Aixtron Se · XETR:AIXA
Aixtron — H1 2012 Earnings Presentation
59 slides from Aixtron's earnings presentation, Jul 26, 2012
Slide 1: AIXTRON Investor Presentation: IR Master Presentation H1/2012
AIXTRON Investor Presentation IR Master Presentation – H1/2012 (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 Mass production orders Turn-key solutions for Compound fab design Proven industry standard & market leader Configurable, extendable common platform Operations Planetary Reactor® AIX G5+, 5x8” Close Coupled Showerhead® Integrated Concept (IC 2) System CRI
Slide 7: Global MOCVD Market Shares
Global MOCVD Market Shares $164m $238m $340m $185m $133m $231m $155m $202m $289m $486m $533m $1,713m $1,543m 100% 3% 90% 80% Operations 70% 47% 60% 50% 40% 30% 50% 20% 10% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 AIXTRON SE Veeco Instruments, Inc. Taiyo Nippon Sanso Corp.
Slide 8: Annual Equipment Revenues by Application
Annual Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR m Operations P8
Slide 9: Equipment Order Intake per Quarter
Equipment Order Intake per Quarter ALD orders (EUR million) 250 driven by sub-30nm nodes driven by strategic China investments 200 driven by LED TV Operations 150 CVD orders driven by driven by notebook driven by memory demand backlighting telecom/datacom and 100 mobile phone driven by mobile phone
Slide 10: Total Revenues by Region
Total Revenues by Region 2009: 2010: 2011: H1/2012: €302.9m €783.8m €611.0m €88.1m 5% Operations 4% 6% 4% 35.9 4% 16% 14% 36.9 11.4 31.1 26.3 14.6 41.5 7% 6.1 250.0 716.9 547.8 67.5 82% 91% 90% 77% 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 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 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 public area incan- descent installation bans produc- tivity LED ecological awareness (COO) product quality Lighting energy savings (lm/W) 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) with Government now 1,000 qualified products Industry & Markets EU / US energy saving programs (Tax Credit) Japanese energy policy China: LED policy to be rolled out; Guangdong province LE
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
Slide 17: LED lighting market continues to grow
LED lighting market continues to grow Declining Prices drive growth h Y growt LED lighting Industry & Markets 69% Yo 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
Slide 18: 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 Demand < § 2010-11 2009 Added Supply China Korea Price
Slide 19: 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 1
Slide 20: 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 21: Month Business Development
24 - Month Business Development (€ million) 200.4 204.0 210.3 222.2 29.3 31.5 30.0 Equipment (only) 51.5 Order Intake @ $1.50 @ $1.35 @ $1.40 Adjusted as of Financials Sep. 15, 2011 100.0 321.1 278.7 274.8 273.5 244.8 Equipment (only) 140.1* 136.2 137.7 Order Backlog @ $1.50 @ $1.35 @ $1.40 *) reval
Slide 22: Consolidated Income Statement
Consolidated Income Statement* (€ million) H1/12 H1/11 +/- Q2/12 Q1/12 +/- Revenues 88.1 381.0 -77% 46.1 42.0 10% Cost of sales 63.1 200.0 -68% 31.4 31.7 -1% Financials Gross profit 25.0 181.0 -86% 14.7 10.3 43% Gross Margin 28% 48% -20 pp 32% 25% +7 pp Selling expenses 13.3 17.8 -25% 6.7 6.6 2% Gen
Slide 23: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 30/06/12 31/12/11 30/06/11 Property, plant & equipment 99.8 96.2 83.9 Goodwill 64.4 64.1 57.5 Other intangible assets 5.3 6.2 5.7 Financials Others 38.9 29.4 20.4 Non-current assets 208.4 195.8 167.5 Inventories, WIP & Finished Goods 215.8 18
Slide 24: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) H1/2012 H1/2011 Q2/2012 Q1/2012 Cash Flow from operating activities -28.4 32.1 -28.3 -0.1 Cash Flow from investing activities 7.5 49.6 -5.7 13.2 Financials Cash Flow from financing activities -24.6 -57.6 -25.1 0.5 Exchange rate changes 1.7 -3.9 2.3 -
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 Increased emergence of silicon carbide (SiC) hybrid automotive & photovoltaic applications Out
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 shift from fixed asset investments over to end-market subsidies. Northern Region Funding profile: Yangtze River Delta Funding profile: <5 cities / provinces 10 citie
Slide 29: China: The Progress of LED industry policies
China: The Progress of LED industry policies 7000 Light source production in China Government actions to facilitate LED in 2011: 68% of global demand lighting transition 6000 Public End-market subsidy: e.g. street lighting projects ROW 5000 Appendix Consumer End-market subsidy: (million units) LED l
Slide 30: 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
Slide 31: 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 and research projects AIXTRON Group Key Project/ Comments Cooperating Research R
Slide 32: LED industry challenges
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 consistency T
Slide 33: White HB LED: Key IP cross license agreements
White HB LED: Key IP cross license agreements Showa Denko Appendix Formosa Epitaxy (Taiwan) Sharp Source: LEDinside 2007; LEDs Magazine; AIXTRON P 33
Slide 34: 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 34
Slide 35: 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 Marke
Slide 36: 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 Average Luminous Efficacy 1000 65 Appendix 900 LED replacement Bulbs in Units New Release- avg. luminous ef
Slide 37: 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 38: 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 $ 5.9 $8.8 $ 33 5.7x 3.8x Electric EcoSmart GE Home Depot E
Slide 39: 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 40: LED Cost Structure by Application
LED Cost Structure by Application LED Chip representing ca. 20% of LED Light Bulb Cost Mature Emerging 100% Other costs Appendix 80% Profit/Yield 60% 40% 50% LED Chip 40% cost 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
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: 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 43
Slide 44: 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 45: 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 2012: EUR spending 32.9m 46.1m 50.4m 60~70m Aachen, Sunnyvale, Germany Work as a networked USA technology matrix Collaboration with Develop closely academic with customers, research and global sales i
Slide 46: Beyond LEDs – Material & Technology Convergence
Beyond LEDs – Future Developments: Material & Technology Convergence Convergence III-V / Si Organic Carbon Compound Silicon Material Material Semiconductors Semiconductors Appendix Graphene CPV triple-junction Power Management OVPD®/PVPD™ Silicon systems CNTs and CNWs GaAs / Ge GaN / SiC for • e-pap
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 Year Company Region Status Materials Notes 2005 Showa Denko K.K Asia Volume SiC /
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 Appendix (HVM) and offers low cost of ownership Product pre-qualified for memory and emerging application
Slide 51: Silicon Semiconductor System Market Forecast
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 Equipment Shipments in Bn USD
Slide 52: AIXTRON Share Price 2012
AIXTRON Share Price 2012 EUR June 30, 2012 Share Price: EUR 11.26 Shares out: 101,900,474 Market Cap: EUR 1.1bn Appendix P 52
Slide 53: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2011 2010 +/- Revenues 611.0 783.8 -22% Cost of sales 379.5 372.0 2% Appendix Gross profit 231.4 411.8 -44% Gross Margin 38% 53% -15 pp Selling expenses 32.1 48.9 -34% General & admin expenses 34.0 30.1 13% R&D 50.4 46.1 9% Net other op. (income)/expenses 2
Slide 54: 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 Appendix Others 29.4 20.6 Non-current assets 195.8 167.7 Inventories, WIP & Finished Goods 184.6 167.2 Trade receivables 78.6 88.4 Othe
Slide 55: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2011 2010 Cash Flow from operating activities -6.3 147.7 Cash Flow from investing activities 50.5 -165.4 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 Cash & Cash Equiva
Slide 56: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON SE, Aachen, Germany P 56
Slide 57: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON Ltd., Cambridge, UK P 57
Slide 58: 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 58
Slide 59: Financial Calendar & Contact Data
Financial Calendar & Contact Data October 2012 9M/2012 Results, Conference Call March 2013 FY/2012 Results, Conference Call Financial Calendar April 2013 1Q/2013 Results, Conference Call May 23, 2013 Annual General Meeting in Aachen For further information please contact: Investor Relations & Corpor