Aixtron Se · XETR:AIXA
Aixtron — 9M 2014 Earnings Presentation
41 slides from Aixtron's earnings presentation, Oct 28, 2014
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation Excerpt of the IR Master Presentation – 9M/2014 (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041)
Slide 2: Forward-Looking Statements
AIXTRON INVESTOR PRESENTATION 2 Forward-Looking Statements This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of AIXTRON within the meaning of the safe harbor provisions of the US Private Securities Litigation
Slide 3: Global Presence
ABOUT AIXTRON 3 Global Presence
Slide 4: One Technology – Multiple Solutions
TECHNOLOGY 4 One Technology – Multiple Solutions Deposition Technology Technology Nano Scale Material Engineering Compound Semiconductor Silicon Semiconductor Systems (MOCVD, OVPD®, PVPD®, PECVD) (PECVD, CVD, ALD. MOCVD) • LEDs/OLEDs for displays • Metal and oxide films for CMOS • LEDs/OLEDs for lig
Slide 5: Compound Semiconductors – MOCVD
AIXTRON TECHNOLOGIES AND PRODUCTS 5 Compound Semiconductors – MOCVD Two Reactor Technologies Planetary & Close Coupled Showerhead (CCS) • Addressing Multiple Industries • Proven Industry Standard & Market Leading • Configurable, Extendable Common Platform • Next-gen tool in the pipeline Planetary
Slide 6: Annual Equipment Revenues by Application
OPERATIONS 6 Annual Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR million 800 700 600 500 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LED Telecom/Datacom Consumer-/Optoelectronics Solar Others Silicon
Slide 7: Equipment Order Intake per Quarter
OPERATIONS 7 Equipment Order Intake per Quarter Source: Deutsche Bank Equity Research, AIXTRON SE (EUR million) driven by strategic 250 China investments 200 driven by LED TV driven by notebook driven by backlighting 150 telecom/datacom driven by and mobile phone mobile phone penetration 100 50 0 1Q
Slide 8: LED Lighting Cycle
INDUSTRY & MARKETS 8 LED lighting market: multiple tipping points Source: : AIXTRON, McKinsey 2012 LED Lighting Cycle Various Different Numerous applications regions players
Slide 9: LED Lighting Market Estimates
INDUSTRY & MARKETS 9 LED Lighting Market Estimates Source: Strategies Unlimited 2014; IHS 2014 Globalization and urbanization to drive LED lighting opportunities: • Emerging countries: need for energy efficient lighting solutions • Developed countries: SSL driven by expanding renovation market • Out
Slide 10: A-19 Bulb: 60W LED Replacement – Global Pricing
INDUSTRY & MARKETS 10 A-19 Bulb: 60W* LED Replacement – Global Pricing Source: Various websites; AIXTRON • Global Brands: Samsung, Osram, Philips, GE, Toshiba, etc. • New light bulbs with higher lm/W being offered • Brand suppliers increasingly offering attractively priced devices QoQ LED vs. Hal. L
Slide 11: LED Lighting: Regional Highlights
INDUSTRY & MARKETS 11 LED Lighting: Regional Highlights More “smart lighting” products in the market and GE offers 60W equivalent connected LED light bulbs at US$14.97 Varieties of 100W equivalent LED bulbs with 1,600+ lumens are now available between US$20-25
Slide 12: Increasing LED Area Driving Growth
INDUSTRY & MARKETS 12 Increasing LED Area Driving Growth • Growth through increasing LED-unit and area demand • Consistent epitaxial area growth will trigger equipment demand • LED-lighting gaining further momentum LED Units 2” Equivalent Wafer 150 50.000 HB LED Market (2" Equivalent Wafer in 000) H
Slide 13: Production Supply 3rd Party Estimates for HB LEDs
INDUSTRY & MARKETS 13 Production Supply 3rd Party Estimates for HB LEDs • Analysts’ Bull-Bear MOCVD system demand estimates • Larger area and future replacement to drive equipment demand • SSL is the strongest driver for material area growth • Incremental LED units and area growth every year Increme
Slide 14: 5-Point-Program - Return to Sustainable Profitability
OPERATIONS 14 5-Point-Program - Return to Sustainable Profitability 1 Customer Focusing on customer benefit 2 Technology & Products Putting unique technology portfolio to more effective use, further strengthening future products 3 Efficiency Optimizing process and project structures systematically 4
Slide 15: Promising Future Markets
AIXTRON TECHNOLOGIES AND PRODUCTS 15 Promising Future Markets Silicon Compound Semiconductors Organic Carbon Semiconductors ALD (MOCVD) MOCVD OVPD®/PVPD® PECVD Silicon Compound Power Management Organic and large Graphene, Semiconductors Semiconductors GaN / SiC area thin films CNTs and CNWs • DRAM D
Slide 16: 24-Month Business Development
FINANCIALS 16 24 - Month Business Development (€ million) Equipment (only) 35.4 29.9 30.5 35.7 37.1 38.2 37.6 Order Intake 37.7 @ $1.40 @ $1.30 @ $1.35 Equipment (only) 79.4 78.4 71.6 72.8 70.7 59.6 * 64.2 66.4 Order Backlog @ $1.40 @ $1.30 @ $1.35 *) revalued on Jan.1, 2014 to €58.1m at $1.35/€ Tot
Slide 17: Consolidated Income Statement
FINANCIALS 17 Consolidated Income Statement* (€ million) 9M/14 9M/13 +/- Q3/14 Q2/14 +/- Revenues 135.8 131.8 3% 45.6 46.2 -1% Cost of sales 105.8 156.6 -32% 39.1 33.6 17% Gross profit 29.9 -24.8 221% 6.5 12.6 -49% Gross Margin 22% -19% 41 pp 14% 27% -13 pp Selling expenses 10.9 21.2 -49% 3.6 3.4 5%
Slide 18: Consolidated Statement of Financial Position
FINANCIALS 18 Consolidated Statement of Financial Position* (€ million) 30/09/14 31/12/13 30/09/13 Property, plant & equipment 78.2 79.9 92.4 Goodwill 64.8 64.1 64.3 Other intangible assets 2.6 3.1 3.2 Others 5.9 5.7 5.6 Non-current assets 151.5 152.7 165.5 Inventories, WIP & Finished Goods 83.5 66.
Slide 19: Consolidated Statement of Cash Flows
FINANCIALS 19 Consolidated Statement of Cash Flows* (€ million) 9M/2014 9M/2013 Q3/2014 Q2/2014 Cash Flow from operating activities -43.6 4.9 -18.5 -15.3 Cash Flow from investing activities 6.1 14.7 26.0 4.4 Cash Flow from financing activities -0.1 1.3 0.1 -0.2 Exchange rate changes 5.2 -1.6 4.6 1.0
Slide 20: Market Prospects
FUTURE MARKETS 20 Market Prospects Short-Term •Further increasing adoption of LEDs for exterior, public infrastructure & commercial lighting •Increased adoption of LEDs for consumer & residential lighting •Introduction of next generation MOCVD tool for LED manufacturing •Increasing adoption of GaN f
Slide 21: Appendix
AIXTRON INVESTOR PRESENTATION 21
Slide 22: China: The Progress of LED Industry Policies
APPENDIX 22 China: The Progress of LED Industry Policies Source: Ministry of Industry and Information Technology, China; CSA 2011/2012; McKinsey 2011; Goldman Sachs 2011; Morgan Stanley 2012 Phasing out of incandescent bulbs Government actions to facilitate LED lighting transition Enhance technologi
Slide 23: LED Investment Cycle
APPENDIX 23 LED Investment Cycle Source: IC Insights, AIXTRON • Global demand: Growth driven mainly by LED Lighting • Supply: Margins, Consolidation, Considering Next-Gen Tools Strong Market Aggressive Capital Demand > Supply Spending Supply Little Capacity Demand Demand < Supply Added Price Margin
Slide 24: Par 38 Bulb: LED Replacement – Commercial Lighting
APPENDIX 24 Par 38 Bulb: LED Replacement – Commercial Lighting Source: U.S. Energy Information Administration (EIA), AIXTRON • Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Philips- 72 Watt – EcoSmart-23Watt CREE PAR38 Product Energy Saving PAR38 PAR38 Light Bulb LED Bulb
Slide 25: LED Cost Structure by Application
APPENDIX 25 LED Cost Structure by Application Based on: AIXTRON; DOE 2014, IHS Q4/2013 • LED Chip: ca. 10% of total LED Light Bulb manufacturing cost LED TV Lighting 100% Phosphor 80% GE Packaging 60% 40% LED Chip 20% Process Substrate 0% 32" Edge-lit LED 32" Direct-lit Outdoor Area Interior LED Lig
Slide 26: Compound Semiconductor System Generations
APPENDIX 26 Compound Semiconductor System Generations • Extendibility: Extensive choice of configurations and enhancements • Scalability: Multiple technologies on one platform • Productivity: Highest throughput, best yield, fastest growth rates Year of Platform Technology Chambers Introduction • G3
Slide 27: Compound Semiconductors and Silicon – Two Converging Worlds
FUTURE MARKETS 27 Compound Semiconductors and Silicon – Two Converging Worlds • Dominated by small wafers – 2“, 4“ & 6“ Compound • Low level of automation and fab integration Semiconductors • Complex binning process required • No recognized shared Industry Roadmap • AIXTRON G5+ MOCVD Planetary react
Slide 28: Silicon Semiconductor - ALD
AIXTRON TECHNOLOGIES AND PRODUCTS 28 Silicon Semiconductor - ALD Product Description – ALD • 300mm ALD Technology • QXP-8300 Mini-batch system • High throughput : 2 Process Chambers – 8 stations “Best-in class technology, state of the art • Up to 3 vaporizers and one bubbler deposition system, lowes
Slide 29: Beyond LED Developments: Silicon Semiconductor Systems
FUTURE MARKETS 29 Beyond LED Developments: Silicon Semiconductor Systems Source: Gartner 2014 • Multi generation film development for memory & logic • Memory and Logic applications to drive ALD equipment industry • Multi generation film development for memory & logic AIXTRON Positioning Silicon ICs:
Slide 30: Beyond LED Developments: Semi. Systems for Power Electronics
FUTURE MARKETS 30 Beyond LED Developments: Semi. Systems for Power Electronics Source: Yole Développement • GaN-on-Si emerging into 30-300V voltage range devices • GaN-on-Si and SiC to compete for attractive 600V devices • SiC with superior device performance and reliability for >1200V GaN/Si | SiC
Slide 31: Beyond LED Developments: Semi. Systems for Power Electronics
FUTURE MARKETS 31 Beyond LED Developments: Semi. Systems for Power Electronics Source: DOE 2013 Reduced • Eliminates up to 90% of the power losses that currently occur Energy Losses during AC-to-DC and DC-to-AC electricity conversion Higher-voltage • Handles voltages more than 10 times higher than S
Slide 32: Organic Electronics – OVPD
AIXTRON TECHNOLOGIES AND PRODUCTS 32 Organic Electronics – OVPD Product Description – OVPD • Proprietary carrier-gas enhanced gas phase deposition approach for organic thin films* • Based on AIXTRON‘s core competence of carrier gas enhanced vapour phase deposition “Disruptive deposition technology f
Slide 33: Beyond LED Developments: Organic Electronics
FUTURE MARKETS 33 Beyond LED Developments: Organic Electronics Source: DisplaySearch, AIXTRON Cleaning Cleaning Glass cutting ITO deposition Organic material deposition Bonding Coating Etching Cathode deposition Aging Stripping Encapsulation Final test Test and repair Front-end Front-end Back-end Ar
Slide 34: Beyond LED Developments: Organic Electronics
FUTURE MARKETS 34 Beyond LED Developments: Organic Electronics Source: Barclays 2012, AIXTRON OVPD®/PVPD®: • Co-Deposition of multiple sources • Multi-layer deposition RGB color-patterned OLED structure White OLED + Color Filter structure Cathode Cathode ETL EIL Red Green n-doped ETL HTL P-N contact
Slide 35: Carbon – PECVD
10/27/2014 FUTURE MARKETS 35 Carbon – PECVD Graphene and Carbon Nanotube Deposition Systems • Proprietary thermal and plasma enhanced chemical vapour deposition technology • Excellent uniformity and reproducibility with fast turnaround cycle times • BM platform: BM R&D (2-inch), BM Pro (4-inch and 6
Slide 36: Consolidated Income Statement
FINANCIALS 36 Consolidated Income Statement* (€ million) 2013 2012 2011 Revenues 182.9 227.8 611.0 Cost of sales 190.3 227.4 379.5 Gross profit -7.4 0.4 231.4 Gross Margin -4% 0% 38% Selling expenses 29.0 34.8 32.1 General & admin expenses 18.2 19.6 34.0 R&D 57.2 72.9 50.4 Net other op.(income)/expe
Slide 37: Consolidated Statement of Financial Position
FINANCIALS 37 Consolidated Statement of Financial Position* (€ million) 31/12/13 31/12/12 31/12/11 Property, plant & equipment 79.9 97.6 96.2 Goodwill 64.1 64.3 64.1 Other intangible assets 3.1 4.2 6.2 Others 5.7 6.3 29.4 Non-current assets 152.7 172.4 195.8 Inventories, WIP & Finished Goods 66.2 12
Slide 38: Consolidated Statement of Cash Flows
FINANCIALS 38 Consolidated Statement of Cash Flows* (€ million) 2013 2012 2011 Cash Flow from operating activities 8.2 -45.2 -6.3 Cash Flow from investing activities -39.7 -4.4 50.5 Cash Flow from financing activities 101.6 -24.3 -57.5 Exchange rate changes -2.4 0.8 4.2 Net change in Cash & Cash Equ
Slide 39: Global Presence
ABOUT AIXTRON 39 Global Presence AIXTRON SE Headquarters AIXTRON Ltd. AIXTRON Inc. Herzogenrath, Germany Cambridge, United Kingdom Sunnyvale, California, USA Core of AIXTRON’s activities is Focus on the enhancement of Focus on silicon applications for the Technology and R&D Center material sciences
Slide 40: Financial Calendar & Contact Data
40 Financial Calendar & Contact Data • February 2015 FY/2014 Results, Conference Call • April 2015 Q1/2015 Results, Conference Call • May 2015 Annual General Meeting, Aachen • July 2015 H1/2015 Results, Conference Call • October 2015 9M/2015 Results, Conference Call For further information please co
Slide 41: AIXTRON - Our technology. Your future.
AIXTRON - Our technology. Your future. AIXTRON SE Dornkaulstr. 2 52134 Herzogenrath Germany Phone +49 (2407) 9030-0 Fax +49 (2407) 9030-40 E-Mail invest@aixtron.com