SÜSS MicroTec (SMHN) German Select VII Conference summary

Company background and industry context

• Founded in 1949, the company has evolved from a family business to a global semiconductor equipment provider, with significant expansion in Asia and the U.S.

• Operations include major production sites in Germany and Taiwan, with the new Zhubei, Taiwan site opened in October 2025 and full transition from old sites by Q1 2026.

• The company serves the semiconductor industry, focusing on both front-end (photomask solutions) and advanced backend (packaging, bonding, coating) processes.

• Over 75% of sales are generated in Asia, with Taiwan and China as key markets, though China's share is expected to decline as regional diversification increases.

• AI, advanced packaging, automotive electrification, and industrial automation are major growth drivers, with AI-related sales comprising about one-third of total sales in 2024.

Recent performance and operational highlights

• Achieved record sales exceeding EUR 500 million in 2025, up 12.6% year-over-year, with significant growth since 2023.

• Order intake was soft for most of 2025 but improved in Q4 and continued positively into Q1 2026.

• Gross profit margin for 2025 was 35.7% (down 3.9pp YoY), and EBIT margin was 13.1% (down 3.6pp YoY), impacted by product mix and ramp-up costs.

• Advanced Backend Solutions saw 10.7% sales growth, with Imaging and Coating systems growing over 50% YoY, but profitability declined due to mix and new fab costs.

• Service and aftermarket sales currently represent 18% of revenue, targeted to grow to 25% by 2030.

Strategic initiatives, product development, and innovation

• Focused on launching next-generation tools in both photomask and backend solutions, with modular platforms to improve profitability.

• Multiple new products, including high-end and mid-end mask cleaners, are set for official launch in H2 2026, with initial sales expected late 2026 and further growth in 2027.

• Wafer cleaning and hybrid bonding solutions are in beta testing or early commercial stages, with commercial sales anticipated after 2026.

• R&D spending will increase to support innovation, despite anticipated short-term sales decline.

• Growth strategy includes expanding service revenue share, entering new markets, and pursuing targeted M&A to accelerate product development.