Aixtron Se · XETR:AIXA
Aixtron — Investor Presentation (July 2010)
54 slides from Aixtron's investor presentation, July 2010
Slide 1: AIXTRON Investor Presentation Summer 2010 including H1/2010
AIXTRON Investor Presentation Summer 2010 including H1/2010 (FSE: AIXA, ISIN DE000A0WMPJ6; 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
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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: 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
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 9: 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 10: 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 11: 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) © AIXTRON proprietary P 11
Slide 12: Equipment Revenues by Application
Equipment Revenues by Application 350 AIXTRON Equipment Revenues (excl. spares) in EUR m 300 250 Operations 200 150 100 50 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009H1/10 LED Telecom/Datacom Consumer-/Optoelectronics Solar Display & others Silicon P 12
Slide 13: Total Revenues by Region
Total Revenues by Region 2007: 2008: 2009: H1/2010: €214.8m €274.4m €302.9m €346.3m 10% 6% 4% 3% 3% Operations 9% 21.9 7% 17.8 14% 11.4 9.110.8 18.5 41.5 18.8 174.1 250.0 238.1 326.4 81% 87% 82% 94% USA Europe Asia P 13
Slide 14: High Brightness (HB) LED Market Forecast
High Brightness (HB) 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 Automoti
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Industry & Markets This page has been intentionally left blank P 15
Slide 16: 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 350 100% 350 100% LCD Monitor Market (million units) 300 300 LCD TV Mar
Slide 17: 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 Early adoption: >150m unit replacement streetli
Slide 18: Increasing Chips size driving wafer area growth
Increasing Chips size driving wafer area growth Strong estimated* area growth: 5 year CAGR of 55% Larger chip sizes lead to epitaxial area increase Industry & Markets Improved visibility for SSL gaining momentum LED Units Material Area 250 125 HB LED Market (sq area) HB LED Market (bn units) 200 100
Slide 19: Production Supply Estimates for HB LEDs
Production Supply Estimates for HB LEDs Bear-Bull MOCVD system demand: 5 year CAGR of 25-45% Larger chip sizes require further capacity increase Industry & Markets SSL is the strongest driver for material area growth LED Units Material Area 70 35 1600 60 30 1400 Incremental HB LEDs Incremental HB LE
Slide 20: Order Intake, Backlog and Revenues by Quarter
199.7@$1.30/€ 24 - Month Business Development (€ million) @ $1.50/€ Equipment (only) 52.2 40.6 31.2 57.9 117.6 168.5 175.4 Order Intake 163.3 284.7@$1.30/€ Financials @ $1.50/€ Equipment (only) Order Backlog 158.1 105.0 100.7 109.4 152.4 * 203.8 229.9 250.0 @$1.35/€** Total Revenues (incl. equipment
Slide 21: Consolidated Income Statement
Consolidated Income Statement (€ million) H1/10 H1/09 +/- Q2/10 Q2/09 +/- Revenues 346.3 102.9 237% 191.8 56.7 238% Cost of sales 162.4 58.4 178% 85.9 33.2 159% Financials Gross profit 183.9 44.5 313% 105.9 23.5 351% Gross Margin 53% 43% +10 pp 55% 41% +14 pp Selling expenses 25.2 9.5 165% 13.3 4.9
Slide 22: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (€ million) 30/06/10 31/12/09 30/06/09 Property, plant & equipment 48.6 37.8 32.8 Goodwill 67.0 58.3 59.1 Other intangible assets 7.4 7.8 8.8 Financials Others 30.1 14.8 11.2 Non-current assets 153.1 118.7 111.9 Inventories, WIP & Finished Goods 131.0 89.
Slide 23: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (€ million) H1/2010 H1/2009 Q2/2010 Q2/2009 Cash Flow from operating activities 94.8 14.5 22.9 9.1 Cash Flow from investing activities -55.4 -3.1 -20.4 -6.1 Financials Cash Flow from financing activities -12.8 -6.2 -14.6 -6.2 Exchange rate changes 3.4 1.7 2.7 1.0
Slide 24: 2010 Revised Guidance Model
2010 Revised Guidance Model 2010 revenue guidance: ca. €750m 2010 EBIT guidance: ca. 33% EBIT margin (€ million) Outlook Shippable equipment H1/2010 actual total revenue orders out of €250m total backlog as of 30/06/10 220 346 Assumed Q3-Q4 spares 22 & non-equipment revenues 162 ‘Shippable’ equipmen
Slide 25: 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 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) h
Slide 27: Key Takeaways
Key Takeaways Healthy and Promising Market Environment for LEDs High backlighting penetration driving cost of ownership reduction Industry preparation for a lighting mass market Asian subsidy catalysts Summary Successful qualification/customer acceptance of higher volume new generation systems (G5,
Slide 28: Financial Calendar & Contact Data
Financial Calendar & Contact Data October 28, 2010 Q3/2010 Results, Conference Call March 10, 2011 FY2010 Results, Conference in Frankfurt April 28, 2011 Q1/2011 Results, Conference Call Contact May 19, 2011 Annual General Meeting 2011 in Aachen For further information please contact: Investor Relat
Slide 29: Always One Step Ahead
ALWAYS ONE STEP AHEAD File:
Slide 30: White HB LED: Key IP cross license agreements
White HB LED: Key IP cross license agreements Appendix Source: LEDinside 2007 P 30
Slide 31: HB LED Content by Application
HB LED Content by Application Mobile Appliances # LEDs Mobile Phone BLU 10 Smart Phone BLU 10-15 Keypad 1-3 Flash 1-2 Appendix Display Application # LEDs / BLU Tablet / Netbook BLU 15-30 Notebook BLU 30-50 Monitor BLU 50-75 TV – Edge BLU 200 - 400 TV – Direct BLU 500 - 1000 TV – RGB BLU 1500 - 4500
Slide 32: 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 33: A-19 Light Bulb: Cost comparison
A-19 Light Bulb: Cost comparison Residential Lighting: LED reaching economic tipping point Commercial Lighting: From social driven to operating cost benefits Penetration rate expected to be over 30% by 2014 Residential Lighting LED Incandescent CFL Samsung No. of Lightsources 5-12 1 1 Appendix Cost
Slide 34: LED Streetlights
LED Streetlights New construction: Energy savings through large scale adoption Retrofit: Economic competitiveness – simple payback TAM: >160m unit replacement streetlight market Objectives: Energy saving – Lower Maintenance – Short ROI 50 Appendix LED-Streetlight penetration LED Streetlight Market (
Slide 35: 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 sunl
Slide 36: 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 37: Compound Semiconductor System Generations
Compound Semiconductor System Generations Rapid product transition by customer base Established industry standard Compound Semiconductor (CS) Equipment Revenue: €134m €70m €115m €81m €97m €145m €236m €266m 100% Appendix 90% 80% CS Product Mix in % 70% 60% 50% 40% 30% 20% 10% 0% 2002 2003 2004 2005 2
Slide 38: 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 38
Slide 39: 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 39
Slide 40: 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 40
Slide 41: 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 42: 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 42
Slide 43: Material & Technology Convergence
Material & Technology Convergence Appendix Compound Silicon Semiconductors Semiconductors Application driven Technology driven Mainly batch processing High volume production Diversified value chain Large players Complex materials Simple materials P 43
Slide 44: AIXTRON Share Price
AIXTRON Share Price 30/06/10: Share Price: EUR 19.73 AIXTRON (12 months trailing until 30/06/10) No. Shares: 101,071,374 Market Cap: EUR 2.0bn EUR 30 AIXTRON EUR 28 TecDAX® indexed EUR 26 Appendix EUR 24 EUR 22 EUR 20 EUR 18 EUR 16 EUR 14 EUR 12 EUR 10 EUR 8 EUR 6 EUR 4 Jun Jul Aug Sep Oct Nov Dec J
Slide 45: 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 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
Slide 46: 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 AIXTRON Veeco * Calculated as revenue divided by prior quarter backlog 1) Compound Semiconductor Segment only 2) LED/Solar Segment only Source: Deutsche Bank
Slide 47: Operational Flexibility and Leverage
Operational Flexibility and Leverage Continued progress in profitability and margins Increasingly cost-effective organization Solid financial position for continuing operations Appendix Flexible Cost Structure Improving Profit Margins Increasing Returns 80 35% 28% 60% Net Income 74.1 53% (EUR m) 26%
Slide 48: Consolidated Income Statement (FY)
Consolidated Income Statement (FY) (€ million) 2009 2008 +/- Appendix: Financials Revenues 302.9 274.4 10% Cost of sales 168.1 161.5 4% 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. (incom
Slide 49: Consolidated Statement of Financial Position (FY)
Consolidated Statement of Financial Position (FY) (€ million) 31/12/09 31/12/08 Appendix: Financials Property, plant & equipment 37.8 39.3 Goodwill 58.3 58.7 Other intangible assets 7.8 10.3 Others 14.8 9.1 Non-current assets 118.7 117.4 Inventories, WIP & Finished Goods 89.6 77.1 Trade receivables
Slide 50: Consolidated Statement of Cash Flows (FY)
Consolidated Statement of Cash Flows (FY) (€ million) 2009 2008 Appendix: Financials Cash Flow from operating activities 78.9 15.9 Cash Flow from investing activities -90.1 -11.4 Cash Flow from financing activities 154.9 -8.9 (incl. exchange rate changes) Net change in Cash & Cash Equivalents 143.7
Slide 51: AIXTRON Group Worldwide Production: Aachen
AIXTRON Group Worldwide Production Production Sites AIXTRON AG, Aachen, Germany P 51
Slide 52: AIXTRON Group Worldwide Production: Cambridge
AIXTRON Group Worldwide Production Production Sites AIXTRON Ltd., Cambridge, UK P 52
Slide 53: AIXTRON Group Worldwide Production: Sunnyvale
AIXTRON Group Worldwide Production Production Sites AIXTRON Inc., Sunnyvale/USA P 53
Slide 54: Always One Step Ahead
ALWAYS 9! AHEAD