company presentation roadshow madrid, march 2020 … · •starting to pursue targeted m&a...
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THE POWER OF LASER TECHNOLOGYCOMPANY PRESENTATION – Roadshow Madrid, March 2020Christian Witt, CFO
• Leading supplier of laser-based precision manufacturing solutions
• Enabler of miniaturization and advanced electronic manufacturing
• >40 years of experience plus strong innovation pipeline
• Investing around 10% of revenue in R&D
2,7
1,8
6,1
4
5,2
Q3 18 Q4 18 Q1 19 Q2 19 Q3 19
LPKF AT A GLANCEA LEADING TECHNOLOGY COMPANY
© LPKF Laser & Electronics AG 2
GLOBAL PLAYER
• Selling in 71 countries; Export share of approx. 90 %
• Largest market: Asia
• Ca. 650 employees world-wide
• Engineering and technological know-how based in Europe
Revenue by region in % 2018
10,7
26,6
20,6
1,2
40,9
Germany Europe N. America Others Asia
Segments
Development Electronics
Solar Welding
LASER SPECIALIST
DYNAMIC MARKETS
• Highly specialized segments for clients in Research & Development, Consumer Electronics, Semiconductor, Automotive and Solar
• Focus on fundamental manufacturing innovations with distinct USPs
• Capturing growth opportunities by creating new markets
Revenue by segment in € million2018
24.234.6
22.238.9
Development Electronics Welding Solar
• FY 2019 Preliminaries/Guidance Revenue: 140 Mio. EUREBIT margin: 12% - 14%ROCE: 20 - 25%
• FY 2024Revenue: > 360 million EUREBIT margin: > 25%
EBIT development in € million
PROFITABLE GROWTH
COMPETITIVE ADVANTAGE
fromsuperior customer
valueand accelerated
innovation
DRIVERS OF OUR COMPETITIVE ADVANTAGEWE DERIVE DIFFERENTIATION FROM MULTIPLE SOURCES
© LPKF Laser & Electronics AG 3
CORE COMPETENCIES
Precision Drive
Technology
Materials Technology
Control Technologyand Software
LaserTechnologyand Optics
KEY DIFFERENTIATORS
• Deep understanding of customer requirements
• Proprietary process know how
• Expertise in engineering, software, physics, and chemistry
• Group-wide machine software platforms
• Innovation power: ≈ 10% of revenue p.a. in R&D
• Low degree of vertical integration
OUR FOUR BUSINESS SEGMENTSWIDE RANGE OF TAILOR-MADE SOLUTIONS
© LPKF Laser & Electronics AG 4
LPKF LASER & ELECTRONICS AG BUSINESS SEGMENT STRATEGY
Development Electronics Welding Solar
• Solutions for In-house PCB prototyping and micromaterial processing
• Solutions for volume manufacturing of PCB and PCBA
• LIDE - Thin glass processing
• Solutions for plastic welding in volume manufacturing
• Solutions for thin-film photovoltaic module production
• Digital printing of ceramic inks via Laser Transfer Printing (LTP)
• Leverage increasing synergies across segments in R&D, production, sales and service.
• Become both technology and market leader in each segment we operate in.
• Accomplish sustained profitable growth in each business segment.
5
SEGMENT “ELECTRONICS” LIDE: ULTRA FINE DRILLING AND CUTTING OF VERY THIN GLASS
© LPKF Laser & Electronics AG
MARKETS/CUSTOMERS/APPLICATIONS
MARKET POSITION AND COMPETITION
• Displays
• Advanced IC Packaging
• Wafer level packaging
• Microfluidics and Bio Science
• Micro-electro-mechanical systems (MEMS)
• Through glass via substrates
• Patented process
• Pioneer in glass machining
• Competition: Alternative technologies (e.g. Coherent) Large glass producers (Corning, USA)Small specialized glass producers
Microscopic holes and hole shapes in
glass wafers
Vitrion cuts up to 5000 holes in 1 second
LASER INDUCED DEEP ETCHINGUNIQUE AND PATENTED LPKF PROCESS
6
THE LIDE PROCESS
Standard silicate glasses
Standard wet etching
1
2
On-the-fly laser modification
SURFACE DEFECTSLIDE: MECHANICAL STRENGTH AND PRECISE DEEP HOLES
© LPKF Laser & Electronics AG
STANDARD LASER PROCESSED GLASS DEFECT FREE HOLES MADE BY LIDE TECHNOLOGY
WAFER LEVEL PACKAGING RF DEVICES FILTER, AMPLIFIER, TUNER, ETC.
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LIDE Glass WLP: higher signal quality, reduced cost base
EXAMPLE FOR WAFER LEVEL PACKAGING
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Higher Density and Precision
GLASS EMBEDDED FAN-OUT PACKAGINGADVANCED IC PACKAGING
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▪ Warpage:
− CTE mismatch between redistribution layer (RDL) and
epoxy molded compound (EMC)
− Low Young’s modulus of the EMC
▪ Moisture uptake by EMC:
− Long degassing
− Impact on RF properties
▪ Low throughput/yield of through-mold vias formation
▪ Die position errors:
− Placement
− Shift during molding
▪ Ultra low Warpage:
− CTE match of glass to Si Die
− Low Young’s modulus of the glass
▪ No Moisture uptake
▪ High throughput/yield of through-mold vias formation
▪ Die position errors:
− passive die alignment features in glass
Regular Fan-Out Glass Embedded Fan-Out Package (GEFOP)
Fan out packaging: https://www.youtube.com/watch?v=pOBkSEOLqZ8
GLASS EMBEDDED FAN OUT PACKAGING
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DIRECT PENCIL CUT
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LPKF Patented process
FOLDABLE ULTRA THIN GLASS
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While bending ultra thin glass the edge is the most vulnerable section.
Cutting facet has be perfect
LPKF patented Flex-Edge Technology allows to reduce stress on the edge and increases stability during folding
Edge without LIDE treatment
MICROFLUIDIC SYSTEMS: PICO WELLS APPLICATION: single cell or DNA analysis
© LPKF Laser & Electronics AG 14
• well size: 5-200 micrometers• well distance: 1 to 100 micrometers• 10 – 1000 x higher density
For more information on LIDE technology & applications: www.vitrion.com
LIFE SCIENCE: PICO WELLS FOR BIOMEDICAL APPLICATIONS
© LPKF Laser & Electronics AG 15
VITRION Pico Wells:
• no “drop” effect from coalescence• longer optical signal path (bottom – top)• high precision from low cross contamination• less evaporation due to low surface• altogether higher density and precision
traditional drop method
16
SEGMENT “ELECTRONICS”LASER SYSTEMS FOR CUTTING PCBS & Stencils
© LPKF Laser & Electronics AG
MARKETS/CUSTOMERS/APPLICATIONS
MARKET POSITION AND COMPETITION
• OEMs, PCB manufacturers and PCB assemblers
• Competitors: HAN‘s (CN)Schmoll (D), EO Technics (KR) VIA Mechanics (JP)HG Laser (CN)
Market leader
Printed-Circuit-Boards
New PowerCut 6080
17
SEGMENT “WELDING”LASER WELDING OF PLASTIC COMPONENTS
© LPKF Laser & Electronics AG
MARKETS/CUSTOMERS/APPLICATIONS
MARKET POSITION AND COMPETITION
• Automotive
• Consumer Electronics
• Medical Devices
• Others
• Market leader in Europe, strong growth potential in America, China and Asia-Pacific
• Competitors: Branson, Leister (CH), EvosysCoherent (USA) Gefasoft
Automotive tail light
RFID sensor for blood bag
Market leaderin Europe New InlineWeld 2000
18
SEGMENT “SOLAR”STRUCTURING THIN FILM SOLAR PANELS
© LPKF Laser & Electronics AG
MARKETS/CUSTOMERS/APPLICATIONS
MARKET POSITION AND COMPETITION
• Thin film solar module manufacturers• CIGS and CdTe technology
• Competitors: Mitsuboshi Diamond Industrial (JP) and Innolas (D)
Thin-Film Solar Module *
Market leader
New system from Allegro family
* sample-size
19
SEGMENT “DEVELOPMENT”LEADING IN RAPID PROTOTYPING WORLD-WIDE
© LPKF Laser & Electronics AG
MARKETS/CUSTOMERS/APPLICATIONS
MARKET POSITION AND COMPETITION
• Universities
• Schools
• R & D in industry
• Extensive world-wide sales & service network
• Competitors: MITS (J), Accurate CNC (USA) and other smaller suppliers
PCB Prototype
Approx. 60 %market share
New ProtoLaser ST
INNOVATIONPRODUCT PORTFOLIO REFLECTS TECHNOLOGY LEADERSHIP
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PROCESS KNOW-HOW IS OUR USPSHARE OF REVENUE BY PRODUCTS YOUNGER THAN 3 YEARS
81
19
Development
70
30
Electronics
65
35
Welding
90
10
Solar
79
21
< 3 years > 3 years
TOTAL
• R&D strategically aimed at expanding technology leadership to increase customer value
• Deep process and application know-how drives differentiated solutions
• Focus on fundamental manufacturing innovations with distinct USPs
• > 50 active patent families
• Highly specialized segments for customers in R&D, Consumer Electronics, Semiconductor, Automotive, and Solar
Growth from unlocking new applications and markets
LPKF SERVICE BUSINESSUNIQUE KNOW-HOW MAXIMIZES CUSTOMER VALUE CREATION
© LPKF Laser & Electronics AG 21
SERVICE BUSINESS SERVICE ACROSS ALL SEGMENTS
• Our global service network guarantees 24/7/365 availability of LPKF systems at customer sites across the globe.
• We provide a full service portfolio along the entire customer value chain.
• We are building out our service business as a key differentiator for creating customer value.
18,7
13,9
20,5
FY 2018 9 months 2018 9 months 2019
FY 2018 9 months 2018 9 months 2019
22
MEGATRENDSOUR MARKETS ARE DRIVEN BY SEVERAL MEGATRENDS
Miniaturization• Devices become smaller, more capable and
more efficient• Cost and size per functionality continues to
drop
Clean Manufacturing• Quality requirements of end customers, as
well as environmental requirements, call for clean manufacturing technologies
Digitalization• Consumer demand for increasing
functionality drives up electronics volumes• New products, enabled by electronics, are
adopted rapidly
Design Freedom• Drive towards user-focused design
and intuitive usability• Design becomes decisive differentiator
across segments
© LPKF Laser & Electronics AG
23
SETTING THE COURSE FOR TECHNOLOGY LEADERSHIPPATH TOWARDS SUSTAINED PROFITABLE GROWTH
2016 – 2017
REFOCUS THE BUSINESS
• Restructuring program
• Built robust platform for
future profitable growth
• Major investments in innovative products
• 2017: LPKF returned to profitability
2020++
SUSTAINED PROFITABLE GROWTH
• Focus on profitable growth and ROCE
• Expand market penetration across
segments
• Actively manage individual
segment/application volatility via synergies
• Establish manufacturing services as
additional growth platform
• Extend technology leadership
• Further increase number of applications
served by LPKF solutions
• Further pursue development of new
technologies & applications
• Starting to pursue targeted M&A
opportunities
2018 - 2019
IMPROVE PROFITABILITY
• Focus on capital profitability (ROCE) ✓
• Strengthen healthy business in our
Development segment ✓
• Broaden customer and technology base in
our Solar segment ✓
• Improve sales and profitability of our
Electronics and Welding segments ✓
• Unleash full potential of thin glass in
electronics and micro systems technology
• Develop new business models
• Improve business processes for efficiency
and growth opportunities ✓
• Continue cost discipline ✓
• Improve Working Capital ✓
• Deleverage balance sheet ✓© LPKF Laser & Electronics AG
24
INVESTMENT HIGHLIGHTS5 REASONS TO INVEST
•Leading global provider of laser applications in growing and dynamic markets
1. MARKETS
•Miniaturization and digital manufacturing need laser technology
2. MEGATRENDS
•Deep understanding of customer requirements for value creation
•Established global sales and service network
3. CUSTOMER FOCUS
•Innovation strength from invest of ≈10 % of revenue p.a. in R&D
•Technology leadership enables young and high value product portfolio
4. INNOVATION
•Picking up speed in growth, profitability and commercializing new technologies
5. TIMING
Financial Report Q3 2019 and Outlook
REVENUE AND EBIT: LONG TERM DEVELOPMENTRETURN TO SUSTAINED PROFITABLE GROWTH
© LPKF Laser & Electronics AG 26
IN € MILLION
• 2011 – 2015: Expansion followed by slow-
down 2015 driven by LDS technology
• 2017: Return to profitability via reduced
cost and growth in Solar, Development,
Electronics
• 2018/19: Management program on
profitable growth focussing all segments,
cost reduction, cash and working capital
management
• Preliminaries/Guidance 2019
Revenue: 140 million EUR
EBIT margin: 12% - 14%
• Guidance 2024:
Revenue: > 360 million EUR
EBIT-margin: > 25 %
42,2 45,450,7
81,291,1
115,1
129,7119,7
87,3 91,1
102,1
120,0
140,0
6 3,1 7,017,3 15,2
20,4 23,212,7
-3,7 -6,8
4,0 6,8
-20
0
20
40
60
80
100
120
140
160
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019e
Revenue Guidance Range EBIT
in Mio. EUR
9 months
2018
9 months
2019 ∆%
Revenue 87.7 107,5 22.6
EBIT 5.0 15.3 206.0
EBIT margin (%) 5.7 14.2
Earnings per Share (€) 0.17 0.45
Free cashflow 7.9 29.1 267.9
Incoming orders 102.9 81.3 -21.0
Orders on hand (30 September) 54.4 32.1 -41.0
Employees (total number ) 673 660 -1.9
27
KEY GROUP FIGURES: 9 MONTHS 2019STRONG DELIVERY
© LPKF Laser & Electronics AG
Management Measures show effects in all
areas: further profitable growth, efficiency
gains and working capital improvement
Revenue: strong contribution from
Electronics and Solar segments
EBIT: leverage from increased volume and
constant cost
Free Cash Flow: Strong Q3 cash flow from
earnings and WC improvements
Order situation:
Year to date figure affected by slow Q3
28
REVENUE BY SEGMENT: FIRST 9 MONTHS 2019HIGH DEMAND FOR SOLUTIONS AND SERVICES
• Electronics:
Strong improvements with systems for PCB
processing.
LIDE: picking up speed in customer
qualifications, major revenue & EBIT
contribution starting 2020
• Development:
Year to date figure affected by slow Q3
• Welding:
Ongoing growth through improvement
measures and strong customer focus
• Solar:
Contribution of large individual orders,
incl. trade products; delivery of systems for
2019 completed
© LPKF Laser & Electronics AG
Revenue in Mio. EUR
9 months
2018
9 months
2019 ∆%
Electronics22.0 29.1 32.2
Development18.0 17.7 -1.7
Welding15.2 18.7 23.2
Solar32.5 42.0 29.1
Total 87.7 107.5 22.6
29
EBIT BY SEGMENT: FIRST 9 MONTHS 2019PROFITABLE GROWTH IN 3 SEGMENTS
• Electronics: 2018: Restructuring 1.0 million EUR 2019: Strong growth and cost discipline, One-time-Effects: + 0.8
• Development:Year to date figure affected by slow Q3
• Welding:Sales increase and operational improvements, positive trend continues
• Solar: Strong growth and cost discipline
© LPKF Laser & Electronics AG
EBIT in Mio. EUR
9 months
2018
9 months
2019 ∆%
Electronics-1.7 4.5 359.3
Development2.7 1.5 -44.0
Welding-2.6 -0.4 85.7
Solar6.7 9.7 45.2
Total 5.0 15.3 206.0
in Mio. EUR 9 months 2018 9 months 2019
Net cash used in/generated by operating
activities11.9 32.9
Net cash used in investing activities -4.0 -3.8
Free cashflow 7.9 29.1
Net cash position as per September 30 - 14.9 12.4
Net working capital 34.1 27.9
30
FREE CASHFLOW AS PER SEPT 30, 2019STRONG CASHFLOW GENERATION
• Positive development of free cashflow due
to significant EBIT and a successful
reduction of working capital
• Lower net working capital due to effect of
management action to reduce trade
receivables and inventory
• Further improved net cash position
• Debt partially repaid, restructured Group
financing, new revolving credit facility
• We will continue to reduce working capital
during 2019 and in 2020
© LPKF Laser & Electronics AG
31
FINANCIAL YEAR 2019 FOLLOWING YEARS UP TO 2024Financial Year 2020
© LPKF Laser & Electronics AG
2019:
Preliminaries/Actuals/Forecast
• Group sales of of 140
million EUR
• EBIT margin of between
12% and 14%
• which corresponds to a
ROCE of between 20% and
25 %
For 2024, LPKF anticipates:
• Group sales of more than 360
million EUR
• EBIT margin of more than 25%
This forecast is subject to stable
growth in the global economy.
For 2020 LPKF anticipates.
• growth in sales and EBIT
For Q1 2020, LPKF anticipates:
• Group sales 18 – 22 million EUR
• Quarterly loss of 3 – 5 million
EUR
This forecast is subject to stable
growth in the global economy.
GUIDANCE AS OF 20 February 2020FOCUS: SUSTAINABLE, PROFITABLE AND STRONG GROWTH
Backup
MAIN CUSTOMER SEGMENTSDRIVING GROWTH ACROSS KEY HIGH TECH INDUSTRIES
© LPKF Laser & Electronics AG 33
Research & Development
Consumer Electronics
Automotive
• Universities• Schools • Design houses • Manufacturers• Governments
• OEMs • PCB
manufacturers • PCB assemblers • integrated
manufacturers
• Tier 1 and Tier 2 Automotive suppliers
• OEMs
• Suppliers of microfluidic and other high end medical devices
Solar Semiconductor Medical
• IDMs • Fabless • Foundries • OSATs
• Thin film solar module manufacturers
LPKF LASER & ELECTRONICS AG
SALESCUSTOMER ORIENTATION AND FOCUS ON APPLICATIONS
© LPKF Laser & Electronics AG 34
• We have a deep understanding of how our customers generate value and how we can help them with our solutions.
• Our solutions address the specific parameters that drive economic success for our customers. They directly create a competitive advantage for them.
• We place a strong focus on customer satisfaction, and we work closely with our customers across Business Units, geographies, functions.
• We are our customers’ first call to leverage and develop our new technologies into industrial applications.
CREATING VALUE FOR CUSTOMERS
GLOBAL MARKETS AND PARTNERSSTRONG PRESENCE IN ALL GLOBAL GROWTH AREAS
© LPKF Laser & Electronics AG 35
• LPKF solutions are sold in more than
70 countries.
• We have an extensive global sales &
service network, including
8 subsidiaries.
• We have 4 R&D and production
sites in Europe.
GLOBAL PLAYER
Locations
Representives
NEW MANAGEMENT BOARD SINCE 2018STRONG AND EXPERIENCED TEAM
© LPKF Laser & Electronics AG 36
MANAGEMENT BOARD
GÖTZ BENDELEChief Executive Officer (CEO)
• Board Member since 2018
• Joined LPKF Group in May 2018
• Worked as management consultant
followed by various leadership roles
across the high tech industry
CHRISTIAN WITTChief Financial Officer (CFO)
• Board Member since 2018
• Joined LPKF Group in September 2018
• Many years of experience as CFO in
industrial and high tech companies
Dr. Gotz M. Bendele (CEO) and Christian Witt (CFO)
THE LPKF SHARE – MEMBER OF SDAX INDEXPERFORMANCE AND STRONG PERCEPTION
© LPKF Laser & Electronics AG
37
ANALYST COVERAGE
• Warburg Research GmbH, Robert-Jan van der Horst
• FMR Frankfurt Main Research AG, Felix Lutz
• Hauck & Aufhäuser, Alina Köhler, Tim Wunderlich
• HSBC, Richard Schramm
• Quirin Privatbank AG, Klaus Soer
• EQUI.TS GmbH, Thomas Schießle
SHARE PRICE DEVELOPMENT Jan 2019 – Jan 2020
SHAREHOLDER STRUCTURE
28.95 % of the shares are held by Joerg Bantleon as an anchor shareholder (incl. shares of German Technology AG).
71% of the LPKF Laser & Electronics AG’s shares are in Free Float.
Major shareholders:
•Sicav Lazard Small Caps Euro ( > 3 % )
•Société Générale S.A. ( > 3 % )
•JPMorgan Asset Management (UK) Limited ( > 3 % )
• Bettina Schä[email protected]: +49 5131 7095 1382
• Katja [email protected]: +49 5131 7095 1387
INVESTOR RELATIONS CONTACT
NOTES
© LPKF Laser & Electronics AG 38
LEGAL NOTICE
Disclaimer regarding forward-looking statements
This document contains forward-looking statements and statements on future expectations which reflect the current opinions and expectations of the management with respect to future events. These statements are subject to known and unknown risks and uncertainties which can neither be controlled nor precisely estimated by LPKF Laser & Electronics AG, and which could cause actual results, performances and events to differ materially from those forecast or indicated here.
Actual results, performances and events may deviate to an unlimited extent as a consequence of: (i) general economic conditions, (ii) future changes in the performance of the financial markets, (iii) interest rates, (iv) currency exchange rates, (v) the behavior of other market participants, (vi) general competitive factors, (vii) changes in laws and regulations, (viii) changes in the policies of central banks, government authorities and/or (foreign) governments, (ix) regional and/or global conditions.
LPKF assumes no liability and does not intend to update any forward-looking statements to reflect any events or conditions the take place after the publication of this material.
No updating
LPKF AG assumes no liability for the (correctness and completeness of the) information contained herein, and does not intend to update this material.
No offer
This presentation is merely intended to provide information and is not an investment recommendation. It is not an offer and is merely intended for general information purposes. All the descriptions, examples and calculations contained in this presentation are only provided for the purpose of illustration.
Registered trademarks
All the names and trademarks referred to in this document are covered by unlimited copyright laws, and may not be used without the express permission of the relevant registered owners. The fact that they are mentioned in this document does not imply that they are not protected by the rights of third parties or companies.
LPKF Laser & Electronics AG, 2019
© LPKF Laser & Electronics AG 39
DISCLAIMER
THANK YOU!
40© LPKF Laser & Electronics AG