2012 financial results - riber · mbe market – production and r&d production: cyclical market...

2012 financial results

April 4, 2013

Riber – 2012 full-year earnings - April 2013 2

Contents

Profile

2012 markets

2012 business

2012 results

Strategy

Outlook

Stock market data

Profile


RIBER in brief

World leader for dedicated semiconductor alloy prod uction and complex material deposition systems

MBE (Molecular Beam Epitaxy) systems

Equipment for producing CIGS solar cells, OLED screens and new-generation microprocessors

High-performance solutions for microelectronics and nanoelectronicsQuicker microprocessors and memory

Low-consumption and high-intensity lighting

Thin sensors (luminosity, magnetism, molecular composition, etc.)

Major technological expertise, recognized by the ma rket's leading players

44

initial business

diversification

Riber – 2012 full-year earnings - April 2013

Molecular beam epitaxy(MBE) machines

Service contracts, accessories and spare

parts

Material deposition industrial tools and

effusion cells

Integrated leading -edge industrial firm

5

• Technical and scientific support;• Technical support on request for

system upgrades;• Curative and preventative

maintenance service

Development around three product lines

71% of 2012 revenues 8% of 2012 revenues(41% in 2011)

22% of 2012 revenues

MBE cells

Selenium deposition tools for producing solar panels

OLED cells


Global base of leading clients

Industrial firms from electronics, new energies and lighting sectors

(~ 40% of business)

University laboratories and research centres(~ 60% of business)


Diversified geographical markets

7

Breakdown of installed base of Riber MBE systems

32%

34%

35%

production site

commercial subsidiaries

project to establish presence

agents

2012 markets


MBE market – Production and R&D

Production:Cyclical market

Consolidation production capacities in 2012

Annual growth of around 3% from 2013 to 2016

R&D:Relatively stable market, with growth forecast between 2013 and 2016

Riber number 1, with a market share of over 50%

Geographical diversification

9


Photovoltaic technological roadmap

10

Concentrators(MBE)

CIGS (OEM)


Photovoltaic market

Riber present on two flagship technologies:

Concentrators (MBE)

CIGS (OEM)

Demand doubling every 2-3 years

Massive overcapacity in terms of supply

Riber maintaining its objectives for growth

Sustained R&D drive:New production system

Full range of low and high-temperature linear cells

11


OLED market

OLED display market

12

Riber focused on the market for OLED screens

General prospects intact

Two major players: Samsung and LG

Developing competition in China

Technological obstacles:

Cost price: AI use

Gen 8 consistency (TV)

Screen reliability & stability

First “reasonably-priced” TVs in 2014

Riber offers a full range of cells

2012 business


Highlights

Achievement of the strategic revenue target on MBE, w ith a record level of research MBE business

Acceleration of growth in emerging markets (China, Russ ia, Turkey, etc.)

Improvement of the commercial organisation in the depa rtments and return to growth in business

Sustained R&D drive

Healthy financial position, free from debt

High level of profitability, with €1.8 M in EBITDA

14


Systems business

6.5 5.8

15.64.6 5.7

3.8

2010 2011 2012

Historically high revenues for research MBE

17 systems delivered, including 2 production systems

Sales growth in China and Russia, Riber's leading markets in 2012

Order book at end-2012 for 11 systems to be delivered in 2013, picking up again at the start of 2013

15

7.5

13.610.1

5.8

3.8

2010 2011 2012

R&D systems Industrial systems

17.4

10.1

13.3

+68%

-42%

Revenuesat December 31 (€ M)

Order bookat December 31 (€ M)

11.5

19.4

11.1


Services and accessories business

6.5

5.45.9

2010 2011 2012

Upturn in sales resulting from the business plan

General slowdown in demand on the global market

16

1.8

1.4

1.7

2010 2011 2012

+9%

+21%




Cells business

1.8

10.6

1.2

1.3

1.4

0.9

2010 2011 2012

OEM cells Other

In 2012, delivery of a contract for OLED cells, following on from the major orders delivered in Asia in 2011

Delays with the business plans for OLED and solar due to technical difficulties encountered by the industry

Emergence of competition from Korea on OLED equipment

Ability to bounce back thanks to innovation and the development of new ranges of cells

Project to establish a commercial presence in South Korea in 2013

17

2.2

0.6

0.2

2010 2011 2012

-83%

-59%



12.0

2.13.1


Product mix centred around MBE in 2012

40%

19%

41%

at December 31, 2011

71%

22%

8%


18

Systems Components and after-sales service

Cells

Breakdown of revenues by business

€27.4 M€29.0 M


Balanced geographical mix

32%

52%

16%


42%

42%

16%


19

Breakdown of revenues by region

Europe Asia Americas

€27.4 M€29.0 M

o/w China(14%)

o/w Russiaand Turkey(13%)

o/w China(18%)

o/w Russiaand Turkey(24%)

86% of sales for export

2012 results


Income statement

(€ M - IFRS) 2012 2011 ��

Revenues 27.4 29.0 -5%Change in provisions on inventories 0.6 1.7 -65%

Gross margin% of revenues

9.133.2%

12.442.9%

-27%

CommercialResearch and development

Of which, gross expenditureOf which, other items (research tax credit, subsidies, etc.)

AdministrationOther income and expenses

(4.5)(1.1)(3.1)2.0

(2.2)0.7

(4.3)(1.6)(2.0)0.4

(1.9)(0.2)

+5%-35%+54%+402%+14%-416%

Operating income% of revenues

2.07.2%

4.315.0%

-55%

Pre-tax earnings 2.2 4.5 -52%Net income% of revenues

1.97.0%

4.314.8%

-55%

EBITDA% of revenues

1.86.6%

2.79.3%

-33%


4.3

2,0

-0,5

-1,8

-0,2+0,6

-0,3 -0,1

2011 operating

income

Volume effect Mix effect Commercial R&D Administration Other 2012 operating

income

Operating income trends

22

Breakdown of main changes:(€M)


36.3

Balance sheet at December 31, 2012

5.3

1.7

8.0

5.0

5.3

1.0

10.0

3.4

3.5

2.60.8

26.0

23

Fixed assets

Financial assets

Inventories

Cash

Shareholders' equity

Non-current provisionsTrade payables

Assets Liabilities

(€M)

Work-in-progress

Trade receivables

Other current assets

Other operating liabilities

Client advances


Cash flow trends

12.1

-0.3

5.3

+1.9

+1.1-2.9

-2.1

-0.8

-2.1

-1.5

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Ad

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Div

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Clo

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siti

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24

(€M) Change in working capital: (4.7)


Innovation drive ramped up

25

2.1

2.8

3.6

10.3%

10.1%

13.1%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

0

0.5

1

1.5

2

2.5

3

3.5

4

2010 2011 2012

R&D effort (€M) R&D effort (% rev)

Change in R&D effort (*)

(*) including gross R&D costs (€3.1 M in 2012), the cost of capitalised prototypes and R&D costsincluded in the costs of sales


2012 dividend

26

2012 2011 2010 2009

Dividend per share €0.04 €0.08 €0.06 €0.04

Average price €2.83 €3.03 €1.82 €1.16

Return 1.4% 2.6% 3.3% 3.4%

Strategy


Roadmap for value creation

Short term Medium term Long term


Generating value through the initial business: MBE systems, cells and services

Consolidating dynamic commercial developmentDevelopment of the range in line with the needs of research centres (reduction in operating costs)Market share gains, particularly on emerging markets

Further strengthening the technological leadTwo new systems: Compact 21 EB and MBE412MBE 8000 project: prototype being produced

Developing revenues for services and components on the installed baseImprovement of the range of services offeredDevelopment of sales of MBE cells


Diversification of activitiesOEM OLED and CIGS cells

OLED

Contribute towards the resolution of Gen 8 (TV) technical difficulties

Extend the offer to include cells for depositing organic materials

Vulcan S250 being tested in Japan and KoreaDedicated cell for the intensive vaporisation of

complex materials, particularly aluminium.

Very high-output cell: capacity (3 to 5 litres of materials), temperature (1800°C filament) and evaporation speed.

CIGS solar panels

Support for CIGS pioneers:Development of CIGS technique in the US

Support for production in Germany

Ramping up of innovation and development of the Jet rangeJetLin, new energy-efficient, large-area and high-temperature deposition solution

Modular cell for the vaporisation of other complex materials (Cu, Ag, Co, Fe, Ni)

Commercial outlets from 2014


Development of future growth drivers

Partners

Further strengthening RIBER’sexpertise in thin-film technologies and advanced concepts

Objectives

Applications New-generation photovoltaic solar devices

Compound semiconductor passivationUltrarapid CMOS manufacturing

Developing a range of RIBER MBE systems for silicon production (SEMI standards):

ISA 3000 (CMOS)

MPV300 (MRAM), system in applied research phase with a major industrial operator in Asia

Institut Photovoltaïque d’ile de France (IPVF)

Integration of MBE within the silicon production line

Programmes

Structuring collaborative research programmes

Outlook

3232


Strategy for profitable growth

Developing the MBE Systems rangeNew applicationsClusters and instrumentation

Developing the Services business and the MBE Cells rangeStronger sales driveRationalisation of the range of MBE cells

Developing the OEM Cells rangeProduction support for CIGSTechnological advances on OLED, following on from the successes achieved in 2011

New concepts for OEM MBE systemsDevelopment of a machine in line with SEMI standardsResearch programmes underway through industrial partners


Order book

10.1

14

1.7

1.4

0.2

0.1

Dec-12 Feb-13

34

12.0

Systems Components and after-sales service

Cells

(€M)

15.5


Governance further strengthened

To support Riber’s growth strategy, the following have been coopted as new members of the Supervisory Board:

Dominique Pons, director for Thales in GIE III-V Lab

Gildas Sorin, CEO of Novaled

Extensive experience in the compound semiconductor a nd OLED industries

Appointments submitted for approval at the upcoming g eneral meeting of RIBER's shareholders

35

Stock market data


Share price trends

3737

Market capitalization: €54.3 M (€2.81 per share at Marc h 28, 2013)

Source: NYSE-Euronext


Shareholding structure

Listed on NYSE-EURONEXT Paris since 2000

Part of the CAC Small, CAC Mid & Small, CAC Technology and CAC T. HARD. & EQ indices

ISIN: FR0000075954

Reuters: RIBE.PA

Bloomberg: RIB FP

Certification by OSEO-ANVAR, the dedicated French innovation agency, renewed in July 2012, enabling it to qualify for French innovation mutual funds (FCPI)

38

Float46.1%

NG Investments andNoël Goutard

28.6%

ISA Finances, Socodoland Mr and Mrs Raboutet

14.0%Ormylia and

Jacques Kielwasser11.6%

Appendices


Research

Production

Business model with technological drivers identified

1996 2000 2004 20081990 19941982 19861978 2012

MBE 49 oxide

200 mm

VAC500

VAC 6000/20000

Evaporation sourcesMBE

OLED

MPVD300

ISA300

Solar


Molecular Beam Epitaxy (MBE)

41

Epitaxial wafer

Molecular beam

Molecular beam

obturator

Evaporation sources

Furnace


RF components for RF components for RF components for RF components for telephony and telephony and telephony and telephony and

telecommunicationstelecommunicationstelecommunicationstelecommunications

Lasers and diodes Lasers and diodes Lasers and diodes Lasers and diodes for fibrefor fibrefor fibrefor fibre----optic optic optic optic

Instrumentation Instrumentation Instrumentation Instrumentation and lightingand lightingand lightingand lighting

Sensors for night Sensors for night Sensors for night Sensors for night vision and vision and vision and vision and

various detectorsvarious detectorsvarious detectorsvarious detectorsSolar cellsSolar cellsSolar cellsSolar cells

42

MBE: presence upstream from the value chain

Substrate or wafer

Source materials

Epiwafers Processed epiwafers

Electronic devices

Final applications

RF electronics

Sensors

Optoelectronics

Epitaxysystems


MBE and OEM business

43

RIBER MBE

system

Screen - OLED

Thin Film - Photovoltaic

Light - OLEDTV - OLED

DIVERSIF

ICATIO

N

OEM


Cells: OEM positioning

44

Manufacturing process for OLED (Organic LED) screen s

2012 financial results - riber · mbe market – production and r&d production: cyclical market...

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