Credit Suisse 10th Annual European Technology Conference May, London Paul Hyland President & Chief Executive Officer

Transcription

1 (FSE: AIX, ISIN DE ; NASDAQ: AIXG, ISIN: US ) Credit Suisse 10th Annual European Technology Conference May, London Paul Hyland President & Chief Executive Officer

2 Forward-Looking Statements 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 Litigation Reform Act of Words such as may, will, expect, anticipate, contemplate, intend, plan, believe, continue and estimate, and variations of these words and similar expressions, identify these forward-looking statements. The forward-looking statements reflect our current views and assumptions and are subject to risks and uncertainties. You should not place undue reliance on the forwardlooking statements. The following factors, and others which are discussed in AIXTRON s public filings and submissions with the U.S. Securities and Exchange Commission, are among those that may cause actual and future results and trends to differ materially from our forward-looking statements: actual customer orders received by AIXTRON; the extent to which chemical vapor deposition, or CVD, technology is demanded by the market place; the timing of final acceptance of products by customers; the financial climate and accessibility of financing; general conditions in the thin film equipment market and in the macro-economy; cancellations, rescheduling or delays in product shipments; manufacturing capacity constraints; lengthy sales and qualification cycles; difficulties in the production process; changes in semiconductor industry growth; increased competition; exchange rate fluctuations; availability of government funding; variability and availability of interest rates; delays in developing and commercializing new products; general economic conditions being less favorable than expected; and other factors. The forward-looking statements contained in this presentation are made as of the date hereof and AIXTRON does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law. Slide: 2

3 AIXTRON Enabling Global Solutions AIXTRON AG, Aachen AIXTRON AG, Herzogenrath Epigress AB, Lund AIXTRON Ltd., Cambridge AIXTRON Inc., Sunnyvale Shanghai, China Seoul, S. Korea Tokyo, Japan Hsinchu, Taiwan Slide: 3

4 Gas Phase Deposition Material Engineering on an Atomic Scale Slide: 4

5 AIXTRON Planetary Reactor Injector Reactor Chamber Wafer Slide: 5

6 Value Chain Positioning Production Equipment Manufacturers Chip & Component Manufacturers Electronic Device Manufacturers End User Markets Consumer Communication Industrial Display Lighting Medical Automotive Slide: 6

7 One Technology Multiple Solutions Business Gas Phase Deposition Nano Scale Material Engineering Technology Applications Compound Semiconductors MOCVD, OVPD LEDs/OLEDs for displays LEDs/OLEDs for lighting Optoelectronics for telecom/datacom Organic Electronics for flexible displays and RFID CD-, DVD-lasers High frequency for wireless High power SiC III-V Compound and Organic solar cells Carbon Nanotube Structures Silicon Semiconductors AVD, ALD, CVD Metal and oxide films for CMOS transistors Traditional NAND-Flash Memory Traditional, next generation DRAM Memory TFH Thin Film Heads for data storage hard disk drives Slide: 7

8 System Technologies Compound Silicon Planetary Reactor Close Coupled Showerhead Tricent AVD Silicon Compound Compound Lynx CVD OVPD Silicon Compound Hot Wall SiC CVD Nanoinstruments Black Magic Tricent ALD Slide: 8

9 Compound Platform Systems Rapid adoption by customer base Established industry standard Production volume increased in 2007 c.79% of Q1/08 Equipment Orders (72% in 07) c.66% of Q1/08 Revenues (48% in 07) Planetary Reactor AIX 2800G4, 42x2 Integrated Concept (IC) System Close Coupled Showerhead CRIUS, 31x2 Slide: 9

10 Global MOCVD Market Shares Operating Performance Total: $156m 6% 13% 17% 64% AIXTRON Veeco Nippon Sanso 2006 Total: $202m 20% 14% 4% 62% 18% 2007 Total: $289m 10% 2% 70% Others Source: VLSI RESEARCH Inc Slide: 10

11 Silicon Semiconductor Systems Consumer Electronics continue to drive the NAND flash and DRAM industry Comprehensive AIXTRON-portfolio: CVD, ALD, AVD Fab ramp-up with established CVD customers ALD/AVD : film qualifications for new materials in transistors & capacitors Combined ALD/AVD technology (JDP with Asian Semicon leader) ALD/AVD System Tricent ALD Reactor 1 x 300mm Lynx CVD Reactor 1 x 300mm Slide: 11

12 Global CVD Market Shares for WSi x 2006 Total: $109m 2007 Total: $84m 15% 3% Elpida-PSC 12% 2% Hynix 48% Micron 24% Samsung 34% Qimonda 62% ProMos AIXTRON Applied Materials Tokyo Electron Others based on VLSI RESEARCH Inc Slide: 12

13 Equipment Revenues by Application Diversification of Equipment Revenue Base (excl. spares): 2005: 113.4m 2006: 143.1m 2007: 186.9m Q1,2008: 62.6m 3% 5% 58% 32% 22% 0% 2% 15% 13% 0% 2% 15% 44% 9% 5% 61% 78% 5% LED Display & Others Consumer/Optoelectronic Telecom/Datacom Silicon Slide: 13

14 High Brightness LED Market Forecast HB LED summary forecast by application % 16% 15% Market Size (USD million) % 1% % % % 40% Signs / Displays Mobile Appliances 12% Signals Illumination Automotive Electronic equip. / Other 1% 23% Source: Strategies Unlimited 2007 Slide: 14

15 AIXTRON Global Presence Ltd. Cambridge, UK Lund, Sweden AB Seoul, South Korea cshs Tokyo, Japan KK Inc. Sunnyvale, USA AG Aachen, D Headquarters Taiwan Co., Ltd. AG Shanghai, P.R. China Representation Slide: 15

16 Revenues by Region (81%) ( million) (79%) (74%) 174,1 135,2 103 (83%) (10%) (16%) (13%) (9%) (10%) (8%) 14,3 14,3 21,9 (10%) 6,6 22,1 22,2 18,8 (7%) 4,1 51, <Q1/08 USA <Q1/08 Europe <Q1/08 Asia Slide: 16

17 Business Development Q1/2008 Revenues Equipment 1) Order Intake Main drivers Compound Semiconductors (including Organics) 47.8m equipment 1) revenues (+10% yoy) 76% of total 2) revenues 77.3m (+161% yoy) 90% of equip.order intake Industry preparation for LED-Backlighting applications continue More multiple scheduled orders received Silicon Semiconductors 8.3m equipment 1) revenues (-40% yoy) 13% of total 2) revenues 8.2m (-25% yoy) 10% of equip.order intake Current market conditions constrain capital spending Next-generation AIXTRON systems ready for launch in ) Excluding spares/services; 2) including spares/services Slide: 17

18 Q1/2008 Key Financials Year-on-Year Comparison (Q1/2008 vs. Q1/2007) ( million, unaudited) Q1/2008 Q1/2007 Variance Equipment Order Intake 85,5 40,5 111% Equipment Order Backlog (end of period) 157,3 70,0 125% Revenues 62,6 63,8-2% Gross Profit 24,5 24,2 1% Gross Margin 39% 38% +1 pp EBIT 8,7 8,2 6% EBIT Margin 14% 13% +1 pp Net Result 5,9 7,6-22% EPS ( ) 0,07 0,09-22% Cash & Cash Equivalents (end of period) 68,6 43,7 57% Free Cash Flow 12,9 (6,1) Slide: 18

19 Q1/2008 Key Financials Sequential Quarterly Comparison (Q1/2008 vs. Q4/2007) ( million, unaudited) Q1/2008 Q4/2007 Variance Equipment Order Intake 85,5 86,9-2% Equipment Order Backlog (end of period) 157,3 132,0 19% Revenues 62,6 54,1 16% Gross Profit 24,5 22,6 8% Gross Margin 39% 42% -3 pp EBIT 8,7 4,3 102% EBIT Margin 14% 8% +6 pp Net Result 6,0 2,4 150% EPS ( ) 0,07 0,03 133% Cash & Cash Equivalents (end of period) 68,6 71,9-5% Free Cash Flow 12,9 22,1 Slide: 19

20 Euro/US-Dollar Exchange Rate 2007 Financial Performance 2007 EUR/USD US-Dollar vs. EURO: -12% US-Dollar falls by 12% Average Rate 2007: USD 1.37 per Euro Average Rate 2007: 0.73 EUR/USD or 1.37 USD/EUR Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Slide: 20

21 24 - Month Business Development ( million) Equipment (only) Order Intake 49,5 52,3 44,5 40,5 50,3 70,0 86,9 85,5 Equipment (only) Order Backlog 81,2 98,3 85,1 70,0 80,3 102,8 132,0 157,3 81,2 98,3 85,1 70,0 80,3 102,8 132,0 157,3 Total Revenues (incl. equipment, service, spare parts) 35,7 40,9 63,1 63,8 45,2 51,7 54,1 62,6 Slide: 21 Q2/2006 Q3/2006 Q4/2006 Q1/2007 Q2/2007 Q3/2007 Q4/2007 Q1/2008

22 2008 Guidance Model ( million) Equipment orders required for 2008 revenue Q1/2008 actual total revenue Assumed Q2-Q spares/non-system revenue Guidance: m Revenues 10-12% EBIT Margin 2008 equipment revenue from order backlog (out of 157m) Slide: 22

23 Target Market Opportunities Short -Term LED backlighting for next generation LCD screens LEDs for increasing automotive applications Emerging LED external/street lighting applications Mid-Term Emerging Solid State Lighting device applications Silicon carbide (SiC) hybrid automotive & solar applications CVD/ALD: NAND/DRAM memory next generation applications Concentrator solar cells, III-V photovoltaics Development of plastic electronics/flexible TFT Backplanes Long-Term OLED: Promising longer term development technology III-V Silicon material convergence Development of applications using Carbon Nanotubes CNT Slide: 23

24 2008 Financial Calendar & Contact Data August 7, 2008 November 6, 2008 March 12, 2009 May 7, 2009 May 20, 2009 Q2/2008 Results conference in Frankfurt Q3/2008 Results, conference call Q4/2008 Results conference in Frankfurt Q1/2009 Results, conference call Annual General Meeting at Eurogress in Aachen For further information please contact: Investor Relations & Corporate Communications Guido Pickert AIXTRON AG Kackertstr Aachen, Germany Phone: Fax: Slide: 24

25 Slide: 25 File:

26 AIXTRON Share Price Development 2007 Share Price and Outlook AIXTRON TecDax indexed 2007: + 185% 3.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Slide: 26

27 Q1/2008 Group Income Statement (IFRS) Year-on-Year Comparison (Q1/2008 vs. Q1/2007) ( million)* Q1/2008 Q1/2007 Variance Revenues 62,6 63,8-2% Cost of sales 38,1 39,7-4% Gross profit 24,5 24,1 2% Gross Margin 39% 38% +1pp Selling Expenses 8,0 6,9 16% General Admin. Expenses 4,5 4,3 5% R&D 6,8 7,1 4% Other operating income (expense) 3,5 2,4 46% EBIT 8,7 8,2 6% EBIT Margin 14% 13% +1pp Result before tax 9,4 8,5 11% Pre-Tax Margin 15% 13% +2pp Net result 6,0 7,8-23% Net Return on Sales 10% 12% -2pp Slide: 27 * Quarterly numbers are unaudited

28 Q1/2008 Group Balance Sheet (IFRS) Balance Sheet Development (Q1/2008 vs. Q4/2007) ( million)* Mar.31, 2008 Dec.31, 2007 Property, plant & equipment 36,5 35,1 Goodwill 55,0 59,0 Other intangible assets 11,3 12,5 Others 8,7 10,9 Non-current assets 111,5 117,5 Inventories 67,8 60,0 Trade receivables 32,5 33,5 Others 32,8 13,9 Cash & Cash Equivalents 68,6 71,9 Current Assets 201,7 179,3 Shareholders' equity 199,5 198,4 Non-current liabilities 2,3 2,4 Trade payables 25,5 23,8 Advanced payments from customers 61,4 50,0 Others 24,6 22,2 Current liabilities 111,5 96,0 Balance Sheet total 313,3 296,8 Slide: 28 * Quarterly numbers are unaudited

29 New Technologies New Opportunities Operating Performance 2007 Development of New Tool for Plastic Logic Plastic Electronics Deposition with AIXTRON Gen 3.5 tool Slide: 29

30 New Technologies New Opportunities Acquisition of Nanoinstruments, Ltd. Carbon Nanotubes Unique Properties Very high thermal conductivity Very low resistivity Very high mechanical stability Application Examples Electronics Heat Sinks Field Emission Display Graphene sheet Carbon Nanotube structure Roll-up Slide: 30

31 Advanced Technology Requirements 1000 CVD Word Line DRAM Metal Control Gate NAND Layer thickness [Å] Metal Electrode and High-k Dielectric edram AVD Atomic Level Solutions Metal Electrode and High-k Dielectric DRAM ALD 1 Slide: Aspect ratio

32 Films for Logic and Memory Transistors Metal / Metal Silicide on Poly Gate CVD Metal Gate AVD High-k Gate Dielectrics AVD Stack DRAM Capacitors ALD (Dielectric) ALD + AVD (Electrode) Sidewall Spacers ALD + AVD FeRAM Capacitors AVD Shallow Trench Isolation ALD Integrated Capacitors AVD Flash Floating Gate Interpoly & Tunnel Oxide ALD + AVD Slide: 32 edram Capacitors AVD Trench DRAM ALD (Dielectric) ALD + AVD (Electrode)

33 Slide: 33

34 Slide: 34 Table of Contents Financial Performance 2007 Shareholder Meeting 2008 Shareholder Meeting 2008

35 Key Group Financials 2007 Financial Performance 2007 ( million) Variance Equipment Order Intake % Equipment Order Backlog (end of period) % Revenues % Gross Profit % Gross Margin 40% 37% +3pp EBIT % EBIT Margin 10% 3% +7pp Net Result % EPS ( ) % Cash & Cash Equivalents (end of period) % Free Cash Flow % Slide: 35

36 Group Income Statement 2007 (IFRS) Financial Performance 2007 ( million) Variance Revenues 214,8 171,7 25% Cost of sales 129,8 108,3 20% Gross profit 85,0 63,4 34% Gross Margin 40% 37% +3pp Selling Expenses 27,2 23,4 16% General & Admin. expenses 16,0 17,3-8% R&D 26,5 23,9 11% Other operating income (expense) 5,3 6,8-22% EBIT 20,6 5,6 268% EBIT Margin 10% 3% +7pp Result before tax 22,4 6,6 239% Pre-Tax Margin 10% 4% +6pp Net result 17,3 5,9 193% Net Return on Sales 8% 3% +5pp Slide: 36

37 Group Cash Flow Statement (IFRS) Financial Performance 2007 ( million) Cash Flow from operating activities 32,9 20,8 of which: net income (loss) after taxes 17,3 5,9 Cash Flow from investing activities (10,5) (5,1) Cash Flow from financing activities 2,9 (0,3) [incl. exchange rate changes] Net change in Cash & Cash Equivalents 25,2 15,3 Cash & Cash Equivalents at the end of period 71,9 46,8 Slide: 37

38 Group Balance Sheet 2007 (IFRS) Financial Performance 2007 ( million) Dec 31, 2007 Dec 31, 2006 Property, plant & equipment Goodwill Other intangible assets Others Non-current assets Inventories Trade receivables Others Cash & Cash Equivalents Current Assets Shareholders' equity Non-current liabilities Trade payables Advanced payments from customers Others Current liabilities Balance Sheet total Slide: 38

39 Slide: 39

40 AIXTRON Group Worldwide Production AIXTRON AG, Aachen-Herzogenrath/Germany Slide: 40

41 AIXTRON Group Worldwide Production AIXTRON AG, Aachen-Herzogenrath/Germany Slide: 41

42 AIXTRON Group Worldwide Production AIXTRON Ltd., Cambridge/UK Slide: 42

43 AIXTRON Group Worldwide Production AIXTRON Inc., Sunnyvale/USA Slide: 43

44 Slide: 44