AIXTRON continues on successful growth path

AIXTRON continues on successful growth path

2023 growth guidance fully confirmed / SiC and GaN power electronics strongest demand drivers / New G10-GaN completes new system generation with outstanding success / Revenues, gross margin and earnings significantly increased

Herzogenrath, Germany, October 26, 2023 – In the third quarter 2023, AIXTRON SE (FSE: AIXA, ISIN DE000A0WMPJ6) has made further significant progress on its successful growth path. With that, the leading supplier of deposition equipment for the semiconductor industry is fully on track to achieve its recently raised full-year guidance. The demand in particular for efficient power electronics based on gallium nitride (GaN) and silicon carbide (SiC) remained on high levels. In the past quarter, AIXTRON launched its new G10-GaN on the market which was a great success.

SiC and GaN drive revenues

Revenues in the first nine months of 2023 increased by 49% to EUR 415.7 million (9M/2022: EUR 279.9 million). In the third quarter 2023, revenues reached EUR 165.0 million, up 86% versus the same period last year (Q3/2022: EUR 88.9 million).

AIXTRON's systems for efficient power electronics based on gallium nitride (GaN) and silicon carbide (SiC) accounted by far for the largest share in total revenues. In the third quarter 2023, revenues for SiC and GaN-systems reached EUR 116.0 million, a total of 82% of the equipment revenue share (9M/2023: EUR 286.4 million; 82%). The comparative figures from 2022 underline how strongly the demand in this area has picked up: In the first nine months of 2022, equipment for these material systems generated a combined share of 37% of the company's equipment revenues. In the third quarter 2022, their share in equipment revenues reached 51%.

New G10-GaN completes G10 product generation with outstanding success

A key factor for AIXTRON's strong performance in the third quarter 2023 was the introduction of the new G10-GaN, launched in September 2023. This system starts a new era in GaN-technology. The G10-GaN is a highly productive, compact cluster solution that can be equipped with up to three process modules, then delivering a record capacity of 15x200 mm wafers. The system offers significantly improved material uniformities, an extended uptime, a reduced cleanroom footprint and a cost reduction of more than 25 percent per wafer compared to previous products and all competitors. Even before its official market launch, the G10-GaN had won the prestigious Supplier Excellence Award 2022 by Texas Instruments (TI), a leading US manufacturer. In the third quarter 2023, AIXTRON received orders for the G10-GaN from many existing as well as new customers, demonstrating the high level of positive customer response and confidence in this innovative solution. AIXTRON expects the G10-GaN to generate more than 50 percent of its total GaN revenues in 2024.

Besides the G10-GaN, the new G10 product portfolio consists of the G10-SiC for efficient power electronics based on SiC and the G10-AsP for Micro LED and laser devices. These innovative solutions have also been very well received in the market and offer best performance and lowest cost per wafer. With the new G10 product family, AIXTRON has yet again reinforced its technology leadership in power electronics, optoelectronics and for specialized applications, further strengthening the company's competitiveness.

New Innovation Center right on schedule

AIXTRON will invest up to EUR 100 million to build a new Innovation Center at its headquarters in Herzogenrath. With that, the leading supplier of deposition equipment for the semiconductor industry expands its research and development (R&D) capacities. The construction work will start soon and right on time, as the planning phase was successfully completed, all necessary permits were granted, and contracts have been assigned.

Development of orders

In the first nine months of 2023, AIXTRON's high-level order intake increased by another 2% year-on-year, reaching EUR 436.2 million (9M/2022: EUR 425.6 million). In the third quarter 2023, the order intake was at EUR 118.5 million and below the previous year's quarter (Q3/2022: EUR 142.8 million). As the demand in particular for efficient power electronics remains strong, AIXTRON fully confirms its full-year-guidance and expects a correspondingly higher order intake in the fourth quarter 2023.

The order backlog on September 30, 2023, was with EUR 368.0 million on comparable levels as in the same period last year (9M/2022: EUR 369.4 million).

Strong earnings performance

In line with the strong revenues, the gross profit in third quarter 2023 was EUR 76.2 million, which equals a growth of 94%, almost doubling the results achieved in the same period of the previous year (Q3/2022: EUR 39.3 million). Due to the improved product mix, the gross margin increased significantly to 46% (Q3/2022: 44%). In the first nine months of 2023, AIXTRON's gross profit grew by 60% reaching EUR 180.8 million resulting in a gross margin of 43% (9M/2022: EUR 113.1 million; 40%).

The fundamentals for future growth

Innovation and ongoing product development are essential for future growth and continued success, especially in the dynamic semiconductor industry. Therefore, AIXTRON has a strong focus on R&D, with a corresponding impact on the company's operating expenses. In the first nine months of 2023, the operating expenses amounted to EUR 87.4 million, 34% higher than in the same period of the previous year (9M/2022: EUR 65.4 million). In third quarter 2023, operating expenses reached EUR 30.9 million, also an increase by 34% compared to the third quarter of 2022 (EUR 23.1 million).

Operating result fully on track

AIXTRON concluded the third quarter 2023 with an operating result (EBIT) of EUR 45.3 million and a strong EBIT margin of 27%, an increase of 180% and 9 percentage points (Q3/2022: EUR 16.2 million; 18%). In the first nine months of 2023, the operating result (EBIT) reached EUR 93.4 million, with an EBIT margin of 22% (9M/2022: EUR 47.6 million; 17%). The profit for the period in the first nine months of 2023 increased significantly by 66% to EUR 83.5 million (9M/2022: EUR 50.2 million). Of this, EUR 39.6 million were achieved in the current year's third quarter, an increase of 107% compared to the same period in 2022 (Q3/2022: EUR 19.1 million).

Financial position

In the first nine months of 2023, AIXTRON's free cash flow was EUR -82.3 million (9M/2022: EUR 20.4 million; Q3/2023: EUR -2.2 million; Q2/2023: EUR -82.0 million). This development is primarily driven by an increase in inventories in preparation for the correspondingly high business volume in the following quarters.

As of September 30, 2023, AIXTRON reported cash and cash equivalents including other current financial assets of EUR 209.9 million (Dec. 31, 2022: EUR 325.2 million). This includes the increase in inventories and the dividend payment from May 2023. The high equity ratio of 76% as of September 30, 2023, underlines AIXTRON's financial strength (Dec. 31, 2022: 73%).

Organization further strengthened

Reflecting AIXTRON's strongly growing core business, the number of employees (full-time equivalent employees as of the reporting date) in the group continued to grow. As of September 30, 2023, 1,057 employees worked for AIXTRON, 26% more than at the end of the third quarter of 2022 (Sep. 30, 2022: 842).

2023-full-year growth guidance fully confirmed

Due to the unabated strong demand, the Executive Board expects the strong growth – especially in the segment of efficient power electronics – to continue for the remainder of the financial year. Accordingly, the guidance for FY/2023 is fully confirmed, with an expected order intake between EUR 620.0 million and EUR 700.0 million, revenues to range between EUR 600.0 million and EUR 660.0 million, an expected gross margin of approx. 45% and EBIT margin of around 25% to 27%.

"AIXTRON's success grounds on several factors. One important driver is our sense for new trends of global impact. Combined with our innovative strength, we are able to develop solutions for the future demand at a very early stage and to successfully position them on the market. The perfect example for that is our new G10 product family which supports the expansion of our strong competitive position," says Dr. Felix Grawert, CEO and President of AIXTRON SE.

"Further important elements of our success are our employees and sustainability. AIXTRON is an attractive employer, offering a modern working environment and a meaningful task. All of this enables us to recruit new talents, strengthening the organization from within to be best prepared for the expected continuous growth. After all, our technology enables the leading global megatrends of electrification and digitalization as well as renewable energies. In all these areas, wide-bandgap materials such as SiC and GaN will become the mainstream technology, and with our products, we are playing a decisive role in supporting and enabling the roll-out of these energy-efficient solutions," says Dr. Christian Danninger, CFO of AIXTRON SE.

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* not meaningful due to too high period fluctuations

Financial information

The presentation on the results for the first nine months of 2023 and the third quarter 2023 is available at:www.aixtron.com/en/investors/publications/ir-presentations

The complete financial tables of the Group (income statement, other comprehensive income, balance sheet, cash flow statement and statement of changes in equity) related to this press release are available as part of the Group's Quarterly Statement Q3/2023 at:
www.aixtron.com/en/investors/publications

Investor conference call

In conjunction with the release of the Q3/2023 results, AIXTRON will host a conference call (in English) for analysts and investors on Thursday, October 26, 2023, at 15:00 CEST (06:00 a.m. PDT, 09:00 a.m. EDT). You can dial into the conference from 14:45 CEST (05:45 a.m. PDT, 08:45 a.m. EDT) using one of the following telephone numbers: +49 69 247 471 834 or +1 646-712-9911.

An audio recording or transcript can be found after the conference at:
www.aixtron.com/en/investors/events/conference-calls

Contact

Investors

Guido Pickert
Vice President Investor Relations
fon +49 (2407) 9030-444
e-mail g.pickert@aixtron.com

Media:

Ragah Dorenkamp
Director Corporate Communications
fon +49 (2407) 9030-1830
e-mail r.dorenkamp@aixtron.com

About AIXTRON

AIXTRON SE is a leading provider of deposition equipment to the semiconductor industry. The Company was founded in 1983 and is headquartered in Herzogenrath (near Aachen), Germany, with subsidiaries and sales offices in Asia, United States and in Europe. AIXTRON´s technology solutions are used by a diverse range of customers worldwide to build advanced components for electronic and optoelectronic applications based on compound semiconductor materials. Such components are used in a broad range of innovative applications, technologies, and industries. These include Laser and LED applications, display technologies, data transmission, SiC and GaN power management and conversion, communication, signaling and lighting as well as a range of other leading-edge applications.

Our registered trademarks: AIXACT®, AIXTRON®, Close Coupled Showerhead®, EXP®, EPISON®, Gas Foil Rotation®, Optacap®, OVPD®, Planetary Reactor®, PVPD®, STexS®, TriJet®

For further information on AIXTRON (FSE: AIXA, ISIN DE000A0WMPJ6) please visit our website at: www.aixtron.com

Forward-Looking Statements

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 our current assessments, expectations and assumptions, of which many are beyond control of AIXTRON, and are 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 actual customer orders received by AIXTRON, the level of demand for deposition technology in the market, the timing of final acceptance of products by customers, the condition of financial markets and access to financing for AIXTRON, general conditions in the market for deposition plants and macroeconomic conditions, cancellations, rescheduling or delays in product shipments, production capacity constraints, extended sales and qualification cycles, difficulties in the production process, the general development in the semi-conductor industry, increased competition, fluctuations in exchange rates, availability of public funding, fluctuations and/or changes in interest rates, delays in developing and marketing new products, a deterioration of the general economic situation and any other factors discussed in any reports or other announcements , in particular in the chapter Risks in the Annual Report, filed by AIXTRON. Any forward-looking statements contained in this document are based on current expectations and projections of the executive board based on information available the date hereof. 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.