SUSS MICROTEC INVESTOR PRESENTATION November 2013
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. Enhanced Lithography Portfolio V. Financials VI. Outlook 3
SUSS MICROTEC AT A GLANCE SUSS MicroTec: A global leader in semiconductor equipment Our equipment and process solutions create the micro structures that build and connect micro electronic devices We are focused on high growth market segments: Semiconductors, MEMS, LEDs Key Data: Stock Exchange Symbol: SMHN Share price*: 7.83 Market Cap*: 150 million Net Cash, September 30, 2013: 21.9 million * October 31, 2013 4
SUSS MICROTEC IN THE VALUE CHAIN Key player in providing state-of-the-art semiconductor manufacturing equipment Development of highly innovative process solutions with industry and R&D partners 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 Academia IDM (Integrated Device Manufacturers) Intel, IBM, Samsung, Infineon, Texas Instruments Foundries TSMC, Global Foundries OSAT (Outsourced Assembly and Test Houses) ASE, Amkor, SPIL, STATS ChipPAC, nepes 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 Lyon, FR Coventry, UK Singapore, SG Shanghai, CN Hsin Chu, TW 7
MAIN PRODUCTION SITES Germany USA Garching SUSS MicroTec HQ Development/production: Mask Aligner Bond Aligner Sternenfels Development/production : Bonder Coater and Developer Photomask Equipment Corona Development/production: Stepper/Scanner Laser Processing Core competencies: Exposure (proximity exposure) Alignment Core competencies: Wet processing Wafer bonding Core competencies: Exposure (UV projection lithography) Laser Ablation 8
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Enhanced Lithography Portfolio V. Financials VI. Outlook 9
KEY MARKETS Mask Manufacturing Photomask Cleaning 10
SEGMENTS, PRODUCTS AND MARKETS Segments Photomask Equipment Lithography Substrate Bonder Products MaskTrack Pro Exposure Systems Coater/Developer Wafer Bonder Frontend Mid- and Backend Process Steps Photomask Cleaning Stepper, Scanner (UV projection) Laser Ablation Mask Aligner (proximity exposure) Nano Imprinting Coating Developing Bond Alignment Permanent Bonding Temporary Bonding Key figures 9M 2013 Sales: EBIT: 15.7 million 0.9 million Sales: 64.9 million EBIT: 2.6 million Sales: 9.8 million EBIT: -16.0 million Markets Mask Manufacturing Advanced Packaging 3D Integration MEMS LED 11
RESTRUCTURING OF PERMANENT BONDING Reevaluation of the business situation in permanent bonding ongoing losses expansion of the restructuring measures, which have been taken in Q2, 2013 Cease production of cluster systems for permanent bonding applications Losses of the Substrate Bonding Division will be reduced significantly The successful manual permanent bonding systems are not affected Extraordinary expenses of 6.0 million in Q2 2013 4.6 million value adjustments on capitalized development costs from the years prior to 2008, demonstration equipment, and other inventories 1.4 million provisions for commitments and other agreements Extraordinary expenses of 8.3 million will be taken in Q4 2013: 6.7 million for write-offs on raw materials, unfinished goods and demonstration tools 1.6 million for precautionary formed accruals for single customer projects Cumulative expenses for the restructuring of permanent bonding in 2013 will amount to approximately 14.3 million 12
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Enhanced Lithography Portfolio V. Financials VI. Outlook 13
TECHNOLOGY EVOLUTION ~1985...today ~1987...today ~1910...today ~1950...today 14
GROWTH DRIVER SMARTPHONES AND TABLETS Source: Yole Developpement 15
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 but also high performance ICs Energy Efficiency - Increase environmental awareness and rising energy prices and fuel the demand for energy efficient solutions in electricity usage i.e. lighting - Energy efficiency in industrial production - Smart energy management in household applications safes energy 16
EXPECTED MARKET DEVELOPMENTS With its strong position in the fast growing target markets 3D Integration / Advanced Packaging, LED and MEMS, SUSS MicroTec can benefit from the market developments: Advanced Packaging Wafer level packaging and flip chip is expected to remain more robust than the overall market, primarily driven by mobile devices like smart phones and tablets 3D Integration (TSV) Transition to production volume in the years to come Compound Semiconductors LED, MEMS, RF, Optoelectronics, III-V Power are expected to remain robust based on smartphone and tablet growth and will drive further demand for advanced packaging solutions Segment growth 2011-2016E CAGR ~ 15% (Gartner and industry estimates) 17
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") 18
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Enhanced Lithography Portfolio V. Financials VI. Outlook 19
LITHOGRAPHY COMPETENCY Increasing chip performance requires the adoption of innovative lithography technologies in the semiconductor backend Not one single exposure technology fits all needs at the same time The newly acquired Stepper/Scanner products supplement our Mask Aligner product line and enlarges our technology portfolio by the key competencies UV-projection lithography and laser ablation SUSS MicroOptics S.A. adds key know how for critical lithography performance improvements 20
EXPOSURE SOLUTIONS WLCSP: Fanout WLP Laser Ablation Proximity Exposure Flip Chip: Solder Bumping LED: Photonic Crystals Nanoimprint Projection- Lithography WLCSP: Fine pitch RDL Only SUSS MicroTec offers complete exposure solutions for the mid-/back-end 21
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Enhanced Lithography Portfolio V. Financials VI. Outlook 22
ORDER ENTRY AND SALES BY SEGMENT AND REGION 9M 2013 Order Entry by Segment Order Entry by Region 3% 21% 32% 9M 2013: 105.9 million 49% 9M 2013: 105.9 million 12% 64% 4% 15% Sales by Segment Sales by Region 10% 4% 28% 17% 9M 2013: 94.0 million 48% 9M 2013: 94.0 million 69% 5% 19% 23
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 LONG TERM BUSINESS DEVELOPMENT 56.9 50.6 49.5 48.3 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 Order Entry 15.9 in million 2012: 157.2 million 150 130.5 125 100 75 50 59.2 57.7 57.6 57.0 75.4 89.9 108.0 116.1 109.8 103.5 83.7 99.8 107.2 102.4 86.5 91.5 102.5 97.6 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 Sales in million 2012: 163.8 million 0 24
EBIT, FREE CASH FLOW AND NET CASH DEVELOPMENT 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 1.8 EBIT in million 20-0.8-3.3 *-6.0 15 10-11.7 5 0 1.9 2.1 1.7 3.3-1.3 7.3 10.3-2.2-2.2-0.3 4.5 1.5 0.3 0.9 1.7 Free Cash Flow 2.5 in million -5-10 -7.4-7.2-5.2 15.3 18.4 11.6 13.8 11.0 25.6 23.5 34.6 35.1 35.5 40.1 42.0 38.5 30.1 30.7 32.3 25.1 19.5 21.9 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 * one-off effect from refocusing product line permanant bonding 25
KEY FINANCIALS in million Q3 2013 Q3 2012 in % 9M 2013 9M 2012 Order Intake 34.3 36.6-6.3% 105.9 117.0 Order Backlog 9/30 -- -- -- 97.6 102.4 Revenue 38.9 40.7-4.4% 94.0 108.2 EBIT 1.8 1.6 +12.5% -13.2 3.1 EBIT in % of Sales 4.6% 3.9% -- -14.0% 2.9% EBIT (adjusted) 1.8 1.6 +12.5% -7.2 3.5 EBIT (adjusted) in % of Sales 4.6% 3.9% -- -7.6% 3.2% Earnings after tax (continuing operations) 1.2 0.4 >100% -10.5 0.8 Earnings after tax 1.2 0.4 >100% -10.5 2.3 EPS in (continued op.) 0.06 0.02 >100% -0.55 0.04 Free Cash Flow* 2.5 0.9 >100% -9.9-6.2 Net Cash** -- -- -- 21.9 30.7 Employees 9/30 -- -- -- 673 699 * before consideration of purchased interest-bearing securities, the acquisition of Tamarack and the gain out of the sale from the Test Business ** incl. stock of interest-bearing securities 26
TABLE OF CONTENT I. SUSS MicroTec at a Glance II. Products and Markets III. Growth Opportunities IV. Enhanced Lithography Portfolio V. Financials VI. Outlook 27
SUMMARY AND OUTLOOK 2013: - Milestone achievement in temporary bonding - Restructuring of product line Permanent Bonding expanded - Further integration of SUSS MicroTec Photonic Systems Fundamental growth in target markets Strong competitive positioning: first or second in the target markets Leading equipment company in the semiconductor backend, enabling Moore s Law as well as More than Moore Outlook FY 2013: - Sales of 125 135 million - EBIT: minus 22 minus 27 million (thereof 14.3 million one-off charges) Q4 2013: - Order Intake 30-40 million - One-off charges 8.3 million 28
SÜSS MicroTec AG Schleissheimer Str. 90 85748 Garching www.suss.com 29
INVESTOR RELATIONS INFORMATION Contact Financial Calendar 2013/2014 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 Nine-month Report 2013 German Equity Forum, Frankfurt/Main Morgan Stanley TMT Conference, Barcelona KeplerCheuvreux Investment Conference, Frankfurt Annual Report 2013 Quarterly Report 2014 Shareholders Meeting, Haus der Bayerischen Wirtschaft, Munich Interim Report 2014 Nine-month Report 2014 7. Nov. 11. - 13. Nov 21. - 22. Nov 20.-22. Jan 28. Mrz. 8. Mai. 17. Jun. 7. Aug. 6. Nov. 30
OUR TECHNOLOGY ENABLES SUSTAINABILITY Equipment Applications Initiatives - SUSS MicroTec equipment is designed to efficiently use electricity and chemicals - ReMan, the remanufacturing operation of SUSS MicroTec takes back used equipment and refurbishes it - 3D IC and chip scaling helps reducing energy and material consumption - LEDs for efficient lighting solutions - MEMS applications improve performance of mobile devices and conserve energy - Shift to renewable energies requires more power devices and high-performance ICs (e.g. for solar and wind power systems) - Laser Ablation in lieu of photolithography (seed layer removal) - Partner company of VDMA BlueCompetence initiative, a network of equipment providers in Germany, who are following a sustainable business approach - Innovative lighting solution in Sternenfels - Improved climatization system of cleanrooms - Paperless invoice system 31
SUSS MICROTEC PRODUCT PORTFOLIO Photomask Equipment Coater/Developer Wafer Bonders Alignment Verification Systems Mask Aligners Imprinting Systems UV-Projection Excimer Laser Stepper / Scanner Systems 32