SEZ Group Confirms Record Sales and Order Intake for Business Year 2004; Improved Net Sales and Order Intake for Q1 2005; New volume order from Japanese memory manufacturer

In business-year 2004, the SEZ Group (SWX Swiss Exchange: SEZN) reported consolidated net sales of CHF 304.8 million (2003: CHF 170.1 million) and operating profit (EBIT) of CHF 37.8 million (2003: operating loss CHF 1.4 million).  The EBIT margin of 12.4 percent was below expectations, whereas net profit exceeded expectations at CHF 32.1 million (2003: CHF 1.8 million).  Posted earnings per share were CHF 2.03. Order intake improved by 53 percent to CHF 309.1 million.

In the first quarter of 2005, preliminary net sales of approximately CHF 77 million exceeded the same period last year (Q1/2004: CHF 66.3 million), as well as the previous quarter (Q4/2004: CHF 75.7 million).  Order intake also improved by 10.6 percent to CHF 69.0 million compared to the previous quarter.

In business-year 2004, the SEZ Group surpassed its previous record levels with net sales, net profit as well as with order intake. While consolidated net sales advanced favorably, cost of goods sold had a less positive impact on operating profitability due to elevated pricing pressures, advances in the market, and unfavorable changes in the currency exchange.

SEZ expects the technology shift from batch to single-wafer wet processing to accelerate in 2005.  As the market and technology leader in this industry segment, SEZ will continue to benefit from this trend, especially with its innovative Da Vinci™ platform.  Among SEZ’s first-quarter 2005 purchase orders were multiple orders for Da Vinci tools from a world-leading Korean memory manufacturer and a large Chinese foundry.  Further signifying the rapid growth of single-wafer technology in Asian markets, SEZ today announced that Japanese memory manufacturer Elpida Memory, Inc. has placed an order for multiple 300-mm, double-chamber single-wafer cleaning systems. 

In line with the positive trends in the first quarter of 2005, SEZ also expects order momentum to continue in the second half of this year.  Apart from the strong demand for SEZ’s Da Vinci tools, which should account for about 60 percent of the Group’s sales in 2005, SEZ has decided to outsource its Da Vinci production partially to the new Eastern European EU-Countries.  In addition to further optimizing supply-chain management, this strategic move will enable significant reductions in production costs, which will positively influence profitability in the fourth quarter of 2005 and beyond.

For the remainder of business-year 2005, the SEZ Group will continue to focus on increasing its share of the wet-processing market and on its entrance into the front-end-of-line (FEOL) cleaning segment, as well as ongoing efforts to reduce overall manufacturing costs.

Quarterly Key Figures (unaudited)

* preliminary

Key Figures after 12 months 

Average exchange rates as of March 31, 2005:
EUR/CHF 1.54855; USD/CHF 1.18070

Upcoming financial dates
03 May 2005              Annual shareholders’ meeting (Zurich) and Q1 results 2005 press release

This press release includes the following tables (full-year 2004): key figures, income statement, balance sheet, statement of cash flows and changes in shareholders' equity.  Beginning today, the complete 2004 Annual Report, including the Corporate Governance chapter, is available on SEZ’s homepage located at www.sez.com (Investor/Financial Reports).  An audio webcast of today’s presentation of financial results will also be available on SEZ’s website www.sez.com from 6 pm CET.
 

About SEZ Group
The SEZ Group is the leading provider of single-wafer, wet-clean processing solutions for the semiconductor industry, with an installed base of over 900 tools.  The company maintains operations in Asia-Pacific, Europe, Japan and North America.   Since 1996, registered shares of SEZ Holding Ltd. have been traded on the SWX Swiss Exchange under the symbol SEZN.  Additional information about the company is available on the Internet at www.sez.com