Aixtron Se · XETR:AIXA
Aixtron — 9M 2014 Earnings Presentation
42 slides from Aixtron's earnings presentation, November 2014
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation Excerpt of the IR Master Presentation – 9M/2014 (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041)
Slide 2: Forward-Looking Statements
AIXTRON INVESTOR PRESENTATION 2 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
Slide 3: Global Presence
ABOUT AIXTRON 3 Global Presence
Slide 4: One Technology – Multiple Solutions
TECHNOLOGY 4 One Technology – Multiple Solutions Deposition Technology Technology Nano Scale Material Engineering Compound Semiconductor Silicon Semiconductor Systems (MOCVD, OVPD®, PVPD®, PECVD) (PECVD, CVD, ALD. MOCVD) • LEDs/OLEDs for displays • Metal and oxide films for CMOS • LEDs/OLEDs for lig
Slide 5: Compound Semiconductors – New AIX R6
AIXTRON TECHNOLOGIES AND PRODUCTS 5 Compound Semiconductors – New AIX R6 AIX R6 Sets New Standards in LED Manufacturing • Close Coupled Showerhead® (CCS) • CoO benefit vs. current generation systems: > 30% • Capacity increase vs. largest current generation system: > 60% • Throughput benefit vs. cu
Slide 6: Annual Equipment Revenues by Application
OPERATIONS 6 Annual Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR million 800 700 600 500 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LED Telecom/Datacom Consumer-/Optoelectronics Solar Others Silicon
Slide 7: Equipment Order Intake per Quarter
OPERATIONS 7 Equipment Order Intake per Quarter Source: Deutsche Bank Equity Research, AIXTRON SE (EUR million) driven by strategic China investments driven by LED TV driven by notebook driven by driven by backlighting telecom/datacom mobile phone and mobile phone penetration Compound Semiconductor
Slide 8: LED Lighting Cycle
INDUSTRY & MARKETS 8 LED Lighting Market: Multiple Tipping Points Source: : AIXTRON, McKinsey 2012 LED Lighting Cycle Various Different Numerous Applications Regions Players
Slide 9: LED Lighting Market Estimates
INDUSTRY & MARKETS 9 LED Lighting Market Estimates Source: Strategies Unlimited 2014; IHS 2014 Globalization and urbanization to drive LED lighting opportunities: • Emerging countries: need for energy efficient lighting solutions • Developed countries: SSL driven by expanding renovation market • Out
Slide 10: A-19 Bulb: 60W LED Replacement – Global Pricing
INDUSTRY & MARKETS 10 A-19 Bulb: 60W* LED Replacement – Global Pricing Source: Various websites; AIXTRON Global Brands: Samsung, Osram, Philips, GE, Toshiba, etc. New light bulbs with higher lm/W being offered Brand suppliers increasingly offering attractively priced devices QoQ LED vs. Hal. LED vs.
Slide 11: LED Lighting: Regional Highlights
INDUSTRY & MARKETS 11 LED Lighting: Regional Highlights More “smart lighting” products in the market and GE offers 60W equivalent connected LED light bulbs at US$14.97 Varieties of 100W equivalent LED bulbs with 1,600+ lumens are now available between US$20-25
Slide 12: Increasing LED Area Demand Driving Growth
INDUSTRY & MARKETS 12 Increasing LED Area Demand Driving Growth • Growth through increasing LED-unit and area demand • Consistent epitaxial area growth will trigger equipment demand • LED-lighting gaining further momentum LED Units 2” Equivalent Wafer 150 50.000 HB LED Market (2" Equivalent Wafer in
Slide 13: 3rd Party Estimates for HB LEDs
INDUSTRY & MARKETS 13 Production Supply 3rd Party Estimates for HB LEDs • Analysts’ Bull-Bear MOCVD system demand estimates • Larger area and future replacement to drive equipment demand • SSL is the strongest driver for material area growth • Incremental LED units and area growth every year Increme
Slide 14: 5-Point-Program - Return to Sustainable Profitability
OPERATIONS 14 5-Point-Program - Return to Sustainable Profitability 1 Customer Focusing on customer benefit 2 Technology & Products Putting unique technology portfolio to more effective use, further strengthening future products 3 Efficiency Optimizing process and project structures systematically 4
Slide 15: Our Technology Portfolio
AIXTRON TECHNOLOGIES AND PRODUCTS 15 Our Technology Portfolio Silicon Compound Semiconductors Organic Carbon Semiconductors MOCVD ALD (MOCVD) OVPD®/PVPD® PECVD Compound Power Management Silicon Organic and large Graphene, Semiconductors GaN / SiC Semiconductors area thin films CNTs and CNWs • LEDs f
Slide 16: 24-Month Business Development
FINANCIALS 16 24 - Month Business Development (€ million) Equipment (only) Order Intake @ $1.40 @ $1.30 @ $1.35 Equipment (only) * Order Backlog @ $1.40 @ $1.30 @ $1.35 *) revalued on Jan.1, 2014 to €58.1m at $1.35/€ Total Revenues (incl. equipment, service, spare parts) @ $1.290 @ 1.327 @ $1.356 US
Slide 17: Consolidated Income Statement
FINANCIALS 17 Consolidated Income Statement* (€ million) 9M/14 9M/13 +/- Q3/14 Q2/14 +/- Revenues 135.8 131.8 3% 45.6 46.2 -1% Cost of sales 105.8 156.6 -32% 39.1 33.6 17% Gross profit 29.9 -24.8 221% 6.5 12.6 -49% Gross Margin 22% -19% 41 pp 14% 27% -13 pp Selling expenses 10.9 21.2 -49% 3.6 3.4 5%
Slide 18: Consolidated Statement of Financial Position
FINANCIALS 18 Consolidated Statement of Financial Position* (€ million) 30/09/14 31/12/13 30/09/13 Property, plant & equipment 78.2 79.9 92.4 Goodwill 64.8 64.1 64.3 Other intangible assets 2.6 3.1 3.2 Others 5.9 5.7 5.6 Non-current assets 151.5 152.7 165.5 Inventories, WIP & Finished Goods 83.5 66.
Slide 19: Consolidated Statement of Cash Flows
FINANCIALS 19 Consolidated Statement of Cash Flows* (€ million) 9M/2014 9M/2013 Q3/2014 Q2/2014 Cash Flow from operating activities -43.6 4.9 -18.5 -15.3 Cash Flow from investing activities 6.1 14.7 26.0 4.4 Cash Flow from financing activities -0.1 1.3 0.1 -0.2 Exchange rate changes 5.2 -1.6 4.6 1.0
Slide 20: Market Prospects
FUTURE MARKETS 20 Market Prospects Short-Term • Further increasing adoption of LEDs for exterior, public infrastructure & commercial lighting • Increased adoption of LEDs for consumer & residential lighting • Introduction of next generation MOCVD tool for LED manufacturing • Increasing adoption of G
Slide 21: AIXTRON INVESTOR PRESENTATION
AIXTRON INVESTOR PRESENTATION 21
Slide 22: China: The Progress of LED Industry Policies
INDUSTRY & MARKETS 22 China: The Progress of LED Industry Policies Source: Ministry of Industry and Information Technology, China; CSA 2011/2012; McKinsey 2011; Goldman Sachs 2011; Morgan Stanley 2012 Phasing out of incandescent bulbs Government actions to facilitate LED lighting transition Enhance
Slide 23: LED Investment Cycle
INDUSTRY & MARKETS 23 LED Investment Cycle Source: IC Insights, AIXTRON • Global demand: Growth driven mainly by LED Lighting • Supply: Margins, Consolidation, Considering Next-Gen Tools Strong Market Aggressive Capital Demand > Supply Spending Supply Little Capacity Demand < Supply Added Demand Pri
Slide 24: Par Bulb: LED Replacement – Commercial Lighting
INDUSTRY & MARKETS 24 Par 38 Bulb: LED Replacement – Commercial Lighting Source: U.S. Energy Information Administration (EIA), AIXTRON • Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Philips- 72 Watt – EcoSmart-23Watt CREE PAR38 Product Energy Saving PAR38 PAR38 Light Bulb
Slide 25: LED Cost Structure by Application
INDUSTRY & MARKETS 25 LED Cost Structure by Application Based on: AIXTRON; DOE 2014, IHS Q4/2013 • LED Chip: ca. 10% of total LED Light Bulb manufacturing cost LED TV Lighting 100% Phosphor 80% GE Packaging 60% 40% LED Chip 20% Process Substrate 0% 32" Edge-lit LED 32" Direct-lit Outdoor Area Interi
Slide 26: Compound Semiconductors – System Generations
AIXTRON TECHNOLOGIES AND PRODUCTS 26 Compound Semiconductors – System Generations Two Reactor Technologies Planetary Reactor® & Close Coupled Showerhead® (CCS) • Extendibility: Extensive choice of configurations and enhancements • Scalability: Multiple technologies on one platform • Productivity:
Slide 27: Compound Semiconductors – MOCVD
AIXTRON TECHNOLOGIES AND PRODUCTS 27 Compound Semiconductors – MOCVD Two Reactor Technologies Planetary Reactor® & Close Coupled Showerhead® (CCS) • Addressing multiple industries • Established industry standard & market leading • Configurable, extendable common platform • Next-gen tool launched r
Slide 28: Compound Semiconductors for Power Electronics
AIXTRON TECHNOLOGIES AND PRODUCTS 28 Compound Semiconductors for Power Electronics Source: Yole Développement Benefits – Compound Semiconductors for Power Electronics • GaN-on-Si emerging into 30-300V voltage range devices • GaN-on-Si and SiC to compete for attractive 600V devices • SiC with superio
Slide 29: Compound Semiconductors for Power Electronics
AIXTRON TECHNOLOGIES AND PRODUCTS 29 Compound Semiconductors for Power Electronics Source: DOE 2013 Reduced • Eliminates up to 90% of the power losses that currently occur Energy Losses during AC-to-DC and DC-to-AC electricity conversion • Handles voltages more than 10 times higher than Si-based Hig
Slide 30: Compound and Silicon Semiconductors – Two Converging Worlds
AIXTRON TECHNOLOGIES AND PRODUCTS 30 Compound and Silicon Semiconductors – Two Converging Worlds • Dominated by Small Wafers – 2”, 4” & 6” Compound • Low Level of Automation and Fab Integration Semiconductors • Complex Binning Process Required • No Industry Wide Roadmap • AIXTRON G5+ MOCVD Planetary
Slide 31: Silicon Semiconductors - ALD
AIXTRON TECHNOLOGIES AND PRODUCTS 31 Silicon Semiconductors - ALD Product Description – ALD • 300mm ALD Technology • QXP-8300 Mini-batch system • High throughput : 2 Process Chambers – 8 stations “Best-in class technology, state of the art • Up to 3 vaporizers and one bubbler deposition system, lowe
Slide 32: Wafer Fab Equipment Shipment by Linewidth
AIXTRON TECHNOLOGIES AND PRODUCTS 32 Silicon Semiconductors - ALD Source: Gartner 2014 Benefits – ALD • Multi generation film development for memory & logic • Memory and Logic applications to drive ALD equipment industry • Multi generation film development for memory & logic AIXTRON 100% Wafer Fab E
Slide 33: Organic Electronics – OVPD
AIXTRON TECHNOLOGIES AND PRODUCTS 33 Organic Electronics – OVPD Product Description – OVPD • Proprietary carrier-gas enhanced gas phase deposition approach for organic thin films • Based on AIXTRON‘s core competence of carrier gas enhanced vapor phase deposition “Disruptive deposition technology for
Slide 34: Organic Electronics – OVPD
AIXTRON TECHNOLOGIES AND PRODUCTS 34 Organic Electronics – OVPD 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 Test and repair Fro
Slide 35: Organic Electronics – OVPD
AIXTRON TECHNOLOGIES AND PRODUCTS 35 Organic Electronics – OVPD Source: Barclays 2012, AIXTRON Benefits – OVPD®/PVPD®: • Co-Deposition of multiple sources • Multi-layer deposition RGB color-patterned OLED structure White OLED + Color Filter structure Cathode Cathode ETL EIL Red Green n-doped ETL HTL
Slide 36: Carbon Nanostructures – PECVD
AIXTRON TECHNOLOGIES AND PRODUCTS 36 Carbon Nanostructures – PECVD Graphene and Carbon Nanotube Deposition Systems • Proprietary thermal and plasma enhanced chemical vapour deposition technology • Excellent uniformity and reproducibility with fast turnaround cycle times • BM platform: BM R&D (2-inch
Slide 37: Consolidated Income Statement
FINANCIALS 37 Consolidated Income Statement* (€ million) 2013 2012 2011 Revenues 182.9 227.8 611.0 Cost of sales 190.3 227.4 379.5 Gross profit -7.4 0.4 231.4 Gross Margin -4% 0% 38% Selling expenses 29.0 34.8 32.1 General & admin expenses 18.2 19.6 34.0 R&D 57.2 72.9 50.4 Net other op.(income)/expe
Slide 38: Consolidated Statement of Financial Position
FINANCIALS 38 Consolidated Statement of Financial Position* (€ million) 31/12/13 31/12/12 31/12/11 Property, plant & equipment 79.9 97.6 96.2 Goodwill 64.1 64.3 64.1 Other intangible assets 3.1 4.2 6.2 Others 5.7 6.3 29.4 Non-current assets 152.7 172.4 195.8 Inventories, WIP & Finished Goods 66.2 12
Slide 39: Consolidated Statement of Cash Flows
FINANCIALS 39 Consolidated Statement of Cash Flows* (€ million) 2013 2012 2011 Cash Flow from operating activities 8.2 -45.2 -6.3 Cash Flow from investing activities -39.7 -4.4 50.5 Cash Flow from financing activities 101.6 -24.3 -57.5 Exchange rate changes -2.4 0.8 4.2 Net change in Cash & Cash Equ
Slide 40: Global Presence
ABOUT AIXTRON 40 Global Presence AIXTRON SE Headquarters AIXTRON Ltd. AIXTRON Inc. Herzogenrath, Germany Cambridge, United Kingdom Sunnyvale, California, USA Core of AIXTRON’s activities is Focus on the enhancement of Focus on silicon applications for the Technology and R&D Center material sciences
Slide 41: Financial Calendar & Contact Data
41 Financial Calendar & Contact Data • February 2015 FY/2014 Results, Conference Call • April 2015 Q1/2015 Results, Conference Call • May 2015 Annual General Meeting, Aachen • July 2015 H1/2015 Results, Conference Call • October 2015 9M/2015 Results, Conference Call For further information please co
Slide 42: Thank you very much for your attention.
Thank you very much for your attention. AIXTRON SE Dornkaulstr. 2 52134 Herzogenrath Germany Phone +49 (2407) 9030-0 Fax +49 (2407) 9030-40 E-Mail invest@aixtron.com