Jenoptik Ag · XETR:JEN
Jenoptik — Investor Day (December 2023)
71 slides from Jenoptik's investor day presentation, Dec 1, 2023
Slide 1: Jenoptik Capital Markets Day 2023
Jenoptik Capital Markets Day 2023 December 1, 2023, Start: 9:00 a.m. CET
Slide 2: Agenda
Agenda 09:00 Welcome – Andreas Theisen 09:05 Strategy Execution Update – Dr. Stefan Traeger 09:40 We make roads and cities safer – growth platform Smart Mobility – Kevin Chevis 10:00 Q+A session 10:20 Coffee Break 10:50 We enable the digital age – growth platform Semi – Dr. Ralf Kuschnereit 11:20 We
Slide 3: Disclaimer
Disclaimer This presentation can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the
Slide 4: Photonics is the Mastery of Light! Strategy Execution Update
Taking a broader view: Photonics is the Mastery of Light! Jenoptik’s profound business transformation has been successfully executed What has changed? − An industrial conglomerate has been Ourturned Mission into a leading photonics company The Leading Light − Jenoptik today is not just more focused
Slide 5: We enable the digital age
We enable the digital age 1/12/2023 Jenoptik Capital Markets Day 2023 5
Slide 6: We enable modern communication
We enable modern communication Picture: Adobe Stock 1/12/2023 Jenoptik Capital Markets Day 2023 6
Slide 7: We drive life science and healthcare development
We drive life science and healthcare development 1/12/2023 Jenoptik Capital Markets Day 2023 7
Slide 8: We make roads and cities safer
We make roads and cities safer Picture: Adobe Stock 1/12/2023 Jenoptik Capital Markets Day 2023 8
Slide 9: Significant share of revenue generated in our attractive three core markets
Significant share of revenue generated in our attractive three core markets Semiconductor & Life Science & Smart Mobility Electronics Medical Technology Revenue share substantially increased through organic growth and acquisitions − Growth of core markets >GDP growth − Differentiation through our co
Slide 10: Jenoptik’s profound business transformation has been successfully executed
Taking a broader view: Jenoptik’s profound business transformation has been successfully executed Jenoptik development (million euros) What has changed? CAGR ~7% − An industrial conglomerate has been turned into a 1,050-1,100 leading photonics company − Jenoptik today is not just more focused 685 Co
Slide 11: It’s all about customers
It’s all about customers: Proven strategy of focusing on key customers by deepening relationships Share of top key accounts 1,050-1,100 − “Grow share of wallet” strategy with market leading key customers worked well − Expand partnership positions 685 (joint R&D roadmaps and beyond) − Business with h
Slide 12: Status quo at mid-stage of our “More Value 2025” agenda
Status quo at mid-stage of our “More Value 2025” agenda: Successful execution, both from a portfolio as well as from a financial perspective Portfolio transformation − Defense business divested; photonic businesses strengthened through acquisitions − Substantially increased share of revenue generate
Slide 13: Strong value proposition: photonics expertise and customer relationships
Strong value proposition: Leading photonics expertise combined with strong customer relationships Customer access / relationship Technology Industrial Joint R&D Shared R&D Designed-in Application Manufacturing manufacturing programmes roadmaps solutions excellence capacity know-how Evolution Supplie
Slide 14: Priorities shift from portfolio transformation and M&A to organic growth
Priorities shift from portfolio transformation and M&A to organic growth and operational excellence Priorities 2017-2023 Priorities to 2025 Growth M&A & organic growth Organic growth driver Jenoptik today: Business Series of M&A for Leveraging growth Operational excellence focus portfolio transforma
Slide 15: Become more focused: Dissolving regional matrix & verticalize functions
Become more focused: Dissolving regional matrix & verticalize functions 2024 | Verticalize Advanced Photonic Solutions Division Contribution to future success Advanced Photonic Solutions Smart Mob. Solutions MORE customer focus MORE direct business responsibility MORE efficiency 1/12/2023 Jenoptik C
Slide 16: Innovation remains a major driver for Jenoptik
Innovation remains a major driver for Jenoptik − Continue to allocate substantial funds into R&D − Seek to enhance innovation management to ▪ become leaner and faster ▪ more flexible ▪ more integrated (e.g. tech scouting) 1/12/2023 Jenoptik Capital Markets Day 2023 16
Slide 17: NPC segment: Strategic plan remains unchanged to be dissolved by 2025
NPC segment: Strategic plan remains unchanged to be dissolved by 2025 Prodomax (automation solutions) HOMMEL ETAMIC (industrial metrology) − To be disposed within the current strategy period − Optical, tactile and pneumatic measuring systems − Business to be developed either internally or externally
Slide 18: Main initiatives to drive future growth and profitability
Main initiatives to drive future growth and profitability − Continue successful “grow share of wallet” strategy − Realize growth opportunities in new application areas and regions 2025 updated financial targets − Increased customer focus supported by simplified organization Revenue of − Expansion of
Slide 19: Smart Mobility Solutions: We make roads and cities safer
Smart Mobility Solutions: We make roads and cities safer Picture: Adobe Stock Kevin Chevis 1/12/2023 Jenoptik Capital Markets Day 2023 19
Slide 20: Smart Mobility Solutions: Key competences and strategy
Smart Mobility Solutions: Key competences and strategy Our competence − We solve complicated problems for our clients, using our in-depth photonics expertise − We have a longstanding and intimate knowledge of their requirements, where technology performance is critical to the outcome − We design and
Slide 21: Leading cause of death in 5–29 year olds
Every 24 seconds someone in the world dies 50m people injured per year Leading cause of death in 5 – 29 year olds 8th leading cause of death Motor vehicles are also used to commit crime The world has to reduce emissions Road safety has to be improved everywhere 1/12/2023 Jenoptik Capital Markets Day
Slide 22: Provider of photonics-based road traffic solutions for safety and security
Provider of photonics-based road traffic solutions for safety and security Own locations Key facts Headquarters – Mohnheim, Germany − Revenue 2022: ~114 million euros (thereof ~40% recurring) − EBITDA margin 2022: ~17% − ~490 employees Business profile Local presence − Operating in 3 key segments of
Slide 23: Smart Mobility Solutions addresses a growing market
Smart Mobility Solutions addresses a growing market Growth drivers Our response − New applications such as distracted driving − Increasing use of video analytics and enforcement or moving vehicle offences artificial intelligence along with sensor fusion − Extended service operations − Gradual move f
Slide 24: Mobility of the future will require smart infrastructure applications
Mobility of the future will require smart infrastructure applications combining both, enforcement and intersection management Intersection 2010 Intersection 2020 Intersection of the future − Speed & Red-light Enforcement − Speed & Red-light Enforcement − Speed & Redlight Enforcement − Additional fea
Slide 25: Main levers for future profitable growth
Main levers for future profitable growth Continue building up business Expand market reach by extended Drive adoptions in the Americas services of new applications − Significant pipeline built, esp. for Traffic − Further grow existing business by extended − Enhanced features (e.g. moving vehicle Ser
Slide 26: Our strategy is underpinned by the following key actions
Our strategy is underpinned by the following key actions Key initiatives for continued profitable growth − Grow own business in the Americas, by moving up the value chain gaining a much greater share of the wallet in service provision − Further grow recurring revenues and expand market reach globall
Slide 27: Q&A session
Jenoptik Capital Markets Day 2023 – Q&A session If you want to ask a question, please send it to sabine.barnekow@jenoptik.com © Copyright Jenoptik. All rights reserved.
Slide 28: Break
Jenoptik Capital Markets Day 2023 Break – the webcast will be continued at approx. 11:00 a.m. CET © Copyright Jenoptik. All rights reserved.
Slide 29: Advanced Photonic Solutions Division
Advanced Photonic Solutions Division Dr. Ralf Kuschnereit 1/12/2023 Jenoptik Capital Markets Day 2023 29
Slide 30: Advanced Photonic Solutions: The partner for performance-critical photonic solutions
Advanced Photonic Solutions: The partner for performance-critical photonic solutions Business profile Core Markets Division bundles all B2B photonics activities Global supplier of photonic-based Life Science & Semiconductor Electronics components, modules, and machines Medical Technology Market posi
Slide 31: Our business model: Broad & leading technology basis focused on attractive markets
Our business model: Broad & leading technology basis focused on attractive markets Industrial Performance critical Application Manufacturing Technology manufacturing components, know how capacity know how modules, & machines Semiconductor equipment Life Science & Medical Technology Electronics − Mic
Slide 32: We drive growth by leveraging deep relationships with industry leaders
We drive growth by leveraging our deep relationships with industry leaders Share of top key accounts of APS division Customer relationships − Our key customers are leaders in their individual markets − Dedicated key account management, collaboration typically starts at R&D stage − Adding our experti
Slide 33: We enable the digital age
We enable the digital age 1/12/2023 Jenoptik Capital Markets Day 2023 33
Slide 34: Strongly rooted in IC lithography and IC inspection
Strongly rooted in main applications IC lithography and IC inspection Semiconductor Markets equipment − Supplier to global semiconductor equipment OEM manufacturers Main − Designed-in optical and micro-optical components and subsystems characteristics − Few key accounts / deep & long-term customer r
Slide 35: Our products are integral part of our customers’ products
Our products are integral part of our customers‘ products Support of main functionalities in current and next generation systems IC inspection systems DUV & EUV IC lithography systems Micro-optical components Micro-optical components Optical components & modules Optical components & modules Integrat
Slide 36: Semiconductor market expectations: around 1 trillion USD of chip sales by 2030
Semiconductor market expectations remain unchanged: Around 1 trillion USD of chip sales by 2030 Semiconductor chips revenue1 Fundamental trends fueling market growth remain (billion USD) solid despite current downturn: 1200 CAGR ~7% − Connected world 1000 ▪ Artificial Intelligence & cloud infrastruc
Slide 37: Strong strategic partnerships are key to developing our business
Strong strategic partnerships are key to successfully develop our business Our strategic approaches turned into success for the majority of our main semi customers Key drivers for success − Focused key account management − Enhanced design expertise & development excellence − Specialized & flexible m
Slide 38: Major investment into organic growth: new semi fab in Dresden
Major investment into organic growth: new semi fab in Dresden Highlights − High-tech fab for micro-optics and sensors, mainly used in lithography systems − 11,000 square meters of net floor space, including 2,000 square meters for clean room production (ISO 5 and 3) − Production start planned for ea
Slide 39: We drive life science and healthcare development
We drive life science and healthcare development 1/12/2023 Jenoptik Capital Markets Day 2023 39
Slide 40: Platform substantially expanded through acquisition of BG Medical
Platform substantially expanded through acquisition of BG Medical Markets Medical Technology Life Science − Supplier of components & modules to global OEM manufacturers Main − Mostly designed-in microscope cameras, imaging solutions, optical components, and diode lasers characteristics − Regulatory
Slide 41: Technological sweet spot combines photonics and assembly expertise
Technological sweet spot combines our photonics and assembly expertise Life Sciences & MedTech value chain Business model − Photonic technology is at the core of many systems of major Life Science & MedTech OEM’s Labs Companies Academia Clinics − Jenoptik’s core competencies: photonics technology an
Slide 42: We are enabling medical innovations
We are enabling medical innovations Project A Project B Revolutionizing surgical microscopy Bringing multiparametric endoscopy to the operating room A robotic exoscope Multi-spectral endoscope − System: rMSI1 technology − System: Innovative robotic exoscope with combining standard white light advanc
Slide 43: Our approach to gain share of wallet
Our approach to gain share of wallet Quality Relations Price R&D Delivery Maintain quality Increase customer Constantly improve Invest in R&D capabilities Improve on-time, leadership engagement; enhance cost structures by to drive strategic accurate and flexible in terms of product understanding of
Slide 44: New factory in Berlin provides substantial organic growth opportunities
New factory in Berlin provides substantial organic growth opportunities Highlights − State-of-the-art production facilities to develop and manufacture optical components and systems especially for dentistry (intraoral scanners) and robot-assisted surgery − 2,100 m² of floor space, including >1,000 m
Slide 45: See the difference
See the difference
Slide 46: A global leader for optical metrology equipment
A global leader for optical metrology equipment Markets Electronics − Provider of optical measurement, testing and manufacturing solutions Main − Strength in measuring speed & accuracy for high-volume production characteristics − Broad customer base Smartphones Extended reality ADAS Optical manufact
Slide 47: TRIOPTICS provides the gold standard for image quality testing of smartphone lenses
TRIOPTICS provides the gold standard for image quality testing of smartphone lenses Image: https://www.nextpit.de/beste-smartphone-kamera 1/12/2023 Jenoptik Capital Markets Day 2023 47
Slide 48: Shifts in the smartphone ecosystem lead to new opportunities
Shifts in the smartphone ecosystem lead to new opportunities in test & measurement Trends Technology Test & Measurement Social media photography Telephoto and zoom optics High measurement point density for narrow field of view User experience & safe ID 3D sensing Infrared metrology, short finite obj
Slide 49: AR/VR volumes are projected to grow despite slower adoption
Despite slower than expected mass market adoption of AR/VR, volumes are projected to grow significantly1 Status: Slower than expected market adoption Perspective: Important playfield for TRIOPTICS − Adoption hindered by unsatisfactory user experience, high costs, − Key players continue substantial i
Slide 50: AR/VR: extended reality is at a turning point
Driven by a wide range of applications extended reality is at a turning point e-Commerce Entertainment − 70% of Americans believe AR will become part of their everyday life Travel & Tourism AR/VR Healthcare devices − 46.8% expected yoy growth in AR/VR are the top headset shipments on new hardware Au
Slide 51: Unique positioning for testing AR/VR components
Embracing both optics and display technologies: We have unique positioning for testing AR/VR components Optics Display Measurement technologies Measurement technologies TRIOPTICS Adjacent core technology technology − Color measurements, − MTF & OTF measurements uniformity, Color Gamut, color volume
Slide 52: ADAS solutions portfolio
Number of vehicles with ADAS/AD expected to grow by 11% CAGR1 Strong portfolio of solutions developed to address the ADAS market Dedicated product Market drivers Key requirements portfolio from Lab to Fab Consumer preferences − Lens quality check, optical alignment, High Demand for comfortable & saf
Slide 53: TRIOPTICS has a balanced portfolio across mature and emerging markets
TRIOPTICS has a balanced portfolio, with revenues diversified across both mature and emerging markets Life cycle stage of TRIOPTICS’ end-markets Maturity Growth Introduction AR/VR/MR ADAS Smartphone Rapidly evolving technology Demand for ADAS sensors exceeding growth of Consolidated industry with in
Slide 54: Advanced Photonic Solutions Initiatives & Key Messages
Advanced Photonic Solutions Initiatives & Key Messages 1/12/2023 Jenoptik Capital Markets Day 2023 54
Slide 55: Key initiatives to drive organic growth
Key initiatives to drive organic growth − Continue successful “grow share of wallet”-strategy Customer − Work with few selected start-ups that offer disruption potential centricity − Increase customer focus and efficiency through de-layering APS organization to support global key account management
Slide 56: Key messages: Strong foundation for continued profitable growth created
Key messages: Strong foundation for continued profitable growth created − Sound business model based on strong & broad technological competences and trusted long-term customer relationships − Performance-critical, value-add and mainly designed-in photonic solutions directed at attractive growth mark
Slide 57: Financials
Financials Dr. Prisca Havranek-Kosicek © Copyright Jenoptik. All rights reserved.
Slide 58: Strong growth platforms drive organic growth ahead of mid-term plan
Strong growth platforms drive organic growth ahead of mid-term plan Organic growth evolution Key drivers CAGR ~10% − Revenue share in core growth markets Semi and Life Science & MedTech substantially increased − Strength in technology and deep customer relationships key CAGR ~5% to accelerated organ
Slide 59: Profitability expanded faster than originally expected
Profitability expanded faster than originally expected on organic growth EBITDA & EBITDA margin evolution Key drivers 250 18.8% ~19.5% − Significant EBITDA margin improvement of 200 ~140 bps p.a. on average since FY 2021 COVID pandemic impacts 150 16.7%1 − Product mix represents the main driver to m
Slide 60: Sound foundation for future profitable growth created
Sound foundation for future profitable growth created Our focused portfolio enables mid-term average high-single digit organic revenue growth driven by − Above-GDP growth (average) of our core end markets − Gaining share of wallet with our strong customer base through Growth − Benefiting by supporti
Slide 61: Capital allocation priorities focus on organic growth
Capital allocation priorities in current strategy period focus on organic growth Capital allocation New capital allocation priorities 2018 – 2023E ~9% ~61% 1 Investment into organic growth (Capex, R&D) ~1bn euros of capital allocated 2018 – 2023E 2 Return to shareholders ~30% M&A CAPEX Dividends 3 B
Slide 62: Substantial investments to support organic growth
Substantial investments to support organic growth Significant investments into production capacities New fab in Dresden − Doubling production with new micro-optics cleanroom fab (LEED certified) in Dresden, Germany; production start in 2025 − New biophotonics production site in Berlin inaugurated in
Slide 63: Leverage considerably reduced despite high capex demands
Leverage considerably reduced despite high capex demands Key financial indicators Net debt and net debt to EBITDA1 4,0 700 Acquisition Acquisition Jenoptik Group 9M 2023 TRIOPTICS BG Medical/SwissOptic 3,5 600 3,0 500 Equity ratio 52.3% 2,5 400 2,0 300 Net debt in million euros 489.3 1,5 200 1,0 100
Slide 64: Flexible financing in place
Flexible financing in place Key financing instruments Maturity profile of financing instruments in million euros1 − Financing consists of 10 debenture bonds with ESG 300 components totaling ~375 million euros 250 − Substantial financing capacities available based on 200 undrawn credit facilities (~3
Slide 65: Revenue target for 2025 confirmed
Revenue target for 2025 confirmed: higher organic growth & lower M&A contribution Updated growth model for 2025 Key assumptions ~1.2 (change vs. 2021 model): 0.9 − No significant revenue contribution from additional acquisitions BGSO* − Organic growth stronger than expected, particularly in Semi 202
Slide 66: Financial 2025 targets upgraded
Financial 2025 targets upgraded despite weak near-term macro-economic outlook & higher market volatility 2021 (incl. VINC) 2025 Target 2025 Target updated ~1.2 billion euros ~1.2 billion euros Revenues 895.7million euros - divestments + acquisitions (current portfolio) EBITDA margin 16.4%1 ~20% ~21%
Slide 67: Continued focus on sustainability
Continued focus on sustainability: Non-financials 2025 partly reached Partnership Jenoptik‘s Selected theme KPI 2022 Target 2025 for the goals sustainability ratings Share of green 85.4% (75%) New >90% electricity Environment CO2 reduction 35.9% (30%) New >55% Diversity rate 30.6% 33% (unchanged) 12
Slide 68: Key Messages
Key Messages − Strong growth platforms drive organic growth ahead of mid-term plan − Profitability expanded faster than originally expected − Sound foundation for future profitable growth created − Capital allocation priorities on capex − Very solid financial position retained through portfolio tran
Slide 69: Capital Markets Day 2023 - Summary
Taking a broader view: Photonics is the mastery of light! Jenoptik’s profound business transformation has been successfully executed What has changed? − An industrial conglomerate has been Ourturned Mission into a leading photonics company The Leading Light − Jenoptik today is not just more focused
Slide 70: Focus on profitable organic growth by leveraging growth platforms
Focus on profitable organic growth by leveraging well established growth platforms Mid-term profile − Profound portfolio transformation largely completed; NPC segment: strategic plan remains unchanged Continue to grow revenue share − Continue successful “grow share of wallet” strategy with market wi
Slide 71: Q&A session
Jenoptik Capital Markets Day 2023 – Q&A session If you want to ask a question, please send it to sabine.barnekow@jenoptik.com © Copyright Jenoptik. All rights reserved.