Aixtron Se · XETR:AIXA
Aixtron — Investor Presentation (November 2011)
59 slides from Aixtron's investor presentation, November 2011
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation IR Master Presentation including 9M/2011 (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041) © AIXTRON SE, November 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements AIXTRON Investor Presentation 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
AIXTRON Global Presence 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, P.R. 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 Introduction (MOCVD, HVPE, OVPD®, PVPD, PECVD) (CVD, ALD, AVD®) LEDs/OLEDs for displays LEDs/OLEDs for lighting Optoelectronics for Metal and oxid
Slide 5: Value Chain Positioning
Value Chain Positioning Production Chip & Electronic End Equipment Component Modules & Device User Manu- Packaging Manu- Markets Introduction Makers facturers facturers Consumer commu- nication Industrial Display Lighting Medical Automotive P5
Slide 6: Compound Semiconductor Systems: IC Platform
Compound Semiconductor Systems: IC 2 Platform Repeat and multiple orders Turn-key solutions for Compound fab design Proven industry standard & market leader Configurable, extendable common platform Operations Planetary Reactor® AIX G5 HT, 56x2” (14x4”, 8x6”, 5x8”) Close Coupled Showerhead® Integrate
Slide 7: Global MOCVD Market Shares
Global MOCVD Market Shares $113m $164m $238m $340m $185m $133m $231m $155m $202m $289m $486m $533m $1713m Operations Compilation of VLSI RESEARCH Inc. and Gartner Dataquest P7
Slide 8: Equipment Revenues by Application
Equipment Revenues by Application 2011 revenue guidance: ca. €600m - €650m excl. spares: ca. €540m - €590m 800 AIXTRON Equipment Revenues (excl. spares) in EUR m 700 600 Operations 500 Q4/11e 400 300 9M/11 200 actual 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20102011e LED Telecom/
Slide 9: Compound Equipment Order Intake per Quarter
Compound Equipment Order Intake per Quarter million EUR driven by China investments and tangible LED lighting momentum driven by LED TV Appendix driven by telecom/datacom driven by notebook and mobile phone backlighting driven by mobile phone penetration P9 Source: Deutsche Bank Equity Research 2011
Slide 10: Total Revenues by Region
Total Revenues by Region 2008: 2009: 2010: 9M/2011: €274.4m €302.9m €783.8m €470.8m Operations 4% 5% 7% 4% 4% 17.8 14% 11.4 35.9 30.1 18.5 31.1 41.5 21.1 238.2 250.0 716.9 418.9 82% 91% 89% Asia Europe USA P 10
Slide 11: High Brightness (HB) LED Market Forecast in USD
High Brightness (HB) LED Market Forecast in USD HB LED summary forecast by application in USD 2010 18,000 17% Industry & Markets 38% Market Size (USD million) 16,000 33% 7% 14,000 CAGR 10% 12,000 10,000 6% 28% CAGR 8,000 6,000 4,000 2015e 2,000 16% - 2010 2011e 2012e 2013e 2014e 2015e 38% 22% Mobile
Slide 12: 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 market
Slide 13: LED Outdoor market development
LED Outdoor market development Government initiatives are key to adoption Fiscal stimulus in public sector – 3x growth in streetlight Industry & Markets Outdoor LED penetration 750 50% Outdoor Lighting Market (million units) 600 40% LED Penetration Rate 2010 450 30% 300 20% 150 10% 2015e 0 0% 2010 2
Slide 14: LED Commercial market development
LED Commercial market development Market tipping point indicated by shift of focus from lm/W to $/lm Retail adoption: 30-40% in down light segment Industry & Markets Commercial / Retail LED penetration 15 50% Commercial Lighting Market (billion units) 40% 2010 LED Penetration Rate 10 30% 20% 5 10% 2
Slide 15: LED Lighting Momentum Signals
LED Lighting Momentum Signals enforcement GOVERNMENT tax of sanctions standards Industry & Markets technology definition subsidies of (top down) standards capacity incan- incentives descent (bottom up) bans produc- tivity LED ecological awareness (COO) product quality Lighting energy savings return
Slide 16: Tangibility of LED Lighting Momentum
Tangibility of LED Lighting Momentum Ban targets set by top 10 GDP countries Energy Star in place (US Standard) Government EU / US energy saving programs (Tax Credit) Industry & Markets Japanese consumer promotions - EcoPoint China: subsidy policy changing China 12th 5-year plan imminent Korea: SSL
Slide 17: A-19 Bulb: 60W LED Replacement Target
A-19 Bulb: 60W LED Replacement Target Global Brands: Samsung, Osram, Philips, GE, Toshiba, etc Local Stores: Test market phase in leading economies Industry & Markets New light bulbs with higher lm/w start launching in Asia. LED vs. LED vs. Samsung Stores Incan. CFL LED Incan. (x) CFL (x) Average US
Slide 18: Par Bulb: LED Replacement Target – Commercial Lighting
Par 38 Bulb: LED Replacement Target – Commercial Lighting Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Industry & Markets Plusrite 3043 - 75 TCP 16 Watt Sharp 16 Watt - Watt - PAR38 - PAR38 CFL Light Dimmable LED - Product Flood - Halogen Bulb PAR38 Energy used (W) 75 16
Slide 19: Increasing LED Chip Size
Increasing LED Chip Size Strong estimated* area growth: 5 year CAGR of 75% Larger chip sizes lead to epitaxial area increase Industry & Markets Improved visibility for SSL gaining momentum LED Units Material Area 250 150 HB LED Market (bn units) HB LED Market (sq area) 200 125 100 150 75 100 50 50 2
Slide 20: Production Supply Estimates for HB LEDs
Production Supply Estimates for HB LEDs Bear-Bull MOCVD system demand: 2010 - 2015 CAGR of 5-15% Larger chip sizes require further capacity increase Industry & Markets SSL is the strongest driver for material area growth LED Units Material Area 50 40 1.500 Required number of MOCVD reactors Increment
Slide 21: 12-Month Business Development
24 - Month Business Development (€ million) 200.4 204.0 210.3 222.2 51.5 163.3 168.5 175.4 Equipment (only) @ $1.35 Order Intake Adjusted as of Financials Sep. 15, 2011 100.0 321.1 Equipment (only) 250.0 278.7 274.8 273.5 229.9 244.8 203.8 Order Backlog @ $1.35 191.8 212.7 224.7 205.4 Total Revenues
Slide 22: Consolidated Income Statement
Consolidated Income Statement* (€ million) 9M/11 9M/10 +/- Q3/11 Q3/10 +/- Revenues 470.8 559.1 -16% 89.8 212.7 -58% Cost of sales 251.2 264.6 -5% 51.2 102.1 -50% Financials Gross profit 219.7 294.5 -25% 38.7 110.6 -65% Gross Margin 47% 53% -6pp 43% 52% -9pp Selling expenses 25.0 39.9 -37% 7.2 14.8
Slide 23: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 30/09/11 31/12/10 30/09/10 Property, plant & equipment 89.9 77.9 49.6 Goodwill 61.7 62.2 60.8 Other intangible assets 6.6 7.0 7.8 Others 17.4 20.6 19.8 Financials Non-current assets 175.5 167.7 137.9 Inventories, WIP & Finished Goods 255.5 16
Slide 24: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 9M/2011 9M/2010 Q3/2011 Q3/2010 Cash Flow from operating activities 12.4 175.5 -19.8 80.7 Cash Flow from investing activities 53.1 -112.6 3.5 -57.2 Financials Cash Flow from financing activities -57.5 -12.8 0.1 0.0 Exchange rate changes 0.7 1.4 4.5 -
Slide 25: 2011 Guidance Model
2011 Guidance Model 2011 revenue guidance: ca. €600m - €650m 2011 EBIT guidance: ca. 25 - 30% EBIT margin (€ million) Outlook Shippable equipment orders out of €245m total backlog as of 30/09/11 118- 168 Assumed Q4 spares 11 & non-equipment revenues 9M/2011 actual total 471 revenue 458- P 25
Slide 26: Market Prospects
Market Prospects Short-Term Increasing LEDs for exterior, public street & commercial lighting Increased adoption of LEDs for consumer & residential lighting Mid-Term Increased emergence of silicon carbide (SiC) hybrid automotive & Outlook photovoltaic applications Further development of plastic elec
Slide 27: AIXTRON Investor Presentation
P 27 AIXTRON Investor Presentation
Slide 28: 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 500bn by 2015 China China potentially largest single Germany Other consumer of LED lighting by 2015 USA Appendix Japan 50 different indoor and outdoor lighting projects i
Slide 29: China: Investment programs between 2010-2015
China: Investment programs between 2010-2015 Value chain: conversion of incumbent lighting and LED industry LED related subsidies will eventually shift from fixed asset investments over to end-market subsidies. Northern Region Funding profile: Yangtze River Delta Funding profile: <5 cities / provinc
Slide 30: China: Investment Estimates for HB LED Supply Chain
China: Investment Estimates for HB LED Supply Chain 5 Year target: increase HB LED value chain output by 4x Value Chain: regional difference in value, timing and applications Supply chain to support growth of Chinese LED flagship companies 1600 100 3500 1400 Appendix 3000 HB LED Sales (M io USD) Tot
Slide 31: China: Lighting supply chain restructuring for SSL
China: Lighting supply chain restructuring for SSL 5 Year target: increase HB LED value chain output by 4x Value Chain: regional difference in value, timing and applications Supply chain to support growth of Chinese LED flagship companies Global Lighting Supply Value (incl LED) SSL domestic Demand F
Slide 32: Cooperation with Chinese Research Institutes
Cooperation with Chinese Research Institutes Over 30 customers in research and academia Positioned for 5 year plan R&D funding and development programs SINANO: Demo and training facility for Planetary and CCS technology AIXTRON Group Key Project/ Comments Cooperating Research Research Area GaN LED;
Slide 33: White HB LED: Key IP cross license agreements
White HB LED: Key IP cross license agreements Showa Denko Appendix Sharp Source: LEDinside 2007; AIXTRON P 33
Slide 34: Solid State Lighting: Legislation and Subsidies
Solid State Lighting: Legislation and Subsidies Government Legislation: Create energy/cost efficient infrastructure Subsidies: Catalyst to support industry momentum Available Ban Target Country Legislation GDP Rank Subsidies Date Appendix US Yes Yes <2020 1 EU Yes Yes <2012 2 Japan Yes Yes 2012 3 Ch
Slide 35: LED Backlighting Unit (BLU) Market Forecast
LED Backlighting Unit (BLU) Market Forecast LCD panel unit growth (TAM) Adoption towards full LED BLU implementation Emerging markets and new TV Models driving LED utilization rates LED-TV penetration LED-Monitor penetration Appendix 350 100% 300 100% LCD Monitor Market (million units) LCD TV Market
Slide 36: Increasing availability of LED Lighting Products
Increasing availability of LED Lighting Products Government: Energy Star qualified products for release increasing End-Markets: Utility / Government rebate imminent Energy Star Product Release 280 60 Appendix LED replacement Bulbs in Units New Release- avg. luminous efficacy 245 210 55 175 140 50 10
Slide 37: A-19 Bulb: 60W LED Replacement - US-Pricing
A-19 Bulb: 60W LED Replacement - US-Pricing Commercial Lighting: LED reaching economic tipping point Residential Lighting: From social driven to operating cost benefits Government / Utilities can help to reach tipping point LED vs. LED vs. Appendix Store LED Man. Incan. CFL LED Incan. (x) CFL (x) Am
Slide 38: Par Bulb: LED Replacement Commercial Lighting US-Pricing
Par 38 Bulb: LED Replacement Commercial Lighting US-Pricing Distributed in different channels. Functional driven: dimmable, beam angle, etc. to be highlighted LED vs. LED vs. Appendix Store LED Man. Hal. CFL LED Incan. (x) CFL (x) Lowes Utilitech $ 7.7 $ 45 5.9x Sharp GE 1000bulbs.com Sharp $ 3.9 $
Slide 39: A-19 Bulb: 60W LED Replacement Target
A-19 Bulb: 60W LED Replacement Target LED price/performance structure critical to achieve tipping point Pricing: “target to reach 1/3 of today's price by 2015” - Philips Penetration rate expected to be over 30% by 2014 Total Cost Structure 100% Others Appendix Tipping Point Others $20 $15 Profit/Yie
Slide 40: HB LED manufacturing: the race to mass adoption
HB LED manufacturing : the race to mass adoption Lm/W to Lm/$: supporting mass adoption Capital efficiency to enable price / volume manufacturing curve Industry & Markets DOE target of 500 lm/$ by 2015 in reach 15000 200 120 A19 LED Bulb pricing trend Launch of Lm / $ Chip level (100-120 lm/w) IC-II
Slide 41: Compound Semiconductor System Generations
Compound Semiconductor System Generations New generation product adoption by customer base FY 2010: 26% of orders / 13% of revenues = new gen. systems 9M/2011: 63% of orders / 50% of revenues = new gen. systems Compound Semiconductor (CS) Equipment Revenues: €134m €70m €115m €81m €97m €145m €236m €2
Slide 42: Compound Semiconductor System Generations
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 Appendix Year of Introduction Platform Technology Chambers G3 Planetary 2
Slide 43: Compound Semiconductor System Generations
Compound Semiconductor System Generations Larger end-markets adopting increased MOCVD system capabilities Pure Play: customer engagement and competence ownership Chip & Component Chip & Component Chip & Component Chip & Component Appendix Fab Integration IP M ER STO Automation Automation CU Process
Slide 44: HB LED Content by Application
HB LED Content by Application Mobile Appliances (0.1 mm²) # LEDs Mobile Phone BLU 10 Smart Phone BLU 10-15 Keypad 1-3 Flash 1-2 Appendix Display Application (0.25 mm²) # LEDs / BLU Tablet / Netbook BLU 15-30 Notebook BLU 30-50 Monitor BLU 50-75 TV – Edge BLU 150 - 350 TV – Direct BLU 500 - 1000 TV –
Slide 45: LED Cost Structure by Application
LED Cost Structure by Application Appendix Based on: AIXTRON; DisplaySearch Q3/2010; Macquarie Sept. 2010 P 45
Slide 46: Compound Semiconductor Systems: Beyond LEDs
Compound Semiconductor Systems: Beyond LEDs Extensive choice of configurations and enhancements Multiple technologies on one platform Power Management CPV triple-junction Convergence Appendix GaN / SiC for GaAs / Ge III-V / Si, CNT RF power device Covering most Compound materials Power device for su
Slide 47: Material & Technology Convergence
Material & Technology Convergence Operational flexibility: shorter product cycles and HVM efficiency Platform strategy: reduces development time and project risks Modularity: reduce customer COO through modular system design Outsourcing: reduction in assembly time and supplier integration Appendix P
Slide 48: Organic Semiconductor Systems
Organic Semiconductor Systems OVPD®/PVPD enhanced by CCS® technology Full color OLED display and OLED lighting Organic solar cells Organic electronics E-Paper displays Appendix R&D Applications Production Applications R&D Gen1 Gen 2-4 Gen5 (100 x 100 mm) P 48
Slide 49: PECVD: Carbon Nanostructures
PECVD: Carbon Nanostructures AIXTRON Nanoinstruments – Carbon Nanotubes Unique Properties Application Examples Very high thermal conductivity Electronics Appendix Very low resistivity Heat Sinks Very high mechanical stability Field Emission Display Graphene sheet Carbon Nanotube Roll-up P 49
Slide 50: Silicon Semiconductor Systems
Silicon Semiconductor Systems Memory and emerging applications to drive ALD equipment industry ALD/AVD® multi generation film development on complex materials for memory & logic Design to transfer from pre-production R&D Appendix to high volume manufacturing New product for memory and emerging appli
Slide 51: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2010 2009 +/- Revenues 783.8 302.9 159% Cost of sales 372.0 168.1 121% Appendix Gross profit 411.8 134.7 206% Gross Margin 53% 44% +9 pp Selling expenses 48.9 25.5 92% General & admin expenses 30.1 21.3 41% R&D 46.1 32.9 40% Net other op. income/(expenses)
Slide 52: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/10 31/12/09 Property, plant & equipment 77.9 37.8 Goodwill 62.2 58.3 Other intangible assets 7.0 7.8 Appendix Others 20.6 14.8 Non-current assets 167.7 118.7 Inventories, WIP & Finished Goods 167.2 89.6 Trade receivables 88.4 49.3 Other
Slide 53: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2010 2009 Cash Flow from operating activities 147.7 78.9 Cash Flow from investing activities -165.4 -90.1 Cash Flow from financing activities -11.6 153.6 Appendix Exchange rate changes 0.2 1.3 Net change in Cash & Cash Equivalents -29.1 143.7 Cash &
Slide 54: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON SE, Aachen, Germany P 54
Slide 55: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON Ltd., Cambridge, UK P 55
Slide 56: Building Project R&D Center
Building Project R&D Center AIXTRON Sites State of the art R&D center with offices, labs & prototype/non standard production Space for ca. 450 employees, 16,000 sqm, energy efficient design, LED lighting Planned investment: in excess of EUR 40m P 56
Slide 57: Building Phase I (completed in Q3/2010)
Building Phase I (completed in Q3/2010) R&D and engineering offices AIXTRON Sites P 57
Slide 58: Building Phase II (to be completed in Q1/2012)
Building Phase II (to be completed in Q1/2012) Labs & prototype / non standard production AIXTRON Sites P 58
Slide 59: Financial Calendar & Contact Data
Financial Calendar & Contact Data March 2012 FY/2011 Results Conference & Conf. Call April 2012 Q1/2012 Results, Conference Call May 2012 Annual General Meeting, Aachen July 2012 H1/2012 Results Conference & Conf. Call For further information please contact: Investor Relations & Corporate Communicat