Aixtron Se · XETR:AIXA
Aixtron — 9M 2013 Earnings Presentation
46 slides from Aixtron's earnings presentation, November 2013
Slide 1: AIXTRON Investor Presentation
AIXTRON Investor Presentation Excerpt of the IR Master Presentation including 9M/2013 IR Master Presentation available on www.aixtron.com/investors (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041) © AIXTRON SE, November 2013
Slide 2: Forward-Looking Statements
AIXTRON Investor Presentation Forward-Looking Statements 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
Global Presence AIXTRON 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, OVPD®, PVPD®, PECVD) (PECVD, CVD, ALD. MOCVD) Technology LEDs/OLEDs for displays LEDs/OLEDs for lighting Metal and oxide films SiC/GaN for
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) 250 driven by strategic China investments driven by LED TV 200 Operations driven by notebook 150 backlighting driven by telecom/datacom driven by 100 and mobile phone mobile phone penetration 50 0 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01
Slide 8: High Brightness (HB) LED Market Forecast in USD
High Brightness (HB) LED Market Forecast in USD HB LED summary forecast by application in USD 2012 Industry & Markets 12,000 9,000 23% 11,000 8,000 41% 10,000 Market Size (U SD million) 7,000 9,000 7% CAGR 13% 8,000 6,000 7,000 10% 13% 5,000 6,000 4,000 5,000 4,000 3,000 2017e 3,000 2,000 2,000 1,00
Slide 9: 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 10: A-19 Bulb: 60W LED Replacement – Global Pricing
A-19 Bulb: 60W* LED Replacement – Global Pricing Global Brands: Samsung, Osram, Philips, GE, Toshiba, etc. New light bulbs with higher lm/W being offered Industry & Markets Brand suppliers increasingly offering attractively priced devices QoQ LED vs. LED vs. Regions Incan. CFL LED Low High +/- Incan
Slide 11: LED Lighting: Regional Highlights
LED Lighting: Regional Highlights Industry & Markets Walmart launched 60W GE’s 60W equivalent LED equivalent LED light bulbs at light bulbs are also available USD 9.88/8.88 in Walmart at USD 10.97 (dimmable/non-dimmable) Osram’s 60W LED light bulbs are available below EUR 10 (c. USD 13) in Germany n
Slide 12: Increasing LED Area Driving Growth
Increasing LED Area Driving Growth Growth through increasing LED-unit and area demand Consistent epitaxial area growth will trigger equipment demand Industry & Markets LED-lighting gaining further momentum LED Units 2” Equivalent Wafer 150 50,000 HB LED Market (2" Equivalent Wafer in 000) HB LED Mar
Slide 13: Production Supply 3rd Party Estimates for HB LEDs
Production Supply 3rd Party Estimates for HB LEDs Analysts’ Bull-Bear MOCVD system demand estimates Larger area and future replacement to drive equipment demand SSL is the strongest driver for material area growth Industry & Markets Incremental LED units and area growth every year Incremental LED Un
Slide 14: Promising Future Markets
Promising Future Markets Silicon Compound Organic Carbon Semiconductors Semiconductors Material Material ALD (MOCVD) MOCVD OVPD®/PVPD® PECVD Future Markets Power Management Graphene Silicon systems Organic materials GaN / SiC for CNTs and CNWs • Metal nitride and Hi-k • RF transistors • OLEDs for di
Slide 15: 5-Point-Program - Return to Sustainable Profitability
5-Point-Program - Return to Sustainable Profitability 1 Customer Focusing on customer benefit Putting unique technology portfolio to 2 Technology & Operations more effective use, further strengthening Products future products 3 Efficiency Optimizing process and project structures systematically 4 Fi
Slide 16: Business Development
24 - Month Business Development (€ million) Equipment (only) 29.3 31.5 30.0 34.5 35.4 29.9 30.5 35.7 Order Intake @ $1.35 @ $1.40 @ $1.30 Financials 19.0 140.1 136.2 137.7 109.8 79.4 78.4* 71.6 72.8 Equipment (only) Order Backlog @ $1.35 @ $1.40 @ $1.30 *) revalued on Jan.1, 2013 to EUR 83.8m at USD
Slide 17: Consolidated Income Statement
Consolidated Income Statement* (€ million) 9M/13 9M/12 +/- Q3/13 Q2/13 +/- Revenues 131.8 150.3 -12% 46.2 45.3 2% Cost of sales 156.6 167.6 -7% 35.7 33.1 8% Financials Gross profit -24.8 -17.3 43% 10.6 12.3 -14% Gross Margin -19% -11% -8pp 23% 27% -4pp Selling expenses 21.2 24.9 -15% 6.9 7.4 -7% Gen
Slide 18: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 30/09/13 31/12/12 30/09/12 Property, plant & equipment 92.4 97.6 97.6 Goodwill 64.3 64.3 64.6 Other intangible assets 3.2 4.2 4.8 Financials Others 5.6 6.3 37.4 Non-current assets 165.5 172.4 204.5 Inventories, WIP & Finished Goods 67.8 126.0
Slide 19: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 9M/2013 9M/2012 Q3/2013 Q2/2013 Cash Flow from operating activities 4.9 -52.2 -3.8 -1.5 Cash Flow from investing activities 14.7 10.3 7.9 3.8 Financials Cash Flow from financing activities 1.3 -24.5 0.2 0.6 Exchange rate changes -1.6 2.0 -1.1 -0.7 Ne
Slide 20: Market Prospects
Market Prospects Short-Term Increasing adoption of LEDs for exterior, public infrastructure & commercial lighting Future Markets Increased adoption of LEDs for consumer & residential lighting Increasing adoption of GaN for power electronics Next generation NAND, DRAM & PRAM memory applications Incre
Slide 21: AIXTRON Investor Presentation
P 21 AIXTRON Investor Presentation
Slide 22: 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 450bn by 2015 Industry & Markets China China potentially largest single Germany Other consumer of LED lighting by 2015 USA Japan LED lighting: 20%+ of the total lighting
Slide 23: China: The Progress of LED Industry Policies
Industry & Markets China: The Progress of LED Industry Policies Phasing out of incandescent bulbs Government actions to facilitate LED lighting transition Enhance technologies development: LED fabrication, SSL basic research, etc. Consumer End-market subsidy: LED lighting bidding plan Public End-mar
Slide 24: White HB LED: Key IP Landscape
White HB LED: Key IP Landscape Showa Denko Industry & Markets Formosa Epitaxy (Taiwan) Sharp Source: LEDinside 2007; LEDs Magazine; AIXTRON P 24
Slide 25: AIXTRON: Serving Megatrends
AIXTRON: Serving Megatrends • Electricity consumption Energy Efficiency Industry & Markets • Efficient power Consumer management Electronics • New market Emerging Markets • Growing consumers Utility Market • High performance devices Mobile Devices • High efficiency devices P 25
Slide 26: LED Lighting Market Continues to Grow
LED Lighting Market Continues to Grow Declining Prices drive Growth Industry & Markets LED lighting market 2017: LED lighting >US$20bn market 2012: US$11.8bn Korea EU US Japan 0% -10% -20% -30% -40% -50% -60% 60W equivalent A19 LED light bulb price YoY change: 2010-2012 Source: Strategies Unlimited
Slide 27: Increasing Availability of LED Lighting Products
Increasing Availability of LED Lighting Products Government: >3,000 Energy Star qualified LED products End-Markets: Utility / Government rebate imminent Manufacturers: Shift of focus from lm/w to lm/$ Industry & Markets Energy Star Product Release Average Luminous Efficacy Source: Energy Star 2013 P
Slide 28: Par Bulb: LED Replacement – Commercial Lighting
Par 38 Bulb: LED Replacement – Commercial Lighting Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Industry & Markets Philips- 72 Watt – Energy Saving Utilitech-26 Watt EcoSmart PAR38 Product PAR38 PAR38 Light Bulb LED Bulb Energy used (W) 72 26 18 Equivalent to (W) 90 90GE
Slide 29: LED Cost Structure by Application
LED Cost Structure by Application LED Chip representing ca. 20% of total LED Light Bulb Cost Mature Emerging Industry & Markets Other costs Profit/Yield LED Chip cost 50% 40% Based on: AIXTRON; DisplaySearch Q3/2011; DOE 2011; CSA Conference 2011 P 29
Slide 30: Compound Semiconductor System Generations
Compound Semiconductor System Generations Extendibility: Extensive choice of configurations and enhancements Scalability: Multiple technologies on one platform Productivity: Operations Highest throughput, best yield, fastest growth rates Year of Platform Technology Chambers Introduction G3 Planetary
Slide 31: Compound Semiconductors and Silicon – Two Converging Worlds
Compound Semiconductors and Silicon – Two Converging Worlds • Dominated by small wafers – 2“, 4“ & 6“ Compound • Low level of automation and fab integration Semiconductors • Complex binning process required Future Markets • No recognized shared Industry Roadmap • AIXTRON G5+ MOCVD Planetary reactor
Slide 32: Beyond LED Developments: Silicon Semiconductor Systems
Beyond LED Developments: Silicon Semiconductor Systems QXP-8300 Platform “Q” – Quad (4 reactor stations per process module) “X” – eXtendibility to multiple technology nodes Future Markets “P” – Productivity (low cost of ownership) 8300 – Parallel processing of “8” 300 mm wafers Features Benefits Pat
Slide 33: Beyond LED Developments: Silicon Semiconductor Systems
Beyond LED Developments: Silicon Semiconductor Systems Memory and Logic applications to drive ALD equipment industry Multi generation film development for memory & logic Product designed for high volume manufacturing (HVM) and Future Markets offers low cost of ownership QXP-8300 production qualified
Slide 34: 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 Future Markets GaN/Si | SiC & GaN/Si competition Superju
Slide 35: 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 Future Markets Year Company Region Status Materials Notes 2005
Slide 36: 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 Future Markets Yield: precise process control Cost reduction: efficient material utilization, footprint efficiency R&D App
Slide 37: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems Cleaning Cleaning Glass cutting ITO deposition Organic material Bonding Future Markets Coating deposition Etching Cathode deposition Aging Stripping Test and repair Encapsulation Final test Front-end Back-end Array process Front-end Module proce
Slide 38: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems OVPD®/PVPD®: Co-Deposition of multiple sources Multi-layer deposition Future Markets RGB color-patterned OLED structure White OLED + Color Filter structure Cathode Cathode ETL EIL Red Green n-doped ETL HTL P-N contact P-N contact Blue R G B HTL
Slide 39: Graphene and Carbon Nanotube Deposition Systems
Beyond LED Developments: Graphene and Carbon Nanotube Deposition Systems Material AIXTRON Enabling Properties Technology Applications Future Markets • Graphene (2D) and • Thermal and plasma • High frequency/mobility Carbon nanotube (1D) chemical vapour transistors and sensors • High tensile strength
Slide 40: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2012 2011 2010 Revenues 227.8 611.0 783.8 Cost of sales 227.4 379.5 372.0 Financials Gross profit 0.4 231.4 411.8 Gross Margin 0% 38% 53% Selling expenses 34.8 32.1 48.9 General & admin expenses 19.6 34.0 30.1 R&D 72.9 50.4 46.1 Net other op. (income)/expen
Slide 41: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/12 31/12/11 31/12/10 Property, plant & equipment 97.6 96.2 77.9 Goodwill 64.3 64.1 62.2 Other intangible assets 4.2 6.2 7.0 Financials Others 6.3 29.4 20.6 Non-current assets 172.4 195.8 167.7 Inventories, WIP & Finished Goods 126.0 184
Slide 42: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2012 2011 2010 Cash Flow from operating activities -45.2 -6.3 147.7 Cash Flow from investing activities -4.4 50.5 -165.4 Financials Cash Flow from financing activities -24.3 -57.5 -11.6 Exchange rate changes 0.8 4.2 0.2 Net change in Cash & Cash Equi
Slide 43: AIXTRON Sites: Aachen, Germany
AIXTRON Sites AIXTRON Group Worldwide Production AIXTRON SE, Aachen, Germany P 43
Slide 44: AIXTRON Sites: Cambridge, UK
AIXTRON Sites AIXTRON Group Worldwide Production AIXTRON Ltd., Cambridge, UK P 44
Slide 45: R&D Center: Fortify Technology Leadership
AIXTRON Sites R&D Center: Fortify Technology Leadership 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 45
Slide 46: Financial Calendar & Contact Data
Financial Calendar & Contact Data February 2014 FY/2013 Results, Conference Call April 2014 Q1/2013 Results, Conference Call Financial Calendar May 14, 2014 Annual General Meeting, Aachen July 2014 H1/2014 Results, Conference Call For further information please contact: Investor Relations & Corporat