the power of laser technology - lpkf: pcb prototyping ...€¦ · • pcb manufacturers • pcb...

THE POWER OF LASER TECHNOLOGYLPKF Equity Story, November 2019

• Leading supplier of laser-based precision manufacturing solutions

• Enabler of miniaturization and advanced electronic manufacturing

• 43 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 LASER TECHNOLOGY COMPANY

© LPKF Laser & Electronics AG 2

GLOBAL PLAYER

• Selling in 71 countries; Export share of 89 %

• Largest market: Asia

• More than 655 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

HIGH-TECH 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

• 120.0 million EUR revenue in 2018

• 6.8 million EUR EBIT in 2018

• Guidance for 2019 Revenue: 135 - 140 Mio. EUREBIT margin: 12% - 14%ROCE: 20 - 25%

EBIT development in € million

PROFITABLE GROWTH

Our USPs

COMPETITIVE ADVANTAGE

fromsuperior customer

valueand accelerated

innovation

DRIVERS OF OUR COMPETITIVE ADVANTAGEWE DERIVE DIFFERENTIATION FROM MULTIPLE SOURCES


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

INNOVATIONPRODUCT PORTFOLIO REFLECTS TECHNOLOGY LEADERSHIP


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

Our Markets & Approach

7

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

MAIN CUSTOMER SEGMENTSDRIVING GROWTH ACROSS KEY HIGH TECH INDUSTRIES


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


• 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

LPKF SERVICE BUSINESSUNIQUE KNOW-HOW MAXIMIZES CUSTOMER VALUE CREATION


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

GLOBAL MARKETS AND PARTNERSSTRONG PRESENCE IN ALL GLOBAL GROWTH AREAS


• 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

12

BENEFITS FOR OUR CUSTOMERSVALUE AND COMPETITIVE ADVANTAGE

CleanCut Technology• Fastest cutting process in the market• Highest yield• 100% carbonization free

Laser Scribing• Increase of solar module efficiency of 10%• Dead zone below 140 µm• Scribing speed of 2.5 m/s

LIDE• Extends the operating range of glass and

replaces silicon in microsystem • Up to 5,000 holes with diameter < 5 µm in

1 second

Laser Welding• Meets the highest demands for safety and

visual appearance• Process monitoring for continuous tracking • Highest quality joining method


OUR FOUR BUSINESS SEGMENTSWIDE RANGE OF TAILOR-MADE SOLUTIONS


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.

14

SEGMENT “DEVELOPMENT”LEADING IN RAPID PROTOTYPING WORLD-WIDE


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

15

SEGMENT “ELECTRONICS”LASER SYSTEMS FOR CUTTING & DRILLING PCBS




• OEMs, PCB manufacturers and PCB assemblers

• Competitors: ESI (USA), HAN‘s (CN)Schmoll (D), EO Technics (KR) VIA Mechanics (JP)HG Laser (CN)

Market leaderin cutting

Printed-Circuit-Boards

New PowerCut 6080

16

SEGMENT “ELECTRONICS” LIDE: ULTRA FINE DRILLING AND CUTTING OF VERY THIN GLASS




• Electronic components

• Micro Systems/Sensors

• Micro-electro-mechanical systems (MEMS)

• Micro-optical-components

• IC Packaging

• Display

• 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

17

SEGMENT “WELDING”LASER WELDING OF PLASTIC COMPONENTS




• 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




• 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

Strategic Approach and Goals

20

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

• Further increase number of applications

served by LPKF solutions

• Further pursue development of new

technologies & applications

• Extend technology leadership

• Establish manufacturing services as

additional growth platform

• Actively manage individual

segment/application volatility via synergies

• Optional: 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

Financial Report Q3 2019 and Outlook

50.7

81.291.1

115.1

129.7119.7

87.391.1

102.1

120.0

135-140

7.017.3 15.2 20.4 23.2

12.7

-3.7 -6.84.0 6.8

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019e

Revenue Guidance range EBIT

REVENUE AND EBIT: LONG TERM DEVELOPMENTRETURN TO SUSTAINED PROFITABLE GROWTH


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

• Guidance 2019

Revenue: 135 - 140 million EUR

EBIT margin: 12% - 14%

• Strategic Goal:

EBIT-margin: > 14 %

profitable growth in all segments & new

areas

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

23

KEY GROUP FIGURES: 9 MONTHS 2019STRONG DELIVERY


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

24

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


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

25

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


EBIT in Mio. EUR

9 months

2018

9 months

2019 ∆%

Electronics-1.7 4.5 364.7

Development2.7 1.5 -44.4

Welding-2.6 -0.4 84.6

Solar6.7 9.7 44.8

Total 5.0 15.3 206.0

in Mio. EUR 31 Dec 2018 30 Sept 2019 ∆%

Total assets 128.8 130.3 1.2

Cash and cash equivalents 3.7 20.5 454.1

Equity 77.7 89.3 14.9

Net financial debt 16.3 -12.4 -176.1

Net working capital 34.1 27.9 -18.0

Equity ratio (%) 60.4 68.5

26

BALANCE SHEET STRUCTURE AS PER SEPT 30, 2019KEY PERFORMANCE INDICATORS IMPROVED AGAIN


• 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

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

Interest - 0.6 - 0.4

Change in net financial position - 8.9 28.8

Net financial debt as per September 30 14.9 -12.4

27

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

• We will continue to reduce working capital

during 2019 and in 2020


28

GUIDANCE AS OF 9 SEPTEMBER 2019FOCUS: SUSTAINABLE, PROFITABLE AND STRONG GROWTH

In the following years, LPKF intends to:

• further increase the profitability

of the company

• generate a sustainable EBIT margin of

more than 14%

For 2019, LPKF anticipates:

• Group sales of between 135 and 140

million EUR

• EBIT margin of between 12% and 14%

• which corresponds to a

ROCE of between 20% and 25 %


FINANCIAL YEAR 2019 FOLLOWING YEARS

Company Information

NEW MANAGEMENT BOARD SINCE 2018STRONG AND EXPERIENCED TEAM


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 AT A GLANCEPERFORMANCE AND STRONG PERCEPTION


31

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 Nov 2018 – Nov 2019

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:

•Luxempart Pipe SARL via Luxunion S.A. ( > 5 % )

•Sicav Lazard Small Caps Euro ( > 3 % )

•Société Générale S.A. ( > 3 % )

• Bettina Schä[email protected]: +49 5131 7095 1382

• Katja [email protected]: +49 5131 7095 1387

INVESTOR RELATIONS CONTACT

Investment Highlights

33

INVESTMENT HIGHLIGHTS5 REASONS TO INVEST IN LPKF

•Leading global provider of laser applications in growing and dynamic markets

1. MARKETS

•Miniaturization and digital manufacturing need laser technology

2. MEGATRENDS

•Innovation strength from invest of ≈10 % of revenue p.a. in R&D

•Technology leadership enables young product portfolio

3. INNOVATION

•Deep understanding of customer requirements for value creation

•Established global sales and service network

4. CUSTOMER FOCUS

•Picking up speed in growth, profitability and commercializing new technologies

5. TIMING

34

GLOSSARY OF TECHNICAL TERMS

EBITEarnings Before Interest and Taxes

EBIT marginOperating profit as a percentage of revenue

Free float According to the definition of Deutsche Börse, shares held by asset managers, funds and pension funds, investment companies or foreign investment companies count as free float. German Technology is an exception, since the shareholder has positioned himself as a long-term anchor shareholder.

FTE(Full-Time-Equivalent) A labor comparison metric, FTE expresses the workforce in terms of the compensable workload handled by a full-time employee (i.e. working a standard, full-time schedule).

LDS technology(Laser Direct Structuring) A laser-based manufacturing process for three-dimensional circuit carriers, otherwise known as molded interconnect devices (MIDs), made of plastic, which also handle mechanical functions.

LIDE (Laser Induced Deep Etching) High-precision method for machining glass. LIDE enables the creation of ultra high-precision holes and structures in glass at very high speeds, and also includes the TGV method.

LTP method(Laser Transfer Printing) A method for digitally printing functional pastes as an alternative to screen printing.

PCBPrinted circuit board

Rapid prototypingA method for the chemical-free manufacture of prototype printed circuit boards in in-house laboratories.

ROCEReturn on Capital Employed

StencilLasersLaser systems for cutting fine, highly precise openings in a stainless steel template (stencil). Stencils are used for the precision printing of solder paste onto printed circuit boards - a vital technique for today’s closely packed PCBs.

Thin-film solar panelsThin-film solar panels are manufactured by coating a sheet of glass or a film with extremely thin layers. A laser divides each layer into strips to enable the series connection of cells in the finished module.


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


DISCLAIMER

the power of laser technology - lpkf: pcb prototyping ...€¦ · • pcb manufacturers • pcb...

Documents