Interim report January-September 2012 Micronic Mydata AB (publ) Press release 290E

Transcription

1 In 2015 consumers buy 225 million tablets. Micronic Mydata enables smaller and lighter electronics. Interim report January-September 2012 Micronic Mydata AB (publ) Press release 290E Micronic Mydata AB is a Swedish high-tech company engaged in the development, manufacture and marketing of production equipment to the electronics industry. The products consist of pattern generators including mask writers and direct writers for the production of photomasks and substrates as well as advanced surface mount technology (SMT) equipment. The pattern generators are used by the world s leading electronics companies in the manufacture of semiconductor circuits, for advanced electronic packaging and displays used in PC tablets, smart phones, TVs and computers. The SMT equipment is used for surface mounting of electronic components and stencil free jetting of solder paste. The SMT equipment is used, among others, by large and small manufacturers of electronics in aerospace, aviation and telecom. Micronic Mydata headquarters is located in Täby, north of Stockholm and the Group has subsidiaries in China, France, Germany Japan, Singapore, South Korea, Taiwan, the Netherlands, United Kingdom and the United States. For more information see our web site at:

2 Third quarter July-September 2012 Order intake was SEK 503 (311) million Net sales were SEK 277 (330) million EBIT was SEK -132 (3) million and adjusted for one-time costs of SEK 120 million it was SEK-12 (3) million Earnings per share were SEK (-0.02) Interim period January-September 2012 Order intake was SEK 1,052 (936) million Net sales were SEK 873 (828) million EBIT was SEK -140 (-52) million, and adjusted for one-time costs of SEK 120 million it was SEK-20 (-52) million Earnings per share were SEK (-0.72) CEO leaves Micronic Mydata Peter Uddfors leaves Micronic Mydata. The Board has come to the conclusion that the company needs a new form of leadership going forward with more focus on current business. Recruitment of a new CEO has started. Peter Uddfors will hold the position until a successor is recruited. Outlook Sales for 2011 were SEK 1,198 million. The Board s assessment is that sales in 2012 will reach approximately SEK 1,300 million. CEO comments on the interim period Growth from rapidly increasing LDI sales is being delayed. An LDI system was invoiced in the third quarter which is a confirmation of the system performance, but a broader implementation of the next generation of advanced substrates is estimated to be delayed and this is having an effect on the demand for LDI. Micronic Mydata is adjusting the business and organization in order to maintain a strong financial position with sustainable profitability despite the delay. The development pace of LDI is slowed down and we reduce costs throughout the entire Group with 60 MSEK annually. Despite a delay in LDI sales, Micronic Mydata is in a strong financial position with good, sustain-able profitability within the existing product areas. During the first nine months SMT show an operating margin of 14 percent and the core business in PG, LDI excluded 21 percent. During the third quarter, new mobile electronics products were launched where high-resolution LCD displays, as in the iphone 5, and AMOLED technology play an important part. This creates demand for panel displays with ever higher image quality, which in turn, requires more complex photomasks. Micronic Mydata, which offers the most advanced mask writers, received an order for a Prexision-8 mask writer for advanced display applications for a higher price than previously. The system was delivered in October. Sales and order intake for SMT equipment has been stable so far this year with strong demand for both advanced surface mounting machines from the MY100e series, as well as the MY500 jet printer for applying solder paste. The aftermarket business continues to grow, which provides a good base for growth and profitability. A high degree of system utilization by our customers also provides good opportunities for expanding aftermarket offerings. Peter Uddfors, President and CEO Group summary SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Rolling 12 mths Jan-Dec 11 Order intake , , ,214.0 Order backlog Net sales , ,197.6 Gross profit Gross margin 31% 39% 39% 41% 40% 41% EBIT EBIT margin -48% 1% -16% -6% -12% -5% Adjusted EBIT 1) Adjusted EBIT margin -4% - -2% - -3% - Earnings per share, SEK Cash flow ) Adjusted for one-time costs of SEK 120 million. Third quarter 2012, page 2 of 14

3 Group The Group provides cost-effective and innovative production solutions for the manufacture of electronics products. World leading companies use equipment from Micronic Mydata s two business areas, Surface mount technology (SMT) and Pattern generators (PG). SMT sells advanced systems for stencil-free jetting of solder paste on circuit boards and for mounting components on circuit boards, which, in turn, are used in the manufacture of electronics products. PG sells products for writing patterns on photomasks or for writing directly on a substrate. Pattern generators are used for manufacturing displays, semiconductors as well as in electronic packaging, which in turn, are used in the manufacture of electronics products. The Group strives to be a global high-tech growth company with sustainable profitability. Adopting to new market conditions The market for advanced electronic packaging is developing at a slower pace than previously predicted. A broader implementation of the next generation of advanced substrates is estimated to be delayed by two years. The company is reducing the pace of LDI development and adjusting the entire organization to this situation by reducing costs, which involves staff reduction of employees world-wide. After onetime costs for the downsizing, approximately SEK 30 million during the third quarter, annual costs will drop by approximately SEK 60 million. This downsizing will have an impact on cash flow in Since 2010, Micronic Mydata has spent SEK 422 million on development of LDI. During the third quarter, the profits were affected by write-downs of SEK 90 million. The write-down concerns evaluation tools, test equipment and certain components that are used during the development phase. The write-down has no negative effect on cash flow. After the writedown, remaining LDI assets amount to SEK 19 million. Third quarter July-September 2012 The order intake, including aftermarket sales for both business areas, amounted to SEK 503 (311) million. The order intake for PG includes 1 (0) mask writer for display applications and aftermarket sales. The order intake in SMT has dropped by nine percent compared with the same period in the previous year, which was a very strong quarter. The Group's sales were SEK 277 (330) million. The drop in sales is due primarily to the product mix within PG. During the quarter, one pattern generator for electronic packaging applications was invoiced. Sales during the third quarter have been negatively affected by currency trends. Converted to the same exchange rates which prevailed during the same period last year sales amount to SEK 279 million. The gross profit amounted to SEK 87 (128) million, equal to a gross margin of 31 (39) percent. The gross margin during the third quarter was affected by onetime costs of SEK 27 million for LDI. The gross margin was also affected by the mix of sold systems and the mix of products and services delivered in the aftermarket. When adjusted for one-time costs, the gross profit amounted to SEK 113 (128) million, equal to a gross margin of 41 (39) percent. The operating profit was SEK -132 (3) million, equal to an operating margin of -48 (1) percent. The operating results were negatively affected by one-time costs totaling SEK 120 million. SEK 90 million is related to impairment losses for inventory and non-current assets concerning LDI, and SEK 30 million is related to the downsizing of the organization. The costs for development, sales and administration (excl one-time costs) have decreased by SEK 10 million to SEK 119 million. The selling expenses decreased somewhat due to lower sales commissions, while the development costs have declined as the development of LDI slows down. The operating profit adjusted for one-time costs was SEK -12 (3) million. EBIT comparison, SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Jan-Dec 11 EBIT according to profit and loss account Net capitalization/amortization of R&D LDI development Revaluation of LDI evaluation system Write down of LDI assets Restructuring costs Amortization on acquired intangible assets EBIT comparable Third quarter 2012, page 3 of 14

4 Margins trend, rolling 12 months The costs for development, sales and administration (excl one-time costs) have decreased to SEK 386 (390) million. The selling expenses increased as a part of the business development of LDI and the SMT business area. The total development costs are decreasing as the LDI development decreases. The operating profit adjusted for one-time costs was SEK -20 (52) million. Sales per business area, rolling 12 months Interim period January-September 2012 The order intake, including aftermarket sales for both business areas, amounted to SEK 1,052 (936) million. The order intake for PG includes 1 (0) mask writer for display applications and aftermarket sales. The order intake for SMT dropped by two percent compared to the corresponding period last year. SMT Sales per business area, rolling 12 months PG Aftermarket The Group's sales were SEK 873 (828) million. The increase in sales is due primarily to strong aftermarket sales and continued strong sales of SMT equipment. The product mix within PG has affected sales negatively. System sales during the first nine months of the year included a mask writer and a direct writer for electronic packaging applications. Sales during the first nine months of the year were positively affected by currency trends. Converted to the same exchange rates which prevailed during the same period last year sales amount to SEK 846 million. Gross profit amounted to SEK 342 (338) million, equal to a gross margin of 39 (41) percent. The gross margin during the period was affected by one-time costs for LDI-related impairment losses, the mix of sold systems, a positive expansion of the aftermarket and the mix of products and services supplied within the aftermarket. When adjusted for one-time costs, the gross profit amounted to SEK 369 (338) million, equal to a gross margin of 42 (41) percent. The operating profit amounted to SEK -140 (-52) million and is equal to an operating margin of -16 (-6) percent. The operating profit was affected negatively by one-time costs of SEK 120 million. SEK 90 million relates to LDI-related impairment losses for inventory and non-current assets while SEK 30 million relates to restructuring the organization. Systems Cash flow and financial position The Group's cash and cash equivalents at the end of the third quarter amounted to SEK 512 (546) million compared with SEK 536 million at the end of The cash flow during the interim period was negative at SEK 15 (-44) million. Operations accounted for SEK 5 (19) million. This can be explained by changes in the operating capital, SEK 2 (7) million, primarily stockpiling within PG and a decrease in trade receivables. Investment activities accounted for SEK 6 (20) million, of which investment in development claimed SEK 0 (8) million. Other investments, SEK 6 (12) million, primarily concern investments in PG product development and the expansion of the property in Täby. The financing activities accounted for SEK 3 (4) million and concern continued reductions in operations-related loans in foreign subsidiaries. Equity The Group's equity at the end of the period amounted to SEK 1,052 million, compared with SEK 1,232 million at the end of The number of outstanding shares at the end of the period was 97,916,509. The earnings per share were SEK (-0.72). An employee stock option program has expired without any new share subscriptions. Third quarter 2012, page 4 of 14

5 Business area SMT Summary SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Rolling 12 mthsn Jan-Dec 11 Order intake and net sales Order intake Order backlog Net sales Results Gross profit Gross margin 45% 44% 43% 42% 43% 43% EBIT EBIT margin 15% 19% 14% 16% 16% 17% Development costs Development expenses Capitalized development Amortization of capitalized development Totat development costs Financial performance January-September The order intake, including aftermarket sales, amounted to SEK 582 (594) million. The order intake dropped by two percent compared to the corresponding period last year. The increase in sales is due to higher system sales, primarily SMT systems in the MY100e series, and positive expansion in aftermarket sales. Aftermarket sales include accessories, spare parts, software and service. Sales have been positively affected by currency trends. Converted to the same exchange rates which prevailed during the same period last year sales amount to SEK 557 million. The gross profit amounted to SEK 242 (226) million, which is equal to a gross margin of 43 (42) percent. The product mix of delivered systems is comparable to the corresponding period last year. The trend in aftermarket sales has had a positive impact on profits and an improved gross margin. investments in the sales organization, and partly to increased sales leading to higher sales commissions. Expenses for research and development have negatively affected the operating profits by SEK 58 (51) million. Previously capitalized development has been amortized in the amount of SEK 12 (11) million. There was no capitalization of development in 2012, SEK 0 (8) million. Margins trend SMT, rolling 12 months 50% 40% 30% 20% 10% The Group's operating profit amounted to SEK 79 (85) million, which is equal to an operating margin of 14 (16) percent. The costs for development, sales and administration have increased to SEK 164 (143) million. The selling expenses increased, which is due in part to the strategic business development, including 0% Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Gross margin EBIT Third quarter 2012, page 5 of 14

6 SMT market development The SMT business area has seen continued, strong sales growth during the first three quarters of 2012, primarily in North America, and most markets in Europe and Japan. System sales increased by five percent, compared with the same period in 2011, primarily due to strong demand for more advanced SMT machines from the MY100e series. The aftermarket business is also developing well, including service sales which increased 21 percent compared with the same period last year. The total order intake for the business area decreased during the first nine months of the year by two percent, compared with the same period in The drop can be explained by the very strong order intake during the third quarter of However, order intake in aftermarket sales has continued to grow. In April, Prismark predicted growth in the global semiconductor market of five percent during 2012, with a shift toward the second half of the year. Later forecasts show a negative growth of 0.6 percent. Seen over the entire year, the global demand for SMT equipment should remain stable. This points to stable growth for the business area for all of Third quarter 2012, page 6 of 14

7 Business area PG Summary SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Rolling 12 mths Jan-Dec 11 Order intake and net sales Order intake Order backlog 1) Net sales Results Gross profit Gross margin 6% 32% 33% 40% 32% 37% EBIT EBIT margin -127% -22% -61% -47% -60% -50% EBIT mask writers 2) EBIT LDI EBIT, total Development costs Development expenses, LDI Development expenses, mask writers Capitalized development Amortization of capitalized development Total development costs ) The order backlog includes systems and major upgrades. 2) EBIT divided by mask writers and LDI is presented starting Financial performance January-September The order intake amounted to SEK 470 (342) million and includes 1 (0) mask writer for display applications and aftermarket sales. The order intake last year included two systems for semiconductor applications and one system for electronic packaging applications. Sales amounted to SEK 304 (284) million and include two systems, an FPS and an LDI. The increase in sales is due to strong aftermarket sales, primarily upgrades and system relocations. The product mix of systems has negatively affected sales. At the same time, sales have been affected positively by currency trends. Converted to the same exchange rates which prevailed during the same period last year sales amount to SEK 288 million. The gross profit amounted to SEK 100 (112) million, which is equal to a gross margin of 33 (40) percent. The gross margin has been affected by one-time costs for LDI, by the mix of sold systems and the mix of products and services delivered for the aftermarket. When adjusted for one-time costs, the gross profit amounted to SEK 126 (112) million, which is equal to a gross margin of 42 (40) percent. As a part of a system deal in 2011, additional sales have occurred, which has improved the gross margin in aftermarket. Expenses for research and development amounted to SEK 163 (153) million. The majority of the development resources, SEK 148 (123) million focused on LDI, a development that occurs in close cooperation with collaborative partners. The operating profits, SEK -184 (-132) million, were affected negatively by LDI costs at SEK 243 (123) million which include impairment losses of SEK 90 million. The impairment losses include inventory and non-current assets related to LDI. The corresponding amount from the previous year only concerns development costs for LDI. The higher aftermarket sales have also generated increased costs for sales commissions. Margins trend PG, rolling 12 months 60% 40% 20% 0% -20% -40% -60% Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Adj gross margin Adj EBIT EBIT excl LDI Third quarter 2012, page 7 of 14

8 Market development mask writer The number of large LCD panel displays sold increased to reach record levels in August. Nevertheless, growth in the coming year is predicted to be somewhat lower than earlier forecasts. However, a strong demand for highresolution display panels for mobile applications, in combination with stable prices, contributes to the fact that total sales in the display industry is expected to increase somewhat in the coming years. There were certain signs during the quarter that indicated that profitability for display manufacturers is improving. The situation, however, remains strained for most manufacturers, especially in Taiwan and Japan. In South Korea, Samsung merged their production units for AMOLED and LCD into a new company, Samsung Display, which will be the world's largest display manufacturer. Another story during the quarter was the launch of the iphone 5, whose LCD display is considered to be the most advanced so far. In line with the iphone 5, other manufacturers are expected to readjust their positions since the panel display is considered to be key component in mobile electronics. The degree of utilization for the installed base of mask writers at photomask manufacturers has remained stable during the quarter. A drop in the volume of growth for large displays is counterbalanced by the need for more photo masks in the production process for mobile displays. The trend towards more high-resolution mobile panel displays and the introduction of new manufacturing techniques, such as AMOLED, also means that demand for photomasks will become even greater. There is a demand for more modern mask writers, and this resulted in an order for a Prexision-8 system during the third quarter. The stable demand for photomasks has recently led to a drop in the price pressure on them. Nevertheless, photomask manufacturers, similar to display manufacturers, continue to be in a stressful situation with low profitability. The aftermarket business for mask writers continues to be stable and dominated by service contracts. The demand for accessories has also been good during the quarter. Market development LDI The technical requirements in the market for electronic packaging are developing at a slower pace than previously predicted. A broader implementation of new production technology for the next generation of advanced substrates (microcircuit board) is estimated to be delayed by two years. Since 2010, Micronic Mydata has, in co-operation with the industry, developed a production solution that offers the electronics industry a way to cost-effectively manufacture advanced substrates, which in turn, enables development of future electronics products. At the end of 2011, Micronic Mydata launched the LDI 5s product series. Two of these systems are currently at two different customer sites, in the US and in Asia, for evaluation. One of the customers approved the system for invoicing during the third quarter, which is a confirmation of the system performance. Micronic Mydata feels that there is extensive interest in the technology, even if the implementation of higher requirements for substrates is going slower than previously predicted. The delay means that it is difficult at this time to predict when the next order will come or when greater demand takes off. The cost level for LDI is being adjusted to the new situation by slowing down the pace of development. Marketing activities for LDI 5s continue. The market for photomasks that are used in semiconductor applications is expected to grow in the coming years by approximately five percent per year (VLSI, July 2012), primarily due to price increases for the two most complex photo masks. However, investment in manufacturing equipment is being made primarily in the most advanced systems on the market, so-called electron beam writers. Since the total capacity need of semicritical photomasks continues to increase somewhat, there are still options for Micronic Mydata to sell laserbased mask writers. Third quarter 2012, page 8 of 14

9 Other Parent Company Micronic Mydata AB is the Group s parent company. The Group s product development and sales of pattern generators takes place through the parent company. The parent company s net sales during the first nine months 2012 were SEK 148 (145) million and include an FPS and an LDI. The operating profit for the first nine months was SEK -260 (-196) million and include one-time costs amounting to SEK 90 million. All R&D costs in the parent company are expensed as they are incurred. The parent company does not report capitalization of development costs in the balance sheet and thus does not report any amortization of previously capitalized development costs either. The parent company s cash and cash equivalents at the end of the third quarter were SEK 226 (303) million, compared with SEK 301 million at the end of Risks and uncertainty factors Through its operations, the parent company and the Group are exposed to a number of risks and uncertainties of both an operating and financial nature, which are described in the annual report for Those risks that are most prominent in the short term are the results of development efforts and launches within new product areas. The uncertainty on when a broader implementation of next generation substrates will take place has grown since the last quarter. This includes a risk for future impairment on remaining LDI assets. Accounting policies The interim report for the Micronic Mydata Group in summary has been prepared in accordance with IAS 34, Interim Financial Reporting and applicable parts of the Annual Accounts Act. The interim report of the parent company has been prepared in accordance with Chapter 9 of the Annual Accounts Act. For the Group and the parent company the same accounting principles as well as accounting estimates and assumptions have been used in this interim report as were used in the most recent annual report. Proposal on changed tax rate The Swedish government has put a proposal to change the corporate tax rate from 26.3 to 22 percent from 1 January, A change of tax rate will affect the results and financial position of Micronic Mydata negatively as per 31 December, If the tax rate had been implemented at 30 September, 2012 the effect on results and equity would have been negative at MSEK 12 million. A final calculation of the impact of a new tax rate will be completed at year end Events after the end of the third quarter Peter Uddfors leaves Micronic Mydata. The Board has come to the conclusion that the company needs a new form of leadership going forward with more focus on current business, in the two business areas SMT and PG. Peter Uddfors will hold the position until a successor is recruited. The employment agreement specifies a notice period of nine months in the event of dismissal by the company. After the notice period Peter Uddfors is entitled to severance pay corresponding twelve months salary. This change in leadership has no effect on cash flow during In October, a Prexicion-8 mask writer for advanced display applications was delivered. Nomination committee In accordance with the AGM decision a nomination committee has been appointed after the end of August. The nomination committee task is to propose members and chairman of the board and remuneration to board members and auditors. Nomination committee: Henrik Blomquist, Bure Annelie Enquist, Skandia Fonder Peter Edwall, Ponderus Securities Claes Murander, Lannebo Fonder Patrik Tigerschiöld, Chairman of the board The AGM 2013 will take place on 6 May, 2013, at 5.00 pm at Näsby Slott in Täby. Third quarter 2012, page 9 of 14

10 Financial information, company and market information Micronic Mydata AB (publ) is listed on NASDAQ OMX Stockholm, Small Cap, MICR. The Information in this report is of the type that Micronic Mydata is required to disclose under the Swedish Securities Markets Act. The Information was submitted for publication on 25 October, 2012, at 8.00 am. Financial statements and press releases are published in Swedish and English. Company information, market and product information are also available on the website: Financial calender Full year report January, 2013 Interim report, January-March April, 2013 AGM May, 2013 Interim report, January-June July, 2013 Interim report, January-September 24 October, 2013 Contacts at Micronic Mydata: Peter Uddfors President and CEO peter.uddfors@micronic-mydata.com Per Ekstedt CFO per.ekstedt@micronic-mydata.com Täby, 25 October 2012 Micronic Mydata AB (publ) The Board Third quarter 2012, page 10 of 14

11 Report on Review of Interim Financial Information Introduction We have reviewed the interim report of Micronic Mydata AB (publ), corporate identity number , as of 30 September, 2012 and for the nine-month period then ended. The Board of Directors and the President are responsible for the preparation and fair presentation of this interim financial information in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim annual report based on our review. Scope of Review We conducted our review in accordance with the Standard on Review Engagements (SÖG) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Annual Accounts Act for the Group and in accordance with the Annual Accounts Act for the Parent Company. Stockholm, 25 October, 2012 KPMG AB Anders Malmeby Authorized Public Accountant Third quarter 2012, page 11 of 14

12 CONSOLIDATED PROFIT AND LOSS ACCOUNTS SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Rolling 12 mths Jan-Dec 11 Net sales , ,197.6 Cost of goods sold Gross profit Research and development 2) Selling expenses 1) 2) Administrative expenses 1) Other income and expenses EBIT Financial income and expenses Profit/loss before tax Tax Net profit/loss Earnings/share, SEK Average number of shares, thousands 97,917 97,917 97,917 97,917 97,917 97,917 STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Rolling 12 mths Jan-Dec 11 Net profit/loss Other comprehensive income Translation differencies Cash flow hedges Tax relating to other comprehensive income Total comprehensive income ) Costs related to product management have previously been accounted for as administrative expenses. Beginning 2012 these costs are accounted for as selling expenses. Comparative figures have been restated. 2) July-Sep and Jan-Sep 2012 include non-recurring costs. Research and development costs SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Rolling 12 mths Jan-Dec 11 R&D expenditure Pattern generators SMT equipment Capitalized development costs Pattern generators SMT equipment Amortization of capitalized development Pattern generators SMT equipment Amortization of excess value in technology R&D costs Revenue by geographical area SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Rolling 12 mths Jan-Dec 11 EMEA Americas Asia , ,197.6 Third quarter 2012, page 12 of 14

13 CONSOLIDATED CASH FLOW STATEMENTS SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Rolling 12 mths Jan-Dec 11 Cash flow from operations before changes in working capital Changes in working capital Cash flow from operations Cash flow from investing in development Cash flow from other investing activities Cash flow from investing activities, total Cash flow from financing activities Increase/decrease in cash and cash equivalents Opening balance, cash and cash equivalents Exchange differences Closing balance, cash and cash equivalents CONSOLIDATED STATEMENTS OF FINANCIAL POSITION SEK million ASSETS 30 Sep Sep Dec 11 Fixed assets Intangible assets Tangible assets Long-term receivables Deferred tax assets Total fixed assets Current assets Inventories Trade receivables Other current receivables Cash and cash equivalents Total current assets 1, , ,177.4 Total assets 1, , ,586.7 EQUITY AND LIABILITIES Equity 1, , ,231.7 Liabilities Long-term interest-bearing liabilities Other long-term liabilities Deferred tax liabilities Total non-current liabilities Current interest-bearing liabilities Trade payables Other current liabilities Total current liabilities Total liabilities Total equity and liabilities 1, , ,586.7 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SEK million Jan-Sep 12 Jan-Sep 11 Jan-Dec 11 Opening balance 1, , ,314.7 Total comprehensive income Closing balance 1, , ,231.7 Third quarter 2012, page 13 of 14

14 Financial key figures Jan-Sep 12 Jan-Sep 11 Rolling 12 mths Jan-Dec 11 Order intake 1, , ,214.0 Net sales , ,197.6 Gross margin 39.2% 40.9% 39.6% 40.8% EBIT margin -16.1% -6.2% -12.4% -5.5% Adjusted EBIT margin 1) -2.3% % - Return on equity -14.9% -5.5% -16.3% -7.0% Equity/total assets 73.1% 77.0% 77.6% Equity/average number of shares Average number of employees Capital spending Capitalized development costs Other fixed assets The Micronic Mydata share Closing share price Market cap, SEK million 1, , , ) Adjusted for one-time costs of SEK 120 million. Quarterly data Q 4-10 Q 1-11 Q 2-11 Q 3-11 Q 4-11 Q 1-12 Q 2-12 Q 3-12 Sales, SMT equipment Sales, Pattern generators Gross profit, SMT equipment Gross profit, Pattern generators Gross profit, total Gross margin, SMT equipment 44% 40% 42% 44% 45% 43% 40% 45% Gross profit, Pattern generators 61% 46% 47% 32% 31% 59% 34% 6% Gross margin, total 54% 41% 43% 39% 40% 48% 38% 31% R&D expenses Selling expenses 1) Administrative expenses 1) Other income/expenses EBIT ) Costs related to product management have previously been accounted for as administrative expenses. Beginning from 2012 these costs are accounted for as selling expenses. Comparative figures have been restated. Segment reporting SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Rolling 12 mths Jan-Dec 11 Revenue SMT equipment Pattern generators , ,197.6 EBIT SMT equipment Pattern generators Restructuring costs Amortization of intangible assets Group Third quarter 2012, page 14 of 14

15 INCOME STATEMENTS, PARENT COMPANY SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Jan-Dec 11 Net sales Cost of goods sold Gross profit Research and development expenses Selling expenses 1) Administrative expenses 1) Other income and expenses EBIT Result from financial investments Profit/loss before tax Tax Net profit/loss STATEMENT OF COMPREHENSIVE INCOME,PARENT COMPANY SEK million July-Sep 12 July-Sep 11 Jan-Sep 12 Jan-Sep 11 Jan-Dec 11 Net profit/loss Other comprehensive income Translation differences Tax relating to other comprehensive income Total comprehensive income ) Costs related to product management have previously been accounted for as administrative expenses. Beginning 2012 these costs are accounted for as selling expenses. Comparative figures have been restated. BALANCE SHEETS, PARENT COMPANY SEK million ASSETS 30 Sep Sep Dec 11 Non-current assets Intangible and tangible assets Financial assets Participations in group companies Receivables from group companies Other non-current receivables Deferred tax receivables Total financial assets Total non-current assets Current assets Inventories Current receivables Trade receivables Other current receivables Total current assets Cash and cash equivalents Total current assets Total assets 1, , ,238.6 EQUITY AND LIABILITIES Equity , ,116.2 Trade payables Current liabilities Total liabilities Total equity and liabilities 1, , ,238.6 Pledged assets and contingent liabilities Pledged assets Contingent liabilities Third quarter 2012, page 15 of 14

16 Appendix, market information with market data Business area surface mount technology (SMT) The weakening in the semiconductor market that was seen during the second half of 2011 continued during the start of In May, the growth in the semiconductor market, seen over a twelve-month period, was -3.5 percent compared with the same period during the previous year (Prismark, July 2012). The global market for SMT equipment also showed lower volumes during the first nine months of 2012, compared with the same period during the previous year. The market situation during the first three quarters has continued to be positive for the business area, with promising growth in North America, most of the markets in Europe, as well as Japan. Sales of SMT systems saw growth of five percent during the period compared with the same period during the previous year. The strong growth can be attributed to strong sales of the surface mount MY100e series. The service business, which is a part of aftermarket sales and an important part in the business area's strategy, grew by 21 percent over the same period. The total order intake during the first nine months of the year, including aftermarket, decreased by two percent, compared with the same period last year. A contributing factor for the relative decrease was the very strong order intake during the third quarter of At the same time, the order intake for aftermarket sales has been good with growth of 7 percent in 2012, compared with the same period last year. However, during the second quarter of 2012, the beginnings of a decrease in demand for SMT equipment could be detected in certain markets in Europe. In April, Prismark predicted growth of 5 percent in the global semiconductor market for This forecast was later adjusted downward to an expected negative growth rate of 0.6 percent for the year. However, the semiconductor market is expected to see a positive growth during the fourth quarter compared with the fourth quarter the previous year. Seen over the entire year, the global demand for SMT equipment appears to be good. This points to continued stable sales growth for the business area for all of Business area pattern generators (PG) The display market The market for large displays, primarily intended for TV, showed an increase in volume and sales in August. However, over the long term, the growth for the total display industry has been adjusted downwards. A strong demand for high-resolution displays for mobile applications, in combination with stable prices, is one reason why the industry's sales are expected to increase in the coming years and reach USD 120 billion in 2012 and USD 132 billion in 2013 (DisplaySearch, Sep 2012). During the quarter Apple launched the iphone 5. The display in the iphone 5 is a 4 inch LCD display. Exactly as in the iphone 4, the resolution is 326 PPI, but performance has been improved considerably in several respects. During the quarter, Sharp launched a 5 inch LCD display that offers full HD, which corresponds to a resolution of 443 PPI. Manufacturers have therefore shown that the LCD technology still has potential, which make it challenging for the AMOLED technology to break through on a wide front. The first deliveries of 55-inch TVs containing an AMOLED display, which were launched by LG and Samsung at the start of the year appear to be delayed and will maybe appear first at the beginning of next year. Nevertheless, the future looks bright for AMOLED technology, since it enables the production of thinner and more energy efficient displays with better image quality and at a lower cost. The display manufacturers continue to show poor profitability and the situation is tenuous, particularly in Taiwan and Japan, where Sharp, AU Optronics and Chimei Innolux posted losses in their latest quarterly reports. In South Korea, Samsung merged their production units for AMOLED and LCD into a new company, Samsung Display, which will be the world's largest display manufacturer. Investment in production equipment for the entire year is expected to amount to USD 3.8 billion and grow to USD 8.3 billion in 2013 (DisplaySearch, Sep 2012). The investments primarily involve AMOLED plants and new LCD factories in China. Appendix, sid 1 av 2

17 High-resolution displays require several photomasks in the manufacturing process, which increases the total volume of photomasks. This is a positive development for Micronic Mydata's customers. The trend toward high-resolution, mobile, displays and the introduction of new manufacturing techniques also means that the demand for photomasks is increasing and that the most advanced mask writers have an even bigger burden. The relatively stable demand for photomasks seen, means that the price pressure for photomasks has dropped somewhat and the degree of utilization of the installed base continues to be high. However, photomask manufacturers, like display manufacturers, continue to be in a stressful situation with weak profitability. The semiconductor market The main factors that drive the semiconductor industry are cost-reduction, greater functionality and mobility. By making the semiconductors smaller, more chips fit on a silicon wafer, which lower the cost per semiconductor. A smaller semiconductor also uses less power and takes up less space, which is particularly important for mobile products. The manufacturers therefore continue to reduce the interconnect width in accordance with "Moore's Law". For the photomask industry, this means that customers are continuously demanding photomasks with higher resolution and better image quality. The outlook for the world economy has worsened somewhat over the quarter. In light of this, Intel, among others, came out in the beginning of September and adjusted their sales forecasts downwards for the third quarter. Prismark also downgraded their sales forecast for the entire year from USD 314 to USD 298 billion (Prismark, Oct 2012). Growth in mobile applications, such as tablets, continues to be strong but it is now clear that sales in this sector have a negative impact on the sales of other products, e.g. PCs. Investment in production equipment for the full year 2012 is expected to drop by 3 percent compared with the high level in 2011 of USD 58 billion (Prismark, Oct 2012). The number of photomasks used for semiconductor applications is expected to remain relatively stable at roughly 600,000 units in the coming years. Since prices on the most complex photomasks are simultaneously expected to increase sharply, the total sales for the market is predicted to increase by an average of five percent annually (VLSI Research, July 2012). Most of the investments are being made in the manufacture of the most complex photomasks. The majority of investment in mask writers is being made in electron beam writers. Micronic Mydata's laserbased mask writer is used primarily for technology nodes over 32 and under 200 nanometers. Volumes in this segment are also expected to increase somewhat in the coming years which involve continued sales opportunities. The electronic packaging market Electronic packaging connects and protects semiconductor chips when manufacturing electronics products. The techniques that are used are more or less advanced. The more advanced packaging techniques use a substrate, which can be compared to a microcircuit board. The substrate is manufactured using traditional lithography, where the pattern is transferred to the substrate via photomasks. Micronic Mydata is an established supplier of mask writers for the production of photomasks for electronic packaging. The key parameters in the lithography stage are the ability to write small structures, ensuring extremely precise conformity between the layers and high-speed copying. Today's lithographic equipment has difficulty meeting these three requirements simultaneously. The market has thus opened up for new, innovative solutions such as Laser Direct Imaging (LDI). LDI involves transferring the pattern to the substrate directly from a digital format without using photomasks. Development within the industry is driven primarily by achieving better performance in electronics products, for example, tablet computers and smartphones, cheaper and smaller products with a long battery life, and shorter product life cycles. The overall market for substrates reached USD 8.7 billion for 2011, and the rate of growth is estimated at 6.5 percent annually between 2011 and The market for advanced substrates was USD 5 billion in 2011, and the rate of growth was estimated at 9.2 percent annually between 2011 and 2015 (Prismark, January 2012). Micronic Mydata estimates that the market for exposure equipment for substrate production is currently USD million per year, and the company predicts that it will grow. Appendix, sid 2 av 2