ROFIN-SINAR Technologies

Transcription

1 ROFIN-SINAR Technologies Nasdaq RSTI US FY 2014 / 12 M Investor Presentation, Jan. 2015

2 SAFE HARBOR STATEMENT Safe Harbor Statement Under the Private Securities Litigation Reform Act 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, 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.. Page 2

3 Standort Hamburg INDUSTRY & MARKET LEADER is a global leader in the development and manufacture of lasers and laser-based technologies for industrial material processing applications Company Brief Headquartered in Plymouth, MI, and Hamburg (Germany) Worldwide 2,270 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 FY 2014: FY 2013 : Revenue Snapshot Macro 40% $530.1 million $560.1 million Components 13% Micro & Marking 47% Split by application FY2014 Asia 32% Europe North 49% America 19% Split by region FY2014 Page 3

4 INDUSTRY S BROADEST PRODUCT OFFERING Primary Primary applications: applications: Additional Group Brands Fine Cutting, such & Welding, as NUFERN Marking Complement Surface & Treatment Engraving Micro Structuring The Group s With Low Perforating Laser With Output High & With Component Output Powers Low To Medium Output Powers Portfolio Page 4

5 CURRENT MARKETS & GROWTH DRIVERS Total Net Sales: FY 2014: Primary Markets FY 2013: $530.1 million (thereof laser-related: $308.7 million) $560.1 million (thereof laser-related: $343.2 million) Current Market Situation Machine tool 40% Automotive & Sub-Suppliers 10% Consumer electronics Photovoltaics 19% Semiconductor Medical device industry Flexible packaging Others (i.e. M&D, Watch, Jewelry) As percentage of laser-related sales 31% Good sales level, mainly in China; Increasing demand for highpower fiber lasers and demand for CO 2 lasers stable Excellent business level in Q4, mainly for MACRO applications like welding and ablation; Further upside potential for applications for ultra-short pulse lasers, i.e. injection nozzle drilling Significantly improved demand from consumer electronics (CE) in Q4 than in Q3; New opportunity in CE: cutting of brittle materials Very low business level in Q4; Projects for efficiency increase applications, but strong local competitors (mainly in China) Stable business in Q4, primarily for IC marking in the Asian region Solid business in Q4, mainly for stent cutting systems and systems for marking implants Project-based business M&D: Depending on US programs; outlook is improving Watch and jewelry sectors: strong in Q4 Page 5

6 GLOBAL PRODUCTION, SALES & SERVICE NETWORK - 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 Appendix - Company Page 6

7 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 Page 7

8 GLOBAL GROWING INDUSTRIAL MATERIALS PROCESSING MARKET IN 2013 Global Laser Revenues 2013* Global Laser Revenues 2014 E* ~ US$ 2.4 billion + 3.6% ~ US$ 2.5 billion + 4.6% Thereof: Thereof: SSL 19% SSL 18% CO 2 36% 12% FL 33% CO 2 32% 12% FL 38% Other Other Leader in CO₂ lasers and #2 in faster growing fiber lasers, by revenue Fiber laser market projected to grow at 15%+ annual rate * Source: Industrial Laser Solutions / January 2014 The presentation mode has changed category other includes i.e. direct diode lasers. * Data for revenues with laser units only! All industrial lasers excluding excimer! Page 8

9 MOST DIVERSE IN COMPETITIVE LANDSCAPE Company GSI Industrial Lasers C0 2 laser incl. Slab Technology Lamp/Diode-pumped SSL Fiber laser Diode laser Ultra-short pulse 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 Competitive Position Covering all technologies #2 in fiber lasers Main competitor in terms of: - portfolio - global presence - market share * Fiber laser = SPI Laser Strong in microelectronics with UV and excimer Lasers Main competitor in terms of: - fiber lasers (#1) - global presence - market share #1 in low-power CO 2 lasers by units (Synrad) Changing to system manufacturer; less laser manufacturer Strong in science & research; less in industrial applications Capabilities across all important industrial laser technologies position ROFIN to deliver solutions to a global customer base Page 9

10 INDUSTRY LEADER IN GROWING INDUSTRIAL LASER MARKET: LEADER IN TECHNOLOGICAL INNOVATION & ACQUISITION INTEGRATION Page 10

11 POSITIONED TO TAKE SHARE OF GROWING $800MM+ FIBER LASER MARKET ROFIN s Comprehensive Range of Fiber Lasers Fiber laser-related figures FY2014: Sales: Units (USD 85.4 million) Order Entry: Units (USD 93.7 million) Backlog: 386 Units (USD 37.3 million) HIGH-POWER SERIES MEDIUM-POWER SERIES LOW-POWER SERIES & AMPLIFIERS Supported by internally developed and acquired technologies Page 11

12 ROFIN s FIBER LASER TECHNOLOGY VERTICALLY INTEGRATED FIBER LASER PRODUCTION WAFER 1 LOW IMPACT LOW RISK DIODE PACKAGE 2 LOW IMPACT LOW RISK FIBER PREFORM LOW IMPACT LOW RISK PRODUCTION 3 OF DIODES OF DIODES LOW IMPACT LOW RISK 4 Vertical integration! ACTIVE FIBER 5 FIBER LASER MODULE LOW IMPACT LOW RISK FIBER LASER UNIT w. PUMP MODULE 6 From Chips to Multi-kW Fiber Lasers Positioned to benefit from substantial investment made to achieve vertical integration LOW IMPACT LOW RISK FIBER LASER LOW IMPACT LOW RISK 7 Technology Page 12

13 RANGE OF TECHNOLOGY & PROCESS CREATES SUBSTANTIAL BARRIERS TO ENTRY FROM EPITAXY ARCHITECTURE TO DIODE PUMP MODULES MBE REACTOR WAFER PROCESSING BAR PRODUCTION MODULE FABRICATION Wafer Epitaxy Wafer/Chip Processing Diode Bar Processing Diode Module Fabrication Page 13

14 IMPROVED COMMERCIAL PRODUCTION OF HIGH-POWER FIBER LASERS IN EARLY 2015 ROFIN s PROPRIETARY FIBER LASER DESIGN PUMP MODULE & FIBER LASER UNIT 8 x 200 W Pump Modules POWER SCALING BY POWER COMBINING 4 x up to 1,5 kw Fiber Laser Units Successfully introduced 200 W (x 8) instead of 135 W (x 12) pump modules for 1 kw fiber laser unit Target: 300 W pump modules in kw fiber laser unit realized and in production (including 12 x 200 W pump modules) Target: 2 kw fiber laser units in 2014 (including 12 x 300 W pump modules) Phasing in: Q1/2015 Page 14

15 NEW PROCESSES & APPLICATIONS SUPPORT USPL GROWTH Potential for Cold Material Processing with Ultrashort Pulse Lasers So-called cold lasers process materials faster than energy can diffuse within the atomic lattice. Therefore no heat is transferred to the surrounding material, which eliminates any recast and burr. Dramatically reduced postprocessing is the consequence. Ultrashort pulse lasers such as femto- and picosecond lasers open up new applications in various markets, i.e. in the medical device, semiconductor or solar sector Suitable for bioabsorbable polymers ROFIN one of first companies to commercialize technology for industrial applications Page 15

16 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 Page 16

17 FINANCIAL HIGHLIGHTS Page 17

18 KEY FINANCIALS HISTORICAL OVERVIEW 700 In Mio. USD Order Entry Revenue Order Backlog Net Income * FY Financial Crisis Net Income: 25.2 Mio US$/Euro: 0,81 0,75 0,67 0,74 0,74 0,72 0,77 0,76 0,74 * Attributable to RSTI Page 18

19 KEY FINANCIALS HISTORICAL OVERVIEW KEY FIGURES (in US$ million**) Revenue Cost of goods sold * Gross profit Selling, general & administrative * Research & development* Income from operations Interest expense net (3.0) (0.1) Taxes Net income (attributable to RSTI) EPS diluted Order entry Order backlog Weighted average s/o in million CASH FLOW (in US$ million) Cash flow from operations Cash flow from investing 52.2 (18.2) (8.3) (28.5) (39.4) (15.5) (24.2) Thereof Capex (14.5) (7.8) (8.6) (21.8) (27.3) (16.2) (10.4) Depreciation/Amortization EARNINGS GUIDANCE (subject to safe harbor statement) 2015/Q1 FY 2015 Revenues $127 - $132 million $550 - $570 million Gross profit (in percentage of net sales) 36% - 37% Period expenses (in percentage of net sales, incl. intangible amortization) 27% - 28% EPS $028 - $0,30 ~ $1,60 (at mid of range) * Excl. intangibles amortization - ** Except per share amounts Page 19

20 FINANCIAL METRICS HISTORICAL OVERVIEW KEY FIGURES (as percentage of net sales) Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Cost of goods sold 56.8% 62.2% 60.7% 61.2% 63.6% 64.9% 64.4% Gross profit 43.2% 37.8% 39.3% 38.8% 36.4% 35.1% 35.6% Selling, general & administrative 18.3% 25.4% 21.2% 18.0% 18.7% 18.2% 20.0% Research & development 7.1% 9.0% 7.1% 6.4% 7.9% 7.7% 8.7% Income from operations 16.6% 2.3% 10.4% 14.0% 9.3% 8.8% 6.4% Interest expense / (Income) (0.5)% 0.1% 0.1% 0.0% 0,0% 0.0% 0.0% Net income (attributable to RSTI) 11.1% 2.6% 7.0% 10.0% 6.4% 6.2% 4.7% Effective Tax Rate 34.4% 36.1% 34.1% 29.9% 32.8% 28.8% 31.4% Revenue from service, training, spare parts 25% 30% 30% 26% 28% 26% 29% Revenue from components 10% 12% 10% 10% 12% 13% 13% EBIT 16.4% 4.2% 10.8% 14.4% 9.6% 8.7% 7.0% EBITDA 19.2% 7.9% 13.5% 16.6% 12.1% 11.5% 10.2% RETURN ANALYSIS ROE*** 15.8% 2.2% 7.2% 12.7% 7.1% 6.4% 4.7% ROWC 24.7% 3.3% 10.4% 18.0% 10.8% 9.3% 6.7% *** Equity excl. minority interest Page 20

21 STRONG BALANCE SHEET ASSETS (in US$ thousands) 09/30/ /30/2013 Total current assets 473, ,292 Including: Topic Four Cash, cash equivalents & short term investments 141, ,977 Trade accounts receivable, net 108, ,665 Inventories, net 190, ,460 Total non-current assets 214, ,618 Total assets 688, ,910 LIABILITIES & STOCKHOLDERS EQUITY 09/30/ /30/2013 Total current liabilities 99, ,514 Including: Short-term debt 3,255 3,709 Trade accounts payable 22,702 24,596 Total non-current liabilities 50,023 47,978 Including: Long-term debt 11,511 14,913 Net stockholders' equity 538, ,418 Total liabilities and stockholders equity 688, ,910 Days Sales Outstanding Equity Ratio 78% 78% Page 21

22 USE OF INDUSTRIAL LASERS EXPANDING SIGNIFICANTLY ACROSS MULTIPLE END MARKETS Page 22

23 LASERS FOR COMMUNICATION DEVICES Spot Welding Housing LP SSL, FL Cutting of Sapphire Glas FL, USPL Mobile & Smart Communication Devices Make Use of Different Laser Technologies Marking Housing & SIM Card DP SSL, FL Degating of Polycarbonate Display CO 2 Laser Welding Metal Frame DP SSL, FL Battery Welding /Marking FL Wafer Annealing CO 2 Laser, Diode Laser Surface Finishing DP SSL Plastic Welding Diode Laser Flat Panel/Screen Patterning Lithography Cutting of Mem/SD Card DP SSL USPL, DP SSL, Excimer Excimer, DP SSL, CO 2 Page 23

24 LASERS FOR ORGANIC MATERIALS Vast Market for CO 2 Laser Processing: Organic Materials Cutting & Marking of Paper & Adhesive Foils Leather Processing Infinite application possibilities for low-/medium power CO 2 lasers due to their wavelength Packaging Processing Cutting & Marking of Textiles & Other Tissues Cutting of Wood Glas/Acrylics Cutting Page 24

25 LASERS FOR MEDICAL DEVICES Market opportunities through expansion of improved healthcare Fine Welding of Endoscopes Presicion Cutting of Medical Wires & Hyper Tubes Catheter Marking Cutting of Hip Rasps & Other Medical Instruments Bonesaw Cutting Special Markets Laser Technology is an Enabling Technology in Medical Devices: Biocompatible Joining Durable Marking Finest Cuts Surgical instruments cutting welding marking drilling Ophthalmological implants cutting Dental implants welding marking Stents cutting welding marking Orthopedical implants cutting welding marking Pacemakers welding marking Endoscopy cutting welding marking Nuclear seeds welding Therapeutical instruments cutting welding marking drilling Diagnostic devices cutting welding Lab and hospital equipment marking Surgical needles drilling Stent Cutting (Nitinol) Pacemaker Welding Page 25

26 LASER POLYMER WELDING Potential for polymer welding in various industrial sectors Engine Ventilation Components Car Key Housings Press Taps (Packaging Industry) Supplementary Water Pumps By courtesy of By courtesy of Bühler Motor GmbH Page 26

27 SPECIAL LASER APPLICATIONS Strong IP Portfolio for glass & sapphire processing applications Glass processing portfolio further enhanced through the acquisition of FiLaser s unique singulation technology for brittle materials like glass & sapphire ROFIN s Existing Glass Applications Portfolio ROFIN s Expanded Application Portfolio for Glass & Co. Page 27

28 LASERS IN DAILY LIFE Laser... and applications Last but not light Least up... our lives... at all times for our loved ones in communications while having a snack with good company for keeping food fresh enjoying leisure time creating masterpieces Page 28

29 Standort Hamburg KEY STRATEGIC & INVESTMENT HIGHLIGHTS 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 Page 29

30 APPENDIX Page 30

31 THE ROFIN SHARE ROFIN s Common Stock Nasdaq: since 1996 RSTI Frankfurt Stock Exchange: since July 2001 ISIN: US Indices: Russell 2000, S&P SmallCap 600 Shares O/S (diluted): ~ 28.2 million (FY2014) Float: ~ 99% Share distribution: ~ 90% USA, ~ 10% Europe/ROW Fiscal year ends Sept. 30 Earnings results 1 st quarter FY 2015: February 5, 2015 ROFIN-SINAR Technologies Inc. Investor Relations Contact: c/o ROFIN-SINAR Laser GmbH Katharina Manok Berzeliusstrasse 87 Tel.: Hamburg, Germany Fax: ir@rofin.com Common Stock Page 31

32 COMPANY HISTORY MILESTONES Founding of ROFIN-SINAR Laser Acquired by Siemens Acquisition of Spectra Physic s Industrial Laser Division in the US Acquisition of Laser-Optronic in Germany (laser marking systems) Spun off from Siemens (IPO on Nasdaq Stock Exchange) Acquisition of Dilas Diodenlaser, Germany Acquisition of Palomar Technology UK (today Rofin-Sinar UK) Acquisition of Carl Baasel Lasertechnik, Germany Acquisition of Z-Laser S.A., Spain Secondary listing at the Frankfurt Stock Exchange (TecDAX ) Expansion in Asia; Founded subsidiaries in Taiwan and Korea Acquisition of Optoskand, Sweden Secondary offering of 2.86 Mio shares at $ Acquisition of PRC and Lee Laser, USA Founded subsidiaries in China, Canada and USA (Dilas Diode Laser, Inc.) Acquisition of Corelase Oy, m2k-laser GmbH, ES Technology Acquisition of Nufern, USA (fibers and fiber laser technology) Foundation of ROFIN-BAASEL Swiss AG Formed Nanjing Eastern Technologies and Dilas Diodelaser China Closed acquisition of China-based NELC Acquired LASAG AG (Thun/Switzerland) and its worldwide activities Formed subsidiary in India Acquisition of FiLaser s assets to commercialize technology Appendix - Company Page 32