AIXTRON : FY 2020 IR Master Presentation.pdf

AIXTRON Investor Presentation

DISCLAIMER

Forward-Looking Statements

This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of AIXTRON. These statements may be identified by words such as "may", "will", "expect", "anticipate", "contemplate", "intend", "plan", "believe", "continue" and "estimate" and variations of such words or similar expressions. These forward-looking statements are based on the current assessments, expectations and assumptions of the executive board of AIXTRON, of which many are beyond control of AIXTRON, based on information available at the date hereof and subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Should these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of AIXTRON may materially vary from those described explicitly or implicitly in the relevant forward-looking statement. This could result from a variety of factors, such as those discussed by AIXTRON in public reports and statements, including but not limited those reported in the chapter "Risk Report". AIXTRON undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, unless expressly required to do so by law. This document is an English language translation of a document in German language. In case of discrepancies, the German language document shall prevail and shall be the valid version.

Due to rounding, numbers presented throughout this report may not add up precisely to the totals indicated and percentages may not precisely reflect the absolute figures for the same reason.

Our registered trademarks: AIXACT®, AIXTRON®, APEVA®; Atomic Level SolutionS®, Close Coupled Showerhead®, CRIUS®, EXP®, EPISON®, Gas Foil Rotation®, Optacap™, OVPD®, Planetary Reactor®, PVPD®, STExS®, TriJet®

Our Vision

Technology. Materials. Performance.

Technology.	Materials.	Performance.
We enable our	We deliver the
We are the recognized
customers to	performance driving
technology leader
successfully shape the	economic success
in complex material
markets of the future,	through our expertise,
deposition.
exploiting the potential	our employees and the
offered by new	quality of our products.
materials.

Who we are

	Headquarters based near Aachen, Germany		Company founded in 1983, >35 years of experience
	Worldwide presence in 7 countries		Technology leader in deposition systems
	R&D and production facilities in Germany and UK		Over 3,500 deposition systems sold worldwide
	~ 700 employees		Went public in 1997, listed in TecDAX and MDAX

Where we are

What We Do

We provide enabling Deposition Technologies to the Compound Semiconductor and Display IndustryFor Optoelectronics and Power Electronics

• • Metal-Organic Chemical Vapor Deposition (MOCVD)

  for the deposition of compound materials to produce for

  instance Lasers, LEDs, GaN and SiC Power Electronics or

  other Optoelectronic components

• • Plasma-enhanced Chemical Vapor Deposition (PECVD) for the deposition of Carbon Nanostructures and 2D materials (Carbon Nanotubes, Nanowires or Graphene)

• • Organic Vapor Phase Deposition (OVPD)*

  for the deposition of Organic Light Emitting Diodes (OLED)

  based displays for smartphones to TV

*These thin film deposition technologies are offered by AIXTRON's subsidiary APEVA.

Our MOCVD Market Position

2017

Source: Gartner (2017; 2018), Company reports, AIXTRON estimates

2018

2019

Technology Portfolio for Complex Material Deposition

OLED: OVPD®/PVPD®

Nanomaterials

NANO: Innovation Pool

LEDs / Optoelectronics

Specialty LEDs

(e.g. Fine Pitch-, MiniLED-Displays & Backlighting, UV-LED Disinfection, Micro LED- Displays, Horticulture)

tnemeganaM rewoP

MOCVD Core Technology

Revenue Analysis*

* Rounded figures; may not add up

FY 2020: by equipment & after sales

FY 2020: by end application

(equipment only)

FY 2020: by region

Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020

USD order intake and backlog were recorded at the prevailing budget rate (2019 & 2020: $1.20/€)

USD revenues were converted at the actual period average FX rate (2019: $1.12/€; 2020: $1.14/€)

Consolidated Income Statement*

* Rounded figures; may not add up

(€ million) FY/20 To be up FY/19	+/- dated%	Q4/20 Q	Q3/20	+/-%
Revenues Cost of Sales Gross profit %	269.2 259.6 161.0 150.9 108.3 108.7 40 42	4 7 0 -2 pp	108.1 64.1 63.1 38.4 45.0 25.8 42 40	69 64 75 2 pp
Selling expenses General & admin expenses R&D Net other operating income EBIT %	9.7 9.9 18.0 16.5 58.4 55.0 (12.6) (11.6) 34.8 39.0 13 15	-2 9 6 9 -11 -2 pp	2.4 1.9 4.2 4.4 17.2 12.6 (3.3) (1.2) 24.5 8.2 23 13	26 -5 37 175 199 10 pp
Net result %	34.5 32.5 13 13	6 -	24.9 7.1 23 11	250 12 pp

Financials

Balance Sheet*

* Rounded figures; may not add up

(€ million) 31/12/20 To be updated 31/12/19	30/09/20
Property, plant & equipment Goodwill Other intangible assets Others	63.5 64.5 71.0 72.4 2.9 2.4 74.9 11.7	66.9 71.2 2.7 41.8
Non-current assets	212.2 151.0	182.7
Inventories Trade receivables Others Cash, Cash deposits & Investments	79.1 79.0 41.3 29.2 8.1 5.4 249.7 298.3	101.6 19.0 10.9 262.8
Current assets	378.2 412.0	394.3
Equity	496.4 464.1	471.4
Non-current liabilities	6.6 4.5	4.8
Trade payables Advance payments from customers Others	10.8 19.4 50.8 51.1 25.8 23.9	14.7 63.2 22.9
Current liabilities	87.5 94.3	100.8
Balance Sheet total	590.4 563.0	577.0

Consolidated Statement of Cash Flows*

* Rounded figures; may not add up

(€ million) FY/20 FY/19	Q4/20 Q3/20
Net Result	34.5 32.5	24.9 7.1
Adjust for Non-Cash Items	8.0 13.1	2.0 3.2
Changes in Working Capital	(19.2) (2.8)	(8.5) (2.2)
Cash Flow from Operating Activities**	23.3 42.8	18.4 8.1
Capital Expenditures/Disposals	(9.3) (7.7)	(1.1) (3.0)
Free Cash Flow	14.0 35.1	17.3 5.0
FX Effects	(2.0) (0.1)	(0.2) (0.7)
Cash, financial investments & deposits	309.7 298.3	309.7 292.8

2019 figures reflect the changed presentation of cash flow in the 2019 Annual Report **Excludes changes in financial assets

Outlook

AIXTRON 2021 Guidance* - Strong Growth Expected

Based on current order situation,

Management expects for 2021**:

• • Total Order Intake between EUR 340 ~ 380 million

• • Revenues between EUR 320 ~ 360 million

• • Gross Margin of ~40%

• • EBIT Margin of ~16%

Equipment Order Backlog convertible into 2021 Revenues as of January 1, 2021: ca. EUR 130m

2021 Equipment

Order Intake Convertible into 2021 Revenues: EUR 140 ~ 180m

2021 Estimated Revenues from

After Sales: ca. EUR 50m

* Based on 1.25 USD/EUR Budget Rate; for more information please refer to the AIXTRON 2020 Annual Report, "Expected Results of Operations and Financial Position"

** Assuming that the COVID-19 pandemic will continue not to have a significant impact on the business

FUTURE MARKETS

Market Prospects

Short-Term

• • Increasing adoption of compound semiconductor-based lasers for 3D sensor systems in mobile devices as well as sensors for infrastructure applications.

• • Further increasing demand for lasers for optical data transmission of large volumes, such as for video streaming and Internet-of-Things (IoT) applications.

• • Increasing use of LEDs and specialty LEDs (esp. Red-Orange-Yellow, UV or IR) in displays, disinfection, horticulture and other applications.

• • Increasing use of wide-band gap GaN- or SiC-based components for energy-efficient power electronics devices in autos, in consumer electronics, in mobile devices and in IT infrastructure.

• • Increasing use of GaN and GaAs-based components in mobile devices (e.g. Smartphones) or network infrastructure for 5G mobile communications.

Mid- to Long-Term

• • Development of new applications based on wide-band gap materials such as high-frequency chips or system-on-chip architectures with integrated power management.

• • Adoption of Micro LED Displays for volume markets.

• • Development of alternative LED applications, such as visual-light communication technology.

• • Increased use of compound semiconductor-based sensors for autonomous driving.

• • Increased development activities for high performance solar cells made of compound semiconductors.

• • Application of GaN-based components in mobile devices (e.g. smartphones) for the millimeter-wave range of 5G and 6G mobile communications.

MARKETS

Epitaxial Growth Equipment Market Forecast*

* Excluding MBE

•  Micro LED equipment demand as strongest driver from 2021 (Aggressive Model)

•  Power equipment demand to accelerate from 2021

($ million)

7,000 6,000 5,000 4,000 3,000 2,000 1,000

BaseAggressive

Total:

0

2018 $ 781m

2019 $ 958m

2020 $ 1,138m

2021 $ 1,396m

2022 $ 1,701m

2023 $ 2,192m

2024 $ 3,613m

2025 $ 6,236m

CAGR: ~35%CAGR: ~21%

Source:

Epitaxial Growth Equipment Market for More-than-Moore Devices by Yole Developpement 2020

AIXTRON - Enabling Emerging Global Mega Trends

AIXTRON MOCVD - Planetary Reactor®: Tool-of-Record

•  Individual Wafer Rotation = Best Material Uniformity

•  Individual wafer temperature adjustment = Wafer Level Control/Optimization

•  Highest Epi / Product Yield = Lowest Production Cost

Devices: GaN/SiC Power Electronics - Superior Performance

Source: icons fromwww.flaticon.com

More Efficient

Smaller

Wireless Charging

Electric Vehicles

EV-charging

Renewable Energy

Data Centers

Fast Charging

Overview: GaN/SiC as Wide Band Gap (WBG) Power Electronics

Power Management

Power Switching

30V

600V

1.2 kV

≥2kV

• • General automotive electronic

• • HEV/EV

• • Charging station

• • Inverter / motor drives

• • Converter

• • Radar test applications

GaN

GaN / SiC

SiC

SiC in Automotive : Main Inverter as the Major Market Opportunity

Quick charging pole 1 kV DC (30 - 300 kW)

Higher efficiency =

•  Battery size reduction

•  Cost savings

•  Range extension

Component

Power (kW)Fraction 6'' wafer*

Comment

Main inverter

20 ~ 150

0.1 ~ 0.5

Brings energy from battery to the electric motor

DC-DC Converter

1 ~3

<0.01

Brings energy from battery for car electronics

On Board Charger (OBC)

5 ~ 30

0.01

Brings 240 V AC energy from wall plug to battery

(Quick) Charging Pole

30 ~ 300

0.1 ~ 1

Brings 1-3 kV DC energy directly from grid to battery

Devices: ROY LEDs for RGB* Displays; UV LEDs for Niche Markets

Source: LEDinside, Yole Développement

MiniLED for Consumer Electronics

RGB* LED DISPLAYS

Stadium Outdoor Display

(Pixel Pitch ≥10mm) (Chip size: ≥ 200µm)

Fine Pitch Indoor Display

(Pixel Pitch ≤2.5mm) (Chip size: ≥ 200µm)

(Chip size: ≤ 200µm)Micro LED for Consumer Electronics

(Chip size: ≤ 50µm)

Curing

*RGB = Red, Green & Blue

UV LED

Water Disinfection

Air Purifier

Devices: Micro LED - The Perfect Future Display Technology

RGB* Micro LED Display

• ● ● ●

• ● ● ●

• ● ● ●

Source: LEDinside

Devices: VCSEL/EEL - Internet of Things Creates New Opportunities

Source: icons fromwww.flaticon.com

3D Sensing Functionality

Face Recognition / Lidar

……

Processor

Facial Recognition

Tailor-made clothing/shoesAutonomous Driving

Interior Design

Mapping

Industry 4.0

AIXTRON - Instrumental in Evolving Display Technologies

APEVA: OLED Deposition System Provider

OVPD Deposition

OVPD Deposition Line*

Automation & Handling

• • Fully Automated OLED

  Deposition Lines and Fab Integration as a Complete System Provider

• • Innovative Deposition Technology with

  • • Higher Efficiency of OLED Material Deposition

  • • Mixing and Doping of Materials via Multiple Material Deposition in One Chamber

  • • Maintaining the Delicate Organic Material Properties improving Lifetime

AIXTRON INVESTOR PRESENTATION

Demand Drivers on Order Intake per Quarter (Equipment Only)

250

200

150

100

50

0

Q1/99

Q3/99

Q1/00

Q3/00

Q1/01

Q3/01

Q1/02

Q3/02

Q1/03

Q3/03

Q1/04

Q3/04

Q1/05

Q3/05

Q1/06

Q3/06

Q1/07

Q3/07

Q1/08

Q3/08

Q1/09

Q3/09

Q1/10

Q3/10

Q1/11

Q3/11

Q1/12

Q3/12

Q1/13

Q3/13

Q1/14

Q3/14

Q1/15

Q3/15

Q1/16

Q3/16

Q1/17

Q3/17

Q1/18

Q3/18

Q1/19

Q3/19

Q1/20

Q3/20

Annual Total Revenues by Application (including After Sales)

* Optoelectronics includes applications in Consumer Optoelectronics, Telecom/Datacom and Solar ** Silicon: ALD/CVD product line sold in 2017

INDUSTRY

AIXTRON Competitive Landscape

USA	Europe	China	Korea	Japan
Opto	GaAs/InP Optoelectronics, ROY LED
GaN LED		TOPEC
Power	GaN Power
SiC Power
OLED

Consolidated Income Statement*

* Rounded figures; may not add up

(€ million) 2020 2019	2018
Revenues Cost of sales Gross profit %	269.2 259.6 161.0 150.9 108.3 108.7 40% 42%	268.8 151.2 117.6 44%
Selling expenses General & admin expenses R&D	9.7 9.9 18.0 16.5 58.4 55.0	9.4 18.4 52.2
Net other operating income EBIT %	(12.6) (11.6) 34.8 39.0 13% 15%	(3.8) 41.5 15%
Net result %	34.5 13%	32.5 13%	45.9 17%

Balance Sheet*

* Rounded figures; may not add up

(€ million) 31/12/20 31/12/19	31/12/18
Property, plant & equipment Goodwill Other intangible assets Others	63.5 64.5 71.0 72.4 2.9 2.4 74.9 11.7	63.1 71.6 2.1 13.3
Non-current assets	212.2 151.0	150.1
Inventories Trade receivables Others Cash, Cash deposits & Investments	79.1 79.0 41.3 29.2 8.1 5.4 249.7 298.3	73.5 40.1 11.5 263.7
Current Assets	378.2 412.0	388.8
Equity	496.4 464.1	429.7
Non-current liabilities	6.6 4.5	1.8
Trade payables Contract liabilities for advance payments Others	10.8 19.4 50.8 51.1 25.8 23.9	27.8 53.3 26.3
Current liabilities	87.5 94.3	107.4
Balance Sheet total	590.4 563.0	538.9

63.1 71.6 2.1 13.3

40.1 11.5

27.8 53.3

26.3

Consolidated Statement of Cash Flows*

* Rounded figures; may not add up

(€ million) 2020 2019	2018
Cash Flow from operating activities	-39.2 42.8	11.9
Cash Flow from investing activities	-41.5 -6.8	-15.1
Cash Flow from financing activities	-0.9 -1.2	10.4
Exchange rate changes	-2.0 -0.1	2.4
Net change in Cash & Cash Equivalents	-83.6 34.6	9.7
Cash & Cash Equivalents (beginning of period) Cash & Cash Equivalents (end of period)	270.8 236.2 187.3 270.8	226.5 236.2
Change in Cash deposits	32.5 0.0	7.5
Free Cash Flow	14.0 35.1	4.4
Capex	9.3 7.7	9.2

Financial Calendar & Contact Data

•	April 29, 2021	Q1/2021 Results, Conference Call
•	May 19, 2021	Virtual Annual General Meeting
•	July 29, 2021	H1/2021 Results, Conference Call
•	November 04, 2021	9M/2021 Results, Conference Call
•	February 24, 2022	FY 2021 Results, Conference Call

For further information please contact:

Investor Relations Team

Andrea Kögler-Ihler

Phone: [phone]

AIXTRON SE

Investor Relations & Corporate Communications Dornkaulstr. 2

52134 Herzogenrath Germany

E-Mail:[e-mail]

Public Relations Team Rita Syre

Phone: [phone]

35

AIXTRON - Our technology. Your future.

AIXTRON SE

Dornkaulstr. 2

52134 Herzogenrath

Germany

Phone [phone]

Fax [phone]

[e-mail]