Comet Holding Ag · SIX:COTN
Comet — Investor Presentation (December 2018)
46 slides from Comet's investor presentation, December 2018
Slide 1: Play on strengths. Improve. Perform
Play on strengths. Improve. Perform Dr. René Lenggenhager, CEO Comet Group Technology with Passion Comet Group | Dezember 2018 1
Slide 2: The Comet Group at a Glance
The Comet Group at a Glance We are a Swiss company with high competency in three leading technologies … Comet Group | Dezember 2018 2
Slide 3: Enabling faster, more efficient processes and safer products
The Comet Group at a Glance … enabling faster, more efficient processes and safer products in many industries RF Power X-Ray ebeam 53% 43% 4% of H1 2018 of H1 2018 of H1 2018 Group sales Group sales Group sales Semiconductors Electronics Food Microchips & Sensors Automotive/Foundries Printing Displa
Slide 4: Positive prospects, solid base
Status Update Positive prospects IXM: new iVario/tube bundle, launches for security market Strong IXS: innovations for Industry 4.0 pipeline + 20 % investments in R&D vs. 2017 PCT: new RF generator Production building expansion FLA completed as enabler of further lean initiatives EBT: Egg Case Profi
Slide 5: Core competencies have made Comet an important partner to key customers
Status Update Thanks to its core competencies, the Comet Group has grown into an important partner to key customers in various industries Strategy 2020 Sales evolution since the company was founded Sales 400 CHFm 300 CHFm IXS acquisitions FeinFocus, Yxlon 200 CHFm Vacuum Capacitors X-ray 100 CHFm Co
Slide 6: Common core competencies across all three technologies
Status Update Common core competencies are instrumental for the leading solutions in all three technologies X-ray RF Power ebeam Technologies Non-destructive testing Treatment of surfaces Computed tomography Plasma control Sterilization Security inspection Inactivation Core competencies High vacuum,
Slide 7: Digitalization will offer even more synergies tomorrow
Status Update Digitalization of products, processes and services will offer even more synergies tomorrow Comet products can create Similar approach for data Our customers’ additional value as sensors science across Comet Group end user goal / data generators (methods, capabilities, data technologies
Slide 8: Similar data processing methods will create more value
Status Update Similar data processing methods / algorithms will create even more value and learning experience between the businesses Group-wide - - - - - - Data processing know-how (in development) - - - - - - «future-ready» excellence Group-wide value-added - - - - - - - - - - - - - - - - - - - -
Slide 9: The Comet Group growth engine
Status Update Strategy 2020 The Comet Group growth engine: Strong and diversified on-going business Comet Group | Dezember 2018 9
Slide 10: Additional levers for growth beyond 2020
Strategy Update Our additional levers for growth beyond 2020 Digitalization Diversification Smart factory Regions Smart products & services Applications Smart processes Products & Services Go-to-Market Speed & Agility Leadership Customer centricity Culture Market access Processes Cross-selling (Lab
Slide 11: Progress on the growth engine across all divisions
Status Update Working on the growth engine we have made progress across all divisions EBEAM PLASMA CONTROL X-RAY X-RAY TECHNOLOGIES TECHNOLOGIES MODULES SYSTEMS Comet Group | Dezember 2018 11
Slide 12: Progress across all divisions, group sales H1 2018
Status Update Working on the growth engine we have made progress across all divisions 15% 28% 4% EBT PCT IXM IXS 53% Sterilization Semiconductors Security Electronics Material modification Microchips & Sensors Aerospace Automotive / Foundries Displays Electronics Aerospace Medical % Group sales H1 2
Slide 13: PCT: Strengths and potential
Status Update On-going business PCT: Current slowdown – But continued high demand for joint development projects; strong drivers based on growing data storage and processing demand % Group sales H1 2018 Addressable market Position One of the leading Current market share suppliers of RF power technol
Slide 14: Manage Profitability
Manage Profitability Current postponement of fab capex projects caused a slow-down in the semi industry Comet with flexible cost base to adapt to market mUSD PCT manages the $3,000 current cycle $2,500 Costs: Reduction of variable costs, e.g. up to 50 % in Flamatt $2,000 Operations: Quick wins with
Slide 15: Demand for semiconductors is basically robust
Growth of data continues Despite current attenuation in the market, demand for semiconductor is basically robust Artificial Intelligence will accelerate the demand for semiconductors Source: Applied Materials model based on forecasts published by Cisco, Intel, Western Digital Comet Group | Dezember
Slide 16: Expanding RF power portfolio from 2D to 3D NAND
Growth Initiatives Example: Expanding RF power portfolio from 2D to 3D NAND Layers Pair Thickness (nm) 140 layer 3D NAND will become a reality by 2021 2D 3D NAND Multiple patterning and 3D NAND high- Opportunity: volume manufacturing have significantly Technology will increased the number of deposit
Slide 17: Interconnected RF unit to solve future challenges
Interconnected RF unit to solve future challenges digital high speed data exchange Future processes in SEMI will require: Integrated RF systems from COMET will offer: advanced RF control systems Data driven process analysis and optimization higher measurement accuracy New features for advanc
Slide 18: PCT priorities to 2020
Status Update PCT priorities to 2020 4 Market intro of new RF generator (for RF power system) 3 Prepare new production facility for next-generation generators 2020 2 Optimize R&D processes for accelerated time to market (Smart lab) 1 Remain preferred innovation partner for key customers Introduce fu
Slide 19: IXS: Strengths and potential
Status Update On-going business IXS: Exciting business with attractive potential % Group sales H1 2018 Addressable market Position One of the leading Current market share suppliers of industrial x-ray systems globally Medical Electronics In-depth expertise in complex 28% Automotive Strengths indus
Slide 20: IXS profit improvement program on track
Status Update IXS profit improvement program on track, increasing agility and strengthening organization for growth from 2020 onwards Status of implementation to achieve 1. Reprioritization EBITDA margin of 6% in 2019 Reprioritization and acceleration of projects to renew product portfolio 2. Workfo
Slide 21: Increase efficiency: two examples of groundwork done
Status Update Increase efficiency: Two examples of important groundwork done to strengthen operations and speed up time to market 1 End-of-line checks about -15% Warranty cost starting end of 2018 about -30%* Throughput time starting end of H1 2019 2 Lean pilot introducing tact End-of-Line Visible e
Slide 22: Portfolio renewal on track, focused pipeline
Status Update Portfolio renewal on track, first positive effects, focused pipeline +80% OI +2 compared to 2017 Global Technology Awards FF 20/35 CT +10% OI vs. old systems First 4 orders new releases for Industry 4.0 Substantial Cheetah / Cougar scheduled for additional new EVO orders from 2020 2019
Slide 23: Digitalization, Big Data and Data Science extend software competencies
Business Development Example: Digitalization, Big Data and Data Science push for extension of competencies in software DATA IS THE NEW OIL AND INTELLIGENT INFORMATION IS THE NEW CURRENCY $ Extract Refine Monetize Hardware Software (Sensor) (Intelligent data) Comet Group | Dezember 2018 23
Slide 24: Creating value from data analysis will allow IXS to expand
X-ray solutions in the digital world: Expanding prospects by changing the perception Creating value from data analysis will allow IXS to expand its business in future Process optimization Enabler for new production methods Metrology IXS | System Business Inspection New capabilities Existing capabili
Slide 25: Additive Manufacturing: support along the process chain
IXS: Enabler for new production methods Additive Manufacturing: Support along the process chain CT enables 3D printing Quality assumption Qualification of powder via CT scan of test pieces Design Manufacturing Quality Control Reverse Engineering Qualification of printing Detection of defects via s
Slide 26: AI prevents defective parts before production
Optimizing customers’ processes Prediction of production process behavior: Artificial intelligence prevents defective parts before production good 29 bad6 1 Trend pattern analysis Comet Group | Dezember 2018 26
Slide 27: IXS priorities 2020
Status Update IXS priorities 2020 4 Enhance data analysis skills to support process improvement for customers 3 Further develop and upgrade metrology as a feature 2020 2 Consistent and timely introduction of planned product releases and upgrades 1 Sustainable development of organization under new le
Slide 28: IXM: Strengths and potential
Status Update On-going business IXM: Well-positioned for continued growth, advancing business under new management since January 2018 % Group sales H1 2018 Addressable market (modules) Position Clear market leader in non- Current market share destructive testing and security with tubes Superior in
Slide 29: Opportunities by exploring the x-ray data chain
Non-Destructive Testing Opportunities by exploring the x-ray data chain Data Detector Information in partnership X-ray systems X-Ray Module Inspected part Comet Group | Dezember 2018 29
Slide 30: The perfect x-ray tube portfolio for security applications
Security The perfect x-ray tube portfolio for security applications Performance optimized New Cost optimized IGX (H1/2019) Goods inspection New optimzed solution for Stand-alone Integrated a price-sensitive market with strong competition Comet Group | Dezember 2018 30
Slide 31: Our success formula: Less is More
IXM Our success formula for the Future – “Less is More” + Product costs Market potential Product footprint Focal spot size Integration efforts Time-to-market - t Comet Group | Dezember 2018 31
Slide 32: IXM priorities to 2020
Status Update IXM priorities to 2020 3 Expand product range to explore new and adjacent markets 2020 2 Launch of cost-optimized security products 1 Exploit existing portfolio to grow with the bundle (tube & generator) Operational excellence; expand lean activities, lead buyer concept, global logisti
Slide 33: EBT: Strengths and potential
Status Update Realigned EBT business: Start-up business based on strong strategic customers and attractive further long-term potential % Group sales H1 2018 Applications Position Future-oriented technology based on Core Existing Next potential solid know-how Only supplier of compact sealed lamp to
Slide 34: EBT: New model with focus on ebeam engines
Status Update EBT: New model with focus on promising ebeam engines FROM TO Addressing OEMs and end customers Addressing OEMs only Reducing losses Development of completely new markets Scaling of existing market access, know-how and products into adjacent applications Sizeable advance investments Ris
Slide 35: Strong partners: Bühler Laatu
Status Update Strong partners: Bühler - LaatuTM, sustainable microbial reduction on dry food using ebeam technology What makes LaatuTM stand apart? • World’s first non-thermal, non-chemical microbial reduction solution • Preserves food quality better than any other technology • Environmentally frien
Slide 36: Tetra Pak: Committed to electron beam technology
Status Update Tetra Pak: Committed to electron beam technology Commercial liquid food packages Cornerstone produced with ebeam technology for the future equipment platform 510 468 1.5 Bio 230 220 133 Hyperspeed E3/Compact E3/Flex E3/Speed ETV Flex Aseptic Chilled Comet Group | Dezember 2018 36
Slide 37: Egg shell sanitation with first positive results
Status Update New promising case: Egg shell sanitation with first positive results Field tests with Bell Food Group Very high bioburden reduction (4-5Log) Spore inactivation (4Log) Indication of lower embryo mortality Indication of improved hatching success Slight indication of improved bo
Slide 38: Focus on scalability, example sterilization
Status Update Focus on scalability, example sterilization Egg shell Egg shell (table) (vaccines) Market Egg shell sanitation (hatching eggs) access Extended partnership Bühler Dry food granulation (Laatu machine) Know-how Fusion of (dose sensors, on-line know-how process control, dosimety) Tetra Pak
Slide 39: EBT priorities to 2020
Status Update EBT priorities to 2020 4 Scale know-how, market access and products Start of risk-adjusted model 3 Develop partnerships with OEMs 2020 2 Continue Egg case 1 Tetra Pak, Bühler and other partners: position EBT as solid and reliable development partner Operational excellence and reliabili
Slide 40: Summary and Outlook
Summary and Outlook Technology with Passion Comet Group | Dezember 2018 40
Slide 41: Strong base; right priorities to 2020
Summary Strong base; right priorities to 2020 Strong base of shared core competencies Strategy 2020 on track; actions taken to address challenges at IXS and EBT Clear priorities to deliver to deliver on 2020 strategy for each division Comet Group | Dezember 2018 41
Slide 42: Well positioned to address attractive market potential
Summary Comet group well positioned to address attractive market potential EBT PCT / IXM / IXS Core/ existing applications Future potential Addressable market Current market share Comet Group | Dezember 2018 42
Slide 43: Outlook
Summary Outlook 2018 Net sales between 430 to 440 and an EBITDA margin between 7 and 9% 2019 and 2020 For 2019 and 2020 the Comet Group is not publishing revenue and EBITDA targets, in view of - the geopolitical uncertainty - the lack of visibility especially in the semiconductor market - the struct
Slide 44: Strategy process
Strategy process Within the usual process in regard to the next period, Comet is working on the longer-term strategy both at the Group level and at the divisions level, both linking closely COMET GROUP PCT IXS Finalize, align, IXM clear with BoD EBT Functional strategies Comet Group | Dezember 2018
Slide 45: Create value-added to 2020 and beyond
Strategy process Create value-added to 2020 and beyond Sales evolution Leveraging Digitalization Diversification Go-to-Market Speed & Agility Attractive potentials based on product portfolio expansion Strong growth drivers Strong core competencies 1948 2018 Comet Group | Dezember 2018 45
Slide 46: Thank you for your interest.
Thank you for your interest. Technology with Passion Comet Group | Dezember 2018 46