Aixtron Se · XETR:AIXA
Aixtron — 9M 2012 Earnings Presentation
50 slides from Aixtron's earnings presentation, November 2012
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation Excerpt of the IR Master Presentation including 9M/2012 IR Master Presentation available on www.aixtron.com/investors (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041) © AIXTRON SE, November 2012
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 (MOCVD, HVPE, OVPD®, PVPDTM, PECVD) (CVD, ALD) Technology LEDs/OLEDs for displays LEDs/OLEDs for lighting Optoelectronics for Metal and oxide film
Slide 5: 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 CRIUS® II-XL
Slide 6: Annual Equipment Revenues by Application
Annual Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR million Operations P6
Slide 7: 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 150 notebook CVD orders backlighting driven by memory demand driven by driven by 100 telecom/datacom mobile phone and mobile phone
Slide 8: LED Investment cycle
LED Investment cycle Global demand: driven by new applications Supply: different regional investment characteristics Industry & Markets Lighting BLUs Mobile Strong Market Aggressive Demand > Capital Supply Spending Supply § Little Capacity Demand < 2010-11 2009 Demand Added Supply China Korea Price
Slide 9: 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 14% Industry & Markets 9,000 90 , 00 8,000 80 , 00 11% Market Size (USD million) 7,000 70 , 00 52% 13% CAGR 9% 6,000 60 , 00 5,000 50 , 00 14% 4,000 40 , 00 3,000 30 , 00 2016e 2,000 20 , 00 1,000 10 ,
Slide 10: LED Lighting Momentum Signals
LED Lighting Momentum Signals GOVERNMENT Consumer Governmental Subsidies Regulations Industry & Markets technology definition subsidies of (top down) standards incan- public area descent installation bans produc- tivity LED ecological awareness (COO) product quality Lighting energy savings (lm/W) re
Slide 11: Tangibility of LED Lighting Momentum
Tangibility of LED Lighting Momentum Ban targets set by top 10 GDP countries Energy Star in place (US Standard) with now 1,400 qualified products Government EU / US energy saving programs (Tax Credit) Japanese energy policy Industry & Markets China: LED policy to be rolled out; Guangdong province LE
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 continues to grow
LED lighting market continues to grow Declining Prices drive growth LED lighting 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 per country: 2011 Source: Strategies Unli
Slide 14: A-19 Bulb: 60W LED Replacement – Global Pricing
A-19 Bulb: 60W* LED Replacement – Global Pricing 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 being offered QoQ LED vs. LED vs. Stores Incan. CFL LED Low High +/- Incan. (x) CFL (x)
Slide 15: LED Lighting: Regional Highlights
LED Lighting: Regional Highlights Industry & Markets GE introduced 60W equivalent LED light bulbs in Asia. The retail price in Taiwan is NT$599 (USD 20) ALDI, the largest supermarket discounter in Germany, promoted 60W equivalent LED light bulbs at EUR 9.99 (USD 13) in September. Sold out within few
Slide 16: 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)- H B L E D M a rke t (sq a re a ) - 200 125 100 150 75
Slide 17: Production Supply Estimates for HB LEDs
Production Supply Estimates for HB LEDs Bear-Bull MOCVD system demand: 2011 - 2017 CAGR of 3% 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 18: Business Development
24 - Month Business Development (€ million) Equipment (only) Order Intake @ $1.50 @ $1.35 @ $1.40 Financials Equipment (only) * Order Backlog @ $1.50 @ $1.35 @ $1.40 *) revalued on Jan.1, 2012 to €136.8m at $1.40/€ Total Revenues (incl. equipment, service, spare parts) @ $1.33 @ $1.40 @ $1.28 07.11.
Slide 19: Consolidated Income Statement
Consolidated Income Statement* (€ million) 9M/12 9M/11 +/- Q3/12 Q2/12 +/- Revenues 150.3 470.8 -68% 62.2 46.1 35% Cost of sales 167.6 251.2 -33% 104.5 31.4 233% Gross profit -17.3 219.7 -108% -42.3 14.7 -387% Financials Gross Margin -11% 47% -58 pp -68% 32% -100 pp Selling expenses 24.9 25.0 0% 11.
Slide 20: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 30/09/12 30/06/12 31/12/11 Property, plant & equipment 97.6 99.8 96.2 Goodwill 64.6 64.4 64.1 Other intangible assets 4.8 5.3 6.2 Financials Others 37.4 38.9 29.4 Non-current assets 204.5 208.4 195.8 Inventories, WIP & Finished Goods 157.9 21
Slide 21: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 9M/2012 9M/2011 Q3/2012 Q2/2012 Cash Flow from operating activities -52.2 12.4 -23.8 -28.3 Cash Flow from investing activities 10.3 53.1 2.8 -5.7 Financials Cash Flow from financing activities -24.5 -57.5 0.0 -25.1 Exchange rate changes 2.0 0.7 0.3 2
Slide 22: 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 Increased emergence of silicon carbide (SiC) hybrid automotive & photovoltaic applications Out
Slide 23: AIXTRON Investor Presentation
P 23 AIXTRON Investor Presentation
Slide 24: 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 25: China: The Progress of LED industry policies
China: The Progress of LED industry policies Light source production in China Government actions to facilitate LED in 2011: 68% of global demand lighting transition Public End-market subsidy: e.g. street lighting projects Consumer Appendix End-market subsidy: (million units) LED lighting bidding pla
Slide 26: 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 26
Slide 27: 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 Planetary 2
Slide 28: Increasing availability of LED Lighting Products
Increasing availability of LED Lighting Products Government: >1,400 Energy Star qualified LED products End-Markets: Utility / Government rebate imminent Energy Star Product Release Average Luminous Efficacy 1500 65 Appendix LED replacement Bulbs in Units New Release- avg. luminous efficacy 60 1000 5
Slide 29: LED: Transformation of the Energy Mix
LED: Transformation of the Energy Mix SSL Making Nuclear Power Plants Redundant Numbers of …if LED 2011 Nuclear policy redundant penetration rate reactor units plants… in 2020 = Current debating 48 58% phase-out Appendix Phase-out by 2022 9 57% No major change 104 56% announced Increase in nuclear 1
Slide 30: 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. Inca QoQ LED vs. Appendix Store LED Man. CFL LED Incan. n. +/- CFL
Slide 31: 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 QoQ LED vs. LED vs. Appendix Store LED Man. Hal. CFL LED +/- Hal. (x) CFL (x) Feit Amazon $ 6.6 $10.5 $ 35 5% 5.4x 3.4x GEEcoSmart Electric H
Slide 32: Par Bulb: LED Replacement – Commercial Lighting
Par 38 Bulb: LED Replacement – Commercial Lighting Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Appendix SYLVANIA- 75 FEIT 18 Watt EcoSmart PAR38 Product Watt - PAR38 PAR38 Light Bulb LED light bulb Energy used (W) 75 18 18 Equivalent to (W) 75 75 75 Lifetime (hours) 2,50
Slide 33: LED Cost Structure by Application
LED Cost Structure by Application LED Chip representing ca. 20% of total LED Light Bulb Cost Mature Emerging 100% Other costs Appendix 80% Profit/Yield 60% 40% LED Chip cost 50% 20% 40% 0% 15.6" 18.5" Monitor 42" TV LED Outdoor Area Interior LED Light LED Notebook LED BLU BLU Lamp Downlight Bulb Com
Slide 34: Beyond LEDs – Material & Technology Convergence
Beyond LEDs – Future Developments: Material & Technology Convergence Convergence III-V & CNT / Si Organic Carbon Compound Silicon Material Material Semiconductors Semiconductors Graphene Power Management OVPD®/PVPD™ Silicon systems Appendix CNTs and CNWs GaN / SiC for • OLEDs for display: Graphene,
Slide 35: Beyond LED Developments: 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 Applicati
Slide 36: Beyond LED Developments: 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 37: Beyond LED Developments: 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-dope
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 Superjunction
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 Denko K.K
Slide 40: Beyond LED Developments: Silicon Semiconductor Systems
Beyond LED Developments: 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 Appendix Product pre-qualified for memory
Slide 41: Silicon Semiconductor System Market Forecast
Beyond LED Developments: Silicon Semiconductor System Market Forecast Strong estimated Deposition Equipment spending: 5 year CAGR of 43% Memory and emerging applications to drive ALD equipment industry Multi generation film development for memory & logic Appendix 100% 4000 Sub 28 nm Deposition Equip
Slide 42: AIXTRON: Focus Markets
AIXTRON: Focus Markets • 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 42
Slide 43: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2011 2010 2009 Revenues 611.0 783.8 302.9 Cost of sales 379.5 372.0 168.1 Appendix Gross profit 231.4 411.8 134.7 Gross Margin 38% 53% 44% Selling expenses 32.1 48.9 25.5 General & admin expenses 34.0 30.1 21.3 R&D 50.4 46.1 32.9 Net other op. (income)/expe
Slide 44: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/11 31/12/10 31/12/09 Property, plant & equipment 96.2 77.9 37.8 Goodwill 64.1 62.2 58.3 Other intangible assets 6.2 7.0 7.8 Appendix Others 29.4 20.6 14.8 Non-current assets 195.8 167.7 118.7 Inventories, WIP & Finished Goods 184.6 167.
Slide 45: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2011 2010 2009 Cash Flow from operating activities -6.3 147.7 78.9 Cash Flow from investing activities 50.5 -165.4 -90.1 Cash Flow from financing activities -57.5 -11.6 153.6 Appendix Exchange rate changes 4.2 0.2 1.3 Net change in Cash & Cash Equiva
Slide 46: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON SE, Aachen, Germany P 46
Slide 47: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON Ltd., Cambridge, UK P 47
Slide 48: R&D: Strong Investments for the future
R&D: Strong Investments for the future R&D - a key strategic asset R&D 2009:EUR 2010: EUR 2011: EUR 2012e: EUR spending 32.9m 46.1m 50.4m 60~70m Appendix Aachen, Sunnyvale, Germany Work as a networked USA technology matrix Collaboration with Develop closely academic with customers, research and glob
Slide 49: R&D Center: Accelerating technology leadership
R&D Center: Accelerating technology leadership 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 49
Slide 50: Financial Calendar & Contact Data
Financial Calendar & Contact Data March 2013 FY/2012 Results, Conference Call April 2013 Q1/2013 Results, Conference Call Financial Calendar May 23, 2013 Annual General Meeting in Aachen July 2013 H1/2013 Results, Conference Call For further information please contact: Investor Relations & Corporate