Aixtron Se · XETR:AIXA
Aixtron — H1 2013 Earnings Presentation
52 slides from Aixtron's earnings presentation, Jul 24, 2013
Slide 1: IR Master Presentation – H1/2013
AIXTRON Investor Presentation IR Master Presentation – H1/2013 (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041)
Slide 2: Forward-Looking Statements
AIXTRON Investor Presentation 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 Re
Slide 3: Global Presence
Global Presence AIXTRON 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: One Technology – Multiple Solutions
One Technology – Multiple Solutions Deposition Technology Technology Nano Scale Material Engineering Systems Compound Semiconductor Silicon Semiconductor (MOCVD, OVPD®, PVPD®, PECVD) (PECVD, CVD, ALD. MOCVD) Technology LEDs/OLEDs for displays LEDs/OLEDs for lighting Metal and oxide films SiC
Slide 5: Value Chain Positioning
Value Chain Positioning Production Chip & Electronic End Equipment Component Modules & Device User Manu- Packaging Manu- Markets Value Chain Makers facturers facturers Consumer Commu- nication Industrial Display Lighting Medical Automotive P5
Slide 6: Compound Semiconductor Systems: IC Platform
Compound Semiconductor Systems: IC 2 Platform Two Reactor Technologies Addressing Multiple Industries Proven Industry Standard & Market Leading Configurable, Extendable Common Platform Operations Planetary Reactor® AIX G5+, 5x8” Close Coupled Showerhead® Integrated Concept (IC 2) System CRIU
Slide 7: Global MOCVD Market Shares
Global MOCVD Market Shares TAM: $164m $238m $340m $185m $133m $231m $155m $202m $289m $486m $533m $1,713m $1,543m $446m 100% 90% 80% Operations 70% 60% 50% 40% 30% 20% 10% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 AIXTRON SE Veeco Instruments, Inc. Taiyo Nippon Sanso C
Slide 8: Annual Equipment Revenues by Application
Annual Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR million 800 700 600 Operations 500 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 LED Telecom/Datacom Consumer-/Optoelectronics Solar Display & others Silicon 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 Operations driven by notebook CVD orders 150 backlighting driven by memory demand driven by driven by telecom/datacom mobile phone 100 and mobile phone
Slide 10: Total Revenues by Region
Total Revenues by Region 2010: 2011: 2012: H1/2013: €783.8m €611.0m €227.8m €85.6m 5% 10% 0.0 Operations 6% 13% 4% 35.9 4% 31.1 36.9 12% 8.5 26.3 9% 29.0 21.4 10.2 716.9 547.8 177.5 66.9 91% 90% 78% 78% Asia Europe USA P 10
Slide 11: 5-Point-Program
5-Point-Program 1 Customer Focusing on customer benefit Putting unique technology portfolio to 2 Technology & Operations more effective use, further strengthening Products future products 3 Efficiency Optimizing process and project structures systematically 4 Finance Value driven financial orientati
Slide 12: High Brightness (HB) LED Market Forecast in USD
High Brightness (HB) LED Market Forecast in USD HB LED summary forecast by application in USD 2012 Industry & Markets 12,000 9,000 23% 11,000 8,000 41% 10,000 Market Size (USD million) 7,000 9,000 7% CAGR 13% 8,000 6,000 7,000 5,000 10% 13% 6,000 4,000 5,000 4,000 3,000 2017e 3,000 2,000 2,000 1,000
Slide 13: LED Backlighting Unit (BLU) Market Forecast
LED Backlighting Unit (BLU) Market Forecast LCD panel unit growth (TAM) Adoption towards full LED BLU implementation Emerging markets and new TV Models driving LED utilization rates Industry & Markets Does not include any 4K(Ultra HD) TV incremental potential LED-TV penetration LED-Monitor p
Slide 14: 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 Outdoor: Early adoption streetlight replacement m
Slide 15: A-19 Bulb: 60W LED Replacement – Global Pricing
A-19 Bulb: 60W* LED Replacement – Global Pricing Global Brands: Samsung, Osram, Philips, GE, Toshiba, etc. New light bulbs with higher lm/W being offered Industry & Markets Brand suppliers increasingly offering attractively priced devices QoQ LED vs. LED vs. Stores Incan. CFL LED Low High +/-
Slide 16: LED Lighting: Regional Highlights
LED Lighting: Regional Highlights Industry & Markets Cree introduced 60W Osram’s 40W LED light bulbs are equivalent LED light bulbs at available at EUR 7.99 (c. USD USD 12.97/13.97 (warm 10) in Germany now. white/day light) Philips introduced “hue” Wi-Fi connected LED light bulbs, which are able to
Slide 17: 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)- HB LED Market (sq area) - 200 125 100 150 75 10
Slide 18: Production Supply 3rd Party Estimates for HB LEDs
Production Supply 3rd Party Estimates for HB LEDs Bear-Bull MOCVD system demand: 2012 - 2017 CAGR of 18% Larger area demand requires capacity in volumes Industry & Markets SSL is the strongest driver for material area growth LED Units Material Area 50 40 1,500 Required number of MOCVD reactors
Slide 19: Business Development
24 - Month Business Development (€ million) 51.5 Equipment (only) 29.3 31.5 30.0 34.5 35.4 29.9 30.5 Order Intake @ $1.35 @ $1.40 @ $1.30 Financials 244.8 19.0 Equipment (only) 140.1 136.2 137.7 109.8 79.4 78.4 * 71.7 Order Backlog @ $1.35 @ $1.40 @ $1.30 *) revalued on Jan.1, 2013 to €83.8m at $1.3
Slide 20: Consolidated Income Statement
Consolidated Income Statement* (€ million) H1/13 H1/12 +/- Q2/13 Q1/13 +/- Revenues 85.6 88.1 -3% 45.3 40.2 13% Cost of sales 120.9 63.1 92% 33.1 87.9 -62% Financials Gross profit -35.4 25.0 n. m. 12.3 -47.7 126% Gross Margin -41% 28% -69pp 27% -118% 145pp Selling expenses 14.3 13.3 7% 7.4 6.9 6% Ge
Slide 21: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 30/06/13 31/12/12 30/06/12 Property, plant & equipment 94.0 97.6 99.8 Goodwill 63.8 64.3 64.4 Other intangible assets 3.4 4.2 5.3 Financials Others 5.0 6.3 38.9 Non-current assets 166.4 172.4 208.4 Inventories, WIP & Finished Goods 59.5 126.0
Slide 22: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) H1/2013 H1/2012 Q2/2013 Q1/2013 Cash Flow from operating activities 8.6 -28.4 -1.5 10.1 Cash Flow from investing activities 6.8 7.5 3.8 3.0 Financials Cash Flow from financing activities 1.1 -24.6 0.6 0.5 Exchange rate changes -0.6 1.7 -0.7 0.2 Net c
Slide 23: Promising Future Markets
Promising Future Markets Organic Carbon Compound Silicon Material Material Semiconductors Semiconductors Future Markets Graphene Power Management OVPD®/PVPD® Silicon systems CNTs and CNWs GaN / SiC for • OLEDs for display: Graphene, Carbon • RF transistors • Metal nitride and Hi-k mobile phones, tab
Slide 24: Market Prospects
Market Prospects Short-Term Increasing adoption of LEDs for exterior, public infrastructure & commercial lighting Future Markets Increased adoption of LEDs for consumer & residential lighting Increasing adoption of GaN for power electronics Next generation NAND, DRAM & PRAM memory applicatio
Slide 25: AIXTRON Investor Presentation
P 25 AIXTRON Investor Presentation
Slide 26: 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 450bn by 2015 China China potentially largest single Germany Other consumer of LED lighting by 2015 USA Appendix Japan LED lighting: 20%+ of the total lighting mark
Slide 27: China: Investment Programs Between 2010-2015
China: Investment Programs Between 2010-2015 Value chain: conversion of incumbent lighting and LED industry LED related subsidies will shift from fixed asset investments over to end-market subsidies. Northern Region Funding profile: Yangtze River Delta Funding profile: <5 cities / provinces
Slide 28: China: The Progress of LED Industry Policies
China: The Progress of LED Industry Policies Phasing out of incandescent bulbs Government actions to facilitate LED lighting transition Appendix Enhance technologies development: LED fabrication, SSL basic research, etc. Consumer End-market subsidy: LED lighting bidding plan Public End-market subsid
Slide 29: White HB LED: Key IP Landscape
White HB LED: Key IP Landscape Showa Denko Appendix Formosa Epitaxy (Taiwan) Sharp Source: LEDinside 2007; LEDs Magazine; AIXTRON P 29
Slide 30: LED Investment Cycle
LED Investment Cycle Global demand: driven by new applications Supply: different regional investment characteristics Lighting BLUs Mobile Appendix Strong Market Aggressive Demand > Capital Supply Spending Supply § Little Capacity Demand < 2010-11 2009 Demand Added Supply China Korea Price Margin
Slide 31: LED Lighting Market Continues to Grow
LED Lighting Market Continues to Grow Declining Prices drive Growth LED lighting market 2017: LED lighting >US$20bn market 2012: Appendix US$11.8bn Korea EU US Japan 0% -10% -20% -30% -40% -50% -60% 60W equivalent A19 LED light bulb price YoY change: 2010-2012 Source: Strategies Unlimited 2013; AI
Slide 32: Increasing Availability of LED Lighting Products
Increasing Availability of LED Lighting Products Government: >2,200 Energy Star qualified LED products End-Markets: Utility / Government rebate imminent Manufacturers: Shift of focus from lm/w to lm/$ Energy Star Product Release Average Luminous Efficacy 3000 65 Appendix LED replacement Bulbs
Slide 33: Par Bulb: LED Replacement – Commercial Lighting
Par 38 Bulb: LED Replacement – Commercial Lighting Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Philips- 72 Watt – Appendix Energy Saving Utilitech-26 Watt EcoSmart PAR38 Product PAR38 PAR38 Light Bulb LED Bulb Energy used (W) 72 26 18 Equivalent to (W) 90 90GE 90 Lifet
Slide 34: 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 34
Slide 35: 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 Pla
Slide 36: AIXTRON: Serving Megatrends
AIXTRON: Serving Megatrends • Electricity consumption Energy Efficiency • Efficient power Consumer management Electronics Appendix • New market Emerging Markets • Growing consumers Utility Market • High performance devices Mobile Devices • High efficiency devices P 36
Slide 37: Compound Semiconductors and Silicon – Two Converging Worlds
Compound Semiconductors and Silicon – Two Converging Worlds • Dominated by small wafers – 2“, 4“ & 6“ Compound • Low level of automation and fab integration Semiconductors • Complex binning process required • No recognized shared Industry Roadmap Appendix • AIXTRON G5+ MOCVD Planetary reactor offers
Slide 38: Semiconductor Systems for Power Electronics
Beyond LED Developments: Semiconductor Systems 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 superior device performance and reliability for >1200V Appendix GaN/Si | SiC & GaN/Si competition Superju
Slide 39: Semiconductor Systems for Power Electronics
Beyond LED Developments: Semiconductor Systems for Power Electronics Over 50 global customers in research and industry since 2005 Development programs for GaN, GaN-on-Si and SiC Positioned for 4”, 6”, 200mm and 300mm wafer configuration Year Company Region Status Materials Notes 2005 Showa Den
Slide 40: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems Advantages of OVPD®/PVPD® enhanced by CCS® technology Scalability: large-area deposition Throughput: high deposition rates Yield: precise process control Cost reduction: efficient material utilization, footprint efficiency Appendix R&D A
Slide 41: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems Cleaning Cleaning Glass cutting ITO deposition Organic material deposition Bonding Coating Etching Appendix Cathode deposition Aging Stripping Test and repair Encapsulation Final test Front-end Back-end Array process Front-end Module process Dis
Slide 42: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems OVPD®/PVPD®: Co-Deposition of multiple sources Multi-layer deposition RGB color-patterned OLED structure White OLED + Color Filter structure Appendix Cathode Cathode ETL EIL Red Green n-doped ETL HTL P-N contact P-N contact Blue R G B HTL p-
Slide 43: Silicon Semiconductor Systems
Beyond LED Developments: Silicon Semiconductor Systems QXP-8300 Platform “Q” – Quad (4 reactor stations per process module) “X” – eXtendibility to multiple technology nodes “P” – Productivity (low cost of ownership) 8300 – Parallel processing of “8” 300 mm wafers Appendix Features Benefits Paten
Slide 44: Silicon Semiconductor Systems
Beyond LED Developments: Silicon Semiconductor Systems Memory and Logic applications to drive ALD equipment industry Multi generation film development for memory & logic Product designed for high volume manufacturing (HVM) and offers low cost of ownership QXP-8300 production qualified for ne
Slide 45: Silicon Semiconductor System Market Forecast
Beyond LED Developments: Silicon Semiconductor System Market Forecast Total Deposition Equipment spending: 5 year CAGR of 5% Memory and Logic applications to drive ALD equipment industry Multi generation film development for memory & logic Appendix 100% 8,000 Wafer Fab Equipment Shippmend by L
Slide 46: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2012 2011 2010 Revenues 227.8 611.0 783.8 Cost of sales 227.4 379.5 372.0 Appendix Gross profit 0.4 231.4 411.8 Gross Margin 0% 38% 53% Selling expenses 34.8 32.1 48.9 General & admin expenses 19.6 34.0 30.1 R&D 72.9 50.4 46.1 Net other op. (income)/expense
Slide 47: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/12 31/12/11 31/12/10 Property, plant & equipment 97.6 96.2 77.9 Goodwill 64.3 64.1 62.2 Other intangible assets 4.2 6.2 7.0 Appendix Others 6.3 29.4 20.6 Non-current assets 172.4 195.8 167.7 Inventories, WIP & Finished Goods 126.0 184.6
Slide 48: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2012 2011 2010 Cash Flow from operating activities -45.2 -6.3 147.7 Cash Flow from investing activities -4.4 50.5 -165.4 Appendix Cash Flow from financing activities -24.3 -57.5 -11.6 Exchange rate changes 0.8 4.2 0.2 Net change in Cash & Cash Equiva
Slide 49: AIXTRON Sites
AIXTRON Sites AIXTRON Group Worldwide Production AIXTRON SE, Aachen, Germany P 49
Slide 50: AIXTRON Sites
AIXTRON Sites AIXTRON Group Worldwide Production AIXTRON Ltd., Cambridge, UK P 50
Slide 51: R&D Center: Fortify Technology Leadership
AIXTRON Sites R&D Center: Fortify Technology Leadership 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 51
Slide 52: Financial Calendar & Contact Data
Financial Calendar & Contact Data October 24, 2013 Q3/2013 Results, Conference Call February 2014 FY/2013 Results, Conference Call Financial Calendar April 2014 Q1/2013 Results, Conference Call May 14, 2014 Annual General Meeting, Aachen For further information please contact: Investor Relat