ROFIN-SINAR Technologies Inc. Investor Presentation Nasdaq RSTI US 7750431022 WKN 902757 Fiscal Year 2013
SAFE HARBOR STATEMENT Introduction Safe Harbor Statement Under the Private Security Litigation Reform Act During the course of this presentation, we will make projections or other forward-looking statements regarding future events or the future financial performance of the Company. We wish to caution you that such statements reflect only our current expectations, and that actual events or results may differ materially. We refer you to the risk factors and cautionary language contained in the documents that the Company files from time to time with the Securities and Exchange Commission, including the Company s Annual Report on Form 10-K for the fiscal year ended September 30, 2012*. Such documents contain and identify important factors that could cause our actual results to differ materially from those contained in our projections or forward-looking statements. We undertake no obligation to update such projections or such forward-looking statements in the future.. * Form 10-K for FY 2013 will be filed with the SEC on Nov. 29, 2013 Page 2
Standort Hamburg ROFIN AT A GLANCE Company is a global leader in the development and manufacture of lasers and laser-based technologies for industrial material processing applications Company Brief Revenue Snapshot Headquartered in Plymouth, MI, and Hamburg (Germany) FY 2013: FY 2012: $560.1 million $540.1 million Worldwide > 2,200 employees Over 4,000 customers around the globe Macro 38% Components 13% Micro & Marking 49% Global production, sales & service network Installed base of 45,000 laser units Revenues with service & spare parts typically > 25% of revenues Split by application FY2013 Asia 35% Europe 45% North America 20% Split by region FY2013 Page 3
FOCUSED SALES - The Group s Brands Company Page 4
TECHNOLOGIGAL COMPETENCE Technologies Technologies Primary Applications Gas lasers: CO 2 lasers Solid-state lasers: Fiber lasers Lamp + diode-pumped lasers Ultra-short pulse lasers Semiconductor lasers: Diode lasers Cutting, welding, surface treatment (i.e. structuring), perforating, drilling, marking Cutting, welding, surface treatment (i.e. ablation, structuring, cleansing), drilling, marking Heat conduction welding, brazing, hardening, soldering Technology Page 5
MARKETS & GROWTH DRIVERS Company Total Net Sales: FY 2013: Primary Markets FY 2012: $560.1 million (thereof laser-related: $343.2 million) $540.1 million (thereof laser-related: $328.7 million) Current Market Situation Machine tool 37% Automotive & Sub-Suppliers 8% Consumer electronics Photovoltaics 27% Semiconductor Medical device industry Flexible packaging Others (i.e. M&D, Watch, Jewelry) As percentage of laser-related sales 28% Good fiber laser demand; High-volume orders for high-power CO 2 lasers missing (China) Highlight: low-power CO 2 lasers Good sales level for Micro & Marking applications; Solid project level (esp. for new Micro application); Expect improving order entry from this sector Good project base; new device/product introductions trigger business; applications: sapphire cutting, marking, plastic processing Weak business level in FY13; New fab projects in China; potential for laser applications for efficiency increase of solar cells Business weaker in FY2013; current trend: slow business for backend applications but good projects i.e. for annealing IGBTs NA weaker to new tax, but upside potential in the coming quarters (new laws requiring tracking); Good potential in Asia Business is generally project-based M&D: Depending mainly on US programs and budget trends; Watch industry: Switzerland-based Page 6
KEY FINANCIALS - Historical Overview Financials 700 In Mio. USD Order Entry Revenue Order Backlog Net Income * 12M/2013 70 600 500 50 55 511 480 64 602 575 Financial Crisis 475 60 612 598 Net Income: 34.8 Mio. 560 534540 531 60 50 400 300 33 336 323 38 379375 430421 294 350 424 30 35 35 40 30 200 20 100 0 143 153 139 147 117 9 118 73 76 85 88 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 10 0 US$/Euro: 0,83 0,79 0,81 0,75 0,67 0,74 0,74 0,72 0,77 0,76 * Attributable to RSTI Page 7
FINANCIAL KEY FIGURES Financials KEY FIGURES (in US$ million) 2007 2008 2009 2010 2011 2012 2013 Revenue 479.7 575.3 349.6 423.6 597.8 540.1 560.1 Cost of goods sold * 276.3 326.9 217.5 257.3 365.7 343.8 363.6 Gross profit 203.4 248.4 132.1 166.3 232.1 196.4 196.5 Selling, general & administrative * 84.7 105.1 88.9 89.9 107.5 101.1 101.7 Research & development* 27.8 41.1 31.5 30.1 38.3 42.6 43.0 Income from operations 86.6 95.5 8.1 44.0 83.7 50.4 49.2 Interest expense net (5.0) (3.0) 0.3 0.4 (0.1) 0 0.1 Taxes 31.8 33.5 5.2 15.4 26.1 17.2 14.1 Net income (attributable to RSTI) 55.3 63.8 9.2 29.8 60.0 34.5 34.8 EPS diluted** 1.74 2.09 0.31 1.02 2.06 1.20 1.22 Order entry 511.4 602.1 293.7 474.9 612.1 533.9 531.1 Order backlog 116.6 143.4 87.6 138.9 153.2 147.0 118.0 Weighted average s/o in million** 31.8 30.4 29.2 29.2 29.1 28.7 28.4 CASH FLOW (in US$ million) 2007 2008 2009 2010 2011 2012 2013 Cash flow from operations 67.9 32.6 55.4 36.8 50.0 22.0 57.0 Cash flow from investing (29.5) 52.2 (18.2) (8.3) (28.5) (39.4) (15.5) Thereof Capex (9.0) (14.5) (7.8) (8.6) (21.8) (27.3) (16.2) Depreciation/Amortization 11.0 16.4 13.0 11.6 13.0 13.9 15.3 EARNINGS GUIDANCE (subject to safe harbor statement) Q1/2014 Revenues $122- $127 million Gross profit (in percentage of net sales) approx. 31% - 32% Period expenses (in percentage of net sales, incl. intangible amortization) approx. 29% EPS $0,06 - $0,08 * Excl. intangibles amortization - ** Figures reflect stock split in 2007 Page 8
FINANCIAL MODEL Financials KEY FIGURES (as percentage of net sales) 2007 2008 2009 2010 2011 2012 2013 Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Cost of goods sold 57.6% 56.8% 62.2% 60.7% 61.2% 63.6% 64.9% Gross profit 42.4% 43.2% 37.8% 39.3% 38.8% 36.4% 35.1% Selling, general & administrative 17.7% 18.3% 25.4% 21.2% 18.0% 18.7% 18.2% Research & development 5.8% 7.1% 9.0% 7.1% 6.4% 7.9% 7.7% Income from operations 18.1% 16.6% 2.3% 10.4% 14.0% 9.3% 8.8% Interest expense / (Income) (1.0)% (0.5)% 0.1% 0.1% 0.0% 0,0% 0.0% Net income (attributable to RSTI) 11.5% 11.1% 2.6% 7.0% 10.0% 6.4% 6.2% Effective Tax Rate 36.6% 34.4% 36.1% 34.1% 29.9% 32.8% 28.8% Revenue from service, training, spare parts 26% 25% 30% 30% 26% 28% 26% Revenue from components 9% 10% 12% 10% 10% 12% 13% EBIT 17.1% 16.4% 4.2% 10.8% 14.4% 9.6% 8.7% EBITDA 19.4% 19.2% 7.9% 13.5% 16.6% 12.1% 11.5% RETURN ANALYSIS 2007 2008 2009 2010 2011 2012 2013 ROE*** 12.2% 15.8% 2.2% 7.2% 12.7% 7.1% 6.4% ROWC 16.0% 24.7% 3.3% 10.4% 18.0% 10.8% 9.3% *** Equity excl. minority interest Page 9
STRONG BALANCE SHEET Financials ASSETS (in US$ million) 09/30/2013 09/30/2012 Total current assets 481,486 439,522 Including: Topic Four Cash, cash equivalents & short term investments 136,977 101,163 Trade accounts receivable, net 110,665 107,935 Inventories, net 198,582 202,188 Total non-current assets 218,618 213,010 Total assets 700,104 652,532 LIABILITIES & STOCKHOLDERS EQUITY 09/30/2013 09/30/2012 Total current liabilities 108,708 120,695 Including: Short-term debt 3,709 16,883 Trade accounts payable 24,596 26,644 Total non-current liabilities 47,978 37,918 Including: Long-term debt 14,913 5,662 Net stockholders' equity 543,418 493,919 Total liabilities and stockholders equity 700,104 652,532 Days Sales Outstanding 72 73 Equity Ratio 78% 76% Page 10
GROWTH STRATEGY - Key Items Strategy Focus on new markets & applications Capitalize on global footprint to attract new customers Acquire complementary business operations, products or technologies Growth Strategy New laser products through technological innovation Offer customized solutions based on standard platforms Further expansion in emerging regions Page 11
THE ROFIN SHARE Common Stock ROFIN s Common Stock Nasdaq: since 1996 RSTI Frankfurt Stock Exchange: since July 2001 ISIN: US7750431022 Indices: Russell 2000, S&P SmallCap 600 Shares O/S (diluted, after split): ~ 28.4 million (FY2013) Float: ~ 99% Share distribution: ~ 85% USA, ~ 15% Europe/ROW Fiscal year ends Sept. 30 Earnings results 1 st quarter FY 2014: February 6, 2014 ROFIN-SINAR Technologies Inc. Investor Relations Contact: c/o ROFIN-SINAR Laser GmbH Katharina Manok Berzeliusstrasse 87 Tel.: +49-40-73363-4256 22113 Hamburg, Germany Fax: +49-40-73363-4138 email: ir@rofin.com www.rofin.com Common Stock Page 12
COMPANY HISTORY - MILESTONES Appendix 1975 - Founding of ROFIN-SINAR Laser 1987 - Acquired by Siemens 1988 - Acquisition of Spectra Physic s Industrial Laser Division in the US 1989 - Acquisition of Laser-Optronic in Germany (laser marking systems) 1996 - Spun off from Siemens (IPO on Nasdaq Stock Exchange) 1997 - Acquisition of Dilas Diodenlaser, Germany 1998 - Acquisition of Palomar Technology UK (today Rofin-Sinar UK) 2000 - Acquisition of Carl Baasel Lasertechnik, Germany 2001 - Acquisition of Z-Laser S.A., Spain 2001 - Secondary listing at the Frankfurt Stock Exchange (TecDAX 2004-2010) 2002 - Expansion in Asia; Founded subsidiaries in Taiwan and Korea 2004 - Acquisition of Optoskand, Sweden 2004 - Secondary offering of 2.86 Mio shares at $28 2004 - Acquisition of PRC and Lee Laser, USA 2005 - Founded subsidiaries in China, Canada and USA (Dilas Diode Laser, Inc.) 2007 - Acquisition of Corelase Oy, m2k-laser GmbH, ES Technology 2008 - Acquisition of Nufern, USA (fibers and fiber laser technology) 2008 - Foundation of ROFIN-BAASEL Swiss AG 2008 - Formed Nanjing Eastern Technologies and Dilas Diodelaser China 2009 - Closed acquisition of China-based NELC 2010 - Acquired LASAG AG (Thun/Switzerland) and its worldwide activities 2011 - Formed subsidiary in India Appendix - Company Page 13
GLOBAL PRODUCTION, SALES & SERVICE NETWORK Appendix Appendix - Company - More than 20 production facilities in North America, Europe & Asia - Customer service support in over 50 countries - Approx. 140 sales engineers & about 400 customer service personnel - Regional & industry specialized sales engineers Page 14