Comet Holding Ag · SIX:COTN
Comet — Investor Day (November 2021)
46 slides from Comet's investor day presentation, Nov 15, 2021
Slide 1: Capital Markets Day 2021: on track to meet our 2025 ambitions
Capital Markets Day 2021: on track to meet our 2025 ambitions November 15, 2021 Kevin Crofton, CEO Comet AG Herrengasse 10 CH-3175 Flamatt T +41 31 744 90 00 www.comet.tech
Slide 2: 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 3: Comet: market leader in RF power and x-ray technology
Comet: market leader in RF power and x-ray technology Sales of CHFm 480 to 500 (FY2021 guidance) #1 in vacuum capacitors and matchboxes 59% group sales #1 Top 3 in ceramic x-ray tubes in served markets 13% group sales 28% group sales Comet CMD 2021 11/15/2021 3
Slide 4: Global presence close to our customers
Global presence close to our customers 1’400 employees 15 locations worldwide HQ in Switzerland 47% Taastrup (Den) Portable x-ray 18% 33% of 2020 of 2020 of 2020 Hamburg (Ger) group sales group sales group sales X-ray systems San José (USA) Montreal (Canada) Aachen (Ger) Suwon (KOR) Matchboxes Shelt
Slide 5: Confident in our 2025 ambitions
Confident in our 2025 ambitions >830 CHFm sales / ~25% EBITDA margin / ~30% ROCE Tracking to Gaining Adapting to Executing as financial market macro planned targets share challenges Comet CMD 2021 11/15/2021 5
Slide 6: Our served markets are accelerating
Our served markets are accelerating
Slide 7: We are in an era driven by data, Artificial Intelligence and connectivity
We are in an era driven by data, Artificial Intelligence and connectivity 1990 2005 2020 2025 2030+ Internet Era Social Media Collaborative Autonomous Integrated World Age Economy Age Age www Comet CMD 2021 11/15/2021 7 Today
Slide 8: Industrial data generation becoming dominant
Industrial data generation becoming dominant Planned Fab production starts Other Memory Logic/foundry 3.0 Million 200mm Wafer equivalent 2.5 2.0 1.5 1.0 .5 .0 2020 2021 2022 2023 2024 2025 Nr. of Fabs 37 26 29 30 16 11 Source: Cisco Systems Source: World Fab Forecast Report, Sept 1, 2021 Update, Pub
Slide 9: Acceleration in wafer fab equipment forecast
Acceleration in wafer fab equipment forecast Chip (device) complexity requires more plasma-based equipment – and RF power subsystems RF Subsystems to WFE (in million USD) RF Power Ratio to WFE 120 2.5% 2.0 Shift from ~1.6% to ~2.0% BOM 100 2.0% 1.5 80 1.5% ~1% of BOM USD bn USD bn 60 1.0 1.0% 40 .5
Slide 10: Heading to a clean future in aerospace and automotive
Heading to a clean future in aerospace and automotive Heavy reliance on fossil fuels Hybrid / Blended wing Aerospace Past Future Automotive ICE / Smog / Congestion Today EV / Batteries / Robotaxi 11/15/2021 10
Slide 11: Automotive: steady growth in this core x-ray market
Automotive: steady growth in this core x-ray market … Light vehicle production forecast Peak ICE: EV/PHEV gaining share 105 100 95 Underlying growth # of vehicles produced (million) 90 85 approx. 6% in this sector for x-ray 80 75 70 65 60 2020 2021 2022 2023 2024 2025 Internal Combustion Engine Elec
Slide 12: … as well as in aerospace
… as well as in aerospace 140% 120% Economic recovery 100% Vaccine efficacy Pent-up demand Virus spread 80% Travel restricions Underlying growth approx. 28% in this 60% sector for x-ray 40% Traffic growth 2020 to 2025: ~28% 20% 0% 2018 2019 2020 2021 2022 2023 2024 2025 International Domestic Total
Slide 13: Our SAM growth outpaces overall industry
Our SAM growth outpaces overall industry Driven by semiconductors and electronics 2020 2025 8% 7% 6% 3% 6% 3% 5% 6% TAM CMD 2020: TAM 1.5X USD 2019: USD 4.1 bn 69% USD 69% 8% 2.9 bn 10% 2025: USD 5.1 bn 4.5 bn 6% 7% 8% 16% 2% SAM 3% 2.7X 2% USD 56% 8% SAM CMD 2020: USD 73% 0.9 bn 2019: USD 0.7 bn 6%
Slide 14: Executing on our strategy: progressing on our journey
Executing on our strategy: progressing on our journey
Slide 15: Three pillars to drive our success
Three pillars to drive our success Significant progress in all dimensions Growth despite COVID-19 Operational Culture Excellence Comet CMD 2021 11/15/2021 15
Slide 16: PCT: firing on all cylinders
Growth PCT: firing on all cylinders Operational Excellence Operational Excellence Innovation and products ~5x higher sales 61 with Asian top tiers Penang ramp-up on plan FY21e vs FY19 39 Successful vacuum capacitor 17 production ramp ~2x RF generator beta-testing on track: multiple customers, 2012 t
Slide 17: IXS: repositioning on track
Operational IXS: repositioning on track Operational Excellence Excellence FY19 Plan FY21e FY25e Customized products 13 2 0 0 • Returned to sustainable growth and profitability • New system sales into semi Standard products 14 6 8 0 space (3D architecture inspection) Software platforms 7 3 01 • Rigor
Slide 18: IXM: expanded market leadership, investing in new products & technology
IXM: expanded market leadership, investing in Growth new products & technology • New products launched in late 2019 and in 2020 contribute ~ 10% - 15% to FY21e revenue Sales with new products • Significant adoption in FY22 and beyond Mesofocus 450 module FXE/FXT Series • Expanded product portfolio t
Slide 19: Strengthened geographic footprint in Asia
Growth Strengthened geographic footprint in Asia Operational Excellence South Korea Design centre Beijing Japan Sales location Shanghai Taiwan Sales & Service Malaysia Stronger application Productivity New location for Ramp of match engineering and enhancement in the sales, service, training product
Slide 20: Values and culture: we want to become the employer of choice
Values and culture: Culture we want to become the employer of choice An attractive workplace for all: • Diversity, Equity & Inclusion • Pulse Check • Internships • Talent management • Apprenticeship training center • University collaborations Comet CMD 2021 11/15/2021 20
Slide 21: Confident outlook
Confident outlook cemet group
Slide 22: Multiple opportunities, manageable challenges
Multiple opportunities, manageable challenges New products and markets Recruiting Retention Financial Trade Challenges flexibility conflicts Opportunities Favorable Supply markets chain Mindset change Comet CMD 2021 11/15/2021 22
Slide 23: Well under way to meet financial ambitions
Well under way to meet financial ambitions Net sales (in million CHF) EBITDA margin ROCE FY20 396 14.8% 13.5% FY21e 480 to 500 18% to 20% not guided FY25e >830 ~25% ~30% Comet CMD 2021 11/15/2021 23
Slide 24: Full pipeline of opportunities for continuous future growth
Full pipeline of opportunities for continuous future growth
Slide 25: PCT: multiple opportunities in the semiconductor market
PCT: multiple opportunities in the semiconductor market November 15, 2021 Michael Kammerer, Division President PCT
Slide 26: Precise plasma control required to master challenges in etch and deposition processes
Precise plasma control required to master challenges in etch and deposition processes 3D NAND architecture (schematic) Bowing Stable plasma processes CD Variation at top vs. bottom critical for next generation chips and architectures Twisting Incomplete etch Comet CMD 2021 11/15/2021 26 Source: Soli
Slide 27: A vital role in the global chip giants' value chain
A vital role in the global chip giants’ value chain Radio-frequency Wafer fabrication Semiconductor power subsystems equipment manufacturers Market size (2020) Market size (2020) Market size (2020) USD 1.47 bn USD 63.6 bn USD 464.8 bn Sources: Gartner, VLSI Comet CMD 2021 11/15/2021 27
Slide 28: Opportunities
Opportunities Penang factory Actual product range New product range Capacity utilization CAGR matches and vaccaps growth RF Generator family 2020-2025e Gen 3 match control 20% | 60% YE 21 YE 22 ~ 9% Sources: company estimates, VLSI Comet CMD 2021 11/15/2021 28
Slide 29: Opportunities in IXS: repositioned, growing
Opportunities in IXS: repositioned, growing November 15, 2021 Kevin Crofton, Division President IXS a.i.
Slide 30: Three strategic priorities to meet our customers' needs
Three strategic priorities to meet our customers’ needs Product portfolio Best cost focus Time to market for growth Comet CMD 2021 11/15/2021 30
Slide 31: Advanced packaging requires new techniques: miniaturization offers opportunities for X-ray
Advanced packaging requires new techniques: miniaturization offers opportunities for X-ray Divisions Resolution required 3 Semiconductor 0.3µm Packaging 3 2 1µm 1 Surface-mount 2 Technology (SMT) 1 5- 10µm Comet CMD 2021 11/15/2021 31
Slide 32: Example: ball-grid array voids – today …
Example: ball-grid array voids – today … Inspection Ball-grid array voids can degrade the Layer-by-layer inspection of microchip: performance of the board and cause failure detection of defects Comet CMD 2021 11/15/2021 32
Slide 33: … and in the future: yield solutions fueled by AI
… and in the future: yield solutions fueled by AI SW- 1 2 Solutions Image Acquisition (Geminy) Product Analytics (Developed by Yxlon, powered by ORS Dragonfly) Identify ROI Generate xray image Reconstruction Visualize & Inspect Decide & report (only for 3D workflows) BGA 1 Why do our customers need
Slide 34: Dynamic growth in the advanced packaging market creates opportunities
Dynamic growth in the advanced packaging market creates opportunities Market growth Split by players Split by regions FCCSP packaging service market share 2020 OSATs* revenue – Split by geographic area 2020 revenues 2020 6% USD 33.7bn 6% 28% 26% ~8% 15% 52% CAGR 2020 to 2025 for advanced packaging 8
Slide 35: Opportunities in IXM: small, smart, successful products
Opportunities in IXM: small, smart, successful products November 15, 2021 Stephan Haferl, Division President IXM
Slide 36: Three strategic priorities to meet our customers' needs
Three strategic priorities to meet our customers’ needs Product Portfolio Best cost focus Time to market for growth Comet CMD 2021 11/15/2021 36
Slide 37: IXM's product portfolio for growth
IXM’s product portfolio for growth ION Series MF Series FXE Series Modules XP / UP Series Xplorer Series Components 75 – 600 kV 225 - 450 kV 130 – 225 kV 160 – 225 kV Mini Focus Meso Focus Micro Focus Nano Focus Resolution 1000μm 100μm 25μm 5μm 1μm Comet CMD 2021 11/15/2021 37
Slide 38: MesoFocus: new possibilities in non-destructive testing
MesoFocus: new possibilities in non-destructive testing Inconel Turbine Blade Comet CMD 2021 11/15/2021 38
Slide 39: MesoFocus: a quantum leap in resolution
MesoFocus: a quantum leap in resolution Traditional sealed X-ray module MesoFocus sealed X-ray module Inconel Turbine Blade Comet CMD 2021 11/15/2021 39 Traditional 450kV X-ray System
Slide 40: Financial priorities
Financial priorities November 15, 2021 Lisa Pataki, CFO
Slide 41: Key financial messages
Key financial messages GROWTH PROFITABILITY EFFICIENCY CAPITAL ALLOCATION Secular demand is driving Operational excellence Focused investments, Invest in growth; committed to sales growth and flexibility asset light approach annual dividends Investment in technology, disciplined performance leads to
Slide 42: Accelerating sales growth
Accelerating sales growth 135 >830 • Accelerating market demand in Semi/Electronics 315 creating opportunity CAGR CAGR ~16% ~13% • Outperform market Sales in million CHF • Fuel growth through innovation 396 • Deliver strong execution -15 CAGR ~19% * EBT division dissolved with the sale of the ebeam
Slide 43: Growing profitably, focus on efficiency
Growing profitably, focus on efficiency EBITDA margin ambition >25% Expand margin 18-20% through execution discipline, incl. ramp of Penang factory 14.8% Create operating leverage through a flexible business model – decrease OpEx as % of sales FY20 FY21e FY25e while ROCE ambition Prioritizing invest
Slide 44: Capital allocation
Capital allocation FY15 to FY20 cumulative actual • Investing in Comet’s growth 270M • Commitment to innovation through R&D R&D ~12% of sales • Ensure flexible execution through CapEx • Return an annual dividend to shareholders 86M • Maintain a strong and flexible balance sheet CapEx * ~4% of sales
Slide 45: Comet is financially well positioned to capitalize on the market opportunities
Comet is financially well positioned to capitalize on the market opportunities by 2025 and beyond group
Slide 46: cemet
cemet group