SÜSS MicroTec SE

Quarterly Report • Nov 7, 2018

NINE MONTH REPORT 2018

January 1 – September 30

KEY FIGURES

in € million	Q3 / 2018	Q3 / 2017		Change 9 Months / 2018 9 Months / 2017		Change
Business Development
Order entry	47.0	36.9	27.4%	125.2	131.4	-4.7%
Order backlog as of September 30				119.5	117.7	1.5%
Total sales	41.9	47.1	-11.0%	139.3	113.4	22.8%
Gross profit	13.0	16.7	-22.2%	47.3	41.4	14.3%
Gross margin	31.0%	35.5%	-4.4% points	34.0%	36.5%	-2.6% points
Cost of sales	28.9	30.4	-4.9%	92.0	72.0	27.8%
Research and Development costs	5.1	3.7	37.8%	13.9	11.2	24.1%
EBITDA	0.6	8.0	-92.5%	10.5	11.7	-10.3%
EBITDA margin	1.4%	17.0%	-15.6% points	7.5%	10.3%	-2.8% points
EBIT	-0.7	7.0		6.9	8.6	-19.8%
EBIT margin	-1.7%	14.9%	-16.5% points	5.0%	7.6%	-2.6% points
Earnings after tax	-0.8	4.5		3.4	3.8	-10.5%
Earnings per share, basic (in €)	-0.04	0.24		0.18	0.20	-10.0%
Balance sheet and cash flow
Equity				131.0	124.8	5.0%
Equity ratio				65.1%	62.3%	2.8% points
Return on equity	-0.6%	3.6%	-4.2% points	2.6%	3.0%	-0.4% points
Balance sheet total				201.3	200.4	0.4%
Net cash				10.4	30.9	-66.3%
Free cash flow1	-6.8	6.3		-22.7	0.7
Further key figures
Investments	2.0	1.2	66.7%	5.5	2.9	89.7%
Investment ratio	4.8%	2.5%	2.2% points	3.9%	2.6%	1.4% points
Depreciation	1.3	1.0	30.0%	3.6	3.1	16.1%
Employees as of September 30			--	863	762	13.3%

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

Business Development in the first Nine Months 2018 ����������������������������������������	4
Consolidated Financial Statements �������������������������������������������������������	8
Consolidated Statement of Income (IFRS) ���������������������������������������������������������������� 8
Statement of Comprehensive Income (IFRS) �������������������������������������������������������������� 9
Consolidated Balance Sheet (IFRS) ��������������������������������������������������������������������� 10
Consolidated Statement of Cash Flows (IFRS) ������������������������������������������������������������ 12
Consolidated Statement of Changes in Shareholders' Equity (IFRS) ������������������������������������������� 14
Segment Reporting (IFRS) ���������������������������������������������������������������������������� 16
Legal Structure ����������������������������������������������������������������������	18
Financial Calendar 2019 ��������������������������������������������������������������	19
Imprint/Contact���������������������������������������������������������������������	20

BUSINESS DEVELOPMENT IN THE FIRST NINE MONTHS 2018

Dear Shareholders,

We are operating in very dynamic markets that offer extraordinary opportunities for a company like SUSS MicroTec. According to industry experts from Yole Developpement, the entire semiconductor industry is on the threshold of a period of radical change, to which megatrends like big data, 5G, high-performance computers, the Internet of Things, Industry 4.0, and autonomous driving are to make a significant contribution. Not only do people communicate with each other, but increasingly machines communicate with people or machines and things with each other. Sensors, wireless data transfer, smaller and more powerful end devices, these are all trends that we support with our products and solutions and from which we will benefit over the long term.

Currently many investors are concerned about a possible flattening of the growth curve in the semiconductor segment. The concerns range all the way to the onset of a downturn. However, the aforementioned megatrends and in our case the broad product and application range argue against a long-term downward trend. We can currently compensate for any short-term weaknesses in demand that might arise in an individual end market through diverse overall demand. On the whole, our business will nevertheless remain subject to a certain cyclicality and volatility in the future, bringing short-term fluctuations in order entry and sales. The current uncertainties in our markets are leading to noticeable price pressure and thus to negative influences on gross margins.

The third quarter of 2018 was also shaped by a positive industrial environment as well as well-filled order books. In the months from July to September 2018, new orders of € 47.0 million (previous year: € 36.9 million) were recorded. The Company continues to expect an overall strong second half of the year, and correspondingly good order entry is expected in the months from October to December 2018.

Sales in the third quarter of 2018 reached € 41.9 million, compared to € 47.1 million in the previous year's quarter. EBIT reached € -0.7 million, corresponding to an EBIT margin of -1.7 percent. Earnings in the previous year's quarter include a positive extraordinary effect of € 2.0 million from licensing fees in the area of photomask cleaning, which, according to plan, will not be received in 2018. In the third quarter of 2018 the formation of a provision in connection with the departure of the former Chief Operating Officer and the comparatively weak earnings contributions from SUSS MicroOptics had a negative impact on group earnings. Therefore, this results in earnings per share of € -0.04 for the third quarter of 2018 (previous year: € 0.24).

Sales of € 139.3 million in the first nine months of 2018 were a significant 22.8 percent above the previous year's level (9M 2017: € 113.4 million). Order entry reached € 125.2 million after € 131.4 million in the previous year's period. The order backlog as of September 30, 2018, thus amounted to € 119.5 million (September 30, 2017: € 117.7 million). Earnings before interest and taxes (EBIT) of € 6.9 million were below the € 8.6 million of the previous year. The reasons for this include a lower gross profit margin than in the previous year and the in 2018 missing extraordinary income of € 2 million, as scheduled. In addition, sales and administration costs in 2018 climbed by more than € 2 million. One reason for this was the formation of a provision in connection with the departure of the Chief Operating Officer; another reason was the higher sales costs which increased in relation to sales revenue. This results in an EBIT margin for the first nine months of 2018 of 5.0 percent (previous year: 7.6percent). Earnings after taxes (EAT) decreased slightly from the previous year, totaling € 3.4 million (previous year: € 3.8 million). The basic earnings per share (EPS) amount to € 0.18 (previous year: € 0.20). Free cash flow before consideration of securities transactions at the end of the third quarter of 2018 was € -22.7 million compared to € 0.7 million in the previous year. Net liquidity totaled € 10.4 million at the end of the third quarter of 2018 (previous year: € 30.9 million).

CHANGE IN THE MANAGEMENT BOARD

In the third quarter of 2018 there was a change in the Management Board of the Company. The Chief Operating Officer Walter Braun left the Company with the consent of the Supervisory Board. Chief Executive Officer Franz Richter and Chief Financial Officer Robert Leurs will assume his duties. The Supervisory Board thanks Mr. Braun for his many years of committed work.

In addition, the contract with Chief Executive Officer Dr. Franz Richter was extended ahead of schedule until August 31, 2022.

BUSINESS DEVELOPMENT IN THE FIRST THREE QUARTERS OF 2018

In the first nine months of the fiscal year, order entry in the Asia-Pacific region accounted for well over 50 percent of total order entry, as expected. Overall 66.5 percent of order entry was generated in this region. The amount in the previous year was 67.8 percent. The EMEA region's share was able to grow from 21.8 percent in the previous year to 27.2 percent, whereas North America's share declined from 10.4 percent to 6.3 percent.

Considering order entry by division, considerable strength is evident in the Photomask Equipment division. Due to considerable investments by an Asian customer, it was possible to increase order entry from € 9.2 million in the previous year to € 31.6 million. By contrast, the Bonder and Lithography divisions recorded declines from the strong previous year of 44.2 percent and 20.4 percent, respectively. The Others division remains at a high level with its order entry.

BUSINESS DEVELOPMENT BY DIVISION

LITHOGRAPHY DIVISION OVERVIEW

in € million	9M 2018	9M 2017
Order entry	69.4	87.2
Division sales	90.2	74.8
Division earnings	6.1	1.7
Net assets	65.2	56.1

The Lithography division recorded a significant decline in order entry of 20.4 percent in the first three months of the 2018 fiscal year compared to the strong previous year. Orders of € 69.4 million were booked (previous year: € 87.2 million). It was possible to increase sales due to the good orders position of the previous year from € 74.8 million to € 90.2 million. The division earnings improved accordingly from € 1.7 million to € 6.1 million. The EBIT margin reached 6.7 percent (previous year: 2.2 percent). Losses in the scanner area continued to weigh on earnings in the Lithography division.

BONDER DIVISION OVERVIEW

in € million	9M 2018	9M 2017
Order entry	14.5	26.0
Division sales	24.0	12.9
Division earnings	2.7	1.8
Net assets	19.1	9.8

In the first nine months of the 2018 fiscal year, the Bonder division recorded a decline in order entry from € 26.0 million to € 14.5 million. However, sales in the first quarter of 2018 increased significantly, amounting to € 24.0 million following € 12.9 million in the comparable quarter of the previous year. Sales in the first nine months of 2018 include several XBC300/XBS300 temporary bonding systems for Asian customers. Division earnings improved accordingly from the comparable quarter of the previous year to € 2.7 million after € 1.8 million in the previous year. The EBIT margin reached 11.1 percent (previous year: 13.6 percent).

PHOTOMASK EQUIPMENT DIVISION OVERVIEW

in € million	9M 2018	9M 2017
Order entry	31.6	9.2
Division sales	15.4	16.7
Division earnings	1.3	5.1
Net assets	13.0	9.6

In the first three quarters of 2018, the Photomask Equipment division recorded order entry of € 31.6 million (previous year's 9M: € 9.2 million) and higher division sales of € 15.4 million (previous year's 9M: € 16.7 million). The significant increase in order entry is primarily due to the placement of an order by a major Asian semiconductor manufacturer. Here we continue to expect a good orders position in the coming quarters. Division earnings in the first three quarters of 2018 declined to € 1.3 million (previous year's 9M: € 5.1 million ). EBIT in the previous year includes licensing income of € 2.0 million, which was not realized in 2018.

OTHERS DIVISION OVERVIEW

in € million	9M 2018	9M 2017
Order entry	9.7	9.0
Division sales	9.7	9.0
Division earnings	-3.1	0.04
Net assets	26.2	21.9

Order entry increased slightly compared to the previous year, amounting to € 9.7 million after € 9.0 million in the previous year. Sales increased to € 9.7 million (previous year's 9M: € 9.0 million). Division earnings of € -3.1 million were significantly below the level of the previous year of € 43 thousand. In the third quarter of 2018, the formation of a provision in connection with the departure of the former Chief Operating Officer led to an extraordinary charge of approximately € 600 thousand. In addition, a temporary weakness in the core telecommunications business at our site in Neuchâtel (Switzerland) and the preparation of an additional manufacture for alternative applications brought a decrease in margins.

THE SUSS MICROTEC SHARE

After a strong year for stocks in 2017, the performance of the SUSS MicroTec share was subdued in the first three quarters of 2018. In this our share is following the trend of many securities in the semiconductor sector, which had to endure significant price declines during the summer months. The main reason for this is a slight dimming of the growth outlook for the sector in 2019, which has led to very cautious investor behavior on the part of many capital markets participants or even disinvestments in semiconductor securities. After an XETRA lowest level in the second quarter of € 11.60, the share recovered at the end of the third quarter and had a closing price of € 14.00 on September 28, 2018. While the TecDAX and Semi IQ indexes recorded a loss of approximately 16 percent and a gain of about 10 percent, respectively, in the first three quarters, the SUSS MicroTec share fell by about 17 percent in comparison to the high price at the beginning of 2018. The average daily trading volume of SUSS MicroTec shares on the German XETRA and Frankfurt stock exchanges so far in 2018 amounted to approximately 71 thousand (9M previous year: average daily trading volume of approximately 121 thousand shares).

SUSS MICROTEC SHARE PERFORMANCE IN THE FIRST NINE MONTHS 2018

XETRA closing price of the SUSS MicroTec share on January 2, 2018: € 16.78

SUSS MicroTec SE, indexed

TecDAX, indexed

Prime IG Semiconductor, indexed

From left to right: Robert Leurs, Chief Financial Officer Dr. Franz Richter, Chief Executive Officer

OUTLOOK

Sales in the 2018 financial year are expected to be within the previously announced range of € 195 million to € 205 million. The Company forecasts an earnings margin (EBIT margin) on the adjusted level of the previous year of 7.1% (without the special effect).

For the following six months (Q4 2018 and Q1 2019), we expect an order entry of more than EUR 90 million.

Garching, Germany, November 2018

Dr. Franz Richter Chief Executive Officer

Robert Leurs Chief Financial Officer

CONSOLIDATED STATEMENT OF INCOME (IFRS)

in € thousand	07/01/2018– 09/30/2018	07/01/2017– 09/30/2017	01/01/2018– 09/30/2018	01/01/2017– 09/30/2017
Sales	41,893	47,135	139,312	113,448
Cost of sales	-28,938	-30,366	-92,052	-71,991
Gross profit	12,955	16,769	47,260	41,457
Selling costs	-4,659	-5,209	-14,683	-13,862
Research and development costs	-5,082	-3,757	-13,889	-11,231
Administration costs	-4,318	-3,092	-11,809	-9,973
Other operating income	428	3,058	1,767	5,272
Other operating expenses	-37	-761	-1,771	-3,104
Analysis of net income from operations (EBIT)
EBITDA (Earnings before interest and taxes, depreciation and amortization)	606	7,977	10,492	11,651
Depreciation and amortization of tangible assets, intangible assets and financial assets	-1,319	-969	-3,617	-3,092
Net income from operations (EBIT)	-713	7,008	6,875	8,559
Financial income	11	11	28	39
Financial expenses	-41	-50	-125	-160
Financial result	-30	-39	-97	-121
Profit / loss before taxes	-743	6,969	6,778	8,438
Income taxes	-55	-2,435	-3,426	-4,595
Net profit / loss	-798	4,534	3,352	3,843
thereof equity holders of SUSS MicroTec SE	-798	4,534	3,352	3,843
Earnings per share (basic)
Earnings per share in €	-0.04	0.24	0.18	0.20
Earnings per share (diluted)
Earnings per share in €	-0.04	0.24	0.18	0.20

STATEMENT OF COMPREHENSIVE INCOME (IFRS)

in € thousand	01/01/2018 – 09/30/2018	01/01/2017 – 09/30/2017
Net profit	3,352	3,843
Items that will not be reclassified to profit and loss
Remeasurements on defined benefit pension plans	0	0
Deferred taxes	0	0
Other comprehensive income after tax for items that will not be reclassified to profit and loss	0	0
Items that will be reclassified to profit and loss in later periods
Foreign currency adjustment	668	-3,371
Cash flow hedges	0	0
Deferred taxes	0	0
Other comprehensive income after tax for items that will be reclassified to profit and loss	668	-3,371
Total income and expenses recognized in equity	668	-3,371
Total income and expenses reported in the reporting period	4,020	472
thereof equity holders of SUSS MicroTec SE	4,020	472
thereof non-controlling interests	0	0

CONSOLIDATED BALANCE SHEET (IFRS)

in € thousand	09/30/2018	12/31/2017
Assets
Noncurrent assets	44,653	42,701
Intangible assets	2,125	2,609
Goodwill	15,642	15,573
Tangible assets	25,858	23,302
Other assets	525	503
Deferred tax assets	503	714
Current assets	156,619	159,249
Inventories	121,660	97,945
Trade receivables	17,140	19,633
Other financial assets	239	483
Securities	0	0
Current tax assets	536	83
Cash and cash equivalents	13,146	36,464
Other assets	3,898	4,641
Total assets	201,272	201,950

Liabilities & Shareholders' Equity Equity	131,007 131,007	126,987
Total equity attributable to shareholders of SUSS MicroTec SE		126,987
Subscribed capital	19,116	19,116
Reserves	113,638	110,286
Accumulated other comprehensive income	-1,747	-2,415
Noncurrent liabilities	6,649	7,246
Pension plans and similar commitments	4,899	4,746
Financial debt	1,750	2,500
Current liabilities	63,616	67,717
Provisions	4,040	2,659
Tax liabilities	315	3,582
Financial debt	1,005	1,005
Other financial liabilities	7,172	6,748
Trade payables	6,642	7,289
Customer deposits	39,897	40,312
Other liabilities	4,545	6,122
Total liabilities and shareholders' equity	201,272	201,950

CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS)

in € thousand	01/01/2018 – 09/30/2018	01/01/2017 – 09/30/2017
Net profit (after taxes)	3,352	3,843
Amortization of intangible assets	923	938
Depreciation of tangible assets	2,695	2,154
Profit or loss on disposal of intangible and tangible assets	0	26
Change of reserves on inventories	1,785	120
Change of reserves for bad debts	-134	690
Non-cash income from the reversal of provisions	0	-202
Other non-cash effective income and expenses	-1,005	816
Change in inventories	-24,746	-28,102
Change in trade receivables	2,775	581
Change in other assets	965	-650
Change in pension provisions	64	0
Change in trade payables	-701	2,368
Change in down payments received	-433	23,113
Change in other liabilities and other provisions	741	-2,320
Change of tax assets and tax liabilities	-3,509	160
Cash flow from operating activities	-17,228	3,535

Consolidated Statement of Cash Flows (IFRS) CONSOLIDATED FINANCIAL STATEMENTS ––––––––––––– 13

in € thousand	01/01/2018 – 09/30/2018	01/01/2017 – 09/30/2017
Disbursements for tangible assets	-5,094	-2,519
Disbursements for intangible assets	-411	-357
Purchases of current available-for-sale securities	0	-9,991
Cash flow from investing activities	-5,505	-12,867
Repayment of bank loans	-750	-500
Change in current bank liabilities	0	4
Cash flow from financing activities	-750	-496
Adjustments to funds caused by exchange rate fluctuations	165	-915
Change in cash and cash equivalents	-23,318	-10,743
Funds at the beginning of the year	36,464	35,621
Funds at the end of the period	13,146	24,878
Cash flow from operating activities includes:
Interest paid during the period	89	81
Interest received during the period	26	35
Tax paid during the period	6,122	4,493
Tax refunds during the period	184	0

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (IFRS)

in € thousand	Subscribed capital	Additional paid-in capital	Earnings reserve	Retained earnings
As of January 1, 2017	19,116	71,547	433	31,831
Net income /loss				3,843
Total income and expenses recognized in equity
Total comprehensive income /loss				3,843
Reclassification into earnings reserve			-231
As of September 30, 2017	19,116	71,547	202	35,674
As of January 1, 2018	19,116	71,547	202	38,537
Net income /loss				3,352
Total income and expenses recognized in equity
Total comprehensive income /loss				3,352
As of September 30, 2018	19,116	71,547	202	41,889

Consolidated Statement of Changes in Shareholders' Equity (IFRS) CONSOLIDATED FINANCIAL STATEMENTS ––––––––––––– 15

Equity	Total equity attributable to shareholders of SUSS MicroTec SE			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	Cash flow hedges	Foreign currency adjustment	Deferred taxes	Remeasure ments on defined benefit pension plans
124,353	124,353	0	0	3,673	766	-3,013
3,843	3,843
-3,371	-3,371	0	0	-3,371	0	0
472	472	0	0	-3,371	0	0
					-91	322
124,825	124,825	0	0	302	675	-2,691
126,987	126,987	0	0	-167	736	-2,984
3,352	3,352
668	668	0	0	668	0	0
4,020	4,020	0	0	668	0	0
131,007	131,007	0	0	501	736	-2,984

SEGMENT REPORTING (IFRS)

The Segment Reporting is part of the notes to the consolidated financial statements.

SEGMENT INFORMATION BY BUSINESS SEGMENT

	Lithography		Bonder
in € thousand	9 Months / 2018	9 Months / 2017	9 Months / 2018	9 Months / 2017
External Sales	90,234	74,822	24,040	12,930
Internal Sales	0	0	0	0
Total sales	90,234	74,822	24,040	12,930
Result per segment (EBIT)	6,067	1,678	2,667	1,763
Income before taxes	6,040	1,648	2,663	1,759
Significant non-cash items	-861	-838	-358	608
Segment assets	99,076	97,739	29,194	20,994
thereof goodwill	15,642	15,602	0	0
Unallocated assets
Total assets
Segment liabilities	-33,830	-41,607	-10,068	-11,218
Unallocated liabilities
Total liabilities
Depreciation and amortization	1,624	1,296	320	194
thereof scheduled	1,624	1,296	320	194
thereof impairment loss	0	0	0	0
Capital expenditure	2,059	699	394	97
Workforce on September 30	543	477	98	91

SEGMENT INFORMATION BY REGION

	Sales		Capital expenditure		Assets (without goodwill)
in € thousand	9 Months / 2018	9 Months / 2017	9 Months / 2018	9 Months / 2017	9 Months / 2018	9 Months / 2017
EMEA	32,931	22,620	5,006	2,714	145,511	124,526
North America	17,615	19,677	450	134	16,174	17,196
Asia and Pacific	88,766	71,151	49	28	4,704	3,706
Consolidation effects	0	0	0	0	393	-724
Total	139,312	113,448	5,505	2,876	166,782	144,704

	Total	Consolidation effects		Others		Photomask Equipment
9 Months / 2017	9 Months / 2018	9 Months / 2017	9 Months / 2018	9 Months / 2017	9 Months / 2018	9 Months / 2017	9 Months / 2018
113,448	139,312	–	–	9,005	9,654	16,691	15,384
	0	-4,478	-6,239	4,478	6,239	0	0
113,448	139,312	-4,478	-6,239	13,483	15,893	16,691	15,384
8,559	6,875	–	–	43	-3,145	5,075	1,286
8,438	6,778	–	–	-42	-3,211	5,073	1,286
-437	-2,192	–	–	156	-695	-363	-278
160,306	182,424	–	–	23,960	28,863	17,613	25,291
15,602	15,642	–	–	0	0	0	0
40,135	18,848
200,441	201,272
-62,932	-58,818	–	–	-2,069	-2,648	-8,038	-12,272
-12,684	-11,447
-75,616	-70,265
3,092	3,617	–	–	1,507	1,536	95	137
3,092	3,617	–	–	1,507	1,536	95	137
	0	–	–	0	0	0	0
2,876	5,505	–	–	2,026	2,917	54	135
762	863	–	–	82	98	112	124

LEGAL STRUCTURE

FINANCIAL CALENDAR 2019

March 27–––––	Publication of Annual Financial Statements 2018
May 8––––––––	Quarterly Report 2019

June 6–––––––– Annual General Meeting 2019, Haus der Bayerischen Wirtschaft, Munich

August 7–––––– Interim Report 2019

November 7––– Nine-month Report 2019

IMPRINT

CONTACT

Published by –––––––––––––––––	SUSS MicroTec SE
Edited –––––––––––––––––––––––	Finance: Julia Natterer
	Investor Relations: Franka Schielke
Concept and design –––––––––––	wagneralliance Kommunikation GmbH, Offenbach
Translation ––––––––––––––––––	EnglishBusiness AG, Hamburg
Photos ––––––––––––––––––––––	Marek Vogel, Munich
	Creativ Fotostudio Allan Richard Tobis, Munich

SUSS MicroTec SE

Schleißheimer Straße 90 85748 Garching, Germany Phone: +49 89 32007-0 E-Mail: info@suss.com

Investor Relations Phone: +49 89 32007-161 E-Mail: ir@suss.com www.suss.com

Forward-looking statements: These interim 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 on current 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 SE

Schleißheimer Straße 90 85748 Garching, Germany Phone: +49 89 32007-0 E-Mail: info@suss.com