Aixtron Se · XETR:AIXA
Aixtron — Q1 2011 Earnings Presentation
63 slides from Aixtron's earnings presentation, Apr 28, 2011
Slide 1: AIXTRON Investor Presentation Spring 2011 including Q1/2011
AIXTRON Investor Presentation Spring 2011 including Q1/2011 (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: Agenda
Agenda AIXTRON Investor Presentation Introduction Operations Industry & Markets Financials Outlook Summary Contact Appendix AIXTRON Sites P3
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Slide 5: AIXTRON Global Presence
AIXTRON Global Presence Ltd. AB Cambridge, UK Lund, Sweden Introduction Korea Co. Ltd. Seoul, South Korea Inc. SE KK Sunnyvale, USA Aachen, Germany Tokyo, Japan Headquarters Taiwan Co. Ltd., Hsinchu, Taiwan China Ltd., Shanghai, P.R. China Representation P5
Slide 6: 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 7: 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 P7
Slide 8: Compound Semiconductor Systems: IC Platform
Compound Semiconductor Systems: IC 2 Platform 65% of Q1/11 Equipment Orders 54% of Q1/11 Equipment Revenues Repeat and multiple orders Turn-key solutions for Compound fab design Operations Proven industry standard & market leader Planetary Reactor® Configurable, extendable common platform AIX G5 HT,
Slide 9: 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 P9
Slide 10: Equipment Revenues by Application
Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR m Operations P 10
Slide 11: Total Revenues by Region
Total Revenues by Region 2008: 2009: 2010: Q1/2011: €274.4m €302.9m €783.8m €205.4m Operations 17.8 11.4 35.9 12.1 18.5 41.5 31.1 9.7 238.2 250.0 716.9 183.6 Asia Europe USA P 11
Slide 12: High Brightness (HB) LED Market Forecast
High Brightness (HB) LED Market Forecast HB LED summary forecast by application 2010 Industry & Markets 42% CAGR 15% CAGR 2015e Source: Strategies in Light February 2011 P 12
Slide 13: LED Backlighting Unit (BLU) Market Forecast
LED Backlighting Unit (BLU) Market Forecast Strong LCD panel unit growth (TAM) Rapid adoption towards full LED BLU implementation Industry & Markets Emerging markets and new TV Models driving LED utilization rates LED-TV penetration LED-Monitor penetration Based on: AIXTRON; DisplaySearch Q4/2010 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 Developed countries: SSL driven by expanding renovation market Industry & Markets Outdoor: Early adoption streetlight replacement market
Slide 15: LED Outdoor and Commercial market development
LED Outdoor and Commercial market development Outdoor: Fiscal stimulus in public sector Commercial: Imminent market tipping point indicated by shift of focus from lm/W to $/lm Industry & Markets Outdoor LED penetration Commercial / Retail LED penetration Based on: Gartner; Deutsche Bank; Sterne Agee
Slide 16: LED Lighting Momentum Signals
LED Lighting Momentum Signals enforcement GOVERNMENT tax of sanctions standards 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 return
Slide 17: 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 consumer promotions - EcoPoint Investment subsidies in China China‘s NDRC to set LED streetlight standard
Slide 18: Increasing LED Chip Size
Increasing LED Chip Size Strong estimated* area growth: 5 year CAGR of 75% Larger chip sizes lead to epitaxial area increase Industry & Markets Improved visibility for SSL gaining momentum LED Units Material Area (0.1mm²) (0.25mm²) (1mm²) *) Based on compilation of latest opinions by: AIXTRON; Displ
Slide 19: Production Supply Estimates for HB LEDs
Production Supply Estimates for HB LEDs Bear-Bull MOCVD system demand: 2010 - 2015 CAGR of 5-15% Larger chip sizes require further capacity increase Industry & Markets SSL is the strongest driver for material area growth LED Units Material Area Based on compilation of latest opinions by: AIXTRON; St
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Slide 21: Month Business Development
24 - Month Business Development (€ million) Equipment (only) Order Intake Financials * Equipment (only) Order Backlog Total Revenues (incl. equipment, service, spare parts) *) revalued on January 1, 2011 to €302.3m at $1.35/€ P 21 Order Intake and Order Backlog are recorded at the prevailing budget
Slide 22: Consolidated Income Statement
Consolidated Income Statement* (€ million) Q1/11 Q1/10 +/- Q1/11 Q4/10 +/- Revenues 205.4 154.5 33% 205.4 224.7 -9% Cost of sales 101.2 76.6 32% 101.2 107.4 -6% Financials Gross profit 104.2 77.9 34% 104.2 117.3 -11% Gross Margin 51% 50% +1 pp 51% 52% -1 pp Selling expenses 10.6 11.8 -10% 10.6 9.0 1
Slide 23: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/03/11 31/12/10 31/03/10 Property, plant & equipment 82.0 77.9 39.4 Goodwill 58.7 62.2 61.0 Other intangible assets 6.2 7.0 7.5 Financials Others 17.4 20.6 21.1 Non-current assets 164.3 167.7 129.0 Inventories, WIP & Finished Goods 163.3 16
Slide 24: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) Q1/11 Q4/10 Q1/10 Cash Flow from operating activities 18.6 -27.8 71.9 Cash Flow from investing activities 0.3 -52.7 -35.0 Financials Cash Flow from financing activities 2.1 1.2 1.8 Exchange rate changes -2.4 -1.2 0.8 Net change in Cash & Cash Equival
Slide 25: 2011 Guidance Model
2011 Guidance Model 2011 revenue guidance: ca. €800m - €900m 2011 EBIT guidance: ca. 35% EBIT margin (€ million) Outlook Shippable equipment orders Q1/2011 actual total revenue required by Q3/2011 458- Assumed Q2-Q4 spares & non-equipment revenues Total backlog as of 31/03/11 P 25
Slide 26: Market Prospects
Market Prospects Short-Term Continuing capacity expansions for LED backlighting LEDs for further increasing automotive applications Increasing LEDs for exterior, public street & professional lighting Mid-Term Outlook Increased LEDs for consumer & residential general lighting Silicon carbide (SiC) hy
Slide 27: Key Takeaways
Key Takeaways Momentum of LED-Lighting Increasing evident device development and market introductions of LED-lighting applications Active encouragement by government incentives and subsidies Supported by positive volume/performance effect from Summary backlighting Operations Encouraging technology a
Slide 28: Financial Calendar & Contact Data
Financial Calendar & Contact Data May 19, 2011 Annual General Meeting 2011 in Aachen July 28, 2011 H1/2011 Results Conference & Conf. Call October 27, 2011 9M/2011 Results, Conference Call Contact March 2012 FY/2011 Results Conference & Conf. Call For further information please contact: Investor Rel
Slide 29: AIXTRON Investor Presentation
P 29 AIXTRON Investor Presentation File:
Slide 30: 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 31: China: Investment subsidy programs
China: Investment subsidy programs 10 provinces / 25 cities participating through central and local government support Value chain: regional differences in value, timing and applications Northern Region Funding profile: Yangtze River Delta Funding profile: <5 cities / provinces 10 cities / provinces
Slide 32: China: Investment Estimates for HB LED Supply Chain
China: Investment Estimates for HB LED Supply Chain 5 Year target: increase HB LED value chain output by 4x Value Chain: regional difference in value, timing and applications Appendix Source: China SSL Conference 2010; Citi 2011; UBS 2011; Barclays 2011 Deutsche Bank 2011; Liberum 2011; AIXTRON 2011
Slide 33: 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 AIXTRON Group Key Project/ Comments Cooperating Research Research Area GaN LED; Technology transfer with Chinese industry and Appendix Beijing Unive
Slide 34: 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 34
Slide 35: 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 50-75 TV – Edge BLU 150 - 350 TV – Direct BLU 500 - 1000 TV –
Slide 36: LED Cost Structure by Application
LED Cost Structure by Application Appendix Based on: AIXTRON; DisplaySearch Q3/2010; Macquarie Sept. 2010 P 36
Slide 37: Solid State Lighting: Legislation and Subsidies
Solid State Lighting: Legislation and Subsidies Government Legislation: Create energy/cost efficient infrastructure Subsidies: Catalyst to support industry momentum Available Ban Target Country Legislation GDP Rank Subsidies Date Appendix US Yes Yes <2020 1 EU Yes Yes <2012 2 Japan Yes Yes 2012 3 Ch
Slide 38: A-19 Bulb: 60W LED Replacement Target
A-19 Bulb: 60W LED Replacement Target 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 LED vs. LED vs. Store Incan. CFL LED Appendix Man. Incan. (x) CFL (x) Amazon U
Slide 39: 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 LED vs. LED vs. Samsung Stores Incan. CFL LED Incan. (x) CFL (x) Appendix Average US $ 1.7 $ 5.6 $ 37 21.7x 6.6x Average Japan $ 1.6 <$12 <$25 15.4x 2.1
Slide 40: A-19 Bulb: 60W LED Replacement Target
A-19 Bulb: 60W LED Replacement Target LED price/performance structure critical to achieve tipping point Pricing: “target to reach 1/3 of today's price by 2015” - Philips Penetration rate expected to be over 30% by 2014 Total Cost Structure 100% Domestic Penetration Rates Others Appendix Tipping Poin
Slide 41: Increasing LED Lighting Momentum
Increasing LED Lighting Momentum Government: Energy Star qualified products for release increasing Manufacturer: Investment into HB LED Value Chain End-Markets: Utility / Government rebate imminent Energy Star Product Release $45 Pricing 140 Appendix LED replacement Bulbs in Units 120 Utility Govern
Slide 42: LED Streetlights
LED Streetlights New construction: Energy savings through large scale adoption Retrofit: Economic competitiveness – simple payback TAM: >160m unit replacement streetlight market China enhances streetlight project to “50 Cities / 2m Streetlights” Appendix LED-Streetlight penetration (2009-2014) Stree
Slide 43: 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 44: 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 45: Compound Semiconductor System Generations
Compound Semiconductor System Generations Rapid new product adoption by customer base FY 2010: 26% of orders / 13% of revenues = new gen. systems Q4/2010: 55% of orders / 35% of revenues = new gen. systems Q1/2011: 65% of orders / 54% of revenues = new gen. systems Compound Semiconductor (CS) Equipm
Slide 46: Material & Technology Convergence
Material & Technology Convergence Operational flexibility: shorter product cycles and HVM efficiency Platform strategy: reduces development time and project risks Modularity: reduce customer COO through modular system design Outsourcing: reduction in assembly time and supplier integration Appendix P
Slide 47: Compound Semiconductor Systems: Beyond LEDs
Compound Semiconductor Systems: Beyond LEDs Extensive choice of configurations and enhancements Multiple technologies on one platform Power Management CPV triple-junction Convergence Appendix GaN / SiC for GaAs / Ge III-V / Si, CNT RF power device Covering most Compound materials Power device for su
Slide 48: Organic Semiconductor Systems
Organic Semiconductor Systems OVPD®/PVPD enhanced by CCS® technology Full color OLED display and OLED lighting Organic solar cells Organic electronics E-Paper displays Operations R&D Applications Production Applications R&D Gen1 Gen 2-4 Gen5 (100 x 100 mm) P 48
Slide 49: PECVD: Carbon Nanostructures
PECVD: Carbon Nanostructures AIXTRON Nanoinstruments – Carbon Nanotubes Unique Properties Application Examples Very high thermal conductivity Electronics Appendix Very low resistivity Heat Sinks Very high mechanical stability Field Emission Display Graphene sheet Carbon Nanotube Roll-up P 49
Slide 50: Silicon Semiconductor Systems
Silicon Semiconductor Systems Memory and emerging applications to drive ALD equipment industry ALD/AVD® multi generation film development on complex materials for memory & logic Operations Design to transfer from pre-production R&D to high volume manufacturing New product for memory and emerging app
Slide 51: AIXTRON Share Price
AIXTRON Share Price March 31, 2011: Share Price: EUR 30.70 AIXTRON (12 months trailing until 31/03/11) Shares out: 101,179,866 Market Cap: EUR 3.1bn EUR 34 AIXTRON TecDAX® indexed EUR 32 Appendix EUR 30 EUR 28 EUR 26 EUR 24 EUR 22 EUR 20 EUR 18 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar P 5
Slide 52: Compound Equipment Order Intake per Quarter
Compound Equipment Order Intake per Quarter million EUR 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 P 52 Source: Deutsche Bank Equity Research 2011, AIXTRON SE
Slide 53: Order Backlog Conversion into Revenue
Order Backlog Conversion into Revenue* AIXTRON1 vs. Veeco2 90% 80% 70% Appendix 60% 50% 40% 30% 20% 10% 0% Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 AIXTRON Veeco * Calculated as revenue divided by prior quarter backlog 1) Compound Semiconductor Segment only 2) LED/Solar Segment only Sou
Slide 54: Operational Flexibility and Leverage
Operational Flexibility and Leverage Continued progress in profitability and margins Highly cost-effective organization Solid financial position for continuing operations Appendix Flexible Cost Structure Improving Profit Margins Increasing Returns 60% 45% Net Income 53% 200 192.5 40% 25% 24% (EUR m)
Slide 55: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2010 2009 +/- Revenues 783.8 302.9 159% Cost of sales 372.0 168.1 121% Appendix Gross profit 411.8 134.7 206% Gross Margin 53% 44% +9 pp Selling expenses 48.9 25.5 92% General & admin expenses 30.1 21.3 41% R&D 46.1 32.9 40% Net other op. income/(expenses)
Slide 56: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/10 31/12/09 Property, plant & equipment 77.9 37.8 Goodwill 62.2 58.3 Other intangible assets 7.0 7.8 Appendix Others 20.6 14.8 Non-current assets 167.7 118.7 Inventories, WIP & Finished Goods 167.2 89.6 Trade receivables 88.4 49.3 Other
Slide 57: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2010 2009 Cash Flow from operating activities 147.7 78.9 Cash Flow from investing activities -165.4 -90.1 Cash Flow from financing activities -11.6 153.6 Appendix Exchange rate changes 0.2 1.3 Net change in Cash & Cash Equivalents -29.1 143.7 Cash &
Slide 58: 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 Planned investment: in excess of EUR 40m P 58
Slide 59: Building Phase I
Building Phase I (completed in Q3/2010) R&D and engineering offices AIXTRON Sites P 59
Slide 60: Building Phase II
Building Phase II (to be completed in Q1/2012) Labs & prototype / non standard production AIXTRON Sites P 60
Slide 61: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON SE, Aachen, Germany P 61
Slide 62: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON Ltd., Cambridge, UK P 62
Slide 63: AIXTRON Investor Presentation
P 63 AIXTRON Investor Presentation