|
|
The SEZ Group
Consolidated Key Figures
Corporate Bodies
The Single Wafer Advantage
To our shareholders
Report on the Financial Year 2003
The SEZ Group develops, manufactures and markets unique process systems and applications needed for microchip manufacturing. More than 90 of the leading microchip and wafer manufacturers are among SEZ 's clientele. With its Spin-Processor technology, a worldwide patented method for wet surface preparation of silicon wafers, SEZ has been able to firmly establish itself as a global technology leader in the area of single-wafer manufacturing.
Since 1996, SEZ Holding Ltd. has been listed on the main segment of the SWX Swiss Exchange (SWX: SEZN).The group 's largest location is Villach, Austria. Additional subsidiaries in North America, Japan, Taiwan, Singapore, South Korea and a representation in China provide a global service and distribution network.
| in CHF 1000 | 2003 | 2002 | 2001 | 2000 | 1999 | | Order intake | 201 563 | 191 376 | 176 498 | 263 135 | 139 032 | | Net sales | 170 119 | 198 903 | 250 785 | 195 203 | 83 691 | | Operating income (EBIT) | (1 430) | (13 017) | 42 975 | 49 396 | 12 007 | Net profit (loss) | 1 752 | (13 518) | 29 165 | 31 803 | 10 387 | Research and development expenses
as % of sales | 37 616
22 | 37 582
19 | 37 002
15 | 25 880
13 | 12 083
14 | | Operating cash flow before changes in net working capital | 26 270
| 20 099
| 44 187
| 42 330
| 15 993
| | Investments in fixed assets and intangibles | 18 011
| 42 145
| 38 420
| 20 152
| 4 839
| | Free cash-flow 1 | 19 467 | (51 718) | (13 208) | (18 321) | 1 761 | | Net financial assets 2 | 57 320 | 40 377 | 21 672 | 30 737 | 6 048 | | Net working capital 3 | 101 372 | 121 020 | 104 714 | 87 988 | 45 241 | Equity ratio in % | 75.47 | 72.53 | 60.52 | 57.82 | 52.14 | | Average number of employees | 629 | 732 | 701 | 452 | 306 |
1 Cash flow from operations less capital expenditure for tangible and intangible assets.
2 Cash and cash equivalents and financial investments less long-term and short-term debt.
3 Inventory and trade receivables less trade payables.
Board of Directors
Egon Putzi, Chairman, Delegate of Board of Directors, Austrian, Villach
Franz Sumnitsch, Vice-Chairman, Delegate of Board of Directors, Austrian, Klagenfurt
Dr. Thomas Egolf, Risk and Audit Committee, Swiss, Oberrohrdorf
Dr. Thomas Lustenberger, Secretary, Risk and Audit Committee, Swiss, Ebikon
Jack Schmuckli, Swiss, Stäfa
Management Board (Corporate Executive Board)
Egon Putzi, Chief Executive Officer
Franz Sumnitsch, Chief Executive Officer
Sabine Kampitsch, Finance (Executive VP & Chief Financial Officer)
Kurt Lackenbucher, Corporate Operations (Executive VP & Chief Operating Officer)
Strategy Advisory Board
Wilhelm Ladenhauf, SEZ AG, Technology & Innovation
Hans Kruwinus, SEZ AG, Research
Ernst Gaulhofer, SEZ AG, Process Application
Lutz Deutschmann, SEZ AG, Global Marketing
Yutaka Watanabe, SEZ AG, Global Marketing
Jim Mello, SEZ America, Sales & Marketing
Auditors
KPMG Fides Peat, Zurich
SEZ Vision
SEZ will extend its global leadership and become the industry's most complete supplier of single-wafer wet-processing solutions throughout the IC manufacturing lifecycle.
SEZ Mission
Product
Our mission is to enable the manufacturing of advanced semiconductor devices by delivering superior single-wafer wet-processing solutions that help our global customers optimize process results, enhance device performance and boost manufacturing yields.
Growth
Continuously maximize economic value of the company through focused cost control management, continuous efforts to increase market share, maintaining a strong cash position and strong global and strategic positioning.
People
Increase overall corporate effectiveness by capitalizing on our corporate culture and employee excellence. We empower our people with career planning, continuing education and training programs.
Environment
To attain a high degree of environmental protection by enabling programs that increase environmental awareness, safety and emission control. We aim to maximize efficiency of resources.
The Wet Processing Equipment Market
The wet etch and wafer cleaning market has become one of the most critical areas of the entire semiconductor manufacturing process. As chip making moves into smaller geometries beyond the 100 nm era, the ability to effectively clean the wafer surface by removing photoresist residues or residual metals becomes more critical. However, this market is highly fragmented and most players are traditionally found in the wet bench (batch processing) segment.
Today the wet etch and clean market is segmented in to backside processes (like film removal, backside cleans and silicon etch applications), back-end-ofline (BEOL) cleans (like polymer residue removal), and Front-end-of-line (FEOL) cleans (like pre-cleans and post-ash cleans). Backside applications are dominated by single-wafer processes and up to 40 percent of all BEOL cleans are successfully done with single-wafer tools, whereas the FEOL cleaning segment is just beginning to be penetrated by singlewafer.
Today, around 20 percent of all wet application steps in microchip manufacturing are performed using single-wafer pro-cesses. Based on current market indicators, there is an increased expectation that single-wafer processing will grow faster than the older wet bench approach, especially as advanced cleaning FEOL will necessitate the flexibility and advanced process controls that single-wafer provides.
SEZ estimates that the ratio of single-wafer applications will increase from today's 20 percent to 45 percent by the year 2008.
The 2003 fiscal year was an exciting one for SEZ as we benefited from the semiconductor industry recovery with an excellent order intake due to growing customer demand for our single-wafer wet-processing technology. We also positioned ourselves to take advantage of future growth in the semiconductor market through a strategic re-orientation and the launch of our innovative Da Vinci™ and Galileo™ platforms. With our leading-edge single-wafer technology, SEZ is in a solid market position to benefit from a continued upswing in growth.
Toward the end of 2003, the global semiconductor manufacturing equipment industry witnessed the start of an upswing. Despite a loss of CHF 9.2 million in the first nine months of 2003, we were able to register a net profit of CHF 1.8 million for the entire year due to a strong fourth quarter. Reported total net sales for 2003 were CHF 170.1 million, matching a drop in sales of 14.5 percent, compared to 2002. Our company's strong market position revealed itself beginning in mid-2003. Early on, SEZ benefited from the semiconductor market recovery, primarily due to orders for 300-mm projects, largely originating from foundries throughout the Asia-Pacific region as well as from Japanese microchip manufacturers. Incoming orders rose by 5.3 percent to CHF 201.6 million, compared to the previous year. The majority of incoming orders were achieved in a record order intake during the fourth quarter of 2003. The order backlog at the end of the year was CHF 70.6 million, which was 72.6 percent higher than at the end of 2002. This significantly improved market situation makes us confident as we move into 2004, of which we are expecting a noticeable favorable result of growth in consolidated net sales amounting to at least CHF 240 million.
The strategic re-orientation in March along with the associated closure of the wet bench competence center still led to an impairment of assets and restructuring costs totaling CHF 2.0 million in 2003. This concentration on wet chemical single-wafer processing enabled us to focus our research and development activities on the innovative Da Vinci and Galileo platforms beginning in the second quarter. As early as June 2003, the first tool based on the Da Vinci platform – the DV-38F, an eight-chamber system for advanced wet chemical cleaning steps in volume production – was brought to market. Featuring the potential to significantly lower production costs for microchips, this new platform sparked significant interest throughout the industry. The inaugural shipment of the DV-38F was to a worldwide leading Taiwanese foundry in the second half of 2003. Due to high demand, the development of the other tools within the Da Vinci platform was accelerated and completed in February 2004 with the debut of three other models – the DV-28F, DV-34B and DV-24BF. The Da Vinci platform marks yet another important step forward in our strategic roadmap to become the industry's most complete supplier of single-wafer, wet chemical cleaning solutions – and we believe that these tools will start to contribute to SEZ sales in 2004.
In December, we augmented our state-of-the-art product portfolio with the introduction of the Galileo GL-210. Galileo is based on SEZ's proven Spin Process technology and is designed for substrate etching and wafer-thinning applications. Emerging electronic applications, such as smart cards and handheld mobile devices, require ever-thinner and more capable microchips. Galileo – used after mechanical grinding – was developed to fulfill industry demand for thinner, more uniform substrates with reduced mechanical stress. Designed especially for the packaging industry and wafer manufacturers, Galileo offers tailored solutions that expand SEZ's reach into new markets.
The receipt of several awards from customers and industry consortia marked another corporate milestone for SEZ in 2003. The renowned chipmaker AMD recognized SEZ with its "Superior Customer Service and Customer Commitment" award for the second year running. In addition, the international consortium of leading semiconductor manufacturers, International SEMATECH, acknowledged our efforts in the area of 300-mm automation and process control management.
SEZ holds a unique market position with its focus on single-wafer technology and is armed with a strong product portfolio and demonstrated high innovation speed to meet today's demanding market requirements. But it doesn't stop there – by launching and evaluating new solutions, the SEZ Group will continue to expand its position as supplier of complete wet-chemical cleaning solutions based on the single-wafer technology.
In closing, we would like to express our thanks to all our stakeholders for their steadfast commitment and loyalty. The first of these are our dedicated employees throughout the world who continue to set the standards in quality and customer service. We would also like to thank all of our customers and business partners for their continued support. And last, but not least, another round of thanks to our shareholders for the confidence they have placed in SEZ, even during the difficult conditions the industry has faced.
Egon Putzi | Chairman of Board of Directors
Franz Sumnitsch | Vice-Chairman of Board of Directors
Kurt Lackenbucher | Member of Corporate Executive Board
Course of Business 2003
In line with the noticeable improvement in the global semiconductor manufacturing equipment industry during the course of 2003, the SEZ Group's incoming orders rose sharply over the last three months of the year. Compared with the third quarter of 2003, SEZ reported a 80-percent increase in order intake to a record level. The pickup in demand was primarily attributed to 300-mm projects stemming from foundries throughout the Asia- Pacific region and chipmakers in Japan. Testament to this upswing in the second half of the year, SEZ reported a year-end book-to-bill ratio of 1.19 and an order backlog of CHF 70.6 million – exceeding 2002 by 72.6 percent. The SEZ Group's net sales for 2003 were CHF 170.1 million, 14.5 percent lower than the previous year. However, the efficient reorganization measures implemented during 2003 helped to clearly reduce the operating loss (EBIT) from CHF 13.0 million in 2002 to CHF 1.4 million. This result includes restructuring costs and impairment of assets amounting to CHF 2.0 million in association with the company's exit from the wet-bench market and the closure of its Donaueschingen facility. Following a net loss of CHF 13.5 million in 2002, the year 2003 marked a vast improvement with the company reporting a net income of CHF 1.8 million.
During 2003, the SEZ Group secured 86 percent of its sales from wet wafer processing equipment. Spin Processors for 300-mm applications accounted for nearly 60 percent of equipment sales.
SEZ's sales share in the Asia-Pacific region continued to gain momentum – increasing to 47.3 percent, up from 41.4 percent in 2002. Overall, the company realized sales in this region of CHF 80.5 million, compared with CHF 82.2 million in the previous year. Once again, foundries from this key region represented SEZ's largest customer base, while Japan showed the most noticeable sales growth in percentage terms – increasing to 30.3 percent, up from 18.7 percent. Net sales from Japan surged from CHF 37.3 million to CHF 51.5 million. Sales in Europe dropped from CHF 31.5 million to CHF 21.8 million, and comprised 12.8 percent toward Group sales (versus 15.8 percent in 2002). During the year, U.S. sales also declined to CHF 16.3 million from CHF 47.9 million, accounting for 9.6 percent of total sales. Reasons for the declining development in Europe and the U.S. were a slow economy, weak chipmaker investment, the growing trend toward outsourcing production to Asia, and, especially on the U.S. front, the slow adoption of single-wafer cleaning technologies.
Focus on single-wafer-technology
Caught in the undertow of the global economic downturn, sales in the international semiconductor industry dwindled in 2001 and remained at a low level throughout 2002. The global market for wet-wafer processing equipment was cut in half in the beginning of 2003 to USD $890 million (Source: Dataquest, July 2003). This led to overcapacities and high pricing pressure, particularly in the wet-bench market segment. At the same time, with device geometries shrinking below 90 nm and 300-mm wafers becoming more prevalent, chipmakers are turning to single-wafer, wet-clean processing to reduce the risk of cross contamination during critical cleans. The year 2003 showed evidence that the single-wafer wet processing market would exhibit strong growth within the overall market for wetprocessing systems. In anticipation of this, SEZ Holding Ltd.'s Board of Directors strategically decided on March 5, 2003 to close SEZ Germany GmbH – the company's production center for wet benches (incorporated in 2001) – and to focus the SEZ Group's activities on its core competence, the development and production of single-wafer processing systems. In addition to closing the German facility located in Donaueschingen, SEZ also shut its sales and service locations in Scotland (SEZ UK Ltd.) and France (SEZ France S.A.R.L.), as of June 30, 2003. These reorganization measures were efficiently implemented with no adverse effects or disruption of the SEZ Group's customer support activities. And, now able to fully concentrate on its core business, SEZ significantly accelerated its product development cycle times. Testament to this, SEZ brought to market two new technology platforms – Da Vinci and Galileo – during the year. Both of these tool architectures are projected to have a favorable impact on SEZ Group's net sales starting in 2004, and onward.
Market and Market Position
Following a massive decline in the previous year, the market for wet chemical surface treatment of wafers – around 6 percent of the overall market for semiconductor manufacturing equipment (Source: Dataquest, December 2003) – registered a slight growth of 3 percent to USD $ 911 million. With an order intake that was around 5 percent higher in the financial year 2003, SEZ further consolidated its leading position in the wet chemical single-wafer processing equipment market thereby, improving its chances to directly participate in the growth of the overall market for wet chemical applications. In this respect, the market for single-wafer processing may even exceed the growth that independent researchers have estimated between 25 and 40 percent for 2004 and 2005. The continued miniaturization, the increasing number of chips per wafer and the deployment of new materials and technologies within the manufacturing cycle are fueling the industry's push toward single-wafer application systems due to its myriad inherent benefits. Specifically, heralded for its accurate processing capabilities over traditional multi-wafer systems when used in high-standard cleaning applications, single-wafer processing offers the potential to significantly reduce production costs per chip. SEZ makes use of this development by continually adjusting its product and application portfolio to meet the requirements of the semiconductor industry. The introduction of the new Da Vinci and Galileo systems complement SEZ's broad product portfolio, which addresses the entire semiconductor manufacturing chain – from wafer manufacturing to fabrication and packaging.
Cooperation Ventures and Alliances
In the global semiconductor industry, alliances and cooperation ventures are a prerequisite for keeping pace with the high innovation speed required to keep pace with Moore's Law. For many years, SEZ has worked in close collaboration with leading consortia and industry partners exploring the development of future process solutions and the enhancement of existing technologies to address current and next-generation processing requirements. In view of the market recovery and the challenges posed by the current growth cycle, SEZ has intensified its existing partnerships and has forged new alliances with key players. One such example is the continued collaboration with Belgium-based, European research institute IMEC to develop advanced cleaning technologies.
Research and Development
As part of its strategic business roadmap, SEZ's research and development activities in 2003 were focused on becoming the industry's most complete supplier of solutions for wet-chemical cleaning steps based on the single-wafer technology. In total, CHF 37.6 million (2002: CHF 37.6 million) equaling 22.1 percent (2002: 18.9 percent) of consolidated net sales were allocated to research and development in 2003. Activities primarily centered on the development of the Da Vinci platform for use in the high-volume production of 200- and 300-mm wafers. The Da Vinci platform offers increased productivity and maximum maintainability and reliability, at a significantly reduced footprint. Da Vinci's "best-of-breed" combination of both production-proven and newly integrated state-of-the-art technologies, will help speed the industry's transition from multiple-wafer processing to single-wafer cleaning technology – helping both foundries and chipmakers, alike, meet their cost-of-ownership and time-to-market goals. The first product stemming from the Da Vinci Series, the DV-38F, was introduced in June 2003. It is used for advanced wet chemical cleaning processes and has already been installed at customer locations for evaluation purposes. Due to growing interest, SEZ accelerated the development of the other products within its Da Vinci platform – launching three new tools in February 2004: the DV-28F, DV-34B and DV-24BF.
In December 2003, SEZ also introduced the Galileo™ platform, which leverages SEZ's proven Spin Process technology for substrate etching and wafer thinning applications. Designed especially for the packaging industry and wafer manufacturers, Galileo offers customized solutions and expands SEZ's reach into new markets.
During the year, SEZ's research activities focused primarily on solutions for critical cleaning and photoresist stripping. These applications have the potential to address markets that up until now have not been addressed – significantly expanding SEZ's sales potential.
Along with these new developments, SEZ continued to optimize its existing systems within the context of its Continuous Improvement Program. Key to this effort, significant attention was given to improving process results, uniformity, repeatability and equipment reliability, while increasing wafer throughput.
Investments
Investments in fixed assets and intangibles dropped by 57.3 percent to CHF 18.0 million. Due to the difficult market situation in 2003, the SEZ Group sharply reduced its investments and concentrated on development machines and prototype systems.
Financial Situation
In 2003, net financial assets increased from CHF 40.4 million to CHF 57.3 million, while net current assets dropped from CHF 121.0 million to CHF 101.4 million. As of December 31, 2003, equity capital stood at CHF 251.7 million (December 31, 2002: CHF 245.1 million) equaling to an equity ratio of 75.5 percent (December 31, 2002: 72.5 percent).
Personnel and Organization
In 2003, the average number of employees decreased by 14.1 percent, from 732 to 629, mainly due to the closing of the Donaueschingen facility, as of June 30, 2003. Personnel expenses were lowered again by 10.9 percent to CHF 54.9 million (2002: CHF 61.6 million). These lower personnel expenses were due to a reduced number of employees along with smaller success-related bonus payouts as a result of the course of business in 2003.
The SEZ Group's corporate culture attaches high significance to maintaining team spirit, and encourages its employees to be entrepreneurial in ways of thinking and personal development growth, in accordance with the corporate vision. SEZ holds regular structured employee interviews and group-wide surveys, which improve motivation and quality of work and supports ongoing employee training.
Business Excellence, Quality and Environment
Based on an integrative understanding – focusing equally on economical, social and ecological factors – SEZ strives to bring added value for all involved parties. The SEZ's high standard of social responsibility was documented in 2003 with its admittance into the Kempen/SNS Smaller Europe SRI Index. The inclusion in the index, which is comprised of European companies with sustainable corporate governance, requires companies to meet strict criteria in corporate ethics, personnel and environmental management standards. SEZ also attaches great importance to quality awareness across all functions of its business. In order to monitor quality costs across the entire value chain, a special Quality Inspection Management System was implemented. ISO 14001, ISO 9001 certification (since 1997 and 1998, respectively) along with environmental compatibility at SEZ's Villach production facility (certified according to the EMAS Directive) form the basis of the company's high quality and ecology standards. In addition, SEZ once again has successfully passed several customer audits during 2003. SEZ publishes an Environmental Report on its production facility in Villach. This report is available to the public upon request.
Corporate Governance
A detailed report on Corporate Governance, which complies with the principles of the SWX Swiss Exchange, is found on pages 19 – 27 of this Annual Report. Additionally, the SEZ Group committed itself to a Code of Conduct in February 2004. This Code constitutes an integral part of responsible corporate governance to which the SEZ Group is committed. All of the SEZ Group's employees are requested to conduct themselves in accordance with these guidelines, and to perform their tasks while invariably adhering to the Code. The Code of Conduct is available to the public and published on the SEZ Group's website at www.sez.com.
Outlook
2004 will offer significant growth opportunities for companies within the semiconductor manufacturing equipment industry. The SEZ Group is committed to taking advantage of this upswing and is armed with a state-of-the-art product portfolio that will allow it to further strengthen its leading position in the single-wafer wet chemical cleaning market. Due to the high market dynamism projected for 2004, SEZ's management is expecting a noticeable growth in earnings with net sales of at least CHF 240 million along with a disproportionately high profit increase.
The strategy to become the industry's most complete supplier of solutions for wetchemical cleaning processes will continue to be the main thrust behind SEZ's business. Moving forward, and employing the principles of its Continuous Improvement Program, SEZ will continue to significantly invest in the necessary resources to enhance and expand upon its product portfolio, while looking at developing the advanced technologies to support critical clean and photoresist stripping applications. The trend to lower production costs for microchips while raising production capacity will increasingly accelerate the introduction of new production technologies. In order to meet the market's high innovation speed, SEZ will also intensify its collaborative development activities with leading industry partners.
With its steadfast commitment, SEZ is ensuring the Group's sustained development, specifically in view of the industrial objective to realize a total single-wafer microchip production.
Market and Market Position
In the financial year 2004, the international semiconductor equipment industry grew by 50 percent to USD 25 billion. The segment for wet surface-cleaning processes relevant to SEZ increased by 58 percent to USD 1.5 billion. With a 79.2 percent increase in net sales, SEZ again managed to far exceed the market, further expanding its market-leading position. Market growth stemmed mainly from foundries in the Asia-Pacific region, as well as from Japanese microchip manufacturers. Additionally, from the second half-year onward, several new projects in the European region provided for an upswing in this market.
The technology transition in the cleaning sector from batch to single-wafer processing technology continued to accelerate throughout the reporting year. Major chipmakers are increasingly replacing multi-wafer systems with single-wafer systems to meet rising quality requirements in microchip production. Initially, logic-chip producers were the primary adopters of single-wafer technology; now, more and more memory chip manufacturers are taking advantage of the superior performance and cost advantages offered by single-wafer wet-cleaning technology. In the reporting year, single-wafer applications accounted for 23 percent of the overall market for wafer surface cleaning.
Due to rapidly increasing miniaturization, larger wafer diameters, the growing number of microchips per wafer, and the use of new materials and technologies, the trend toward single-wafer applications will further accelerate. As the market leader in this segment, SEZ benefits from this trend, especially when it comes to more precise cleaning processes. Propelled by the current industry trend toward increased cost reduction, better yield and high productivity, the Da Vinci series tools far exceeded during the reporting year the expectations at their market launch. By the time the first sales-effective order was booked in the second quarter of 2004, multiple Da Vinci tools had already been installed at customer locations worldwide. For 2005, the Da Vinci product family is expected to represent more than 50 percent of the company's total sales.
Cooperation Ventures and Alliances
In the international semiconductor market, the right partners and alliances are of strategic importance, representing a key prerequisite for keeping pace with the high degree of innovation required by the market. SEZ maintains strong strategic contact with its customers, leading consortia and industrial partners, ensuring the company's ability to develop future process applications, as well as further develop and evolve existing applications.
Research and Development
In the year 2004, SEZ's research and development (R&D) activities focused on the further development of single-wafer applications, with the strategic aim to become the leading supplier of complete solutions for wet-cleaning steps based on single-wafer technology. In total, CHF 45.7 million, or 15.0 percent (prior year: CHF 37.6 million, or 22.1%) of consolidated net sales were spent on R&D. In the reporting year, the completion of the Da Vinci platform—four- and eight-chamber tools for the preparation of 200-mm and 300-mm wafers in high-volume manufacturing—was the main focus of R&D activities. Other activities centered around solutions for critical front-end-of-line (FEOL) cleaning steps and photoresist strip processes to allow SEZ to offer future advanced cleaning solutions. These new tools should contribute to group sales from the year 2006 onward.
Investments
In the reporting year, CHF 25.3 million, or 8.3 percent of net sales (prior year: CHF 18.0 million, or 10.6%), were invested in fixed assets and intangibles. The focus centered on expanding the infrastructure capacity in Villach, Austria, with new training facilities, development labs, and increased production capacity, as well as more than a dozen new systems for demonstration and laboratory purposes. Also, a new development laboratory, focused primarily on back-end applications, was erected in Yokohama, Japan.
Financial Situation
At the end of 2004, net financial assets amounted to CHF 135.7 million, compared with CHF 57.3 million in the previous year, while net current assets totaled CHF 171.3 million, compared with CHF 101.4 million at the end of 2003. With CHF 385.0 million (prior year: CHF 251.7 million), equity capital equaled an equity ratio of 75.7 percent (prior year: 75.5 %).
Personnel and Organization
As a result of powerful, reawakened demand for its technology, the SEZ Group's average number of employees worldwide grew in the reporting year from 629 to 663. Due to the increased staff numbers and success-related bonuses, staff costs rose from CHF 53.4 million to CHF 77.0 million. In the SEZ Group's corporate culture, team spirit, entrepreneurial action, and the encouragement of individual entrepreneurial skills are given great importance. Regular structured employee interviews and employee surveys are held to secure motivation and quality of work and to support effective employee development. The SEZ Group's largest location, SEZ AG in Austria, achieved a top-three ranking in the Europe-wide "Great Place to Work" study, yet again distinguishing itself in a benchmark comparison as one of the most attractive employers in Austria.
Business Excellence, Quality and Environment
The SEZ Group is committed to creating sustained added value for all involved parties, based on an integrative understanding that gives equal importance to economical, social and ecological factors. The high standard of social responsibility is documented by assessments of international funds based on the criteria of business ethics, personnel and environmental management. SEZ also attaches great importance to quality awareness at all corporate levels. In order to monitor quality costs along the entire value chain, the company implemented a special Quality Inspection Management System. Certification to ISO 14001 and to ISO 9001 (established since 1997 and 1998) and validation according to the EMAS Directive (confirming environmental compatibility at the production facility in Villach) form the basis of the SEZ Group's quality and ecology standards.
At the production facility in Villach, SEZ also publishes an Environmental Report, which is available to the public upon request.
Corporate Governance
A detailed Corporate Governance chapter can be found on pages 18 to 27 of this annual report. In addition, the SEZ Group committed itself in February 2004 to a Code of Conduct that constitutes an integral part of responsible corporate governance. All employees of the SEZ Group are asked to conduct themselves in accordance to these guidelines and to perform their tasks while adhering to the code. The Code of Conduct is available to the public on the SEZ Group's website and can also be obtained from the company upon request.
Outlook
For the year 2005, independent market analysts are currently—against originally more pessimistic expectations—anticipating zero growth or a decline of up to 15 percent in the market for semiconductor equipment. Because of its dominant market position, SEZ expects to again exceed overall market performance during the year.
The strategic aim to become a one-stop supplier of wet processing solutions will remain SEZ's key focus in 2005. As part of its Continuous Improvement Program (CIP), SEZ will continue to invest in the further improvement of existing Spin Processors used in Frontend/ back-end-of-line (BEOL) applications, as well as back-end/advanced packaging processes. New R&D activities are focused on Frontend/front-end-of-line (FEOL) tools and applications, which should double the addressable market from business year 2006 onward.
|
|