Aixtron Se · XETR:AIXA
Aixtron — Investor Presentation (2011)
58 slides from Aixtron's investor presentation, 2011
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation Winter/Spring 2011 including FY/2010 (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 KK Korea Co. Ltd. Tokyo, Japan Inc. SE Sunnyvale, USA Aachen, Germany Headquarters Taiwan Co., Ltd. AG 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 Electronic Chip & End Equipment Modules & Device Component User Manu- Packaging Manu- Makers Markets Introduction facturers facturers Consumer commu- nication Industrial Display Lighting Medical Automotive P7
Slide 8: Compound Semiconductor Systems: IC Platform
Compound Semiconductor Systems: IC 2 Platform 55% of Q4/10 Equipment Orders 35% of Q4/10 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 $1725m 100% 90% 80% Operations 70% 60% 50% 40% 30% 20% 10% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e AIXTRON SE Veeco Instruments, Inc. Taiyo Nippon Sanso Corp. Others (EMC,J
Slide 10: Equipment Revenues by Application
Equipment Revenues by Application 800 AIXTRON Equipment Revenues (excl. spares) in EUR m 700 600 Operations 500 400 300 200 100 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 LED Telecom/Datacom Consumer-/Optoelectronics Solar Display & others Silicon P 10
Slide 11: Total Revenues by Region
Total Revenues by Region 2007: 2008: 2009: 2010: €214.8m €274.4m €302.9m €783.8m 10% 6% 4% 5% Operations 4% 35.8 9% 21.9 7% 17.8 14% 11.4 31.1 18.5 41.5 18.8 174.1 250.0 238.1 716.9 81% 87% 82% 91% 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 8% 6% Industry & Markets 20,000 8% 39% Market Size (USD million) 0% 15,000 39% 10,000 2015e 5,000 6% 0 25% 43% 2010 2011e 2012e 2013e 2014e 2015e Signs / Displays Mobile Appliances 7% Signals Automotive Illumination
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 Continued incremental LED BLU growth LED-TV penetration LED-Monitor penetration 100% 300 100% 350 LCD Monitor Market (million units) LCD TV Market (mil
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 Industry & Markets Developed countries: SSL driven by expanding renovation market 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: From Price/Performance to Cost Tipping point Industry & Markets Outdoor LED penetration Commercial / Retail LED penetration 750 100% 15 100% Commercial Lighting Market (billion units) Outdoor Lighting
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 GOVERNMENT Energy Star in place (US Standard) 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 250 150 125 HB LED Market (sq area) HB LED Market (bn units) 200 100 150 75 100 50 50 2
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 50 50 2000 45 40 40 Incremental HB LEDs Incremental HB
Slide 20: 3-Month Business Development
24 - Month Business Development (€ million) Equipment (only) 57.9 117.6 163.3 168.5 175.4 200.4 204.0 Order Intake 31.2 Financials Equipment (only) Order Backlog 100.7 109.4 152.4 203.8 229.9 250.0 278.7 274.8 * Total Revenues (incl. equipment, 56.7 117.9 154.5 191.8 212.7 224.7 46.2 82.0 service, s
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Slide 22: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2010 2009 +/- Q4/10 Q4/09 +/- Revenues 783.8 302.9 159% 224.7 117.9 91% Cost of sales 372.0 168.1 121% 107.4 62.4 72% Financials Gross profit 411.8 134.7 206% 117.3 55.5 111% Gross Margin 53% 44% +9 pp 52% 47% +5 pp Selling expenses 48.9 25.5 92% 9.0 9.1 -1
Slide 23: 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 Financials 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 Oth
Slide 24: 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 Financials Cash Flow from financing activities -11.6 153.6 Exchange rate changes 0.2 1.3 Net change in Cash & Cash Equivalents -29.1 143.7 Cash
Slide 25: 2011 Guidance Model
2011 Guidance Model 2011 revenue guidance: ca. €800m - €900m 2011 EBIT guidance: ca. 35% EBIT margin (€ million) Outlook €302m backlog as per 01/01/11 Shippable equipment orders revalued at 1.35 US$/€ required by Q3/2011 from €275m at 31/12/10 302 458- 558 40 Assumed 2011 spares & non-equipment reve
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 April 28, 2011 Q1/2011 Results, Conference Call May 19, 2011 Annual General Meeting 2011 in Aachen July 28, 2011 H1/2011 Results Conference & Conf. Call Contact October 27, 2011 9M/2011 Results, Conference Call For further information please contact: Investor Relati
Slide 29: AIXTRON Investor Presentation
P 29 AIXTRON Investor Presentation File:
Slide 30: China: Government to stimulate LED Value Chain
China: Government to stimulate 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 - 2015 USA 1st Government LED lighting project: 28 Bid winners Japan Appendix
Slide 31: China: Investment subsidy programs
China: Investment subsidy programs 10 Provinces / 25 cities participating through central and local government support Value Chain: regional difference in value, timing and applications Northern Region Funding profile: <5 cities / provinces Yangtze River Delta Funding profile: RMB 8-12m / MOCVD Syst
Slide 32: 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 industrial JV Beijing
Slide 33: White HB LED: Key IP cross license agreements
White HB LED: Key IP cross license agreements Showa Denko Appendix Sharp Source: LEDinside 2007; AIXTRON SE P 33
Slide 34: 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 35: LED Cost Structure by Application
LED Cost Structure by Application 100% 80% Appendix 60% 40% 20% 0% 12.1" Notebook LED 22" Monitor LED 40" TV LED BLU LED Light Bulb BLU BLU LED Labor, SG&A, Overhead Other Materials Based on: AIXTRON; DisplaySearch Q3/2010; Macquarie Sept. 2010 P 35
Slide 36: 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 37: 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 LED vs. LED vs. Appendix Store Incan. CFL LED Incan. (x) CFL (x) Amazon US $ 1.4 $ 4.9 $ 40 28.6x 8.2x GE Walmart $ 7.0 $ 32 4.6x Home De
Slide 38: 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 Samsung Appendix LED vs. LED vs. Stores Incan. CFL LED Incan. (x) CFL (x) Average US $ 1.7 $ 5.6 $ 36 21.6x 6.5x Average Japan $ 1.6 <$12 <$25 15.4x 2.1
Slide 39: 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 Tipping Point 28% 22% Appendix 40% $20 $15 Profit/Yield Othe
Slide 40: 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” 50 Appendix LED-Streetlight penetration LED Streetligh
Slide 41: 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 R IP TOME S Automation Automation CU Process
Slide 42: 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 43: Compound Semiconductor System Generations
Compound Semiconductor System Generations Rapid product transition by customer base 13% of FY 2010 revenues consist of new generation systems 55% of Q4/10 orders consist of new generation systems Compound Semiconductor (CS) Equipment Revenues: €134m €70m €115m €81m €97m €145m €236m €266m €731m Appen
Slide 44: 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 45: 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 46: Organic Semiconductor Systems
Organic Semiconductor Systems OVPD®/PVPD enhanced by CCS® technology Full colour 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 46
Slide 47: 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 47
Slide 48: 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 49: AIXTRON Share Price
AIXTRON Share Price Dec. 31, 2010: Share Price: EUR 27.61 AIXTRON (12 months trailing until 31/12/10) Shares out: 101,179,866 Market Cap: EUR 2.8bn EUR 30 EUR 28 Appendix EUR 26 EUR 24 EUR 22 EUR 20 EUR 18 AIXTRON TecDAX® indexed EUR 16 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec P 49
Slide 50: Compound Equipment Order Intake per Quarter
Compound Equipment Order Intake per Quarter 220 million EUR tangible LED lighting 200 momentum 180 driven by LED TV 160 Appendix 140 driven by 120 telecom/datacom driven by notebook and mobile phone backlighting 100 driven by mobile 80 phone penetration 60 40 20 0 Q1 Q2Q3 Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3 Q4Q1
Slide 51: Order Backlog Conversion into Revenue
Order Backlog Conversion into Revenue* AIXTRON1 vs. Veeco2 90% 80% 70% 60% Appendix 50% 40% 30% 20% 10% 0% Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 AIXTRON Veeco * Calculated as revenue divided by prior quarter backlog 1) Compound Semiconductor Segment only 2) LED/Solar Segment only Source: D
Slide 52: 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 53: Building Project R&D Center
Building Project R&D Center Appendix Offices, Labs & Prototype/Non Standard Production State of the art R&D Center Space for >400 Employees, 16,000 sq. meters, energy efficient design, including LED lighting Planned investment: in excess of EUR 40m P 53
Slide 54: Building Phase I (Completed Q3/2010)
Building Phase I (Completed Q3/2010) Appendix R&D and Engineering Offices P 54
Slide 55: Building Phase II (To be completed Q1/12)
Building Phase II (To be completed Q1/12) Appendix Labs & Prototype/Non Standard Production P 55
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: AIXTRON Investor Presentation
P 58 AIXTRON Investor Presentation