Aixtron Se · XETR:AIXA
Aixtron — Commerzbank German Investment Seminar 2013
44 slides from Aixtron's conference presentation, Jan 14, 2013
Slide 1: AIXTRON Company Presentation
AIXTRON Company Presentation Paul Hyland, President & CEO Wolfgang Breme, CFO Commerzbank German Investment Seminar New York City Monday January 14th, 2013 IR Master Presentation available on www.aixtron.com/investors (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041) © AIXTRON SE, Jan
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 Reform Act of 1995. These statem
Slide 3: AIXTRON 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, China Representation P3
Slide 4: Annual Equipment Revenues by Application
Annual Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR million Operations P4
Slide 5: Consolidated Income Statement
Consolidated Income Statement* (€ million) 9M/12 9M/11 +/- Q3/12 Q2/12 +/- Revenues 150.3 470.8 -68% 62.2 46.1 35% Cost of sales 167.6 251.2 -33% 104.5 31.4 233% Gross profit -17.3 219.7 -108% -42.3 14.7 -387% Financials Gross Margin -11% 47% -58 pp -68% 32% -100 pp Selling expenses 24.9 25.0 0% 11.
Slide 6: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 30/09/12 30/06/12 31/12/11 Property, plant & equipment 97.6 99.8 96.2 Goodwill 64.6 64.4 64.1 Other intangible assets 4.8 5.3 6.2 Financials Others 37.4 38.9 29.4 Non-current assets 204.5 208.4 195.8 Inventories, WIP & Finished Goods 157.9 21
Slide 7: Order Intake, Backlog and Revenues
24 - Month Business Development (€ million) Equipment (only) Order Intake @ $1.50 @ $1.35 @ $1.40 Financials Equipment (only) * Order Backlog @ $1.50 @ $1.35 @ $1.40 *) revalued on Jan.1, 2012 to €136.8m at $1.40/€ Total Revenues (incl. equipment, service, spare parts) @ $1.33 @ $1.40 @ $1.28 11.01.
Slide 8: 2012 Guidance Model
2012 Guidance Model 2012 revenue guidance: ca. €220m 2012 EBIT guidance: ca. €-125m Financials (€ million) Shippable equipment orders out of €109.8m total backlog as of 30/09/12 55 9M/2012 actual total revenue 458- 15 150 Assumed Q4 spares & non-equipment revenues 11.01.2013 P8
Slide 9: Equipment Order Intake per Quarter
Equipment Order Intake per Quarter (EUR million) ALD orders driven by sub-30nm nodes 250 driven by strategic China investments 200 driven by LED TV Order Intake driven by 150 notebook CVD orders backlighting driven by memory demand driven by driven by 100 telecom/datacom mobile phone and mobile phon
Slide 10: AIXTRON Market Sector Drivers
AIXTRON Market Sector Drivers • Electricity consumption Energy Efficiency • Efficient power Consumer management Market Drivers Electronics • Market expansion Emerging Markets • Increased GDP / consumer spending Utility Market • Increasing device performance Mobile Devices • Power efficient devices P
Slide 11: LED: Transformation of the Energy Mix
LED: Transformation of the Energy Mix SSL Making Nuclear Power Plants Redundant Numbers of …if LED 2011 Nuclear policy redundant penetration rate Energy Saving Potential reactor units plants… in 2020 = Current debating 48 58% phase-out Phase-out by 2022 9 57% No major change 104 56% announced Increa
Slide 12: Compound Semiconductor Systems: IC Platform
Compound Semiconductor Systems: IC 2 Platform Two Reactor Technologies Addressing Multiple Industries MOCVD Systems Proven Industry Standard & Market Leading Configurable, Extendable Common Platform Planetary Reactor® AIX G5+, 5x8” Close Coupled Showerhead® Integrated Concept (IC 2) System CRIUS® II
Slide 13: Estimated Cost Saving for LEDs on Si
Estimated Cost Saving for LEDs on Si LED on Si Cost Savings LEDs on 200 mm Si could turn out to be the most cost efficient option But the ability to develop a sustainable III-V process is a key differentiator Managing the yield of such a complex process also requires considerable expertise…. and is
Slide 14: 2013 - 2020: LEDs on Silicon
2013 - 2020: LEDs on Silicon LED on Si Cost Savings LED on Si efficacy levels have now reached c. 90 - 100 lm/W A ~40 lumen / Watt gap compared to LEDs on sapphire The immediate short fall has to be offset by a lower manufacturing cost benefit The ability & expertise to manage Yield is the critical
Slide 15: LED lighting market continues to grow
LED lighting market continues to grow Declining Prices drive growth LED lighting Industry & Markets market 2011: LED lighting US$9.3bn market 2010: US$5.5bn Korea US EU Japan 0% -10% -20% -30% -40% -50% -60% 60W equivalent A19 LED light bulb price YoY change per country: 2011 Source: Strategies Unli
Slide 16: 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 Industry & Markets Government / Utilities can help to reach tipping point LED vs. Inca QoQ LED vs. Store LED Man. CFL LED Incan. n
Slide 17: A-19 Bulb: 60W LED Replacement – Global Pricing
A-19 Bulb: 60W* LED Replacement – Global Pricing 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 being offered QoQ LED vs. LED vs. Stores Incan. CFL LED Low High +/- Incan. (x) CFL (x)
Slide 18: LED Lighting: Regional Highlights
LED Lighting: Regional Highlights Industry & Markets GE introduced 60W equivalent LED light bulbs in Asia. The retail price in Taiwan is NT$599 (USD 20) ALDI, the largest supermarket discounter in Germany, promoted 60W equivalent LED light bulbs at EUR 9.99 (USD 13) in September. Sold out within few
Slide 19: Increasing LED Chip Size
Increasing LED Chip Size Strong estimated* area growth: 8 year CAGR of 59% 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)- H B L E D M a rke t (sq a re a ) - 200 125 100 150 75
Slide 20: Production Supply Estimates for HB LEDs
Production Supply Estimates for HB LEDs Bear-Bull MOCVD system demand: 2011 - 2017 CAGR of 3% 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 Incremental
Slide 21: China: The Progress of LED industry policies
China: The Progress of LED industry policies Light source production in China Government actions to facilitate LED in 2011: 68% of global demand lighting transition Industry & Markets Public End-market subsidy: e.g. street lighting projects Consumer End-market subsidy: (million units) LED lighting b
Slide 22: 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 Industry & Markets China China potentially largest single Germany Other consumer of LED lighting by 2015 USA Japan 50 different indoor and outdoor lighting
Slide 23: R&D: Strong Investments for the future
R&D: Strong Investments for the future R&D - a key strategic asset Research & Development R&D 2009:EUR 2010: EUR 2011: EUR 2012e: EUR spending 32.9m 46.1m 50.4m 60~70m Aachen, Sunnyvale, Germany Work as a networked USA technology matrix Collaboration with Develop closely academic with customers, res
Slide 24: R&D Center: Accelerating technology leadership
R&D Center: Accelerating technology leadership Research & Development 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 P 24
Slide 25: Beyond LEDs – Future Developments
Beyond LEDs – Future Developments: Material & Technology Convergence Convergence III-V & CNT / Si Research & Development Organic Carbon Compound Silicon Material Material Semiconductors Semiconductors Graphene Power Management OVPD®/PVPD™ Silicon systems CNTs and CNWs GaN / SiC for • OLEDs for displ
Slide 26: Market Prospects
Market Prospects Short-Term Increasing LEDs for exterior, public street & commercial lighting Increased adoption of LEDs for consumer & residential lighting Increasing adoption of GaN for power electronics Business Outlook Increased emergence of silicon carbide (SiC) hybrid automotive & photovoltaic
Slide 27: Financial Calendar & Contact Data
Financial Calendar & Contact Data March 2013 FY/2012 Results, Conference Call April 2013 Q1/2013 Results, Conference Call Financial Calendar May 23, 2013 Annual General Meeting in Aachen July 2013 H1/2013 Results, Conference Call For further information please contact: Investor Relations & Corporate
Slide 28: AIXTRON Investor Presentation
P 28 AIXTRON Investor Presentation
Slide 29: White HB LED: Key IP cross license agreements
White HB LED: Key IP cross license agreements Showa Denko Appendix Formosa Epitaxy (Taiwan) Sharp Source: LEDinside 2007; LEDs Magazine; AIXTRON P 29
Slide 30: Compound Semiconductor System Generations
Compound Semiconductor System Generations Extendibility: Extensive choice of configurations and enhancements Scalability: Multiple technologies on one platform Productivity: Appendix Highest throughput, best yield, fastest growth rates Year of Platform Technology Chambers Introduction G3 Planetary 2
Slide 31: Par Bulb: LED Replacement
Par 38 Bulb: LED Replacement Commercial Lighting US-Pricing Distributed in different channels. Functional driven: dimmable, beam angle, etc. to be highlighted QoQ LED vs. LED vs. Appendix Store LED Man. Hal. CFL LED +/- Hal. (x) CFL (x) Feit Amazon $ 6.6 $10.5 $ 35 5% 5.4x 3.4x GEEcoSmart Electric H
Slide 32: Par Bulb: LED Replacement – Commercial Lighting
Par 38 Bulb: LED Replacement – Commercial Lighting Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Appendix SYLVANIA- 75 FEIT 18 Watt EcoSmart PAR38 Product Watt - PAR38 PAR38 Light Bulb LED light bulb Energy used (W) 75 18 18 Equivalent to (W) 75 75 75 Lifetime (hours) 2,50
Slide 33: LED Cost Structure by Application
LED Cost Structure by Application LED Chip representing ca. 20% of total LED Light Bulb Cost Mature Emerging Other costs Appendix Profit/Yield LED Chip cost 50% 40% Based on: AIXTRON; DisplaySearch Q3/2011; DOE 2011; CSA Conference 2011 P 33
Slide 34: Silicon Semiconductor System Market Forecast
Beyond LED Developments: Silicon Semiconductor System Market Forecast Strong estimated Deposition Equipment spending: 5 year CAGR of 43% Memory and emerging applications to drive ALD equipment industry Multi generation film development for memory & logic Appendix 100% 4000 Sub 28 nm Deposition Equip
Slide 35: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2011 2010 2009 Revenues 611.0 783.8 302.9 Cost of sales 379.5 372.0 168.1 Appendix Gross profit 231.4 411.8 134.7 Gross Margin 38% 53% 44% Selling expenses 32.1 48.9 25.5 General & admin expenses 34.0 30.1 21.3 R&D 50.4 46.1 32.9 Net other op. (income)/expe
Slide 36: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/11 31/12/10 31/12/09 Property, plant & equipment 96.2 77.9 37.8 Goodwill 64.1 62.2 58.3 Other intangible assets 6.2 7.0 7.8 Appendix Others 29.4 20.6 14.8 Non-current assets 195.8 167.7 118.7 Inventories, WIP & Finished Goods 184.6 167.
Slide 37: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2011 2010 2009 Cash Flow from operating activities -6.3 147.7 78.9 Cash Flow from investing activities 50.5 -165.4 -90.1 Cash Flow from financing activities -57.5 -11.6 153.6 Appendix Exchange rate changes 4.2 0.2 1.3 Net change in Cash & Cash Equiva
Slide 38: AIXTRON Group Worldwide Production: Aachen
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON SE, Aachen, Germany P 38
Slide 39: AIXTRON Group Worldwide Production: Cambridge
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON Ltd., Cambridge, UK P 39
Slide 40: LED Investment cycle
LED Investment cycle Global demand: driven by new applications Supply: different regional investment characteristics Industry & Markets Lighting BLUs Mobile Strong Market Aggressive Demand > Capital Supply Spending Supply § Little Capacity Demand < 2010-11 2009 Demand Added Supply China Korea Price
Slide 41: High Brightness LED Market Forecast in USD
High Brightness (HB) LED Market Forecast in USD HB LED summary forecast by application in USD 2011 14% Industry & Markets 9,000 90 , 00 8,000 80 , 00 11% Market Size (USD million) 7,000 70 , 00 52% 13% CAGR 9% 6,000 60 , 00 5,000 50 , 00 14% 4,000 40 , 00 3,000 30 , 00 2016e 2,000 20 , 00 1,000 10 ,
Slide 42: LED Lighting Momentum Signals
LED Lighting Momentum Signals GOVERNMENT Consumer Governmental Subsidies Regulations Industry & Markets technology definition subsidies of (top down) standards incan- public area descent installation bans produc- tivity LED ecological awareness (COO) product quality Lighting energy savings (lm/W) re
Slide 43: Tangibility of LED Lighting Momentum
Tangibility of LED Lighting Momentum Ban targets set by top 10 GDP countries Energy Star in place (US Standard) with now 1,400 qualified products Government EU / US energy saving programs (Tax Credit) Japanese energy policy Industry & Markets China: LED policy to be rolled out; Guangdong province LE
Slide 44: One Technology – Multiple Solutions
One Technology – Multiple Solutions Deposition Technology Technology Nano Scale Material Engineering Systems Compound Semiconductor Silicon Semiconductor (MOCVD, HVPE, OVPD®, PVPDTM, PECVD) (CVD, ALD) Technology LEDs/OLEDs for displays LEDs/OLEDs for lighting Optoelectronics for Metal and oxide film