Comet Holding Ag · SIX:COTN
Comet — Investor Day (November 2023)
83 slides from Comet's investor day presentation, Nov 9, 2023
Slide 1: Welcome to Comet's Capital Markets Day
Welcome to Comet’s Capital Markets Day November 9, 2023 Zurich, Switzerland
Slide 2: Agenda
Agenda Time Topic Speaker 09:30 Welcome Ulrich Steiner, VP Investor Relations & Sustainability 09:35 – 10:10 A long and wide runway ahead Stephan Haferl, CEO 10:10 – 10:30 Financials Nicola Rotondo, Interim CFO 10:30 – 10:45 Coffee break 10:45 – 11:05 Technology leadership through innovation Michael
Slide 3: Cautionary statement regarding forward looking statements
Cautionary statement regarding forward looking statements This document contains forward-looking statements about the Comet Group that may be subject to uncertainty and risk. Readers should therefore be aware that such statements may deviate from actual future outcomes or events. Forward- looking st
Slide 4: A long and wide runway ahead
Capital Markets Day 2023 A long and wide runway ahead Stephan Haferl, CEO
Slide 5: Agenda
Agenda 01 Comet at a glance 02 Market trends and developments 03 Strategy 04 Outlook and targets
Slide 6: Committed to enabling the semiconductor industry
Comet at a glance Committed to enabling the semiconductor industry High-End RF Power delivery systems for plasma applications High-End X-Ray systems for industrial environment from R&D to production High-End X-Ray components and modules for industrial applications Comet CMD 2023 / CEO 11/9/2023 6
Slide 7: Positioned for growth: covering the complete semiconductor value chain
Comet at a glance Positioned for growth: covering the complete semiconductor value chain front-end process middle-end process back-end process Industry Semi & Electronics wafer fabrication wafer level packaging assembly & packaging equipment Value chain Vertical components, modules semiconductor adv
Slide 8: Leading market positions in RF power and x-ray
Comet at a glance Leading market positions in radio frequency (RF) power and x-ray: cutting-edge technology for our customers Plasma Control 65% Industrial 22% Industrial 13% of Group of Group Technologies of Group sales FY22 X-Ray Systems sales FY22 X-Ray Modules sales FY22 #1 Top 3 #1 in vacuum ca
Slide 9: Global presence close to our customers
Comet at a glance Global presence close to our customers 38% 11% 50% of 2022 of 2022 of 2022 Group sales Group sales Group sales Taastrup (Den) Aachen (Ger) Hamburg (Ger) Montreal (Canada) Flamatt (CH), HQ Suwon (KOR) San José (USA) Shelton (USA) Yokohama (JPN) Shanghai (CHN) Hsinchu (TWN) Employees
Slide 10: Market trends and developments
Market trends and developments
Slide 11: The technology inflections driving our growth
Market trends The technology inflections driving our growth: more plasma processing and x-ray inspection Heterogeneous Electrification 3D and nano integration semi structures (Electronics for ADAS and batteries) (Advanced packaging) Comet CMD 2023 / CEO 11/9/2023 11
Slide 12: Grow stronger and more streamlined with our customers
Market trends Grow stronger and more streamlined with our customers > 80% (e) 2022 semi revenues: USD 574bn Net sales into semi (in total of Group net sales) 71% 2030 semi revenues forecast: > USD 1trn POC net sales (e) CHF 800 - 900 mn 57% FY22 net sales CHF 586.4 mn FY19 net sales Semi / Electroni
Slide 13: Fab construction from 2022 to 2024 opens huge potential
Market trends Fab construction from 2022 to 2024 opens huge potential 20 14 22 China 48 9 Japan 3 South Korea 7 Taiwan 7 SE Asia 82 fabs need to be equipped Source: SEMI, World Fab Forecast Q3 2023 Comet CMD 2023 / CEO 11/9/2023 13
Slide 14: Microchip demand drives long-term growth for wafer fabrication equipment
Market trends Microchip demand drives long-term growth for wafer fabrication equipment WFE spend projections CAGR 2022 to 2027: ∼ 9% USD 121bn (2) Bottom reached in FY23: -12%(1) year-on-year (range of estimates -3% to -16%, USD 98bn -10% to -17% excl. lithography) USD 86bn (1) Wide range of forecas
Slide 15: Advanced packaging: a business opportunity driven by new applications
Market trends Advanced packaging: a compelling business opportunity driven by new applications Advanced packaging (AP) CAGR AP 2022 to 2027: ∼ 11% USD 133bn AP as major driver for further performance gains for HP computing, USD 95bn 60bn AI/ML, augmented/virtual reality (AR/VR), USD 66bn 45% 5G, sma
Slide 16: Semiconductors considered as a strategic asset
Market trends Semiconductors considered as a strategic asset EU funding program (IPCEI)) U.S. Made in Chips China 2025 act • major geopolitical tensions: strengthening of continental value chains • high degree of uncertainty: • government interventions: risk of overcapacities, misallocation future o
Slide 17: Growth: SAM exceeds TAM by far
Market trends Growth: SAM exceeds TAM by far TAM SAM Comet operates in USD 5.8bn USD 3.3bn markets with highly attractive growth profiles USD 4.3bn + 35% + 83% USD 1.8bn Forward integration 2.6 78% at PCT (Synertia) 3.8 65% 2.8 65% and at IXS/IXM in 1.3 74% semiconductor: new revenue streams TAM 202
Slide 18: Strategy
Strategy
Slide 19: Pivot into semi in 2019
Strategy Pivot into semi in 2019: better growth rates and profitability potential than legacy markets gain enter 2025 start CMD 2023 Targets set in 2019 for 2025 • Net sales > CHF 830 million 2019 • divestment of eBeam division • ∼ 25% EBITDA • market share gains in all 3 divisions • ∼ 30% ROCE • Sy
Slide 20: Medium-term targets: adjusted slightly upwards and postponed
Strategy Medium-term targets: adjusted slightly upwards and postponed gain enter Peak of next semi cycle (POC) start CMD 2023 New targets for next POC: 2019 Targets FY 2023 Net sales Net sales CHF 800 million to 900 million CHF 380 million to 400 million EBITDA margin EBITDA margin 25% to 30% 7.0% t
Slide 21: Playbook: win semi, execute Boost, focus on core
Strategy Playbook: win semi, execute Boost, focus on core Focused growth strategy Build product portfolio with product leadership Efficient organization Focus on customer centricity Value-based culture Aspiring to excellence from within Comet CMD 2023 / CEO 11/9/2023 21
Slide 22: Growth through expansion of product portfolio
Strategy Growth through expansion of product portfolio and Growth extension of our product leadership Group Divisions • forward integration: Synertia® power delivery platform PCT • market penetration: tier 1 WFE, regional champions • portfolio balancing: increase logic and other semi exposure Growth
Slide 23: Covering the full plasma excitation chain with our own products
Strategy Covering the full plasma excitation chain Growth with our own products Vacuum Matchboxes RF Generator Capacitors Advanced Energy X X MKS Instruments X X Trumpf X Meiden X Daihen X X Comet CMD 2023 / CEO 11/9/2023 23
Slide 24: Step-wise expansion in Penang: secure future growth
Strategy Step-wise expansion in Penang: Growth secure future growth Efficiency Comet 2025 Expansion in current location: 4 Penang: Asian Hub • production start in 2020 • doubling of capacity, execution Own building synchronized with the semi cycle 3 Group best cost production Planning for Comet 2030
Slide 25: Develop a more resilient, high-performing and scalable organization
Strategy Develop a more resilient, high-performing Efficiency and scalable organization Culture Efficiency / profitability measures • Penang expansion • site closure / site consolidation USA • workforce adaptation • operational efficiency: lean production Continue to enhance resilience • balance reg
Slide 26: Sustainability program: targets defined, focus on climate protection
Strategy Sustainability program: targets defined, focus on Culture climate protection Priorities Eco-design: eco-intelligent products / Science-based target initiative / Reporting readiness / KPIs Stepwise ESG roadmap implementation: Progression towards an integrated sustainability strategy Comet CM
Slide 27: Outlook and targets
Outlook and targets cemet group
Slide 28: WFE capex spend expected to recover in 2024
Outlook and targets WFE capex spend expected to recover in 2024 NAND oversupply PCT sales NAND undersupply in rebound Most likely Q2/24e, DRAM in Q4/23e in Q3/19 scenario Memory industry supply significantly reduced in 2023: reduction of inventories NAND undersupply Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/
Slide 29: Growth story intact: transition year 2023 as turning point
Outlook and targets Growth story intact: transition year 2023 as turning point for the next upswing Net sales CHF 800mn - 900mn Ambition Net sales EBITDA margin Net sales > CHF 1bn CHF 380mn - 400mn 25% to 30% EBITDA margin Return on capital employed (ROCE) 7.0% to 9.0 % 30% to 35% 2023 Peak of next
Slide 30: CEO
Comet CMD 2023 / CEO 11/9/2023 30
Slide 31: Financials
Financials Nicola Rotondo / Interim CFO
Slide 32: Targets for the next peak of the semiconductor cycle adjusted slightly upwards
Targets for the next peak of the semiconductor cycle (POC) were adjusted slightly upwards 800–900 25–30% 30–35% Net sales (million CHF) EBITDA margin (%) ROCE: return on capital employed (%) Assumptions for POC targets: Core RF subsystems market: CAGR of 7.5% 2022 to POC / Peak of the semiconductor
Slide 33: Consistent sales growth to continue
Consistent sales growth to continue Percentage of net sales generated with the semiconductor industry Long-term growth story continues 38% 54% 71% >80% Accelerated growth from 2012 to 2017: CAGR(e) 2012 to 2022: +10.6% ∼ +7.7%* matchboxes market gains +5.8% 2017 to 2022 impacted by Covid-19 +15.7% B
Slide 34: Profitability and returns did and will increase in line with revenue growth
Profitability and returns did and will increase in line with revenue growth 27.5% 32.5% 20.3% 26.3% 14.3% 11.9% 18.0% 12.9% 19.8% 16.5% 5.0% 214 443 586 850 2012 2017 2022 POC 2012 2017 2022 POC sales EBITDA margin Comet peer group, 75th percentile Steepening of profitability curve, driven by the RO
Slide 35: Divisional contribution to POC targets
Divisional contribution to POC targets Net sales Comet at POC: EBITDA margin ROCE margin CHF 800 million to 900 million contribution contribution Above group average PCT PCT: 60%–70% Above group average PCT Group: Group: 30%–35% 25%–30% IXM IXS: 20%–25% Below group average IXS IXM Below group averag
Slide 36: Multiple drivers for profitability increase
Multiple drivers for profitability increase Volume driven by the ongoing growth of PCT - Malaysia Matchboxes served - lean primarily from Malaysia during the next cycle * Ongoing commitment to PCT: 5-6pp IXS & IXM 2-3pp fund product development Increase our presence in Asia and strengthen developmen
Slide 37: Continued investments into capex and R&D
Continued investments into capex and R&D to strengthen market leading positions 9% 13% Target range Target range 4% to 7% of net sales 10% to 12% of net sales 2% 10% 2012 2014 2016 2018 2020 2022 POC 2012 2014 2016 2018 2020 2022 POC capex in % of sales R&D in % of sales Main investment in Penang Ne
Slide 38: Sound balance sheet: solid financial footing for growth plans
Sound balance sheet: solid financial footing for implementation of growth plans 65% Target range 24% Target range Target range 1.0x 50% to 65% 10% to 20% <2x 50% 8% -0.4x 2012 2014 2016 2018 2020 2022 POC 2012 2014 2016 2018 2020 2022 POC 2012 2014 2016 2018 2020 2022 POC equity ratio cash in total
Slide 39: Capital efficiency: expected to further improve
Capital efficiency: from good levels expected to further improve Target range Target Target range 26% 2023 to POC 1.9 11% 10% to 15% >1.7 55% to 65% Target range ~20% 17% 1.4 0% 2012 2014 2016 2018 2020 2022 POC 2012 2014 2016 2018 2020 2022 POC 2012 2014 2016 2018 2020 2022 POC NWC in % of sales ca
Slide 40: Dividend and share price appreciation linked to economic profit
Dividend and share price appreciation linked to economic profit generates value for shareholders 75% Target range 25% to 45% of net income 32% 0.4 0.8 1.1 1.1 1.2 1.5 1.2 1.0 1.3 3.5 3.7 2012 2014 2016 2018 2020 2022 POC 2012 2014 2016 2018 2020 2022 POC dividend [CHF] payout ratio [%] share price [
Slide 41: A rock-solid balance sheet as the basis for our focus strategy
A rock-solid balance sheet as the basis for implementing our focus strategy in any market situation 41
Slide 42: Division IXM: Technology leadership through innovation
Division IXM: Technology leadership through innovation Michael Berger, Division President IXM
Slide 43: Turning industry trends into IXM's solution portfolio
From Global Trends to Industrial X-ray Solutions Turning industry trends into IXM’s solution portfolio Comet trends Electrification Digitalization future mobility hyperautomation cloud & edge computing machine learning (XaaS) X-ray global trends Non-destructive 3D printing batteries miniaturization
Slide 44: Transforming IXM's solution portfolio into new markets
Market and product development Transforming IXM’s solution portfolio into new markets Market Segments 2019 New markets Product Series: Stationary Modules Existing markets Portables Customized products Comet CMD 2023 / IXM 11/9/2023 44
Slide 45: Transforming IXM's solution portfolio into new markets
Market and product development Transforming IXM’s solution portfolio into new markets Market Segments 2019 2023 FXE Micro Focus New markets MF MesoFocus Product Series: Stationary Modules XP Existing markets Portables UP ECO Customized products Comet CMD 2023 / IXM 11/9/2023 45
Slide 46: Transforming IXM's solution portfolio into new markets
Market and product development Transforming IXM’s solution portfolio into new markets Market Segments 2019 2023 2025+ FXE Micro Focus FYNE Nano Focus New markets MF MesoFocus EXPLORER Product Series: Next generation: Stationary Modules XP XP Existing markets Portables UP UP ECO ECO Customized produc
Slide 47: IXM's new products contribute 41% to revenue in 2023(e)
Impact of new product introductions IXM’s new products introduced since 2021 contribute with 41% to revenue in 2023(e) New products 41% Existing products 59% Comet CMD 2023 / IXM 11/9/2023 47
Slide 48: Where we play: market and product segments – strategic focus
IXM strategy in a nutshell Where we play: market and product segments – strategic focus Strategic core elements: 1 Push to semi 2 Expand into batteries & electronics markets 3 Expand portfolio and profitability in NDT 4 Increase customer centricity Asia Comet CMD 2023 / IXM 11/9/2023 48
Slide 49: Where we play: market and product segments – market positions
IXM strategy in a nutshell Where we play: market and product segments – market positions Industrial X-ray market Main market Product Comet segments segment positioning Stationary & #1 Integrated Tubes 3 #1 Stationary Modules #3 Sealed Micro Focus 2 new entry Modules in metal ceramic x-ray tubes Open
Slide 50: Dedicated commercial teams established in market segment hubs
Customer Centricity Asia Dedicated commercial teams established in market segment hubs over the past 2 years Taiwan 4 South Korea Shared commercial support South Korea China Japan Sales & Customer Support team China Taiwan Market Segment Management for the battery market Japan and China Sales teams
Slide 51: New products for growing markets
New products for growing markets
Slide 52: MesoFocus: making EV batteries safer and more reliable
MesoFocus Product Series MesoFocus: making EV batteries safer and more reliable 125% Expected growth year-on-year 22/23 Expected doubling in 2024 Comet CMD 2023 / IXM 11/9/2023 52
Slide 53: Key contributors to sales growth
FXE & FYNE Micro- and Nano Focus X-ray Modules Key contributors to sales growth Meeting micro- and nano-resolution needs along the semiconductor and electronics value chain Wafer processing Advanced IC packaging PCB Final product Traditional IC packaging 2024 Future products – True Nano Focus New pr
Slide 54: Enabling faster in-line CT inspection in Industrial NDT
XP and UP Mini Focus X-ray Modules Enabling faster in-line CT inspection in Industrial NDT Up to 33% higher power ratings compared to traditional X-ray tubes Enabling up to 25% shorter exposure times With the XP and UP product series Comet X-Ray expands and maintains its #1 market position in statio
Slide 55: Comet x-ray: The Powerhouse of Industrial X-ray
Comet x-ray The Powerhouse of Industrial X-ray
Slide 56: Division IXS: Shaping the inevitable future
Division IXS: Shaping the inevitable future Dionys van de Ven, Division President IXS
Slide 57: Slide 57
Slide 58: Priorities to support the mid-term Group targets
Priorities to support the mid-term Group targets Superb Grow customer Insights profitability experience Comet CMD 2023 / IXS 11/9/2023 58
Slide 59: Focus on the most attractive growth market
Focus on the most attractive growth market … +123% Semi & electronics +55% SAM more +42% +41% +36% than doubles +22% +22% +13% by 2026e, to ∼ USD 450mn Semi / Electronics Automotive Labs / R&D Aerospace TAM: growth '22-'26e SAM: growth '22-'26e Comet CMD 2023 / IXS 11/9/2023 59
Slide 60: Focus on geographies with the highest growth potential
… as well as on the geographies with the highest growth potential Europe 11% Strengthened teams in Korea focus regions Taiwan, 7% Japan Americas Korea, Japan and USA China 10 7% 21% 25% Taiwan Next step: expand in 15% Southeast Asia Southeast Asia 14% % = percentage x-ray inspection market distribut
Slide 61: IXS in transition: repositioning and growth initiatives gaining traction
IXS in transition: repositioning and growth initiatives gaining traction Product portfolio transition: Focus Regional Sales, Service and Application teams to deliver best in class customer experience Full integration of Dragonfly Team (ORS-Montreal) Comet CMD 2023 / IXS 11/9/2023 61
Slide 62: Successful entry into semi: co-creation with strategic partner
Successful entry into semi: co-creation with strategic partner opens-up new insights Increased installed base at semiconductor market leader: our co-creation partner Customer testimonial: ”I have never seen bumps like that”, “We just found a new failure type”, “We finally get the insights we need in
Slide 63: X-ray: solving future needs in the semi industry
X-ray: solving future needs in the semi industry Semiconductor industry is driven by miniaturization & efficiency Next generation x-ray as valuable inspection method for Advanced packaging for Chip on Substrate X-Ray as booster for faster time-to-market & increased yield Comet CMD 2023 / IXS 11/9/20
Slide 64: Zero Defects Insights
ZERO DEFECTS INSIGHTS FORESIGHT Comet CMD 2023 / IXS 11/9/2023 64
Slide 65: Next generation 3D x-ray inspection provides fast and easy insights
Next generation 3D x-ray inspection provides fast & easy insights to killer defects Specimen: Advanced Packages Tools for inspection / failure analysis x-ray Optical FIB-SEM 2D Next Gen 3D Tilt Substrate Missing bump CU Pad CU CU Bridge Pad Pad Bulge/big-bump CU Pad CU CU Small bump / non-wet Pad Pa
Slide 66: Zero Defects: New Test Strategies
ZERO DEFECTS Microchip New Test Strategies Copper bumps Microchip Copper bumps Substrate CU CU CU Pad Substrate Pad Pad INSIGHTS FORESIGHT Comet CMD 2023 / IXS 11/9/2023 66
Slide 67: Zero Defects: New Test Strategies
ZERO DEFECTS New Test Strategies CU CU CU Pad Substrate Pad Pad past future Optical Xray XRD SEM End-to-End Analytics Design Lab Fab Build statistic Learn to predict Cross-Inspection-Correlation Cross-Process-Correlation INSIGHTS FORESIGHT Comet CMD 2023 / IXS 11/9/2023 67
Slide 68: 1mm 100µm 10µm
1mm 100µm 10µm 1µm 100nm 10nm 60µm Source: all image property rights remain with Comet Yxlon and images are not to be photographed, copied or distributed Comet CMD 2023 / IXS 11/9/2023 68
Slide 69: Zero Profitable Defects
ZERO PROFITABLE DEFECTS GROWTH We are fully dedicated to deliver the superior inspection solution for the Advanced 3D Packaging challenge INSIGHTS FORESIGHT Comet CMD 2023 / IXS 11/9/2023 69
Slide 70: Division PCT: Empowering innovative semiconductor process technologies
Division PCT: Empowering innovative semiconductor process technologies Joeri Durinckx, Division President PCT
Slide 71: We empower new technologies
We empower new technologies Fully integrated Creating RF subsystem new standards provider Smart Leading edge Data driven Comet CMD 2023 / PCT 11/9/2023 71
Slide 72: Comet PCT at a glance
Comet PCT at a glance Product range Developing smart RF subsystems Components Vacuum Capacitors #1 43 ∼40% / ∼70% market share Design Wins 2023 Matchboxes / Vacuum Capacitors total product portfolio RF Power Subsystems RF Matchboxes ∼120 ∼175 Active patents R&D and application RF Generators engineer
Slide 73: Consistent execution of the strategy defined in 2019
Consistent execution of the strategy defined in 2019 Market share Product Asia & portfolio presence share of wallet Strong customer intimacy Forward integration Asia Design Center Co-creation Modularization China 2nd sales office Expand customer base Data driven insights Taiwan sales & service Innov
Slide 74: How do we make PCT more resilient to a semiconductor correction?
How do we make PCT more resilient to a correction in the semiconductor industry? Adjust global organization for further growth • improve TOM (Target Operating Model) for global Be flexible effectiveness and scalability • leaner end-to-end processes with global owners Become Improve scalable Respond
Slide 75: More plasma processes: improved need for RF power subsystems
More plasma processes: improved need for Market share & RF power subsystems share of wallet ALE N A D/C etch ALD / PEALD PVD PECVD Trends Semiconductor Necessary RF Power technologies processes subsystems Players Electronic manufacturers Microchip manufacturers OEM RF power subsystems Comet CMD 2023
Slide 76: Need for more plasma processes – RF market outgrowing expectations
Need for more plasma processes – Market share & RF market outgrowing original market expectations share of wallet ALE N A D/C etch ALD / PEALD PVD PECVD Trends Semiconductor Necessary RF Power technologies processes subsystems ~50 % finFET CFET ∼6.5 % ∼7.5 % Semiconductor IC value Logic shrinking ro
Slide 77: Expansion product portfolio
Expansion product portfolio Product portfolio Development Industry 4.0 site Aachen platform concept First prototype line, SMD line Generator / Match Product presentations at shows / customers Concept smartLABs Product launch Semicon West 2022 RF Matchbox Dual output Dual frequency New motors and dri
Slide 78: Synertia market introduction progressing well
Synertia® market introduction progressing well Product portfolio Company size Demonstration Initial PO Qualification Design win High volume PO First design wins with tier 1/2/3 Tier 1 1 3 1 1 2 1 recently Pipeline filling up Tier 2 6 2 1 4 2 2 at all stages More design wins Tier 3 1 1 1 1 and first
Slide 79: The best is yet to come
The best is yet to come Product portfolio Development features, Expand Synertia® RFG Modules ready for customized Introduction of Adjacent markets applications according portfolio Synertia® RFM designs service organization customers needs Vacuum Capacitors: increase market share by differentiated de
Slide 80: Successful expansion of Asia business
Successful expansion of Asia business Asia presence Proximity Design Center Manufacturing Locations in major Asian Solutions for Asian markets HVM and repairs in semiconductor markets. out of Korea. Malaysia. China Korea New site Penang, MY Taiwan Start engagement in 2020 Expansion • Investment ligh
Slide 81: Comet Group
cemet group
Slide 82: Q&A session
Q&A session Stephan Haferl, CEO Nicola Rotondo, Interim CFO Joeri Durinckx, Division President PCT Dionys van de Ven, Division President IXS Michael Berger, Division President IXM Moderator: Ulrich Steiner, VP Investor Relations & Sustainability
Slide 83: Thank you for attending Comet's Capital Markets Day 2023
Thank you for attending Comet’s Capital Markets Day 2023