SÜSS MicroTec SE: Sales momentum increased in the second quarter

•    Order entry of EUR 187.5 million robust in the first half-year
•    Order backlog continues to increase and is now at EUR 389.8 million
•    Sales grew in the second quarter of 2023 by 20.5% after +11.2%
     in the first quarter
•    Gross profit and EBIT margin impacted by MicroOptics division
•    The guidance for the full year 2023 is probably not achievable and
     has been adjusted

Garching, August 3, 2023 – SÜSS MicroTec SE, a leading manufacturer of system and process solutions for the semiconductor industry and related markets, published its Financial Report for the first half of the 2023 fiscal year today.

After a strong opening quarter, SUSS MicroTec continued to achieve robust order entry in the second quarter of 2023 in the amount of EUR 87.9 million. In total, order entry in the first half of 2023 thus amounted to EUR 187.5 million. The two semiconductor equipment divisions, Advanced Backend Solutions and Photomask Solutions, made a similarly strong contribution to new business with EUR 93.5 million and EUR 84.7 million, respectively. “This high level of demand was not to be expected on the basis of the cautious assessment of industry experts. Furthermore, order entry in the second half of the year may benefit from the announced capacity expansions and associated capital expenditures in semiconductors for AI applications,” says Dr. Bernd Schulte, CEO of SÜSS MicroTec SE.

The order backlog rose to EUR 389.8 million as of June 30, 2023, and continues to be the foundation for SUSS MicroTec’s further targeted growth. Due to the high order backlog and high capacity utilization, most new orders received in the 2023 fiscal year cannot be delivered and recognized in sales until the 2024 fiscal year.

Sales increased in the second quarter with growth of 20.5% to EUR 74.1 million (previous year: EUR 61.5 million). The figure was at EUR 144.4 million in the first half-year and therefore 15.7% above the prior-year value of EUR 124.8 million. The Photomask Solutions division accounted for the strongest share of growth, more than doubling its sales from EUR 15.1 million to EUR 34.5 million in the first half of the year. The largest division, Advanced Backend Solutions, grew by 9.8% to EUR 97.8 million in the year to date (previous year: EUR 89.1 million). In the MicroOptics segment, sales fell by 40.1% in the first half of the year to EUR 13.0 million, because important customers had purchased in excess of their requirements in the past year to counteract possible supply bottlenecks. These customers are now gradually reducing their high inventories during the current year. This effect prompted a drop in orders and thus sales in the first half of 2023.

In the first half of 2023, the gross profit margin was at 33.8% (previous year: 35.1%) and therefore below the target margin for the full year. On a positive note, the trend pointed upwards in the second quarter with a gross profit margin of 34.4% after 33.1% in the first quarter. The weak business development in the MicroOptics segment has negatively impacted the gross profit margin by 1.8 percentage points in the year to date. The gross profit margin in Advanced Backend Solutions and Photomask Solutions, our core semiconductor divisions, was 35.6% in the first half of 2023. As a result of the positive sales development, a slightly disproportionately low increase in selling, administrative and development costs and a positive effect from the foreign currency valuation, EBIT increased by EUR 3.3 million, or 64.7%, to EUR 8.4 million in the first half of 2023 (previous year: EUR 5.1 million). Therefore, the EBIT margin amounted to 5.8% (previous year: 4.1%). Earnings after taxes increased to EUR 6.2 million (previous year: EUR 3.6 million).

Outlook

Demand for SUSS MicroTec’s products and solutions remains strong – with the exception of the MicroOptics division. Due to the disappointing sales development in the MicroOptics division, the company is now assuming that it will achieve Group sales within a range of EUR 320 to 340 million for the 2023 fiscal year. Previously, EUR 320 to 360 million had been anticipated. In the midpoint of the range, the adjusted sales forecast would represent a growth of 10.3%. The forecast continues to assume that the currently remaining supply bottlenecks in certain areas and the situation of the global economy in general and the semiconductor and semiconductor equipment market in particular will not deteriorate unexpectedly.

“We have not managed to sustainably improve the gross profit margin over the prior-year period, particularly due to weak business development in the MicroOptics division. For this reason, we are lowering our gross profit margin forecast from the previous 37% to 38% to a range of 35.5% to 37.5% in the full year 2023. In view of the product mix in the order backlog and the increasing sales volume, we expect an overall improved margin in the second half of the year,” said Dr. Cornelia Ballwiesser, who took up her position as CFO of SUSS MicroTec in July 2023. The lower expectation for sales and gross profit margin also have an impact on the EBIT margin, which is expected to be between 9% and 11% for the full year 2023. The company had previously anticipated an EBIT margin within a range of 10% to 12%.

The Financial Report for the first six months of the 2023 fiscal year is available at www.suss.com/en/investor-relations in German and English.

Contact:
Sven Koepsel
Vice President Investor Relations, Corporate Communications and Corporate Marketing
Email: sven.koepsel@suss.com
Phone: +49 89 32007151

About SUSS MicroTec
SUSS MicroTec is a leading supplier of equipment and process solutions for microstructuring in the semiconductor industry and related markets. In close cooperation with research institutes and industry partners SUSS MicroTec contributes to the advancement of next-generation technologies such as 3D Integration and nanoimprint lithography as well as key processes for MEMS and LED manufacturing. With a global infrastructure for applications and service SUSS MicroTec supports more than 8.000 installed systems worldwide. SUSS MicroTec is headquartered in Garching near Munich, Germany. The shares of SUSS MicroTec SE are traded in the Prime Standard of the German Stock Exchange (ISIN DE000A10K0235). For more information, please visit http://www.suss.com.

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