Aixtron Se · XETR:AIXA
Aixtron — Investor Presentation (March 2013)
63 slides from Aixtron's investor presentation, Mar 19, 2013
Slide 1: AIXTRON Investor Presentation – IR Master Presentation FY/2012
AIXTRON Investor Presentation IR Master Presentation – FY/2012 (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: Global Presence
AIXTRON Global Presence 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) (CVD, ALD) Technology LEDs/OLEDs for displays LEDs/OLEDs for lighting SiC/GaN for power devices Metal and oxide films
Slide 5: Value Chain Positioning
Value Chain Positioning Production Chip & Electronic End Equipment Component Modules & Device User Manu- Packaging Manu- Markets Introduction Makers facturers facturers Consumer commu- nication Industrial Display Lighting Medical Automotive P5
Slide 6: 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 7: Global MOCVD Market Shares
Global MOCVD Market Shares $164m $238m $340m $185m $133m $231m $155m $202m $289m $486m $533m $1,713m $1,543m 100% 3% 90% 80% Operations 70% 47% 60% 50% 40% 30% 50% 20% 10% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 AIXTRON SE Veeco Instruments, Inc. Taiyo Nippon Sanso Corp.
Slide 8: Annual Equipment Revenues by Application
Annual Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR million Operations P8
Slide 9: Equipment Order Intake per Quarter
Equipment Order Intake per Quarter (EUR million) ALD orders driven by sub-30nm nodes 250 driven by strategic China investments 200 driven by LED TV Operations driven by 150 notebook CVD orders backlighting driven by memory demand driven by driven by 100 telecom/datacom mobile phone and mobile phone
Slide 10: Total Revenues by Region
Total Revenues by Region 2009: 2010: 2011: 2012: €302.9m €783.8m €611.0m €227.8m 4% 5% Operations 6% 13% 4% 35.9 4% 14% 36.9 11.4 31.1 26.3 29.0 9% 41.5 21.4 250.0 716.9 547.8 177.5 82% 91% 90% 78% Asia Europe USA P 10
Slide 11: LED Investment cycle
LED Investment cycle Global demand: driven by new applications Supply: different regional investment characteristics Industry & Markets Lighting BLUs Mobile Strong Market Aggressive Demand > Capital Supply Spending Supply Little Capacity Demand < 2010-11 2009 Demand Added Supply China Korea Price Ma
Slide 12: LED Investment cycle
LED Investment cycle Focus on Focus on Focus on Volume Cost Margins Industry & Markets 2008 2013 Significant Capacity Investments More Cost-efficient Tools Large # of MOCVD Tools Installed Larger Wafers Substantial Short-term Overcapacity Economies of Scale LEDs on Silicon Margin Erosion Consolidati
Slide 13: High Brightness 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 14: LED Lighting Momentum Signals
LED Lighting Momentum Signals GOVERNMENT Consumer Governmental Subsidies Regulations Industry & Markets technology definition subsidies of (top down) standards incan- public area descent installation bans produc- tivity LED ecological awareness (COO) product quality Lighting energy savings (lm/W) re
Slide 15: Tangibility of LED Lighting Momentum
Tangibility of LED Lighting Momentum Ban targets set by top 10 GDP countries UN urges banning mercury-containing products , including CFLs by 2020 EU to ban mercury vapor street lamps Government Energy Star in place (US Standard) with Industry & Markets now 1,700+ qualified products China: LED polic
Slide 16: 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 17: 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 18: A-19 Bulb: 60W LED Replacement – Global Pricing
A-19 Bulb: 60W* LED Replacement – Global Pricing Global Brands: Samsung, Osram, Philips, GE, Toshiba, etc. Local Stores: Test market phase in leading economies Industry & Markets New light bulbs with higher lm/W being offered QoQ LED vs. LED vs. Stores Incan. CFL LED Low High +/- Incan. (x) CFL (x)
Slide 19: LED lighting market continues to grow
LED lighting market continues to grow Declining Prices drive growth Industry & Markets LED lighting market 2012: LED lighting US$11.8bn market 2010: US$5.5bn 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 20: LED Lighting: Regional Highlights
LED Lighting: Regional Highlights Industry & Markets In February 2013, ALDI, the worlds largest supermarket discounter, again promoted BestBuy started selling its 60W equivalent LED light bulbs at EUR own brand 60W equivalent 9.99 (USD 13) successfully in Germany. LED light bulbs at USD 17.99. Phili
Slide 21: Increasing LED Chip Size
Increasing LED Chip Size Strong estimated* area growth: 8 year CAGR of 59% Larger chip sizes lead to epitaxial area increase Industry & Markets Improved visibility for SSL gaining momentum LED Units Material Area 250 150 HB LED Market (bn units)- H B L E D M a rke t (sq a re a ) - 200 125 100 150 75
Slide 22: Production Supply Estimates for HB LEDs
Production Supply Estimates for HB LEDs Bear-Bull MOCVD system demand: 2011 - 2017 CAGR of 3% Larger area demand requires capacity in volumes Industry & Markets SSL is the strongest driver for material area growth LED Units Material Area 50 40 1,500 Required number of MOCVD reactors Incremental HB L
Slide 23: Business Development
24 - Month Business Development (€ million) Equipment (only) Order Intake @ $1.35 @ $1.40 Adjusted as of Financials Sep. 15, 2011 * Equipment (only) Order Backlog @ $1.35 @ $1.40 *) revalued on Jan.1, 2012 to €136.8m at $1.40/€ Total Revenues (incl. equipment, service, spare parts) @ $1.40 @ $1.29 1
Slide 24: Consolidated Income Statement
Consolidated Income Statement* (€ million) FY 12 FY 11 +/- Q4/12 Q3/12 +/- Revenues 227.8 611.0 -63% 77.5 62.2 25% Cost of sales 227.4 379.5 -40% 59.8 104.5 -43% Gross profit 0.4 231.4 n.m. 17.7 -42.3 n.m. Gross Margin 0% 38% -38 pp 23% n.m. n.m. Financials Selling expenses 34.8 32.1 8% 9.9 11.6 -15
Slide 25: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/12 30/09/12 31/12/11 Property, plant & equipment 97.6 97.6 96.2 Goodwill 64.3 64.6 64.1 Other intangible assets 4.2 4.8 6.2 Others 6.3 37.4 29.4 Financials Non-current assets 172.4 204.5 195.8 Inventories, WIP & Finished Goods 126.0 157
Slide 26: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2012 2011 Q4/2012 Q3/2012 Cash Flow from operating activities -45.2 -6.3 7.0 -23.8 Cash Flow from investing activities -4.4 50.5 -14.8 2.8 Cash Flow from financing activities -24.3 -57.5 0.3 0.0 Financials Exchange rate changes 0.8 4.2 -1.2 0.3 Net c
Slide 27: Market Prospects
Market Prospects Short-Term Increasing adoption of LEDs for exterior, public infrastructure & commercial lighting Increased adoption of LEDs for consumer & residential lighting Increasing adoption of GaN for power electronics Next generation NAND, DRAM & PRAM memory applications Increased emergence
Slide 28: AIXTRON Investor Presentation
P 28 AIXTRON Investor Presentation
Slide 29: 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 China China potentially largest single Germany Other consumer of LED lighting by 2015 USA Appendix Japan LED lighting: 20%+ of the total lighting market in
Slide 30: China: Investment programs between 2010-2015
China: Investment programs between 2010-2015 Value chain: conversion of incumbent lighting and LED industry LED related subsidies will shift from fixed asset investments over to end-market subsidies. Northern Region Funding profile: Yangtze River Delta Funding profile: <5 cities / provinces 10 citie
Slide 31: China: The Progress of LED industry policies
China: The Progress of LED industry policies Light source production in China Government actions to facilitate LED in 2011: 68% of global demand lighting transition fluorescent lamps China ROW Phasing out of incandescent bulbs Appendix incandescent lamps China ROW Enhance technologies development: L
Slide 32: China: Lighting supply chain restructuring for SSL
China: Lighting supply chain restructuring for SSL 5 Year target: increase HB LED value chain output by 4x Value Chain: regional difference in value, timing and applications Supply chain to support growth of Chinese LED flagship companies Lighting Market Value (incl. LED) LED Lighting China 100 120
Slide 33: 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 SINANO: Demo and training facility for Planetary and CCS technology and research projects AIXTRON Group Key Project/ Comments Cooperating Research R
Slide 34: LED industry challenges
LED industry challenges The “Quantity“ Era # of tools Technical Experience Operator availability Wafer availability MO availability Appendix Installation issues $/lm Development Infrastructure of Expertise Quality of light Tool capacity lm/W Yield LED brightness Color temperature Color consistency T
Slide 35: White HB LED: Key IP Landscape
White HB LED: Key IP Landscape Showa Denko Appendix Formosa Epitaxy (Taiwan) Sharp Source: LEDinside 2007; LEDs Magazine; AIXTRON P 35
Slide 36: LED Backlighting Unit (BLU) Market Forecast
LED Backlighting Unit (BLU) Market Forecast LCD panel unit growth (TAM) Adoption towards full LED BLU implementation Emerging markets and new TV Models driving LED utilization rates Does not include any 4K(Ultra HD) TV incremental potential LED-TV penetration LED-Monitor penetration Appendix 250 100
Slide 37: Increasing availability of LED Lighting Products
Increasing availability of LED Lighting Products Government: >1,700 Energy Star qualified LED products End-Markets: Utility / Government rebate imminent Energy Star Product Release Average Luminous Efficacy 2000 65 Appendix LED replacement Bulbs in Units New Release- avg. luminous efficacy 60 1500 5
Slide 38: A-19 Bulb: 60W LED Replacement - US-Pricing
A-19 Bulb: 60W* LED Replacement - US-Pricing Commercial Lighting: LED reaching economic tipping point Residential Lighting: From social driven to operating cost benefits Government / Utilities can help to reach tipping point LED vs. Inca QoQ LED vs. Appendix Store LED Man. CFL LED Incan. n. +/- CFL
Slide 39: Par Bulb: LED Replacement
Par 38 Bulb: LED Replacement Commercial Lighting US-Pricing Higher lumen products available. Distributed in different channels. Functional driven: dimmable, beam angle, etc. to be highlighted LED vs. LED vs. Appendix Store LED Man. Hal. CFL LED* Hal. (x) CFL (x) LED Amazon $5.9 $9.1 $ 26 4.4x 2.9x G
Slide 40: Par Bulb: LED Replacement – Commercial Lighting
Par 38 Bulb: LED Replacement – Commercial Lighting Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Appendix Philips- 90 Watt - Utilitech-26 Watt EcoSmart PAR38 Product PAR38 PAR38 Light Bulb LED Bulb Energy used (W) 90 26 18 Equivalent to (W) 90 90 90 Lifetime (hours) 2,000
Slide 41: LED Cost Structure by Application
LED Cost Structure by Application LED Chip representing ca. 20% of total LED Light Bulb Cost Mature Emerging Other costs Appendix Profit/Yield LED Chip cost 50% 40% Based on: AIXTRON; DisplaySearch Q3/2011; DOE 2011; CSA Conference 2011 P 41
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 Platform Technology Chambers Introduction G3 Planetary 2
Slide 43: 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 Automation Automation Process Control Process
Slide 44: 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 20-30 Notebook BLU 20-50 Monitor BLU 30-70 TV – Edge BLU 120 - 350 TV – Direct BLU 35 - 600 TV – R
Slide 45: Beyond LEDs – Future Developments
Beyond LEDs – Future Developments: Material & Technology Convergence Convergence III-V & CNT / Si Organic Carbon Compound Silicon Material Material Semiconductors Semiconductors Graphene Power Management OVPD®/PVPD® Silicon systems Appendix CNTs and CNWs GaN / SiC for • OLEDs for display: Graphene,
Slide 46: AIXTRON: Focus Markets
AIXTRON: Focus Markets • Electricity consumption Energy Efficiency • Efficient power Consumer management Electronics Appendix • New market Emerging Markets • Growing consumers Utility Market • High performance devices Mobile Devices • High efficiency devices P 46
Slide 47: LED and Beyond- A convergent Future
LED and Beyond- A convergent Future Consolidation • LED lighting bulb prices will be very low eventually thus increasing margin pressure • > 30% YoY price erosion requires industry productivity enhancements • Larger players obtain critical mass and sustain the technology investments Appendix Converg
Slide 48: Compound Semiconductors and Silicon – Two Different Worlds?
Compound Semiconductors and Silicon – Two Different (Converging) Worlds? • Dominated by small wafers – 2“, 4“ & 6“ Compound • Low level of automation and fab integration Semiconductors • Complex binning process required • No recognized shared Industry Roadmap Appendix • AIXTRON G5+ MOCVD Planetary r
Slide 49: 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 Appendix GaN/Si | SiC & GaN/Si competition Superjunction
Slide 50: 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 Year Company Region Status Materials Notes 2005 Showa Denko K.K
Slide 51: 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 Yield: precise process control Cost reduction: efficient material utilization, footprint efficiency Appendix R&D Applicati
Slide 52: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems Cleaning Cleaning Glass cutting ITO deposition Organic material deposition Bonding Coating Etching Appendix Cathode deposition Aging Stripping Test and repair Encapsulation Final test Front-end Back-end Array process Front-end Module process Dis
Slide 53: Organic Semiconductor Systems
Beyond LED Developments: Organic Semiconductor Systems OVPD®/PVPD®: Co-Deposition of multiple sources Multi-layer deposition RGB color-patterned OLED structure White OLED + Color Filter structure Appendix Cathode Cathode ETL EIL Red Green n-doped ETL HTL P-N contact P-N contact Blue R G B HTL p-dope
Slide 54: Silicon Semiconductor Systems
Beyond LED Developments: Silicon Semiconductor Systems Memory and emerging applications to drive ALD equipment industry Multi generation film development for memory & logic Product designed for high volume manufacturing (HVM) and offers low cost of ownership Appendix QXP-8300 production qualified fo
Slide 55: Silicon Semiconductor System Market Forecast
Beyond LED Developments: Silicon Semiconductor System Market Forecast Strong estimated Deposition Equipment spending: 5 year CAGR of 43% Memory and emerging applications to drive ALD equipment industry Multi generation film development for memory & logic Appendix 100% 4000 Sub 28 nm Deposition Equip
Slide 56: 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 Appendix 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)/expense
Slide 57: 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 Appendix Others 6.3 29.4 20.6 Non-current assets 172.4 195.8 167.7 Inventories, WIP & Finished Goods 126.0 184.6
Slide 58: 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 Appendix 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 Equiva
Slide 59: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON SE, Aachen, Germany P 59
Slide 60: AIXTRON Group Worldwide Production
AIXTRON Group Worldwide Production AIXTRON Sites AIXTRON Ltd., Cambridge, UK P 60
Slide 61: R&D: Strong Investments for the future
R&D: Strong Investments for the future R&D - a key strategic asset Research & Development R&D 2009:EUR 2010: EUR 2011: EUR 2012 : EUR spending 32.9m 46.1m 50.4m 72.9m Aachen, Sunnyvale, Germany Work as a networked USA technology matrix Collaboration with Develop closely academic with customers, rese
Slide 62: R&D Center: Accelerating technology leadership
R&D Center: Accelerating technology leadership AIXTRON Sites 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 62
Slide 63: Financial Calendar & Contact Data
Financial Calendar & Contact Data April 2013 Q1/2013 Results, Conference Call May 23, 2013 Annual General Meeting in Aachen Financial Calendar July 2013 H1/2013 Results, Conference Call October 2013 9M/2013 Results, Conference Call For further information please contact: Investor Relations & Corpora