Aixtron Se · XETR:AIXA
Aixtron — Investor Presentation (October 2010)
62 slides from Aixtron's investor presentation, October 2010
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation Fall/Winter 2010 including 9M/2010 (FSE: AIXA, ISIN DE000A0WMPJ6, ISIN DE000A1DAHX7; NASDAQ: AIXG, ISIN: US0096061041)
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: Agenda
Agenda AIXTRON Investor Presentation Introduction Operations Industry & Markets Financials Outlook Summary Contact Appendix AIXTRON Sites P3
Slide 4: AIXTRON Investor Presentation
AIXTRON Investor Presentation This page has been intentionally left blank P4
Slide 5: AIXTRON Global Presence
AIXTRON Global Presence Ltd. AB Cambridge, UK Lund, Sweden Introduction cshs KK Seoul, South Korea Tokyo, Japan Inc. AG Sunnyvale, USA Aachen, Germany Headquarters Taiwan Co., Ltd. AG Shanghai, P.R. China Representation P5
Slide 6: 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 7: Value Chain Positioning
Value Chain Positioning Production Electronic Chip & End Equipment Modules & Device Component User Manu- Packaging Manu- Makers Markets Introduction facturers facturers Consumer commu- nication Industrial Display Lighting Medical Automotive P7
Slide 8: Compound Semiconductor Systems
Compound Semiconductor Systems Turn-key solutions for Compound fab design Proven industry standard & market leader High quality deposition & throughput (very high growth rates, superior uniformity) Operations Flexible wafer configuration from 2”-300mm Planetary Reactor® Configurable, extendable comm
Slide 9: Global MOCVD Market Shares
Global MOCVD Market Shares $113m $164m $238m $340m $185m $133m $231m $155m $202m $289m $486m $533m 100% 90% 80% Operations 70% 60% 50% 40% 30% 20% 10% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 AIXTRON AG Veeco Instruments, Inc. Taiyo Nippon Sanso Corp. Others (EMC,JPE,POWDEC,EMF
Slide 10: 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 Operations Design to transfer from pre-production R&D to high volume manufacturing New product for memory and emerging app
Slide 11: Organic Semiconductor Systems
Organic Semiconductor Systems OVPD®/PVPD enhanced by CCS® technology Full colour OLED display and OLED lighting Organic solar cells Organic electronics E-Paper displays Operations R&D Applications Production Applications R&D Gen1 Gen 2-4 Gen5 (100 x 100 mm) © AIXTRON proprietary P 11
Slide 12: Equipment Revenues by Application
Equipment Revenues by Application 600 AIXTRON Equipment Revenues (excl. spares) in EUR m 500 400 Operations 300 200 100 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 9M/10 LED Telecom/Datacom Consumer-/Optoelectronics Solar Display & others Silicon P 12
Slide 13: Total Revenues by Region
Total Revenues by Region 2007: 2008: 2009: 9M/2010: €214.8m €274.4m €302.9m €559.1m 10% 6% 4% 3% 4% Operations 9% 21.9 7% 17.8 14% 11.4 16.3 21.2 18.5 41.5 18.8 174.1 250.0 521.6 238.1 81% 87% 82% 93% Asia Europe USA P 13
Slide 14: High Brightness (HB) LED Market Forecast
High Brightness (HB) LED Market Forecast HB LED summary forecast by application 2009 17% 17% Industry & Markets 20.000 Market Size (USD million) 2 9% 12% 15.000 G R CA 11% 42% 1% 10.000 2014e 5.000 9% 0 22% 2009 2010e 2011e 2012e 2013e 2014e 51% Signs / Displays Mobile Appliances 6% Signals Automoti
Slide 15: AIXTRON Investor Presentation
AIXTRON Investor Presentation This page has been intentionally left blank P 15
Slide 16: LED Backlighting Unit (BLU) Market Forecast
LED Backlighting Unit (BLU) Market Forecast Strong LCD panel unit growth (TAM) Rapid adoption towards full LED BLU implementation Industry & Markets Continued incremental LED BLU growth LED-TV penetration LED-Monitor penetration 350 100% 350 100% LCD Monitor Market (million units) 300 300 LCD TV Mar
Slide 17: 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 Early adoption: >150m unit replacement streetlight mark
Slide 18: 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 19: Tangibility of LED Lighting Momentum
Tangibility of LED Lighting Momentum Ban targets set by top 10 GDP countries GOVERNMENT Energy Star in place (US Standard) US DOE SSL technology funding program Industry & Markets EU energy savings program Japanese consumer promotions Taiwan tax incentives Investment subsidies in China China 12th 5-
Slide 20: Increasing LED Chip Size
Increasing LED Chip Size Strong estimated* area growth: 5 year CAGR of 57% Larger chip sizes lead to epitaxial area increase Industry & Markets Improved visibility for SSL gaining momentum LED Units Material Area 250 125 HB LED Market (bn units) HB LED Market (sq area) 200 100 150 75 100 50 50 25 0
Slide 21: Production Supply Estimates for HB LEDs
Production Supply Estimates for HB LEDs Bear-Bull MOCVD system demand: 5 year CAGR of 25-45% Larger chip sizes require further capacity increase Industry & Markets SSL is the strongest driver for material area growth LED Units Material Area 70 1600 30 60 1400 Incremental HB LEDs 25 Incremental HB LE
Slide 22: Business Development
213.8 24 - Month Business Development @ $1.40/€ (€ million) @ $1.50/€ Equipment (only) 40.6 31.2 57.9 117.6 163.3 168.5 175.4 200.4 Order Intake 296.7 @ $1.40/€ Financials @ $1.50/€ Equipment (only) Order Backlog 105.0 100.7 109.4 152.4 203.8 * 229.9 250.0 278.7 @ $1.32/€** Total Revenues (incl. equ
Slide 23: Consolidated Income Statement
Consolidated Income Statement* (€ million) 9M/10 9M/09 +/- Q3/10 Q3/09 +/- Revenues 559.1 184.9 202% 212.7 82.0 159% Cost of sales 264.6 105.7 150% 102.1 47.3 116% Financials Gross profit 294.5 79.2 272% 110.6 34.7 219% Gross Margin 53% 43% +10 pp 52% 42% +10 pp Selling expenses 39.9 16.3 145% 14.8
Slide 24: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 30/09/10 31/12/09 30/09/09 Property, plant & equipment 49.6 37.8 32.8 Goodwill 60.8 58.3 57.1 Other intangible assets 7.8 7.8 7.8 Financials Others 19.8 14.8 14.2 Non-current assets 138.0 118.7 111.9 Inventories, WIP & Finished Goods 153.2 89
Slide 25: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 9M/2010 9M/2009 Q3/2010 Q3/2009 Cash Flow from operating activities 175.4 44.5 80.7 30.0 Cash Flow from investing activities -112.6 -31.8 -57.2 -28.7 Financials Cash Flow from financing activities -12.8 -5.6 0.0 0.6 Exchange rate changes 1.4 0.5 -2.0
Slide 26: 2010 Revised Guidance Model
2010 Revised Guidance Model 2010 revenue guidance: ca. €750m / $1bn+ 2010 EBIT guidance: ca. 35% EBIT margin (€ million) Outlook Shippable equipment orders out of €279m total 9M/2010 actual total revenue backlog as of 30/09/10 180 Assumed Q4 spares 11 & non-equipment revenues 559 P 26
Slide 27: Financial Model
Financial Model Increasing operating leverage Flexible business model of outsourced production Gross profit driven by FX, product mix and volume Decreasing relative operating expenses Revenue Model (EUR million) Revenue Model (% Revenue) Outlook (@ budget rate of USD 1.50 per EUR) (@ budget rate of
Slide 28: Market Prospects
Market Prospects Short -Term Continuing capacity expansions for LED backlighting LEDs for further increasing automotive applications Increasing LEDs for exterior, public street & professional lighting Mid-Term Outlook Increased LEDs for consumer & residential general lighting Silicon carbide (SiC) h
Slide 29: Key Takeaways
Key Takeaways Tangible Momentum in the LED Lighting Industry Supported by positive volume/performance effect of backlighting Encouraged by government and regional initiatives and subsidies Summary Increased development and market introduction of LED Lighting applications Increased new generation sys
Slide 30: Financial Calendar & Contact Data
Financial Calendar & Contact Data March 1, 2011 FY2010 Results, Conference in Frankfurt April 28, 2011 Q1/2011 Results, Conference Call May 19, 2011 Annual General Meeting 2011 in Aachen Contact July 28, 2011 H1/2011 Results, Conference in Frankfurt For further information please contact: Investor R
Slide 31: Always One Step Ahead
ALWAYS ONE STEP AHEAD File:
Slide 32: China SSL Conference 2010 – Key Conclusions
China SSL Conference 2010 – Key Conclusions China prepares for volume LED lighting development Packaging Early Investment in Chinese Material Epi & Chip value chain development Application Appendix Chinese Manufacturing Focus Domestic on global volume market Export China China: Potentially largest s
Slide 33: China: Investment into Strategic Emerging Industries
China: Investment into Strategic Emerging Industries Northern Region Telecom/ PC/ Wireless Leading in R&D Epi & Chip SSL National Park Appendix Yangtze River Delta Shanghai / Wuxi / Suzhou OEM, ODM manufacturing Strong investment in all HB LED industry segments SSL National Park Pearl River Delta Th
Slide 34: Cooperation with Chinese Research Institutes
Cooperation with Chinese Research Institutes AIXTRON Group Key Project/ Comments Cooperating Research Research Area GaN LED; Technology transfer with Chinese Industry and industrial JV Beijing University Optoelectronics support 1st blue laser in China; long term development on GaN laser IS CAS (Beij
Slide 35: AIXTRON – Commitment to China
AIXTRON – Commitment to China Investments Improved market involvement Full organization in place, consisting of Developed strong customer network & R&D activities, customer process & involvement in government programs: service engineers with access to 973: Fundamental Research Asia/Pacific service i
Slide 36: 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 36
Slide 37: 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 200 - 400 TV – Direct BLU 500 - 1000 TV –
Slide 38: LED Cost Structure by Application
LED Cost Structure by Application 100% 80% Appendix 60% 40% 20% 0% 12.1" Notebook LED 22" Monitor LED 40" TV LED BLU LED Light Bulb BLU BLU LED Labor, SG&A, Overhead Other Materials Based on: AIXTRON; Display Search Q3/2010; Macquarie Sept. 2010 P 38
Slide 39: 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 40: A-19 Bulb: 60W LED Replacement Target
A-19 Bulb: 60W LED Replacement Target Residential Lighting: LED reaching economic tipping point Commercial Lighting: From social driven to operating cost benefits Penetration rate expected to be over 30% by 2014 Global Brands: Samsung, Osram, Philips, GE, Toshiba, etc Appendix LED vs LED vs. Samsung
Slide 41: LED Streetlights
LED Streetlights New construction: Energy savings through large scale adoption Retrofit: Economic competitiveness – simple payback TAM: >160m unit replacement streetlight market Objectives: Energy saving – Lower Maintenance – Short ROI 50 Appendix LED-Streetlight penetration LED Streetlight Market (
Slide 42: 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 sunl
Slide 43: OVPD®: The SM OLED Production Concept
OVPD®: The SM OLED Production Concept Highly efficient deposition: 2-dimensional scaling of process chamber Gas phase controlled: superior film composition control Process compatibility between generations Appendix Substrate vs. Organic Sources OVPD Vacuum Deposition © AIXTRON proprietary P 43
Slide 44: 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 Introduction Platform Technology Chambers G3 Planetary 2
Slide 45: Compound Semiconductor System Generations
Compound Semiconductor System Generations Rapid product transition by customer base Established industry standard 30% of Q3 orders consist of new generation systems Compound Semiconductor (CS) Equipment Revenues: €134m €70m €115m €81m €97m €145m €236m €266m Appendix 100% 90% CS Product Mix in % 80%
Slide 46: PVPD: Large Area Deposition Technology
PVPD: Large Area Deposition Technology Development of Gen 3.5 Tool for Plastic Logic – Plastic Electronics potential flexible display structure NEW PICS Appendix P 46
Slide 47: 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 47
Slide 48: ALD/AVD®: Advanced Technology Requirements
ALD/AVD®: Advanced Technology Requirements ALD technology enables feature size shrinking through: Thickness and composition control Conformal step coverage Superior film quality Word Line DRAM Appendix Metal Control Gate NAND 1000 CVD Atomic Level Solutions Layer thickness [Å] 100 AVD® Metal Electro
Slide 49: Target ALD Films for Semiconductor Applications
Target ALD Films for Semiconductor Applications Memory Applications Logic Applications DRAM / eDRAM Capacitors Appendix PCRAM Metal Gate High-k Gate Integrated Flash Floating Gate Capacitors Interpoly & Tunnel Oxide Shallow Trench Isolation eDRAM Capacitors P 49
Slide 50: Material & Technology Convergence
Material & Technology Convergence Appendix Compound Silicon Semiconductors Semiconductors Application driven Technology driven Mainly batch processing High volume production Diversified value chain Large players Complex materials Simple materials P 50
Slide 51: AIXTRON Share Price
AIXTRON Share Price 30/09/10: Share Price: EUR 21.80 AIXTRON (12 months trailing until 30/09/10) No. Shares: 101,072,874 Market Cap: EUR 2.2bn EUR 30 AIXTRON TecDAX® indexed EUR 28 Appendix EUR 26 EUR 24 EUR 22 EUR 20 EUR 18 EUR 16 EUR 14 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep P 51
Slide 52: Compound Equipment Order Intake per Quarter
Compound Equipment Order Intake per Quarter 220 million EUR tangible LED-lighting 200 momentum 180 driven by LED TV 160 Appendix 140 driven by driven by notebook 120 telecom/datacom backlighting and mobile phone driven by mobile 100 phone penetration 80 60 40 20 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q
Slide 53: Order Backlog Conversion into Revenue
Order Backlog Conversion into Revenue* AIXTRON1 vs. Veeco2 90% 80% 70% 60% Appendix 50% 40% 30% 20% 10% 0% Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 AIXTRON Veeco * Calculated as revenue divided by prior quarter backlog 1) Compound Semiconductor Segment only 2) LED/Solar Segment only Source: Deutsch
Slide 54: Operational Flexibility and Leverage
Operational Flexibility and Leverage Continued progress in profitability and margins Increasingly cost-effective organization Appendix: Financials Solid financial position for continuing operations Flexible Cost Structure Improving Profit Margins Increasing Returns 28% 60% 140 130.9 40% Net Income 5
Slide 55: Consolidated Income Statement (FY)
Consolidated Income Statement (FY) (€ million) 2009 2008 +/- Appendix: Financials Revenues 302.9 274.4 10% Cost of sales 168.1 161.5 4% Gross profit 134.7 112.9 19% Gross Margin 44% 41% +3 pp Selling expenses 25.5 27.8 -8% General & admin expenses 21.3 18.0 18% R&D 32.9 28.3 16% Net other op. (incom
Slide 56: Consolidated Statement of Financial Position (FY)
Consolidated Statement of Financial Position (FY) (€ million) 31/12/09 31/12/08 Appendix: Financials Property, plant & equipment 37.8 39.3 Goodwill 58.3 58.7 Other intangible assets 7.8 10.3 Others 14.8 9.1 Non-current assets 118.7 117.4 Inventories, WIP & Finished Goods 89.6 77.1 Trade receivables
Slide 57: Consolidated Statement of Cash Flows (FY)
Consolidated Statement of Cash Flows (FY) (€ million) 2009 2008 Appendix: Financials Cash Flow from operating activities 78.9 15.9 Cash Flow from investing activities -90.1 -11.4 Cash Flow from financing activities 154.9 -8.9 (incl. exchange rate changes) Net change in Cash & Cash Equivalents 143.7
Slide 58: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON AG, Aachen, Germany P 58
Slide 59: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON Ltd., Cambridge, UK P 59
Slide 60: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON Inc., Sunnyvale/USA P 60
Slide 61: New R&D Center
New R&D Center AIXTRON Ground Jan. 2010 Groundbreaking Apr. 2010 Building progress at new R&D site near Aachen Investment 2010: EUR 15m AIXTRON Sites Planned investment: EUR 40m R&D Offices Jul. 2010 R&D Office Building Completion Nov. 2010 R&D Lab & Prototyping Completion Fall 2011 P 61
Slide 62: Always One Step Ahead
ALWAYS 9! AHEAD