Elmos Semiconductor Se · XETR:ELG
Elmos Semiconductor — Investor Day (November 2024)
67 slides from Elmos Semiconductor's investor day presentation, Nov 11, 2024
Slide 1: Welcome to the Virtual Elmos Capital Markets Day 2024
Welcome to the Virtual Elmos Capital Markets Day 2024
Slide 2: Welcome & Agenda
November 11, 2024 Elmos CMD 2024 Welcome & Agenda Ralf Hoppe, CIR
Slide 3: Agenda
Agenda Speaker Topic Time Ralf Hoppe (CIR) Welcome & Agenda 14:30 Dr. Arne Schneider (CEO) Profitable Growth & Value Generation 14:35 Dr. Jan Dienstuhl (CSO) Applications, Market & Customers, Design Wins 15:15 Dr. Michael Neuhäuser (CPO) Product Portfolio & Roadmap 15:35 Jochen Vaihinger (CTO) R&D A
Slide 4: Disclaimer
Disclaimer This presentation contains forward-looking statements based on beliefs of Elmos‘ management. Such statements reflect the company‘s current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different
Slide 5: Profitable Growth & Value Generation
November 11, 2024 Profitable Growth & Value Generation Dr. Arne Schneider, CEO
Slide 6: The Elmos Journey – 40 Years of Innovation, Growth & Success
The Elmos Journey – 40 Years of Innovation, Growth & Success Early Days: A Vision Becomes Reality Establishing a New ASIC Automotive Specialist Internationalization & ASSP Focus Outperforming Growth Group Sales (in million Euro) 600 CAGR 500 +35.2% 400 300 CAGR +4.8% 200 CAGR +16.5% 100 0 1984 1989
Slide 7: Elmos since 2021: Outperforming Growth & Value Generation
Elmos since 2021: Outperforming Growth & Value Generation Elmos Sales vs. Automotive & Auto Semi Market Elmos Share Price vs. Indices Elmos Sales Automotive Market Automotive Semicon Market Elmos DAX SDAX TecDAX PHLX Semi Index 275% 350% CAGR 250% 35.2% 300% 225% 250% 25.6% 200% 200% 175% 150% 150%
Slide 8: Global Automotive Megatrends…
Global Automotive Megatrends… Electrification & Efficiency ADAS & Autonomous Driving Global Production of BEV & Hybrids (in million units) SAE Autonomous Level (in % of Global Car Production) % of global 13% 44% 73% car production 21.7% 42.2% 56.4% L2 or higher 71.5 >50% of all EVs 78.3% produced in
Slide 9: …Fueling Long-Term Market Growth Potential
…Fueling Long-Term Market Growth Potential Global Light Vehicle Production Semiconductor Content per Vehicle Automotive Semiconductor Market (in million units) (in USD) (in billion USD) CAGR CAGR CAGR +3% +11% +14% 97.2 1,514 148.6 90.1 18.5 Europe Chip shortage 74.6 17.3 2020 - 2023 CAGR +26% 1,036
Slide 10: Value Generation in a Disruptive Environment
Value Generation in a Disruptive Environment Challenges for Future Growth Elmos Core Competencies The Elmos Approach for Value Generation 1 Market & customer Complex and fragile Geopolitical tensions understanding New management supply chains structure Innovation power Dynamic market with New compet
Slide 11: New Management Structure
New Management Structure Elmos Executive Committee (EEC) New Management Structure Management Board Dr. Arne Dr. Jan Margarita Dr. Patrick Jochen Dr. Michael Dr. Burkhard von Schneider Dienstuhl Mamberger Schmitt Vaihinger Neuhäuser Spreckelsen Chief Executive Chief Sales Officer Chief Financial Chie
Slide 12: New Corporate Structure
New Corporate Structure Elmos Semiconductor SE Holding Other Subsidiaries Elmos Semiconductor Elmos Semiconductor Elmos Semiconductor Elmos Semiconductor ▪ Germany Business Services GmbH Sales & Solutions GmbH Technology & Engineering GmbH Dortmund Operations GmbH ▪ Netherlands ▪ USA Main Responsibi
Slide 13: Top Priorities & Midterm Financial Targets 2030
Top Priorities & Midterm Financial Targets 2030 Priorities Midterm Financial Targets 2030 Innovation & Design Wins around 1 billion Sales in 2030 R&D Efficiency Operational EBIT Margin around 25% Excellence China Strategy CAPEX Ratio < 10% (in % of sales) Profitable Growth Free Cash Cash Generation
Slide 14: Applications, Market & Customers, Design Wins
November 11, 2024 Applications, Market & Customers, Design Wins Dr. Jan Dienstuhl, CSO
Slide 15: More Efficient, More Comfortable & Safer
More Efficient, More Comfortable & Safer Electrification & Efficiency Comfort & Premium Safety & ADAS Autonomous Driving Ambient Lighting Touchless Control Airbag Exterieur Functions Rear Lighting ▪ 360° sourround sensing ▪ Stripes ▪ Display gesture recognition ▪ Passenger ▪ Aerodynamic flaps ▪ Dyna
Slide 16: Electrification & Efficiency – Application Examples
Electrification & Efficiency – Application Examples Electrical Fuse Control Enables Zonal Board Nets Motor Control for Aerodynamic Flaps Extends Driving Ranges In-Cylinder Pressure Sensing for Efficient Combustion EV Thermal Management with Pump, Valve and Blower Control 16
Slide 17: Comfort & Premium – Application Examples
Comfort & Premium – Application Examples Hand Gesture Detection to Control Charging Flaps Well-being with Direct Flow Control for New Air Vents Multi-Pixel Dynamic Front Lighting Applications Ambient RGB LED Control for Surface Lighting 17
Slide 18: Safety & ADAS – Application Examples
Safety & ADAS – Application Examples 360° Environment Detection for Reliable Safety Hands-On Steering Wheel Sensing for L2-L4 Autonomous Driving Safe Airbag Firing Control for L1-L5 Autonomous Vehicles Dashboard Ambient Light Control for Safety Warnings 18
Slide 19: At the Edge M/S ICs Do the Sensing & Control the Action
At the Edge M/S ICs Do the Sensing & Control the Action Elmos Products: Mixed Signal ICs (M/S) Centralized / Domain / Zonal Architecture ▪ Already supplied over 6 billion M/S ICs for ▪ Zones 2-4 the global automotive industry ▪ CCUs / DCUs / ECUs 4-50 ▪ M/S ICs are edge devices, bridging the ▪ Modul
Slide 20: BEV Car Platforms Supporting Further Demand Growth
BEV Car Platforms Supporting Further Demand Growth Internal Combustion Engine (ICE) sdfsdfToday‘s Drivetrain Independent / PHEV Tomorrow‘s vs. Battery Electric Vehicle (BEV) ▪ sdfsdf ICE Vehicle Premium Premium BEV ▪ On average 8 Elmos ICs per every new car produced globally ▪ Vast majority of appli
Slide 21: Elmos ICs on the Road Everywhere
Elmos ICs on the Road Everywhere 21
Slide 22: Elmos ICs Delivered to All Major TIER 1 Companies
Elmos ICs Delivered to All Major TIER 1 Companies ...and many more 22
Slide 23: Strong USPs for Sustainable Profitable Growth
Strong USPs for Sustainable Profitable Growth Elmos Key Strengths ▪ Close proximity to our customers and long-standing relationships with OEMs and Tier 1s ▪ Strong system understanding in our focus applications ▪ Access to the best technology for each Mixed Signal application through a leading globa
Slide 24: Automotive Semiconductor Market Positions
Automotive Semiconductor Market Positions Aiming to be the #1 Automotive IC Supplier in all of Elmos Focus Applications Motor Control ICs for ICs for LED Lighting ICs for Ultrasonic Pressure Sensing ICs Airbag Firing ICs HVAC Actuators Interior and Exterior Parking & 360° Ranging for Brake Systems f
Slide 25: Design Wins are Key to Sustainable Growth
Design Wins are Key to Sustainable Growth Design Wins Lifetime Revenue of Won Business since 2019 (Reference 2019 = 100%) ▪ Lifetime revenue of won business more than doubled since 2019 ▪ Applications of new business quite Safety evenly spread over the automotive 35% & ADAS megatrends ▪ Significant
Slide 26: Product Portfolio & Roadmap
November 11, 2024 Product Portfolio & Roadmap Dr. Michael Neuhäuser, CPO
Slide 27: Product Segments
Product Segments Motor Control Lighting Ranging Brushless DC, Stepper and DC Controller ICs Static and Dynamic LED Driver ICs Ultrasonic Distance Sensor ICs Optical SSPs & Pressure Safety/Power/Custom NIR Sensor (HALIOS®), Time of Flight (ToF) and PIR Sensor Signal Processor and Pressure ICs ICs for
Slide 28: Ultrasonic Sensor ICs – Ranging
Ultrasonic Sensor ICs – Ranging Success ▪ Global #1 in Ultrasonic Parking sensor ICs − 1.8+ billion ultrasonic ICs in the field − 50+ Tier 1 customers − ASSP portfolio from low cost to highest performance ▪ Direct cooperation with leading OEMs; new major OEM Design Wins with SOPs in 2025-2028 Paving
Slide 29: Optical Sensor ICs – Gesture Recognition & Rain Light Tunnel
Optical Sensor ICs – Gesture Recognition & Rain Light Tunnel Success ▪ Top #2 in the market since 1996 in HALIOS® Automotive Rain Sensing ▪ Global #1 Passive Infrared (PIR) Presence Detection, award by global #1 surveillance camera manufacturer ▪ Global #1 HALIOS® Gesture Recognition for Infotainmen
Slide 30: RGB LED Driver ICs – Ambient & Rear Lighting
RGB LED Driver ICs – Ambient & Rear Lighting Success ▪ Global #1 in Automotive Interior and Rear Lighting with more than 1.0 billion ICs in the field ▪ LIN RGB Interior Ambient Lighting pioneer with 3rd generation in mass production with >100 Mio ICs p.a. ▪ Most flexible Exterior Lighting IC portfol
Slide 31: Motor Control ICs – HVAC & Thermal Management
Motor Control ICs – HVAC & Thermal Management Success ▪ Highly integrated Motor Drivers enable benchmarks for efficient and low-noise drive solutions ▪ Focus application on Thermal Management and comfort function ▪ Global #1 for Smart LIN HVAC Flap Actuators ▪ Launch of second generation of Motor Dr
Slide 32: Pressure Sensor ICs – Brake by Wire
Pressure Sensor ICs – Brake by Wire Success ▪ Global #1 for Vehicle Dynamics Stability Brake Pressure Sensors: saving lives by precise, redundant sensing; major awards by market leading Tier 1 ▪ Functional Safety competence and experience, ensuring safe and cost- effective solutions ▪ Sensor Signal
Slide 33: Safety, Power and Custom ICs – Airbag & eFuse
Safety, Power and Custom ICs – Airbag & eFuse Success ▪ Global Top #3 for Airbag Chip Set with >25 years experience, fully integrated Airbag SBCs and major award by global Tier 1 ▪ Various successful SBC Developments (System Basis Chip) Paving the Future ▪ Future E/E Architecture will require eFuses
Slide 34: Successful Today & Prepared for the Future
Successful Today & Prepared for the Future RUNNING SUCCESS NEW LAUNCHES FUTURE Electrification & Motor Control ICs − >300 million drivers for brushless motor − 2nd gen driver for brushless motor − 48V board net Efficiency − Global #1 for Smart HVAC actuators − 2nd gen driver for actuator − System so
Slide 35: Growth, Innovation, Global Presence
Successful Today & Prepared for the Future Growth Innovation Global Presence 35
Slide 36: R&D Activities
November 11, 2024 R&D Activities Jochen Vaihinger, CTO
Slide 37: Developing Market Leading Mobility Solutions
Developing Market Leading Mobility Solutions Powerful R&D Organization ▪ >400 product development experts (Hardware, Software, Test, Systems Engineering, Technology) ▪ Global application support and resident engineers ▪ Key expertise: Analog Mixed-Signal Integrated Circuits and Software Solutions fo
Slide 38: R&D Setup Based on German & International Sites
R&D Setup Based on German & International Sites Core Development in German Top Sites and Scalability Using Offshore Development Centers (ODC) ▪ 6 R&D sites in Germany with exceptional hardware and software competencies in developing high-quality automotive semiconductors ▪ Highly skilled engineers w
Slide 39: Strong Product Development Cycle
Strong Product Development Cycle The Automotive Industry is Accelerating Rapidly: Elmos R&D has to Lead Towards Faster Silicon Development Times − Pre-development for new − Definition of product families applications and design − Transfer key functionalities to technologies incl. AI techniques build
Slide 40: Strong Foundry Partners for Best Technology Mix
Strong Foundry Partners for Best Technology Mix Technology Roadmap Elmos is using a broad and competitive Silicon Foundry based technology portfolio to address product needs: ▪ High Voltage Capability ▪ Analog/Mixed-Signal Functionality Manufacturing ▪ Embedded non-volatile partner memory (NVM) (350
Slide 41: Safe and Secure Products Compliant to Automotive Standards
Safe and Secure Products Compliant to Automotive Standards From Automotive SPICE® to IATF16949 "One fits all" scalable development process to secure best in-class quality and performance 41
Slide 42: Zonal E/E Architecture Enables New Applications & Opportunities
Zonal E/E Architecture Enables New Applications & Opportunities Domains ▪ Distributed small ECUs ▪ Heterogeneous networks ▪ Complex software ▪ Central power management Zones ▪ Centralized ECUs ▪ Ethernet Network ▪ Simplified Software Architecture ▪ De-central power distribution 42
Slide 43: New SDV Architecture is Supported by Elmos Software Offerings
New SDV Architecture is Supported by Elmos Software Offerings Software is Part of Elmos Modern MCU E/E Architecture: Software is Integral Part of the Customer Offer Product Development ▪ Support of SDV and OTA application in the new E/E architecture ▪ Strong software mindset built up ▪ Preparing for
Slide 44: Strong Innovation Culture for New Applications
Strong Innovation Culture for New Applications Corporate IP-Strategy IP Results: Innovation Culture Covering New Application Fields, Protecting Products, and Strengthening Competitiveness ▪ Active management of Intellectual Property (IP) and ▪ 923 active patents (09/2024) Patents ▪ 793 active indepe
Slide 45: Market Leading Mobility Solutions
Market Leading Mobility Solutions Market Leading Mobility Solutions to Support Growing Importance of the Edge ▪ High competent and experienced teams, globally supplemented by ODCs ▪ R&D efficiency is a key KPI to ensure competitiveness ▪ Competitive offerings by Silicon Foundry partners in close par
Slide 46: Break – We Will Be Back Shortly!
Break – We Will Be Back Shortly!
Slide 47: Supply Chain Strategy & Operational Excellence
November 11, 2024 Supply Chain Strategy & Operational Excellence Dr. Patrick Schmitt, COO
Slide 48: Transitioning to a Fabless Strategy
Transitioning to a Fabless Strategy ▪ From Integrated Device Manufacturer (IDM) to global operating fabless semiconductor company. ▪ Closing of sale of the Dortmund 350 nanometer fab to Littelfuse expected by end of 2024. ▪ New Elmos products require smaller technologies. ▪ Increased flexibility whi
Slide 49: Foundry and Technology Structure
Foundry and Technology Structure Current Share by Foundry Dortmund Fab 30% 70% Foundries Future Trend Current Share by Technology 180nm 20% 350nm 55% 25% 130nm 49
Slide 50: Test Set-Up and Roadmap
Test Set-Up and Roadmap Current Share in Wafer Test Dortmund (internal) 50% 50% OSATs (external) Current Share in Final Part Test Dortmund (internal) 30% 70% OSATs (external) Future Trend 50
Slide 51: Supply Chain Management
Supply Chain Management ▪ Management of global supply chain and external partners. Semiconductor Manufacturing ▪ Focus on future growth and scalability of processes and organization. ▪ Strong focus on working capital management. Wafer Chip Design Processing Wafer Test Final Test Tape and incl. Assem
Slide 52: CAPEX
CAPEX ▪ Significant investments in recent years mainly in increasing testing capacities. ▪ Short-term sufficient testing capacities installed to meet customer demands. ▪ Midterm additional investments will be required to support targeted growth. ▪ CAPEX will be <10% of revenue in the future. 52
Slide 53: Operational Excellence
Operational Excellence ▪ Continuous improvement mindset! ▪ Management by clear set of Key Performance Indicators (KPI) to enable rapid response to deviations. ▪ Improving Yield remains focus area paired with Overall Equipment Effectiveness (OEE) program: − Internally to optimize inhouse processes. −
Slide 54: China Strategy & M&A Activities
November 11, 2024 China Strategy & M&A Activities Dr. Burkhard von Spreckelsen, CDO
Slide 55: Update: Sale of Dortmund Wafer Fab to Littelfuse
Update: Sale of Dortmund Wafer Fab to Littelfuse Key Aspects ▪ Selling of the Dortmund wafer fab to Littelfuse for approx. 93 million Euro (definitive agreement signed on June 28, 2023) ▪ Closing of the transaction is planned for December 31, 2024 ▪ Elmos to source semiconductors from the Dortmund w
Slide 56: Elmos Approach to M&A
Elmos Approach to M&A M&A Strategy ▪ We aim to be no. 1 or 2 in the businesses, we are active in ▪ We have set a clear financial ambition level to achieve our Operating Model ▪ We continuously review our activities and implement portfolio-optimization as reasonable (sale of SMI in 2019, acquisition
Slide 57: Artificial Intelligence (AI) at Elmos
Artificial Intelligence (AI) at Elmos AI Objective and Ambition ▪ We leverage AI-technologies (analytical and generative AI) to support the organization achieving the targets of the Operating Model AI Use Cases ▪ We focus on use-cases based on established and widely- used AI-technologies in order to
Slide 58: Automotive Market in China: Growth and Innovation
Automotive Market in China: Growth and Innovation Key Aspects Vehicles per 1,000 inhabitants ▪ China is by far the largest automotive market globally with roughly 30 million vehicles produced in 2023 820 750- 780 800 ▪ There are two key volume growth drivers: ▪ Car ownership in China is at a compara
Slide 59: Reasons for Renewal of Elmos China Strategy
Reasons for Renewal of Elmos China Strategy Geopolitical Dynamic Renewed China Strategy ▪ In general, we see trade relationships between China and Strong Market Position of the West tightening Elmos in China ▪ The semiconductor industry is in particular in focus ▪ Based on a strong team of salespeop
Slide 60: China Strategy: Achievements and Next Steps
China Strategy: Achievements and Next Steps Renewed Elmos China Strategy: Local-for- Founding of JiWeiCheng in Shanghai ISO 9001 Certification Local Approach with JiWeiCheng ▪ Vision to supply Chinese semiconductors to the market ▪ Increasingly managing the value-chain from China with Chinese value-
Slide 61: Operating Model & New Financial Targets
November 11, 2024 Operating Model & New Financial Targets Margarita Mamberger, CFO
Slide 62: Elmos Financial Performance 2021 – 2023
Elmos Financial Performance 2021 – 2023 Sales Growth EBIT Margin Free Cash Flow (in % of previous year) (in % of sales) (in % of sales) Elmos Selected Peer Group (Average)1 Elmos Selected Peer Group (Average)1 Elmos Selected Peer Group (Average)1 38.5% 38.9% 29.8% 29.6% 16.0% 16.0% 26.2% 24.6% 23.1%
Slide 63: Elmos New Financial Targets 2030
Elmos New Financial Targets 2030 Target 2030 Main Drivers ➔ Innovation & design wins Sales around 1 billion ➔ Global product roadmap ➔ Stable gross margin EBIT Margin around 25% ➔ OPEX cost management CAPEX Ratio ➔ Operational excellence < 10% (in % of sales) ➔ Test time optimization ➔ Lower CAPEX F
Slide 64: Main Drivers for Profitable Growth & Cash Generation
Main Drivers for Profitable Growth & Cash Generation Gross Margin & OPEX Ratios CAPEX Ratio (in % of sales) Future Trend (in % of sales) Gross Margin Gross Margin OPEX ratios CAPEX ratio 44.9% 46.4% 47.2% 20.0% 18.6% 16.3% 26.3% Future Trend Future Trend 21.8% 21.4% OPEX Ratios CAPEX Ratio 2021 2022
Slide 65: Conclusion
November 11, 2024 Conclusion Dr. Arne Schneider, CEO
Slide 66: Investment Thesis
Investment Thesis Global leader in automotive mixed-signal ICs in attractive niche markets 1 with 40 years of experience Higher Driving megatrends in vehicle electrification, autonomous driving, Cash Generation 2 comfort and digitalization & Shareholder Value 3 Flexible and agile corporate structure
Slide 67: End of the CMD – Thank You for Your Participation!
End of the CMD – Thank You for Your Participation!