Comet Holding Ag · SIX:COTN
Comet — Investor Day (November 2022)
57 slides from Comet's investor day presentation, Nov 16, 2022
Slide 1: Welcome to Comet's Capital Markets Day
Welcome to Comet’s Capital Markets Day November 16, 2022 Zurich, Switzerland
Slide 2: Cautionary statement regarding Forward Looking Statements
Cautionary statement regarding Forward Looking Statements 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 st
Slide 3: Capital Markets Day 2022: managing volatility over the cycles
Capital Markets Day 2022: managing volatility over the cycles November 16, 2022 Stephan Haferl, CEO
Slide 4: Focus strategy is showing results
Focus strategy is showing results Strategic focus Boost program Efficiency 1 company 2 core technologies Growth Boost. 3 divisions 4 primary end markets with a focus on semi/electronics Culture Comet CMD 2022 11/16/2022 4
Slide 5: Leading market positions in RF power delivery and x-ray technology
Leading market positions in radio-frequency (RF) power delivery and x-ray technology Plasma-Control Technologies Industrial X-Ray Systems Industrial X-Ray Modules #1 Top 3 #1 in vacuum capacitors in served markets in metal ceramic x-ray tubes and matchboxes 59% 28% 13% of Group sales FY21 of Group s
Slide 6: Global presence close to our customers
Global presence close to our customers 42% 15% 41% of 2021 of 2021 group sales of 2021 group sales group sales Taastrup (Den) Aachen (Ger) Hamburg (Ger) Montreal (Canada) Flamatt (CH), HQ Suwon (KOR) San José (USA) Beijing (CHN) Shelton (USA) Yokohama (JPN) Shanghai (CHN) Hsinchu (TWN) Employees >15
Slide 7: Well positioned to benefit from growth in our target markets
Well positioned to benefit from growth in our target markets
Slide 8: A vital role in the global semiconductor value chain: TAM of USD 2.0 bn
A vital role in the global semiconductor value chain: total available market (TAM) of USD 2.0 bn 02 02 02 Radio-frequency Wafer fabrication Microchip Electronics power subsystems equipment manufacturers manufacturers Market size (2022e) Market size (2022e) Market size (2022e) Market size (2022e) USD
Slide 9: Comet covers the semi/electronics value chain from front-end to back-end
Comet: a group that covers the semi / electronics value chain from the front-end to the back-end Semiconductor value chain Front-end: Back-end: Fabrication from a blank to a completed wafer Inspection of semiconductors and electronic components Comet at the heart of microchip production Watch the vi
Slide 10: Structural long-term demand growth for microchips remains unbroken
Structural long-term demand growth for microchips remains unbroken with diversification of end markets Worldwide semiconductor revenues estimated to exceed USD 1 trillion by 2030 • Semi demand fueled by data- driven economy and AI • Cyclical semi downturn pulled > 1,000 forward from 2024 to 2023 Sem
Slide 11: Diminished influence of memory and consumer-driven end markets
Diminished influence of memory and consumer-driven end markets compared with previous years Semiconductor revenues 2022e by end market WFE spend by device type • Macro uncertainty weighs on consumer electronics, smart Automotive Electronics phones, PCs PCs & Ultramobiles Industrial & Military/ • Non
Slide 12: Leading semiconductor manufacturers' aggressive process roadmaps fueling growth
Leading semiconductor manufacturers’ aggressive process roadmaps fueling growth forward 2022 2023 2024 2025 2022 2023 2024 2025 2022 2023 2024 2025 Denser design libraries Angstrom era SF2 Increased transistor drive Nanosheet current Reduced Via Intel GAA SF3 SF3P resistance NEXT FinFET MBCFET 3GAP
Slide 13: Chip complexity requires more plasma-based equipment and RF power subsystems
Chip (device) complexity requires more plasma-based equipment and RF power subsystems RF Power Ratio to WFE • WFE spend forecasts yoy*: 2022: 9.1% / 2023: -13.5% Shift from ~1.6% to ~2.0% BOM 2.5% • Bill of materials for RF 2.0% subsystems per production unit increasing: 1.5% ~1% of BOM − complexity
Slide 14: Transition to electric vehicles opens attractive entry point
Transition to electric vehicles opens attractive entry point Global light vehicles production forecast (million units and yoy growth) • CAGR 2021 to 2025e: approx. 5% Internal Combustion Engine Electric Vehicle + Plug-in Hybrid Electric Vehicle 100 • Accelerated transition 2.1% towards EVs 4.9% 90 8
Slide 15: Average semiconductor content per vehicle expected to exceed USD 1,000 by 2026
Average semiconductor content per vehicle expected to exceed USD 1,000 by 2026 Automotive industry: microchips revenues >USD 100bn by 2030 Opportunities: 160 1,441 • Significantly higher microchips Semiconductor revenues automotive (in USD bn) 140 value in EVs Average semiconductor content per vehic
Slide 16: Aerospace and security markets have embarked on a solid recovery path
Aerospace and security markets have embarked on a solid recovery path Global monthly air traffic revenue passenger kilometers • Air Traffic Volumes (ATV): forecast to return to 2019 levels by 2024 120% • Forecast CAGR 2024 to 2030: 100% 5.3% 80% • Strong correlation between ATVs and IXS/IXM sales in
Slide 17: TAM and SAM have further increased, semi and electronics driving growth
TAM and SAM have further increased, semi and electronics driving growth 6% 6% 2021 6% 2025 2% 7% 3% 5% 6% 1.5 x 7% USD TAM CMD 2021: TAM USD 7% 2020: USD 2.9 bn 3.4bn 69% 5.2bn 69% 2025: USD 4.5 bn 72% 74% 7% 5% 8% 1% 15% 3% 6% 2.8 x 2% SAM USD SAM CMD 2021: USD 2020: USD 0.9 bn 4% 1.0bn 69% 69% 60%
Slide 18: Consistently pursuing our medium-term goals
Consistently pursuing our medium-term goals
Slide 19: Focus strategy confirmed
Focus strategy confirmed Growth ambitions based on a sound strategic framework Further expand Contribute to our customers’ success & semi focused Growth create value for all our stakeholders product portfolio Operating as a high-performing and scalable organization Further develop a robust and lean
Slide 20: Proximity to customer, production, R&D: expansion laying the foundation for growth
Proximity to customer, production, R&D: expansion laying the foundation for future growth Expansion focus on fast growing Asian markets Preparing for further growth 2019 2020 2021 2022 2023+ Aachen Montreal, Suwon, Hsinchu, Yokohama, Penang, Flamatt, Shanghai, San Jose: consolidation of 4 sites Germ
Slide 21: Penang: a crucial step towards our 2025 targets
Penang: a crucial step towards our 2025 targets Move of global high-volume matchbox assembly from San Jose to Penang progressing, completed by mid-2023 San Jose Penang high-volume production This stays in SJ: Major driver for 2025 targets achievement R&D: Innovation Center Lab One Close to Asian gro
Slide 22: PCT: successful Synertia launch
PCT: successful Synertia® launch Simplified schematic view of Synertia® development Synertia® RFG Products with different frequencies and phase 1 power levels from low to medium Synertia® RFG phase 2 Products with higher power Synertia® RFM Match specific development to enable interlinked RF system
Slide 23: IXS: portfolio transformation on track
IXS: portfolio transformation on track • Progressed in strategy execution: number of hardware and software platforms reduced to targeted level • Enhance productivity at customers through integration of AI-based visualization software well on track with first launches in 2022 • Focus on high-growth s
Slide 24: IXM: grown market position in semi/electronics, battery
IXM: grown market position in semi/ electronics, battery • New products: 13% of Division sales in 2022e • Market share grown in semi/electronics • Sales/marketing activities in focus market Asia ramped up • Strong entry into battery market based on MesoFocus platform Comet CMD 2022 11/16/2022 24
Slide 25: Summary and outlook
Summary and outlook
Slide 26: Challenges have intensified, multiple opportunities remain
Challenges have intensified, multiple opportunities remain New products Recruiting and markets Retention Financial Trade flexibility conflicts Challenges Supply Long-term chain favorable markets Opportunities Energy Mindset costs / shortages change Armed Regional semiconductor conflicts manufacturin
Slide 27: Comet's focus strategy has proven to be the right path to achieve our 2025 targets
Comet's focus strategy has proven to be the right path to achieve our 2025 targets. group
Slide 28: Financials
Financials November 16, 2022 Lisa Pataki, CFO
Slide 29: Continued focus on growth drivers, operating leverage and capital deployment
Continued focus on growth drivers, operating leverage and capital deployment OPERATING CAPITAL GROWTH RESILIENCY ALLOCATION LEVERAGE • Industry growth drives • Committed to operational • Strengthened balance sheet • Strategic capital allocation to demand for Comet’s excellence absorbs business cycle
Slide 30: Progress towards 2025 target model
Progress towards 2025 target model Net sales EBITDA margin Main drivers in CHF millions in % 50 • Outperform market growth 200 830.0 X-ray 400 bps 25.0 • Higher process control intensity 21.0 20.0 • New product introductions 580.0 PCT 513.7 - Synertia® RFG + RFM 14.8 - MesoFocus 371.6 395.8 10.8 • M
Slide 31: Focused investments support organic growth
Focused investments support organic growth FY19 – FY21 Target 2025 Priorities • Organic business growth CHF 44 million ~5% of sales Capex ~3.4% of sales on average • Building lean / efficient operations CHF 157 million ~10 - 12% of sales • Driving scalable infrastructure R&D on average ~12% of sales
Slide 32: Returning cash to shareholders a key element of capital allocation
Returning cash to shareholders a key element of Comet’s capital allocation Dividend history Dividend policy in CHF/share • Shareholders to participate in the success of Comet • 25% to 40% of net income 3.5 • Yearly evaluation by Board of Directors • Other ways of returns to 1.5 shareholders constant
Slide 33: Long-term value creation over the last years
Long-term value creation over the last 10 years: the next chapter in the Comet story is being written Net sales EBITDA EPS CAGR 3y* 5.6% CAGR 3y* 33.7% CAGR 3y* 76.1% CAGR 5y* 9.1% CAGR 5y* 16.6% CAGR 5y* 19.7% CAGR 10y* 9.0% CAGR 10y* 14.2% CAGR 10y* 20.7% +XXX% +905% All-time high: CHF 383.00 (Nov
Slide 34: Comet's strong performance has built a robust financial footing
Comet’s strong performance has built a robust financial footing. Comet is well positioned to capitalize on the market opportunities by 2025 and beyond. group
Slide 35: Comet is on track to 2025 target model
Comet is on track to 2025 target model > 830 ~ 25% ~ 30% Net sales (million CHF) EBITDA margin (%) Return on capital employed (%) Comet CMD 2022 11/16/2022 35
Slide 36: 15 minutes break
15 minutes break cemet group
Slide 37: Synertia Generator and Match the future of plasma control
Synertia® Generator and Match the future of plasma control November 16, 2022 André Grede, Vice President Global R&D PCT
Slide 38: Comet's products in semiconductor manufacturing
Comet’s products in semiconductor manufacturing Electronics Microchip Semiconductor manufacturing tool in a FAB Plasma based processing tool Silicon wafer Comet CMD 2022 11/16/2022 38
Slide 39: Delivering the energy for plasma processes
Delivering the energy for plasma processes • Important steps during semiconductor manufacturing like adding, removing or modifying material are done using plasma. • Comet PCT’s products are generating and controlling high frequency process energy. • The amount of energy, the envelope and the way it
Slide 40: What modern semi processes need
What modern semi processes need Plasma Chamber (video by LAM) Generator Making of 3D Nand Memory Match • Higher absolute precision and repeatability as well as efficiency for reduced cooling demands • Smaller footprint and higher power density • Faster control and tuning of generators, matches and c
Slide 41: Product performance alone is not enough
Product performance alone is not enough • No matter what, where and why, immediate customer support for: - innovation - optimization - problem solving on a higher level of complexity is the key to win new business. Future products, teams and development environments must offer: • More flexibility in
Slide 42: Our answer to future customer requirements: The new RF Power Platform Synertia
Our answer to future customer requirements: The new RF Power Platform Synertia®
Slide 43: Successful launch of first products at SEMICON West
Successful launch of first products at SEMICON West • First Synertia® products introduced • An interconnected RF eco-system offering performance beyond single products • Synertia® Generators and latest prototype of a Synertia® Match at the show booth • Intensive discussions with customers and live d
Slide 44: The product portfolio will grow…
The product portfolio will grow… • Compact 20 kW • Cutting edge control • Scalable • Extendable • Customizable • Highly modular RF platform • Hundreds of variants possible, the right product for every customer and application, without re-qualification or certification • Scalability of performance an
Slide 45: The Technology Platform behind Synertia
The Technology Platform behind Synertia®
Slide 46: Enabler – the new Gen 3 Technology Platform
Enabler – the new Gen 3 Technology Platform • 2017, PCT started developing its future RF technology platform called Gen 3. • Combining the advantages of high-level- and real-time operating systems as well as hardware accelerated digital signal processing on FPGAs. • It will be the shared brain of al
Slide 47: What is behind Gen 3
What is behind Gen 3 Building a Worldwide Team Comet CMD 2022 11/16/2022 47
Slide 48: A worldwide team of specialists
A worldwide team of specialists PCT has build a team of specialists for: • High frequency technology • Embedded software and electronics • Mechanical engineering & material science • Digitalization & IT • DVT, compliance and reliability Our footprint allows us to hire the best talents in four countr
Slide 49: What is behind Gen 3
What is behind Gen 3 Building a Worldwide Modern Team Environment Comet CMD 2022 11/16/2022 49
Slide 50: A smart environment for smart products
A smart environment for smart products High-tech production site in Aachen / Germany • Fully automated manufacturing • Industry 4.0 production environment High power RF smartLABs • Worldwide interlinked lab environment • Inhouse prototyping • Hardware in the loop testing • Automated and data driven
Slide 51: What is behind Gen 3
What is behind Gen 3 Building a Worldwide Modern Tool & Process Team Environment Chain Comet CMD 2022 11/16/2022 51
Slide 52: Tool and process chains go digital
Tool and process chains go digital • Continuous invests into digitalization of R&D enable complex solutions • Application lifecycle management and CI chain for continuous integration • Product lifecycle management to organize and grow a huge product portfolio • Digitized processes to increase effici
Slide 53: What is behind Gen 3
What is behind Gen 3 Building a Worldwide Modern Tool & Process Technology & Team Environment Chain Product Roadmap Comet CMD 2022 11/16/2022 53
Slide 54: Synertia live presentation & customer feedback
Synertia® live presentation & customer feedback Important customers were invited to a private room, showing our Gen 3 technology platform. Some customer feedback: • … first innovative generator after years. • Your capabilities to analyze data will help optimizing processes, a big differentiator. • I
Slide 55: Signal processing & data streaming on a new level
Signal processing & data streaming on a new level • IoT capabilities to monitor and analysis over 1000 parameters, locally or remotely • Integrated, onboard datalogging, no chance to miss an important event • Build-in high frequency measurement studio replaces RF instruments worth ten thousands of U
Slide 56: Summary
Summary • First Synertia® products have been officially launched during SEMICON West 2022. • Customer feedback is very positive. Synertia® is described as a new and innovative approach. • New functionalities of Synertia® and its data driven abilities will help to identify and solve problems faster a
Slide 57: cemet
cemet group