LPKF Laser & Electronics AG. Enabling Miniaturization & Digitization Based on 6-Months-Report 2018

Transcription

1 LPKF Laser & Electronics AG Enabling Miniaturization & Digitization Based on 6-Months-Report 2018

2 Content Company Overview Financial Report Q and Outlook Strategic Approach and Goals Investment Highlights Fact Book: Product Portfolio Glossary of technical terms LPKF Laser & Electronics AG 2

3 Company Overview LPKF Laser & Electronics AG 3

4 LPKF at a Glance Leading global photonics provider for micro processing Highly specialized mechanical engineering company Leading supplier of laser-based micro material processing tools Enabler of miniaturization and digitization Full-solution provider with strong innovation pipeline Development Solar Segments Electronics Welding International player Presence in 78 countries; Export share of 90 % Almost 700 employees world-wide Engineering and technological know-how rooted in Europe Revenue by region in % after 6 months ,7 12,1 17,3 56,9 Germany Europe N. America Asia Specialist business in dynamic markets Profitable growth Highly specialized segments for clients in Research & Development, Consumer Electronics, Medical Devices, Automotive and Solar Focus on fundamental production innovations with distinct USPs Capturing growth opportunities by creating new markets Revenue by segment in million after 6 months ,8 21,4 15,8 10,4 Development Electronics Welding Solar 58 million EUR revenue after 6 months 2018 Positive EBIT ( 2.3 million) after 6 months 2018 Goal for 2018: EBIT margin up to 6%, strong ROCE between 2 and 7% Growth drivers: Miniaturization & Digitization EBIT development in million 0.1 Q Q Q Q ,6 Q LPKF Laser & Electronics AG 4

5 World-wide Megatrends Supporting Strong Growth Miniaturization High-precision lasers for ever smaller components Digitization Tool-free production by lasers Life Science and Medical Diagnostics Innovative production processes for microfluidic devices Renewable Energy Increase efficiency of solar modules with laser technology LPKF Laser & Electronics AG 5

6 Unique Skill Set Laser Technology and Optics Micro Material Processing with Lasers Control Technology and Software Laser source development & production Proprietary process know how Combination of expertise in chemistry, physics, engineering and software Group-wide machine software framework Precision Drive Technology Materials Technology 10% of revenue p.a. is spent on R&D Low degree of vertical integration LPKF Laser & Electronics AG 6

7 Global Markets and Partners Strong presence in growing regions Total export share: 90 % Revenue by region after 6 months 2018 in % 12,7 12,1 17,3 56,9 Germany Europe N. America Asia Extensive global sales & service network Engineering and technological know how in Europe Proximity to customer LPKF Laser & Electronics AG 7

8 Specialist Business on Four Strong Pillars Addressing specific customer needs using combined competencies LPKF Laser & Electronics AG Development Electronics Welding Solar Leveraged utilization of expert know how and own cutting-edge technologies across all segments Generation of synergies across segments Diversified market approach decentralizes commercial risks and provides access to several key growth markets Systems for PCB Prototyping and Research Systems for Electronics Production Systems for Plastic Welding Systems for Solar Module Production and Laser Transfer Printing LPKF Laser & Electronics AG 8

9 42 years Pioneering Spirit and Perseverance 1976 Foundation 1992 Presentation of the first StencilLaser 2000 First location in China established; LPKF starts with laser plastic welding technology 2006 LPKF-LDS process used in series production 2011 New subsidiary in Japan 2013 New subsidiary in South Korea 2017 Productronica Innovation Award for LIDE 1989 LPKF starts with laser technology 1998 LPKF is listed at the Stock Exchange 2001 Laser system for the circuit board industry 2007 LPKF starts with solar technology 2012 LPKF becomes leading provider for solar scribers 2015 Acquisition of LTP start-up 2018 First sale of a LIDE system 2010 Hermes Award for LDS technology Breakthrough for industrial UV laser cutting LPKF Laser & Electronics AG 9

10 Financial Report Q and Outlook LPKF Laser & Electronics AG 10

11 Revenue and EBIT: Long Term Development In million Revenue Guidance range EBIT Strong growth in sales and EBIT until 2013 driven mainly by highly successful segment Electronics (LDS technology) Radical slow down of sales and EBIT due to LDS overcapacity and changes in market environment and 2018 benefiting from disciplined cost management as well as growth in the Solar, Development and Electronics segments e e * An EBIT of up to 6.5 million is assumed. LPKF Laser & Electronics AG 11

12 Key Group Figures: Q2 and 6 months 2018 In million Q Q % 6 months months 2018 Revenue EBIT EBIT margin (%) ROCE (%) Earnings per Share ( ) Free cash flow Incoming orders Orders on hand % Revenue in the first half of 2018 includes purchased components (approx. 5.0 million) which were resold to customers with small surcharges Restructuring costs: 1. HJ 2018: 1.3 million Q2 2018: 1.0 million Positive trend of incoming orders continues in Q2 2018; book-to-bill ratio of 1.2 Orders on hand in solar: 1. HJ 2018: 35.3 million 1. HJ 2017: 29.8 million Employees (total number) LPKF Laser & Electronics AG 12

13 Revenue by segment: Q2 and 6 months 2018 Revenue in million Q Q % 6 months 2017 Electronics Development 6 months 2018 % Electronics: Strong sales in Q from major project: 6.9 million in 1. HJ million in 1. HJ 2017 Welding: Strong sales in Q from major project: 2.1 million in 1. HJ million in 1. HJ 2017 Welding Solar Solar: Strong sales in Q from large order including approx. 5 million for components Total LPKF Laser & Electronics AG 13

14 EBIT by segment: Q2 and 6 months 2018 EBIT in million Q Q % 6 months 2017 Electronics Development 6 months 2018 % Welding Electronics: Earnings were impacted by restructuring costs of approx. 1.3 million and a devaluation of receivables of approx. 0.5 million Development: Solid revenue growth with reduced cost basis Welding: Weak Q1, improvement of profitability is major task and top management priority Solar Solar: Strong revenue mainly with one customer Other Total LPKF Laser & Electronics AG 14

15 Balance Sheet Structure as per June 30, 2018 In million 31 Dec June 2018 % Total assets Cash and cash equivalents Equity Net financial debt In million 12M M 2018 % Net working capital Net working capital increases due to extraordinary high revenue in May and June plus an increase in accounts receivables Net working capital is decreasing due to receipt of payments after reporting date Equity ratio remains on quite high level influenced by positive EBIT and a temporary extension of the balance sheet total Equity ratio (%) LPKF Laser & Electronics AG 15

16 Free Cash Flow as per June 30, 2018 In million 6M M 2018 % Net cash used in/generated by operating activities Free Cash Flow expected to be clearly positive for full year 2018 Net cash used in investing activities Free cash flow Net cash generated from/used in financing activities Cash funds* (net) * Cash and cash equivalents minus current account liabilities to banks LPKF Laser & Electronics AG 16

17 Investments e In million Development costs Land and buildings Other , : Investment in production hall for solar systems 2018: Investment in clean room for LIDE No major investments planned except for development activities e LPKF Laser & Electronics AG 17

18 Guidance 2018 ff. For 2018, the Management Board anticipates Group sales of between 110 and 115 million (previously: 103 and 108 million) and a return on capital employed (ROCE) of between 2 and 7%, assuming a stable development of the global economy. An EBIT margin of up to 6% is still assumed. LPKF aims to generate ROCE between 10 and 15% by This improvement is expected to result from growing business, especially with new products, and an optimized fixed cost base. LPKF Laser & Electronics AG 18

19 Strategic Approach and Goals LPKF Laser & Electronics AG 19

20 Strategy Strictly focusing on customer benefits and profitability VISION Light is THE tool of the future. MISSION As specialist for laser technology we enable miniaturization and digitization. CUSTOMER BENEFITS Precision Flexibility FOCUS: Design CUSTOMER Freedom BENEFIT Efficiency - Quality Market & Customer Product & Innovation Employees, Finance & Resources Processes & Organization Anticipate future customer needs Enhance customer proximity Develop new product markets Shift product portfolio towards more profitable mix Accelerate transfer of innovation to marketable product Retain & develop key employees Increase capital efficiency Increase efficiency Reduce complexity / increase transparency Improve cost structures LPKF Laser & Electronics AG 20

21 Returning to Profitability Restructuring on course - building a platform for sustainable growth Refocusing business 2018 Improve profitability Sustainable growth Restructuring program Build robust platform for sustainable future growth Major investments in innovative products 2017: Return to profitability Shift product mix to profitable sales Continue cost discipline & further streamlining Focus on ROCE Keep organization flexible Improve profitability of the Welding and Electronics segments Capture growth opportunities in the Solar segment Strengthen healthy business in the Development segment Create new markets with growth potential Aim for sustainable growth Manage volatile business Capture strong growth opportunities Develop markets for new products LPKF Laser & Electronics AG 21

22 Average market growth Portfolio in 2018e Electronics (LIDE) Electronics (PCB) BCG-Matrix Solar (LTP) Welding Solar Diverse and balanced portfolio High growth potential from six product groups Development Electronics (LDS) Electronics (Stencils) Relative market share LPKF Laser & Electronics AG 22

23 New CFO to join in September 2018 Christian Witt Born in 1971, holds a Master Degree in Economics Many years of experience as CFO in industrial and high-tech companies Has expanded business models for internationally active companies in Germany and abroad Has extensive knowledge in Controlling, Treasury, M & A and Compliance Prior experience includes: CFO at Bragi Group, Munich, Inventor of Hearable and Body Area Computing CFO at Wittur Group, Global market leader for elevator components Christian Witt Chief Financial Officer (CFO) Various leading positions at Daimler AG LPKF Laser & Electronics AG 23

24 Investment Highlights LPKF Laser & Electronics AG 24

25 Investment Highlights Photonics specialist for innovative engineering 1 Markets Leading global provider of laser applications in growing and dynamic markets. 2 Megatrends Miniaturization and digitization need laser technology. 3 Innovation Several high potentials in product pipeline. 4 Global network Sales and service network in the USA, Europe and Asia. 5 Timing Back in the black and moving towards profitability and growth. LPKF Laser & Electronics AG 25

26 The LPKF Share at a Glance Share price development August 2017 August 2018* Analyst coverage Warburg Research GmbH, Marius Fuhrberg and Malte Schaumann ODDO BHF AG, Felix Lutz Hauck & Aufhäuser, Robin Brass EQUI.TS GmbH, Thomas Schießle HSBC, Richard Schramm Quirin Privatbank AG, Klaus Soer Shareholder structure 71 % freefloat German Technology AG and Jörg Bantleon as anchor shareholders Further shareholders: Foyer Finance > 5% Lazard Frères > 5% Société Générale > 3% 18,2% 10,4% 71% Freefloat German Technology AG Jörg Bantleon Investor relations contact Bettina Schäfer bettina.schaefer@lpkf.com Tel: Katja Rust katja.rust@lpkf.com Tel: * source: ariva.de LPKF Laser & Electronics AG 26

27 Fact Book: Product Portfolio LPKF Laser & Electronics AG 27

28 Segment Development at a Glance Leading in Rapid Prototyping world-wide Markets/customers/applications Universities Schools R & D in industry Strategic goals Expanding market leadership Update product range Enter scientific market PCB Prototype ProtoLaser Market position and competition Financial development Extensive world-wide sales & service network Competitors: MITS (J), Accurate CNC (USA) and other smaller suppliers Approx. 60 % market share In million Revenue EBIT LPKF Laser & Electronics AG 28

29 Segment Electronics at a Glance Cutting lasers for the production of SMT solder paste stencils Markets/customers/applications Electronics industry Manufacturers of SMT stencils Strategic goals Expanding market leadership Opening up new client groups SMT Stencil StencilLaser Market position and competition Financial development* Competitors: Tannlin Ltd. (UK), Nippon Sharyo (JP) and other smaller providers Approx. 65 % market share In million Revenue EBIT * Financial Development of the entire Electronics segment LPKF Laser & Electronics AG 29

30 Segment Electronics at a Glance Laser systems for cutting and drilling printed circuit boards (PCBs) Markets/customers/applications OEMs, PCB manufacturers and PCB assemblers Printed-Circuit-Boards Strategic goals Become the preferred supplier of leading electronics manufacturers Broaden customer base with new technologies MicroLine 5000 Market position and competition Financial development* Competitors: ESI (USA), Schmoll (D), EO Technics (KR) and VIA Mechanics (JP) Market leader in cutting In million Revenue EBIT * Financial Development of the entire Electronics segment LPKF Laser & Electronics AG 30

31 Segment Electronics at a Glance LIDE: Ultra fine drilling and cutting of very thin glass Markets/customers/applications Strategic goals Electronic components Micro Systems/Sensors Micro-electro-mechanical systems (MEMS) Micro-optical-components IC Packaging Display Microscopic holes and hole shapes in Deliver best solution for thin glass machining and achieve market leadership Unleash full potential of thin glass in electronics and micro systems technology Develop customer base in IC substrate and micro systems industry glass wafers Vitrion 5000 Market position and competition Awards Patented process Competition: Alternative technologies (e.g. Coherent) Large glass producers (Corning, USA) Small specialized glass producers LPKF Laser & Electronics AG 31

32 Segment Welding at a Glance Laser welding of plastic components Markets/customers/applications Strategic goals Automotive supplier Medical devices Consumer electronics Application example tail light Become the preferred supplier of international companies Achieve global market leadership Increase profitability PowerWeld 3D Market position and competition Asia: Top 3 Competitors: Bielomatik, Evosys, Gefasoft, Branson, Coherent (USA) and Leister (CH) Market leader in Europe Financial development* In million *In the fiscal year 2015, the segments Welding and Solar were shown separately for the first time; prior to that they were summarized in the Other segment Revenue EBIT LPKF Laser & Electronics AG 32

33 Segment Solar at a Glance Photovoltaic thin film technology: structuring thin film solar panels Markets/customers/applications Thin film solar module manufacturers CIGS and CdTe technology Thin-Film Solar Module Strategic goals Further improve competitiveness of thin-film technologies Increase CIGS market share Further increase customer base Allegro Market position and competition Competitors: Mitsuboshi Diamond Industrial (JP) and Manz (D) Market leader Financial development* In million Revenue *In the fiscal year 2015, the segments Welding and Solar were shown separately for the first time; prior to that they were summarized in the Other segment; Financial Development of the entire Solar segment EBIT LPKF Laser & Electronics AG 33

34 Segment Solar at a Glance Laser Transfer Printing (LTP): digital printing of functional paste Markets/customers/applications Automotive glass manufacturers Flat glass manufacturers Individualized, Accurate Printing Strategic goals Deliver best solution for printing ceramic inks based on original screen printing pastes on glass Partly replace screen printing in industrial applications Verify LTP in production environment Develop cost-effective solution for serialized logo printing LTP Printer Market position and competition First supplier with several patents Competition: Alternative technologies, e.g. screen printing and ink-jet Financial development* In million Revenue *In the fiscal year 2015, the segments Welding and Solar were shown separately for the first time; prior to that they were summarized in the Other segment; Financial Development of the entire Solar segment EBIT LPKF Laser & Electronics AG 34

35 Glossary of technical terms EBIT Earnings Before Interest and Taxes EBIT margin Operating profit as a percentage of revenue Free float According to the definition of Deutsche Börse, shares held by asset managers, funds and pension funds, investment companies or foreign investment companies count as free float. German Technology is an exception, since the shareholder has positioned himself as a long-term anchor shareholder. FTE (Full-Time-Equivalent) A labor comparison metric, FTE expresses the workforce in terms of the compensable workload handled by a full-time employee (i.e. working a standard, full-time schedule). LDS technology (Laser Direct Structuring) A laser-based manufacturing process for threedimensional circuit carriers, otherwise known as molded interconnect devices (MIDs), made of plastic, which also handle mechanical functions. LIDE (Laser Induced Deep Etching) High-precision method for machining glass. LIDE enables the creation of ultra high-precision holes and structures in glass at very high speeds, and also includes the TGV method. LTP method (Laser Transfer Printing) A method for digitally printing functional pastes as an alternative to screen printing. PCB Printed circuit board Rapid prototyping A method for the chemical-free manufacture of prototype printed circuit boards in in-house laboratories. ROCE Return on Capital Employed StencilLasers Laser systems for cutting fine, highly precise openings in a stainless steel template (stencil). Stencils are used for the precision printing of solder paste onto printed circuit boards - a vital technique for today s closely packed PCBs. Thin-film solar panels Thin-film solar panels are manufactured by coating a sheet of glass or a film with extremely thin layers. A laser divides each layer into strips to enable the series connection of cells in the finished module. LPKF Laser & Electronics AG 35

36 Legal Notice Disclaimer Disclaimer regarding forward-looking statements This document contains forward-looking statements and statements on future expectations which reflect the current opinions and expectations of the management with respect to future events. These statements are subject to known and unknown risks and uncertainties which can neither be controlled nor precisely estimated by LPKF Laser & Electronics AG, and which could cause actual results, performances and events to differ materially from those forecast or indicated here. Actual results, performances and events may deviate to an unlimited extent as a consequence of: (i) general economic conditions, (ii) future changes in the performance of the financial markets, (iii) interest rates, (iv) currency exchange rates, (v) the behavior of other market participants, (vi) general competitive factors, (vii) changes in laws and regulations, (viii) changes in the policies of central banks, government authorities and/or (foreign) governments, (ix) regional and/or global conditions. LPKF assumes no liability and does not intend to update any forward-looking statements to reflect any events or conditions the take place after the publication of this material. No updating LPKF AG assumes no liability for the (correctness and completeness of the) information contained herein, and does not intend to update this material. No offer This presentation is merely intended to provide information and is not an investment recommendation. It is not an offer and is merely intended for general information purposes. All the descriptions, examples and calculations contained in this presentation are only provided for the purpose of illustration. Registered trademarks All the names and trademarks referred to in this document are covered by unlimited copyright laws, and may not be used without the express permission of the relevant registered owners. The fact that they are mentioned in this document does not imply that they are not protected by the rights of third parties or companies. LPKF Laser & Electronics AG, 2017 LPKF Laser & Electronics AG 36

37 LPKF Laser & Electronics AG Thank you! LPKF Laser & Electronics AG