Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Needham 18th Annual Growth Conference 2016
21 slides from Advanced Energy Industries's conference presentation, Jan 12, 2016
Slide 1: Investor Relations Presentation Needham 18th Annual Growth Conference
Investor Relations Presentation Needham 18th Annual Growth Conference January 2016
Slide 2: Safe Harbor
2 Safe Harbor The company’s guidance with respect to anticipated financial results for the fourth quarter and year ending December 31, 2015, estimates of future costs after the wind down of the Solar Inverter business, estimated future market and growth opportunities, expectations regarding future m
Slide 3: Capital Deployment Strategy Driving Shareholder Returns
• Inverter Wind-Down Complete • Integrated 3 Acquisitions • Accelerated Growth In Semi • Expanding Industrial Applications • Capital Deployment Strategy Launched Driving Strong Shareholder Returns Grow & Diversify Revenue Base CAPITAL DEPLOYMENT STRATEGY Expand Margins 3
Slide 4: Precision Power Solutions Enable Critical Applications
CONTROLLABLE REPRODUCIBLE Precision Power Solutions Enable Critical Applications AC DC RF HV PCM Metrology STABLE CLEAN ACCURATE PRECISION MATERIAL PROCESSING INDUSTRIAL POWER MEDICAL DIAGNOSTICS / TREATMENT AEROSPACE/DEFENSE ANALYTICAL EQUIPMENT SEMI EQUIPMENT 4
Slide 5: Highly Competitive and Differentiated Model
Highly Competitive and Differentiated Model Global Footprint, Diverse Markets, Critical Applications Operational Excellence Precision Power Conversion Focus, Leadership & Talent GROWTH OPINC CASH FLOW 5
Slide 6: Precision Power Solutions Enabling Mobile Technology
Precision Power Solutions Enabling Mobile Technology EMI Coatings Camera Optics Coating HBLED Light Logic: Processor Memory: NAND & DRAM AMOLED or TFT Display Glass Coating Capacitive Touchscreen Thin Film Battery MEMS Sensors 6
Slide 7: Revenue Growth Vision
Revenue Growth Vision CORE APPLICATIONS ADJACENT APPLICATIONS NEW APPLICATIONS Industrial Power Power Applications High Voltage, High Power, Thermal Applications, Instrumentation, Environmental, Custom Power Semi RF, DC, RPS, Deposition, Etch, Clean, Pyrometry, Integrated products Industrial Thin Fi
Slide 8: Mobility and the Cloud Driving Semi Growth
8 Mobility and the Cloud Driving Semi Growth Increasing Innovation and More Advanced Devices • Exponential growth in Memory • Smaller and faster Logic • Lower power consumption requirements
Slide 9: Semi Drivers Increasing Etch and Deposition
• Multi-patterning below 32nm node • 3-5 times etch/dep steps • More sophisticated etch and deposition processes • 5-10 time etch/dep steps Expands SAM 20-50% for logic and memory MARKET DRIVERS MARKET IMPACT LITHOGRAPHY / PATTERNING 3D ARCHITECTURES ADVANCED PACKAGING Expands SAM by >50% for 3DNAND
Slide 10: 2015-2018 Semi RF Revenue Trend
10 2015-2018 Semi RF Revenue Trend 2015 2018 Adv Etch Adv Pulse RF IoT Market • Accelerating demand for Advanced Pulse RF solutions • Increasing number of units and in RF content per unit • Growing faster than the market Etch & Deposition Driving Growth in RF Power AE Outpacing Overall Semi Market F
Slide 11: Industrial Growth Strategy in Thin Films
Energy Efficiency Display Technologies Consumer Electronics Industrial Hard Coatings Drive fast adoption of advanced bipolar technology – Superior film performance – Superior cost of ownership – Retrofit large installed base Expand AE’s Solvix hard coating solutions into new growth regions – India a
Slide 12: Industrial Growth Strategy in Power
Industrial Growth Strategy in Power 12 High Voltage Systems High Voltage Modules (embedded HV) Thermal Applications Focus on advanced HV applications – Mass Spectrometry – X-Ray (Industrial) – Electron Beam Geographical and applications growth: – Channel partners (Rockwell, Siemens) – Regional growt
Slide 13: Continuing Value Growth Acceleration
13 Continuing Value Growth Acceleration • Enabling critical applications with advanced power conversion technology • Leading in highest growth Semi sectors • Increasing investment in organic growth (RD&E, S&M) • Actively pursuing acquisitions to accelerate growth •Growth strategy to increase revenue
Slide 14: Financials
14 FINANCIALS
Slide 15: Healthy Revenues and Operating Margins
28.4% 23.4% 25.4% 28.1% 29.3% 27.3% 30.1% 0% 5% 10% 15% 20% 25% 30% 35% 40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 $83 $82 $91 $106 $106 $105 $108 $0 $20 $40 $60 $80 $100 $120 15 Healthy Revenues and Operating Margins (non GAAP excluding inverters) $ MILLIONS
Slide 16: Strong Operating Margins Throughout Cycles
$83 $82 $91 $106 $106 $105 $108 $0 $20 $40 $60 $80 $100 $120 28.4% 23.4% 25.4% 28.1% 29.3% 27.3% 30.1% 0% 5% 10% 15% 20% 25% 30% 35% 40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 16 Strong Operating Margins Throughout Cycles (non GAAP excluding inverters) $ MILLIONS TARGET OPERATING MARGINS: 20%-25% THROUGHOUT
Slide 17: Operating Margins Outperform Peers
17 Operating Margins Outperform Peers (non-GAAP, AE excluding inverters) 0% 5% 10% 15% 20% 25% 30% 35% 40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 AE Peer A Peer B Peer C
Slide 18: Generating Healthy Cash Flows
18 Generating Healthy Cash Flows $6.8 $47.1 $57.3 $75.1 $103.7 $128.9 $147.1 $0 $20 $40 $60 $80 $100 $120 $140 $160 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 $ MILLIONS
Slide 19: Financial Strategy
19 Financial Strategy • Support semi expansion during 3D ramp • Drive industrial growth to expand geographies and markets • Reduce net working capital days • Strengthen liquidity and flexibility of capital structure (debt) • 70% to growth and 30% to share repurchases • $150M repurchase underway incl
Slide 20: Aspirational Financial Goals
Aspirational Financial Goals Revenue: $600-$700M Cash Generation: $250-$300M Non-GAAP EPS: $ 3.00 – $3.50 Grow & Diversify Generate & Deploy Cash Protect Margins 20 Note: Please note that hypothetical scenarios regarding revenue growth, EBITDA, EPS, cash generation, acquisitions, aspirational goals
Slide 21: Thank You
21 THANK YOU
Advanced Energy Industries — Needham 18th Annual Growth Conference 2016 on 6ix