 – 23

CREDITS AND CONTACT

ContaCt

SUSS MicroTec AG Schleißheimer Straße 90 85748 Garching, Deutschland Fon: +49 (0)89-32007-0 E-Mail: [email protected]

Investor Relations Fon: +49 (0)89-32007-161 E-Mail: [email protected]

Credits

Published by: SUSS MicroTec AG Edited by: Finance, Julia Natterer Investor Relations, Franka Schielke Concept and design: Whitepark GmbH & Co., Hamburg Photography: Michael Lange, SUSS MicroTec AG

Forward-looking statements: These reports contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based oncurrent plans, estimates, and projections,and should be understood as such. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution readers that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement.

SUSS MicroTec AG Schleißheimer Straße 90 85748 Garching, Germany Fon: +49 (0)89-32007-0 E-Mail: [email protected]

www.suss.com

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