Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation IR Presentation – FY/2019 (FSE: AIXA, ISIN DE000A0WMPJ6) © AIXTRON Investor Relations, March 2020
Slide 2: Forward-Looking Statements
DISCLAIMER 2 Forward-Looking Statements This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of AIXTRON. These statements may be identified by words such as “may”, “will”, “expect”, “anticipate”, “contemplate”, “
Slide 3: Our Vision
ABOUT AIXTRON 3 Our Vision Technology. Materials. Performance. Technology. Materials. Performance. We are the recognized We enable our We deliver the technology leader customers to performance driving in complex material successfully shape the economic success deposition. markets of the future, thro
Slide 4: Who we are
ABOUT AIXTRON 4 Who we are Headquarters based near Aachen, Germany Company founded in 1983, >35 years of experience Worldwide presence in 7 countries Technology leader in deposition systems R&D and production facilities in Germany and UK Around 3,500 deposition systems sold worldwide ~
Slide 5: Where we are
ABOUT AIXTRON Where we are -—* Santa Clara USA @ AIXTRON Group @ Representation Cambridge UK 4 ° oe Te ——= e South Korea Herzogenrath e | Germany Pe AIXTRON SE —" Tokyo Headquarters ee Shanghai Japan china x © usinchu Talwan
Slide 6: What We Do
ABOUT AIXTRON 6 What We Do part of lab/tool photographs©Fraunhofer IISB/Kurt Fuchs We provide enabling Deposition Equipment to the Compound Semiconductor and Display Industry For Optoelectronics and Power Electronics For Organic Electronics Applications • Metal-Organic Chemical Vapor Deposition (MOC
Slide 7: Our MOCVD Market Position
ABOUT AIXTRON 7 Our MOCVD Market Position (Market Size in USD) 2016 2017 2018 3% 2% 24% 20% 8% 43% 46% 401m 553m 37% 258m 55% 34% 27% AIXTRON AIXTRON AIXTRON Veeco Veeco Veeco Others AMEC AMEC Others Others Source: Gartner „Market Share: Semiconductor Wafer Fab Equipment, Worldwide, 2018” (publ. Apr
Slide 8: Technology Portfolio for Complex Material Deposition
AIXTRON TECHNOLOGIES AND PRODUCTS 8 Technology Portfolio for Complex Material Deposition OLED: OVPD®/PVPD® Carbon – PECVD NANO: Innovation Pool LEDs / Optoelectronics Lasers (VCSEL/EEL) GaN Power | GaN RF Power Management (e.g. 3D Sensing; Consumer (e.g. Wireless Charging, Fast Electronics; Optical
Slide 9: Revenue Analysis
OPERATIONS 9 Revenue Analysis* * Rounded figures; may not add up 2019 2019 2019 by equipment & spares by end application by region (equipment only) 4% 16% 35% 20% 16% 43% 68% 80% 18% LED Asia Equipment Power Electronics Spares Europe Optoelectronics* Americas Others * Optoelectronics includes applic
Slide 10: Key Financials FY 2019
Financials 10 Key Financials FY 2019* * Rounded figures; may not add up +/- +/- (€ million) 2019 2018 Q4/19 Q3/19 % % Order intake 231.9 302.5 -23 81.4 52.2 56 Order backlog (equipment only) 116.7 138.3 -16 116.7 108.4 8 Revenues 259.6 268.8 -3 75.1 52.6 43 Gross profit 108.7 117.6 -8 34.0 22.1 54 %
Slide 11: 24-Month Business Development
FINANCIALS 11 24 - Month Business Development (€ million) Order Intake (incl. equipment. 78.6 75.6 76.0 72.2 81.4 53.6 52.2 service. spare parts) 44.7 @ $1.20 @ $1.20 Order Backlog (equipment only) 151.9 138.3 138.3 114.9 125.7 116.7 110.1 108.4 @ $1.20 @ $1.20 Revenues 87.9 75.1 (incl. equipment. 6
Slide 12: Consolidated Income Statement
Financials 12 Consolidated Income Statement* * Rounded figures; may not add up +/- +/- (€ million) 2019 2018 Q4/19 Q3/19 % % Revenues 259.6 268.8 -3 75.1 52.6 43 Cost of sales 150.9 151.2 0 41.1 30.4 35 Gross profit 108.7 117.6 -8 34.0 22.1 54 % 42 44 -2 pp 45 42 3 pp Selling expenses 9.9 9.4 6 2.8
Slide 13: Balance Sheet
Financials 13 Balance Sheet* * Rounded figures; may not add up (€ million) 31/12/19 30/09/19 31/12/18 Property. plant & equipment 64.5 64.8 63.1 Goodwill 72.4 72.2 71.6 Other intangible assets 2.4 2.2 2.1 Others 11.7 12.5 13.3 Non-current assets 151.0 151.8 150.1 Inventories 79.0 87.9 73.5 Trade rec
Slide 14: Consolidated Statement of Cash Flows
Financials 14 Consolidated Statement of Cash Flows* * Rounded figures; may not add up (€ million) 2019 2018 Q4/19 Q3/19 Net Result 32.5 45.9 12.2 4.4 Adjust for Non Cash Items 13.1 0.7 3.9 3.0 Changes in Working Capital -2.8 -34.6 20.0 -2.4 Cash Flow from Operating Activities 42.8 11.9 36.1 5.0 Cape
Slide 15: AIXTRON – 2020 Guidance
Outlook 15 AIXTRON – 2020 Guidance* Based on current order situation, 2020 Guidance* Management expects for 2020**: • Total Order Intake between 2020 Shippable EUR 260 ~ 300 million Equipment Order Intake: • Revenues between EUR 98 ~ 138m EUR 260 ~ 300 million Order Backlog as of • Gross Margin of ~
Slide 16: Market Prospects
FUTURE MARKETS 16 Market Prospects Short-Term • Increasing adoption of compound semiconductor-based lasers for 3D sensor systems in mobile devices as well as sensors for infrastructure applications. • Further increasing demand for lasers for ultra-fast optical data transmission of large volumes, suc
Slide 17: Epitaxial Growth Equipment Market Forecast
MARKETS 17 Epitaxial Growth Equipment Market Forecast* * Excluding MBE Micro LED equipment demand as strongest driver from 2021 (Aggressive Model) Power equipment demand to accelerate from 2021 ($ million) 7,000 Base Aggressive 6,000 CAGR: ~35% 5,000 3,323 4,000 3,000 1,588 CAGR: ~21% 2,000 450
Slide 18: AIXTRON Investor Presentation
AIXTRON INVESTOR PRESENTATION 18
Slide 19: AIXTRON MOCVD – Planetary Reactor: Tool-of-Record
AIXTRON TECHNOLOGIES AND PRODUCTS 19 AIXTRON MOCVD – Planetary Reactor®: Tool-of-Record Individual Wafer Rotation = Best Material Uniformity Individual wafer temperature adjustment = Wafer Level Control/Optimization Highest Epi / Product Yield = Lowest Production Cost
Slide 20: AIXTRON – Enabling Emerging Global Mega Trends
AIXTRON TECHNOLOGIES AND PRODUCTS 20 AIXTRON – Enabling Emerging Global Mega Trends GaAs GaN Optical 3D Sensing Mobile Power Supplies for Automotive Communication Lasers communication Consumer Electronics MOCVD Platform Technology GaAs SiC Electric Solar Vehicles Fine Pitch & Infrared LED MiniLED Di
Slide 21: Devices: VCSEL/EEL – Internet of Things Creates New Opportunities
AIXTRON TECHNOLOGIES AND PRODUCTS 21 Devices: VCSEL/EEL – Internet of Things Creates New Opportunities Source: icons from www.flaticon.com 3D Sensing Functionality Facial Recognition Autonomous Driving Lasers: VCSEL/EEL Processor Tailor-made clothing/shoes Interior Design Sensor/Receiver …… Mapping
Slide 22: Devices: GaN/SiC Power Electronics – Superior Performance
AIXTRON TECHNOLOGIES AND PRODUCTS 22 Devices: GaN/SiC Power Electronics – Superior Performance Source: icons from www.flaticon.com Energy Saving Electric Vehicles EV-charging More Efficient Less Heat Light Weight Renewable Energy Data Centers Lower Smaller System Cost Wireless Charging Fast Charging
Slide 23: Devices: ROY LEDs for RGB Displays; UV LEDs for Niche Markets
AIXTRON TECHNOLOGIES AND PRODUCTS 23 Devices: ROY LEDs for RGB* Displays; UV LEDs for Niche Markets Source: LEDinside, Yole Développement Initial RGB* LED Introduction DISPLAYS Expected ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Stadium Fine Pitch MiniLED for MicroLED fo
Slide 24: Devices: MiniLED & MicroLED – The Perfect Future Display Technology
AIXTRON TECHNOLOGIES AND PRODUCTS 24 Devices: MiniLED & MicroLED – The Perfect Future Display Technology Source: LEDinside RGB* ● ● ● Self-Emissive MicroLED ● ● ● ● ● ● Display 1 Wearables ≈ Low Power 100 Consumption Perfect AR/VR Contrast ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● High S
Slide 25: AIXTRON – Instrumental in Evolving Display Technologies
AIXTRON TECHNOLOGIES AND PRODUCTS 25 AIXTRON – Instrumental in Evolving Display Technologies Specialty LED OLED Display Plasma LED Backlit Display MicroLED Display LCD CRT // 1950’s → 2000’s → 2006 → 2010 → Under Development →
Slide 26: APEVA: Complete OLED Deposition System Provider
AIXTRON TECHNOLOGIES AND PRODUCTS 26 APEVA: Complete OLED Deposition System Provider OVPD Deposition OVPD Deposition Line* Automation & Handling • Fully Automated OLED Deposition Lines and Fab Integration as a Complete System Provider • Innovative Deposition Technology with • Higher Efficiency of OL
Slide 27: Organic Electronics – OVPD – APEVA
AIXTRON TECHNOLOGIES AND PRODUCTS 27 Organic Electronics – OVPD® – APEVA Source: DisplaySearch, AIXTRON OLED manufacturing process Cleaning Cleaning Glass cutting ITO deposition Organic material deposition Bonding Coating Etching Cathode deposition Aging Stripping Encapsulation Final test (Thin film
Slide 28: Overview: GaN/SiC as Wide Band Gap Power Electronics
AIXTRON TECHNOLOGIES AND PRODUCTS 28 Overview: GaN/SiC as Wide Band Gap (WBG) Power Electronics Consumer Electronics & IT Automotive Energy Industrial Power Management Power Switching 30V 600V 1.2 kV ≥2kV • Electronic appliances • Infotainment • General automotive • Power Grid / Smart meter • UPS •
Slide 29: SiC in Automotive: Main Inverter as the Major Market Opportunity
AIXTRON TECHNOLOGIES AND PRODUCTS 29 SiC in Automotive : Main Inverter as the Major Market Opportunity Quick charging pole Higher efficiency = 1 kV DC (30 – 300 kW) Battery size Battery 3 reduction 2 OBC DC-DC 1 Main inverter 240 V Cost savings AC Range extension Component Power (kW) Fraction
Slide 30: Carbon Nanomaterials – PECVD
AIXTRON TECHNOLOGIES AND PRODUCTS 30 NANO: Innovation Pool Carbon Nanomaterials – PECVD Graphene and Carbon Nanotube Deposition Systems • Proprietary thermal and plasma enhanced chemical vapor deposition technology • Excellent uniformity and reproducibility with fast turnaround cycle times • BM plat
Slide 31: AIXTRON Investor Presentation
AIXTRON INVESTOR PRESENTATION 31
Slide 32: Order Intake per Quarter (Equipment Only)
OPERATIONS 32 Order Intake per Quarter (Equipment Only) driven by strategic 250 (EUR million) China investments 200 Lasers, ROY driven by driven by LED TV Overcapacity LEDs and Power notebook Absorption, Electronics driven by backlighting Industry driving demand 150 telecom/datacom Consolidation and
Slide 33: Annual Total Revenues by Application (including spares)
FINANCIALS 33 Annual Total Revenues by Application (including spares) 800 (EUR million) 700 600 500 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LED Power Electronics Optoelectronics* Others Spares, Services, etc. Silicon*
Slide 34: AIXTRON Competitive Landscape
INDUSTRY 34 AIXTRON Competitive Landscape USA Europe China Korea Japan GaAs/InP Opto Optoelectronics, ROY LED GaN LED TOPEC Power GaN Power SiC Power OLED
Slide 35: Consolidated Income Statement
FINANCIALS 35 Consolidated Income Statement* * Rounded figures; may not add up (€ million) 2019 2018 2017 Revenues 259.6 268.8 230.4 Cost of sales 150.9 151.2 156.4 Gross profit 108.7 117.6 74.0 % 42% 44% 32% Selling expenses 9.9 9.4 10.2 General & admin expenses 16.5 18.4 17.1 R&D 55.0 52.2 68.8 Ne
Slide 36: Balance Sheet
FINANCIALS 36 Balance Sheet* * Rounded figures; may not add up (€ million) 31/12/19 31/12/18 31/12/17 Property, plant & equipment 64.5 63.1 64.3 Goodwill 72.4 71.6 71.2 Other intangible assets 2.4 2.1 1.8 Others 11.7 13.3 4.0 Non-current assets 151.0 150.1 141.3 Inventories 79.0 73.5 43.0 Trade rece
Slide 37: Consolidated Statement of Cash Flows
FINANCIALS 37 Consolidated Statement of Cash Flows* * Rounded figures; may not add up (€ million) 2019 2018 2017 Cash Flow from operating activities 42.8 13.0 70.1 Cash Flow from investing activities -6.8 -16.1 40.7 Cash Flow from financing activities -1.2 10.4 1.2 Exchange rate changes -0.1 2.4 -5.
Slide 38: Financial Calendar & Contact Data
38 Financial Calendar & Contact Data • April 30, 2020 Q1/2020 Results, Conference Call • May 20, 2020 Annual General Meeting, Aachen, Germany • October 29, 2020 9M/2020 Results, Conference Call • February 2021 FY/2020 Results, Conference Call For further information please contact: Investor Relation
Slide 39: Technology. Materials. Performance.
Technology. Materials. Performance. AIXTRON SE Dornkaulstr. 2 52134 Herzogenrath Germany Phone +49 (2407) 9030-0 Fax +49 (2407) 9030-40 E-Mail invest@aixtron.com