AIXTRON : 6-MONTHS-REPORT 2021.PDF

Half-Year Group Financial Report

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AIXTRON GROUP

FINANCIALS AT A GLANCE

Key Quarterly Financials

			+/-			+/-
In EUR million	H1 2021	H1 2020	%	Q2 2021	Q1 2021	%
Order intake	263.3	138.4	90%	139.0	124.4	12%
Order backlog	295.0	156.6	88%	295.0	223.5	32%
(Equipment only)
Revenues	117.2	97.0	21%	67.7	49.5	37%
Gross profit	45.2	37.5	21%	27.9	17.3	61%
%	39%	39%	0pp	41%	35%	6pp
EBIT	4.9	2.2	123%	5.6	-0.7	900%
%	4%	2%	2pp	8%	-1%	9pp
Net result	11.5	2.5	360%	7.7	3.8	103%
%	10%	3%	7pp	11%	8%	3pp
Free cash flow	46.1	-8.4	649%	18.0	28.1	-36%

Key Balance Sheet Data

In EUR million	Jun 30 2021	Dec 31 2020
Inventories	125.5	79.1
Trade Receivables	34.7	41.3
Cash, cash equivalent and other financial asset	348.2	309.7
Trade Payables	22.4	10.8
Contract liabilities for advance payments	122.5	50.8
Equity	503.2	496.4
Equity Ratio	73%	84%

Key Share Data

In EUR	H1 2021	H1 2020
Closing Price (end of period)	22.93	10.66
Period High Price	23.30	11.49
Period Low Price	14.16	6.20
Number of shares issued (end of period)	113,202,020	112,927,320
Market capitalization (end of period), million EUR	2,595.7	1,203.2
Net result per share (EUR)	0,11	0.02

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AIXTRON 2021 HALF-YEAR GROUP FINANCIAL REPORT

TABLE OF CONTENTS

FINANCIALS AT A GLANCE	2
BUSINESS DEVELOPMENT	4
INTERIM MANAGEMENT REPORT	6
Business Activity and Strategy	6
Economic Report	7
Macroeconomic developments	7
Industry developments	8
Results of Operations	9
Development of Orders	9
Exchange Rate Development of the US Dollar	10
Development of Revenues	10
Development of Results	11
Financial Position and Net Assets	13
Cashflow	14
Opportunities and Risks	14
Outlook	15
INTERIM FINANCIAL STATEMENTS	16
Consolidated Income Statement (unaudited)	16
Consolidated Statement of other Comprehensive Income (unaudited)	16
Consolidated Statement of Financial Position (unaudited)	17
Consolidated Statement of Cash Flows (unaudited)	18
Consolidated Statement of Changes in Equity (unaudited)	19
ADDITIONAL DISCLOSURES	20
Accounting Policies	20
Segment Reporting	21
Stock Option Plans	21
Employees	22
Dividend	22
Restructuring Costs	22
Financial Instruments	23
Management	23
Related Party Transactions	23
Post-Balance Sheet Date Events	23
Responsibility Statement	24
Forward-Looking Statements	25
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AIXTRON 2021 HALF-YEAR GROUP FINANCIAL REPORT

AIXTRON GROUP

BUSINESS DEVELOPMENT

Persistently high order momentum

Large orders in the second quarter

Increased full-year guidance for order intake

AIXTRON booked a number of large orders in the second quarter, which had a positive effect on the order intake of the second quarter and the first half year. Accordingly, order intake for H1/2021 was significantly higher than the previous year's figure at EUR 263.3 million (H1/2020: EUR 138.4 million). This is a result of the continued high demand from various end-markets, especially in the fields of gallium nitride power electronics, wireless and optical data transmission, as well as LEDs for fine pitch displays and indoor farming. Revenue in H1/2021 also improved as expected from the prior year and was 21% higher year-on-year at EUR 117.2 million (H1/2020: EUR 97.0 million). The positive and better-than-expected order situation in the first six months will lead to an increase in deliveries and revenues in the 2021 financial year. Accordingly, the Executive Board raised the forecast for the 2021 financial year on June 9, 2021 and communicated it via ad-hoc release. Based on the very positive order development, the Executive Board is once again raising the forecast for the order intake in the financial year 2021 to a range of EUR 440 million to EUR 480 million (previously: EUR 420 million to EUR 460 million). The Executive Board reaffirms the forecast for the financial year 2021, which was raised in June, of revenues between EUR 400 million to EUR 440 million, a gross margin of around 40% of revenues and an EBIT margin of 20% to 22% of revenues.

At EUR 139.0 million in Q2/2021, order intake exceeded the high level of the previous quarter (Q1/2021: EUR 124.4 million) and reached the highest level since 2011. It was thus about twice as high as in the same quarter of the previous year (Q2/2020: EUR 69.6 million). This development is mainly due to high demand for equipment for the production of gallium nitride power electronics, components to build and expand 5G mobile and fibre optical networks, as well as LEDs for fine pitch displays and indoor farming. This was also reflected in the second quarter in corresponding large orders placed by our customers for the above-mentioned application. The equipment order backlog as of June 30, 2021, increased to EUR 295.0 million (Q1/2021: EUR 223.5 million).

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AIXTRON 2021 HALF-YEAR GROUP FINANCIAL REPORT

AIXTRON GROUP

The revenue and earnings development in Q2/2021 is fully in line with expectations and in line with our customers' delivery requests. Compared to the previous year, revenues in Q2 2021 increased by 21% to EUR 67.7 million (Q2/2020: EUR 56.0 million) and were 37% higher compared to the previous quarter (Q1/2021: EUR 49.5 million). Gross profit for Q2/2021 was EUR 27.9 million with a gross margin of 41% (Q2/2020: EUR 22.9 million; 41%; Q1/2021: EUR 17.3 million; 35%). The gross margin for H1/2021 was 39%. Operating expenses for Q2/2021 were EUR 22.3 million, higher than the previous quarter (Q1/2021: EUR 18.0 million; Q2/2020: EUR 19.6 million), which was mainly due to the structural adjustments at our OLED-specialist subsidiary APEVA announced in the supplementary report of the quarterly statement for the first quarter of 2021. This resulted in an operating result (EBIT) of EUR 5.6 million and an EBIT margin of 8% (Q1/2021: EUR -0.7 million; -1%; Q2/2020: EUR 3.3 million; 6%). The net profit in Q2/2021 was EUR 7.7 million (Q1/2021: EUR 3.8 million; Q2/2020: EUR 3.3 million). In this context, the capitalization of deferred taxes on loss carryforwards in the amount of EUR 3.4 million in Q2/2021 due to expected future profits had a positive impact.

Free cash flow in Q2/2021 was EUR 18.0 million (Q1/2021: EUR 28.1 million; Q2/2020: EUR -11.3 million), largely due to the current result and an increase in advance payments by customers.

AIXTRON reported cash and cash equivalents including financial assets of EUR 348.2 million as of June 30, 2021 (December 31, 2020: EUR 309.7 million; June 30, 2020: EUR 288.6 million). Due in particular to the significantly increased liabilities from advance payments by customers, the equity ratio was 73% as at June 30, 2021 (December 31, 2020: 84%).

The COVID-19pandemic is still posing no significant risk to the AIXTRON Group and our business. Strict internal protective measures are in place to ensure safety in operations. This includes the offer to all AIXTRON employees to have a COVID-19 screening carried out regularly at work. AIXTRON was also able to offer COVID-19 vaccination to all interested employees in Q2. Approximately half of our employees have returned to the office from the mobile office since mid-July this year. The impact of the pandemic on our business remains at a low level and our supply chains are stable.

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AIXTRON 2021 HALF-YEAR GROUP FINANCIAL REPORT