Aixtron Se · XETR:AIXA
Aixtron — Investor Presentation (April 2010)
51 slides from Aixtron's investor presentation, April 2010
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation Spring/Summer 2010 including Q1/2010 (FSE: AIXA, ISIN DE000A0WMPJ6, ISIN DE000A1DAHX7; NASDAQ: AIXG, ISIN: US0096061041)
Slide 2: Forward-Looking Statements
Forward-Looking Statements AIXTRON Investor Presentation This presentation may contain forward-looking statements about the business, financial condition, results of operations and earnings outlook of AIXTRON within the meaning of the “safe harbor” provisions of the United States Private Securities
Slide 3: Agenda
Agenda AIXTRON Investor Presentation Introduction Operations Industry & Markets Financials Outlook Summary Contact Appendix Production Sites P3
Slide 4: Intentionally left blank
AIXTRON Investor Presentation This Page has been intentionally left blank P4
Slide 5: AIXTRON Global Presence
AIXTRON Global Presence Ltd. AB Cambridge, UK Lund, Sweden Introduction cshs KK Seoul, South Korea Tokyo, Japan Inc. AG Sunnyvale, USA Aachen, Germany Headquarters Taiwan Co., Ltd. AG Shanghai, P.R. China Representation P5
Slide 6: AIXTRON MOCVD Reactors
AIXTRON MOCVD Reactors Injector Wafers Introduction Glove Box Reactor Chamber ® Planetary Reactor P6
Slide 7: 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 8: Value Chain Positioning
Value Chain Positioning Production Electronic Chip & End Equipment Modules & Device Component User Manu- Packaging Manu- Makers Markets Introduction facturers facturers Consumer commu- nication Industrial Display Lighting Medical Automotive P8
Slide 9: Systems Technologies and Products
Systems Technologies and Products Compound Compound Compound OVPD®, PVPD Compound Operations Nanoinstruments Black Magic II - MOCVD Planetary Reactor® PECVD MOCVD Close Coupled Showerhead® Hot Wall SiC CVD Silicon Silicon Silicon Lynx-iXP CVD Tricent® AVD® Tricent® ALD P9
Slide 10: Compound Semiconductor Systems
Compound Semiconductor Systems Turn-key solutions for Compound fab design Proven industry standard & market leader High quality deposition & throughput (very high growth rates, superior uniformity) Operations Flexible wafer configuration from 2”-300mm Planetary Reactor® Configurable, extendable comm
Slide 11: Global MOCVD Market Shares
Global MOCVD Market Shares $113m $164m $238m $340m $185m $133m $231m $155m $202m $289m $486m $533m 100% 90% 80% Operations 70% 60% 50% 40% 30% 20% 10% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 AIXTRON AG Veeco Instruments, Inc. Taiyo Nippon Sanso Corp. Others (EMC,JPE,POWDEC,EMF
Slide 12: 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 13: Organic Semiconductor Systems
Organic Semiconductor Systems OVPD®/PVPD enhanced by CCS® technology Full colour OLED display and OLED lighting Organic solar cells Organic electronics Operations E-Paper displays R&D Applications Production Applications R&D Gen1 Gen 2-4 Gen5 (100 x 100 mm) © AIXTRON proprietary P 13
Slide 14: Business Development and Convergence
Business Development and Convergence Q1/2010 Compound Semiconductors Silicon Semiconductors (including Organics) €141.4m equipment1) €1.6m equipment1) Operations Revenues revenues (+237% yoy) revenues (+811% yoy) 92% of total2) revenues 1% of total2) revenues Equipment €164.5m (+438% yoy) €3.9m (+51
Slide 15: Equipment Revenues by Application
Equipment Revenues by Application 300 AIXTRON Equipment Revenues (excl. spares) in EUR m 250 200 Operations 150 100 50 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Q1/10 LED Telecom/Datacom Consumer-/Optoelectronics Solar Display & others Silicon P 15
Slide 16: Total Revenues by Region
Total Revenues by Region 2007: 2008: 2009: Q1/2010: €214.8m €274.4m €302.9m €154.5m 10% 6% 4% 4% Operations 9% 21.9 7% 17.8 14% 11.4 2% 3.2 6.9 18.5 41.5 18.8 174.1 250.0 238.1 144.4 81% 87% 82% 94% USA Europe Asia P 16
Slide 17: LED Product Applications
LED Product Applications Industry & Markets Motorola Phone ▪ Audi R8 LED Headlight ▪ Dell Laptop Samsung LED backlit TV ▪ LED Street Lighting ▪ LED Ceiling Light P 17
Slide 18: High Brightness LED Market Forecast
High Brightness LED Market Forecast HB LED summary forecast by application 2009 17% 17% Industry & Markets 20,000 Market Size (USD million) 3 1% 12% 15,000 G R CA 12% 41% 1% 10,000 2014e 5,000 8% 0 21% 2009 2010e 2011e 2012e 2013e 2014e 53% Signs / Displays Mobile Appliances 6% Signals Automotive Il
Slide 19: Large Display Panel Market Estimates
Large Display Panel Market Estimates Strong Display Panel unit growth (TAM) Common LED BLU supply chain Rapid adoption towards full LED BLU implementation More chips for more applications to drive sustainable LED growth Industry & Markets 2009 2014e 900 100% 800 4% 5% Million Units (Displays) 700 80
Slide 20: LCD TV BLU Market Forecast
LCD TV BLU Market Forecast Strong LCD TV unit growth (TAM) Rapid adoption towards full LED BLU implementation Industry & Markets LED-TV penetration (2009-2014) LED-TV product line-up by size in inches (2009/2010) 100% 2009 16 19 22 23 26 32 40 46 47 55 72 300 Samsung 2010 16 19 22 23 26 32 40 46 47
Slide 21: Solid State Lighting Market Estimates
Solid State 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 Target: 50% worldwide LED penetration by 2014 E
Slide 22: Increasing Chips size driving wafer area growth
Increasing Chips size driving wafer area growth Strong estimated* square area growth: 5 year CAGR of 55% Larger chip sizes lead to epitaxial area increase Industry & Markets Improved visibility for SSL gaining momentum 250 Units Area 125 HB LED Market (bn units) HB LED Market (sq area) 200 100 150 7
Slide 23: Production Supply Estimates for HB LEDs
Production Supply Estimates for HB LEDs Bear-Bull MOCVD system demand: 5 year CAGR of 30-40% Larger chip sizes require further capacity increase Industry & Markets SSL is the strongest driver for material area growth 70 LED Units 1600 35 Material Area 1600 60 30 Incremental HB LEDs Incremental HB LE
Slide 24: Business Development
24 - Month Business Development (€ million) Equipment (only) Order Intake 72.5 52.2 40.6 31.2 57.9 117.6 163.3 168.5 Financials Equipment (only) 165.1 158.1 105.0 100.7 109.4 152.4 203.8 * 229.9 Order Backlog Total Revenues (incl. equipment, 65.6 63.9 82.3 46.2 56.7 82.0 117.9 154.5 service, spare p
Slide 25: Consolidated Income Statement
Consolidated Income Statement (€ million) Q1/10 Q1/09 +/- Q1/10 Q4/09 +/- Revenues 154.5 46.2 234% 154.5 117.9 31% Cost of sales 76.6 25.2 204% 76.6 62.4 23% Financials Gross profit 77.9 21.0 271% 77.9 55.5 40% Gross Margin 50% 45% +5 pp 50% 47% +3 pp Selling expenses 11.8 4.6 157% 11.8 9.1 30% Gene
Slide 26: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (€ million) 31/03/10 31/12/09 31/03/09 Property, plant & equipment 39.4 37.8 34.0 Goodwill 61.0 58.3 61.1 Other intangible assets 7.5 7.8 9.7 Financials Others 21.1 14.8 10.5 Non-current assets 129.0 118.7 115.4 Inventories, WIP & Finished Goods 102.5 89.
Slide 27: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (€ million) Q1/2010 Q4/2009 Q1/2009 Cash Flow from operating activities 71.9 34.4 13.3 Cash Flow from investing activities -35.0 -58.3 -5.0 Financials Cash Flow from financing activities 2.5 160.0 0.7 (incl. exchange rate changes) Net change in Cash & Cash Equiva
Slide 28: 2010 Guidance Model
2010 Guidance Model 2010 revenue guidance: €650m - €700m 2010 EBIT guidance: circa 30% EBIT margin (€ million) Outlook Total backlog as of 31/03/10 Q1/2010 actual total revenue 155 230 25 Assumed Q2-Q4 spares 240- ‘Shippable’ equipment & non-equipment revenues 290 orders required by Q3/2010 P 28
Slide 29: Financial Model
Financial Model Increasing operating leverage Flexible business model of outsourced production Gross profit driven by FX, product mix and volume Decreasing relative operating expenses Revenue Model (EUR million) Revenue Model (% Revenue) Outlook (@ budget rate of USD 1.50 per EUR) (@ budget rate of
Slide 30: 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) h
Slide 31: Key Takeaways
Key Takeaways Healthy Market Environment Accelerated implementation of LED backlighting technology Increasing momentum for lighting applications Rising interest for more productive complex deposition tools Outlook Flexibility, Profitability and Sustainability Solid financial situation, high liquidit
Slide 32: Financial Calendar & Contact Data
Financial Calendar & Contact Data May 18, 2010 Annual General Meeting, Eurogress Aachen July 29, 2010 First Half 2010 Results, Conference in Frankfurt Oct. 28, 2010 Q3/2010 Results, Conference Call Outlook March 2011 FY2010 Results, Conference in Frankfurt For further information please contact: Inv
Slide 33: Always One Step Ahead
ALWAYS ONE STEP AHEAD File:
Slide 34: 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 35: OVPD: The SM OLED Production Concept
OVPD®: The SM OLED Production Concept Highly efficient deposition: 2-dimensional scaling of process chamber Gas phase controlled: superior film composition control Process compatibility between generations Appendix Substrate vs. Organic Sources OVPD Vacuum Deposition © AIXTRON proprietary P 35
Slide 36: PVPD: Large Area Deposition Technology
PVPD: Large Area Deposition Technology Development of Gen 3.5 Tool for Plastic Logic – Plastic Electronics potential flexible display structure NEW PICS Appendix P 36
Slide 37: Market Estimates: eReader Application
Market Estimates: eReader Application Analysts: market growth allows diversified value chain to compete Technology: reflective and low power consumption (bi-stable) Display development focus: color, touch screen, flexible Current limitation: viable production scaling Appendix 40 TAM eReaders eReader
Slide 38: 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 38
Slide 39: ALD/AVD: Advanced Technology Requirements
ALD/AVD®: Advanced Technology Requirements ALD technology enables feature size shrinking through: Thickness and composition control Conformal step coverage Superior film quality Word Line DRAM Appendix Metal Control Gate NAND 1000 CVD Atomic Level Solutions Layer thickness [Å] 100 AVD® Metal Electro
Slide 40: Target ALD Films for Semiconductor Applications
Target ALD Films for Semiconductor Applications Memory Applications Logic Applications DRAM / eDRAM Capacitors Appendix PCRAM Metal Gate High-k Gate Integrated Flash Floating Gate Capacitors Interpoly & Tunnel Oxide Shallow Trench Isolation eDRAM Capacitors P 40
Slide 41: ALD Equipment Market for Semiconductors
ALD Equipment Market for Semiconductors Market research opinion positive on: Market size development (TAM) Comparative positioning of Single Wafer vs. Batch technology Appendix 350 ALD Equipment Revenue (in USD million) 300 250 200 150 100 50 0 2009e 2010e 2011e 2012e 2013e Batch ALD SW / Minibatch
Slide 42: AIXTRON Share Price
AIXTRON Share Price AIXTRON (12 months trailing until 23/04/10) EUR 30 AIXTRON EUR 28 EUR 2.5bn Market Cap TecDAX® indexed EUR 26 > EUR 24.79 EUR 2bn Market Cap EUR 24 Appendix > EUR 21.90 EUR 22 EUR 20 EUR 1.5bn EUR 18 Market Cap EUR 16 > EUR 16.42 EUR 1bn EUR 14 Market Cap EUR 12 > EUR 10.95 EUR 1
Slide 43: Compound Equipment Order Intake per Quarter
Compound Equipment Order Intake per Quarter 180 million EUR 160 140 driven by LED TV Appendix 120 driven by driven by notebook 100 telecom/datacom backlighting and mobile phone driven by mobile 80 phone penetration 60 40 20 0 Q1Q2 Q3Q4Q1 Q2Q3 Q4Q1 Q2Q3Q4 Q1Q2 Q3Q4 Q1Q2Q3 Q4Q1 Q2Q3 Q4Q1Q2 Q3Q4 Q1Q2 Q
Slide 44: Order Backlog to Revenue Conversion
Order Backlog to Revenue Conversion* AIXTRON1 vs. Veeco2 80% 70% 60% 50% Appendix 40% 30% 20% 10% 0% Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 AIXTRON Veeco * Calculated as revenue divided by prior quarter backlog 1 Compound Semiconductor Segment only 2 LED/Solar Segment only Source: Deutsche Bank Equity Resear
Slide 45: Consolidated Income Statement (FY)
Consolidated Income Statement (FY) (€ million) 2009 2008 +/- Revenues 302.9 274.4 10% Cost of sales 168.1 161.5 4% Financials Gross profit 134.7 112.9 19% Gross Margin 44% 41% +3 pp Selling expenses 25.5 27.8 -8% General & admin expenses 21.3 18.0 18% R&D 32.9 28.3 16% Net other op. (income)/expense
Slide 46: Consolidated Statement of Financial Position (FY)
Consolidated Statement of Financial Position (FY) (€ million) 31/12/09 31/12/08 Property, plant & equipment 37.8 39.3 Goodwill 58.3 58.7 Other intangible assets 7.8 10.3 Financials Others 14.8 9.1 Non-current assets 118.7 117.4 Inventories, WIP & Finished Goods 89.6 77.1 Trade receivables 49.3 38.8
Slide 47: Consolidated Statement of Cash Flows (FY)
Consolidated Statement of Cash Flows (FY) (€ million) 2009 2008 Cash Flow from operating activities 78.9 15.9 Cash Flow from investing activities -90.1 -11.4 Financials Cash Flow from financing activities 154.9 -8.9 (incl. exchange rate changes) Net change in Cash & Cash Equivalents 143.7 -4.5 Cash
Slide 48: AIXTRON Group Worldwide Production: Aachen
AIXTRON Group Worldwide Production Production Sites AIXTRON AG, Aachen, Germany P 48
Slide 49: AIXTRON Group Worldwide Production: Cambridge
AIXTRON Group Worldwide Production Production Sites AIXTRON Ltd., Cambridge, UK P 49
Slide 50: AIXTRON Group Worldwide Production: Sunnyvale
AIXTRON Group Worldwide Production Production Sites AIXTRON Inc., Sunnyvale/USA P 50
Slide 51: Always Ahead
ALWAYS 9! AHEAD