Slide 1: AIXTRON Investor Presentation – IR Presentation H1/2016
AIXTRON Investor Presentation IR Presentation – H1/2016 (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041) © AIXTRON Investor Relations, August 2016
Slide 2: Disclaimer: Additional information
Disclaimer 2 Additional information This document is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell securities. The takeover offer for the outstanding ordinary shares (including ordinary shares represented by American depositary shares) of
Slide 3: Cautionary statement regarding forward-looking statements
Disclaimer 3 Cautionary statement regarding forward-looking statements This document contains forward-looking statements, including statements regarding the expected consummation of the proposed transaction and AIXTRON SE’s future performance, which involves a number of risks and uncertainties, incl
Slide 4: Who we are
ABOUT AIXTRON 4 Who we are Headquarters based in Herzogenrath, Germany Technology leader in deposition systems Worldwide presence with 12 sales/representatives offices More than 3,000 deposition systems delivered and production facilities all over the world Company founded in 1983 – over 3
Slide 5: Global Presence
ABOUT AIXTRON 5 Global Presence
Slide 6: Our Vision: Technology. Materials. Performance.
ABOUT AIXTRON 6 Our Vision Technology. Materials. Performance. Technology. Materials. Performance. We are the recognized We enable our We deliver the technology leader customers to performance driving in complex material successfully shape the economic success deposition. markets of the future, thro
Slide 7: AIXTRON Investor Presentation
AIXTRON INVESTOR PRESENTATION 7
Slide 8: Our Technology. Your FUTURE.
AIXTRON TECHNOLOGIES 8 Our Technology. Your FUTURE. Compound Semiconductors Silicon Semiconductors LED Lighting Memory & Logic Organic Carbon OLED Power Management
Slide 9: Our Technology Portfolio
AIXTRON TECHNOLOGIES AND PRODUCTS 9 Our Technology Portfolio Silicon Compound Semiconductors Organic Carbon Semiconductors MOCVD ALD/MOCVD OVPD®/PVPD®/TFE PECVD LEDs, Lasers and Power Management Silicon Graphene, Organic Electronics Optoelectronics GaN / SiC Semiconductors CNTs and CNWs • LEDs for d
Slide 10: Overview of the Takeover offer
10 Overview of the Takeover offer Bidder Grand Chip Investment GmbH, c/o Paul Hastings (Europe) LLP, Siesmayerstraße 21, 60323 Frankfurt am Main, Germany Target company AIXTRON SE, Dornkaulstraße 2, 52134 Herzogenrath, Germany Securities sought in the All no-par value registered shares in AIXTRON, T
Slide 11: GCI Takeover Offer – Commitments to a Sustainable Future
11 GCI Takeover Offer – Commitments to a Sustainable Future Transaction could provide AIXTRON with the relevant support to successfully develop full technology roadmaps and to better access growth markets: GCI has committed to support AIXTRON to continue developing existing product lines, for its
Slide 12: Revenue Analysis
OPERATIONS 12 Revenue Analysis H1/2016: H1/2016: H1/2016: by equipment & spares by end application by region (equipment only) 4% 20% 20% 34% 35% 55% 25% 30% 66% 10% LED Equipment Silicon Asia Spares Power Electronics Europe Optoelectronics USA Others
Slide 13: 24-Month Business Development
FINANCIALS 13 24 - Month Business Development (€ million) Equipment (only) 49.7 50.2 49.3 48.9 52.5 44.4 51.1 Order Intake 34.4 31.3 @ $1.35 @ $1.25 @ $1.10 Equipment (only) 79.0 91.2 72.3 86.2 66.4 70.7 65.2 67.7 Order Backlog 42.9 * @ $1.35 @ $1.25 @ $1.10 *) revalued on Jan.1, 2016 to €46.7m at $
Slide 14: Consolidated Income Statement
Financials 14 Consolidated Income Statement* (€ million) H1/16 H1/15 +/- Q2/16 Q1/16 +/- Revenues 55.5 80.7 -31% 34.1 21.4 59% Cost of sales 45.5 68.3 -33% 27.2 18.3 49% Gross profit 10.0 12.4 -19% 6.9 3.1 123% Gross Margin 18% 15% 3 pp 20% 15% 5 pp Selling expenses 5.8 6.3 -8% 2.9 2.9 -3% General &
Slide 15: Consolidated Statement of Financial Position
Financials 15 Consolidated Statement of Financial Position* (€ million) 30/6/16 31/12/15 30/6/15 Property, plant & equipment 77.2 81.3 80.6 Goodwill 74.4 75.9 77.1 Other intangible assets 5.8 6.4 5.7 Others 3.6 3.9 4.8 Non-current assets 161.0 167.6 168.2 Inventories, WIP & Finished Goods 78.2 70.8
Slide 16: Consolidated Statement of Cash Flows
Financials 16 Consolidated Statement of Cash Flows* (€ million) H1/16 H1/15 Q2/16 Q1/16 Cash Flow from operating activities -39.3 -6.4 -19.9 -19.4 Cash Flow from investing activities 26.4 8.9 19.3 7.1 Cash Flow from financing activities 0.1 -0.2 0.1 0.0 Exchange rate changes -2.6 5.2 0.1 -2.7 Net ch
Slide 17: Market Prospects
FUTURE MARKETS 17 Market Prospects Short-Term • Further increasing adoption of LEDs for Solid State Lighting • Increasing demand adoption of optoelectronic components for tele- and data communication applications • Increased emergence of wide band gap GaN or SiC based devices for energy efficient po
Slide 18: AIXTRON Investor Presentation
AIXTRON INVESTOR PRESENTATION 18
Slide 19: AIXTRON Key Enabler for Innovative Future
AIXTRON TECHNOLOGIES AND PRODUCTS 19 AIXTRON Key Enabler for Innovative Future New Complex Materials Tech Trends Compound Semiconductors • GaAs/ GaN (Sensors) • GaN/SiC (RF/Power – Mobile) LOREM • GaAs/InP (Laser - Datacom) • GaN (LED – LiFi) Silicon Semiconductors Big Data LOREM • III-V (Next-gen
Slide 20: LED Lighting Market: Multiple Tipping Points
INDUSTRY & MARKETS 20 LED Lighting Market: Multiple Tipping Points Source: : AIXTRON, McKinsey 2012 LED Lighting Cycle Various Different Numerous Applications Regions Players
Slide 21: LED Lighting Market Estimates
INDUSTRY & MARKETS 21 LED Lighting Market Estimates Source: IHS 2016, Strategies Unlimited Globalization and urbanization to drive LED lighting opportunities: • Emerging countries: need for energy efficient lighting solutions • Developed countries: SSL driven by expanding renovation market • Outdoor
Slide 22: Technology Position
AIXTRON TECHNOLOGIES AND PRODUCTS 22 Technology Position MOCVD for LEDs, MOCVD for Power Lasers and Management Optoelectronics MOCVD for III-V on ALD for Memory ALD for Memory Silicon Customer B Customer A OVPD for OLED deposition Thin-Film Carbon Encapsulation for OLED R&D Demo &Qualification P
Slide 23: Compound Semiconductors – MOCVD
AIXTRON TECHNOLOGIES AND PRODUCTS 23 Compound Semiconductors – MOCVD Two Reactor Technologies Planetary Reactor® & Close Coupled Showerhead® (CCS) • Addressing multiple industries • Established industry standard & market leading • Configurable, extendable common platform • Introduced the latest MO
Slide 24: Compound Semiconductors – Wide Band Gap Power Electronics
AIXTRON TECHNOLOGIES AND PRODUCTS 24 Compound Semiconductors – Wide Band Gap (WBG) Power Electronics Consumer Electronics & IT Automotive Energy Industrial Power Management Power Switching 30V 600V 1.2 kV ≥2kV • Electronic appliances • Infotainment • General automotive electro • Power Grid / Smart m
Slide 25: Compound Semiconductors – Wide Band Gap Power Electronics
AIXTRON TECHNOLOGIES AND PRODUCTS 25 Compound Semiconductors – Wide Band Gap (WBG) Power Electronics Source: DOE, IHS 2016 WBG GaN and SiC based Power Management Device Shipments ~9x CAGR: 24% ~5x 1x (2015: Indexed=1z) 2015 2022e 2015e Higher- Reduced Energy High Voltage Improved power Higher temper
Slide 26: Organic Electronics – OVPD + Encapsulation
AIXTRON TECHNOLOGIES AND PRODUCTS 26 Organic Electronics – OVPD® + Encapsulation 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 Te
Slide 27: Organic Electronics – Front-end Process Equipment
AIXTRON TECHNOLOGIES AND PRODUCTS 27 Organic Electronics – Front-end Process Equipment Source: IHS; AIXTRON internal estimates Focus Activities Cumulative Capex Key competency: Thin-film deposition Value creation: 60% 100% 80% 75% 55% 45% 40% 20% 20% 5% 10% 5% Cathode Module Cleaning Deposition depo
Slide 28: Organic Electronics – OVPD
AIXTRON TECHNOLOGIES AND PRODUCTS 28 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 vapour phase deposition Free scalability: suitable for a
Slide 29: Organic Electronics – OptaCap PECVD
AIXTRON TECHNOLOGIES AND PRODUCTS 29 Organic Electronics – OPTACAP™ PECVD Product Description – OptaCap™ PECVD Proprietary PECVD technology based on linear plasma sources Based on AIXTRON‘s core competence of carrier gas enhanced vapour phase deposition “Disruptive deposition technology Free s
Slide 30: Silicon Semiconductors – Leading Edge Technologies
AIXTRON TECHNOLOGIES AND PRODUCTS 30 Silicon Semiconductors – Leading Edge Technologies Source: Gartner 2016 At the forefront to extend Moore’s Law Memory Logic transistor Interconnects (ALD) (MOCVD- III-V) (Graphene/CNT) >3x ≤22nm fab capacities “More than Moore” ~1.1x Total fab capacities (2015: I
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: Carbon Nanomaterials – PECVD
AIXTRON TECHNOLOGIES AND PRODUCTS 32 Carbon Nanomaterials – 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 33: Consolidated Income Statement
FINANCIALS 33 Consolidated Income Statement* (€ million) 2015 2014 2013 Revenues 197.8 193.8 182.9 Cost of sales 147.9 154.1** 204.7** Gross profit 49.8 39.7** -21.8** Gross Margin 25% 21% -12% Selling expenses 11.5 14.1** 14.5** General & admin expenses 16.3 19.3 18.2 R&D 55.4 66.7 57.2 Net other o
Slide 34: Consolidated Statement of Financial Position
Financials 34 Consolidated Statement of Financial Position* (€ million) 31/12/15 31/12/14 31/12/13 Property, plant & equipment 81.3 77.3 79.9 Goodwill 75.9 64.8 64.1 Other intangible assets 6.4 2.5 3.1 Others 3.9 4.6 5.7 Non-current assets 167.6 149.2 152.7 Inventories, WIP & Finished Goods 70.8 81.
Slide 35: Consolidated Statement of Cash Flows
FINANCIALS 35 Consolidated Statement of Cash Flows* (€ million) 2015 2014 2013 Cash Flow from operating activities -45.7 -33.8 8.2 Cash Flow from investing activities 41.2 -23.2 -39.7 Cash Flow from financing activities -0.1 0.2 101.6 Exchange rate changes 4.3 5.9 -2.4 Net change in Cash & Cash Equi
Slide 36: Annual Equipment Revenues by Application (excl. spares)
OPERATIONS 36 Annual Equipment Revenues by Application (excl. spares) 800 (EUR million) 700 600 500 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LED Silicon Power Electronics Optoelectronics* Others * Optoelectronics includes applications in
Slide 37: Equipment Order Intake per Quarter
OPERATIONS 37 Equipment Order Intake per Quarter driven by strategic (EUR million) 250 China investments Overcapacity driven by LED TV Absorption, Industry 200 Consolidation driven by notebook driven by driven by backlighting 150 telecom/datacom mobile phone and mobile phone penetration 100 50 0 1Q9
Slide 38: Global Presence
ABOUT AIXTRON 38 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 key MOCVD reactor Focus on silicon applications for the Technology and R&D Center component technolog
Slide 39: Financial Calendar & Contact Data
39 Financial Calendar & Contact Data • November 8, 2016 9M/2016 Results, Conference Call • February 2017 FY/2016 Results, Conference Call • May 2017 Annual General Meeting, Aachen For further information please contact: Investor Relations & Corporate Communications AIXTRON SE Dornkaulstr. 2 5213
Slide 40: 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