Aixtron Se · XETR:AIXA
Aixtron — Investor Presentation (February 2014)
53 slides from Aixtron's investor presentation, Feb 25, 2014
Slide 1: IR Master Presentation – FY/2013
AIXTRON Investor Presentation IR Master Presentation – FY/2013 (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US0096061041)
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
Slide 5: Value Chain Positioning
Value Chain Positioning Production Chip & Electronic End Equipment Component Modules & Device User Manu- Packaging Manu- Markets Value Chain 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 CRIU
Slide 7: Global MOCVD Market Shares
Global MOCVD Market Shares TAM: $164m $238m $340m $185m $133m $231m $155m $202m $289m $486m $533m $1,713m $1,543m $446m 100% 90% 80% Operations 70% 60% 50% 40% 30% 20% 10% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 AIXTRON SE Veeco Instruments, Inc. Taiyo Nippon Sanso C
Slide 8: Annual Equipment Revenues by Application
Annual Equipment Revenues by Application AIXTRON Equipment Revenues (excl. spares) in EUR million 800 700 600 Operations 500 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LED Telecom/Datacom Consumer-/Optoelectronics Solar Others Silicon P8
Slide 9: Equipment Order Intake per Quarter
Equipment Order Intake per Quarter (EUR million) 250 driven by strategic China investments 200 driven by LED TV Operations driven by notebook 150 backlighting driven by telecom/datacom driven by 100 mobile phone and mobile phone penetration 50 0 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01
Slide 10: Total Revenues by Region
Total Revenues by Region 2010: 2011: 2012: 2013: €783.8m €611.0m €227.8m €182.9m 5% 0.0 Operations 6% 13% 9% 4% 35.9 4% 31.1 36.9 13% 16.9 26.3 9% 29.0 21.4 24.2 716.9 547.8 177.5 141.8 91% 90% 78% 78% Asia Europe USA P 10
Slide 11: Revenue Analysis
Revenue Analysis 2013: 2013: 2013: by equipment & spares by end application by region (equipment only) 9% 10% Operations 25% 13% 12% 39% 22% 75% 78% 5% 2% 3% 3% 4% LED Silicon Equipment Asia Power Electronics Spares USA Telecom/Datacom Consumer Electronics Europe Solar Organics Others Carbon P 11
Slide 12: 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 13: LED lighting market: multiple tipping points
LED lighting market: multiple tipping points LED Lighting Cycle Industry & Markets Various Different Numerous applications regions players LED penetration rate - value basis Overall Industrial Office Outdoor Hospitality Shop Residential Architectural 0% 10% 20% 30% 40% 50% 60% 70% 80% 2012 2016 Sour
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 m
Slide 15: 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 +/-
Slide 16: 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 17: 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 L
Slide 18: 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 Incrementa
Slide 19: Quarterly Business Development
24 - Month Business Development (€ million) Equipment (only) 31.5 30.0 34.5 35.4 29.9 30.5 35.7 37.1 Order Intake @ $1.40 @ $1.30 Financials 19.0 136.2 137.7 109.8 * 79.4 78.4 72.8 Equipment (only) 71.6 59.6 Order Backlog @ $1.40 @ $1.30 *) revalued on Jan.1, 2013 to €83.8m at $1.30/€ Total Revenues
Slide 20: Consolidated Income Statement
Consolidated Income Statement* (€ million) FY/2013 FY/2012 +/- Q4/13 Q4/12 +/- Revenues 182.9 227.8 -20% 51.1 77.5 -34% Cost of sales 190.3 227.4 -16% 33.6 59.8 -44% Gross profit -7.4 0.4 n. a. 17.4 17.7 -2% Gross Margin -4% 0% -4 pp 34% 23% +11 pp Selling expenses 29.0 34.8 -17% 7.8 9.9 -21% Genera
Slide 21: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/13 30/09/13 31/12/12 Property, plant & equipment 79.9 92.4 97.6 Goodwill 64.1 64.3 64.3 Other intangible assets 3.1 3.2 4.2 Others 5.7 5.6 6.3 Non-current assets 152.7 165.5 172.4 Inventories, WIP & Finished Goods 66.2 67.8 126.0 Trade
Slide 22: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) FY/2013 FY/2012 Q4/2013 Q3/2013 Cash Flow from operating activities 8.2 -45.2 3.4 -3.8 Cash Flow from investing activities -39.7 -4.4 -54.4 7.9 Cash Flow from financing activities 101.6 -24.3 100.2 0.2 Exchange rate changes -2.4 0.8 -0.8 -1.1 Net cha
Slide 23: 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 24: Market Prospects
Market Prospects Short-Term Further 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 Future Markets Next generation NAND, DRAM & PRAM memory ap
Slide 25: AIXTRON Investor Presentation
P 25 AIXTRON Investor Presentation
Slide 26: 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 mark
Slide 27: 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
Slide 28: China: The Progress of LED Industry Policies
China: The Progress of LED Industry Policies Phasing out of incandescent bulbs Government actions to facilitate LED lighting transition Appendix Enhance technologies development: LED fabrication, SSL basic research, etc. Consumer End-market subsidy: LED lighting bidding plan Public End-market subsid
Slide 29: 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 29
Slide 30: LED Investment Cycle
LED Investment Cycle Global demand: driven by new applications Supply: different regional investment characteristics Lighting BLUs Mobile Appendix Strong Market Aggressive Demand > Capital Supply Spending Supply § Little Capacity Demand < 2010-11 2009 Demand Added Supply China Korea Price Margin
Slide 31: LED Lighting Market Continues to Grow
LED Lighting Market Continues to Grow Declining Prices drive Growth LED lighting market 2017: LED lighting >US$20bn market 2012: Appendix US$11.8bn EU US Korea Japan 0% -10% -20% -30% -40% -50% -60% -70% -80% 60W equivalent A19 LED light bulb price change: 2010-2013 Source: Strategies Unlimited 20
Slide 32: Increasing Availability of LED Lighting Products
Increasing Availability of LED Lighting Products Government: >3,900 Energy Star qualified LED products End-Markets: Utility / Government rebate imminent Manufacturers: Shift of focus from lm/w to lm/$ Energy Star Product Release Average Luminous Efficacy 4,000 70 Appendix LED replacement Bulbs
Slide 33: Par Bulb: LED Replacement – Commercial Lighting
Par 38 Bulb: LED Replacement – Commercial Lighting Commercial Lighting: LED reaching economic tipping point Halogen CFL LED Philips- 72 Watt – Appendix Energy Saving Utilitech-26 Watt TCP PAR38 Product PAR38 PAR38 Light Bulb LED Bulb Energy used (W) 72 26 17 Equivalent to (W) 90 90 90 GE Lifetime
Slide 34: LED Cost Structure by Application
LED Cost Structure by Application LED Chip representing ca. 10% of total LED Light Bulb Manufacturing Cost LED TV Lighting 100% Phosphor Appendix 80% Packaging 60% 40% 50% 20% 40% LED Chip Process 0% 32" Edge-lit 32" Direct-lit Outdoor Area Interior LED Light LED LED TV LED TV Lamp Downlight Bulb-
Slide 35: 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 Pla
Slide 36: AIXTRON: Serving Megatrends
AIXTRON: Serving Megatrends • 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 36
Slide 37: Beyond LED: 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
Slide 38: Beyond LED: 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 q
Slide 39: Silicon Semiconductor System Market Forecast
Beyond LED Developments: Silicon Semiconductor System Market Forecast Total Deposition Equipment spending: 4 year CAGR of 9% Memory and Logic applications to drive ALD equipment industry Multi generation film development for memory & logic Future Markets 100% 8,000 Wafer Fab Equipment Shippmen
Slide 40: 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 41: 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 S
Slide 42: 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
Slide 43: 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 Future Markets Cost reduction: efficient material utilization, footprint efficiency
Slide 44: 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 45: 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
Slide 46: 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 47: Consolidated Income Statement
Consolidated Income Statement* (€ million) 2013 2012 2011 Revenues 182.9 227.8 611.0 Cost of sales 190.3 227.4 379.5 Financials Gross profit -7.4 0.4 231.4 Gross Margin -4% 0% 38% Selling expenses 29.0 34.8 32.1 General & admin expenses 18.2 19.6 34.0 R&D 57.2 72.9 50.4 Net other op. (income)/expens
Slide 48: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position* (€ million) 31/12/13 31/12/12 31/12/11 Property, plant & equipment 79.9 97.6 96.2 Goodwill 64.1 64.3 64.1 Other intangible assets 3.1 4.2 6.2 Financials Others 5.7 6.3 29.4 Non-current assets 152.7 172.4 195.8 Inventories, WIP & Finished Goods 66.2 126.0
Slide 49: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows* (€ million) 2013 2012 2011 Cash Flow from operating activities 8.2 -45.2 -6.3 Cash Flow from investing activities -39.7 -4.4 50.5 Financials Cash Flow from financing activities 101.6 -24.3 -57.5 Exchange rate changes -2.4 0.8 4.2 Net change in Cash & Cash Equiva
Slide 50: AIXTRON Sites: Aachen, Germany
AIXTRON Sites AIXTRON Group Worldwide Production AIXTRON SE, Aachen, Germany P 50
Slide 51: AIXTRON Sites: Cambridge, UK
AIXTRON Sites AIXTRON Group Worldwide Production AIXTRON Ltd., Cambridge, UK P 51
Slide 52: 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 52
Slide 53: Financial Calendar & Contact Data
Financial Calendar & Contact Data April 29, 2014 Q1/2014 Results, Conference Call May 14, 2014 Annual General Meeting, Aachen July 29, 2014 H1/2014 Results, Conference Call October 28, 2014 9M/2014 Results, Conference Call For further information please contact: Investor Relations & Corporat