SUSS MICROTEC INVESTOR PRESENTATION September 2014
DISCLAIMER This presentation contains forward-looking statements relating to the business, financial performance and earnings of SUSS MicroTec AG and its subsidiaries and associates. Forward-looking statements are based on current plans, estimates, projections and expectations and are therefore subject to risks and uncertainties, most of which are difficult to estimate and which in general are beyond the control of SUSS MicroTec AG. Consequently, actual developments as well as actual earnings and performance may differ materially from those which explicitly or implicitly assumed in the forwardlooking statements. SUSS MicroTec AG does not intend or accept any obligation to publish updates of these forward-looking statements. 2
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Financials V. Outlook 3
SUSS MICROTEC AT A GLANCE A global leader in manufacturing equipment for the semiconductor mid- and backend market Our equipment and process solutions create the micro structures that build and connect micro electronic devices Focused on attractive growth markets: Semiconductors, MEMS and LED Leading market position in target markets SUSS MicroTec is listed in the Prime Standard of Deutsche Boerse 4
SUSS MICROTEC IN THE VALUE CHAIN ICs & Components End Products End User Research Institutes Key player in providing state-of-the-art semiconductor manufacturing equipment Development of highly innovative process solutions with industry and R&D partners Key components for electronic devices like cell phones, PCs and tablet computers are produced on SUSS MicroTec s equipment 5
THE SEMICONDUCTOR MARKET Mask Shops Captive: Samsung, TSMC, Hynix Merchant: Toppan, DNP, Photronics Sigma Meltec EVG Tokyo Electron Photomask Cleaning Substrate Bonder SUSS MicroTec Equipment Technology FAB Capital Customers Supplier Expenditure DNK Tokyo Electron Canon Ushio Ultratech Tazmo EVG Laser Technology Exposure Coat/Develop Frontend Mid/Backend IDM (Integrated Device Manufacturers) Intel, IBM, Samsung, Infineon, Texas Instruments Foundries TSMC, Global Foundries OSAT (Outsourced Assembly and Test Fabs) ASE, Amkor, SPIL, STATS ChipPAC, nepes Academia Research Institutes IMEC, ITRI, Fraunhofer 6
SUSS MICROTEC A GLOBAL PLAYER NORTH AMERICA EUROPE ASIA Yokohama, JP Hwaseong City, KR Headquarters Production Sales Sunnyvale, US Corona, US Garching, DE Sternenfels, DE Hâuterive, CH Pierre-Bénite, FR Coventry, UK Singapore, SG Shanghai, CN Hsinchu, TW 7
MAIN PRODUCTION SITES Germany USA Garching* SUSS MicroTec HQ Development/production: Mask Aligner Bond Aligner Core competencies: Exposure (proximity exposure) Alignment Sternenfels* Development/production : Bonder Coater and Developer Photomask Equipment Core competencies: Wet processing Wafer bonding Corona Development/production: Stepper/Scanner Laser Processing Core competencies: Exposure (UV projection) Laser Ablation *Production site is owned by SUSS MicroTec 8
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Financials V. Outlook 9
SEGMENTS, PRODUCTS AND MARKETS Frontend Mid- and Backend Photomask Equipment Lithography Substrate Bonder Photomask Cleaning Equipment Laser Processing Equipment Exposure Systems Coaters and Developers Wafer Bonding Equipment 193i Cleaning Equipment EUV Cleaning Equipment Projection Lithography Proximity Exposure (+Nano Imprint) Temporary Wafer Bonding Permanent Wafer Bonding Mask Manufacturing Advanced Packaging H1 Order Entry: 9.1 million H1 Sales: 7.8 million H1 EBIT: 1.6 million 3D Integration MEMS LED H1 Order Entry: 42.8 million H1 Sales: 43.8 million H1 EBIT: 4.2 million H1 Order Entry: 6.5 million H1 Sales: 15.1 million H1 EBIT: -1.2 million 10
KEY MARKETS - OVERVIEW Semiconductors Sensors Lighting Mask Making Advanced Packaging 3D Integration MEMS LED Photomask Cleaning Micro-Bumping 3D (TSV) Stacking Computing, Automotive... General Lighting, HB and UHB 11
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Financials V. Outlook 12
GROWTH DRIVER SMARTPHONES AND TABLETS Source: Yole Developpement 13
MICROCHIPS, MEMS UND LED: BUILDING BLOCKS FOR TECHNOLOGICAL PRODUCT ADVANCEMENT Digital Lifestyle + The Digital Lifestyle is characterized by permanent internet connectivity and convergence of media + Mobile devices like smartphones and tablet PCs provide this capability at affordable cost + New device generations offer higher functionality E-Mobility + Alternative transportation / mobility solutions are getting more traction with attractive price / performance ratios + EVs, Hybrid-Cars, Segways, E-Bikes, but also trains drive the need for power devices and high performance Ics at the same time Energy Efficiency + Increased environmental awareness and rising energy cost drive the demand for energy efficient solutions i.e. solid state lighting + Energy efficiency in industrial production + Smart energy management in household applications 14
SCALING TECHNOLOGIES FROM 2D TO 3D 2D Packaging 2.5D Packaging 3D Integration (TSV) - Increased performance and complexity of ICs by shrinking transistor geometry according to Moore s Law - New technologies like EUV and multiple pattering allow further scaling - Technical challenges and limitations make it increasingly more difficult and expensive to reduce the feature size - Combining of several (and heterogeneous) semiconductor components on an interposer addresses limitations of traditional shrinking - Increased packaging density - Reduced footprint - Complementary technology to Moore s Law - The extension beyond the conventional shrink roadmap is called "More than Moore - Packaging becomes key enabler for scaling and some manufacturing value is shifting from silicon to the package - Performance and complexity increase combined with smaller footprint - Reduced energy consumption SUSS MicroTec s equipment and process solutions enable 2D shrinking ("Moore's Law") and 3D stacking ("More than Moore") 15
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Financials V. Outlook 16
ORDER ENTRY AND SALES BY SEGMENT AND REGION Order Entry by Segment Order Entry by Region 11% 4% 23% 15% H1 2014: 61.2 million 56% H1 2014: 61.2 million 70% 6% 15% Sales by Segment Sales by Region 34% 22% H1 2014: 69.4 million 44% H1 2014: 69.4 million 32% 11% 63% 10% 14% 17
LONG TERM BUSINESS DEVELOPMENT P&L KEY FIGURES Order Entry in million Sales in million Order backlog in million 200 150 100 50 200 150 100 50 120 100 80 60 40 20 0 2009 2010 2011 2012 2013 0 2009 2010 2011 2012 2013 0 2009 2010 2011 2012 2013 Free Cash Flow in million Net cash in million EBIT in million 15 50 25 10,3% 10,6% 7,1% 10 40 30 15 5 2,7% 5 20-5 0 10-15 -5 2009 2010 2011 2012 2013 0 2009 2010 2011 2012 2013-25 -14,4% 2009 2010 2011 2012 2013 *) * Including a -13.2 milion one-off effect from restructuring of the product line permanant bonding (-0,69 per share) 18
KEY FINANCIALS in million Q2 2014 Q2 2013 in % H1 2014 H1 2013 Order Intake 36.2 36.7-1.4% 61.2 71.6 Order Backlog 6/30 -- -- -- 77.7 102.5 Revenue 30.4 24.9 +22.1% 69.4 55.0 EBIT 1.9-11.7 -- 3.4-15.0 EBIT in % of Sales 6.3% -47,0% -- 4.9% -27.3% EBIT (adjusted) -- -5.7 -- -- -9.0 EBIT (adjusted) in % of Sales -- -22.8% -- -- -16.4% Earnings after tax 0.9-9.1 -- 2.0-11.6 EPS in 0.05-0.48 -- 0.11-0.61 Free Cash Flow* 1.8-5.2 -- -2.4-12.4 Net Cash** -- -- -- 33.3 19.5 Employees 6/30 -- -- -- 649 680 * incl. stock of interest-bearing securities ** before consideration of purchased interest-bearing securities 19
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Financials V. Outlook 20
OUTLOOK PER PRODUCT LINE Lithography Mask Aligner and Coaters /Developers Current and expected sales level around 80 90 million per year UV Projection Scanners, and Laser Ablation Steppers: Several customer installations; the products are in an early market introduction phase Current annual sales at around 10 million Photomask Equipment Stable sales level at around 20 million per year Permanent Bonding After discontinuation of cluster systems reduced sales level vs. previous years Substrate Bonders Temporary Bonding 3D integration is a significant growth opportunity with volume ramp difficult to predict Expected sales level of the division: 15 20 million 21
OUTLOOK Improved Guidance FY 2014: Sales: 135 to 145 million EBIT: slightly positive Outlook Q3 2014: Order Intake: 25-35 million Q4 2014: Order Intake: 30-40 million 22
SÜSS MicroTec AG Schleissheimer Str. 90 85748 Garching www.suss.com 23
ORGANIZATIONAL STRUCTURE SUSS GROUP Management Board Michael Knopp, CFO (Speaker) Walter Braun, COO Finance, Tax, Legal, HR, IT, Sales, Service & Marketing, Strategy, Investor Relations Operations, Quality, Supply Chain Management, R & D, Patents, Environmental Protection, Work Safety, Strategy Divisions Lithography Photomask Equipment Bonder Sales & Service Europe, USA, Japan, China, Taiwan, Singapore, Korea 24
INVESTOR RELATIONS INFORMATION Contact Financial Calendar 2014 / 2015 Franka Schielke Tel.: +49 (0) 89-32007- 161 Fax.: +49 (0) 89-32007- 451 Email: franka.schielke@suss.com SÜSS MicroTec AG Schleissheimer Strasse 90 85748 Garching (Munich) Germany www.suss.com German Corporate Conference, Berenberg/Goldman Sachs, München Neunmonatsbericht 2014 Eigenkapitalforum 2014, Frankfurt am Main KeplerCheuvreux Investorenkonferenz, Frankfurt Geschäftsbericht 2013 Quartalsbericht 2014 22. Sep. 6. Nov. 24. - 26. Nov. 19. Jan. 30. Mrz. 7. Mai. 25
SHARE PRICE DEVELOPMENT AND MAJOR HOLDERS (Price of the SUSS MicroTec Share at January 2, 2014: 6.38 ) SÜ SS M icro T ec, ind exed T ecd A X, ind exed Prime IG Semico nd uct o r, ind exed Major Shareholders: 160 150 140 130 120 110 Henderson 5.13% ING Invest 3.42% Vanguard 3.20% Sycomore 3.14% Schroders 3.10% Baillie Gifford 3.00% 100 90 80 Jan. Feb. M rz. Apr. M ai. Jun. Jul. Aug. Sep. Okt. Average daily trading volume January 2014 September 2014: ~ 103,000 26
Q1/2009 Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2 2014 LONG TERM BUSINESS DEVELOPMENT BY QUARTER 56.9 50.6 49.5 48.3 15.9 23.9 24.1 32.4 32.3 32.1 38.2 24.5 39.0 41.4 36.6 40.2 34.9 36.7 34.3 29.1 25.0 36.2 Order Entry in million 2013: 135 million 150 130.5 125 100 75 50 59.2 57.7 57.6 57.0 75.4 108.0 116.1 89.9 109.8 103.5 83.7 99.8 107.2 102.4 86.5 91.5 102.5 97.6 85.7 71.4 77.7 Order Backlog in million 25 750 50 25 22.5 24.6 23.5 33.3 21.9 37.7 37.0 42.5 32.0 52.6 45.9 44.9 31.2 36.3 40.7 55.6 30.1 24.9 38.9 40.5 39. 0 30.4 Sales in million 2013: 135 million 0 27
EBIT, FREE CASH FLOW AND NET CASH DEVELOPMENT -0.8 1.0 1.1 1.5-0.1 3.5 5.0 5.9 2.5 8.1 4.1 3.9 0.0 1.6 1.6 8.6-3.3 *-6.0 1.8-6.2 1.5 1.9 EBIT in million 2013: -19.4 million *-7.2-11.7 20 15 10 5 0-5 -10 1.9 2.1 1.7 3.3-1.3 15.3 18.4 11.6 13.8 11.0 7.3 25.6 10.3-2.2-2.2 34.6 35.1 23.5-0.3 35.5 4.5 40.1 1.5 42.0 0.3 38.5-7.4 30.1 0.9 30.7 1.7 32.3-7.2 25.1-5.2 19.5 2.5 21.9 14.0 35.7-4.2 31.5 1.8 33.3 Free Cash Flow in million 2013: 4.1 million Net Cash in million Q1/2009 Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 * one-off effect from restructuring the product line permanent bonding 28