Aixtron Se · XETR:AIXA
Aixtron — Investor Presentation (February 2012)
55 slides from Aixtron's investor presentation, February 2012
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation IR Master Presentation – FY/2011 (FSE: AIXA, ISIN DE000A0WMPJ6, 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: Global Presence
AIXTRON Global Presence 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 Introduction (MOCVD, HVPE, OVPD®, PVPD, PECVD) (CVD, ALD, AVD®) LEDs/OLEDs for displays LEDs/OLEDs for lighting Optoelectronics for Metal and oxid
Slide 5: Value Chain Positioning
Value Chain Positioning Production Chip & Electronic End Equipment Component Modules & Device User Manu- Packaging Manu- Markets Introduction 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 Repeat and multiple orders Turn-key solutions for Compound fab design Proven industry standard & market leader Configurable, extendable common platform Operations Planetary Reactor® AIX G5 HT, 56x2” Close Coupled Showerhead® Integrated Concept (IC 2) Sys
Slide 7: Global MOCVD Market Shares
Global MOCVD Market Shares $113m $164m $238m $340m $185m $133m $231m $155m $202m $289m $486m $533m $1713m Operations Compilation of VLSI RESEARCH Inc. and Gartner Dataquest P7
Slide 8: Equipment Revenues by Application
Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR m Operations P8
Slide 9: Compound Equipment Order Intake per Quarter
Compound Equipment Order Intake per Quarter (million EUR) driven by China investments and tangible LED lighting momentum driven by LED TV Appendix driven by telecom/datacom driven by notebook and mobile phone backlighting driven by mobile phone penetration P9 Source: Deutsche Bank Equity Research 20
Slide 10: Total Revenues by Region
Total Revenues by Region 2008: 2009: 2010: 2011: €274.4m €302.9m €783.8m €611.0m 5% Operations 6% 4% 6% 4% 35.9 4% 7% 14% 36.9 17.8 11.4 31.1 26.3 18.5 41.5 547.8 238.2 250.0 716.9 87% 82% 91% 90% Asia Europe USA P 10
Slide 11: High Brightness (HB) LED Market Forecast in USD
High Brightness (HB) LED Market Forecast in USD HB LED summary forecast by application in USD 2011 9,000 14% Industry & Markets 9 ,000 8,000 8 ,000 11% Market Size (USD million) 7,000 7 ,000 13% CAGR 52% 6,000 6 ,000 9% 5,000 5 ,000 14% 4,000 4 ,000 3,000 3 ,000 2,000 2 ,000 2016e 1,000 1 ,000 - - 2
Slide 12: 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 market
Slide 13: 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 market
Slide 14: LED Lighting Momentum Signals
LED Lighting Momentum Signals governmental GOVERNMENT Consumer Subsidies regulations 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 re
Slide 15: Tangibility of LED Lighting Momentum
Tangibility of LED Lighting Momentum Ban targets set by top 10 GDP countries Energy Star in place (US Standard) Government EU / US energy saving programs (Tax Credit) Industry & Markets Japanese energy policy China: subsidy policy changing Korea: SSL development program Taiwan: Street Light project
Slide 16: A-19 Bulb: 60W LED Replacement Target
A-19 Bulb: 60W LED Replacement Target Global Brands: Samsung, Osram, Philips, GE, Toshiba, etc. Local Stores: Test market phase in leading economies Industry & Markets New light bulbs with higher lm/w start launching in Asia. LED vs. LED vs. Samsung Stores Incan. CFL LED Incan. (x) CFL (x) Average U
Slide 17: LED lighting market continues to grow
LED lighting market continues to grow Declining Prices drive growth h Y growt LED lighting 69% Yo Industry & Markets market 2011: LED lighting US$9.3bn market 2010: US$5.5bn Korea US EU Japan 0% -10% -20% -30% -40% -50% -60% 60w equivalent A19 LED light bulb price YoY change: 2011 Source: Strategies
Slide 18: Increasing LED Chip Size
Increasing LED Chip Size Strong estimated* area growth: 5 year CAGR of 69% Larger chip sizes lead to epitaxial area increase Industry & Markets Improved visibility for SSL gaining momentum LED Units Material Area 250 150.0 HB LED Market (bn units) HB LED Market (sq area) 200 125.0 100.0 150 75.0 100
Slide 19: Production Supply Estimates for HB LEDs
Production Supply Estimates for HB LEDs Bear-Bull MOCVD system demand: 2010 - 2015 CAGR of 5% Larger chip sizes require further capacity increase Industry & Markets SSL is the strongest driver for material area growth LED Units Material Area 50 40 1,500 Required number of MOCVD reactors Incremental
Slide 20: 12-Month Business Development
24 - Month Business Development (€ million) 200.4 204.0 210.3 222.2 168.5 175.4 51.5 29.3 Equipment (only) @ $1.35 Order Intake Adjusted as of Sep. 15, 2011 Financials 100.0 321.1 Equipment (only) 250.0 278.7 274.8 273.5 229.9 244.8 Order Backlog 141.0 @ $1.35 191.8 212.7 224.7 205.4 Total Revenues
Slide 21: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2011 2010 +/- Q4/11 Q4/10 +/- Revenues 611.0 783.8 -22% 140.1 224.7 -38% Cost of sales 379.5 372.0 2% 128.4 107.4 20% Financials Gross profit 231.4 411.8 -44% 11.8 117.3 -90% Gross Margin 38% 53% -15 pp 8% 52% -44 pp Selling expenses 32.1 48.9 -34% 7.1 9.0
Slide 22: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/11 31/12/10 Property, plant & equipment 96.2 77.9 Goodwill 64.1 62.2 Other intangible assets 6.2 7.0 Others 29.4 20.6 Financials Non-current assets 195.8 167.7 Inventories, WIP & Finished Goods 184.6 167.2 Trade receivables 78.6 88.4 Ot
Slide 23: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2011 2010 Cash Flow from operating activities (6.3) 148.0 Cash Flow from investing activities 50.5 (165.4) Financials Cash Flow from financing activities (57.5) (11.6) Exchange rate changes 4.2 0.2 Net change in Cash & Cash Equivalents (9.2) 29.1 Cas
Slide 24: 2012 EBIT Break Even Model
2012 EBIT Break Even Model Predicted Profitable Performance in 2012 2012 EBIT Profitability starts at: € 275m Revenues 40% Gross Margin Financials € 110m Opex (€ million) € 137m backlog Shippable equipment orders revalued at 1.40 US$/€ required as per 01/01/12 98 137 458- Assumed 2012 spares & non-e
Slide 25: Market Prospects
Market Prospects Short-Term Increasing LEDs for exterior, public street & commercial lighting Increased adoption of LEDs for consumer & residential lighting Increasing adoption of GaN for power electronics Mid-Term Outlook Increased emergence of silicon carbide (SiC) hybrid automotive & photovoltaic
Slide 26: AIXTRON Investor Presentation
P 26 AIXTRON Investor Presentation
Slide 27: 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 500bn by 2015 China China potentially largest single Germany Other consumer of LED lighting by 2015 USA Appendix Japan 50 different indoor and outdoor lighting projects i
Slide 28: 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 eventually shift from fixed asset investments over to end-market subsidies. Northern Region Funding profile: Yangtze River Delta Funding profile: <5 cities / provinc
Slide 29: China: Lighting supply chain restructuring for SSL
China: Lighting supply chain restructuring for SSL 5 Year target: increase HB LED value chain output by 4x Value Chain: regional difference in value, timing and applications Supply chain to support growth of Chinese LED flagship companies Lighting Market Value (incl LED) LED Lighting China 100 120 3
Slide 30: Cooperation with Chinese Research Institutes
Cooperation with Chinese Research Institutes Over 30 customers in research and academia Positioned for 5 year plan R&D funding and development programs SINANO: Demo and training facility for Planetary and CCS technology AIXTRON Group Key Project/ Comments Cooperating Research Research Area GaN LED;
Slide 31: Chinese LED industry challenges
Chinese LED industry challenges The “Quantity“ Era # of tools Technical Experience Operator availability Wafer availability MO availability Appendix Installation issues $/lm Development Infrastructure of Expertise Quality of light Tool capacity lm/W Yield LED brightness Color temperature Color consi
Slide 32: 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 32
Slide 33: LED Lighting: Legislation and Subsidies
LED Lighting: Legislation and Subsidies Government Legislation: Create energy/cost efficient infrastructure Encourage energy-saving lighting Timelines for incandescent lighting bans by country Appendix Source: Goldman Sachs P 33
Slide 34: 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 LED-TV penetration LED-Monitor penetration 350 100% 300 100% Appendix LCD Monitor Market (million units) LCD TV Market
Slide 35: Increasing availability of LED Lighting Products
Increasing availability of LED Lighting Products Government: Energy Star qualified products for release increasing End-Markets: Utility / Government rebate imminent Energy Star Product Release 600 60 Appendix LED replacement Bulbs in Units New Release- avg. luminous efficacy 500 55 400 300 50 200 45
Slide 36: A-19 Bulb: 60W LED Replacement - US-Pricing
A-19 Bulb: 60W LED Replacement - US-Pricing Commercial Lighting: LED reaching economic tipping point Residential Lighting: From social driven to operating cost benefits Government / Utilities can help to reach tipping point LED vs. LED vs. Appendix Store LED Man. Incan. CFL LED Incan. (x) CFL (x) Am
Slide 37: Par Bulb: LED Replacement
Par 38 Bulb: LED Replacement Commercial Lighting US-Pricing Distributed in different channels. Functional driven: dimmable, beam angle, etc. to be highlighted LED vs. LED vs. Appendix Store LED Man. Hal. CFL LED Hal. (x) CFL (x) Feit Amazon $ 5.5 $11.0 $ 34 6.2x 3.1x Electric EcoSmart GE Home Depot
Slide 38: Par Bulb: LED Replacement – Commercial Lighting
Par 38 Bulb: LED Replacement – Commercial Lighting Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Sharp 16 Watt SYLVANIA- 75 TCP 16 Watt Dimmable Appendix Product Watt - PAR38 PAR38 Light Bulb Par 38 Energy used (W) 75 16 16 Equivalent to (W) 75 75 75 GE Lifetime (hours) 2,
Slide 39: LED Cost Structure by Application
LED Cost Structure by Application LED-Chip representing 20% of LED Light Bulb Cost Mature Emerging 100% Other costs Appendix 80% Profit/Yield 60% 40% 50% LED Chip cost 40% 20% 0% 15.6" 18.5" 42" TV LED Outdoor Interior LED Light LED Notebook Monitor LED BLU Area Lam p Dow nlight Bulb Com ponent LED
Slide 40: HB LED manufacturing: the race to mass adoption
HB LED manufacturing : the race to mass adoption Lm/W to Lm/$: supporting mass adoption Capital efficiency to enable price / volume manufacturing curve DOE target of 500 lm/$ by 2015 already in sight A19 LED Bulb pricing 15000 500 120 trend Appendix Launch of 110 IC-II Platform Lm / $ Chip level (10
Slide 41: 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 42: Compound Semiconductor System Generations
Compound Semiconductor System Generations Larger end-markets adopting increased MOCVD system capabilities Pure Play: customer engagement and competence ownership Chip & Component Chip & Component Chip & Component Chip & Component Appendix Fab Integration IP M ER STO Automation Automation CU Process
Slide 43: Cost Reduction by Capacity Gain
Cost Reduction by Capacity Gain Wafer Size 2" 4" 6" CRIUS® II 55 13 5 Appendix ® CRIUS II-L 69 16 7 ® CRIUS II-XL 85 19 7 Capacity Gain 55% 46% 40% CRIUS® II-XL – highest throughput in the industry > 7,000 wafers/month P 43
Slide 44: The Development of an Expertise Partnership
The Development of an Expertise Partnership AIXTRON’s contribution: Embedded Expertise Yield Volume Automation throughput Appendix Development of Expertise Large wafer capacity Advanced metrology Process flexibility Competitive Cost of ownership Fab integration „Quantity era“ „Quality era“ P 44
Slide 45: 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 30-75 TV – Edge BLU 150 - 350 TV – Direct BLU 120 - 1000 TV –
Slide 46: Beyond LEDs – Material & Technology Convergence
Beyond LEDs – Future Developments: Material & Technology Convergence Compound Semiconductors Silicon Semiconductors Application driven Technology driven Mainly batch processing High volume production Diversified value chain Large players Appendix Complex materials Simple materials CPV triple-junctio
Slide 47: Beyond LEDs – Power Electronics
Beyond LEDs – Future Developments: Power Electronics Over 50 global customers in research and industry since 2005 Development programs for GaN, GaN/Si and SiC Positioned for 4”, 6”, 200mm and 300mm wafer configuration Selected Non Confidential Press Releases: Appendix Year Company Region Status Mate
Slide 48: Beyond LEDs – Organic Semiconductor Systems
Beyond LEDs – Future Developments: Organic Semiconductor Systems Cleaning Cleaning Cleaning Glass Cleaning Glass cutting cutting ITO ITO deposition deposition Organic Organic material material Bonding Coating Bonding Coating deposition deposition Etching Appendix Etching Aging Aging Cathode Cathode
Slide 49: Beyond LEDs – Organic Semiconductor Systems
Beyond LEDs – Future 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 Appendix R&D Applications Producti
Slide 50: Silicon Semiconductor Systems
Silicon Semiconductor Systems Memory and emerging 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 Product being qualified for memory and emerging Appendix applicati
Slide 51: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON SE, Aachen, Germany P 51
Slide 52: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON Ltd., Cambridge, UK P 52
Slide 53: Building Project R&D Center
Building Project R&D Center AIXTRON Sites 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 53
Slide 54: Building Project R&D Center
Building Project R&D Center Completed in Q3/10 (Phase I) and Q1/12 (Phase II) R&D and Engineering Offices Labs and Prototype/Non Standard Production AIXTRON Sites P 54
Slide 55: Financial Calendar & Contact Data
Financial Calendar & Contact Data April 2012 Q1/2012 Results, Conference Call May 16, 2012 Annual General Meeting, Aachen Financial Calendar July 2012 H1/2012 Results Conference & Conf. Call October 2012 9M/2012 Results, Conference Call For further information please contact: Investor Relations & Co