Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Investor Day (November 2024)
90 slides from Advanced Energy Industries's investor day presentation, Nov 19, 2024
Slide 1: Advanced Energy (AEIS) 2024 Analyst Day
Advanced Energy (AEIS) 2024 Analyst Day NOVEMBER 19, 2024
Slide 2: Safe Harbor
Safe Harbor Advanced Energy Industries, Inc.'s guidance and other statements herein or made on the Analyst Day conference call contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of th
Slide 3: Non-GAAP Measures
Non-GAAP Measures All financial figures presented in this presentation, such as gross margin, operating expense item, operating margins, EBITDA, other income, tax rate, earnings per share and depreciation, are on a non-GAAP financial basis unless otherwise specified. Detailed reconciliations of GAAP
Slide 4: Today's Speakers
Today’s Speakers Steve Kelley Paul Oldham Juergen Braun Emdrem Tan John Donaghey Edwin Mok President and Chief Executive Vice President and Senior Vice President Executive Vice President Executive Vice President and Vice President, Strategic Executive Officer Chief Financial Officer Plasma Power Pro
Slide 5: Agenda
Agenda Lead the Future of Precision Power Extend Semiconductor Leadership Capture AI Opportunity in Data Center Computing Accelerate Growth in Industrial & Medical Deliver Shareholder Value Closing Remarks Q&A Session
Slide 6: Lead the Future of Precision Power
Lead the Future of Precision Power Steve Kelley AEIS 2024 Analyst Day President and Chief Executive Officer November 19, 2024
Slide 7: Lead the Future of Precision Power
Lead the Future of Precision Power 01 02 Precision power leader enabling Expanding set of high-end next generation processes and opportunities across diverse end technologies markets 03 04 Solid revenue growth driven by Superior earnings power with new products, share gain, and well-defined path to
Slide 8: 2030 Target Financial Model
2030 Target Financial Model NON-GAAP(1) NON-GAAP(1) REVENUE GROSS MARGINS EPS $3.0B ~43% $15.00 $2.5B organic + Maintain > 40% through > 2X revenue growth $0.5B inorganic business cycles on improved margins (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP fina
Slide 9: Proprietary Power Solutions for High-Value Markets
Proprietary Power Solutions for High-Value Markets SEMICONDUCTOR INDUSTRIAL MEDICAL DATA CENTER AE KEY ATTRIBUTES: EQUIPMENT COMPUTING Broad portfolio of leadership technologies Long life-cycle applications > 70% of revenues from sole- sourced designs Strong new product and design win momentum Proce
Slide 10: Sustainable Competitive Advantages
Sustainable Competitive Advantages Industry-leading Broadest portfolio of Largest technical power technologies precision power team of ~1,500 power for advanced products designers and processes development engineers Deepest application Operational excellence know-how with award-winning execution and
Slide 11: Technology Leadership and Market Leading Positions
Technology Leadership and Market Leading Positions Industrial Power Large portfolio of high- value and configurable solutions Powering wide-range of industrial applications Medical Power Semi Process Power #2 in Medical power(2) Data Center Power Enabling therapeutic, #1 in plasma power(1) diagnosti
Slide 12: "One AE" Strategy a Force Multiplier
“One AE” Strategy a Force Multiplier More New Products More Efficiency Consolidated factories to drive world-class execution, quality and cost Fast Integration More Customers One culture across the New unified website and company digital marketing expand customer base
Slide 13: World-Class Leadership Team
World-Class Leadership Team Seasoned industry operators with solid track record Deep operating knowledge in the power and semiconductor markets Average of over 30 Steve Kelley Paul Oldham John Donaghey Emdrem Tan Juergen Braun years of industry President and Executive Vice President and Executive Vi
Slide 14: A $10.5 Billion Precision Power SAM
A $10.5 Billion Precision Power SAM Growing at 6.5%+ CAGR(1) $3.1B $4.5B $1.7B Data Center Computing $1.2B Semiconductor Industrial and Medical Telecom and Networking (1) All market size and CAGRs are based on SEMI, TechInsight, WAWT, MTC, Wall Street reports, and management estimates
Slide 15: Multiple Macro Drivers
Multiple Macro Drivers Artificial Intelligence $1 Trillion Semi Market(1) Driving increased power consumption Increasing use of semiconductor in data center and demand for leading- technology across many industries edge silicon Energy Efficiency Electrification Need to reduce power consumption Incre
Slide 16: Semiconductor Technology Leadership
Semiconductor Technology Leadership #1 in plasma power technology and market share(1) eVoS ME Provide critical technologies for building 3D device architectures Bias Solution Solid momentum and on-track to ship >250 units of next generation plasma platforms by year-end 2024 Modular platforms acceler
Slide 17: Accelerate Growth in Industrial & Medical
Accelerate Growth in Industrial & Medical 01 02 Growing portfolio of best-in- “Quick turn” engineering class power solutions teams customize solutions for demanding applications 03 04 Customer-friendly website In-house manufacturing and digital marketing enable ensures high quality and long- AE to r
Slide 18: Capturing AI Opportunities in Data Center Computing
Capturing AI Opportunities in Data Center Computing Focus on high-end, Technology leader Pipeline of proprietary proprietary with roadmap to opportunities applications enables enable Megawatt expected to add over profitable growth power for AI $100 million in annual applications revenue ORv3 HPR AE
Slide 19: Inorganic Strategy Focus on Growing Scope and Leveraging Scale
Inorganic Strategy Focus on Growing Scope and Leveraging Scale ACQUISITION CRITERIA SELECTED ACQUISITIONS A solid track record in acquiring and growing profitable businesses SL Power Focus on large accretive targets in I&M market and technology tuck-ins HiTek Power UltraVolt Financial discipline wit
Slide 20: Markets Recovering Going into 2025
Markets Recovering Going into 2025 Semi Power Critical Low-Voltage PSU Sales Server Unit Subsystem Market(1) in Industrial & Medical(2) Shipments(3) ($ in billions) ($ in billions) Industrial Medical (in million units) Cloud Enterprise $3.0 $6.0 20.0 $2.5 $5.0 15.0 $2.0 $4.0 $1.5 $3.0 10.0 $1.0 $2.0
Slide 21: Accelerated Launch of New Platforms
Accelerated Launch of New Platforms Accelerated Launch of New Platforms Growing Pipeline of Design Wins # of I&M Design Opportunities ~50% 2022 LTM Technology-leading product platforms High design win conversion rate (>33%) Delivering > 2X number of custom products Strong momentum in Industrial and
Slide 22: Improved Digital Capability Expanding Reach
Improved Digital Capability Expanding Reach WEB PERFORMANCE DRIVING BUSINESS RESULTS: IMPROVEMENTS: 3X >600 3X 2X >150 (1) Performance metrics represents changes in 1 year after new website was launched in August 2023
Slide 23: Operational Excellence Enables Superior Financial Performance
Operational Excellence Enables Superior Financial Performance 01 02 Consolidating into five large Cost-effective infrastructure manufacturing sites in for high-mix, low-volume Southeast Asia and Mexico manufacturing Can’t use a picture of solar panel manufacturing 03 04 Internal manufacturing to Con
Slide 24: Driving Structural Gross Margin Improvement
Driving Structural Gross Margin Improvement Manufacturing overhead Increase mix of sole- Margin uplift from costs after consolidation sourced revenue next-gen products >80% > 20% >70% 2023 Exit 2025F Now Future Last-Gen Next-Gen Target > 400bps in gross margin expansion(1) through manufacturing site
Slide 25: Lead the Future in Precision Power
Lead the Future in Precision Power 01 02 Precision power leader enabling Expanding set of high-end next generation processes and opportunities across diverse end technologies markets 03 04 Solid revenue growth driven by Superior earnings power with new products, share gain, and well-defined path to
Slide 26: Extend Leadership in Semiconductor
Extend Leadership in Semiconductor Juergen Braun AEIS 2024 Analyst Day Senior Vice President November 19, 2024 Plasma Power Products
Slide 27: Key Messages
Key Messages #1 in plasma power Provider of critical technologies technology and market share(1) used to build 3D device architectures Strong customer pull for next- Expand market opportunities generation plasma power with a wide range of process platforms to drive share gain and system power soluti
Slide 28: The Undisputed Leader in Plasma Power
The Undisputed Leader in Plasma Power >10 Years #1 position in Outgrowing our end markets(2) plasma power(1) Peak-to-Peak Trough-to-Trough (‘18 to ’22 CAGR) (‘19 to ’23 CAGR) Advanced Energy Competitor #1 Total Fab Equipment 13.7% 14.9% Competitor #2 Competitor #3 Critical Subsystems 12.3% 12.4% Com
Slide 29: AE Plasma Power Enables Industry Technology Inflections
AE Plasma Power Enables Industry Technology Inflections < 2 nm Logic HBM > 400L NAND 4F2 DRAM 3D DRAM Multiple Industry Inflections with 3D architectures ▪ >100:1 high aspect ratio etching ▪ Complex process kinetics with highly dynamic conditions require ultra-fast plasma Drives increasingly ▪ New e
Slide 30: eVoS Enables Device Scaling as RF Reaches its Limits
eVoS Enables Device Scaling as RF Reaches its Limits 01 Process requirements 02 Technical challenges 03 eVoS enables 3D scaling Dual RF Frequency eVoS < 100:1 > 100:1 ▪ Next-gen 3D devices require deeper ▪ Multiple stacks are required to create ▪ Unique non-sinusoidal pulsed DC and narrower high asp
Slide 31: eVerest Expands Process Window for 3D Devices
eVerest Expands Process Window for 3D Devices 01 Process requirements 02 Technical challenges 03 Require advanced pulsing 1 2 3 ▪ Atomic-level precision for etch and ▪ Changing chemistries require rapid ▪ Multi-level pulsing and ultra-fast rise deposition processes is required for response to contro
Slide 32: Modular Architecture Accelerates Deployment
Modular Architecture Accelerates Deployment Meeting Many Different Requirements Different input voltages Front Controls Process-specific frequencies End Optimized power levels Customized feature development Power RF Output High power density with small Amplifier form factors Increased engineering ef
Slide 33: In Qualification Across Process and Device Types
In Qualification Across Process and Device Types Processes in Targeted Device Current Program Qualification: Inflections: Status: Conductor Etch < 2 nm Gate-All-Around > 250 units by year-end eVoS transistor Dielectric Etch 8 major design wins < 2 nm logic interconnect Metal Deposition and backside
Slide 34: Large and Growing Installed Base Expands Service and Upgrade Opportunities
Large and Growing Installed Base Expands Service and Upgrade Opportunities Service Offerings Upgrade Opportunities Growing Installed base(2) Calibration Upgrades 2024 2023 Retrofit Refurbish 2022 2021 2020 Repair 2019 2018 +45% Service offerings range from 2017 2016 Revenue opportunities as repair o
Slide 35: Expanding into a Wide Range of Adjacent Opportunities
Expanding into a Wide Range of Adjacent Opportunities SEMICONDUCTOR MARKET SIZE BY APPLICATIONS(1) Won multiple designs for semi test, chamber heating and platform power Target to win designs in adjacent Provide precision thermal sensing across a wide range of dry processes 2024 applications by $3.1
Slide 36: Outgrow WFE on Increased Intensity and Share Gains
Outgrow WFE on Increased Intensity and Share Gains Higher Etch/Deposition and Share gains from new plasma Win new designs in Semi adjacent power intensity power products power applications 3rd Party ’24-’29 CAGR Forecast(1): Increased Etch/Dep Intensity System Power Thermal & Sensing eVoS eVerest Na
Slide 37: Key Messages
Key Messages #1 in plasma power Provider of critical technologies technology and market share(1) used to build 3D device architectures Strong customer pull for next- Expand market opportunities generation plasma power with a wide range of process platforms to drive share gain and system power soluti
Slide 38: Capture AI Opportunity in Data Center Computing
Capture AI Opportunity in Data Center Computing Emdrem Tan AEIS 2024 Analyst Day Executive Vice President November 19, 2024 System Power Products
Slide 39: Key Messages
Key Messages Focus on high-end, proprietary Key technology enabler with applications enables profitable roadmap to enable Megawatt growth power for AI applications Pipeline of proprietary Leverage technologies opportunities expected to add developed for data center >$100 million in annual revenue co
Slide 40: AE Strategy in Data Center Computing
AE Strategy in Data Center Computing Focus strategically on high-end proprietary applications Target sole-sourced and differentiated opportunities Accelerate pace of innovation and reduce time-to-market to meet the shortened design cycles for AI applications Transformed from commodity-like products
Slide 41: AI Accelerates Rack Power Content
AI Accelerates Rack Power Content AI to represent most of future Increasing peak power of Requires significantly more server unit growth(1) NVIDIA AI GPUs(2) power in the same rack (in million units) (Max TDP Watts) 20 3,000 15 2,000 10 >5X 1,000 5 0 0 Traditional AI Server 2022 2023 2024 2025 2026
Slide 42: AE Key Differentiators
AE Key Differentiators AE leads the industry in what matters most in an AI-centric world ▪ Industry-leading peak power efficiency of up to ~98% ▪ Best-in-class AC-DC power density at >100 W/in3 ▪ Highest standards in quality and reliability ▪ First in delivering industry-leading, production-ready so
Slide 43: Technology Roadmap to Support Growing AI Demand
Technology Roadmap to Support Growing AI Demand AE has consistently delivered technologies to 1 MW enable accelerating rack power requirements Power requirement increasing Time to market compressing 20 kW 100 kW 2019 2020 2021 2022 2023 2024 FUTURE
Slide 44: Opportunity in the Data Center Computing Market
Opportunity in the Data Center Computing Market Major portfolio optimization Revenue growth target to Pipeline of proprietary completed, while continuing to exceed server unit market opportunities expected to add remain selective growth of 6% CAGR(1) over $100 million in annual revenue (1) Dell’Oro
Slide 45: Leveraging Data Center Technologies to Other Markets
Leveraging Data Center Technologies to Other Markets Resonant Converter PFC(1) Choke 01 Create technical advantages 02 Implement modular approach Increased importance of power Use modules across markets and density and efficiency applications Growing demand for high-power Maximize engineering effici
Slide 46: Key Messages
Key Messages Focus on high-end, proprietary Key technology enabler with applications enables profitable roadmap to enable Megawatt growth power for AI applications Pipeline of proprietary Leverage technologies opportunities expected to add developed for data center >$100 million in annual revenue co
Slide 47: Accelerate Growth in Industrial and Medical
Accelerate Growth in Industrial and Medical John Donaghey AEIS 2024 Analyst Day Executive Vice President November 19, 2024 Global Head of Sales
Slide 48: Key Messages
Key Messages Large and underpenetrated Growing portfolio of I&M power market with small niche solutions with a high velocity of competitors new product launches Large dedicated technical Enhanced digital platform and teams provide scalable service increased focus on distribution and create a sustain
Slide 49: Large Underpenetrated Market with Targeted Verticals
Large Underpenetrated Market with Targeted Verticals Key target Industrial applications I&M SAM(1) Medical applications Industrial Lighting & Therapeutic Production Display ~$1.5B 2024 Advanced $4.5B Diagnostic Mil-Aero Materials ~4% CAGR ~$3.0B Batteries & Clean Patient Charging Energy Monitoring T
Slide 50: Broad Portfolio of Solutions
Broad Portfolio of Solutions ▪ Best-in-class high power, high efficiency and AC-DC SCR density for Industrial and Medical applications Power Controller ▪ Diverse power conversion and sensing DC-DC technologies open doors across a wide variety of applications BMP ▪ Catalog and customized solutions fo
Slide 51: Accelerating New Industrial and Medical Platform Launches
Accelerating New Industrial and Medical Platform Launches NeoPower Evergreen NCF Series LumaDrive Platforms designed to scale multiple new products that address customer requirements for today and tomorrow
Slide 52: Dedicated Technical Teams Create a Competitive Advantage
Dedicated Technical Teams Create a Competitive Advantage Technical Sales and Quick Turn Dedicated I&M Live Online Customer Design Support Teams Customization Team Engineering Experts Technical Support Cycle Support Positioned close to Large, dedicated Technology partner of Always-on website with Net
Slide 53: Deep Engagement and Customized Solution Case Study
Deep Engagement and Customized Solution Case Study 01 Diagnostic Tier-1 customer needed a partner who understands Application power, the medical sector, and specific application to develop a proprietary solution that meets unique requirements for medical imaging device 02 Leverage AE Portfolio and T
Slide 54: Enhanced Digital Footprint Driving Results
Enhanced Digital Footprint Driving Results 01 Unified customer- 02 Live support and other 03 Increased design wins friendly website(1) advanced capabilities and revenue ▪ 3X Traffic ▪ Dedicated Live Tech Support ▪ Thousands of new leads monthly team for customer support ▪ 3X Number of registered use
Slide 55: Expanded Sales Reach and Optimized Distribution Network
Expanded Sales Reach and Optimized Distribution Network FOCUSED SALES AND DISTRIBUTION EFFORTS: ~50% 2X 25 DRIVING BUSINESS RESULTS: #1 2X
Slide 56: Focused on Growth Verticals with Rinse and Repeat Strategy
Focused on Growth Verticals with Rinse and Repeat Strategy Rinse & Repeat Deploy application knowledge and value proposition from wins to target Strategy similar opportunities at other under-penetrated customers Factory Automation Warehouse Robots Tethered Drones Electrosurgery DESIGN WIN EXAMPLES A
Slide 57: Solid Design Win Momentum to Drive Share Gains
Solid Design Win Momentum to Drive Share Gains Growing Pipeline and Design Wins I&M market forecast Target to grow # of I&M Opportunities to grow at ~4% AE I&M revenue CAGR after at > 2X market ~50% customer inventories growth driven by normalize from share gains and current levels(1) expanded reach
Slide 58: Key Messages
Key Messages Large and underpenetrated Growing portfolio of I&M power market with small niche solutions with a high velocity of competitors new product launches Large dedicated technical Enhanced digital platform and teams provide scalable service increased focus on distribution and create a sustain
Slide 59: Deliver Shareholder Value
Deliver Shareholder Value Paul Oldham AEIS 2024 Analyst Day Executive Vice President and November 19, 2024 Chief Financial Officer
Slide 60: Key Messages
Key Messages Diverse markets deliver better Growing faster than market on through-cycle revenue and new products, share gains, and earnings performance expanded customer reach Accelerated earnings and cash Optimized capital structure for flow from higher gross margin organic and inorganic growth and
Slide 61: Strong Foundation
Strong Foundation Diverse markets deliver better through-cycle revenue and earnings performance 61
Slide 62: Higher Through-Cycle Financial Performance
Higher Through-Cycle Financial Performance Revenue Non-GAAP EPS(2) Peak to Peak Trough to Trough Peak to Peak Trough to Trough ($ in millions) ($ in millions) ($ per Share) ($ per Share) $2,000 $2,000 $7.00 $7.00 +36% $6.00 $6.00 $1,500 $1,500 $5.00 $5.00 $4.00 $4.00 $1,000 $1,000 +43% $3.00 $3.00 $
Slide 63: Investing Through Downturn to Strengthen Position
Investing Through Downturn to Strengthen Position Investing in R&D through downturn Controlling SG&A despite high inflation Investments enable scale Quarterly Non-GAAP Quarterly Non-GAAP Capital Investments R&D Spending(1) SG&A spending(1) Capex as % of Revenue ($ in millions) ($ in millions) ($ in
Slide 64: Outperform Growing Markets
Outperform Growing Markets Growing faster than market on new products, share gains, and expanded customer reach 64
Slide 65: Growing End Markets
Growing End Markets Semi market growing to >$1T with Market to normalize after inventory Continued AI demand across increased capital intensity destocking complete within 2025 Hyperscale and Enterprise ~8% Long-term CAGR ~4% Long-term CAGR ~6% Long-term CAGR Process Power Critical Low-Voltage PSU Sa
Slide 66: Outgrow WFE on Increased Intensity and Share Gains
Outgrow WFE on Increased Intensity and Share Gains Higher Etch/Deposition and Share gains from new plasma Win new designs in Semi adjacent power intensity power products power applications 3rd Party ’24-’29 CAGR Forecast(1): Increased Etch/Dep Intensity System Power Thermal & Sensing eVoS eVerest Na
Slide 67: Accelerate Growth in Industrial and Medical
Accelerate Growth in Industrial and Medical 01 Large underpenetrated and 02 Accelerating launch of new fragmented market I&M platforms High-end, long-life cycle applications 2X # of custom solutions NeoPower Evergreen Medical NCF AE’s scale and dedicated technical Leverage common platforms to teams
Slide 68: Data Center Computing Leverages AI Technology Roadmap
Data Center Computing Leverages AI Technology Roadmap AI driving need for higher … while compressing Pipeline of proprietary solutions rack power … time to market enables faster than market growth NVIDIA AI GPU Power Rating(1) 3,000 2,000 New 1,000 0 Increasing importance of power Key technology ena
Slide 69: Targeting Healthy Growth Above Our Markets
Targeting Healthy Growth Above Our Markets Market Growth Outlook AE Organic Growth Outlook ~8% CAGR based on a $1T Semi >30% growth above WFE on etch/dep market & increased capital intensity intensity, new products and share gains $4.5 ~4% CAGR after market normalizes with 2X market growth on new pr
Slide 70: Superior Earnings Power
Superior Earnings Power Accelerated earnings and cash flow from higher gross margin and operating leverage 70
Slide 71: Structurally Expand Gross Margin
Structurally Expand Gross Margin 01 Manufacturing and Cost 02 Improve Product Mix 03 Volume Leverage Improvements Manufacturing overhead Focus on growing margin Margin uplift from costs after consolidation accretive markets Next-gen products Gross Margin Expansion > 20% Sole-sourced from 2023 Exit 2
Slide 72: Drive Operating Leverage
Drive Operating Leverage INVESTING WHILE MAINTAINING COST DISCIPLINE: < 50% ~40% DRIVES EARNINGS AND CASH FLOW: ~1,400bps Increase to operating margin in 2030 target financial model(1) (1) Relative to 2024 results, excluding FX and effects of acquisitions completed within 12 months
Slide 73: Accelerate Earnings Growth
Accelerate Earnings Growth $15.00 +$1.00-$1.50 +$1.50-$2.00 +$2.25-$2.75 +$1.50-$2.50 Long-term M&A Model +$3.50-$4.50 $3.48 Gross Margin Operating Leverage Post Synergies AE Growth Improvements OPEX at <50% Market Strategies of revenue +500-900bps 2024F(2) Growth growth >40% above over time NON-GAA
Slide 74: Sustain Higher Cash Flow Generation
Sustain Higher Cash Flow Generation Positive Operating Cash Flow Improving Working Capital with Reducing Capex in 2026 after through market cycles inventory returning to best-in-class investments for scale completed Cash Flow from Operations(1) Inventory Turns Capital Investments ($ in millions) Cap
Slide 75: Capital Structure
Capital Structure Optimized for organic and inorganic growth 75
Slide 76: Capital Allocation Remains Focused on Growth
Capital Allocation Remains Focused on Growth Allocation of Free Cash Flow Capital Allocation Track Record ▪ Disciplined M&A process 10-year Cumulative (Q4’14 to Q3’24) ▪ Solid track record of value-creating acquisitions ▪ Solid funnel of targets in a fragmented market Total Acquisitions 75% 25% Free
Slide 77: Targeted Capital Structure for Funding M&A
Targeted Capital Structure for Funding M&A Capital Structure as of Q3’24 M&A Financial Discipline Acquisition Financial Targets: $600M $1,007M ▪ Deal returns > Cost of Capital Undrawn Revolver Maximum funding ▪ Gross margin at > 40% available for M&A ▪ Earnings accretive(2) in Year 1 $657M $575M Cas
Slide 78: Long-term Financial Targets
Long-term Financial Targets 78
Slide 79: 2030 Organic Model Revenue Scenarios
2030 Organic Model Revenue Scenarios 2030 (1) ($ in millions, except per share data) 2024F $1.75B $2.00B $2.25B Organic Model Revenue $1,459 $1,750 $2,000 $2,250 $2,500 Gross Margin(2) 36.0% 39.8% 41.3% 42.4% 43.5% OPEX as % of Sales(2) 26.4% 24.1% 22.3% 20.8% 19.8% Operating Margin(2) 9.6% 15.7% 19
Slide 80: Financial Framework to 2030 Long-term Target Model
Financial Framework to 2030 Long-term Target Model 2030 Acquisition 2030 ($ in millions, except per share data) 2024F(1) Organic Organic Model Assumptions (Post Long-term Model Synergies) Model > 9% CAGR on market recovery + Revenue $1,459 $2,500 AE growth strategies $500 $3,000 Structural GM improv
Slide 81: Key Messages
Key Messages Diverse markets deliver better Growing faster than market on through-cycle revenue and new products, share gains, and earnings performance expanded customer reach Accelerated earnings and cash Optimized capital structure for flow from higher gross margin organic and inorganic growth and
Slide 82: Closing Remarks
Closing Remarks Steve Kelley AEIS 2024 Analyst Day President and Chief Executive Officer November 19, 2024
Slide 83: 2024 Analyst Event Summary
2024 Analyst Event Summary 01 02 Lead the industry with advanced Grow 40% faster than our markets technologies Gain share from new products, Focus on capturing high-value design win momentum, & customer differentiated applications expansion 03 04 Accelerate earnings growth to > 2X Launched 2030 targ
Slide 84: Q&A Session
Q&A Session Steve Kelley Paul Oldham Juergen Braun Emdrem Tan John Donaghey Edwin Mok President and Executive Vice President and Senior Vice President Executive Vice President Executive Vice President and Vice President, Strategic Chief Executive Officer Chief Financial Officer Plasma Power Products
Slide 85: Thank You
Thank You
Slide 86: Q4 2024 Guidance
Q4 2024 Guidance(1) Q4 2024 Revenue $392 million +/- $20 million GAAP EPS from continuing operations $0.47 +/- $0.29 Non-GAAP EPS $1.08 +/- $0.25 (1) Q4 2024 guidance were made and based on information available to Advanced Energy’s management team as of the Q3 2024 earnings call on October 30, 2024
Slide 87: Non-GAAP Measures
Non-GAAP Measures All financial figures presented in this presentation, such as gross margin, operating expense item, operating margins, EBITDA, other income, tax rate, earnings per share and depreciation, are on a non-GAAP financial basis unless otherwise specified. Detailed reconciliations of GAAP
Slide 88: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands, except percentage and $ per share) Reconciliation of Non-GAAP measure - operating expenses and operating income, excluding certain items Year Ended Nine Months December 31, Jan - Sep 30 Jan - Sep 30 2017 2018 2019 2020 2021 2022 2023 2023 2024 Gross profit fr
Slide 89: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands, except percentage and $ per share) Reconciliation of Non-GAAP measure - income excluding certain items Year Ended Nine Months December 31, Jan - Sep 30 2017 2018 2019 2020 2021 2022 2023 2024 Income from continuing operations, less non-controlling interest, n
Slide 90: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands, except percentage and $ per share) Reconciliation of Non-GAAP measure - Research and development Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Research and development $ 49,760 $ 49,637 $ 51,610 $ 51,413 $ 50,391 $ 49,025 $ 49,836 $
Advanced Energy Industries — Investor Day (November 2024) on 6ix