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SÜSS MicroTec SE

Quarterly Report Nov 6, 2014

422_10-q_2014-11-06_c9e11514-47e9-49d8-865e-a41ecd6b9fca.pdf

Quarterly Report

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January 1 – September 30

Key figures

02

in €million Q3/2014 Q3/2013 Change 9M/2014 9M/2013 Change
Business Development
Order entry 29.1 34.3 -15.2% 90.3 105.9 -14.7%
Order backlog as of 09/30 - - - 82.2 97.6 -15.8%
Total sales 25.6 38.9 -34.2% 95.0 94.0 1.1%
Sales margin -11.3% 3.1% -14.4%-points -0.9% -11.2% 10.3%-points
Gross profit 7.9 12.5 -36.8% 30.2 19.3 56.5%
Gross margin 30.9% 32.1% -1.2%-points 31.8% 20.5% 11.3%-points
Cost of sales 17.8 26.4 -32.6% 64.8 74.6 -13.1%
R&D costs 2.5 2.5 0.0% 7.4 7.8 -5.1%
EBITDA -2.1 2.8 - 3.3 -8.3 -
EBITDA margin -8.2% 7.2% -15.4%-points 3.5% -8.8% 12.3%-points
EBIT -3.3 1.8 - 0.1 -13.2 -
EBIT margin -12.9% 4.6% -17.5%-points 0.1% -14.0% 14.1%-points
Earnings after tax -2.9 1.2 - -0.9 -10.5 -
Earnings per share (in €) -0.16 0.06 - -0.05 -0.55 -
Balance sheet and cash flow
Equity - - - 110.5 115.5 -4.3%
Equity ratio - - - 64.2% 64.7% -0.5%-points
Return on equity -2.6% 1.0% -3.6%-points -0.8% -9.1% 8.3%-points
Balance sheet total - - - 172.1 178.1 -3.4%
Net Cash - - - 31.8 21.9 45.2%
Free cash flow1 -1.7 2.5 - -4.1 -9.9 -
Further key figures
Investments 1.0 9.6 -89.6% 2.2 11.4 -80.7%
Investment ratio 3.9% 24.7% -20.8%-points 2.3% 12.1% -9.8%-points
Depreciation 1.1 1.1 0.0% 3.1 5.0 -38.0%
Employees as of 09/30 - - - 658 673 -2.2%

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

Contents 03

  • O4 Foreword by the Management Board
  • O6 Investor Relations
  • O8 Consolidated Interim Management Report
  • 12 Financial Report (IFRS)
  • 22 Selected Explanatory Notes to the Interim Report
  • 25 Service

Foreword of the Management Board

Dear Shareholders,

We look back today on an eventful third quarter. On August 25, we reported that the Supervisory Board of SUSS MicroTec AG had canceled the appointment of Mr. Frank Averdung as Chief Executive Officer of SUSS MicroTec AG as of August 24, 2014 because of differing opinions about the strategic orientation of the Company. Pending the decision about a successor, we – Michael Knopp (CFO) and Walter Braun (COO) – will temporarily assume Mr. Averdung's duties. Dear shareholders, be assured that the Management Board and Supervisory Board of your Company are making a concerted effort to successfully push forward our corporate strategy and we will implement the goals we have set for ourselves as quickly as possible.

In the third quarter, the stock market was characterized by a gloomier economic outlook and a tense geopolitical situation. In addition, we observed the stock price performance of the SUSS MicroTec share in September and October with some concern. Despite the announcement of a profitable fiscal year in 2014, a solid statement of financial position, and sufficient net liquidity, our shareholders appeared to be very concerned about the future development and even continued viability of the Company. These concerns have manifested themselves in sharp price declines. In the interim, the SUSS MicroTec share has fallen below € 4, reaching an annual low of € 3.75. Only after publication of preliminary corporate figures was the Company able to regain trust, enabling the share price to stabilize in a weak market environment. Another important sign for the capital markets were the directors' dealings following publication of the preliminary quarterly figures for 2014. Following notification of the share purchases by both Members of the Management Board, the share price initially continued to stabilize and was even able to rise slightly in a weak market environment.

On the product side, we were able to strengthen our Substrate Bonder division significantly in the past quarter with a new technology. With the ELD300, the Company launched a powerful excimer laser debonder for the stress-free debonding of 200 and 300mm 3D-IC wafers. The laser debonder can be used as a stand-alone semiautomated system or as an integrated process module in SUSS MicroTec's XBC300 Gen2 platform. In the debonding method using an excimer laser, the tape between the glass carrier and a mounted thinned wafer is separated using a 308 nm excimer laser. The ultraviolet light of the pulsed excimer laser is absorbed in the thermoplastic adhesive itself or in an optional absorption layer within a few hundred nanometers. The absorbed energy breaks the chemical bonds without generating thermal stress so that the glass carrier can then be easily lifted off the thinned wafer. The ELD300 module primarily addresses applications in the areas of 2.5D and 3D-IC, but also in the field of 3D MEMS, CMOS image sensors, and power devices.

The First Nine Months in Figures

In the quarterly comparison, order entry amounted to €29.1 million after €34.3 million in the previous year's quarter, representing a decrease of 15.2%. Due to low order entry volume in the months from January to March 2014, sales were € 25.6 million in the months from July to September, or 34,2% below the level in the previous year's quarter (Q3 2013: €38.9 million). EBIT of €-3.3 million in the third quarter was below the EBIT of €1.6 million in the previous year's quarter. EBIT of the third quarter 2014 includes a provision for severance payments of € 1.0 million. The corresponding expense is disclosed under administrative costs.

Sales in the first nine months reached €95.0 million, about 1.1% above the level of €94.0 million in the previous year. Order entry of € 90.3 million was less than € 105.9 million in the previous year. This resulted in order backlog of €82.2 million (previous year: €97.6 million) as of the reporting date of September 30, 2014.

fltr Michael Knopp Chief Financial Officer Walter Braun Chief Operating Officer

Lithography, the Company's largest division, was able to report sales of €60.0 million in the first nine months (previous year: €64.9 million). The Photomask Equipment division recorded sales of €14.6 million (previous year: €15.7 million). The Substrate Bonder division produced a higher contribution to sales of €16.4 million (previous year: €9.8 million).

Earnings before interest and taxes (EBIT) of €0.1 million were above the €-13.2 million of the previous year's quarter. EBIT for the first three quarters of 2013 included an extraordinary effect of €-6.0 million from refocusing the Permanent Bonding product line. The extraordinary effect primarily included value adjustments for demonstration equipment and inventories and capitalized development costs from the years prior to 2008. Earnings in the third quarter of 2014 included a provision for severance payments of € 1.0 million. The corresponding expense is disclosed under administrative costs.

Earnings after taxes (EAT) amounted to €-0.9 million, compared with €-10.5 million in the previous year. The basic earnings per share (EPS) totaled €-0.05 (previous year: €-0.55).

Garching, Germany, November 2014

The Management Board

Michael Knopp Walter Braun

Chief Financial Officer Chief Operating Officer

Net liquidity came in at €31.8 million as of the reporting date (September 30, 2013: €21.9 million). Free cash flow before the inclusion of securities sales/purchases and extraordinary effects from M&A activities came to €-4.1 million in the first nine months of the year (previous year: € -9.9 million; this incorporated €8.9 million, including ancillary purchase costs for the acquisition of property at the Garching site).

Outlook

The management board of SUSS MicroTec reiterates the guidance for the fiscal year 2014 and expects sales to be in the bandwidth of 135 – 145 €million. The EBIT expectation for the full year has improved slightly and we now expect an EBIT in the range of 2 and 4 €million.

For the fourth quarter 2014, the Company expects a robust order intake in the range of €30 to €40 million.

Investor Relations

Geopolitical Situation and Subdued Economic Outlook Unsettle the Stock Exchanges

The ongoing crisis in Ukraine and the increasingly unstable situation in the Near East, particularly through the advance of the IS militia in Syria and Iraq, but also the ongoing tensions between Israel and Palestine in the Gaza Strip, characterize the current geopolitical situation and are leaving their mark on the economic outlook for Europe and on the stock exchanges. The ifo Institute is assuming only slight growth of 0.2 percent for the third and fourth quarters of 2014, respectively, since the economic actors are adversely affected by geopolitical uncertainties. In Germany, the ifo Business Climate Index for industry and trade declined again in September, reaching a low point since April 2013. Expectations for the coming six months have even fallen to the lowest level since December 2012. Accordingly, there is a tangible uncertainty in the stock market on the part of market participants and a concomitant increase in the volatility of share prices.

The SUSS MicroTec Share

Until mid-2014, the SUSS MicroTec share was on a steady upward trajectory, which was impaired only by isolated daily fluctuations. Many shares were able to benefit from the sustained low interest rate policy of the European Central Bank, which made an investment in shares much more attractive. In addition, technology shares, including the SUSS MicroTec share, benefited from improved sentiment in the semiconductor sector. After beginning the stock market year on January 2 at a closing price of € 6.38, the SUSS MicroTec share again moved well above the €8 threshold and ended the first half of the year on June 30, 2014 at a XETRA closing price of €8.75.

In July and early August 2014, the share price essentially moved within a range of €8 – 9. With the publication of mid-year figures on August 7, 2014, SUSS MicroTec slightly raised its outlook for annual earnings in 2014, which was positively received in the market. At the same time, the Company published a forecast for order entry in the second half of 2014, hereby implying a sales level for 2015, which fell short of general market expectations.

In the days following the report, the share price fell sharply and, by the end of the third quarter, recorded a decline of approximately 46 percent to a closing price of €4.76 on September 30, 2014. In addition, as described at the outset, the geopolitical situation became more tense over the course of the third quarter and the stock markets responded with significantly higher volatility and, at times, sharp price declines. The German leading index, DAX, fell below the level of 9,000 points for a time after achieving a record of 10,000 points as recently as July 2014. An improvement of the situation from the geopolitical perspective is hardly to be expected for the fourth quarter. Consequently, stock market movements will probably remain volatile in an unsettled environment.

The average daily trading volume of SUSS MicroTec shares on all German stock exchanges in the first nine months of 2014 amounted to approximately 104,000 shares (9M 2013: average daily trading volume of approximately 97,000 shares).

SUSS MicroTec Share Performance in 2014

Ownership Information as of September 30, 2014

SUSS MicroTec share price on January 2, 2014: €6.38

Consolidated Interim Management Report

Business Development

Financial Report

  • Consolidated Statement of Income (IFRS)
  • Statement of Comprehensive Income
  • Consolidated Balance Sheet (IFRS)
  • Consolidated Statement of Cash Flows (IFRS)
  • Consolidated statement of shareholders' equity (IFRS)
  • Segment Reporting (IFRS)

Selected Explanatory Notes to the Interim Report

Service

Consolidated Interim Management Report

Business Development

Overview

Performance in the third quarter of 2014 was in line with expectations and key figures were within the range of corporate guidance. In the quarterly comparison, order entry amounted to €29.1 million after €34.3 million in the previous year's quarter, representing a decrease of 15.2%. Due to low order entry volume in the months from January to March 2014, sales were €25.6 million in the months from July to September, or 34.2% below the level in the previous year's quarter. EBIT of €-3.3 million in the third quarter was below the EBIT of €1.6 million in the previous year's quarter. Earnings in the third quarter of 2014 included a provision for severance payments of €1.0 million. The corresponding expense is disclosed under administrative costs.

Sales in the first nine months reached €95.0 million, about 1.1% above the level of € 94.0 million in the previous year. Order entry of €90.3 million was less than €105.9 million in the previous year. This resulted in order backlog of €82.2 million as of the reporting date of September 30, 2014.

Earnings before interest and taxes (EBIT) of € 0.1 million were above the €-13.2 million of the previous year's quarter. EBIT for the first three quarters of 2013 included an extraordinary effect of € -6.0 million from refocusing the Permanent Bonding product line. The extraordinary effect primarily included value adjustments for demonstration equipment and inventories and capitalized development costs from the years prior to 2008.

Net liquidity was € 31.8 million as of the reporting date. Free cash flow before the inclusion of securities sales /purchases and extraordinary effects from M&A activities came to €-4.1 million in the first nine months of the year.

Orders Position and Sales by Region

In the first nine months of 2014, the regions of North America and Japan both reported double-digit increases in order entry. The number of orders received increased in North America by 10.2% and in Japan by 11.1%. In the first three quarters, the two high-sales regions of Europe and Rest of Asia reported declines in order entry of 24.1% and 18.4%, respectively.

Regional sales displayed uneven development in the first nine months of 2014. While sales in Europe and Japan rose significantly, North America and Rest of Asia recorded a decline in sales volume related to the reporting date.

Order Entry by Region in €million

Sales by Region in €million

Business Development in the Individual Divisions

Lithography

The Lithography division comprises the development, manufacture, and sale of the Mask Aligner, Developer, and Coater product lines, as well as laser technology and UV projection lithography. These product lines are developed and produced in Germany at the locations in Garching and Sternenfels and in the USA in Corona, California.

The Lithography division recorded a slight decline in order entry in the first nine months of the 2014 fiscal year. Order entry of €65.1 million was 3.6% below its total of €67.5 million in the previous year. Division sales in the first three quarters of 2014 amounted to € 60.0 million after € 64.9 million in the previous year. Division earnings increased from €2.6 million to €3.0 million.

Substrate Bonder

The Substrate Bonder division comprises the development, production, and sale of the Substrate (Wafer) Bonder product line and is located at our site in Sternenfels (Germany).

In the first three quarters of 2014, the Substrate Bonder division recorded a decline in order entry from the previous year's period, reaching an amount of € 10.3 million after €22.4 million in the previous period. In the first nine months, sales rose from € 9.8 million in the same period of the previous year to € 16.4 million. Division earnings improved to €-2.4 million (9M 2013: €-16.0 million). However, earnings in the first half of 2013 included an extraordinary effect of €-6.0 million from refocusing the Permanent Bonding product line.

Substrate Bonder Division Overview in €million

Photomask Equipment

The Photomask Equipment division comprises the development, manufacture, and sale of the HMx, ASx, MaskTrack, and MaskTrack Pro product lines. 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 in Germany.

In the first nine months of 2014, the Photomask Equipment division recorded order entry of € 10.9 million (9M 2013: € 12.3 million) and lower division sales of €14.6 million (9M 2013: € 15.7 million). Division earnings improved to €2.4 million in the first nine months (9M 2013: €0.9 million).

Photomask Equipment Division Overview in €million

Others

The Others division comprises Micro-optics activities at the Hauterive, Switzerland, location, the C4NP business, and costs for central Group functions that generally cannot be attributed to the main divisions.

In the first three quarters of 2014, division sales increased from the previous year to €4.0 million, while order entry rose to €4.0 (previous year: €3.7 million). Division earnings of € -2.8 million were below € -0.8 million in the previous year. Earnings in the third quarter of 2014 included a provision for severance payments of € 1.0 million. The corresponding expense is disclosed under administrative costs. In addition, a one-time amount of € 1.0 million from the reversal of value adjustments for receivables was disclosed under other operating income in the third quarter.

12 Financial Report

of SUSS MicroTec AG

Consolidated Statement of Income (IFRS )

in €thousand 07/01/2014–
09/30/2014
07/01/2013–
09/30/2013
01/01/2014–
09/30/2014
01/01/2013–
09/30/2013
Sales 25,611 38,927 95,038 93,950
Cost of sales -17,751 -26,411 -64,816 -74,622
Gross profit 7,860 12,516 30,222 19,328
Selling costs -3,986 -4,262 -12,385 -12,991
Research and development costs -2,523 -2,465 -7,375 -7,792
Administration costs -4,321 -3,742 -10,856 -11,242
Other operating income 1,384 829 3,267 2,486
Other operating expenses -1,674 -1,122 -2,743 -3,022
Analysis of net income from operations (EBIT)
EBITDA (Earnings before Interest and Taxes,
Depreciation and Amortization)
-2,144 2,783 3,277 -8,272
Depreciation and amortization of tangible assets,
intangible assets and investments in subsidiaries
-1,116 -1,029 -3,147 -4,961
Net income from operations (EBIT ) -3,260 1,754 130 -13,233
Financial income 68 75 253 425
Financial expenses -133 -142 -412 -324
Financial result -65 -67 -159 101
Profit or loss before taxes -3,325 1,687 -29 -13,132
Income taxes 417 -506 -870 2,666
Net profit or loss -2,908 1,181 -899 -10,466
Thereof equity holders of SUSS MicroTec AG -2,908 1,181 -899 -10,466
Thereof non-controlling interests 0 0 0 0
Earnings per share (basic)
Earnings per share in € -0.16 0.06 -0.05 -0.55
Earnings per share (diluted)
Earnings per share in € -0.16 0.06 -0.05 -0.55

Statement of Comprehensive Income (IFRS )

in €thousand 01/01/2014–09/30/2014 01/01/2013–09/30/2013
Net profit or loss -899 -10,466
Items that will not be reclassified to profit and loss
Remeasurements on defined benefit pension plans 0 3
Deferred taxes 0 0
Other comprehensive income after tax for items
that will not be reclassified to profit and loss
0 3
Items that will be reclassified subsequently to profit and loss
Fair value fluctuations of available for sale securities -6 -190
Foreign currency adjustment 2,068 -1,217
Cash flow hedges -145 147
Deferred taxes 49 12
Other comprehensive income after tax for items
that will be reclassified to profit and loss
1,966 -1,248
Total income and expenses recognized in equity 1,966 -1,245
Total income and expenses reported in the reporting period 1,067 -11,711
Thereof equity holders of SUSS MicroTec AG 1,067 -11,711
Thereof non-controlling interests 0 0

14 Consolidated Balance Sheet (IFRS )

assets
in €thousand
09/30/2014 12/31/2013
Non-current assets 46,609 46,995
Intangible assets 4,370 4,517
Goodwill 15,478 15,318
Tangible assets 20,409 20,906
Tax refund claims 47 65
Other assets 559 522
Deferred tax assets 5,746 5,667
Current assets 125,516 132,872
Inventories 68,646 71,133
Trade receivables 11,469 11,073
Other financial assets 211 320
Securities 25,952 2,072
Tax refund claims 593 721
Cash and cash equivalents 16,383 45,059
Other assets 2,262 2,494
Total assets 172,125 179,867
Liabilities
& shareholders
' equity in €thousand
09/30/2014 12/31/2013
Equity 110,499 109,432
Total equity attributable to shareholders of SUSS MicroTec AG 110,499 109,432
Subscribed capital 19,116 19,116
Reserves 93,072 93,971
Accumulated other comprehensive income -1,689 -3,655
Non-current liabilities 13,491 14,613
Pension plans and similar commitments 3,809 3,760
Provisions 36 62
Financial debt 9,350 10,280
Other financial liabilities 263 496
Deferred tax liabilities 33 15
Current liabilities 48,135 55,822
Provisions 4,606 5,939
Tax liabilities 761 651
Financial debt 1,188 1,191
Other financial liabilities 6,182 6,366
Trade payables 4,338 5,563
Other liabilities 31,060 36,112
Total liabilities & shareholders' equity 172,125 179,867

16 Consolidated Statement of Cash Flows (IFRS)

in €thousand 01/01/2014–09/30/2014 01/01/2013–09/30/2013
Net profit or loss (after taxes) -899 -10,466
Amortization of intangible assets 1,133 3,097
Depreciation of tangible assets 2,014 1,864
Profit or loss on disposal of intangible and tangible assets 59 -2
Profit or loss on disposal of available-for-sale securities 0 4
Change of reserves on inventories 1,443 3,531
Change of reserves for bad debts -855 1,342
Non-cash income from the reversal of provisions -506 -9
Other non-cash effective income and expenses 369 334
Change in inventories 2,307 -8,490
Change in trade receivables 1,448 4,554
Change in other assets 304 -1,043
Change in pension provisions 49 -262
Change in trade payables -1,288 -710
Change in down payments received -4,648 14,184
Change in other liabilities and other provisions -2,763 -3,204
Change of tax refund claims and tax liabilities -98 -3,233
Cash flow from operating activities -1,931 1,491
in €thousand 01/01/2014–09/30/2014 01/01/2013–09/30/2013
Disbursements for the purchase of the real estate in Garching
(land and buildings)
0 -8,9391
Disbursements for tangible assets -1,374 -2,041
Disbursements for intangible assets -789 -399
Purchases of current available-for-sale securities -24,914 -11,963
Proceeds from redemption of available-for-sale securities 1,028 7,097
Cash flow from investing activities -26,049 -16,245
Repayment of bank loans -930 -180
Change in current bank liabilities 0 -97
Change in other financial debt -3 -8
Cash flow from financing activities -933 -285
Adjustments to funds caused by exchange-rate fluctuations 237 -335
Change in cash and cash equivalents -28,676 -15,374
Funds at beginning of the year 45,059 25,192
Funds at end of the period 16,383 9,818
Cash flow from operating activities includes
Interest paid during the period 319 99
Interest received during period 285 518
Tax paid during the period 1,083 1,202
Tax refunds during the period 88 0

This number includes the real estate purchase price of 8,600 thousand € as well as ancillary costs of 339 thousand €.

18 Consolidated statement of shareholders' equity (IFRS )

in €thousand Subscribed
capital
Additional
paid-in capital
Earnings
reserve
Retained
earnings
As of 01/01/2013 19,116 97,614 433 11,896
Net income/ loss -10,466
Total income and expenses recognized in equity
Total comprehensive income/ loss -10,466
As of 09/30/2013 19,116 97,614 433 1,430
As of 01/01/2014 19,116 97,614 433 -4,076
Net income/ loss -899
Total income and expenses recognized in equity -899
Total comprehensive income/ loss
As of 09/30/2014 19,116 97,614 433 -4,975
interests
Equity
Non-controlling Total equity
attributable to
shareholders of
SUSS MicroTec AG
Accumulated other comprehensive income
Items that will be reclassified to profit and loss in later periods Items that will not be
reclassified to profit and loss
Deferred taxes Fair value
fluctuations of
available-for
sale securities
Cash flow
hedges
Foreign currency
adjustment
Deferred taxes Remeasure
ments on
defined benefit
pension plans
0
127,192
127,192 73 248 -505 -768 327 -1,242
0
-10,466
-10,466
0
-1,245
-1,245 12 -190 147 -1,217 0 3
0
-11,711
-11,711 12 -190 147 -1,217 0 3
0
115,481
115,481 85 58 -358 -1,985 327 -1,239
0
109,432
109,432 80 30 -342 -2,425 333 -1,331
-899 -899
1,966 1,966 49 -6 -145 2,068 0 0
0
1,067
1,067 49 -6 -145 2,068 0 0
0
110,499
110,499 129 24 -487 -357 333 -1,331

20 Segment Reporting (IFRS ) Segment information by business segment

in €thousand Lithography Substrate Bonder Photomask Equipment Other Consolidation effects Total
9M/2014 9M/2013 9M/2014 9M/2013 9M/2014 9M/2013 9M/2014
9M/2013
9M/2014 9M/2013
9M/2014
External Sales 59,971 64,926 16,404 9,791 14,619 15,655 4,044 3,578
-
-
95,038
Internal Sales 0 0 0 0 0 0 3,554 4,196
-3,554
-4,196
0
Total Sales 59,971 64,926 16,404 9,791 14,619 15,655 7,598 7,774
-3,554
-4,196
95,038
Result per segment (EBIT) 2,992 2,593 -2,448 -15,994 2,388 924 -2,802 -756
-
-
130
Income before taxes 2,947 2,496 -2,451 -15,994 2,384 919 -2,909 -553
-
-
-29
Significant non-cash items -825 467 162 -6,759 594 -1,087 -1,051 -81
-
-
-1,120
Segment assets 73,978 77,624 12,487 32,492 12,684 12,012 21,223
20,515
- -
120,372
thereof Goodwill 15,478 15,352 0 0 0 0 0 0
-
-
15,478
Unallocated assets 51,753
Total assets 172,125
Segment liabilities -29,998 -26,577 -3,859 -17,378 -6,277 -2,536 -1,593
-1,563
- -
-41,727
Unallocated liabilities -19,899
Total liabilities -61,626
Depreciation and amortisation 1,457 1,598 257 2,007 126 249 1,307 1,107
-
-
3,147
thereof scheduled 1,457 1,598 257 851 126 249 1,307 1,107
-
-
3,147
thereof impairment loss 0 0 0 1,156 0 0 0 0
-
-
0
Capital expenditure 713 343 155 66 267 131 1,028
10,839
- -
2,163
Workforce at 09/30 406 410 99 108 100 103 53 52
-
-
658

Segment information by region

in €thousand Sales Capital expenditure Assets
(without Goodwill)
9M/2014 9M/2013 9M/2014 9M/2013 9M/2014 9M/2013
EMEA 30,539 25,910 1,996 11,251 69,233 104,635
North-America 13,282 17,621 80 49 16,573 18,258
Japan 7,201 4,513 61 4 908 1,710
Rest of Asia 44,016 45,906 26 75 2,977 2,162
Consolidation effects 0 0 0 0 15,203 526
Total 95,038 93,950 2,163 11,379 104,894 127,291
Total Consolidation effects Other
9M/2013 9M/2014 9M/2013 9M/2014 9M/2013 9M/2014
93,950 95,038 - - 3,578 4,044
0 0 -4,196 -3,554 4,196 3,554
93,950 95,038 -4,196 -3,554 7,774 7,598
-13,233 130 - - -756 -2,802
-13,132 -29 - - -553 -2,909
-7,460 -1,120 - - -81 -1,051
142,643 120,372 - - 20,515 21,223
15,352 15,478 - - 0 0
35,503 51,753
178,146 172,125
-48,054 -41,727 - - -1,563 -1,593
-14,611 -19,899
-62,665 -61,626
4,961 3,147 - - 1,107 1,307
3,805 3,147 - - 1,107 1,307
1,156 0 - - 0 0
11,379 2,163 - - 10,839 1,028
673 658 - - 52 53

21

22

Selected Explanatory Notes to the Consolidated Interim Report

of SUSS MicroTec AG as of September 30, 2014

1. General Accounting Policies

The consolidated financial statements of SUSS MicroTec AG as of December 31, 2013, 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. The consolidated interim financial statements as of September 30, 2014, which were prepared on the basis of International Accounting Standards (IAS) 34 "Interim Financial Reporting," do not contain all of the necessary information as required for the preparation of the Annual Report and should be read in conjunction with the consolidated financial statements of SUSS MicroTec AG as of December 31, 2013. In the interim financial statements as of September 30, 2014, the same accounting methods were applied as in the consolidated financial statements for the 2013 fiscal year.

All of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in effect as of September 30, 2014 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, 2013.

The Group auditor 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, 2013, there were no changes to the scope of consolidation.

3. 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 papers 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.

In the third quarter of 2014, provisions of €1.0 million were made for severance payments. The corresponding expense is disclosed under administrative costs.

In July 2014, a part of the earn-out liability that resulted from the acquisition of Tamarack /USA in the 2012 fiscal year was paid to the sellers. Due to the current earnings situation and planned sales of SUSS MicroTec Photonic Systems Inc. (previously: Tamarack Scientific Inc.) for the coming months, SUSS MicroTec assumes that no further earn-out payments are due to the sellers. The remaining earn-out provision was reversed as of September 30, 2014. This resulted in other operating income of €0.3 million.

In addition, other operating income included € 1.0 million in income from the reversal of value adjustments for trade receivables. Of the impaired receivables as of December 31, 2013 (€490 thousand as of December 31, 2013 from receivables related to the restructuring of the Permanent Bond Cluster area and € 645 thousand from a trade receivable of SUSS MicroTec Photomask Equipment), by Septmeber 30, 2014 approximately €1.0 million was paid by the customers. In exchange, the lump-sum value adjustment on receivables as of Septmeber 30, 2014 had to be increased by €0.4 million. This addition to the value adjustment was disclosed under other operating expenses.

Financial expense includes €28 thousand ininterest cost from the compounding of noncurrent financial liabilities, which resulted from the acquisitions of Tamarack/USA (100% acquisition) and SUSS MicroOptics /Switzerland (15% acquisition) in the 2012 fiscal year.

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

No changes in presentation have been made; the presentation of the consolidated financial statements of SUSS MicroTec AG as of September 30, 2014, is analogous to the presentation as of December 31, 2013.

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 will deviate from the expected tax rate of approximately 28%. The primary reason for this is that the losses accrued by foreign subsidiaries cannot be capitalized.

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 other equity securities.

7. Dividends Paid

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

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

No 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, 2013.

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 €thousand 9M/2014 9M/2013
Profit / loss which accrue to shareholders of SUSS MicroTec AG -899 -10,466
Weighted average number of outstanding shares 19,115,538 19,115,538
Effect of the (potential) exercise of stock options (number of options) 0 0
Adjusted weighted average number of outstanding shares 19,115,538 19,115,538
Earnings per share in €from continuing operations – basic – -0.05 -0.55
Earnings per share in €from continuing operations – diluted – -0.05 -0.55

RESPONSIBILITY STATEMENT BY THE LEGAL REPRESENTATIVES

"To the best of our knowledge, we assure that in accordance with applicable accounting principles for interim reporting, the consolidated interim financial statements convey an accurate view of the net assets, financial position, and results of operations of the Group and that the Interim Management Report conveys an accurate view of the business performance, including the earnings and condition of the Company, and describes the essential opportunities and risks for the Group's future development in the remainder of the fiscal year."

Garching, Germany, November 5, 2014

The Management Board

Michael Knopp Walter Braun Chief Financial Officer, Chief Operating Officer Spokesperson for the Management Board

Legal Structure

of SUSS MicroTec Group

Production

Sales Other /Non-operating

25

26 Financial Calendar 2015

Annual Report 2014 March 30
Quarterly Report 2015 May 7
Shareholders' Meeting, Haus der Bayerischen Wirtschaft, Munich June 2
Interim Report 2015 August 6
Nine-month Report 2015 November 5

Credits

Published by SUSS MicroTec AG Edited by Finance, Julia Natterer Investor Relations, Franka Schielke Concept and design Whitepark GmbH & Co., Hamburg Photography Allan Richard Tobis, Munich Translation English Business, Hamburg

ContaCt

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

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

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.

SUSSMicroTec AG Schleißheimer Straße 90 85748 Garching, Germany Phone: +49 (0)89-32007-0 E-mail: [email protected]

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