Ipg Photonics Corporation · NASDAQ:IPGP
Ipg Photonics — Investor Presentation (March 2017)
17 slides from Ipg Photonics's investor presentation, March 2017
Slide 1: Investor Presentation
Investor Presentation March 2017 Tim Mammen Chief Financial Officer www.ipgphotonics.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements in this presentation that relate to future plans, market forecasts, events or performance are forward-looking statements. These statements involve risks and uncertainties, including, risks associated with the strength or weakness of the business conditions in ind
Slide 3: Key Takeaways
Key Takeaways Vertical integration, manufacturing scale, and technology driving industry-leading margins Expanding multi-billion dollar addressable market opportunity Rapidly growing earnings and cash flow
Slide 4: Our Mission: Making fiber lasers the tool of choice in mass production
Our Mission Making fiber lasers the tool of choice in mass production 4
Slide 5: Materials Processing
Materials Processing Cutting Welding Brazing Drilling General Manufacturing & OEM Automotive Heavy Additive Surface Industry Cladding Manufacturing Marking Treatment Aerospace Additive Manufacturing Semiconductor & Electronics 5
Slide 6: Fiber Laser Leader
Fiber Laser Leader $3.5 Metal-Based Materials Processing $3.0 $1.5 Fiber Lasers Revenue in Billions Revenue in Billions $2.5 $1.0 Others $2.0 $1.5 $0.5 $1.0 IPG $0.5 $0.0 $0.0 2016 2017 2018 2019 2020 2021 Source: IPG Photonics and Laser Markets Research, 2017 Fiber Lasers CO2 & Other Lasers 6
Slide 7: IPG Lasers Cover More Applications
IPG Lasers Cover More Applications (1) Any Wavelength 0.4 mm (10 -6 meters) 0.7 mm 1 mm 1.5 mm > 5 mm Ultra-violet Visible Near-Infra-red Mid-Infra-red UV Lasers Blue, Green, Yellow , Diode Ytterbium Erbium Thulium, Cr:Zn/Se/S Fe:ZnSe/S Orange, Red Lasers Lasers Lasers Lasers Holmium Lasers Lasers L
Slide 8: IPG Fiber Laser – Technology Advantages
IPG Fiber Laser – Technology Advantages Higher Power Lower Energy Faster Consumption Performance Lower Compact Maintenance Footprint Higher Versatility & Reliability Flexibility 8
Slide 9: Significant Barriers to Entry
Significant Barriers to Entry Technology: Business: IP & Process Vertical Know-How Integration & Scale 9
Slide 10: Highest Volume, Lowest Cost Producer of Pump Diodes
Highest Volume, Lowest Cost Producer of Pump Diodes 10,000,000 120% Packaged Diode Costs % Chg. 100% Tested Chips Produced 8,000,000 80% 6,000,000 60% 40% 4,000,000 20% 0% 2,000,000 -20% 0 -40% 2009 2010 2011 2012 2013 2014 2015 2016 Tested Chip Production Cost/Watt Decrease (2009 Base Year) Annual
Slide 11: Global Manufacturing Scale, Sales & Service Capability
Global Manufacturing Scale, Sales & Service Capability Headquarters, Manufacturing, R&D, Sales, Service Manufacturing R&D, Sales, Service Sales, Service 11
Slide 12: $6 Billion Addressable Market
$6 Billion Addressable Market New Applications ($2.4B) Cinema and Displays / Sensors and Inspection / R&D / Defense / Medical / Mid-IR Spectroscopy Core Materials Processing Applications ($2.6B) Cutting / Welding / Brazing / Drilling / Marking Cladding / Additive Manufacturing / Surface Treatment Ot
Slide 13: Growth Opportunities – New Applications & Products
Growth Opportunities – New Applications & Products Beam Medical Delivery Ultraviolet Additive Fiber Lasers Manufacturing Ultrafast Laser Ablation Lasers Laser Cinema & Systems Display 13
Slide 14: Strong Growth & Industry-Leading Operating Margin
Strong Growth & Industry-Leading Operating Margin $1,200 100% $1,006 Revenue ($ Millions) Operating Margin 80% $900 60% $600 $474 40% $300 37% 37% 20% $0 0% 2011 2012 2013 2014 2015 2016 Revenue Operating Margin 14
Slide 15: Rapidly Growing Operating Cash Flow
Rapidly Growing Operating Cash Flow $350 $296 $300 $ Millions $250 $200 $150 $100 $87 $50 $0 2011 2012 2013 2014 2015 2016 Free Cash Flow Capex 15
Slide 16: Target Business Model
Target Business Model Market Revenue Growth 12% 10%-14% (1) Growth Gross Margin 55% 50%-55% (2) 50%-55% Operating Margin 37% 32%-37% (2) 32%-37% (1) Foreign exchange headwind ~3 percentage points in 2017 (2) Targeting upper half of the range 16
Slide 17: Thank You
Thank You NASDAQ: IPGP Questions? Contact Investor Relations: Web: investor.ipgphotonics.com Email: [email protected] Phone: (508) 373-1467 www.ipgphotonics.com