rofin-sinar technologies€¦ · standort hamburg. company brief revenue snapshot-headquartered in...

ROFIN-SINAR Technologies

Nasdaq RSTI US 7750431022

FY 2015 / 6 M

Investor Presentation, June 2015

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 U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014. 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.

.

„Safe Harbor“ Statement Under the Private Securities Litigation Reform Act

SAFE HARBOR STATEMENT

Standort Hamburg

Company Brief Revenue Snapshot

- Headquartered in Plymouth, MI,

and Hamburg (Germany)

- Worldwide over 2,260 employees

- Over 4,000 customers around the globe

- Global production, sales & service network

- Installed base of 52,000 laser units

- Focus on three primary laser applications:

MACRO, MICRO & MARKING

is a global leader in the development and manufacture of lasers and laser-based technologies for industrial material processing applications

Asia31% Europe

46%North America

23%

Split by region 6M/FY2015

FY 2015/6M: $245.1 million FY 2014 : $530.1 million

INDUSTRY & MARKET LEADER

Macro39% Micro &

Marking46%

Com-ponents

15%

Split by application 6M/FY2015

Additional Group Brands

such as NUFERNComplement The Group’s

Laser & Component Portfolio

INDUSTRY‘S BROADEST PRODUCT OFFERING

Primary applications:

Cutting, Welding, Surface TreatmentWith High Output

Powers


Fine Cutting & WeldingMicro Structuring

Perforating With Low To Medium Output Powers


Marking & EngravingWith Low Output Powers

CURRENT MARKETS & GROWTH DRIVERS

Total Net Sales: FY 2015/6M: $245.1 million (thereof laser-related: $136.9 million)FY 2014: $530.1 million (thereof laser-related: $308.7 million)

Primary Markets

Machine tool 36%

Automotive & Sub-Suppliers 15%

Consumer electronics

Photovoltaics 18%

Semiconductor

Medical device industry

Flexible packaging 31%

Others (i.e. M&D, Watch, Jewelry)

Current Market Situation

As

per

cent

age

ofla

ser-

rela

ted

sale

s

High-power fiber laser sales gained further momentum; record order entry for high-power fiber lasers; Stable demand for CO2lasers

High sales level in Q2 driven by strong demand across product portfolio; Outlook: In general worldwide good project base

In general depending on new product introductions; First orders from potential volume customers f. cutting of brittle materials w. FiLaser technologySolar business: good sales & order levels; high order entry inChina in Q2 although strong local competitionIncreased business level in Q2 w. stable marking business & higherdemand for annealing applications

Solid sales level in Q2; solid project base in US & Europe

Project-based business

M&D: Depending on US programsWatch: Switzerland-based; Jewelry sector: stable demand

GLOBAL PRODUCTION, SALES & SERVICE NETWORK

Appendix - Company

- More than 20 production facilities in North America, Europe & Asia - Customer service support in over 50 countries - Over 150 sales engineers & approx. 430 customer service personnel- Regional & industry specialized sales engineers

STRATEGIC BENEFITS OF GLOBAL REACH

Global production flexibility

Global sales and service capabilities combined with ability to deliver local

customer focus and solutions

Global application centres

Large, global installed base of approximately 52,000 units drives strong

recurring service and parts business

Revenues from service and spare parts typically > 25% of revenues

Local management with in-depth market know-how

~ US$ 2.6 billion + 6%

Thereof:

* Source: Industrial Laser Solutions (1/2015): The presentation mode of ILS has changed – category „other“ includes i.e. direct diode lasers. * Data for revenueswith laser units only! All industrial lasers excluding excimer!

Leader in CO₂ lasers and #2 in faster growing fiber lasers, by revenue

Fiber laser market projected to grow at approx. 14% annual rate

~ US$ 2.8 billion + 5%Thereof:

34%

17%

36%

13%

CO2

SSL

FL

Other

32%

16%

39%

13%

CO2

SSL

FL

Other

Global Laser Revenues 2014* Global Laser Revenues 2015 E*

GLOBAL GROWING INDUSTRIAL MATERIALS PROCESSING MARKET IN 2014

GSI

C02 laserincl. Slab Technology

Lamp/Diode-pumped SSL

Fiber laser

Diode laser

Ultra-short pulse

*

()

()

Main competitor in terms of:

- fiber lasers (#1)- global presence- market share

*

?

Covering alltechnologies

#2 in fiber lasers

Main competitorin terms of:- portfolio- global presence- market share

* Fiber laser = SPI Laser& JK Laser

Strong in micro-electronics withUV and excimerLasers

#1 in low-powerCO2 lasers byunits (Synrad)

Changing tosystemmanufacturer; less lasermanufacturer

Strong in science& research; lessin industrial app-lications

High power

Low power

High power

Low power

High power

Low power

High power

Low power

High power

Low power

High power

Low power

High power

Low power

MOST DIVERSE IN COMPETITIVE LANDSCAPE

Company

Industrial Lasers

CompetitivePosition

Capabilities across all important industrial laser technologies position ROFIN todeliver solutions to a global customer base

ROFIN’s Comprehensive Range of Fiber Lasers

Fiber laser-related figures FY2015/6M: Sales: 534 Units (USD 39.6 million)Order Entry: 534 Units (USD 41.4 million)Backlog: 386 Units (USD 39.1 million)

MEDIUM-POWER SERIESHIGH-POWER SERIES LOW-POWER SERIES & AMPLIFIERS

POSITIONED TO TAKE SHARE OF GROWING$950MM+ FIBER LASER MARKET

Supported by internally developed and acquired technologies

ROFIN’s FIBER LASER TECHNOLOGY

PRODUCTION OF DIODESPRODUCTION OF DIODES

LOW IMPACT

LOW RISK

WAFER

1

LOW IMPACT

LOW RISK

DIODE PACKAGE

23

LOW IMPACT

LOW RISK

FIBER PREFORM4

LOW IMPACT

LOW RISK

ACTIVE FIBER 5

LOW IMPACT

LOW RISK

FIBER LASER MODULE

From Chips toMulti-kW Fiber Lasers

Technology

Vertical integration!

VERTICALLY INTEGRATED FIBER LASER PRODUCTION

6

LOW IMPACT

LOW RISK

FIBER LASER UNIT w. PUMP MODULE

LOW IMPACT

LOW RISK

7

FIBER LASER

Positioned to benefit from substantial investment made to achieve vertical integration

PUMP MODULE & FIBER LASER UNIT

300 W pumping modules used in production

12 x 300 W Pump Modules

POWER SCALING BY POWER COMBINING

2 kW fiber laser units used in production

Scaling Fiber Laser Units to Multi-kW

ROFIN‘s PROPRIETARY FIBER LASER DESIGN

IMPROVED COMMERCIAL PRODUCTION OF HIGH-POWER FIBER LASERS

Potential for ”Cold Material Processing” with Ultrashort Pulse Lasers

Suitable for bio-absorbable polymers

Ultrashort pulse lasers such asfemto- and picosecond lasersopen up new applications in various markets, i.e. in themedical device, semiconductor orsolar sector

So-called „cold lasers“ processmaterials faster than energy candiffuse within the atomic lattice. Therefore no heat is transferredto the surrounding material, whicheliminates any recast and burr. Dramatically reduced post-processing is the consequence.

NEW PROCESSES & APPLICATIONS SUPPORTUSPL GROWTH

ROFIN one of first companies to commercialize technology for industrial applications

KEY DRIVERS OF MARGIN IMPROVEMENT

Blended fiber laser gross margin improvement through optimized design and vertical integration

25% reduction in high-power fiber laser product cost projected for 2015, significantly improving gross margins, with further improvement expected in 2016

Gross margin improvement based on current pricing outlook

Incremental benefits from growing scale in fiber lasers & ultrashort pulse lasers

Greater absorption of fixed costs

Introduction of new applications with ultrashort pulse lasers

New product introductions across existing technologies

Projecting to achieve consolidated gross margins of approximately 40% by the end of FY 2015

511

602

294

475

612

534 531553

264

480

575

350

424

598

540560

530

245

117143

88

139 153 147118

141160

0

10

20

30

40

50

60

70

0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 2013 2014 2015/6M

Order Entry Revenue Order Backlog Net Income *

Financial Crisis

FY2015/6M

US$/Euro: 0,75 0,67 0,74 0,74 0,72 0,77 0,76 0,74 0,85 * Attributable to RSTI

In Mio. USD

KEY FINANCIALS – HISTORICAL OVERVIEW

Net Income: 14.9 Mio.

KEY FINANCIALS – HISTORICAL OVERVIEW

* Excl. intangibles amortization - ** Except per share amounts

KEY FIGURES (in US$ million**) 2009 2010 2011 2012 2013 2014 2015/6M

CASH FLOW (in US$ million) 2009 2010 2011 2012 2013 2014 2015/6M

EARNINGS GUIDANCE (subject to safe harbor statement) 2015/Q3 FY 2015

Revenue 349.6 423.6 597.8 540.1 560.1 530.1 245.1Cost of goods sold * 217.5 257.3 365.7 343.8 363.6 341.2 157.1Gross profit 132.1 166.3 232.1 196.4 196.5 188.9 88.0Selling, general & administrative * 88.9 89.9 107.5 101.1 101.7 106.1 48.6Research & development* 31.5 30.1 38.3 42.6 43.0 45.9 20.3Income from operations 8.1 44.0 83.7 50.4 49.2 34.1 17.6Interest expense net 0.3 0.4 (0.1) 0 0.1 0.2 0.0Taxes 5.2 15.4 26.1 17.2 14.1 11.5 5.8Net income (attributable to RSTI) 9.2 29.8 60.0 34.5 34.8 25.2 14.9EPS diluted 0.31 1.02 2.06 1.20 1.22 0.89 0.53Order entry 293.7 474.9 612.1 533.9 531.1 553.4 263.9Order backlog 87.6 138.9 153.2 147.0 118.0 141.3 160.1Weighted average s/o in million 29.2 29.2 29.1 28.7 28.4 28.2 28.2

Revenues $130 - $135 million $515 - $535 millionEPS $0.39 - $0.42 net income profitability for the FY

is estimated to be at approx. 8%

of net sales at the mid-point of the sales guidance

Cash flow from operations 55.4 36.8 50.0 22.0 57.0 35.5 30.2Cash flow from investing (18.2) (8.3) (28.5) (39.4) (15.5) (24.2) (10.1)

Thereof Capex (7.8) (8.6) (21.8) (27.3) (16.2) (10.4) (23.1)Depreciation/Amortization 13.0 11.6 13.0 13.9 15.3 17.3 8.4

*** Equity excl. minority interest

FINANCIAL METRICS – HISTORICAL OVERVIEW

KEY FIGURES (as percentage of net sales) 2009 2010 2011 2012 2013 2014 2015/6MRevenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Cost of goods sold 62.2% 60.7% 61.2% 63.6% 64.9% 64.4% 64.1%Gross profit 37.8% 39.3% 38.8% 36.4% 35.1% 35.6% 35.9%Selling, general & administrative 25.4% 21.2% 18.0% 18.7% 18.2% 20.0% 19.8%Research & development 9.0% 7.1% 6.4% 7.9% 7.7% 8.7% 8.3%Income from operations 2.3% 10.4% 14.0% 9.3% 8.8% 6.4% 7.2%Interest expense / (Income) 0.1% 0.1% 0.0% 0,0% 0.0% 0.0% 0.0%Net income (attributable to RSTI) 2.6% 7.0% 10.0% 6.4% 6.2% 4.7% 6.1%

Effective Tax Rate 36.1% 34.1% 29.9% 32.8% 28.8% 31.4% 29.2%Revenue from service, training, spare parts 30% 30% 26% 28% 26% 29% 30%Revenue from components 12% 10% 10% 12% 13% 13% 15%

EBIT 4.2% 10.8% 14.4% 9.6% 8.7% 7.0% 8.5%EBITDA 7.9% 13.5% 16.6% 12.1% 11.5% 10.2% 11.9%

ROE*** 2.2% 7.2% 12.7% 7.1% 6.4% 4.7%ROWC 3.3% 10.4% 18.0% 10.8% 9.3% 6.7%

RETURN ANALYSIS 2009 2010 2011 2012 2013 2014

STRONG BALANCE SHEET

ASSETS (in US$ thousands) 03/31/2015 09/30/2014

Topic Four

Total current assets 445,069 473,875Including:Cash, cash equivalents & short term investments 146,116 141,658Trade accounts receivable, net 86,689 108,026Inventories, net 177,541 190,321Total non-current assets 208,188 214,710Total assets 653,257 688,585

Total current liabilities 96,735 99,853Including:Short-term debt 4,971 3,255Trade accounts payable 21,482 22,702Total non-current liabilities 52,243 50,023Including:Long-term debt 18,067 11,511Net stockholders' equity 504,279 538,709Total liabilities and stockholders’ equity 653,257 688,585

Days Sales Outstanding 65 74Equity Ratio 77% 78%

LIABILITIES & STOCKHOLDERS’ EQUITY 03/31/2015 09/30/2014

Marking Housing & SIM CardDP SSL, FL

Degating of Poly-carbonate Display

CO2 Laser

Battery Welding /Marking

FL

Surface FinishingDP SSL

Cutting of Mem/SD Card

DP SSLLithographyExcimer, DP SSL, CO2

Flat Panel/Screen Patterning

USPL, DP SSL, Excimer

Plastic Welding Diode Laser

Wafer AnnealingCO2 Laser, Diode

Laser

Welding MetalFrame

DP SSL, FL

Spot WeldingHousing

LP SSL, FL

Cutting ofSapphire Glas

FL, USPL

LASERS FOR COMMUNICATION DEVICES

Mobile & Smart Communication Devices Make Use of Different

Laser Technologies

Packaging ProcessingLeather Processing

Cutting of Wood Glas/Acrylics Cutting

Cutting & Marking of Textiles & Other Tissues

Cutting & Marking of Paper & Adhesive Foils

Infinite applicationpossibilities for low-/medium power CO2 lasers due to their

wavelength

Vast Market for CO2 Laser Processing: Organic Materials

LASERS FOR ORGANIC MATERIALS

Engine Ventilation Components Car Key Housings Press Taps

(Packaging Industry)SupplementaryWater Pumps

Potential for polymer welding in various industrial sectors

LASER POLYMER WELDING

By courtesy of By courtesy of Bühler Motor GmbH

Glass processing portfolio further enhanced through the acquisition of FiLaser‘s

unique singulation technology for brittle materials like glass &

sapphire

Strong IP Portfolio for glass & sapphire processing applications

SPECIAL LASER APPLICATIONS

ROFIN‘s Existing Glass Applications Portfolio

ROFIN‘s Expanded Applica-tion Portfolio for Glass & Co.

… at all times … for our loved ones … in communications … while having a snack

LASERS IN DAILY LIFE

… with good company …for keeping food fresh … enjoying leisure time … creating masterpieces

... and Last but not Least ...Laser applications light up our lives ...

Standort Hamburg

Industry leader in growing industrial laser market

‒ Greatest breadth of product portfolio

‒ Largest global footprint and customer reach

‒ Leader in technological innovation and acquisition integration

Use of industrial lasers expanding significantly across multiple end markets

Clear path to enhanced profitability driven by new products, new

configurations, improving designs in fiber lasers and ultrashort pulse lasers

KEY STRATEGIC & INVESTMENT HIGHLIGHTS

APPENDIX

Nasdaq: since 1996 “RSTI”

Frankfurt Stock Exchange: since July 2001 ISIN: US7750431022

Indices: Russell 2000, S&P SmallCap 600

Shares O/S (diluted): ~ 28.2 million (6 M/FY2015)

Float: ~ 99%

Share distribution: ~ 90% USA, ~ 10% Europe/ROW

Fiscal year ends Sept. 30

Earnings results 3rd quarter FY 2015: August 6, 2015

ROFIN-SINAR Technologies Inc. Investor Relations Contact:c/o ROFIN-SINAR Laser GmbH Katharina ManokBerzeliusstrasse 87 Tel.: +49-40-73363-425622113 Hamburg, Germany Fax: +49-40-73363-4138

email: [email protected]

Common Stock

ROFIN‘s Common Stock

THE ROFIN SHARE

COMPANY HISTORY – MILESTONES

Appendix - Company

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 2014 - Acquisition of FiLaser’s assets to commercialize technology

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