Aixtron Se · XETR:AIXA
Aixtron — Q1 2014 Earnings Presentation
41 slides from Aixtron's earnings presentation, Apr 29, 2014
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation Excerpt of the IR Master Presentation – Q1/2014 (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041)
Slide 2: Forward-Looking Statements
AIXTRON Investor Presentation 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 Re
Slide 3: Global Presence
Global Presence AIXTRON Global Presence Ltd. AB Cambridge, UK Lund, Sweden Korea Co. Ltd. Seoul, South Korea Inc. SE KK Sunnyvale, USA Aachen, Germany Tokyo, Japan Headquarters Taiwan Co. Ltd., Hsinchu, Taiwan China Ltd., Shanghai, China Representation P3
Slide 4: One Technology – Multiple Solutions
One Technology – Multiple Solutions Deposition Technology Technology Nano Scale Material Engineering Systems Compound Semiconductor Silicon Semiconductor (MOCVD, OVPD®, PVPD®, PECVD) (PECVD, CVD, ALD. MOCVD) Technology LEDs/OLEDs for displays LEDs/OLEDs for lighting Metal and oxide films SiC
Slide 5: Compound Semiconductor Systems: IC Platform
Compound Semiconductor Systems: IC 2 Platform Two Reactor Technologies Addressing Multiple Industries Proven Industry Standard & Market Leading Configurable, Extendable Common Platform Operations Next-gen tool in the pipeline Planetary Reactor® AIX G5+, 5x8” Close Coupled Showerhead® Integ
Slide 6: Annual Equipment Revenues by Application
Annual Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR million 800 700 600 Operations 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 P6
Slide 7: Equipment Order Intake per Quarter
Equipment Order Intake per Quarter 250 (EUR million) driven by strategic China investments 200 driven by LED TV Operations driven by 150 notebook backlighting driven by driven by telecom/datacom mobile phone 100 and mobile phone penetration 50 0 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01
Slide 8: LED lighting market: multiple tipping points
LED lighting market: multiple tipping points LED Lighting Cycle Industry & Markets Various Different Numerous applications regions players LED penetration rate - value basis Overall Industrial Office Outdoor Hospitality Shop Residential Architectural 0% 10% 20% 30% 40% 50% 60% 70% 80% 2012 2016e Sou
Slide 9: LED Lighting Market Estimates
LED Lighting Market Estimates Globalization and urbanization to drive LED lighting opportunities: Emerging countries: need for energy efficient lighting solutions Industry & Markets Developed countries: SSL driven by expanding renovation market Outdoor: Early adoption streetlight replacement m
Slide 10: A-19 Bulb: 60W LED Replacement – Global Pricing
A-19 Bulb: 60W* LED Replacement – Global Pricing Global Brands: Samsung, Osram, Philips, GE, Toshiba, etc. New light bulbs with higher lm/W being offered Industry & Markets Brand suppliers increasingly offering attractively priced devices QoQ LED vs. LED vs. Regions Halogen CFL LED Low High +/
Slide 11: LED Lighting: Regional Highlights
LED Lighting: Regional Highlights Industry & Markets Philips introduced new Cree expanded the product slim-style 60W offering with 100W equivalent LED light equivalent LED light bulbs at bulbs at USD 9.97 USD 19.97 Osram’s 60W LED light bulbs are available below EUR 10 (c. USD 13) in Germany now P 1
Slide 12: Increasing LED Area Driving Growth
Increasing LED Area Driving Growth Growth through increasing LED-unit and area demand Consistent epitaxial area growth will trigger equipment demand Industry & Markets LED-lighting gaining further momentum LED Units 2” Equivalent Wafer 150 50,000 HB LED Market (2" Equivalent Wafer in 000) HB L
Slide 13: Production Supply 3rd Party Estimates for HB LEDs
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 Industry & Markets Incremental LED units and area growth every year Incrementa
Slide 14: Promising Future Markets
Promising Future Markets Silicon Compound Organic Carbon Semiconductors Semiconductors Material Material ALD (MOCVD) MOCVD OVPD®/PVPD® PECVD Future Markets Power Management Graphene Silicon systems Organic materials GaN / SiC for CNTs and CNWs • Metal nitride and High-k • RF transistors • OLEDs for
Slide 15: 5-Point-Program - Return to Sustainable Profitability
5-Point-Program - Return to Sustainable Profitability 1 Customer Focusing on customer benefit Putting unique technology portfolio to 2 Technology & Operations more effective use, further strengthening Products future products 3 Efficiency Optimizing process and project structures systematically 4 Fi
Slide 16: Business Development
24 - Month Business Development (€ million) Equipment (only) 30.0 34.5 35.5 29.9 30.5 35.7 37.1 37.7 Order Intake @ $1.40 @ $1.30 @ $1.35 Financials 19.0 137.7 109.8 79.4 78.4 71.7 72.8 * Equipment (only) 59.6 64.2 Order Backlog @ $1.40 @ $1.30 @ $1.35 *) revalued on Jan.1, 2014 to €58.1m at $1.35/€
Slide 17: Consolidated Income Statement
Consolidated Income Statement* (€ million) Q1/14 Q1/13 YoY Q1/14 Q4/13 QoQ Revenues 43.9 40.2 9% 43.9 51.1 -14% Cost of sales 33.1 87.9 -62% 33.1 33.6 -1% Gross profit 10.8 -47.7 123% 10.8 17.4 -38% Financials Gross Margin 25% -119% +144pp 25% 34% -9pp Selling expenses 3.9 6.9 -43% 3.9 7.8 -50% Gene
Slide 18: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/03/14 31/12/13 31/03/13 Property, plant & equipment 80.2 79.9 95.3 Goodwill 64.2 64.1 64.0 Other intangible assets 2.8 3.1 3.8 Financials Others 5.6 5.7 5.8 Non-current assets 152.8 152.7 168.8 Inventories, WIP & Finished Goods 67.0 66.2 7
Slide 19: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) Q1/2014 Q4/2013 Q1/2013 Cash Flow from operating activities -9.8 3.4 10.1 Cash Flow from investing activities -24.3 -54.4 3.0 Financials Cash Flow from financing activities 0.1 100.2 0.5 Exchange rate changes -0.4 -0.8 0.2 Net change in Cash & Cash E
Slide 20: Market Prospects
Market Prospects Short-Term Further increasing adoption of LEDs for exterior, public infrastructure & commercial lighting Increased adoption of LEDs for consumer & residential lighting Increasing adoption of GaN for power electronics Future Markets Next generation NAND, DRAM & PRAM memory ap
Slide 21: AIXTRON Investor Presentation
P 21 AIXTRON Investor Presentation
Slide 22: Chinese Government stimulating LED Value Chain
Chinese Government stimulating LED Value Chain China prepares for volume LED lighting development Domestic SSL value to reach RMB 450bn by 2015 China China potentially largest single Germany Other consumer of LED lighting by 2015 USA Appendix Japan LED lighting: 20%+ of the total lighting mark
Slide 23: China: The Progress of LED Industry Policies
China: The Progress of LED Industry Policies Phasing out of incandescent bulbs Government actions to facilitate LED lighting transition Appendix Enhance technologies development: LED fabrication, SSL basic research, etc. Consumer End-market subsidy: LED lighting bidding plan Public End-market subsid
Slide 24: Par Bulb: LED Replacement – Commercial Lighting
Par 38 Bulb: LED Replacement – Commercial Lighting Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Philips- 72 Watt – Appendix Energy Saving Philips-24 Watt TCP PAR38 Product PAR38 PAR38 Light Bulb LED Bulb Energy used (W) 72 24 17 Equivalent to (W) 90 90 90 GE Lifetime (h
Slide 25: LED Cost Structure by Application
LED Cost Structure by Application LED Chip: ca. 10% of total LED Light Bulb manufacturing cost LED TV Lighting 100% Phosphor Appendix 80% Packaging 60% 40% 50% 20% 40% LED Chip Process 0% 32" Edge-lit 32" Direct-lit Outdoor Area Interior LED Light LED LED TV LED TV Lamp Downlight Bulb- 800lm Compo
Slide 26: Compound Semiconductor System Generations
Compound Semiconductor System Generations Extendibility: Extensive choice of configurations and enhancements Scalability: Multiple technologies on one platform Productivity: Appendix Highest throughput, best yield, fastest growth rates Year of Platform Technology Chambers Introduction G3 Pla
Slide 27: Compound Semiconductors and Silicon – Two Converging Worlds
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 Future Markets • No recognized shared Industry Roadmap • AIXTRON G5+ MOCVD Planetary reactor
Slide 28: Beyond LED Developments: Silicon Semiconductor Systems
Beyond LED Developments: Silicon Semiconductor Systems QXP-8300 Platform “Q” – Quad (4 reactor stations per process module) “X” – eXtendibility to multiple technology nodes Future Markets “P” – Productivity (low cost of ownership) 8300 – Parallel processing of “8” 300 mm wafers Features Benefits
Slide 29: Beyond LED Developments: Silicon Semiconductor Systems
Beyond LED Developments: Silicon Semiconductor Systems Memory and Logic applications to drive ALD equipment industry Multi generation film development for memory & logic Product designed for high volume manufacturing (HVM) and Future Markets offers low cost of ownership QXP-8300 production q
Slide 30: Beyond LED Developments: Semiconductor Systems for Power Electronics
Beyond LED Developments: Semiconductor Systems for Power Electronics 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 Future Markets GaN/Si | SiC & GaN/Si competition S
Slide 31: Beyond LED Developments: Power Electronics with Compound Materials
Beyond LED Developments: Power Electronics with Compound Materials Reduced • Eliminates up to 90% of the power losses that currently occur during AC-to-DC and DC-to-AC Energy Losses electricity conversion. Future Markets Higher-voltage • Handles voltages more than 10 times higher than Si-based devic
Slide 32: Beyond LED Developments: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems Advantages of OVPD®/PVPDTM enhanced by CCS® technology Scalability: large-area deposition Throughput: high deposition rates Yield: precise process control Future Markets Cost reduction: efficient material utilization, footprint efficienc
Slide 33: Beyond LED Developments: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems Cleaning Cleaning Glass cutting ITO deposition Organic material Bonding Future Markets Coating deposition Etching Cathode deposition Aging Stripping Test and repair Encapsulation Final test Front-end Back-end Array process Front-end Module proce
Slide 34: Beyond LED Developments: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems OVPD®/PVPD®: Co-Deposition of multiple sources Multi-layer deposition Future Markets RGB color-patterned OLED structure White OLED + Color Filter structure Cathode Cathode ETL EIL Red Green n-doped ETL HTL P-N contact P-N contact Blue R G B
Slide 35: Graphene and Carbon Nanotube Deposition Systems
Beyond LED Developments: Graphene and Carbon Nanotube Deposition Systems Material AIXTRON Enabling Properties Technology Applications Future Markets • Graphene and Carbon • Thermal and plasma • High frequency/mobility nanotube chemical vapor transistors and sensors • High tensile strength ; depositi
Slide 36: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2013 2012 2011 Revenues 182.9 227.8 611.0 Cost of sales 190.3 227.4 379.5 Financials 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)/expens
Slide 37: Consolidated Statement of Financial Position
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 Financials Others 5.7 6.3 29.4 Non-current assets 152.7 172.4 195.8 Inventories, WIP & Finished Goods 66.2 126.0
Slide 38: Consolidated Statement of Cash Flows
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 Financials 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 Equiva
Slide 39: AIXTRON Sites
AIXTRON Sites AIXTRON Group Worldwide Production AIXTRON Ltd., Cambridge, UK P 39
Slide 40: Tech Center: Fortify Technology Leadership
AIXTRON Sites Tech Center: Fortify Technology Leadership State of the art tech center with offices, labs & production Space for ca. 450 employees, 16,000 sqm, energy efficient design, LED lighting P 40
Slide 41: Financial Calendar & Contact Data
Financial Calendar & Contact Data May 14, 2014 Annual General Meeting, Aachen July 29, 2014 H1/2014 Results, Conference Call October 28, 2014 9M/2014 Results, Conference Call February 2015 FY/2014 Results, Conference Call May 2015 Annual General Meeting, Aachen For further information plea