#1AIXTRON Investor Presentation 5G Networks Renewable Energy Energy Storage AIXTRON ENABLES INNOVATION Internet of Things Full Year 2018 Results (February 26, 2019) ©AIXTRON Investor Relations, February 2019 Autonomous Driving NextGen Displays AIXTRON#2DISCLAIMER Forward-Looking Statements 2 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™M, OVPDⓇ, Planetary Reactor®, PVPD®, STEXS®, TriJet® AIXTRON#3HIGHLIGHTS AIXTRON - FY 2018 & Q4/2018 Highlights ✓ Solid Order Intake and Backlog • Strong demand from Lasers, Red-Orange-Yellow (ROY) LEDs, Power Management. ✓ Strong Gross Margins . Better utilization, currency tailwinds, favorable product mix ✓ AIXTRON and IRUJA: Joint Venture in APEVA • Joint Venture has closed and team with former AIXTRON and IRUJA people is in place • Approval of Korean Merger Authorities has been obtained • Gen2 tool installation in customer site has been completed • Follow up order expected during 2019 3 AIXTRON#4FINANCIALS AIXTRON - 2018 Operational Performance ✓ Guidance vs Actuals: Achieved in all Metrics ✓ Upper-ends of 2018 Full Year Guidance Ranges reached without exception: • • • • Order Intake: Around EUR 290 million Guided - EUR 302.5 million Reported Revenues: Around EUR 260 million Guided - EUR 268.8 million Reported Gross Margin: Around 40% Guided - 44% Reported EBIT: EUR 35 ~ 40 million Guided 40 million Guided - EUR 41.5 million Reported Positive Total Cash Flow Guided - EUR 17.2 million Reported AIXTRON#5FINANCIALS Key Financials FY/2018 & Q4/2018* * Rounded figures; may not add up +/- +/- (€ million) 2018 2017 Q4/18 Q3/18 % % Order intake 302.5 263.6 15 72.2 76.0 -5 Order backlog (equipment only) 138.3 108.6 27 138.3 151.9 -9 Revenues Gross profit % EBIT % Net result % 268.8 230.4 17 87.9 63.4 39 117.6 74.0 59 39.4 27.6 43 44 32 12 pp 45 44 1 pp 41.5 4.9 n.m. 20.8 8.7 139 15 2 13 pp 24 14 10 pp 45.9 6.5 n.m. 18.2 11.7 56 17 3 14 pp 21 18 3 pp Net result per share (EUR) 0.41 0.06 n.m. 0.16 0.11 45 Operating Cash Flow 13.0 70.1 -81 7.6 13.9 -45 5 AIXTRON#6FINANCIALS Consolidated Income Statement* * Rounded figures; may not add up +/- +/- (€ million) 2018 20171 Q4/18 Q3/18 % % Revenues Cost of sales 268.8 230.4 17 87.9 63.4 39 151.2 156.4 -3 48.5 35.8 35 Gross profit 117.6 74.0 59 39.4 27.6 43 % 44 32% 12 pp 45 44 1 pp Selling expenses 9.4 10.2 -8 2.7 2.1 29 General & admin expenses 18.4 17.1 8 5.0 4.6 6 R&D 52.2 68.8 -24 12.2 13.1 -7 Net other operating income 3.8 27.0 -86 1.3 -0.9 244 EBIT 41.5 4.9 n.m. 20.8 8.7 139 % 15% 20 13 pp 24 14 10 pp Net result 45.9 6.5 n.m. 18.2 11.7 56 % 17 3% 14 pp 21 18 3 pp 1 Includes EUR 35.6m revenues of the ALD/CVD product line sold in 2017 AIXTRON#7FINANCIALS Balance Sheet* * Rounded figures; may not add up 7 (€ million) 31/12/18 30/09/18 31/12/17 Property, plant & equipment 63.1 63.8 64.3 Goodwill 71.6 71.5 71.2 Other intangible assets 2.1 1.6 1.8 Others 13.3 12.9 4.0 Non-current assets Inventories Trade receivables 150.1 149.8 141.3 73.5 71.4 43.0 40.1 35.4 19.3 Others 11.5 7.1 5.0 Cash & Cash Deposits 263.7 245.4 246.5 Current Assets 388.8 359.2 313.8 Equity 429.7 399.5 368.9 Non-current liabilities 1.8 1.7 2.0 Trade payables 27.8 17.0 14.3 Advance payments from customers 53.3 63.7 30.3 Others 26.3 27.2 39.7 Current liabilities 107.4 107.9 84.2 Balance Sheet total 538.9 509.0 455.1 AIXTRON#8FINANCIALS Consolidated Statement of Cash Flows* (€ million) Net Result Adjust for * Rounded figures; may not add up 2018 2017 Q4/18 Q3/18 45.9 6.5 18.2 11.7 Non Cash Items 1.7 -7.8 1.8 -0.1 Changes in Working Capital -34.6 71.4 -12.4 2.3 Cash Flow from Operating Activities 13.0 70.1 7.6 13.9 Capital Expenditures/Disposals -8.6 21.3 -1.8 -2.7 Free Cash Flow 4.4 91.4 5.8 11.2 FX/Other 12.8** -5.0 12.5** -0.5 Total Cash Flow 17.2 86.4 18.3 10.7 Cash & Deposits 263.7 246.5 263.7 245.4 ** Includes €10.4m shares issued in APEVA AIXTRON#9LEDs / Optoelectronics AIXTRON TECHNOLOGIES AND PRODUCTS Technology Portfolio for Complex Material Deposition OLED: OVPDⓇ/PVPDⓇ APEVA AIXTRON Our technology. Your future. Carbon - PECVD NANO: Innovation Pool Lasers (VCSEL/EEL) (e.g. 3D Sensing; Consumer Electronics; Telecom/Datacom) Specialty LEDs (e.g. Fine Pitch-, MiniLED-, MicroLED-Displays; Horticulture; Purification) MOCVD Core Technology GaN Power | GaN RF (e.g. Wireless Charging; 5G, Fast Charging, Power Supply) SiC Power (e.g. Electric Vehicles, Charging Stations, Infrastructure) 9 Power Management AIXTRON#10OUTLOOK AIXTRON - 2019 Guidance* Based on current order situation and customer reticence, Management expects for 2019: • • Total Order Intake between EUR 220 ~ 260 million Revenues between EUR 260 ~ 290 million • • Gross Margin of 35% to 40% EBIT between 8% and 13% of Revenues • Free Cash Flow between EUR 1525 million Order Backlog as of January 1, 2019: EUR 138m 2019 Guidance* 10 10 2019 Shippable Equipment Order Intake: EUR 77 ~ 107m Based on 1.20 USD/EUR Budget Rate; please refer to "Expected Results of Operations and Financial Position" in the AIXTRON 2018 Annual Report for further information 2019 Estimated Spares & Service Revenues: ca. EUR 45m AIXTRON#11Financial Calendar & Contact Data • • April 30, 2019 May 15, 2019 July 25, 2019 Q1/2019 Results, Conference Call Annual General Meeting, Aachen (Germany) H1/2019 Results, Conference Call . October 24, 2019 9M/2019 Results, Conference Call • February 2020 FY/2019 Results, Conference Call For further information please contact: AIXTRON SE Investor Relations & Corporate Communications 52134 Herzogenrath Germany E-Mail: [email protected] Phone: +49 (2407) 9030-444 11 AIXTRON#128 Technology. Materials. Performance. RINTRON RIXTRON AIXTRON SE Dornkaulstr. 2 52134 Herzogenrath Germany Phone +49 (2407) 9030-0 Fax +49 (2407) 9030-40 E-Mail [email protected] AIXTRON#13OPERATIONS Revenue Analysis* FY/2018: by equipment & spares FY/2018: by end application (equipment only) 18% O 82% 10% 16% 0 66% 8% Equipment Spares LED Power Electronics Optoelectronics* Others * Optoelectronics includes applications in Consumer Optoelectronics, Telecom/Datacom and Solar 13 * Rounded figures; may not add up FY/2018: by region 20% 26% 54% Asia Europe USA AIXTRON#14FINANCIALS 24 - Month Business Development (€ million) Order Intake (incl. equipment, service, spare parts) Order Backlog (equipment only) Revenues (incl. equipment, service, spare parts) 78.6 61.9 66.6 69.6 75.6 76.0 72.2 65.7 @ $1.10 $1.20 151.9 138.3 138.3 87.6 93.4 99.2 108.6 114.9 @ $1.10 $1.20 87.9 60.6 62.2 62.4 63.4 53.6 54.1 55.2 @ $1.13 $1.18 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 USD order intake and backlog were recorded at the prevailing budget rate (2017: $1.10/€; 2018: $1.20/€) USD revenues were converted at the actual period average FX rate (2017: $1.13/€; 2018: $1.18/€) 14 AIXTRON