Comet Holding Ag · SIX:COTN
Comet — Investor Day (November 2019)
36 slides from Comet's investor day presentation, Nov 21, 2019
Slide 1: Capital Market Day 2019: Boost. Strategy Implementation Program
COMET GROUP CAPITAL MARKET DAY 2019 Strategic roadmap – Growth and efficiency initiatives Boost. Strategy Implementation Program Comet Group | CMD 2019 | November 21 1
Slide 2: Contributing to the data economy
TRENDS Integrated Contributing to the data economy world Autonomous world age 3 2 Most minute parts, extreme data transfer Collaborative efficiency and safety. AI, ML and autonomous economy age Zero-defect mantra. applications - high 1 reliablility, high data storage, advanced data processing. More
Slide 3: Strategic roadmap – Growth and efficiency initiatives
AGENDA Strategic roadmap – Growth and efficiency initiatives Part 1 Comet Group – Ambition and focus H. Kundert Chairman & CEO Part 2 Boost – Growth and efficiency program H. Kundert Chairman & CEO Division strategies and key initiatives M. Kammerer President, PCT Q&A S. Haferl President, IXM T. Wen
Slide 4: Focus – Reducing complexity
COMET GROUP Focus – Reducing complexity Past: Complex Markets Technologies 70% RF power Automotive Security Laser Semi / Electronics X-ray Foundries Semi / Electronics Broadcast Aerospace Automotive Security ebeam Science & Aerospace New Materials Food Comet Group | CMD 2019 | November 21 4
Slide 5: Our Ambition
COMET GROUP Our Ambition: … To be a trusted partner to our stakeholders in PCT sustainable, high-growth markets where we can remain or become number one … To be the technology leader in plasma-related solutions and in x-ray inspection & review systems for non-destructive testing of electronics packa
Slide 6: Strengthen Europe and USA – Expand in Asia
COMET GROUP Strengthen Europe and USA – Expand in Asia PCT >70% of our solutions run in Asia ~1300 13 Employees > 250 R&D experts Locations Comet Group | CMD 2019 | November 21 6
Slide 7: Up to 70% of Comet's future business is in semiconductor market
GROWTH POTENTIAL Up to 70% of Comet’s future business is in semiconductor market Market evolution in semiconductors CAGR of 7.3% 2019-2024 Source: VLSI 700 600 MOS Memory = More RF power solutions 500 needed for sophisticated Market size in production of advanced USDbn MOS Logic 400 microdevices 300
Slide 8: Highest growth rates for RF power subsystems
GROWTH POTENTIAL Highest growth rates for RF power subsystems as critical element for process control in semiconductor manufacturing 50.0% Year over year growth rates 40.0% Electronics 30.0% Semiconductor 20.0% 10.0% Wafer Fab Equipment 0.0% Critical Subsystems RF Power -10.0% Subsystems -20.0% -30.
Slide 9: Where we contribute
COMET GROUP Where we contribute Up to 70% About 30% revenue contribution revenue contribution in future in future Electronics 2.1$t Semiconductor Aerospace, Automotive, Security 407$b Front-& back-end equipment 68.5$b Non-destructive testing X-ray systems Comet Critical sub-systems Comet ~ $2.2b Mar
Slide 10: Comet RF power solutions enable critical plasma processes
COMET RF POWER TECHNOLOGY Comet RF power solutions enable critical plasma processes in the semiconductor industry (PCT) RF power unit Generator Electronics “Matchbox” with vacuum capacitors Microchip Silicon wafer Plasma etching system Comet Group | CMD 2019 | November 21 10
Slide 11: X-Ray Modules: Smart products enabling OEMs' digital solutions
COMET X-RAY TECHNOLOGY X-Ray Modules: Smart products enabling OEMs’ digital solutions (IXM) X-ray modules Generator Manufacturing line X-ray tube Integrated in x-ray system Comet Group | CMD 2019 | November 21 11
Slide 12: X-Ray Systems: Production solutions driven by AI and machine learning
COMET X-RAY TECHNOLOGY X-Ray Systems: Production solutions driven by artificial intelligence and machine learning (IXS) X-ray systems Generator Intelligent manufacturing information system Manufacturing line powered by AI and machine learning X-ray tube Connected x-ray system for production optimiza
Slide 13: State-of-the-art core technology resulting in strong market position
MARKET POSITION State-of-the-art core technology in both RF power and x-ray resulting in strong market position today Plasma Control X-ray Systems X-ray Modules Technologies PCT IXS IXM #1 Top 3 #1 in vacuum capacitors in inline / 3D in x-ray tubes market and matchboxes -- -- -- Poised to grow Poise
Slide 14: Addressable core market of ~CHF 2.5bn by 2025
MARKET FOCUS Addressable core market of ~ CHF 2.5bn by 2025 + CHF 800m + CHF 140m CHF 1.2bn + CHF 50m + CHF 50m + CHF 40m CHF 140m CHF 150m CHF 90m Semiconductor1 Aerospace2 Automotive2 Security2 PCT, IXS, IXM IXS, IXM IXS, IXM IXM Addressable market 2018 2025 Sources: 1 VLSI 2 Comet estimates Comet
Slide 15: Asia as the biggest end-market for our solutions
MARKET FOCUS Asia as the biggest end-market for our solutions Semiconductor revenue by region ~70% of our plasma & x-ray solutions run in Asia Source: PwC Research: Opportunities for the global semiconductor market report Comet Group | CMD 2019 | November 21 15
Slide 16: Strengthening our presence in Asia and accelerating R&D
MARKET FOCUS Strengthening our presence in Asia and accelerating R&D in all regions Copenhagen, DK Hamburg, DE Suwon Stolberg, DE KR Flamatt , CH Technology R&D Center Core technology/ Shanghai production CN San Jose US Production R&D New product development/ production Penang MY Facility planned Sa
Slide 17: Strategic roadmap – Growth and efficiency initiatives
AGENDA Strategic roadmap – Growth and efficiency initiatives Part 1 Comet Group – Ambition and focus H. Kundert Chairman & CEO Part 2 Boost – Growth and efficiency program H. Kundert Chairman & CEO Division strategies and key initiatives M. Kammerer President, PCT Q&A S. Haferl President, IXM T. Wen
Slide 18: Boost. Strategy implementation and efficiency program
Strategy implementation and efficiency program Boost. Comet Group | CMD 2019 | November 21 18
Slide 19: Create a high-performance organization
BOOST Create a high-performance organization Boost Growth Creating a Boost high-performance Efficiency organization Boost Culture Comet Group | CMD 2019 | November 21 19
Slide 20: 20 initiatives to drive success via 3 key levers
BOOST 20 initiatives to drive success via 3 key levers Boost Boost Boost Growth Efficiency Culture • Strengthen AI, ML and big data • Adapt operational model • Collaboration and speed analysis • Operational performance • Digital mindset • Expand product portfolio • Make-or-buy decisions • Customer f
Slide 21: Financial ambition 2025
BOOST Financial ambition 2025 CAGR of EBITDA of ROCE of ~15% ~25% ~30% Comet Group | CMD 2019 | November 21 21
Slide 22: What it means for our divisions
BOOST What it means for our divisions Plasma X-ray X-ray Control Systems Modules Technologies IXS IXM PCT Strengthen. Focus. Full potential. Increase share of wallet, new Focus on volume markets, Address new segments in adjacent applications and higher flexibility. standardized systems, drive market
Slide 23: PCT: Above-average growth thanks to share of wallet, new products and Asia
BOOST PCT: Above-average growth thanks to increased share of wallet, new products and strengthened Asia presence 2018 – Market size of ~ USD 1bn 2025 – Market size of USD 1.3-1.5bn 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% Other 50% 50% Other 40% 40% Semiconductor Display Display 30% 30% Semiconduct
Slide 24: PCT will expand its product portfolio
BOOST KEY INITIATIVE PCT will expand its product portfolio to continue the successful forward integration Sales evolution of PCT Success factors Strong customer Forward integration collaboration with Generators Leverage strong position in match / vaccap market Forward integration Modularizatio
Slide 25: Expanding presence in Asia to win attractive new business
BOOST KEY INITIATIVE Expanding presence in Asia to win attractive new business, increase flexibility and cost effectiveness Comet will establish a new legal entity and partner with a local specialist Matchbox assembly to be started in H2 2020 Penang, MY New Entity Comet Group | CMD 2019 | November 2
Slide 26: IXS: Ambition to become the production partner of choice
BOOST IXS: Ambition to become the production partner of choice and achieve 20% EBITDA margin in high-growth, high-volume markets 2018 – Market size of ~ CHF 780m 2025 – Market size of ~ CHF 800m 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% + 75% 50% 50% 40% 40% 30% 30% 20% 20% 27% 30% 10% 18% 10% 20% 1
Slide 27: 2025: IXS offers standard products and highly profitable individual services
BOOST KEY INITIATIVE 2025: IXS offers standard products and highly profitable individual services Digitalization of assets an important element of the strategy 2019 2025 Markets Product Service Modules Automotive Semi/ Electronics Semi / Electronics Customized systems Technical Foundries support Sci
Slide 28: AI / Machine learning as enabler for new capabilities based on data
BOOST KEY INITIATIVE AI / Machine learning as enabler for new capabilities based on data 3D data set of complex Segmentation material sample 2 1 of metal shell (1) FF65 of fiber structure (2) Today Tomorrow Comet Group | CMD 2019 | November 21 28
Slide 29: IXM: Ambition to leverage potential in metal ceramic-based x-ray module market
BOOST IXM: Ambition to leverage attractive potential in the metal ceramic-based x-ray module market 2018 - Market size of USD 280m 2025 - Market size of USD 500m 100% 100% 90% 90% 80% 80% 70% 70% Other 60% Other 60% NDT 50% 50% NDT 40% 40% Security Market 30% Security 30% entry 20% 20% Semi / Electr
Slide 30: IXM: Product Portfolio for Growth – Product Releases 2020
BOOST KEY INITIATIVE IXM: Product Portfolio for Growth – Product Releases 2020 Xplorer ION iXRS-225 MesoFocus Product Type: Micro Focus X-ray module Product Type: X-ray Module Product Type: iXRS Module Applications: Electronics Inspection Applications: Security Applications: NDT / Miniaturization Co
Slide 31: Roadmap – Growth and efficiency initiatives
AGENDA Roadmap – Growth and efficiency initiatives Part 1 Comet Group – Ambition and focus H. Kundert Chairman & CEO Part 2 Boost – Growth and efficiency program H. Kundert Chairman & CEO Division strategies and key initiatives M. Kammerer President, PCT Q&A S. Haferl President, IXM T. Wenzel Presid
Slide 32: Comet Group – a pioneering technology leader in RF power & x-ray
SUMMARY Comet Group – a pioneering technology leader in RF power & x-ray poised to exploit its full potential Attractive high-volume growth “Boost” strategy Focused portfolio markets implementation program ~15% CAGR Boost Growth 7% CAGR ~25% Boost Efficiency EBITDA Semiconductor Boost Culture ~30% R
Slide 33: 2019 guidance confirmed
OUTLOOK 2019 guidance confirmed Net sales in CHFm EBITDA margin in % 350 to 370 2019E 7.0 to 8.5 Comet Group | CMD 2019 | November 21 33
Slide 34: Thank you for your interest
COMET GROUP CMD 2019 Thank you for your interest Comet Group | CMD 2019 | November 21 34
Slide 35: Financial calendar for the Comet Group
Financial calendar for the Comet Group March 19, 2020 Publication of 2019 report April 23, 2020 Annual shareholder meeting in Berne More details on our business performance and financial results: http://www.comet-group.com Ines Najorka ir@comet-group.com VP Corp. Communications T + 41 31 744 99 96 C
Slide 36: Disclaimer
Disclaimer This document contains forward-looking statements about the Comet Group that may be subject to uncertainty and risk. Readers should therefore be aware that such statements may deviate from actual future outcomes or events. Forward-looking statements in this document are projections of pos