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SÜSS MicroTec SE

Quarterly Report May 8, 2014

422_10-q_2014-05-08_785f3d0e-c7c4-41ad-980b-68c831d03ee5.pdf

Quarterly Report

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1 January – 31 March

Key figures

in €million 3M/2014 3M/2013 Change
Business Development
Order entry 25.0 34.9 -28.4%
Order backlog as of 31.03 71.4 91.5 -22.0%
Total sales 39.0 30.1 29.6%
Sales margin 2.8% -8.3% 11.1%-points
Gross profit 10.8 7.3 47.9%
Gross margin 27.7% 24.3% 3.4%-points
Cost of sales 28.2 22.8 23.7%
R&D costs 2.2 2.2 0.0%
EBITDA 2.5 -1.7
EBITDA margin 6.4% -5.6% 12.0%-points
EBIT 1.5 -3.3
EBIT margin 3.8% -11.0% 14.8%-points
Earnings after tax 1.1 -2.5
Earnings per share (in €) 0.06 -0.13
Balance sheet and cash flow
Equity 110.0 124.6 -11.7%
Equity ratio 65.4% 71.2% -5.8%-points
Return on equity 1.0% -2.0% 3.0%-points
Balance sheet total 168.1 174.9 -3.9%
Net Cash 31.5 25.1 25.5%
Free cash flow1 -4.2 -7.2
Further key figures
Investments 2 0.4 1.0 -60.0%
Investment ratio 1.0% 3.3% -2.3%-points
Depreciation 1.0 1.6 -37.5%
Employees as of 31.03 645 693 -6.9%

1 before consideration of purchase or sale of available-for-sale securities and before consideration of extraordinary items from purchase or sale of subsidiaries

2 without consideration of purchase of subsidiaries

con ten t s

  • 04 Foreword
  • 06 Investor Relations
  • 09 Business Performance Q1 2014
  • 12 Financial Report
  • 25 Service

Foreword of the Management Board

Dear Shareholders,

after the 2013 fiscal year, which was characterized by a weak market environment and internal restructuring measures, we look toward the future with cautious optimism. For two consecutive years, the semiconductor equipment industry has been shaped by declining sales. A much more positive picture can be drawn for the current fiscal year. According to experts from the Gartner market research institute, in 2014 the semiconductor equipment market should grow by approximately 15.8 percent from the previous year. SUSS MicroTec would also benefit from a general market recovery and should experience a pick up in order entry beginning in the second half of 2014.

On the product side, we introduced two important tools in the first quarter of 2014, DSC300 Gen 2 and ELP300 Gen2, thus setting the stage for the future growth of SUSS Micro-Tec Photonic Systems (previously Tamarack Scientific).

The DSC300 platform for wafer sizes up to 300mm is based on the proven projection exposure technology of SUSS MicroTec Photonic Systems. This technology combines the advantages of full-field exposure with conventional projection lithography. Equipped with a full-field mask and broadband projection optics, the scanner exposes the wafer in a single continuous exposure step (scan). The second generation of projection scanners has been enhanced with improvements and new features to meet the latest overlay, resolution, and automation requirements of advanced packaging applications like Cu pillar bumping and Wafer Level Chip Scale Packaging (WLSCP). With DSC300 Gen2 and Mask Aligner MA300 Gen2, SUSS MicroTec offers two complementary lithography solutions that enable the customer to optimize price and performance.

With the market launch of the Excimer Laser Stepper ELP300 Gen2, SUSS MicroTec Photonic Systems has completed its second important product launch in the first quarter. The latest generation product provides the means to directly create vias and micropatterns. This process makes it possible to overcome the limitations of traditional photo-dielectrics and conventional lithography steppers and directly address current requirements in the application areas of advanced packaging and 3D integration. The wafer level packaging industry has long sought alternative technologies to manufacture vias that enable the development of higher performance packages. With excimer laser ablation, organic polymers can be used, featuring enhanced mechanical, physical, thermal, and chemical properties. Configured for handling 200mm and 300mm wafers, the ELP300 Gen2 addresses the technological challenges of modern advanced packaging applications and 3D integration.

In the Photomask Equipment division, we delivered the 25th MaskTrackPro since 2010. This is a highly complex tool used in semiconductor manufacturing to clean front end photomasks. No other company in the semiconductor sector has comparable experience or a comparable number of installed mask-cleaning tools. We have been able to establish ourselves as the leading provider of photomask equipment in the area of handling and cleaning photomasks for both 193i lithography and the newly developed extreme ultraviolet lithography.

SUPERVISORY BOARD APPOINTS new MEMBER OF THE MANAGEMENT BOARD – MR. WALTER BRAUN to be come CHIEF OPERATING OFFICER (COO)

The Supervisory Board has appointed Mr. Walter Braun (47) to the Management Board of SUSS MicroTec AG. Mr. Braun has accepted the appointment and will join the Management Board of the Company and assume the position of Chief Operating Officer on July 1, 2014. SUSS MicroTec AG will be managed by three board members in the future. In this newly created position, Mr. Braun will be responsible for all areas that are relevant to production at the various sites as well as supply chain management. He is currently a member of the expanded Management Board of Manz AG, a mechanical engineering company from Reutlingen. Before joining Manz AG, Mr. Braun worked for Homag AG in Schopfloch for more than ten years, including as the sole managing director of Homag Machinery Shanghai. After finishing his studies of product engineering at Furtwangen University in 1995, the graduate engineer (Diplom Ingenieur) started his career at frog design inc. in Sunnyvale, USA.

Frank Averdung Chief Executive Officer of SUSS MicroTec AG

Michael Knopp Chief Financial Officer of SUSS MicroTec AG

THE QUARTER IN FIGURES

Order entry in the first three months of the current fiscal year remained subdued. At €25.0 million, it was at the lower end of the estimated range of €25 – 35 million (previous year: € 34.9 million). The SUSS MicroTec Group generated sales of €39.0 million, well above the level of the previous year's quarter of € 30.1 million. The main reason for this was the shifting of sales from the fourth quarter of 2013 to the first quarter of 2014. The order backlog as of March 31, 2014, thus amounted to € 71.4 million (previous year: €91.5 million).

Earnings before interest and taxes (EBIT) of € 1.5 million were well above the € -3.3 million of the previous year's quarter. Earnings after taxes (EAT) amounted to € 1.1 million, compared with €-2.5 million in the previous year. The basic earnings per share (EPS) amount to € 0.06 (previous year: €-0.13).

Free cash flow for the quarter before consideration of acquisitions and extraordinary effects amounted to €-4.2 million (previous year's quarter: €-7.2 million). As of March 31, 2014, the SUSS MicroTec Group therefore had cash and interest-bearing securities of € 42.7 million. The net cash position of €31.5 million was lower than the €35.7 million as of December 31, 2013 (March 31, 2013: €25.1 million).

OUTLOOK

Based on the order backlog as of the end of the first quarter of 2014 and the expected order entry development for the second quarter of 2014, the Company continues to forecast sales for the current fiscal year in the range between €135 million and €145 million and earnings before interest and taxes (EBIT) between €-5 million and €0 million. For the second quarter of the 2014 fiscal year, order entry of €30-40 million is expected.

Garching, Germany, May 2014

Frank Averdung Michael Knopp Chief Executive Officer Chief Financial Officer

In mid-February 2014, the ifo Institute in Munich announced that the ifo indicator for the world economic climate had continued to rise and that the assessment of the current economic situation was more positive than three months earlier. The economic outlook for the next six months was bright and the world economy was expected to gain momentum in the months ahead. By contrast, the ifo Business Climate index for industry and trade in Germany declined in March to 110.7 points after standing at 111.3 points in the previous month. Previously it had risen four times in a row. Companies have a much less optimistic view of future business development. The crisis in the emerging countries and the events in Crimea and Ukraine are taking their toll, according to the ifo Institute.

STOCK MARKET Q1 2014

After a strong finish at the end of 2013, the stock market continued to perform well at the beginning of 2014. The stock market indexes of the major world exchanges in the USA, Japan, Germany, and Europe closed the year near their all-time or annual highs. The DAX was able to gain a total of 22.8 percent in 2013, closing the year at 9,552.16 points. After a significant price decline at the beginning of 2014, the index rose slightly by 4 points from the end of 2013 to the end of March. The positive picture in Europe was particularly marred by the events in Ukraine and Crimea as well as by the increasingly tense relationship to Russia. A worsening of the situation could lead to a sustained drag on the stock markets.

THE SUSS MicroTec SHARE

After a disappointing stock market year for our shareholders in 2013, the SUSS MicroTec share was able to rise significantly in the first quarter of 2014, performing much better than the TecDAX benchmark index and recording a price gain of approximately ten percent at the end of March. After beginning the stock market year on January 2 at a closing price of €6.38, the share subsequently moved well above the €7 threshold, reaching a closing XETRA price of € 7.81 on February 10, 2014. As a result of the restrained outlook for the entire year and the intensifying situation in Crimea and Ukraine, the share lost value again, moving in a range of €6.80 to €7.20 since the end of February 2014. The SUSS MicroTec share ended the first quarter at a closing price of €6.99.

The two benchmark indexes TecDAX and Prime IG Semiconductor moved in parallel until the end of February 2014. At the beginning of March, the Prime IG Semiconductor Index moved sharply higher, exceeding the rise in the TecDAX in percentage terms. In the first quarter, the TecDAX recorded a gain of seven percent, whereas the Prime IG Semiconductor Index rose by 15 percent in the same period. The SUSS MicroTec share performed better than the TecDAX, closing the quarter with a gain of ten percent.

The average daily trading volume of SUSS MicroTec shares on all German stock exchanges in the first quarter of 2014 amounted to approximately 89 thousand (Q1 2013: average daily trading volume of approximately 115 thousand shares).

SUSS MicroTec SHARE PERFORMANCE IN 2014

OWNERSHIP INFORMATION AS OF MARCH 31, 2014

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

07

Business Development in First Quarter of 2014

  • Overview
  • Orders Position and Sales by Region
  • Business Development in the Individual Divisions

Financial Report

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

Service

  • Legal Structure of SUSS MicroTec Group
  • Financial Calendar 2014
  • Credits & Contakt

Business Development in First Quarter of 2014

Overview

During the first quarter of 2014, which was weak for seasonal and market-related reasons, it was possible to book order entry of € 25.0 million, representing a 28.4 percent decline from the previous year's quarter (previous year: € 34.9 million). Sales of € 39.0 million in the first quarter were well above the corresponding quarter of the previous year (Q1 2013: €30.1 million). The main reason for this was the shifting of sales from the fourth quarter of 2013 to the first quarter of 2014. The order backlog as of March 31, 2014 amounted to €71.4 million (March 31, 2013: €91.5 million).

Earnings before interest and taxes (EBIT) of € 1.5 million were well above the € -3.3 million of the previous year's quarter. Earnings after taxes (EAT) amounted to € 1.1 million, compared with €-2.5 million in the previous year. The basic earnings per share (EPS) totaled €0.06 (previous year: €-0.13).

Free cash flow for the quarter before consideration of acquisitions and extraordinary effects amounted to € -4.2 million (previous year's quarter: € -7.2 million). As of March 31, 2014, the SUSS MicroTec Group therefore had cash and interest-bearing securities of € 42.7 million. The net cash position of €31.5 million was lower than the € 35.7 million as of December 31, 2013 (March 31, 2013: €25.1 million).

Orders Position and Sales by Region

In the first quarter of 2014, the regions of North America and Rest of Asia recorded declines in order entry of 37.9 percent and 51.6 percent, respectively. However, the region of Europe was able to grow significantly, achieving an increase of 35.4 percent from the previous year. The region of Japan was also able to record significant growth in order entry – from a relatively low overall level.

In the first quarter, regional sales displayed a significant increase in all regions, except for Rest of Asia. While the region of North America achieved an increase of 18.2 percent, Europe recorded growth of 91.5 percent and sales in Japan rose by 173.3 percent. Only the region Rest of Asia recorded a moderate decline in sales of 5.9 percent compared to the previous year's quarter. The primary reason for this was sustained market weakness in the area of advanced packaging since the largest customers in this target market for SUSS MicroTec are located in the Rest of Asia region.

Order Entry by Region in €million

Sales by Region in €million

Business Development in the Individual Divisions Lithography

as in the USA in Corona.

The Lithography division comprises the development, manufacture, and sale of the Mask Aligner, Developer, and Coater product lines as well as UV projection lithography devices and laser-based micro-patterning systems. These product lines are developed and produced in Germany at the sites in Garching near Munich and Sternenfels as well

In the first three months of the 2014 fiscal year, the Lithography division recorded a decline in order entry and a slight increase in sales. Order entry of €15.7 million was 27.6 percent below its total of €21.7 million a year earlier. Division sales in the first quarter of 2014 amounted to €19.8 million after €18.6 million in the previous year's quarter. Division earnings improved from €0.4 million to €1.3 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 quarter of the new fiscal year, the Substrate Bonder division recorded a decline in order entry from the previous year's quarter, reaching an amount of €3.1 million after €10.9 million in the previous year's quarter. The reason for the extraordinarily high order entry in the first quarter of 2013 was the placement of an order by an international IDM for a Bond Cluster system for 3D integration. It was possible to increase sales significantly compared to the corresponding quarter of the previous year. While order entry declined by 71.6 percent in the quarterly comparison, sales increased from €3.1 million to €12.0 million. Division earnings as of the end of the quarter improved to €-0.6 million (Q1 2013: €-4.2 million).

Lithography Division Overview in €million

Substrate Bonder Division Overview in €million

11

Photomask Equipment

The Photomask Equipment division comprises the development, manufacture, and sale of the MaskTrack and Mask-Track 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.

The Photomask Equipment division recorded order entry of € 4.6 million in the first quarter of 2014 (Q1 2013: €1.1 million) and slightly lower division sales of € 6.0 million (Q1 2013: €7.5 million). It was possible to improve division earnings and once again display positive earnings of €1.6 million (Q1 2013: €1.2 million).

Photomask Equipment Division Overview in €million

Others

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

Division sales climbed from the previous year's quarter to €1.2 million, while order entry also increased to €1.6 million (Q1 2013: €1.2 million). Division earnings of €0.7 million were at the same level as in the previous year.

Others Division OvervieW in €million

12 Financial Report

of SUSS MicroTec AG

Consolidated Statement of Income (IFRS )

in €thousand 01/01/2014–03/31/2014 01/01/2013–03/31/2013
Sales 39,016 30,095
Cost of sales -28,237 -22,795
Gross profit 10,779 7,300
Selling costs -4,034 -4,449
Research and development costs -2,244 -2,232
Administration costs -3,395 -3,919
Other operating income 950 1,021
Other operating expenses -533 -1,025
Analysis of net income from operations (EBIT)
EBITDA (Earnings before Interest and Taxes, Depreciation and Amortization) 2,536 -1,740
Depreciation and amortization of tangible assets,
intangible assets and investments in subsidiaries
-1,013 -1,564
Net income from operations (EBIT ) 1,523 -3,304
Financial income 94 138
Financial expenses -154 -90
Financial result -60 48
Loss from continuing operations before taxes 1,463 -3,256
Income taxes -339 736
Net profit or loss 1,124 -2,520
Thereof equity holders of SUSS MicroTec 1,124 -2,520
Thereof non-controlling interests 0 0
Earnings per share (basic)
Earnings per share in € 0.06 -0.13
Earnings per share (diluted)
Earnings per share in € 0.06 -0.13

Statement of Comprehensive Income (IFRS )

in €thousand 01/01/2014–03/31/2014 01/01/2013–03/31/2013
Net profit or loss 1,124 -2,520
Items that will not be reclassified to profit and loss
Remeasurements on defined benefit pension plans 0 2
Deferred taxes 0 0
Other comprehensive income after tax for items that will
not be reclassified to profit and loss
0 2
Items that will be reclassified subsequently to profit and loss
Fair value fluctuations of available for sale securities 15 -80
Foreign currency adjustment -495 -91
Cash flow hedges -60 42
Deferred taxes 20 10
Other comprehensive income after tax for items that will be
reclassified to profit and loss
-520 -119
Total income and expenses recognized in equity -520 -117
Total income and expenses reported in the reporting period 604 -2,637
Thereof equity holders of SUSS MicroTec 604 -2,637
Thereof non-controlling interests 0 0

14 Consolidated Balance Sheet (IFRS )

assets
in €thousand
03/31/2014 12/31/2013
Non-current assets 46,404 46,995
Intangible assets 4,206 4,517
Goodwill 15,314 15,318
Tangible assets 20,535 20,906
Tax refund claims 65 65
Other assets 523 522
Deferred tax assets 5,761 5,667
Current assets 121,657 132,872
Inventories 61,819 71,133
Trade receivables 13,077 11,073
Other financial assets 317 320
Securities 31,923 2,072
Tax refund claims 584 721
Cash and cash equivalents 10,771 45,059
Other assets 3,166 2,494
Total assets 168,061 179,867
Liabilities
& shareholders
' equity
in €thousand
03/31/2014 12/31/2013
Equity 110,036 109,432
Total equity attributable to shareholders of SUSS MicroTec AG 110,036 109,432
Subscribed capital 19,116 19,116
Reserves 95,095 93,971
Accumulated other comprehensive income -4,175 -3,655
Non-current liabilities 14,375 14,613
Pension plans and similar commitments 3,805 3,760
Provisions 62 62
Financial debt 10,030 10,280
Other financial liabilities 461 496
Deferred tax liabilities 17 15
Current liabilities 43,650 55,822
Provisions 5,038 5,939
Tax liabilities 838 651
Financial debt 1,188 1,191
Other financial liabilities 5,447 6,366
Trade payables 3,761 5,563
Other liabilities 27,378 36,112
Total liabilities & shareholders' equity 168,061 179,867

16 Consolidated Statement of Cash Flows (IFRS)

in €thousand 01/01/2014–03/31/2014 01/01/2013–03/31/2013
Net profit or loss (after taxes) 1,124 -2,520
Amortization of intangible assets 366 967
Depreciation of tangible assets 647 597
Profit or loss on disposal of intangible and tangible assets 5 0
Change of reserves on inventories 722 603
Change of reserves for bad debts 266 93
Other non-cash effective income and expenses -420 -352
Change in inventories 8,607 -3,700
Change in trade receivables -2,373 3,966
Change in other assets -670 -1,502
Change in pension provisions 45 -74
Change in trade payables -1,804 -858
Change in down payments received -7,931 522
Change in other liabilities and other provisions -2,399 -2,812
Change of tax refund claims and tax liabilities -61 -1,056
Cash flow from operating activities -3,876 -6,126
in €thousand 01/01/2014–03/31/2014 01/01/2013–03/31/2013
Disbursements for tangible assets -266 -749
Disbursements for intangible assets -60 -281
Purchases of current available-for-sale securities -30,865 -8,967
Proceeds from redemption of available-for-sale securities 1,028 0
Cash flow from investing activities -30,163 -9,997
Repayment of bank loans -250 0
Change in current bank liabilities 0 -89
Change in other financial debt -3 -3
Cash flow from financing activities -253 -92
Adjustments to funds caused by exchange-rate fluctuations 4 60
Change in cash and cash equivalents -34,288 -16,155
Funds at beginning of the year 45,059 25,192
Funds at end of the period 10,771 9,037
Cash flow from operating activities includes:
Interest paid during the period 82 47
Interest received during period 92 154
Tax paid during the period 149 527
Tax refunds during the period 133 0

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 -2,520
Total income and expenses recognized in equity
Total comprehensive income/ loss -2,520
As of 03/31/2013 19,116 97,614 433 9,376
As of 01/01/2014 19,116 97,614 433 -4,076
Net income 1,124
Total income and expenses recognized in equity
Total comprehensive income/ loss 1,124
As of 03/31/2014 19,116 97,614 433 -2,952
Non-controlling
interests
Equity
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
-2,520
-2,520
0
-117
-117 10 -80 42 -91 0 2
0
-2,637
-2,637 10 -80 42 -91 0 2
0
124,555
124,555 83 168 -463 -859 327 -1,240
0
109,432
109,432 80 30 -342 -2,425 333 -1,331
1,124 1,124
-520 -520 20 15 -60 -495 0 0
0
604
604 20 15 -60 -495 0 0
0
110,036
110,036 100 45 -402 -2,920 333 -1,331

20 Segment Reporting (IFRS ) Segment information by business segment

in €thousand Lithography Substrate Bonder Photomask Equipment Other Consolidation effects
3M/2014 3M/2013 3M/2014 3M/2013 3M/2014 3M/2013 3M/2014
3M/2013
3M/2014 3M/2013
3M/2014
External Sales 19,832 18,639 11,997 3,053 5,955 7,516 1,232 887
-
-
39,016
Internal Sales 0 0 0 0 0 0 691 866
-691
-866
Total Sales 19,832 18,639 11,997 3,053 5,955 7,516 1,923 1,753
-691
-866
39,016
Result per segment (EBIT) 1,222 422 -608 -4,226 1,564 1,192 -655 -692
-
-
1,523
Income before taxes 1,212 392 -609 -4,226 1,563 1,190 -703 -612
-
-
1,463
Significant non-cash items -316 -22 -555 -661 -48 9 -76 -9
-
-
-995
Segment assets 52,541 78,322 14,981 37,431 11,339 10,492 20,775 11,723
-
-
99,636
thereof Goodwill 15,314 15,447 0 0 0 0 0 0
-
-
15,314
Unallocated assets 68,425
Total assets 168,061
Segment liabilities -25,679 -24,910 -4,249 -6,143 -5,865 -2,852 -1,411 -1,921
-
-
-37,204
Unallocated liabilities -20,821
Total liabilities -58,025
Depreciation and amortisation 477 579 85 476 32 111 419 398
-
-
1,013
thereof scheduled 477 579 85 476 32 111 419 398
-
-
1,013
thereof impairment loss 0 0 0 0 0 0 0 0
-
-
Capital expenditure 207 89 62 22 7 9 104 910
-
-
380
Workforce at 03/31 400 415 92 120 100 105 53 53
-
-
645

Segment information by region

in €thousand Sales Assets
(without Goodwill)
3M/2014 3M/2013 3M/2014 3M/2013 3M/2014 3M/2013
Europe 12,419 6,484 308 985 66,039 93,198
North-America 5,780 4,889 11 10 14,084 22,824
Japan 4,892 1,790 57 4 2,423 4,147
Rest of Asia 15,925 16,932 4 31 2,061 2,260
Rest of world 0 0 0 0 0 92
Consolidation effects 0 0 0 0 -285 0
Total 39,016 30,095 380 1,030 84,322 122,521
3M/2014
3M/2013
3M/2014
3M/2013
3M/2014
3M/2013
1,232
887
-
-
39,016
30,095
691
866
-691
-866
0
0
1,923
1,753
-691
-866
39,016
30,095
-655
-692
-
-
1,523
-3,304
-703
-612
-
-
1,463
-3,256
-76
-9
-
-
-995
-683
20,775
11,723
-
-
99,636
137,968
0
0
-
-
15,314
15,447
68,425
36,927
168,061
174,895
-1,411
-1,921
-
-
-37,204
-35,826
-20,821
-14,515
-58,025
-50,341
419
398
-
-
1,013
1,564
419
398
-
-
1,013
1,564
0
0
-
-
0
0
104
910
-
-
380
1,030
53
53
-
-
645
693
Total Consolidation effects Other

21

Selected Explanatory Notes to the Interim Report

of SUSS MicroTec AG as of March 31, 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 March 31, 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 March 31, 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 March 31, 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.

Financial expense includes €5 thousand in interest cost from the compounding of noncurrent financial liabilities, which resulted from the acquisitions of Tamarack / USA (100% acquisition; now: SUSS MicroTec Photonic Systems Inc.) 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 as of March 31, 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.

24

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 Q1/2014 Q1/2013
Profit / loss wich accrue to shareholders of SUSS MicroTec AG 1,124 -2,520
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 1 from continuing operations – basic – 0.06 -0.13
Earnings per share in 1 from continuing operations – diluted – 0.06 -0.13

Legal Structure 25

of SUSS MicroTec Group

Production

Sales Other / Non-operating

26 Financial Calendar 2014

Shareholders' Meeting, Haus der Bayerischen Wirtschaft, Munich 17. June
Interim Report 2014 7. August
Nine-month Report 2014 6. November

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 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.

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

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